Company leadership and management style analysis

Starbucks has perhaps one of the best managed organizations on the planet; this has been the linchpin for its success on a global level. Since each Starbucks operates both independently but synergistically with all other Starbucks, the end result is a strong management system that is bilaterally connected on a cross continental basis. At a core level, leadership within Starbucks starts from the top with CEO and Founder Howard Schultz.

Schultz takes a very employee centric style to management, he focuses on creating a model that would allow him to have unilateral control of the company on a macro-economic level while being able to allow independent managers and employees control on a micro-economic one. This management system has been extremely effective. On a corporate level, Schultz as well as his executive team makes all of the decisions relating to expansion, purchasing, supply-chain, operations, and human resources. However, each management level within the management chain has their own specific niche responsibilities that they take ownership over. Thus, management is organized by function, with each set of functions delineating the specific levels of management. Schultz is able to maintain such a bilateral model for several reasons, first he created a very strong management training system where each manager under his chain hires and trains their own staff with a strong regimen. By creating a system of training through apprenticeships, which ties into Starbuck's policy of hiring management from within, they are able to have a very low-cost management and promotion practice that is largely merit based. Second, Schultz takes specific care to provide a very strong employee centric model that makes employees feel that they are very well provided for. The result is that they are able to embrace the unilateral approach to Starbuck's management strategy as well as be content with the difficulties of the job. Examples of his approach are his provision of extremely generous healthcare packages, stock options, and credits towards continuing education. Ultimately, Starbucks has a top-down approach to management that is unilateral with managers following the line of Starbucks directives coming from the top; however they also take a very local-centric model on a ground level.

The management style of Starbucks is very permissive autocratic. Managers make unilateral decisions at every level of the Starbucks management chain in accordance with their responsibilities. This means that store managers make the ultimate decision on employment, revenue, operations details, and supply-chain. Just as Schultz as unilateral decision making authority on the macro-economic expansion of Starbucks. However, while the chain of command is a very traditional top-down model focused on the function of each specific manager, employees have significant latitude in carrying out their work. The emphasis of Starbucks is to create an employee-centric model since they are ultimately the individuals who define the personality behind Starbucks. Therefore each store employee is given authority within their specific limitations of the workplace; they can make decisions on reimbursements, purchases, discounts and a variety of other small details. The strength of Starbuck's management system in this case is that they built it upon a platform of functions. This means that each individual has complete control within the domain of their functionality within the company. This gives employees the feeling of control and freedom, while giving management the ability to have specifically focused and defined goals. The permissive autocratic style of management has been extremely successful and this is reflected in the successful expansion of Starbucks.