Abstract: This paper will examine the high employee turnover rate in Domino’s Pizza. Employee turnover attributes to bad culture and defective human resources management within the company. Yet, this paper proposes strategies that could lead to an increased in employee retention rate, recommends to aid the high turnover, and employee supervision strategies combined with other strategies regarding financial incentives. This paper also provides recommends, such as, proper planning, enforcement of regulations and appropriate training, to create a workplace that suits all its employees.
This paper accepts that Motivations are the very reasons behind people’s thoughts and behaviors and that motivation is an influence that accounts for an individual’s direction, intensity, and persistence of effort toward attaining a goal. Motivation is the willingness to exert high levels of effort to organizational goals, conditioned by the effort’s ability to satisfy some individual need. This need is the internal state that makes certain outcomes appear attractive.
Motivation is an influence that accounts for an individual’s direction, intensity, and persistence of effort toward attaining a goal (Robbins p. 175). Domino’s Pizza has always looked for new ways to reward their team members. For instance, Domino’s entertains its workers with a franchise-wide pep rally that is held once a year. Domino’s began the “World’s Fastest Pizza Maker” competition in 1982, honoring those who best exemplify the company’s philosophy of keeping efficiency in the store; to allow sufficient time for safe delivery of the products to the consumer.
Regional competitions are held across the world to determine the competitors with the fastest times. Domino’s Pizza gives the winner $10,000 cash to whoever obtains the fastest time. Shopping sprees, vacation trips, and even cars are also rewarded at this event. Yet, Domino’s pizza recognizes the best way to achieve success is to first ensure the satisfaction of its team members. Treating team members exceptionally well is just one way they is committed to putting Domino’s people first. Domino’s is proud to provide a fair and comprehensive rewards package (dominos. com).
Benefits which includes: Competitive salaries, Medical, dental and vision coverage, Health Spending Account, Prescription Drug Benefit, Team Achievement Dividend (performance bonus), Partners Foundation (team member assistance) ,Above-average paid holiday program, 401(k) Matching Program, Employee stock purchase discount plan, Company-paid life insurance, Tuition reimbursement, National corporate discounts, Legal services, lastly Adoption assistance. On the contrary, with all that Domino’s Pizza provides to their “team member” this year employee turnover was 260%.
Even though, in modern society, motivation is still considered a contentious issue within management circles and within companies. It is believed that successful companies have employees who are motivated and believe in the mission. Even though, some theorists like Herzberg believe that money is not a positive motivator, a lack of it can de-motivate. I believe pay systems are designed to motivate employees. Financial rewards are regarded as a key factor in workplace motivation; however, additional factors such as work appreciation, variety, and security remain just as important.
These factors can best be described as work outcomes which are a result of employee inputs. Adams’ equity theory identifies both inputs and outcomes as the two primary components in the employee-employer exchange (Kinicki & Kreitner 2007, p. 242). However, it is important to remember that pay is only one element of motivation and will work best where management gives attention to developing good management and supervision, designing jobs, and organizing work groups to make jobs satisfying.
Providing feedback to staff about their performance along with training and development makes effective arrangements for communications and consultation within the company. All the same, Domino’s Pizza has faced a very high employee turnover rate of 200% this year. The company’s turnover rate reached 199. 9% in 2009. In the food industry, this turnover rate is not unusual, as turnover of 200% rate has been registered by other companies in this field.
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. However, the key factor in retaining employees is to ensure that there is substantial scope for job enrichment. Since individuals differ in their motivation drive, there is not right or wrong method that will enforce a productive workforce.
An individual will consider that he or she is treated fairly if he or she perceives the ratio of his or her inputs to his or her outcomes to be equivalent to those around him or her. The equity theory of motivation is based on the fact that people are motivated first to achieve and then to maintain a sense of equity (wikipedia. org). Equity refers to the allocation of rewards in direct parity to the contribution of each employee to the organization. Within Domino’s, each employee perceives their contribution in differing levels.
For example, pizza-makers and telephone operators provide similar inputs as delivery drivers; however, the delivery drivers receive less financial reward creating inequity. Mcshane and Travaglione (2007, p. 154) suggest that employees will experience an emotional tension when they perceive inequities, and, when sufficiently strong, the tension motivates them to reduce the inequities. There are numerous methods that an employee can employ to correct inequity feelings. These include reducing inputs, increasing outcomes, changing perceptions, or changing the comparison other.
Ultimately, if these methods do not obtain the desired outcomes, an employee will become de-motivated and may quit their occupation (Mcshane and Travaglione p. 154). An organization’s employee turnover does not solely depend on the input-to-output ratio alone – it also depends on the comparison between the input-to output ratios of employees fulfilling a similar position, Chapman (2007). An explanation of employee inputs and outputs will be used to identify the perceived equity or inequity of an employee within Domino’s. This will provide a better understanding of how Adams’ theory affects employee turnover.
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