Question

Starbucks empowers store managers to make decisions about how to handle the people in each store. It also defines certain values such as respect for diversity. Do you expect that this combination leads to higher performance than if the company had a checklist for every situation (no empowerment) or let managers set their own values (no controls)? Explain in 200 words.

Answer 1

Empowering Starbucks managers with decision-making freedom while adhering to corporate values likely results in higher performance than having strict checklists or complete autonomy. This balance promotes responsible innovation, enhanced customer satisfaction, and positive employee relations.

Step-by-step explanation:

Empowering store managers to handle situations in individual Starbucks stores while adhering to corporate values such as respect for diversity likely leads to higher performance than a rigid checklist approach. This empowerment enables managers to tailor their decisions to the unique circumstances of each store. This flexibility can lead to enhanced customer satisfaction because managers are able to respond to customers' needs in a personalized and timely manner. Additionally, a corporate culture that values diversity promotes a positive work environment, which can lead to better team dynamics and employee satisfaction.

However, complete autonomy without any guiding values can lead to inconsistent experiences for customers and could harm the company's brand. On the other hand, an excessive level of control with strict checklists would likely stifle innovation and responsiveness. The balance between empowerment and adherence to core values forms a middle ground, fostering a culture of responsible innovation and a sense of ownership among managers, which contributes to the company's overall success.