Joe Hamburger Grill Discussion
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What are some suggestions that might help Joe as he thinks about changing the way he pays someone to manage the Grill?
Joe needs to increase the compensation for a restaurant manager. The fact that one of the managers left for another city where there is higher pay is quite telling, even though employees not only leave for pay. Managers may also change jobs within the same geographical area due to compensation. Joe needs to research and determine what managers doing the same job earn locally to help him pay competitively. Also, he needs to pick on the positive practice where he asked one of the new interviewees what they were earning and then add some money. Need help with your assignment ? Reach out to us. We offer excellent services.
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Do you think Joe’s approach to determining how much to pay a manager was successful? Would you recommend that he do something different?
Joe is implementing a pay-level strategy to decide how much to pay managers. Paying workers more than they may earn elsewhere is one viable compensation method. For example, hotel businesses worldwide aim to compensate their employees more than other firms. However, not all businesses can benefit from spending more than their rivals. There are three fundamental pay level strategies: meet, lag, and lead the market (Stewart and Brown 432). In this context, “the market” refers to a specific set of businesses, such as those in a similar industry or geographical region. If the strategy fails, Joe may try other strategies like linking compensation and strategy. Joe is looking for someone who can treat the business as their own, hence the need to compensate fairly according to strategy.
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How might agency theory guide Joe as he thinks about finding a manager who might someday become the owner of the Grill?
Joe is looking forward to appointing a manager who will share short risks as they seek business growth. In that case, he must be willing to share the potential benefits with the manager (Stewart and Brown 424-425). According to the agency theory, a principal should be willing to share profits with the agent if the business is to succeed. Joe should pay a new manager based on profits besides a standard pay to motivate them to improve the business.
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How can the concepts of equity theory guide Joe’s decisions concerning comparisons with pay in other cities and for other jobs?
The equity theory suggests that employees draw motivation from comparing themselves with others. Employees expect to earn the same level of compensation compared to others with similar inputs and outputs (Stewart and Brown 422). Joe can use the equity theory to formulate a new compensation framework for the new manager; their compensation should be at par or more than industry peers.
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How might FLSA standards apply to Joe’s compensation decisions?
The Fair Labor Standards Act (FLSA) ensures that an organization compensates its employees fairly. One area of the standards that are quite useful is regulations on overtime pay. Accordingly, the new manager may work overtime, and Joe must pay one and a half more for overtime than regular pay.
Works Cited
Stewart, Greg L, and Kenneth G Brown. Human Resource Management: Linking Strategy to Practice. Hoboken, Nj, John Wiley & Sons, Inc, 2019.
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Question 
Please read the case and answer the questions at the end. Please respond to two of your peers. Do you agree or disagree?
Joe’s Hamburger Grill has been doing business in the same location for the past 20 years. The Grill is located in Phoenix, Arizona, and caters to college students by providing some of the world’s biggest hamburgers in a fun and casual dining atmosphere. Joe looks back with fondness on the 20 years that have passed since he first opened the grill. His primary motivation for starting the business was the
opportunity to work for himself. When he graduated from college, Joe took a job as an accountant and worked for a number of different companies. When he turned 40, Joe decided he was tired of working for a boss, so he began looking for an alternative opportunity. Knowing his love for cooking and his flair for providing great customer service, Joe’s wife and friends encouraged him to open the hamburger stand. After taking some time to decide what he wanted to do, Joe followed their advice and founded the business. By all accounts, his efforts can be seen as a success. He has made a good living doing something that he truly enjoys.
Joe Hamburger Grill Discussion
When Joe turned 60 several years ago, he decided it was time to slow down and let someone else deal with the day-to-day hassles of running the business. He hired a manager to oversee operations at the Grill. After three months, the manager quit and started classes at the local university. Joe was then able to hire a manager who stayed for 18 months but left to work at a bigger store in Dallas, Texas. For the last three months, Joe has been trying to hire a new manager. He hasn’t been able to find someone he thinks will be a successful manager. Joe wonders if part of the problem is his compensation package.
When Joe hired the first manager, he decided to pay a monthly salary that included full health benefits. He didn’t know how much to pay for a salary, so he asked the first manager how much she was making. He then offered her a $500 per month increase to work for him. The second manager seemed fine with the amount, but a few recent candidates have told him that he needs to pay more.
One day a customer of Joe told him that she was taking a human resource management class where they were discussing compensation issues. Joe described his dilemma about trying to decide how much to pay a store manager. The customer offered to do some research and learn more about pay levels for managers. A few days later she brought Joe a graph that had information about pay practices. She told Joe that she had been unable to locate specific information about pay for restaurant managers. However, she had found some information about food service supervisors. Just looking at the information she felt that the amount for the supervisor position was probably too low for someone who actually managed the entire restaurant. She thus found some additional information about the wages for general managers. She also looked at compensation figures for people who owned sales-related businesses. Knowing that Joe had lost one manager to a job in Dallas, she included information about compensation in Dallas and another large city-Los Angeles.
Joe looks at the information in the graph and wonders what to do with it. He wonders how important it is to take into account pay in other cities. Will he need to pay wages similar to what is being paid to managers at larger companies? Joe’s goal is to find a manager who will treat the Grill like an owner. He wants the manager to commit to several years of building and maintaining profitability. If things work out, he might even be willing to sell the Grill to a high-performing manager who shows loyalty.
Questions:
1. What are some suggestions that might help Joe as he thinks about changing the way he pays someone to manage the Grill?
2. Do you think Joe’s approach to determining how much to pay a manager was successful? Would you recommend that he do something different?
3. How might agency theory guide Joe as he thinks about finding a manager who
might someday become the owner of the Grill?
4. How can the concepts of equity theory guide Joe’s decisions concerning comparisons with pay in other cities and for other jobs?
5. How might FLSA standards apply to