Reference no: EM133298328

Question: Your friends, who both have English Literature degrees, have decided to start a used bookstore. Neither of them has owned a business before, and they have no management training. They are excited because they have been able to rent a space with high ceilings and have already arranged to have bookshelves built from floor to ceiling. They plan to make their bookstore a meeting place, so they will have comfortable chairs, and will sell coffee and tea, as well as muffins and cakes. They plan to hire a barista and buy their baking from a nearby bakery. Their compensation plan is to pay everyone minimum wage, plus commission of 10 cents for each book sold. The barista's commission will be 5% of everything sold at the coffee bar. They plan to be open until midnight, and to hire part-time staff for evenings and weekends. The employee who closes up at night will make the bank deposit on their way home. In your answers, consider that you are speaking to your friends, so make your answers as clear and convincing as you can. Provide examples that relate to their specific situation. ^ Please read the story above and answer the question. In their advertising for the barista position, they are not getting good applicants. They would like to hire someone with experience in this role because they don't know much about coffee.

The barista would be responsible for deciding what kinds of coffee should be offered, and ordering supplies. Do you think the compensation plan is contributing to this problem?