OPERATIONS MANAGEMENT

Adapted from “Operating & Managing a Hotel & Restaurant Business” by Amelia
Samson-Roldan
CHAPTER I.
Creating a Favorable
Organization
An expert in Organizational Development remarked that even the most
competent manager cannot succeed in an unfavorable work environment. A
food company may have hired the best managers but if it fails to provide a
favorable climate where people can move, inter-act and operate efficiency,
then all attempts to produce expected results become a futile exercise.

Mervin Weisbord, in his book Organizational Diagnosis, mentioned six key

elements that are necessary for any organizations to achieve maximum
efficiency. They are:

PURPOSE
The corporate vision, goals, targets and
objectives that state the company’s direction;
a statement of what the company wants to
achieve.

STRUCTURE
RELATIONSHIPS & CULTURE
Well-defined division of labor, systems,
A healthy working relationship governed
policies and procedures that regulate the
by positive corporate beliefs values and
flow of work.
practices.

SANCTIONS
REWARDS
System of detecting infractions and
What employees get for doing
enforcing disciplinary action against erring
a good job.
employees.

LEADERSHIP
Ability of leaders to mobilize human and material
resources to generate expected results.
Outside

PURPOSE

Sets the direction of the company, stating in specific terms the purpose of its
existence, the desired results and the strategies to be implemented to be
able to attain goals.
In setting this direction, the following questions have to be addressed:

1.What is the vision of the company? What does it want to become in the
future, for the next 2, 5, or 10 years?

2.What specific and measurable results does it want to achieve i.e., -

projected revenue, profit margin, covers, production quota, etc. These
are often referred to as forecasts.

3.How much resources (budget) are needed to realize the business

targets? How does the company intend to allocate these resources?
Like how many percent of total sales is allocated for food cost, labor,
supplies, marketing depreciation, administrative expenses, promotions,
etc.?

4.What comprise the target market? What are their spending habits,
needs, tastes and preferences of the market in so far as food and
entertainment is concerned, paying capacity, expectations,
requirements, etc.? These information are usually gathered in a market
survey.

5.How does one intend to reach the target markets? Who can help? What
specific groups, agencies and persons can sales people make a tie-up
to be able to gain access to the target markets?

Example, for banquets and hotels, a network with tour and travel
agencies, congress organizers, industry associations, etc. can help in
accessing potential markets for banquet functions and room bookings.

6.How does the company intend to package its products and services to
the satisfaction of its target markets? What menus and banquet
packages (with amenities) can be offered? How will the food, rooms,
and other products be packaged and presented to customers? How will
the rooms be set-up? What room amenities will be set-up? How much
will each package cost? Does the company provide the right package
for various target groups? Is the cost affordable to clients?

7.In what areas does a company intend to excel? What image does it
want to project? Does it want to be known as a specialty restaurant that
specializes in Filipino, Japanese, Mediterranean or Oriental cuisine?
Does it want to excel as a food chain or as a fine dining restaurant?
8.What is the situation of the company? What are the performance gaps
and operational problems? These issues are usually addressed in an
internal analysis.
 9.What hinders the business from achieving its goals and targets? This
must take into consideration internal weaknesses like inability to satisfy
customers, poor service, high prices, lack of promotions, etc. and also
external factors like economic recession, canceled bookings due to
calamities, reduction in tourist arrivals, etc. SWOT (strength-weakness-
opportunities-threats) analysis is usually done for this purpose.

10. What strategies and remedies are necessary to correct internal

weaknesses, deal with the external threats and improve overall
company performance? Example: New marketing and promotional
tactics, quality control, etc.

11. What are the needed resources and how much are needed to
implement the strategies?

12. Do people in the organization especially the managers and supervisors

understand and internalize the company goals, vision, mission,
corporate strategies and philosophy as well as its corporate values?

13. Did they participate in the making of the corporate goals and
strategies? Do they recognize the significance of these goals?

14. Have these key people committed their support in ensuring the
attainment of corporate goals and targets? A successful business starts
with a good direction. It is in the exercise of direction-setting that desired
results are clearly defined before they can be achieved. But the
following conditions must prevail for the business to move towards
attaining its goals.

1. All officers and staff are oriented and made to understand the
company’s vision, goals, and strategies and they participate in the
making of these corporate objectives. This is normally done in a goal-
setting or planning workshop.

2.Managers and supervisors are oriented about their roles and functions
as well as the results expected of them. Said information must be
documented in their job description and should be acknowledged and
signed by them.

3.Everyone is made accountable for results and made to understand

what rewards will be given when targets are achieved and what
sanctions will be enforced when the goals and the results are not
achieved.
 4.Accomplishments of goals are consistently monitored and measured.
There is a way of checking actual attainment against targets. This can
be done though performance audit and performance reviews.

5.The working team is given feedback about its progress towards goal
attainment. Sales reports, accomplishments and audit reports may be
used for this purpose, presented to and discussed with the concerned
supervisors.

6.Variances are analyzed and remedial measures are taken to bridge

any performance gap. Feedback of customers can help in discovering
causes of variances and can also serve as a basis for corrective
action.

7.Managers and supervisors are made to account for their performance

and are made to answer for unjustified variances and discrepancies.
Inability to correct variances and discrepancies indicates managerial
inefficiency and is a ground for administrative action.

If these seven conditions are strictly implemented by management, the

movement towards goal attainment is facilitated and sustained.

STRUCTURE

Provides the mechanism for dividing, arranging and administering the job to
be done in a manner that will ensure maximum efficiency and productivity.

Questions to address in setting an organizational structure:

1.What are the major tasks to be accomplished and how should they be
distributed and delegated? An organizational chart is used to illustrate
the division of labor.

2.Who is in command in each unit? Who is accountable for results? (Unit

head) What is his span of control or area/scope of responsibility? Will
the structure enable him to manage the operations efficiently?

3.What are the lines of authority? Will “double bossing” be avoided? Who
reports to whom? Who is responsible to whom?

1.Does the power structure provide for autonomy and flexibility?

5.Are there limits to authority and power? Is everyone informed about it?
What are the decisions that the manager or the supervisor is authorized
to make? What decisions must be referred to top management?
 6.How are the job positions classified? Is each job position appraised to
ensure a fair job classification?

7.Are the lines of communication and coordination understood by all

concerned staff?

8. What are the job duties, responsibilities, accountabilities and

boundaries of managers, supervisors and staff? Are these clearly
communicated to them?

9. Are tasks or duties properly delegated? Is there no overloading and

duplication of job duties among the staff?

10. What company policies and procedures regulate the behavior and
24 performance of people in their job?

a.What control systems and policies are enforced to ensure that

losses, pilferage, excessive consumption and other forms of abuses
or inefficiency are prevented?
b.Are job procedures in line with quality standards or industry
standards? If the hotel caters to an international market does it
comply with international standards of service to make it competitive
in the global market?
c. What are the job standards - quality and quantity of work expected,
standards of safety, sanitation, cost, etc.
d.Are all these information formally sanctioned and documented or
simply implied? Are all employees made to understand them or
trained to apply them?

11. How will the job be evaluated? Are there specific, measurable,
attainable and realistic performance standards that serve as basis for
an objective job evaluation?

12. Is there an organized monitoring system that can check and ensure a
consistent application of operating procedures and standards?

13. Is there a feedback and problem-solving mechanism? Are variances

and discrepancies communicated to all concerned, deliberated on,
analyzed and resolved with appropriate remedies?

REWARD SYSTEM

Refer to the package of incentives and other forms of rewards given in

recognition of satisfactory performance.
 1.What do employees get if they do a good job? What incentives and
benefits does the company provide?

1.1 Are these competitive with those offered by other establishments in

the same category?
1.2 Can the company afford to pay the required benefits?

2.On what basis are incentives distributed? Are these based on the merits
of performance? How does the company measure a satisfactory job?

3.Is a job evaluation system in place for the company to have a sound
basis for job and wage classification?

4.What company practices are being implemented to boost employee

morale?

4.1 Are employees consistently recognized and appreciated for their

efforts?
4.2 Is there a good rapport between managers/supervisors and staff as
well as between managers and the owners?

SANCTIONS

This element covers administrative penalties or disciplinary actions given to

employees for unjustified infractions, deviations from standards, and other
performance and behavioral deficiencies.

Before administering sanctions, consider the following:

1. Are the standards of productivity, quality of work, cost, efficiency, etc.

clearly defined? Were these made clear to all concerned?

2.Is the acceptable level of performance defined? Is there a way of

measuring levels of performance?

3.Is there a code of ethics of house rules that define undesirable

behavior?

4.Are offenses properly classified? (minor, major and grave offenses)

5.Are there appropriate and just sanctions for every type of offense?

6.How is misconduct determined and processed? Is there due process?

 7.How are infractions and misconduct detected and documented?

8.Are erring staff made accountable for infractions, variances and

questionable transactions?

9.Is there consistent and fair administration of sanctions?

CULTURE AND RELATIONSHIP

This has reference to the working relationships among staff in various

levels, the degree of teamwork, cooperation and the prevailing culture that
governs the relationships and the corporate practices.

The climate of working relationships is highly influenced by the prevailing

corporate culture. Such culture is reflected in the company’s core values,
myths, beliefs, and practices. It is also manifested in the perceptions and
attitudes of the owners, managers and staff. In analyzing the corporate
culture, examine the following:

1.What are the core values of the company - what are highly valued and
given enough importance i.e., quality, cost, productivity, dignity of labor,
employees morale, customer satisfaction, etc.?

2.How are these core values actualized in terms of policies and practices?
For example, if cost is important, what cost control policies are being
enforced? If dignity of labor is valued, are work conditions humane?

3.What are the myths and beliefs that influence the behavior of top
management, department heads and staff?

4.Does the prevailing culture believe in the importance of people

participation? If so, is there a democratic and consultative process of
decision-making?

Healthy working relationships and teamwork are important elements in

enhancing group productivity. Are they given attention by top management?

 How is healthy teamwork created and maintained?

 Is there harmony, camaraderie, and mutual trust and respect among
the staff and between top management and the managers?
 Are false beliefs and misconceptions clarified?
  Are internal differences, conflicts, disagreements confronted and
resolved?

LEADERSHIP

Speaks of the management style - how people are mobilized, trained,

directed and motivated to be able to deliver the expected results.

1.Are all company officers properly screened to avoid the hiring of

misfits?

2.What is the dominant leadership style - autocratic, democratic, and

bureaucratic?

3.Is situational leadership effectively utilized? (matching leadership style

with various levels of personnel and varying work situations)

4.How is the rapport between leaders and their staff, managers and the
owners?

5.Are managers and unit heads consulted by the owners or top

management regarding policies, goals and other critical decisions
affecting operations?

6.Are leaders given the autonomy and sufficient authority to make

decisions?

7.Are all company officers properly trained in management techniques

before assuming their position or are they made to operate on a hit and
miss basis?

8.Do officers consistently monitor and check their staff’s performance?

Do they give their staff feedback about their progress on the job?

9.How do officers manage the consequences of staff performance? What

is the response to good performances, to deviations and variances?

DEFINING A HEALTHY ORGANIZATION

The following conditions are indicative of a healthy people management

system. Check which ones you think you want to exist in your dream
hospitality business and then write it down in your notebook.
__1. Appropriate people are selected to handle the requirements of the job
and these people grow with the firm. A selection process is able to eliminate
misfits for the job.

__2. The organizational framework enables and encourages rather than

prevents people to work at the maximum level of efficiency and productivity.

__3. Control is clearly in the hands of the most appropriate people who get
the necessary information in order to make their decisions.

__4. People have the facilities and opportunities to learn quickly what they
need to know to be “on top” of their jobs. Example: training, career
opportunities, a program for career advancement, etc.

__5. Those who work in the firm want it to flourish and are prepared to put
their best efforts to help the company achieve its goals, the staff is truly
committed and self-motivated.

__6. New ideas and strategies are implemented to keep the firm ahead in its
field.

__7. People who need to work together find the climate constructive,
enjoyable, and relatively open. There is a healthy teamwork and
interpersonal relationship.

__8. Managers take their responsibilities seriously and test the soundness
of their beliefs by what happens in practice.

__9. Important future staffing needs are identified and prepared for in
advance, and a sufficiently large pool of potential management talents is
created.

__10. The organization knows its direction and purpose – what it wants to
achieve, where it wants to go and how to get there.

__11. Those who make the largest contribution to the success of the
company get the highest rewards; payment system is perceived to be just
and equitable.

__12. People are constantly growing as individuals and the organization

encourages and values high personal effectiveness.
 WORKSHEET 1.1
Chapter 1. Creating a Favorable Organization
Case Study on Organizational Efficiency

Mr. Jim Cruz is a new Food and Beverages Manager of A-1 Resort,
reporting directly to the owner. In his previous job as F&B Manager in a de-
luxe hotel, he made an outstanding performance. Customers were very
much impressed by the product quality and satisfactory customer service
which he was able to maintain. With his good records, A-1 Resort pirated
him and gave him a higher pay and benefits, with the expectation that Jim
will resolve their operational problems especially in the area of food
preparation, sales and customer service. After 6 months, his new boss
expressed his dissatisfaction and disappointment over Jim. He remarked:
“He is probably competent, his staff loves and respects him but he has not
done well to improve sales, profit and production. A lot of customers have
complained and did not return. His supervisors aren’t doing well.”

Jim sees the situation differently. He has regrets for having transferred to
this resort. He felt so bad having turned out poor results despite all the hard
and sincere work that he had done. He said: “It’s all worries and tensions
beset me. I wanted to do so much but I feel crippled and helpless. Take my
position. Here I am a manager, and was told to increase sales and improve
food and customer service using my own strategy. I wanted to set up sales
targets, a budget and control system but there were no records to start with.
My boss did not give me access to financial data saying everything is
confidential. I was expected to work our miracles on my own initiative and
effort. My supervisors and I are not allowed to attend meetings because it
isn’t a company practice. I wanted to do things but the owner often
contradicted my decisions. My supervisors did not have formal training and
did things on a hit and miss basis and yet the company would not want to
invest in their training, contending that they will learn on their own. My
supervisors are responsible for results but they complain that they are
powerless since they have no authority to run after erring employees. One
of our men refused to take orders from his supervisor – Mario. So, Mario
suspended him but he was reprimanded for doing so by the Personnel
Office as the guy is a relative of the owner. So, he rightly protested: “What
am I supposed to do? I’m supposed to be in charge and accountable. Am I
or am I not? What is my authority over my people?”

My boss always complains to me about high costs but he never seems to

make up his mind about what it is that we are actually aiming for. So, our
costs get out of control before we don’t even know what they ought to be. I
report my problems to my manager but he seems to be of no help to me as
far as costs and quality are concerned. He says I should have sorted out
these difficulties with the Finance Manager before going to him. I can’t
spend half my day dealing with problems that should never have happened
if only everyone knew what was expected of him. Everyone seems so good
at passing the buck.

“If you ask me, this place has grown too fast. Twenty years ago, it was a 10-
room resort. Now it has 100 rooms, 5 function rooms and a sports complex
and it employs almost 250 people. I really want to do a good job but I don’t
know how to make it possible under these circumstances.”

Points for discussion

1.How do you analyze the situation of Jim? What hampered him from
performing a good job?

2.What elements of organizational efficiency seem to be lacking in this

situation? How did these affect the overall performance not only of Jim’s
department but the company as a whole?

3.What would you do if you were Jim?

Write down you answers in the box. (50 pts)

CHAPTER II.
Overview of
Management and
Supervision

Whenever something goes wrong with a company business, the common

remark is that it is mismanaged. Being mismanaged implies that expected
results are not achieved because material and human resources are not
sufficient or are not properly or reasonably utilized to generate expected
results. And when this happens, the one in commend - manager or the
supervisor is always made answerable.

Much has been said about the “command responsibility” of the manager.
This means that being in command of a unit or a department; he/she is
responsible for results. While it has been recognized that internal and
external factors have a bearing on the success of organizations, the fact
remains that most undesirable consequences in the operations are
attributed to managerial inefficiency.

A better understanding of management problems requires a good

knowledge of management concepts and functions. Management is simply
defined as the art of getting things done through people, making effective
use of material and oher given resources. The big difference between an
employee and a manager is that the employee is directly assigned to
perform routine tasks like housekeeping for food service while the manager
or supervisor distributes these tasks to his staff and his responsibility is to
see to it that the employees assigned to do the work do their job in
accordance with established policies, standards and procedures.

Given this nature of management, an effective manager can be described

as

2.1 One Who Gets Desired Results Through the Effective Mobilization
of Materials and Human Resources

When everything goes well in a work unit and the expected results like
revenue, profit, customer satisfaction, etc. are achieved, it could be said that
the manager or the supervisor has done a good managing job. If
consequences do not conform to what is expected, it is assumed that there
is a managerial deficiency. And this can be traced to failures in performing
basic management functions like planning, organizing, directing, leading
and controlling the flow of operations in line with corporate policies.
Perhaps the deficiency could be lack of direction – no specific goals or
targets, budget or strategies, disorganized systems and policies, lack of
proper consistent monitoring, lack of control systems, or perhaps, low
morale among employees. All these can result to poor work performance of
the staff.
The difference between management and supervision lies basically on the
scope of decision-making. Managers are usually given the power to make
major decisions like establishing goals or targets, budget, policies,
strategies. Supervisors on the other hand, are tasked with the responsibility
of overseeing and directing the delivery of services so that the policies,
standards and procedures designed by top management are consistently
implemented.
In most organization, major decision-making is centralized at the top
management – executive and department heads. However, there are a few
organizations where all management functions including planning and
decision-making are shared by supervisors. This management system is
usually found among companies that believe in the principle of participative
management.
Managers and supervisors also differ in their position in the organization
and their span of control. Managers are on top of organizations, being the
head of the department or a division that has several units operating under
it. Supervisors have a lesser span of control – a smaller unit, under a
particular department and reporting directly to a department head. It is
usually the supervisors who directly supervise the foremen or service
personnel and so they play a major role ensuring the success of any
enterprise.
The main support given by top management to its managers and
supervisors is the provision of material and human resources needed to
generate expected results. However, it is the managers who identifies the
type and quantity of the resources he needs to attain his department goals.
This is done during budget meetings. It would be impossible for manager to
deliver good results when these resources are not properly identified,
provided for, or reasonably utilized.
2.2 There Are Two Areas of Resource Management:
1. Human Resources Management – covers management strategies
designed to ensure that people in the organization are able to perform
at maximum efficiency and productivity.
This area of discipline is the focus of programs like Performance
Management. Training, Labor Relations and Leadership Enhancement.

2. Materials Management – is concerned with management efforts to

ensure that material resources like machines, equipment, supplies,
utilities and money are used sparingly, safely and within the limits of
the budget.

These concerns are usually addressed in management programs like Cost

Control, Warehouse Management, Financial Management and other related
programs.
These are management who excel in some aspects of materials
management like Cost Control and Finance but seems to fail when it comes
to managing people. One can also find some leaders who are good in
handling people but are faced with high costs of operations and substantial
losses of stocks.

2.3 The Various Phases of Management

The proper flow of management functions is illustrated by this chart

1
MANAGER PLANS SETS
DIRECTION
Set goals and strategies;
designs products/services

6 2
CONTROLS ORGANIZE THE WORK
The flow of work, ensures Defines and distributes the task;
compliance; takes action Designs system and procedures;
against infractions and delineates lines of authority.
variances.

5 3
MONTORS PERFORMANCE ORIENTS/TRAINS HIS STAFF
Check results vs. standards On how to do the work; relays
and targets; records information about company
variances; gives feedback; policies, products, standards, etc;

4
LEADS, DIRECTS AND
COORDINATES
All activities to confirm to plans and
procedures; builds employee
morale

BASIC FUNCTIONS OF A MANAGER IN A HOTEL AND RESTAURANT

INDUSTRY

1. PLANNING & PROBLEM SOLVING

1.1 Formulates department goals, targets and objectives

1.2 Forecasts revenue, volume of production, covers and profit
 1.3 Establishes operations budget (i.e. supplies, staffing, etc.)
1.4 Assesses performance against targets and standards; analyzes
variances
1.5 Determines plans of action and strategies to realize objectives
1.6 Determines contingent actions for anticipated problems and
concerns
1.7 Identifies and analyzes performance problems; undertakes
remedial action.

2. ORGANIZING
2.1 Determines critical tasks and establish division of labor
2.2 Defines and delegates staff duties and responsibilities
2.3 Delineates lines of authority, communication, coordination,
boundaries
2.4 Defines performance standards and establishes standard operating
procedures
2.5 Prepares staff schedule and side duties
2.6 Delegates special assignments

3. LEADING & MONITORING

3.1 Checks and ensures the availability of pre-operating requirements
i.e. par stock, manpower, equipment, etc.
3.2 Checks performance against set standards, call staff attention
regarding infractions
3.3 Gives orders and instructions; makes follow-up
3.4 Conducts regular meetings to discuss/resolve operational problems
3.5 Disseminates to the staff all needed information like out of stock
items, new products, monthly promotion, etc.
3.6 Coaches, guides and trains the staff
3.7 Boosts employees’ morale; motivates and enhances teamwork
3.8 Conducts daily briefing and staff inspection
3.9 Monitors guest’s satisfaction – solicits feedback, attends to
customer needs, request and complains

4. CONTROLLING
A. Control of Staff Performance
4.1 Establishes and enforces house rules and performance standards
4.2 Regularly monitors staff performance and document infractions
4.3 Makes staff accountable for infractions and discrepancies; enforces
appropriate disciplinary action
 4.4 Gives feedback on the progress of employee’s performance
4.5 Evaluates performance and conducts appraisal interview
4.6 Distributes rewards and incentives based on the merits of
performance

B. Control of Material Resources

4.7 Establishes control policies and procedures in all areas of

operation, including the issuance and use of supplies/equipment
4.8. Ensures proper storeroom management with a properly custodian
to monitor the issuance and return of borrowed or used items
4.9 Monitors losses and breakages through periodic inventory
4.10 Monitors consumption of supplies against budget
4.11 Enforces corrective action against excessive or unbudgeted
consumption
4.12 Train staff on the rules of equipment handling and maintenance
4.13 Implements a preventive maintenance program
4.14 Enforces disciplinary action against careless and abusive use of
supplies and equipment

2. BUILDING CUSTOMER GOODWILL

5.1 Attends to customer needs, requests and complaints

5.2 Monitors guest’s satisfaction; makes follow-up, and solicits
comments
5.3 Establishes rapport with guests – initiates and maintains contact
and healthy interaction
5.4 Anticipates guest’s needs; undertakes contingent action to avoid
complaints
5.5 Enforces corrective action against customer complaints and other
areas of customer dissatisfaction
5.6 Documents guest’s comments and feedback and disseminates
them to staff concerned
 WORKSHEET 2.1
Test of Understanding the Application of Management Functions

Below is a list of performance problems commonly found among many

hotels and food establishments. These problems usually result from
mismanagement- a deficiency in executing one or a combination of
management functions of planning, organizing, training, leading/monitoring
and controlling. Analyze each problem carefully and indicate the
management deficiency where one could attribute the occurrence of said
problems, using the code below. Defend your answer.

P －if deficiency in planning

O －organizing deficiency
LM – leading & monitoring deficiency
C －deficiency in the controlling function
T －inability to train and develop staff

Cause/s Situation Give reasons and elaborate.

___1. Rampant violation of standard ________________________

operating procedures ________________________

___2. Consumption is beyond the limits ________________________

of the budget ________________________
___3. Duplication of tasks, leading to ________________________
buck-passing ________________________
___4. Personnel working on a hit and ________________________
miss basis, making costly ________________________
mistakes ________________________

___5. Manager is unaware that his unit _________________________

Is making wasteful consumption _________________________

___6. No consistency in the quality of _________________________

food _________________________

___7. A lot of reports related to _________________________

Misconduct
___8. Inaccurate and incomplete _________________________
reports _________________________
 ___9. Waiters use wrong procedures _________________________
___10. Inspection is undertaken but _________________________
the deviations are left _________________________
unnoticed _________________________

___11. The cook follows his own _________________________

recipe _________________________
___12. No profit despite the high _________________________
patronage _________________________

___13. Frequent Absenteeism and _________________________

tardiness _________________________
___14. Discrepancies in cash _________________________
transactions _________________________

___15. Unaccounted losses and _________________________

pilferage _________________________

2.4 Responsibilities of Managers and Supervisors

Managers and supervisors are responsible for consequences. While they

have the authority and prerogative to make decisions within their span of
control, they will be answerable and accountable for results not only to top
management who pays for their services but also to the employees who
report to them and the customers (internal and external") whom they serve.

Their responsibilities include, but are not limited to the following:

A. TO THE COMPANY-TOP MANAGEMENT

1. Meeting sales/production targets
2. Disseminating company policies and standards to the staff
3. Bringing management concerns to employees and ensuring their
cooperation
4.Safeguarding company properties (materials and equipment)
5. Safeguarding the company image
6. Maximizing profit through effective control systems
7. Ensuring compliance to company policies, standards and procedures
8. Making an account of their unit's performance through reports
B. TO THE STAFF-SUBORDINATES
1. Protecting employees against abuses and violation of human rights
2. Providing for safe working conditions to ensure employees' safety
3. Creating opportunities for the professional advancement of staff
4. Maintaining staff discipline
5. Building employees' morale
6. Intervening for the welfare of employees
7. Providing moral support when needed
8. Building the goodwill and respect of employees

C.TO THE CUSTOMERS

1. Ensuring the delivery of quality products and services
2. Ensuring prompt and timely delivery of service
3. Attending to customer complaints
4. Checking and maintaining customer satisfaction
5. Responding to customer’s needs and requests
6. Ensuring customers' safety
7. Keeping customers informed of company policies, new products, etc.
8. Maintaining customers' goodwill

2.5 What Makes an Effective Manager?

1. Technical expertise on hotel and restaurant operations

 Knowledge of standards in hotel and food service operations
 Mastery of skills in executing operational procedures according to
Industry standards
 Knowledge of market trends and latest technology in hospitality
operations
2. Human Relations Skills
 Ability to maintain the goodwill of customers, superiors, staff, co-
employees
 Ability to cope with difficult people, difficult customers and work
situations
3. Planning and Organizing Skills
 Ability to make sales forecasts and budgets to conduct internal
and external analysis, analyzing problems and identifying
remedies
 Knowledge of strategic planning
 Proficiency in effectively using organizing tools
 Ability to design work systems that are conducive to efficient
operations
4. Leadership and Monitoring Skills
  Ability to lead and influence people and to win their cooperation; to
motivate staff and deal with morale problems; to monitor staff
performance and to identify and correct deviations
 Mastery of the use of situational leadership
 Ability to handle meetings effectively, settle internal conflicts and
differences
 Ability to delegate and communicate orally and in writing
 Ability to document observations and write reports
 Ability to coordinate with other units and departments
5. Controlling Skills
 Ability to conduct corrective interviews, performance appraisals and
appraisal interviews
 Knowledge of materials management
 Knowledge of performance management-ability to identify, diagnose
and deal with infractions
 Ability to conduct sales and variance analyses, inventory analysis
and reports, prepare budgets and to monitor actual consumption
6. Training Skills
 Ability to identify training needs of staff and to conduct skills training
 Ability to instruct and transfer technology

PERSONAL QUALITIES OF AN EFFECTIVE MANAGER

1. Self-confidence and determination

 Exudes poise and assertiveness
 Decisive and determined to get what he wants

2. Has a sense of purpose and direction

 Possesses a vision and ambition
 Operates with realistic goals and aspirations
 Knows what he has to do to realize his vision

3. Has foresight and is prepared for contingencies

 Can anticipate potential problems and threats
 Always ready for contingent action
 Is abreast with the times; knows how to anticipate

4. High level of sensitivity

 Is sensitive to the feelings of others, respects others' self-esteem
 Employs tact and diplomacy in his language
 Responsive to the needs of the company, staff, and customers

5. High level of tolerance

  Accepts limitations of others, as well as differences in opinion
 Possesses a sober and well-balanced temperament; exhibits
patience and understanding

6. Team spirit
 Has the capacity to trust others
 Willing to accept, acknowledge and respect differences in ideas
 Willing to lend support and cooperation, setting aside personal
differences
 Always maintains a win-win relationship

7. Pro-active and objective

 Does not act by impulse; always motivated by right principles and
values
 Is objective; does not rely on hearsay; is never vindictive
 Takes responsibility for results, does not pass the buck

8. Morally Upright, unquestionable Integrity

 A model in terms of self-discipline; practices what he teaches
 Has good moral values; puts a high value on costs, quality and on b
dignity of labor

THE MANAGER'S SPAN OF CONTROL

Span of control refers to the scope of responsibilities and decision-

making of the manager. Many establishments that wish to save on labor
cost make the mistake of delegating a wide range of responsibilities
covering different or sometimes unrelated tasks to the manager, making him
overloaded. Should this happen, it will be difficult, if not impossible for him to
effectively direct and monitor operations within his area. The factors to
consider in assigning a manager's or supervisor's span of control are:

1. Geographical dispersion of the employees concerned (One can

supervise more people if they are confined in one area).
2. Time available for supervision-When there are other tasks to attend
to, less time can be devoted to supervision, so the span of control
should be reduced.
 3. Whether jobs are familiar or related-Supervising different units doing
unrelated tasks is a complex job and is therefore not advisable,
unless one is left with no choice due to lack of manpower or budget.
4. Degree of proficiency and maturity of the persons being supervised.

Proficient and responsible employees require less supervision. It will

be less difficult to supervise more units or persons of this kind.

2.6 Elements of A Manager's Job

The manager's and supervisor's job cover 2 major areas as illustrated below
TECHNICAL ADMINISTRATIVE
Those directly related to operation like  Planning, decision-making
 Preparing/presenting reports
 Preventive maintenance  Designing, leading, coordinating the work
 Taking a direct hand in operations, service,  Regulating, controlling the flow of work
production
 Assisting in recruitment staff straining
 Attending to customer, to deliveries, and
operational concerns

To be truly effective, the manager and the supervisor must have the
technical and administrative competencies.
ASSESSING MANAGERIAL EFFECTIVENESS

How can one tell if a manager of a supervisor is effective or is doing a good

job?

The effectiveness of a manager can be measured by the results or

consequences of his performance. The performance targets and the
performance standards parameters for assessing his efficiency and
success. These are referred to as performance indicators. Without these
indicators, there will be no basis for objective assessment.

One reason why a lot of managers and supervisors are unable to deliver
good results is because they are not aware of the results expected of them.
They maybes oriented about their job duties, work policies and procedures
but still, they may not be able to excel if the desired results or outcome are
not defined.

2.7 Key Result Areas (KRA'S)

Assessment of managerial effectiveness starts with a clear delineation of

expected results. Such results emanate from the managers' key result
areas.
 KEY RESULT AREAS are defined by the International Labor Organization
as profit influencing tasks or results necessary or significant to attain
corporate goals. For example, quality is a KRA necessary to sustain
customer satisfaction and patronage. The KRA'S constitute the areas of
accountability of the manager of supervisor.

The managerial KRA'S can be classified into technical-operational (related

directly to operations and administration) and staff development*
Once the KRA'S are established, the identification of standards or
performance indicators for each KRA as a basis for assessment of a
manager's efficiency and quality of performance follows.

TACTICAL
STAFF DEVELOPMENT
STAFF TRAINING JOB
MORALE
TACTICAL QUALITY
STAFF WELFARE JOB
PRODUCTIVITY SAFETY APPRAISAL
SANITATION GOALS DISCEPLNE
CUSTOMER PAR STOCK TEAMWORK COMMUNICATIONS
PREVENTIVE MAINTENANCE EMPLOYEE GRIEVANCE
PROBLEM SOLVING SALES LEADERSHIP

2.8 Standards of Managerial Effectiveness

A. STAFF DEVELOPMENT

1. Staff Training
1.1 Job orientation is given to all employees immediately upon hiring.
1.2 Employees are continuously updated of changes in company
policies, products, services and other pertinent information concerning
their jobs.
1.3 Staff training is responsive and relevant to the staff's training
needs.
1.4 Formal training is reinforced by on-the-job coaching and
instructions.
1.5 Training needs analysis is conducted before designing a training
plan.
1.6 Employees are given opportunities to grow and develop in their
career through programs for professional advancement.
1.7 Never recruits are gradually but effectively trained to become
productive and efficient service staff.
1.8 There is consistent monitoring of application of learning; errors
are identified and corrected as they arise.
 1.9 There is a clear, convincing and well-organized delivery of
instruction; and a well-organized lesson plan is followed.

2. Employees' Morale and Welfare

2.1 Employees are appreciated and praised for their efforts and good
work.
2.2 Employees are treated fairly and uniformly, without prejudice or
discrimination.
2.3 Employees are given due respect; they are never humiliated or
insulted
2.4 There is trust and confidence in the employees’ capacities and
abilities.
2.5 Employees are provided with a safe working environment and
safety devices.
2.6 Employees' right for self-expression is respected.
2.7 Personal concerns, and grievances of staff are acknowledged
listened to, given time and attention.
2.8 Employees feel at ease in approaching their superior.

3. Teamwork
3.1 There is mutual trust between the manager and his subordinates.
3.2 Full support and cooperation of employees are exhibited in the
implementation of rules, policies, programs, etc.
3.3 Differences in ideas and opinions are confronted, clarified, given a
hearing and not suppressed.
3.4 There is an open and honest expression of ideas in the team.
3.5 There is a commitment to team goals and strategies.
3.6 There is a clarification of roles and expectations among members.
3.7 Inter-department coordination and collaboration is evident.
3.8 Officers and staff have a healthy interaction.
3.9 Proper decorum and proper channels are observed in dealing
with other departments; no one is by-passed.

4. Communications and Grievance Handling

4.1 Meetings are conducted regularly to discuss/resolve operational
problems.
4.2 Hearsays or gossips are never tolerated or entertained.
4.3 Diplomacy and tact are observed in dealing with infractions,
complaints and grievances.
4.4 Empathic listening is demonstrated during corrective interviews
and counseling.
4.5 There is sensitivity to the feelings and self-esteem of
subordinates; judgmental remarks are avoided.
4.6 Written correspondence like memos, reports, etc. are prepared in
proper format, are accurate and complete with details.
 4.7 Every employee is informed of what is expected of him; and is
told about his progress on the job.
4.8 Confidential matters are kept secret, never divulged to other staff
4.9 Employees are made to understand the significance of their job
and the rationale for orders, instructions, policies, and procedures.
4.10 Employees are consulted on matters affecting their performance.
4.11 There is a smooth flow of communications and coordination
among officers of other departments.
4.12 Orders and instructions are expressed with clarity and diplomacy.
4.13 Oral communications are spontaneous.
4.14 Assertive communication is demonstrated in expressing and
fighting for ideas and convictions. There is an open and objective
discussion of ideas and differences.
4.15 There is objectivity in handling grievances of employees; the boss
listens to reasons, investigates and takes proper action.

5. Leadership, Character and Integrity

5.1 The respect of staff towards their superior is evident; they look up
to him as a model.
5.2 There is evident compliance to his orders, instruction and to
company policies.
5.3 There are methods employed in building people's self-confidence
like affirmations, non-threatening statements.
5.4 Personal grudges and personal biases do not influence the
managers decisions and actions.
5.5 There is participative decision-making; the officers and the staff
are ne them allowed to express their ideas and sentiments on
matters affecting them and are involved in setting goals and
strategies.
5.6 High morale, commitment and contagious enthusiasm are
manifested.
5.7 Win-win orientation is demonstrated; no self-serving interests; the
interest of the company and the employees are given equal weight.
5.8 The manager gives credit where credit is due.
5.9 Misconduct/deviation is never allowed to go unnoticed and
uncorrected.
5.10 There is rational disposition in dealing with operational concerns:
the facts are always gathered and analyzed as basis for decisions
5.11 Initiative and resourcefulness are exhibited in searching for
remedies to problems spotted on the job.
5.12 There is a clear indication of creativity and imagination; there is a
continuing search for new ideas and strategies to improve service
and operations.
5.13 The right job is delegated to the right person at the right time.
 5.14 The rationale or justification for orders and instructions is always
explained.
5.15 Any employee who is in trouble or needing assistance is given
sufficient support.
5.16 The leader serves as a true model. He practices what he teaches
and does not violate the rules and policies that he enforces.
5.17 The leader does not bear grudges nor allows sentiments to affect
his objectivity.
5.18 He maintains sobriety and composure in dealing with erring
employees and with difficult situations.

6. Employee Discipline
6.1 The leader is able to generate good discipline among his people
as evidenced by consistent compliance to house rules and
performance standards. Misconduct reports if any, are very minimal,
if not eliminated.
6.2 The leader is able to spot infractions as they arise, records them
and makes the necessary misconduct report.
6.3 No erring employee is convicted without trial. Proper investigation
is conducted; judgments and decisions are based on facts and not
on mere hearsay.
6.4 Corrective or disciplinary interviews are conducted in accordance
with the rules and principles of good discipline.
6.5 Errors and infractions are corrected as they arise.
6.6 Company policies on discipline are strictly complied with.
6.7 Sanctions are enforced uniformly, fairly and consistently for all
offenses committed under the same circumstances.

7. Staff Recruitment
7.1 There is a detailed set of job specifications that describes the
desired qualifications for each position.
7.2 Selection is based on job specifications and not simply left
discretion of the manager.
7.3 No misfit is recruited on the job. Only qualified candidates are
considered for employment.
7.4 Effective testing instruments and selection procedures are
administered in assessing the qualifications of candidates.
7.5 No employee is made to report without the necessary pre-
employment requirements-health clearance. NBI clearance, etc.
7.6 Administrative policies on recruitment are consistently complied
with in the selection process.
7.7 No favoritism and discrimination are demonstrated in the selection
candidates.
 7.8 A background investigation is conducted before placement
especially for critical positions like that of managers and other
officers.

B. TECHNICAL AND OPERATIONAL

The existence of the following conditions in the manager's work area

and department speaks of his administrative and technical efficiency

1. Quality and Productivity

1.1 Quality and productivity standards for service, production, other
operational areas are clearly defined and documented in the
Operations Manual.
1.2 Inspection and monitoring checklists containing quality and
productivity standards are used for periodic monitoring of
employees' performance.
1.3 Quality standards are consistently complied with as indicated in the
monitoring report of managers and /or performance audit reports.
1.4 The volume and speed of work of employees do not fall below the
productivity standards indicated in productivity reports.
1.5 There is no evidence of backlog.
1.6 Reports and other required documents are submitted on or before
the deadline or set schedule.
1.7 There is minimal overtime on record.
1.8 Reports containing the required data are thoroughly and accurately
prepared

2. Safety
2.1 There is no record of accidents or injuries in the department or unit.
2.2 Accidents and injuries when they happen, no matter how minor, are
recorded and reported
2.3 The people responsible for causing the accidents are given
disciplinary action.
2.4 Safety gloves and other safety devices are provided for; the manager
always checks their proper and continuous usage.
2.5 Preventive and emergency procedures are established and made
known to all.
2.6 The employees follow safety rules and instructions in performing
their job
2.7 All the employees are trained on the use of fire-fighting equipment.
2.8 The work environment fee from safety and security hazards like
dangling wires, open outlets and slippery floors.
2.9 Man-hours lost by accidents do not exceed the calling of ____%

3. Sanitation
 3.1 Garbage cans are covered, lined with plastic sheets bags and
disposed of regularly.
3.2 The work area is always kept clean an orderly, fixtures are in their
proper arrangement and location
3.3 Proliferation of posts is non-evident
3.4 No evidence of food poisoning or illness of guest’s that may have
resulted from unsafe foods and unsanitary practice.
3.5 Equipment used by guests’ like utensils, glasses, linen, etc. are
sanitized using sanitizing detergents.
3.6 Unsanitary practices are avoided by the production and service crew.
3.7 Employees consistently comply with standards of personal hygiene
and grooming.

4. Cost and Materials Management

4.1 There is reasonable budget for supplies, equipment and other items.
4.2 Accurate par stock level is established and maintained.
4.3 Actual consumption is always monitored and variances are recorded
in a budget variance report.
4.4 Consumption and expenses are always within the allowable budget,
food cost is within the allowable food cost percentage.
4.5 The various equipment are always checked for cleanliness and
condition, subjected to periodic cleaning and preventive maintenance
4.6 Equipment breakdown and the wear and tear of equipment are
reduced to the minimum if not prevented.
4.7 Cost of labor does not exceed allowable ceiling, productivity of staff
is maximized.
4.8 Leftovers in the kitchen are recycled when appropriate.
4.9 Spoilage, waste, losses are reduced to the minimum, if not totally
eliminated
4.10 Available time saving devices are utilized to save on cost
4.11 Pilferages are non-existent.
4.12 Effective control systems, policies and procedures are always
enforced.
4.13 Energy and utilities are reasonably consumed, lights and air
conditioning are turned off when not in use.
4.14 Purchases and orders/requisitions are fully justified and within
budget
4.15 No unrecorded and unaccounted losses, damages or pilferages
exist.

5. Plans, Strategies
5.1 Realistic, specific, measurable goals and targets are established.
5.2 Appropriate strategies are designed to attain goals and targets.
5.3 Operational requirements are accurately identified and address.
 5.4 Potential problems and threats are anticipated and contingency
action plans are established to prevent or minimize undesirable
consequences.
5.5 Operational problems and concerns are properly identified and
analyzed before action plans and strategies are designed.
5.6 There is a system of monitoring progress against action plans,
targets such as sales reports, accomplishment reports, variances,
etc.
5.7 Variances and performance gaps are identified, analyzed and give
appropriate remedies.

6. Work Systems
6.1 All critical tasks in the unit/outlet are properly identified and
distributed.
6.2 A division of labor is clearly defined along with the responsibilities
and duties of each unit and unit head.
6.3 The duties/accountabilities of staff are clearly defined and
communicated.
6.4 The lines of authority are delineated, along with the power, authority,
and span of control and boundaries of those in command.
6.5 The steps and procedures for each task are described in detail in a
job breakdown.
6.6 Productivity and quality standards are clearly defined, discussed and
agreed-upon with unit heads and staff.
6.7 Work systems make way for prompt and efficient delivery of services;
unnecessary delays are prevented; the system works for the
convenience of customers and staff.
6.8 Effective time management; priorities are in order, there are no time
wasters.
6.9 Flow of operations is systematic and organized; there is no room for
confusion or buck-passing.

7. Sales and Output

7.1 The sales attainment for each month does not fall below target.
7.2 2The targeted volume of production is attained.
7.3 The profit margin is maintained.
7.4 The targeted covers, average check, occupancy, etc. are attained.
7.5 All required reports are prepared and submitted on time.
7.6 Effective Innovations, improvements in service and operational
procedures are introduced.
7.7 All assigned tasks and special assignments are completed on time.

8. Customer Satisfaction
8.1 There is no record of serious of critical customer complaints.
8.2 There are positive customer comments regarding food and service.
 8.3 Customers are satisfied with the way their complaints are handled.
8.4 The service is delivered promptly, customers are hot made to wait for
long periods.
8.5 Repeat patronage is evident.
8.6 The needs and expectations of customers are identified and
satisfied.
8.7 Customer comments and suggestions are accepted and appreciated:
there is no show of defensiveness or resistance.
8.8 The customers are given personalized and courteous service,
diplomacy maintained at all times.
8.9 The staff exhibits tolerance for difficult and problematic customers.
This is evidenced by their composure and tactfulness.
8.10 Cheerful and pleasant disposition is evident among service
personnel. Customer feedback is always solicited, and given action.
8.11 Customer feedback is always solicited, recorded and given action.
8.12 An effective problem-solving mechanism on matters of customer
service is implemented, i.e., information dissemination and
coordination with the right department for corrective measures,
follow-ups, etc.

WORKSHEET 2.2
Assessment of Managerial Effectiveness
1. Study the set-up of a particular hotel resort, food outlet or food chain.
Based on the company's structure, find out the particular position
responsible for each of the given KRA. Is it the manager or department
head, the Personnel or HRD Manager, line supervisor or section head or
any other official?
__________________________________________________________
__________________________________________________________
 __________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________

2. Make an assessment of a manager's performance using the above

KRA's and standards as a basis for assessment. You can directly
interview the concerned officer and /or get information from his superior
and subordinate.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________

3. If you happen to be the manager or supervisor of a hotel, food outlet, do

the following:

A. Identify in the above-mentioned KRA'S and indicators those that apply

to you based on your job description.
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________

B. Make a personal assessment of your administrative efficiency and

productivity using the applicable standards.
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
4. Prepare an assessment report.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________

5. Based on your findings, identify the training needs of the manager you
evaluated.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________

6. If you are the manager or supervisor evaluating yourself, make a detailed

line-up of training that you feel you need to undertake to become more
effective.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
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