Assignment
Although you might think working for an ice-cream company would be motivating under almost any circumstances, Graeter's doesn't take its employees' commitment for granted. Including full-time and part-time seasonal workers, the company employs about 800 people in three production facilities and dozens of ice-cream shops. Teenagers who take a summer job at a Graeter's shop often return to help out during the winter holidays and then come back to work the following summer, and the summer after that. Production employees tend to remain with the company for long periods, as well, and Graeter's is relying on their experience and expertise as it expands its national distribution and opens new stores far from the Cincinnati base. PROFESSIONAL PROCEDURES WITH PERSONAL TOUCHES Over the last few years, Graeter's has benefitted from tightening up some of its long-standing human resource management A (HRM) procedures, including those for hiring and evaluating employees. David Blink, the company's controller, explains: "We hire based on potential. . . . We are looking for people who are conscientious about their work, who do a good job, who show up every day. We are a fun place to work. . . . We have turnover based on seasonal work only because we hire a lot of college kids [and] high school kids" to work during the summer months. Managers begin recruiting during the spring so that each store is fully staffed in advance of the peak ice cream buying season. The company also accepts job applications through its website. When filling job openings at its three factories, Graeter's looks for people with baking industry skills.
On the job, employees and managers alike wear name badges that show the number of years they have worked for the firm, "and that is a proud number," says Blink. Graeter's adds a personal touch by celebrating employees' birthdays and milestones such as 25 years of service with the firm. According to a consultant who works with top management, goals and measurement systems weren't strongly emphasized in the company's early days. "If [employees] came in and they made ice cream, if they made enough for the week, for the day, that was enough," he says. These days, however, Graeter's sets specific production and store goals so that all employees know what is expected of them. It also has measurement systems in place to track progress toward those goals. "We have defined the behaviors that are acceptable and not acceptable within the company," the consultant continues. "We communicate that. We teach and educate people." At the retail level, Graeter's training focuses on how employees can make the instore experience engaging, fun, and memorable for customers. In the factory, higher production goals have given newly empowered employees achievements to boast about on the slogan T-shirts they wear.
The workforce is eager to submit suggestions for improvement, and morale is high. The company also offers advancement opportunities for employees who are ready to take on more responsibility. Graeter's low rate of turnover indicates that employees feel involved with the firm and the work they do. In fact, some employees spend their entire working careers with Graeter's and eventually retire from the firm. BENEFITS THAT PAY The benefits package for managers and full-time employees is competitive. Graeter's offers profit sharing, and it has made a profit year after year. It also has a 401(k) retirement plan that matches employees' contributions, plus a rolling allowance for paid time-off that is separate from paid vacations and holidays, and is based on the employee's tenure with the firm. Other benefits include medical, life, and disability insurance. Store employees wear uniforms (paid for by the company) and receive a 25 percent discount when they buy Graeter's products.
All managers and employees receive the training they need to be effective in their positions and to develop their professional skills. "YOU CAN'T DO IT ALONE " The management team has grown as the company moves forward with its aggressive nationwide expansion plans. CEO Richard Graeter, a great-grandson of the company's founders, believes in recruiting outstanding people, compensating them well, and giving them the autonomy they need to get things done. "In the last few months," he notes, "I have hired a vice president of sales and marketing . . . [and] we hired a vice president of finance, basically a CFO [chief financial officer] because we are big enough to support that . . . Identifying the gaps in your executive team and your talent pool, and going out and finding people to fill those gaps, is probably one of my most critical functions in addition to looking out to define the strategic direction of the company.
I've got some wonderful people on the team now, and they are really helping us make the jump from a small business to a medium-sized business . . . People at that level, you've got to pay them well. It's worth it, though . . . They can command the kind of salary they do because they bring the talent you need to navigate the waters." "You can't do it alone," Richard concludes. "That is the other thing that I think my cousins and I all have come to realize; we can't do it alone. Our fathers and aunt and the folks that came before them . . . they did it all, from figuring out where to build the next store to hanging up the laundry at the end of the day." Now, to achieve the fast-growing company's ambitious goals, he's found that "you need to rely on talent that is beyond just you.
Questions
1. Imagine that you're a human resources manager for Graeter's. If you were writing the job specification for an entry-level, part-time employee who will serve customers in one of the scoop shops, what qualifications would you include, and why?
2. Food production facilities like the three Graeter's factories must comply with strict regulations to ensure purity and safety. What kinds of teams might Graeter's use in these facilities, and for what specific purposes?
3. Graeter's is currently a non-union company. How might the experience of working there change if a union were to be introduced?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.