Wednesday, April 13, 2011

Catch 22 situation

Okay, I am sorry for using a commonplace title but could not think of something else. Coming back to the dilemma, I just happened to bump into a friend of mine who has just opened a restaurant. He was just sharing his experience as an entrepreneur and as to how he has to make difficult decisions everyday with regards to the routine activities. This is when we came to discuss the most recent problem faced by him. He had this person working as a hotel manager in his restaurant who was also involved in the day-to-day purchase of the grocery. And he came to know somehow that this guy was cooking the records that he used to maintain for the purchases made. On any other day one would have asked that person to resign on the spot but what would one do when that person is one of the reasons for your success as was the case here?
My friend, somebody who has just started a restaurant and who wants to give the best of services to his clients, when took feedback from clients regarding the service provided, got the best feedback about this guy who had already developed a good rapport with them and trained the waiters so well that he had become almost indispensable to the hotel. But at the same time my friend could not allow this to continue. Luckily for him, this guy took leave for about a month due to some family issue and he was quickly replaced. My friend started hoping he does not come back only as anyways he was planning to sack him. But when the new manager took over, things started to change: the money spent on purchases came down which confirmed my friend’s doubt about the mismanagement of hotel's funds. But there was one more change that my friend did not anticipate: the quality of the services got affected and clients suddenly started complaining. There came a situation where my friend had to make a decision and a tough one at that. He finally decided that he would stick to the old manager who, though corrupt but was efficient and what mattered was not how he behaved internally but how he carried himself in front of the clients and how he affected the bottom-line. So when it came to making a choice between someone who was corrupt and efficient and someone who was honest but inefficient he had to choose the former! One may argue at this stage that he should find someone who is honest as well as efficient and I agree with that notion as well. As there are many people out there of such kind, but the task is to find them. At the same time one cannot refute the fact that there comes a situation like this most of the times, when tough decisions have to be made. I do not know whether the decision made by my friend was right or wrong but decisions like these certainly have bearing on the long term success of any organization.

1 comment:

  1. I feel the manager who makes maximum profit should be retained.. In your friends case, that manager seemed to be corrupt and unethical..
    what your friend can do is to promote a person in his restaurant as this manager's subordinate and allow him to learn the tricks of the trade... Two things can be achieved:
    1. Once the manager resigns / goes on leave, you already have a successor who can take over, and hence the profits wont reduce drastically.
    2. Motivation level of the subordinate will also increase and same can be said for other employees..

    Just a thought :)

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