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
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