RDN Exam Materials (Domain III - Management of Food and Nutrition Programs and Services)

Financial Management Financial Monitoring: Turnover ratios

(asset management) - chows current effectiveness of inventory control: are you efficiently using the assets to produce more income? turnover rate = cost of sales (food cost) / avg inventory cost measures how often an inventory is consumed and replenished. turnover rate of 2-4x/month is often desirable. High ratios = limited inventory is being kept Low ratios = large amounts of $ are tied up in stock (III 22 for example calculation)

Financial Management Financial Monitoring: Daily food cost report, food cost %age

(food cost percentage) - tells you what % income was spent on food sold food cost % = daily food cost / daily income ex) cafeteria income on Tuesday was $640. Food cost for the day was $265. What was the food cost percentage? $265/$640 = 41.4% of income was spent on food sold

Functions of Management: C) Directing: Management Theories Human Relations (behavioral) Theory

(tries to compensate for traditional theory criticisms) 1) uses behavioral sciences, workers exist in social groups 2) employee participation in decision-making is essential 3) improves morale and productivity 4) Theory Z (Ouchi) - the value of the company is the people a. everyone who will be affected by a decision is involved in making the decision (consensus decision making)

Functions of Management: C) Directing: Likert - management of conflict

1) 4 basic systems of conflict: a. exploitative, autocratic = job-centered b. benevolent, autocratic = job-centered c. consultative = employee-centered d. participative = employee-centered 2) participative - most effective; employees work under general supervision, the boss delegated authority, and is employee-oriented; decision-making spread evenly through organization; full involvement of employees in setting goals, making job-related decisions Peter Principle - promote someone to a level of incompetence (in a hierarchy)

Functions of Management: B) Organizing and Staffing - FTEs (III 3 for calculation examples)

1) absolute FTE = min number of employees needed to staff the facility; counts PRODUCTIVE HOURS (hours actually worked) 2) adjusted FTE = takes into account benefit days and days off FTE/day = labor hours worked in day / 8 hrs FTE/week = labor hours worked in week / 40hr FTE / yr = labor hours worked in yr / 2080 labor hours worked includes full time and part time workers

Managerial Characteristics Roles: Pareto Analysis

Illustrates the relative importance of problems - most effects have relatively few causes 1) work on the tallest bar or problem that occurs most frequently; connecting the "vital few" problems will have the greatest impact on quality 2) 80-20 rule: 80% of a given outcome results from 20% of an input (80% of sales come from 20% of customers)

Financial Management Budget Development: Methods to est. line items within budgets: 1) Traditional

Incremental, baseline - uses existing budget as a base and projects changes for the ensuing year in relation to the current budget a. usually begins with this year's expenses plus an inflation factor b. control oriented c. prepared at one level of sales or revenue

Financial Management Financial Monitoring: Meals per labor hour

= # meals produced / # hours worked

Managerial Characteristics Traits: Power (III 13)

Ability to exert influence (5 sources of power): 1) reward power 2) coercive power - neg side of reward power; ability to punish 3) position (legitimate) power - subordinate knows influencer has the right to exert power because of position 4) expert power - person has expertise that subordinate does not 5) referent power (personality, charisma) - how well you are liked Successful managers are sensitive to the source of their power and are ware of the risks and benefits of using each kind

Functions of Management: B) Organizing and Staffing - relief workers

About 1.55 employees are needed to cover 1 full-time position. Full tiem employees are available an average of 236 days/yr because of days off and benefit days (129 days) To determine # employees needed, x # full time positions by 0.55 to get # of relief workers needed to cover 365 days/yr ex) if you have 20 full time positions: 20 x 0.55 = 11 relief employees 20 + 11 = 31 total employees needed OR 20 x 1.55 = 31 HOSPITAL - need 7 day coverage, employees work 5 with 2 days off, relief worker covers 2 days off can also work a 5 day week; so, a relief worker can cover the "days off" of 2.5 full-time workers each week; 5/2 = 2.5

Managerial Characteristics Traits: Influence

Action that will cause a change in behavior or attitude of another

Functions of Management: B) Organizing and Staffing - determining staffing needs; staffing patterns

Acute care conventional = 17 min/meal or 3.5 meals per labor hour Extended care facilities = 5 meals/lh Cafeteria = 5.5 meals/lh School foodservice = 13-15 meals/lh - these reflect averages and are only used as guides - meal equivalent = measure of productivity defined as the amount of all food sales divided by the average cost of a typical (prototype) meal

Financial Management Budget Development: Methods to est. line items within budgets: 4) Flexible Budget

Adjusted to various levels of operation with VARYING levels of sales or revenues throughout the year (changes in pt or customer count) a. closing a floor for renovation b. gives dollar range for low to high levels of predicted activity

Human Resources Employment Laws & Regulations Workman's Compensation

Administered by STATE a. insurance covering employer's liability for the costs of any accident incurred by an employee in connection with their job b. must furnish a safe place to work, competent supervision, instructions

Financial Management Budget Development: Components: 4) Sunk costs

Already incurred and cannot be recouped by a new decision or alternative; cost involved in studying merits of a new computer

Financial Management Budget Development: Components: 5) Differential costs

Amount of increase or decrease in cost when you compare alternative choices; difference in costs between two delivery systems

Quality Management and Improvement Process and implementation Six Sigma

Data driven approach for improving quality by removing defects and their causes. A statistical unit of measurement used to define std deviation. Achieving Six Sigma (6 SD from mean) means there is very little variation in a process. Helps organizations focus on developing and delivering near-perfect products and services If you can determine how many errors occur in a process, you can systematically determine how to eliminate them and get as close to 0 as possible

Financial Management Budget Development: Methods to est. line items within budgets: 5) Performance Budget

Details what is costs to perform an activity (how much to supervise the cafeteria)

Functions of Management: C) Directing: Motivational Theories Maslow's Hierarchy of Needs

Determinants of behavior, motivated by the desire to satisfy specific needs 1) basic needs a. physiological (survival needs) - food, clothing, shelter b. security and safety - insurance, retirement plans, job security 2) higher human needs (motivators) a. social (organized activities) b. self-esteem (job title, praise, rewards, promotions) c. self-realization, self-actualization (realizing your potential growth using creative talents); advanced training, job enrichment 3) when basic needs are met, higher needs become motivators

Quality Management and Improvement Cost Benefit Studies Direct and indirect benefits

Direct: - change in diet or food habits as a result of counseling - change in body functioning d/t altered diet intake - value is determined by measuring the cost of treatment alternatives needed due to ABSENCE of improved food habits Indirect: - saving a physician's time and other resources d/t the prevention or reduction in severity of a disease a. calculate total costs of program b. calculate benefit/cost ratio

Marketing and Public Relations Pricing Strategies Promotions pricing

Done for a short time Sale or special price is done to increase sales during a slow period

Functions of Management: C) Directing: Management by Objectives (MBO)

Drucker 1) type of democratic management that provides control from within 2) establish performance goals WITH employees a. gives higher incentive value b. overall control achieved through self-control by employees c. management stresses accomplishments and results 3) participative leadership

Human Resources Employment Standards: Job Specification

Duties involved, conditions, qualifications (education, experience); written for each job a. used in selection and placement of employees (hiring) b. does NOT have detailed information as to what to do or time involved - personal qualifications for the worker

Human Resources Personnel Information/Compensation: Separation

Either voluntary or involuntary termination of an employee a. an exit interview can help identify personnel-related problems

Functions of Management: C) Directing: Contingency Approach

Fiedler In both highly-favorable and highly-unfavorable situations, a task-oriented leader is more effective (the group is ready to be led) In moderately-favorable situations, a relationship-oriented leader tends to be more effective because cooperation is more successful than task-oriented leadership

Functions of Management: C) Directing: Reciprocal Approaches

Focus on interactions among leaders and their followers rather than on characteristics of the leaders themselves Transactional vs transformational leadership a. transactional = clarifies roles and responsibilities; uses rewards and punishments to achieve goals b. transformational = agents of change; inspire follows to become motivated to work towards organizational goals rather than personal gain; builds on and extends transactional leadership - cultivation of employee acceptance of the group mission

Quality Management and Improvement Process and implementation Audit

Formal study that RETROspectively monitors performance - way to document appropriate care patterns and for identifying areas needing improvement; did performance meet standards?

Marketing and Public Relations Pricing Strategies Selling price: factor pricing method

traditional method, markup method mark-up = difference between the cost and the selling price 100 / food cost % = mark-up factor mark-up factor x raw food cost = selling price "hidden cost" of 10% may be added to food cost to cover unproductive costs (losses in prep, cooking, serving, unavoidable waste) (III 26 for example)

Marketing and Public Relations Pricing Strategies Loss leaders

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

Human Resources Employment Process: Recruiting

Locating the most qualified person for the job a. sources: internal (promotions, transfer, rehire), external (ads, agencies, unions) b. Fair Employment Practice Law (adopted by states) - makes it illegal to ask about a candidate's race, religion, sex, national origin, age, marital status (after hire, can ask). Check with personnel dept regarding restrictions

Functions of Management: C) Directing: Organizational Change Theory

Managers serve as catalysts for change 1) conditions necessary to change (transform) a department a. leader recognizes there is a need to make a change b. leader depicts a future that appeals to the values, needs, and aspirations of followers (leader defines a vision) 2) successful change requires: unfreeze the status quo, change to a new state, refreeze to make the change permanent

Quality Management and Improvement Process and implementation Indicators

Measurement tools that monitor and evaluate important aspects of patient care and management functions - serve as flags to direct attention to specific issues - not intended to be direct measures of quality, but describe events, complications, outcomes 1) Rate-based indicator: comparative rate - thresholds between 1-99% 2) Sentinel event indicator: serious event that requires further investigation - thresholds of either 0 or 100% (never or always)

Human Resources Employment Standards: Job Enlargement

More similar tasks to alleviate boredom - higher number of tasks

Financial Management Financial Monitoring: Profit margin

Most commonly used assessment of overall financial efficiency 1) reflects portion of sales volume remaining after paying all expenses net profit / sales dollars 2) revenue includes income from patients, cafeteria sales, and catering sales 3) cost of sales = cost of raw food and beverage sold 4) gross profit = profit shown after deducting raw food and beverage (cost of sales) from sales (revenue) 5) net profit = profit after ALL expenses have been deducted from sales (see III 23 for example)

Functions of Management: B) Organizing and Staffing - work simplification procedures

Purpose - eliminate unnecessary parts of job and those those that add no value - Looks at SMALLEST parts of job (hand movements, steps taken) - increases productivity and decreases costs ex: - motion economy: reduce motions and time required - occurrence sampling: observe ransom samples to determine % time working or idle - flow diagram: scale drawing showing path of a worker during a process - operation charts: movement of hands, reduces transportation and re-plan work areas - process charts: steps involved in process using symbols - cross charts: efficiency of equipment placement, studies work motions, shows number of movements between pieces of equipment

Managerial Characteristics Roles: Queue

Queuing Theory 1) develops the relationships involved in waiting in line 2) used in analyzing flow of customers in a cafeteria - balance cost of waiting lines with the cost of preventing waiting lines through increased service

Human Resources Employment Standards: Job Description

Reflects required skills and responsibilities - matches applicants to job, orientation and training, employee appraisal

Managerial Characteristics Conflict Resolution Methods: Dominance and Suppression

Repress conflict rather than settle it; creates a win-lose situation a. forcing: "My way or highway" b. smoothing: tried to talk one side into giving in c. avoidance: manager avoids taking a position; no one is satisfied d. resolve conflict by majority vote - can be effective if members regard the procedure as fair

Functions of Management: C) Directing: Contingency and situational leadership

Responds to external environment methods that are highly effective in one situation may not work in another (results differ because situations differ) management must identify which techniques will work in a particular situation at a particular time

Marketing and Public Relations Marketing Analysis Social vs business marketing

Social = use of marketing principles to advance a cause, idea, or behavior Business = filling customer's needs or desires

Academy of Nutrition and Dietetics: SOP

Standards of Practice in nutrition care: describes in general terms a competent level of nutrition care practice as shown by the NCP (problem solving method used to think critically and make decisions to provide safe, effective, high-quality nutrition care) 1) standards include DM care, oncology nutrition care, behavioral health care, nutrition support, management of food and nutrition systems, sports dietetics, and education of dietetics practitioners, pediatric nutrition, and nephrology care

Academy of Nutrition and Dietetics: SOPP

Standards of Professional Performance: describes a competent level of behavior in the professional role (6 domains of professionalism) - provision of services - application of research - communication and application of knowledge - utilization and management of resources - quality in practice - competency and accountability

Human Resources Employment Standards: Job Analysis

Studies all aspects of job, done by worker and their supervisor - conducted first to collect info for job description

Human Resources Personnel Information/Compensation: Promotion

To a job involving higher pay, status, performance needs a. can serve as an incentive for improved performance b. 2 basic criteria: merit, seniority c. may cause resentment in those bypassed

Human Resources Personnel Information/Compensation: Transfer

To another job at approximately the same level with basically the same pay, status, performance requirements a. permits placement of employees in jobs where need for their services is greatest, or in jobs they prefer

Functions of Management: C) Directing: communication

Transmitting and receiving information to bring about a desired action - feedback (response) tells you whether or not the correct message has been received - barriers: words not mutually understood, poor voice quality, illegible handwriting - listening skills are essential

Functions of Management: B) Organizing and Staffing - work schedules

Typically include 8 hr work day, 30 min lunch break, and one or two 15-minute work breaks 1) master - serves as overall plan; days on and off, vacations; basis for developing weekly schedules 2) shift - staffing patterns for a particular operation; positions and hours worked, # of days worked per week, relief assignments 3) production schedule - time sequencing of events required to produce a meal; employee assignments and menu items; quantity to prepare and the timing (what to do when)

Human Resources Employment Standards: Job Enrichment

Upgrades job by adding motivating factors a. increases # of tasks and control the employee has over the job b. Maslow and Herzberg motivator (advanced training) - given more decision-making power

Financial Management Financial Monitoring: Financial ratios

Use of formulas to analyze an organization's financial position a. formulas use data from financial statements: 1) compares org with similar ones 2) compares ratios w/those projected or with preceding ratios b. liquidity ratios - assess ability to meet short term debt

Functions of Management: B) Organizing and Staffing - labor turnover rate

Uses # of NEW employees at end of period (# employees terminated and replaced / total positions in department) x 100 ex: at the end of a 6 month period, there were 80 positions in a department. During that time, 18 were terminated and replaced. What is the labor turnover rate? 18/80 = 22.5% turnover

Quality Management and Improvement Process and implementation Lean

Using less human effort, less space, less capital, and less time to make products exactly as the customer wants with few defects ex) use videotaping and stopwatches to capture work being done. Reorganize workflow, duties, and practices. Can reduce food costs, increase efficiency and customer satisfaction

Financial Management Budget Development: Components: 2) Direct, variable, flexible costs

Varies directly with changes in sales (revenue): directly involved in service to customer a. china, silver, food, uniforms, laundry, repairs, benefits

Functions of Management: C) Directing: Motivational Theories Hawthorne Studies

Western Electric - Elton Mayo 1) If you involve people in the process, they become more productive a. due to: employees were given special attention, were involved in an interesting experience, and were well-treated by supervisors b. work breaks increased productivity 2) placebo effect (special attention improves behavior)

Managerial Characteristics Roles: Cause and Effect (fish) diagram

What influences the outcome? 1) focuses on different causes of a problem; categorizes related factors to make their influence more observable 2) what are the causes of the effects (results) you are seeking? 3) series of connected arrows, each representing an important factor 4) technique to increase worker involvement in decision-making (III 11)

Human Resources Employment Standards: Job Breakdown

What to do and how to do it no time limits

Marketing and Public Relations Pricing Strategies Breakeven point (BE)

Where revenue will exactly cover fixed and variable costs BE = fixed costs / (selling price - variable cost)

Human Resources Unionization: Rights and regulations provided by law (SEE III 17 for explanations)

a) protection against unfair union practices b) "" "" employer practices c) employee rights union steward - an employee who represents fellow employees as the union representative (no extra pay for serving)

Human Resources Employment Laws & Regulations Family and Medical Leave Act 1993

a. applied to public agencies and private agencies employing >50 workers b. up to 12 workweeks of unpaid, job-protected leave during any 12 months for: birth or placement of a child for adoption; to care for an immediate family member, or medical leave for a serious health condition c. when you return you are guaranteed an equal job, but NOT the same job

Human Resources Employment Laws & Regulations Taft-Hartley Labor Act, AKA Labor Management Relations Act 1947

a. balanced powers of labor and management; amended Wagner Act b. outlawed the closed shop; limited union shop to one year c. govt can obtain injunction against strikes that endanger national health or safety d. specified unfair labor practices of the union - pro-management

Human Resources Employment Laws & Regulations Landrum-Griffin, AKA Labor Management Reporting and Disclosure Act 1959

a. bill of rights for union members; regulates internal union affairs

Human Resources Unionization: Membership

a. check-off is the deduction of union dues from pay b. union shop - must join union after being hired c. open shop - can join union or not d. closed shop - must be a member of union first before hiring (union and closed shops are illegal in public employment) e. agency shop - all workers must pay agency fee, but not required to join union f. right to work laws - illegal to fire an employee who refuses to join a union even if contract has a union shop clause

Managerial Characteristics Conflict Resolution Methods: Integrative Problem Solving

a. conflict is converted into a joint problem solving situation b. parties openly try to find a solution they can all accept

Human Resources Employment Laws & Regulations Americans with Disabilities Act 1992

a. covers employers with 15 or more employees b. must provide "reasonable accommodations" - remove barriers, have wide isles (36") and doors (32"), install ramps, lower shelves and phones, rearrange tables and chairs, flashing alarm lights c. to comply, job descriptions must specify "essential" job functions

Marketing and Public Relations Pricing Strategies Selling price: prime cost method

a. determine prime cost: (raw food cost + direct labor cost) b. determine price factor (mark-up) 1) add desired food cost % to % direct labor cost 2) divide total into 100 c. selling price = prime cost x price factor (mark-up factor) (III 27 for example)

Functions of Management: B) Organizing and Staffing - productivity management

a. evaluation tool, measuring efficiency and providing data to enhance decision-making regarding resource allocation b. productivity = efficiency of input --> output, expressed in ratios - inputs: labor, money, materials, facilities, energy - outputs: meals, patient days, consults to increase productivity, decrease input and increase output meals per labor hour = # meals produced / #hrs worked ex: if 20 FTEs made 27-- meals in one 40hr work week, how many meals were produced per labor hour? 20 FTE x 40 hrs = 800 hrs 2700 meals/800 hrs = 3.38 meals per labor hour

Human Resources Employment Laws & Regulations Affordable Care Act 2010

a. expanded healthcare coverage available to employees and their families

Human Resources Employment Laws & Regulations National Labor Regulations Act AKA Wagner Act - 1935

a. guaranteed right to organize and join labor unions b. gave union the right to be the bargaining agent c. created the National Labor Relations Board NLRB, administers laws - pro-laborer

Managerial Characteristics Traits: Managerial attributes that distinguish successful organizations from others

a. have a bias for action - FIX IT, DO IT, SOLVE IT b. be close to your customers - learn from them c. autonomy - be a risk-taker; try new ways to get the job done (best managers do this) d. productivity through people; treat with respect and dignity e. management should be hands on and value driven: explain your value system to your employees

Functions of Management: C) Directing: Management Theories Systems approach: characteristics of open systems

a. interdependency of parts b. integration c. synergy d. dynamic equilibrium e. equifinality f. permeability of boundaries g. interface (III 9)

Managerial Characteristics Conflict Resolution Methods: Compromise

a. managers try to resolve conflict by finding middle ground b. each party receives some of its objectives and sacrifices others c. may be weak method - does not usually lead to a solution that can best help the organization d. solution reached can simply be one that both parties can live with

Human Resources Employment Laws & Regulations Fair Labor Standards Act 1938

a. may be called min wage or wage hour law; set min wage b. for overtime work, must pay time and a half c. min wage - listed at Bureau of Labor Standards d. amendment - Equal Pay Act (1963) - prohibits discrimination on basis of sex e. donated (tolerated) time - compensable - must be paid f. child labor laws regulate work hours and duties of children 1) in food service, students can handle and clean cutters and slicers only if enrolled in food-related programs g. occupations EXEMPT from min wage and overtime requirements: executive, administrative, professional, outside salespersons

Human Resources Employment Laws & Regulations Equal Employment Opportunity Act 1972

a. prevents discrimination in employment based on race, color, religion, sex, national origin, political affiliation, overseen by EEOC

Human Resources Employment Laws & Regulations Civil Rights Act 1964

a. prevents discrimination on basis of race, color, national origin; prohibits sexual harassment b. overseen by the EEOC (equal employment opportunity commission)

Human Resources Personnel Information/Compensation: Compensation

a. salary = earning of managerial and professional personnel b. wages = hourly earnings of employees covered by the Fair Labor Standards Act

Human Resources Personnel Information/Compensation: Benefits

a. statutory = payment REQUIRED by LAW to ensure income in event of unemployment, injury, or death (must be provided) b. compensatory = benefits or pay for time not worked c. supplementary = life and health insurance

Managerial Characteristics Roles: Decision Making/Problem Solving

a. steps: recognize and analyze problem; determine workable solutions; gather data; choose solutions; take action; follow-up the action b. nominal group technique - Delbecq (generate innovative, creative ideas) 1) more structured and controlled than ordinary brainstorming group 2) has authoritative leader, controlled interactions, closely-focused goals, rigid enforced procedures, responses strictly controlled by leader 3) often sit in horseshoe formation; silent generation of ideas by participants 4) round robin reporting - leader records ideas 5) group RANKS items in priority order; vote for final decision

Functions of Management: C) Directing: Motivational Theories McClelland's Achievement

aka power-affiliation theory 1) suggests all people have 3 needs: the need to achieve, need for power, need for affiliation 2) the achievement motive is a desire to do something better or more efficiently. People with this need tens to gravitate towards sales and management positions. They are task-oriented and can manage themselves 3) the need for affiliation is the desire to be liked by others, joins groups 4) those with a need for power enjoy competition and seek confrontation

Human Resources Employment Process: Selection Process

application, screening a. compare skills, knowledge, education w/job requirements b. pre-employment testing, background and reference checks c. types of interviews: 1) structured (directed): use checklist and pre-planned strategy; gives same information on all; minimizes personal biases 2) unstructured (non-directed): no definite checklist; more participation from applicant; "tell me about your last job"; sales, counseling, management (high levels of jobs)

Financial Management Budget Development: Components: 3) Semi-variable costs

both a fixed and variable component a. a portion of the cost will remain fixed regardless of changes in sales volume b. labor, maintenance, utilities c. these are divided into fixed and variable components before doing break-even analysis

Financial Management Financial Monitoring: Food cost per meal

food cost = food purchases + foods removed from inventory OR beginning inventory minus ending inventory, plus food purchases = food cost per month / # meals per month To determine: need 3 things: 1) # meals served 2) food purchases 3) foods removed from inventory ex) find food cost if: inventory June 1 = $36,250, inventory July 1 = $34,375, foods purchased in June = $52,390, meals served in June = 134,000 [(36250-34375) + 52390] / 134000 = $0.40 per meal

Financial Management Financial Monitoring: Budget projections

for each item (labor, food cost, operating cost, etc), multiply sales $ by % of income taken by each category. Then, for each category, multiply that number by % expected increase for next year (III 24 for example calculation)

Functions of Management: C) Directing: Leadership Styles

listed in decreasing order of control 1) Autocratic - demands obedience, most control, full responsibility 2) Consultative - asks for input, but makes final decision alone 3) Bureaucratic - by the book, follows procedures to the letter 4) Participative - emerging trend in management; encourage workers to participate in decision-making. Uses quality circles: small group of employees who meet regularly to identify and solve problems - democratic; accepts decision made by the group 5) free reign (laissez-faire) - least control

Quality Management and Improvement Process and implementation TQM: PDCA/PDSA cycle, FOCUS

plan, do, check, act OR plan, do, study, act - problem solving technique for coordinating process improvement P - plan to improve: how changes will be made D - do the changes: implement intervention S - study/check results: determine impact A - act to maintain and continue F - find a process to improve O - organize a team that knows the process C - clarify current knowledge of process U - understand causes of process variation S - select the process improvement

Human Resources Employment Laws & Regulations Age Discrimination in Employment Act 1967

prevents discrimination due to age

Marketing and Public Relations Marketing Analysis Marketing process and plan

1) FIRST STEP - identify a need that is not being filled 2) marketplace - where service will be offered 3) market segmentation - divide market into groups of people with similar needs (demographics, geographic location, SES, behavioristic, motivation for purchasing) 4) market niche - needs you are trying to fill 5) positioning statement - how you want the marketplace to view your product 6) decide target market 7) marketing objectives - quantifiable, attainable goals 8) marketing strategy - route chosen to reach goals 9) product mix - group of items you will offer 10) develop marketing mix - product, place, price, promotion (publicity,mail, paid ads, personal visits, public visibility...)

Managerial Characteristics Roles: Delphi Technique

(consensus of experts) 1) designed to probe expert minds in a series of written interviews from which some consensus is sought 2) participants do NOT meet

Financial Management Financial Monitoring: Accounting methods

1) cash basis - recognizes a transaction at the time the cash is taken in or released 2) accrual basis - recognizes revenues when earned and expenses when incurred (regardless of when the actual cash is received or dispersed)

Financial Management Budget Development: Resource Allocation: 1) Food Costs

a. most readily controlled item, subject to greatest fluctuation 1) menu planning - MOST important 2) type of service - selective menu reduces waste and cost 3) purchasing methods - group buying reduces costs 4) receiving control - weigh in and check items against invoice 5) storage and production control

Marketing and Public Relations Pricing Strategies Cost of profit pricing

a. price the product to ensure a predetermined % of profit b. profit is established as a cost c. to determine selling price of an item: = total food cost / desired food cost % age (III 27 for example)

Quality Management and Improvement Cost/Effectiveness Analysis

1) assumes the goal of the project is worthwhile 2) question to resolve is WHICH method of intervention is the most effective (in terms of value) in achieving the goal? 3) compares costs of ALTERNATIVE strategies 4) analysis utilizes outcomes research a. shows what works best, for whom, and at what cost? b. systematically considers clinical, cost, patient outcomes of various interventions to see which are effective and which are not c. used to predict the level of outcome that can be reasonably expected from a given intervention d. must assess effectiveness of a nutrition intervention against reasonable alternatives and determine the value of health care resources consumed when each alternative is used

Quality Management and Improvement Process and implementation TQM: 3 elements

1) customers/clients - true judges of quality 2) culture - environment created that establishes quality as a top priority 3) counting - measurement of what constitutes a high quality service or product and what needs improvement

Financial Management Financial Monitoring: Payback period

1) determines the length of time it will take for the cash inflows from a project to equal the initial cash outlay (how much time it will take for an investment to pay back the organization for the investment) 2) add up the costs of the service Add up costs saved by using new service divide costs of service by dollars saved

Functions of Management: C) Directing: communication channels

1) downward - from dept head down through ranks of workers, use procedure manuals, policy statements 2) upward - from workers to dept head; open door policy, suggestion boxes, grievance procedures 3) horizontal - between departments or between production and service within the nutrition department 4) diagonal - minimizes time and effort expended in organizations 5) informal channel (grapevine) - meets social needs of group

Functions of Management: C) Directing: Management Theories Traditional (classical)

1) formal structure that organizes and administers the work activities 2) coordination is main responsibility of management 3) focus on tasks, structure, authority 4) scalar principle: authority and responsibility flow in a direct line vertically from the highest to lowest; duties are delegated to lowest competent level 5) unity of command - each is accountable to only 1 superior 6) criticisms: too mechanic; job-focused and impersonal; doesn't see group interactions and decision-making processes

Functions of Management: B) Organizing and Staffing - functions and organizational structure

1) functions - id tasks and activities, divide into positions, establish relationships among other functions of management 2) organizational structure - shows how employees fit into org; relationship of positions and functions, lines of authority (solid lines), advisory staff (dotted lines) NOT shown = degree of authority of each level, informal relationships chain of command - top to lowest, starts with one person and extends downward Advisory staff - advise and support the line, but are not involved in day to day operations Functional - serves as both line and staff; has limited authority over a segment of activity because of specialized knowledge Span of control - # of individuals or departments under the direction of one individual - narrow span = more levels, need more managers, needed w/ newly hired personnel - wide span = fewer levels, fewer managers needed, used with highly trained, highly-motivated workers

Financial Management Financial Monitoring: Financial statements

1) general ledger - records and reports transactions categorized by account numbers - summary of all expenses and revenues for the month by category (meat, fruit, etc) 2) profit and loss statement (income statement) - shows operating results over a period of time - presents revenue, expenses, and profit (or loss or break even) over the course of the budget period - AKA revenue and expense statement 3) balance sheet - shows financial condition as of a particular date - lists assets (goods and products owned) - cash, inventory, accounts receivable (amounts owed TO YOU) - lists liabilities - amounts owed to others - assets = liabilities + capital (equity)

Marketing and Public Relations Marketing Analysis Strategic marketing

1) long term overall view of marketing in the organization in which resources are allocated and objectives set after defining the market 2) selection and analysis of a target market; creation and maintenance of an appropriate marketing mix

Functions of Management: D) Controlling/Evaluating

1) measure present performance against standard performance a. determine whether goals have been reached b. on-going process c. shows strengths/weaknesses, solves problems d. steps: 1) establish qualitative and quant standards 2) measure performance 3) compare to standard 4) take corrective action e. types of control: production, quality, quantity

Functions of Management: A) Planning

1) objectives - predetermined; toward which management directs its efforts (serve as motivators, provide direction) 2) policies - general decision-making guides, boundaries within which you must operate 3) procedures - chronological sequence of activities, specific guide for daily operations 4) time span a. short-term planning: up to 1 yr; usually the operating budget; projected in days, weeks, months b. long-term planning - up to 5 yrs; focus on goals and objectives - requires mission statement of long-range vision - sets direction for organization - SWOT analysis - assess environment outside and inside organization 5) emergency preparedness a. personnel should be screened b. procurement, receiving, storage schedule and procedures c. security; cameras, locks used d. production and service; safe practices, authorized personnel prepare and serve food

Financial Management Budget Development: Types of budget

1) operating budget - forecast of revenues, expenses, and profit for a specific period of time - first step: forecast sales or revenue (income) portion - then budget expenditures (labor, food, operating costs) related to project level of revenue 2) cash budget - projects revenues and expenses, showing inflow and output of cash - purpose is to determine if funds will be available when needed 3) capital budget - plant facilities, equipment, cost of improvements and repairs (service, maintenance contracts), expansions, replacements - includes expenditures whose returns are expected to last beyond one year

Functions of Management: C) Directing: Management Theories Systems Approach (III 8)

1) system is an organized whole composed of interdependent parts called subsystems (classified according to their purpose: procurement, production, distribution and service, safety and sanitation). Subsystems are complete systems in themselves that is a part of a larger system 2) open system interacts with external forces (customers, vendors); change in 1 part affects many other parts 3) management approach to considering the entire organization when making decisions or allocating resources 4) major components of the system: input --> transformation --> output The process of transforming involves linking (decision-making, communication), managing (plan, organize, staff, direct, control), and building function subsystems (production, distribution, service)

Managerial Characteristics Skills

1) technical - understanding of and proficiency in a specific kind of activity a. most important at lower levels of management 2) human - ability to work effectively as a group member a. important at all levels but imperative at lower levels of management 3) conceptual - ability to see organization as a whole a. importance increases at higher ranks of management 4) hard skills can be taught, soft skills must be developed and nurtured

5 functions of management

1. Planning 2. Organizing 3. Staffing 4. Directing 5. Controlling

Financial Management Financial Monitoring: Net worth ratios

Assess ability to meet long term debt

Functions of Management: C) Directing: Motivational Theories MacGregor

Attitude of the manager toward employees has an impact on job performance (based on manager's assumptions as to how employees view work) 1) Theory X - people inherently dislike work and will avoid it if possible; authoritarian, work-centered; workers prefer to be controlled and directed by pressure; motivation through fear; NEGATIVE, AUTOCRATIC 2) Theory Y - work is as natural as play and rest; management should arrange conditions so workers can achieve goals by directing own efforts; POSITIVE, PARTICIPATIVE

Marketing and Public Relations Pricing Strategies Breakeven (BE) - graph

BE is where total cost line crosses sales (revenue) line (III 26 for example)

Functions of Management: C) Directing: Motivational Theories Expectancy Theory

Beer, Vroom 1) rewards serve as motivators only under certain circumstances 2) employees must believe that effective performance leads to certain rewards 3) employees must feel that rewards offered are attractive 4) Path-Goal Theory - Evans, House a. focuses on leader's effect on employee's motivation to perform b. motivation to behave in a particular manner is a result of an expectation that a behavior will result in a particular goal and how strongly a person desires the goal

Functions of Management: C) Directing: Leadership grid

Blake, Mouton, McCanse plots leader's concern for people vs concern for production - scale 1-9: 1 = low concern, 9 = high concern Impoverished management (1,1) - min effort to get work done. low concern for people and production Country club management (1,9) - employee-centered; seeking approval and acceptance, comfortable, friendly atmosphere Middle-of-the-road management (5,5) Authority, Obedience, Autocratic (9,1) - focus on production, managing tasks domination, mastery, control of people, workers are commodities like machines Team management (9,9) - high concern for both people and production; most desirable

Quality Management and Improvement Cost Benefit Studies

Cost/benefit of nutrition education and intervention 1) determines whether the goal of the intervention is worthwhile in terms of cost 2) the value of the benefits derived from the intervention must outweigh the costs 3) state objectives clearly and quantifiably - calculate benefits - any outcome attributable to the project

Financial Management Budget Development: Purpose

Gives manager basis for CONTROL - estimate of future needs 1) must be flexible and adjustable according to changes 2) usually reviewed monthly

Quality Management and Improvement Process and implementation Outcome management systems

Goal: to improve quality of services offered a. evaluate effectiveness and efficiency of an entire process - effectiveness = degree to which an exchange helps to achieve your objectives (doing the right thing) - efficiency = min resources you must spend to achieve desired level of change (doing things right) Data is collected and analyzed in a timely manner so that performance can be adjusted and improved

Human Resources Employment Laws & Regulations HIPAA

Health Insurance Portability and Accountability Act 1996 a. allows employees to transfer coverage of existing to a new employer's insurance plan

Functions of Management: C) Directing: Leadership Effectiveness Model

Hersey, Blanchard, Johnson Readiness of followers and recommended leadership styles Readiness: desire for achievement, willing and able to accept responsibility, skills relevant to task Leadership style: tell, sell, participate, delegate low readiness = tell low to moderate readiness = sell moderate to high readiness = participate high readiness = delegate

Human Resources Employment Standards: Work Schedule

Hour by hour training tasks and time

Managerial Characteristics Roles: Informational (see III 11)

Informational a. monitor role - constantly searching for information to become more effective b. disseminator - transmits information to subordinates c. spokesperson - transmits information to people inside and outside

Human Resources Employment Laws & Regulations Unemployment compensation

Insurance against loss of income a. must be employed for specific time, able and willing to work, unemployed through no fault of their own; employers pay tax on payroll b. each state has their own laws that define benefits in accordance with minimum federal standards

Quality Management and Improvement Process and implementation Continuous quality improvement (CQI)

Integral part of TQM - emphasizes organization and systems rather than individuals - ideal that systems and performance can always improve - uses outcome assessment

Functions of Management: C) Directing: Motivational Theories Herzberg's Two-Factor Theory

Motivation and maintenance approach 1) maintenance (hygiene) factors (satisfiers, dissatisfiers) - if present and perceived as good = satisfiers - if lacking or perceived as negative = dissatisfiers; will interfere with work - do not produce motivation, but can prevent motivation from occuring - fair wage, insurance, retirement benefit, supervision, schedule, working conditions, interpersonal relationships on the job - maintain minimal level of need satisfaction 2) motivators - call forth energy and enthusiasm, job enrichment - achievement, personal accomplishment, recognition, responsibility, participation in decision making, opportunity for growth and advancement

Financial Management Budget Development: Methods to est. line items within budgets: 2) zero-Based Budget (ZBB)

NOT this year's expenses plus an inflation factor a. begin at 0; must justify each expense b. ex: PPBS - planning, programming, budgeting system (1) past dollar allocations are NOT the basis of projections c. planning oriented

Financial Management Budget Development: Components: 1) Indirect (fixed) Costs

Not affected by sales volume (# people served), not directly evident in day to day activities, required for business to exist even if it produces nothing, cannot be readily changed a. rent, taxes, interest in debt, insurance, depreciation b. stay fixed within a range of sales volume

Marketing and Public Relations Pricing Strategies Breakeven (BE) in sales volume

Number of $ you need to break even BE = fixed costs / 1 - (variable costs/sales) (see III 26 for calculation)

Human Resources Unionization: Collective Bargaining

One person represents a group of people to bargain with the employer a. strategies: get opposition into good frame of mind, ask for twice what you want, and bargain down from there b. steps: 1) bargaining - between steward and management 2) if that fails: mediation - neutral person helps settle differences; decision not binding 3) if that fails: arbitration - hearing to resolve a dispute during an impasse; decision is mutually binding. FINAL step in bargaining

Quality Management and Improvement Process and implementation Total Quality Management (TQM)

Philosophy where processes are refined with goal of improving performance in response to customer needs and expectations. Described in words: processes, improvement, customer satisfaction - involved continuous improvement to organizational processes, resulting in high quality products and services

Financial Management Budget Development: Methods to est. line items within budgets: 3) Fixed Budget

Prepared at one level of sales or revenue (no expected major change in patient or customer count during the year)

Marketing and Public Relations Marketing Analysis

Process of identifying a need, assisting potential clients in recognizing that need, and filling that need Marketing channel - exchange of ownership; producer, processor, distributor, supplier, customer

Value Analysis

Process of investigating all aspects of a service with the goal of discovering or eliminating unnecessary costs without interfering with the effectiveness of the service. For example you can purchase a software program that is very involved in nutrient analysis capabilities but if you only use that rarely a simple version maybe better choice. Value analysis lowers costs Value added increases value to the consumer

Quality Management and Improvement Process and implementation Improvement processes use criteria...

Professionally-developed statements that describe desirable health care processes or outcomes a. structure b. process c. outcome d. characteristics of criteria (RUMBA: relevant, understandable, measurable, behavioral, achievable) (III 30)

Functions of Management: C) Directing: Leadership continuum

Tannebaum and Schmidt Developed continuum or range of possible leadership behaviors. Each type of behavior is related to the degree of authority used by the manager and the amount of freedom available to subordinates in reaching decisions tells decision -- sells decision -- discusses decision -- asks for input on decision -- collaborates on decision -- delegates responsibility for decision

Functions of Management: C) Directing: Scientific management

Taylor 1) work-centered - workers must work as fastest pace possible @ max efficiency; systematic approach to improving worker efficiency 2) structure work situation to minimize motivation needed by supervisor 3) find the best way of performing tasks 4) focus on physical aspects of the job (not human aspect)

Functions of Management: C) Directing: delegation

The distribution of work to qualified people - manager must have clear understanding of what they want done; give specific instructions; motivate; provide training; require complete work; establish adequate controls - barriers to effective delegation - manager's reluctance to delegate - feel as though they can do better themselves, feel a loss of power, may be too disorganized to plan ahead, lack of confidence in subordinates