Eliminating Tip Structure

Please read the scenario below, and then answer the questions that follow in a 3-page analysis of the chief executive officer’s (CEO’s) approach. The questions will guide your analysis of the situation, but they need to be presented as part of a summary on the CEO’s management approach.

Scenario:

Danny Meyer Leads His Company Through the Challenges of Eliminating Tips

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 frontline positions with no chance to advance to management positions 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 of his employees at the restaurant, not just the few who served the food. The transition period for each restaurant to eliminate tips was usually 3–6 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 that his or her voice is heard and understood. Employees continue to have access to town hall meetings and internal feedback channels to offer honest feedback.

(Dunn, 2018; Feldman, 2018; Matousek, 2017)

Please answer the following questions:

1. What dimension of change is Danny Meyer implementing in this case study?
2. What level of change is Meyer aiming for in this case?
3. What type of change did Meyer implement?
4. What model would be consistent with Meyer’s process for designing and implementing change?
5. Meyer had a very specific set of activities that he hoped would help him achieve a specific goal. What kind of change would this be an example of?

Submitting your assignment in APA format means, at a minimum, you will need the following:

• Title page: Remember the running head. The title should be in all capitals.
• Length: 3 pages minimum
• Body: This begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 3 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
• Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

Grading Rubric: Maximum 100 Points

Grading Criteria

Points

Deliverable requirements addressed; understanding of material and presenter’s message and intent are clear 

40 points

Followed assignment guidelines and criteria

20 pts

Yes/Complete

Mostly

Not at all

Overall quality

20 pts

Excellent

Satisfactory

Needs Improvement

Scholarly research that supports the writer’s position is properly acknowledged and cited, and direct quotations do not exceed 10% of the word count of the body of the assignment deliverable 

25 points

Title page, table of contents, tables, exhibits, appendices or reference page included

12.5 pts

Yes

Partially

Not at all

Content is original with less than 35% match

12.5 pts

Yes

36–50%

51% or over

Critical thinking: Position is well-justified; logical flow; examples  

10 points

Position is justified with examples

5 pts

Excellent

Satisfactory

Needs Improvement

Presentation flows logically

5 pts

Excellent

Satisfactory

Needs Improvement

Structure: Includes introduction and conclusion, proper paragraph formatting, and reads as a polished academic paper or professional presentation, as appropriate for the required assignment deliverable

7.5 points

Includes introduction and conclusion

2.5 pts

Excellent

Satisfactory

Needs Improvement

Paragraphs are formatted properly

2.5 pts

Excellent

Satisfactory

Needs Improvement

Reads as polished academic paper or presentation

2.5 pts

Excellent

Satisfactory

Needs Improvement

Mechanical: No spelling, grammatical, or punctuation errors 

10 points

Spelling and grammar are accurate

5 pts

Yes

Partially

Not at all

Punctuation is accurate

5 pts

Yes

Partially

Not at all

APA: Deliverable is cited properly according to the APA Publication Manual 

7.5 points

References are cited in accordance with APA formatting

5 pts

Yes

Partially

Not at all

Reference page is included

2.5 pts

Yes

Partially

Not at all

Other Information

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