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1. What are your thoughts about the different approaches taken by Starbucks and Domino’s to reduce turnover? Given these strategies, which company will be more effective in the long term? Explain your rationale.
The major difference between the strategies of the two organizations is that Starbucks includes higher-than-average starting wages as one tool to fight the turnover battle, while Domino’s takes a different perspective. Domino’s “is willing to try all sorts of tactics to retain hourly employees – except paying them significantly more.” Domino’s CEO David Brandon sees pay increases as “not a long-term solution.” Students will likely disagree.
2. Why do you think a store manager has greater impact on employee turnover than neighborhood demographics, packaging, or marketing?
Interpersonal value conflict is often at the core of personality conflicts – a common source of employee turnover. To the extent that Brandon is successful in more selectively hiring managers, coaching, and rewarding (with stock options and promotions) who can effectively address interpersonal value conflicts, lower levels of turnover should result. Additionally, Azjen’s theory of planned behavior suggests additional ways managers can influence the behavior of his or her employees. Managers can influence employee turnover by doing or saying things that affect attitudes toward turnover, subjective norms regarding turnover, and perceived control over the turnover behavior (the determinants of intention in Ajzen’s model).
3. How would you describe David Brandon’s affective, cognitive, and behavioral components of his attitude toward turnover? Be specific.
Attitudes have affective, cognitive, and behavioral components. The affective component contains the feelings or emotions one has about a given object or situation. When told that the company’s turnover rate was 158%, Brandon’s response reflected the affective component – “Honest to God, I almost fainted.” The cognitive component.