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Instructions: State whether you agree or disagree with Joe\'s method of handling

ID: 358466 • Letter: I

Question

Instructions: State whether you agree or disagree with Joe's method of handling each situation below. Be sure you EXPLAIN your answer and briefly describe how YOU would handle each of the situations. Joe Higgins has recently been hired as the manager of Central Perks Coffee. Central Perks Coffee is a national chain of franchised coffee shops. During his first month as store manager, Joe encountered the following internal control situations: a. Joe caught an employee putting a case of 100 single-serving tea bags in her car. Not wanting to create a scene, Joe smiled and said, "I don't think you're putting those tea bags on the right shelf. Don't they belong inside the coffee shop?" the employee returned the tea bags to the stockroom. b. Central Perks Coffee has one cash register. Prior to Joe's joining the coffee shop, each employee working on a shift would take a customer order, accept payment, and then prepare the order. Joe made one employee on each shift responsible for taking orders and accepting the customer's payment. Other employees prepare the orders. c. Since only one employee uses the cash register, that employee is responsible for counting the cash at the end of the shift and verifying that the cash in the drawer matches the amount of cash sales recorded by the cash register Joe expects each cashier to balance the drawer to the penny EVERY time - no exceptions.

Explanation / Answer

1. Yes, I do agree with Joe's method in this case because he needed to handle the situation delicately which would not have been possible had he created a scene at the moment. This allows him to build trust with his peers and workers and displays good leadership quality. In Joe's position I would have done the same thing but instead of being subtle I would have directly asked for the tea bags to be returned.

2. Yes, I agree with Joe's method because he has essentially crafted an effective system where there is lesser wastage of resource and more utilization of time and work power of the individuals. I would have, in this case, only utilized two workers for the job instead of many to be able to save up on the cost, where work can be done by 2 hiring 4 is an unnecessary loss of profit.

3. No, I do not agree with the first part of Joe's decision where one employee is responsible for rather collection and counting of the money in the cash register due to the fact that there could be a factor of human error in counting which would mean that matching the cash to the records could be a tedious task for the employee and essentially result in job dissatisfaction

I would change the process where the cash is counted by one employee and the accounts are maintained by the other. That removes the point of human error to a minimum.