Organizational Behavior Domino’s pizza

The company has large economies of scale, and their average revenue over the past five years is $1.675 billion USD. The target of the organization is to be an exceptional franchisee and be the best pizza delivery company in the world. Dominion Pizza appreciates and respects the culture of its contributors, customers, employees and even suppliers and hence is committed to a culture inclusive mode of operation. Their market dominance is founded on ensuring that they meet all the customer needs, and every team member feels appreciated and valued. Their outstanding customer services have continually ensured that the shareholders make profits. In 2005, Domino Company was suffering an extremely high rate turnover which is a common problem for most fast food companies. The rate at which the store managers were being changed was alarming since a new store manager was being hired every six months. The constant flux of store managers was, in turn, contributing to a 300% employee turnover in every store (Wall street journal, 2005). The high rate of employee and manager turnover led to a reduction in production rates, and the company’s profitability was reduced drastically. The cost of hiring employees was very high and the period between the departures of an employee to the time a new employee was hired incurred a high cost to the company. The Dominos spent approximately $ 2500 when an hourly worker resigned and $20000 when the store manager left. Such expenses were incurring avoidable costs to the company and hence the CEO Mr. Brandon had to think about devising strategies on the reduction of the dismaying turnover rate. During this period, the Domino was recruiting, appointing and coaching about 180,000 employees every year since the turnover rate was approximately 158%. The high rate of turnover was being caused by a number of problems although the main problem was employee wages.

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