The organizing function in management and resource optimization

Functions of management are usually defined as planning, organizing, staffing, directing, and controlling the various resources of the organization. A service-based organization such as the Starbucks Corporation must give particularly careful attention to the organizing function of management regarding its use of human resources, given that the public face it presents to the world is an integral part of the product's reputation (Allison 2010). Starbucks must also devote care and attention in creating its high-quality product, given that consumers will not return to the store if they are dissatisfied with the drinks and foods they buy at their local Starbucks.

Human resources

High-quality employee training became a critical part of Starbucks' branding, when it evolved into a publically-traded company. Unlike other fast food establishments, from its inception Starbucks' training program "included classes on coffee history, drink preparation, coffee knowledge (four hours), customer service (four hours), and retail skills, plus a four-hour workshop called 'Brewing the Perfect Cup'" as well basic register skills (Thompson & Strickland 2009, p.3). Training was directed and controlled in a highly calculated, top-down managerial fashion to ensure that all employees had the essential skills to consistently make great coffee.

Tight managerial oversight of training was necessary because, unlike other fast food establishments, Starbucks Baristas actually prepared the company's flagships drinks and did not merely reheat frozen and reconstituted foods. Espresso shots had to be pulled from the coffee maker after 18- to 23-seconds, milk for lattes and cappuccinos had to be steamed to at least 150F but never more than 170F; customers who ordered bulk coffee had to be given exactly one pound of beans "not .995 pounds or 1.1 pounds;" coffee could not sit more than 20 minutes; and dissatisfied customers were given "a Starbucks coupon that entitles them to a free drink" (Thompson & Strickland 2009, p.3). Employees were not permitted to wear perfumes or colognes that might interfere with the store's coffee odors. Starbucks' staff, on average, tended to be more highly educated than the average food franchise employees. They were selected for their passion for coffee and not simply because they were willing to work a certain number of hours each week at minimum wage.

Starbucks' expansion was carefully coordinated and planned to ensure heavy company oversight over barista training. "For each targeted region, Starbucks selected a large city to serve as a 'hub'; teams of professionals were located in hub cities to support the goal of opening 20 or more stores in the hub in the first two years. Once stores blanketed the hub, then additional stores were opened in smaller, surrounding 'spoke' areas in the region" (Thompson & Strickland 2009, p.3). When Starbucks felt that its baristas nationwide were not performing up to standard, it closed all of its stores on the same day, regardless of location, to retrain its baristas. "Inside, more than 20 Starbucks employees, including people from its Seattle headquarters office, talked about coffee and customer service. 'The perfect espresso is like honey pouring from a spring,' a video message told employees," voiced by the company CEO Howard Schultz (Allison 2008). Schultz coordinated and organized the nationwide training effort himself, part of the hands-on managerial style that is characteristic of Starbucks. Customers should expect personalized, high quality service, and the training of the baristas was given equal attention as store layout, product marketing, and promotions.

Schultz orchestrated Starbucks' expansion when it was a small Seattle-based coffee store with a reputation for producing good coffee, but little else. When be became part of the management team, "Schultz spent most of his waking hours in the four Seattle stores -- working behind the counters, tasting different kinds of coffee, talking with customers, getting to know store personnel, and educating himself about the retail aspects of the coffee business" (Thompson & Strickland 2009, p.1). Schultz' managerial style remains equally hands-on today, in terms of employee training and management of his executive team. Schultz branded Starbucks as a company that genuinely cares about its employees and is a high-quality organization for which to work. Even part-time employees receive benefits such as healthcare. This fosters a sense of company loyalty amongst employees, and also conforms to Starbucks' 'feel good' image as a company that people are proud to patronize.

Product

Despite the 'brewing' controversy that current Starbucks coffee was not as high-quality a product as it was previous to the company's international expansion, patron loyalty for the product remains strong. Today, Starbucks stores offer a choice of regular or decaffeinated coffee beverages, a special 'coffee of the day,' "and a broad selection of Italian-style espresso drinks. In addition, customers [can] choose from a wide selection of fresh-roasted whole-bean coffees (which could be ground on the premises and carried home in distinctive packages), a selection of fresh pastries and other food items, sodas, juices, teas, and coffee-related hardware and equipment" (Thompson & Strickland 2009).

The company has had some limited expansion into music (selling CDs) and instant coffee. Starbucks coffee is priced mid-market, in comparison with very 'high end' coffees, yet is more expensive than bargain coffee at Dunkin Donuts and McDonald's and supermarket brands. The Italian names for coffee sizes have been much-mocked, but have become an integral part of the Starbucks brand. Yet Starbucks has also popularized coffee milkshakes like Frappucinos, which are not strictly in line with what a purist might consider high-end coffee. Starbucks' product line quite inclusive but managed in such a fashion that it does not lose its cache. Even the instant coffee it markets is considered 'high end' rather than generic. Yet the store also offers lower-cost items, such as cheaper drip coffee, so as not to alienate its customers on a budget. Starbucks markets itself as providing 'something for everyone,' and 'affordable luxuries' albeit with a strong emphasis on Free Trade coffee blends and beverages with a slightly European flair.