Joe's Hamburger Grill Discussion
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.
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.
This study source was downloaded by 100000812546443 from CourseHero.com on 11-22-2023 07:04:53 GMT -06:00
https://www.coursehero.com/file/81755728/CH11-Joes-Hamburger-Grill-Discussiondocx/
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.
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.
This study source was downloaded by 100000812546443 from CourseHero.com on 11-22-2023 07:04:53 GMT -06:00
https://www.coursehero.com/file/81755728/CH11-Joes-Hamburger-Grill-Discussiondocx/
