Case Study Example

Case Study al Affiliation) Delicious Deli is a large fast-food restaurant based in Des Moines, Iowa. Although it is performing excellently in terms of revenue and sales, it has some employee and managerial problems. The restaurant has one manager, two assistant managers, and two night managers. The manager works under an area supervisor. Delicious Deli’s system is designed in such a way that food and beverage costs and profits are structured based on a percentage. If the percentage of food damaged in any way or unsold is very low, the manager receives a bonus. In case of a high percentage the manager does not get a bonus. In case of a burned pizza by the oven person or an employee mistake, the cost is supposed to be borne by the individual responsible. Due to peer pressure, the night manager seldom bills the erring worker. Instead, the company bears the loss, and the error remains undetected until inventories are taken at the end of the month. That is when the manager discovers that the percentage is high and that he will not be receiving a bonus.
To make sure employees do not play a part in raising the percentage, the manager adopted some measures in the last 6 months. Previously, all workers were entitled to a free pizza, free salad, and unlimited soft drinks for every six hours six hours of work. The manager decided to raise this figure to twelve hours (from six). However, the employees had grown used to the six-hour benefits and therefore whenever they could they exploited the manager or his assistants’ absence to their benefit. Although the night managers are in complete control of all operations in the evenings, they are not as respected as the manager or his assistants. This is because they receive the same wages as regular employees, are realistically the same age or sometimes even younger than regular employees, and cannot reprimand other employees. As a result of this, apathy grew within the company in the last two months. There was a clear divide between the manager and his workers, and he decided that either the workers who were discontented would resign or they would have to abide by the new rules. This culminated in a rash firing of employees, who were quickly replaced by new workers. The business suffered due to the loss of key personnel.
Due to the large employee turnover the manager was compelled to take part in food preparation activities, which is a violation of company rules that required the manager to be a supervisor and nothing else. However, it has not taken long for the new personnel to be influenced by the ones who remained. Once the manager reverted to his supervisory role the percentage started rising again. This time he stopped any benefits that the employees enjoyed (no free pizzas, drinks, or salads). Most employees were forced to stay because of the high unemployment rates.
Still determined to arrest the situation and maintain his bonus, the manager posted a notice on the bulletin board, stating that if the percentage did not reduce all employees would be subjected to a lie detector test. All those found guilty of intentionally wasting or taking food or drinks would be fired immediately. This move has failed because employees know all of them would have to be terminated if they are subjected to a lie detector test. This would leave the manager in an even worse situation. Even before May’s unsold/damaged food percentage has been computed, the manager knows it will be high. He has received word from one of the night managers concerning the employees’ views on the notice. What he did not expect is that the percentage would hit an all-time high. That is the current state of affairs at the business.
Questions
a) What do you think is the problem at the company? Summarize the main facts.
b) Do you support the manager’s steps to curb the problem of high rates of unsold/damaged food? Explain.
c) Rate the manager based on managerial best practices.
d) If you were the manager, what would you do differently?
e) What is your opinion on the future of this business? Read More