Dissertaion yr3, A case study analysis of Leadership differences between shift Managers in Starbucks and their effectiveness on store performance

BA (Hons) Management of Hospitality 29/4/2016
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COLCHESTER INSTITUTE, UNIVERSTIY OF ESSEX
A Case Study Analysis of different
Leadership Styles, between Shift
Managers within Starbucks, and its
Impact on Effectiveness and Overall
Store Performance.
BA (Hons) Management of Hospitality
SID: 1333464
4/29/2016
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Abstract
The Retail climate has undergone substantial changes in recent years, highlighting
increased competitiveness, growth of technology and consumer expectations.
More increasingly leadership within Retail can be used as an effective method to
overcome these challenges. This case study analysis assesses different leadership
styles between shift managers within Starbucks and their effectiveness on overall
store performance. This research has been formulated using existing theories,
interviews between shift managers and Partners (employees), quantitative sales
and peak transaction data to test or justify the evidence found from the literature.
The results found from both qualitative and quantitative evidence indicate that the
most effective leadership style on overall store performance is democratic
leadership. This style of leadership promotes team engagement, productivity,
development and shares authority with subordinates, thus proving the evidence
that exists from current theories. The findings illustrate a range of different
leadership styles and how they impact on effectiveness and overall store
performance. The study concludes with recommending the need for Starbucks and
other Retail businesses to formulate and adopt a democratic leadership style to
further grow and develop their organisation. However, it also acknowledges that
an effective leader should be able to adapt their leadership style to a range of
different situations.

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Table of Contents
Abstract....................................................................................................................2
1.0 Introduction....................................................................................................5
1.1 Research question........................................................................................6
1.2 Outline and purpose ....................................................................................6
1.3 Rationale........................................................................................................7
1.4 Overall aim.....................................................................................................7
1.5 Research objectives .....................................................................................8
2.0 Literature review.........................................................................................9
2.1 Leadership and performance.....................................................................9
2.2 Autocratic leadership ............................................................................... 11
2.3 Democratic Leadership ............................................................................ 13
2.4 Laissez-faire................................................................................................ 14
2.5 Literature summary.................................................................................. 16
3.0 Research methods and design............................................................17
3.1 Research philosophy................................................................................. 17
3.2 Development of theory............................................................................. 18
3.3 Methodological design.............................................................................. 18
3.4 Research strategy-case study.................................................................. 19
3.5 Time-horizon, cross-sectional................................................................ 19
3.6 Data collection methods........................................................................... 20
3.7 Sampling methods..................................................................................... 21
3.8 Gaining access and research ethics........................................................ 21
4.0 Findings and analysis..............................................................................23
4.1 Shift manager interview-1....................................................................... 23
4.6 Employee interview-1 .............................................................................. 27
4.10 Summary..................................................................................................... 29
5.0 Data analysis ...............................................................................................30
5.1 Sales data..................................................................................................... 31
5.2 Peak transaction data analysis............................................................... 33
5.3 Findings and analysis summary............................................................. 35

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6.0 Conclusion....................................................................................................36
6.1 Practical recommendations.................................................................... 38
6.2 Further research........................................................................................ 39
7.0 References....................................................................................................42
8.0 Appendices...................................................................................................47
Appendix 1, Sales and transaction data.......................................................... 47
Appendix 2, Starbucks approval email........................................................... 48
Appendix 3, Interview consent form............................................................... 49
Appendix 4, Shift manager 1 interview........................................................... 50
Appendix 9, Employee interview 1.................................................................. 60
Appendix 10, Employee interview 2................................................................ 62

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1.0 Introduction
“Leadership is a sought-after and highly valued commodity, corporations seek those
with leadership ability because they believe they bring special assets to their
organisation, and ultimately, improve the bottom line” (Northouse, 2013:1). As the
above indicates leadership has become an essential part of any business; recently
there has been a focus on leadership, which has been used to increase business
growth (Owen et al., 2004; Adair, 2010), whether through training, development
or sales. Northouse (2013) believes that for businesses to grow and progress, they
must understand how leadership can make a difference through using a range of
different leadership styles, which all have different outcomes. Moreover Adair
(1997) states that some leadership styles can be destructive, therefore through
analysing a range of different leadership styles and adopting a suitable approach it
can support an organisation. This aims to avoid adverse behaviours within the
workplace, and harvest the most effective leadership style to assist business
growth and development.
Owen et al. (2004) believes that effective leadership involves more than one
purpose, it is an opportunity to make a difference and influence positive
behaviours in an organisation. Avolio and Bass (2002) agree with this but also add
that effective leadership can develop others, increasing employee productivity and
improve culture. Adair (2007) concurs with this but implies that effective leaders
have the ability to innovate ideas within organisations to improve overall
performance, often sharing their authority to boost team creativity. The evidence
found here highlights the importance of leadership within organisations, and how
it can make a significant impact in the current Retail environment.
Currently Retail businesses face an increasing amount of pressure, with growing
demands and challenges; as a result consumers have become increasingly savvy,
expecting added value and an enhanced experience. With the growth in online
sales, UK high streets have witnessed a drop in footfall, impacting on business
performance and results (Allport, 2005). Rosewell (2006) aggress with this and
believes that Retail businesses should be doing more to develop high street sales. A
method to overcome this is to look to leadership, which can be effective in

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achieving business growth to maintain survival and achieve competitive advantage
(Porter, 2004; Storey, 2004).
Adair (2007) relates to Storey (2004), and suggests that through using innovation
and positive strategic thinking, businesses such as Starbucks may have the ability
to overcome the challenges they face in the current environment. Furthermore this
study will research and identify the primary leadership styles used between shift
managers working within Starbucks, but it will also justify the importance of
leadership in business. The investigation will also prove how effective leadership
contributes to team productivity, sales and peak transaction growth to assess
different leadership styles and its impact on effectiveness and overall store
performance.
1.1 Research question
How do different leadership styles, between shift managers within Starbucks,
impact on effectiveness and overall store performance? -A case study analysis.
1.2 Outline and purpose
The research seeks to analyse and examine primary differences between various
leadership styles that shift managers’ exhibit within Starbucks. The research will
also evaluate and justify the importance of leadership styles, and how it impacts on
overall store performance within the workplace, through sales, training,
knowledge and development.
The purpose of this research is to source and examine a variety of relevant
literature and theories that coheres with the research area. This will then be
compared and applied against the findings to identify the most effective leadership
style(s). Through obtaining the required information it will support the scope and
depth to the research question and provide conclusive arguments to justify the
importance of leadership. Focusing on the different styles that exist in the
workplace, and how it impacts on overall performance.

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1.3 Rationale
The research project will enable the author to expand their own knowledge of
leadership. Understanding how individuals possess different leadership qualities,
and how each one impacts upon business performance. The research will hope to
give credit to what the author currently understands about leadership, with the
hope of building a stronger background and reinforcing the importance of this.
This will be supported through analysing existing models and theories that can be
applied in a real-life setting. The research will aim to support the author in the
workplace and for future career opportunities in Retail Management roles.
Furthermore the evidence will recommend best practice for business growth and
performance, but also allow the author to identify how other managers’ work, and
their overall effectiveness.
1.4 Overall aim
The overall aim of this research is to identify how different leadership styles
impact effectiveness and overall store performance within Starbucks. The study
aims to highlight the importance of effective leadership through analysing and
evaluating the findings. Furthermore through demonstrating the most effective
leadership style the author can recommend the most effective leadership style to
Starbucks, thus supporting the company in achieving effectiveness and overall
store performance.

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1.5 Research objectives
1) To define and analyse different Leadership styles through existing theories
and literature, and to demonstrate the importance of effective leadership on
business performance.
2) To investigate the leadership styles that are used between different shift
managers within Starbucks, and to analyse their effectiveness on store
performance.
3) To compare and evaluate the results found from the findings and highlight
the most effective leadership style based on evidence.
4) To correlate existing theories on the most effective leadership styles, and
apply what has been found from the research carried out in Starbucks.
5) To recommend and justify the most effective leadership style on overall
store performance, and to encourage future best practice within Starbucks
and other Retail organisations.

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2.0 Literature review
A vast number of theories and models exist regarding leadership in business, and
how different styles affect aspects of an organisation. This literature review will
focus on existing research that links to the research question, and highlights the
three primary styles used in the workplace, autocratic, democratic and laissez-
faire. However to further expand on this, transactional, transformational, ethical
and visionary leadership could have been studied to provide a wider insight into
other leadership styles. The literature will also highlight how leadership impacts
on business performance to illustrate growth and success in an organisation. The
literature will also consider situational leadership, which encompasses all three
leadership styles found in the literature.
2.1 Leadership and performance
Parker and Ying Wang (2015) analysed a framework for productivity in the
workplace and in understanding the importance of having an efficient team,
resulting in improved organisational performance. Their study identified that
many different variables affect productivity within a team. The research uncovered
that a democratic leadership style enables a stimulating working environment,
encourages employees to take initiative, responsibility and lead positive change to
motivate their team and increase productivity. Parker and Ying Wang (2015)
evidenced that a fair and effective leadership approach has a contributory impact
upon sales performance, growth and development of others. Zineldin and Hytter
(2012) agree with Parker and Ying Wang (2015) as they imply that effective
leadership is strongly related to an effective and productive workforce, as these
leaders build strong relationships with their employees. The research conducted
plays an important role with employees’ emotions and their overall wellbeing. If an
effective leadership style is applied it will create an engaging and relaxed working
environment, in which employees can exceed targets and objectives (Avolio and
Bass 2002).
Gaiter (2013) focused on overall leadership qualities. The research illustrates how
effective leadership promotes cohesive and stimulating teamwork. However the
paper points out that for a leader to be effective, they themselves must have an
understanding of their leadership style, employees and emotional intelligence to

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adapt in different situations to then gain the best from their team. This study can
be related to Zineldin and Hytter (2012) as both studies identify that effective
leadership is pivotal in building positive relationships with employees, to succeed
in business goals and organisational objectives.
Schwepker (2015) studied influential leadership behaviours, and how it is used to
increase sales performance. Schwepker (2015) identified that through a leader
adopting an effective style of leadership; they can support effective decision-
making, form strong relationships, trust and have an influential ability to succeed
in sales and business performance. This style of leadership encourages teamwork
to achieve a common goal, through inspiring, training and coaching. Furthermore
this is only made possible through adopting an effective leadership style, which
shares similarities to democratic leadership (Avolio and Bass 2002). This ensures
that employees are motivated, valued and satisfied in their job roles. The study
agrees with Parker Ying Wang (2015), who uncovered that effective leadership
influences and increases team productivity, and how leadership enhances overall
performance.
Flaherty et al. (2009) researched leadership propensity and their ability to
increase sales performance within a Retail setting. Their study highlighted a
relationship between Retail managers and their responsibility to sell. The evidence
suggests that different leadership styles can impact sales performance and
employee engagement, agreeing with Schwepker (2015). The study also pinpoints
that Retail managers should have a natural ability to sell. However through
adopting an effective leadership style, managers can influence and inspire their
team to increase sales throughout the entire operation. Overall this research has
uncovered how leadership and sales performance within a business are
intrinsically linked and how an effective leadership approach is vital in achieving
targets and company objectives. Furthermore Gaiter (2013) concurs with this
study and implies that effective leadership revolves around building strong
relationships within the team, and understanding their needs and capabilities to
enhance sales and people performance.
Aaskland et al. (2010) identifies that some leadership styles can be destructive to
an organisation impacting on sales and performance. The evidence illustrates that

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poor leadership can impact many aspects of the business including, recruitment,
development of others, sales and people engagement. These leadership behaviours
can be viewed as abusive, intimidating and show a lack of concern for others. Thus,
instilling fear within an organisation, impacting on the overall performance
highlighting that not all leadership styles can be beneficial but actually adverse.
Mulki et al. (2015) takes another viewpoint on leadership and performance. The
theory and research conducted relates to employee effort and how leadership
impacts effort levels within an organisation. Through investigating different
leadership styles it shows how different approaches can influence the growth of a
business. The evidence demonstrates that effective leadership promotes employee
effort, engagement and productivity within an organisation. The results from this
study show that through the leader building a strong rapport with their employees
they can influence behavioural change and motivate their team to achieve sales
targets and increase overall performance. Schwepker (2015) relates to this
literature, and suggests that effective leadership also develops and trains others
within an organisation as a method to exceed business objectives. This leadership
approach ensures employees are engaged, valued and are satisfied in their jobs,
thus aiding productivity and increased performance levels, which is closely related
to democratic leadership (Bennett 2003).
2.2 Autocratic leadership
Autocratic leadership can be defined as a leader who makes decisions on their own
within a business, putting an emphasis on control and direction over subordinates,
instilling authority within the team and throughout the organisation (Yukl, 2006).
Leadership is commonly perceived as being god like, and is a vital part for any
business to operate efficiently. However many different leadership styles exist, and
as a result they have variable traits and outcomes. Autocratic leadership is
perceived as being self-centred and domineering, which can have a negative
impact upon employees and performance (Restubog, 2006). De Hoogh et al. (2015)
agrees with this and associates autocratic leadership as having a negative impact
on the workforce and the organisation.

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As autocratic leadership is connected with power and control it can often impact
business performance, placing added pressure on employees, stress and uncertain
job security if individuals do not meet required expectations (De Hoogh and Den
Hartog, 2009). However De Hoogh et al. (2015) revealed that in an environment
with a low team power struggle, autocratic leadership could have a positive impact
upon performance, as the workforce feel safe due to having a controlling leader in
place. Schoel et al. (2011) links with this theory as people with low self-esteem
prefer autocratic leadership, suggesting they need a strong reliance of support and
control to meet goals and objectives.
DeCremer (2006) focused on how leaders sacrifice themselves for the benefit of
others. DeCremer (2006) also evidenced that autocratic leaders push their
opinions and orders upon subordinates impacting upon their motivation and
emotions. Thus causing employees to feel insufficient and inadequate. Which
agrees with De Hoogh and Den Hartog’s (2009) study that suggests autocratic
leadership puts added stress on the team, overloading them with information, thus
resulting in weaker team productivity. Lopez and Ensari (2014) researched
leadership styles and organisational outcomes. Their evidence implies that the
success and failure of a business is closely related to leadership styles. Their study
demonstrates that autocratic Leadership was perceived to be highly unfavourable
if an organisation failed, compared to other leadership styles. Furthermore
DeCremer (2007) agrees with this believing that autocratic leadership influences
negative emotions with employees, impacting performance, team engagement, and
manager-employee relationships.
Hernandez (2011) studied key characteristics in demoralisation of workforce. The
evidence suggests that autocratic leadership should only be deployed if a situation
requires urgent action. Furthermore this style becomes ineffective in the long-
term, resulting in high staff turnover. Cohering with DeCremer’s (2007) study,
which states that autocratic leadership influences negative emotions in the
workplace. Restubog (2006) believes that autocratic leadership can sometimes be
favoured, however the research implies that it is situation dependent and based on
a company’s culture. Furthermore Restubog (2006) does point out that autocratic
leaders can be domineering and self-centred.

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Overall Hernandez (2011) feels that autocratic Leadership is the most effective
style to make employees fearful, controlled, demotivated and demoralised in the
workplace. Johnson and Klee (2007) agree with this study as their evidence
reveals that autocratic leadership is strongly linked to passive-aggressive
behaviours. However Angus-Leppan et al. (2009), highlights that autocratic
leadership pushes teams into action, enforces expectations and standards for
employees to follow.
2.3 Democratic Leadership
Democratic leadership can be defined as a leader who encourages and supports
others within a team, but also allows employees to make decisions and share their
ideas (Avolio and Bass 2002). Stephan and D. Stanley (1989) feel that democratic
leaders consider the needs of others (employees), these leaders are supportive and
provide equal opportunities in the workplace. O’Mahony and Ferraro (2007) agree
with this, but also justify that democratic leadership allows and encourages
employees to freely share their thoughts and ideas, thus implying that this form of
leadership delivers a shared level of authority within a business.
O’Mahony and Ferraro (2007) also evidenced that a democratic leadership style is
a vital function that aids organisational growth and overall performance. Bennett
(2003) acknowledges this and highlights that democratic leadership empowers,
facilitates employees and welcomes change within a business. Furthermore
Bennett (2003) gives credit to this type of leadership as they have the ability to
engage all employees and provide stimulating tasks/activities. According to the
research it indicates that democratic leadership has a positive impact on
subordinates and workplace effectiveness.
Sart (2014) focused on innovation and entrepreneurship linking to effective
leadership styles. The research pinpointed key characteristics of democratic
leadership. Showing that these types of leaders create a more innovative working
environment, with an emphasis of working collaboratively together to improve
effectiveness and business performance, which relates to Bennett (2003) and
Adair (2007). Pines et al. (2001) concurs with this research stating that democratic
leaders focus on building a team, encourage employees to take responsibility and

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make decisions, whilst being supported by the leader. Furthermore their research
also highlights that this form of leadership takes more interest in the welfare of
their employees versus other leadership styles, autocratic and laissez-faire. Who
take more interested in winning for themselves and commanding control,
impacting on the business and employee performance (Grey, 1999).
Adhikari (2010) researched the power dynamics behind different leadership
styles. The paper identified that a democratic leadership style shares its power
with the workforce. Thus enabling growth and effective management within a
business, this corresponds to O’Mahony and Ferraro (2007) with regards to a
shared level of authority. Furthermore evidence illustrates that democratic
leadership improves human relations and encourages development within a team.
Grey (1999) highlights that other leadership styles can be viewed as ridged and
out-dated, whereas democratic leadership allows for the most effective outcome.
This coheres to Adhikari (2010) as they create a more welcoming environment,
but also provide a higher level of productivity and innovation, thus improving
overall business performance (Adair, 2007; Sart, 2014). Another viewpoint from
Adhikari (2010) suggests that at times democratic leadership can be unrealistic
and too fair when applied in reality, which may hinder the profitability. Moreover
O’Mahony and Ferrero (2007) and Bennett (2003) argue this point, their theory
indicates that this style of leadership is most effective for growth, development,
exceeding objectives and achieving productivity within an organisation.
2.4 Laissez-faire
Laissez-faire leadership can be described as the least and most ineffective
leadership style according to Deluga (1990). This approach dissatisfies employees,
has limited or no control over a team and evades responsibility within a business
(Avolio and Bass, 2002). Deluga (1990) states that laissez-faire leadership traits
relate to a lack of decision-making, and avoid taking the lead on many occasions.
However Deluga (1990) uncovered that this style also gives employees more
freedom to take their own action and responsibilities within the workplace.
Rowald et al. (2014) relates to Deluga (1990) by indicating that laissez-faire
leadership has limited or no direction, the paper uncovered that this form of

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leadership was least effective in organisations versus autocratic and democratic
leadership.
Allen et al. (2013) studied academic theories and models behind different
leadership styles, and how it impacts organisational change and creativity. The
research presents findings that demonstrate laissez-faire leaders are the least
effective in their comparative study. Furthermore the paper identified that these
leaders lack clear communications, and avoid any form of responsibility, which
coheres with Rowald et al. (2014). In summary Allen et al. (2013) suggest that
laissez-faire leadership generally has an adverse impact upon employees and the
organisation.
Sternburg (2013) argues other authors believing that laissez-faire leadership
empowers employees to drive their own development. Moreover Sterburg (2013)
reveals that this leadership quality is most effective in an environment where
there is an experienced workforce in place. However if this type of leader works in
an organisation that requires action, then these leaders will impact the business
adversely. This can be linked to Allen et al. (2013) in regards to how this style
impacts organisational effectiveness.
Harper (2012) theorises that effective leadership is one of the most vital parts to
the success of a business; furthermore the research illustrates that laissez-faire
leadership puts an emphasis on employees to work independently and without
direction, which concurs with Deluga (1990) as evidence suggests that this
leadership style avoids responsibility and often abdicates from their leadership
role. Moreover this study can also give credit to Sternburg (2013) as it allows
employees to motivate themselves to deliver results as responsibilities lie with the
workforce.
Aasland et al. (2010) investigated destructive leadership traits and behaviours, the
results highlight that laissez-faire showed to be the most destructive leadership
approach, due to the individual abdicating from their role. This study agrees with
Bass (1997), who suggests that laissez-faire has a detrimental impact upon
motivation and growth within an organisation. Bass (1997) epitomises the results
found within the literature, and coheres strongly with Aasland et al. (2010) as this

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type of leadership commonly eludes taking action and control. The research that
Bass (1997) undertook focused on the connection of selling and leadership styles,
and the results demonstrate that laissez-faire leadership avoids customer and
employee requests and communications. Thus showing a lack of concern for others
and the business. Based on the evidence within the literature laissez-faire
leadership is seen to be least effective versus autocratic and democratic.
2.5 Literature summary
Through analysing the literature found the author of this research has identified
each of the main leadership styles, autocratic, democratic and laissez-faire.
Moreover each of these styles have their benefits and flaws. However the literature
implies that a democratic leadership style is seen to be the most effective in
relation to sales and people performance because of its fair and equal behavioural
traits. The literature has giving scope to the research question and topic area, in
identifying different leadership styles and how they can impact overall
performance. In summary the literature has illustrated the importance of
leadership styles that are used in the workplace and how these different
leadership approaches impact on organisational performance.
Sternburg (2013) concludes the findings from other authors believing that
although one leadership style may be overall more effective than the others. The
study also acknowledges that effective leaders must be able to adapt to the needs
of changing circumstance and requirements, thus choosing the most effective
leadership style based on the situation. The evidence relates strongly with Hersey
et al. (2012) who developed a situational leadership model that suggests an
effective leader can customise their leadership style to suit the environment or
changing situations. The model shows four different leadership qualities, including
delegating, supporting, directing and coaching.
Through analysing and correlating the above literature, it illustrates that laissez-
faire, democratic and autocratic are all related to the situational leadership theory.
Through understanding this, leaders can encourage growth and development for
the organisation, but also to build a rapport with subordinates. Thomas (1988),
agrees with the above, but indicates that leaders can often be constrained by

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situational factors, thus suggesting that they must embrace different situations to
develop as an effective leader, making use of wide variety of different leadership
styles, which is made possible through using Hersey’s et al. (2012) situational
leadership model.
3.0 Research methods and design
Research methods can be defined as “the theories that social scientists develop to
understand the social world influence what is researched and how research findings
are interpreted” (Bryman and Bell, 2015: 5). This chapter will analyse and
demonstrate how the research has been conducted to effectively answer the
research question. Furthermore it provides a foundation and structure to the
methods used and philosophies, which have guided this study. Thus enabling the
author and reader to follow and understand how the research has been formulated
to answer the objectives. The research has been conducted using an explanatory
approach, which can be defined as “research that focuses on studying a situation or
a problem in order to explain the relationships between variables” (Saunders et al.,
2016:716). Through using an explanatory research approachit has enabled the
study to analyse and explain different leadership styles and their effectiveness on
store performance.
3.1 Research philosophy
The research philosophy chosen for this study is pragmatism, which illustrates
that the research provides recommendations for future practice, but to also solve
the problem of how different leadership styles impact on overall effectiveness and
store performance within Starbucks (Saunders et al., 2016). This philosophy will
enable research into concepts, theories and through conducting findings, which
will ensure reliability and validity (Cameron and price, 2009; Collis and Hussey,
2014). However another philosophy that could have been used is interpretivism,
as it creates an understanding of the importance of leadership and analyses
different interpretations of leadership styles and how others are impacted from
them. This philosophy uses small samples and a range of methods, to identify a
range of circumstances, individuals and situations (Bryman and Bell, 2015).
Moreover both philosophies are suited to this study however through conducting

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research the author hopes to identify and suggest recommendations on the most
effective leadership style for achieving overall store performance. Thus choosing
pragmatism, as theories can be applied to real-life situations and one that informs
future practice (Saunders et al., 2016).
3.2 Development of theory
The theoretical approach to this study will be formulated using a deductive
method. A deductive approach can be described as research that begins with
theory. Through examining relevant academic theories and literature, in which the
findings test or justify theory to pinpoint the most effective leadership style, it also
aids the development of the author’s understanding and knowledge of the research
area (Cameron and Price, 2009; Sunders et al., 2016). The theory has been sourced
from a variety of authors, which have uncovered differences in leadership styles
and how these qualities and behaviours impact performance. Once a sound
understanding had been gathered from theory it was then applied through
interviews with shift managers and Partners (employees), and quantitative sales
data. Which either argues the findings from theory or to justify the reliability and
validity of findings, indicating which leadership style is most effective on overall
store performance.
3.3 Methodological design
The research in this study uses a sequential mixed method approach (Saunders et
al., 2016), as it supports this type of study and the philosophy used (pragmatism),
by this it involves two phases of findings. The first, qualitative (interviews) that
will analyse the findings and make comparisons with the relevant literature. The
second phase involves using quantitative sales and transactional data that
demonstrates which leadership style is most effective on store performance.
Tashakkori and Teddlie (2010) feel that this approach will focus the study and
limit the field to examine more conclusive findings. Through using this type
methodological design it will enable the author to source theory to build valid
foundations to the findings, which then can be tested through two phases
enhancing reliability and robustness of the findings. Saunders et al. (2016),
reiterate the importance of using a sufficient methodological approach as it will

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analyse and provide a dynamic approach, aiding the author to draw out
conclusions and provide reliable recommendations.
3.4 Research strategy-case study
The study has taken the form of a case study, as it hopes to assess shift managers,
their different leadership styles, and how they impact effectiveness on overall
store performance within Starbucks. A case study analysis can be defined as “an in-
depth inquiry into a topic or phenomenon within its real-life setting” (Yin, 2014: 24).
Through using a case study, it enables the author to focus on an organisation,
develop insights into different shift managers and the leadership styles that exist.
Vissak (2010) implies that a case study approach is an appropriate method to
building an in-depth understanding of the research question. To extract findings
from relevant information, interviews, theory and data analysis. A case study
analysis has many benefits to this study, one of which is to find theory that has
already been discovered, which can then be applied to different leadership styles
(autocratic, democratic and laissez-faire) in a real-life setting (Collis and Hussey,
2014). Investigating how these different approaches impact the organisation. The
case study will also be able to draw out reliable conclusions and provide
recommendations for the store to grow and develop.
3.5 Time-horizon, cross-sectional
A cross-sectional time-horizon can be described as a study that takes a single point
in time (Wilson, 2014). Due to the time constraints that exist in conducting this
study, a cross-sectional time frame is suitable to gather sufficient evidence for the
case study. It allows the author to focus on one organisation. However it does
provide limitations to how much evidence can be sourced. The quantitative
element to this research is sales and transaction data that have been collected from
different shift managers over a five-week period. To further improve reliability a
sequential mixed method approach has been used to provide validity from what
has been suggested in the theory, despite the time constraints. Saunders et al.
(2016) gives credit to this and indicates that a case study is most suited to a cross-
sectional study, as data is often collected over a short period of time.

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3.6 Data collection methods
Data collection methods underpin the means to collecting reliable and valid data to
answer the research question. The study has focused on using sequential mixed
methods, both qualitative and quantitative. Interviews have been used to provide
evidence in assessing different leadership styles, their effectiveness on
performance and their impact on subordinates. Saunders et al. (2016) defines the
research interviews as “a purposeful conversation between two or more people,
requiring the interviewer to establish a rapport and ask concise and unambiguous
questions”. This study uses structured interviews; for example the interviewer
reads out questions that have been prewritten with the hope to understand
different viewpoints of individuals across the organisation (Wilson, 2014).
Furthermore the interviews will be split into two halves, one set of standardised
questions for managers and the other for Partners (employees).
As stated above the data collection also considers quantitative data of sales reports
and transaction data (appendix 1-example). This from of data collection can be
described as numerical data, as it shows how different leadership styles impact
sales, but also productivity performance. Moreover the approach used in this
instance allows the evidence to be more precise (Brown and Saunders, 2008). To
which, can then be categorised in a ranking format to examine the most effective
leadership style, linking back to the qualitative data as it continues to justify
results and answer the research question (Maylor and Blackmon, 2005).
The final aspect of data collection revolves around sourcing the relevant theory
and literature to support or argue the findings. Furthermore Bulmer et al. (2009)
believes that secondary data can provide an understanding, additional knowledge,
perception and conclusions to give this research area scope to build upon the
results found from the findings. This study uses “document secondary data”
(Saunders et al., 2016), which is commonly used for research projects that involve
primary data. Moreover the secondary data has been sourced from numerous
journals and some books, thus providing a variety of differing concepts, theories
and views. Not only has secondary data provided a background to the research
question. It has also enabled the data to be tested against the leadership styles that

SID: 1333464 21
exist and ones that are most effective on overall store performance within
Starbucks.
3.7 Sampling methods
The sample size required for the case study was fairly small due to the evidence
required to justify the theory and findings. Neuman (2005) highlights that
purposive sampling is suitable for small sample sizes as it acquires informative
and rich evidence. The method of this sample is purposive sampling, as the sample
group has been specifically chosen in the case study to answer the research
question and objectives. Furthermore this method can be linked to heterogeneous
sampling as it uses the author’s judgement to prove or disprove theory that exists.
It also provides clear differences between individuals, improving reliability and
validity to answering the research question (Patton, 2002; Maylor and Blackmon,
2005). It is suited to this study as it compares and contrasts different leadership
styles, but also interviews Partners (employees), showing how they have been
impacted from different leadership styles.
3.8 Gaining access and research ethics
Cameron and Price (2009), highlight the importance of research ethics, which
point out that it is the author’s responsibility that all participants and respondents
are respected, informed, and remain confidential at all times. The ethical research
foundations have been approved and consented, which have been at the forefront
of importance throughout this study. Collis and Hussey (2014) support the
importance of ethics believing these elements to be vital in the success of a
research project. If ethical procedures and practices are not correctly followed it
may hinder reliability and validity of the results found, but may also have severe
consequences on the individuals and the organisation’s reputation.
Throughout this study gaining access has been of paramount importance to
sourcing the evidence needed to answer the research question and objectives.
Furthermore access was needed using traditional and physical access (face-to-
face) for the store managers and employees (Saunders et al., 2016). This approach
also used oral and visual communication (Collis and Hussey, 2014). The same
approach applies to the access of sales and transaction data, despite the author

SID: 1333464 22
working for Starbucks. To comply with research ethics, an email was sent to
approve the study and verify the feasibility of the research (appendix 2, email
approval). With regards to gaining secondary data, numerous academic journals
and books have been used (permission to access), they have been correctly
accredited throughout to avoid plagiarism and to give credit to other authors’
work (Cameron and Price, 2009). Access to sourcing this information has been
through use of academic websites and university libraries.
Research ethics can be defined as “standards of behaviours that guide your conduct
in relation to the rights of those who become the subject of your work, or are affected
by it” (Saunders et al., 2016). The research conducted in this study has considered
code of ethics to avoid poor practice and limit harm to others, which could of
influenced the results and findings (Wilson, 2014). Furthermore interviews were
conducted, respecting privacy (protecting names) and using an informed consent
form (appendix 3, consent form), to ensure understanding of the research
undertaken and ethical consequences. This study has used a deontological ethical
view, which believes that code of conduct should always be adhered, which has
aided the researcher throughout the study to comply with all ethical standards
(Berry, 2004).

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4.0 Findings and analysis
The research question hopes to identify the leadership differences between shift
managers in Starbucks and their effectiveness on store performance. The literature
from this research area highlighted some common trends regarding different
leadership styles and the effectiveness they pose. The data forming part of this
study includes interviews from both shift managers and their teams (employees)
corresponding with secondary data. Through investigating the different leadership
styles that exists, then contrasting and comparing the evidence against
quantitative sales, transactional data and employee interviews to justify which
leadership style is most effective on overall store performance.
4.1 Shift manager interview-1
(Appendix 4, shift manager 1-interview)
Through analysing the interview from shift manager 1 at Starbucks, it has
uncovered that this leader has a democratic leadership style as the individual has a
fair and open approach to the way they manage, but also allows employees to
share their ideas to further the business, which can be related to Adhikari (2010)
who concurs with this leadership approach believing that it allows employees to
drive their own development through the democratic leader’s support.
Based on the questions asked relating to how they direct and manage their team
(e.g. sales drop/not meeting targets), and whether they feel their own leadership
style is effective. This democratic shift manager implies that they provide a
welcoming environment for employees and customers. Through this, the leader
can coach and train their team effectively, striving to exceed budgets and targets.
Relating to Stephan and D. Stanley (1989) who identified that democratic leaders
provide equal opportunities to increase productivity and overall performance. The
interview also highlighted which leadership style is most commonly used within
the store. Autocratic leadership appeared to be most prevalent based on the
interviewee’s answer, if this is the case, autocratic leadership can command
control, take responsibilities away from others and can stunt development of a
business (Hernandez, 2011).

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Through analysing the answers from the interview with shift manager 2, it has
illustrated that this leader manages by letting the team do as they wish, leaving
responsibility with subordinates (laissez-faire). Furthermore this leadership style
connects with Avolio and Bass (2002) who feel this approach to be least effective
within an organisation as the leader avoids responsibility and shows a lack of
concern. This has been reiterated from the answers given, which identifies how the
leader directs, develops and increases sales growth in the business. This laissez-
faire leader states they are not concerned with a drop in sales as they feel it to be
an anomaly, this approach also impacts service given on shift and the support
provided to their team.
This leader often abdicates from their management role leaving other individuals
to make decisions, which relates to Deluga (1990) who agrees with this interview
and the leadership style used. The shift manager believes their leadership style is
effective as Partners (employees) are given freedom, relating to Sternburg (2013)
as this approach empowers employees to motivate themselves. Despite this, the
final question demonstrated that the shift manager does feel that a democratic
approach has the biggest positive impact on effectiveness and overall store
performance based on their observations and sales made from other shift
managers they work with, which expresses that their style may not be as effective
as democratic for example.
Autocratic leadership is described as a leader who makes their own decisions
without consulting others, maintains strict control across the business and
subordinates. Which emphasises authority throughout an organisation (Yukl,
2006). Interview with shift manager 3 epitomises this definition, as the leader likes
to control the entire team to ensure all objectives are met to the required standard.
If tasks are not completed or to a standard set by the leader, they then micro-
manage individuals until tasks are completed. The evidence provided relates to

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DeCremer (2007), where autocratic leaders sacrifice others for the benefit of
themselves, impacting on motivation and emotions within the team. Restubog
(2006) coheres with this and points out that autocratic leaders are domineering
and self-centred.
Crane and Matten (2010) relate to autocratic leadership style as egoistic, which
only looks at the short-term goals, not the long-term consequences of this abrasive
leadership style. This connects with the answers given regarding training, as the
leader finds it frustrating to train people as it affects their overall control on shift.
Overall this leader feels that their autocratic leadership style is most effective,
highlighting that the leader is not aware of how they come across to others.
However the interview answers suggest that they have indicated that leaders with
a democratic leadership style (fair) generally have a happier team, but the leader
also points out that they can not drive the team into urgent action if required,
agreeing with Angus-Leppan et al. (2009).
Shift manager 4, also uses an autocratic leadership style to managing their team,
although they do point out that they try to embrace a democratic style. However
the leader gives orders to subordinates and finds it annoying when team members
do not follow direction. This leadership style can be demoralising and invasive
relating to Johnson and Klee (2007) as their study uncovered that these leaders
are often passive-aggressive. A common trend developing from the interviews is
that the leaders mainly feel that a democratic leadership style is the most effective.
Moreover based on the answers provided from this individual, evidence suggests
that the leader does not feel it is their duty to train or support team members,
instead they direct and expect employees to follow orders delegated by the leader.
De Hoogh et al. (2015) concurs with this style of leadership, believing that in an
environment with a low team power struggle, autocratic leadership is often
favoured, as team members prefer to be directed. Moreover this can be connected
to the interview as the shift manager finds their approach to be effective as the job
always gets done through using a tell-and-do approach. Through analysing the

SID: 1333464 26
interview with the individual, it shows that this leader often thinks about
themselves rather than others. This can be linked to sacrificing others for their
own benefit, giving a perception of being self-centred (Restubog, 2006; De Cremer,
2006). In summary this interview has highlighted that although the individual is
aware that a democratic leadership style may be more effective. It is apparent that
they employ an autocratic approach, which may impact on motivation and
productivity within their team.
Democratic leadership is described as managing in a fair, open and transparent
manner, enabling individuals to share initiatives and ideas (Avolio and Bass, 2002;
Adair, 2007). This gives credit to shift manager 5 as they maintain this style when
managing at Starbucks, also allowing the leader to develop people and the
business. With questions regarding training and direction, they support, coach and
develop their team in the best possible way, offering guidance to ensure
understanding and productivity. This approach concurs with Sart (2014), who
feels that this style of leadership encourages others to work together to improve
the working environment and overall effectiveness.
A common theme emerging throughout the interviews is that democratic is the
most effective leadership style on store performance. This shift manager agrees
with most, stating that democratic is the most effective as they feel that their
team’s always productive, engaged and relaxed. This shift manager uses their team
to play on their strengths, but also gives Partners (employees) the opportunity to
rotate tasks, keeping team members focused and motivated, thus improving store
performance and productivity. Agreeing with Bennett (2003) who uncovered that
democratic leaders have the ability to fully engage others and provide stimulating
working environments to encourage development.

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4.6 Employee interview-1
(Appendix 9, employee 1-interview)
Through investigating and analysing the answers from employee interview 1, it is
evident that this individual prefers to be managed and directed in a democratic
manner, as the working environment is more relaxed and enjoyable. They also feel
that it is the most effective approach to use in the store as the team can deliver
excellent customer service, whilst having fun on shift. Which gives credit to
Schwepker (2015) who suggests that effective leadership inspires subordinates
and encourages others to develop. Moreover evidence from this interview suggests
that autocratic leadership is commonly used in-store.
This interviewee points out that this style of leadership has impacted their
motivation and satisfaction in their role as they are given limited responsibilities
to make decisions and development opportunities are weak. Aasland (2010)
concurs with the evidence stating that some leadership styles (autocratic) can be
destructive in the workplace, hindering overall performance and development of
others. Furthermore this interview has uncovered how poor leadership adversely
impacts overall performance and subordinates value and satisfaction in the
workplace, which may contribute to a high staff turnover, weakened sales and the
organisation’s reputation.
Based on the evidence provided from interview 2, it suggests that a democratic
approach is the most favoured leadership style when the individual is being
managed. The interviewee points out that they generally feel the working
environment is open and relaxed. However from the answers given it implies that
some shift managers are not as supportive, to which the individual can get stressed
and frustrated with the added pressure. Heggde (2015) studied how effective
leadership can promote employee effort. Through analysing this interview,
effective leadership is used within Starbucks, and as a result this individual feels
motivated and valued most of the time.

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Zineldin and Hytter (2012) uncovered that a democratic leadership approach
concurs with relationships with team members and an increase in productivity
levels. The evidence agrees with this interview as they have fun with all team
members including managers, and are engaged in their job role. Gaiter (2013)
gives credit to this and highlights that through promoting teamwork and with
managers having developed emotional intelligence, employees are more motivated
to achieve operational goals and targets. The final question from this interview
proposes that democratic would be the most effective on the subordinates
performance and overall effectiveness in the Starbucks store.
Interview 3, demonstrated some different answers than expected, this individual
prefers to be managed with an autocratic leadership style as they need direction
on shift. Furthermore the individual finds it motivating, as they are aware of
targets and what is expected from them. Through analysing the evidence, the
interview can be linked to De Hoogh et al. (2009) who uncovered that teams with a
low power struggle thrive in an environment with an autocratic leader. However
Sternburg (2013) illustrates that the most effective leadership style can be
situation or individual dependent, showing that some prefer more structure and
direction than other subordinates.
In Summary to this interview, the individual’s answers do imply that although they
prefer an autocratic leadership style, on occasions training and support is not
made readily available, stating that some managers are more willing to coach and
train. Moreover the final question suggests that there is a variety of different
leadership dynamics at Starbucks, which is suited for this type of Retail
environment. However through peak times Hernandez (2011) uncovered that
autocratic leadership is effective if the store requires urgent action to keep up with
demand. However through long-term use it can be ineffective and damaging to the
overall organisation’s performance.

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The final interview from employee 4 epitomises that democratic is the most
favoured leadership style in the store, partly because leaders take more interest in
the workforce and their welfare in comparison to other leadership styles (Pines et
al., 2001). The individual also feels that these effective leaders provide a happy
environment to achieve job satisfaction. Overall the interviewee points out that
they feel a democratic leadership style is most effective on their productivity and
on overall store performance.
The interviewee has highlighted that the least effective managers in Starbucks can
be controlling. Thus making the individual fearful to ask for support or
development. The evidence relates to autocratic leadership behaviours, as a result
these leaders can be demoralising and passive-aggressive (Johnson and Klee, 2007;
Hernandez, 2011). This interview coheres with the majority of the other employee
interviews, indicating how different leadership styles can impact performance
within Starbucks, and how subordinates can feel undervalued if a destructive
leadership style is employed (Aaland et al., 2010). Moreover an effective
leadership style (democratic) increases this individual’s productivity, allowing
them to share ideas and generally enjoy the working environment at Starbucks.
4.10 Interview summary
The interviews conducted have provided an insight into different leadership styles
and how they impact effectiveness; from interviewing managers and Partners it
has shown different perspectives on how these leadership styles are perceived
within Starbucks. Furthermore based on the evidence given it has illustrated that a
democratic leadership style is most favoured, and one that is most effective on
overall store performance, with 67% of the interviews agreeing with this. The
author feels this style to be most effective as it provides a stimulating workplace,
encourages subordinates to take initiative and responsibility. These leaders also
embrace positive change as a method to develop the organisation further (Parker
and Ying Wang, 2015). Adhikari (2010) agrees with the findings and reinforces

SID: 1333464 30
that democratic leadership improves human relationships, develops others and
shares power with their team.
However the findings from the interviews have indicated opportunities for the
shift managers to develop their leadership style, at times some of their leadership
styles are impacting store and people performance, through a lack of concern or
being unaware of how they appear to others has had an adverse impact on their
effectiveness as leaders. Aaskland et al. (2010) concurs with the findings and
points out that some leadership traits can be destructive and impact training, sales
and business development. Through these leaders adopting a democratic
leadership approach they can inspire, increase sales and performance with
subordinates (Flaherty et al., 2009). Furthermore Gaiter (2013) reiterates the
importance of building strong relationships and understanding subordinates to
effectively drive success and improve overall store performance.
5.0 Data analysis
To justify, test and evaluate the findings from the interviews, daily sales and
transaction data has been collected over a 5-week period (7 shifts Monday-
Sunday) per shift manager), the sales have been pin pointed to the relevant shift
managers. This section of the findings and analysis hopes to prove that democratic
leadership is the most effective leadership style on store performance based on the
findings in the previous section. However the evidence found here will consider
many variables and factors that may influence or change the results. Factors that
may affect the results will give thought to the team on each of the manager’s shifts,
fluctuating footfall and weather. The sales data will look at total daily sales, and
peak transactions taken from 12pm-1pm then averaged out from the 7 shifts each
manager has worked (appendix 1, example of daily sales data).

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5.1 Sales data
Sales data of 5-shift managers, total of 7 shifts per manager Monday-Sunday
Figure 1-Sales data
Manager 1
Democratic
Manager 2
Laissez-faire
Manager 3
Autocratic
Manager 4
Autocratic
Manager 5
Democratic
Daily average-
£1399.9 £1156.04 £1205.78 £1304.76 £1294.27
Total sales-
£9799.30 £8092.30 £8440.48 £9133.35 £9059.90
Figure 1.1-Sales data (chart)
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
Manager 1,
Democratic
Manager 2
Laissez-faire
Manager 3
Autocratic
Manager 4
Autocratic
Manager 5
Democratic
Average sales
Average sales

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Through analysing the above sales data, a number of conclusions can be made.
Manager 1 who has a democratic leadership style has demonstrated that they took
the highest amount of sales over the other leaders, showing a substantial increase
of 17.4% versus manger 2 (laissez-faire). Initially showing that democratic is the
most effective leadership style. Relating to Heggde (2015) believing that these
leaders can influence the growth of the business through supporting their
subordinates. This evidence concurs with the interviews conducted and how this
leader provides support and development throughout the Starbucks store.
Manager 5 (democratic) also achieved strong sales relating back to the findings
from the interview and literature that democratic leadership is the most effective
on overall store performance. However manager 4 who primarily uses an
autocratic leadership style with some elements of democratic (appendix 7, shift
manager 4-interview) has shown to have the third strongest sales within the group
of managers, highlighting a difference of 6.8% against manager 1.
The evidence found from these findings connects with Sterburg (2013) that the
most effective leadership style can be situation dependent. Furthermore the study
by Restubog (2006) agrees with Sternburg (2013) and also points out that
autocratic leadership can have a positive impact on business and performance if a
situation requires urgent action. Whereas DeCremer (2007) implies that autocratic
leadership influences negative emotions impacting on productivity and
engagement. Nevertheless both democratic managers in this case prove to have
strong sales indicating that democratic leadership is most effective with regards to
sales. A counter argument from the literature suggests that democratic leadership
can be unrealistic and too fair (Adhikari, 2010), however Bennett (2003)
uncovered that this leadership style is essential for business growth and
development. Moreover it is important to acknowledge other influencing factors
that may have affected the results, these include footfall fluctuations and the team
who the shift managers’ had on duty.
Analysing the other evidence provided from the sales data gives credit to previous
research and the interviews conducted, expressing that laissez-faire is the least
effective on overall store effectiveness. The above tables 1 and 1.1 demonstrate
this leader has achieved the weakest total and average sales in contrast with the

SID: 1333464 33
other managers, which agrees with Rowold et al. (2014) who discovered that
laissez-faire leadership is least effective in organisations. These leaders lack
direction, abdicate from their leadership role and avoid decision-making (Allen et
al., 2013), demonstrating the poor sales results found in the findings. The sales
data above, also investigates shift manager 3, who has an autocratic style, they too
achieved weak sales versus other managers. Relating back to their interview, this
manager likes to control and micro-manage their team, impacting on productivity
motivation and overall performance. Johnson and Klee (2007) concur with these
findings, and add that these leaders can impose fear, aggression and intimidate
subordinates, thus having an adverse impact on overall store effectiveness.
5.2 Peak transaction data analysis
Peak daily average (12-1pm) transaction from 5 shift managers PTPH (peak
transactions per hour)
Figure 2-Transaction data
Manager 1
Democratic
Manager 2
Laissez-faire
Manager 3
Autocratic
Manager 4
Autocratic
Manager 5
Democratic
50.4 PTPH 33.7 PTPH 38 PTPH 41.5 PTPH 51.7 PTPH

SID: 1333464 34
Figure 2.1-Transaction data (bar chart)
Through analysing the peak average transactions from different managers, it
hopes to demonstrate how productive each shift manager is and the way they
direct their teams to the most efficient working stations. The above Figure 2 and
2.1 pinpoints the highest shift manager who achieved an average of 51.7
transactions per hour over peak times (12-1pm). Furthermore this leader has a
democratic leadership style, which can be related to providing a stimulating
working environment where ideas and initiatives are shared, to give all
subordinates equal opportunities (O’Mahony and Ferraro, 2007; Sart, 2014).
Two of the strongest PTPH are both democratic leaders, revealing that these
leaders are most effective when running shifts but also improving business
performance as more customers are served quicker, thus hitting budgets and
targets. Bennett (2003) agrees with the findings believing that this style of
leadership can embrace change develop others and increase overall business
performance, which justifies the findings from peak transaction data. However it is
important to consider other findings from the literature, Hershey’s et al. (2012)
situational leadership theory demonstrates that these leaders should be able to
adapt to their situation depending on external and internal factors. Although the
Manager 1
Manager 2
Manager 3
Manager 4
Manager 5
0 10 20 30 40 50 60
Average peak transactions per hour
Average peak transactions per hour

SID: 1333464 35
evidence above suggests that democratic leadership is most effective, it is
important to understand that these leaders should not be constrained by different
situations (Thomas, 1998).
The data found in this study highlights how autocratic and laissez-faire leaders
have the weakest transaction performance, with shift manager 2 38.1% down
versus shift manager 5, showing a substantial difference between the leaders and
how they impacted peak performance. This provides further opportunities for
these managers to understand subordinates capabilities and direct their team
using their strengths as a method to grow transactions and sales. Flaherty et al.
(2009) studied leaders’ propensity to influence others and their ability to sell, they
discovered that for leaders to effectively sell, their team must be inspired and
encouraged to increase business performance. This relates to Parker and Ying
Wang (2015) who agrees that through providing a stimulating environment the
team are more engaged and motivated and share the organisation’s goals. This
theory can be applied to shift manager 1 and 5 who use a democratic leadership
style. The evidence suggests from interviews, literature and quantitative data to be
the most effective in attaining strong peak transactions and sales, showing overall
effectiveness on store performance within Starbucks.
5.3 Findings and analysis summary
Through investigating and analysing the evidence provided from the interviews,
sales and transaction data it has given an insight into how different leadership
styles impact overall store performance. Laissez-faire leadership has shown to be
the weakest and least effective, which has been backed by theory primarily from
Bass (1997) and Aasland et al. (2010), and the answers given from both managers
and Partners. Demonstrating that this form of leadership can be destructive to an
organisation, impacting on store performance and effectiveness.
The findings have also indicated that although autocratic leadership is perceived to
be a negative quality, it has shown that it can have a positive contribution to store
performance. Furthermore this is dependent on the type of organisation and the
situation (Schoel et al., 2011; Sternburg 2013; De Hoogh and Greer, 2015).
Moreover the evidence found in the interviews illustrate that autocratic leaders

SID: 1333464 36
often influence negative emotions, overload and put unnecessary pressure on
subordinates (De Cremer, 2007; De Hoogh and Den Hartog, 2009), hindering the
effectiveness on overall store performance. In summary democratic leadership has
proved to be the most effective style on overall store performance and
effectiveness within Starbucks.
Through conducting interviews with Partners, nearly all agree that democratic
leaders are overall most effective, which has then been justified through sales and
transaction data that highlighted the positive impact on subordinates’ productivity
(Heggde, 2015). Additionally as mentioned in 5.1, influencing factors may have
impacted the results; this could have potentially been the weather, amount of
Partners on each shift, weekends and footfall fluctuations at different times of the
year. These influencing factors can be overcome through using the situational
leadership theory that indicates an effective leader should be able to adapt to the
needs of the business at any time (Hersey et al., 2012).
6.0 Conclusion
The research and study has uncovered many findings and theories that relate to
solving the research question. Through analysing and evaluating relevant
literature that illustrates how different leadership styles affect overall
performance. This also highlights the importance of adopting an effective
leadership style to improve and develop effectiveness and overall performance.
The main findings from the literature discussed, autocratic, democratic and
laissez-faire leadership, identifying their different leadership traits, behaviours
and how they contribute to effectiveness and performance.
The literature indicated that laissez-faire leadership was the least effective style as
these leaders often abdicate from responsibility and leave decision-making to
subordinates, showing a lack of concern in their role. In contrast autocratic
leadership was shown to be controlling, impose fear within the team, which is
found to have domineering impact in the working environment. However there
were some benefits to this style, as these leaders are of benefit to an organisation
when urgent action is required, however this can be situation dependent, but often
least effective in the long-term. Finally the evidence from the literature states that

SID: 1333464 37
democratic leadership is the most effective when applied to overall performance
and effectiveness. This is due to their ability to share power with subordinates,
encourage initiative and ideas to improve performance, embrace positive change
and support the development of others. Based on this evidence, it has provided the
author with a background to argue, test and prove that democratic leadership was
the most effective leadership style throughout the findings and analysis section of
this study.
The findings and results from the study concurred with some of the evidence
found in the literature and existing theories such as Sternberg (2013) and Hersey
et al. (2012). The interviews conducted found laissez-faire leadership was the least
effective with employees. Whereas democratic leadership was generally more
favoured and effective when managers and Partners were questioned on this
leadership style. The evidence indicates that democratic leaders have the ability to
develop others, provide support, and manage through using a flat hierarchy, thus
making it most favoured by employees. The interviews also investigated autocratic
leadership, in which shift managers 3 and 4 reflected this style. Their behaviour
and traits on shift were evidenced from theory suggesting these leaders to be
controlling and command authority with subordinates.
The quantitative element to this study focused on daily sales and peak
transactional data, this was used to demonstrate the productivity on shift and
store performance. This was then compared and contrasted against the evidence
found from interviews and theory. Furthermore based on the findings shift
manager 1 (democratic) achieved the strongest performance, followed closely by
shift manager 5 (democratic), these conclusive results point out that democratic
leadership is the most effective leadership style on overall store performance.
However shift manager 4, who has a mixed leadership style of both democratic and
autocratic, achieved strong peak transaction results, which can be associated with
theory from De Hoogh et al. (2015). Believing that autocratic leadership can be
effective in times of urgent situations, affiliated with high volume of transactions in
the store. Furthermore the evidence reflected the situational leadership theory
that suggests an effective leader could adapt leadership styles depending on the
business needs (Hersey et al., 2012). Finally shift manager 2 (laissez-faire) had the

SID: 1333464 38
weakest sales and transactional data results (Table 1 and 2), which coheres with
the finding from the interviews and literature, that this leadership style is least
effective on overall store performance.
Overall through using the appropriate methods to conduct the study and research
it has enabled the author to identify the most effective leadership style on overall
store performance within Starbucks. Referring back to headings 5.0-5.3, the
evidence demonstrates that democratic leadership is the most effective as it
provides an open and relaxed working environment. Team members are
motivated, engaged and developed continuously, thus allowing these leaders to
achieve strong results in an organisation such as Starbucks. Furthermore a
democratic leadership style understands and uses subordinates strengths to
achieve business objectives and goals.
In conclusion the evidence found in this study has been proved and tested by
existing theory from Avolio and Bass (2002) regarding different leadership styles
and their effectiveness. However Sternburg (2013) tests that democratic
leadership is the most effective, and believes that an effective leader should be able
to adapt their leadership style depending on the situation and varying influencing
factors, such school holidays, footfall and the weather. Moreover in this study the
findings are conclusive and indicate that democratic leadership is the most
effective in acquiring overall store performance within Starbucks. Northouse
(2013) reinforces this but stating that leadership is sought after in organisations
and can provide support in achieving profit growth in the competitive
environment.
6.1 Practical recommendations
The practical recommendations for this study, will hope to aid Starbucks stores in
adopting the most effective leadership approach for shift managers. The evidence
demonstrated in this research could support Starbucks in developing others;
whilst providing an open and relaxed working culture for both customers and
Partners. It will also allow for performance growth across the Starbucks operation.
Thus increasing overall effectiveness and productivity with subordinates.

SID: 1333464 39
From the research conducted and the evidence in the findings the results show
that democratic leadership is the most effective on overall effectiveness and
performance. The findings highlight that these leaders provide an emphasis on
supporting others, encourage training, development and share authority
throughout the business. This conclusive evidence implies that democratic
leadership was most favoured and valued by employees, which highlighted an
increase in their performance and productivity. Partners within Starbucks state
that they feel more motivated to achieve organisational goals and objectives when
their managers use a democratic leadership style. The sales and peak transaction
data also supported the findings from the literature and interviews, that
democratic leadership is most effective on overall store performance. Although the
evidence also indicates that effective leaders must be able to change styles
according to the business situation. It is also practical to point out that some of the
managers within Starbucks currently have destructive leadership styles adversely
impacting the business. Moreover this shows an opportunity to adopt a more
effective leadership style to avoid poor leadership and practice.
The author’s recommendations are that all Starbucks stores and shift managers
should adopt a democratic leadership style based on the evidence found in this
study. Furthermore through the company effectively training and coaching shift
managers on the importance of leadership, and getting individuals to become more
self-aware in understanding subordinates. But to also underpin the importance of
examining external factors that may contribute to changing situations, and how to
overcome them. The company can then progress and embrace positive change
throughout the organisation. This will substantially contribute to the overall
effectiveness and performance across the entire Starbucks operation, relating to
theory from Adair (1997).
6.2 Further research
Although this research has provided an in-depth analysis into a number of
different leadership styles, and how they impact performance and effectiveness. It
is apparent that there are still opportunities to develop this and build upon
reliability and validity from this study. For further research, expanding the time-
horizon to a longitudinal study would enable further investigation into other

SID: 1333464 40
leadership styles, for example transactional, transformational and ethical
leadership. Through using this approach it would test and argue the evidence
found in this study, but it would also provide an opportunity to compare and
contrast these with the current styles being used within Starbucks and in this
study. Furthermore this would enable the researcher to recommend the most
effective and least effective leadership styles within Starbucks, using a wider
variety of leadership styles. This research has identified that democratic
leadership is the most effective. Although the findings and theory imply that it can
be situation dependent (Hersey et al., 2012; Sternberg, 2013) through researching
this further it will provide more detail on how these leaders can adapt to situations
to achieve organisational goals and objectives.
The study conducted in this research area has provided conclusive evidence that
democratic leadership is most effective on overall store performance. However to
further develop this, it could be tested across other Starbucks stores, which could
support the findings from this study, it may also improve reliability and validity.
Moreover constraints would consider additional time that would be needed to
assess and investigate a number of stores across the country. Another approach
that could be used would have been to conduct the quantitative element of this
study over a 12-month period, giving more robust and consistent averages, which
would take into account other influencing factors, such as peak times of the year.
It may also be beneficial for further research to delve into other KPIs (Key
Performance Indicators) within Starbucks, looking into labour control, food sales,
average transactional value and seasonal targets. This can then be compared
against relevant leadership styles and theories. Through using this method it
would allow the researcher to analyse and investigate a number of different
business variables to test or justify existing theory or evidence from interviews,
improving reliability and validity of the research. That will also demonstrate the
most effective leadership style on other aspects of the business.
To conduct further research from this case study and expand the scope of the
investigation, it would be intriguing to use the same approach across other retail
businesses, identifying different managers and business objectives and how these
affect and impact effectiveness and performance. This would also provide an

SID: 1333464 41
opportunity to compare and contrast the results found between different
organisations, develop common trends and either prove or disprove that
democratic leadership is the most effective on overall store performance in the
Retail industry. Overall the further research element to this study aims to support
other researchers in expanding what has been discovered in this study and other
research that has been undertaken. With the hope to identify the most effective
leadership style and the importance this has on overall organisational
performance, innovation, growth and development in the Retail industry (Adair,
2007).

SID: 1333464 42
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8.0 Appendices
Appendix 1, Sales and transaction data

SID: 1333464 48
Appendix 2, Starbucks approval email
Email, requesting approval for dissertation
Email response from District Manager

SID: 1333464 49
Appendix 3, Interview consent form
Interview consent form for undergraduate dissertation
Project- A Case Study Analysis of different Leadership Styles, between Shift
Managers within Starbucks, and its Impact on Effectiveness and Overall Store
Performance.
My name is Jay Powell, as part of my degree Programme at Colchester institute; I’m
required to conduct an undergraduate dissertation. The research will hope to
analyse and evaluate a number of different leadership styles and how they impact
effectiveness and overall store performance within Starbucks. Your contribution to
this research will support me in gathering relevant information to effectively
answer my research question and to uncover the impact of different leadership
styles within Starbucks.
The interview will last between 10-20 minutes depending on how much you say,
and notes to your answers will be written throughout. The evidence that you
provide will be confidential, to ensure validity and reliability in this study.
Furthermore should you wish to check any of the questions discussed today then
please contacted me through my direct email: jaycpowell94@gmail.com
By signing this consent from, you confirm that you have read all of the above, and
full understand the above study, to which you have had the opportunity to ask any
questions beforehand. You understand that you contribution is voluntary and that
you are free to withdraw from this process at any time. You agree for notes to be
taken, and agree to be part of this research. The researcher will not identify you by
name throughout this study ensuring confidentiality.
Signature of interviewee:
Date:
Signature of researcher:
Date:

SID: 1333464 50
Appendix 4, Shift manager 1 interview
Dissertation interview questions for managers
Shift manager 1, leadership style democratic
Autocratic leadership can be defined as a leader who makes decisions without
consulting others, with an emphasis on control; direction over subordinates, and
instils authority within the team and throughout the organisation (Yukl, 2006).
Democratic leadership can be defined as a leader who encourages and supports
others within a team, but also allows employees to make decisions and share their
ideas (Avolio and Bass 2002).
Laissez-faire leadership can be described as the least and most ineffective
leadership style. This approach dissatisfies employees, has limited or no control
over a team and avoids responsibility within a business. However it gives
employees more freedom, and to take responsibility (Avolio and Bass, 2002).
In your role at Starbucks as a shift manager, which of these do you feel
reflects your management style best and why?
“Personally, I feel that I mainly use a democratic leadership style, as I like to be fair
with my team, let them share their ideas with me to improve and grow the business. I
also feel my leadership style supports a happy working environment where my team
can be most productive.”
Out of all the leadership styles described above, which do you feel is most
commonly used in the store?
“From my experience of being in the business for over 10 years, I feel that autocratic
is most commonly used, as a number of other shift managers that I have worked with
use a tell-and-do style when they manage their teams, which can be blunt and harsh
at times.”

SID: 1333464 51
If a member of your team doesn’t meet the deadlines that you have set them,
how would you react? And what approach/method would you use to
overcome this challenge?
“ I would try and coach them and talk with them to understand why these deadlines
haven’t been met. Then once I understand their needs, I would try my best to support
them through training.”
How do you direct Partners when you’re managing your shift, and do you
find this approach to be effective?
“When I direct partners on shift, I try to be fair and encourage them to try something
new or learn about any changes in the store, although when it’s busy I try to direct
my team using their strengths to make sure that they are productive and efficient.”
If sales were down in the store, how would you react to this?
“If I noticed sales had dropped, I would try to work out why this had happened, and
then do my best to engage my team with customers and share ideas to up-sell drinks
or food. I would also try to encourage them to think about how we can improve
sales.”
If a member of your team needs support or training to improve their
performance, how would you react/support this?
“I would first observe any issues, then sit-down with the individual to discuss how we
could improve their performance. I would then try to build a training-plan with
follow-ups to fully support the individual and offer any guidance throughout.”
What management style do you feel is the most effective on overall store
performance?
‘To be honest I would say my own style, democratic, as everyone is always happy and
motivated on my shifts and customers are always satisfied and we do our best to hit
our store performance goals.”

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