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Jean Inman > Domain III: Functions of Management > Flashcards

Domain III: Functions of Management Flashcards

1
Q

Planning

A

the basic function of management

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2
Q

Policies

A

general decision-making guide, boundaries within you must operate

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3
Q

Procedures

A

chronological sequence of activities, specific guide for daily operations

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4
Q

Short range/operational planning

A

covers 1 year or less, operating budget (day, week, month)

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5
Q

Long range planning

A

up to 5 year cycle, focus on goals and objectives, requires mission statement of long range vision

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6
Q

Strategic planning

A

decisions about intended future outcomes and how success is measured and evaluated

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7
Q

Point of strategic planning

A
  1. sets direction for organization
  2. SWOT analysis
  3. assesses the environment outside and insight the organization
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8
Q

Functions of Organizing and Staffing

A

A. identifies tasks and activities, divide tasks into positions
B. establish relationships among all other functions of management

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9
Q

Organizational chart

A

shows how employee fits into organization

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10
Q

What does an organizational chart show?

A
  1. shows relationship of position and functions
  2. depicts lines of authority shown with solid lines (chain of command)
  3. Advisory (staff) positions shown with dotted lines
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11
Q

What does an organizational chart NOT show?

A

Degree of authority at each level, informal relationships

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12
Q

Chain of Command

A

shows command relationship from top to lowest level

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13
Q

Where do RDs fall in the chain of command?

A

staff-advisory; specialists

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14
Q

Functional

A

serves as both line and staff; has limited authority over a segment of activity because of specialized knowledge

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15
Q

Span of Control

A

number of individuals/departments under direction of one individual

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16
Q

Narrow span of control

A

more levels and managers, need with new hires

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17
Q

Wide span of control

A

fewer levels and managers needed with highly trained and motivated workers

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18
Q

Staffing patterns: acute care conventional

A

17 minutes/meal or 3.5 meals/labor hour

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19
Q

Staffing patterns: school food service

A

13-15 meals/labor hour

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20
Q

Master work schedule

A

overall plan, days on/off, vacations, basis for developing weekly schedules

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21
Q

Shift schedule

A

staffing patterns for particular operations; positions and hours worked per week, relief assignments

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22
Q

Production schedule

A

time sequencing of events required to produce a meal; employee assignments and menu items, quantity to prepare and timing

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23
Q

Absolute FTE

A

minimum number needed to staff the facility; counts productive hours

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24
Q

Adjusted FTE

A

also takes into account benefit days and days off

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25
Q

FTE/day

A

labor hours worked per day/8 hour normal work load

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26
Q

FTE/week

A

labor hours worked per week/40 hour normal work load

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27
Q

FTE/year

A

labor hours worked per year/2080

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28
Q

A food service has seven 40 hour employees, five 20 hour employees and three 16 hour employees. How many FTEs are involved?

A
  1. 7

(7x40) + (5x20) + (3x16) = 428 hours/40

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29
Q

Relief workers

A

1.55 employees necessary for every day coverage of FT positions

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30
Q

Actual workers needed

A

multiply the number of FT positions by 0.55 (129/236) to get the number of relief workers needed

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31
Q

20 FT positions; how many employees are needed?

A

31 total employees needed

20 x 0.55 = 11 relief employees
20 + 11 = 31 total employees needed

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32
Q

Hospital food service positions cover 7 days/week; employees work 5 days on, 2 days off. Relief workers cover 2 days off and work 5 days/week. How many days off for the FT workers can relief workers cover?

A

2.5 days

5/2 = 2.5

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33
Q

Purpose of Work Simplification procedures

A

eliminated unnecessary parts of a job that add no value, covers the smallest parts of a job

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34
Q

Occurrence sampling

A

Work Simplification procedure: observe random samples (intermittent observations) to determine % of time working or idle

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35
Q

Cross Charts

A

Work Simplification procedure: efficiency of equipment placement, studies work motions, shows number of movements between pieces of equipment

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36
Q

Productivity management

A

evaluation tool: measures efficiency, provides data to enhance decision-making

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37
Q

Productivity:

A

Inputs, outputs; expressed as ratios

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38
Q

Inputs (resources):

A

labor, money, materials, facilities, energy

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39
Q

Outputs (units of service):

A

meals, patient days, consults

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40
Q

Meals per labor hour

A

meals produced/# hours worked

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41
Q

20 FTE produced 2,700 meals during a 40 hour week. How many meals were produced per labor hour?

A

3.38 meals/labor hour

20 FTE x 40 hours = 800 hours
2700 meals/800 hours = 3.38

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42
Q

Labor turnover rate

A

of employees separated, terminated, replaced/total positions in department x 100

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43
Q

High labor turnover rates results in:

A

higher labor costs

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44
Q

Barriers to effective delegation

A

manager’s reluctance to delegate

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45
Q

Communication

A

transmitting and receiving information to bring about a desired action

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46
Q

Feedback/response

A

tells you whether the correct message was received

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47
Q

Barriers to communication:

A

words not mutually understood, poor voice quality, handwriting

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48
Q

Biggest barrier to communication

A

listening skills

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49
Q

Downward organizational communication channel

Ex:

A

from head through the ranks; chain of command

Ex: policy statements, procedure manuals

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50
Q

Upward organizational communication channel

Ex:

A

workers to head

Ex: suggestion box, grievance, open door policy

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51
Q

Purpose of upward organizational communication channel

A

provides employees with opportunity to have a say in what happens; management needs to receive vital info from lower levels

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52
Q

Diagonal organizational communication channel

Ex:

A

minimizes time and effort expended in organization; between functions diagonally placed
Ex: ordering clerk in food service, sends requests to purchasing department

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53
Q

Horizontal organizational communication channel

A

between departments (nutrition and nursing)

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54
Q

Information organizational communication channel

A

grapevine; meets social needs of group

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55
Q

Maslow’s Hierarchy of Needs

A

determinants of behavior, motivated by a desire to satisfy specific needs

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56
Q

Maslow’s basic needs

A

Physiological, Security and Safety

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57
Q

Maslow’s physiological needs

A

food, clothing, shelter, pay, benefits

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58
Q

Maslow’s security and safety needs

A

insurance, retirement, job security

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59
Q

Higher human needs/motivators

A

Social
Self-esteem/recognition
Self-realization/potential growth

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60
Q

When ____ ____ are met, then ____ ____ become motivators

A

basic needs, higher needs

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61
Q

Herzberg’s two-factor theroy

A

Maintenance/hygiene factors-do not produce motivation buy can prevent motivation from occurring
Motivators-call forth energy and enthusiasm, job enrichment

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62
Q

McCelland’s achievement-power-affiliation theory

A

Achievement need: sales and management
Affiliation need: desire to be liked by others
Power need: enjoys competition and seeks confrontation

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63
Q

MacGregor attitude of manager towards employees-Theory X

A

authoritarian, workers prefer to be controlled/directed by pressure; negative, autocratic

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64
Q

MacGregor attitude of manager towards employees-Theory Y

A

positive, participative

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65
Q

Hawthrone Studies

A

if you involve people in the process they become more productive

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66
Q

Expectancy theory-Beer, Vroom

A

employees must feel that rewards offered are attractive

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67
Q

Leadership Styles

A

Autocratic, consultative, bureaucratic, participative, free rein

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68
Q

Most controlling style of leadership?

A

Autocratic

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69
Q

Least controlling style of leadership?

A

Free rein

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70
Q

Autocratic

A

demands obedience

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71
Q

Consultative

A

asks for input, makes own decision

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72
Q

Participative

A

encouraged workers to participate in decision-making; uses quality circles

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73
Q

Free rein

A

laissez-faire

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74
Q

Contry club management

A

employee-centered, 1,9

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75
Q

Team Management

A

high concern for both people and production; 9,9

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76
Q

Impoverished Management

A

low concern for people and production; 1,1

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77
Q

Authority, obedience, atocratic

A

people are like machines, focus on production; 9,1

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78
Q

Most desirable style of leadership

A

Team Management

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79
Q

Likert-management

A

Participative is the most effective

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80
Q

Peter Principle

A

promote someone to a level of incompetence

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81
Q

Management Theories

A

Traditional or classical
Formal structure that organizes and administers work activities
Focus on tasks, structure, authority

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82
Q

Unity of Command

A

each is accountable to only one superior

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83
Q

Human Relations (behavioral) theory

A

employee participation in decision-making is essential

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84
Q

Human Relations Theory Z (Ouchi)

A

the value of the company is the people; consensus decision-making is participative

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85
Q

Subsystem

A

complete system within itself that’s part of a larger system

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86
Q

Open system interacting with external forces:

A

change in one part affects many other parts

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87
Q

Leadership Continuum: Tannebaum and Schmidt

A

each type of behavior is r/t the degree of authority used by the manager and amount of freedom available to subordinates in reaching decisions

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88
Q

Contingency approach: Fiedler

A

task-oriented leader is more effective in highly favorable and unfavorable situation; relationship-oriented leader is more effective in moderately favorable situations

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89
Q

Leadership effectiveness: Hersey, Blanchard, Johnson

A

readiness of followers and recommended leadership styles

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90
Q

Scientific management-Taylor

A

work-centered

focus on physical aspects of job

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91
Q

Management of objectives (MBO): Drucker

A

type of democratic management that provides control from within; participative leadership

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92
Q

Transactional reciprocal approach

A

uses rewards and punishments to achieve goals; top of control list; autocratic

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93
Q

Transformational reciprocal approach

A

agents of change; participative

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94
Q

Organizational change theory

A

managers serve as catalysts for change; must recognize there is a need to make a change

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95
Q

Controlling/Evaluating

A

establish qualitative and quantitative standards
measure performance
compare to standards
take corrective action

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96
Q

Managerial Skills

A

Technical
Human
Conceptual

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97
Q

Technical skills

A

understanding of and proficiency in specific kind of activity; important at lower levels of management

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98
Q

Human skills

A

ability to work effectively as a group member; important at all levels

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99
Q

Conceptual

A

ability to see organization as a whole; importance increases at higher ranks of management

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100
Q

____ skills can be ____; ____ skills must be _____ and _____

A

hard, taught; soft, developed, nurtured

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101
Q

Managerial Roles

A

informational

Decision-making

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102
Q

Informational managerial roles

A

monitor, disseminator, spokesman

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103
Q

Steps to decision-making

A

recognize and analyze the problem; assess; determine workable solutions, gather data, choose solutions, take action, follow up

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104
Q

Nominal group technique-Delbecq

A

silent generation of ideas by participants; group ranks items in priority order; vote for final decision

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105
Q

Delphi technique

A

designed to probe expert minds in written interviews where consensus is sought; participants do not meet

106
Q

Cause and effect (fish diagram)

A

what influences the outcome? focuses on different causes of a problem; what are the causes of the effects/results you seek?

107
Q

Pareto Analysis

A

illustrates relative importance of problems; work on the problem that occurs the most frequently; correcting the vital few problems that will have the greatest impact on quality

108
Q

What type of queue makes customers most happy?

A

Snake-like

109
Q

Conflict resolution methods

A

Dominance and suppression-repress conflict rather than settle it
Compromise
Integrative problem solving

110
Q

Managerial Traits

A

Influence-action that will cause a change in behavior/attitude of another
Power-ability to exert influence

111
Q

Reward power

A

ability to reward another for carrying out an order

112
Q

Coercive power

A

negative side of reward; ineffective in motivating behavior change

113
Q

Position/Legitimate Power

A

subordinate acknowledgment that influencer has right to exert influence d/t position

114
Q

Expert Power

A

belief that influencer has relevant expertise that subordinate does not

115
Q

Referent power

A

personality, charisma

116
Q

Managerial attributes

A 
Have a bias for action
Learn from customers
Autonomy
Productivity through people
Participative management
117
Q

AND SOP

A

Standards of Practice: RDs working in direct patient care

118
Q

AND SOPP

A

Standards of Professional Practice: all RDs

119
Q

Unemployment Compensation

A

each state has own laws that define benefits with minimum federal standards

120
Q

Workmans Compensation

A

Administered by state

121
Q

National Labor Relations Act-Wagner Act

A 
Pro-labor; right to organize/join labor unions
Created NLRB (National Labor Relations Board)-listens to claims of unfair labor practice
122
Q

Labor Management Relations Act-Taft Hartley Labor Act

A

Pro-management
Balance powers of labor and management
Specified unfair labor practices of the union

123
Q

Civil Rights Act

A

prevents discrimination; prohibits sexual harrassment

124
Q

Equal Employment Opportunity Act

A

prevents discrimination

125
Q

Overseen by EEOC (Equal Employment Opportunity Commission)

A

Civil Rights Act

Equal Employment Opportunity Act

126
Q

Fair Labor Standards Act/Minimum Wage

A

For overtime, must pay time and a half
Donated (tolerated) time-compensable
Child labor laws

127
Q

Amendment to Fair Labor Standards

A

Equal Pay Act-prohibits discrimination on basis of sex

128
Q

Occupations exempt from minimum wage and overtime

A

Executive, administrative, professional, outside salesperson

129
Q

Age Discrimination in Employment Act

A

Prevents discrimination due to age

130
Q

Family and Medical Leave Act

A

up to 12 workweeks of unpaid, job-protected leave; when return to work guaranteed equal job

131
Q

Americans with Disability Act

A

must provide reasonable accommodations
36” aisles and 32” doors
Flashing alarm lights
Job descriptions must specify essential job functions

132
Q

HIPAA-Health Insurance Portability and Accountability Act

A

allows employees to take insurance with them

133
Q

Employment Standards

A 
Job Analysis
Job Description
Job Specification
Work Schedule
Job breakdown
Job Enlargement
Job Enrichment
134
Q

Job Analysis

A

studies all aspects of job; assessed to collect info for job description

135
Q

Job Description

A

reflects required skills, responsibilities

matches application to job, orientation/training, employee appraisal

136
Q

Job Specification

A

Qualifications, used in hiring

137
Q

Work schedule

A

tasks and time-hour by hour

138
Q

Job breakdown

A

no time limits-what to do and how to do it

139
Q

Job Enlargement

A

alleviates boredom

140
Q

Job Enrichment + motivator theory

A

upgrades + Maslow and Herzberg

141
Q

Fair Employment Practice Law

A

illegal to ask about race, religion, sex, national origin, age, marital status

142
Q

Types of Interviews

A

Structured/Directed

Unstructured/Non-directed

143
Q

Structured Interview

A

checklist of strategy; gives the same information to all

144
Q

Unstructured interview

A

conversational, more participation from applicant

145
Q

Separation

A

Voluntary or involuntary termination of employee

146
Q

Salary

A

earnings of managerial and professional personnel

147
Q

Wages

A

hourly earnings of employees covered by Fair Labor Standards Act

148
Q

Statutory benefits

A

required by law to ensure income

149
Q

Compensatory benefits

A

benefits/pay for time not worked

150
Q

Supplementary benefits

A

life and health insurance

151
Q

Unionization

A

means of collective bargaining

152
Q

Check-off

A

deduction of union dues from pay

153
Q

Union shop

A

must join after being hired

154
Q

Open shop

A

can join union or not

155
Q

Closed shop

A

must be a member of union first before hiring

156
Q

Agency sh

A

All workers must pay agency fee but not required to join agency

157
Q

Union/shop steward

A

employee who represents fellow employees

158
Q

Steps of collective bargaining

A
  1. Bargaining
  2. Mediation
  3. Arbitration
159
Q

Bargaining

A

between union steward and management

160
Q

Mediation

A

neutral person that helps settle differences

161
Q

Arbitration

A

final step; hearing to dissolve dispute

162
Q

Disciplinary action/grievances

A

Oral warning
Written warning
Suspension
Dismissal

163
Q

Positive Discipline Practices

A

Consistency is key
Goal: correct behavior and save employee
Be sure employee is aware of severity of problem and standards
Corrective discipline meted out in private

164
Q

Obstacles to effective appraisals

A

Halo effect
Leniency of error
Error of central tendency

165
Q

Halo effect

A

judge on the most noticeable positive trait

166
Q

Leniency of error

A

rate everyone higher than they deserve

167
Q

Error of central tendency

A

rate everyone as average

168
Q

Purpose of budget development

A

gives manager basis for control

169
Q

Operating budget

A

Forecast of revenues, expenses, profit for a specific period of time

170
Q

Steps to operating budget

A
  1. forecast sales or revenue portion

2. budget expenditures r/t projected level of revenue

171
Q

Cash budget

A

projects revenues and expenses; shows inflow and output of cash. The purpose is to determine if funds will be available when needed

172
Q

Capital budget

A

plant facilities, equipment, cost of improvements, repairs (maintence contracts); expensive and long-lasting

173
Q

Traditional (incremental, baseline)

A

uses existing budget as base and projects change

begins with this year’s expenses plus inflation

174
Q

ZBB + PPBS

A

Zero-based budget; NOT this year’s expenses plus inflation

PPBS: Planning, Programming, Budgeting System

175
Q

Fixed Budget

A

prepared at one level of sales or revenue (no expected major change in pt/customer count)

176
Q

Flexible budget

A

adjusted to various levels of operation with varying levels of sales or revenue (changes with pt/customer count)

177
Q

Performance Budget

A

details what it costs to perform an activity

178
Q

Indirect costs/fixed

A

Not affected by sales volume, not directly evident in day to day activities, cannot be readily changed
Examples: rent, taxes, interest on debt, insurance, depreciation

179
Q

Direct/variable/flexible costs

A

varies directly with change in revenue

Example: china, silver, food, uniforms, laundry, repairs, benefits

180
Q

Semi Variable costs

A

both a fixed and variable component; portion of cost will remain fixed regardless of change in sales volume
Example: labor, maintenance, utilities
Divided into fixed and variable before BE analysis

181
Q

Food costs

A

most readily controlled item; subject to greatest fluctuation

182
Q

Food costs + menu planning

A

most important

183
Q

Food costs + type of service

A

selective menu reduced waste and cost

184
Q

Food costs + purchasing methods

A

group buying reduces cost

185
Q

Labor costs

A

less controllable than food costs

186
Q

Operating costs

A

12-18% of budget; utilities, laundry, cleaning

187
Q

EP vs AP

A

Raw purchase cost (AP)/Cooked edible wt

188
Q

You purchase an 18# ready to cook turkey at $0.68/lb. The AP price is $12.24. After cooking and slicing, the EP is 9.9#. What is the EP cost per pound?

A

$12.24/9.9# = $1.24

189
Q

Shows operating results over a period of time; dynamic

A

Profit and loss statements, income statement, revenue and expense statement

190
Q

Shows financial condition as of a particular date; static

A

balance sheet; lists assets, liabilities

191
Q

What is considered an asset?

A

goods/products owned; cash, inventory, accounts receivable

192
Q

Liabilities

A

amounts owed to others

193
Q

Turnover ratio

A

shows current effectiveness of inventory control

194
Q

COGS

A

cost of goods sold

195
Q

Turnover ratio calculation

A

cost of sales (food cost or COGS)/average inventory cost

196
Q

Food cost of June: $37, 380. Average inventory cost: $17,500

A

2.1 (inventory was turned 2.1x in June)

197
Q

Daily food cost report (food cost percentage)

A

tells you what percent of the income was spent on food sold

198
Q

Daily food cost percentage

A

daily food cost/daily income

199
Q

The cafeteria income for Tuesday was $640. Food cost for the day was $265. What was the food cost percentage?

A

$265/$640 = 41.4%

200
Q

Food cost per meal

A

food cost per month/# meals per month

201
Q

Food cost =

A

food purchases + foods removed from inventory

202
Q 
Determine the food cost per meal using the following information:
June 1 inventory: $36,250
July 1 inventory: $34,375
Foods purchased in June: $52,390
Meals served in June $134,000
A

$0.40 per meal

(36,250-34,375) + 52,390/134,000

203
Q

Food cost per meal calculation

A

(month 1 inventory-month 2 inventory) + foods purchased in month 1/meals served in month 1

204
Q

Profit margin

A

most commonly used assessment of overall financial efficiency; reflects the portion of sales volume remaining after paying all expenses

205
Q

Profit margin calculation

A

net profit (profit after all expenses paid)/sales dollars (revenue)

206
Q

Cost of sales

A

cost of raw food and beverage sold

207
Q

Gross profit

A

profit shown after deducting raw food and beverage (cost of sales) from sales (revenue)

208
Q

Net profit

A

profit shown after all expenses have been deducted from sales

209
Q 
What is the net profit, gross profit, and profit margin?
Sales: $12,771
Cost of sales: $54,779
Salaries: $31,324
FICA: $4,380
Benefits: $8,191
Utilies: $3,697
Supplies: $4,272
Depreciation: $16,579
Taxes $2,324
A

Net profit: sales-expenses
($127,771-$54,779 = $2,225)

Gross Profit: sales-cost of sales
($127,771-$54,779 = $72,992)

Profit margin: net profit/revenue
($2,225/$$127,771 = 0.02)

210
Q

Payback period

A

determines the length of time it will take for the cash inflows from a project to equal the initial cash outlay

211
Q

Steps to payback period

A
  1. add up costs of service
  2. add up costs saved by using new service
  3. divide costs of service by dollars saved
212
Q

What is the payback period? Hardware: $3,500. Software: $2,400. Staff instructor: $1,000. Labor hours saved: 6 per week at $20/hour

A
  1. Add up costs of service: $3,500 + $2,400 + $1,000 = $6,900
  2. Add up costs saved by using new service: 6 x $20 = $120
  3. Divide costs of service by dollars saved: $6,900/$120 = 57.5 weeks to recoup money
213
Q

Budget Projection

A
  1. determine actual costs for this year
  2. multiply by expected increase
  3. add current amount to increased amount
  4. add all costs
214
Q 
What is the projected budget for this year?
Sales: $1,500,000
Labor costs: 35% of income
Food costs: 40% of income
Operating costs: 15% of income
Budget for next year will increase by:
Labor 7%
Food 8%
Operating 2%
A
  1. Labor: $525,000
    Food: $600,000
    Operating: $225,000

2 + 3.
Labor: $561,750
Food: $648,000
Operating: $229,500

4.
$1,439,250

215
Q

First step in marketing analysis

A

identifying a need

216
Q

Marketing channel

A

Exchange of ownership: producer, processor, distributor, supplier, customer

217
Q

First step in marketing process and plan

A

identify a need that is not being fulfilled (market niche)

218
Q

Market segmentation

A

divide market into groups of people with similar product needs

219
Q

Demographic variables

A

age, gender, race, education, income

220
Q

Geographic variables:

A

urban, suburban, climate, resources, cultures

221
Q

Psychographic variables

A

social class, lifestyle, motive

222
Q

Behavioristic variables

A

occasions, loyalty, purchase volume

223
Q

Target market

A

group of people or places with similar wants/needs with the potential for purchasing your product

224
Q

4 Ps of marketing/develop the marketing mix

A

Product
Place
Price
Promotion –> publicity

225
Q

Strategic marketing

A

long-term overall view of marketing in the organization in which resources are allocated

226
Q

Social marketing

A

use of marketing principles to advance a social cause, idea, behavior

227
Q

Business marketing

A

filling customers needs or desires

228
Q

Service marketing characteristics

A

intangible (performance not product)
inseparable (produced and consumed at same time)
Perishable (cannot be stored for later use)
Heterogenicity (variation in performance of people)

229
Q

Breakeven point

A

point at which sales revenue/income will cover fixed and variable costs

230
Q

BE in number of units sold

A

BE = FC/SP-VC

231
Q

What is the breakeven point?
FC $50,000
Selling price: $5.00
VC $3.25

A

BE = 28,572

$50,000/($5-$3.25)

232
Q

BE in sales volume

A

BE = FC/ 1- (VC/Sales)

number of $ you need to bring in to break even

233
Q

What is the BE point?
FC $25,000
VC $60,000
Sales $100,000

A

BE = $62,000

$25,000/ 1 - ($60,000-$100,000)

234
Q

BE = $60,000. If income is less than $60,000 there is a ___. If income exceeds $60,000 there is a ____.

A

Loss. Profit

235
Q

Factor pricing method

A

traditional method/mark up method. Mark up is the difference between cost and selling price

236
Q

Factor pricing method calculation

A

100/food cost percentage = mark up factor

237
Q

Steps to determine selling price

A
  1. determine mark up factor
  2. mark up factor x raw food cost = selling price
  3. “hidden cost” of 10% added to food cost to cover unproductive costs
238
Q

If the food cost percentage is 30 and the raw food cost if the item is $0.18, what is the selling price using the factor method?

A
  1. 100/food cost percentage = mark up factor
    100/30 = 3.3
  2. mark up factor x raw food cost = selling price
    3.3 x $0.18 = $0.59
  3. 10% for hidden costs
    3.3 x ($0.18 + $0.018) = $0.65 selling price
239
Q

Prime cost method

A

raw food cost + labor cost involved in making the item

240
Q

Steps to determining selling price with prime cost method

A
  1. determine prime cost: raw food cost + direct labor cost
  2. determine price factor/markup: add desired food cost % to %)of direct labor cost; divide into 100
  3. selling price = prime cost x price factor (markup factor
241
Q 
Determine the selling price using the prime cost method
Raw food cost $1.80
Labor cost: 5 minutes @ $12/hour
Food cost % 0.333
Labor cost % 0.467
A
  1. Prime cost = raw food cost + labor cost
    $1.80 + $1.00 = $2.80
  2. Add desired food cost % to % of direct labor cost; divide into 100
    0.333 + 0.467 = 80%; 100/80 = 1.25 (markup factor)
  3. Selling price = prime cost x markup factor
    $2.80 x $1.25 = $3.50
242
Q

Promotion pricing

A

done for a short amount of time

243
Q

Loss leaders

A

items are priced lower to draw people in with the hope that they will purchase other items at normal markups

244
Q

Cost of profit pricing

A

price the product to ensure a predetermined percentage of profit

245
Q

Cost of profit pricing calculation

A
  1. add all costs (including profit cost) as percentages)
  2. subtract the total from 100% to find targeted food cost percentage
  3. to determine the selling price of the item: total food cost/desired food cost percentage
246
Q 
Determine the selling price using cost of profit pricing:
Fixed costs: 25%
Labor cost: 35%
Profit cost: 10%
Food cost: $0.78
A
  1. 25% + 35% + 10% = 70%
  2. `100%-70% = 30% (targeted/desired food cost percentage)
  3. Selling price: 0.78/.30 desired food cost = $2.60
247
Q

Reasons for public relations within the community

A
  1. good press relations
  2. newsworthy information
  3. build and retain relations with legislators and government officials
248
Q

Cost-benefit studies

A

the “should”
is it worthwhile to complete this project?
determines whether the goal of the intervention is worthwhile with the costs
value of the benefits derived from intervention must outweigh the costs

249
Q

Cost-effectiveness analysis

A

the “yes-how?”
assumes that the goal of the project is worthwhile
question to resolve is which method of intervention i smost effective
compares cost of alternative strategies

250
Q

Audit

A

formal study that retrospectively monitors performance; did performances meet standards/purpose?

251
Q

Management approaches to improving performance

A
  1. TQM-Total Quality Management
    a. PDCA/PDSA-plan, do, check/study, act
    b. CQI-continuous quality improvement
252
Q

TQM

A

total quality management
processes, improvement, customer satisfaction
Contains PDCA/PDSA and CQI

253
Q

CQI

A 
Continuous Quality Improvement
Integral part of TQM
focus on process
ideal that systems and performances can always improve
uses outcome assessment
254
Q

Criteria

A

professionally developed standards that describe a desirable process or outcome

255
Q

Outcome (end result)

A

measurable result of an intervention, measures success or failure of the process of care provided-includes time frame)

256
Q

Indicators

A

measurement tool that monitors and evaluates important aspects of patient care and management functions

257
Q

Rate-based indicators

A

what will happen with the best care, thresholds between 1%-99%

258
Q

Sentinel event indicator

A

serious events
thresholds of 0%-100% (never or always)
Ex: 0% food poisoning; dish machine area is dry 100%
100% of oncology pts are fed within 5 days

259
Q

Six sigma

A

data-driven approach for improving quality by removing defects and their causes. Achieving six sigma (six standard deviations from the mean) means there is very little variation in the process

260
Q

Kaizen philosophy (good change)

A

suggests making continuous and small incremental improvements in process on a daily basis rather than large revolutionary changes

261
Q

Lean method

A

uses less human effort, space, capital, and time to make products exactly as the customer wants with few defects

Jean Inman (2 decks)

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