Policies in Management Diversity at Denny’s
Denny’s Corporation is a franchisee-owned, full-service restaurant chain, which operates over 1,000 restaurants through out the world (Nichols, 2012). A major instances caused to Denny’s progressive enlargement in 1993 when two class-action lawsuits for discrimination where filed. The lawsuits were accusing Denny’s for repeated civil rights violations, primarily against African Americans (Mor Barak, 2011). Among many discriminatory acts, Denny’s has been accused of requesting only African Americans costumers to pay for meals first when the other customers pay after meals. In addition, Denny’s has been scrutinized for what is known as “Blackout” periods, were the number of African American patrons was limited, either by simply denying employment or delaying seat or by calming the restaurants was too full (Mor Barak, 2011). Furthermore, Denny’s discrimination further exacerbated by the fact that Denny’s had only one African American franchisee and had no minority suppliers in the early 1900s (Mor Barak, 2011). Denny’s denies many of the discrimination claims. However, the top managers know they need to do something about it. So in 1995, Denny’s parent company, Flagstar, hired a new CEO Jim Adamson who is famous for reviving bad companies when they are in terrible position. In his first move, Adamson create a chief diversity officer position and hired Rachelle Hood-Philips who was also famous for creating successful diversity management programs for Fortune 500 companies. Along with Rachelle, Adamson implements many programs and policies to diversify the workforce. Among these policies is that no tolerance for any discrimination. In addition, Denny’s provide trainings for current employees and security guards on how to deal with problems. Through this actions, By he end of 2002/03 fiscal year Denny’s not only increased the number of minority employees, but also increased franchise owners to 120 and increased its...
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