- Managing the Human Resource
- Executive summary
- Various organizations nowadays have adopted the high commitment model of management which mainly emphases on the need to develop organizational commitment among the employee. One of the major assumptions in the high commitment model is that involving the employee in the management can help to lower the labor turnover rate and improve the employee performance. Implementing the high performance model of management can help to improve the overall organization performance and in turn help to ensure that an organization achieves competitive advantage. In order to analyses the role of the high commitment model of management this paper uses the Starbuck as the basis of the study. Analysis of the Starbuck management it is evident that the management of the company has committed effort towards ensuring that they provide their employee with a good working environment. Through involving their employee in the management of the company affairs it has managed to motivate their employee to continue working for the company. In addition, through ensuing that they implement programs to help meet the needs of their employee the company has managed to grow and increase on their market share.
- Introduction
- The high commitment model of human resource management is one of the models that embrace the various workforce commitment and identification with the organizational values and objectives. This model aims at ensuring that the employee are able to control their own behaviors rather than controlled by the sanctions and pressure external to an individual. In order for the human resource manager to implement this type of approach there must be a clear development of the career ladder that emphasis on trainability and commitment. In relation to this the human resource manager need to ensure that there is reduced hierarchies, which in turn helps to end the status differentials within an organization. Analysis of the Starbuck it is evident that high commitment model of management has been adopted. This is because the human resource management of the company has committed effort towards ensuring that their employees are motivated to continue working for the company. The management of Starbuck has also invested in training their employees in order to ensure that they are equipped with skill they would require to perform their duties efficiently. In addition the management of Starbuck has also committed effort towards ensuring that they put the welfare of their before any other factor this is evident in their company objectives of ensuring that they provide a great work environment and treat their employee with respect and dignity.
- High commitment management model
- High commitment model of management mainly aims at increasing the efficiency of the employee in an organization and mainly relies on the condition that helps in encouraging the employee to identify with the various goals and objective of the organizations (Armstrong, 2010, p.48). The following are some of the features of the high commitment management model used in human resource management.
- Employment security
- Under the high commitment model of management the organization must ensure that they provide their employee with the employment security (Marchington & Wilkinson, 2006,p.73). Ensuring the employee security helps to provide a positive psychological motivation to the employee. In this case the human resource manager should ensure that they device clear policies that govern the employment terms. The employee should therefore be treated as a critical asset in an organization and not as a variable cost (Gilmore& Williams, 2012, p.257).
- Efficient selection and recruitment process
- Selecting and recruiting an outstanding people is critical step in ensuring that an organization achieves a sustained competitive advantage. The management of the organization should ensure that they implement effective measure to regulate the selection and recruiting process ( Marchington & Wilkinson,2006,p.75). In this case the human resource manages need to prepare psychometrics test in order to ensure that the only hire competent individuals. In addition it is important for the management to ensure that properly advertise their vacancies in order to attract large number of applicants.
- Extensive training, learning and development
- The high commitment model of management also involves ensuring that the employees are given adequate training they need in their workplace. Providing training to the employee helps in addressing the various weaknesses that the employee might be facing in their workplace (Pavelich, 2011, p.40). In relation to this proper training allows the organization to strengthen those skills that the employee may require while performing their duties. Most importantly providing the employee with adequate training helps in promoting the employee satisfaction. This is because when the employee are provided with an opportunity to improve their skills they feel appreciated and hence they are able to support the various goals and objectives of an organization. In addition it is important to note that through providing the employee with a training opportunity the employee are able to improve on their performance.
- Employment involvement
- The employee involvement is one of the key components of the high commitment model of management (Gilmore& Williams, 2012, p.260). In this case the human resource manager should ensure that they provide their employee with an open communication system where they are able learn the various policies of the company. Through involving the employee in an open communication system the employee are able to feel that they are trusted and treated in open and positive manner. Involving the employee in the decision-making can help to motivate the employee since they are able to feel as part of the team. Moreover when the employees are involved in the decision-making they are able to gain both professional and personal stake in the organizational success. Involving the employee in the decision-making can help to save money and resources. Teamwork is another aspect that is enhanced when the employee are involved in the decision making process (Armstrong, 2008, p.56).
- High compensation levels
- In order to ensure that the high commitment model of management is implementing in an organization there is need for the management to ensure that they introduce the performance related rewards systems. Proper implementation of the reward system the can help to motivate the employee. According to Beer (2009, p.3) the reward systems are mainly involves analyzing the employee performance. This is therefore implies that proper implementation of the reward systems can help the organization is able to achieve their goals and objectives. Most importantly implementing the various compensation methods in an organization can help to increase the on their productivity. Use of the reward system can help in the employee retention. This is because the reward system helps to provide direct incentives for the employee retention mainly through giving the employee various series of long-term projections and goals. In relation to this the reward system helps to implement the healthy working relation relationship since it help to ensure that the entire workforce are committed towards meeting certain objectives. In addition it is important to note that the introduction of the various compensation levels in an organization in turn helps to ensure that the employee develop their professional skills that can transform the organizational culture.
- Advantage of adopting high commitment model of management
- Various studies indicate that there are substantial economic benefits of adopting the high commitment model of the management (Holbeche, 2013, p.202). In one study carried out in the textile industry that the companies, which operate in team-based, work and practice various forms of compensation they experienced 22% growth rate than the other companies that did not adopt such measures (Holbeche, 2013, p.202). The following are some of the possible advantage of adopting the high commitment model in an organization.
- Improved employee performance
- The high commitment model of management plays a critical role in enhancing the employee performance. This is because it is based on the principle that the human resource manager needs to ensure that they involve the employee in making decision regarding the conduct of their jobs and in turn to participate in the business as whole. In order for the human resource manager to ensure that that the employees are involved in the decision-making it is therefore evident that the each job needs to have a considerable autonomy (Wood & Wall, 2007, p.1337). Involving the employee in decision-making can help to boost their morale in the work place. In this case the employees are able to understand that their ideas are an important contribution in the company and most importantly they have the power to influence the various outcomes of their own work. In relation to this involving the employee in the decision-making can also help in ensuring that the employee develops the positive attitude toward the various policies of an organization.
- Moreover conducting of the employee training can also help to enhance the employee performance. This is because through a series of the employee training seminars can help to equip the employee with the skill to enable them complete their job in a safe and at the same profitable manners. The workforce training is also known to equip the employee with new information and practices that can help to facilitate the employee retention. In addition through promoting the professional developed the employee are able to feel appreciated and recognized. Most importantly carrying out employee training can help in building loyalty among the staff members.
- Improved organizational productivity
- Implementation of the high commitment model of management can help to improve the overall organizational performance in several aspects. First implementing high commitment model of management helps to ensure that the human resource manager is committed towards improving the employee relation. This in turn helps to ensure that the employee welfare is given priority in the management (Kim & Wright, 2011, p.154).The model also helps in improving the communication of the organization, vision, mission and goals. Communicating the mission and vision of the organization helps to ensure that the entire organization is able to achieve their objectives.
- Moreover the practice of improving in the efficiency in the selection and recruitment process helps in ensuring that the organization acquires employee with more competences. In this case hiring competence employee helps to ensure that the organization acquires employee who are able to develop without the need for the company training. Through implementation of an effective performance management system the human resource manager is able to strengthen the employee-employee relations. In this case the management should ensure that they set the various performance standards in order to motivate the employee to produce their quality work. In relation to this there is also need for the human resource manager to ensure that he or she gets continuous feedback from the employee. In addition it is important to note through the implementation of an effective reward system to improve the organization performance. This because the employee are able to develop believe that an effective performance will lead to a certain reward. The reward offered therefore need to be attractive so that that the employee can have the desire to continue working hard for the organization.
- Role in gaining competitive advantage
- The high commitment model of management plays an important role in ensuring that an organization achieves its competitive advantage. In this case the human resource manager is involved in the hiring professional with experience and hence ensuring that the organization is able to produce quality products and services. The human resource manager can also be able to help improve the competitive advantage of an organization through organizing training program, which equip the employee with skill needed to produce quality services. In addition, through careful monitoring employee performance the management of the organization is able to ensure that the entire is able to improve on its overall performance.
- Evaluation of how Starbuck fits with the high commitment model of management
- Analyzing the company background its is evident that the company managed to grow from a small business to large company due to the commitment and the strong leadership qualities that were exhibited by the pioneers of the business. In this case the company under the good and able leadership policies of Schultz the company was able to expand to expand its services to Chicago, Vancouver, and Portland. In relation to this the leadership of the company were very innovative in the early 1990 the leadership of company had tried to explore new avenue of business through the use of the methods such as the mail order catalogue analysis in order to establish new business opportunities. Other policies that helped the company to grow include the issues of the public share, which were sold at $17 per share. The money that was raised from the issuing of the share was used to facilitate the growth and expansion of the business where by the mid 1990s the company had managed to expand overseas with store in country such as Japan and Singapore.
- Moreover the company managed to grow through the introduction of a variety of brands where it partnered with companies such as Pepsi in order to sell coffee flavored Cola drinks. In order to facilitate its expansion plans the management of the business had implemented policies of ensuring that they established store in every new regions. This was to help in reducing the distribution cost and the waiting period of the customers in that region and hence ensure that the business is able to satisfy their customers. In addition it can also be argued that the leadership of the Starbuck was committed towards ensuring that the company continues to expand this can be seen through the action of Schultz in 1999 to agree to step down in favor of Smith.
- Human resource management practice at Starbucks
- Various human resources management practice implemented in Starbucks indicates that the management was committed toward ensuring that the company maintained the high commitment model of management. In this case analysis of the company indicate that the company management had realized earlier that the motivated and committed human resource were the key to the successful retail business. One of the key human resource management practices that demonstrated the high commitment model of management in Starbucks was the selection and the recruitment process. In this case the management of the company had a motto that ‘to have a right people hiring the right people’. The management of the company therefore ensured that they hired people only due to qualities such as adaptability, dependability, and their ability to work as team.
- After care selection and recruitment of the right people the management of the company also implemented measure to ensure that the new employees were able to fit into the organizational culture. In this case the management of the company organized training programs that were meant to equip the new employee with the skills they would require in order to perform their duties effectively. The selected candidates were supposed to go for 24 hour training before they could assume any job at the company. This training program was carefully designed with a standardized curriculum that was prepared by a team of expert. The main aim of the training program was to help ensure that the new employee were equipped with the company philosophy and ensure that they were ready to offer quality service. It is therefore evident that the training done at the company is in line with the principle of high commitment since it helps to ensure that the employee are equipped with necessary knowledge they require in their work place. Besides training the new employee the company also organized refresher-training programs that were meant to maintain and enhance their self-esteem. In addition the regular training was done to help in equipping the employee with new skills to carry out their duties and functions.
- Moreover the company was also known in offering various benefit programs that helped to motivate their workforce to continue working for the company. In this case the company covered the part-time workers as well as their full time workers. This company program of benefiting their employee was rooted in the Schultz philosophy, which was “treat the people like family and they will be loyal and give their all”. In order to ensure that this principle was adhered the company also implemented programs that took into consideration the various physical, mental and spiritual well being of their employees. In relation to this the analysis of the company in 2005 indicates that it was among the best paying companies in the world where it is estimated that the company paid their employee an average of about $35, 294 per year. In addition to offering a good pay the management of the company also offered their employee with a comprehensive health benefits, stock options and other exciting offers.
- In order to ensure that the employee gave their best in the service delivery the management of the company designed programs that were meant to ensure that the employee had a stake in the company performance. In this case the company introduced programs where they gave their employee stock option to give them a real stake in the ownership of the company. The management of the company therefore allowed the employee who had completed six months and worked for a minimum of 20 hours a week to become eligible for the various stock options. Through the introduction of the stock ownership program the management of the company aimed at ensuring that they continue retaining the good employee and at the same time building their loyalty.
- Besides offering the monetary programs that were meant to motivate the employee the management of the company also had designed programs that aimed at improving the wellbeing of the employee in the company. In this case the company had an onsite fitness programs in several sites and provided a childcare programs and the elderly assistance to the employee. These programs were meant to help in addressing the person needs of employee mainly by providing the employee with the help whenever they required. One of the programs that helped to address the need of the employee was the ‘working solutions’ which helped to assist the employee deal with the expenditure. Another major program that helped to reinforce the wellness of the employee was the ‘partner connection’, which was meant to provide links to the partners who shared similar interest from across the organizations. In relation to this the company managed to form over 25 informal groups, which were ranging from social, recreation to parenting. In addition the company also provided soccer groups and choir programs that helped in nurturing individual with talents.
- To facilitate the employee satisfaction in the workplace the management of the company also implemented programs that allowed flexibility in the workplace. The management of the company began offering flexible working schedules to the employee in order to help them achieve work life balances. In relation to this the management of the company provided the employee with flexible arrangement to enable the employee choose their own benefit programs. This in turn helped the employee to choose their program based on the individual need of the employee and preference of the employee. In addition, it is also evident that the company conducted regular employee surveys that were meant to monitor the employee feedback and ensure that the company plans produced the desired result. In order to ensure that the company retained the top and well performing employee the management of the company introduced programs meant to reimburse the mental health treatment.
- The Starbucks organizational culture as established by the management of the company also played a role in the helping the company to recruit and retain the top performing employee in the organization. According to Maithel, et al., (2012, p.71) the organization culture plays in important role in ensuring that the organization achieves their objectives. The Starbuck organizational culture was rooted in its mission statement which stated that the main objective of the company to ‘provide a great work environment and treat each other with the respect and the dignity’. This mission statement played a critical role in maintaining the high commitment model of management. In order to enhance the mission statement the management of the company ensured that each of the employee were given a mission statement copy. In relation to this most of the company decision were made based on the on the guiding principle in the mission statement.
- According to the principle governing the high commitment model of management an organization should ensure that they involve the employee in making various decisions (Reisinger, 2010, p.17). In this case the management of Starbuck committed effort in ensuring that they treat the employee with the respect and dignity they deserve. One way in which the management of the company ensured that the treat their workforce with the dignity they deserve is mainly through ensuring that they promote equality within the company where all the employee were regarded as partners. Promoting equality within the company was meant to emphasize on humility among the employee in the company. Despite the rapid growth of the company it is important to note that the management of the company were committed towards ensuring that the they maintain an atmosphere of a small company where all the employee have a stake in the management. In addition it also evident that informality and the comaraderies were the common atmosphere that was maintained in Starbuck where the employee were encouraged to interact and among each other with a spirit of friendliness. One of the clear indications of the management to empower the employee and encourage innovativeness was the developed of the frappuccino brand. In relation to this it is also important to note the implementation of the ideas that were generated by the employee played a role in facilitating employee retention in the company.
- However it is important to note that despite the effort of the human resource manager to try to implement the high commitment model of management it is also evident that the company was also faced with several challenges. One of the challenges that the management of the company faced was the challenge of dealing with the high expenditure of paying their employee. In this case the managed of the company argued that the high expenditure was justifiable since they were successful due to the input provided by their employee. In addition the management of the company was also accused of discouraging the employee from joining the trade unions. In relation to this any employee who was found engaging in the union activity immediately. However the management of the company argued that they provided the best care to their employee and hence they were supposed to be contented with terms that they were offered. Despite the various challenges that the employee at the company faced it is important to note that the most of the employee in the company were satisfied with the various terms offered by the company.
- Conclusion
- From the above it is evident that implementing the high commitment model of management can help to ensure that an organization is able to achieve its objective. One of the ways of ensuring that the model is implemented in the organization is mainly through ensuring that the employee are involved in decision making. Moreover there also need for the management of organization to monitor the selection and recruitment process since it helps to ensure that the organization is able to acquire skill individuals. In addition there also need for the management of an organization to ensure that they carry out training to their employee in order to equip them with better ways to deal with the challenges in the workplace. Implementing the high commitment model of management can help to improve the employee performance and hence in turn improve the overall organization performance. Analysis of the Starbuck it is evident that the company has managed to increase their market share both in the local and international market mainly due to the implementation of the high commitment model of management. In this case the company has implemented several programs meant to improve the welfare of their employees, this is in line with the company mission of ensuring that they provide a great work environment and treat each with respect and dignity.
- References
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