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Org 581
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Facilitating Change Paper Timothy Kirk ORG/581 William Gillis, PhD December 22, 2012

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Introduction

Starbucks Facilitating Change to China

Starbucks current structure is categorized as a mechanistic organization, which is comprised of highly vertical and horizontal complexities, highly formalizations, highly centralizations, tapered lengths of control, and highly standardizations. The CEO of Starbucks, Howard Shultz, has worked to create a more efficient and streamlined structure where information can flow freely from customer and low-tier employee to the corporate level. To facilitate this process has allowed Starbucks to expand to locations like China.
Starbucks divides its labor into cross functional work teams, which allows employees to report to multiple supervisors. “This structural behavior has allowed the corporation to have successful communication upward, downward and laterally with its employees” (“Successful Application of Organizational Behavior: Starbucks,” 2009). The matrix structure seems to work for Starbucks, as they maintain effective communication, great product development, efficient production, and exemplary customer service as a result.
Starbucks CEO, Howard Schultz helped facilitate in the companies structure a matrix of communication that both works internal and external, this key to the primary benefits of the success of the company. On the inside, Starbucks’ reinforcement of exposed communication among workers, higher administration, and administrators permits more open innovation in ideas, correcting problems through a process of identifying, discussing, plan of action, and follow through to solutions in a timely manner.

On the outside are the clients that are loyal and are given ownership in that the



References: Anthony, W. P., Gales, L. M., & Hodge, B. J. (2003). Organization Theory: A Strategic Approach (6th ed.). Upper Saddle River, NJ: Pearson Education, Inc. * Efrati, A. and Gasparro, A. – (2012), Starbucks Invests in Square – The Wall Street Journal * http://online.wsj.com/article/SB10000872396390444423704577575803898185594.html * Starbucks Training Technologies - (November 2011) * http://starbuckstrainingtechnology.blogspot.com/

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