Someone post from a discussion question.... (Respond to it)

Questions:

What are some suggestions that might help Joe as he thinks about changing the way he pays someone to manage the Grill?

Some of the suggestions that Joe could implement is calling up local businesses that are looking for store managers and seeing what they are offering in terms of salary and benefits. Moreover, Joe can utilize the internet and search for bls.gov to find information on pay and benefits as it relates to his current state and around the country. Furthermore, Joe can implement the analysis that was given to him by a customer to further confirm the hourly pay is in-line with industry norms.

Do you think Joe's approach to determining how much to pay a manager was successful? Would you recommend that he do something different?

Unfortunately, Joes approach is unsuccessful because there is no factual information that would suggest that the amount he is offering is in-line with the consensus of other restaurant management salaries.

How might agency theory guide Joe as he thinks about finding a manager who might someday become the owner of the Grill?

Joe could look for the differences in interests between the manager and himself and could elaborate on the reactions to compensation.

How can the concepts of equity theory guide Joe's decisions concerning comparisons with pay in other cities and for other jobs?

Joe can implement Equity theory to help guide him in determining whether to utilize distributive justice or procedural justice in his business. The difference between the two is: distributive justice focuses on whether the person believes the amount of pay is fair, whereas procedural justice focuses on the process used to decide who gets which reward.

How might FLSA standards apply to Joe's compensation decisions?

FLSA does not apply to a restaurant manager because that position falls under the executive exemption (Primarily manages a business or department). However, any employee that is not categorized in one of the four major exception groups (Executive, Administrative, Professional and Outside sales) are protected under the Fair Labor Standards Act.