COURSE: HUMAN RESOURCE MANAGEMENT

TOPIC: DUNKIN’ DONUTS’S AND DOMINO’S PIZZA:

Training for quality and hustle

SUBMITTED BY SUBMITTED TO

Team -5: Prof. K V Prabhakar

Manjunath M Faculty, HR Management

Mithil C
Neil Vachaspati
Nikhil Vishnu Prakash
Rachan Pandit
COHORT-7
FACTS OF THE CASE

 High quality product at impressive speed

 Same training challenge by both the companies
 Train a very young and inexperienced workforce
 Highly decentralized training function
 On-the job training for hourly employees
 Training by store managers or franchisee owners
 Performance standards are demanding
 Control by corporate training staff on store managers to provide training to
hourly employees
 Provide videotapes
 Provide corporate produced training posters
 Six month MIT program for store mangers training
 Management trainees also sent to regional training center
 Franchisee owners conducting MIT courses
 Rigorous training programs for all prospective owners
 Dunkin donuts conducting demanding training programs for its franchisee
owners
 Six weeks of training at Dunkin Donuts University in Braintree
 Four weeks in production training
 Last two weeks focusing on financial aspects
 Developing employee management skills
 Former store managers or district sales managers conducting training
programs
 Training of hourly employees is totally decentralized
 Franchisee owners serve as trainers
 Receive help from corporate office
 Experienced store managers are trained as store manager trainees
 Store manager trainees trains store managers
 Program and materials developed by the corporate staff
 Company dropped its 12-weeks training program at company headquarters
 Annual training costs decreased
 People related management skills are emphasized
 Annual turnover rate for hourly workers is considerably less than the industry
average

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 ANSWER TO QUESTIONS

Q 1. What are the strengths and shortcomings of a decentralized approach to

training managers and hourly employees? Discuss
A 1. Strengths to train hourly employees:

 On-the job training is provided which give them more practical knowledge
 They can earn while they learn
 Performance standards are demanding so their training makes them more
tough to handle work load
 Video cassettes and posters are provided by corporate staff so that they can
learn through those videos and apply that in their jobs

Shortcomings to train hourly employees:

 Constant monitoring is not done by corporate staff due to which franchisee

owners can skip some training sessions
 On-the job training means employees are not aware of their corporate
headquarters working. Employees should see how their corporate staff actually
works
 They are trained by store managers; therefore, they are bounded only to store
operations. Their career will be bounded only up to restaurant operations.

Strengths to train Management trainees:

 Their training program provides them with practical as well as theoretical

knowledge
 They are trained in corporate, therefore, they are aware of how corporate
headquarters actually work which will sharpen their skills
 They have been trained by experienced store managers which give them skills
to handle workload as well as they come to know about different experiences
which they are likely to face in store operations

Shortcomings to train Management trainees:

 After completing their education, employees already know many things about
theoretical aspects, so no need to provide them with 6 months program and
spend a lot on just training of store managers
 After completing 6 months program, if they are not able to clear the test, they
fail which give them insecurity in the job.
 They should be taught something about customer satisfaction, time
management, risk management because these are the important things related
to restaurant industry

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Q 2. Develop a plan for determining the training needs of the hourly paid staff of
a Domino’s Pizza franchisee?
A 2. After recruiting hourly paid staff in Domino’s Pizza, that staff must be evaluated
on certain skills. They should be given a feedback form or a short objective type
question paper in which questions related to restaurant operations must be asked.
Through this we can judge that how far they are aware of store operations because it’s
not necessary that each and every employee should be trained, may be some of them
have work experience in working with other stores. After evaluating that question
paper, we can make group of those hourly paid employees according to their skills.
The employees who are having same type of skills should be grouped under one team.
After that, for 2 weeks those employees should be asked to work in a store without
giving any training and store manager should monitor that how are they working and
what additional skills they need. After 2 weeks, again we can group the employees
who are similar in skills and we can make a list of certain areas in which every group
has to be trained. And according to that we can provide them on-the job training. The
time period for this training will be different for different groups because it depends
upon what skills they need. Through this training program we can cut down our cost
for training as well as we can save our time and polish all the employees equally.

Q 3. In your opinion, why was the turnover rate among management trainees in
Dunkin’ Donuts’s centralized program so high?
A 3. In their centralized program all store managers were given training in corporate
headquarters by corporate executives. Corporate executives are not meant only to
provide training. They also have other work to do related to management of the
company. So, to train store managers they will charge more. Company has to give
increment in their salaries to train store managers. Moreover, if managers are trained
in corporate headquarters, they have to provide them with meals as well as boarding
and lodging facility in company quarters only which will again increase their cost of
training. But in decentralized program, they have to train experienced store managers
as store manager trainees only once. After that, newly recruited employees can be
trained by those experienced store managers in the store itself which will decrease the
cost of training as no need to give additional incentives to corporate executives.
Moreover other additional costs will also decrease. Company has to provide only with
the instruction manual to trainees and rest will be done by experienced store managers
in stores only. So definitely, turnover costs in centralized process will be much more
as compare to the decentralized process.