At Perfect Pizzeria in Southville, Illinois, the working culture is by far not perfect! It is an environment that lacks company dedication, effective management, and individual motivation. Although the company is the second-largest franchise of its chain and is flourishing, it appears that the rewards are not beneficial to the employees but only to the company.
The current system is such that each franchise is equipped with a manager who works under area supervision and is the only full time salaried employee, an assistant manager, a few night managers and roughly 18-20 other non-managerial employees all of whom work part-time with a minimum wage pay. Within this set the managers are relatively young and the non managerial employees are mostly college and high school students.
The problems that currently exist at Perfect Pizzeria are:
1) Managerial conditions:
a. No systematic criteria for the selection of managers
b. No formal training program for managers
c. No room for advancement beyond management unless the manager decides to invest in the corporation
d. The manager receives a bonus based on low percentage of wasted or unsold food
e. Assistant managers and night managers are not respected
f. Inability to effectively combat high percentage of waste without strict supervision or working in food preparation which was against company policy.
2) Employee conditions:
a. Lack of motivation
b. Compensate for low wages by over indulgence of free food allowance
c. High turnover rate due to availability of high application rates.
d. Employees are mostly college and high school students
e. Lack of respect for managers.
f. No incentive to increase motivation.
Organization Change:
Considering the problems stated above, Perfect Pizzeria should revamp its current system in order to enhance the corporate culture. First and foremost there is the utmost need for an official company documentation which outlines a Systematic Criteria of the company objectives starting with the need for a well developed hiring criteria, effective management, productive employees and bonus and rewards.
In Relation to improving the Hiring Criteria, Perfect Pizzeria must have a clearly defined and documented process of Recruiting, Hiring, Orientation, and Retention.
Recruiting: This process should explicitly state what the company is looking for (Company Objectives); a job analysis to identify potential candidates, key responsibilities, skills, knowledge, attitude and abilities needed for success.
Hiring: Establish a system in order to thoroughly review potential candidates. Perhaps starting with Phone Interview, next an interview with an Area Supervisor as well as Managers, then compare assessment.
Orientation: A formal session to cover Corporate Culture, Overview of daily tasks, a tour of facility, introduction to current employees, briefing on expected production.
Retention: Create a pleasant work environment that promotes productivity, teamwork and rewards employees with bonuses
It is imperative to develop a formal training program whereby all employees are expected to complete a series of steps to ensure competence of the company goals, operations and policies. I would suggest a program such as Perfect Pizzeria University with a curriculum such as PP Management & Leadership Course for the managers and one entitled PP Employee General Education course. The PP Management & Leadership course will focus on training managers in the art of Mastering Management defined by Perfect Pizzeria base on the Six Points of Human Capital; Psychological Capital, Management Capital, Strategic Capital, Relationship Capital, Industry Capital and Organization Capital (Organizational Behavior, Chapter 5, P. 120, Schermerhorn, Hunt et al 11th edition) This will improve professional and communication development as well as motivation and skills needed to be an effective manager. The PP Employee General Education course will provide operational procedures, management expectations and the basic concepts needed to be successful.
Perfect Pizzeria should invest in its most valuable assets, that which is the employees in order to avoid high turnover rates (which increase cost in the long run) and improve productivity and emotional labor. To keep employees motivated, create an Employee Reward and Bonus program such as Employee of the Week or Month whereby individuals will receive recognition via company newsletter and a plaque in addition to a cash bonus. This will ensure that the manager is not the lone recipient of bonuses and it will motivate employees to work harder. To foster better communication between manager and employees the Goal-Setting Theory of Motivation should be implemented. (Organizational Behavior, Ch. 5 p. 121-123, Shermerhorn, Hunt, et al. 11th Edition). The MBO process of this theory involves joint goal setting between managers and those who report to them. This will increase employees need for achievement and affiliation and also establish a form of communication and cooperation.
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