Bryan Owens is a part- time manager at Rusty ’s Steak House. The owner of Rusty ’s spends his time split between Rusty ’s and three other restaurants he owns, so he has to rely on his managers to keep his restaurants operating successfully. To keep track of things, Rusty uses the same set of monthly performance measures for every manager. They are:

Lately, Bryan has noticed that the other managers are leaving him with a messy restaurant and kitchen. Bryan is very conscientious, so he ends up having his employees spending more time cleaning than performing some of the other “jobs” around the restaurant, such as chatting with customers. He knows it is important to have customer loyalty, but he just cannot stand a dirty restaurant. The other managers are doing far better on profitability, number of customers served, high bills, and repeat customers. Bryan is doing better on complaints.

REQUIRED:

a. Analyze the operations at Rusty’s Steak House. What type of measurements is he using?

b. What dysfunctional consequences are present in the company?

c. What would you recommend Rusty do to ensure that all five measures are met by all of his managers? In other words, should he fire Bryan or promote him?

Transcribed Image Text:

Goal Measure Profitable operations Sales per hour Growth in total customers Total customers served Minimd customer complaints Number of customer complaints High averoge order size Average size of bill High % repeat customers Number of customers known by name