Fundamentals of Management

1. Chapter 3
Fundamentals of Management
Food and Beverage Management
Previously we discussed Organization and roles of the those who build that structure
What are the concerns of organization?
Management

2. Chapter 3 Overview
• Definition of Management
• Management Process
• Management Tasks
• Primary vs. Second Groups
• Management roles in providing hospitality
to guests
What is the definition of value?
Warren Buffet: Price is what you pay, Value is what you get.

3. Define Management
1.People
2.Money Organizational Objective
3.Time
4.Energy
Resource Allocation
5.Products
6.Equipment & Problem Solving
space
7.Procedures
What is the definition?
The ability to understand and solve problems
Taking raw materials, changing it or adjusting it and then using set principles to organize it
Leading without others knowing it
Offering tools, training and direction to others
Defining a universal set of principles of which to create and maintain a standard
The process in which others can work together to reach set goals

4. Exhibit 1 The Management Process
Planning Organization
Evaluation
Coordination
Controlling
Staffing
Directing
In this room_Letʼs believe that we are all managers of a_________;
As managers we have the ability to make decisions.
What factors influence our decisions?
Letʼs look at them...

5. Planning
• Creating goals and objectives
• Developing action plans to reach those
goals and objectives
• Factors in Effective Planning:
– Information
– Communication
– Flexibility
– Implementation
Without concrete goals we lose our way
Research provides information _what do we have now that influence our decisions?
Internet
Databases
Public Opinion
Government
Industry
Communication is huge today (Who has a cell phone?)
The computer has changed human existence
Flexibility to adjust to change rapidly...think of all the millionaires who have adjusted to stocks and web marketing
Implementation
goals are one thing, doing it is another. Thats were your organizational plan create job descriptions to hire employees come in
handy

6. Exhibit 2 The Sequence of Planning
Vision
Mission
Long-Range Plan A financial goal
Strategies
Business Plan Action steps
How to meet revenue goal
Responsibilities
Marketing/ads/prom tactics
Marketing Plan
Implem calendar Revenue goal
Expenses
Operating Budget
Forecast the results
Reflective planning requires lots of input and decision making.
Not an exact science

7. Organizing
How can we best assemble and use our limited human resources
to attain our objectives ?
• Flow of authority & communication
• Each employee should have only one
supervisor
• Empowered entry-level employees
• Organization structure evolves/updates
The organizational structure can conflict with proper planning
Lots of feedback is needed to improve a structure
Top Management hierarchy is needed to provide leadership without chaos
Line employees need direction at the beginning then simple guidelines and a system of checks and balances once trained

8. Coordinating
• Work assignments
• Organizing people
and resources
• Effective channels of
communication
• Delegation/ pass
down the authority
– Ultimate
responsibility /
accountability
Coordinators are usually embedded within leadership and management structure
Delegation of responsibility (Job descriptions)
Accountability is at attention in the face of the recent US financial crisis

9. Staffing
• Recruiting & hiring
• Selecting / screening
applicants
• Match the applicant to
the vacant job
• Job descriptions:
personal qualities
necessary to perform
jobs effectively
Interview processes are crucial to select proper employees.
Compared to education, experience and skills Itʼs the relationship bond that counts.
Whether hiring or being hired.
Know how to interview properly and wisely by practice.

10. Directing
Getting job down through other people!
• Supervising
• Disciplining
– Informing counseling
– Meetings between
employee & managers
– Written warnings
– Suspension
• Scheduling
Lack of having set standards rules, procedures and regulations accounts for the majority of disciplinary issues.
If you have a rare chance to set up Human Resource policies in an establishment set the highest standards you can confidently
maintain!
As a professional restaurant consultant I have been in many restaurants and hotels that lack the type of sanitation, safety and ethics
needed to be profitable.
Expound...

11. Exhibit 3: Basic Steps in the Control Process
Not Acceptable Step 5
Evaluate
Corrective
Acceptable Step 4
Action
Step 3 Take
Correct
Compare Action
Actual
Step 2
Results
Measure with Standards
Step 1 Actual
Operating
Results
Establish
Standards
FIscal accountability as well as measurable human resource evaluations are assets that need control.
Again, establishing controls and standards are crucial for growth.

12. Evaluating
• Review progress
toward achieving
organizational goals
• Measure employee
performance
• Assess the
effectiveness of
training programs
This is a step that many small companies sidestep.
In order to improve gross revenue, correct out of date processes or improve morale and training and software constructive criticism
is desirable and warranted.

13. Daily Activities for Managers
• Help develop the operating budget
Planning, controlling
Coordinating • Deal with problems
Planning, coordinating • Work with a colleague in another dept. to
plan an special event
Organizing, staffing • Revise job descriptions
Directing • Carry out routine supervisory activities
Controlling • Revise standard food & labor cost
estimates
Evaluating
• Conduct employee performance review

14. Food Service Manager Relationships
Primary Groups
•Guests (Consumers)
•Owners (Board of
Directors)
•Area/Regional Directors
Food Interact with
•Managers
•Employees
Service
Manager Secondary Groups
•Suppliers
•The local community
•Government regulatory
agencies (e.g. OSHA)
The value of spirit of hospitality

15. Management role in providing
Ho`okipa- cordial reception of guests
The kinds experiences that you can imagine, manufacture and market can be lucrative and popular to others.
But you must create and set standards early in your career.

16. A cup of kindness
If you donʼt like to take orders, smile, serve clean up after yourselves or contribute to the business....
May want to look for another career or marry rich!
Service Is key. Most Industry employees start at the bottom
FUNDAMENTALS
Customer Satisfaction is the Primary goal
Role Playing?
Let Student do it first then change dynamic
How was that?
How did you feel? Okay?
Now letʼs try it differently...
Stand Up
Eye Contact
Smile
Greet,
How Do you Do?
Shake Hands
Lingering Impression

17. A cup of kindness
• Begin by understanding customers’
needs
– Kindness is demonstrated by making
everyone feel welcome
– Quality customer service requires that we
make all guests feel comfortable
– We all have a need to feel important
Start today
Practice these habits when itʼs slow, when youʼre busy it becomes automatic.

18. A cup of kindness
– Definition of Management
– Management Process
– Management Tasks
– Primary vs. Second Groups
– Management roles in providing hospitality to
guests
Management Definition: People, Money, Time, Energy, Products, Equipment & space, Procedures
Management Process: Planning, Organizing, Coordination, Staffing, Directing, Controlling, Evaluation
Providing hospitality is much easier that it looks