Castle Family Resturant

Running head: CASTLE FAMILY RESTURANT

Castle Family Resturant

Diane Benkert

Devry University

Introduction

J Morgan, the Operations and HR Manager for Castles Family Resturant has approached Benkert's HR Consulting Firm to help him come up with a cost effective plan on how to do his HR duties without having extensive travel involved. He would like to find a way of visiting each location without having to travel due to the increase of gasoline costs. Mr. Morgan's Job duties include Scheduleing, recruiting, hiring, and answering questions for the employees including payroll for each location. Mr. Morgan uses Excel Spreadsheet and has a computer application to print out payroll checks. Mr. Morgan is getting paid $50,000 a year, with the rise of gasoline the company would have to increase his pay and he is looking to benefit the company without having their profits go down.

Buisness Assessment

Castle Family Resturant has 8 resturants in Northern California. The business employs 300-340 employees, with 40% of the employees being full time, which includes management and cook staff. All of the waitstaff are hired on a part time basis. A theory that best fits the restaurant scene is the Transaction Cost theory. This theory "suggests that organizations can choose to purchase the goods and services they need in the competitive marketplace or make those goods and services internally. Transaction costs are the expenses associated with an economic transaction, whether internal or external. Managers can compare the "transaction costs" required to purchase products/service from external providers, such as contract administration, licenses, and delivery services, with those incurred in providing the same product/service internally by using, for example, additional personnel, retraining employees, and purchasing hardware/software." (Kavanagh, 2010)

Identifying Problems

The problems that they are having are that due to the increase of gasoline, they are paying Mr. Morgan more to travel to each location. The duties that a Human Resource manager is entitled too are: Company Policies, Recruitment and Hiring, Retention, Advancement and Promotion, Salary and Benefits, and Problems and Prevention. The Functions of an HR Manager are: Recruitment, Assessment, Disciplinary, Legal, and Pay and Conditions. Mr. Morgan's Primary function that he uses the most is the function of Pay and Conditions. Pay and Conditions are "In return for executing these duties, an HR manager can, according to data published by salary comparison website Payscale in January 2011, expect to receive an average salary