NHM 372 Chapter 9

matrix

A matrix structure is often used for special projects. In this structure, experts from a variety of departments are pulled together to work with a project manager on a specified project. When the project is completed, employees return to their areas.

efficiency 2

According to Robbins, Decenzo, and Coulter (2011), managerial efficiency, the ability to get things done correctly, means getting the most output from the least amount of input. Food-service managers who can reduce the cost of food products to attain goals are acting efficiently. Effectiveness, in contrast, is the ability to choose appropriate objectives; an effective foodservice manager selects the right things to accomplish certain ends, such as interviewing customers to determine if quality expectations have been met. The foodservice manager who plans a menu featuring grilled orange roughy when the customer would prefer fish and chips may be performing efficiently but not effectively. No amount of efficiency can compensate for lack of effectiveness. Drucker (1964), one of the first management authorities to discuss efficiency and effectiveness in relation to managerial performance, stated that the question is not how to do things right but how to find the right things to do. Thus, effectiveness is at the heart of accountability.

SM process

Although authors differ on the actual number of steps that occur in the strategic management process, all agree that the process involves analysis of the company and its environment, creation and implementation of strategies to move a company toward its goals, and evaluation of progress. The process is circular in nature as information from the evaluation is fed back into the analysis step, and the steps (environmental scanning, strategy formation, strategy implementation, and strategy evaluation) are repeated as shown in Figure 9-20. Although once thought to be a process only used in for-profit organizations, strategic management has become a critical component for all foodservice organizations regardless of profit status.

organizational structure

An organization is defined as a group of people working together in some form of coordinated effort to attain objectives. An ideal organization results in the most efficient use of resources. The organization structure is based on the objectives that management has established and on plans and programs to achieve these objectives. Different types of structures will be required for traditional and new organizations, each with different objectives.

evaluation and control

Evaluation, the final step in the strategic management process, involves assessing whether changes have occurred in the organization's internal or external strategic position and determining whether the controls are in place to help assure the organization is progressing satisfactorily toward achieving its objectives. An effective strategy evaluation pro-gram should be economical; provide meaningful, accurate information in a timely manner; and identify factors that have led to an organization's current position. Results of this evaluation will help managers decide if the organization is moving toward its goals as planned or if changes are needed to help ensure success.

roles

Mintzberg (1980) described the manager's job in terms of various roles, which he referred to as organized sets of behaviors identified with a position. He depicted the manager's position as be-ing composed of 10 different but closely related roles, shown in Figure 9-4. The formal authority of a manager gives rise to interpersonal, informational, and decisional roles.

TQM 2

Robbins and Coulter (2007) suggested that organizations of the future will be flexible, customer oriented, skills focused, dynamic, and involvement oriented. In many cases, traditional top-management activities will need to be shared and performed by others in the organization. Managers are now asked to create an environment that encourages all employees to solve problems and make improvements and that empowers them to implement solutions. Managers should share business or competitive information with all employees because they need to understand where their organization stands in terms of profit and loss and market share. Only then can employees make good decisions that fit into the mission of the organization (Gufreda, Maynard, & Lytle, 1990).

directing

The directing function of management involves directing and channeling human effort for the accomplishment of objectives. Directing is the human resources function particularly concerned with individual and group behavior. All managing involves interaction with people and thus de-mands an understanding of how we affect and are affected by others. When managers direct others, they use that understanding to accomplish tasks through the work of other members of the organization. Directing is primarily concerned with creating an environment in which members of the organization are motivated to contribute to achieving goals. It has many dimensions, including morale, employee satisfaction, productivity, and communication. As stated in Chapter 1 in the discussion of personnel satisfaction as a system output, managers must be concerned with assisting employees in achieving personal objectives at work and with coordinating personal and organizational objectives.

organization chart

The organization chart, as shown in Figure 9-16, graphically portrays the organization structure. It depicts the basic relationships of positions and functions while specifying the formal authority and communication network of the organization. The title of a position on the chart broadly identifies its activities; distance from the top indicates the position's relative status. Lines be-tween positions are used to indicate the prescribed formal interaction. The organization chart is a simplified model of the structure. It is not an exact representation of reality and therefore has limitations. For example, the degree of authority a superior has over a subordinate is not indicated. The chart, however, assists employees of the organization in understanding and visualizing the structure. Charts should be revised periodically because organizations are dynamic and undergo many changes over time.

QWL

To improve the quality of work life (QWL) in the organization, managers need to look at the way work is organized and the way jobs are designed. Each organization has special problems and designs jobs to solve those problems. Some general guidelines, adapted from the Ontario, Canada, Quality of Life centre (cited in Sherman, Snell, & Bohlander, 1997), include the following: Decisions are made at the lowest possible level. • Teams of employees are responsible for a complete job. • Technical and social potential of employees and the organization is developed. • Quality and quality control are components of production. • Safety and health of employees are emphasized. • Immediate feedback of information required to perform a job is available. • Problems are solved by teams, but responsibility for decisions is shared by all levels of the organization.

trade

Trade agreements exist among many nations of the world. A free trade agreement means that there are no trade barriers, such as tariffs, among participating countries. A common market allows free trade among members but establishes a trade policy with nonmembers. Ex-amples of trade agreements include: • WTO. The World Trade Organization includes more than 160 countries from around the world and includes agreements for trade, banking, insurance, telecommunication, and tourism among member countries. • NAFTA. The North American Free Trade Agreement created a free trade agreement among Canada, Mexico, and the United States. It eliminated most tariffs between the three countries but allowed each to set its own tariffs on imports from nonmember nations. It also simplified the process of shipping across borders and set more strident health and safety standards. • EU. The European Union (originally the European Economic Community), which in-cludes 28 European countries, formed a free trade area among the member countries and common trade policy for nonmember countries. • ASEAN. The Association of Southeast Asian Nations is a group of 10 Southeast Asian countries who are working to liberalize trade and reduce tariffs among the member nations. • APEC. The Asia-Pacific Economic Cooperation is a group of 21 Pacific Rim states that are working to facilitate freer trade in that region.

Strategic Management

A systems approach to managing a foodservice operation involves creative and intuitive strategic thinking. Such thinking synthesizes information from the internal and external environments to create an integrated perspective for guiding the organization into the future (Mintzberg, 1994). According to Harrison and Enz (2005), strategic thinking has the following characteristics: • Intent focused. Has vision for where the organization is/should be going • Comprehensive. Views organization as part of larger system • Opportunistic. Takes advantage of unanticipated opportunities • Long-term oriented. Goes beyond here and now and looks into the future • Builds on past and present. Learns from past; recognizes constraints of present • Hypothesis driven. Evaluates creative ideas in a sequential process

competence

Acceptance authority is also related to a manager's expertise and personal attributes. Authority of competence or expertise is based on technical knowledge and experience. A com-mand may be accepted, not because of organizational title, but because the employee believes the person giving the command is knowledgeable. This concept underscores the importance of foodservice managers possessing technical skills. If the foodservice manager understands technical operations, such as production methods and equipment operation, foodservice employees view the manager as knowledgeable and gen-erally will be more willing to accept direction. Subordinates may also accept the authority of the manager because they want to please or help the person giving the command. The charismatic leadership of many well-known historical figures is the epitome of this personal authority.

intensity

Administrative intensity is the degree to which managerial positions are concentrated in staff positions (Griffin, 2001). A high-administrative intensity organization is one with many staff positions relative to the number of line positions; low ad-ministrative intensity emphasizes more line positions. Many organizations have reduced their administrative intensity in recent years by eliminating many staff positions.

globalization

Advances in communication and information technology and ease of foreign travel have resulted in a much more global society. As a result, economic, political, cultural, and environmental events in one part of the world can greatly impact those living in another part of the world. Many of the items of everyday life such as food, clothing, equipment, and cars are imported from another country. The United States also exports many products to other countries as well. People vary greatly in their global perspective. Some have an inability to recognize the differences between people and are said to have a parochial attitude. Others are described as having an ethnocentric attitude in which they perceive that the best practices and approaches are those of their home country. The most effective global perspective is to have a geocentric attitude, which focuses on finding the best approach regardless of its national origin.

organizing

After developing objectives and plans to achieve them, managers must arrange the work to achieve these objectives. Organizing is the process of grouping activities, delegating authority to accomplish activities, providing for coordination of relationships, and facilitating decision making (Robbins & Coulter, 2005). A more complete discussion of the organizing function is included later in this chapter. The outcome of organizing is the development of the formal organization, which is usually depicted in the form of a chart. An example of an organizational chart for a university residence hall foodservice department is shown in Figure 9-12. Once managers have established objectives and developed plans to reach them, they must design an organization to activate these plans. Different objectives will require different kinds of organizations. For example, an organization for a limited-menu restaurant operation will be far different from one for an upscale gourmet restaurant. Similarly, the organization of a 50-bed nursing home foodservice department will differ markedly from that of a 500-bed teaching hospital.

managerial skill

Although all three skills are important at every managerial level, the technical, human, and conceptual skills used by managers vary at different levels of responsibility (see Figure 9-5). Technical skill is most important at the lower levels of management, identified as nonsupervisory and supervisory by Hersey, Blanchard, and Johnson (2000), and it becomes less important in the higher levels. The nonsupervisory level includes employees who participate in on-the-job training of other employees. The foodservice production supervisor at the supervisory level, for example, is called upon to use technical skills frequently in supervising employees in daily operations. These technical skills are important in evaluating products, in training employees, and in problem solving. The middle manager at the managerial level uses technical skills in performing the tasks of evaluating operations and selecting employees who have appropriate skills to perform various jobs. Also, in crisis situations, the middle manager's technical skills may be called into action. Top-level managers at the executive level, although generally not involved in daily operations, need understanding of technical operations to enable effective planning.

customer

Another type of departmentalization is based on division by type of customers served. A contract foodservice company, for example, that has divisions for schools, colleges, and healthcare is departmentalized by type of customer. A wholesale firm that distributes products to grocery stores and to hotels, restaurants, and institutions may be subdivided into two corresponding divisions. This approach to departmentalization permits the wholesaler to serve the specialized needs of both the grocer and the foodservice operator.

coordination 2

Another way in which managers act to coordinate activities in an organization is in a link-ing role. Communication is the responsibility of managers for linking with managers at higher levels in the organization and with others at their own level. This concept was derived from Likert's work (1961) in which he described managers as "linking pins." Appointment of committees and task forces is a mechanism used in organizations for co-ordination. These groups serve an important role when problem solving must involve several departments. Problems involving half a dozen departments, for example, can be dealt with efficiently by such groups; otherwise, problems are referred upward through the chain of command. Committees and task forces are common in all foodservice operations. Many foodservice organizations in metropolitan centers have formed task forces to recommend ways to feed the needy and homeless, and one solution many find is for the organization to contribute to municipal soup kitchens.

authority

Authority is defined as the right of a man-ager to direct others and to take action because of the position held in the organization. Authority is delegated down the hierarchy of the organization as designated by upper management. The tapered concept of authority (Figure 9-17) holds that the breadth and scope of authority become more limited at the lower levels of an organization. To apply this concept to the organization chart depicted in Figure 9-16, the manager with the broadest scope of authority is the associate director for foodservice administration; each succeeding level has a narrower scope. A sound organizing effort, therefore, includes defining job activities and scopes of authority for each position in the organization.

conceptual skill

Conceptual skill is the ability to view the organization as a whole, recognizing how various parts depend on one another and how changes in one part affect other parts. Conceptual skill also involves the ability to understand the organization within the environmental context; a good example is the relationship of the organization to other similar organizations and to suppliers within the community. It also includes understanding the impact of political, social, and economic forces on the organization. From this description, conceptual skill is obviously a systems approach to management. A manager needs conceptual skill to recognize how the various forces in a given situation are interrelated to ensure that decisions are made in the best interest of the overall organization. In summary, Katz (1974) stated that effective management depends on three basic skills: technical, human, and conceptual. Adequate technical skill is needed to accomplish the mechanics of the job, sufficient human skill is necessary in working with others to enable development of a cooperative effort, and conceptual skill is required to recognize interrelationships of factors involved in the job.

controlling

Controlling is the process of ensuring that plans are being followed. It involves comparing what should be done with what was done and then taking corrective action, if necessary. Con-trolling must be a continuous process that affects and is affected by each of the other managerial functions. For example, the goals, objectives, and policies established in the planning process become control standards. When comparing performance to these standards, the need for new goals, objectives, and policies may become obvious. Effective organizing, staffing, and directing result in more effective control. Likewise, more effective control also leads to better organizing, staffing, and directing. Within this interrelatedness and interdependency of managerial functions, controlling relates most closely to planning.

coordination

Coordination is a major component of organization structure (Griffin, 2001). Coordination is the process of linking activities of various departments in the organization. Job specialization and departmentalization involve breaking jobs down into small units and then combining the units to form a department. The activities in the department then need to be linked and focused on organizational goals. Some of the most useful means for maintaining coordination among interdependent units are horizontal interaction; policies, procedures, and rules; standards; communication; and committees and task forces. In a large medical center, for example, horizontal interaction is required among departments. Nursing service and food and nutrition service staff often communicate directly rather than through the vertical organization. Such lateral relationships facilitate communication in an organization. Policies, procedures, and rules ensure consistency in operations and are an important method of coordination. Managers may also establish schedules and other plans to coordinate action. Events are often unpredictable, however, and must be coordinated by managers using their judgment. Overreliance on rules and regulations can create problems in organizations. Standards need to be developed before good coordination occurs in a foodservice operation. For example, large limited-menu restaurants usually have specific standards regarding production and service of products. One doughnut chain, for instance, requires that all products not sold within 4 hours after frying must be discarded. Specific formulations and frying procedures must also be followed.

corporate culture

Corporate culture, or organizational culture, is defined as the shared philosophies, values, assumptions, beliefs, expectations, attitudes, and norms that knit an organization together (Sherman, Snell, & Bohlander, 1997). Every company has a culture, but it is not always well defined. The most successful companies have adopted a positive culture, one that values its employees and treats them as part of a team. Positive cultures have the following qualities in common (Fintel, 1989): • Integrity. Building trust between people in the organization • Bottom-up style of management. Involving employees as part of the team • Having fun. Finding ways both at work and outside of work for fun • Community involvement. Participating in community service programs • Emphasis on physical health and fitness. Practicing a belief that a sound mind goes along with a sound body

geography

Departmentalization by territory is most likely to occur in organizations that maintain physically dispersed and autonomous operations or offices. Geographic departmentalization permits the use of local personnel and may help create customer goodwill and a responsiveness to local customs. National restaurant chains often are divided into regional areas, with a regional man-ager and staff responsible for all the operations in a particular area. For example, several of the large contract foodservice companies are divided into several geographic regions, such as East, Midwest, Northeast, Northwest, and South.

general

Earlier in this chapter, managers were classified by their level in the organization; managers also can be classified according to the range of organizational activities for which they are responsible. In this second classification, managers can be considered either general or functional managers. A general manager is responsible for all the activities of a unit. In a restaurant, every-thing that happens on a specific shift is the responsibility of the general manager on duty. A functional manager is responsible for only one area of organizational activity, such as the bar. If the bartender is absent, the bar manager must make arrangements for coverage. If, however, the bar manager is absent, the general manager would be responsible for covering the position or appointing someone to take the manager's place. Although a small organization may have only one general manager, a larger, more complex organization may have several. A college foodservice director and unit managers and assistant unit managers at university foodservice centers typically are all considered general managers. Depending on the size of the units, two or more functional managers may be responsible for various areas of activity within each of the units.

span 3

Early management theorists attempted to define the appropriate number of superior-subordinate relationships in terms of a mathematical formula. In 1933, Graicunas published a classic paper presenting a formula for analyzing the potential number of these relationships (1973, originally published 1933). Based on the work of Graicunas and others, Urwick (1938) stated the concept of span of management as follows: "No superior can supervise directly the work of more than five or, at most, six subordinates whose work interlocks." During the years since those early publications, researchers have found that a variety of factors influence the appropriate span of management and that this span is not strictly a function of the number of relationships. In addition to those listed previously, the complexity, variety, and proximity of jobs and the abilities of the manager are other factors related to span of management. Today, span of management is a crucial factor in structuring organizations, but no universal formula has been developed for an ideal span (Griffin, 2001). In a foodservice organization in which many of the workers may have lower levels of educational and limited skilled training, a narrower span of management may be appropriate. If workers are well trained, a wider span is possible and fewer supervisors are needed.

acceptance pg 284

Formal authority is also referred to as positional authority, meaning that authority is derived from the position or office. For example, cooks and other production workers recognize the production manager as having certain authority because of the position he or she holds in the organization. Acceptance authority is based on the concept that managers have no effective authority unless and until subordinates are acquiescent. Although they may have formal authority, this authority is effective only if subordinates accept it. The accept-comply process is related to a subordinate's zone of acceptance. In other words, a manager's order will be accepted without conscious question if it falls within the range of job duties anticipated when the subordinate accepted employment. The employee, however, may refuse to perform a task he or she considers to be outside this range. For example, a cook would willingly prepare any item on the menu, even items added at the last minute, but may be unwilling to help out in the dishroom, feeling that dishwashing is not part of the job.

functional

Functional departmentalization occurs when organization units are defined by the nature of the work. (The word function is used here to mean organizational functions, such as finance and production, rather than basic managerial functions, such as planning and con-trolling.) All organizations create some product or service, market these products or services, and finance their ventures. Therefore, most organizations have three basic functions: production, sales, and finance. In the nonprofit foodservice operation, the sales function may be one of clientele service and creation of goodwill, and the finance function may be considered business affairs. Even in these organizations, however, the need to apply marketing concepts is widely recognized. The primary advantage of such departmentalization is that it allows specialization within functions and provides for efficient use of equipment and other resources. It provides a logical way of arranging activities because functions are grouped that naturally seem to belong together. Each department and its manager are concerned with one type of work.

MG 2 pg 269

Human skill, the ability to work effectively with others, is essential at every level of management, as reflected in Figure 9-5. The first-line manager, who is responsible for daily super-vision of operating employees, must be effective in guiding and leading these individuals to accomplish the activities for which they are responsible. These employees must be motivated to produce quality products, to serve customers cheerfully, and to wash dishes properly. Morale and satisfaction are important to each employee's effective performance. Middle managers, because of their pivotal role in the organization, must be especially accomplished in human skills. These managers must effectively lead their own groups and appropriately relate to other parts of the organization. At the top level, the manager must be equally effective in dealing with people outside the organization. The importance of conceptual skill increases with movement up the ranks of the organization. The higher a manager is in the hierarchy, the greater the manager's involvement in broad, long-range decisions affecting large parts of the organization. At this level, conceptual skill becomes the most important one for successful performance.

human skill

Human, or interpersonal, skill concerns working with people and understanding their behavior. Human skill, which requires effective communication, is vital to all the manager's activities and must be consistently demonstrated in actions. As Katz (1974) indicated, human skill cannot be a "sometime thing." Such skillfulness must be a natural, continuous activity that involves be-ing sensitive to the needs and motivations of others in the organization. Katz (1974) described two aspects of human skill: leadership within the manager's own unit and skill in intergroup relationships. This description of human skill is similar to Mintzberg's (1975) interpersonal roles of leader and liaison. Both authors emphasized the importance of a manager working effectively with staff within the organizational unit and with people outside the unit. The campus foodservice director described previously must work effectively with unit managers within the department and the housing director, head of maintenance, and campus purchasing director.

line and staff

In addition to vertical division of labor through delegation and horizontal division of labor through departmentalization, labor may be divided into line and staff. A line position is a posi-tion in the direct chain of command that is responsible for the achievement of an organization's goals (Griffin, 2001). Line positions include a production or service manager. The Manager of Patient Foodservice position shown in Figure 9-16 is an example of a line position. A staff position is intended to provide expertise, advice, and support for line positions. A materials or human resources manager is an example of a staff position. The Systems Development Dietitian position shown in Figure 9-16 is an example of a staff position. Line employees typically are responsible for production of products and services in the organization, and staff personnel may function in assisting or advising roles. Staff work revolves around the performance of staff activities, the utilization of technical knowledge, and the creation and distribution of technical information to line managers.

innovative organization

In innovative organizations, employers are challenged to improve the quality of work life and to develop a corporate, or organizational, culture (Sherman, Snell, & Bohlander, 1997). Kesier, DeMicco, Cobanoglu, and Grimes (2008) and Dressler (2002) suggest that innovative organizations are characterized by several general precepts: • Empowered decision making. Employees, not just managers, are involved in decision making. • Sociability. A sense of belonging to the organization is created for all members. • New bases of management power. A shift has occurred from use of only downward authority to inclusion of upward and lateral lines of authority and input. • Personal consideration. Greater recognition is given to the importance of individual employees, not just the job they perform. • Team-based with group recognition. Formation of teams of employees and/or managers working together to accomplish goals with more emphasis on team rather than individual recognition. • Self-fulfillment. Employee job satisfaction and sense of accomplishment is more valued. • Flat hierarchy. The number of managerial levels has been reduced. • Emphasis on vision and values. Companies are finding it more important to formulate clear visions and values to which employees can commit themselves. • Managers as change agents. Change is viewed as a critical component in organization success, and managers are expected to stimulate and facilitate change. • Technologically savvy. Effective use of all forms of technology and a presence on the Internet are necessary components of organizations.

interpersonal roles

Interpersonal roles of figurehead, leader, and liaison focus on relationships. The figurehead role has been described by some management experts as the representational responsibility of management. By virtue of a manager's role as head of an organization or unit, ceremonial duties must be performed and may involve a written proclamation or an appearance at an important function. For example, a manager's ceremonial tasks may include greeting a group of touring dignitaries or signing certificates for a group of employees who have completed a training program. The manager in charge of an organization or unit also is responsible for the work of the staff; this constitutes the leader role. Functions of this role range from hiring and training employees to creating an environment that will motivate the staff. Mintzberg (1975) contended that the influence of the manager is seen most clearly in the role of leader. Although formal authority vests the manager with great potential power, leadership determines, in large measure, how much is realized. A manager must encourage employees and assist them in reconciling personal needs with organizational goals. The manager also must assume the interpersonal role of liaison by dealing with people both inside and outside the organization. Managers must relate effectively to peers in other departments of the organization and to suppliers and clients. Depending on a manager's level in the organization, responsibility for liaison relationships will vary. In Mintzberg's (1975) research, 44% of the time that company chief executives spent with people was spent with people outside their organizations. The liaison role is important in building a manager's information system.

dimensions of planning pg 270

Kast and Rosenzweig (1985) identified four dimensions of planning: repetitiveness, time span, level of management, and flexibility. All are important components of the planning process. Repetitiveness Figure 9-8 shows the relationship of standing and single-use plans to organizational objectives. Standing plans, or plans for repetitive action, are used over and over again; single-use plans, also called single purpose, are not repeated but remain as part of the historical records of the organization. Standing plans result in policies, operating procedures, methods, and rules, all of which are a primary cohesive force connecting the various subsystems of an organization. A policy, the broadest of the standing plans, is a general guide to organizational behavior developed by the governing body or top-level management. Organizations should have a wide variety of policies covering the most important functions. Frequently these policies are formalized and available in policy and procedure manuals. Characteristics of policies and procedures are listed in Table 9-1. Procedures and methods establish more definite steps for the performance of certain activities and are developed especially for use at the technical level of the system. A procedure shows a chronological sequence of activities; a method is even more detailed, relating to only one step of a procedure.

management skills

Katz (1974) identified three basic types of skills—technical, human, and conceptual—that he said are needed by all managers. The relative importance of these three skills varies, however, with the level of managerial responsibility. Katz defined a skill as an ability that can be developed and that is manifested in performance. He described the manager as one who directs the activities of others and undertakes the responsibility for achieving certain objectives through these efforts. Technical, human, and conceptual skills are interrelated, but they are examined separately in the following paragraphs.

managing organizations

Management concepts have broad applications because much of an individual's activity takes place within an organizational context. The tendency to develop cooperative and interdependent relationships is a basic human characteristic. All organizations, ranging on a continuum from informal ad hoc groups to formal, highly structured organizations, require managing. An organization is defined as a group of people working together in a structured and coordinated way to achieve goals (Griffin, 2001). Resources come together in an organization; the manager is responsible for coordinating them in a sensible way by acquiring, organizing, and combining resources to accomplish goals. Management is a set of activities (planning, organizing, staffing, directing, and controlling) directed at an organization's resources (human, materials, facilities, and operational) for achieving goals effectively and efficiently (Griffin, 2001).

management process

Management is a critical element in helping transform inputs of the foodservice system into outputs. In this chapter, management concepts are reviewed and applied to the foodservice operation. The importance of management functions in the transformation element of the foodservice system is emphasized. Ways to structure the organization, social responsibility, and globalization also will be discussed. Management has been defined as a process whereby unrelated resources are integrated into a total system for accomplishment of objectives. Management, involving the basic functions of planning, organizing, staffing, directing, and controlling, is the primary force that coordinates the activities of subsystems within organizations. Management was explained by Robbins, Decenzo, and Coulter (2011) as the process of coordinating work activities so that they are completed efficiently and effectively by working with and through other people. All these definitions underscore how important it is that managerial activity be directed toward achieving the goals and objectives of the organization. As shown in Figure 9-1, management is part of the transformation process, turning inputs into outputs.

efficiency

Management requires coordination of human and material resources while maintaining concern for morals, ethics, and ideals. Goals are determined by values and preferences, but the method for reaching them must be socially and morally acceptable. A manager's job is unpredictable and full of challenges, but it is also filled with opportunities to make a difference. Authority, responsibility, and accountability are concepts important to the process of management. Authority is delegated from the top level to lower levels of management and is the right of a manager to direct others and take actions because of his or her position in the organization. Responsibility is the obligation to perform an assigned activity or see that someone else per-forms it. Because responsibility is an obligation a person accepts, it cannot be delegated or passed to another; essentially, the obligation remains with the person who accepted the responsibility. Accountability is the state of being responsible to one's self, to some organization, or even to the public. In the systems context, management was described as a process for accomplishment of objectives, implying, therefore, that accountability is an integral aspect of the managerial role. Managers must show results in an era when scarce resources are an increasing concern. Efficient and effective use of these resources to produce desired results is a requisite for a viable organization. In contemporary jargon, efficiency is described as "doing things right," and effectiveness as "doing the right things."

informational roles pg 266

Mintzberg (1975) suggested that communication may be the most important aspect of a manager's job. A manager needs information to make sound decisions, and others in a manager's unit or organization depend on information they receive from and transmit through the manager.According to Mintzberg (1975), the informational roles of a manager are those of monitor, disseminator, and spokesperson. As monitor, the manager constantly searches for information to use to become more effective -Chapter 9 • Management Principles 267 Informational roles. The manager queries liaison contacts and subordinates and must be alert to unsolicited information that may result from the network of contacts previously developed. The man-ager collects this information in many forms and must discern implications of its use for the organization. In the disseminator role, the manager transmits information to subordinates who other-wise would probably have no access to this information. An important aspect of this role is to make decisions concerning the information needs of staff members. The manager must assume responsibility to disseminate information that helps staff members become well informed and more effective. The spokesperson role of the manager is closely akin to the figurehead role. In the spokes-person role, the manager transmits information to people inside and outside the organization or unit. For example, the director of dietetics in a hospital should keep the administrator up to date about problems in the department, and the food and beverage manager in a hotel should relay information to the general manager. The spokesperson role may also include providing information to legislators, suppliers, and community groups.

types of managers 264

Most organizations have first-line, middle, and top managerial levels (Figure 9-2). First-line, or first-level, managers generally are responsible for supervising employees. In the foodservice organization, these managers usually are referred to as foodservice supervisors. Functional responsibilities may be indicated as part of their title. For example, in a college residence hall foodservice, first-line supervisors may be assigned to production, service, or sanitation. In Chapter 1, a model (see Figure 1-3) was presented that showed there are three levels of an organization: technical, organizational, and policy making. Figure 9-2 shows how the management levels work within the organizational levels. First-line managers function at the technical core and are responsible for day-to-day operational activities. Middle management may refer to more than one level in an organization, depending on the complexity of the organization. The primary responsibility of middle managers is to coordinate activities that implement policies of the organization and to facilitate activities at the technical level. Middle managers direct the activities of other managers and sometimes those of functional employees. This level of management also is responsible for facilitating communication between the lower and upper levels of the organization, and it functions at the organizational level. Top managers make up the relatively small group of executives that control the organization. They develop the vision for the organization's future, are responsible for its overall management, establish operating policies, and guide organizational interaction with the environment. These managers operate at the policy-making level of the organization. Multiunit managers in restaurant chains are responsible for policy implementation, sales promotions, facility appearance and maintenance, financial control, and personnel management (Umbreit, 1989).

departmentalization

One of the first things that happens when people create an organization is that they divide up their work to allow specialization. As the organization grows and tasks become more numerous and varied, this division of labor is formalized into jobs and departments. Departmentalization, which is the process of grouping jobs according to some log-ical arrangement, is the most frequently used method for implementing division of labor (Griffin, 2001). Although work units can be structured in a number of ways, all units divide the work and thus establish a pattern of task and authority relationships. This pattern becomes the organizational structure.

flexibility

One of the major considerations in planning is the permissible degree of flexibility. Long-range planning involves decision making that commits resources over an extended period of time. Rapidly changing technology, competitive and market situations, and political pressures make forecasting extremely difficult. Rigid planning at early stages involves the risk of inability to cope with changes. Organizations may have to compromise on rigidity versus flexibility by developing relatively fixed short-range operation plans and more flexible long-range strategic plans.

organizing 2

Organizing involves the division of labor. Within organizations, labor can be divided both horizontally through departmentalization and vertically through the delegation of authority. In designing organizations, line and staff authority relationships are created. Generally, line personnel are in a linear responsibility relationship; a superior has supervision over a subordinate. Staff personnel serve in an advisory capacity to line managers.

division of labor

Organizing is basically a process of division of labor, which can be divided vertically, horizontally, or in matrix format. Organizing also improves the efficiency and quality of work, as the coordinated efforts of people working together begin to produce a synergistic effect. As defined in Chapter 1, synergy means that the units or parts of an organization acting in concert can produce more impact than by operating separately. Synergism can result from division of labor and from increased coordination, both of which are products of organization. Improved communication also can be a product of organization and its structurally defined channels. In the traditional organization, employee positions were discussed as either vertical or horizontal. In newer management organizations, the division of labor lines are not as clear-cut because employees work as teams and are empowered to make decisions; team and matrix organizational structures are becoming more common.

QWL 2

Participative management, leader-member relations, self-managed teams, and team-based leadership are becoming more prominent in all sizes of operations. Participative management involves empowering employees to participate in decisions about their work and employment conditions (Sherman, Snell, & Bohlander, 1997). The concept is not new, but its use varies widely in organizations. Leader-member relations refer to the nature of the relationship between the leader and workgroup. If the leader and the group have a high degree of mutual trust, respect, and confidence, and if they like one another, relations are assumed to be good. If there is little trust, respect, or confidence, and if they do not like each other, relations are poor. Naturally, good relations are more favorable (Griffin, 2001). Most management writers agree that leadership is the process of influencing the activities of an individual or a group in efforts toward goal achievements in a given situation (Hersey, Blanchard, & Johnson, 1996). In an organization, a team is a group of workers that serves as a unit, often with little or no supervision (Griffin, 2001). Work accomplishment is from committed people; interdependence in organization purpose leads to relationships of trust and respect (Hersey, Blanchard, & Johnson, 2000). Team-based leadership, therefore, is two or more people who interact regularly to accomplish a common purpose or goal to be considered a group. To-day, teams are sometimes called self-managed teams because they do the daily work (Hersey, Blanchard, & Johnson, 1996). Organizations create teams for many reasons. They give more responsibility to the workers who perform the task. Also, workers are given more authority and decision-making freedom. Ideally, teams will become very cohesive groups and high performers

staffing 3

Performance appraisal is concerned with comparison of an individual's performance with established standards for the job. It also involves determination of rewards for high performance and corrective action to bring low performance in line with standards. Rewards may include bonuses, pay increments, or more challenging work assignments. Additional train-ing is often necessary for low performers. Compensation encompasses all activities concerned with administration of the wage and salary program. Fringe benefits are an important part of the program and include insurance pro-grams, leave time, and retirement programs.

planning defined

Planning is defined as determining in advance what should happen. Planning is essential as a manager organizes, staffs, directs, and controls. For example, a supervisor or manager prepares the menu, which is a basic plan that indicates the organization of the food preparation unit (organizing), the number (staffing) and assignments (directing) of employees, and the quality and cost of the product (controlling). A hierarchy of plans is shown in Figure 9-6. The initial plans are the goals and objectives of the organization, thus providing the basis for objectives of the various subsystems. Goals represent the desired future conditions that individuals, groups, or organizations strive to achieve (Kast & Rosenzweig, 1985). Objectives are merely goals, or end points, and set the direction for all managerial planning (Fulmer, 1988). Once objectives are determined, specific plans such as policies, procedures, and methods can be established for achieving them in a more systematic manner. Policies are the guidelines for action in an organization, and procedures and methods define steps for implementation. An organization will have only a few broad goals but many specific methods and procedures, as depicted in Figure 9-7. District school foodservices, for example, may have only two broad goals, one concerned with provision of nutritious meals within federal and state guide-lines and budgetary constraints, and another with nutrition education. Many policies would be needed, however, to achieve these goals and assure uniformity of operations throughout the var-ious schools in the district. An even greater number of procedures would be needed to give school foodservice employees specific instructions on implementation of policies.

planning

Plans, which are the result of the managerial process of planning, establish organizational objectives and set up procedures for reaching them. Plans provide for acquiring and committing resources to attain objectives and for assigning members their activities. Plans also provide standards for monitoring performance of the organization and taking corrective action when necessary.

other types

Process, equipment, and time are other bases for departmentalization. Process and equipment are closely related to functional departmentalization. In large foodservice op-erations, a deep-fat frying section within the production unit would be an example of process/ equipment departmentalization. A food factory, such as that in a commissary foodservice oper-ation, might be divided into units based on process or equipment because of the specialization needed for the large volume produced in the operation. Time or shift is also a common way of departmentalizing in some organizations. Organi-zations such as hospitals that function around the clock often organize activities on this basis. Usually, activities grouped this way are first departmentalized on some other basis, perhaps by product or function. Then, within that category, they are organized into shifts. For example, a hospital is departmentalized by functions, such as dietetics services and nursing services; the various departments may then have shifts with a supervisor in charge of each. Departmentalization is practiced as a means not only of implementing division of labor but also of improving control and communications. Typically, as the organization grows, it adds levels and departments. Coordination is another key objective in departmentalization. The type of departmentalization that is best for an organization depends on its specific needs.

organization chart 2

Responsibility and authority for the preparation, review, and final approval of the organization chart generally lie with top management, although approval may be the responsibility of the board of directors. At the departmental level, the chart may be the responsibility of the department head, although approval may be required from the next level up in the organization. Vertical organization charts have been the most conventional type, but currently the horizontal chart is being used in the new organizations. In the vertical chart, the levels of the organization are depicted in a pyramid form, with lines showing the chain of command. Special relationships may be indicated by the positioning of functions and lines on the chart. Staff functions may be depicted by horizontal placement between top and department managers. Referring again to the organization chart (Figure 9-16), the associate director of foodservice administration and the codirector of nutrition consultation services are on the same level, which indicates equal responsibility and authority in the department.

responsibility

Responsibility is a concept closely related to authority and refers to an obligation for performing an assigned activity. In accepting a job, a person agrees to discharge the duties or be responsible for their accomplishment by others. Because responsibility is an obligation a person accepts, it cannot be delegated or passed to a subordinate; that is, the obligation remains with the person who accepted the job. When a manager delegates responsibility, he or she does not abdicate any responsibility. For example, a foodservice manager often delegates responsibility for assuring that food is prepared according to a recipe to a cook, yet if a recipe is not followed and a patient receives food that was prepared inappropriately (i.e., salt added to a product when no salt was in the recipe), the manager ultimately is responsible. According to a principle of organization called the parity principle, authority and responsibility must coincide; that is, management must delegate sufficient authority so subordinates can do their jobs. At the same time, subordinates can be expected to accept responsibility only for those areas within their authority.

social respons 2

Robbins and Coulter (2005) contend that businesses that accept social responsibility are characterized by managers who actively promote social justice, preserve the environment, and support social and cultural activities. Companies often are rewarded by consumers for their social responsibility efforts. Faville (2006) reported that 83% of consumers indicated they trust a company more if it is socially/environmentally responsible and DaSilva (2004) found that 90% of Americans considered switching to another company's products to punish a company's bad corporate behavior. Many organizations share yearly social responsibility reports to highlight achievements during the year. Yum! Brands' (parent company to KFC, Pizza Hut, and Taco Bell) (www.yum. com) and McDonald's (www.mcdonalds.com) sustainability reports provide details of company projects that demonstrate their efforts to improve the world.

rules

Rules specify action by stating what must or must not be done, whenever or wherever they are in effect. Some examples of rules are prohibitions against smoking and the requirements to wear a specific uniform and hair restraint in the production area of a foodservice operation. A policy and its procedures for a hospital department of dietetics are shown in Figure 9-9. An advantage of the standing plan is that it ensures uniformity of operations throughout the system. Once established, understood, and accepted, the standing plan provides similarity of action in meeting certain situations; on the negative side, however, standing plans may create resistance to change. Management by exception is an important concept in relation to standing plans. Although standing plans serve as guidelines for decision making, upper levels of management must be-come involved whenever the application of policy is questioned. Single-use, or single-purpose, plans are designed to attain specific objectives, usually within a relatively short period of time. A single-use plan in a foodservice organization might be a major program for the design, development, and construction of a central food-processing facility for a restaurant chain; a plan for a "monotony breaker" in a college residence hall food-service; or a plan for a New Year's Eve celebration at a country club.

Environmental scan pg 291

Scanning the environment includes an assessment of information from the internal and external environment. Often included in this scan is a SWOT analysis, an acronym referring to an analysis of an organization's Strengths, Weaknesses, Opportunities, and Threats. The internal environment includes the current structure and culture of the organization. The external environment includes the societal, political, economic, technological, and competitive forces impacting the company. A careful analysis also is needed of the company's stakeholders and competitors. Monitoring the environment is an important task in the strategic planning process. That monitoring includes being aware of changes and trends in the industry. Foodservice professional organizations, such as the National Restaurant Association, the Association for Healthcare Food-service, the School Nutrition Association, and trade literature are good sources of trend information. Viewing these trends should challenge foodservice managers to review their menus and operations to find ways to maintain the operation's competitive advantage.

span of management

Span of management, often referred to as span of control, is concerned with the number of people any one person can supervise effectively. Several factors are involved in determining the proper number: • Organizational policies. Clearly defined policies can reduce the time managers spend making decisions; the more comprehensive the policies, the greater the span of management. • Availability of staff experts. Managers can have increased span if staff experts are avail-able to provide advice and services. Competence of staff. Well-trained workers can perform their jobs without close supervi-sion, thus freeing competent managers to expand their span of management. • Objective standards. In organizations with objective standards and standardized proce-dures, workers have a basis by which to gauge their own progress, thus allowing managers to concentrate on exceptions. As a result, larger spans are possible. • Nature of the work. Less complicated work tends to require less supervision than more complicated work. Generally, the simpler and more uniform the work, the greater the pos-sible span. • Distribution of workforce. The number of areas where supervised workers are on duty may inhibit severely a manager's ability to visit all work sites. The greater the dispersion of workers, the shorter is the span.

staffing 2

Staffing consists of several steps (Figure 9-13): human resources planning; recruitment and selection; orientation, training, and development; performance appraisal; and compensation. Closely linked to these steps are a variety of staffing functions concerned with maintenance of the workforce. These functions include promotions, demotions, transfers, layoffs, and dismiss-als. Human resources planning is designed to ensure that the organization's labor requirements are met continuously. It is a process involving both forecasting of staffing needs and analysis of labor market conditions. Recruitment and selection are concerned with developing a pool of job applicants and evaluating and choosing among them. These processes have become increasingly complex be-cause of legislative employment mandates. They are discussed in Chapter 12. Orientation, training, and development are processes designed first to acquaint new-comers with the organization and its goals and policies and to inform them of their responsibilities. Later, training is designed to improve job skills, and development programs are used to prepare employees for increased responsibilities.

controlling 2

Standards created in the planning process define the dimensions of what is expected to happen. These expected performance standards are the criteria that managers use to control performance; in turn, feedback from the controlling process is the information managers use to evaluate and adjust plans (Figure 9-14). The controlling function of management involves the following three steps, as depicted in Figure 9-15: • Measuring actual performance and comparing it with desired performance or standards • Analyzing deviations between actual and desired performance and determining whether or not deviations are within acceptable limits • Taking action to correct unacceptable deviations Taking corrective action is a process that cuts across both the directing and controlling functions because many deviations from expected standards are related to performance of personnel. For example, fewer portions than expected from a particular recipe might be caused by a foodservice worker using an inappropriate portioning tool.

Strategic planning

Strategic planning is a continuous and systematic process in which people make decisions about intended future outcomes, how outcomes are to be accomplished, and how success is measured and evaluated. In the early 1920s, Harvard Business School developed the Harvard Policy Model, one of the first strategic planning methodologies for private businesses. The model defines strategy as a pattern of purposes and policies defining the company and its business. A strategy is the thread or underlying logic that holds a business together. The firm weaves purposes and policies in a pattern that unites company resources, senior management, market information, and social obligations. Strategies determine organizational structure and appropriate strategies that will lead to improved economic performance. As used today, strategic planning has a strong connotation of overcoming obstacles, as can be seen in the derivation of the word strategy from the Greek stratego, meaning to plan the defeat of an enemy through effective use of resources. In modern business terminology, an organization must develop a competitive edge over its rivals by planning the effective use of personnel, materials, facilities, and operational resources. The outcome of the strategic planning process is a brief working document that unifies the action of participants toward achievement. Strategic planning and long-range planning for organizations are terms often used synonymously (Bryson, 1995).

SM 2

Strategic thinking is a major component of a process termed strategic management. Strategic management is a set of managerial decisions and actions that help determine the long-term performance of an organization (Wheelen, Hunger, Hoffman, & Bamford, 2015). It involves an integration of finance, accounting, marketing, and management principles. According to Geiner and Cummings (2009), those leading the strategic management pro-cess need to have the cognitive ability to view strategic direction in a comprehensive way. Leaders also need to have a collaborative behavioral style to help assure that all stakeholder voices are heard in the strategic planning process.

strategy formation

Strategy formation includes a review, and revision if needed, of a company's vision, mission, values, and objectives. A company's vision statement expresses in broad terms where the company wants to be in the future. It builds on the company's values and identifies its purpose. The mission statement provides more focus and describes what the company does. Harrison and Enz (2005) indicate that a mission statement directs decision making and resource allocation, inspires higher levels of performance and pride, communicates organization purpose and values, and enhances organizational reputation. Strategy formation also includes developing objectives that detail what should be accomplished and strategies or plans on how those objectives will be achieved. Strategies provide direction. Wheelan et al. (2015) suggested that orientation of the strategic direction could be for growth (vertically, horizontally, diversification), stability (no change, profit focus), or retrenchment (turn around, sell out, divestment, bankruptcy).

globalization 2

Support for globalization, the interaction among people and organizations of differ-ent nations, varies based on one's beliefs about the process. According to The Levin Institute (www.globalization101.org), proponents of globalization believe it helps those in less developed countries improve their economic status and standard of living; opponents voice concern that globalization has supported the growth of multinational corporations at the expense of local enterprises. Globalization has implications in economic, political/legal, sociocultural, and technological environments (Dressler, 2002). Javidan and House (2001) investigated leadership and culture in organizations in 62 countries and reported that national cultures differ on nine dimensions: assertiveness, future orientation, gender differentiation, uncertainty avoidance, power distance, individualism/collectivism, in-group collectivism, performance orientation, and humane orientation. Understanding these differences becomes extremely important for managers who were raised in one culture but are working in another.

SM focus

The focus of strategic management is on gaining and maintaining competitive advantage in long-term performance. Having a competitive advantage means doing something that other companies do not do (e.g., hospitals that provide room service), doing things better than others (e.g., Taco Bell's minimization of kitchen space through use of central commissaries to reduce store overhead), or doing something others cannot do (e.g., KFC's recipe and equipment for cooking chicken). Barney and Hesterly (2008) contend that competitive advantage occurs when a firm is able to create more economic value (perceived benefits exceed economic cost) for consumers than its competitors. Porter (1998) and Barney and Hesterly (2008) describe environmental threats that can reduce a firm's competitive advantage. These forces, often termed the five forces framework, are detailed in Table 9-2 and include individuals, groups, or organizations outside of the firm that can reduce the firm's competitiveness.

educational

The lower-level managers in foodservice organizations are often employees who work up through the ranks of the organization and may not have formal management training. In the healthcare segment of the industry, however, many first-line supervisors have completed a 1-to 2-year training program for dietary managers or dietetic technicians at vocational technical schools, junior or community colleges, or by correspondence. Increasingly, in healthcare organizations, dietetic technicians are being employed as first-line supervisors because of the responsibility of patient nutritional care. Middle-and upper-level foodservice managers are likely to be professionally educated. The current trend is to recruit managers with college degrees, typically with a foodservice or hospitality management focus.

decisional roles

The manager occupies the major role in decision making within the organization. Because of vested formal authority, a manager may commit the unit to new courses of action and determine unit strategy. As Mintzberg (1975) indicated, informational roles provide a manager with basic inputs for decision making. The decisional roles include those of entrepreneur, disturbance handler, resource allocator, and negotiator. As entrepreneur, the manager is the voluntary initiator of change. The entrepreneur role may involve, for example, a decision to change the menu after networking with other restaurateurs or customers. In the role of disturbance handler, the manager responds to situations that are beyond his or her control. In this role, the manager must act because the pressures of the situation are too severe to be ignored; for example, a strike looms, or a supplier fails to provide goods or services. Although a good manager attempts to avoid crisis situations, no organization is so well run or systematized that every contingency in the uncertain environment can be avoided. Disturbances may arise because poor managers ignore situations until a crisis arises; good managers also must deal with occasional crises.

staffing

The most valuable resources of an organization are its human resources—the people who pro-vide the organization with their work, talent, drive, and commitment. Among the most critical tasks of a manager is staffing, the recruitment, selection, training, and development of people who will be most effective in helping the organization meet its goals. Competent people at all levels are required to ensure that appropriate goals are pursued and that activities proceed in such a way that these goals are achieved. In the organizing process, various jobs in the organization are defined. The staffing pro-cess then involves a series of steps designed to supply the right people to the right positions at the right time. This process is performed on a continuing basis because organizational personnel change over time due to resignation, retirement, and other reasons. In many organizations, staffing is carried out primarily by a personnel department. The responsibility for staffing, however, lies with line managers. Every line manager, even one not involved in recruiting and selecting personnel, is responsible for training, development, and other aspects of staffing.

political and legal environment

The political and legal environment impacts globalization. Often trade barriers are established to control the production and sale of product. Trade barriers include tariffs, subsidies, and quotas. Countries with unstable political systems, those experiencing terrorism, and those with internal violence can be at risk for limits to globalization. The legal system and types of business laws in a country can impact the ease of globalization as well.

span 2

The problem of managers being able to manage only a limited number of workers is not unique to any type of organization or any industry. What is the appropriate span? One response could be that it depends on the situation. This situational approach, also called the contingency approach, is applicable in answering many questions about organizations. Organizational policies, availability of staff experts, competency of workers, existence of objective work standards, technology, and nature of the work are among the factors affecting the span of management in specific situations. The narrower the span of management, the greater the number of levels needed in the organization. Because each level must be supervised by managers, the more levels that are created, the more managers are needed. Conversely, with a wider span, fewer levels and fewer managers are required. Thus, the resulting organizational shape is a tall, narrow pyramid or a shallow, flat, broad pyramid, as illustrated in Figure 9-18. The leadership style and personality of the manager are other influences on span of management.

socioculture environment

The sociocultural environment includes the culture and values that exist in each country. Many differences can exist. Hofstede (1980, 1992) stressed that a society's values were among the most influential in cultural differences among countries. The Global Leadership and Organizational Behavior Effectiveness (GLOBE) research program, expanding on work by Hofstede, collected data from 18,000 managers in 62 countries and identified nine dimensions on which cultures differ (Robbins & Coulter, 2007): • Assertiveness. The degree to which assertiveness and toughness versus caring and tender-ness is valued. • Future orientation. The extent to which future-oriented behaviors such as planning and delayed gratification are valued. • Gender differences. The amount of status and decision making responsibility given to females. • Humane orientation. The extent to which altruistic, generous, caring, and kind behaviors are valued and rewarded. • Individualism versus collectivism. The degree to which ties between individuals are loose or close. In some countries the expectation is that each looks out for oneself (individualism); in other countries, the expectation is that each looks out for many others (collectivism). • In-group collectivism. The extent to which membership in groups such as family, friends, and employing organizations are valued. • Performance orientation. The degree to which group members are encouraged and re-warded for performance improvement and excellence. • Power distance. The extent to which less powerful members of an institution expect and accept that power will be unequally distributed. • Uncertainty avoidance. The degree to which people are comfortable with the unknown and having unexpected things happen.

strategy implementation

The third step in the strategic management process, strategy implementation, involves the determination of strategic direction for the company and the implementation of strategies to help a company gain competitive advantage. The most widely quoted author on strategy development, Michael Porter (1985, 1990), proposed three bases for strategies: • Cost leadership. Being the lowest cost provider of a product/service for a broad target market • Differentiation. Providing a product/service that is unique, that customers value, and that customers are willing to pay a higher price for • Focus. Using a cost leadership or differentiation strategy to target a specific, limited-size market niche According to David (2005), managers may need to do several things to implement strategies effectively: change organizational structures, link performance evaluation and pay to strategies, create an organizational climate supportive of change, and adapt or modify production processes.

time span

The time span for planning refers to short-range versus long-range planning. Short-range, or operational, planning typically covers a period of 1 year or less. The operating budget for a year is one example of a short-range plan. Long-range planning in most organizations encompasses a 5-year cycle; however, a longer time span may be essential for some aspects of planning, such as a major building program. Long-range planning begins with an assessment of the current conditions and projections about changes. Managers must be able to see the connections between actions in one place and consequences in another (Kanter, 1992). Effective long-range planning requires a mission statement of the long-range vision of the organization. The model for long-range planning shown in Figure 9-10 indicates the progression from premising to planning to implementing and reviewing the resulting plan. In the premising phase, the basis for the plan is considered in terms of the mission and opportunities of the organization. The planning phase consists of developing long-range goals and objectives, short-range Premising objectives, and action plans logically leading to implementation of the long-range plan. At this time, a final review and evaluation are necessary and may result in revision.

TQM

The traditional organization model is a pyramid with first-line managers as a base (see Figure 9-2). Inverting the components of the pyramid provides a model for an organization committed to TQM implementation, as shown in Figure 9-3. Placing customers at the top suggests an organization that is focused on the needs and wants of their customers. The model shows that managers must support and coach employees as they are producing menu items and serving customers. Top managers must focus on creating a vision for the future of the foodservice organization by developing a change strategy (Huge & Vasily, 1990). The goal of organizations should be to satisfy customers, exciting them about the food and service. Dessler (2002) indicated that companies are reacting to competitive and technical change by: • Creating smaller organizational units. • Forming cross-functioning teams. • Empowering employees to make decisions. • Reducing the number of organization levels. • Placing an emphasis on vision and values. • Finding ways to take advantage of the Internet.

formal vs acceptance

Up to this point in this text, authority has been defined as the right of the manager to direct others and to take action. Actually, this definition deals only with one view of authority, that is, formal authority. This view of authority has its roots in the writings of Weber (1947), a German sociologist who in the late 1800s and early 1900s influenced the development of management thought. He viewed authority as "legitimate power," which involves the willing and unconditional compliance of subordinates based on their belief that it is legitimate for the manager to give commands and illegitimate for them to refuse to obey. Today, two views of authority are generally recognized in the management literature, formal authority and acceptance authority. Formal authority is considered a top-down theory because it traces the flow of authority from the top to the bottom of the organization (Figure 9-19). As Haimann, Scott, and Conner (1985) indicated, society is the ultimate source of formal authority in the United States because of the constitutional guarantee of private property. Obviously, this statement is directly applicable to public sector institutions, such as public schools, state universities, and hospitals operated by the city, county, state, or federal government, but it applies to organizations in the private sector as well.

vertical

Vertical division of labor is based on the establishment of lines of authority. In addition to establishing authority at various levels of the organization, vertical division of labor facilitates communication flow. The chain of command has clear and distinct lines of authority that need to be established among all positions in the organization (Griffin, 2001). The chain of command has two components: the unity of command and the scalar principle. Unity of command means that the employee reports to only one manager. The scalar principle indicates that a clear and unbroken line of authority extends from the bottom to the top position in the organization. An organization chart (Figure 9-16) for a department of food and nutrition services at a large academic medical center illustrates the vertical division of labor.

social responsibility

Wheelen and Hunger (2008) define social responsibility as an organization's responsibility to society that extends beyond its profit generation. Authors differ, though, on specifically what these responsibilities to society entail. Carroll (1979, 2004) proposed that business organizations have four responsibilities: • Economic. The "must do" responsibility to produce goods and services of value to society and that allow the organization to pay its creditors and stockholders. • Legal. The "have to do" responsibility to follow laws imposed by government. • Ethical. The "should do" responsibility to follow generally held beliefs about behavior in society. • Discretionary. The "might do" responsibility to voluntarily do good for others. According to Carroll, a company's ethical and discretionary responsibilities encompass its social responsibility.

horizontal pg 280

A horizontal division of labor groups employees at similar levels in the organization allowing them to work together more easily. A horizontal structure encourages employees to share ideas across all levels and departments (Van Warner, 1993). Managers and employees are cross-trained to handle multiple jobs, with the entire organization flattened to develop a coaching environment. Cross-training decreases boredom, which could affect the quality of work (Griffin, 2001). The ultimate goal is to create a flexible, more quickly reacting organization that is less distracted by internal problems and bureaucracy. The reengineered organization focuses on the customer, and every person needs to have the goal of providing the customer with quality, value, and service.

team

A team division of labor involves the entire organization being made up of work groups or teams rather than the more formal organizational structure. The teams design and do the organization's work; there is no managerial hierarchy involved.

technical skill

A technical skill involves an understanding of, and proficiency in, a specific kind of activity, particularly one involving methods or techniques. Such skill requires specialized knowledge, analytical ability, and expertise in the use of tools and procedures. Managers need sufficient technical skill to understand and supervise activities in their areas of responsibility. For example, the foodservice manager must understand quantity food production and operation of equipment. Managers must have technical expertise to develop the right questions to ask subordinates and the abilities to evaluate operations, train employees, and respond in crisis situations.

level of management

A relationship exists between the hierarchy of plans and the level of management involved in the planning effort (Figure 9-11). Generally, top managers, who function at the policy-making level of the organization, as shown in Figure 9-11, are responsible for broad, comprehensive planning involving goals and objectives. Middle managers, at the organizational or coordinative level, are responsible for developing policies; first-line managers at the technical or operational level are responsible for developing procedures and methods. The differences in planning responsibility associated with managerial levels help explain the required skills distribution needed by managers. In the discussion of the three managerial skills—technical, human, and conceptual—the importance of conceptual skills at top levels of the organization and, conversely, of technical skills at the lower level were emphasized. The responsibility of these managers for broad versus specific operational plans should make these concepts clear. Because long-range and strategic plans are broad and time oriented, upper levels of managers must have conceptual ability, enabling them to view the overall organization in relation to its environment. Similarly, the first-line manager must be well versed on technical operations because of the responsibility for planning daily production and service activities. To apply these concepts to a foodservice organization, the top management of a large national limited-menu restaurant company is concerned with issues such as identifying sites for new locations, assessing the impact of adding new menu items on costs, revenues, and profits, and projecting capital required for expansion. The manager of one of the units, however, is concerned with scheduling employees, predicting the impact of bad weather on customer traffic, and ordering an adequate amount of frozen yogurt for the next day. As managers move up in the organization, they must develop skills in long-range planning.

CC 3

Adhering to a caring culture checklist increases the odds that employees will work for a longer tenure and former employees will have a positive view of the industry. The best place to start in developing a caring culture is to formalize a mission statement and to be sure that each employee understands and believes in it, thus showing employees how important their performance is to the operation's overall success. When employees understand that the overall success of the operation depends on them, management must then support and guide them to help them reach their workplace goals. This requires a hands-on style of management, a style that facilitates open communication between management and employees. Developing a reward system between employees and management also is part of creating a caring culture. Evidence of how a company's corporate culture is articulated in mission and value state-ments can be found on many corporate Web sites. A foodservice operation in a hospital, for example, might have a mission that states, "To provide excellent food and service that exceeds the expectations of our patients, staff, and guests" Another might have a mission to "To work as a unified team to provide leading edge medical nutrition therapy to patients and high quality, nutritious, and safe food to our customers at a reasonable cost while enhancing their dining experiences." Both show a strong commitment to excellence in their statements, yet each has unique characteristic phrases that help differentiate it from other companies.

CC 2

Although culture starts at the top, to mean anything it must be passed on to employees at all levels. Managers are encouraged to talk about the organization's culture constantly. Some or-ganizations post signs containing the mission statement or their culture principles for all employ-ees to see. Pizza Hut's culture is called "ownership," the feeling that comes from knowing an employee can affect the company's direction through expertise, innovative ideas, and hard work. Developing a good relationship between management and staff by giving rewards for good job performance, being sure the workers receive training they need, and providing consistent feedback are all important components of a caring culture that enables employees to do their jobs better. The caring culture checklist suggests that foodservice operations should: • Have a written mission statement. • Remind employees of the mission statement. • Have a hands-on style of management. • Foster open relationships between management and employees. • Empower hourly employees. • Give incentives for superior performance. • Recognize superior performance. • Give employees an ownership stake in the business.

decisional roles 2

As resource allocator, the manager decides how and to whom the resources of the organization will be distributed. In authorizing important decisions, the manager must be mindful of the needs of the unit while considering priorities of the overall operation. Such decisions often will require compromise. In the negotiator role, the manager participates in a process of give-and-take until a satisfactory compromise is reached. Managers have this responsibility because only they have the requisite information and authority to develop complex contracts with suppliers or less formal negotiations within the organization. For example, the unit manager of a limited-menu restaurant chain might negotiate with the parent company about local advertising.

practice

Although there may be little difference in outcome, in practice they usually differ in four fundamental ways: • While both focus on an organization and what it should do to improve its performance, strategic planning relies more on identifying and resolving issues; long-range planning focuses more on specifying goals and objectives and translating them into work programs. • Strategic planning emphasizes assessment of the environment outside and inside the organization far more than long-range planning. • Strategic planners are more likely than long-range planners to summon forth an idealized version of an organization and ask how it might be achieved. • Strategic planning is more action oriented than long-range planning. Strategic planners usually consider a range of possible futures and focus on the implications of present deci-sions and actions in relation to that range. An example of strategic planning is the introduction of prepackaged salads by McDonald's (Alva, 1988). Long-range planning was predicated upon the desirability of serving salads; stra-tegic planning was involved with overcoming the flaws of salad bars, namely, the difficulty of quality control and the impossibility of service from a drive-through window. During the strategic planning stage, McDonald's tested various ways to present salads for 10 years before launching its prepackaged products. The goal was quality control and satisfactory service of salads for its drive-throughs, which account for more than 50% of total sales. Originally, McDonald's prepackaging consisted of a single-or half-size serving in a transparent plastic dish with a snap-on cover and a separate foil pouch of dressing. After a massive media campaign, prepackaged salads rapidly became popular. The effect of the McDonald's advertising campaign was a public response that induced other limited-menu restaurant operators to follow suit. Burger King, Hardee's, Arby's, KFC, and Wendy's International currently offer prepackaged salads in response to competitive pressures. In 2004, the salad concept was expanded with the introduction of the premium salads.

delegation

Delegation is the process of assigning job activities to specific individuals within the organization. Through this process, authority and responsibility are transferred to lower-level personnel within an organization. In a sense, delegation is the essence of management because management has been defined as getting work done with and through other people. Failure to delegate is a weakness common to many managers. They often do not delegate enough because of the time and effort required to communicate to others. All too frequently, managers believe the saying, "If you want a job done right, do it yourself." Effective delegation, however, has many advantages. It is one of the most important means managers have of developing the potential of their subordinates; also, as subordinates accept additional responsibility, managers are freed for planning and other tasks that require conceptual skill. For effective delegation to occur, the following three elements are important: Specific tasks must be assigned clearly. A manager must communicate the nature of a task to ensure that a subordinate clearly understands it. • Sufficient authority must be granted. The subordinate must be given the power to accomplish the assigned duties. This authority must be understood by the subordinate and also by others whose cooperation is required to complete the task. • Responsibility must be created. A sense of accountability must be engendered in the sub-ordinate to ensure responsible completion of the assigned task. The subordinate must be empowered to make decisions on quality issues to meet customer expectations.

vertical 2

In a centralized organization, most decisions are made at the top, and lower-level managers have limited discretion in decision making. The degree of centralization/decentralization is re-lated to the number of decisions made at lower levels of the organization, the importance of those decisions, and the amount of checking required for decision making by lower-level managers. The degree of decentralization varies widely in large organizations. In some organizations, a high degree of decentralization may exist in major functions, but the auxiliary functions of purchasing, accounting, or personnel may be centralized. In a large hospital, for example, the director of food and nutrition services may have authority over production and service functions but limited authority for purchasing because a purchasing department has procurement responsibility for the entire hospital.

depart 2

In a small delicatessen, for example, a husband and wife may informally share the tasks of preparing sandwiches, salads, and drinks; serving customers; collecting money; wiping tables; washing dishes and utensils; and performing other maintenance duties. They will probably find that each of them will take on the principal responsibility for certain tasks; however, as the business grows, they may need to hire part-time workers to assist at peak periods. These workers will probably be assigned specific duties rather than be responsible for the wide range of duties performed by the husband-wife team. Thus, jobs are created around specialized tasks. This small business could eventually be the basis for development of a large multiunit national chain of delicatessens throughout the United States. Additional levels of management would be needed, highly specialized jobs created, and formalized relationships required. At the corporate level, departments focusing on specific functions, such as marketing, procurement, and finance, would be created. This illustration is an example of the development of an organization into jobs, levels of management, divisions, and departments. Departments are commonly organized by function, product, geography, customer, process, equipment, or time. As indicated earlier, the type and size of the organization are key factors influencing the form an organization structure will take.

traditional organization

Kast and Rosenzweig (1985) stated that the traditional organization frequently is defined in terms of the following: • Organization chart and job descriptions or position guides. Pattern of formal relation-ships and duties. Differentiation or departmentalization. Assignment of various activities or tasks to different units or people of the organization • Integration. Coordination of separate activities or tasks • Delegation of authority. Power, status, and hierarchical relationships within the organization • Administrative systems. Guidance of activities and relationships of people in the organization through planned and formalized policies, procedures, and controls One of the primary reasons for organizing in the traditional organization is to establish lines of authority, which create order. Without delineation of authority, there may be chaos, in which everyone is telling everyone else what to do.

authority

One important difference between line and staff is authority (Griffin, 2001). Line authority is referred to as formal authority created by the organizational hierarchy. Staff authority, however, is based on expertise in specialized activities. Generally, staff personnel provide expert advice and counsel to line managers but lack the right to command them, with two exceptions. First, staff managers exercise line authority over employees in their own departments; second, staff may have functional authority over the line in restricted areas of activity. This functional authority is delegated to an activity and gives managers performing the activity the right to command. Authority granted in this manner, however, is confined to the specialized area to which it was delegated. The quality control manager, for example, may have functional authority over the work of supervisors in other departments. If inspectors find a product quality problem, they may require the supervisor to suspend production until the problem is corrected. This example applies directly to a commissary foodservice operation. The microbiologist on the quality control staff may identify a problem with microbial count in a product being produced in a food factory and require that production be curtailed until the source of contamination is identified.

politics

Politics, the art or science of influencing others or holding control, is not limited to only government environments; it exists in every organization. Politics can facilitate or hinder the operation of an organization. Keiser et al. (2008) described several political techniques that might exist in a foodservice operation: Acquisition of favors that must be repaid. The expectation that when one does a favor for another, one day the favor will be returned • Alliances. When several individuals agree that they will support each other on issues of mutual interest, creating strength in numbers • Conviviality. Using one's friendliness with others for political strength • Constituency building. Getting many individuals in an organization to unite behind a single person to increase that individual's influence related to an issue • Currying favor. Gaining the approval of superiors to provide political advantages in inter-actions with others

economic environment

The economic environment includes the economic system of a country, the level of economic development in a country, the exchange rate of its currency, and the type of trade agreements in place (Dressler, 2002). The economic environment impacts the ease of international commerce between nations. Two diverse economic systems exist; in some countries a mix of both are found. A market economy (often termed capitalist or free market) is one in which supply and demand in the marketplace drive what is produced. A command economy (often termed government controlled) is one in which a central planning agency determines what to produce, when to produce, who can produce, and in what quantities to produce. Commercial laws, banking regulations, and judicial enforcement are much more important in a market economy. The level and rate of economic development vary greatly among countries of the world. In some, such as the United States, the infrastructure for production, transportation, telecommunication, and regulation is well established, which helps promote economic development. However, in many developing countries the lack of infrastructure makes it much more difficult to compete in global trade. The exchange rate of currency, that is, the equivalent value of one country's currency in another country, can impact international business

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The traditional view of the organization is centered on the chain of command, negative sanctions, and economic incentives to motivate workers. In the late 1920s, the famous Hawthorne studies conducted by Western Electric and Harvard University researchers revealed that the factors that influenced worker performance included such things as social and psychological conditions, informal group pressure, participation in decision making, and recognition (Roethlisberger & Dickson, 1956). Since that time, the behavioral sciences have added new dimensions to the understanding of motivation and behavior in the workplace. Today, directing is viewed as being concerned with interpersonal and intergroup relationships. The role of the manager includes influencing these relationships to create cooperation and enlist commitment to organizational goals. The evolution of a better-educated workforce today has significantly increased the use of participative management in organizations. In Chapter 10, these and other aspects of leadership, including factors affecting leadership style, are described in more detail.

functions

The work performed by managers has been described in many ways. One of the more common is to organize managerial work into what has been called "functions." The five management functions are planning, organizing, staffing, directing, and controlling. Managers perform these functions in the process of coordinating activities of the subsystems of the organization.

management practices

There are many management practices that have become commonplace in foodservice operations. Some of the more common are behavior modeling, open-door policy, managing by walking around, and making work "fun." Behavior modeling is sometimes referred to as "do as I do." It means modeling the behavior you expect from your employees. How you treat customers, what food safety practices you follow, how you talk to employees, and so on all can demonstrate to employees the level of quality you expect in your operation. Managers with an open door policy encourage employees to come to their office with ideas, concerns, and questions. The idea behind the concept is that a manager is approachable and has time to listen to employees. Managing by walking around is a practice in which managers walk through their operations on a regular basis talking with employees and supervisors. It provides a way to visually see what is going on in your operation and to visit informally with employees in their work areas. The importance of having "fun" in the workplace was first popularized by Lundin, Paul, and Christensen (2000) in their book Fish! A Remarkable Way to Boost Morale and Improve Results, which describes the daily fun that occurs at Pike Place Fish Market, a fish market in Seattle that has been extremely successful with its joyful atmosphere and great customer service. Collins's (2001) research on characteristics of "great" companies identified "having fun" as one of the important characteristics of such successful companies.

product and service

Under departmentalization by a product or a service, all activities required in producing and marketing them are usually under the direction of a single manager. Product departmentalization allows workers to identify with the particular product and encourages expansion, improvement, and diversification. Duplication of functions may be a problem, however, because each division or department may be involved in marketing, production, and so forth. This pattern of departmentalization is not common in the foodservice industry, except perhaps in large conglomerate corporations.