Perfect Pizzeria Questions: 1. Critique Perfect Pizzeria in terms of its * Recruitment and Selection Process * Employee Training and Development * Performance Management * Compensation and Reward Strategy 2. In sequence, what are the top 3 interventions that you would suggest that the organization undertakes to improve its state of affairs at the present time? 1. On Recruitment and Selection Process Since the Perfect Pizzeria is located in an area with a few job opportunities, it is advantageous for the company to recruit employees if needed.
With this reality at hand, I can conclude that the company has been lax about their recruitment and selection process. There are no systematic criteria for the selection of managers. It appears therefore that the company has no procedure/guidelines on recruitment and selection of employees. It operates without a plan as to when to hire, where to hire, how to hire, who to recruit and what would be the recruitment message.
It is their advantage that they can choose people who are competent meaning to say people who have the knowledge, skills and attitude that would be fitting for the company because the company is located in the area that there are only few job opportunities. But the company failed to recognize it. Instead it just hires people if the needs arise or those need to be replaced, the result is a high turnover rate of employees. No wonder that the quality of the employees being hired is not satisfactory.
On Employee Training and Development Training is vital for the employees to achieve the levels of knowledge, skills and competence to carry out their work effectively. In this case, the loophole is very evident. The company has no training and development plan for the employees. The manager has no formalized training period and college education is not even a requirement. Furthermore, employees are mostly college and high school students who need more training on the task that they need to perform so that mistakes will be avoided.
There is no developmental plan for the employees. There is no room for advancement beyond management unless the manager decides to invest in the corporation. Let us also consider the attitudes and motivation of the employees because they could also be a great contributory factor to the success or failure of the company. And in this case, the attitudes and motivations of the employees greatly affect the operation of the Perfect Pizzeria as a whole. First, the assistant managers and night managers are not respected.
Second the inability to effectively combat high percentage of waste without strict supervision or the manager sometimes takes the place of the inexperienced employee by working in food preparation which was against franchise regulations. Performance Management The company lacks structure in terms of performance management system for the managers to work through. It has no tools to measure the performance of the manager except for the low percentage of the usage and unsold food which at the same time be the basis of the manager’s bonus.
It provides limited opportunity for management training thus it led to a low effort to performance expectancy as the managers doubted their capability to perform the duties as a manager effectively. Hence, the managers lacked the confidence and knowledge to take initiative in solving certain problem that arose during business operations due to peer pressures. There is a vague organization policies and procedures. Because it appears that it is only be the manager who creates rules or policies or sanctions whereas it should be the company’s work to stipulate and discuss them to the employees.
Well, it is expected because the company has no balanced scorecard to base the objectives, goals, strategy and tools to measure them. Compensation and Rewards Strategy The employees lack motivation because most of them are employed part time and only earned the minimum wage. As a result, the standard employees compensate for low wages by over indulgence of free food allowance, such as pizza, salad and all soft drinks they could drink for every 6 hours of work. There is no incentive to increase motivation at work.
Even the manager only receives a bonus based solely on low percentage of wasted or unsold food so when the percentage is high, he or she will just receive the normal salary. When the manager took a punitive action of restricting the employees on food allowance, the result was a higher damaged or unsold goods margin at the end of the month. It indicates that the less they are allowed to eat, the more they ate and gave away to their friends when the manager was not present so that the manager will also be penalized and not receive a bonus or any incentive as they are. . Organizational Change Considering the problems stated above, the company should revamp its current system in order to enhance the corporate culture. Training and Development The first step that organization should do is to summon all employees starting from the managers down to the part time employees for Training and Development. It is the most urgent way of addressing the problem. As what Queen Elizabeth II of Great Britain said, “It’s all to do with the training; you can do a lot if you’re properly trained. Training by using multiple methods that would befit the needs of the employees so that it would link to the strategic business goals and objectives of the organization—or the culture of the organization. It would require employees to understand the entire work process, expects them to acquire and apply new skills, and share what they have learned. The training would also focus on the strategic and development process to “retaught” or introduce to them the mission, values and goals of the organization so that they would be able to feel that they are part of the success of the organization.
The training should also touch issues on person’s analysis like the attitude and the task analysis on how to work effectively in teams or with each other to contribute to product and service quality and capture and share knowledge. Motivation is vital in the employees’ development and there will be a behavioral change afterwards—change in outlook with regard to the organization and on them selves. Compensation and Reward Strategy Then here comes the compensation and reward strategy. That during the training it should already been announced that part of the revamp is to look into the compensation and reward strategy of the organization.
As it is stated that the Pizzeria is prospering, therefore it should reconsider to raise the salary of all part time employees above minimum so that they would be motivated and would give their best performance to the organization. If in case, the organization cannot increase their salary, the organization can design a compensation or reward system and benefits for the employees. For example, rewards that are non monetary such as gift certificate and coupons or even the establishment of an employee of the month award.
It would boost the morale of the employees and would feel that they are being taken cared of by the organization. Rather than having in mind that they are working merely to survive and for security purposes they are forced to perform only the minimum or what is required of them. Furthermore, it should be noted that any form of incentive pay had advantages and disadvantages because of this the organization should design a mix of pay programs. The aim is to balance the disadvantages of one type of incentive pay with the advantages of another type.
And one way of accomplishing this goal is to design a balanced scorecard—a combination of performance measures directed toward the company’s long and short term goals and used as the basis for awarding incentive pay. Performance Management Then the performance management is to be introduced to the employees as the next step. The organization translates its strategies into performance measures through the balanced scorecard that employees understand and influence. It would start from the company’s goals or the OGSM (Objectives, Goals, Strategies and Measures), cascade down to the department, to the unit and to the individual.
This would determine if the training and development that the employees received are being carried out and is still aligned with the vision and mission of the company. Balanced scorecard has four categories: 1. Financial—how the financial performance improved that is the increase of the net income, earning per share and the return of investments. 2. Customer—to achieve the vision how should the company appear to the customers and taking into consideration the customer satisfaction index, the count of customer complains, and the market share. 3.
Internal Processes—is the company’s key business processes improved in order to deliver more value to customers and stakeholders that entail the average processing time, the detection of unfavorable standard cost variances and the quality cost of the product. 4. Learning and Growth—the ability to change and improve; employee satisfaction index, employee turnover and the training hours per employee. Another aspect that would facilitate the ability to achieve various competencies within the fold can lead to better decision making, and also create a multi-skilled and dynamic force.
All these aspects can lead to appropriate behavior while working and encourages everyone to follow along the lines of teamwork and teambuilding. Common consensus among the team would lead to a unified workforce that creates an atmosphere to achieve the goals of the organization. The performance management system would become the basis for the next giving of compensation, rewards and benefits. Performance management tool should be designed to measure the employees’ output based on the company goals. It must be objective as possible. Communication should not be left out.
It should be encouraged in a form of job feedback that would assist the employees in knowing the requirements of the job and an effective communication process developed in order to facilitate two way feedbacks. This gives the advantage of forming closer working relationship among parties and an avenue for the employees to communicate suggestions on how the organization can be operated more efficiently. Conclusion The Perfect Pizzeria’s top-level management should never forget their Human Resource Management that is being defined as “the part of the management process that specializes in the management of people in work organization.