Revision Slides

Question 1

What is management?

Answer 1

The process of using what you have (resources), to do what you have to do (meet organisational goals)

Question 2

The 3 supervisory concepts

Answer 2

• Authority:
  Power to get things done by others
  Formal and informal (personal & organisational)
• Delegation
  Assign tasks and responsibility to others
• Responsibility
  Held accountable for the use of authority
  Accountable for team’s actions and outcomes

Question 3

Leadership: definition

Answer 3

Lead rshop is not a role, but a process or a transaction event that occurs between a leader and his followers, influenced by internal and external factors

Ability to give orders is NOT leadership!

Question 4

7 key components of a managers duties

Answer 4

1. Planning
2. Organising
3. Coordinating
4. Staffing
5. Directing
6. Controlling
7. Evaluating

Question 5

Constraints on management:

External

Answer 5

• originating outside the organisation, internal actions can rarely solve the problem…
• political
• environmental
• economic
• social (unions)
• technical

Question 6

Constraints on management:

Internal

Answer 6

Food and beverage costs
- Perishability of food, need for stock turnover, wastage and portion control, pilferage/ shrinkage

Staff
- Staff or skill shortage, achieving staffing levels to match peaks and troughs of sales, absenteeism, illness, use of part-time or seasonal staff, poor supervision/ training, high staff turnover

Question 7

How to manage internal management constraints

Answer 7

• Cash and credit control, maintain all costs in the line with budget guidelines and volumes of business
• Maintain tight and efficient control of all stocks
• Maintain up to date costing and pricing of all menu items
• Maintain efficient F&B control system with statistical data

Question 8

Main responsibilities of the F&B department

Answer 8

1. Provide great meal experience
2. Follow the flow of the food
3. Control finances

Question 9

Why do people quit their jobs?

Answer 9

1. Relationship with boss (under appreciated)
2. Relationship with coworkers (personality conflicts)
3. Wage/ salary (underpaid)
4. Poor management (lack of basic training or directions)
5. No chance of advancement
6. Limited professional development
7. Lack of challenge
8. Unfulfilling work

Question 10

Warning signs of someone quitting

Answer 10

High absenteeism rates

High turnover rate

Increased number of accidents

Excessive breakage or waste

High number of complaints

Harassment

Question 11

Sources of power

Answer 11

• Position power (legitimate power, granted to a position)

Reward power (by providing formal and informal awards)

Coercive power (withhold rewards and inflict discipline)

Expert power (admiration of special knowledge and skills)

Referent power (admiration of personal characteristics)

Question 12

Employment concerns in F&B

Answer 12

Staff turnover

Seasonality

Staff recruitment

Staff retention

Stress

Talent

Question 13

Staff turnover

Answer 13

High turnover especially among low skilled workers

Count the staff you have left, divide it into the total staff employed and multiply by 100

Approximately 80% per year in a regular restaurant

Above 150% per year in fast food settings

Question 14

The realities of F&B

Answer 14

• Restaurant severs suffer from higher levels of stress than doctors or architects
• Increased risk of strokes and heart problems
• More likely to drink and smoke too much
• Less likely to eat healthy and at normal times
• no feeling of empowerment, demands from customers, management and unsociable hours

Question 15

How do we address these issues in F&B?

Answer 15

• Training
• Empowerment
• Scheduling
• Flexibility
• Communication

Question 16

Staff turnover costs

Answer 16

To replace an employee:

• Tangible: costs for advertising, interview, reviewing CV’s, checking references
• Intangible: does not take into account lost business or training new employees

To keep an employee:
- various incentives and training programs

Question 17

Staff discipline and dismissal

Answer 17

Employee law is very complex, changes occur frequently

Dismissal must considered fair..

(Unfair: origin, gender, age, disability, pregnancy, maternity/ paternity leave)

Question 18

Disciplinary process

Answer 18

1. Oral warning
2. Written warning
3. Suspension
4. Discharge

Question 19

Benefits of quality

Answer 19

Profit
Price/ value relationship
Business growth
Will lead to loyal customers: resulting in operational efficiencies without increasing costs

Question 20

Difficulties in managing quality in service industry

Answer 20

Consistency: hard to ensure from day to day

Simultaneously: production and consumption

Perishability: services cannot be stored

Question 21

Managing quality: pressure

Answer 21

Short production cycle, leaving little time for correction

Health risks; limited shelf life, risk of illness

Hard work; human labour intensive

The customer; pressure of facing the client

Question 22

Total quality management

Answer 22

TMQ approach driving force is the focus on the satisfaction of customer needs, anything that could get in the way must be removed.

Teamwork and participation

Question 23

The primary elements of TQM

Answer 23

Customer focused
Total employee involvement
Process centred
Integrated system
Strategic and systematic approach 
Continual improvement 
Fact- based decision making
Communication

Question 24

Internal search

Advantages

Answer 24

Improve morale
Reduce turnover
Reduce training and induction costs
Reduce recruitment and selection costs

Question 25

Internal search

Disadvantages

Answer 25

Promotes inbreeding
Reduction in new ideas into organisation
Departmental gaps

Question 26

External search

Advantages

Answer 26

Brings new ideas into company
Brings new talents into company
Less costly than training
Avoids political problems in internal recruiting

Question 27

External search disadvantages

Answer 27

More difficult to ensure good fit with culture and philosophy
Reduce morale
Increase in personality conflicts

Question 28

Why concept and design is important

Answer 28

Design and layout have big impact on guests satisfaction and employee productivity

Negative:
Guests could receive slow service
Employees will loose time and energy

Positive:
Improves productivity and food quality
More interaction with guests

Question 29

Key considerations - facility design

Answer 29

Government agencies play a role in facility design
Food facilities will likely be used for a long period of time
Best design and layout facilities are flexible
Environmentally friendly and eco facilities are increasingly being used
Managers are involved with remodelling projects. Having some knowledge of design and layout is helpful

Question 30

Unique issues for F&B control

Answer 30

Perishability of the product

Business volume unpredictability

Menu mix unpredictability

F&B operation short cycle

Departmentalisation

Question 31

Essentials of a control system

Answer 31

Menu planing & analysis
Production control
Stock management
Purchase ordering

Question 32

Menu engineering

Answer 32

Based on popularity
Based on profitability
Eyes drawn to ‘sweet spot’

Question 33

Dietary concerns

Answer 33

Calories
Fats and cholesterol 
Sodium (salt)
Food allergies
Celiac disease (gluten)
Vegetarianism 
Organic food

Question 34

Developing healthier menus

Answer 34

Reduce fat and cholesterol: offer fish, chicken, turkey
Reduce sodium in soups, sauces, marinades
Offer low-fat and low-sugar foods like fruits and vegetables
Reduce portion sizes
Offer fresh-fruit desserts, sugar-free beverages, unsweetened cereals, bakes items made with less sugar

Question 35

Yield cost analysis

Answer 35

Calculation AP/ yield = EP unit price