Eddy has the world’s best recipes for Chili and Hot Dogs, and at the urging of f

Question

Eddy has the world’s best recipes for Chili and Hot Dogs, and at the urging of family and friends, is finally opening his restaurant, “Fast Eddy’s”. He has ample personal resources from his fortune earned as a stock trader, so finance is not a concern. He does however, have limited experience as a business operator, and has some decisions to make. Please address the following questions to help him make his choices.

3. Eddy wants to have happy employees, as he believes that will result in better performance. Please make one specific suggestion for a motivating technique he could employ, and explain what motivational theory it relates to.

4. The idea of franchising his idea has crossed his mind. If he were to take that step, what issues, positive and negative, would you anticipate him encountering in the early years of his operation?

Explanation / Answer

3. Motivational technique :-

As Eddy's main priority is to make employees happy and satisfied to get a better performance from them, so according to that we can use a technique.

1. Compensation and Engagement :-

Eddy understood the importance of employee motivation. As he is financially stable so he can increase the basic payscale of the employees. More or less payscale motivates employee as we all know. Or he can also provide a good amount of bonus to the employees. One disadvantage of this is that employees may not remember the increment in wages few months later, so he can provide stock options, merit pay etc. This can definitely motivate and can make them happy as well.

As he is involved in restaurant business, so he also can provide housing allowances to his employees near the company. Health insurance can also be a good option to retain employees. Eddy can give commission to employees from time to time.

Other important technique to make employees happy is to involve them in business decissions. When employees feel valuable and worthy for the company then they will automatically feel motivated and can give a better outcome. Sharing and discussing ideas with then can develop their confidence. They must feel connected all the time.

Motivational theory :-

According to the situation, theory which suits is Maslow’s need hierarchy theory. This theory was coined by Abraham Maslow in the year 1943.

His theory mainly based on the Human needs. His point is that an individual's basic needs must be fulfilled to motivate him to achieve a great performance. The needs are -

Eddy must fulfill those 5 needs of employees to expect a better performance from his workers. He can follow Maslow's theory.

4. Franchising :-

Implementing a franchise can be a really challanging stuff to a start-up company. In some companies it is seen that implementing a proper franchise helped the company for rapid growth. Depending on the agreement, franchisor gives raw materials, equipments, start up packs etc to the franchisee.

Positive issues :-

Nagative issues :-

Hope it helps :)

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