Tuesday, May 5, 2020

Stakeholder and Issues Management †Free Samples to Students

Question: Discuss about the Stakeholder and Issues Management. Answer: Introduction The business model of Domino is based on growing sales through franchisees, not to make the profit but to take a royalty from each and every sale. The stores of Dominos are bought and sold on the basis of the sales, not as per the calculation of profit. The company believes that the network of the company will have more stores and that will result in more profits for the company. The company focuses on products and services. Dominos in Australia has witnessed major issues despite the success story. The employees of the franchisees are facing huge stress and they are demotivated. There are concerns with the structural and behavioural patterns of the organisation. The pressure from the higher management affects the performance the morale of the employees. The autocratic leadership style of the franchise owner, Del Santo creates unrest among the employees. The assignment studies the low morale of the employees and the stress the employees face due to the lack of good communication patt ern in the organisation. Dominos is a global brand that is famous for pizza and the company has a network of franchises and retail stores all across the globe. Domino has a credible presence in Australia and has been enlisted on the ASE, the Australian Stock Exchange in the year 2005. The company has more than six hundred retail stores in the country. The company has earned a total revenue worth of $939,976,000 in the year 2016. The company is famous for its drones, fast pizzas, franchisees, and for the good workers. The company has developed technology to keep abreast of all the sales and operations of the franchises. The updated statistics are conveyed through IT technologies so that the head office can find the average size of the order for the employees and the duration that takes the pizza to reach the customers. The store earning determines the bonus for the managers of the stores and that is given to them in every quarter. Dominos in Australia has witnessed major issues despite the success story. The employees of the franchisees are facing huge stress and they are demotivated. There are concerns with the structural and behavioural patterns of the organisation(Weiss, 2009). The pressure from the higher management affects the performance the morale of the employees. The autocratic leadership approach of the senior management affects the culture of the workplace and the pressure of the management remains a hindrance for the quality performance of the staff members. The poor communication of the senior management with the frontline manager of the franchisees bring huge gap in the operations of the organisation. Identification of issues and problems The autocratic leadership style has been found in Del Santo. The underpayment wages and underpayment of penalties are found in the stores. Del Santo reduced the cost of the labour below 27% of sales. This has affected to the payroll system of the store and the work hours of the staff are lowered. The employees got less payment. He manipulated payroll and blamed his employees for the differences. He was treated by the employees as the dictator of the organisation. The autocratic leadership style of Del Santo has a negative impact on the performance of the organisation. The style of Del Santo is based on Taylors scientific management theory. The theory focuses on the control of the decision-making process domination. This kind of management is found in an organisation with a hierarchy that is very rigid(Daft, 2010). Del Santo advocates that his leadership style has a positive impact as it directs people to work sincerely, improve work method cooperation among the employees will be established. The negative impact of the autocratic leadership style is evident. The leadership style that Del Santo follows is based on Taylors theory and it ensures effective efficient accomplishment of work. But it does not have the impact on the employees practically. It has created resentment among the employees of the organisation(analytitech.com, 2016). The low morale of the workers lack of inspiration the employees lost their interest to work. Manipulation of the shift hours of the employees, violation of the payroll conditions practices, no payment for overtime and no payment for even the appropriate working hour etc. are major issues and it affected the operations of the franchisees(Ferrel, Ferrell, Fradrich, 2008). Most of the workers are afraid of losing their jobs for the policy of payment based on the working hours of the employees. The resentment among the workers remains the major issue for Dominos franchisees to manage the image of the brand of the company. The resentment will lead the lack of motivation and this will affect the company in the long run. The possible solutions are made in order to combat the immediate issues that are faced by the organisation. The followings are the possible solutions attempted in the assignment. Needs of changing the hierarchical structure of the franchisees The hierarchical structure has a negative impact on the management of the franchisees. The top level managements remain influential and the leaders become autocratic and formulate the rules as per their requirements(George, 2017). The change in the hierarchical pattern of the organisation will allow the employees to report their concern directly to the top level management so that the rules and regulations will be prepared well(valuebasedmanagement.net, 2017). The decision making will be delayed. The immediate boss cannot take immediate decisions as the decision making power will not be given to him or her. The change in the leadership style of leader will bring a change in the culture of the management will of the organisation. The workers will have no low morale and they will be very innovative in the workplace. They will not quit their jobs and will not get afraid of losing their jobs. The work method requires to be standardised and the work accomplishment should be done with the cooperation of the workers(Hawkin Mothersbaugh, 2012). A dictator leader makes everybody work as per the standardised laws. Thus a leader cannot always be a transformational leader and the autocratic leadership style will contribute to the growth of the organisation. Communication and motivation for the employees The communication between the top level management and the managers at the operational level is very important. The appropriate communication will bring no gaps in the operations. The employees will be well aware of the expectations and they will act accordingly. This will also help the management to motivate people to work more(Kannair, 2007). The interpersonal relationship will be developed and the top level management of Dominos can easily get the information from the bottom level employees. The workers do not require all information. More information will create confusion in them. This affects their efficiencies the productivity of the organisation will be decreased. Appropriate communication pattern Dominos success at the franchisee level is possible when the communication between the franchisee and the head office remains transparent and unbiased. The wage fraud practices at the franchisees are due to the unlawful behaviour of the franchisees. The communication at an appropriate level will help the entire organisation to communicate the policies of the organisation to all the employees( Parker Evans, 2014). The communication from the managerial level at the franchisees to the top management of the head office will be made on the everyday basis so that the head office will remain alert on the functioning of the stores or the franchisees. The rights of communication to the employees will help for the immediate communication and no fraud will be made at the lower level. The employees will not feel afraid and they can report the wrong practices at the lower level( Woiceshyn, 2011). The communication between CEO, managers and the frontline staff employees of Dominos will bring effective results on the development of the morals of the employees and the culture of the organisation will be effective. The feedback from the employees will accurate and the management can easily get the information related to the needs of employees and the stores and franchisees. Dominos can find out the issues at the franchisees and at the stores. The top management can solve their problems. Recommendation The leader can be taken the opinion of the employees before taking the decisions. The employees can help the Del to devise strategies to meet the expectations of the head office and to perform well at the franchise level. The communication process will be effective and the strategies will be formulated successfully. Review of the performance of the employees, managers and the management of Dominos is very important. The review will offer the exact feedback. The feedback will high light how the different stakeholders are performing and what steps are required to manage the issues. Del requires taking the feedback of the employees and the managers before making unlawful plan to reduce the working hours and reducing the payment of the workers. Bibliography Grima, T. (2012, 08 04). Positioning and Perceptual Mapping. Retrieved 08 25, 2017, from https://tonygrima.wordpress.com/tag/perceptual-map/ Parker, C., Evans, A. (2014). Inside Lawyers' Ethics - Page 347 - Google Books Result. Retrieved 08 25, 2017, from Christine Parker, Adrian Evans: https://books.google.co.in/books?isbn=110764173X Woiceshyn, J. (2011). A model for ethical decision making in business; Reasoning, interaction and rational moral principles,. Journal of Business Ethics, 104(3), 311-323. analytitech.com. (2016). Theory of Motivation. Retrieved 08 25, 2017, from analytitech.com: https://www.analytictech.com/mb021/motivation.htm bhpbilliton.com. (2017). Operating with integrity. Retrieved 02 27, 2017, from https://www.bhpbilliton.com/our-approach/operating-with-integrity Daft, R. L. (2010). Organization Theory and Design (10 ed.). South-Western CENGAGE Learning. Ferrel, O. C., Ferrell, L., Fradrich, J. (2008). Business Ethics: Ethical Decision Making and Cases (8 ed.). South-Western CENGAGE Learning. George, N. (2017, 08 10). Five Components of an Organization's External Environment. Retrieved 08 25, 2017, from https://smallbusiness.chron.com/five-components-organizations-external-environment-17634.html Hawkin, D. L., Mothersbaugh, D. L. (2012). Consumer Behaviour. Building Marketing Strategy( 11th Edition). McGraw-Hill. Kannair, J. (2007). The Ethical Mind. Harvard Business Review, 85(3), 51-56. mantragroup.com.au. (2017). To be the favourite by Knowing What Matters. Retrieved 08 25, 2017, from https://www.mantragroup.com.au/About-Us/Vision-Values-Strategy.aspx valuebasedmanagement.net. (2017). Analysing Organisational Culture: Summary of three level by Schein Abstract. Retrieved 08 25, 2017, from https://www.valuebasedmanagement.net/methods_schein_three_levels_culture.html Weiss, J. W. (2009). Business Ethics: A Stakeholder Issues Management Approach. South Western CENGAGE Learning.

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