Unit 21: Training and Development (Assignment 1)

Dec 20

Sample work for unit 21 Training and Development. Resources for BTEC Level 3 Business Studies

Contributions of Training and Development at Starbucks

Introduction to Starbucks

Starbucks is a chain of coffee shops that began in 1971 in Seattle. They now operate over 32,000 stores in 80 different countries and sell a range of products including coffee, tea, merchandise and fresh food. Starbucks have been a public limited company and shares can be bought on the NASDAQ stock exchange. Starbucks have an inclusive approach towards their staff and refer to employees as partners.

Starbucks Mission

To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time

Starbucks Values

Creating a culture of warmth and belonging, where everyone is welcome
Delivering our very best in all we do, holding ourselves accountable for results
Acting with courage, challenging the status quo and finding new ways to grow our company and each other
Being present, connecting with transparency, dignity and respect
We are performance driven through the lens of humanity

Training and Development

Training and development are the activities that take place in a firm to improve the knowledge and skills of their staff. This is with the aim of improving the overall performance of the business. More specifically, training is the acquisition of new skills and knowledge that relate to an employees current job position and development is the acquisition of skills and knowledge that focuses on an employees individual strengths and weaknesses and may prepare them for a future role.

Reasons for Training at Starbucks

Businesses train their staff because improvements to an individual’s performance improves the performance of a business overall. By having better trained staff, quality of products and service improves which improves overall brand image. For example, if all Starbucks staff are confident on producing a range of different coffees to a high standard, customers who have a range of different tastes can all have their needs met. Customers who have their needs met are more likely to return and recommend Starbucks to their peers and give positive reviews online. This could potentially lead to increased sales which can in turn improve profits which are both common strategic objectives.

Starbucks state that ‘Our success depends on our partner’s (employees) success’. This reinforces that if staff meet their individual objectives, it should lead to the organisation meeting their overall objectives. That is providing that the individual objectives are based on the overall objectives of the firm. For example, improving the efficiency of each member of staff in Starbucks by one minute per day by improving their training on use of equipment can have the impact of improving the efficiency of the whole organisation by up to 345,000 minutes per day as they have 345,000 staff. This is an example of how achieving individual objectives can support the achievement of overall objectives.

One of Starbuck’s value statements is ‘creating a culture of warmth and belonging where everyone is welcome’. By having training in place for staff that meets departmental objectives such as customer service training, Starbucks are making staff feel valued and welcome. By having well trained staff, they are better able to meet the needs of customers and provide good service which in turn, creates a good environment for them.

Overall, Starbucks has developed a detailed and in depth training strategy which is embedded into their company values and objectives. In various places on their website, promotion of job vacancies and their mission statements, they communicate how their internal company culture is important as it has such a strong impact. It is therefore likely that the most important reason for training at Starbucks is to improve company culture.

Methods to identify Training Needs at Starbucks

In order to identify training needs at Starbucks, the HR team conduct a needs analysis. This is conducted by

Devising a strategic plan
Establishing the skills needed to achieve the strategic plan
Recruiting staff with best fit skill set
Planning training to enhance the skills of new and existing staff
Reviewing staff progress towards developing skills

One method that Starbucks use to review the performance of their staff is by using customer comment cards. This allows customers to give feedback on staff in an easy to complete form. In some stores staff are given bonuses if they achieve a consistently good score. This is a method to both make expectations clear and to motivate staff to meet performance targets.

Another method that Starbucks use to review performance of their staff is to use a 360 degree appraisal. This is a method of reviewing performance of staff by gathering feedback from a range of people that interact with them. This may include supervisors, subordinates, colleagues and customers. This gives a clear picture of how a staff member’s skills development is having an impact on overall company performance.

Types of Training and Development Used at Starbucks for Baristas

Induction training

Starbucks has a two day induction programme for new recruits.

On the first day staff are taken on a tour of the store, do coffee tastings and are introduced to key learning materials such as

The training booklet which includes self-guided modules on the key skills baristas will need to demonstrate in their role. This includes making coffees, customer service and correct use of equipment.
Coffee and tea passports which contain one page per drink served at Starbucks with key information about the product. This book is used to encourage baristas to develop their palettes by commenting on their thoughts on the taste of different coffees.
Green apron book which is a small book that fits into an apron pocket containing the 5 key facets of culture at Starbucks.

On the second day, staff go the Regional Training Centre. Here they learn about the company history and culture and they are taught how to make the different products they will be required to make once they start work.

Apprenticeships

Apprenticeships are programmes where people are employed to do a job whilst being trained for a formal qualification. Starbucks provide a range of apprenticeships.

Level 2 Apprenticeship, Hospitality Team Member with Barista Pathway
Level 3 Apprenticeship – Management Team Leader/Supervisor specialism
Higher & Degree level apprenticeships – levels 4 – 6
Starbucks College Achievement Plan

Off the job training

The skills required are taught through practising at the regional training centre and using one-to-one coaching.

The Starbucks Coffee Academy is an online learning platform that has a range of courses that employees can complete in their own time such as Roast and Blend, Origin and Ethical Sourcing and Brew.

On the job training

All baristas are paired up with a coach in the store to support them in developing their coffee making and customer service skills. Their coach is available for the barista to ask questions and will provide feedback on the quality of their work.

Management training programme

Starbucks provide a range of management training programmes such as the Shift Supervisor Training Programme, Retail Management Training Programme and the District Manager Training Programme.

Costs and benefits of Types of Training Used at Starbucks

Starbucks provide all new recruits with a two day induction programme before they start work. One benefit of induction training is that it can save a lot of time and money and prevent negative impacts on a brand. This is because new recruits can focus on the new things they need to learn without having to deal with customers at the same time. This can avoid situations where poor service is given or excess waste is generated as a result of a member of staff being in service situation without being properly prepared.

However, a drawback of induction is that staff don’t become productive straight away. Starbucks have over 345,000 staff and for the first two days that each member starts working, they are being paid but not actually working in their appointed job role. This could be seen as an unnecessary cost if the benefits do no outweigh the investment.

Starbucks provide a range of apprenticeships to their staff to gain formal qualifications as they work. These involve on the job training as well as release time to study and attend off site training. One benefit of providing apprenticeships is that it is a method of motivating employees. General salaries for waiting staff and baristas are not very high and as a result, people in job roles like this may not normally be able to afford to continue their education. By having this opportunity at Starbucks, employees are more likely to feel valued and motivated which can lead to higher productivity and staff retention.

However, a drawback of providing apprenticeships is that they are expensive to provide. Costs include the price of trainers as well as the cost of replacing staff on their release days. This can be an issue if the member of staff leaves Starbucks for a position elsewhere. In this case, Starbucks would have lost the skills they spent a lot of money developing.

On the job training is provided through in store coaching from supervisors. One benefit of on-the-job training is that it is specific to the needs of that specific location. In the case of Starbucks, new recruits doing on the job training may focus on the most popular drinks of that local market which may be different in other Starbucks stores due to different wants and needs. This means that they can become productive quickly in making the drinks that they are going to sell the most and better meet the needs of those specific customers.

A drawback of on the job training is the disruption to service while a staff member is practising a new skill. At Starbucks, people want their drinks quickly as they may be picking up a cup on the way to work or have a limited break to go to Starbucks. As the stores are generally quite busy, it is important that staff can make the drinks quickly. If the trainee is taking a long time to make a new product or keeps making mistakes, this can slow down service and lead to customer dissatisfaction and complaints.

One benefit of off the job training is that it can be of high quality as specialist trainers can be used who are experts in their field. As Starbucks is such a large organisation, they can invest in using highly skilled trainers and benefit from economies of scale as they will train a lot of staff. This can lead to staff going back to stores with a strong skill set after their training course.

A drawback to off the job training is that it can be quite expensive. The time the employee is away from the store, the cost of the trainer and the resources used all add up. If the training they receive is not better than they could receive in store from their supervisor, it results in unnecessary costs and as a result reduced profitability.

Management training programmes can be beneficial to a company because they create a pool of candidates for promotion who have the specific skillset your organisation needs in their leadership. Starbucks is a large organisation with over 345,000 staff. As a result, they have many different levels and leadership positions in their hierarchy. When advertising a post in leadership, they will receive applications from internal candidates who not only already have the benefits of knowing the organisation but have the skills they need in their promoted position.

A drawback to providing management training programmes is that they could leave for a more highly paid position with a competitor once their training is complete. If Starbucks do not have a management position to offer a member of staff once they complete their course but there is an opportunity in Costa Coffee, the staff member and their skills may be lost. This means their training was a waste of money and a potentially strong manager for the future is now working for the competition.

Impact of Training on Starbucks Staff Member

Shelby is a store manager in London. She has been working for Starbucks for 3 years and spoke to me about her experiences of training.

The two day induction programme she took part in three years ago made her feel immediately welcome and she felt that she settled in very quickly. She felt that the training was fun as they did activities such as rolling a dice to try out different combinations of ingredients to make coffees. She was also given very useful information such as a staff training manual so she could continue to develop and check the different coffee making processes. As a result, she always felt well equipped to do a good job, has always enjoyed her work and taken pride in what she does.

However, there are drawbacks to induction. Starting a new job can be overwhelming and there is often a lot to learn. The two day induction at Starbucks was filled with lots of different activities which Shelby enjoyed. However, there are some people that may have found this too much and may have preferred less activities and more opportunities to ask questions. If staff felt overwhelmed on the induction, they may feel anxious when starting the actual job itself and take longer to settle in.

The continued coaching and focus on developing the skills of all staff have made Shelby feel very valued as a member of staff. By having somebody there to ask questions and to give her feedback on what she was doing, allowed her to feel confident in what she was doing and that she was developing her skills each day. She said that as a result of this she felt like she is an important part of the organisation and that the people she works with are more than just her colleagues. As a result of this, she is committed to working for Starbucks for her career and is looking at pathways for promotion within the organisation. She has also made it a priority to support other team members in the way that she has been supported herself.

A drawback of this coaching method is that the person appointed as ‘coach’ may struggle to oversee the new member of staff. Each new recruit will have different levels of confidence in their role depending on their experience and how well their induction training went. If a new recruit is struggling, they are likely to be asking their coach a lot of questions or making a lot of mistakes that the coach has to support them with. This can lead to stress for the coach which can lead to poor morale and performance.

Shelby completed the Level 3 Apprenticeship in Management/Team Leader/Supervisor Specialism. This is a course where supervisors and managers are taught management skills including the administration of as store and leading teams of staff. This was good for Shelby because she could not afford to stop work in order to go to college or university or to pay tuition fees but had aspirations of taking on a more challenging role. As a result she was promoted from shift supervisor to store manager last year. This is something she would not have been able to do without this training opportunity.

One drawback to completing an apprenticeship to the employee is that in order to practise the skills being learned, the apprentice is likely to be completing roles that would normally receive a higher wage than they are receiving. This could lead to resentment towards more highly paid staff which can have a negative impact on the culture of a workplace and can lead to higher conflict and reduced morale.

Overall, Shelby feels that the training opportunities given have fast tracked her career, made her feel valued and have made her feel that she wants to commit to remaining at Starbucks rather than seeking work elsewhere. The training provided by Starbucks was clearly well suited to Shelby but may not be as well suited to another person with a different learning style, personality type or level of experience. It is therefore important that in order to get the most out of training for individuals, training is planned with individual needs in mind.

Evaluation of the Impact of Training on Aims and Objectives

Starbucks Objectives are likely to include

Increasing market share
Increased profits
Improved customer service
Improvements to organisational culture

One benefit of training is increased productivity. This is because employees have the knowledge and skills to be confident in the tasks they need to do. Training removes confusion and staff can approach tasks quickly and independently. In the case of a Starbucks barista, there are over 87,000 drink combinations that a customer can ask for. This can cause a lot of confusion and potentially overwhelm baristas and slow them down. However, the training methods such as training dice prepare them to quickly adapt and give them confidence in their skills so they can quickly get to work making the drink. This increases productivity in terms of coffees sold compared to staff which should contribute to the aim of increasing profit.

Another benefit is better quality of service. Starbucks customers want a good quality coffee or other drink, with the adaptations requested. They want their drink to be made quickly, be able to enjoy it in a clean environment and to be served by a polite and friendly member of staff. By having a good training programme, Starbucks baristas are confident in quickly making high quality products and managing the cleanliness of the café. By being able to shadow other members of staff and having feedback from coaches, they can observe and practise role play scenarios of customer interactions so that they can improve their customer service skills All of this is likely to have a positive impact on the aim of improved customer service which can improve brand image, customer retention and therefore profits.

Another benefit is higher morale. Baristas at Starbucks feel valued because of being invested in in terms of training so are more likely to be happy and interact well with customers. Starbucks employees are given opportunities to complete formal qualifications alongside their job. Starbucks staff have stated that they feel like they are part of a strong community and it is more than just a job. This indicates that the aim of making improvements to their organisational culture is being achieved through training.

One cost of training is the costs of delivery. Starbucks have approximately 346,000 employees who they call partners. Each partner had a two day induction when they started working at Starbucks, they have the opportunity to complete online courses at the Starbucks Global Academy and staff are offered training courses such as ILM Level 3 Diplomas and degree courses paid for by Starbucks. The costs of paying for trainers and training resources can be high which increases overall organisation costs and in turn reduce profits which is a key aim.

Another cost is the time it takes to identify training needs and plan training programmes. In order to have an effective training strategy, HR staff at Starbucks need to be aware of the skills needed for the different markets covered by their 32,000 stores. In order to do this effectively, they need to have specialist staff who come at a high cost and who will need to complete an ongoing Training Needs Analysis (TNA) which is time consuming. This adds to costs which can reduce profits and if not done effectively, the benefits will not outweigh these costs.

Another cost is the time taken away from productive work. Starbucks offer their employees a range of apprenticeships which are very popular. This usually involves a release day per week for the apprentice to study. This release day takes the employee away from their work as a barista which means Starbucks either has to pay for a replacement which increases costs or the other staff have to increase their output to cover which can have a negative impact on customer service.

According to Whitten, Starbucks share growth is at 7% per year. This is supported by Bikker, who states that Starbucks is one of the fastest growing companies in the world and a major reason why this has happened is customer enjoyment of the environment and consistency of high quality products. This indicates that Starbucks are achieving their objectives. Starbucks high investment in training supports the creation of the environment and the quality and consistency in products provided which could lead to the conclusion that training and development are a vital strategy in an organisation such as Starbucks achieving their objectives.