Company Background

Club Gelato is an ice-cream parlor offering Italian gelato with different flavors. It is a joint venture of Singapore and Bangladesh. In Bangladesh there is only one branch of Club Gelato, which is in Banani 11. They take all the materials from Italy and manufacture the ice-cream over here. Club Gelato has made quite an impression on ice-cream lovers with its unique flavors, including the famed Ferrero Rocher. Club Gelato also serves gourmet coffee and delicacies such as cheesecake, chocolate crunch cake, and tiramisu. Most of their desserts make excellent combinations with their gelato flavors. Club Gelato's atmosphere is spacious, trendy, and comfortable. It is a favorite amongst everyone! If anybody has a weakness for sweet, Club Gelato guarantees to satisfy him or her. Club Gelato offers various types of ice cream, shakes, coffee, tea, cakes, and other sweet items. Gelato is a fairly new chain here in Dhaka, and so all the kinks, such as dcor, are not yet worked out. However club gelato assures that the mouth-watering ice creams will definitely make the day more cheerful with its outstanding service. Club Gelato usually prepare soften ice cream. For the health conscious people they have three types of sugar free Ice-ream such as Hazelnut, chocolate and coffee. They have specialty offering on Sunday. It is open every day up to 10.30 to 11.30. During special events such as Eid, Valentines Day, Friendship day, Pahela baishakh Club gelato has more sales. They have the highest sales volume on Ferrero Rocher.
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Board of Director

Head of Operation
Super Visor

Waiter

Figure: Organ gram of Club Gelato

People see compensation from different point of views. The major points are: 1. Society: Club-gelato considers the societal needs and the expectations of employees while designing their pay model.

2. Stakeholders: The Company is a joint venture and the stakeholders have a great observation on the pay structure. The stakeholders provide 10% commission to the employees on sales, which make the employees motivated to increase the sales. 3. Managers: The compensation, which is an expense, has to be maintained by a manager. In this firm the there are no manager. Here supervisors are doing the job of the managers. And the employees feel the need of a manager. 4. Employees: Employees have their own view about the pay policy. In this firm the employees are satisfied with the policy of the firm. But again they want incentive on transportation facility. Forms of Pay: 1. Cash compensation: Employees get a basic salary on per month basis. 2. Merit Pay: Employees get performance commission based on their basic pay. 3. Incentives: The employees of Club-gelato get incentives on Yearly two bonus Lunch coupon Medical allowances
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3. Income protection: In case of any unexpected situation employees get paid leave facility. Even if an employee gets married they get special allowances from the firm. 4. Housing / Transportation: These two are not included in their pay model as incentives. These would make the employees more motivated. Objectives 1. Effeciency: Employees are selected as trainees first. When they get more experienced they are paid based on their performances, quality of their skills customers and stakeholders feedback and most important thing the cost of the firm. 2. Fairness: It is the most important issue of pay model. The firm has to maintain the fair evaluation for paying the employees.

3. Compliance: The pay model and the pay structure are designed by the administration. They are the rule makers or policy makers that have to be followed. Policies 1. Alignment: Internal alignment is the comparisons among the jobs inside the company. Which job is to be done and how to be done. Based on this ranking jobs are designed. 2. External competitiveness: The industry on which Club-gelato is doing business it is very difficult to compare the pay structure with other firms as the information are very confidential. But the employees are satisfied with the internal alignment policy. 3. Employee contribution: A very important factor that motivates employees. At Club-gelato the employees are directly responsible for the sales and for that they also get commission on sales. 4. The management: In Club-gelato the employees are satisfies with their compensation policy. This shows that the management is making it sure that the right people are getting the right pay for achieving the right objective in a right way.

Similarities and differences in strategies 1. Different strategy in the same industry: Cream and Fudge, Move-n-Pick, Buskin-n-Robbins are some other name of the firms doing business in the same industry of Club-gelato. But the compensation strategy of all these firms is different from others. 2. Different strategies in the same company: Though the Club-gelato is a joint venture of Bangladesh and Singapore but they use different strategies for the two different places. The strategic choices: 1. Corporate objectives: The Club-gelato is doing business of a food shop of ice creams and deserts. Their vision is to be the number one ice-cream shop of Dhaka city. 2. Business strategies: Competing with the all other ice-cream shops and food shops and the strategic objective is to be the number one in the whole industry.

3. HR strategies: Managing the employees with all their expectations and needs will make the employee satisfied and motivate them in turn the sales increase. 4. Strategic compensation decision: While designing the pay model the firm uses the strategic policies. 5. Compensation system: Club-gelato has designed its compensation system that makes their employees satisfied with the compensation system. 6. Employee attitudes and behavior: Employee attitudes and behavior is very much important fact that is considered to support a business strategy. 7. Competitive advantage: The firm gets competitive advantage from other firms as their strategy of compensation providing 10% commission of the sales to the sales person. Developing a total compensation strategy 1. Asses total compensation implication: Te competitive strategies are to be considered, the culture and values of the social context is to be revised. The social and potential conditions, employee union needs and other HR systems are has to be taken under consideration. 2. Map a total compensation strategy: For designing a total compensation the objectives, internal alignment, competitiveness, employee contribution and the organizational management is considered. 3. Implement strategy: For implementing the strategy the strategies have to be translated into action. Some techniques are also needed to make the strategy fit into that action. 4. Reassess: Realign as the conditions that has been changed. And realigning the strategies as those strategies change. Three tests of sources of competitive advantage 1. Align: Club-gelato aligns with their internal jobs and external strategies as well. 2. Differentiate: Through the facilities and incentives Club-gelato differentiates from other firms. 3. Add value: Club-gelato is getting increased productivity from their incomes, benefits that they pay to the employees.

HR Practices and Compensation Structure of Club Gelato HR Practiced of Club Gelato Recruitment Training Performance Management Labor relation Employee relation Job analysis Job design

Selection Development Incentives Benefits Recruitment and Selection process in Club Gelato Recruitment is the process through which the organization seeks applicants for potential employment. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that will help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing will have a direct impact on the types of employees that it seeks to recruit and selection. Staffing For the most part, the restaurant business is hierarchical. Like the army, everyone has a title and a role to play. Busboys and dishwashers are at the bottom, while managers and Executive Chefs are at the top. The staffing structure will depend on the concept of your restaurant. Club Gelato normally recruits high quality ice cream makers as their main cook. Their supervisor is also very loyal to the company and working for almost 12 years. And they also do their staffing through internal source of recruitments; external recruitment is also done at Club Gelato. Be forewarned -- staffing your restaurant and keeping it staffed will be one of your most difficult and time consuming tasks. Unless you have a large family and they all intend to work at the restaurant, you'll have to be hiring part-time and full-time help. Turnover is notorious in the restaurant industry. These factors make it hard to attract and retain top people
1. Pay is relatively low in the Club Gelato due to the low margins of the business. 7

2. Restaurant work, especially entry positions in the kitchen and in the front of the house is usually filled with people in their late teens and 20's that usually leave for better positions or to continue their studies.

3. Other Ice cream parlors will try to hire away good people. 4. Areas with low unemployment and few employees find it harder to fill restaurant positions. 5. People who will work for the low wages you will most likely offer for some of the most menial positions (bussers, dishwashers, etc.) may have little education. Some have criminal records. Others have drug and alcohol problems. So, keep your eyes and ears open.

Benefits & Incentives Key Tools for Attracting & Retaining Good People There's a lot of turnover in the restaurant business, so to minimize it, offer employees benefits and incentives that will make them feel appreciated and much more inclined to uphold the highest standards at all times.

Incentives are a fun way to drum up healthy competition between employees and to get sales up. Club Gelato offers a free meal to the person with the highest weekly sales. At one restaurant where each week, a different ice cream would be highlighted, the employee who sold the most ice-cream of that flavor would earn a gift certificate to a favorite store. Empowering Employees Employees who are encouraged to make decisions by themselves when on the job and who have the authority to solve problems and keep customers happy are generally more satisfied with their job than employees who must always seek out a manager. Owners who empower their employees have lower turnover and higher customer satisfaction. So, when interviewing and hiring staff, look for people who like to think on their feet, are decisive and take initiative. You'll end up with a happier, more efficient staff Pay Structures A company's pay structure is the method of administering its pay philosophy. The two leading types of pay structures are the internal equity method, which uses a tightly constructed grid to ensure that each job is compensated according to the jobs above and below it in a hierarchy, and market pricing, where each job in an organization is tied to the prevailing market rate. Training program of Club Gelato

Training is a process of learning a sequence of programmed behavior. it is application of knowledge. It gives people an awareness of the rules procedures to guide their behavior. It attempts to improve their performance on the current job or prepare them for an intended job. Development is a related process. It covers not only those activities which improve job performance but also those which bring growth of the personality; help individuals to the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and women. In organizational terms, it is intended to equip person to earn promotion and hold greater responsibility
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There are many types of method practices in Club Gelato. these are 1.On the job,2.job Rotation, 3.Apprenticeship training to increase employees work ability and other leadership activities.

Incentives Compensation fluctuates according to A pre-established formula Individual or group goals because group goals are different from individual goals Company earnings Incentives adds to base pay It controls costs because the employee is being paid for his/her extra effort and for the benefits brought to the organization. Motivates employees

Incentive Pay Categories Individual Group Company-wide

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Individual incentive plans Quantity of work output (How many units produced) Quality of work output (What was the quality of the product or service being produced or served) Monthly sales (How much sales was generated) Work safety record (How many hazard or errors are being reduced. Work attendance (If the absent is reduced or attendance is good)

Group Incentive Performance Measures Group incentive plans Customer satisfaction Labor cost savings Materials cost savings Reduction in accidents Services cost savings

Company-Wide Performance Measures Company-wide incentive plans Company profits Cost containment/prevention Market share Sales revenue

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Individual Incentive Plans (Piecework plans) Awards based on individual production vs. company standards Awards based on individual performance standards using objective & subjective criteria Quantity and / or quality goals

Advantages and disadvantages of Individual Incentive Plan Advantages Helps relate pay to performance Promotes equitable distribution of compensation Helps retain best performers Compatible with individualistic cultures and societies

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Disadvantages May promote inflexibility Unrealistic standards may hamper employee motivation Setting performance standards is time consuming Factors beyond employees control may affect outcomes Factors not rewarded may be overlooked

The Financial and Non-Financial Benefits of Club Gelato

Club Gelato basically is an ice-cream parlor offering Italian gelatos which create an impression on ice-cream with unique flavors. It is located at Banani Dhaka which has only one branch in Bangladesh. The firm provides some mandatory and non-mandatory financial benefits and also some non-financial benefits to its all employees who work in the firm. The company have maintain both fixed and variable pay system for compensate their employees. The firm follows the normal policy of pay system and beside it is giving the basic salary, it also provide the medical allowances with the salary. The facility it does provide to the employee which is food coupon service for all employees. In the area of variable pay system it is mainly recognize individual special awards like

it increase the ratio by giving 10% sales commission for service provider or may the other employee of the firm. The bonus facility which it does provides to the employees that is two times 13 in a year or during the special occasion like festival, marital purpose etc. Club Gelato is a small firm which has a single branch that is why the number of its employees is limited and they are rewarded or recognized on their working place according to some little area of their job factor. Though it is a ice-cream parlor for that the employee always try to provide some extraordinary services to taste their ice-cream or gelatos, pastries and coffee to the customer in a satisfactory way. Because customer satisfaction is highly considered in this field for getting monetary benefits from the company to the service provider. So, for getting some achievement the employee of Club Gelato doing innovative and creative task like to bring some new flavor of ice-cream or added extra ingredients to increase the taste of gelatos or may be doing something more by which customer are attract to taste their offerings which brings more benefit for the firm. The facility that is given by the parlor is not like that who made the flavor he get benefits from the firm but the person who provide the service by giving the idea to make it special or ensure customer satisfaction he get the benefit by getting some commission for sales. Beside it there is no other option or no other chance to get any additional benefits for the employees from the parlor Club Gelato. The firm provides incentives bonus to the employees to enhance their desire to provide quality service. The firm has no share option plan for any employees; it is only applicable for the owner level of the company. The overall compensation system based on the type of the company on an average is not dissatisfactory but may be they want some more.

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A table of Club Gelatos compensation system

The compensation system that given by the ice-cream parlor is given below: (We assume the basic salary level and other financial benefits as the firm provides information about their compensation or pay level policy.) Desi gnation Salary(assumption) Medical allowance Incentives

Accounta nt/head of operation S upervisor 15,000 15% 10% 40,000 15% 10%

worker

3000-5000

15%

10%

Table-1: The financial benefits of Club Gelato

Evaluation of their compensation structure

15 Basically we know that compensation means not only salary but also all over facilities which are offered by the company or the organization. Club Gelato is a small firm & they try to offer or provide almost all things which are essential for their workers & their employees. The club gelato is a small firm but their compensation structure is nearly well mechanized. As a result the workers & the employees almost get all the compensation benefits.

Now discuss about their giving compensation pattern in the below-

Basic salary

Designation Accountant/head of operation Supervisor worker

Salary(assumption) 40000 15000 3000-5000

Source- Hints from club gelato

In the table we can see that the assume salary range of the employees & workers of this firm. Their salary range is obviously good & they paid a standard salary from their authority.

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Incentives (cash)

In this firm the workers get incentives from their performance. They get 10% cash incentives by their performance. So that it is easily mention that if a workers work sincerely he gets 10% incentives. Suppose his amount of incentives is 500 eventually his total return from the organization is

(3000+ 500=3500)

Facilities (others)

They get the facilities of medical. So if they are ill their all medical cost are bear by the organization They get facilities of lunch as well as get the the money for bought snacks 7 other foods They get the facilities in serious matter such as- accidental facor & marriage factor

They get the facilities of leaning. The workers are in the organization easily get the facilities of acquiring knowledge of their relevant work

The authority of the club gelato maintains the standard of compensation structure which are discussing in the earlier. They use the modern pay model techniques which are important for their employees & workers. They maintain this very seriously & sincerely.

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Now discussing these in the below what is their concentrated area-

The authority maintain the similarities of pay structure among the employees & workers They try to their structure from the outside of the organization They focus the contribution of each employees & workers Their management maintain free & fairness about their compensation strategy They obey the rules & regulation which are set by the government

Club Gelato is one of the small firms although their compensation strategy is to much rich & well mechanized. As a result their employees & workers are satisfied for the compensation strategy. They basically focus the performance of the employees & workers. So they are high alert when they work in firm. They motivates their workers & give proper feedback by cash or mentally. They give the honor to the skilled & competent employees as well as the workers. So the productivity & revenue of this firm is increasing day by day. The employees & workers are hope if their salary range & other facilities are increasing its are more benefited them.

Conclusion Club-gelato a food shop in Dhaka, has earned its popularity among many people in Dhaka city. Having only one branch in Bangladesh still the firm is getting very popularity. Like every business the productivity is majorly based on the employees of the firm. Club-gelato takes all of their employees a very good care. Their compensation policy has designed based on the strategies. The employees not only receive their basic pay but also some other incentives. Those incentives have worked as a supportive fact to the employees. The regular pay policy with these incentives is making the Club-gelato reach its strategic objective.

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Recommendation Though the firms employees are satisfied with their compensation policy but yet there are two recommendations for the firm as we have visited and asked their employees some questions. The recommendations are: 1. In the firm the supervisors are acting as the manager. So, the firm should create a position of manager. A manager is responsible to make decisions and maintain the operations of a firm. So, the firm should recruit a manager. 2. The stakeholders have given the total charge of the shop to the upper level employees. But from the point of view of HR we can say that the involvement of the owners with the employees will bring a positive growth to the firm. Employees will also feel themselves important if they get direct involvement with the stakeholders. Because, not always the financial incentives work as motivation.