Triangle Model

 I have experienced the triangle principal-agent model through my current job as a waitress at a restaurant on campus. There are two principals I deal with who are the managers that work under the owner of the restaurant. The owner is very hands-off; therefore, all of the decisions that need to be made in regards to pricing, planning events, deciding on specials and the current menu are under all under the control of the managers. One of the managers is much older and is not very connected with the restaurant’s clientele. While the other manager is a little younger, and understands the importance of creating drink deals and food specials in order to attract college students.

During the busier weekends like dad’s weekends, the two are constantly arguing with one another on pricing. Because the one manager is older he often supersedes the younger manager, even though they are on the same level. Recently, the younger manager changed the pricing around to provide drink deals. This ended up creating a lot more foot traffic, and made the restaurant a significantly larger profit than it normally does on a similar weekend. Because the older manager was not in, he was not able to stop him. Today, after the older manager went through the receipt he called him out for not getting it approved with him. His response went along the lines of standing his ground and explaining that they are on the same level and should be compromising more on different business tactics. The older manager immediately contacted the owner of the establishment, and a meeting is set up for tomorrow is order to settle the dispute.

In my opinion, I believe the owner needs to take a look at the benefit the younger manager brings to the bar. The advantage the older manager has is difference in age and several years longer of working at the bar. My coworkers and I all agree that the older manager handles paperwork, making the schedule, and dealing with disgruntled customers the best out of the two principals. However, the younger principal has much new and fresh ideas on how to keep the restaurant constantly busy.

To fix this situation I do not believe that a business like a restaurant should have two managers. Therefore, should be a centralized authority at every level; especially since there are not that many employees. The owner should instead give each manager certain responsibilities based on what they do best. For example, the younger principal should be focused on planning different events and controlling pricing. While the older principal should focus on dealing with employees and keeping track of wages.

If the owner decides to keep both managers working together in the same manner as before either the two principals will need to compromise; especially on pricing and special deals. The older manager must see the logic behind it when recent sales suggest it works. If they cannot compromise, I see my coworkers and myself deciding to go along and support the younger manager over the older manager like we recently did by giving deals. The older manager will be forced to see the importance of change when the numbers tell all. We will have a motive also; because when more people enter the restaurant the more tips we make. Also it make the job more worthwhile when you are constantly busy instead of sitting in the kitchen waiting for people to come in, and prevents from getting cut right away and making zero dollars because there is nobody in the restaurant.