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Meishkafadiah Alkaff

Mohammad Fardani Dzulhikam

Sandy Renaldy
Permada Wirapranata
• Type :Public (NYSE: DPZ)
• Founded :1960
• Headquarters Ann Arbor, Michigan
• Key people : Tom Monaghan,
David Brandon, Chairman & CEO
Industry Restaurants
• Products Pizza  · sandwiches  ·
pasta  · chicken wings · desserts
• Revenue ▲ $1.462 billion USD
• Employees 145,000
• Website
• Low Pay
• Part Time
• Closely Supervised
• “High Turnover”
• In the case of Domino’s Pizza
– Multitasking
• Main Problems
– Domino’s is Facing employee high
employee turn over rate
• Store Manager leave every 3 – 6 months
• Lower level employee turnover rate 300 %
– Company Policies avoid increasing basic
• How they Handle the Problems
– Recruit better store manager by
implementing new test
– Improving employee skills by training the
weak points
• How they Handle the Problems (Cont.)
– Providing facilities for store to see
their records
– Better financial incentive
– Better improvement training
• Why is Domino’s Facing High
Turnover Rate ?
• What is the Impact of high
turnover rate to Domino’s
• Is it really effective not to increase
the basic wage oppositely like
starbucks does?
• What is really needed to reduce
employee turnover rate?
• Compatibility with they work reviewed
from their basic education, interest,
experience, compensation and any
• The Amount of salary and fringe benefits
with any others benefit (career, training
& management development)
• Relationship between human either
vertical and horizontal (superior
treatment and relationship with
subordinate and colleagues).
• Low Pay (obvious)
• Lack of relationship between boss
and worker.
• Mean colleague + boring days
• Lack of leadership element (note
that store manager leave ever 3-6
• Main Problems is : “Store
• Opportunitis to get employee who’s have better
experience and ability
• Company can employ new employee who’s got
new idea’s yang memiliki ide-ide baru which can
create inovation in exist governace work
• Can decrease the average of employee work
period which can reduce the cost of salary that
must be paid.
• Can give a chance to talented and high
• If the employee who’s quit the job has a poor
performance or employee of a gadfly for the same
team working in the organization
• Employee Repo cost
• Learning cost
• What they out for worker are more less than
they get from new worker.
• Level accident new employees, usually tend
to be higher
• There is a production that has lost during
• Production equipment that cannot full
• A lot of waste because of the new employees
Impact On Domino’s

• It’s cost money to recruit, hire, and

train people, and undercuts service
when inexperienced employees
don’t work as efficiently
• The Financial Cost is estimated as :

– $20.000 for each store manager leave

– $2.500 for each hourly worker leave
• Distinct characteristic of fast food
business were, high dependable on
low-paid workers. Small problem
could trigger worker to seek
another job in another company.
• Some company using approach of
giving high initial salary.
• Domino using different approach,
where they didn’t raise salary
• They believe working environment
and quality of store manager play
important role in turnover rate
• They believe when store manager
position turnover is high, it will has
ripple effect to the layer below
• So they try to focus on recruit high
quality store managers
• Domino’s is selectively hiring store
managers, train them, and
motivating them with rewards
• They coach and demand store
managers to create better working
– Recruit Better Store Manager
– Give Store Manager Better Tools
– More Meaningfully Incentify Store
• The Role of a Store Manager :
• better working environment
• To motivate other workers or
• Increase job involvement among
• The Role of a Store Manager :
• To create better working environment
• To motivate other workers or
• To Increase job involvement among
• Dimension
• 1. Extraversion : Outgoing, talkative,
sociable, assertive
• 2. Agreeableness : Trusting, good‐
natured, cooperative, softhearted
• 3. Emotional Stability : Dependable,
responsible, achievement oriented,
• 4. Emotional : Stability Relaxed,
secure, unworried
• 5. Openness to Experience :
Intellectual, imaginative, curious,
• Recruitment
– Managerial and Financial Skill is
– People Management
• Development
– To enhance managers weakness
which assessed during recruiting
– Continuous Development guided by
franchise owner or headquarters
Supporting Tools for
• Managers need to be equipped and
weaponized with better tools to provide
easier managerial handling on their
• The weapon include :
– Better IT system
– Better FAQ system
– Better managerial control system
– Better business process/operational
Supporting Tools for
• Computerized Tracking System
• FAQ Management
• Domino’s Pulse System
• Domino’s Next Generation Store
• New Domino Next Generation Store
System developed by Microsoft
Key Benefit of The system
• Total cost of ownership. The solution is
designed to lower the total cost of
ownership by delivering superior price
performance and reducing administration
• Lower Risks. The solution is designed to
help address industry mandates and avoid
unnecessary risk and related costs
• Security. The solution is designed to
minimize risks, Microsoft is optimizing and
better securing solutions that reduce
complexity while supporting rigorous
service levels. The solution also monitors
fraudulent activity
Sustainable Incentive
• formal scheme used to promote or
encourage specific actions or behavior
by worker.
• The scientific literature also refers to
this concept as Pay for Performance.
• Domino’s is using the concept of
sustainable incentive to improve
worker’s job involvement
Incentive program
Type of Incentive :
– Employee Incentive
– Consumer Incentive
– Dealer / Channel Incentive
– Sales Incentive

Type of Reward :
– Cash Reward
– Non Cash Reward
– Non Monetary Reward
Rewards for Managers &
• Employee Stock Option Plans
Company introduced program that grants
stock options to about 15% of store managers
based on criteria such as sales growth and
customer services
• Suggestion Rewards :
– A simple ‘Thank You’ appreciation of good work
– Treat your employee with respects
– Start birthday program
– Have employee field trips
– Casual lunch with staff
• The result is significant: employee
turnover rate declined to 107%.
• Far below previous, and average
• In case you
haven’t figure it
out : IT IS

• How they handle the problems

– Recruit Better Store Manager
• Explain the importance of store manager
• Role model of store managers
– Give Store Manager Better Tools
• What effective tools
• How can the Tools Help
– More Meaningfully Incentify Store
• Stock Option etc.