Human resources at Domino`s - Cambridge University Press

Chapter 21: Human resources at Domino's
Human resources at
Domino’s
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
21
387
Chapter objectives
In this chapter, students will:
investigate the role of human resource
management at Domino’s
explain the processes of human resource
management at Domino’s.
analyse the key influences on human
resources at Domino’s
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 387
19/04/2017 7:40 PM
Cambridge HSC Business Studies Fourth Edition
21.1 Role of human
resource management
ability of the human resources sector to create an
environment for employees that allows them to
develop and remain in the business environment.
The human resources team of Domino’s in Australia
plays a vital role: it is intimately involved in all
aspects of the company, aiming to create a team
of staff that matches Domino’s business model.
Domino’s has realised that its success is strongly
dependent on the skills and motivations of its
franchisees and employees. As a business, it fits into
the retail or service industry, and is therefore heavily
reliant on its labour force to sell its goods. The most
vital functions of the Domino’s business – preparing
pizzas on time to certain specifications – cannot be
outsourced; therefore, Domino’s must improve staff
training or use new technology to increase revenue
growth. Domino’s is committed to creating a highly
engaged and positive workplace culture in which its
visions, values and customer service ethic are at the
heart of everything it does.
Outsourcing
Human resource functions
The size and scope of the Domino’s approach lends
itself to having a strong business model with clear
corporate policies and training systems in place.
Domino’s therefore maintains an in-house human
resources team, as part of its head office hierarchy,
rather than outsourcing this function. This is one way
that the head office of Domino’s is able to support
its franchisees.
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
388
Strategic role of human resources
In order to achieve its vision of being number
one in people and number one in pizza, Domino’s
places a high priority on maximising the potential
of each of its employees. The human resources
team is responsible for acquiring and maintaining
top talent. A dedicated human resource training
team works closely with Domino’s head office staff
and in-store staff to fully train and educate team
members in all aspects of the company, including
workplace health and safety, food safety, delivery
procedures and customer service. The team also
develops short-term training courses to provide
ongoing career development for staff. Training
is a key part of the business in ensuring
continued success.
Interdependence with other key
business functions
Domino’s is Australia’s most popular pizza brand,
and as a large organisation several of the key
business functions rely on successful human
resource initiatives. Domino’s openly promotes its
employee-based core values and always strives to
fulfil its company vision (‘No. 1 in People, No. 1 in
Pizza’) and its mission (‘Sell More Pizza, Have More
Fun!’). Results from other key business functions
such as finance and operations are based on the
Using contractors
Domino’s often utilises contractors for a range of its
operations to fulfil short-term job requirements or
contracts when required. This is designed to ensure
the company is always able to grow and expand.
However, with its internal head office teams in place,
Domino’s does not require external contractors in
terms of human resources.
21.2 Key influences
Domino’s workforce can be influenced by a number
of different factors and relationships developed and
maintained by the organisation.
Stakeholders
As with any business of its size, Domino’s success
depends on effective relationships with its
stakeholders. Domino’s has determined that its key
stakeholders are: its customers (first and foremost),
its employees and team members in all areas of
franchises and corporate staff, its shareholders,
unions, community groups, governments and
regulators, and its suppliers.
Customers
For Domino’s, customer feedback plays a vital role in
maintaining its ‘People Powered Pizza’ brand ethos
as the company can take any suggestions or advice
from customers to improve its customer service.
If customers would like to provide feedback or are
experiencing any problems, they are encouraged to
contact Domino’s on its toll-free feedback line or
leave feedback online through a form available on
the Domino’s website.
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 388
19/04/2017 7:40 PM
Chapter 21: Human resources at Domino's
389
Employees
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
Central to Domino’s stakeholder relationships are
those with its employees; or as CEO Don Meij refers
to them, ‘Dominoids’. Domino’s human resource
department has a key role to play in recruiting and
developing staff for the business.
Domino’s is committed to living by its brand ethos
of ‘People Powered Pizza’ to provide its customers with
the best possible service. As a result, Domino’s relies
heavily on its employees to operate with their maximum
potential to create the atmosphere to deliver this
level of customer service. Outlined in Domino’s ‘Slow
Where It Matters, Fast Where It Counts’ philosophy, the
business highly values the skills of its employees and is
determined to allow them to reach their full potential in
a safe, inspiring and diverse work environment.
In pursuance of the highly engaging, fun workforce
envisaged by the business, Domino’s has thoroughly
consolidated the guidelines its employees are to
follow. Domino’s attempts to achieve a fun and ethical
workplace by conducting business according to its
core values.
Source 21.1 Domino’s has established that customers
are its key stakeholders.
Employers
Domino’s is a large international franchise pizza
delivery corporation spanning over 80 countries.
In Australia, Domino’s Pizza Enterprises Limited
is a publicly listed company that operates as a
franchisor and operator of Domino’s fast-food
restaurants. It operates a hybrid business model,
with approximately 10 per cent of stores controlled
directly by the company and the remainder operated
by franchisees. The company has a network of
around 2000 Domino’s stores, including more than
700 in Australia and New Zealand. In terms of human resource management,
Domino’s Pizza Enterprises franchisees receive a
range of support services from the organisation.
Benefits and included services for franchisees
include:
• Use of one of the world’s most recognised
food brands, Domino’s
• A dedicated store territory
• Support through all stages of the store
building process [site selection, lease
negotiation, store fit-out]
• Professional and comprehensive training
covering every aspect of owning and
operating a Domino’s store
• Local franchise consultant to help with
ongoing store operations, including
meeting health and safety regulations and
improving operational effectiveness and
efficiencies by adopting best practice in
stores
• Ongoing training, infrastructure and
marketing support
• Treat people as you’d like to be treated.
• Produce the best for less.
• Measure, manage and share what’s
important.
• Think big and grow.
• Incentivise what you want to change.
• Set the bar high, train, never stop learning.
• Promote from within.
• We are not ordinary, we are exceptional.
These are instilled as part of induction and
training programs and are also one of the ways in
which the Domino’s leadership team holds itself
accountable.
Employer associations
As the majority of Domino’s stores are owned and
operated by franchisees in Australia, the most relevant
employer associations are those that offer specialised
assistance to franchisees. Franchisee associations
offer support and advice for entrepreneurs who decide
to pursue franchising opportunities. For instance,
membership is available in the Franchise Council
of Australia, a government body, while the website
franchisebusiness.com.au also offers independent
advice. Periodical financial magazines such as
Australian Business Review can also offer valuable
information on franchising opportunities.
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 389
19/04/2017 7:40 PM
390
Cambridge HSC Business Studies Fourth Edition
Unions
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
At Domino’s, when a new employee is hired they
may choose to have a certain amount of their pay
automatically deducted to service union fees.
Employees are represented by the Shop, Distributive
and Allied Employees’ Association (SDA), which is
the union that covers retail and fast-food companies
in Australia.
Unions ensure there is transparency in dealings
between employers and employees, and the human
resource department often represents an employer in
any dealings with a union. Unions are very effective
in representing employee interests and ensuring
all issues between employers and employees are
resolved effectively such that the interests of both
parties are aligned. For example, an employer must
recommend that employees subject to contract
agreements become part of a union and that the
employer conducts quarterly meetings to review
issues affecting employees. Ultimately, unions help
influence human resource departments to promote a
positive industrial environment. This helps businesses
such as Domino’s to achieve part of its core values:
supporting staff.
adhere to marketing and product claims and not
make false or misleading claims. As a result of the
growing prevalence of online orders, industry players
with an online presence are subject also to privacy
policy agreements, providing safety for sensitive
consumer information such as addresses and contact
phone numbers.
Government organisations
One of the most important and influential
stakeholders in the employment relationship
process at Domino’s is the Australian government.
The government is responsible for establishing the
legal framework within which employers, employees
and trade unions operate concurrently. Employers,
employees and trade unions are all expected to
abide by the regulations that the government and
relevant tribunals set up.
As the health and safety of food preparation
and consumption becomes more important, most
of the regulation and policy that affects the industry
centres on food safety. The Australian New Zealand
Food Standards Code, drafted by Food Standards
Australia New Zealand (FSANZ), has the highest level
of authority in the regulation and government of foodservice establishments, including pizza takeaway
and restaurants. Areas of the code that affect pizza
establishments mostly dictate food safety practices,
maintenance of food premises and equipment, and
food preparation. The code is enforced by state and
territory legislative bodies.
As retailers of food, pizza establishments are
subject to regulations such as the Competition and
Consumer Act 2010 (Cth), with a requirement to
Society
Locally owned and operated, Domino’s strongly
believes in giving back to Australian and New
Zealand communities. Providing financial assistance
to communities in difficult times is at the core
of these beliefs. Over the years, Domino’s has
donated tens of thousands of pizzas and hundreds
of thousands of dollars to Australian and New
Zealand local communities through initiatives like
Doughraisers, pizza donations in times of natural
disasters, and monetary donations through its ‘Give
for Good’ program.
Legal
Another influence on the human resources of
Domino’s is legal concerns. The corporate legal
team’s role is to assist in the management of legal
risk in the business, preparing key contracts and
understanding the impact of decisions made by
government authorities.
The employment contract
Domino’s adheres to standard contracts under
Australian workplace law. A 2010 decision by Fair
Work Australia approved an enterprise agreement
between the SDA and Domino’s called SDA –
Domino’s Pizza Agreement 2009. The Fair Work
Act 2009 (Cth) is the basis of the agreement,
which reflects that Domino’s accepts the minimum
standards of treatment of employees under the
government’s National Employment Standards
guidelines.
Domino’s also has specific policies in place which
all staff need to acknowledge in terms of intellectual
property and privacy rights. All corporate head office
staff are required to sign a confidentiality agreement.
If they are leaving to work for a competitor this may
affect their notice period.
Work, health and safety and workers
compensation
Each team member undergoes work, health and
safety (WHS) training when they commence
employment at Domino’s. This training is completed
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 390
19/04/2017 7:40 PM
Chapter 21: Human resources at Domino's
have reduced their delivery areas to improve customer
service, as well as split delivery areas to make way
for new stores. This ensures that each store is able
to deliver its pizzas on time, meet and even exceed
customer expectation, and Domino’s ‘Delivery Experts’
are able to perform more deliveries.
During an economic downturn, consumers are
often encouraged to purchase from low-cost meal
providers. This may have the benefit of increasing
sales for Domino’s.
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
in-store and online at regular intervals. If a WHS
incident occurs, store staff are required to complete
an incident report form. This form is reviewed by
head office and forwarded on to the appropriate
body for further investigation. Regional leaders
are also all certified in senior first aid. In terms of
workers compensation for workplace accidents,
Domino’s adheres to its stated requirements outlined
in the SDA – Domino’s Pizza Agreement 2009.
391
Anti-discrimination and equal employment
opportunity
Domino’s proudly employs people of all ages, races,
genders and abilities and has a zero tolerance policy
for any discriminatory behaviour. Domino’s has
in place a diversity program led by the Group HR
manager, which is integrated into leadership training.
This diversity program is aimed at recognising and
promoting differences within the business.
The industrial relations team provides training
to franchisees and store managers with regards to
indirect and direct discrimination when it comes to
rostering and employment. If Domino’s is made aware
of any issues of discrimination, the persons involved
are required to complete mandatory training in the
corresponding area.
In terms of equal opportunity, one initiative the
Domino’s Board has instigated is to improve the
participation rates of women in the Domino’s workforce,
and in positions of power in particular. In its 2016
Annual Report, Domino’s reported the following
percentages of employment of women in its workforce:
Role
Technological
According to a 2016 Australian pizza industry report
by the IBISWorld group, ‘Domino’s growth has
been due to a combination of technology, product
development, acquisition and organic expansion’.
Technology has played a key role in the success of
Domino’s operations.
Domino’s is consistently introducing new
innovations and running new projects to increase
efficiency in-store. These are undertaken primarily with
team members and customers in mind. Through the
development of mobile applications, easy to manage
websites and ordering systems that utilise smart
devices such as smartwatches and smartphones,
customers can order seamlessly through an efficient
process. Any new developments in technology are
presented to the Franchise Council of Australia, which
then approves the implementation into stores.
Women (%)
Non-executive directors
Leadership team members
20%
8%
Other
30%
Total in the whole organisation
30%
The Domino’s Board has several initiatives in
place in order to improve these figures, which are all
ongoing goals for the business.
Economic
The current trend in the Australian takeaway pizza
market is towards lower-priced but higher-quality
products. Essentially, businesses like Domino’s are
striving to improve convenience for consumers. As
a part of its ‘Slow Where It Matters, Fast Where It
Counts’ philosophy, a number of Domino’s franchises
Source 21.2 Domino’s is always looking to technology to
help streamline the ordering process.
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 391
19/04/2017 7:40 PM
392
Cambridge HSC Business Studies Fourth Edition
One of the reasons Domino’s is an attractive
employment opportunity is because of the flexible
nature of the shifts. Due to the fact that most
franchises operate during the day and into the
evening, there is a variety of shifts available to
employees.
Ethics and corporate social
responsibility
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
One example is the way that Domino’s has
partnered with technology companies to improve
its customer service practices. In 2012, Domino’s
was the first pizza company to develop an ordering
system for Facebook and an iPad ordering app. In
2015, it launched the GPS Driver Tracker, developed
with staff safety in mind. By being able to see the
employee’s current location and ensuring the vehicles
are travelling at the correct speed, traffic incidents
have been reduced by 50 per cent. It was also found
that staff felt more comfortable knowing that a
manager was aware of their whereabouts at all times
and would receive an alert in case of a vehicle being
stationary for an extended period of time.
There has also been significant investment to
provide stores with different transport options for their
delivery staff, including electric scooters and e-bikes.
Source 21.3 Domino’s has invested in different transport options for delivery staff, such as
e-bikes.
Domino’s continues to use technology to keep
ahead of the competition. Its human resources
department is responsible for hiring staff with
specialised skills or keeping existing staff trained to
use new technologies as a key driver of the business.
Social
Domino’s in-store team members work off a flexible
part-time roster. Employees often have study
commitments, other jobs, families, charitable
commitments and more, so maintaining a work–life
balance is very important to them.
Ethics
The Domino’s Board has a Code of Conduct that
all employees must follow. As outlined in the 2016
Annual Report, this requires all directors, executives
and employees to:
• act honestly, in good faith and in the best
interests of the Company as a whole;
• act with high standards of personal
integrity;
• comply with the laws and regulations that
apply to the Company and its operations;
• not knowingly participate in any illegal or
unethical activity;
• not enter into any arrangements or
participate in any activity that would
conflict with the Company’s best interests
or that would be likely to negatively affect
the Company’s reputation;
• not take advantage of the property
or information of the Company or
its customers for personal gain or to
cause detriment to the Company or its
customers; and
• not take advantage of their position or
the opportunities arising therefrom for
personal gain.
This code is instilled as part of induction and
training programs and is part of the way in which the
leadership team holds itself accountable.
If customers or staff believe that Domino’s has
breached their privacy rights in any way in terms of
information collection, they can lodge a complaint
to Domino’s privacy policy coordinator who will
determine the steps required to resolve the complaint.
According to Domino’s Business Partner Code of
Practice, the company expects its suppliers to respect
human rights, diversity, environmental management,
and workplace health and safety laws and standards.
Business partners are also expected to have their
own risk management policies in place, conduct their
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 392
19/04/2017 7:40 PM
Chapter 21: Human resources at Domino's
business with integrity, and ensure animal welfare
is a priority. Domino’s conducts semi-regular audits
of its suppliers to ensure they are following correct
procedures.
Corporate social responsibility
choosing appropriate staff, but they often look
to Domino’s core values to see if they will be an
appropriate fit.
Development
All staff at Domino’s are required to undergo training
with regard to food safety, hygiene, customer service,
safe delivery practices, safety in the workplace
and more. Training is done through online training
modules using the learning management system.
The business also has management programs and
career progressions set in place for team members
to fulfil their career journey at Domino’s.
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
As a locally owned and operated business, Domino’s
places strong importance on giving back to and
assisting local communities as much as possible.
This is done through donations of countless amounts
of pizzas and monetary donations to various
organisations. Regular ‘Doughraiser’ fundraisers take
place in Domino’s stores weekly, where the aim is to
support local communities through the sale of pizzas
with proceeds going to chosen charities, schools or
foundations.
The ‘Domino’s Give for Good’ initiative aims to
develop sustainable practices and innovative ideas to
make a difference in four key categories: education
and youth initiatives, disaster relief, food and
sustainability, and leadership and entrepreneurship.
Individuals and organisations seeking support from
Domino’s can put in an application to the Domino’s
Give for Good Group, which meets four times a year
and assesses all applications against a published set
of criteria.
A recent initiative is ‘Chocolate for Charity’: 20
cents from every Belgian Choc Lava Cake sold by
Domino’s goes to the Domino’s Give Campaign.
393
21.3 Processes of human
resource management
Acquisition
Domino’s has its own job search facility at jobs.
dominos.com.au where franchises and store
managers can post open positions. Team members
also often refer friends and family to join the team.
The business can often have potential employees
walk in off the street. Potential employees are
required to submit an application form and a
questionnaire that helps identify which position
they would be most suited for. Candidates are then
shortlisted from the applications and can proceed to
the next stage.
All staff are interviewed, and where applicable
(delivery experts, for example) must provide their
licence and visa details before starting. Each
franchisee and store manager is responsible for
Source 21.4 Required training for staff includes food safety and hygiene.
Maintenance
Domino’s has created an environment in which
its staff feel recognised and rewarded for their
work. Domino’s has a particularly strong culture
of maintenance, which has aided the business in
achieving its goals.
Each franchise store incentivises and rewards staff
in its own unique way. The head office encourages
team sports days and in-store competitions as well as
providing feedback about the working environment to
leadership and head office. It also hosts the annual
Rally where awards are given out.
When confronted with complaints and
concerns regarding its staff members, Domino’s will
investigate and conduct necessary action. However,
it is conscious of the importance of supporting its
employees through the relevant processes.
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 393
19/04/2017 7:40 PM
394
Cambridge HSC Business Studies Fourth Edition
Separation
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
If a resignation occurs, a team member is required to
give the required notice period. This notice period is
dependent on the team member’s contract type and
the duration for which they have been a team member.
As many staff are part-time or casual employees, the
notice period can be as little as a day or as much as
a few weeks. This is also the practice if a franchise
needs to make an employee redundant.
In case of a dismissal that occurs as a result of a
dispute or grievance, the industrial relations team is
made aware if any disciplinary action is taken, and a
staff member is dismissed due to breach of conduct.
These incidents are usually handled in-store unless
further mediation is required.
Operationally, Domino’s teaches two key
methodologies: high volume mentality and excellence
expected. Store managers and leaders are expected
to model these values. Leaders are not required to
use a specific leadership style in their approach to
these values. However, all employees are encouraged
to share their ideas to streamline processes and
impact on the businesses in-store with their store
manager or franchisee. They are also welcome to
submit any ideas to head office through an internal
social network. A participative style of leadership
would sit well within this structure.
Job design
Domino’s CEO Don Meij projects a public image that
perfectly suits the organisation’s mission statement
of having fun while selling pizza. However, as the
business model is tailored towards franchises, each
franchisee would also have its own leadership style
in each store in many respects.
Each position at Domino’s is created so that
employees have a range of responsibilities unique to
their role while also learning and combining multiple
skills that allow them to branch into other roles.
This encourages a collaborative team environment
where each member brings their own set of skills.
Every position is created to enable employees
to grow individually as well as with the company
and potentially build a set of skills that allows
them to advance their role and move up within the
corporation and continue building themselves.
For example, one of the key roles at Domino’s is
the pizza maker. This employee is primarily responsible
Source 21.5 Domino’s CEO Don Meij
Source 21.6 A pizza maker’s responsibilities include
preparing a variety of pizzas and other food items.
21.4 Strategies in human
resource management
Leadership style
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 394
19/04/2017 7:40 PM
Chapter 21: Human resources at Domino's
for preparing pizzas and other menu items in a timely
and correct manner, which requires niche labour skills.
Their responsibilities include:
development program and driver development
program. These programs focus on employees
challenging their problem-solving, presentation and
relationship-building abilities in order to help them
progress in their careers.
Performance management
Domino’s takes an administrative stance in terms of
performance management. Franchises and corporate
offices are recommended to conduct quarterly job
performance reviews and are provided with templates
for supervisors and store managers to conduct
with their staff. The primary method of conducting
performance reviews is done by carrying out interviews
with managers and assessing their performance
over the time period. Completing performance
reviews helps to create a shared vision between
team members by making sure their interests are
aligned. Along with performance evaluation, employee
development and incentives are also used to motivate
and reinforce employees to excel.
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
• Preparing a variety of pizzas and other
food items
• Quality control of pizzas
• Hygiene and food safety
• General cleaning duties
395
Additional responsibilities (if required):
• Meet and greet customers on the phone
and in person
• Attending to customer concerns
• Promoting menu items and special offers
• Processing payments: cash and EFTPOS
Recruitment
One of Domino’s core values is to promote from
within; hence, where possible, the opportunity to
move up to a position is given to an internal staff
member who is interested in the role. If the role
cannot be filled internally, it is advertised externally.
Domino’s franchises and store managers can
post open positions on the jobs.dominos.com.au
website.
Training and development
Aligning with its goal of providing its employees
with the opportunity to constantly learn and grow,
Domino’s offers a multitude of optional development
programs. These are offered through a mix of handson and online training that acclimatise new employees
to Domino’s products and equipment and further allow
team members to excel in their chosen roles.
For team members who wish to advance into a
management role, a management training program
entitled ‘Pizza College’ offers a series of short courses
in areas such as store security, staff training, customer
service and performance management.
Additional training programs are offered to
managers and corporate team members who wish
to rise and progress their career with Domino’s.
The Multi-Unit Manager program allows managers
showing strong potential to become successful multiunit supervisors through enhancing their coaching,
business management and problem-solving skills,
among many others.
Domino’s places a high importance on building
on the current skills of employees as well as the
acquisition of new skills, which is evident through
programs such as a rising talent program, leadership
Rewards
Each franchisee or store manager is responsible for
rewarding their own staff as they wish within their
business. However, franchisees and managers are
rewarded through incentive programs. Regional
leaders have certain key performance indicators
for stores. All employees are provided with the
incentive to increase their pay and work their way up
throughout the business by meeting targets.
Each year, Domino’s annual Rally gives out yearly
awards for a variety of categories. From Domino’s
Delivery Driver of the Year to Manager of the Year, these
awards recognise outstanding achievement of staff
across the network. The Rally also includes a pizzamaking competition that any staff member can enter,
with finalists winning a flight and accommodation for
the Domino's Rally held in Brisbane.
Global
In Australia, Domino’s operates as a local company
but is affiliated through branding with the worldwide
Domino’s network. However, globally, Domino’s
is constantly changing its strategies, which has
enabled it to become one of the largest pizza chain
corporations in the world. In the last four years,
Domino’s has opened over 2000 new stores in 10
countries. By flourishing in emerging international
markets, Domino’s is seeing growth in many
countries. Following its global strategy of diversifying
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 395
19/04/2017 7:40 PM
396
Cambridge HSC Business Studies Fourth Edition
used to their full potential, Domino’s relies on
engagement with its staff.
Corporate culture
Domino’s prides itself on possessing a staff that
thrive in a family-like culture that places as much
importance on being energetic, having fun and being
passionate as being results-driven and innovative.
The company believes in this methodology of training
its staff in order to inspire them to continuously
do better and ultimately provide the best possible
service to customers.
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
its product range from pizzas to include pastas,
sandwiches and side dishes such as desserts,
Domino’s has also been able to overtake other
international franchise rivals.
Changes in staff turnover
Source 21.7 Domino’s has diversified its product range to
include side dishes such as desserts.
Workplace disputes
If staff members have an issue or a dispute with
any terms as set out in their agreement when
commencing employment at Domino’s, a certain
procedure is utilised to ensure that all employee
grievances are dealt with appropriately. In the first
instance, employees must attempt to discuss the
matter with a supervisor wherever possible in order
to achieve a resolution of the dispute. If the matter
is not resolved by consulting a supervisor, it may be
referred to the next higher level of management for
discussion. Should the dispute remain unresolved,
an official from the SDA and a senior representative
of the employer may become involved. While the
matter is being resolved, all work continues as per
normal conditions unless the grievance poses a
threat against either party. The employee may be
referred to the Fair Work Commission if the matter
remains unresolved, with the possibility of being
suspended from work on full pay.
21.5 Effectiveness of human
resource management
Indicators
Feedback is crucial when implementing effective
human resource management strategies. In order
to ensure strategies are well received and being
Hiring and maintaining enthusiastic and wellequipped staff is an important procedure to ensure
a business can provide customers with the best
experience possible. Domino’s believes in hiring
employees with values that correspond with those
of the business and training those employees to
achieve their maximum potential so that they may
grow with the company. Retaining highly trained
employees and reducing staff turnover has been
shown to boost staff morale and enrich the corporate
culture that Domino’s works hard to maintain.
Domino’s approach to reducing staff turnover is
concerned with ensuring that those in leadership
roles, such as store managers, are of better quality,
have better tools and are better incentivised.
Following this strategy, store-level employee turnover
rates are reduced, managers have the best possible
opportunities to thrive and are inspired to constantly
grow within the company.
Absenteeism
Domino’s has recommended procedures to follow
if absenteeism among staff is an issue. Each
franchisee or store manager is expected to manage
absenteeism through conversations with the staff
member. However, the industrial relations team can
also become involved to help mediate.
Accidents
Domino’s closely measures the number of workplace
accidents in its stores and ensures that mandatory
WHS training has been completed when new
employees commence work. It also performs quarterly
audits to ensure that staff are adequately trained.
Levels of disputation
Depending on the nature of a dispute, Domino’s
has procedures in place to address the problem.
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 396
19/04/2017 7:40 PM
397
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
Chapter 21: Human resources at Domino's
Source 21.8 The Domino’s culture places importance on being energetic and having fun.
If the dispute cannot be resolved directly by an
appropriate manager, either the industrial relations
or legal team may become involved, as well as a
union representative if the worker is a union member.
Worker satisfaction
Domino’s does not have any formal process in place
to measure worker satisfaction. However, the fact that
it prefers to hire internally and openly encourages
staff to help recruit friends and family members,
suggests that employees generally enjoy working for
the company. When a business prioritises fun as a
large part of its mission statement, it is an indication
that staff find the working environment to be engaging
and that people who enjoy providing customer service
are employed. Also, Domino’s actively recruits young
workers, who would typically engage with the fun
workplace ethos and find such employment satisfying.
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 397
19/04/2017 7:40 PM
398
Cambridge HSC Business Studies Fourth Edition
CHAPTER QUESTIONS
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
Multiple-choice questions
1
Which of the following best describes the strategic role of Domino’s across human
resources?
A
B
2
Maximising the potential of each of
its employees.
Educate team members in all
aspects of the company, including
workplace health and safety, food
safety, delivery procedures and
customer service.
C
D
Domino’s uses ‘People Powered Pizza’ to describe the role of its customers. What does
this mean?
A
B
An in-house human resources team,
as part of its head office hierarchy,
Employees to operate with their
maximum potential to create the
atmosphere to deliver this
level of
customer service.
C
D
3
The business highly values the
skills of its employees and is
determined to allow them to
reach their full potential in a
safe, inspiring and diverse work
environment.
Domino’s Pizza Enterprises
franchisees receive a range
of support services from the
organisation.
Which human resource influence has been attributed to the growth of Domino’s
business?
A
B
4
Develop short-term training
courses to provide ongoing career
development for staff. Improving staff training or use new
technology to increase revenue
growth.
The government who is responsible
for establishing the legal framework
within which employers, employees
and trade unions operate
concurrently.
Legal Influences as Domino’s also
has specific policies in place which
all staff need to acknowledge in
terms of intellectual property and
privacy rights.
C
D
Domino’s proudly employs people
of all ages, races, genders and
abilities and has a zero tolerance
policy for any discriminatory
behaviour.
Technological influences Through
the development of mobile
applications, easy to manage
websites and ordering systems that
utilise smart devices.
Which two strategies does Domino’s use to maintain its staff?
A
B
Increased remuneration and
promotional opportunities
Flexible working hours and child
care facilities
C
D
Work from home opportunities and
equal employment programs
Team sports days and in-store
competitions
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 398
19/04/2017 7:40 PM
Chapter 21: Human resources at Domino's
5
399
Which of the following reasons describes why Domino’s is highly regarded as a potential
employer?
A
B
The diverse career opportunities
offered by the business
The flexible nature of the shifts.
C
U
N
SA C
O
M R
PL R
E EC
PA T
E
G D
ES
D
Tracking devices for drivers allowing
employee’s current location and
ensuring the vehicles are travelling
at the correct speed,
The industrial relations team
provides training
to franchisees
and store managers with regards to
indirect and direct discrimination
Short-answer questions
1
Examine the role of two competing stakeholders in the Domino’s Human Resource
function.
2
Examine one strategy Domino’s uses to promotes its Corporate Social Responsibility.
Extended-response question
With reference to Domino’s, examine how processes of human resource management
influence the indicators of effectiveness.
Uncorrected 3rd sample pages • Cambridge University Press © Hickey et al, 2017 • ISBN 978-1-316-64883-4 • Ph 03 8671 1400
9781316648834c21.indd 399
19/04/2017 7:40 PM