• The most famous chain of retailed coffee shop around the world with 4000 branches word wide.

• Known for its customer services and employee satisfaction.

• Low employee turnover rate and high profit performance

ERG THEORY

Individual growth in Starbucks provides proper motivation for employees, but how? Based on the ERG (Existence, Relatedness and Growth) theory by Clayton P. Alderfer, every individual has their own growth needs such as self-esteem and self-actualizations. Growth needs includes desires to be innovative, productive and effective in performing their tasks. In other words, if an organization provides growth needs to their employees, then these employees will have proper motivation in order to work effectively. Growth needs are constantly provided by Starbucks to their employees, specifically training and education. Starbucks’ training and education includes “coffee education”, “learning to lead” and “business and communication”.

MC CLENNAND THEORY

Based on McClelland’s Theory, achievementis one of the means for proper motivation and achievers want constant feedback. If employees have increasingly levels of ability, therefore they should be recognized such as providing them rewards. Rewards will make employees realized that they have achieve something since these serve them as feedback. Starbucks provides eighteen recognition programs, from Mug Award to the Howard Behar Award and bonuses, in order to promote achievements to their “partners” (employees).

Need for Achievement Need for power Need for Affiliation

EQUITY THEORYAnother motivational principle of Starbucks is called equity. Equity means satisfaction of an individual based on how “fair” they are treated by their employers during their work. In other words an employee must feel that they are treated fairly in order to have proper motivation and satisfaction. Starbucks usually consider their employees not just employees but also “partners” to their business. In other words, Starbucks ways of treating their employees as partners are through giving enough training and education and providing generous benefits and rewards. Apart from that, Starbucks offers excellent working place for their “partners” and they usually treat their partners with respect and dignity – a part of their ethics program (Starbucks.com 2008).