Introduction to Domino’s Pizza Company

Discuss About The Avoiding Minefield Of Vicarious Employment.

As per the Domino’s Pizza website, it is a well-known American pizza restaurant chain which was founded in the year 1960 by Tom Monaghan and his brother named James (Domino’s jobs 2018). Domino’s is famous among the principal companies of pizza manufacturing and delivery in the United States and in other parts of the world.

The strategy of delivering quality pizza at reasonable prices had been in force since 1960 when the owners borrowed a sum of $900 and started their business with a small pizza store in the area of Ypsilanti, Michigan (Domino’s jobs 2018). The establishment now is headquartered at the domino’s farm office park in Ann Arbor, Michigan (Domino’s jobs 2018). The industry serves its products worldwide amounting to 13,811 in a total number of locations (Campaign 2018). The subcategorization of products includes Desserts, chicken wings, pasta, pizza and submarine sandwiches. As per the report of January 2017, it is stated that the total revenue of the company contributes nearly about US$ 2.47 billion. The operating income and net income are included in the figures of US$ 2.47 million and US$ 214.68 million respectively (Domino’s jobs, 2018). The hours of operations are flexible in nature. There is the existence of a non-unionised environment as principles are the foundation of mutual interest where the harm arising to the parties is nil. This also eliminates the occurrence of strikes and less productivity. In addition, the company also provides the employee stock purchasing program with the basic life insurance and adoption of benefits. Since the day of hiring, the full-time employees are eligible for full claim of health and wellbeing benefits which includes vision, medical, dental as well as voluntary benefits. Sometimes, the company faces the challenge in 30 minutes free delivery policy. However, the customers range of all income groups because of its fair price policy (Domino’s jobs 2018).

The total number of employees working under the cover head of Domino’s is around 290,000 approximtaely. Dominos offers the job opportunity for the seekers of all age group but more prominently major part of its workforce are young bloods with the zeal of working in an effective and efficient manner (Campaign, 2018). Some of the skills and competencies the employees need to obtain over the training session include handling of cash, administration of people, service-oriented skills, cleaning and maintenance in addition to proper management and scheduling of consumer relations (Campaign, 2018).

Domino’s Pizza Company Strategy

On the basis of the information attained from the sources, the eminent strategy which this company could attain to maximize its profit is a focus on the management of human relation strategy.  There is a constant requirement for the teamwork tactic as the line includes the contribution of indefinite people for the successful delivery.

Also, Domino’s takes into the need and favourability of its workforce by addressing the different people with a different mechanism. Say for example, after analyzing that there are many students who are capable of working and are unemployed which in turn restricts to remove the poverty within. To resolve the aforesaid, Domino’ started the policy of part-time job for seekers so that it could help in covering the day to day expenses. The breaks for the scholarship are also open for extraordinary students. Efforts are inclined towards the retaining of quality employees by proper handling of human resource management i.e. timely promotions and hike, quality benefits along with monetary increments etc. (Furness 2009).

The compensation committee periodically reviews and finalizes the base salary of the officers including the Chief Executive Officer’s salary. There are three main hierarchy levels of employees in Domino’s Restaurants.  The lower level consists of hourly paid employees (i.e. fast food workers, cashiers, and cooks); the middle level consists of salaried employees (i.e. Assistant Managers and Managers), and the top-level employees are the CEOs and owners.  The hourly rate of the Domino’s delivery driver ranges on an average of $7.40 per hour. Consequently the salary of restaurant assistant management and customer service representative amounts to $10.47 and $7.59 respectively (PayScale, 2018). Apparently, while fixing the figures of pay the committee considers factors of the median base salary of the peer group, a recent survey of the peer group, agreement terms and conditions, measurement of performance against objectives, the degree of leadership along with responsibilities, the term of experience as well as an entire compensation package (PayScale, Inc 2018).

The CEO has a well-defined channel of annual performance incentive scheme governed by Domino’s Pizza, Inc. The employees working have the opportunity of earning an annual performance incentive which is entirely based on the cash payment of Company’s performance in the market. The percentile of the bonus is nearly 100% of the annual base salary except for the Chief executive officer who is entitled to the benchmark of 200% of the respective base salary (Careers at dominoes, 2018). The measurement of the required performance practices segment income which is defined by the Company under the clause of the statement of Financial Accounting standard.

Employee benefits and Compensation

The segment income approach laid down by the committee in 2008 has proved an excellent barometer towards the overall success of the company till the date. Moreover, there is also a policy in which there is no inducement paid to the officials lest the annual performance incentive edge is equal to almost 90% of the targeted incentive which surpassed in the appropriate fiscal year. The supreme annual performance incentive to be marked under the head of Senior Executive cannot exceed $2,500,000 (Furness, 2009). Also, there are time bonuses which are obtainable to managers, operation supervisors, assistant and HR managers. Various profit sharing charts are designed which serve the interest of varied people. As a result of this, the proportion of compensation mix includes bonuses and profit sharing. There is regular allotment of merit pay to the extraordinary performing workers and managers in form of increased pay or scholarship granted.

These are termed as the fleeting factors which involve the setting in along with the interaction happening, also delineated from the personal as well as interpersonal physiognomies (Bamburry, 2015).  Some of them are mentioned below:

The company deals in the products line such as desserts, chicken wings, pasta, pizza and submarine sandwiches. The quality of the product to be delivered is given due importance. The topmost and upgraded machines and technology have been used. The hygiene also plays a crucial role in this regards. There was an introduction of hot bags in order to keep pizzas crispy and hot during delivery as well.

The strategy adopted is to deliver quality and taste within the reasonable price range. Also, multi-flavor and multiregional specifications are added after the careful scrutinization. American –Italian products are formulated with pizza being the main highlight in accordance with countertop and various toppings. The 30 minutes free delivery is the famous business policy of Domino’s within its targeted customers (Bamburry, 2015).

The organization opened its first franchise in the year 1978 which was 200 in number. After the successful running of 38 years, Domino’s pizza sold its ownership of 93% of the company in 1998 to Bain capital for the worth of $1 billion. Subsequently, In 2004 Domino’s also started trading in common stock on the defined stock exchange. As of now, the company has a total of more than 9350 stores in the wide area of more than 60 international markets (International Franchising with Domino’s, 2018).

Working culture and environment

The employees retained are of high quality and skills with the tact of working as team members so that it could maximize the output and revenue earned. The goals are exercised towards the reduction in employee turn-over and moreover maintaining the long life continuity in the workforce. The grievance redresser mechanism is also formulated in order to exercise transparent control and quality productivity (PayScale, Inc 2018). The age group of the workforce is generally within 23-40 which justifies on the hand respective knowledge and experience as well. The working hours are flexible in nature. Additionally, the base pay ranges as per the designation and the productivity of the officials. Various other incentives, rebates and perk benefits are granted to facilitate the interests of employees.

The Domino’s philosophy has paved its way on the ground of convenience ensured to its customers. This ethos helped in almost every dimension from the creation of piping hot pizza at the reasonable prices towards the innovative technology. The technology adopted of ordering food online aided in becoming the first ever pizza company to offer services for home delivery. The system of creating a mobile app on each platform, a highly responsive website, single click ordering mechanism and tracking facility available on ordered items grabs the attention of its customers. The technology of fastest and easiest mode is worked upon to get pizzas out of them. The upcoming advent is of development of DRU which stands for Domino’s Robotic Unit i.e. an autonomous delivery vehicle attached to a GPS driver tracker (Domino’s 2015).

These variables include the integer ratio which custodies the long-term circumstances of the society which are embedded in social, political and various other organizational arrangements that lay down the fundamentals of risk valuations. Some of discussed in detail

Dominos is well renowned for their pizzas so in that context the process would start when the products (base, vegetables, oregano, chili flecks etc.) are acquired from the suppliers. Thereafter the essentials are transported to the destinations.  Later, orders are taken on the counter and order number is allotted to customers. The details are fetched and cash is collected. The order summary is passed to the back office operators and cooks. After the preparation, the prepared order number is displayed on the screen and customer collect the order via the drive-thru window. The working components involve purchasers and supply personnel, preparation cooks, frontline staff and waiters for the cleaning of sitting area.

Customer convenience and technology

There is a high concentration of the authority and responsibility within each designed hierarchical level of the company. The staff needs to report to the shift in charge officer who in turn needs to report to the assistant manager. The shift manager is lawful to report to the general manager. Both the horizontal and vertical level of defragmentation works (Grueneberg, Schneiderman & Chiu, 2016). Each department has several other subcategorizations in it.

The decision making flows from top to bottom within the organization depending on the relative post, the degree of autocratic power is granted.  The procedure is automated and strict in nature to ensure the easy and quick experience for the customers. All the decision regarding the policy of new additions and price fixing, discounts, coupons, changes in taste and flavor i.e. topping and crust lie in the hand of top most directors and owners. The implementation of designed policies in an exact manner lies with subsequent levels below. Leadership is put into existence by the formulation of a team leader who in turn is responsible for the acts of members of the group.

In actual terms, both the formal and informal channels are used to seek information and communicate it. Generally, a major part of communication on the daily basis is conformal in nature. The working environment involves a lot of vocal communication in addition to hands-on wisdom takes place at every single phase. The parameter is developed upon the channels of politeness and sociability.

The control is binding on the practices followed by the workers at Dominoes. The act which is played on the part of the employees should be within the boundaries and set principles of organization. They are controlled on the job through the standardization procedure which entails direct supervision and extending of punishment and penalty in case of any deviations. It keeps a check on quality to be maintained.

Moreover, for the employees with extraordinary performance and skills, the rewards are extrinsic in nature along with certain benefits (i.e. paid hourly rate). The employees are also paid separately for the overtime hours.  The reward system is also extended to the loyal customers such as rewards on online order done, is stored under the head of “rewards”. For example- a piece of the pie reward program allows earning 10 points per day in the context of online orders of value $10 (Laudon & Laudon, 2016).

Domino’s Pizza Franchise

The following step is defining what all system will be exaggerated in order to attain the desired goals using the managerial classical strategy.

This includes the quality remarks which are earned since the period of practice. The system rechecks the quality matches the benchmark which is stated on the Domino’s official page. Sometimes the high-speed delivery of service might cause unwanted quality errors which in turn could generate dissatisfied customer (Syed, 2016). The quality system minimizes the chances of bad and unhygienic quality.

The performance of management is defined to measure the performance of the specific employee. It can be done by gauging the number of units produced per hour or number of delivery made within the guaranteed time limit in a day. Nevertheless, the agenda lies are not all orders have the same specification. The consumer satisfaction survey has been considered as one of the most accurate mechanism for managing the performance of the individuals within the business corporation.

There should be well defined and clearly stated written and oral channels of communication. The procedure should be strictly followed by each employee working at Dominoes. In the event of non-occurrence it can lead to disruption, frequent breakouts and halts, accidents and mishappenings which can be hazardous to both health and safety. Also, it declines the productivity.

Howsoever, the information keeps a peer view on the day to day dealings of the workplace. The total sales revenue are entered into a system which later on is compared with its cost. The information regarding the management of human resource like pay, attendance, leaves, incentives etc. are also properly recorded. This generates a crystal clear layer of reliability and trustworthiness.

The talent of the workforce in practice is designed to make optimum use of the resources. Due to the event of the uninterrupted rotating door of people which leaves the organization along with new entrants, the system is expected to be affected. Generally, low skill level brings out high revenue ratio creating the excessive burden on human resource professionals. The right person has to be placed at the right place at right point of time.

The new ideas and projections are visualized and applied into practical terms at this stage after checking their sound validity. The transformation begins here to remain competitive in the market. For e.g.: 30 minutes free delivery scheme, tracking of food online, various coupons and vouchers, one pizza free on purchase of two etc. (Elmore, 2016).

Grievance Redresser Mechanism

The newly embedded plans are designed in the format of the project which is headed by the experts. It provides a roadmap for the execution of work on practical grounds. Also, it needs to be highly flexible in nature so that modifications could be made as and when desired.

It takes into account the various risk associated within the working of organisation. Likewise, the hazard associated with the documentation and requirement of trading in incongruities with the deceitful activity. Proper checks are curtailed to minimise the degree of risk.

The cleanliness and hygiene is given due importance at Domino’s units.  The food served should be fresh and healthy in nature so that never it becomes a factor causing food poisoning. Domino’s makes it obligatory for the staff to excel in food handling certified course as well. Wearing of hand gloves and hair cap is also must (Altabbakh, AlKazimi, Murray & Grantham, 2014). Safety measures are regulated so as to restrict any major mis-happenings or incidental consequences.

Segment income approach has been considered as a leading strategy towards the respective base pay. The distinguished base pay is discussed in detail above. In comparison to Pizza Hut (rivalry competitor), the former pays employees worthy hourly wages along with separate overtime charges as well (He, Zha & Li, 2013). The salary range differs as per the designation of workers. The lower level workers are paid comparatively low because of insufficient experience and knowledge.

There is also the mechanism of pay for knowledge system for internal switching to fill up the ladder (Bernardin & Wiatrowski, 2013). The extraordinary workers are paid for the additional efforts exercised on their part in the particular work allotted. However, the retention rates are very poor on an average basis. Efforts should be inclined more on employee recognition programs, accessibility of scholarship and occasions for advancement.

These include the non-monetary benefits and perks granted to workers at Dominoes. Likewise, there are indemnification and medical benefits, fuel and housing welfares. The program also comprises of retirement income and a savings plan for the individuals and also for the higher and management authorities.

The foremost goal is to retain the quality employees with distinguished skills in the long run. It also boosts the energy and morale of the workforce. The monetary benefits provide the mental peace and satisfaction. Moreover, the overall productivity is increased which in turn increases profit as well.

I would suggest Domino’s needs to maintain the defined benefit pension plan. Also, the number of perquisites reserved for the highest executive officer’s class should be maximized in order to retain them for a longer period. There should be the formulation of total compensation mix wherein minimum wage rate is increased. There shall be the policy of internal switching within the organization which would cut down the new hiring cost.

Uninterrupted training session and knowledge should be imparted to new skills and technology. There should be proper feedback system at managerial level. Fairness and transparency should be there to ensure employee satisfaction and this can be done by making implementation of some strict norms and regulations such as no discrimination act, fair pay scale policies and all other basic rights. Moreover, for maintaining transparency the management staff can involve the low and midde level staff in decision making process.

References

Altabbakh, H., AlKazimi, M. A., Murray, S., & Grantham, K. (2014). STAMP–Holistic system safety approach or just another risk model? Journal of Loss Prevention in the Process Industries, 32, 109-119.

Bamburry, D. (2015). Drones: Designed for product delivery. Design Management Review, 26 (1), 40-48.

Bernardin, H. J., & Wiatrowski, M. (2013). Performance Appraisal. Psychology and Policing, 257.

Campaign. (2018). Domino’s Pizza news, articles & analysis. Retrieved from https://www.campaignlive.co.uk/tag/brand-name/dominos-pizza/10676

Careers at dominoes. (2018). Explore Dominoes. Retrieved from https://jobs.dominos.com/dominos-careers/explore-dominos

Dominoes. (2015). Technology and innovation. Retrieved from https://www.dominos.com.au/inside-dominos/technology

Domino’s jobs. (2018). History. Retrieved from https://jobs.dominos.com.au/our-company/history

Elmore, A. (2016). The Future of Fast Food Governance. U. Pa. L. Rev. Online, 165, 73.

Furness, V. (2009). Domino’s pizza – voluntary benefits plan. Retrieved from https://www.employeebenefits.co.uk/issues/october-2009/case-study-dominos-pizza-voluntary-benefits-plan/

Grueneberg, S. A., Schneiderman, J., & Chiu, L. Y. (2016). Drafting Franchise Agreements after Patterson v. Domino’s: Avoiding the Minefield of Vicarious Liability and Joint Employment. Franchise Law Journal, 36(2), 189.

He, W., Zha, S., & Li, L. (2013). Social media competitive analysis and text mining: A case study in the pizza industry. International Journal of Information Management, 33(3), 464-472.

International Franchising with Dominoes. (2018). the overview. Retrieved from https://biz.dominos.com/web/public/international/international-franchising

Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education India.

PayScale, Inc. (2018). The average hourly rate for Domino’s Pizza Employees. Retrieved from https://www.payscale.com/research/US/Employer=Domino’s_Pizza/Hourly_Rate

Syed, I. (2016). SWOT analysis and operation management decisions of Domino’s pizza. Retrieved from https://www.grin.com/document/337519