Seminar In Management Accounting Instruction To Students

Seminar In Management Accountinginstruction To Studentsthis Assignmen

Seminar In Management Accounting instruction To Students: This assignment is to be done in a group of 7-8 students. Each group needs to read the provided case, discuss the answers to the questions given, record the discussion, and submit it through OL. Written answers are not required; however, each answer must be clearly mentioned in the video. Additionally, each student should evaluate the contribution of each team member regarding this assignment using the Ethics and Professionalism Rubric.

The case involves D’Sintok, a restaurant chain based in Sintok, established in 1994 by Mr. and Mrs. Ramli. The restaurant offers Thai dishes like tomyam, pattaya fried rice, and Thai soups. As of 2020, D’Sintok has expanded to 15 branches across Malaysia with approximately 230 employees. Its growth is supported by the nearby university and a strong customer focus, emphasizing menu variety, fast delivery, hygiene, and frontline service quality.

D’Sintok employs a functional-based organizational structure, with each branch managed by family members acting as trusted managers. The branches follow preset Standard Operating Procedures from the main headquarters. Larger branches have assistant managers and administrative staff, with chefs and waitstaff forming the core operational team. Staff are compensated with basic wages plus medical benefits; monthly salary increments are provided, offering employees a sense of job security.

Waitstaff are paid a combination of basic daily wages plus a piece-rate pay system where 5% of each served plate is allocated into an account, which is then evenly distributed among waitstaff monthly. This system aims to boost motivation but also creates potential conflicts, especially as team performance is the basis for rewards, leading to perceptions of unfairness among employees.

Earlier, young, part-time employees with limited skills worked at D’Sintok, primarily seeking income and experience. Many had no long-term plans with the company, resulting in minimal concern for organizational performance. The company also implements monthly recognition awards for the top-performing branches, fostering competitive motivation amongst branches.

Initially, Mr. and Mrs. Ramli allowed branch managers considerable autonomy, treating them as business partners. However, as the business expanded, maintaining high employee performance became more challenging. Concerns arose over disparities in monetary benefits, particularly as waitstaff earnings from piece-rate pay exceeded those of some managers, damaging relationships and morale.

Paper For Above instruction

This paper analyzes the motivational factors employed by D’Sintok, identifies sources of conflict within the organization, and examines the leadership style practiced by Mr. and Mrs. Ramli based on the case details. These insights are crucial for understanding how management practices influence employee motivation, conflict resolution, and leadership effectiveness in a growing restaurant enterprise.

Motivational Factors in D’Sintok

Motivation plays a vital role in employee performance and organizational success. D’Sintok employs several motivational strategies aimed at enhancing employee engagement, satisfaction, and productivity. Three primary motivational factors evident in the case include financial incentives, recognition programs, and job security.

Firstly, the financial incentive system—comprising basic wages, medical benefits, and piece-rate pay—serves as a key motivator. The piece-rate system, in particular, incentivizes waitstaff to serve more dishes as their income correlates directly with their effort. This method aligns individual motivation with organizational goals by rewarding productivity, thereby encouraging employees to perform efficiently (Deci & Ryan, 2000).

Secondly, D’Sintok’s recognition program, which awards a "Top Performer of the Month" certificate to the branch with the highest sales, fosters a competitive environment that recognizes individual and team achievements. Such recognition enhances employees’ self-esteem and sense of accomplishment, which are critical components of intrinsic motivation (Maslow, 1943). Recognition initiatives create a sense of achievement and loyalty, motivating employees to sustain or improve their performance.

Thirdly, job security through stable salaries, annual increments, and medical benefits provides employees with a sense of stability and safety. In a competitive industry, this security can diminish anxiety over job loss, thereby motivating employees to focus on their work without undue concern for their livelihood (Herzberg, 1966). This factor is particularly evident among managerial and administrative staff who rely on consistent income and benefits.

Sources of Conflict in D’Sintok

Despite these motivational strategies, conflicts have emerged within D’Sintok, primarily due to disparities and perceived inequalities. Three notable sources of conflict include the pay disparity between waitstaff and managers, team-based performance evaluation, and management-employee communication issues.

First, the pay disparity generated by the piece-rate system leads to dissatisfaction among managerial staff who perceive that waitstaff are earning more through incentivized performance than they do through fixed salaries. This imbalance creates resentment and tension, undermining team cohesion (Rahim, 2002). Managers may feel undervalued, which hampers effective cooperation vital for operational success.

Secondly, the team-based performance evaluation system, while fostering teamwork, also introduces potential conflicts. Employees who work harder often feel it is unfair to share extra earnings with less-performing colleagues, leading to perceptions of unfairness and favoritism (Mannix & Neale, 2005). Such conflicts can impact teamwork, motivation, and overall morale.

Thirdly, communication issues between management and employees contribute to conflict. As the organization expanded and autonomy was reduced, misunderstandings and frustrations increased, especially regarding monetary benefits and career development. The disparity in benefits and recognition can generate dissatisfaction, eroding trust and loyalty (Bass, 1990). Effective communication is vital to mitigating these conflicts and maintaining harmonious working relationships.

Leadership Style of Mr. and Mrs. Ramli

The leadership style demonstrated by Mr. and Mrs. Ramli appears to be a blend of laissez-faire and strategic leadership. Initially, their approach was highly autonomous, entrusting branch managers with significant decision-making authority and treating them as trusted business partners. This delegation exemplifies a laissez-faire leadership style, fostering independence and ownership among managers (Bass & Avolio, 1994).

However, as the business expanded, the Ramlis’ leadership exhibited elements of strategic leadership—intervening when necessary to address issues such as income disparities and organizational conflicts. Their awareness of operational challenges and efforts to maintain brand reputation reflect a strategic perspective aimed at long-term success (Avolio & Bass, 2004). Nonetheless, the passive aspects of delegation suggest that their leadership may lack direct supervision or transformational qualities often associated with dynamic leadership models.

Overall, their leadership style emphasizes trust, autonomy, and strategic oversight, which initially empowered managers but later required adaptation to address challenges of growth and employee relations. To enhance organizational effectiveness, adopting a more transformational leadership approach—motivating and inspiring employees—could be beneficial, especially in managing conflicts and fostering commitment (Bass, 1985).

Conclusion

This analysis indicates that D’Sintok employs motivational factors such as financial incentives, recognition, and job security to stimulate employee performance. However, conflicts arising from pay disparities, team performance evaluation system, and communication barriers highlight areas needing improvement. The leadership style of Mr. and Mrs. Ramli, characterized by delegated autonomy with strategic oversight, has been effective in initial stages but may require a transition towards more transformational practices to address the complexities of organizational growth. Implementing these managerial and leadership improvements can promote a more motivated, cohesive, and high-performing workforce, ensuring sustained success in an increasingly competitive industry.

References

• Avolio, B. J., & Bass, B. M. (2004). Multifactor Leadership Questionnaire Manual. Mind Garden.
• Bass, B. M. (1985). Leadership and Performance Beyond Expectations. Free Press.
• Bass, B. J., & Avolio, B. J. (1994). Improving organizational effectiveness through transformational leadership. Sage Publications.
• Deci, E. L., & Ryan, R. M. (2000). The "what" and "why" of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11(4), 227–268.
• Herzberg, F. (1966). Work and the Nature of Man. World Publishing Company.
• Mannix, E., & Neale, M. A. (2005). What differences make a difference? The promise and reality of diverse teams. Psychological Science in the Public Interest, 6(2), 31-55.
• Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370–396.
• Rahim, M. A. (2002). Toward a theory of conflict management styles. International Journal of Conflict Management, 13(3), 206–235.