Case Study: Opening Your New Dunkin’ Donuts Locations

Case Study: Opening Your New Dunkin’ Donuts Locations

MGMT 330: Management for Organizations

A new District Manager must considered many factors to the execution of structuring, staffing, and operating five new Dunkin Donuts locations. The purpose of this paper is to discuss the job design, organizational design, recruiting methods, training strategy, and performance appraisal process. Effective planning will ultimately determine the success of the new district manager and the success of the new stores/restaurants.

Job Design

Job design includes job analysis, job description, and job specification. “Job design takes place when managers determine the tasks that need to be completed, the people who will do them, and the selection criteria that will be used to choose employees and place them on the job” (Baack, Reilly, & Minnick, 2014). For the norm, the human resource department handles discerning what tasks can be completed for each level of hierarchy in the organization based on the skill set needed for each task. Job design involves identifying appropriate job-related knowledge, skills, and abilities to ensure that assigned work can be completed successfully” (Baack, Reilly, & Minnick, 2014) Human resources constantly work in collaboration with the management teams to asses if the current job design is effective and if not to determine what and how can it improve. “Job design benefits businesses by improving worker performance and output. Well-designed jobs can boost an organization’s prospects in market competition” (Kivak, 2017).

Job Analysis. The process of assigning tasks to jobs is termed job analysis. For example, a new Dunkin Donuts’ district manager understands the tasks that need to be assigned involves customer interaction duties, supervision, operations, accounting, and sales. In regards to customer interaction such as, taking food/beverage orders, preparing orders, cleaning tables and equipment, and other similar tasks within a basic skill set are handled by crew members. The crew members “are generally responsible for delivering great and friendly guest experiences. They prepare products according to the operational and quality standards and serve them with enthusiasm in a clean, fast paced environment” (DD IP Holder LLC, 2017) . Next, the district manager needs to employ supervisors to the crew members. The supervisor roles are titled- shift leaders, assistant managers, and restaurant manager.

Job Description. Job Description is important because it provide workers with clarity regarding which tasks they are and are not assigned to do. When it comes to management roles each tier has certain permissions allowing for some task to be completed but others need further permissions. For example, a shift leader “typically set goals, provide job assignments, and motivate” (DD IP Holder LLC, 2017) the crew members but they are not tasked with career development of crew members. The next tier in supervisor role, assistant mangers, do have the task to develop crew members. The assistant manager is also tasked with inventory and daily store operations. In the job description is the breakdown of the same and also the different tasks both the shift leader and assistant manager are allowed to do. An example of a task both roles require is regulating the quality of service that is provided by the crew members and coaching them if those standards are not being met.

Job Specification. – Lastly in the job design is the job specification. Job specification is a document that identifies the eligibility requirements or qualifications needed to perform a job. (Baack, Reilly, & Minnick, 2014) The requirements or qualifications needed are but not limited to prior wok experience, certifications, licenses, degrees, or permits. The highest tier of management in each Dunkin Donuts location is the restaurant manager. One requirement for the restaurant manager is a high school diploma or equivalent. This minimum level of education is required since the restaurant manager is tasked with financial accountability for cash flow and responsible for submitting all sales and operational reports to the district manager. Job specification particulars is usually published on the job posting along with the job description.

Organizational Design

“Organization design is the process of structuring the organization in a way that facilitates employee productivity and supports the organization in reaching its goals” (Wienclaw, 2013). In a franchise company as large as Dunkin Donuts the organization design is already laid out and the district manager does not need to invent one. There are a few type of organizational design, Dunkin Donuts is classified as mechanistic. “Mechanistic organizations are characterized by the high use of rules and procedures, a greater number of levels in the organization, and formal relationships between workers” (Baack, Reilly, & Minnick, 2014). This is evident by the standardization of each location, the formalization of daily business, and computerization of functioning. “Standardization is the use of a series of job titles that are exactly the same, and the workers perform the same activities. Formalization refers to the presence of rules and procedures. Mechanization/computerization measures the reliance on computers and technology to maintain operations (Baack, Reilly, & Minnick, as cited in Blau & Schoenherr, 1971) Standardization ensure that all locations in the district are doing the same tasks at each level of the hierarchy from crew members, next shift leaders, then assistant managers, and lastly restaurant managers. Formalization allows for all tasks to be completed efficiently and streamlines the customer experience among all Dunkin Donuts locations. The acceptance of orders placed on the Dunkin Donuts smartphone app is an example of mechanization/computation to not only maintain operations but also increase sales. A district manager needs to be aware of each component of a mechanistic organization design to establish a successful franchise and uniform all locations within the territory. According to Ruth Wienclaw (2013), it is important to note, organizational design is a iterative process. As the organization grows and changes, the design may need to be reconsidered in order to keep the organization competitive. The mechanization/computation component of the organizational design is most likely the first to be examined and induce change for a competitive edge. However, that design change would be need to be approved by the owner and/or the brand if the district manager finds the change necessary to the growth of the franchise locations.

Recruiting and Selection Methods

As stated by Baack, Reilly, and Minnick (2014), recruiting should be ongoing and systematic using both internal and external sources. Ideally, shift leaders and above will be relocated to fill the new positions as well as the promotion of current qualified employees. The utilization of experienced personnel to manage each location will facilitate the launch and initial operations due to familiarity of procedures. Another benefit to internal promotions is boosted employee moral and fresh energy to the work environment. Crew members, on the other hand, will be recruited using external sources of recruiting such as the internet or job fairs. The selection process is based on criteria from the job specification of a crew member. Crew members must demonstrate cleanliness and multi-tasking skills. They must also have a basic level of communication skills to deliver exceptional customer experience and understand management’s direction. These factors among others are considered during the screening process and influence which candidate is selected. “Selection processes are normally based on the applicant’s level of education, amount and types of experience, special physical skills, special technical skills, personality characteristic, and legal requirement” (Baack, Reilly, Minnick, 2014). The highest level of screening is the interview usually conducted by the restaurant manager or the assistant manager. The manager conducting the interview needs to be trained because the wrong question could violate laws against discrimination. Interview questions need to be focused on education, work history, and skills the candidate possesses. For example, an interviewer can ask the candidate questions regarding their proficiently in the English language but cannot ask what is their national origin. Since “crew members are generally responsible for delivering great and friendly guest experiences” (DD IP Holder LLC, 2017), the candidate’s level of energy and enthusiasm should be assessed during the interview and considered when deciding if an offer letter will be extended.

Training and Performance Appraisal

Training. Training is teaching a new hire the tasks included in the job description. Training begins at orientation during which time the new hire is introduced to the staff. This formal introduction reestablished lines of authority and promotes employee comradery. Further, policies and expectations are communicated at this time, in detail, to avoid accidental mistakes when interacting with customers and other employees. After orientation, the “buddy” or “shadow” system is used to train new hires. This system pairs an existing employee with a new employee to make the transition as smooth as possible. (Baack, Reilly, & Minnick, 2014) The new hire observes the actions and mimics the existing employee as the tasks assigned. The existing employee corrects the behaviors if need be and provides feedback to the manager on the new hire’s progress. This is process of training is the method known as demonstration and it occurs on the job.

Performance Assessments. “Performance assessment consists of assessing an employee’s performance and providing feedback” (Baack, Reilly, & Minnick, 2014). Two common types of assessments are objective and subjective. Manager level employees are assessed on both types. First, the sales and profits of their location within the first 90 days of opening will determine if praise or coaching is appropriate in their objective appraisal. This type of appraisal measures results based on numerical data. Subjective appraisals, however, includes assessments of traits and behavior, such traits can include attitude, initiative, and leadership. (Baack, Reilly, & Minnick, 2014). These behaviors and traits can be assessed by observation and customer feedback. Crew members are mostly assessed with subjective appraisals. “Performance problems common to many employees are likely areas to address through training. Once an organization has identified a performance deficiency, the next step is to determine whether the deficiency should be addressed by training” (Sims, 2002). If retraining corrects the behavior the employee will continue their employment, if not, termination will be considered.

Conclusion:

The job design, organizational design, recruiting methods, training strategy, and performance appraisal process are all important factors for a new District Manager to consider when opening new locations. To sustain a high profit margin and quality customer experience, the District Manager must continuously reexamine all factors and make adjustments as needed. The successful execution of the job design, organizational design, recruiting methods, training strategy, and performance appraisal process will ultimately determine the success of the businesses.

References

Baack, D., Reilly, M., & Minnick, C. (2014). The five functions of effective management (2nd ed.). Retrieved from https://content.ashford.edu/

Kivak, R. (2017). Job design. Salem Press Encyclopedia,

Sims, R. R. (2002). Organizational Success Through Effective Human Resources Management. Westport, Conn: Praeger.

Wienclaw, R. A. (2013). Organization Design. Research Starters: Business (Online Edition),