CASE STUDY ANALYSIS: GIOVANNI’S PIZZERIA Essay Example

  • Category:
    Management
  • Document type:
    Case Study
  • Level:
    Undergraduate
  • Page:
    3
  • Words:
    1862

Table of Contents

Executive Summary……………..….……………………………………………………………3

  1. Problem Identification & Analysis……………………………………………………………………………..4
  1. Lack of Effective Employee Selection and Hiring Policies………………………………………4
  2. Lack of Proper and Formalised Training………………………………………………………………4
  3. Inadequate Remuneration Employee Package Policies………………………………..5
  4. Poor Employee-Management Relations………………………………………………..5
  1. Statement of Major Problems……………………………………………………………………………………6
  2. Generation and Evaluation of a Range of Alternative Solutions…………………………6
  1. Lack Of Effective Employee Selection And Hiring Policies…………………………………….6
  2. Poor Employee-Management Relations…………………………………………………………………7
  1. Recommendations……………………………………………………………………………7
  2. Implementation………………………………………………………………………………8

References List………………………………………………………………………………….10

Executive Summary

Giovanni Pizza is experiencing a significant number of issues that arise out of poor employee-management relations, a lack of proper formalised training, and inadequate remuneration packages. The current situation has resulted to poor work performance as most employees have resorted to unprofessionalism while conducting day-to-day operations like wastage of inventories like sauce and even assisting themselves with food and salad whenever there is no mode of supervision. Some employees have also resorted to unprofessionalism as they are not comfortable with the current remuneration package that is offered to the store managers. For instance, while the night-managers are paid bonuses in case of reduced wastage rate, the employees, who are in fact aware of this, resort to self-pay mechanisms that result to loss to the firm. There is also poor employee-management due to poor communication strategies as well as inefficient policies that will otherwise help position the company in a competitive advantage.

The report finds that the organisation should ensure to adopt an effective communication platform and also develop HR department in order to tackle the major problems at hand: poor employee-management and a lack of effective employee selection and hiring policies.

  1. Problem Identification & Analysis
  1. Lack of Effective Employee Selection and Hiring Policies

It is noted that all stores do not have a systematic criteria necessary for selecting and hiring store managers or even their assistants. In fact, it is noted that no university level of education is required to fill these positions thus most of these managers are young and inexperienced with only one of them having attained tertiary education level. Notably, given the lack of a formal system for night and assistant mangers created a conflict especially because these two personnel were selected and hired depending with their abilities to conduct duties of a regular employee, which lead to employee conflicts as most of those promoted were store mangers’ friends and relatives. Gusdorf (2008) notes that organisations should consider effective alternatives to recruiting like outsourcing or even adopting a contingent labor model as opposed to hiring regular employees to lead others at any given moment in time. In relation to nepotism, which arises when there is hiring of relatives to high positions, (Gusdorf,2008) ascertains that the managers should become wary of possible civil rights violations given that in many of the States, it is illegal to discriminate in hiring based an individual’s relations status.

  1. Lack of Proper and Formalised Training

The store chain does not have a proper and formal level of training that is deemed necessary for all store managers. Subsequently, the existing employees are mostly university students that are yet to graduate as well as high students that are tasked with the less challenging jobs. Given this scenario, it can be noted that the store’s day-to-day operations is being conducted by personnel that do not enjoy any form of training in the food and beverage sector. Wscott (2011, p.10) argues that proper employee training does not only improve on employee’s acquisition of even newer skills but also it is a cost-effective model since it is a direct form of investment to the existing workforce. It pays off with improved productivity as well as fosters employee efficiencies. Consequently, it offers a remedy for employee retention and promotions-from- within in comparison to the extra effort that is made in searching and having to retrain newly recruited personnel (Wscott, 2011).

  1. Inadequate Remuneration Employee Package Policies

At the present, the store is only remunerating night-managers with bonuses in the case of lower wastage during the months’ operations. The policies does not sit well with the junior employees as they are compelled to engage in dubious ways like helping themselves with food and salads whenever there is no supervision, in order to improve on their pay-packets. It is significantly clear that junior employees are not in any way happy with this one-sided reward program and thus, the rate of sauce spillage or even faulty pizzas being made has also increased as well. According to Nelson (2002, p.2) the ability of an organisation to increase on its bonus and incentive schemes will help improve on company performances as well as staff motivation. In fact, as result of better bonus schemes, comes about an enormous benefit of improving employee attitudes towards the task at hand as well as the possibility of decreasing the existing level of staff turnover rates (Nelson, 2002).

  1. Poor Employee-Management Relations

This is especially noted with the manner for which employees-night managers relate in the course of the night shift. It is indicated that although these managers are able to control operations during these shifts, they do not get any respect from the junior staff probably because they are paid on a same rate, they being younger in age and, also due to the fact that they are not able to reprimand other employees. Tritch (2003, p.4-5) notes that the ability of a manager to understand their junior staff triggers high level of performance and level of professionalism. It is argued that the employees will feel motivated with the way managers treat them hence a positive attitude from managers guarantees improved efficiency and work performance. In consequence, the elimination of the staff entitlements by Marcello resulted to a distinctive separation between the management and employees that had initially started-out as a tight group. Refusal to treat experienced workers with the respect they desired lead to resentfulness amongst them and as a result, it led to employee dismals and refusal to operate unpopular shifts and an eventual resignation of the experienced workforce; Marisa.

2.0 Statement of Major Problems

The report case will certainly try to solve two major problems that include; the current poor employee-management relations as well as a lack of effective employee selection and hiring policies. The current poor employee-management relations has seen a significant drop in work performance, employee dismissals and high turnover rates especially amongst the experienced workforce resulting to a costly business operations. Consequently, the lack of a proper and effective selection and hiring process has resulted to employees lacking the required work skills like professionalism hence resulted to a costly affair that emanates from a need for tight supervisions lest these employees engage in mass wastage of inventories that becomes costly to operations.

  1. Generation and Evaluation of a Range of Alternative Solutions
  1. Lack Of Effective Employee Selection And Hiring Policies

Solutions:

  1. Giovanni Pizza can go ahead and embrace a labour outsourcing platform so that it can be assisted in selecting and hiring new and qualified managers that understand the dynamics of operating these fast food stores. The exercise will be effective since only qualified and experienced personnel will be selected and hired.
  2. The store might choose to put up a functional human resource department that will be tasked with the responsibilities of hiring, promoting and selecting new personnel. The benefit of having a centralised human resource department rests with the fact that all store needs are put into consideration and personnel needs tailored to meet specific needs.
  1. Poor Employee-Management Relations

Solutions:

  1. The store can go ahead and create a workable communication platform so that employees might be allowed to state their grievances in regards to those operations and policies that affect their ability to work effectively. These communication platforms should be devised in ways that cannot allow for victimisation of employees.
  2. Another fundamental way that the problem can be solved is through allowing the employees to form a union as a form of representation. This way, they will be able to notify the management of their respective grievances in advance so that possible remedies might be implemented.
  1. Recommendations

For the first problem at hand; that is, lack of effective employee selection and hiring policies, the best form of solution will be to set up a functional human resource department that will be centrally-positioned to tackle the specific needs of each store in place. Ionuţ, Pandelica, and Negulescu (2008, p.466) ascertains the formulation of a proper HR department assists an organisation with the growth and development of competent workforce especially for important positions within a firm in order to increase their competitiveness levels. An effective HR department is also considered a good initiative because it helps to match the skills required within a given moment and the level of performance necessitated hence providing a positive operational environment for conducting business with qualified staff.

In regards to the problem related to poor employee-management relations, then the best alternative will be to foster effective communication platforms that will seek to tackle any possible grievances that might arise within any given moment in time. Internal interaction and communication between organisational managers and its employees is deemed to be a social interaction that portrays management capacity to develop on relationships between internal stakeholders at all levels working within the organisation. Communication especially coming from the management is a form of illumination that links the different pieces of information and, also provides an effective data that employees needs to perform their jobs without any form of hindrance or even conflicts (Mishra, Boynton, & Mishra, 2014).

  1. Implementation
WHEN, WHERE
Explain to the managers the importance of formulating HR department.

Ascertain to the CEO the fundamental performance indicators like Qualified staff, trained personnel etc

15th January 2016

Glen Waverley, Victoria Office

CEO to arrange a meeting with all state managers in order to expound on the way forward regarding the need for developing a centralised HR department where all activities related to human resource planning will be conducted. -recruitment costs especially in coming with qualified and efficient HR resource

— set up costs

Store Managers -expound to them on the need for coming with different communication platforms while making sure to evaluate the importance of these platforms.

-review the necessity of coming up with immediate feedback mechanisms that prompt fast review of operations.

1st January 2016

Glen Waverley, Victoria Office

CEO will be required to arrange for a meeting with all store managers and advice them on the need of coming up with distinctive communication platform that well suits their specific store needs -Set-up costs

References List

Gusdorf, ML.2008. Recruitment and selection: Hiring the right person. SHRM. Retrieved on December 26, 2015 from http://www.shrm.org/education/hreducation/documents/recruitment%20and%20selection%20im.pdf

Ionuţ, P, Pandelica, A, & Negulescu, C 2008, ‘THE PERFORMANCE OF HUMAN RESOURCES DEPARTMENT — THE PREMISE OF ORGANIZATION’S SUCCESS’, Annals of the University of Oradea, Economic Science Series, vol. 17, no. 4, pp. 464-468

Mishra, K, Boynton, L, & Mishra, A 2014, ‘Driving Employee Engagement: The Expanded Role of Internal Communications’, Journal of Business Communication, vol. 51, no. 2, pp. 183-202

Nelson, P 2002, ‘Staff performance raised by good bonus packages’, Personnel Today, p. 2.

Tritch, T 2003, ‘Engagement Drives Results at New Century’, Gallup Management Journal Online, pp. 1-6.

Wscott, F 2011, ‘The Importance of Training’, Journal of Housing & Community Development, vol. 68, no. 3, p. 10