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Case Study Analysis:
Why Dine Equity’s CEO Julia A Stewart Manages Like a Teacher?

Summary:
Julia Stewart is an extremely successful businesswoman who brought in the techniques that her father used in teaching his US history class into the world of restaurant management. Julia takes her skeptical father to several Taco Bell restaurants to show him how she has been using techniques learnt from watching him. She identifies the importance of crediting employees for their work and thereby increasing their moral. Julia concludes on the employees becoming more enthusiastic about their work when they feel their involvement in a learning process and the benefits of the employee’s enthusiasm is passed on to better serving the customers. Questions for discussion:

1. What elements of the performance management cycle in Figure 9-1 are evident in Stewart’s comments? When you look at an organization that you work for or any organization that you know of, there are few questions that pop in your mind such as: * How competitive the company is?

* Is the company dynamically capable?
* What are its market and its resources?
* What is the capital structure?
* How much is invested in the company and who are its stakeholders? * How is the industry environment?
* What factors affect Employee’s performance and job satisfaction and what measures are taken for improvement? etc. Out of all these factors, employee’s performance and job satisfaction are the most important factors as employees’ form the foundation of an organization; profits and growth of the company mostly depend on them. Most of the managers are mostly focused on achieving numbers and are target-oriented, that they concentrate too little on nurturing job performance of the employee. In this chapter, we look at the most essential concept of “Performance Management”. So, what is performance management? Performance management is the continuous cycle of improving job performance with goal setting, feedback and coaching, and rewards and positive reinforcement (“Organizational Behavior”, 2010). It’s about doing things the right way.

Fig.1: Performance Management.
Job performance of the employees does not work without a proper life-support system. It depends on structure of the organization, organizational culture, job design for the employee and supervisory practices. The situational factors of Performance management are both individual and organizational. A manager has to set goals, monitor, provide feedback, coach and reward employee to benefit the organization on the large scale which not only means profit but also improvement in the performance of the employee and the company as a whole. Main aspects of Performance management are hiring the employees well suited for the job role and training the employees by giving them right job knowledge with required resources. The efforts to maintain performance management should be put in by the employee as well. As we can see from “Maslow’s hierarchy of needs” pyramid, it can be only be achieved when the employees have the need for “self-actualization” to put in their skills, abilities and knowledge to best use to improve their job performance to achieve the desired outcomes.

Fig.2: Maslow’s hierarchy of needs.

Fig.3: Performance management cycle.
Performance management is a dynamic and continuous cycle that requires day to day attention. The elements of the performance management cycle that are evident in Stewart’s comments are: * Motivation and Quality of supervision factors.

* Rewards and positive reinforcement & Feedback and coaching. Julia A Stewart focused on the aspects of motivating her employees by praising them for the job well done and supervising the chain of restaurants by getting involved in the actual work place (kitchen and behind the counter). The reward here is the word of appreciation given to the employee for the right job and the method of coaching she has...
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