As drastic as this move was, it rebuilt an organization whose rapid growth became carcinogenic and elicited the re-engagement of its original founder as we know it. By addressing the primary embedding mechanisms presented by Scheme (2010,) it is easy to see the effective leadership skills employed by Schultz in the Struck organization. Primary Embedding Mechanisms In considering the tools utilized by leaders to embed the assumptions they hold, one can see how these assumptions can create the conditions for culture urination and evolution (Scheme, 2010).
Scheme listed six primary embedding mechanisms available to leaders which include: what leaders pay attention to, measure, and control on a regular basis; how leaders react to critical incidents and organization crisis; how leaders allocate resources: deliberate role modeling, teaching and coaching; how leaders allocate rewards and status; and how leaders recruit, select, promote (Scheme, 2010). These assumptions can be seen in the leadership style of Schultz. What leaders pay attention to, measure, and control on a regular basis.
Schultz is a very hands on leader. In his book Onward: How Struck Fought for Its Life without Losing Its Soul (2011), he demonstrates his leadership abilities and the trial and tribulations Struck went through after he originally turned over the reins. It was important for Schultz to create an engaging, trusting, respectful workplace. He stated “as a merchant my desire has always been to inspire customers, exceed their high expectations, and establish and maintain their trust … S an employer, my duty has always been to also do the same for people on the other side of the counter” (p. 15). Schultz paid attention not only o financial figures but also how the organization was perceived by the customers, how the baristas treated customers and prepared their drinks, and how the farmers who provided them with coffee beans were treated. He believed in this concept so much that he empowered the partners to make decisions on their own as to the quality of the drink or the needs and requirements of the customer.
In order to be part of the Struck organization, Schultz required the partners to have the same passion for the culture of the company as he did. He would visit stores personally as he preferred the face to ace interaction and he would personally show the baristas how to create the perfect espresso. When Schultz realized the organization was getting away from this, is when he realized the need to take back the reins and retrain all the employees across all its United States stores at one time.
How leaders react to critical incidents and organizational crises When Schultz began to see the demise of the organization due to its abrupt growth it was his love for the company and the responsibility he felt towards his partners and shareholders that fueled him to once again take over the organization and revamp it back to his original vision. He called a meeting in which he announced what he was going to do and what the original vision of the organization was that he wanted to get back to and he gave the opportunity for anyone who didn’t share his vision to leave the organization with no hard feelings.
This is when he realized to get back the intended culture and vision of the company it would require retraining every one of their baristas on how to make the perfect espresso drink by steaming milk correctly and recognizing customer satisfaction. The decision was made one February afternoon at 5:30 m to close all the Struck stores across the United States and simultaneously retrain all the partners even at the risk of losing the business to competitors. How leaders allocate resources.
This bold move by Schultz to regain the vision of his company shows customer and partner satisfaction was more important to him than the monies that would be lost during the retraining process. Also, the empowerment that is given to the partners to please the customers and determine whether a drink is worthy to sell and up to the Struck standards show that customer satisfaction is more important than resources. Struck was the only organization at this time to offer its part-time employees full health-care benefits and equity in the corporation in the form of stock (Schultz, 2010).
Deliberate role modeling, teaching, and coaching. As mentioned earlier, Schultz preferred face-to- face interaction with the partners. Schultz would personally visit the stores and work with the baristas to create the perfect drink and ensure the atmosphere of the store was that of an inviting nature that would encourage the customer to stay as long as they liked to enjoy their drink, the alluring smells, and the welcoming atmosphere. Schultz as also known quite often to hand write memos to partners and to encourage anyone to email him whenever they wanted to.
Schultz was definitely a role model by reiterating his passion for the company and the importance of the customer, the partners, the farmers, and the environment. How leaders allocate rewards and status. Many articles have been written on the Struck company and in most every one of them the human resource practices of the organization is highly commended. With excellent benefits offered to everyone in the organization and a lot of respect between the partners and leaders the organization was able to Ely on the support of most partners during the rebuilding process.
While they tried to not eliminate any partners, Schultz did ensure that their stock would remain intact with a limited continuation of benefits. Schultz made sure that everyone was considered and rewarded as properly seen fit. How leaders recruit, select, promote, and excommunicate. Schultz made several references to the importance of the partners having same vision and passion he has for the company. The passion required is extended to the farmers who supply the coffee beans and those employed farmers. If the farmers did not have fair employment practices, Schultz wow not do business with them.
When the summit met to discuss the future an reorganization of the organization, Schultz asked anyone who did not share vision to see him privately so they could discuss their dismissal. Conclusion As can be seen here, the six primary embedding mechanisms presented b Scheme can be applied to the leadership abilities of Howard Schultz of the Struck company. It is through his leading by example and being involve the organization, at all levels, that has contributed to the culture of the organization. Schultz’ passion and vision for the organization is known throughout and expected by all.
If a partner is not capable of the same pas and vision they did not need to be part of the organization and Schultz mad sure this was known throughout the organization. References Scheme, E. H. (2010). Organizational culture and leadership (4th deed. ). San Francisco: Josses- Bass. Schultz, H. (2011). Onward: How Struck fought f life without losing its soul. New York: Ordeal. Schultz made several references to the importance of the partners having the extended to the farmers who supply the coffee beans and those employed by the rammers.