Perfect Pizzeria

Overview
By reading this article there is a lack of planning & controlling and also a perceived difference
between managers and staff, resulting in conflicts. Conflicts can be constructive as well as
destructive, but if it is not managed carefully or timely, it may affect the organization negatively.
To stop this, there must be good planning on the management and job-design. By doing this you
can minimize the conflict in workplace.

Critical issues and problems

The main problems in this case are following

a) Poor recruitment
b) Lack of formal training
c) Poor communications
d) Poor management
e) Poor reward system

Managers recruited in this organization were relatively young and have not much formal
education. Most of the employees were college students working on a part time basis. Studying
will be their top priority that’s why they pay more attention to their studies and have lesser
commitment to the job. Lack of education and formal training increase the percentage of food
wastage.

All of the employees are dissatisfied due to the poor communications and management. They
started to steal food whenever the manager is not around. The night managers have got no
control on the employees because they are of same age and drawing same pay.

In Pizzeria, the manager receive bonus if the percentage of wastage is low. The employees are
indirectly helping the manager to achieve higher bonus through conscientious food preparation,
however they will not get a share of this bonus. This therefore led to dissatisfaction among them.
When the reward system is unfair, employee become unmotivated, thus affecting overall
performance. Because of less commitment of the employees they failed to share the rewards and
due to the unfair or informal wage system their morale spiraled declines and dissatisfaction arose
against the managers.

Solutions
To solve these problems the organization should work on the communications. If downward
communication has been practice all along, Two way communication may be tough to establish
and longer time period will be needed to establish this type of communication.
“When employees are in good two way communication with management, attitudes such as
satisfaction are much more positive” (Hall and Goodale)

Redesigning the reward system by doing this it will boost the motivation of the employees which
affects positively on the performance of the organization. Change always comes with cost, if
pizzeria is facing financial constraints, they may not implement the new reward scheme and the
conflict remain unsolved.

The issues between the management and employees should be resolve patiently. Maintaining
healthy employee relations in an organization is a primary factor of organizational success.
Strong employee relations are required for high productivity and human satisfaction. Strong
employee relation depends upon healthy and safe work environment, the negative consequence
of this solution, these type of changes like conduction of trainings, change of reward scheme,
giving the incentives for the purpose of motivation always comes with high cost, which is
required to create these type of changes in the organization.

Plan of Action & Implementation

Poor recruitment and lack of formalized training

Pizzeria management should install stringent or formal recruitment criteria for managers and
staff. Several screening should be done to find out the right candidate for the right job. Everyone
recruited should be trained in the basic of every job, trained them for each and every position
which exists in the organization because of the purpose of job enlargement. Management should
focus on the knowledge and formal training of the selected candidates. After the training place a
person or manager on 3 Months probation period which minimize the risk of employing a wrong
candidate for a job. At the end clearly define the duties and responsibilities of the full time and
part time employees, tell them about the mission & vision of the organization and the goals as
well.

Poor management and communication skills

The manager should inform employees of what is expected from them about their work, thus
setting a benchmark from day one of their employment. The night managers will have to be
briefed about his role by higher management. Nowadays all of the successful and innovative
companies’ success lies in informal communication. The strong communication between the
management and the employees took the organization on top level.

Poor reward system

Instead of adjusting the employee entitlement to reduce the percentage, the managers could
implement a variable bonus to the employees’ if the percentage is reduce, hence making them
feel a part of the success. When the individuals are rewarded, more effort will be put into their
work and with the increase in motivation level, performance level will eventually increase.
Employees participation should be encouraged to a certain extent in decision making, thus
increasing employees involvement at work. This will create a sense of “belonging” as well as to
let them know that their views are valued. This brings about greater employee’s commitment to
the company, which may minimize the chances of stealing.

Theory Application
Expectancy theory

Based on the expectancy theory employee dissatisfaction can lead to high level percentage of
wastages. Some employees make up their paychecks by helping themselves to the food whenever
manager is not around. Employee can simply put extra ingredients for their friends order.
Occasional nibbles by 18 to 20 employees throughout the day at the meal table also raise the
percentage figure. An occasional bucket of sauce may be spilled or a pizza accidentally burned
and sometimes wrong-size pizza may be made. In the event of an employee mistake or burned
pizza by the oven person, the expenses is supposed to come from the individual, because the peer
pressure. Instead, the establishment takes the loss. This high level percentage of food wastage
can be causes by poor communication and management skill, poor recruitment and reward
system, and lack of formal training.