Starbucks Human Resource Management Policies

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Starbucks Human Resource Management Policies and the Growth Challenge

Starbucks Human Resource Management Policies and the Growth Challenge


Human Resources Management (H R M)

Human Resource Challenges in the Global Environment In the next decade, international issues will become more important to human resource (hereafter referred to as HR) professionals in the United States as a growing number of businesses participate in the global marketplace. Indeed, nearly 17 percent of U.S. corporate assets are invested overseas. Through early awareness of emerging international trends, HR professionals can help their companies respond to the international environment in the way best suited to their organizations. Compiling a complete laundry list of topics for the HR professional to monitor would in itself encompass an individuals career.

The scope of this paper is limited to three issues that HR professionals should closely monitor in the expanding global market. First, management must be aware of the host country workforce framework and structure. HR professionals must provide these services to the company by developing sound approaches. Second, the growing importance of international labor standards has fueled the need to understand apply these standards overseas. Finally, with a growing reliance on computers in relation to HR programs, HR professional must be aware of HR integration during development of company intranets.

U.S companies must be aware of the host country workforce framework and structure. Russia provides an excellent example as a big country with big needs-millions of potential consumers eager for goods and services denied them under communism. Since the fall of that system, a new market economy has grown quickly. Foreign businesses (an estimated 35,000 registered enterprises, not including joint ventures) now compete with each other and with Russian startups for market share.


HR Planning and development

Today, most U.S. companies are looking to replace expatriate employees with Russians at all organizational levels. Cost is a big part of the answer, primarily because Russian salaries in U.S. firms average 20 to 30 percent below U.S. employees' wages, although the gap is narrowing, especially at senior levels. In addition, Russian workers don't receive the housing, travel, and healthcare allowances that U.S. workers require.

Another reason for hiring Russians is that they, unlike U.S. employees, are more likely to work long-term in a company's Russian operation. The hope is that these Russians will grow in their jobs, learn the trade inside out, become seasoned managers and spearhead their organizations' strategic planning. The senior managers in foreign companies that are staffing up are still largely expatriate. The problem is that it's hard to find Russians who've traveled, studied or worked abroad and have the right skills and experience for senior jobs.

The scarcity of Russian candidates able to fill management slots is due in part to a lack of familiarity with U.S. leadership and management, which calls for initiative and open communication. Most Russians have lived and worked in only one system, and many of these organizations were behemoths, and most jobs were highly specialized. The general director made all the decisions, and ...
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