One of the largest companies dealing in food industries is Domino’s Pizza which had been ruling the food market since its incorporation in the year 1967. The company holds listing in Australian Stock Exchange and proves to be one of the best profit making companies by selling pizzas. The company follows a chain network of franchises and believes in welfare of people more than making profits for the organisation.
The rivalry in food industry had been a constant threat for the organisation and thus becomes necessary on the management’s part to emphasise more on its individual assets like company’s employees (David, 2011). In due reverence, Domino’s had made changes constantly in their strategic management to cope up the issues faced. In this report, the case study of Domino’s will be analysed and evaluated with the help of theoretical models of change. Recommendations for effective and efficient managements will be made in the concluding note that may assist the company’s leaders to follow in Domino’s growth path (Sivakumar, 2015).
The CEO and Managing Director of Domino’s is Don Meij which had helped develop company in positive direction while spreading its franchise globally. He is an experience holder of 25 years in the company and had both entrepreneurial and creative skills through his education in economics and arts. He follows a leadership style which allows growth of Domino’s staff and business.
The franchises selected by Domino’s are based on their belief in company’s policy and if the franchise fails in making profits’, they are blamed for inefficient management. Since the company’s policies were not taken positively by employees in labour and corporate levels, Domino’s faced dilemma. As a result, change model was accepted by Domino’s as it was necessary for the company to sustain the revolutionary observance of online trading and social Medias. Meij also suggested, “the only way a business can deal with challenges is to work out ways of turning a negative into a positive.”
Managing teams
In Domino’s, unhappiness among workers is observed which shows the inefficiencies in the management and their leaders. The employees revealed that the company made major changes in policies without any prior notice and discussions.
As shown in the Figure 1, the basic requirement to achieve strategic management, the managers requires managing teams in global context while improvising information accessible to all team members globally. Integrating work from factory level could also bring in synergies and introduction of cross cultural ideas. Developing practice of meriting talents and skills in the company could attract employees perform well. Managers need to motivate their staffs by sharing vision and mission of the company to build ownership among employees (Caprino, 2013).
Figure 1: Organisational essentials (Sivakumar, 2015)
The underpayment of wages along with illegal sale of sponsorship made employees reluctant to work and left few of them like Del Santo quit the company. The fear among employees to convey their feelings also shows the managerial defects. Although the CEO tried many ways to mix with the company’s staff and introduced several training programs for them, the franchise staffs were not convinced with Domino’s working conditions.
The changes made by company in organisational policies and rules caused resistance among employees which was the key issue faced by the managers of the company. Under the change management theory taken by the company, the employees and franchises had to face various cost cutting strategies and internal managerial in capabilities in managing work place free of abuse and danger. Although the customers are unaware of company’s changes in policies, the employees are affected which caused resistance to change among them.
The store manager Josef Yap claimed that workers are being humiliated and were facing breach in working conditions like working in heated and unhealthy conditions, exploitation in their wages and reducing the actual payroll. The employees and staff were reluctant to speak to the head of department which increased the problems as company’s top management were unaware of issues. Thus the all issues faced by the company made Domino’s conduct internal audit to uncover the fraudulent behaviour and manipulations of store managers.
Improving work performance
The change theory adopted in Domino’s requires to be made after considering basic factors relating human, work performance and quality of product. According to the fourteen principles laid by Edward Deming (shown in Figure 2), it can help the management of the company to address all the necessary factors (Berry, n.d.).
Figure 2: Edward Deming theory (Pawar, 2013)
In Domino’s, improvement of product with creating constancy of purpose and adopting new philosophy can create healthier outcomes of efficiencies in management and teams. The data collected by Domino’s while inspections shall be utilised for better processing controls and not just depend on mass inspection aimlessly. Since price and quality goes parallel anything purchased without quality can drive negative impact on business. Domino’s can introduce methodologies for improvement in continual process of systems. The company can also introduce technological innovations in working areas and production systems of the company (David, 2011). The leadership quality which Meij possess also requires few changes in which he can implement few modern methods of supervision and leadership. Since the employees fear to speak with managers, they must be ensured of protection and job guarantees and thus driving out fears among them. Thus by removing pride of workmanship and eliminating numerical quotas, Meij can provide Domino’s an effective base for successful management.
Improving organisational behaviour
In Domino’s, the need for change requires to follow a strategic change theory like Victor Vroom’s Expectancy Theory to carry out performance in effective manner (Bagga, 2014). As shown in figure 3, the chain which the theory follow could help the managers of Domino’s set objectives in tactful way while motivating the present employees and franchise staffs for future improvement.
Figure 3: Expectancy theory (Warrilow, 2017)
According to Expectancy theory, motivation depends on three fundamentals i.e. force, valence and expectancy. If this theory is applied in Domino’s, individuals or leaders will act according to the requirements of the company for achieving goal. Since alone efforts made by leaders is not sufficient, team management is required while exercising policies with skill and ability. By giving job satisfaction and rewards for efficient performances, Domino’s can derive positivity among staffs. Thus by applying the theory a crucial job design can be created and provide assistance to the leaders of Domino’s.
Managing teams
According to Tuckman model, the performance of the team can be formulated while performing various phases efficiently that includes Forming, Storming, Norming, Performing and Adjourning as shown in figure 4 (Hillary, 2017). In case of Domino’s where manager like Meij is been accused of being disloyal and unreceptive to the problems of staffs of franchises, the problem that has been arrived is due to lack of knowledge about policy formation and conflicts arising due to it. Managers of Domino’s can make agreements with its employees and give them specific roles and work criteria. Also by defining company’s goals can make them feel better while recognising their part in their organisational achievements. Thus the manager can increase employee’s performance by creating an efficient work model of managing the team.
Figure 4: Tuckman theory (Hillary, 2017)
Organisational structure
The change theory adopted in Domino’s was made due to ineffective management and issues in company’s operational systems. The following figure depicts the bureaucratic theory of Max Weber that can assist Domino’s develop efficient structure capable of controlling quality and protocols globally.
Figure 5: Max Weber theory (Kumar, 2012)
Hierarchical structure enables top level managers to control their immediate subordinates and thus gives complete authority to higher levels to execute work consistently to lower levels (LUTZKER, 1982). This principle can allow Meij to assign work to its subordinates in specific manner and can obtain information’s from lower levels following chain system. The principle of organising people according to their specialities and skills can boost Domino’s work performance. Purposely impersonal is also very essential and equality among employees is expected so that each of them is treated equally. Employees with better knowledge and qualifications shall be hired by Domino’s and not by personal contacts or recommendations.
Motivating employees
Figure 6: Fredrick Herzberg two factor theory (Kumar, 2016)
Herzberg’s two factor theory of motivation (figure 6) involves managers to give stress on assuring adequate hygiene factors to evade dissatisfaction among employees. By giving rewards and work stimulation the employees can gain motivation to perform better. By utilising employee’s skills and competencies, the work performance of Domino’s can get enhanced. Thus focussing on motivational factors can progress work superiority in the company.
Figure 7: Maslow Theory (Hassan, n.d.)
According to Maslow’s theory a good organisation will always think about needs of employees and while considering and implementing Maslow’s theory in Domino’s, organisational culture with satisfied employees can be generated (O.Venugopalan, 2007). The theory can help in motivating workers by meeting with their requirements as they move up in each level of hierarchy shown in figure 7. Since Domino’s face issues relating job security and exploitation in wages, the levels of Maslow’s theory will eliminate all their problems as in each level issues relating physical, self esteem, self fulfilment, social and security is solved. Thus by adopting Maslow’s cultural model, Domino’s can enhance its organisational structure.
Conclusion
After making analysis of Domino’s case study, few recommendations suggested can help the manager’s in assisting future growth path. Since the company is adopting change for the third time, it means that there had been problems in Domino’s management system and getting insufficient information every time. The company requires analysing precisely and making cross table discussions with its franchises separately while following above recommended theories. While evaluating Del Santo’s case it can be seen that the workers are afraid to talk to top level and thus managers requires making lenient policies where each employees are suggested to articulate issues faced by them and if any exploitation is carried, it should be exposed immediately. Thus all the above studies and applied theory provides an explanation of the priority issues and problems that needs to be managed by management of Domino’s.
References
Bagga, P.P.a.S., 2014. Victor Vroom’s Expectancy Theory of Motivation – An Evaluation. [Online] Available at: https://irjbm.org/irjbm2013/Sep2014/Paper1.pdf [Accessed 07 September 2017].
Berry, B., n.d. There is a Relationship Between Systems Thinking and W. Edwards Deming’s. [Online] Available at: https://www.berrywood.com/wp-content/uploads/2011/08/demingpaper.pdf [Accessed 07 September 2017].
Caprino, K., 2013. 6 Essential Ways To Build A Positive Organization. [Online] Available at: https://www.forbes.com/sites/kathycaprino/2013/12/13/6-essential-ways-to-build-a-positive-organization/#292ae3eb610f [Accessed 07 September 2017].
David, F.R., 2011. Strategic Management CONCEPTS AND CASES. [Online] (Thirteenth edition) Available at: https://dspace.elib.ntt.edu.vn/dspace/bitstream/123456789/7604/1/Fred%20R.%20David-Strategic%20Management,%2013th%20Edition%20%20%20%20-Prentice%20Hall%20(2010).pdf [Accessed 07 September 2017].
Hassan, W., n.d. Management Process. [Online] Available at: https://in.pinterest.com/pin/507710557971822425/ [Accessed 07 September 2017].
Hillary, M., 2017. Team Work: Tuckmans Way. [Online] Available at: https://margarethillary.com/team-work/ [Accessed 07 September 2017].
Kumar, R., 2012. Chapter two perspectives in management complete. [Online] Available at: https://www.slideshare.net/rollernischal/chapter-two-perspectives-in-management-complete [Accessed 07 September 2017].
Kumar, A., 2016. Frederick Herzberg’s two-factor theory. [Online] Available at: https://www.linkedin.com/pulse/frederick-herzbergs-two-factor-theory-ahmed-kamar [Accessed 7 September 2017].
LUTZKER, M.A., 1982. Max Weber and the Analysis of Modern Bureaucratic Organization: Notes Toward a Theory of Appraisal. [Online] Available at: https://www.americanarchivist.org/doi/pdf/10.17723/aarc.45.2.n05v8735408776qh?code=same-site [Accessed 07 September 2017].
O.Venugopalan, 2007. MASLOW’S NEED HIERARCHY THEORY. [Online] Available at: https://shodhganga.inflibnet.ac.in/bitstream/10603/21361/11/11_%20chapter%203.pdf [Accessed 07 September 2017].
Pawar, J., 2013. Deming’s 14 principles for tqm. [Online] Available at: https://www.slideshare.net/abhijitpawar9406/demings-14-principles-for-tqm [Accessed 07 September 2017].
Sivakumar, I., 2015. Align strategic HR to Business plan. [Online] Available at: https://www.slideshare.net/idimadakalasivakumar1/align-strategic-hr-to-business-plan [Accessed 07 September 2017].
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