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Leadership And Operation Management | Starbucks Case Study

Introduction

The differences between the leader’s role and manager’s functions would be well understood in the organizational context with the help of developing theories that would provide more theoretical support. Leadership development is a core element of the organizational set up at any organization and the organizational culture is tied by the leadership and management and their relationship and differences would be discussed in this assignment in the context of Starbucks.

 

Assignment 1

Task 1

1.1 Comparison of roles and characteristic of leader and manager in Starbucks (P1)

In the context of Starbucks, the role of a leader is Starbucks would mean the ability to influence and motivate the employees to contribute to the success of the organization and also to meet its objectives. While on the other hand, the manager direct and controls a group of people for coordinating the group for completion of some tasks. Thus from this context, the characteristic of the leader and manager would also differ. The leaders at Starbucks are more charismatic, visionary and risk takers in terms of taking plunge into new ideas (Hill, Jones and Schilling, 2014). However, the managers are more rational and look in to regular problem solving (Buckingham and Coffman, 2014). They act on the availability of resources and lean towards intelligent and informed decision making. While on one hand the leader provides creative solution to problem situations and undertakes facilitative decision making, the manager is more task oriented and formulates strategies for creating teams and providing them with resources so that inherent risks can be managed (Christensen, Mackey and Whetten, 2014).

1.2 Difference between role of a leader and function of manager on the b ........

ganization and the organizational culture is tied by the leadership and management and their relationship and differences would be discussed in this assignment in the context of Starbucks.

 

Assignment 1

Task 1

1.1 Comparison of roles and characteristic of leader and manager in Starbucks (P1)

In the context of Starbucks, the role of a leader is Starbucks would mean the ability to influence and motivate the employees to contribute to the success of the organization and also to meet its objectives. While on the other hand, the manager direct and controls a group of people for coordinating the group for completion of some tasks. Thus from this context, the characteristic of the leader and manager would also differ. The leaders at Starbucks are more charismatic, visionary and risk takers in terms of taking plunge into new ideas (Hill, Jones and Schilling, 2014). However, the managers are more rational and look in to regular problem solving (Buckingham and Coffman, 2014). They act on the availability of resources and lean towards intelligent and informed decision making. While on one hand the leader provides creative solution to problem situations and undertakes facilitative decision making, the manager is more task oriented and formulates strategies for creating teams and providing them with resources so that inherent risks can be managed (Christensen, Mackey and Whetten, 2014).

1.2 Difference between role of a leader and function of manager on the basis of theories in Starbucks (M1)

There are combination of theories that may be applied for assessing the management in Starbucks. Depending on the nature of the workplace, the contingency management theory would be most appropriate. As per the Contingency theory, the managers at Starbucks make decisions on the demand of the situation rather than using ‘one size fits all’ approach. This theory also states that the manager invites participation of the employees and considers their views (Schyns and Riggio, 2016). However on the other hand, the role of the leader can be best envisaged through the Transformational Theory of leadership. As per this theory, the leader transforms its followers’ vision through inspiring them and there exists high level of trust and great interpersonal relationships that increases motivation both intrinsically and extrinsically (Landis, Hill and Harvey, 2014). Thus the employees at Starbucks have a sense of belonging to their leader who transforms their vision and motivates them to follow the vision and objectives of the company   (Hill, Jones and Schilling, 2014).

Task 2

1.1Role of a leader and function of a manager in different situational context in Starbucks (P2)

Starbucks has witnessed various kinds of situations during the period of its operations. Although the operations of the company has garnered great success for the company, there has been times when the company has also faced risk bearing situations that had cost its revenue and reputation (Miner, 2015). It has been seen that in crisis scenario in the past, the manager is invested with the responsibility of directing a group of employees and also coordinate the activities of different teams of the company and takes measures to avoid any risks that might affect the market shares of the company in the beverage industry (Miner, 2015). The leaders at Starbucks are more focused at driving behavioral changes in the employees so as to drive them to accept the crisis situation as a reality that needs to be faced and rather averted. Thus the manager is more concerned with the operational capabilities of the team and harmonizing their efforts for overcoming crisis situations, the leaders take risks and sort creative solutions for the problem situation and also push the employees and motivate them to believe in their vision so that such initiatives and ideas can be realized (Guarana and Hernandez, 2015).

1.2 Application and analysis of different theories and approaches of leadership in Starbucks (P3)

Leadership development is a core element of the organizational set up at Starbucks. The organizational culture is tied by the leadership of the CEO of the company that provides vision for the other leaders and managers to follow. The value of leadership is however not restricted to the top level management but is also felt throughout the structure of the organization (Landis, Hill and Harvey, 2014). The most relevant leadership theories applied in the context of Starbucks would be situational leadership; system leadership and contingency theory of leadership. As per the Contingency theory, the leader at different levels of the organization invites participation of the employees and considers their views so as to solve the problem or contingency at hand. Somewhat similar to application to Contingency theory is the Situational leadership. This theory states that the leaders at Starbucks such as the CEO of the company exercises great confidence and does not lose confidence to take risks to handle the situation at hand (Schyns and Riggio, 2016). They also believe in motivating the employees and other executives to cooperate and believe in the risks measures. System leadership is however more of a management principle where as seen in the case of Starbucks, the CEO, in lieu of their position in the system of the company exercise certain measures to establish association between different components of the organization. The power and position of the CEO enables them to exercise such leadership position.

1.3Strengths and Weakness of situational leadership (M2)

Situational leadership is one of the most recognized forms of leadership approaches to be adopted by most organizations in the present times. However, before any organization undertakes situational leadership it would be required to reflect upon the strengths and weakness of the situational leadership so that its effectiveness in the chosen organization Starbucks can be determined.

Strengths:

  • One of the most significant advantage of this kind of leadership is that it is practical, and has long been used for training leaders in different contexts
  • This kind of leadership is very flexible and can be applied in different kinds of situations and that makes the application of this leadership to be fit for different kinds of leaders and for different situations (Northouse, 2017). 
  • This leadership has great prescriptive value and the leader is in a position to suggest what needs to be done for tackling the situation.
  • There needs to be great flexibility of the leader as the leader has change its behavior, style and leadership style as per the demand of the situation (Northouse, 2017).

Weakness:

  • There are a lot of ambiguity in the power relationships between the leader and the subordinates. Thus the subordinates cannot clearly define the limits of the supervision of the leader (Van Wart, 2017).
  • As there are no  set rules for guiding the action of the leaders, the leader often takes certain actions in the vogue of the situation that fails justification
  • There is greater scope for arbitrary action of the leader

1.4 Evaluation of different theories to leadership and its effectiveness in Starbucks (D1)

There are various theories of leadership that are significant to the study of leadership style in Starbucks. Such theories and its implications need to be delineated so that their impact on the organization can be ascertained:

Contingency theory: as per this theory of leadership, no single kind of leadership is fit for all situations thus it is the situation that defines the leader and its leadership style. Success is thus defined as the result of various factors. In Starbucks, the presence of contingency theory can be seen in the lower levels of management where the managers act as per the need of the customers (Van Wart, 2017).

Situational theories:  the leaders take charge or  any situation at hand and their actions and leadership style is defined by the situation. The implications of the theory can be seen in the actions of leaders at Starbucks such as the CEO of the company exercises great confidence and does not lose confidence to take risks to handle the situation at hand (Priest and Gass, 2017). .

Transformational leader: the leaders believe in transforming the views and beliefs of the subordinates so that they can support the organizational objectives and can face risk situations. This is one of the elements of the ‘Team leadership’ at Starbucks where the leaders motivate and inspire the employees to take more initiatives and transforms their actions to support the organizational needs (Li, 2017).

Assignment 2

Task 1

2.1 Key approaches to operational management and role of leader and manager in Starbucks (P4)

There are various components that need to be catered in operational management as operational management is a very complex system. There are various theoretical concepts that encompass operation management that makes the operation in Starbucks to be successful:

  • Supply chain
  • Inventory management
  • Human resource management
  • Total capacity planning
  • Performance measures

All these components compose the approaches through which the operations management is carried out in Starbucks. The supply design constitutes design for supply of raw materials while the inventory management controls the supply and management of inventories in the stores and Starbucks outlet (Slack, 2015). The human resource management provides the personnel to support the daily operations. All these approaches are included in the total capacity planning and design and to assess the performances at the various outlets, performance assessment is done to identify risks.

The operational manager at Starbucks plays a significant role in managing the raw materials supply and personnel and staff to the company and outlets. Central to its job is the overseeing of inventory and supplies as well as determining needs of the staff and hiring employees for staff development (Johnson, 2014). The leaders in operation management such as the team leaders headed by CEO play a significant role in finding the weak links in the operations through the leadership and then discussing it with the managers. It also has to oversee the total capacity operations and suggest new means through which innovation can be brought to the operation management (Johnson, 2014).

2.2 Importance of operations management in achieving business objectives in Starbucks (P5)

Operations management is that part of the planning and development at Starbucks that forms the core of all production functions and the importance of operations management lies in the fact that it is not just concerned with the flow of input into output and the basic manufacturing process. Operations management at Starbucks has great role in the objectives and aims of the organization that focus on its quality and service to the customer service (Armstrong and Taylor, 2014). The operations management at Starbucks has a major role to play in quality management and overseeing delivering the best customer service that is the objective of the organization.

2.3 Measures used by managers and leaders for improving operational management in Starbucks (M3)

The managers at Starbucks are actively involved in the design of the premium goods and services emphasizing on the brand differentiation and company’s strategy. The operation managers are also involved in ensuring the quality management in the operations and supply chain so as to reinforce the brand image of the company. They also oversee the process and capacity design including the decisions to maximise the cost effectiveness through efficiency in workforce and the human resource capacity in the stores to meet the fluctuation in the demands of the customers (Armstrong and Taylor, 2014).

On the other hand the role of the leaders including the team leaders and the CEO of Starbucks are more adjoined in the layout design and strategy that the company adopts for its global operations because it is the design and the global strategy that defines the brand differentiation and competitive advantage of the company (Mason, Cole and Goza, 2017). The leaders also undertake measures to make sure that the Starbucks Café can provide warm and friendly ambience in the cafes so as to improve the customer experience. Thus the involvement of the leader is more in improving the organizational culture and behavioral aspects of the human resource management so that along with the workflow efficiency, the customer experience can be enhanced (Mason, Cole and Goza, 2017). The leaders also give great importance to the interest of its employees so that they contribute more effectively to the operations management.

Task 3

3.1 Factors that impact operations management and decision making in Starbucks (P6)

Starbucks has been very clear about its company’s objectives and thus has resultantly given much importance to such factors that matter the most to the company’s strategies and brand image:

Quality management: Starbucks ensures that the best efforts are taken in the operations management to ensure that best quality goods and services are delivered and that there is work flow efficiency

Process and capacity design: focus is also on building the capacity of the organizations for the success of the organization and this has been done by optimizing the design, efficiency and also by enhancing the flexibility at the work place and to adjust the cost effectiveness  (Slack, 2015).

Job design and human resources: the human resource management at Starbucks integrates the organizational culture in all the areas of its business. The organizational culture encompasses the ‘employee first’ attitude. They also have work team at the cafes. It uses the functional positions such as the HRM positions, inventory management in the decision areas and the culture is intrinsically woven with the job positions for ensuring best contribution to the jobs assigned (Mason, Cole and Goza, 2017).

3.2 Analysis of impact of factors on business environment and community (M4)

From the analysis of the various factors in the operations management it has been found that the various factors such as inventory management; quality management; services operations; Job design and human resource management have altogether contributed in their own way to the success of the company in the beverage industry (Mason, Cole and Goza, 2017). Through the strength of the operations management Starbucks has been able to carve a niche in the global operations. They have also been able to ensure the stability of the supply chain as well as the workflow efficiency. This strength in the supply chain and inventory management has supported Starbucks to drive its resources towards better human resource management so as to maximise the customer service experience at the Starbucks Cafes (Mason, Cole and Goza, 2017).  

3.3 Application of operation management and other factors and its impact on business environment in Starbucks (D2)

The planning and strategy at Starbucks is a culmination of different elements that have collaborated to form the strategic planning of the company that has provided it with the necessary support for building the company’s reputation. The operations management of Starbucks has contributed to the work flow efficiency in the organization that has led to better inventory management that has ensured optimisation of the resources. Apart from the operations management, Starbucks has also worked towards the innovation in the layout and design of the products and services that has give competitive advantage to the company and has also ensured its stability in the global operations (Slack, 2015). The best decision making at Starbucks also addresses supply adequacy, innovation and automation (Mason, Cole and Goza, 2017).. The flexibility to the operations has been provided by the flexibility in the schedules for the management personnel. This is streamlined with the objectives of the company to provide flexibility to the business processes (Armstrong and Taylor, 2014). Apart from the above factors that are part of the operations management and planning of Starbucks, the company also maintains the physical assets through its trained and dedicated employees motivated by the leaders.

Conclusion

Thus it can be concluded the in the assignment there has been discussion over the leadership and management aspects of Starbucks and the significant similarities and differences has also been highlighted. Various theories and models are used for highlighting the operation, role and responsibilities of the leaders and managers for deeper understanding.