EXPERIENTIAL EXERCISES & CASES

Experiential Exercise: Developing an HR Strategy for Starbucks

Purpose: The purpose of this exercise is to give students experience in developing an HR scorecard. Students should understand the HR scorecard approach to creating a strategy-oriented HR system, and in particular, the seven steps in the process.

Instructions: Set up groups of three to four students for this exercise. Using whatever sources are available, each group should outline an HR scorecard by addressing each of the eight steps in the process, starting with a short definition of the business strategy for the organization.

Ask each group to present their scorecard to the rest of the class. At the end of each presentation, ask the class to provide feedback on the scorecard, commenting on the following:

a- How effectively does the scorecard measure

1) organizational outcomes,

2) workforce competencies and behaviors, and

3) HR system policies and activities?

b- Comment on how effective the scorecard is on the following dimensions:

1) assess HR’s performance objectively and quantitatively

2) as a tool for the HR manager to build a measurable and persuasive business case for how HR is contributing to achieving the organization’s strategic goals

EXPERIENTIAL EXERCISE

Developing an HR Strategy for Starbucks

By 2010, Starbucks was facing serious challenges. Sales per store were stagnant or declining, and its growth rate and profitability were down. Many believed that its introduction of breakfast foods had diverted its “baristas" from their traditional jobs as coffee-preparation experts. McD0nald`s and Dunkin Donuts were introducing lower priced but still high-grade coffees. Starbucks’ former CEO stepped back into the company’s top job. You need to help him formulate a new direction for his company.

Purpose: The purpose of this exercise is to give you experience in developing an HR strategy, in this case, by developing one for Starbucks.

Required Understanding: You should be thoroughly familiar with the material in this chapter.

How to Set Up the Exercise/Instructions: Set up groups of three or four students for this exercise. You are probably already quite familiar with what it’s like to have a cup of coffee or tea in a Starbucks coffee shop, but if not, spend some time in one prior to this exercise. Meet in groups and develop an outline for an HR strategy for Starbucks Corp. Your outline should include four basic elements: a basic business/competitive strategy for Starbucks, workforce requirements (in terms of employee competencies and behaviors) this strategy requires, specific HR policies and the activities necessary to produce these workforce requirements, and suggestions for metrics to measure the success of the I-IR strategy.

CustomerFinancialInternalOrganizational Capacity