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Question 1: The turnover rate at Starbucks is considered to be lower than other competitors. Using ANY ONE motivation theory as well as concepts learnt about motivation, analyze how Starbucks motivates employees and how this may result in low turnover and high job satisfaction (Make sure you apply the theory to the case study and use examples where possible to support your answer).
Question 2: The rapid expansion of Starbucks has resulted in an increase in the number of employees. Do you think Starbucks would still be able to motivate and retain employees in the same way it has if they were to make some cuts in their extrinsic benefits that they are currently offering their staff? Putting yourself in the shoes of Starbucks HR Director, what would be your decision? Justify your answer using concepts learnt in the chapter of Motivation & Decision Making.
Case Study On Starbucks' Human Resource Management Policies And Growth Challenges
Length: 6 pages (1822 Words)
Organization Behaviour Concepts and Models
Low Employee Turnover
According to the case study, the rate of employee turnover at Starbucks was 60 percent annually. The rate was much less by one-third of the average of other retails in the industry. Employee turnover refers to the number of times that an organization replaces employees. A new one and the cycle proceeds usually replace employees who leave an organization for various reasons. The number of time that these happen is used to determine employee turnover rate. Therefore, when the rate is low, it means that employees rarely leave a firm and as a result, replacements are minimal (ICMR)
Low turnover results from employee satisfaction. Apparently, employees at Starbucks are happy of their practical terms and consequently, tend to be retained for longer. The management has applied the suggestions of the cognitive evaluation theory.