Universiti Sains Malaysia Graduate School of Business ADW 613 Management and Organizational Behaviour Weekly Exercise Case Study: CINCINNATI SUPER SUBS
Lecturer: Dr Yusliza Mohd. Yusoff Student Name: Lee Ami Matrics Number: P-GSM0139/14 Date of Submission: 15 October 2014
Case Study: CINCINNATI SUPER SUBS 1. What symptom(s) in this case suggest that something has gone wrong? Below average profitability Over the past eighteen months, Cincinnati Super Subs is experiencing below average profitability. Due to the below average profitability, the bonus that paid to the restaurant manager and assistant manager has reduced. However, the condition has worsen in five months ago, where both managers no longer receive bonus as the restaurant's wastage has risen to an alarming level. High percentage of wastage The outlet is experiencing high percentage of wastage. The high level of food wastage has significantly affect the cost of the outlet which leads to low profitability. The wastage is mainly caused by the unsold, damaged for food and drinks where employee drop or spill food, cut up more toppings than are sold, burn heated subs, prepare an order incorrectly, and unaccounted for food and drinks where employee eat and give away foods without permission. Complain of lack of food allowance among staff Staff are complaining the lacking of food allowance where they think the allowance is meager. Many shifts allocated to employee are only three to four hours. Staff are unhappy with the meal allowance policy where food allowances only given to employee who work continuously for at least four and onehalf hours. This leads to unauthorized eating among staff and giving away foods to their friends when the managers are not around. Under report of accidental or deliberate wastage Team leaders are reluctant to report any accidental or deliberate wastage. As the expenses incurred when employees make mistakes should be borne by the employee from their paycheck. Previous team leader who reported several accidental wastage incidents experienced unfavorable treatment by coworkers. Shortage of staff The outlet is experiencing shortage of staff as almost 20 percent of the experienced college staff quit the job. In addition, low new referral from existing staff as they discouraged friends from joining Cincinnati Super Subs outlet. Low morale and poor relations between employees and managers Morale has declined in the outlet. The reduction of the profit in the outlet has indicated the high level of wastage have significantly impacted the relation between employees and managers and the overall cost at the outlet. Corrective actions failed to solve the symptoms The corrective actions taken by the manager has only temporary solve symptoms. The level of wastage is going up again after managers withdrew from daily operations.
2. What are the main causes of these symptoms? Low employee engagement One the cause of these symptoms is lacking of employee engagement in this outlet. Lacking of emotional and cognitive motivation among the employee. For instance, the head office discourage managers to involve in frontline work is not a positive earnings for the outlet. Assistant manager allocates most time in assisting manager in management works. Lacking of involvement in daily operations unable to build a strong employee and unified work performance site. Team leaders and other employees are focusing primarily in serving customers. Low motivation among employees Another cause of these symptoms is lacking of motivation among employees and team leaders. As most of the employees are work as part-time basis which might lead to less involvement and attachment to the outlet. Besides, employees are earning minimum pay rates. The dissatisfaction of food allowance policy also lower employees' motivation. The employees are not being driven by the management to drive the desire behaviors. Low motivation among employees also causing lower new referral to the outlet. They discouraged friends from joining the outlet. Low affective organizational commitment Employees' affective organizational commitment is low. Affective organizational commitment is when employee chooses to be dedicated to and responsible for the organization. However, in this Cincinnati Super Subs outlet, employees are do not see the importance of minimizing food wastage in the outlet. They acts irresponsibly by eating or giving away food and drinks without permission. They feel that the amount of food and drinks eaten or given away is not a significant amount of profits. Lack of experienced staff Almost 20 percent of the experienced staff quit the outlet due to job dissatisfaction. The greater number of inexperienced staff in the outlet causing the increase in accidental wastage. More mistakes can be generated due to lack of experience among new staff. In addition, after the situation has improved, the managers spent less time in training staff. Lacking of training also can cause the symptoms to happen. Improper corrective actions As the real factors to the symptoms are not being addressed properly. Thus, the plan of actions is not solving the real problem. The managers do not address the dissatisfaction among staff. The positive effects of the corrective actions, reduce wastage, do not last long. As the reduce in deliberate wastage is due to managers increase presence in the restaurant. The management failed to identify the cause of the symptoms, the process of carried out corrective actions also causing dissatisfaction among employee. For instance, the action of adjusting the food allowance policy does not improve the wastage but resulting in more staff quit the job.
3. What actions should Cincinnati Super Subs' managers take to correct these problems? Managers' time allocation for daily operations Managers should allocate time to be present in daily operation. The managers can demonstrate a professional and positive behavior is the outlet. Managers as the role model can motivate their team leaders and employees to do their best of the ability. Besides, managers should be fully engaged with their employees and the customers in the outlet. This is a way to show their commitment to boost up job satisfaction and achieving customer excellence. Roles clarity The head office should consider to establish roles for each manager. As current assistant manager is assisting the manager in non daily operations work and only spend few hours in frontline. Thus, roles clarity is vital in order for the outlet to run smoothly. They can consider to establish different manager roles, for example, operations manager, trainer, service manager and et cetera. Food allowance policy As most of the employees are dissatisfied with current food allowance policy. The manager shall revamp the food allowance policy. As most of the working shifts are only three or four hours, but food allowance only given to those who work four and one-half hour before the adjustment then six or more hours in a single shift after corrective actions taken. They must revamp the policy in order to increase employees' satisfaction. Regular meetings The managers should have regular meetings with team leaders and employees. This meetings provide a channel for the frontline employees to voice up the problem they are facing and also to voice up their dissatisfaction. Desired behaviors can be enforced during the meetings. Organizational Behavior Modification on Positive reinforcement and Punishment The managers can use reward as reinforcement of desire behaviors. For instance, reward will be given if the food wastage is reduced. Besides, the managers should create and enforce punishments for violations. For example, they should reinforce employees who being caught taking or giving away food and drinks without permission will have consequences which might lead to termination. Goal Setting Goal setting is important to motivate the employee and clarifying their role perceptions. Set specific goals and create rewards for reductions of food wastage. The managers should allow employees to give feedbacks. Training Adequate training should be provided for all employees. All new comers must be fully trained so that they are equipped with necessary knowledge to perform their tasks. This can reduce accidental wastage in the operation. Besides, continuous training should be provided to all their team leaders and employees.
