Management Case Study

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Domino's Case Study

The case study to be discussed focuses on one of the most painful human resources issues, and that is employee turnover and the way it manifests at Domino's Pizza. The company's turnover rate reached 158% in 1999. In the food industry, this turnover rate is not unusual, as turnover of 200% rate has been registered by other companies in this field. However, a complex set of measures needed to be taken. As a consequence, Domino's CEO started to focus on the company's human resources, by implementing certain strategies, like: improving store managers' workplace quality, improving personnel selection, recruitment, and retention methods, or using financial incentives. The result of these strategies was a decreased turnover rate that reached 107%. The SWOT analysis has revealed the following: Strengths: good market position, good geographical coverage; Weaknesses: increased employee turnover, lack of human resources strategies, incorrect dividing of task among the company's employees; Threats: strong competition, low employee retention rate; Opportunities: competitors facing the same problems with their employees, but handling them in a more defective manner, implementing new strategies regarding personnel and company culture.

2. The main problem identified in this case study is bad culture, or defective human resources management. This led to increased employee turnover, which also caused many other negative issues.

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3. The problem stated above is consisted of several negative aspects. The most important of them is the fact that store managers were not selected and tested properly. In addition to this, store managers were not receiving any help in tracking their best and worst performers, their work was not eased through computerized systems, they did not benefit from training programs that would have helped them to improve their work at that time and to, therefore, contribute to the company's success.

TOPIC: Case Study on Case Study Management Assignment

Another factor that can be considered responsible for the problems regarding the increased employee turnover is the lack of adequate personnel strategies. It seems that human resources management has been defective at Domino's, personnel's importance has not been taken enough into consideration, and the human resources strategy has not been aligned with he company's general strategy, since "human resources management alignment means to integrate decisions about people with decisions about the results an organization is trying to obtain" (U.S. OPM, 1999).

4. There are several strategies that could lead to an increased employee retention rate. For example, Starbucks is fighting the employee turnover issue by increasing wages, by focusing on improving its managers' work, and by trying to improve the work environment. Domino's is focusing less on increasing wages, and more on improving the quality of store managers' work, on the human resource in general, on improving the quality of the company's franchises, or on implementing financial incentives, like stock investments.

Some specialists in the human resources field consider that the most important aspect that increases and maintain employee retention is the quality of the supervision that employees receive (Heathfield, 2007). This employee retention strategy is all about clarity between the employee and its supervisor regarding what is expected from the employee and regarding the general direction that the company is supposed to be following. An important part of this strategy is the feedback that is required from the employee.

As mentioned above, the company's employees must be aligned with the company's general direction by integrating personnel values with the company's mission and vision. This strategy will determine a series of positive changes regarding company culture that will have a significantly positive impact on the company's future success.

Another strategy whose implementation has already started at Domino's is providing training for management skills for every store manager. This strategy will prove to have positive impacts on all the parties involved: the company as a whole,… [END OF PREVIEW] . . . READ MORE

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https://www.essaytown.com/subjects/paper/case-study-management/3594333.