M: Organizational Behavior 2nd Edition by Steven McShane, Mary Von Glinow

Exercise 23

Case Synopsis
Cincinnati Super subs is one of 300 restaurant franchises throughout Indiana, Ohio, and Michigan. Each operation has one manager, an assistant manager, a few team leaders, and many employees (mostly college and high school students who work part-time). Most employees earn minimum wage. The manager and assistant manager get a bonus for keeping costs (wastage) low. However, employees raise costs by helping themselves to food, and by adding free ingredients when their friends order a sub. Errors are supposed to be charged back to the responsible employee, but the night manager rarely writes this up because of peer pressure. The manager tried to reduce costs by reducing the free food allowance only to staff who work six or more hours (most work less than that minimum), but employees still nibbled whenever the manager or assistant manager were away. Morale fell and about 20 percent of the experienced employees quit. The high turnover and resulting staff shortages required the manager and assistant manager to train staff and spend more time in food preparation (even managers are discouraged from working directly in food preparation.) Accidental wastage increased due to new staff but deliberate wastage feel while the managers were in the restaurant. However, wastage increased again almost immediately after the managers stepped back from daily operations. In response, the manager withdrew all free food allowance and threatened to fire employee caught consuming food.
What are the main causes of these symptoms?