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Organizational theory and behavior are a vital part of any organization and can be a critical area that

determines an organizations success in any industry. If and how these concepts are uniquely applied,
organizations can define many different areas of their organizational structure. The Starbucks
Corporation has become a well-known globally successful company. In analyzing the application of
the organizational behaviors of communication, culture, and decision making, we can determine how
these concepts have made this corporation successful.
Organizational Communication
Communication in the Starbucks organization is exceptionally successful. In order to appear
transparent as an organization, provide sound direction of communication, maintain solid channels
of communication, and still the rumor-mill; Starbucks has taken immense strides in concentrating
on this aspect of its organizational behavior.
Although Starbucks goes to no great lengths to define or list their organizational structure (Hawks,
Kembell, Kembell, Olsen, & Perry, 2002), Recent changes in the organization define the organization
as a matrix structure (Shultz, 2008). These changes in the organization, done to improve the
customer experience, helped define the communication directions used by the organization.
George and Jones (2005), state that the matrix organizational structure is a very effective way to take
full advantage of all communication channels. Whether the organization wishes to label the
organizational structure or not, the structure is the pivotal point of success in its organizational
communication. The matrix structure, defined by Business Reference (2007), is made up of cross
functional work teams that have the ability to report to heads of the organization other than the
primary supervisor. This structural behavior has allowed the corporation to have successful
communication upward, downward, and laterally with its employees.
Maintaining effective communication, Starbucks uses a model of communication used generally by
smaller group networks, all channel communication. All channel communication allows employees
to communicate actively with each other, making all members free to contribute (Robbins, 2005).
Surely, this channel of communication has contributed to the success of the organization.
The organizational communication extends beyond just the employee and to the customer as well.
Starbucks does a great job in using technology, marketing tactics, and their employees to
communicate success, goals, and vision to the customer. Examples of this can be seen on the
Starbucks website. The website shares the companies guiding principles, vision as a company, social
responsibility, and mission statements.

What this has done is allowed the organization to maintain a transparent image. This has helped to
still rumors about the organization as these rumors come about. Starbucks has no problem rolling
out a time table for important decisions to employees and the public as important decisions that
come about. The organization will post on the corporate website and issue press releases that explain
decisions and behavior that could cause uncertainty. Starbucks does a great job of illustrating pros
and cons of future and current decisions. A good example of this can be seen in a recent posting of
the structural changes the organization made in order to maintain stability and continue excellent
customer service (Shultz, 2008). This posting, aimed to head off uncertainty and quall the rumor-
mill, explains to all partners of the organization (employees) that necessary changes will be made in
the organizational structure including consolidation, reorganization, and a stated number of
necessary layoffs (Shultz, 2008). These styles of communication will continue to allow the
organization to have success in their industry.
Organizational Culture
The Starbucks Corporation presents a strong appeal for potential employees with a strong
organizational culture. This culture maintains values that reach every corner of its organization; and
reaches outside its walls to the communities as well. Reviewing some of Starbucks' cultural
characteristics reveals how successful and appealing this cultural model can be.
Starbucks appeal
Many of the business concepts and the attributes of the Starbucks' organizational culture are very
appealing. First, Starbucks has become a well known global entity. This has been achieved by a well
recognized product that relies on its quality and unique marketing strategies. Customers can always
be expected to be confronted with enthusiastic employees, happy to serve, and focused on the needs
presented by their customers. Employees are well trained and have a vast amount of knowledge
about all the products offered by their company. The effort that is placed on the quality of their
product can be seen by the average consumer. They strive to provide an excellent product and, as
proven by their tremendous success, few patrons leave the store with any dissatisfaction. It is
apparent that the values and mission statements projected by the company are having great success
in creating a strong cultural behavior.
Values
Many of the values held by the Starbucks Corporation business model are shared by consumers and
adapted by closely watching organizations. One value that stands out for the company is in
community support. According to Starbucks Corporation (2008), they support many community
organizations such as Conservation International, The Earthwatch Institute, Save the Children,
Mercy Corps, the African Wildlife Foundation, and Planet Green. Values such as this have set
standards and send messages that profitable companies have a responsibility to the communities
that support their organization and to the needs impacting the environment and the world
surrounding them. As well, the Starbucks organization list in its guiding principles the importance of
embracing diversity, providing a positive work environment through respect and dignity, and a
commitment to satisfying all customers all the time (Starbucks Corporation).
Embodiment of cultural characteristics
Starbucks continues to satisfy employment needs and provide excellent customer service. In part,
this success can be attributed to the cultural characteristic of innovation and risk taking. At
Starbucks, employees are empowered and encouraged to think outside the box. Hawks, Kembell,
Kembell, Olsen, and Perry (2002), tell us that Starbucks encourages and rewards employees for
innovative ideas and encourages employees to sway from drink standards to meet the specific
request of the consumer.
This leads to the characteristic of attention to detail. Because the company promotes the enthusiastic
development and satisfaction of its customers, employees are expected to remain focused on the
needs of the customer. In this business, this may mean the development and use of special listening
skills and multitasking abilities. Employees, focused on the ever-changing ingredient orders that very
from customer to customer, show how valuable this characteristic is to the corporation.
The Starbucks Corporation also exhibits the cultural characteristics of people orientation and team
orientation. The company shows employees how important they are to their organization through
the decisions they make that impact different members. Some of this can be displayed through the
offering of health benefits to part-time employees (Hawks et al., 2002).
Cultural strength
Starbucks maintains a very strong spiritual culture. Marques (2008), states that "Starbucks'
performance toward suppliers, communities, employees and customers gives rise to the awareness
that Starbucks is one of those corporations that does not explicitly use the term spirituality at work
for their actions, nonetheless live it to the fullest." Starbucks shows this spiritual culture in their
promotion of fair trade, environmental contributions, workplace diversity, and its self acclaimed
statement of employee enlightened self-interest. The bonds that Starbucks' forms with its partners,
employees, and community are evident when one simply opens the front door of the establishment.
Starbucks maintains a strong appeal for a great place to work by asserting its strengths in its
acquired cultural characteristics, values, and spiritual culture. Many other organizations are
adapting these structural concepts after seeing the success of this organization. Starbucks can
maintain this strong organizational culture with continuing dedication to its employees and
customers. Starbucks has achieved success in corporate culture and has set the bar high. For many
organizations this should be a walk-up call to catch up.
Decision Making
Perception is a process that all people take part in as we move through the course of events in our
daily lives. When we meet people, make business decisions, evaluate performances, or pass
judgments, our perception surrounding such events help persuade our next course of direction
(Goldstein, 2006). In a sense, perception, accurate or flawed, is our reality. Causes that shape or
distort our perceptions have a tremendous effect on the impact of an organization's behavior.
Individuals, by nature, develop perceptive shortcuts when passing judgment and inflect both positive
and negative effects. Starbucks has realized this importance in the decision making process of its
organization and has been successful in modeling guidelines to direct employee behavior and shape
corporate perception to aid in its success.
Because Starbucks understands that decisions can be based on perceptions of individuals, influenced
by upbringing, beliefs, or current state of mind; models are developed to guide individuals through
the process. The creation of these models creates a standard that is followed to deliver a satisfactory
result. These models Identify a need, create a process to determine what qualifications will satisfy the
need, Identify matches to the need, then a decision is made on what match best suites the need.
These models are not a perfect solution to the decision making process. Errors and bias still creep in
to this process through the use of intuition, gut feelings, experience, and impulse (Robbins, 2005).
In addition, these models try to shape moral and ethical decisions, these models of ethical and moral
perceptions focus on rights of the individual and social justice. Standing on the platform of
transparency, Starbucks post these models of decision making behavior based on what they call the
"Ethical Decision Making Framework" on their website (Starbucks Corporation, 2008). Starbucks
list 6 points to this framework to guide and model decision making behavior:
1) Identify the ethical problem.
2) List possible solutions (what could you do?) and any obstacles to resolving the problem.
3) Seek input from others, if appropriate.
4) Determine the best approach (what should you do?).
Is it consistent with our Guiding Principles, the Standards of Business Conduct and any applicable
law or regulation?
Would your approach embarrass you or Starbucks?
How would your approach look published in the newspaper?
Would you be comfortable with the example it sets for future decisions?
5) If the path isn't clear, ask for guidance.
6) Follow through on your decision.
In addition to providing these framework guidelines Starbucks makes these statements very clear to
each employee:
You are empowered - You can deliver great customer experiences, knowing that Starbucks supports
you in doing the right thing and conducting business with integrity.
You have responsibility - You play a critical role in ensuring that Starbucks is a great work
environment and in protecting our culture, our reputation and our brand.
You have help - If you are unsure what to do in a situation; you have resources available to you,
including the Standards of Business Conduct and the Business Conduct Helpline.
You have a voice - When you believe something isn't right, you can speak up and share your concerns
knowing that Starbucks wants to hear them and does not tolerate retaliation against partners.
(Starbucks Corporation, 2008)
The corporation uses developed guiding principles and mission statements to guide in the decision
making process and these also appear publicly on their website. These models play a vital role in the
decision making process. Starbucks has been very successful in its ability to circumvent perceptive
errors through the use of relational models. However, even with the use of relational models, errors
and bias can still play a role in the decision making process, but the organization has adapted a level
of accountability through this process to minimize the impact of errors and bias.
Communication, culture, and decision making, represent only a small part of the concepts that
makeup organizational theory and behavior. A corporation that applies the concepts of
organizational theory and behavior can determine the success of any organization. As we can see,
Starbucks has concentrated on the successful application of these three areas of organizational
behavior. With this successful application, Starbucks proudly promotes and shares the models that
make them successful to anyone who cares to investigate. As a result, Starbucks continues to be a
successful corporation.

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