Chapter 3

Fundamentals of Management

Food and Beverage Management

Previously we discussed Organization and roles of the those who build that structure What are the concerns of organization?

Management

Chapter 3 Overview• Definition of Management• Management Process• Management Tasks• Primary vs. Second Groups• Management roles in providing hospitality

to guests

What is the definition of value?

Warren Buffet: Price is what you pay, Value is what you get.

Define Management

1.People2.Money3.Time 4.Energy5.Products6.Equipment &

space7.Procedures

Organizational Objective

Resource AllocationProblem Solving

What is the definition? The ability to understand and solve problemsTaking raw materials, changing it or adjusting it and then using set principles to organize it

Leading without others knowing itOffering tools, training and direction to othersDefining a universal set of principles of which to create and maintain a standardThe process in which others can work together to reach set goals

Exhibit 1 The Management Process

OrganizationPlanning

Coordination

Staffing

Directing

Controlling

Evaluation

In this room_Letʼs believe that we are all managers of a_________;

As managers we have the ability to make decisions.What factors influence our decisions?

Letʼs look at them...

Planning

• Creating goals and objectives• Developing action plans to reach those

goals and objectives• Factors in Effective Planning:

– Information– Communication – Flexibility – Implementation

Without concrete goals we lose our way

Research provides information _what do we have now that influence our decisions? InternetDatabasesPublic OpinionGovernmentIndustry

Communication is huge today (Who has a cell phone?)The computer has changed human existence

Flexibility to adjust to change rapidly...think of all the millionaires who have adjusted to stocks and web marketing

Implementationgoals are one thing, doing it is another. Thats were your organizational plan create job descriptions to hire employees come in handy

Exhibit 2 The Sequence of PlanningVision

Mission

Long-Range Plan

Business Plan

Marketing Plan

Operating Budget

A financial goalStrategies

Action stepsResponsibilities

How to meet revenue goal

Marketing/ads/prom tacticsImplem calendar Revenue goal

ExpensesForecast the results

Reflective planning requires lots of input and decision making.Not an exact science

Organizing

• Flow of authority & communication• Each employee should have only one

supervisor• Empowered entry-level employees• Organization structure evolves/updates

How can we best assemble and use our limited human resources to attain our objectives ?

The organizational structure can conflict with proper planningLots of feedback is needed to improve a structure

Top Management hierarchy is needed to provide leadership without chaos

Line employees need direction at the beginning then simple guidelines and a system of checks and balances once trained

Coordinating

• Work assignments• Organizing people

and resources• Effective channels of

communication• Delegation/ pass

down the authority– Ultimate

responsibility / accountability

Coordinators are usually embedded within leadership and management structure

Delegation of responsibility (Job descriptions)

Accountability is at attention in the face of the recent US financial crisis

Staffing• Recruiting & hiring• Selecting / screening

applicants• Match the applicant to

the vacant job• Job descriptions:

personal qualities necessary to perform jobs effectively

Interview processes are crucial to select proper employees.

Compared to education, experience and skills Itʼs the relationship bond that counts. Whether hiring or being hired.

Know how to interview properly and wisely by practice.

Directing

• Supervising• Disciplining

– Informing counseling– Meetings between

employee & managers– Written warnings– Suspension

• Scheduling

Getting job down through other people!

Lack of having set standards rules, procedures and regulations accounts for the majority of disciplinary issues.

If you have a rare chance to set up Human Resource policies in an establishment set the highest standards you can confidently maintain!

As a professional restaurant consultant I have been in many restaurants and hotels that lack the type of sanitation, safety and ethics needed to be profitable.

Expound...

Exhibit 3: Basic Steps in the Control Process

EstablishStandards

Measure Actual

Operating Results

CompareActual

Resultswith Standards

Take Correct Action

EvaluateCorrective

Action

Step 1

Step 2

Step 3

Step 4

Step 5

Acceptable

Not Acceptable

FIscal accountability as well as measurable human resource evaluations are assets that need control.

Again, establishing controls and standards are crucial for growth.

Evaluating• Review progress

toward achieving organizational goals

• Measure employee performance

• Assess the effectiveness of training programs

This is a step that many small companies sidestep.In order to improve gross revenue, correct out of date processes or improve morale and training and software constructive criticism is desirable and warranted.

Daily Activities for Managers• Help develop the operating budget

• Deal with problems

• Work with a colleague in another dept. to plan an special event

• Revise job descriptions

• Carry out routine supervisory activities

• Revise standard food & labor cost estimates

• Conduct employee performance review

Planning, controlling

Planning, coordinating

Organizing, staffing

Directing

Controlling

Evaluating

Coordinating

Food Service Manager Relationships

Secondary Groups•Suppliers•The local community•Government regulatory agencies (e.g. OSHA)The value of spirit of hospitality

Food Service

Manager

Primary Groups•Guests (Consumers)•Owners (Board of Directors)•Area/Regional Directors•Managers•EmployeesInteract with

Management role in providing Ho`okipa- cordial reception of guests

The kinds experiences that you can imagine, manufacture and market can be lucrative and popular to others.

But you must create and set standards early in your career.

A cup of kindness

If you donʼt like to take orders, smile, serve clean up after yourselves or contribute to the business....May want to look for another career or marry rich!

Service Is key. Most Industry employees start at the bottom

FUNDAMENTALS

Customer Satisfaction is the Primary goal

Role Playing? Let Student do it first then change dynamicHow was that?How did you feel? Okay?

Now letʼs try it differently...Stand Up Eye ContactSmileGreet, How Do you Do?Shake HandsLingering Impression

A cup of kindness• Begin by understanding customers’

needs

– Kindness is demonstrated by making everyone feel welcome

– Quality customer service requires that we make all guests feel comfortable

– We all have a need to feel important

Start todayPractice these habits when itʼs slow, when youʼre busy it becomes automatic.

A cup of kindness– Definition of Management– Management Process– Management Tasks– Primary vs. Second Groups– Management roles in providing hospitality to

guests

Management Definition: People, Money, Time, Energy, Products, Equipment & space, Procedures

Management Process: Planning, Organizing, Coordination, Staffing, Directing, Controlling, Evaluation

Providing hospitality is much easier that it looks