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Starbucks Case

Essay by   •  July 20, 2014  •  Essay  •  289 Words (2 Pages)  •  1,045 Views

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Howard Schultz is the CEO for the Starbucks Corporation, Mr. Schultz is a transformational leader, and his style exhibits empathy and compassion. During his tenure as CEO, Starbucks has shown spectacular growth. Schultz started the company in 1987 and stepped down in 2000, only to return in 2008 because the company and country were in crisis (DeTar, 2012).

Schultz displays characteristics of a transformational leader, by meeting the motivational needs of the total person. Schultz transformational leadership satisfies follower's needs for belonging, and love by creating and maintaining a family like culture throughout his organization. Examples of Schultz meeting these needs is shown by giving employees a modest paycheck, this meets the physiological needs of an employee, this falls in line with Maslow's Hierarchy of Needs theory.

In an interview with Oprah Winfrey, Schultz expressed the need for transparency in leadership, "You've got to be truthful. I don't think you should be vulnerable everyday, but there are moments where you've got to share your soul and conscience with people and show them who you are, and not be afraid of it", (Forbes, 2013). This particular statement gives some insight on his personality type, in this statement he is exhibiting characteristics of a type B personality, type B's puts importance on good relations with others.

Schultz exemplified a feeling type characteristic, when he personally visited the families of three workers that where murdered at the Georgetown store in Washington, D.C. He showed compassion to the families of these victims. Schultz is also instrumental in being a model on how employees should be valued; Starbucks is the first American company to provide the highest quality healthcare to all full-time and part-time workers (for workers working as little as twenty hours a week).

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