Analysis of Starbucks coffee company’ employees misunderstanding utilizing organizational behaviour approach

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29 November 2021

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Analysis of Starbucks coffee company’ staff misunderstanding utilizing organizational behaviour approach


            In each organization, organization behaviour is very important in any respect levels of employees from administration to employees. Organizational behaviour deals the research of personality of individuals or characteristic of a gaggle in an organization together with inner processes of a company so as to determine the effectiveness of the organization or develop a solution (Hellriegel, & Slocum, 2010 p.

5). It helps folks to work together, understand each other and discover solution to behavioural problems, which culminate in improved working environment thus resulting to improved productivity.

Therefore, it is necessary for administration to ensure that effective employees accepted behaviour is maintained throughout the organization. It is essential to understand group behaviour so that decision making course of and necessities of workers are addressed in one of the best ways that wouldn’t have an effect on efficiency of an organization (Mullins, 2013 p. 77). This paper will contain solving group problem that faced Starbucks Coffee Company in 2005. The problem involved misunderstandings between workers and administration leading to communication downside in the company, which significantly affected its productivity in New Zealand (Mark, 2013 p.

10). The problem triggered workers dissatisfaction and lack of motivation and thus giving poor companies that in flip decreased production output and thus the company making losses. The misunderstanding between employees and management led to change of employees’ behaviour and so it was important to alter their behaviour in order to notice the productiveness of the corporate. Employees’ dissatisfaction and misunderstanding in an organization causes low dedication from workers thus affecting the performance of an organization (Hellriegel, & Slocum, 2010 p. 502). Although the problem could be addressed utilizing numerous organizational techniques corresponding to organizational growth, organizational behaviour strategy remained the best approach to find the answer of the matter in order to improve the effectiveness of the corporate.

            Starbucks coffee firm is a multinational company (MNC) that was started in Seattle in 1971 (Starbucks Coffee Company, 2014 b Company Information. Starbucks Coffee Company). The company specialises in coffee and coffee merchandise. It has its shops established throughout the six continents with a lot of the market being concentrated in America, Europe and Asia. The firm has more than 15,000 shops in additional than 50 countries in six continents. The company efficiency and productiveness increased steadily over years turning into among the best coffee promoting company in the world. It continued progress and growth led to opening of a brand new store in New Zealand in 1998 (Starbucks coffee firm, 2014 a Extends the Starbucks brand into grocery channels across the U.S. Launches In New Zealand, Starbucks has more than 29 stores and over 3,seven hundred workers serving greater than 60,000 clients every day operating underneath restaurant Brands franchise (Starbucks Coffee Company, 2014 c Starbucks Coffee Company New Zealand; Restaurant Brands, 2014 About Us-Restaurant brands). Similarly, the shop in New Zealand has improved progress and development giving it benefit in the market. However, poor administration in 2005 led to it making losses due to misunderstanding between staff and administration. Communication barrier caused by misunderstandings had been the major causes of its poor performance (Phillips, & Gully, 2012 p. 497).

            The company’s group culture involves revolutionary merchandise such as wifi espresso home and employees motivation via reward and enticing remunerations. Similarly, the corporate advocated for organizational culture where highly educated employees give top quality providers to shoppers through exceptional performances that has rewards (Moncarz, Zhao, & Kay, 2009 p. 447). This tradition has enabled the company to have aggressive advantage and have the power to command a big share of market in all its stores opened throughout the globe. New Zealand is certainly one of the openings that has also had an exceptional development and contributed to the growth of the company. However, the growth was halt in 2005 when the company suffered loss that was brought on by misunderstanding between varied ranges of administration. The misunderstanding was a result of a choice made by the management not to improve their wages to $ 12 per hour as workers had requested. The company has additionally been said to discriminate its staff by giving low wages as evidenced in Starbucks shops in New York (Bussing-Burks, 2009 p. 90). The decision affected the connection between workers and administration. Moreover, the efficiency of the staff was negatively affected and consequently the behaviour of the staff changed from the culture of exceptional performance and high quality providers to employees thus affecting the company’s efficiency.

            In every group, workers and managements operate under a pre-established behaviour that ensures its effectiveness. A optimistic behaviour have to be maintained or improved so as to improve the performance of the company (Luthans, & Youssef, 2007 p. 337). Therefore, the management must guarantee an optimum enterprise setting is highly maintained in order to take care of the behaviour of employees’ at the simplest and productive stage. Consequently, administration ought to try to maintain their administration behaviour as a outcome of their behaviour can affect that of the staff (Gelf, Erez, & Aycan, 2007 p. 494). The combination of this behaviour in direction of the effectiveness of a corporation ensures that a constructive culture is maintained and that the organization is ready to keep its productiveness, growth and development. Similarly, solutions to crises are easily laid off.

            In order to address this problem, organizational behaviour models or theories have been helpful in encouraging the employees and administration to change their behaviours and adapt their past or new behaviour that may guarantee effectiveness within the firm. Some theoretical approaches to this downside included techniques, neo-human relations, decision-making, scientific management, human relations, and bureaucratic method (Mullins, 2013 p. 43). The organizational behaviour models are important in addressing human behaviours and understandings their relations for efficient implementation of changes that might ensure company’s productiveness in maintained and improved.

            Neo-human relations method entails how an organization is ready to define buildings of administration in a way that it is ready to encourage workers via satisfying their fundamental wants and giving enticing remunerations. The mannequin helps in addressing employees’ dissatisfaction (Mawhinney, 2011 p. 313). In addition, the method focuses on the wants to deal with to the employees’ issues such as salary increment and other needs. An organization that uses this approach is prepared to keep it excessive predominance and progress. A resolution to the problem at Starbucks coffee company required management adapt to neo-human method by ensuring that the wants of the staff could possibly be attended. The solution might be realised if administration may improve plan to increase the wage of the staff to $ 12. The increment might be promised to be carried out in phases so that the financial performance of the company wouldn’t be affected. Consequently, employees’ motivation may b e achieved that could results in elevated productiveness of the company. However, leaving the situation without a answer would end in strikes, which might further have an result on the reputation of the corporate as well as workers decreased performance. Organization that does not perceive the behaviour of the workers fails to meet the wants of employees and this will likely cause passive participation and resistance rather than work (Bloisi, Cook, & Hunsaker, 2007 p. 113). Strikes coupled to employees’ underperformance could greatly have an effect on the company and might cause its collapse if an immediate action could probably be delayed. From this approach, the duties of leaders are to be sure that the goals of workers are achieved so that they’ll facilitate the achievement of the company’s goals (Bratton, 2010 p. 200).

            Decision making model would even be an important method to handle the issue with Starbucks coffee company. In decision making model, a decision that’s arrived at isn’t a essentially an optimum answer but an answer that benefits all of the parties and improve the performance of the corporate (Klein, 2008 p. 457). The decision making model optimise the change of behaviour that’s aim oriented. The manner by which a choice is made is essential in an organization (Griffin, & Moorhead, 2013 p. 215). An organization that is able to make moral decisions have high doubtless hood of succeeding and reaching high development. Poor decision making leads to poor administration and misunderstanding between the administration and employees and end up affecting the efficiency of the company negatively (Stein, 2010 p. 87). This is what was skilled in Starbucks Company in 12 months 2005. The decision to say no to lift the payments of employees with no major purpose or a proper communication brought on the administration to search out themselves in a disaster of management and efficiency of the corporate. The drawback can be addressed via moral determination making process the place all of the stakeholders are involved in determination making (Punnett, 2009 p. 31). In moral choice making, the views of the employees may have been addressed and that of the corporate ending up in a compromising situation where each events points are met in agreement.

            The determine 1 above exhibiting a call making downside that helps a corporation to restrict unethical choices that could affect the efficiency of the company. The determination to say no wage increment was alleged to comply with all the steps whereas involving stakeholders and thus the choice would not have affected the employees’ behaviour.

            The drawback in Starbucks could also be addressed using scientific management model. In this mannequin, the effectivity in work place can be monitored and adjusted accordingly utilizing varied leadership skills such as charisma (Nelson, & Quick, 2012 p. 443). The mannequin is helpful in understanding the target and objectives of the corporate so that each problem or problem is addressed in accordance to the goal of the company (Borkowski, 2011 p. 201). In this model, managers are the general supervisors of the company and that they need to ensure that the corporate doesn’t lose for his or her mismanagement. For this cause, managers assign job to workers and monitor in order that they can give an output of a high quality work. Therefore, the management was accountable to manage the work of workers throughout in order that they might have made sure that every worker was productive and thus preventing underperformances during the crisis period (Punnett, 2009). The strategy makes certain that the goal of the corporate is at all times on the focus and so its progress isn’t compromised regardless of the issue. Starbucks management had failed to utilize this strategy they usually left the corporate to be controlled by staff changed behaviour thus low efficiency. The mannequin is important to each firm that is going through employees’ efficiency disaster so that they performance of the corporate remain on focus.

            The determine 2 above shows the mannequin for scientific leadership models. The choice that is made is targeted on the result as proven in the determine above. All the opposite elements ought to be considered guaranteeing that aim of the company isn’t compromised.

            Human relations or group behavioural concept is another model that’s finest for addressing the problem at Starbucks. It bias necessary for a corporation to grasp the behaviour of staff apart from economic worth corresponding to wages (Netting, & O’Connor, 2013 human relations). How staff relate with each other in place of work determines their performance in places of labor and known as “Hawthorne Effect” (Dalton, Hoyle, & Watts, 2011 P. 13). The mannequin was discovered to be operational in both informal and formal organization. A good relation between workers and administration permits clean choice making leading to quick and higher solution. In addition, good interpersonal relation in a company helps to improve the efficiency of workers and staff (Reece, 2014 p. 5). This mannequin would have allowed the management to make appropriate choice on the employees pay and stop misunderstanding thus sustaining the efficiency of the company.

            System model would also be necessary in addressing misunderstanding problem that led to poor performance of Starbucks coffee company. In this strategy the corporate is ready to measure the output in respect to inner operations. The management is ready to monitor all of the production processes and be able to consider the efficiency of the company on the basis of employees’ productivity (Mbanote, 2011 Models of organizational behaviour). Therefore, the management would have been able to realise that there was a problem earlier than hand and make use of numerous management expertise before an issue could erupt. When productiveness of workers decline, the management finds the instant cause and addresses the issue giving an instantaneous and effective choice (Noble, 2014 p. 15). The problem of workers fee would have been addressed before the company could make losses through low productiveness. Consequently, the employees wouldn’t have reached to the extent of dissatisfaction and reduced performance. Thereby, the efficiency of the corporate would not have been affected.

            Contingency model is one other essential organizational behaviour concept that was useful for Starbucks coffee company. In contingency model, a scenario forces adaptation of one of the best leadership abilities (Tushman, & Romanelli, 2008 p. 174). In other phrases, it’s situational leadership expertise that chief are capable of creating to have the ability to regulate their leadership and relationship behaviour to handle the situation at hand. The model was developed by a administration theorist named Fred Fiedler in 1967 (Singh, 2010 p. 275). In Starbucks coffee company, the effectiveness of leaders in the prevailing situation was necessary in addressing employees’ dissatisfaction of their choice. The contingency fashions require leaders to adjust with the scenario in order that the performance of a corporation just isn’t affected. However, the management in Starbucks New Zealand Company compromised on the prevailing situation resulting in decreased performance of staff and productiveness of the company. The case required an instantaneous determination that might have maintained the motivation of employees and job satisfaction. An quick assembly with employees’ union leaders and addressing the problem would have stored the hope of workers a live and they’d have continued acting at their degree greatest thus the growth and productivity of the company would have been maintained. Moreover, reverse of the decision and initiation of a new process to make an alternate decision that might involve all of the employees’ representatives and different stakeholders would have calmed the scenario. This would have prevented workers from changing their behaviour and concentrate on the aim of the company to improve its productivity. Contingency model of leadership is considered one of organizational behaviour that has been tailored by many corporations that have found themselves in crisis and wishes to save the corporate (Zaccaro, 2007 P. 6).

            Bureaucracy mannequin is certainly one of the administration fashions that’s extremely utilized in Starbucks coffee company. The level of administration is divided in ranges of management and this make it difficult for workers to work together with the top management instantly. The excessive stage of paperwork serves as an obstacle of employees to air their grievances and thus any choice or problem should be addressed via a hierarchical process making it to take plenty of time (Greenberg, 2013 bureaucratic model-ideal types). In the case that occurred to Starbucks would have been solved in good time and minimized the effect that was caused by the situation. However, the decision had to comply with a protocol that took plenty of time and a variety of the choices had been being objected at completely different ranges. Therefore, staff received impatient they usually began reiterating via low efficiency and low productiveness that affected greatly the efficiency of the corporate. Bureaucratic mannequin of group administration requires resolution to conditions that are not urgent and that could not affect the productiveness and effectiveness of the company (Boin, & Hart, 2007 p. 43). An pressing scenario requires fast determination making and action earlier than a company is affected negatively. Therefore, urgent answer was required in Starbuck and so bureaucratic mannequin was not acceptable.


            Organization behaviour is the examine how individual and groups of people interact with the interior processes of a corporation with respect to effectiveness of an organization. Starbucks coffee firm skilled a change in behaviour of staff in New Zealand after a misunderstanding on the increment of wages to $ 12 a day. The employees’ change of behaviour affected the effectiveness of the corporate resulting to poor financial performance. Therefore, it was needed for the corporate to use varied group behaviour fashions or theories in order to understand and address the change in behaviour so that the effectiveness of the company in providing companies and products might be resumed. Some of the fashions included neo-human relations, which entailed an strategy that ensured that management could have the flexibility to motivate employees by way of satisfying their basic needs and giving enticing remunerations that may lead to change of behaviour and thus affectivity in the firm. In addition, other models that were essential in addressing the problem at Starbuck had been human relations, contingency management mannequin, system mannequin, scientific management model, decision making model, and bureaucratic models. The fashions are necessary in shaping the management and workers behaviour towards efficient efficiency of the group. These models of organization behaviour didn’t come into play before the crisis and instantly after the disaster thus affecting the performance or the group negatively.


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StudyScroll. (2021). Analysis of Starbucks coffee company’ employees misunderstanding utilizing organizational behaviour approach [Online]. Available at: [Accessed: 9 August, 2022]

"Analysis of Starbucks coffee company’ employees misunderstanding utilizing organizational behaviour approach" StudyScroll, Nov 29, 2021. Accessed Aug 9, 2022.

"Analysis of Starbucks coffee company’ employees misunderstanding utilizing organizational behaviour approach" StudyScroll, Nov 29, 2021.

"Analysis of Starbucks coffee company’ employees misunderstanding utilizing organizational behaviour approach" StudyScroll, 29-Nov-2021. [Online]. Available: [Accessed: 9-Aug-2022]

StudyScroll. (2021). Analysis of Starbucks coffee company’ employees misunderstanding utilizing organizational behaviour approach. [Online]. Available at: [Accessed: 9-Aug-2022]

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