The Mintzberg Managerial Roles Management Essay

The Mintzberg Managerial Roles Management Essay
Starbucks began its operations in Seattle in year 1971. Back then they were just a roaster and retailer of whole bean and ground coffee, tea and spices and had only one store. In year 1982 Mr. Howard Schultz became director of retail operations and marketing.


Theories Implied by Starbucks
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In order to manage company working and employees, a company have to follow some theories. Starbucks Coffee Company follows following theories to manage it workings and employees –

Fayol’s Principles –
Division of Labour – Every person cannot do everything on his own that’s why division of work is necessary. Job should be assigned according to one’s specialization. Division of work promotes efficiency because it makes an employee to work in a limited area which reduces his/her responsibility.

(Anon., n.d.)

According to Starbucks management system, every Starbucks store has 16 employees which include 1 store manager, 1 assistant manager and 16 partners. Store manager is appointed to look after his support staff, assistant manager is hired to look after staff when store manager is not present and rest of the staff is assigned to make coffees and serve other food and beverages.

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(Berger and others, n.d.)

Authority – According to Henri Fayol, Authority and Responsibility goes hand in hand. When a person is made responsible for something he should be giving adequate authority to work and get work done. According to Fayol, when authority is exercised responsibility is generated automatically.

(Sumon, 2010)

In Starbucks, every manager is responsible for his/her store and every store has different responsibilities, authority, manager and customers. So, in order to make sure each store runs efficiently, Starbucks delegated authority to its store managers. Managers are free to run store and make decisions according to what they think is best for them and the employees of that store. They are responsible to hire employees for their store and can hire any employee if they don’t work according to Starbucks working standards.

(Locascio, 2004)

Equity – Principle of equity states that every person should be treated as one regardless of his sex, age, colour, religion, race etc. Management should be kind, honest and equal to all its employees.

(Anon. 2, 2008)

According to Starbucks equality policy "All partners and applicants will be treated fairly, without regard to race, color, religion, sex, national, origin, age, disability, sexual orientation, marital status, veteran status, gender identity and expression, genetic information, or any other basis protected by local, state, or federal law. This Policy applies with regard to all aspects of one’s employment, including hiring, transfer, promotion, compensation, eligibility for benefits, and termination"

(Starbucks, n.d.)

Discipline – It means sincerity, obedience, respect of authority and following rules and regulations stated by the organization. It also means subordinates should respect their superiors and follow their orders. If orders are not followed then superiors can enforce punishments on their subordinates.

(Management Study Guide, n.d.)

Starbucks follows very strict discipline structure. According to Starbucks policies employees are not allowed to –

Make unwelcome remarks, gestures or physical contacts

The display of offensive, derogatory or sexually explicit pictures through email or any other mean

Offensive or derogatory jokes or comments

Verbal or physical abuse or threats

Treat each other as a family

Follow orders given my superiors

Never harass or discriminate customers

(Starbucks, 2010)

If any of this is found then superiors are allowed to take strict actions against their sub-ordinates. Managers are allowed to take corrective actions i.e. if any sub-ordinate is given write-ups within six month period than manager can terminate him/her.

(Abraham and Jonathan, 2008)

Initiative – Employees should be given enough space and freedom to create and carry out plans. Management should give opportunity to its employees to give ideas, experience and new method of work.

(Mind Tools, n.d.)

Starbucks organises a region level once in every year when all the managers of different regions are called at their respective region head offices. There they are encouraged to provide feedback, ideas, new method of working etc. For example, a employee of Starbucks in South California developed Frappuccino blended beverage and pitched the idea to Starbucks head office. Drink was introduced by upper level management of Starbucks and it resulted in a great success. Employee who developed this drink was promoted to store manager’s position.

(Gulati, Huffman and Neilson, 2002)

Fair Remuneration – Method of remuneration to the employee should be fair, satisfactory, reasonable and rewarding of the efforts he/she has put in his/her job. Remuneration policy should be able to accord both employer and employee.

(CiteHR, 2008)

Starbucks follows a fair and competitive wage plan. Vast majority of store lower level employees earn $7.50 to $10 per hour. Store assistant manager earns about $35000 yearly where as store managers earn about $45000 yearly. Apart from this Starbucks also provide its employees with various benefits like 401(k) savings plan, stock options, an employee stock purchase plan and partners "perks" designed exclusively for partners.

(Starbucks, 2009)

Centralization and Decentralization – Centralization means when top level management retains most of the decision making authority where as Decentralization means disposal of decision making authority to all level of organization.

(Rodrigues, 2001)

Starbucks follows decentralization of authority model. They have created decision making for each manager. There all lots of stores around the world so according to working environment of that country managers can take decision which can help organization to grow. By this managers can empower employees, if an employee work good, manager has the power to promote him/her, if they are not working properly, he/she can be terminated by the manager. They can modify store design according to customer’s preference and are allowed to make drinks which are not on menu but are demanded by the customers. Hiring, firing, training and briefing of employees are responsibility of store manager.

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(Takeda and others, n.d.)

Mintzberg Managerial Roles –
Monitor – According to Mintzberg, There should be a manager appointed to seek and acquire work related information. He/she should be able to scan/read trade papers, periodicals, reports etc.

(Snyder and Wheelen, 1981)

Starbucks has appointed managers at each level. They have appointed store managers at every store who look after trade reports, personnel training, maintain personnel contacts etc. They also have regional heads that look after their regions trade reports, personnel, training of store managers etc.

(Starbucks, 2013)

Spokesperson – Spokesperson is an employee appointed by an organization to communicate organization information to the outsiders.

(Snyder and Wheelen, 1981)

Starbucks has appointed Mr. Audrey Lincoff, as their spokesperson. He is responsible for letting media and other people know the recent changes, scandals, products etc. In the company only he is authorized to make official statements to the media other than CEO and other board members of the company.

(Starbucks Coffee Company, 2006)

Figurehead – Figurehead is responsible to perform social, legal duties and act as symbolic leader. He has to greet visitors, sign documents, attend opening of new stores etc.

(Mintzberg, 2001)

Starbucks has appointed Mr. Vivek Varma, executive vice president, Public Affairs. He is responsible for Starbucks global functions in areas of public relations, government affairs and global responsibilities. He reports directly to CEO Mr. Howard Schultz.

(Starbucks, 2013)

Leader – He is the one who motivates and direct employees, trains and manage them. He is responsible to look after the working of his subordinates and interacts with them constantly.

(Mintzberg, 1967)

Starbucks have store managers appointed as leaders of their stores. Managers are responsible for hiring, training, motivating and directing their subordinates. He is responsible for his/her store’s sales, customer satisfaction, service and his/her team. Regional heads are leaders of their regional stores managers. They motivate them to increase their store sales, helps them to decide strategies for their stores etc.

Servant Leadership –
Leaders are not just people who punish, order, dictate their employees, they are people who care, understand employees needs, feelings emotions etc. Leaders should also possess empathy, which means ability to share one feeling and emotions and treating them as their own. This is servant leadership.

(Robbins, 2010)

Starbucks follows and beliefs in Servant Leadership. During the time when Starbucks was expanding rapidly, there was pressure from market to reduce coffee price. Starbucks was not able to reduce price as they needed to keep commitment to their partners, Starbucks products ensured that worker working 20 hours or more a week should get same health insurance as they provided to the CEO of Starbucks. Another example of practice of Servant Leadership in Starbucks is when 3 employees of Starbucks were killed in year 1997, CEO didn’t call public affairs manager or legal department instead he flew to the employees city and spent 1 week visiting his employees stores, families and other employees in the area. Because of servant leadership Starbucks see only 65% turnover annually as compared to its competitors who sees 200% to 400% turnover.

(Robbins, 2010)

According to Mr. Howard Schutlz, CEO Starbucks Coffee Company, Servant Leadership perspective is, "We have to lead with our hearts. In business, as in life, we each should have an internal compass that guides our decisions, an instinctive understanding of what matters most in the world. For me it’s not profit, sales, or numbers of stores, but the passion, commitment, and enthusiasm of a dedicated group of people".

(Stafford, 2004)

Problems
Starbucks Coffee Company management is facing various such as –

Company organizes workers hours which result in strikes

There are various problems with employees wages and benefits

Firing employees due to racism

Harassing workers who are gay

Selling of leftover coffee by employees on ebay

Employees writing about their managers on online blog

(Giang, 2011)

These are few problems Starbucks management faces due to improper implementation of management and leadership theories and methods. To overcome these problems Starbucks should implement following policies to protect their brand image and improve their management and leadership system –

Make sure authority is not fully decentralized so that managers can fire their employees anytime they want

Starbucks should make HR department country wise, making sure managers are not free to hire people they like and who are not useful for the store

Starbucks should also have department in each store which can maintain information in and outside of stores and report it to their regional heads

Starbucks should also employee disaster manager who can look after local barista problems and provide solutions to them without taking matter to higher level

Starbucks should also give fair remuneration to employees as according to reports when sale of a store is less then employees working hours get suffered and employees don’t get proper wages

Conclusion
To summarise it is safe to say any organization have to keep on modifying their management as human behaviour keeps on changing and using same methods for too long is not good for organizations management as it can lead to various problems to which no solutions can be provided.
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