Exam 2

Short range vs. Long Range Strategic Plans

Short range-1 year or less Long range-usually 5-year cycle 1. Assess current condition and projections for change 2. Look at mission & opportunities of the organization 3. Develop long and short term objectives and action plans 4. Use action plans, review & evaluate *Long range and strategic plans provide the framework to build detailed programming and operational planning upon How would you go about developing

Difference between single use and standing plans

Single-use—one time, not repeated -Specific objectives -Ex: design of new buildings, monotony breakers (like doing something fun for V-day), catered events Standing—policies, procedures, methods and rules -become habits over time -ensure uniformity -resistance to change

QWL

how work is organized by the manager and how jobs are designed Satisfaction a person develops for his or her career, allowing them to enhance their personal lives through their work and work environment. -decisions made at lowest level -team approach -develop employee potential -quality control -safety and health of employees -feedback from employees and customers -problem solving in teams but responsibility shared by all in the organization

Identify and define four methods of group decision making.

1) Interacting: decision making group in which they discuss, argue and agree upon the best alternative→ creates new ideas and understanding(positive) 2) Delphi: panel of experts are filling out questionnaire for investigator to make decision→members who chose uncommon answers are required to explain themselves→ Time consuming and expensive(Negative) 3) Nominal: the manager presents the problem to group members and have everyone write down a solution then presenting their ideas→ everyone then votes on best idea which can either be rejected or accepted by the manager 4) Focus: 10-20 people brought together to examine motivation behind human behavior Ex: corporations use focus groups of customers to learn about why they do or don't make certain decisions→ changing industries based on what the customer has to say

6 Coordination activities/structures used in organizations

1. Horizontal interactions 2. Policies, procedures and rules 3. Standards 4. Communications 5. Committees-ongoing group of people working on the issue 6. Task forces-work on a current issue that is not expected to last into the future

Draw a diagram of the decision-making process/model. What are the steps in the process?

1. Recognizing and defining 2. Identifying alternatives 3. Evaluate 4. Select the best option 5. Implementing 6. Follow-up evaluation

Define a Business Plan

A formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals.

Explain how the type of market analysis discussed in question 7 relates to attribute mapping. What are each of the groupings of attributes? Describe and be able to give an example for each location on the attribute table we discussed in lab.

Attribute mapping: "...discover a bundle of features that your customers perceive to be worth a lot more than the price you are going to extract from them, as well as a lot more than the competitors are offering." You must use the market analysis to grasp the essence of how customers make trade-offs and use this knowledge to influence product and service designs.

What generational differences does the chapter mention in regards to use of technology and SNS?

College students entering the workforce today are part of a generation that grew up with technology, and are much more familiar with social media such as Twitter, and Facebook. People under 30 expect to have constant communication with friends or coworkers, and waiting for an answer isn't something they consider normal.

When doing market research what types of information do you need to find out about your customers and your competitors?

Customers: What are their likes, dislikes, and expectations? Competitors: How do they advertise? What are their pricing strategies?

Give an example of the difference between efficiency and effectiveness.

Efficiency= doing things right Effectiveness= doing the right things • Managerial efficiency is the ability to get things done correctly, meaning getting the most output from the least amount of input. Foodservice managers who can reduce the cost of food products to attain goals are acting efficiently. • Effectiveness 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 • Ex: A foodservice manager who plans a menu featuring grilled orange roughy when a customer prefers fish and chips may be performing efficiently but not effectively

Explain the need for a manager in a highly formalized organization vs. an informal organization.

Formal structure is concerned with a relationship between authority and subordinate. Informal develop around social or project groups. The lines of authority are quite clear in a formal organization, but become blurry when talking about an informal structure. A key thing to remember if you are in an informal leadership role, because you have no direct authority your ability to lead is reliant on your ability to gain the respect and alliance of others. People aware of the informal leadership at work in their business can use this to their advantage to accomplish more.

General vs. Functional Managers

General—responsible for all activities of a unit. In a restaurant, everything that happens on a specific shift is the responsibility of the general manager on duty Functional—responsible for only one area of organizational activity, such as the bar. If the bartender is absent, the bar manager must plan for coverage. If the bar manager is absent the general manager would be responsible for covering the position or appointing someone to take the manager's place

Characteristics of a positive corporate culture?

Integrity, bottom-up style of management, having fun, community involvement, emphasis on physical health and fitness

Describe how you would use SWOT analysis to develop your business strategy?

Internal: Strengths: the unique resources that the company can provide Weaknesses: aspects that limit the company's ability to achieve its goals *includes current structure and culture of the organization External: Opportunities: where competitive advantage exists or where new markets could be developed. Threats- could potentially harm, or prevent accomplishment of objectives *includes the societal, political, economic, technological, and competitive forces impacting the company Focus on factors related to market share, customer loyalty, customer satisfaction, and previous marketing success.

Roles of managers within an organization

Interpersonal Roles—focus on relationships and includes figurehead, leader, and liaison roles -figurehead is the representational responsibility of management, ex: a manager's role as head of the organization, 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 -leader is hiring/training to creating a motivating environment for staff -liaison is dealing with people both inside and outside of the organization. Managers must relate effectively to peers in other departments of the organization and to suppliers and clients-the liaison role is important in building a managers' information system Informational Roles—focus on communication and includes monitor, disseminator, and spokesperson roles Decisional Roles—help determine new courses of action and unit strategies and include entrepreneur, disturbance handler, resource allocator, and negotiator roles

Hierarchy of Plans

Mission Goals & Objectives Policies Procedures Methods (more specific)

Identify and explain the two types of decisions as discussed in class.

Programmed— • Routine/Repetitive • Limited judgement • Policies and procedures • Simple • Short term • Lower level managers Non-Programmed— • Unstructured • Unique • Little or no precedent • More challenging • Requires creativity • Wisdom & experience • Upper management levels

What is the psychographic checklist for customers?

Psychographic checklist: liberal, conservative, conformist, environmentally friendly, socially conscious, growth-oriented, fun-loving, cutting edge, trend follower, fashion-forward, family-oriented, (how many family members per household, what hobbies/sports do your customers enjoy, what is their lifestyle, what entertainment to they like, what publications do they subscribe to, how do they spend their free time?) Corporate psychographic checklist: market leader, innovative or cutting edge, liberal, conservative, environmentally-friendly, employee/family friendly, fast growing/adopting new ideas, stable/set in their ways, (what growth stage is company in, type of workforce employed, who in business are you selling to, what department do they represent, are there common characteristics of a certain department/management level that you can identify, what is company's culture, management style, trade associations they belong to, publications they subscribe to.

Identify what are the factors typically examined when completing market analysis. How are these factors usually ranked?

Rank the order of importance (Very important, somewhat important, not important) of the following criteria of your target market: -price -quality -brand name recognition -customer service -broad array of services -friendly staff attitude -discounts and sales and coupons -attractiveness of packaging -convenience of store location -store appearance -convenience of product/service use -guarantees/warranties -technical assistance -flexible payment terms

Describe SWOT analysis and what applications it has in foodservice today? Remember that The Power of Vision video by Joel Barker will also be on Exam II.

SWOT analysis is the analysis of a company'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. -Important task in strategic planning -Being aware of changes/trends in the industry -Viewing trends challenges foodservice managers to review their menus & operations to find ways to maintain the operation's competitive advantage pg.292

Which kinds of demographic information do you need to focus on obtaining for your target customers?

Target customers: age, gender, profession, education level, household income level, marital status, geographic location Corporate customers: number of employees, location of headquarters, types of products and services they provide, annual revenue, number/size/location of branches, year founded

Traditional vs. New Organization

Traditional organization—lines of authority (which create order) are established o Formal duties, assignment of various activites/tasks to different units or people of the organization, coordination of separate tasks, hierarchial relationships within the organization o One of the primary reasons for organizing in the traditional organization is to establish lines of authority, to create order. New organization—employers are challenged to improve the quality of work life and to develop a corporate, or organizational culture o Employees, not just managers, are involved in decision making, a sense of belonging to the organization is created for all members, a shift occurred from use of only downward authority and input, greater recognition is given to importance of individual employees, job satisfaction and sense of accomplishment is more valued, managerial levels is reduced, emphasis on vision and values

Identify the four directions of internal communication within an organization and give an example of each.

Within the organization, managers must provide for communication in four distinct directions: downward, upward, horizontal, and diagonal. Downward- individuals at higher levels of the organization communicate downward to those at lower levels. a. The most common forms of communication are job instructions, policy statements, procedure manuals, and official publications of the organization. b. Middle-and lower-level managers are usually contacted by email, written memos, or with some other official directive. c. External means (radio, TV, and newspaper) may be used to communicate not only with employees but with the general public as well. Upward- An effective organization needs open channels of upward communication as much as downward. It is important as it provides employees with an opportunity to have a say in what happens in the organization. It also provides management to receive vital information from lower levels in the organization. d. Suggestion boxes, special meetings, and grievance procedures are devices Horizontal- Enhances organizational effectiveness. Within the foodservice operation, effective horizontal communication between production and service is critical to ensure that quality food is available at the right time in the right place. e. Department head meetings Diagonal- is a way of minimizing time and effort expended in organizations. Having reports and other information flow directly between departments or units that have a diagonal placement in the organization may result in more effective flow of information. f. Direction communication- communication can be either informal or formal.

What are the benefits of planning?

Without planning.. • Uncertainty & confusion of where the organization is going • Organization is driven by crisis • Units of the organization operate with little coordination • No agreement or priorities • Turf fighting exists

Dimension of planning: Level of Management

a. Match between hierarchy of plans and level of management b. Top Mgmt--Broad Comprehensive plans c. Middle Mgmt--Organizing or Coordinate d. First Line Mgmt--Technical/Operational

Dimension of Planning: Flexibility

a. Short range operational plans are considered fixed b. Long range or strategic plans are by nature more flexible

Dimension of planning: Time Span

a. Short range--1 year or less b. Long range--usually 5 year cycle 1. Assess current condition and projections for change 2. Look at mission and opportunities of the organization 3. Develop long and short term objectives and action plans 4. Use action plans, review and evaluate c. Long range and strategic plans provide the framework to build detailed programming and operational planning upon d. Strategic planning--continuous process, systematic, making decisions about intended future outcomes, how they are accomplished and how success is measured and evaluated *Strategy-a pattern of purposes and policies defining the company and its business *Underlying logic/thread that holds the business together *Determines structure *Want a to maintain a competitive edge • Strategic vs. Long range planning ♣ Strategic • Identify and resolve issues • Focus on internal and external environment • Idealized version of organization and how to achieve it • More action oriented ♣ Long Range • Specifying goals and objectives translating them to work programs • Strategic Planning ♣ Generally broken into 3 segments • Immediate future <2 yrs • Short range 2-5 yrs • Long range 5 yrs and beyond ♣ Ensure focus on most important issues ♣ Develops consensus ♣ Assists in resource allocation ♣ Serves as a communication tool ♣ Maximized chance for success • Developing a strategic plan ♣ Develop and affirm mission statement ♣ Conduct environmental assessment ♣ Create vision statement ♣ Establish critical issues ♣ Develop goals and strategies ♣ Establish priorities ♣ Develop tasks, accountabilities and time frames • Strategic planning: Environmental Assessment ♣ External ♣ Environmental forces ♣ Legislation and regulation ♣ Economy ♣ Demographics ♣ Social ♣ Competitors ♣ Internal ♣ Customer satisfaction ♣ Sales volume ♣ SWOT Analysis---strengths, weaknesses, opportunities, threats • Strategies ♣ When developing strategies answer these questions: • What might we do (in terms of market opportunity)? • What can we do (based on resources & abilities)? • What do we want to do (based on personal values & aspirations)? • What should we do (based on obligations)? • Elements of Successful Strategic Planning Processes ♣ Utilizes a systematic & organized process ♣ Based on strong, meaningful mission statements. ♣ Collect valid, reliable data ♣ Allows for creativity ♣ Involves many people ♣ Establishes priorities ♣ Delineates accountabilities ♣ Establishes monitoring and evaluation methods • Communicating the Strategic Plan ♣ Identify audiences • Primary • Secondary ♣ Develop messages and communications channels ♣ Implement communication plan ♣ Evaluate communication plan

Dimension of planning: Repetitiveness

a. Standing--policies, procedures, methods and rules a. Become habits over time b. Ensure uniformity c. Resistance to change b. Single use--one time, not repeated a. Specific objectives Examples: design of new buildings, monotony breakers (like doing something fun for v-day), catered events

Define several characteristics of effective goals & objectives.

• Specific- states behavior and target date • Measurable- can be seen, heard, touched, or statistically proven • Ambitious- challenge to better performance • Jointly decided upon- employee and supervisor together • Followed by feedback- give positive, constructive feedback • Relevant- important to employee, department and organization

4 Dimensions upon which plans can be differentiated

• (1) Repetitiveness • (2) Time Span • (3) Level of Management • (4) Flexibility

Describe three condition which decision can be made

• Continuum of certainty to uncertainty • Risk increases as we move from certainty to uncertainty • Relates to knowledge & time frame

Explain the following decision making techniques:

• Decision trees-technique for assessing consequences of a sequence of decisions with reference to a particular problem • Cost‐effectiveness-Technique that provides a comparison of alternative courses of action in terms of their cost and effectiveness in attaining a specific objective • PERT/CPM - Program Evaluation and Review Technique/Critical Path Method help managers to plan the timing of projects involving sequential activities • Linear Programming-Decision making with certainty • Queuing- cost of waiting in lines is balanced against the cost of expanding facilities • Artificial Intelligence

What factors need to be considered when deciding between individual and group decision? Identify the advantage and disadvantages of group decisions. What are groupthink and risky shift?

• Factors to consider o Complexity, importance, time, amount of information needed, degree of buy-in, typical decision making style, groups have more information and knowledge available, groups take more time, group norms and member roles may deter process, groupthink- agreement is key, risky shift- too much risk o Advantages and disadvantages Groupthink: what's important is what's agreed upon due to the desire for harmony, which is bad Risky Shift: the group collectively agrees on a course of action that is more extreme than they would've made if asked individually because they feel as if there are no personal ramifications

5 Techniques to improve communication

• Feedback • Many channels • Face to face • Sensitivity to receiver • Awareness of symbolic meaning • Careful timing • Simple language • Repetition/Reinforce

List 6 different ways to departmentalize work. Describe when each method may be more appropriate or typically used.

• Functional, occurs when organization units are defined by nature of the work (function—organizational functions like finance and production) • Product and service—all activities required in producing and marketing them usually under direction of a single manager, also allows workers to identify with the particular product and encourages expansion/involvement/diversification • Geography—permits the use of local personnel and may help create customer goodwill and a responsiveness to local customers o Ex: several of the large contract foodservice companies are divided into several geographic regions such as East, Midwest • Customer—contract foodservice that has divisions for schools, colleges, and healthcare is departmentalized by type of customer o Permits the wholesaler to serve the specialized needs of both the grocer and the foodservice operator • Line and Staff—line position is in the direct chain of command that is responsible for the achievement of an organization in the direct chain of command that's responsible for the achievement of the organizations goals o Staff position intended to provide expertise, advice, and support for line positions • Authority—line authority is referred to as formal authority created by the organizational hierarchy. Staff authority is based on expertise in specialized activities. Ex: quality control manger may have a functional 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

What impact did the development of the Mosaic browser have on the use of the internet? Why?

• It enabled people to not only view text on their computers via the internet, but to also view graphics. • The mosaic browser was revolutionary and corporate America took this opportunity to create online business portals where they could sell their products and services.

What is Span of Management or Span of Control? How do you determine which span of management is most appropriate for your organization?

• Number of employees that can be effectively supervised by one manager • Organizational policies, competence of staff, objective standards, nature of the work, distribution of workforce pg. 283 • To determine the span of management the answer is situational. AKA contingency approach

5 Functions of management

• Planning pg. 271 • Organizing pg. 274 • Staffing pg. 275 • Directing pg. 276 • Controlling pg. 277

Management

• Process of integrating resources for accomplishment of objectives. • Primary force that coordinates the activities of subsystems within organizations. • Coordinating work activities so they are completed efficiently and effectively by working with and through other people.

Name the three types/levels of managers and explain their roles.

• Top Managers—make up the 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. o Operate at the policy-making level • Middle Managers—may refer to more than one level in an organization, depending on the complexity of the organization o Primary responsibility is to coordinate activities that implement policies of the organization and to facilitate activities at the technical level. Direct the activities of other managers and sometimes those of functional employees. This level of management is also responsible for facilitating communication between the lower and upper level of the organization, and it functions at the organizational level • First-Line Managers (Supervisors)—generally are responsible for supervising employees, in the foodservice organization these managers are usually called supervisors o 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

Vertical and Horizontal division of labor

• Vertical—based on the establishment of lines of authority. In addition to establishing authority at various levels of the organization it facilitates communication flow o the chain of command has clear and distinct lines of authority that need to be established among all positions in the organization o 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 related to the number of decisions made at lower level of the organization • Horizontal—groups employees at similar levels in the organization allowing them to work together more easily. Encourages employees to share ideas across all levels and departments o Managers and employees are cross-trained to handle multiple jobs with the entire organization flattened to develop a coaching environment o Cross training decreases boredom, which could affect quality of work

List and explain the barriers to communication identified by Sayles & Strauss and Chaney & Martin in their research.

•-hearing an expected message •-ignoring conflicting information •-differing perceptions •-evaluating the source •-interpreting words differently •-ignoring nonverbal cues •-becoming emotional •-cultural differences •-linguistics