Question

What happens when your CEO wants to remove the tip structure from your restaurant? Do you complain about the new prices as a customer? Do you worry about your paychecks as a server?

 Danny Meyer, CEO of Union Square Hospitality (home to some of the most successful New York restaurants), discovered these answers when he began eliminating the tip structure in most of his restaurants. He had seen firsthand the largest negative impact of a tipping culture: employees stuck in front-line positions with no chance to advance to management without taking significant pay cuts.

 Meyer began by first involving the affected employees in town-hall talks. These town halls happened months before any publicity was released. Meyer then hosted town halls with customers to explain the importance of fair wages for all his employees at the restaurant, not just the few who served the food. The transition period for each restaurant to eliminate tips was usually three to six months.

 As a result of eliminating the tip structure in most of his restaurants, Meyer has been able to increase the pay structure for cooks at those locations, which enables him to fill more cook positions and address a common industry shortage. Meyer has also been able to hire employees with a purpose to deliver exceptional 

hospitality. Meyer encourages his employees to take care of each other first, and to then take care of the customer, which creates a virtuous cycle of hospitality.

 

Meyer constantly uses feedback from his employees even after the tip structure was eliminated. He wants to ensure that each employee feels their voice is heard and understood. Employees continue to have access to town-hall meetings and internal feedback channels to offer honest feedback.

Critical Thinking Questions

 

 

1. What type of change is this: transformational or incremental? Why?

 

 

2. What level(s) of change is Meyer aiming for in this case?

 

3. What models are consistent with Meyer’s process for designing and implementing change?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Management

Other

Related Management Q&A

Find answers to questions asked by students like you.

Q: Why have companies traditionally used control charts with3-sigma limits instead of 2-sigma limits?

A: Market research refers to the process of recognizing the various elements prevailing in the market, ...

Q: What is active perception and how it is created. How it helps marketer in designing the advertisemen...

A: Individuals are bound to purchase from an organization when they see others utilizing and getting a ...

Q: What are the three levels of management within the context of the purchasing and supply chain functi...

A: The three levels of management are used in supply chain management as well. In supply chain manageme...

Q: Back in the early 20th century, automobiles were made one at a time by craftsmen who could perform e...

A: Option B is correct, The reason is that work specialization is also known as the division of labor, ...

Q: Personal branding helps leaders for developing their charisma and reputation? Do you agree or disagr...

A: Personal branding refers to the determination of goals, establishing a character, pinpointing your u...

Q: Assertiveness refers to being forthright in expressing demands, opinions, feelings, and attitudes. B...

A: Assertiveness helps leaders to perform many tasks and achieve goals. Assertive leaders and success g...

Q: Q1. Consider the following scenario shown below. Discuss how the researcher should proceed; that is,...

A: Research -  It is a process which is used to make a systematic enquires that will lead to the connec...

Q: Personal branding helps leaders for developing their charisma and reputation? Do you agree or disagr...

A: Leadership is an integral part of effective management. It is defined as the potential to influence ...

Q: Due to pandemic situation what different types of medium can be used for job interviews? Illustrate ...

A: Job interview is a step in the recruitment process. It consists of an oral examination of the applic...

Q: Assuming that dramatic losses of business activity have necessitated reorganizing, revise your origi...

A: The chain of command is a typical term for the vertical detailing a power relationship in associatio...

Q: What difficulties and challenges do you face when writing research reports? You may share advice you...

A: Research report -  A types of data which is recorded and collected by the researcher, it is collecte...

Q: Q1. Differentiate and discuss the different recruiting methods available to a HR manager during the ...

A: Recruitment is the process of attracting the applications for the job profile or it can be said it i...

Q: Amazon Sets a Demanding Pace on the Job  In a visit to an Amazon distribution center, a group of bus...

A: Amazon has their large warehouses, and some of the warehouses are automated, but some have a manual ...

Q: Business Management

A: A business organization is responsible for carrying different tasks, procedures, and activities to g...

Q: Case study Fadli are the operation manager for a software company since July 2019 and was asked by t...

A: The process by which people settle down their differences is known as the negotiation process. Throu...

Q: Mr. Ali is a fresh graduate and he is employed at ABC Company. He is a fresh graduate and it’s his f...

A: Motivation is the self urge to willingly participate in a task. An employee should always be self-mo...

Q: Case StudyIt used to be that putting on a watch was just a standard part of getting dressed in the m...

A: Apple has changed the way people live their lives with watches. The company’s iPhone, iPad, MacBook ...

Q: This is my international business management midterm assignment

A: The business has to make different strategies for International Trade and for expanding in a new for...

Q: Explain the relevance of each of the following terms and concepts to a non management professional. ...

A: A non-management professional is a person who doesn't know about the terms and concepts used in mana...

Q: Q1-(a) Due to a pandemic situation what different types of medium can be used for job interviews? Il...

A: 1. (a) Interview is an important step in the recruitment process. It enables the hiring manager to p...

Q: Q2: A researcher wants to study the relationship between green human resource management practices a...

A: Hello thank you for the question. As per guidelines, we would provide only one answer at a time. Ple...

Q: : 1We know that providing appropriate service quality to the customer for any order fulfillment syst...

A: Good customer service is very important for any business. Many organizations focus on faster and eas...

Q: Staff members are moved to new jobs as a means of enriching and stretching the staff member, given t...

A: Employers use various techniques to improve their productivity by motivating employees by adding mor...

Q: Discuss the SWOT analysis which DELL can use in assessing the Supply Chain Risk in thedynamic Comput...

A: Strategic advantages are the marketplace benefits that create a decisive influence on a firm’s likel...

Q: Explain how being highly self-confident in a given leadership situation might not be an advantage. D...

A: Leadership in business is the capacity of a company's management to set and achieve challenging goal...

Q: The manager of a popular tourist resort wants to use the manual trend projection forecasting techniq...

A: The equation for exponential smoothing is- Ft = F t-1  + α(A t-1 – Ft-1) Ft  = the exponentially smo...

Q: Top-level leaders of major business corporations receive some of the highest compensation packages i...

A: Executive compensation follows the fundamental principles of rewards administration: attract and ret...

Q: Define privacy in common sense.

A: Privacy -  It is the ability of a person or a group to take its knowledge towards themselves, and th...

Q: Based on any collecttion data,  what are the strengths andweaknesses of your data collection based o...

A: Various modes of data collection are handled by responsive management. Each mode has its own strengt...

Q: Explain your understanding of the following concepts. Use own examples to support your answer Transf...

A: The business environment is dynamic in nature. It includes an in-depth study of various aspects rela...

Q: What are the various environmental factors that a manager should consider in an organization? Discus...

A: The forces and factors that affect organizational performance internally and externally are called e...

Q: 2. What are the most common defenses to trademark infringement in today's world where there are so m...

A: Trademark infringement happens when utilization of a mark by another would almost certainly confound...