Team Project Course: Fundamental of Management Topic: Planning Case Study: Starbucks
Team Project Course: Fundamental of Management Topic: Planning Case Study: Starbucks
            TEAM PROJECT
 COURSE: FUNDAMENTAL OF MANAGEMENT
             TOPIC: PLANNING
          CASE STUDY: STARBUCKS
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              MEMBERS OF THE TEAM
3. Hồ Lê Bách 1714140010
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                                      CONTENTS
I. Theoretical Framework………………………………………………………4
1. The definition of Leadership and who is a Leader……………………………..4
2. The Relationship between Leadership and Management………………………4
3. Is a leader born or made?.....................................................................................4
4. Model of power in organization………………………………………………...5
5. Outcomes of influence attempts………………………………………………...7
6. What you need to become an effective leader?....................................................8
7. Seven Leadership Competencies………………………………………………..8
8. Behavioral Leadership approach……………………………………………….11
9. Leadership style………………………………………………………………...12
II. Case study……………………………………………………………………..14
1. Brief summary………………………………………………………………….14
2. Discussion question…………………………………………………………….14
III. Reference…………………………………………………………………….26
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  I.      Theoretical framework
  1. The definition of Leadership and who is a Leader
       Leadership is the effort to influence others to behave with enthusiasm and
       diligence to contribute voluntarily to the achievement of group tasks in a
       given situation.
       Leadership is also a process of influencing people and providing an
       environment for them to achieve team or organizational objective. In a
       business setting, this can mean directing workers and colleagues with a
       strategy to meet the company's needs.
       What is more, a leader is “a person who influences a group of people
       towards the achievement of a goal”, “a person who know the way, go the
       way, show the way”. The leader must be someone who can motivates others
       while has the can-do personality, strong leadership and social skills that
       makes others want to follow his/her guide.
  2. The Relationship between Leadership and Management
       The fact is that leadership is basically a process of influencing in a group of
       people who share a common target.
       Leadership creates the vision and strategies for others to follow, it is similar
       with painting a map with particular paths and everything workers need to do
       is follow those paths. Hence this process builds the basement for
       management. Management is likely to go deeply in the detail with specific
       steps and timetable to implement the strategies while taking the budget (the
       financial projections) into account. Management also has two other sections
       including organising and staffing with controlling and problem solving.
  3. Is a leader born or made?
       “Good leaders are made not born”
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    Everyone has the chance to become an effective leader if their have the
    desire and willpower, it’s a choice. Regarding to the “Behavioral Theories”
    people who can become leaders are believed to shape themselves through
    the process of teaching, learning and observation.
    Leadership is a set of skills that can be learned by training, perception,
    practice and experience over time. Leadership learning is lifetime activity.
    Good leaders seek out development opportunities that will help them learn
    new skills.
  4. Model of power in organization
    In an organizations, there are usually two groups of power: the formal
    (position) power and the personal power. The formal power is established by
    an individual’s position in an organization. In the contrast, personal power is
    the power that comes from an individual’s unique characteristics which are
    the most effective. Five sources of power are involved in these group namely
    Legitimate, Reward, Coercive, Expert and Referent. The sources give one
    person the opportunity to show power over others through a contingencies of
    power process.
    Formal Power:
  o Legitimate Power: Legitimate power is also known as positional power.
    The formal authority to control and use resources based on the position a
    person holds in an organization’s hierarchy. The target person complies
    because he/she believes that the agent has the right to make the request and
    the target person has the obligation to comply. Job descriptions, for example,
    require junior workers to report to managers and give managers the power to
    assign duties to their juniors.
  o Coercive Power Derived from Ability to Influence Others: Coercive
    power is a power base dependent on fear of negative results and
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    punishments. To be more specific, it’s the kind of power that’s built from a
    person's ability to influence others via threats or sanctions. A junior staff
    member may work late to meet a deadline to avoid disciplinary action from
    his boss. Coercive power is, therefore, a person's ability to punish, fire or
    reprimand another employee. Coercive power helps control the behavior of
    employees by ensuring that they adhere to the organization's policies and
    norms.
  o Reward Power and Ability to Influence Allocation of Incentives:
    Compliance achieved based on the ability to distribute rewards that other
    view as valuable.. These incentives include salary increments, positive
    appraisals and promotions. In an organization, people who wield reward
    power tend to influence the actions of other employees. Reward power, if
    used well, greatly motivates employees. But if it's applied through
    favoritism, reward power can greatly demoralize employees and diminish
    their output.
    Personal Power:
  o Expert Power Derived from Possessing Knowledge:
    “Knowledge is power”. Expert power is derived from possessing knowledge
    or expertise in a particular area. Such people are highly valued by
    organizations for their problem solving skills. People who have expert power
    perform critical tasks and are therefore deemed indispensable.
    The opinions, ideas and decisions of people with expert power are held in
    high regard by the target person, he/she believes the agent has the special
    skills or knowledge about the best way to do something. Possession of
    expert power is normally a stepping stone to other sources of power such as
    legitimate power. For example, a person who holds expert power can be
    promoted to senior management, thereby giving him legitimate power.
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  o Referent Power:
    Referent power is derived from the interpersonal relationships that a person
    cultivates with other people in the organization. People possess reference
    power when others respect and like them. Referent power arises from
    charisma, as the charismatic person influences others via the admiration,
    respect and trust others have for him/her.
    Referent power is also derived from personal connections that a person has
    with key people in the organization's hierarchy, such as the CEO. It's the
    perception of the personal relationships that she has that generates her power
    over others.
    In this case, the target person complies because he/she admires or identifies
    with the agent and wants to gain the agent’s approval.
  5. Outcomes of influence attempts:
    There are three main types of results namely commitment, compliance and
    resistance that may happen after the influence attempts.
     Commitment: An outcome in which the target person internally agrees
    with a decision or request from the agent and make great effort to carry out
    the request or implement the decision effectively
     Compliance: An outcome in which the target person is willing to do what
    the agent asks but in apathetic rather than enthusiastic about it and will make
    only a minimal effort.
     Resistance: An outcome in which the target person is opposed to do the
    proposal or request, rather than merely indifferent about it, and actively try
    to avoid carrying it out.
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  6. What you need to become an effective leader?
     An effective leader is a person that own the combination of various
     characteristics. According to McShane, “a great leader is one who has
     vision, perseverance, and the capacity to inspire others”. A huge number of
     studies has been carried out to find out what is the main characteristics of a
     leader. Some shows that a leader need to have the quality of intelligence,
     masculinity and dominance while these other claims that a good leader must
     have the adjustment, extroversion and conservatism also.
  7. Seven Leadership Competencies
     Emotional Intelligence:
  o Emotional intelligence or EI is the ability to understand and manage your
     own emotions, and those of the people around you. People with a high
     degree of emotional intelligence know what they're feeling, what their
     emotions mean, and how these emotions can affect other people. For leaders,
     having emotional intelligence is essential for success.
  o According to Daniel Goleman, an American psychologist who helped to
     popularize emotional intelligence, there are five key elements to it:
     Self-awareness: If you're self-aware, you always know how you feel, and
     you know how your emotions and your actions can affect the people around
     you. Being self-aware when you're in a leadership position also means
     having a clear picture of your strengths and weaknesses, and it means
     behaving with humility.
     Self-regulation: Leaders who regulate themselves effectively rarely verbally
     attack others, make rushed or emotional decisions, stereotype people, or
     compromise their values. Self-regulation is all about staying in control.
     Motivation: Self-motivated leaders work consistently toward their goals, and
     they have extremely high standards for the quality of their work.
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     Empathy: For leaders, having empathy is critical to managing a successful
     team or organization. Leaders with empathy have the ability to put
     themselves in someone else's situation. They help develop the people on
     their team, challenge others who are acting unfairly, give constructive
     feedback, and listen to those who need it. If you want to earn the respect and
     loyalty of your team, then show them you care by being empathic.
     Social Skills: Leaders who do well in the social skills element of emotional
     intelligence are great communicators. They're just as open to hearing bad
     news as good news, and they're expert at getting their team to support them
     and be excited about a new mission or project. Leaders who have good
     social skills are also good at managing change and resolving conflicts
     diplomatically. They're rarely satisfied with leaving things as they are, but
     they don't sit back and make everyone else do the work: they set an example
     with their own behavior.
     Integrity:
  o Integrity is one of the top attributes of a great leader. It is a concept of
     consistency of actions, values, methods, measures, principles, expectations
     and outcomes. It connotes a deep commitment to do the right thing for the
     right reason, regardless of the circumstances. People who live with integrity
     are incorruptible and incapable of breaking the trust of those who have
     confided in them. Every human is born with a conscience and therefore the
     ability to know right from wrong. Choosing the right, regardless of the
     consequence, is the hallmark of integrity.
     Drive:
  o Individuals become leaders because they get joy in accomplishment for its
     own sake. They are usually thinking of how to do a job better and how they
     can progress in their career. The need for achievement or to excel in their
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        work place is because they are interested in the monetary reward that come
        with it.
        Leadership motivation:
    o Any leader must be able to bring out the best in people, which means the
        leader must use his authority -- not power -- to communicate the enthusiasm
        to followers that leads to effective and meaningful work. More specifically,
        motivation means a leader brings out those qualities in followers that will
        maximize their special contribution to the whole enterprise.
        Self – confidence:
    o Self-confident leaders build up others and find satisfaction in their workers’
        personal and professional growth.
    o Self-confident leaders are a pleasure to work for, because they are more
        interested in developing a cohesive and well-ordered work environment.
        The employees work well together, stress is minimized, and employees are
        encouraged to excel and use their strengths to improve productivity and
        achieve their career goals.
        Intelligence:
    o Intelligence often leads to leaders knowing how certain strategies are going
        to work out and adjust their plans accordingly. Damage control is necessary
        for any organization if leaders are able to anticipate impending failure or
        situations such as business closures. Intelligent leaders are honest. They let
        their team members know if things are not working out in an ideal manner.
        In such circumstances, rumors can spread quite quickly, and leaders need to
        be the first in breaking bad news and cooling the situation down.
        Knowledge of the Business:
    o Knowledge of the Business is important as they are the skills required by a
        leader to complete specialized task. It’s known that intelligent leaders make
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        more effective plans, strategies, and decisions than to less intelligent ones. It
        would be very hard for leader to gain subordinate respect if they do not
        understand the technical details of their work.
    8. Behavioral Leadership approach: There are 2 main types of theory that we
        focus on:
        Task-Oriented Leadership Approach: Task-oriented leadership approach
        describes a leader that is motivated by accomplishing tasks and concerned
        with the delineating roles and specific tasks for employees. The task-
        oriented leader creates policies and procedures, informs subordinates of
        these procedures and develops criteria for evaluating successful employee
        performance. Task-oriented leaders may organize their time around a
        schedule of events that must be completed for each day.
    o There is little doubt that task-oriented leaders can get results. They provide
        workers with simple steps and detailed guidance. Yet, many task-oriented
        people are referred to as micro-managers that make workplaces
        uncomfortable and non-welcoming. Task-oriented leaders care less about
        whether a worker has a good idea for making production easier than they do
        that the worker complete the task as outlined on time. As a result, task-
        oriented leaders often make workers feel like drones. Eventually, if this
        leadership approach is used constantly, workers feel under-appreciated and
        less motivated to reach their goals; and then production suffers.
        Relationship-Oriented Leadership Approach: Relationship-oriented
        leadership approach describes a leader who is primarily motivated by and
        concerned with her interactions with people. Relationship-oriented leaders
        often act as mentors to their subordinates. They schedule time to talk with
        employees and incorporate their feedback into decisions. They also often try
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        to make the work experience enjoyable and attempt to foster a positive work
        environment or group dynamic.
    o People-oriented leaders create a workplace environment where employees
        trust their leaders and feel loyalty toward the business and their co-workers.
        Productivity increases because workers actually want to come to work each
        day. These leaders also open the door for creating newer, better business
        processes by accepting and promoting employee and team feedback. Yet,
        many people-oriented leaders are referred to as weak leaders. They often
        invest so much time into relationship-building through team meetings, one-
        on-one reviews and team-building events that production delays occur and
        cause missed deadlines. Some relationship-oriented leaders give workers so
        much control over completion of a task with little guidance or monitoring
        that tasks don’t get completed on time.
    9. Leadership style:
        Autocratic Leadership: Autocratic leadership, also known as authoritarian
        leadership, is a leadership style characterized by individual control over all
        decisions and little input from group members. Autocratic leaders typically
        make choices based on their ideas and judgments and rarely accept advice
        from followers. Autocratic leadership involves absolute, authoritarian
        control over a group.
        Democratic leadership: Democratic leadership, also known as participative
        leadership or shared leadership, is a type of leadership style in which
        members of the group take a more participative role in the decision-making
        process. This type of leadership can apply to any organization, from private
        businesses to schools to government.
        Laissez-faire leadership: Laissez-faire leadership, also known as delegative
        leadership, is a type of leadership style in which leaders are hands-off and
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        allow group members to make the decisions. Researchers have found that
        this is generally the leadership style that leads to the lowest productivity
        among group members.
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    II.        Case study
    1. Brief summary:
Once people are hired or brought into organizations, managers must oversee and
coordinate their work so that organizational goals can be pursued and achieved. This
is the leading function of management. And it’s an important one! However, it also
can be quite challenging. Managing people successfully means understanding their
attitudes, behaviors, personalities, individual and team work efforts, motivation,
conflicts, and so forth. That’s not an easy thing to do. In fact, understanding how
people behave and why they do the things they do is downright difficult at times.
Starbucks has worked hard to create a workplace environment in which employees
(partners) are encouraged to and want to put forth their best efforts. Howard Schultz
says he believes that people everywhere have the same desire—to be respected,
valued, and appreciated.
2. Discussion question:
P5-1. Do the overwhelmingly positive results from the 2005 partner survey surprise
you? Why or why not? Do you think giving employees an opportunity to express their
opinions in something like an attitude survey is beneficial? Why or why not?
Answer:
          Over half (64 percent) of partners responded to the survey—much higher than
          the number of respondents to the previous survey in 2003, in which the partner
          response rate was only 46 percent.
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        Responses to questions about partner satisfaction and partner engagement
        were extremely positive: 87 percent of partners said they were satisfied or
        very satisfied, and 73 percent said they were engaged with the company. (The
        numbers in 2003 were 82 percent satisfied and 73 percent engaged.)
        The most important thing for the Starbuck’s from the day he established the
        starbucks coffee company is the relationship with his employees. Hence he
        developed a system of attitude survey for the employees and partners. The
        most recent partner survey carried out in the fiscal year of 2006. About 84
        percent of the people responded to the survey and amongst them 86 percent
        people were satisfied and 69 percent were engaged with the company. Much
        higher number of people responded to the survey as compared to the previous
        year. I am not surprised by the overwhelming response to this survey because
        the partners work with starbucks with dedication mostly due to the attitude of
        the company towards them. They know what the company expects them to do
        and also because they are satisfied with the company.
        Giving the employees the opportunity to express is really beneficial because
        the company gets to know the factors and areas where the partners and
        employees are happy with the company and the areas which need some
        considerations to meet the expectations for the employees. Starbucks always
        followed the believed in “We know that the people are the heart and soul of
        our success”.
P5-2. How might the results of the partner survey affect the way a local store
manager does his or her job? How about a district manager? How about the
president of global development? Do you think there are differences in the impact
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of employee surveys on how managers at different organizational levels lead? Why
or why not?
Answer:
        There are several ways the results of the partner survey may affect the
        managers in different organizational levels head, from bottom to top.
        Firstly, the results of survey usually affect the Local Store Manager in the
        functioning of the store as he knows what the standards are of the company.
        More importantly, the survey also help the manager to find out what is the
        imperfection, helping he to correct them while the good survey consequences
        will encourage him to work better, bringing more benefits for the company
        Next, moving onto the impact of survey with a District Manager, the survey
        invoke this manager the overview about the inferior ones, finding the
        problems of employee. The manager can have some actions such as setting
        the improvement measures about the troubles and unsatisfactoriness factors
        that affects the employees, thus, bring the greater environment for employees
        so they can focus on their work well.
        Finally, thanks to the results of the survey, the company are able figure out
        the ways to increase the efficiency of employees. This is likely to ultimately
        help the President of Global Development to reach his global expansion
        targets quickly and efficiently.
P5-3. As Starbucks continues to expand globally, what factors might affect partner
responses on a partner view survey? What are the implications for managers?
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Answer:
        According to a survey that was already mentioned in the first question, we can
        see that the satisfaction figure of Starbucks’ partner experienced an increasing
        through the period, the results obviously became better each time. The survey
        conducted by the the company also affected the global expansion of the
        business in several ways. Firstly, the store manager may find the positive
        responses act as the motivational tool while the survey also brings the manager
        the chance to point out the drawbacks, thus, being possible to find the solution
        and solve the problem with the better controlling. Moreover, the survey
        invoke the interest of global partners in the company’s business. Hence, the
        company will have the right stimulation about the future directions that can
        satisfy those partner, helping the company to develop dramatically. Last but
        not least, the survey show the global partner the information about the
        employee treatment and the performances about the company. This help to
        build the strong believe between the company and partner, boosting the
        satisfaction of partner.
        It can be concluded that the results of the company’s business are pretty
        satisfactory and it help in the expansion of the business because the global
        partner find the business more interesting.
P5-4. Look at the description of the types of people Starbucks seeks. What individual
behavior issues might arise in managing these types of people? (Think in terms of
attitudes, personality, etc.) What work team issues might arise? (Think in terms of
what makes teams successful. Hint: Can a person be self-motivated and passionate
and be a good team player?)
Answer:
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Individual behavior issues that might arise in managing these types of people:
        Passionate and creative people might be very ambitious. Owing to this reason,
        they would need or require the environment of the workplace, ethical
        standards in an ambition to grow. Also, to ensure their contribution to the
        company, financial and non-financial rewards are to be ensured. Their
        requirement of the environment is very strict and challenging for their
        motivation and job satisfaction. Hence, if the company cannot cater for such
        needs, they have no incentives to continue and eventually, may quit.
P5-5. Discuss the “ideal” Starbucks employee in terms of the various personality
trait theories.
Answer:
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        emotion or thought. Traits differ from individual to individual, and often
        remain unchanged over time.
        Throughout history, a wide range of trait theories has been developed. To
        discuss the “ideal” Starbucks employee, we will look further into 2 well-
        known theories: The Myers–Briggs Type Indicator and The Big Five
        Personality Traits.
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    o The Big Five Personality Traits, also known as OCEAN, represents 5 most
        important traits that form personality of human:
        Openness
        Conscientiousness
        Extraversion
        Agreeableness
        Neuroticism
P5-6. Describe in your own words the workplace environment Starbucks has tried
to create. What impact might such an environment have on motivating employees?
Answer:
P5-7. Using the Job Characteristics Model, redesign a part-time hourly worker’s
job to be more motivating. Do the same with a store manager’s job.
Answer:
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        Based on the theory of JCM, a part-time hourly worker’s job can be
        redesigned as followed:
o Job design:
        Simplification of the job and provision of the right training and resources
        Proper training by assigning a full-time employee to mentor each part-timer
        and flexibility
o Job enrichment:
        Skill variety: strong communication skills, working well under pressure, good
        planning skills, leadership skills, organizational, interpersonal and problem-
        solving skills.
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        Task identity: work alongside their partners and run the business by managing
        store operations, driving financial success, building and leading great teams,
        and creating a meeting place in their communities.
        Task significance: grow a successful, multi-million-dollar business; nurture
        talent and lead a team; inspire other; make impact on community
        Autonomy: supervise and direct the workforce; make staffing decision (i.e.,
        hiring, training, evaluating, discharging, staffing, scheduling)
        Feedback: listening to employees’ opinions and make changes
o Job enrichment:
        Combining task: putting fractionalized tasks back together to form a new and
        larger module of work
        Forming natural work units makes the manager’s tasks create an identifiable
        and meaningful whole
        Establishing customer relationships increases the direct relationship between
        store managers and their customers
        Leadership development training for upper-level managers
        Opening feedback channels: Starbucks’ store managers try to address any
        concerns raised in surveys or concerns expressed in other ways
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    III. Reference
    1. Kendra Cherry (May 10, 2019). “The Trait Theory of Personality”.
        https://www.verywellmind.com/trait-theory-of-personality-2795955.
    2. Kendra Cherry (May 20, 2019). “The Big Five Personality Traits: 5 Major
        Factors of Personality”. https://www.verywellmind.com/the-big-five-
        personality-dimensions-2795422
    3. Myers, Isabel Briggs with Peter B. Myers (1995) [1980]. “Gifts Differing:
        Understanding Personality Type”. Mountain View, CA: Davies-Black
        Publishing.
    4. Saul Kassin, (2003). “Psychology”. USA: Prentice-Hall, Inc.
    5. Larman, T. (2015). Task-Oriented vs. People-Oriented Leadership Styles.
        Retrieved from https://www.linkedin.com/pulse/task-oriented-vs-people-
        oriented-leadership-styles-tony-larman
    6. Johnson, W. (2019). Seven Competencies of Effective Leaders. Retrieved
        from https://smallbusiness.chron.com/seven-competencies-effective-leaders-
        30570.html
    7. Hopkin, M. (2019). Leadership and integrity. Retrieved from
        https://leadonpurposeblog.com/2012/01/21/leadership-and-integrity/
    8. Cherry, K. (2019). How Does Laissez-Faire Leadership Work?. Retrieved
        from https://www.verywellmind.com/what-is-laissez-faire-leadership-
        2795316
    9. Cherry, K. (2019). Is Democratic Leadership the Best Style of Leadership?.
        Retrieved from https://www.verywellmind.com/what-is-democratic-
        leadership-2795315
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