Questions of the case study: (This case is belong to Ornizational behaviour cour
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Question
Questions of the case study: (This case is belong to Ornizational behaviour course for MBA)
1. Summarize the case. (It has to be 100 words)
2. Identify the OB.
3. Give me three possible solutions.
4. Evaluate the solutions.
5. Select the best solution.
Case 11: PERFECT PIZZERIA John E. Dittrich and Robert A. Zawacki Perfect Pizzeria in Southville, deep in southern Ilinois, bonus. If the percentage is high, the manager does is the chain's second-largest franchise. The headquar not receive a bonus; rather, he or she receives only ters is located in Phoenix, Arizona. Although the busi- his or her normal salary ness is prospering, it has employee and managerial There are many ways in which the percentage can fluctuate. Because the manager cannot be in the Each operation has one manager, an assistant store 24 hours a day, some employees make up for manager, and from two to five night managers. The their paychecks by helping themselves to the food. managers of each pizzeria work under an area super When a friend comes in to order a pizza, extra in visor. There are no systematic criteria for being a gredients are put on the friend's pizza. Occasional manager or becoming a manager trainee. The fran- nibbles by 18 to 20 employees throughout the day at chise has no formalized training period for the man the meal table also raise the percentage figure. An ager. No college education is required. The managers occasional bucket of sauce may be spilled or a pizza for whom the case observer worked during a four accidentally burned. Sometimes the year period were relatively and only one had completed college. They came In the event of an employee mistake or a burned from the ranks of night managers, assistant manag pizza by the oven person, the expense is supposed ers, or both. The night managers were chosen for to come from the individual. Because of peer pres- their ability to perform the duties of the regular em- sure, the night manager seldom writes up a bill for ployees. The assistant managers worked a two-hour the erring employee. Instead, the establishment shift during the luncheon period five days a week to takes the loss, and the error goes unnoticed until the gain knowledge about bookkeeping and manage- end of the month when the inventory is taken. That's ment. Those becoming managers remained at that when the manager finds out that the percentage is level unless they expressed interest in investing in high and that there will be no bonus. the business. young (ages 24 to 27), may be made In the present instance, the manager took retalia- The employees were mostly college students, with a few high school students performing the less challenging jobs. Because Perfect Pizzeria was lo- cated in an area with few job opportunities, it was relatively easy for it to fill its employee quotas. All the employees, with the exception of the manager, were employed part-time. Consequently, they earned tory measures. Previously, each employee was enti tled to a free pizza, salad, and all the soft drinks he or she could drink for every six hours of work. The manager raised this figure from six to twelve hours of work. However, the employees had received these six-hour benefits for a long time. Therefore, they simply took advantage of the situation whenever the manager or the assistant was not in the building Although the night managers theoretically had com plete control of the operation in the evenings, they did not command the respect that the manager or assistant manager did. That was because night only the minimum wage The Perfect Pizzeria system is devised so that food and beverage costs and profits are set up according to a percentage. If the percentage of food unsold or damaged in any way is very low, the manager gets aExplanation / Answer
1. The case can be summarized as an organizational behavior problem. The external factors such as low employment rate has forced the local talents to take up the job at Perfect Pizzeria. However, the management of the operation is not exactly skilled or equipped to deal with the team and their behavior dynamics. As a result, the management had earlier provided leniency to the employees that resulted in loss of business and benefit for the manager. Now, in order to improve the business metrics, the manager is adapting measures which in turn may demotivate the employees, cause attrition through firing/resignation and eventually hamper the business.
2. The case of Perfect Pizzeria provides an acute issue of leadership and principal-manager problem that is often seen in organizations. The external factors force the employees to remain with the organization while the internal factors does not include any component to motivate the employees. There are several issues and theories of Organization Behavior that are in play here. Frederick Herzberg’s two factor theory and McGregor’s theory of X and Y can be clearly visible from the case description. The Pizzeria needs to find a balance between policies, employee management, leadership and operational cost. The case also presents issues such as group thinking that has been caused by the harsh measures by the management.
3. There could be several solution to solve the problems at Perfect Pizzeria. A few of them are
Focus on the principal-manager issue: Currently cost saving benefits are only provided to the managers. However, the employees work with minimum wage and minimum benefit. Similar benefit for saving cost of wastage could be trickled down to the employee level. This will make all the employees more responsible towards how they handle the resources. For example, if a store saves their cost through low waste, then every manager and employee must be benefited. This way the whole organization could be motivated.
Two factor issue: Currently the only motivator for the employees is the wage. Considering that the Pizzeria is providing minimum wage and hiring mostly part-time employees, it is difficult to keep the level of motivation high. In addition, several issues are causing job dissatisfaction. Considering the economic environment, the Pizzeria may not be able to provide motivating factors more than what is available but could work on reducing the job dissatisfaction. Solutions such as employee grievance meeting and open communication with manager could help in building a bond between management and the employees.
Change in policy: There is a need to change policy for the overall Pizzeria. To begin with, the way managers are chosen could be modified so that people/employees with more management skills could be the managers. Also the policies in terms of providing free pizza and unlimited drinks also could be modified with the business context in mind. After the changes, an open communication between employees and management should take place in order to explain to the employees why there has been change in policy.
4. The first solution provides additional benefit for the employees for their effectiveness and efficiency. Considering that the job market is poor for the job seekers any additional benefit will be welcome and could motivated the employees (even though it is an external motivation).
The second solution may require certain studies to understand the employee needs and their concerns. Considering that the managers at the Pizzeria are not exactly at their position due to their managerial skills, there is a possibility that this solution may not be very efficiently handled.
The third solution is a companywide change, it will require time and effort to implement. However, in the long run, this could help build a company culture and management style for a very successful business.
5. The best solution often depends on the need of the hour. If the priority is the short term goals then the first solution should be selected. However, for the longer run, the third solution is the most effective solution.
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