Case-study-jollibee (1)

CAMARINES NORTE STATE COLLEGE Graduate School Daet, Camarines Norte

In partial fulfillment of the course requirements Master in Business Administration Development Issues and Problems in Business Administration

CASE OF JOLLIBEE FOODS INC. DAET BRANCH: “How Employees’ Working Performance Affect the Customer Satisfaction”

Submitted by: DON OLIVER JEREZ

Submitted to:

PIMEH C. TOLENTINO, DPM

2019

“How Employees’ Working Performance Affect the Customer Satisfaction”

This case study provides background and rationale for the study about how employees’ working performance affect the customer satisfaction. It will also focus on the customer satisfaction towards service quality and company image offered by Jollibee. By fulfilling the customers’ expectations and consequently being different from competitors are important in order to survive in the today world of globalization. It is very important that service industry measure and monitor service quality and satisfaction with a view to influencing the behavioral intentions of their customers (Saha and Theingi, 2009). This study is conducted during the Graduate School MBA 1st semester 2019 for Development Issues and Problems in Business Administration subject taken by the authors at the Camarines Norte State College, Daet, Camarines Norte

I.

TIME CONTEXT The case study was conducted from November 30- December 10, 2019 including environmental scanning, observational trials and other research methodologies.

II.

VIEWPOINT The following ideas, opinions or judgements are all presented at the point of view of the author as the researcher of the case. Some opinions of the author are based from the reasonable facts and references by the experts.

III.

BACKGROUND OF THE ORGANIZATION

Jollibee is the largest fast food chain in the Philippines, operating over 900 stores worldwide market leader in the Philippines, Jollibee enjoys the lion’s share of the local market that is more than all the multinational brands combined. The company has also embarked on an aggressive international

expansion and currently has more than 100 stores outside the Philippines and present in USA, Vietnam, Hong Kong, Saudi Arabia Kuwait, Brunei, and Singapore establishing itself as a growing international QSR player

Jollibee began as a two-branch ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept. Thus was born the company that revolutionized fast food in the Philippines In 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange; thus broadening its capitalization and laying the groundwork for sustained expansion locally and beyond the Philippines.

Jollibee was founded by Tony Tan and his family with its humble beginnings as an Ice Cream Parlor which later grew into an emerging global brand. At the heart of its success is a family oriented approach to personnel management, making Jollibee one of the most admired employers in the Philippines. Jollibee is the largest fast food chain in the Philippines, operating over 900 stores worldwide market leader in the Philippines, Jollibee enjoys the lion’s share of the local market that is more than all the multinational brands combined. The company has also embarked on an aggressive international expansion and currently has more than 100 stores outside the Philippines and present in USA, Vietnam, Hong Kong, Saudi Arabia Kuwait, Brunei, and Singapore establishing itself as a growing international QSR player.

Beginnings branch ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept. Thus was born the company that revolutionized fast food in the Philippines.

In 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange; thus broadening its capitalization and laying the groundwork for sustained expansion locally and beyond the Philippines. A company that values family Jollibee was founded by Tony Tan and his family with its humble beginnings as an Ice Cream Parlor which later grew into an emerging global brand. At the heart of its success is a family oriented approach to personnel management, making Jollibee one of most admired employers in the Jollibee is the largest fast food chain in Philippines, operating a network of worldwide. A dominant market leader in the Philippines, Jollibee enjoys the lion’s share of the local market that is more than all the other multinational brands combined. The company has also embarked on an aggressive international expansion plan, and currently has more than 100 stores outside the Philippines and present in the USA, Vietnam, Hong Kong, Saudi Arabia, Singapore firmly establishing itself as a growing region with an Employer of the Year Award from the Personnel Management Association of the Philippines, Best Employer in the Philippines Award from Hewitt Associated and a Top 20 Employer in Asia citation from the Asian Wall Street Journal. Aside from promoting a family oriented work environment, the brand’s values also reflect on their advertising and marketing. Jollibee knows their target audience very well: the traditional family and all communication materials focus on the importance of family values, making Jollibee the number one family fast food chain in the Philippines and a growing international QSR player.

Recognitions Conferred by Outside Institutions 

Ranked 6th in the 2008 Finance Asia Poll for Best Managed Company and Best Corporate Governance.



Selected in 2006 as the Most Admired Company in the Philippine through a survey conducted by the Asian Wall Street Journal. This was

the 8th consecutive year that JFC was chosen for that prestigious recognition. 

Selected in 2005 as “The Best Consumer Goods Company in Asia” by Euromoney, a financial publication in London UK based on a survey of investment analysts and researchers in the region – on strength of its management, growth potential and quality of earnings.



Zenith Foods Corporation, the commissary plant of Jollibee, was adjudged the National winner of Meat Processing Plant AAA category in the search for Best Meat Establishment of the National Meat Inspection Service



In 2011, Jollibee voted as Trusted Brands in the Family Restaurant Category for the second year in a row. In 2012, Travel + Leisure magazine names Jollibee as one of the world’s best fast food chains

At the heart of its success is the family oriented approach to personnel management, making Jollibee one of the most admire employers in the region. The brand’s values also reflect on Jollibee’s advertising and marketing. As their mission goes “We bring great taste and happiness to everyone”. Customer satisfaction has always been key to Jollibee’s success. Jollibee’s growth is due to its delicious menu line up. Jollibee is expected to be at the fore front of best tasting quick service restaurants that adheres to Food service, cleanliness standards of excellence which must be exemplified by all branches at all locations.

In the part of Jollibee Daet Bayan Branch, they also implement the standards that was set by the management. However, some of the minimal internal problems can sometimes lead in creating another problems and then suddenly becomes a central problem that can affect the external customers in many ways. The variety of the minimal internal problems could lead to an increased potential for customer dissatisfaction. Despite this likelihood for issues, efforts

to develop effective management strategies have been minimal, as reflected in the following problem statement.

This case study is justifiable in that it will lead to the review of the current approaches on How Employees’ Working Performance Affect the Customer Satisfaction. It is anticipated that if such reviews are undertaken, they may reduce customer dissatisfaction and improved internal communication within the organization, job satisfaction, commitment, morale and subsequently enhance employee performance. The overall effect would be improved performance of the entire Jollibee- Daet, Camarines Norte Branch as an organization.

IV.

STATEMENT OF THE PROBLEM Since the Jollibee adheres to Food service, cleanliness standards of excellence which must be exemplified by all branches at all locations, Jollibee- Daet, Camarines Norte is no exemption to abide in the company’s standards to meet the demands of its loyal customers and maintain its positive stature in the market. There are problems that was identified based from the observation of manager in their branch and this was shared to the author of this case. These are the following problems:

1. Jollibee- Daet, Camarines Norte Branch seeks to satisfy their customers not only with the products they offer but also through their services. Unfortunately, some of its employees tend to have inappropriate behaviors in their communication style towards the customers which may tarnish the reputation of the store and the brand it carries.

2. Jollibee- Daet, Camarines Norte Branch is expected to strictly follow the company's standards in operation. However, some of its crew members performed their jobs in a slow manner and respond to the demands unhurriedly on their specific responsibilities and tasks which negatively affects the

standards that results to customer dissatisfaction being set and could ultimately distraught the store's productivity.

3. Jollibee- Daet, Camarines Norte promotes a holistic working environment. Yet, newly- hired employees have been observed to have an isolation type of behavior that seemed to avoid their co-workers in some instances. As a result, miscommunication arises which also affect each other's functions and the daily operations of the store. This kind of behavior of the employees contributed to the dissatisfaction of the customers, because of poor service.

Alternative course of Action 1: Implement the Total Quality Excellence Model

In the part of Jollibee- Daet, Camarines Norte, it is important to implement the Total Quality Excellence Model, because the current system and operations could be the main source of the problems encountered. .

The first solution suggested by the author as the researcher is the implementation of the approach of the TQM Excellence Model. In this alternative course of action, depicts the five areas which deals with the organization is doing and how it is acting. This includes leadership, employee orientation, policy strategy, partnership and resources, processes. The other four areas are the results areas that deals with what the organization achieves which includes employee (internal customer) satisfaction, customer satisfaction, society acceptance, key performance results. This results are caused by the enablers and the enablers can be improved on the bases of the results.

Total Quality Excellence Model

Image Credit: Google.com

Alternative course of Action 2: Conduct regular Training Program for the employees

The three (3) major problems or the roots of the customer dissatisfaction of Jollibee- Daet are employees tend to have inappropriate behaviors in their communication style towards the customers, some crew members performed their jobs in a slow manner and respond to the demands unhurriedly and their employees have isolation type of behavior that seemed to avoid their co-workers in some instances. In this alternative course of action, the problem could be solved by conducting a regular training program for the employees because it can have benefit on: 

Improved employee performance – the employee who receives the necessary and regular training is more able to perform in their job. The training will give the employee a greater understanding of their responsibilities within their role, and in turn build their confidence. This confidence will enhance their overall performance and this can only benefit the Jollibee Branch in Daet. Employees who are

competent and on top of changing industry standards help the company hold a position as a leader and strong competitor within the industry. 

Improved employee satisfaction and morale – the investment in training that a company makes shows employees that they are valued. The training creates a supportive workplace. Employees may gain access to training they wouldn’t have otherwise known about or sought out themselves. Employees who feel appreciated and challenged through training opportunities may feel more satisfaction toward their jobs.



Addressing weaknesses – Most employees will have some weaknesses in their workplace skills. A training program allows you to strengthen those skills that each employee needs to improve. A development program brings all employees to a higher level so they all have similar skills and knowledge. This helps reduce any weak links within the company who rely heavily on others to complete basic work tasks. Providing the necessary training creates an overall knowledgeable staff with employees who can take over for one another as needed, work on teams or work independently without constant help and supervision from others.



Consistency – A robust training and development program ensures that employees have a consistent experience and background knowledge. The consistency is particularly relevant for the company’s basic policies and procedures. All employees need to be aware of the expectations and procedures within the company. Increased efficiencies in processes results in financial gain for the company.



Increased productivity and adherence to quality standards – Productivity usually increases when a company implements training courses. Increased efficiency in processes will ensure project success which in turn will improve the company turnover and potential market share.



Increased innovation in new strategies and products – Ongoing training and upskilling of the workforce can encourage creativity. New ideas can be formed as a direct result of training and development.



Reduced employee turnover – staff are more likely to feel valued if they are invested in and therefore, less likely to change employers. Training and development is seen as an additional company benefit. Recruitment costs therefore go down due to staff retention.



Enhances company reputation and profile – Having a strong and successful training strategy helps to develop your employer brand and make your company a prime consideration for graduates and mid-career changes. Training also makes a company more attractive to potential new recruits who seek to improve their skills and the opportunities associated with those new skills.

Aside from this benefits, it is important to include on the regular training the methods of proper supervision of the managers to their subordinates if their responsibilities are performed well. This solution

Alternative course of Action 3: Create incentive program for employees Incentive programs for the employees are tools used by business to encourage, recognize and reward exceptional performance in their employees. Incentive plans typically surpass standard salary and benefit agreements and usually are given in the form of cash bonuses, extra paid vacation days or gift items of non-monetary value.

There

are

numerous

advantages

associated

with

encouraging

business staffers through the use of incentives.

Incentive plans were created for the express purpose of urging employees to motivate themselves to higher achievement levels. Incentive plans that reward employees for reaching pre-established goals provide encouragement and give

staffers something to aim for. The advantage to business is increased levels of productivity and workers tend to be happier when they are rewarded for going above and beyond their everyday work tasks.

When employees work together on team incentive plans, they establish a sense of camaraderie, pulling together for the common good. This can strengthen bonds between colleagues, managers and business owners. The advantage of a unified workforce is a more efficient, pleasant work environment for all. It can also enhance regular work relationships between departments and co-workers, resulting in increased productivity.

Since in this alternative course of action, that incentive program can create motivation for the employees as well as to have a happy environment, this could reflect to their work responsibilities and the quality of service set by Jollibee will sustain and this may solve the problem which is the customer dissatisfaction. V.

OBJECTIVES General (Primary) Objectives

The general objective of this case study was to investigate the strategies fon How Employees’ Working Performance Affect the Customer Satisfaction, so that appropriate measures could be suggested to deal effectively with problems related issues and provide alternative solutions to the problems identified by the author.

Specific Objectives The specific research objectives for this case study were: 

To determine the types of problems occurring in the Jollibee – Daet Branch



To examine the causes of customer dissatisfaction in Jollibee Daet



To establish the impacts of these problems on workers performance in the company



To assess the procedures for dealing with customer dissatisfaction consequences in the Jollibee Daet; and



To assess the effectiveness of measures for dealing with problems conflicts existed in the company.

VI.

AREAS OF CONSIDERATION/ANALYSIS Facts of the case: 

Ranked 6th in the 2008 Finance Asia Poll for Best Managed Company and Best Corporate Governance.



Selected in 2006 as the Most Admired Company in the Philippine through a survey conducted by the Asian Wall Street Journal. This was the 8th consecutive year that JFC was chosen for that prestigious recognition.



Has 900 branches worldwide



Beginnings branch as ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978.



In 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange

Organizational (Internal) and Environmental (External) Issues that contributed to the main Problem: 

Overlapping of responsibility and functions of the employees



Excessive workload of each department that results to unorganized in work for employees.



Different behaviors of each employees that reflects at operations



Untrained employees in regards to communication management to customers



Competition environment between each employees



Conflicts between employees

After being considered and known as a number and one and famous fastfood chain restaurant in the Philippines, one of the parameters that should be considered before suggesting alternative courses of action is standing and status established by the organization. They are being a respected multi-awardee company in the Philippines. The solutions that will be given should take consideration on the economic situation of the business.

DECISION MATRIX: In assessing the problem of Jollibee Daet Branch, a rating

scale of 1-5 is

used, below are the presentation of decision matrix. Variables

Conduct regular Training Program for the employees

Create incentive program for employees

Criterion)

Implement the Total Quality Excellence Model

Risk

4

5

3

Cost

3

3

2

Benefits

5

4

3

Implementation

4

3

2

Total

16

15

10

(Point of Reference/

(One that yields the highest accumulated point score determines the final decision)

VIII.CONCLUSIONS In given decision matrix, it can observed that the researcher come up to the final decision for the problems encountered in Jollibee Daet Branch. Based from the results of the decision matrix shown above, the alternative solution that will give the best and most positive results is the first

alternative solution.

The first alternative solution which is implement the Total Quality Excellence Model accumulated the highest score with 16 points. It only defines that the source of the problems are caused by underdeveloped system existed in the business in regards to employees performance that resulted to customer dissatisfaction, if the organization improve it by implementing the Total Quality Excellence Model this may impact a lot on the operations management.

The alternative course of action two (2) the score in the decision

matrix

with 15 points. According to assessment, this alternative solution are less risky and not that costly, however, the benefits derived cannot totally solve the particular problems encountered by the business organization. Lastly, the create incentive program for employees got the lowest score with 10 in the decision criteria. This is because it is too costly, risky and hard to implement.

IX. RECOMMENDATION Based on the evaluation that the researcher has gathered from the preceding chapter, the researcher came up to the recommendation of the following. For the organization solve their problems, the author, therefore strongly recommend that the first alternative solution should be performed by Jollibee Daet Branch. The organization implementing the Total Quality

must

eliminate

Excellence Model

the

problem

by

of the business. It only

defines that the source of the problems are inappropriate behavior toward customers, actions and response towards work is slow and unhurried and isolation type behavior among new employees contributed to employees poor performance that resulted to customer dissatisfaction.

Through the Jollibee is already a dominant market leader in the Philippines, there were always be some components of the organization that need to be given ample attention.

One of the notable components is the pool of employees who are considered to be the heart of every organization and walking representation of the company where they work for inappropriate behavior toward customers, actions and response towards work is slow and unhurried and isolation

type

behavior among new employees were just of some of the typical attitudes of the employees that could ultimately affect not only the services to the customers but the image of the organization, which is true to the case of Jollibee – Daet, Camarines Norte

VIII. ACTION PLAN Jollibee Daet Branch may start implementing their alternative through proper management Planning and Budgeting for them to have blueprint and budget of the said solution and what are the action plans for this considerations. ACTION PLAN

Implement the Total Quality Excellence Model Activities to implement

Objectives

Division

Persons Responsible

Estimated Costs

Time Frame

Participatory Planning of Training

To have a concrete guide before the implementation.

Top Management

BOD

P20,000.00

6 months

Finance Department

Establishing leadership development program

To improve their ability to lead and motivate staff through appropriate non-monetary rewards and improved communication.

Top Management

BOD

P15,000.00

Every 3 months

To perform more effectively and meet their objectives, as well as to provide them with opportunities for advancement. Re-designing tasks and roles

To ensure compatibility with staff aptitudes and abilities, and to reduce task inter-dependencies

Human Resource Department

Human Resources

--

1 month

Improving communication systems

To remove barriers to effective communication and increasing information flow.

Top Management

BOD

--

1 month

Since the business have recommended the best solution for the central problem of Jollibee Daet Branch based form the researcher’s analyzation using the case study. Before the implementation, the organization should take the action or steps to achieve the best alternative solution. The activities that the business need to come up with are the following:

1. Participatory Planning of Training The purpose of the planning is knowing what the business aiming for create the likelihood of reaching the destination. Without a clear planning the ideal expectation is doomed to fail. It will be difficult to determine milestones and even more difficult to prioritize tasks. The organization will know which resources have already been allocated and be able to plan accordingly. Already allocated or over allocated resources can cause major project stalling. Also, planning facilitates communication. The responsible person cannot know what needs to be done if it’s not written down. Moreover, important tasks and milestones will be missed and expectations will not be clear. Included in the planning is the feasibility study to evaluate if the particular suggested solution is really possible to implement In terms of budgeting, being able to comprehend the importance of cost estimation and budgeting from the very initial phases of a project is critical. Everyone in the project management is clear when it comes to stressing the importance of budgeting or the consequences of poor cost estimation on the final outcome of a project 2. Establishing development program The main objective of establishing development program is to improve their ability to lead and motivate staff through appropriate non-monetary rewards and improved communication and to perform more effectively and meet their objectives, as well as to provide them with opportunities for advancement. It is recommended to conduct quality training and development program every three (3) months

3. Re-designing tasks and roles Re-designing tasks and roles’ main purpose is to ensure compatibility with staff aptitudes and abilities, and to reduce task inter-dependencies. The department that is assigned for this is the human resources with the time period of one (1) month. 4. Improving communication systems The organization is recommended to improve communication system to remove barriers to effective communication and increasing information flow. The implementation of this activity will be decided by the top management.

REFERENCES: Book and Journal: 1. Amason, A. C. (1996). Distinguishing The Effects Of Functional And Dysfunctional Conflict On Strategic Decision Making: Resolving A Paradox For Top Management Teams. Academy of Management Journal 39, 123-148.

2. Amazon, A. C. and Sapienza, H. J. (1997). The Effects Of Top Management Team Size And Interaction Norms On Cognitive And Affective Conflict. Journal Of Management, Vol. 23, pp.495-516.

3 Bingham, L.B. (2007). The Politics Of Evaluation: Lessons From The Evaluation Of Workplace Dispute Resolution Programs. Evaluation Dispute Resolution Programs: Traps For The Unwary. Proceedings of the 59th Annual Meeting, Labor and Employment Relations Association 104-115.

4. Block, R. N., Beck, J., and Olson, A. R. (1996). Low Profile/High Potential: A Look At Grievance Mediation. Dispute Resolution Journal, 51(4), 54-61.

Website: http://choo.fis.utoronto.ca/fis/respub/asisbullet/default.html

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