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Free «Administrative Models: Sergio's Restaurant and the Bank United» Essay Sample

Sergio’s Restaurant is a family-owned food chain in the United States, which offers all-day hearty meals from breakfast to late-night dinner. On the other hand, the Bank United provides personal banking services, such as savings and loans. The Bank United operates in a financial sector while the operations at Sergio’s Restaurant are within the food industry. While providing their services to their clients, two organizations apply various administrative models that have both similarities and differences.

Leadership Theories

The leaders of both Sergio’s Restaurant and the Bank United apply transformational leadership theory, which enables them to interact with employees and clients to create a solid relationship (King, 2013). The transformational theory is important in building trust and enhancing motivation in both leaders and subordinates. In both organizations, leaders can motivate and influence their workers through flexible rules and regulations. Moreover, in these organizations, transformational leaders have charismatic personalities, which contributes to a sense of belonging among followers (Gaurav, 2013). 



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In both organizations, the aim of increasing productivity empowers employees. It ensures that staff members can make on-the-spot decisions without the mandatory approval from the management (Gaurav, 2013). One of the methods applied at Sergio’s Restaurant and the Bank United is assigning job duties to each employee. It is a process of ensuring a smooth delegation of tasks because all workers are aware of the roles they are expected to perform. At the Bank United, employees are empowered through a team structure. In particular, they are encouraged to create their structure so that they can feel comfortable, hence increasing their productivity (Salas, Bowers, & Edens, 2001). The leader monitors the performance of the team and interferes only if necessary. 

Communication Processes

The effective communication processes influence the improved quality of products and services at business organizations. There are two basic processes, namely interpersonal and organizational communication (Gaurav, 2013). Sergio’s Restaurant hires employees from various countries with different backgrounds. However, the effectiveness of interpersonal communication makes it possible for workers to be friendly to customers and to one another. On the other hand, organizational communication is an effective process at the Bank United (King, 2013). This continuous flow of communication enables staff members to deal with customers in a specific way, particularly when addressing their problems. The success of this process is also crucial in communicating with stakeholders and training new employees (Salas et al., 2001).

Communication Barriers

It is worth mentioning that managers define roles within the organization to determine how members will communicate with one another and facilitate good relations (King, 2013). Nevertheless, in both organizations, there are cases where some employees hide mistakes from the administration because of the personal relationship, forming a barrier in information flow. Secondly, the status of some workers may become a barrier in motivation as some employees are envious of others because of their status and avoid communicating with them (Gaurav, 2013). Additionally, the way in which power is exercised over employees may become a barrier to effective communication. Finally, cultural and language differences at Sergio’s might contribute to ineffective communication.

Theories of Motivation: Reward and Punishment

Both managements have realized that financial reward is not the only kind of motivating employees. Particularly, the success of Sergio’s Restaurant is related to the logical involvement of all members in problem-solving (Gaurav, 2013). Notably, the Maslow’s theory of motivation is well applied at Sergio’s and Bank United. It requires the simultaneous fulfillment of all the needs of employees (Salas et al., 2001). For instance, the management at Sergio’s starts with meeting the financial need by paying salaries that are fair for all workers. Once this need is fulfilled, the management focuses on meeting other non-financial needs such as training and mentoring to motivate subordinates (Wolf, 2014).

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Differences, Values and Individual Ethics

The managements at Sergio’s Restaurant and the Bank United are committed to conducting business in an ethical manner. It means that individual values and differences should be respected to facilitate making decisions and conducting business in an ethical manner (Salas et al., 2001). On the other hand, at the Bank United, the management has taken steps to ensure compliance with issues such as anti-bribery laws and company-specific policies (Wolf, 2014). Both companies prohibit unethical practices such as money laundering and bribery.

Cultural Diversity

Cultural diversity is a common aspect in both organizations as Sergio’s and the Bank United have employees from different backgrounds with various values. At Sergio’s, the management is striving to handle cultural diversity through quality coaching, mentoring, and workshops for all workers and leaders (Gaurav, 2013). On the other hand, at the Bank United, leaders focus on establishing relationships that will increase loyalty among employees from diverse populations. In this way, the inclusion of cultural diversity in business is a strength of the Bank United (King, 2013). 

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Attitudes and Job Satisfaction

Attitudes and job satisfaction among employees influences the profitability and the quality of services of any company (King, 2013). For example, frontline employees at Sergio’s deal directly with customers. Therefore, if they are not satisfied with their role, the quality of customer service will be low (Gaurav, 2013). Similarly, employees’ attitudes such as morale, commitment, and job performance are important to meet the needs of the clients. Thus, when workers exhibit negative attitudes, particularly in relation to the lack of job satisfaction, the productivity at Sergio’s and the Bank United will be reduced. However, due to the successful fulfillment of the staff members’ needs, currently both organizations are not experiencing problems with job dissatisfaction.

Nature of the Change and Its Effects

Depending on the nature of change, employees are affected in different ways. Therefore, it is vital for the management of both organizations to understand how workers deal with changes (Salas et al., 2001). For example, some staff members may lose their confidence due to certain changes. In this case, the management at Sergio’s has developed support systems to help its workers to deal with effects that will occur after the implementation of the change (Gaurav, 2013). Secondly, changes can cause conflicts, especially when they affect the old ways of doing things. Consequently, the management at the Bank United has created a forum for open communication where employees can deal safely with conflicts (King, 2013).

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Quality of Working Life

The operations at both Sergio’s and the Bank United are run in a professional manner, which makes work enjoyable for employees. For instance, regular training and coaching have helped workers to deliver remarkable customer service (Gaurav, 2013). The activities in a restaurant require employees who can attend and serve the customers within the shortest time possible. Therefore, at Sergio’s, staff members are working collaboratively to reduce cases of burnouts and stress (Wolf, 2014). As a result, the quality of working life is improved; thus, it becomes easier for employees to perform productively at rush hours such as lunchtime. On the contrary, favorable working conditions such as career planning and growth, as well as the social integration of employees influence the quality of working life at the Bank United (Salas et al., 2001).

Social Systems

Social systems are important approaches to managing complex operations. They shape the manner in which the organization responds to those challenges affecting its productivity (Wolf, 2014). The managements at both organizations have developed social systems that ensure that the companies offer opportunities to both employees and the community. These systems involve support of programs such as education and medical care. In particular, Sergio’s Restaurant has a social system aiming at improving food safety and high-standardized hygiene (Wolf, 2014). At the same time, the social system at the Bank United aims at ensuring equal opportunities to women in managerial positions.

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Group Behavior

In an organization, group behavior is a concept that determines the cohesiveness of the organizational culture. It allows individual creativity to be integrated into the organizational change and innovation (Salas et al., 2001). Sergio’s restaurant serves thousands of customers daily. Thus, to remain competitive, this company has enhanced the practice of group behavior. Usually, it involves training programs to integrate ideas from different individuals to improve productivity and customer satisfaction (Gaurav, 2013). On the other hand, at the Bank United, group behavior is enhanced when leaders accept feedback and alternatives to their decisions. It also involves allowing the groups to participate in other areas outside their predefined roles (Wolf, 2014).


Sergio’s Restaurant gained success in the food industry due to its teamwork. The restaurant enhances teamwork through providing training and mentoring, especially for new employees. Mentorship programs help to improve the support for team members in different tasks (Salas et al., 2001). Usually, although each employee is assigned a role, it is through a collaborating teamwork that the restaurant can satisfy the needs of its customers. Similarly, at the Bank United, the management emphasizes working together. Therefore, the formation of dedicated teamwork is a part of its training programs and performance appraisal (Salas et al., 2001).

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Work Stress

Despite the success at Sergio’s, there are cases of work stress, including handling numerous orders from a large customer base, especially during rush hours. On the other hand, at the Bank United, cases of work-related stress arise due to financial decisions (Salas et al., 2001). Although the management emphasizes teamwork, individuals in the managerial positions must approve most financial decisions. Other cases relate to time frames that require employees to deliver much work before the deadline, which puts a significant pressure on workers (Wolf, 2014).


The productivity at Sergio’s involves developing innovative ways to improve its products and customer service and making price changes to fast food products such as burgers and pizzas (Gaurav, 2013). The adoption of technology also plays a crucial role in reducing the time used in the production processes such as baking and order delivery. At the Bank United, productivity relates to the training of employees to ensure that the changing financial needs of clients are handled in an appropriate way (Salas et al., 2001).

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Interpersonal Behavior

Interpersonal behavior at the workplace affects the relationship between organizational members (Wolf, 2014). For instance, negative interpersonal behavior can lead to poor performance, problem-solving, and conflict resolutions. In this light, both Sergio’s and the Bank United focused on creating a positive relationship that will lead to harmonious work achievement and job satisfaction (Gaurav, 2013).


In conclusion, different organizations apply various administrative models. All these models aim at improving the motivation levels, productivity, and job satisfaction among employees. The management at both the Bank United and Sergio’s Restaurant apply these models to reduce cases of work-related stress, communication barriers, and interpersonal conflicts. Therefore, it means that although different organizations operate in various sectors, administrative models are applied to create a positive working relationship.


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