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University of Central Punjab

Prof. Ahmad Ashraf |Organizational Behavior

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University of Central Punjab

Prof. Ahmad Ashraf |Organizational Behavior

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University of Central Punjab

FACULTY OF COMMERCE
ORGANIZATIONAL BEHAVIOR
SUBMITTED TO:
PROF. AHMAD ASHRAF
SUBMITTED BY:
FATIMA ZAHRA
G1F17BSCM0002
BS. COMMERCE - 7
FINAL PROJECT

Submitted Date: 10-02-2021

Prof. Ahmad Ashraf |Organizational Behavior

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University of Central Punjab

DEDICATION
I dedicate this report to Mr. Ramzan Chhipa. His organization is helping poor, needy and orphan
people. His ambulances are working over all in Pakistan. He is the legend of Pakistan. He is
playing a vital role in society.

May Allah grant him more successful, healthy and long life.

(Ameen)

Acknowledgment
“To him belongs the dimension of the heavens and the earth, it is He who gives life and death
and He has power over all things”

(Al-Quran)

All acclamation to Allah who Has empowered and enable me to accomplish the task successfully. First of
all, I would like to thanks my Allah Almighty who really helps me in every problem during the project. I
would like to express my sincere and humble gratitude in my life. I would like to admit that I completed
this project due to my parents who prayed for my success. I also wish to express my appreciation to my
PROF. HAFIZ AHMAD ASHRAF

Prof. Ahmad Ashraf |Organizational Behavior

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University of Central Punjab

Prof. Ahmad Ashraf |Organizational Behavior

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University of Central Punjab

Contents

Introduction...............................................................................................................................................8
Organizational behavior.........................................................................................................................10
Job satisfaction........................................................................................................................................13
Attitudes & Job Description...................................................................................................................14
Emotions and Moods...............................................................................................................................14
Perception and Individual Decision Making.........................................................................................15
Motivation Concepts................................................................................................................................15
Motivation: From Concepts to Applications.........................................................................................16
Foundations of Group Behavior.............................................................................................................16
Power and Politics...................................................................................................................................16

Prof. Ahmad Ashraf |Organizational Behavior

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University of Central Punjab

Introduction

First Starbucks opened in Washington March 30, 1971 • Jerry Baldwin-English Teacher •
Gordon Bowker-Writer • Zev Siegh – History Teacher
The company was a single store in Seattle’s historic Pike Place Market. From just a narrow
storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. The
name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of
the early coffee traders.
In 1981, Howard Schultz (Starbucks chairman and chief executive officer) had first walked into
a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a
year later.
In 1983, Howard traveled to Italy and became captivated with Italian coffee bars and the
romance of the coffee experience. He had a vision to bring the Italian coffeehouse tradition back
to the United States. A place for conversation and a sense of community. A third place between
work and home. He left Starbucks for a short period of time to start his own Il Giornale
coffeehouses and returned in August 1987 to purchase Starbucks with the help of local investors.
From the beginning, Starbucks set out to be a different kind of company. One that not only
celebrated coffee and the rich tradition, but that also brought a feeling of connection.

Prof. Ahmad Ashraf |Organizational Behavior

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University of Central Punjab

Our mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood
at a time.
Most famous chain of retail coffee shops in the world Benefits from selling special beans, coffee
or tea drinks. Most rapid growing corporations in America 21,536 branches in the whole world

Now…
• World's premier roaster and retailer of specialty coffee
• 8,812 company-owned stores
• 7,852 licensed stores in more than 50 countries
• Sell: beverages, pastries, whole bean coffee, ground coffee, and coffee-related products

Prof. Ahmad Ashraf |Organizational Behavior

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University of Central Punjab

Organizational behavior

A field of study that investigates the impact that individuals, groups, and structure have on
behavior within organizations, for the purpose of applying such knowledge toward improving an
organization’s effectiveness.

OB & Starbucks
The reason for success in Starbucks is not coffee but employees the spirit of Starbucks is
employees. Starbucks offers an interactive structure makes personnel throw themselves into their
job. All of the staff are called ‘partners’, Good management system. Customers are also affected
by employee’s enthusiasm.

Four Contributing Disciplines

 Psychology: -
Motivation: Employees are highly valued.
Job satisfaction: They use the title “partner”, regardless of the level of the worker.
Decision making: Every employee join developing plans, then work together in achieving their
goals.
Learning: Right to figure out what is the best policy for them.

 Social Psychology: -
Communication: The policies and principles are communicated between all staff.
Group decision making: Directors show respect for each suggestion.
Group processes: Managers plan the working hours per workers and arrange the schedule of time
off, according to the workers’ wants.

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University of Central Punjab

 Sociology: -
No limitation in employees’ personal opinions. Well-developed system to keep good
relationships between managers and employees. Small size helps staff get to know each other.
They jointly work out the direction of Starbucks.

 Anthropology: -
All employees are offered welfare policies. Great importance on labor. Starbucks contributes part
of its profits to public service. It allows all partners to decide the direction.

OB Dependent Variables
 Productivity: Effectiveness & efficiency
 Turnover: Low turnover
Workplace Behavior: No deviant workplace behavior
 Absenteeism: Low absenteeism

Three levels of OB
 Individual: No limitation in employees’ personal opinions. Every employee is involved in
developing plans.
 Group: Partners. Co-work
 Organization: Motivated to increase the sales to earn more profits. Effectively & efficiently
achieve goals.

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University of Central Punjab

Competitors
McDonalds

Dunkin Donuts

Second Cup

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University of Central Punjab

Challenges and Opportunities

 Responding to Globalization
 Improving Quality and Productivity
 Improving People Skills
 Creating a Positive Work Environment
 Helping Employees Balance Work-Life Conflicts

Job satisfaction

According to Nelson and Quick, job satisfaction is a very important factor for employers if they
want to retain employee’s long term. At Starbucks, employee job satisfaction is a major objective
of executives that has been proven successful. For Starbucks, a happy barista is a happy
customer, and happy customers drive sales. Since the opening of the first Starbucks store in
1971, its philosophy has been to leave no employees behind. For example, all new baristas get a
full 24 hours of in-store training. For these employees and even part-time employees, Starbucks
offers full health-care benefits, which include medical, dental, vision, and alternative services.
Employees also receive stock options called “Bean Stock” of up to 14% of their gross pay and
receive a 15% discount when buying common stock at market value. Finally, the company
matches 401k plans for their employees. Employees at Starbucks are always referred to as
“partners,” and this makes employees feel valued in the company.
Because of these great benefits, the employee job satisfaction is very high at Starbucks.
Starbucks is able to encourage employees to stay at Starbucks because they feel an
organizational commitment to do so. Because the employees are happy with their jobs, they treat
customers well, and the company profits as a result.

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University of Central Punjab

Attitudes & Job Description

Starbucks employees have an 82% job satisfaction rate, according to a Hewitt Associates Partner
View Survey. Most employees are interested in working at Starbucks for its noted enthusiastic
team. Employees feel it is a place where they have value. The company also claims to have a
lower turnover than that of most fast-food establishments. Starbucks tries to “stay small” while
continuing to grow. By this they mean that they want their customers to feel like they’re walking
into a feel-good mom-and-pop company. This translates into its employees’ attitudes. Creating a
happy and comfortable work environment and treating employees with respect is number one on
Starbucks’ six-point mission statement. This results in happy and welcoming baristas.

Emotions and Moods

That emotions play a big part in the workplace. Emotional dissonance seems to be a prevalent
factor especially in establishments such as restaurants and coffee shops such as Starbucks. This
occurs when employees have to project one emotion while simultaneously feeling another one.
Baristas at Starbucks are known for their friendliness and approachability. However, this could
take a toll on the employees over time. If a barista at Starbucks is having trouble in their personal
life at home, and has to come to work, smile, and have pleasant small talk with employees, this

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University of Central Punjab

could be very frustrating internally. Eventually they will burn out. This is why it is imperative to
have a fellow employee as a confidant that one can trust to open up about personal issues in
private to blow steam off at work.

Perception and Individual Decision Making

That the link between perception and decision-making is that decision-making occurs as a
reaction to a problem. Every decision requires interpretation and evaluation of information.  In
recent years, computers have taken the jobs of humans in processing this data from multiple
sources. Even Starbucks is transforming itself into a tech company. For example, Starbucks is
now going big into wireless charging. Many Starbucks stores have super high-tech Clover coffee
machines, which connect to the cloud to communicate the performance of the machines and to
track customer preferences. This further demonstrates how Starbucks utilizes computers to make
decisions for them.

Motivation Concepts

That motivation is the processes that account for an individual’s intensity, direction, and
persistence of effort toward attaining a goal. Starbucks has created motivation for its customers
by coming up with a reward system. By becoming a Starbucks member, you download the app
on your Smartphone or simply obtain a Starbuck card. By filling this card up regularly and
purchasing your orders through it, you move up levels of membership. With each new level of
membership, you are given more rewards. There is the Welcome level, Green level, and Gold
level. The more money you spend on your Starbucks card, the more points you accumulate, and
the higher you rise on the membership ladder. For example, the green level (second level) offers
you free refills of hot or iced brewed coffee during the same store visit. If your orders start to
decrease you will eventually lose your level of membership and all the rewards that come along

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University of Central Punjab

with it. The threat of this keeps customers hooked and motivated to stay on top of their
membership.

Motivation: From Concepts to Applications

There are different methods to get employees involved in their work. Job rotation keeps
employees on their toes, increases motivation, and reduces boredom. At Starbucks, there are
different jobs each barista will perform each day. Employees rotate from taking orders and
making transactions at the cash register, to physically making drinks, to cleaning and restocking,
and to preparing food. Also, there is a lot of work that goes into ordering products, ingredients,
and keeping the storage room in order. It is also extremely important for employees to have a
relational job design. This means that employees are connected to the beneficiaries of their work.
This makes them feel important and they are able to see that their work matters when it touches
the lives of their customers. Starbucks baristas are known for their positive and endearing
personalities because most of them genuinely love what they do. They realize that someone’s
everyday morning coffee sets the tone for their day, and that is an important job performed even
if it seems small.

Foundations of Group Behavior

That social loafing is a common and prevalent problem when it comes to completing a task in a
group setting. Group size affects the overall group behavior. The larger the group, the easier it is
for a social loafer to fly under the radar, not contribute to the group, and get away with it. Large
groups are great for gaining diverse input; however, shirking becomes easier to take place.
Thankfully, a typical Starbucks café is on the smaller side of a business. There may be as little as
2-3 employees working at once. This makes it next to impossible to have a social loafer on the
scene. If there are 3 employees manning the coffee house at once, no one can afford to slack off.
Each employee must pull their own weight or else orders will be backed up and customers will
be unhappy. In addition to performing their individual duties, in this case, employees must help
each other with theirs as well to remain efficient.

Prof. Ahmad Ashraf |Organizational Behavior

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University of Central Punjab

Power and Politics
The most important aspect of power is that it is a function of dependence. A person can have
power over you only if he or she controls something you desire. For example, an employer has
the power of an employee on whether or not they keep their job, and whether or not they get
paid, and how much. Leaders use power effectively and for the greater good of the company.
The leader of Starbucks, Howard Schultz, gives more power to employees in decision-making
and also the flexibility of choosing their own working hours. His style revolves around
motivation and inspiration of his followers. He encourages his employees through feedback and
makes personal calls and emails to achieve that.

Prof. Ahmad Ashraf |Organizational Behavior