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    Case Study OB - Domino's Pizza (Job Satisfaction)

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    meishka
    Domino's Pizza was facing high employee turnover rates, especially among store managers who were leaving every 3-6 months, undercutting service and increasing costs. To address this, Domino's implemented programs to recruit and train higher quality store managers, equip them with better IT and operational tools, and incentivize them through stock options and rewards to improve retention and the work environment for all employees. These efforts led to a significant decline in Domino's turnover rate to under 107%, lowering costs and improving service.

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    Case Study OB - Domino's Pizza (Job Satisfaction)

    Uploaded by

    meishka
    16K views33 pages
    Domino's Pizza was facing high employee turnover rates, especially among store managers who were leaving every 3-6 months, undercutting service and increasing costs. To address this, Domino's implemented programs to recruit and train higher quality store managers, equip them with better IT and operational tools, and incentivize them through stock options and rewards to improve retention and the work environment for all employees. These efforts led to a significant decline in Domino's turnover rate to under 107%, lowering costs and improving service.

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    Domino's Pizza was facing high employee turnover rates, especially among store managers who were leaving every 3-6 months, undercutting service and increasing costs. To address this, Domino's implemented programs to recruit and train higher quality store managers, equip them with better IT and operational tools, and incentivize them through stock options and rewards to improve retention and the work environment for all employees. These efforts led to a significant decline in Domino's turnover rate to under 107%, lowering costs and improving service.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    16K views33 pages

    Case Study OB - Domino's Pizza (Job Satisfaction)

    Uploaded by

    meishka
    Domino's Pizza was facing high employee turnover rates, especially among store managers who were leaving every 3-6 months, undercutting service and increasing costs. To address this, Domino's implemented programs to recruit and train higher quality store managers, equip them with better IT and operational tools, and incentivize them through stock options and rewards to improve retention and the work environment for all employees. These efforts led to a significant decline in Domino's turnover rate to under 107%, lowering costs and improving service.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    Domino's Pizza faces high employee turnover rates, especially among store managers. The main causes seem to be low pay and lack of proper leadership. Domino's addresses this by improving recruitment, training, and providing incentives for store managers.

    Domino's faces a high employee turnover rate, especially among store managers who leave every 3-6 months. Lower level employees also have a turnover rate of 300%. The main issue seems to be high turnover of store managers.

    Domino's handles the problem of high turnover by recruiting better store managers, improving employee skills through training, providing facilities to track performance, offering better financial incentives and improvement training.

    Meishkafadiah Alkaff

    Mohammad Fardani Dzulhikam


    Sandy Renaldy
    Permada Wirapranata
    • Type :Public (NYSE: DPZ)
    • Founded :1960
    • Headquarters Ann Arbor, Michigan
    • Key people : Tom Monaghan,
    Founder
    David Brandon, Chairman & CEO
    Industry Restaurants
    • Products Pizza  · sandwiches  ·
    pasta  · chicken wings · desserts
    • Revenue ▲ $1.462 billion USD
    (2007)
    • Employees 145,000
    • Website www.dominos.com
    • Low Pay
    • Part Time
    • Closely Supervised
    • “High Turnover”
    • In the case of Domino’s Pizza
    – Multitasking
    • Main Problems
    – Domino’s is Facing employee high
    employee turn over rate
    • Store Manager leave every 3 – 6 months
    • Lower level employee turnover rate 300 %
    – Company Policies avoid increasing basic
    wage
    • How they Handle the Problems
    – Recruit better store manager by
    implementing new test
    – Improving employee skills by training the
    weak points
    • How they Handle the Problems (Cont.)
    – Providing facilities for store to see
    their records
    – Better financial incentive
    – Better improvement training
    • Why is Domino’s Facing High
    Turnover Rate ?
    • What is the Impact of high
    turnover rate to Domino’s
    • Is it really effective not to increase
    the basic wage oppositely like
    starbucks does?
    • What is really needed to reduce
    employee turnover rate?
    • Compatibility with they work reviewed
    from their basic education, interest,
    experience, compensation and any
    others.
    • The Amount of salary and fringe benefits
    with any others benefit (career, training
    & management development)
    • Relationship between human either
    vertical and horizontal (superior
    treatment and relationship with
    subordinate and colleagues).
    • Low Pay (obvious)
    • Lack of relationship between boss
    and worker.
    • Mean colleague + boring days
    • Lack of leadership element (note
    that store manager leave ever 3-6
    months)
    • Main Problems is : “Store
    Manager”
    • Opportunitis to get employee who’s have better
    experience and ability
    • Company can employ new employee who’s got
    new idea’s yang memiliki ide-ide baru which can
    create inovation in exist governace work
    • Can decrease the average of employee work
    period which can reduce the cost of salary that
    must be paid.
    • Can give a chance to talented and high
    performance.
    • If the employee who’s quit the job has a poor
    performance or employee of a gadfly for the same
    team working in the organization
    • Employee Repo cost
    • Learning cost
    • What they out for worker are more less than
    they get from new worker.
    • Level accident new employees, usually tend
    to be higher
    • There is a production that has lost during
    turnover
    • Production equipment that cannot full
    operate
    • A lot of waste because of the new employees
    Impact On Domino’s

    • It’s cost money to recruit, hire, and


    train people, and undercuts service
    when inexperienced employees
    don’t work as efficiently
    • The Financial Cost is estimated as :

    – $20.000 for each store manager leave


    – $2.500 for each hourly worker leave
    • Distinct characteristic of fast food
    business were, high dependable on
    low-paid workers. Small problem
    could trigger worker to seek
    another job in another company.
    • Some company using approach of
    giving high initial salary.
    • Domino using different approach,
    where they didn’t raise salary
    • They believe working environment
    and quality of store manager play
    important role in turnover rate
    • They believe when store manager
    position turnover is high, it will has
    ripple effect to the layer below
    • So they try to focus on recruit high
    quality store managers
    • Domino’s is selectively hiring store
    managers, train them, and
    motivating them with rewards
    • They coach and demand store
    managers to create better working
    environment
    – Recruit Better Store Manager
    – Give Store Manager Better Tools
    – More Meaningfully Incentify Store
    manager
    • The Role of a Store Manager :
    • better working environment
    • To motivate other workers or
    subordinate
    • Increase job involvement among
    workers
    • The Role of a Store Manager :
    • To create better working environment
    • To motivate other workers or
    subordinate
    • To Increase job involvement among
    workers
    • Dimension
    • 1. Extraversion : Outgoing, talkative,
    sociable, assertive
    • 2. Agreeableness : Trusting, good‐
    natured, cooperative, softhearted
    • 3. Emotional Stability : Dependable,
    responsible, achievement oriented,
    persistent
    • 4. Emotional : Stability Relaxed,
    secure, unworried
    • 5. Openness to Experience :
    Intellectual, imaginative, curious,
    broad‐minded
    • Recruitment
    – Managerial and Financial Skill is
    needed
    – People Management
    • Development
    – To enhance managers weakness
    which assessed during recruiting
    process
    – Continuous Development guided by
    franchise owner or headquarters
    Supporting Tools for
    Manager
    • Managers need to be equipped and
    weaponized with better tools to provide
    easier managerial handling on their
    subordinate
    • The weapon include :
    – Better IT system
    – Better FAQ system
    – Better managerial control system
    – Better business process/operational
    efficiency
    Supporting Tools for
    Manager
    • Computerized Tracking System
    • FAQ Management
    • Domino’s Pulse System
    • Domino’s Next Generation Store
    System
    • New Domino Next Generation Store
    System developed by Microsoft
    Key Benefit of The system
    • Total cost of ownership. The solution is
    designed to lower the total cost of
    ownership by delivering superior price
    performance and reducing administration
    cost
    • Lower Risks. The solution is designed to
    help address industry mandates and avoid
    unnecessary risk and related costs
    • Security. The solution is designed to
    minimize risks, Microsoft is optimizing and
    better securing solutions that reduce
    complexity while supporting rigorous
    service levels. The solution also monitors
    fraudulent activity
    Sustainable Incentive
    Programs
    • formal scheme used to promote or
    encourage specific actions or behavior
    by worker.
    • The scientific literature also refers to
    this concept as Pay for Performance.
    • Domino’s is using the concept of
    sustainable incentive to improve
    worker’s job involvement
    Incentive program
    Type of Incentive :
    – Employee Incentive
    – Consumer Incentive
    – Dealer / Channel Incentive
    – Sales Incentive

    Type of Reward :
    – Cash Reward
    – Non Cash Reward
    – Non Monetary Reward
    Rewards for Managers &
    Employee
    • Employee Stock Option Plans
    Company introduced program that grants
    stock options to about 15% of store managers
    based on criteria such as sales growth and
    customer services
    • Suggestion Rewards :
    – A simple ‘Thank You’ appreciation of good work
    – Treat your employee with respects
    – Start birthday program
    – Have employee field trips
    – Casual lunch with staff
    • The result is significant: employee
    turnover rate declined to 107%.
    • Far below previous, and average
    industry
    • In case you
    haven’t figure it
    out : IT IS
    GROWING
    Framework

    • How they handle the problems


    – Recruit Better Store Manager
    • Explain the importance of store manager
    • Role model of store managers
    – Give Store Manager Better Tools
    • What effective tools
    • How can the Tools Help
    – More Meaningfully Incentify Store
    manager
    • Stock Option etc.

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