Performance Strategy Analysis For Starbucks

Running head: PERFORMANCE STRATEGY ANALYSIS 1

Performance Strategy Analysis for Starbucks

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PERFORMANCE STRATEGY ANALYSIS 2

Performance Strategy Analysis for Starbucks

Overview of Performance Management Process

The process of performance management for Starbucks involves the creation of a work

environment, which empowers the personnel to work in their abilities. In spite of the

differences, the performance management process is useful in promoting goal setting, evaluation,

and proper rewards. Coaching is critical in the performance management process. The first step

of performance management process is planning. The planning step is focusing on setting target

goals for the employees as well as deciding the expected level of performance in the organization

(Wilden, Gudergan, Nielsen, & Lings, 2013). At the planning stage, the management and

employees should achieve proper performance levels and goals. The second step in the

performance management system is assessment level.

Assessment is usually a yearly evaluation of the performance of the employees.

Assessment comprises of the review of the past years’ assessment and the assessment of the

skills. Understanding assessment is critical to measure the performance of the company, review,

the feedback and, the rate the performance of the organization. After the assessment, the

recognition stage is critical in enhancing the success of the performance management process

(Brannon, & Wiklund, 2016). The process is keen on recognizing the accomplishments of the

employees and focusing on specific aspects that need to be improved. Another aspect of the

process is career development stage. Career development is keen on promoting and encouraging

development and improvement of the employees. The stage is useful in meeting demands of the

organization promoting the strengths of employees and working to eliminate weaknesses in the

organization.

PERFORMANCE STRATEGY ANALYSIS 3

Fig. 1:

Flowchart of the Performance Management Process

Job Analysis

At Starbucks Inc, job analysis is defined as the approach of identifying and determining

the specific job details and requirements and their significance on the performance of the specific

jobs. The job analysis is a critical element that allows for the making of proper judgments about

information and data collected about the job positions. The role of job analysis is to create and

record the job-related factors of employment processes and procedures including, selection,

compensation as well as performance evaluation and management. One of the critical aspects of

job analysis is to determine the training requirements. The need assessment is important in the

identification and development of training content, work environment, responsibilities, and the

PERFORMANCE STRATEGY ANALYSIS 4

appropriate level of education, assessment tests and equipment for presenting the training, and

the approaches to training. 

Selection procedures are also critical in the job analysis. The selection procedures help to

determine the job duties, the salary level, interview questions, selection tests and the orientation

tools among others. Performance review assists in the conduction of the job analysis.

Performance review is keen on developing proper goals, performance standards, evaluation

criteria, and the duties to be evaluated. The approaches of job analysis used by Starbucks include

the supervisor interviews, checklists, expert panels, and observation among others. 

Skills Gap Analysis and Performance Evaluation

The HR team of Starbucks has been focused on conduct proper skills gap analysis. Skill

gap analysis usually defines the skills and knowledge needed to complete jobs and comparing the

current level capability to the requirement. After getting the gap between the tasks and the

current level of performance, training experts usually works with the employees to develop a

plan which remedies difficult situations (Yunis, Jung, & Chen, 2013). Common causes of skill

gaps include the lack of proper training and education as well as the changing job requirements

and needs. Obtaining the required skills focuses on determining the job duties and

responsibilities when corporations introduce new processes and technologies.

The first critical step in conducting skill gap analysis at Starbucks is the identification of

the business objectives and goals. The company needs to retain the highly skilled employees to

remain successful and competitive. The evaluation of the critical skills is critical in getting the

right skills that improve the optimal performance of the businesses. The determination of the

proper procedures is also critical in carrying out company roles and functions.

PERFORMANCE STRATEGY ANALYSIS 5

The second step of the analysis is the collection of data and information. It usually

focuses on the creation of skills inventory to identify the knowledge and skills to improve the

performance of the company. The interpretation of data and information as well as making

recommendations is critical in promoting communication, teamwork, and leadership (Brannon,

& Wiklund, 2016). The final step implemented in the skills gap analysis is the preparation of

training plans to determine the key skills gaps in the inherent climate. Training professionals are

involved in the creating of curricula using labor resources.

The performance evaluation of Starbucks defines the performance appraisals used by the

company to determine the performance of the employees. Starbucks was determined to use 360-

degree feedback approach in promoting the performance of the employees. The performance

evaluation approach depends on the various sources of data and information including the

customers, employees, peers, and supervisors among others. The benefits of the feedback method

are to improve training and developmental programs to promote the performance of the

employees in the long run. However, the disadvantage of the approach does not demand efforts

and time conduct a proper evaluation of the employee performance. 

Ways of Measuring Employee Performance

Starbucks's ways of measuring employee performance are through conducting of

performance appraisal. The company conducts performance appraisal in two phases, firstly,

evaluating the job performance and the sharing of feedback with the company’s employees. For

example, Starbucks uses customer comment card to measure the performance of the employees

in the job positions. Customer comment card comprises of customer survey questions responded

by the customers on their views on the employees' performance and the products. The approach

is usually a good strategy for measuring the performance of the employees (Wilden, et a., 2013).

PERFORMANCE STRATEGY ANALYSIS 6

The product defect is a critical way of measuring the level of employees’ good performance. It

examines the level of production quality. Defects of the products show low quality work for the

employees. Evaluating the quality of the products is critical in ensuring that the employees are

focused on the production of quality products.

In addition, Starbucks also gives out performance bonuses of the employees based on

their scores in the customer comment cards. The managers are useful in measuring the proper

performances through conducting observations of the employees in conducting their work.

Starbucks also uses the 3600-degree feedback approach to measure the company’s performance.

The feedback method is critical in influencing the level of effectiveness of providing feedbacks

to the employees. It is clear that the Starbucks Company relies on the performance appraisals

approaches to determine the performance level of the employees.

Counseling to Improve Performance

Counseling is critical in dealing with poor performance and analyzing the potential

solutions to problems facing the company. An effective counseling program would be able to

improve the performance of the employees. The managers of the company must be active in

encouraging good performance and being role models for addressing problems in the company.

At Starbucks, counseling process should occur when the company is experiencing poor

performance levels due to poor judgment, errors or accidents among others. Employees and

supervisors should attend the counseling program, which is critical in promoting performance

and productivity levels at the company (Brannon, & Wiklund, 2016). Some of the counseling

programs include the recommendation of corrective actions, giving reassurance to the

employees, comprehensive training, and focusing on the employees’ behavior among others.

PERFORMANCE STRATEGY ANALYSIS 7

References

Brannon, D. L., & Wiklund, J. (2016). An analysis of business models: Firm characteristics,

innovation and performance. Academy of Entrepreneurship Journal, 22(1), 1.

Wilden, R., Gudergan, S. P., Nielsen, B. B., & Lings, I. (2013). Dynamic capabilities and

performance: strategy, structure and environment. Long Range Planning, 46(1), 72-96.

Yunis, M., Jung, J., & Chen, S. (2013). TQM, strategy, and performance: a firm-level

analysis. International Journal of Quality & Reliability Management, 30(6), 690-714.

PERFORMANCE STRATEGY ANALYSIS 8

Appendix 1: Resources for Performance Analysis

The resources needed includes

 Financial resources. The resources would help in purchasing computer software and

advanced equipment.

 Time resources.

 Human resources. Hiring qualified experts.

 Equipment. Force platforms and stop watches among others.

 Facilities. Computer laboratories

 Qualified support

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