Management Homework Help

The Saddle Creek Deli had been so successful that Richard Purvis, owner and manager, hired a manager so that he

could devote time to other business interests. He selected Paul McCarthy, whose prior experience included the supervision of a small restaurant. McCarthy was paid a straight salary plus a percentage of the amount he saved the business monthly, based on the previous month’s operating expenses. All other employees were paid a straight hourly rate. McCarthy single-handedly decided to initiate a cost-saving program designed to increase his earnings. He changed the wholesale meat and cheese suppliers, lowering both his cost and product quality. He reduced the size and portion of everything on the menu. He discontinued the one-dollar meals for employees and eliminated the employee discount. Frustrated, the employees streamed out of the meeting and quietly grumbled about the changes. Tension mounted and resentment toward McCarthy grew.

How do you think Purvis could improve communications between McCarthy and the employees? Be specific in your recommendations.