Rummassah - Bakery Cafe in Dubai - Essay Example

? Job Rewards inserts his/her s Rummassah is a bakery cafe in Dubai which began its operations in 2005 and has since then enjoyed the loyalty of over a million customers. The company is a limited liability company that sells beverages such as coffee, shakes, juices as well as confectionary such as assorted biscuits and Arabian sweets such as Baklava, Ajwesh, Barasek, Cashew fingers and dried fruits. Rummassah has over 5 outlets in Dubai with a total of 250 employees who are the backbone of the company. The company is known for its high quality products and excellent customer service. However, as competition becomes tough the company has had to renew its rewards policy to retain its valuable employees and prevent the already high turnover. Research suggests that both intrinsic and extrinsic rewards are necessary in motivating employees. Traditionally, extrinsic rewards that are derived not from the work itself were considered sufficient. These include salaries, bonuses, perks, benefits, commissions and cash rewards (Thomas). The tall hierarchies and close supervision allowed managers to keep track of whether the policies are being followed and could either grant or hold back these rewards based on performance. However, workers today prefer self-management rather than close supervision and get motivated from being empowered which gives them a sense of belonging to the organization (Thomas). Hence, intrinsic rewards are largely based on the satisfaction that workers derive from the task at hand (Thomas). Therefore, intrinsic rewards entail greater commitment and initiative on the part of workers who take pride in doing their work. Although the importance of extrinsic rewards is diminishing, they are can by no means be neglected. As per Maslow’s theory of hierarchy, lower order needs such as pay and job security must first be satisfied before workers become motivated by higher order needs such as belonging, self-esteem and self-actualization. Therefore, both intrinsic and extrinsic rewards must be considered in employees’ job rewards package. Rummassah’s major problem in recent years is its high employee turnover and low level of employee morale that has often been reflected in bad attitude towards customers and job switching to competitors’ companies. Greater insight revealed that Rummassah was paying too little monetary incentives to its best performers and too much to their inefficient workers which led to the latter’s disillusionment. Most rewards were not customer focused as a result of which even poor performers were getting the same monetary incentives as good performers. Furthermore, rewards focused on length of service or seniority tends to turn compensation into entitlement. Furthermore, insights revealed that part-time employees were not been provided with stock options which made them switch to other jobs, thereby increasing costs for the company. Employees also complained about monotonous work and lack of social gatherings to break the high pressure and stress during peak periods. Considering that almost 40% of the workforce was expatriates, they could not understand local Arabic language which made them fearful of dealing with customers. Finally, there were complains of long waiting times and lack of coordination amongst the cafe staff by disgruntled customers. In view of the above problems, the organization must implement a rewards program that addresses the above issues. Performance in this case shall be based on the achievement of tasks in the job description as well as relations with other employees. Firstly, good performers shall be recognized through their picture being put up on the company’s notice board under the caption “Star of the month”. The best performer will receive a bonus of AED 300. Furthermore, the name of this employee shall be featured on the company’s website. However, research shows that simply praising the employee’s work through thank you notes has more value than employee of the month awards (Bersin, 2012). Keeping this in mind, the “Star of the month” reward shall be complemented by simply showing gratitude to the employee for his good performance by the CEO himself/herself. Furthermore, if an employee becomes the top performer for 3 consecutive times he/she shall be entitled to a paid trip to Malaysia for 5 days with one dependent. As for the free rider senior employees, a performance evaluation shall be conducted after every 3 years which shall determine whether or not the seniority based rewards will be continued. Additionally, a system of customer feedback shall be implemented and waiters that receive the highest rating shall be entitled to free lunch with his/her family at a renowned restaurant. Also, staff that brings a minimum of 5 repeat customers per month for 6 months shall be promoted to the role of team leader within their respective teams. Not only will it ensure sufficient individual motivation but also cultivate the motivation amongst workers to work as part of a team. This is expected to ensure better team cohesion and a happier staff that shall be reflected in better coordination and fewer conflicts amongst employees. Cross-training shall be provided to all permanent employees including informational sessions on how the tasks involved in all positions. After this has been done successfully, employees shall be rotated between jobs every 4 hours per day. This means that the waiters would get to work as baristas as well as those who put sweets in boxes for takeaways. The system of customer feedback suggested above already allows consistently well performing workers to work as leaders of their team. Expatriate employees would be provided with a 6 month long training program upon their recruitment which shall enable these employees to get a basic understanding of the Arabic language and understand key terms used in customer service. Those who are able to complete the training in shorter periods of time shall be rewarded with a fast-track learner certificate along with a permanent contract for working at the company. This will encourage employees to take active interest in learning the language rather than viewing it as merely a course that needs to be completed. Off-the-job interactions may be particularly important for employees working in high stress environments such as this. As a result, employees shall be entertained with free food on Sunday lunches that shall take place on the last Sunday of the month. Giveaways such as discount vouchers and gifts shall be part of this event. Furthermore, during these lunches a small ceremony shall take place whereby the top five performers of the month shall be presented with a certificate. A casual dress code shall be observed with managers engaging in a friendly, one-on-one interaction with all employees including baristas and waiters. This shall ensure a more open culture whereby customers feel a part of the company and feel valued. Before implementing this program it is highly recommended that before implementing the new rewards program the company conducts a survey to investigate the reason why employees are leaving their jobs and what they expect from the company. After receiving their feedback, it is strongly recommended that Rummassah revamps its rewards program as suggested above and takes a holistic approach to preparing the same. Too little focus on intrinsic rewards such as tying rewards to better customer performance, enhancing workers’ capabilities such as that reflected in language development, fostering team working skills and having open interaction between managers and employees results in lack of workers’ motivation to improve performance, and consequently, disgruntled customers. These rewards are expected to reduce workers’ frustration and enhance their contentment with the company. All in all, Rummassah must involve workers by providing greater variety of work, putting customer service at the epitome of reward policy and reduce seniority based rewards for ensuring a fair and transparent rewards system. References Bersin, J. (2012, June 13). New Research Unlocks the Secret of Employee Recognition. Retrieved from Forbes: http://www.forbes.com/sites/joshbersin/2012/06/13/new-research-unlocks-the-secret-of-employee-recognition/ Thomas, K. W. (2002). Intrinsic Motivation at Work: Building Energy and Commitment. California: Berrett- Koehler Publishers. Read More