Organization resource management
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Published: Mon, 5 Dec 2016
‘The organization resource management may be defined as the composition of people and tools in any organisation for the attainment of the organisational goals.’
The organisation resource management in star bucks company has achieved greater heights by planning, organising and controlling the resources available within the organisation to achieve its goals. Starbucks is one of the best known and fastest growing companies in the world. Set up in 1971, in Seattle, the company grew slowly initially, but expanded rapidly in the late 1980s and the 1990s. By the early 2000s, the number of outlets reached to about 3000 from 9000 outlets . It was widely believed that the company’s success and rapid growth could be attributed largely to its committed and motivated workforce. This ensured that employees remained motivated, and Starbucks had a relatively low employee turnover
However, in the early 2000s, the company faced the challenge of finding and retaining the right number and kind of employees to man its future growth. In January 2005, when Starbucks Coffee Company (Starbucks) was placed second among large companies in the Fortune “Best Companies to Work For” survey Despite the fact that employees, especially those on the frontline, are critical to the success of retail businesses, most companies do not have a strong relationship with their employees, and consequently suffer from a high rate of employee turnover (In the early 2000s, employee turnover in the retail industry was around 200 percent). In this scenario, Starbucks stood out for its employee-friendly policies and supportive work culture. The company was especially noted for the extension of its benefits program to part-time workers – something that not many other companies offered. As a result, Starbucks employees were among the most productive in the industry and the company had a relatively low employee turnover.
However, by the early 2000s, three possible problems had to be considered – would the company be able to support its staff with the same level of benefits in the future, given the large increase in the number of employees; would the company be able to retain employees if it made any move to lower its human resource costs by cutting down on benefits; and would Starbucks be able to maintain its small company culture, an important element in its past growth.
Starbucks realized early on that motivated and committed human resources were the key to the success of a retail business. Therefore the company took great care in selecting the right kind of people and made an effort to retain them. Starbucks’ recruitment motto was “To have the right people hiring the right people.” Starbucks hired people for qualities like adaptability, dependability and the ability to work in a team. The company often stated the qualities that it looked for in employees upfront in its job postings, which allowed prospective employees to self-select themselves to a certain extent.
Having selected the right kind of people, Starbucks invested in training them in the skills they would require to perform their jobs efficiently. Starbucks was one of the few retail companies to invest considerably in employee training and provide comprehensive training to all classes of employees, including part-timers…
Analysts said that Starbucks biggest challenge in the early 2000s would be to ensure that the company’s image as a positive employer survived its rapid expansion program, and to find the right kind of people in the right numbers to support these expansion plans. Considering the rate at which the company was expanding, analysts wondered whether Starbucks would be able to retain its spirit even when it doubled or tripled its size. By the early 2000s, the company began to show signs that its generous policies and high human resource costs were reflecting on its financial strength.
Although the company did not reveal the amount it spent on employees, it said that it spent more on them than it did on advertising, which stood at $68.3 million in fiscal 2004.
That the company was finding its human resource costs burdensome was reflected in the fact that it effected an increase of 11 cents on its beverage prices in mid-2004. Analysts wondered whether the company’s cost problems could be met by a price increase, as customers already paid a premium for Starbucks beverages. On the other hand, it would not be easy for the company to cut down on benefits, as it could result in a major morale problem within the company.
A strategic HR plan lays out the steps that an organization will take to ensure that it has the right number of employees with the right skills in the right places at the right times. HR managers begin by analyzing the company’s mission, objectives, and strategies. Starbucks’ objectives, for example, include the desire to “develop enthusiastically satisfied customers” as well as to foster an environment in which employees treat both customers and each other with respect. Thus, the firm’s HR managers look for people who are “adaptable, self-motivated, passionate, creative team members
To develop an HR plan, HR managers must obviously be knowledgeable about the jobs that the organization needs performed. They organize information about a given job by performing a job analysis job analysis Identification of the tasks, responsibilities, and skills of a job, as well as the knowledge and abilities needed to perform it. to identify the tasks, responsibilities, and skills that it entails, as well as the knowledge and abilities needed to perform it. Managers also use the information collected for the job analysis to prepare two documents:
•A job description job description Outline of the duties and responsibilities of a position., which lists the duties and responsibilities of a position
•A job specificationjob specificationDetailed list of the qualifications needed to perform a job, including required skills, knowledge, and abilities., which lists the qualifications—skills, knowledge, and abilities—needed to perform the job
Regular training to the stuff was the most important key to the success of the company the employees were on a regular knowledge of the latest equipments used in the company. The company spends loads of sum on training of employees. This Mkes the employees more efficient and effective in their tasks.
Advantages of training
- Staff become more competent at their jobs
- Staff become moer flexible
- Staff motivation increases
- Increased productivity
- Changes become easier to introduce
- Fewer accidents
- The organisation’s image improves eg when dealing with customers
- Reduced waste
Disadvantages of training
- Once fully trained, staff may leave for better paid jobs
- Financial cost of training may be high
- Work time is lost when staff are being trained Quality of training must be high for it to have a positive effect
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