Case 7 Perfect Bizzeria

Case 7 Perfect Bizzeria

Case Study: Perfect Pizzeria

To develop an effective incentive plan that can motivate the Pizzeria employees

Case Analysis and Proposed Incentive Plan

    - For night managers

      Perhaps this is the group of people within the Pizzeria that needs to be properly motivated most. They are holding certain management responsibility but not really willing or able to make use of it. They are supposed to be the bridge – to effectively communicate both downwards and upwards in day to day operation but they are indeed failing to do so.

      One of the root reasons of above is that might managers only receive the same pay as other regular employees. According to Adams’ equity theory of motivation, being paid by the same package (same rewards/outcomes) while carrying additional responsibility (larger individual efforts/inputs) would be perceived as “felt negative inequity”. Therefore instead of making expected deliverables, night managers were actually motivated reversely to behave in certain ways (in this case - not performing management responsibility) so that equity situation could be restored.

      To properly motivate night managers, additional rewards shall be designed for their particular functionality. The pay standard for night manager position needs to be set differently to normal employees at the overall Pizzeria organization level. It can be a higher wage (say, 2-5% higher than normal employees), more benefits (say, transportation/housing allowance, insurance, or full-time securer contract), or even share of bonus (which will be elaborated further at later stages). Through this “procedural justice”, the “organizational justice” can be achieved.

      Upon the perceived equity being restored, night managers could become the weakest link of the cohesiveness among them and regular employees, since the higher corporate rank would create the differentiation in between. If feasible, the Pizzeria manager should consider sharing a portion of...