Organisations and Behaviour Assignment 2

Unit OutcomesOutcome Evidence for the Internal Verification First attempt work Re-Understand ways of using motivational theories in organisations LO3 discuss the impact that different

BTEC HND IN BUSINESS (FINANCE)

ASSIGNMENT COVER SHEET

NAME OF STUDENT Nguyễn Thị Kiều Anh - Snow - F05A

ASSIGNMENT NO 2 of 2 (individual report)

SUBMISSION DEADLINE 9th January, 2013

I, Nguyễn Thị Kiều Anh _ hereby confirm that this assignment is my own work and not copied or plagiarized from any source I have referenced the sources from which information is obtained by me for this assignment.

_9 th January, 2013 Signature Date

-FOR OFFICIAL USE (Course Administrator)

Unit Outcomes

Outcome Evidence for the

Internal Verification

First attempt work

Re-Understand

ways of using

motivational

theories in

organisations

LO3

discuss the impact that different leadership styles may have on motivation in organisations in periods of change

3.1

compare the application of different motivational theories within the workplace

3.2

evaluate the usefulness of a motivation theory for managers

3.3

Understand

mechanisms

for

developing

effective

teamwork in

organisations

LO4

explain the nature of groups and group behaviour within organisations

4.1

discuss factors that may promote or inhibit the development of effective teamwork in organisations

4.2

evaluate the impact of technology on team functioning within a given organisation

4.3

Outcome Evidence for the

Internal Verification

First attempt

Re-work

Assignment

( ) Well-structured; Reference is done properly / should be done (if any)

Overall, you’ve

Areas for improvement:

ASSESSOR SIGNATURE DATE / /

NAME:

(Oral feedback was also provided)

STUDENT SIGNATURE DATE / /

NAME :

FOR INTERNAL USE ONLY

VERIFIED YES NO

DATE :

VERIFIED BY :

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ORGANIZATIONS STRUCTURE, CULTURE

Prepared for:

Lecturer, Mr John Andre Organization and Behaviors Banking Academy, Hanoi BTEC HND in Business (Finance)

Prepared by:

Nguyễn Thị Kiều Anh - Snow - F05A

Registration No ITPF05-014

No of words: 2833 Submission date: 9th January, 2013

TABLE OF CONTENTS

CONTENTS 7

III Understand ways of using motivational theories in organisations 7

3.1 Discuss the impact that different leadership styles may have on motivation in organisations in periods of change 7

3.2 Compare the application of different motivational theories within the workplace 9

3.3 Evaluate the usefulness of a motivation theory for managers 10

IV Understand mechanisms for developing effective teamwork in organisations 12

4.1 Explain the nature of groups and group behaviour within organisations 12

4.2 Discuss factors that may promote or inhibit the development of effective teamwork in organisations 13

4.3 Evaluate the impact of technology on team functioning within a given organisation14 CONCLUSION 15

REFERENCES 16

This assignment helps learner understand ways of using motivational theories and mechanisms for developing effective teamwork in Starbucks Starbucks Corporations is an American global coffee company and coffee house chain which is established in 1971 Nowadays, it owns about 4,000 branches in the whole world and is considered as one of the most rapidly growing corporations in American as well [ CITATION Sce12 \l

1033 ] Through the analysis of Starbucks company, learner can know exactly the impact that leadership style many have on motivation in period of change, application of different motivational theories within the workplace, useful of motivation theory, nature of groups and group behavior, factors that may promote or inhibit the development of effective teamwork, and know impact of technology on team functioning within the organization as well

This report based on many resources on internet, books to compare, explain, evaluate problems which are relevant to motivation theories of Starbucks and especially give some evidences to prove my opinion, my ideas is right

CONTENTS III Understand ways of using motivational theories in organisations

3.1 Discuss the impact that different leadership styles may have on motivation in organisations in periods of change

Leadership style involves essentially people-centred activities, with effects potentially beyond the scope of controlled performance A leader’s special function is to create a vision, communicate the vision, energise, inspire and motivate, and create the culture [ CITATION BPP10 \l 1033 ]

There are a number of different leadership styles that a manager of a company can choose to approach, and motivate their employees Different styles were needed for different situations and each leader needed to know when to exhibit a particular approach[ CITATION Ano02 \l 1033 ] Therefore, as a leader, it is very important for them

to understand and adopt leadership styles for motivation in periods of change of their organization In order to understand more clearly about impact of different leadership style in motivating enterprises in periods of change, the analysis below is about two

leadership styles that Starbucks used in their business in the period of rapid

globalization, these are democratic and servant.

a Democratic

Because of rapid globalization in recent years, Starbucks face many intensely competitions in over the world Therefore, the key to succeed in Starbucks’ enterprise is not only the products’ quality but also creating work environment and enhancing human resources’ role to motivate their employees At Starbucks, the managers treat their employees equally Specifically, in order to narrow the gap between managers and employees, they co-work with the basic level staffs in the front line and call each other

is “partners” whatever their position [ CITATION Sce12 \l 1033 ] This built a good relationship among members of the company and create friendly atmosphere to help employees feel comfortable and only focus on contributing to the company Furthermore, the managers also listen to their employees It is expressed in decision-making process Employees is took part in meeting and speak out their ideas while leaders know listening, respect for the contrary opinion and share information with subordinates According to scenario, Starbucks wants every employee to join in making

and developing plans, then achieving their goals together More than over, it encourages employees to give their opinion, create an opportunity to promote the capability of individual, and motivate their creativity Especially, employees will feel them have more values within the organization As a result, according to Fortune magazine, Starbucks was ranked the 16th best company to work for in 2007 in the USA In the same year, Starbucks was also voted as one of the top ten UK workplaces by the Financial Times [ CITATION stand \l 1033 ]

b Servant

Perhaps most importantly, servant leadership focuses on serving all stakeholders in the corporation This includes employees, customers and the community in general[ CITATION inv12 \l 1033 ] Starbucks serve their employees to motivate and help them to have chance of using their talents to help organizations best in serving society because employees is people who always approach customers and realize what customers really need Specifically, all employees, including informal personnel, are offered a great deal of welfare policies, for instance, commodities discounts for employees, medical insurance (including health, vision and dentil) and vacations The partners who work over 20 hours a week are entitled for benefits [ CITATION Sce12 \l 1033 ] As well as the style above, employees are also considered as core values, and most important asset of Starbucks All positive policies also have one purpose is to help employees feel satisfy and happy so that they dedicate their best to the organization through listening and connection to customers to help firm remain competitive advantage in market Moreover, Starbucks also contributes part of its profits to public service; on the other hand, it also set a goal to improve and donate to the society As a result, the aim makes all staffs have an idea that what they do for Starbucks is for the society as well [ CITATION ukend \l 1033 ] This makes staff love more their work, and inspire enthusiasm Thanks to this, firm’s profit turned loss into gain and continue growing the recent years Specifically, firm’s sales growth of 7% and total net revenue increase 15% in fiscal second quarter 2012 [ CITATION new121 \l 1033 ]

3.2 Compare the application of different motivational theories within the workplace

a Application of Maslow’s theory

Maslow divided human need into five levels; from bottom to top of Maslow’s hierarchy of need are physiological needs, safety needs (basic needs), and love/social needs, esteem needs, self-actualization (meta needs)

 Physiological needs: Starbucks’s employees receive free “behind the counter” drinks while they are on shift or ½ hour before and after shift This included brewed coffee, espresso drinks, and cold drinks Starbucks’s employees also receive one free pound of coffee a week for personal use When not working, they receive a 30% discount on all beverages or merchandise, this same discount applies to pre-bottled drinks and food items while on shift (John, 2006)

 Safety needs: All employees are offered medical insurance (including health, vision and dentil) Starbucks pay for a fair salary to help workers feel safe in their financial life Moreover, they allocate stock dividends to all employees with a free scrip issue for getting benefits from it [ CITATION Sce12 \l 1033 ]

 Love/social needs: The firm create a friendly work environment with many social welfare activities so that their employees build good relationships with each other

 Esteem needs: Starbucks respect employees’ ideas by listening to them and recognize their achievement by giving reward, bonus for their effort

 Self - actualization: Starbucks encourages their employees in making, developing and implementing the plan to promote their ability, good performance and reach the company’s goals as well [ CITATION Sce12 \l 1033 ]

b Application of Herzberg’s Two-Factor theory

This motivation theory is divided into two factors; these are Environmental/Hygiene

factors (job dissatisfaction) and Motivator factors (job satisfaction).

 Environmental factors

- Starbucks always creates a cozy environment for their employees and customer as well

- The firm focus on work - life balance for their employees by offer vacations, break time

- Starbucks provided medical insurance (including health, vision and dentil) and always adjust salary to ensure that they provide a fair salary to help them feel safe in financial life and contribute their best for the company’s goals

- They encourage employees work in team, and take part in social welfare activities to enhance and improve solidarity For instance, Starbucks established community services One of them called ‘April was our global month of service’ to provide volunteer opportunities for employees promote spirit, improve solidarity and contribute to communities

 Motivator factors

- Starbucks respect employees’ ideas by listening to them and recognize their achievement by giving reward, bonus for their effort

- The organization holds a contest such as Coffee Master to create a chance to the employees challenge themselves

- Starbucks encourages their employees in making, developing and implementing the plan to promote their ability, good performance

3.3 Evaluate the usefulness of a motivation theory for managers

At Starbucks, Herzberg’s theory is considered as one of motivation theories which managers prefer to apply for the workplace because of its effectiveness The effectiveness of the application this theory can be expressed through levels of job satisfaction and productivity of workers The analysis below will make more clearly

about usefulness of Herzberg’s theory through two factors: environmental factors and

motivators factors.

About environmental factors, Starbucks have many motivation policies so that its

employees can work in the best working conditions Firstly, Starbucks has created a

great work environment which motivates and encourages employees’ contribution Due

to this, their employees feel a much closer and more familiar atmosphere than other place and reach work-life balance [ CITATION Sce12 \l 1033 ] Secondly, Starbucks regularly adjust their salaries to ensure that it is competitive salary so that their existing employees are not tempted to go elsewhere, and attract more talent people [ CITATION stand \l 1033 ] Thirdly, interpersonal relations are fostered through working process in a team and public welfare activities Therefore, teamwork and relationships among colleague are be strengthened

Besides, Starbucks also fulfil motivator factors effectively Starbucks has

acknowledged the role of their employees when they offer every employee join in making, developing plans and speak out their ideas As a result, there is no limitation in employees’ personal opinions For this reason, business can improve their strategies even innovate by different ideas Additionally, one of the career advancement ways at Starbucks is to achieve the title ‘Coffee Master’ Employees have to go through a lot of competition as well as participate in training course to get this title It is considerable as

a chance for employees challenge themselves Moreover, the company reward their employees when they do well in their work All things help managers motivate employees contribute their best for the company

Thanks to implement effectively two factors above, the number of clients and revenue of the company is more and more increasing Nowadays, there are more than 7,500 Starbucks in hundreds of cities, in 25 countries around the world Currently, each week Starbucks sold more than 20 million cups of coffee, with revenue reached tens of millions of dollars Specifically, the total revenue increased 11%, reaching a record

$3.36 billion, the highest level ever in November, 2012 [ CITATION busnd \l 1033 ] It is undeniable that Herzberg’s theory has positive effect on management at Starbucks Therefore, Starbucks’s leader realizes that motivating employees is the key of the business’s success “Employees are the most important asset of Starbucks” [ CITATION Sce12 \l 1033 ]