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A Critical Analysis of Starbucks' HRM Policy

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As Reeves and Dare (2007) describes that we can get high performance from an employee by increasing motivation and abilities by using any method. In the field of HRM and organizational performance a significant contribution is from Huczynski and Buchanan (2009). According to them, when HRM activities are designed in an organization according to its strategy it increases the productivity level of the organization, reduces its turnover and also enables it to perform well in financial sector (Huczynski and Buchanan, 2009). Their findings proved that when organization succeeded to satisfy its workforce and make them committed it can make its performance incorporate sector much better.

The productivity is also very much dependent on the job design (Huczynski & Buchanan, 2009). Starbucks’ Hrm Policies Different companies apply different human resource management strategies. Some companies base their strategies on intensive control over employees’ performance orienting first of all on the outcome. Such type of strategy is not appropriate in the modern world as now employees try to improve there performance in order to be valued and rewarded. Thus, the human resource management strategy of Starbucks is based on satisfying the interests of employees by means of rewards and improving working conditions.

Such strategy brings the company competitive advantage and improves employees’ performance. Huselid and Becker (1995) have critically examined the human resource management system and find out the three major dimensions of it. a) recruitment and selection policy Many studies have proved that an effective recruitment and selection process in organization is very much crucial for its success and to achieve high performance goal of the company. The system should be precise and should be designed to meet the overall organizational goals according to Reeves and Dare (2007).

The researchers have found that there is a positive relationship between effective recruitment and selection process of the company and overall organizational performance. When organization selects employees who best match its requirement and have enough abilities to contribute to the overall success of the company they can reduce their cost of employee development, they don’t need to invest in employee training programs that costs a lot to the organizations. Starbucks is one of the world biggest organizations and every day it adds few new stores in its large profile and in order to maintain this magnificent growth Starbucks has to hire 200 new employees every day.

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