Revitalizing Domino's Work Culture Through Herzberg's Two-Factor Theory

The assignment content discusses the two-factor theory by Herzberg, which emphasizes motivational and hygiene factors in organizations. Domino's management should focus on hygiene factors such as work-life balance, interpersonal relationships, and quality supervision to enhance employee performance. The case study highlights the need for internal analysis and communication with employees to understand issues and implement recommended theories.

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DOMINO’S CASE STUDY
STUDENT NAME

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Table of Contents
INTRODUCTION.....................................................................................................................................2
BACKGROUND...................................................................................................................................2
IDENTIFICATION OF ISSUES AND PROBLEMS............................................................................3
Inefficiency in management...............................................................................................................3
Resistance among employees.............................................................................................................4
Unhygienic work environment...........................................................................................................5
POSSIBLE SOLUTIONS......................................................................................................................5
Improving organisational culture......................................................................................................5
Enhancing work performance............................................................................................................7
RECOMMENDATION.........................................................................................................................8
Improved Organisational Structure...................................................................................................8
Motivating Employees.......................................................................................................................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................12
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INTRODUCTION
One of the best performers in food chain business is Domino’s who supplies Pizza’s with an
excellent network of supply chain in over 600 retail stores situated worldwide. The company
follows a franchise system and is also listed in Australian Stock Exchange since 2005. The
company’s policy of maintaining public welfare more than earning revenue for the company
is also one of the reasons why it is observed as a successful enterprise and had been able to
expand its business with prominence (David, 2011). The competition in food market has been
prominent which makes organisations perform necessary amendments in their procedures.
Domino’s also faces constant threats from its competitors and issues in internal managerial
areas which forced the managers to make changes in its management style (Baban, 2011). By
applying applicable theories and models, this report will assist the management of Domino’s
to make efficient changes in management culture and style and conclude with appropriate
solutions for the issues identified.
BACKGROUND
Domino’s selects franchises that trust in company’s policies and processes. Inefficiency and
unorganised management system are blamed entirely if the Franchises are unsuccessful in
providing sufficient profits for the firm. By implying such policies made by Domino’s, few of
its franchises became unhappy and alleged the top management of making negative models
especially in relation to wages and remunerations of staffs. At present the company’s CEO is
Don Meij who is working for the company since 25 years. He had an educated background in
arts and economics and specialised in creative and entrepreneurial skills. Meij possessed fine
leadership style that allowed Domino’s growth towards betterment while making changes in
policies several times according to requirements (Frost, 2017). But few loop holes is been
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observed in its management style after studying case study of Domino’s and its managers like
Del Santo. Thus the change adopted by the company must follow strategic models so that
issues could be eliminated effectively.
IDENTIFICATION OF ISSUES AND PROBLEMS
Inefficiency in management
Meij followed principle of discussing problems with the team as he said. “It’s important to
allow discussion. When you’re dictating new policies, you still have to have enough allies.”
Still the constant changes made in the company by managers became major issue faced by its
franchises as they accuse of being unaware of changes before handed. Thus a mark of
inefficiency in the management and its leaders can be said responsible for generating
unhappiness among workers (Peterkin, 2015). In order to attain strategic management to run
the company successfully in global context, the information should be made accessible to all
of its members and alliance. The below figure can explain the process in which the
managements needs to structure their business policies and organisational culture.
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Figure: Essential Organisational Culture (The Right Group, 2015)
Cultural mapping is utilised by several organisations according to required operating system
in work environment. The above model can help in adopting cultural demand in Domino’s to
provide with effective framework and support management change initiatives. The case study
reveals inefficiency in management regarding communication barrier as employees hesitated
while speaking to top managements (Peterkin, 2015). By making flexible policy and
introducing innovative ideas in structure can help in setting stable and reliable company’s
goal while systematic hierarchy can eliminate barriers of communications
Resistance among employees
Many changes in management had been made by Domino’s internal management which
made the staff resistant to work and even made few of its workers like Del Santo quit the job.
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The mangers of stores also manoeuvred the payrolls of workers and exploited their wages by
manipulating time schedules (Peterkin, 2015). Adding to the issue, Domino’s made several
cost cutting strategies under new changed system to make more profits for the organisation.
Thus the workers felt incapability of management and feared of losing job if conveyed their
feelings in higher levels.
Unhygienic work environment
Meij introduced many training programmes for its staffs but still they were not convinced
with Domino’s culture and demanded healthier working conditions with increased payrolls.
One of the store managers Josef Yap got courage after three years of intolerance and claimed
of being humiliated while facing violation in work environment like heated work vicinity and
unhygienic working conditions. Thus Domino’s was strained to make internal audit of all its
franchises and subsidiaries to find out possible solutions for the issues (Dudovskiy, 2013).
POSSIBLE SOLUTIONS
Improving organisational culture
Victor Vroom’s theory can provide strategic model for Domino’s. If the following
Expectancy Theory is followed by the managers of Domino’s, it can assist in making tactful
procedures in effective manner. The theory also provides scope for motivating employees
while ensuring future growth of the company (Bagga, 2014). The below figure portrays basic
model that can be expanded further with the course of its implementation.
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.
Figure 3: Expectancy theory (Redmond, 2016)
The Expectancy theory describes the essentials for motivation under three parts i.e. effort,
performance and reward. Domino’s can apply this theory that can enable motivation among
its present employees who are getting resisted to work. As stated by Meij, “You can’t be the
lone soldier”, Domino’s require arranging all its team members involve in discussing new
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policies that can enable a sense of ownership among each staff. Also by giving merits on the
basis of talents motivates other staff to perform well and if they get satisfied remuneration,
inner morale and capabilities will automatically get boosted.
Enhancing work performance
Figure: Edward Deming’s Theory (Corley, 2016)
To get successful outcomes, organisation shall consider human factors as an essential element
and must make a priority to provide efficient work environment to their employees. Work
quality and product excellence will get boosted if the working conditions are enhanced in
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Domino’s. To give assistance to the management of Domino’s, Deming’s fourteen principles
can be applied which carries all the necessary factors required in its management (Pawar,
2013). By adopting the above theory, the consistent development of work is enabled and the
improvement data can be shared with the company mangers to process the controlling in
better way. The data collected should be on the basis of purpose and not just making mass
collections. By introducing new ways of training and awarding system, the staffs get
motivated. If the problems are identified technically, the chances of missing any issues
reduce and modern ways of supervision is created. The leader of Domino’s i.e. Meij also
needs to change its management style and adopt technical structure in organisation. Also he
must ensure the employees of their job protection so that they are not feared in speaking to
him. Thus seeking profits from franchises shall be considered secondary after considering
human factors.
RECOMMENDATION
Improved Organisational Structure
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Figure: Max Weber’s Theory (Maheshwari, 2013)
The inefficiencies in the management system and developing of issues in Domino’s have
made the company doing changes in their operational structure. The above figure shows
bureaucratic theory of Weber that can be implemented to control Domino’s operations and
etiquettes in organizing its business globally in technical way. Weber’s hierarchical structure
gives authority to top level management and allows working in consistent manner
(LUTZKER, 1982). The subordinates are supposed to answer higher authority and since the
system requires questioning to the immediate sub ordinates, the problem of
miscommunication can be solved. Since Domino’s faced the issue of miscommunication, this
theory can provide great help. Meij can also gain information’s by following strategic chain
system of information and organise people according to their skills and work performances.
Weber’s theory states that each recommendation and appraisals should be made on practical
basis and not by personal means which ensures employees with unbiased organisational
system.
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Motivating Employees
Figure: Fredrick Herzberg two factor theory (Dudovskiy, 2013)
The workers in Domino’s faced many issues of underpayment and delivery scams which
made them feel abused and humiliated. Many workers also suffered mental breakdowns
while working late for the company. In some franchises unhealthy working conditions were
noted as stated by one of the workers Yap who worked for long hours in suffocating work
area. All this issues required solution in which the present workers are enabled with better
working conditions along with getting motivated through company policies. Herzberg’s
theory can provide assistance here which can help in evading the present problems of
Domino’s.
This two factor theory emphasizes motivational and hygienically working conditions in
organisations (Dudovskiy, 2013). The management of Domino’s requires putting stress on
hygiene factor of workers by ensuring work and life balance. Enhanced inter personal
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relationships along with quality supervision can also increase work performance. Domino’s
can also implement reward system in the company and utilise employee’s competencies to
enhance work excellence. Thus by distributing responsibility and sense of personal
achievement, Herzberg’s theory can provide Domino’s with positive approach in change
management.
CONCLUSION
The case study of Domino’s reveals that managers requires to work more on strategic
management part and must adopt a theory that can eliminate the issues arising in the
company. Since the management is unaware of issues among workers as they resisted in
communicating with higher levels, internal analysis requires to be made more precisely. All
the associated people can be contacted and communicated while implementing recommended
theories (Baban, 2011). On concluding note it can be said that Domino’s requires treading
cautiously while making changes in its management so that none of its employee’s morale is
subjugated. Also implementation of theory shall be made in thought out manner so that
further changes is not required constantly as it hampers franchises working circumstances.
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REFERENCES
Baban, M.A.N.a.H., 2011. Strategic change management: The challenges faced by
organizations. [Online] Available at: http://www.ipedr.com/vol4/108-F00035.pdf [Accessed
08 September 2017].
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Bagga, P.P.a.S., 2014. Victor Vroom’s Expectancy Theory of Motivation – An Evaluation.
[Online] Available at: http://irjbm.org/irjbm2013/Sep2014/Paper1.pdf [Accessed 07
September 2017].
Corley, M., 2016. Using SPC with Indusoft Web Studio and How It Relates To Andon.
[Online] Available at: http://www.indusoft.com/blog/2016/08/03/using-spc-with-indusoft-
web-studio-and-how-it-relates-to-andon/ [Accessed 08 September 2017].
David, F.R., 2011. Strategic Management CONCEPTS AND CASES. [Online] (Thirteenth
edition) Available at: http://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].
Dudovskiy, J., 2013. Frederick Hertzberg’s Two-factor Theory. [Online] Available at:
http://research-methodology.net/frederick-hertzbergs-two-factor-theory/ [Accessed 08
September 2017].
Frost, S., 2017. Barriers & Challenges to Change Implementation. [Online] Available at:
http://smallbusiness.chron.com/barriers-challenges-change-implementation-30842.html
[Accessed 08 September 2017].
LUTZKER, M.A., 1982. Max Weber and the Analysis of Modern Bureaucratic Organization:
Notes Toward a Theory of Appraisal. [Online] Available at:
http://www.americanarchivist.org/doi/pdf/10.17723/aarc.45.2.n05v8735408776qh?
code=same-site [Accessed 07 September 2017].
Maheshwari, H., 2013. Bereauctratic Management Approach. [Online] Available at:
http://074himanimaheshwariim20nitiepomcourse.blogspot.in/2013/08/the-development-of-
bureaucracy.html [Accessed 08 September 2017].
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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].
Peterkin, C., 2015. Bad Management Practices That Cause Employee Inefficiency. [Online]
Available at: https://www.linkedin.com/pulse/bad-management-practices-cause-employee-
inefficiency-cecile-peterkin [Accessed 08 September 2017].
Redmond, B.F., 2016. Expectancy Theory Overview. [Online] Available at:
https://wikispaces.psu.edu/display/PSYCH484/4.+Expectancy+Theory [Accessed 08
September 2017].
The Right Group, 2015. COMPANY CULTURE MAPPING. [Online] Available at:
http://therightgroup.com.au/employee-research/company-culture-mapping/ [Accessed 08
September 2017].
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