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How Nick\'s Pizza Delivers Training Results At first glance, Nick\'s Pizza & Pub

ID: 457701 • Letter: H

Question

How Nick's Pizza Delivers Training Results At first glance, Nick's Pizza & Pub sounds as ordinary as a company can be: a pizza restaurant with two locations, each in one of Chicago's northwest suburbs. But when you take a look at the company's performance measures, something special seems to be going on. In an industry where 200% employee turnover and operating profits around 6 1/2% are normal, Nick's has to replace only 20% of its employees each year and enjoys operating profits of 14% or more. These results are amazing, especially for a business in which 4 out of 10 employees are high school students. What makes the difference? It could be the culture at Nick's. Rather than hiring expert managers and laying down a lot of rules, Nick's is choosy about who gets hired for every position and then provides them with enough training to operate skillfully and exercise sound judgment. The whole training program emphasizes ways to develop trustworthy, dedicated employees. Training at Nick's begins with a two-day orientation program. Trainees learn the company's purpose, values, and culture, and they participate in role-playing activities to practice those lessons. Then it's on to skills training, beginning with a course called simply 101. During that four-hour hands-on lesson in the kitchen, all the new employees—regardless of what their future job will be—learn to make a pizza. From there, the trainees divide into work groups for the next level of training. In 201, these groups of trainees embark on longer-term training to be certified in performing a particular job. For example, an employee might train in pizza making for a few weeks until he or she earns a certification as a pizza maker. Page 339 Class 201 ends the mandatory training, but Nick's provides incentives for further learning. An employee can participate in additional 201 courses to learn more jobs and earn a pay increase. An employee who earns two more certifications (say, one in salad making and one in sandwich preparation) enjoys a wage increase of 75 cents an hour—and the prestige of exchanging the uniform's tan hat for a red hat. Some employees earn nine certifications, after which their pay rises another $2 an hour, and they get to wear a black hat with their uniform. Yet another level of training prepares employees to be trainers themselves. This level—301—prepares employees to earn a top skill rating in their areas of certification. Besides these task-oriented skills, the employees receive training in communication and leadership and study a book called Mastery: The Keys to Success and Long-Term Fulfillment by George Leonard. Employees who complete these requirements receive a Leadership 301 Passport, which includes a checklist of behaviors they are expected to model for the employees they lead. During the weeks that follow, they watch for situations in which they or others are exhibiting each behavior, jotting down descriptions of what they witnessed. When the listed behaviors have all been observed and noted, the participants take a course in training, and they finally are ready to be named trainers themselves. Along with these formal training programs, Nick's provides further on-the-job learning through coaching by managers and trainers. The goal is to provide feedback in the moment, not waiting for performance appraisal meetings. For example, at the end of each shift, trainers will ask trainees to identify one thing they did well that day and one thing they would like to improve. In addition, managers are taught to observe employees' behavior on the job and ask themselves whether what they see would make them want to hire the employee. If yes, the manager is expected to give immediate positive feedback. If no, the manager is expected to coach the employee on how to do better.

QUESTIONS 1. To the extent that you can provide details from the information given and a visit to the Nick's Pizza website (www.nickspizzapub.com), prepare a needs assessment for training kitchen staff at Nick's. Remember to include organization, person, and task analyses.

2. How does the work environment support training at Nick's? In what additional ways, besides those described, could the work environment support training?

3. Do you think an outside contractor could provide training for Nick's as effectively as its current methods do? Why or why not? Are there some types or topics of training for which a contractor might be appropriate? If so, which ones

Explanation / Answer

As per the information available, Nick Pizza is doing excellant work not only in its operations but in particularly with respect to Human Resource Management. Proper selection of the persons and on the job training, motivating to learn and earn more and also to fulfill the needs of accomplishment and recognization with promotions etc are very crucial for having a one tenth of the sector's employee turnover and more than double the profit margins. There is hardly anything mentioned in the narration for needs assessment for training kitchen staff.

2. The work environment is very much conducive, in particularly meetings between the trainers and trainees at the end of the shift. Continuenous and consistent efforts on the part of both the trainer and trainee while on the job is bound to create a friendly and happy class room in front of the customers/ public at large. The selection of the employees ab-initio, at the first place not taking more educated rather avoiding over qualified and or recruiting person having potential to be developed into trustworthy and dedicated workforce plays a key role for success of in-house training and or training on the job. Further the policy to encourage employees to learn more with more earnings is very important. The entire scheme of moving from the position of a trainee to the position of trainer may be replicated everywhere.

3. An outside contractor may or may not be as effective as its current methods. It all depends on the capability of the outside contractor. There are always some advantages and some disadvantages with respect to hiring an outside contractor for training. There is risk about exposing the strengths and weaknesses of the organization with the outside world including exploitation of trade secrets by the competitors. Best employees falling in the hands of the contractor through various means of alluring such as higher salary, better future prospects. Similarly the organization may come to know about the best practices being followed by others. The problems and prospects gets a third party perspectives may be for the betterment of the employees and for the organization. As per my understanding, Nick Pizza should not leave the entire training with an outside contractor but may hire outside contractor for some specific focused training of short durations from time to time on need basis.

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