Selection 3. Waitpersons at two affiliated restaurants with poor sales figures had asked for raises in hourly pay that t

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answerhappygod
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Selection 3. Waitpersons at two affiliated restaurants with poor sales figures had asked for raises in hourly pay that t

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Selection 3. Waitpersons at two affiliated restaurants with poor sales figures had asked for raises in hourly pay that the owners could not afford. The owners wondered if there could be an alternative mutually beneficial arrangement between them and their employees, and so they requested help from researchers in the field of organizational behavior management. For the next four pay periods, the researchers recorded the mean dollar earned per hour of work (wages), a statistic important to the waitpersons, and sales per labor hour (productivity), a statistic important to the owners. Then, during a staff meeting at each restaurant, the waitpersons were told that each of them would be paid 7% of their gross sales rather than a fixed amount per hour. This pay change was scheduled to start concurrently with a new "two-for-one special" promotion in local newspapers. Data continued to be recorded for four more pay periods. The researchers discovered, much to the owners' delight, that productivity rose by 15% at Restaurant A and 12% at Restaurant B (and much to the waitpersons' delight, wages increased by 30% at Restaurant A and 20% at Restaurant B). We can conclude that the new performance contingent pay system improved the waitpersons' productivity, a conclusion bolstered by the fact that the effect was replicated across the two restaurants.
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