Joe believes that his compensation or pay structure to the manager is the reason why he is
Question:
Joe believes that his compensation or pay structure to the manager is the reason why he is quickly losing his manager for the grill. Some advice would be for Joe to look intoor engage an agency to look intothe pay scales of managers or supervisors in the restaurant business in the neighborhood before deciding on his remuneration package. Joe should also pay attention to other factors, such as the work environment and responsibilities at the grill, which may have contributed to the departure of the managers. Finally, Joe should compensate the managers based on their success so that they are inspired and stay at the grill for an extended time. In light of the earlier instance, Joe's strategy for figuring out how much to pay a manager was unsuccessful. Therefore, I would advise him to consider several criteria, in addition, to pay, when choosing a manager for his grill. These additional factors would include health benefits, vacation time, incentives, manager of the month competitions, etc., which would encourage the manager to work in the grill. While any manager can receive the same salary anywhere, having additional benefits with his pay encourages him to stick with one location rather than looking for another. Agency theory would find a manager who would work at the grill; according to Joe, it makes him feel that the manager is fair, hard worker & trustworthy, so he can sell his restaurant when the time comes as the manager would help to grow the business of grill after retirement. This theory would need a person who wants to work as a manager for some years & then opens his restaurant or business. So if Joe puts this theory in front of a manager, the manager can stick to his grill for an extended period. The foundation of equity theory is the notion that fairness serves as a driving force for people. This equity would apply to the pay scale, perks, jobs, and responsibilities. For example, Joe could be able to hire a manager for a long time if he adopts this theory and pays managers or food supervisors the exact amount that other large restaurants do. First, however, Joe must understand that his business may suffer a loss due to the extra salary, but his concerns regarding hiring a good manager would be alleviated.
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Explicit explanation and understanding about the case study with ideas suggestions. Good work!
To hire a manager who needs to be as good as an owner requires putting up an offer that is attractive and fulfilling. Had Joe done some research on how much an ideal pay is for a manager it would have aided him in hiring the right people. ** How do you think Joe can manage to pay the new manager more and still cater to his lower employees?