Employee Empowerment Case Study: TGI Fridays

Employee Em positionment Case Study TGI FridaysMajor shifts in subscriber line betivities in the recent forms due to globalizations encounter meshn Large (LEs) and Small middling Scale Organizations (SMEs) either National or Multinational towards an intense warlike environment. To respond to these global commutecates organizations be straight wricking diametricly as comp ard to past and last plainly non the least the rivalrous advantage that a partnership obtains is through its node assistant activities. As The cost of attracting a current guest is five times bigger compargond to the cost of confineing a current guest (Hart et al, 1990). When an organization is not competent to provide the desired satis detailion to nodes, the customer becomes aggressive and besides leaving the organization aid becomes a tool to disengage customers in his domain.When a caller fails to provide a serve, the dissatisfied customer whitethorn provide ostracize word-of-mouth. (Chakrapani, 1998) call options that 100 dissatisfied customers cost a company 1600 to 2500 potential customers.To retain the customers it is of paramount importance that the employees of an organization atomic number 18 in line with the organizations objective with regards to the successful operation and in this regard todays managers unclutter sure to convince employees that their personal interests be in agreement with the goals of the organization. (Hellriegel et al, 2005) explained that in todays troth for excellent employees, focus has to advise more than than high pay to win employees trust and motivate employees. As precise aptly discussed by (Latham and Gary, 2004) that the roughly difficult aspect of being a trifle team hauler is pauperism of team members. Work teams may be more successful in achieving organizational goals if their members ar authorisation to do their jobs.2. SIGNIFICANCEFor achieving organizational success employee authority and capital punishment atomic number 18 at the core with regards to these concepts. Job satisfaction amongst employees talked about in relation to employee empowerment and contextual action. Ugboro and Obeng, found that in an organization sceptered employees demonstrate job satisfaction at higher levels in contrast in organizations where employees are not empowered. (Ugboro and Obeng, 2000)When the team leader demonstrates the appropriate disciplines Employee motivation stomach be an easy undertaking the simple disciplines encourage employee motivation to happen naturally. Motivation, whether it is self motivation or employee motivation, is the trigger to act. The competitive business market nowadays stresses on swift solutions as there a shortage of time in making decisions. To stick with, todays complex organizations charter the collaboration of multiple followers (Yukl, 2008) managers at all levels who may dare a leadership role contingent on agencyal demands. As a result, empowermen t has become a big motto in numerous organizations world over. By raiseting the shared vision and parkland goal creates an environment in which other employees potful control themselves i.e. empowered whether they acting for the objectives of the organization or not.As Kotter said that the vision makes the work more important to employees that envisioned by the common vision, which at the same time stresses their own set (Kotter, 1990). In entrap to get people move in the same moderateion that leader chooses, he/she needs to align them instead than organize them (Kotter, 1990). Empowered employees are more go outing to serve the customers his in worm quickens customer needs responses which in turn result in customer satisfaction (Bowen et al, 1992). Empowered employees self-efficacy levels increase as they are in a position to evaluate the best approach to perform tasks. (Gist et al, 1992)In a Service organization the employees are of primary signifi hindquartersce in view of the fact that they are the ones who are the face of the organization and the demeanor they react and interact with the consumers is an indicator to the customers about the organization. The better the avail and eccentric interaction the customer will moderate the more positive image will be portrayed also since good organizations are empowered as they have to make on the spot decisions this may prompt a negative image also as its a 2 management process.3. RESEARCH OBJECTIVE3.1 AIMSThe idea of the arena is to streamline the corporate objective through better flavour management by having empowered employees. Whether it is fashion, hospitality, air duct or the food pains, consumers first and foremost demand is property. And this is not area specific. At the end of the day, companies are attracting consumers. However, the underlying challenges facing companies are the maintenance of quality to enhance consumer base.3.2 RESEARCH QUESTIONFor this study the company chosen is TGI Fridays eating place.The purpose of this query is to ascertain the extent to which TGI Fridays restaurant practices employee empowerment in their organization, and how it impacts on service quality and customer satisfaction.The record of the food service indus canvas touches directly on the satisfaction and induce of the consumers. This uniqueness may account for the closer scrutiny and monitoring to ensure that certain standards with regard to employee empowerment that would otherwise have been voluntary in other sectors are observed.In this paper, we will delve into the inside teaching of employee empowerment in the restaurant business. The core study will revolve around TGI FRIDAYS flavor worry through employee involvement that will ultimately help the brand r from each one greater heights.According to (Strauss et al, 1998), the research question is a statement that identifies the phenomenon to be studied. It tells the readers what the researcher exclusively wants to k now about this subject.How does TGI Fridays empowering of employees impacts on the quality of service and customer satisfaction in their restaurant?4. Literature Review4.1 fit Quality centeringWith the advancement in communication technology, transportation and other technologies the world has shrunk into a global village. Products and services true in a country are now widely accepted in other regions of the ground as well. Many companies like TGI Friday have been developing marketing strategies to fulfill the need, in an increasingly globalized market, for several(prenominal) years. TGI Friday is one of the companies that are being recognized by and whose brand names are familiar to most of the people in every region of the world (Austins Radisson Hotel, 2006)Quality has different connotation to different people. Employees incline to think like their peers and think differently like those at other levels. This suggests that to infuse quality in the organization will be over overmuch easier if it is embedded across the board.Many Japanese companies have demonstrate a high apotheosis of produce quality, reliability and customer service through TQM (Garvin, 1988). Such goals require continuous improvement procedures to be established inside the company. The relationship between market share, scratchability and quality has always been studied.According to Buzzell and Gale (1987) one factor above all others-superior quality drives market share and profit is virtually guaranteed. Companies that are committed to Total Quality worry, apply it in all areas of the organization, because customers are twain external and internal functions to the business. Quality bum not only reduce cost, it also helps in acquiring the differential advantage. As we can see in the following illustration, there are two types of quality quality driven at customer and conformance to organizational quality standards. The Quality Circle is as followsPrice Advantageclient-Driven QualityMarket ShareProfitability and GrowthCustomer ValueCustomer Attributes and Design SpecsSpecification QualityProductivityLower CostLower Cost of QualityInvestment in Improved QualityFigure 3.1 Quality Circle, Source Joel E. Ross, (1996). Total Quality Management Text, Cases and Readings. Second Edition.Total Quality circle implies that the customer is the top priority for all business decisions. It takes into setting the satisfaction of customer as a key determinant of success in the long run. sometimes business decisions lead to the demise of an entire enterprise when quality is shown the door, while compromising on customer requirements.According to TQM theory the best way to improve organizational output is to continually improve performance (Dale, 1996). The phenomenon of Total Quality Management is no more another statement for organizations. It has become a reality. In the cut-throat corporate world, companies find themselves in hot water if they compromise on quality, c onsideration the fact the consumers now have more alternatives at their disposal.4.1.2 Buzz Word QualityEvery organization has a set of standards and beliefs that they adhere to. Quality is the buzz word in the modern day marketplace. Every organization claim to infuse the best quality in its products and services. In our daily lives, we distinguish different products and services as excellent, average or mediocre. The precise definition of a quality product or service is that it provides customer more than what they were actually looking for at a prescribed price.According to Crosby, quality is the outcome of a carefully constructed culture. This has to be the fabric of the organization. (Crosby, 1988)Organizations operational in modern markets call for an exceptional quality in their products and services. In the case of restaurants, the initiative is that products and services must be readily avail adequate to(p) to customers. Essentially, organizations focus on the concerns of customer needs, through a well developed mechanism (Kotler, 1991).A good management at a restaurant will instill harbor that will lead to the creation of admirable products and admirably service, which in turn fulfills customer expectations and satisfies them.Quality is really an attitude built on a wisdom. Its not the product or company itself. The product is sold by the company. (Aaker, 1991), asserts that the brand of that product is bought by the consumer, predicated upon the consumers perception that the brand he or she buys of a product differs sufficiently from another brand of the same product to warrant choosing one special(a) brand over another. And, by the way, warrants paying the price for it.Customers look beyond the functional benefits of a restaurant to the overall experience it offers. Johnson stated that people bank check in relationships for two major reasons because they want to and because they have to. (Johnson, 1982)This recommends that service loyalty is influenced by satisfaction and interpersonal bonds.The interplay of these two sets of influences impacts on operational, marketing and human resource management strategies, including the nature and form of empowerment best matched to the service offer. (Cowell, 1984) claims that different organization provide different service features, which in the long-term impacts the operational management, marketing offer to customers and the way that front line employees are managed.4.1.3 Consumers Charge QualityConsumers tend to associate quality with price. But a newfound Cornell study found out that higher price tag may create a more positive view of products, but consumers may not necessarily purchase them. (Lowery, 2009)Some studies contribute the idea that higher price leads to a more superior quality some case examples are studies by, (Dodds, et al 1991 Gabor, 1988 etc). On the other hand, other studies have found that a high price may not always be related to the perceived superior q uality. (Peterson 1970 Peterson and Jolibert, 1976).Such inconsistent findings have prompted the refinement that a general price perceived quality relationship does not exist (Zeithaml et al, 1988). It is very much clear that quality cannot alone be associated with the price tag. It all depends on the users preference, the availability of different alternatives and the situation that compels the consumer to use the product/service. Many customers seek their prescribed branded services when it comes to restaurants. The branded organization meets customers certificate needs by making the service offer precise and by delivering a standardized service constant with customer expectations. At the same time umteen customers are looking for some substantiation of their individuality.(Holpp, 1990) asserts that the problem with the delivery of services is that it is delivered at the customers interface. If a problem exists, it is already too late. The subtle aspects to service and the het erogeneity of services pose difficulty for both customers and organizations supplying services to them. TGI Fridays provides a service which creates a sense of social connection to others. The brand also offers its customers a prospect to dish out with the ambiguity matte by many service consumers.Thus, the customer can personalize the experience and knows what to expect. The following extract from an denomination beef ups the aforementioned argument.Lori Voth asserted that the biggest problem with most of restaurants is that the food looks awesome in the menu, or on TV, billboard, but once it gets delivered to your table, your impression fades away.However TGI Fridays manages to do it perfectly every time. Not only do the photos and descriptions make your mouth water but the actual meal always lives up to its promise. This is one restaurant where you can judge something by its cover, or picture.4.1.4 Quality Infuse LoyaltyIt has been observed that some restaurants have a more l oyal following? Why is that people are more attracted to it? Because, the experience is worth remembering.From the very first interaction with the staff, an impression is made. This tactual sensationing creates an impression in the mind of the customer. Many restaurants and TGI Fridays in circumstance identify the value of customer service. Loyalty is an essential part of doing any business. No business can survive without establishing a dedicated client base.Studies have shown that companies that are rated high by their customer can attention close to ten percent more, than those rated poorly (Sonnenberg, 1989).For managers, motivating a separate of employees is not a straightforward task. Each employee is a different and unique individual with dissimilar personalities and attitudes. Surprisingly enough, in nastiness of its evident importance to all businesses, relatively little is known about it. Experts have struggled to define precisely what being a loyal customer means, an d too little has been made in determining what factors lead to customer loyalty. So, although customer loyalty is considered the back-bone of business, it still take a breathers a mystery.To be truly effective and be able to repeat business, a brand must fabricate an ablaze connection with its customers. And this is what the managers strive to bring home the bacon. activated branding is connected with the wisdom of brands and leads to an excursion filled with precious hints, ideas, and lessons from the customers. How to infuse brand loyalty in customers and address the trenchant constituents of branding as a product of perceptive thinking is another challenge for the managers. Haddadj (2003) considers that to create an effective workplace in vagabond to motivate employees to perform well is very much in the interest of organization.Managers pivotal role in initiating transformation in a restaurant is to succeed in improving organizational performance.4.2 What is Employee Empowe rment?A pleasant and professional environment helps in the increase of the capabilities of employees. On the other hand meager staff quality can be very pricey for any business. Empowerment is defined as the capability of employees to exercise judgment and discretion in their work and to contribute more fully in decisions affecting their work (Potterfield, 1999). Change, regardless of its magnitude is a thought-provoking exercise. In case of employee empowerment, the challenge becomes even bigger as a high level of excitability is involved.In any organization, employees are the assets. Human Resource is vital to a corporations growth and prosperity is gaining and retaining competitive advantage. Therefore a motivated and contented workforce is more likely to achieve on many fronts. Loyalty and commitment from the staff cannot be controlled. In Harvester restaurants, employees work in autonomous work groups without the direction of an immediate supervisor (Ashness et al, 1995).O rganizations tie staff loyalty and commitment to its policies and actions. Therefore the management should deal with this be intimate prudently. (Fedor et al, 1989) concede that the employees who find the work more creative will react less to criticism.Total quality management and the strive for zero defects places issues of quality at the center of every managements reflection. Employees who are empowered are in greater control (Conger et al, 1988). Employee empowerment has its fair share of criticism too. (Purser et al, 1998) in particular are wary of practices, calling it pseudo-empowerment (p. 132). They assert that it is simply putting a new face on an old scheme. Many authors believe it is more self-directed. (Hitchcock et al, 1995) note that the practiced empowerment is a status rather than a process of actively participation. However, those who promote this concept are of the view that it works and is related to the organizations performance. (Piore et al, 1983) believe the organizations will gain superior competitive advantage by focusing on employees as assets and by removing unnecessary levels of management.There are four different, but overlapping managerial motives for introducing empowerment (Lashley, 1995). These are empowerment through participation, through involvement, through commitment, and empowerment through delivering.Each of the aforementioned forms is applied differently with the nature of empowered given to the employee.Organizational theories also attest to the fact that the fit involving business strategies and organizational characteristics is a key determinant of organizational performance (Lorsch et al, 1973). Many authors like (Barry, 1993) say that empowerment is a universally defined term. The idea of empowerment is to engage the employee in different aspects of the service operation. The empowerment model of (Lashley, 1997) is as followsSource (Lashley, 1997)4.2.1 Empowerment Self-ActualizationAbraham Maslow has hinted out at the five levels of human needs. The need of self actualization is on top of the pyramid. The Maslows Hierarchy Model is as followshttp//dinamehta.com/blog/wp-content/uploads/2007/10/800px-maslows_hierarchy_of_needssvg.pngSourceNetMBA.comEmpowerment is in fact fulfilling ones need of self actualization. It is difficult to develop an environment that allows team players to find opportunities for self-actualization, and to be respected and feel empowered. But in the hospitality industry it is deemed important to allow employees to take responsibility of their actions.(Barbie et al, 1991) believed that a note of personal efficacy and self determination in nurtured among employees.They are supposed to feel that they have power and can make a difference. They have choices and can exercise it. (Johnson, 1993)4.2.2 Employee empowerment in the hospitality industryEmployee empowerment is particularly relevant in the hospitality industry because employees have the maximum amount of direct customer contact. Levels of customer satisfaction can be improved by empowering employees to handle guest requests or problems immediately, rather than having to report to their managers .Managers fundamental task in a restaurant is to improve performance (Haddadj, 2003). Organizations operating in different industries have different set of management rules.The risk is high where the service act is directed at the minds of the people. Caring attitudes by managers succeed in bringing forth employee dedication and approval. (Black et al, 1996)4.2.3 TGI Fridays RestaurantThe organization structure at TGI restaurants is somewhat traditional and typical for the hospitality business. At Fridays a standardized layout and decor is balanced by an extensive menu which allows the customer to decide on what they should consume within the range.In many ways the offer is comparable to mass customization in manufactured products. The customer knows what to expect, and can personalize the experienc e through the extensive menu.4.2.4 TGI Fridays OperationsThe Restaurant Manager is responsible for the handling of personal matters of the unit. The Front of house operations is managed by the senior service manager. The quality manager is in charge of the operations in kitchen and stores. People are trained for specific jobs that include jobs at bar, in the restaurant and the kitchen. Some employees play a supervisory role as shift leader. Trained hosts receive guests and the expediter is responsible for ensuring the speedy action of meals from the kitchen. To ensure quality and consistency in the service offering is a sight harder to accomplish than in other sectors. This category of service firms is unique since the organization is not isolated from the customer the latter must physically be present throughout the service act, unlike other sectors such(prenominal) as manufacturing (Fitzsimmons and Fitzsimmons, 2004).These are recognized as the critical success factors. (Boynt on et al, 1984) define critical success factors as those things that must go well to ensure success for a manager. They imply that these administrative areas must be given individual attention to bring about higher performance.The thorough interaction between the service organization and the customer in person has profound quality implications for the organization. In the case of TGI Fridays where employees are delivering a mass customized service, they need to exercise consultancy skills in their interpretation of customer service needs. This helps in increased motivation in the workforce. This in turn will able the employee to reach future performance standards (Nemoroff et al, 1979).4.2.5 Employee Empowerment at TGI FridaysTGI Fridays foster an environment of employee empowerment. They have created an environment where employees are nurtured to take responsibility for their actions. So, performance at TGI Fridays requires more than merely taking order and delivering to the custom er (Ritzer, 1993). This is very important to managerial aspirations for their approach. Employees need to be able to interpret, and then deliver, the customer service required.At Fridays employees are managed through a cluster of approaches to enhance perfection in work. When it comes to special events, it really shows that everyone in the staff is an important player. For instance during the week People generate for their shift, do their shift, and go home.But at special occasions like Christmas, Dub-Dubs, door hosts, bartenders and managers alike stay behind after working. Everyone make sure that customers when they check in feel comfortable about the place. The slogan is to be trusted and respected. This is the managers duty to be an effective communicator and devote time to everyone equally. The natural skills and endowment funds of employees will be realized and utilized to the organizations effectiveness (Ripley and Ripley, 1993).TGI FRIDAYS support the staff to be hands on with customers, but at the same time assesses the character and mood of the guests in order to achieve appropriate level of interaction. They have designed a harbour they call as the WOW Book.4.2.6 The WOW BookTGI FRIDAYS has a book known as WOW (WALK ON WATER). This book for staff lists the extra stuff the employees can offer to the customer. One such example that comes into our mind is lighting a cigarette for the customer. Before the start of each shift, employees are involved in a board game through roley. This role play is establish on service encounters. The is based on the culture and philosophy of the organization.The objective of this is to inculcate each employee with the values of the organization. Unlike bureaucracies, empowering organizational structures are collaborative team based organizations (Beyerlein et al, 2003).4.2.7 TGI Fridays PassportThe management at TGI Fridays have created a flexible employee rotation program once the training is completed. This program is known as the TGI Passport. This dodging enables employees to work in other branches, states or countries when there is a vacancy. This is an excellent example of empowering employees through flexibility, frankincense ensuring loyalty. This scheme not only retains staff but also reduces training costs.4.2.8 The Five Star determine at TGI FridaysTGI Fridays has identified five star values to symbolize its philosophy and culture. Each value is presented as a triangle and each side of the triangle must be balanced in order to deliver the service the Fridays way. In addition to these stars values, the three peal of the perceived guests are also taught to the staff. These rings represent the core offerings of the brand along with the consistent standards of service. They also entail an environment in which individual employee is encouraged to work to their maximum potential.An engaged employee has a natural drive for innovation, efficiency and a talent for structure encouraging rel ationships (Ganguly, 2003). The five star values empower employees they own their job and want to achieve better because they feel rewarding for doing so.4.2.9 The Service EncounterTGI Fridays calls its service encounter as an unusual experience. Employees are encouraged to think that TGI Fridays gives its customers a value for their money. ForTGI Fridays incorporate elements of standard procedure manuals laid down production and presentation specifications. Test on product knowledge is used to ensure that front line employees had the unavoidable knowledge to be able to advise customers.Dub-Dubs are allowed to offer advice to customers as to how to structure their meal. Furthermore, they also have to identify the customers service requirements and deliver what is needed. (Lashley, 2000) notes that normative control in TGI Fridays is one of the tools to retain employees and encourage them to take ownership of the service encounter.Service target times at TGI Fridays call for the st arters to be served within sevener minutes of receipt of the order. Main course items must be served within twelve minutes.A reckoner programme helps managers to check the timing of these service times. Dub-Dubs are trained to work in routines. They check with the customer regularly after three minutes of delivering the meal. The front-line staff is encouraged to develop a sense of ownership of the service encounter. (Spinalli et al, 2000) establish that empowerment leads to both employee and customer satisfaction.Managers are keen to make sure that the employee is able to meet up customer service requirements, answer queries, offer advice, and present the appropriate performance, and maintain company sales targets. The nature of the work requires a particular type of individual, someone who relates well with customers.4.2.10 Empowerment and Employees performanceEmployee performance requires, more than the traditional acts of greeting, seating and serving (Hochschild, 1983). Custo mer satisfaction, attitude towards the customer and meeting the order in a specified time tops the list at Fridays. The bar staff at TGI Fridays provides both the showmanship needed to command a premium price. Work teams and information sharing are the building blocks of employee empowerment.Empowered employees own their jobs can assess their personal and corporate success. The purpose of empowerment is often to mold confidence between employers and employees with the end goal of continuous improvement (Khan, 1997 Lawson, 2000).Workplace know-how is a combination of the buttocks skills and the workplace competencies. The competencies cannot be achieved without a strong base but the two can-and should-be learned simultaneously. Employees are judge to control themselves internally by being nice, cheerful, smiling and courteous to customers even when the customer is rude and ill-scented (Royle, 2000). The performance of the unit is measured by a system known as a WinCard.4.2.11 The inveigle CardTGI Fridays used wincard which stands for Whitbread in Numbers identity card. This is a communication tool that helps in bolster the performance. It uses the scorecard approach. Wincard measures a common set of scores across each unit, brand and at a group level. This enables employees to know better what they are doing and ensure that all employees are working towards the same company goal. It provides a reliable, tangible way of both motivating them individually and as a unit and identifying key areas for improvement.This tracks performance on a monthly basis against the agreed target and an in-store wall chart which display to employees the year- to- conflict results and monthly results via a color coding system. A traffic light system measures these scores. Green measures a result if the performance is better than the anticipated performance. Amber measures a performance that is better than last year but worse than the anticipated financial plan. Red signifies a performance that is just getting worse.4.2.12 invitee FeedbackGuest Feedback is an important component of TQM. Hospitality businesses do conduct these surveys to get hands on information about the customers experience. The questions asked are about the customer sense of well-being and the experience as an individual. These questions measure the emotional attachment of the guest with the brand. Companies like TGI Fridays gain the feedback and ideas of their associate through these surveys. They empower their employees and they in turn try to score highly in guest and employee satisfaction surveys. It is a win-win situation. The recognition identifies the optimistic approach of the company. At Fridays, recognition comes in different varieties ranging from the award of eye-catching pin badges to trips abroad for high performing management teams.4.3 Customer Relation ManagementIn todays increasingly competitive market, it has become increasingly difficult for businesses to remain compe titive. With an increase in competition, organizations are focusing more and more on increasing customer satisfaction, as it is the key to remain competitive in the market. In restaurant operations, such as TGI Fridays, it is projected that new customers cost 11 times more to generate than repeat customers (Sellers, 1990). These economic points of views for empowerment further reinforce claims that employee turnover and bureaucratic control systems will decrease operating costs.Quality is a strategic issue and many aspects of quality management entail strategic thinking within the organization about their customers and their requirements. The value of long term relationships in services marketing has only recently been known. External environments can alter rapidly and companies may not be able to change accordingly (Zacharakis et al, 1999). Employees at TG