Starbucks company
Starbucks is one of the most popular and successful companies that have stores in many countries. The size of the company is attributed to the critical organizational decisions Howard Schultz made from being an employee to the owner. I think the first decisions to retrain the staff and also creating a work environment that was fostered not only on “give and take” but on emotional attachment and trust among the top managers and the lower staff such as baristas was critical. The success of a business is determined by the organizational structure that ensures the business is run with passion and not solely because of rewards such as salaries and wages. Schultz created an environment that enabled everyone in the organization to feel at home to both the staff and other people through value to personal connections and building of relationships. The organization was able to offer CEO positions to other result-oriented employees, which is critical in establishing a just culture in the workplace and ensuring that creativity is incorporated to ensure organizational effectiveness. Etzioni compliance theory places this form of organizational structure as an exercise of normative power because Starbucks had intentions to create moral involvement by owning up to social responsibilities. The desire to make environmentally friendly products ensured that the company was not only interested in making a profit.
Schultz paved the way for Orin and Jim to become the company Chief Executive Officer which shows that Starbucks was not established under utilitarian power. Eztrion defines utilitarian power as a significant factor that ensures organizational effectiveness in the daily activities of a business. Starbucks’ initial desire was to grow continuously. Still, the owner knew that it required more than to make massive profits, and the appointment of Jim was welcomed because he had a friendly character and would even sometime visit baristas in their numerous store. The CEO and the junior staff interaction ensured that organizational power structure was less coercive or utilitarian, and actual attachment was initiated. These interactions, according to Etzioni, create moral involvement in the entire organization staff who feel and develop high intensity and thus devoting their loyalty and hard work to the organization’s success. The feeling of being acknowledged played a critical role in shaping positive organizational effectiveness. The decision by Schultz to call the operation manager from all their Starbuck stores globally ensured that they would be no calculative involvement. Etzioni explains calculative involvement, which as a negative approach that would not align with the founding traditions of Starbucks.
The Starbucks story is rather an appealing one because of its organizational structure and how it has effectively affected its success and challenges. Incorporating Etzioni’s compliance with can see that the owner was very eager to establish a heritage of normative and moral involvement. Starbucks wanted to offer more than just ordinary coffee, and it considered the whole process, which ensured that they maintained a personal attachment with customers and their employees. However, Starbuck as an organization was structured as a normative-moral, which was a facilitating factor in increasing organizational effectiveness. Etzioni compliance theory places this form of power and involvement as the best when it comes to creating an organizational environment based on values, pe5rsonal, and emotional attachment and trust. Starbucks traditions place its staff and customer as an integral part of their business, thus creating an effective environment where everyone would feel like their store was a “home.” The inclusion and interaction between the top managers and other subordinate staff ensured that a participatory management model was established in Starbucks, which gradually influenced their growth and customer retention.