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A review of the literature on employee empowerment
A review of the literature on employee empowerment
A review of the literature on employee empowerment
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The Bubba Gump Shrimp Company, a national chain of franchised seafood restaurants, prides itself on great customer service and affordable high-quality food, and knows that to meet their goals, they need a culture that attracts and retains the best employees (Bubba Gump Shrimp Company, 2011). In an industry notorious for high employee turnover and low job satisfaction (Prewitt, 2000), the Bubba Gump Shrimp Company reduced “management turnover from 36% to 16% in 2 years” (Aamodt, 2010, p. 397). What intervention opportunities exist for restaurant operators to reduce turnover of both managers and restaurant staff and more importantly, what resulting performance improvements can operators expect? While openly competitive pay and benefits are a central requirement, in addition, operators need to create a culture that challenges employees and provides opportunities for growth, in an environment that encourages the integration of work and family life.
The average annual turnover rate for casual full-service restaurants like Bubba Gump Shrimp Company was 85% in 1999, down from 117% in 1995, and while the industry showed significant improvements, restaurants experience turnover rates more than double that of other retail establishments (Zuber, 2001). The high turnover rates contribute to the nearly $4.3 billion in annual foodservice industry training costs (Zuber, 2001), while Bliss (2001) estimates the cost to replace a manager to be between 200% and 250% of annual compensation, making the issue of employee selection and retention a critical business issue to control bottom line costs in the low-margin business. The Bubba Gump Shrimp Company’s choice to focus on management retention was a savvy decision, because in restaurants, ...
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...t Review, 31(1), 72-92. doi: 10.5465/amr.2006.19379625
Kacmar, K. M., Andrews, M. C., Van Rooy, D. L., Steilberg, R. C., & Cerrone, S. (2006). Sure everyone can be replaced...but at what cost? Turnover as a predictor of unit-level performance. [Article]. Academy of Management Journal, 49(1), 133-144. doi: 10.5465/amj.2006.20785670
Kinicki, A., & Kreitner, R. (2008). Organizational behavior : key concepts, skills & best practices (3rd ed.). Boston: McGraw-Hill Irwin.
Prewitt, M. (2000). Studies find operators create employee turnover problem. [Article]. Nation's Restaurant News, 34(36), 8.
Wharton, A. S. (1993). The affective consequences of service work: managing emotions on the job. Work and Occupations, 20(2), 205-232. doi: 10.1177/0730888493020002004
Zuber, A. (2001). A career in foodservice: High turnover. [Article]. Nation's Restaurant News, 35, 147-148.
Stephen Boos has worked in the food service industry for over 30 years. He started as a bus person and subsequently trained as a chef’s apprentice. Steve’s mother believed that a college education was something that everyone should receive. She felt that a college degree was a good investment in Steve’s future. In 1976 at his mother’s insistence, Boos moved to Northeastern Ohio to attend Kent State University where he earned a bachelor’s degree in business administration. After graduation, Steve began working for East Park Restaurant as a line cook. Using his education as a foundation, Steve made a point to learn everything he could about running a restaurant, from cutting meat to the bi-weekly food and beverage orders. His versatility, keen business sense, and ability to control costs resulted in Steve’s promotion to General Manager, as role he has held since 1995.
Within the Brookfield’s Restaurant organization there is a problem of having a high turnover rate, which is dependent on employee’s motivation as well as how much they feel they are involved in the company culture. Since the restaurant is a fast paced food service industry that requires employees to be capable of handling the pressure of dealing with many customers’ demands while also providing a high level of service to each guest which can be hard for many, making them less motivated to work. Also, the company culture is important by making the employees feel welcomed in the company and to help support them while on the job, so as to the employees want to stay on the job and not wanting to leave. We will provide an analysis showing employee’s work motivations and involvement in the company culture to determine if these factors are the cause of the high turnover rate.
The United States is nation dependent on restaurant industry, over the past 60 years the allocation of the family food dollar toward restaurants has grown from 25% in 1955 to 47% in 2012. Bubba Gump, a young restaurant company (founded in 1996), leveraged a brand based on the Forrest Gump movie (1994). Scott Barnett, President and CEO knew his brand would gain immediate recognition. In the highly competitive hospitality industry all restaurants are looking for the competitive advantage, capturing as much of the food dollar expense. In 2001, Mr. Barnett fully understood that most new brands must differentiate themselves from similar concepts by quality food, excellent customer service and consistency across all units. (Case study: Bubba Gump Shrimp Co. 2007) He facilitated a program centered on a “culture of care and concern for people”. It the late 1990’s, Bubba Gump was facing a management retention issue and was positioned for aggressive growth. The combination did not align. We will diagnose and provide an aligning strategy for reducing management and employee turnover, as well, specify career paths for management, empowering Bubba Gump Growth.
McShane, S. and Von Glinow, M. (2012). Organizational Behavior: Emerging Knowledge, Global Reality. 6th ed. McGraw-Hill Higher Education, pp.103 - 131.
Economic growth and employee turnover is one of the most critical issue facing corporate leaders today. As a result there is a shortage of skilled workers. We have explored several aspects of the workforce stability. The employee retention issue continues in the face of unprecedented churning in the employment market. Human Resource Managers are provided with a wide range of tools to control employee turnover. Workforce stability can be a HR Manager’s competitive advantage in these turbulent times. This is one of the hottest topics for corporate leaders in all fields in the United States and globally.
Driving factors to high turnover and workplace dissatisfaction in my experience were due to be poor leadership and job opportunity. When leadership has an open and evaluative mind, employees can openly make recommendations to make positive changes. The Navy often does this through command climate surveys. As you have
Based on what I learned in Chapter 10, interventions that I would make to reduce management turnover would be to include various and multiple strategies for promoting employee job satisfaction and commitment. What this means is that organizations today are concentrating on retaining good employees, so motivational techniques play a big part in an organization’s success. Turnover is time consuming and costly. I have never understood the purpose of the “revolving door” at some of the law firms that I have been employed other than a dysfunctional management. As Barry Schwartz stated, “society needs to be mentored by wise teachers.” (Ted2009).
Without understand the negative impacts of turnover, a company may be placing itself in a position that will ultimately lead to their demise. We are going to solve our problems and set our company on the path to success, a success that is not only reflected in our bottom line but also our employees’ morale.
The economists like March & Simon in 1958, Burton & Parker in 1969, Stoikov & Raimon in 1968, and Pencavel in 1970, explained the turnover from the perspective rational decision-making based on cost/benefit analysis (Stags & Dunton, 2012). Nonetheless, their description of turnover was too narrow. They additionally ignored explanation of the turnover process (Rodger, Griffeth, Peter, & Hom, 2004). While, sociologists focusing on work structure, and psychologists like Lyons in 1968 and Farris in 1971, pointing to employee anticipations and behavioral commitment (Stags & Dunton, 2012). Whereas, nursing turnover researchers have utilized all three views but more emphasize on work environment and psychological aspects (Stags & Dunton, 2012).
Zarowin, S. (1991). How to find and keep the best employees in the 21st century. Journal of
Voluntary and involuntary turnover have an effect on organizations. Rapid changes in job descriptions, organizational structures, and inter-organizational competitiveness increase the importance of studying turnover and its relationship with organizational change. According to Leana and Van Buren (1999), "the loss of key network members can severely damage an organization 's social fabric and perhaps eradicate its social capital altogether." When businesses lose a high number of employees, problems can occur, costing the company time and money. Some of the costs incurred are associated with training, drug testing, physicals, and orientations to hire replacements that may take several months to learn the job and to achieve competency. There is a saying, “Good help is hard to find---and harder to keep”. This saying refers to good organizations trying to reduce turnover when the competition for retaining good employees is intense.
Gustafson, C. M. (2002). Employee turnover: a study of private club in the USA. International Journal of Contermporary Hospitalith Management, 14(3), 106-113.
Phillips and Connell, A. O. (2003), Managing Employee Retention: a strategic accountability approach. Amsterdam; Boston, MA; Alexandria, Va.: Butterworth-Heinemann.
673), retention management must be based on three types of turnover, voluntary, discharged, and downsizing. Not all businesses are freighted by turnovers, for some it is the way of life and cost is built into the budget. However, for others any type of high turnover can be detrimental for company profit, employee wage and benefits offered. First, let’s take a look at voluntary and involuntary turnover that affects retention. Voluntary turnovers are caused by many different reasons. Turnover may result from topics such as job dissatisfaction, job mismatching, knowing that job opportunities are plentiful. Two reasons that I will discuss more are micromanagement and employee loyalty. Like stated before in the introduction, when employees are dissatisfied, possibly due to being placed in an area that doesn’t fit with their skill set, one is more likely to seek new employment. Another part of turnover is discharging and downsizing. Discharge is just that, members being discharged due to discipline and job performance. While downsizing turnover is a result of business being overstaffed (Heneman III, Judge, Kammeyer-Mueller, 2015, pg. 675). There are also other reasons for voluntarily employee turnover, such as generation differences when it relates to employment. The current generations are more likely to see a job as one piece in their life puzzle rather than as the first, indispensable anchor piece without
...ded once they see that the sales will be increasing and tips will be larger. Good staff will increase good public relations which will result in better business. Marketing a restaurant is the most important part in running a restaurant. If a restaurant is not marketed, no one will know about the restaurant causing it to lose money to operate forcing it to close down. Prices on the menu should always be appealing to the restaurant target market and set towards the products on the menu. It is essential that a restaurant develops its staff to the fullest, for a strong staff creates better sales and the public is pleased .