Human Resource Management (MBA 509)

Section: 02

Submitted To-
M. Nazmul Amin Majumdar

Submitted By-
Name ID
Shohid Ullah Pathan 1630975
Sabina Alam 1630787
Abid Burhan 1030109

Date of Submission: 14-03-2017

 Table of Contents
Introduction: ............................................................................................................................ 1

History of Industry: ................................................................................................................ 1

History of Denny’s:................................................................................................................ 1

Present Position:..................................................................................................................... 2

Products & Services: .............................................................................................................. 2

Competitors:........................................................................................................................... 3

I. Objectives: ...................................................................................................................... 3

Body: ......................................................................................................................................... 4

Explaining the strategic implication of cultural diversity: ..................................................... 4

Explaining experience of turning around from drowning to booming that may be useful
lessons for other companies: .................................................................................................. 6

Demonstrating the impact of diversity that gave a positive momentum in company’s

performance: .......................................................................................................................... 8

Conclusion: ............................................................................................................................. 10

Recommendation: .................................................................................................................. 10

Reference: ............................................................................................................................... 11

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Introduction:
History of Industry:
The industry comprises chain and franchised restaurants that provide food services to patrons
who order and are served while seated (i.e. waiter or waitress service), and pay after eating.
These establishments may provide this type of food service to patrons in combination with
selling alcoholic and other beverages.
The restaurant industry in the United States reached 745.61 US dollars in 2015 – a long way
from the 42.8 million seen in 1970. This figure was forecasted to rise again in 2016 to more
than 782 billion. In 2015 there were approximately 14 million people working within the
industry, by 2026 this number is expected to reach over 16 million.
The restaurant industry in United States is generally comprised of independent or chain full-
service and limited- service restaurants. In 2015, full service restaurants (FSRs), including
chain such as Applebee’s and red lobster, generated around 247 U.S dollars in food and drinks
sales. Limited service restaurants (LSRs) made over 210 million that year. LSR category
includes well known fast-food restaurants and coffee chains like McDonald’s and Starbucks.
MacDonald’s is the leading chain restaurants in the U.S.A in term of sales, making 35.84
million U.S dollar in 2015.

History of Denny’s:
A successful establishment in the category of restaurant is Denny’s. The story of Denny’s
began in 1953, when Harold Butler and Richard Jezak opened a donut shop named Danny’s
Donut in Lakewood, CA. In 1955, Danny’s Donuts already owned a 6- store chain. When Jezak
left the 6-store chain, Butler changed the concept a year later in 1956, shifting it from a donut
shop to a coffee shop. Danny’s Donuts was renamed Denny’s Coffee Shops and changed its
regular operation hours to 24 hours. In 1959, Butler changed the name to Denny’s Coffee Shops
from Danny’s Coffee Shop, to avoid confusion with Los Angles restaurant chain Coffee Dan’s.
Denny’s Coffee Shop was simply renamed Denny’s in 1961. The business continued to expand,
and 1981, there were over 1000 restaurants all over the United States of America. The company
bought-out many of the old Sambo’s restaurants (a big restaurant chain before 1981), and used
their midcentury design in all their future restaurants. In 1977, Denny’s introduced the still
popular Grand Slam breakfast. In 1994, Denny’s became the largest corporate sponsor of Save
the Children, a national charity. Fortune Magazine ranked Denny’s the number one company

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on the list of “America’s 50 Best Companies for Minorities.” Black Enterprise magazine ranked
Denny’s at the top of its list of “Best 40 Companies for Diversity” in July 2006.

Present Position:
Denny’s is one of America’s largest franchised full-service restaurant chains. Currently, the
Denny’s brand consists of approximately 1,702 franchised, licensed and the Company operated
restaurants around the world, including over 1,596 restaurants in the United States and over
106 international locations. Approximately 1,541 of Denny’s restaurants were franchised or
licensed, and over 161 were Company operated.

Products & Services:

Given its historic founding as a donut shop. Denny’s has long been associated with its popular
breakfast offering like Moons over My Hammy, Ultimate Skillet, And the world famous Build
our Own Grand Slam, with over 35 million sold in 2010. Denny’s providing good food and
services for more than 50 years. Denny’s restaurants offer a casual dining atmosphere and
moderately priced meals served 24 hours a day at most locations. Denny’s is best known for
its breakfasts served around the clock, including the popular Meat Lover’s Breakfast and
Original Grand Slam. The lunch and dinner menu are increasing in popularity with a variety of
servable burgers, sandwiches, salads and other entrees. Denny’s remains dominant for the late-
night crowd with an emphasis on appetizers and desserts.

Specialty menus for health conscious guests feature low fat offerings. The chain also offers
customers age 55 and over selection at special prices and children 10 and under a specially
priced menu. In addition, Denny’s offers free refills on coffee, tea soft drinks and lemonade.

Denny’s caters to customers in their numerous brick-and-mortar outlets and not online. The
only item Denny’s (Denny’s .com) sells online is Denny’s Gift Cards. Besides free coupons,
Denny’s provides a variety of services such as:

 Kids Eat Free

 Kids Live Well
 Birthday free Grand Slam
 55+menu and AARP discount
 Hungry for Education program
 Las Vegas Wedding

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 To help customers with their search and purchase, Denny’s publishes on their website a Meal
(nutritional value) Calculator and Denny’s (restaurant) Locator. Lastly, there is Denny’s App
for iPhone/ Android, which can be downloaded to see limited time only menus, locate the
nearest Denny’s and most importantly, play the Denny’s 50 State Challenge, an exciting ,
interactive race across America, where the first person to check into a Denny’s Diner in all 50
states will win FREE GRAND SLAM FOR LIFE. There are great discount coupons, souvenirs
and badges to unlock along the way.

Competitors:
The restaurants industry is highly competitive. Restaurants compete on the basis of name
recognition and advertising, the price, quality, variety and provide value of their food offering;
the quality and speed of their guest services, and the conveniences and attractiveness of their
facilities.

Competitors of Denny’s are:

 Burger King Holdings

 McDonald’s
 Yum! Brands
 Compass Group
 Starbucks
 Sodexo
 Tim Hortons
 Darden Restaurants
 Chipotle Mexican Grill

I. Objectives:
To explain the strategic implication of cultural diversity.
To explain experience of turning around from drowning to booming that may be useful
lessons for other companies.
To demonstrate the impact of diversity that gave a positive momentum in company’s
performance.

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Body:
Explaining the strategic implication of cultural diversity:
Denny’s seeks to create and maintain an inclusive, high performance organization, believing
that our differences can be source of richness, creativity and innovation. Denny’s turnaround
with the regard to diversity was, due to the change make cultural and structural. Denny’s decide
to implement a diverse board of directors to get different point of view reference to the
company. The company also decide to implement intensive education and training from the
board of directors to cookers, servers and hostess. The training cover diversity awareness and
diversity skills. The company also decide to eliminate all structures that impede inclusion and
start the recognition and rewards of their employees start felling more motivate at work. The
company also establish a new way to eliminate discrimination polices by incentive managers
who hire diverse employees. All this was able to happen thanks to dedicated leader Hood
Phillips who saw diversity as the way to bring back the company.
‘;Over the years they have developed or acquired more than enough research that demonstrates
that the divers groups outperform non diverse groups both qualitatively and quantitatively.
Divers groups are stronger, and more relevant to their customers. Denny’s is located in many
communities across the country, and someone who comes from a particular community can
always relate better to customers in that community. In terms of employees, they have found
that diverse teams are stronger and produce higher and deeper levels of thinking. They are more
relevant to their customers.
Today, Denny’s have a diversity record in the retail food industry that is second to none.
They’re proud of that record. Denny’s committed to building on this strong foundation-not only
because it’s good for business-but it is also the right thing to do. Diversity and inclusion make
a better, stronger company. Denny’s sell over a million meals a day at their customer from
every color, race and creed. If Denny’s is to prosper and thrive in the American market place,
then they need that same reflect in their workforce, at every level, as well among other key
stakeholder groups-from their board of directors, to their franchise community, to their supplier
base.
In working to achieve its diversity goals and objectives, Denny’s has isolated 10 “Keys to
Diversity Change”:

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 Committed Leader: It begins at the top. The CEO of an organization sets the tone,
values, Expectations, and operating philosophies for the company; it is important,
therefore, that he or she be one of the company’s greatest champions of diversity.
 Diverse Board of Directors: A diverse board is more likely to examine the larger issues
confronting the company, both short and long term, with diversity issues in mind.
 Accountability for Change: Someone of title and rank must be accountability for
driving change through the organization. If the job is delegated to a committee a
taskforce, diversity efforts will become “an appendage” to the business.
 Company -wide Ownership: Change is everybody’s job. Every worker must “own” his
or her portion of the goal; this injects considerations into all aspects of business
operations.
 Education and Training: These are the key drivers of culture change in any organization.
Education and training should be tailored to address the issues facing each key level of
the organization, and it should be on-going.
 Clear, Enforceable Nondiscrimination Policies: The lack of a policy is itself a policy.
If there are no clear rules of conduct defining what is acceptable, people make up their
own rules as they go along.
 Eliminate All Structures Impending Inclusion: A company must eliminate all
management and HR structures that impede inclusion, and build back structures that
foster diversity, especially in how it hires, fires, develops, and promotes people.
 Monitor, Measure and Report Results: “What gets measured, is what gets done.” They
monitor their diversity progress on a regular basis and report our findings to senior
managers and their board for feedback and direction.
 The Diversity Progress to Reward and Recognition Systems: They make diversity a
pocketbook issue for their workers. For three years, they tied 25% of their senior
managers’ annual bonuses to their diversity progress. Valuing and managing diversity
are among the competencies we expect all employees to master.
 Celebrate The Success: At an annual event, they salute and honor the company’s top
diversity champions before their peers. This sends a powerful message to the entire
organization

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Explaining experience of turning around from drowning to booming that may be
useful lessons for other companies:
Others companies can learn from Denny’s experience the economic consequences of diversity.
Diversity can bring back a company if it is manage in the correct way. The recognition to value
employees is very important in this aspect because they can feel they are doing a good job and
they have been reward it for it. Allowing employees to be more involve in the company
decision also help because they feel we a sort kind of responsibility. Companies can also learn
the importance of minority in their divisions in this way employees can see them self-working
in this position and they put more effort to their job. From Denny’s companies can also learn
the importance to have a correct performance appraisal system where employees feel they are
not been discriminate for been the minority but reward it if they have a good performance.
Companies also can learn how training and education can help employees to have a better
performance. Set diversity goals and have an action plan.
 The consequent economic Recognition to the business:
Effective strategy for managing diversity will likely experience all or some of the
following consequences: loss of productivity, employee turnover, lost opportunities,
and potential employment law mistakes .To avoid these consequences, decision makers
need to recognize this deficiency as a business problem and acknowledge the need to
develop an effective strategy for Managing Diversity for Success.
 To develop an effective strategy for Managing Diversity for Success:
 Accountability building:
CEO of Denny’s stating that Building clear accountability into the organization is must
for each & every employee. His/her expectations and outcomes for the diversity
strategy also be clear to everyone. A business leader that sets standards and leads by
example in organizational and personal actions demonstrates commitment to
employees, suppliers, and customers about the importance of diverse ideas, opinions,
knowledge, and skills. Although achieving diversity business success is the
responsibility of all employees, long-term sustainability is achieved by holding
management accountable for integrating diversity within all business functions, and by
evaluating every managers to inspire them to achieve the diversity goal over the time
based on their performance & ability.
 To allocate financial resource:

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 There are costs to implementing the four-step process for Managing Diversity for
Success. Demonstrating a commitment to this process requires management to allocate
a budget in order to ensure that the diversity action plans are not subject to shifting
priorities and efforts. Allocating a diversity budget sends a clear message to employees,
suppliers, and customers that management is serious about bringing about changes to
enhance productivity and opportunities for growth. Costs can include the diversity
council, communication, diversity assessment, and employee training.
 Assigning responsibility:
It is the responsibility of management to develop, implement, monitor, and review the
organization's diversity efforts. Significant consideration is required in the selection of
the individual who will lead the strategy for Managing Diversity for Success. When
selecting the individual to lead this process, be sure that the person is a respected
employee who consistently demonstrates a commitment to the principles of inclusion,
and that the person is a decision maker with the authority to lead and act on
recommendations.
 Communicating with employees:
Management level authority will communicate with every level of employee for
Managing Diversity for Success to the four-step process. The method used to
communicate will vary depending on the number of employees and locations.
Informing employees of the diversity efforts the business will undertake will position
the MDS process as an opportunity to enhance productivity and growth. As well as to
prevent or lessen opportunities for the circulation of misinformation and rumors that
could undermine the MDS process every level communication must be ensure like
Denny’s .
 Executing an action plan for organizational change:
 Communicating the action plan:
Depending on corporate strategic goals, size of the organization, time for committee
work, and human and financial resources the components of an organization's diversity
action plan will vary. One of the key components for success is communicating with
employees throughout the Managing Diversity for Success process to deliver a clear
message: MDS is an ongoing process, not a quick fix program. The goal is to bring
about real organizational change to benefit the business, employees, suppliers, and
customers. As the business moves to the implementation of the diversity action plan,

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 responsibility for MDS is shifting from a top-down to circular approach that involves
all business functions and organizational levels.
 Serve employee with training and development course:
Memos and team discussions clearly state that achieving diversity is the responsibility
of all employees. Opportunities for diversity training must be provided for employees
to further develop their understanding of diversity and to learn the necessary skills to
achieve diversity business goals. Good diversity training gives employees the skills that
they can use to deal with workplace diversity, its implications, and effects. Begin with
awareness building to ensure that all employees understand the business and ethical
reasons for implementing a diversity strategy.
 Setting diversity business goals:
Achieving diversity means a shift from a non-diverse business (workforce, suppliers,
products, customers) to one that reflects the demographic characteristics of the
population within all functions and organizational levels. Achieving diversity requires
management to set specific, measurable, achievable, and realistic goals based on
business needs and by selecting key areas where diversity can help move the business
forward.

Demonstrating the impact of diversity that gave a positive momentum in

company’s performance:
We know intuitively that diversity matters. It’s also increasingly clear that it makes sense in
purely business terms. Research finds that companies in the top quartile for gender or racial
and ethnic diversity are more likely to have financial returns above their national industry
medians. Companies in the bottom quartile in these dimensions are statistically less likely to
achieve above-average returns. And diversity is probably a competitive differentiator that shifts
market share toward more diverse companies over time.
More diverse companies, we believe, are better able to win top talent and improve their
customer orientation, employee satisfaction, and decision making, and all that leads to a
virtuous cycle of increasing returns. This in turn suggests that other kinds of diversity—for
example, in age, sexual orientation, and experience (such as a global mind-set and cultural
fluency)—are also likely to bring some level of competitive advantage for companies that can
attract and retain such diverse talent.
 Positive impact of diversity on company’s performance:

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 Diversity stimulates innovation and productivity and creates a world class culture that
can outperform the competition.
 A multicultural organization is better suited to serve a diverse external clientele in a
more increasingly global market. Such organizations have a better understanding of the
requirements of the legal, political, social, economic and cultural environments of
foreign nations.
 Multicultural organizations are found to be better at problem solving, possess better
ability to extract expanded meanings, and are more likely to display multiple
perspectives and interpretations in dealing with complex issues.
 Organizations employing a diverse workforce can supply a greater variety of solutions
to problems in service, sourcing, and allocation of resources.
 Employees from diverse backgrounds bring individual talents and experiences in
suggesting ideas that are flexible in adapting to fluctuating markets and customer
demands.
 A diverse collection of skills and experiences (e.g. languages, cultural understanding)
allows a company to provide service to customers on a global basis.
 A diverse workforce that feels comfortable communicating varying points of view
provides a larger pool of ideas and experiences.
 There are some pitfall as well of diverse workforce:
 People from different race, culture and ethnicity have their own way of living, these
differences sometime create problem in work place. IF it not solve immediately it can
turn into a huge mess.
 Diverse people have diverse way of thinking. In decision making process for
accomplishing company’s goal it is sometimes become difficult to reach in a unique
point.
 There are always employees who will refuse to accept the fact that the social and
cultural makeup of their workplace is changing. The old people of the organization do
not want to diversity because they are used to their conventional life.
 To achieve the advantages of diversity, company must often provide diversity training,
which includes cultural awareness and sensitivity training. Communication barriers
become a major challenge in a diverse workforce. Employees that come from different
cultures sometimes speak different languages, and encouraging communication in a
single manner can be a challenge.

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  Achieving a diverse workforce giving diverse training and development and managing
conflict is time consuming and costly.

Conclusion:
Symbolic changes included a declaration that Martin Luther King’s birthday would be a
company holiday. T is very much god step no doubt.

Denny’s hired Ron Petty, former head of Burger King USA, as CEO of Denny’s to making
safe place for minorities and women. They also hired Ray Hood Phillips to help develop a
diversity program. They gave diversity training throughout the company. They have shared to
collect new minority supplier contracts. Now they have 37% African-American, 31% women,
21% Hispanic, 7% Asia Pacific, 1% Asian Indian, 3% Native Americans suppliers worldwide.
The present workforce of Denny’s is fully diversified 53% women, 62% minorities, 42%
minorities in management level, and 43% women in management level. Now Denny’s
restaurant chain made a miraculous turnaround. They have 4% market share in US market.
They need more diversification training and keep the diversity in certain boundary. Denny’s is
the most beloved name in the family dinning category, providing classic American fare and
warm, embracing service at a reasonable price for over 50 years. With more than
1,700nresturants and sales of over $2.5 billion, Denny’s is one of America’s largest full service
family restaurant chains.

Recommendation:
Denny’s need more diversity training throughout the all level of employees. They need to teach
their people how to cope up with different culture, race and religion. Just need to build hybrid
culture in the organization. We know diversity is good but anything excess is bad. Therefore,
they should to stay in a certain boundary of diversity. If they make diversity in every aspect of
diversity, they the employees can resist changing and may increase high turnover rate. They
need to practice human resource management not personal management. Beginning of Denny’s
journey was practicing personal management. That is why they were doing discrimination
about minorities, black people. They did not consider a customer as a human being. They
employees of Denny’s had some understanding problem about local law, rules and regulations.
Denny’s need to disseminate the information about local law, rules and regulation throughout
the organization. Develop the whole workforce as a human doing discrimination about
minorities, black people. They did not consider a customer as a human being. They employees

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of Denny’s had some understanding problem about local law, rules, and regulations. Danny’s
need to disseminate the information about local law, rules, and regulations throughout the
organization. Develop the whole workforce as a human.

Reference:
1. Resources. (n.d.). Retrieved February 20, 2017, from
https://www.asaecenter.org/resources/whitepaperdetail.cfm?ItemNumber=12163
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http://www.dennysdiversity.com/supplier.asp
3. Home Page - Denny's. (n.d.). Retrieved February 20, 2017, from
http://www.bing.com/cr?IG=BC4C39DB616B422CB616F3A255D48671&CID=11C
1AE0EB3896EA01E31A44CB2B86FF6&rd=1&h=YEbQRogJRQm05KAaMeMa1y
ZjP2iSryJUtlTnuJG09Zk&v=1&r=http%3a%2f%2fdennys.com%2f&p=DevEx,5064.
1
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nearly synonymous with racism." (Minorities & Emerging Markets). (n.d.). Retrieved
February 28, 2017, from https://www.thefreelibrary.com/Denny's
6. Gotham, I. (n.d.). Denny's - Denny's Case Study by Gotham, Inc. - Case Study.
Retrieved March 11, 2017, from http://www.adforum.com/creative-
work/ad/player/34473394/dennys-case-study/dennys
7. A Grand Slam: Denny's SoCal Success Story. (2016, December 21). Retrieved March
11, 2017, from https://www.kcet.org/food-living/a-grand-slam-dennys-socal-success-
story

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