A restaurant chain located in California made certain offers to order sandwich wraps using fresh, healthful ingredients. The creators of the company take an extremely effective role in day-to-day business and tightly control every aspect of the restaurant operation from hiring store managers to planning the menu. Management is concerned that employee turnover is high, customer satisfaction is falling, and revenue growth is flat.
WrapItUp Developing a New Compensation Plan Case Solution
The newly hired human resources leader believes addressing employee turnover can help solve the other issues. She develops a profit sharing plan as a pilot at two restaurants. The managers in the pilot program have their compensation tied to restaurant profits. The application also enables managers work with local providers to customize menus, and try different promotion notions. While customer reviews are blended after six months, profits at the pilot locations improve. The HR supervisor must review the whole results and decide whether to roll out the pilot program to more places, change the program, or abandon it completely. Students consider the functional challenges of running a service business as well as the issues related to worker autonomy, change management, and compensation.
PUBLICATION DATE: November 04, 2011 PRODUCT #: 4362-HCB-ENG
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
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