The Leadership Styles of Howard Shultz Led Starbucks Success Howard Schultz is one today’s most influential corporate leaders. Although he no longer holds the Chief Executive Officer position at Starbucks, he is responsible for bringing Starbucks where it is today. Leadership is a process whereby an individual, in this case Schultz, influences others to achieve a common goal. Schultz has influenced a wide range of people from the highly educated and trained executives Orin Smith and Howard Behar to each and every one of the 140,000 employees of Starbucks.
Schultz only brought in people he knew had the same values and great vision he did for Starbucks. The common goal between Schultz and every person at Starbucks can be viewed on the mission statement: “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. ” The leadership theories most applicable to Schultz are the path-goal revised theory by Robert House and the transformational approach proposed by Bass and Avolio.
Successful leaders, like Schultz, never lose hope and keep their goal in mind at all times. Schultz has led Starbucks to success with great leadership. House believes there are eight leadership behaviors that clarify paths for followers’ goals. Path-goal clarifying behaviors are exemplified by one of Schultz’s values: provide a great environment and treat each other with respect and dignity. When Schultz acquired Starbucks his achievement-oriented behaviors were apparent in his business plan to open 125 new stores in five years.
One of the many work-facilitation behaviors of Schultz is waking up daily at 5:30am to call Starbucks managers around the world and visiting over a dozen stores a week. Supportive behaviors are one of the strong points of Schultz. After seeing his father’s leg broken on the job and being helpless, he made it a personal goal to never let the same situation happen. Schultz made Starbucks the first American company to provide access to health coverage for employees who worked at least 20 hours per week. All of the categories of leadership behavior, according to House’s theory, are exemplified in Shultz’s leadership style.
The important thing is that Schultz is familiar with the different categories of leader behavior and is not afraid to try new behaviors when the situation calls for them. Employees are transformed to pursue organizational goals over self-interests by the cause of transformational leadership. Schultz has used his individual characteristics such as life experiences in an underprivileged household to in inspirationally motivate Starbucks’ people. The effects on the employees are increased intrinsic motivation, achievement orientation, goal pursuit, and increased identification and trust with the leader, Schultz.
The outcome of the transformational leadership style used by Schultz is personal commitment to leader and vision, task meaningfulness and satisfaction, and increased individual, group, and organizational performance. When the people of an organization are that highly committed the customers are always satisfied. In other words, Starbucks is successful because of Schultz’s transformational leadership. The Individual Differences That Shape Howard Schultz Individual differences are the unique characteristics that shape our identity and set us apart from every other person.
Individual differences can play a key role in the success of an organization. Like Schultz, every individual has a self-concept which includes self-esteem, self-efficacy, self-monitoring, and organizational identification. The individual difference, in my judgment, that has contributed most to Schultz’s success is his self-efficacy. Organizational identification has also played a significant role in his and Starbucks’ success. Self-efficacy is the belief in one’s ability to accomplish a task. Schultz has always had high self-efficacy.
He’s always known he can be successful. Schultz’s high self-efficacy comes from his strong willed mother who always told him to “believe in America and believe you can do anything you want in America,” even though the financial situation of his family was poor. Another key ingredient to Schultz’s high self-efficacy is his determination for success fueled by his fear of failure. Seeing his father frustrated and disrespected going from blue collar job to blue collar job, Schultz realized the importance of success and education.
The behavioral patterns associated with high self-efficacy are selecting the best opportunities, setting goals, planning, preparing, practicing; creatively solve problems, and visualizing success. These behaviors result in success as shown by Stanford psychologist Albert Bandura’s self-efficacy model. Schultz demonstrated his ability to creatively solve problems when he spent two weeks creating an alternate plan that saved his stake in the company from being drastically diluted by one of the original Seattle investors.
The organizational values and beliefs that become a part of one’s self-identity are known as one’s organizational identification. Schultz has come to integrate the belief about Starbucks into his identity. Organizational identification also plays a role in Schultz’s success. For example, Starbucks’ mission is to develop satisfied customers; which is what Schultz keeps in mind whether he is working or not. Individual differences play a key role in Schultz’s success. Specifically, self-efficacy and organizational identity facilitate the success of Schultz, and therein, Starbucks.
Cite this Starbucks Case Essay
Starbucks Case Essay. (2016, Oct 10). Retrieved from https://graduateway.com/starbucks-case-essay/