Unit 1

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History and Development

UNIT 1 HISTORY AND DEVELOPMENT OF of Food Service System

FOOD SERVICE SYSTEM


Structure
1.1 Introduction
1.2 Food Service Establishments
1.2.1 History and Development
1.2.2 Factors Affecting Development
1.2.3 Recent Trends
1.3 Types of Food Service Establishments
1.3.1 Commercial Establishments
1.3.2 Non-commercial Establishments
1.4 Understanding Management
1.5 Approaches to Food Service Management
1.5.1 Traditional Approach
1.5.2 Classical Approach
1.5.3 Scientific Approach
1.5.4 Management by Objectives
1.5.5 Systems Approach
1.5.6 Quantitative Approach
1.5.7 Behavioural and Human Relations Approach
1.5.8 Contingency Approach
1.5.9 Just-in-Time
1.5.10 Total Quality Management Approach
1.6 Managing an Organization
1.6.1 Processes Involved
1.6.2 Principles of Management
1.6.3 Functions of Management
1.7 Let Us Sum Up
1.8 Glossary
1.9 Answers to Check Your Progress Exercises

1.1 INTRODUCTION
This is the first unit of the Course on Entrepreneurship and Food Service Management
and deals with the history and development of food service organizations, the factors
that have played important roles in their development and today’s continuing trends.
When we think of a food service unit we think of hotels, restaurants, lunch rooms,
fast foods operations, catering services, schools, hospitals, institutional food services,
industrial and military food services and vending machines. All these places of food
services have become popular because of number of factors. These include:
• Eating out has become a necessity
• Convenience and quick service provided by an eatery
• It is steadily replacing drudgery of cooking at home
• Both the couples being engaged in earning they are forced to eat out
• Office goers, professionals prefer fast food joints to going home for lunch.
Different types and sizes of food service establishments are available today –
commercial, non-commercial, home-based. These different types of establishments
are covered in this unit.
9
Entrepreneurship and Food In addition, the different approaches which catering managers have used from time
Service Management to time for managing their establishments have been dealt with, keeping in mind the
research efforts that led to management thought over the years. Traditional, as well
as, modern management techniques have been presented.
Lastly, the processes involved in managing an establishment or institution have been
introduced to enable potential managers to learn about goal-setting, forecasting,
making decisions about resources, communicating, decision making and leadership
qualities necessary for goal achievement.
Objectives
After studying this unit, you will be able to:
• define a food service establishment,
• trace the history and development of food service institutions,
• identify the factors that led to their development,
• discuss the different types of establishments that exist and their recent trends,
• describe the traditional and modern approaches to management that can be used
in an organization, and
• explain the principles and functions of management and the processes involved
in setting and achieving goals.

1.2 FOOD SERVICE ESTABLISHMENTS


As the name suggests, food service establishments are places set up primarily to
plan, prepare and serve food to a large number of people, who may be from different
regions, cultural backgrounds and represent various socio-economic levels of society.
The food is prepared and served in quantities far greater than those usually done in
homes and therefore they are also called food service institutions and vary from
small to very large establishments.

We shall begin our study about the food service establishments by first tracing the
history and development of these establishments followed by the recent trends.

1.2.1 History and Development


Historically food was served in large quantities in religious places for travelers or
pilgrims who needed rest and comfort on long journeys, which they performed
mostly on foot. In medieval times, quantity food production and service was considered
normal in abbeys in England and in dharamsalas in India. In fact, food services in
abbeys reached very high standards because the stewardship followed religious values
of discipline, love and free service to all who came for shelter and food. Similar
values were followed in the dharamsalas which were usually situated near places of
pilgrimage where people could rest for short periods and then move on. These
establishments provided food to sustain the hungry and the poor at fixed times and
to pilgrims who would donate money in return for the services provided and thus
sustain the activities of these shelters.

The factors which influenced the development of food service establishments are
discussed next.

1.2.2 Factors Affecting Development


A number of factors have affected the development of food service establishments
or institutions over time. These are presented in Figure 1.1.

10
History and Development
of Food Service System
Tradition and
Culture

n
Re

tio
Fe ligi

za
rv ou

ali
ou s

ob
r

Gl
Factors
in development

Royal Statu
gical
Technolo ent of food services
cem
Advan

s
So
c ial strial
C ha Indu ment
ng lo p
es Deve

Figure 1.1: Factors in development of food services

Let us review each of these factors.


• Tradition and Culture: Traditionally, eating outside the home was taboo, and
people who went out for long hours to work, always carried their food with
them. It was religion, tradition and culture that always brought people together
in large numbers to participate in mass prayers, celebrate festivals, and enjoy
social occasions such as marriages, births and other festivities, all of which
involved eating together.
The traditional langars or mass distribution of food after prayers in gurudwaras,
the distribution of prasada in temples, the breaking of fasts together during
Ramadaan in mosques and feasting after mass at Christmas are all evidence of
large scale food preparation and service from early times.
Tradition and culture dictate that every activity be marked by festivity, whether
it is a birthday of a God or Goddess, the birth of a child in a family, or whether
it is to seek the blessings of the Lord for prosperity in general. Even in
bereavement it is traditional not to let sympathizers go unfed, irrespective of
their numbers. People, thus find several occasions to get together in large numbers
to express their feelings of love and support and satisfy their emotional and
social needs.
Have you ever visited a temple or gurudwara and partaken prasada or langar?
If not, go and see how food is prepared and served in such large quantities with
so much efficiency and how people eat with relish taking food as a gift from
God. Experience the feeling.
• Religious Fervour: Religion has always formed the central core of life not only
in India but all over the world generating activities based on moral values as
mentioned in sub-section 1.2.1, and exemplified by missionary fervour and zeal
in an attempt to propagate love, comfort and justice in society. Food services in
abbeys of England reached very high standards because its stewards followed
religious values of discipline, love, free service to all who came for food and
shelter. This was followed in other parts of the world too.
Some outstanding examples are the Missionaries of Charity, Ramakrishna Mission
and Vedanta centers for education, health care and much more, The Red Cross
Society, Sri Sathya Sai Trust which has propagated through exemplary fervour,
zeal and practice the importance of free education and health care and the
necessity of making potable water available to one and all, besides other social
and religious activities. All these establishments have depended on public
donations for their work, being guided solely by their strength and faith in the
11
Entrepreneurship and Food Lord, generating confidence and moral values in people, who then come forward
Service Management to donate to their causes.
Innumerable festivals and celebrations too brought people together who actively
shared in performing activities necessary to produce and serve food at mealtimes,
to all present irrespective of their numbers or cultural and social background.
Large scale catering has today, become a norm as large groups of people world
over get together to work towards set goals and need to be fed in an organized
manner.
• Royal Status: Centuries ago royal households had a large number of inhabitants
to serve the royalty who were placed in a hierarchy and had established food
allowances which were fixed according to their ranks and a large battery of staff
were employed for food preparation and service. The kitchens of these medieval
households showed high standards of hygiene with respect to food handling,
preparation, service and waste management techniques which largely depended
on natural recycling methods.
In India, the states were governed by royalties who resided in palaces and were
morally involved with the welfare of their states, which often competed for
excellence in development, uplift and care of the masses. The kitchens catered
to an endless stream of people including family members and guests, who were
fed from the palaces of the kings. Status differentiation was however evident,
those of higher economic status distributing food and durables to the have-nots.
Today, these princely states are only tourist attractions and mass community
feeding is restricted to places of worship or public places, clubs and hotels
where festivities may be celebrated. The catering was thus provided according
to the menu requirements of the host, whether an individual or an organization.
• Social Changes: In earlier days, the social aspects of food and eating were
satisfied within the households or family since the joint family system was in
vogue and each family comprised of at least 6-10 members. Being related
through their genes, love and care and working together for the achievement of
family welfare and its financial and other goals, their social needs were taken
care of amicably. The gradual shift to nuclear units and government policies of
small family norms deprived the family of its internal social interactions, which
have now shifted out to clubs, hotels, restaurants and the like.
The catering industry and entrepreneurs cashed on the changing needs of the
small family who could no longer entertain lavishly at home. Caterers offered
total event management as for kitty parties, birthday and marriage celebrations
and other festivities at virtually any location selected by the host. Social
organizations such as city clubs, athletic and sports clubs, country clubs all host
festive and sports events on a large scale, for which they are equipped with
respect to food production and service facilities. Visits to temples and religious
places too increased as social rather than purely religious events organized for
the explicit purpose of worship.
• Industrial Development: Industrialization brought in its wake, the need to feed
employees in factories, which led to the development of industrial canteens and
lunchroom facilities. Office goers too needed such facilities and office canteens
appeared on the scene. These have taken different forms with time and extend
from full to mini-meals and snack facilities that provide hot and cold meals
delivered on order to customers on trays or in boxes as individual or bulk-
packed meals.
An offshoot of industrialization was the development of roads and transport.
Industrialization also led to the creation of job opportunities for men and women
leading to a number of lifestyle effects such as migration from rural to urban
12
settings in search of more lucrative jobs. This resulted in women spending less History and Development
time at home and therefore devoting less time and energy to meal preparation. of Food Service System
In addition, domestic help became scarce and entertaining at home decreased
enormously.

The development encouraged tourism, travel and eating out trends and
consequently led to the creation of varied types of catering options to offer
solutions to new needs in the form of commercial, semi-commercial such as
coffee shops, cafes and roadside motels and mid-way establishments to feed,
serve and rest the traveler.

Today, a large percentage of the population eat out at least once a month, and
the trend for home delivery of meals and snacks is also on the rise as evidenced
by the expansion plans of existing food services and a rise in the number of
multinational catering franchises showing interest in the Indian market.

In addition, a number of entrepreneurs are taking to supplying home cooked


food or single items for delivery including specialty foods of the different regions
and countries of the world. Outside catering has come of age in every possible
field of event management, entertaining and business conferencing.

• Welfare and Rehabilitation: The focus of the government was gradually drawn
to the large population not only as pure numbers, but their proportions in terms
of unemployment, access to literacy and educational facilities, medical and
healthcare problems of normal and handicapped citizens. To add to this was the
increase in crime rates and prisons swelled too, where proper food was needed
to feed the prisoners. This led to an increase in welfare and rehabilitation centers
and the concept of institutional food services came into the limelight to address
the needs of inmates of all kinds of institutions whether orphanages, boarding
houses, hospitals or others.

• Healthcare: Increase in health, medical care and welfare schemes gave rise to
hospitals, clinics, crèches, old age homes and welfare centers within which it
became necessary to operate catering facilities to fulfill the needs of patients,
staff and visitors.
In addition, welfare services were planned by the government to help eradicate
hunger and malnutrition in deprived areas through local public health centers,
anganwadis and schools. This led to the development of mobile catering and
health units in rural and distant areas to take care of health needs through
supplementary feeding and mid-day meal programmes for school children.

The need to take the food to the people provided an impetus to entrepreneurs
to start mobile and contract catering services even in the urban cities under
licensed schemes.

• Education: With more and more families sending children to schools, colleges
and universities, residence halls, dormitories and hostels providing boarding and
lodging facilities sprang up on the premises as a matter of necessity. When the
demand increased further, men, women and youth hostels came into existence.
Snack bars and cafeterias grew on campuses to provide food services to day
students, staff and visitors who were not permitted to use hostel facilities on a
regular basis.
School education also became distanced from homes and canteen and hostel
catering facilities became a necessity for the young and active clients. For
government schools where children could not pay for their food in canteens,

13
Entrepreneurship and Food subsidized mid-day meals providing at least 1/6-1/5th of children’s daily requirements
Service Management of essential nutrients was initiated. This scheme has yet to cover all school
children but the intention was to try and increase attendance in schools and
eradicate malnutrition to the extent possible, while educating them in the process.

• Unemployment: With the population of our country well over the one billion
mark, unemployment is a real problem even among the educated youth let alone
those who have little or no access to literacy or schools of learning. It is for
these masses that food vending provided the means of earning a living and gave
impetus to self-employment. Vending and other forms of self-employment is a
common sight in most residential localities where single food items in the form
of hot tikkis or two item meals like chana bhatura, dal roti and the like what we
call as street foods are made freshly and sold on demand. The main ingredients
are usually pre-prepared to the extent possible and then finished on demand.
Having reviewed the various factors which have lend to the development of
food service establishments, next we shall focus on recent trends in this area.

1.2.3 Recent Trends


National and international cooperation in the fields of trade, commerce, education and
sports have led to a spurt in conference catering, group living and feeding facilities.
This has brought people together from different geographical and cultural backgrounds
enabling catering to progress towards specialty food services.

If you look around when you go out to eat, it is common to find restaurants specializing
in South and North Indian food, Chinese, Mexican, Taiwanese, Japanese, Lebanese
and other regional and international cuisines. We are sure you have eaten at one of
the specialty restaurants. With globalization a modern form of self employment has
emerged with national and multinationals joining hands in the catering arena. This
form known as franchising comes with the total package of training to maintain the
standards of the parent company in terms of establishment design, production
procedures, raw material, product and service quality, accounting procedures and the
lot. Some restaurants and fast food outlets reaching out all over the country are
Nirulas, Moti Mahal, Haldiram among the national chains and McDonalds, Pizza
Hut and many more among the International chains.

Entrepreneurial catering ventures have developed and are seen in various forms as
take home meal counters, home delivery services and the like. Today women
entrepreneurs with special food preparation and management skills are working from
their homes to augment their income and deliver home made meals to those who
cannot spend that much time in their own home kitchens.

Technological advancements in catering equipment technology, communications and


accounting practices has made mass catering faster, more streamlined, less tiring and
improved in quality, safety and variety. Today, railway and flight base kitchens can
produce thousands of meals for travelers of various requirements around the globe.

We have entered the information technology era and the recent trends developing are
on-line catering, whether to order meals, download menus for ordering, examine
catalogues for purchasing equipment and so on, all at the click of the mouse. One
can visualize information technology (IT) being used for catering services in a
widely progressive manner in the future even by entrepreneurs supplying lunches to
offices taking orders through their networks and coordinating supplies as required
irrespective of location of the kitchens. The e-dabbawala is not far, as conceptualized
by the Director of e-business solutions at their Bangalore Labs. In time it is
expected to deliver sumptuous meals anywhere anytime.

14
Research and development efforts in the area of food processing and related technologies, History and Development
have already made it possible to package cooked ready to eat meal items that can be of Food Service System
picked off the supermarket shelf, heated or eaten as such. Have you seen such
products in the market? Look for them under the brand name of Taste bite or MTR
and see for yourself how easy it has become for institutions and householders to
present a meal to unexpected guests.
Tourism and travel is on the increase as modes of travel have graduated from the road
to sea and air. Food service establishments have tried to keep pace with the demand
of the traveler according to his or her needs through making night lodges available to
those on long pilgrimages to catering facilities on luxury bus, trains to sea and air liners.
Today catering institutions form the backbone of the tourist trade and are important
foreign exchange earners. The only drawback is that the industry is characterized by
a large number of small services which have mushroomed in response to the needs
of individuals and groups and have therefore not developed in an organized manner.
Such food establishments include the chai (tea), paan and chaat stalls, ice cream
parlours, vendors offering various food items or meals, fast food corners and mobile
services.
Recent developments in sports facilities, both leisure and competitive have also
generated special feeding requirements of clients, which pose challenges for food
and service providers at these locations. With the introduction of adventure sports
such as deep sea diving, mountaineering and so on, people are now being catered to
through constant research and development efforts in food and material sciences.
Today, ready-to-serve and eat foods of every region in the country, are available in
retort pouches that can withstand sterilization temperatures of 121°C without affecting
the quality of the food.
You must have traveled recently. Which food services did you see or use for meals
and refreshment on the way? Make a list and we will talk about them a little later.
Of course, you would not have gone on a space craft, but do you know that the food
industry also tries to meet the special needs of the astronauts and the military posted
in mountainous regions at freezing temperatures, and prepares light weight food
packages for them. You may recall studying about the space food systems and meals
in the Advance Nutrition Course (MFN-004) in the Unit 18 based on Nutrition
Requirement for Special Conditions.
Another important trend in recent times has been the promotion of national and
international trade and cooperation in every field. This has led to a spurt in conference
catering, group living and provision of feeding facilities for people with varying
geographic and cultural backgrounds. The exposure to different foods of various
countries has created a demand for specialty catering services which are now becoming
a common sight in the form of food service establishments serving regional foods.
You would have seen or even eaten at Chinese, Mexican, South Indian, North Indian
or even Japanese food services and fast food restaurants in the country.
While the type and number of food service establishments are increasing everyday,
the need to focus on relatively small scale establishments, feeding 50-200 customers
a day, in terms of providing professionally planned services is great, in order to
ensure a fair deal to customers in terms of health, satisfaction and enjoyment of food.
In India, with over 20 million middle class consumers and an increasing number of
catering training institutions, the scope for catering entrepreneurial development
holds a great promise. At the same time, this would increase employment opportunities
for the unemployed youth of a country whose population has already crossed the one
billion mark.
With a brief review on the history, development and the recent trends seen in the
food service establishment, let us now learn about the different types of food service
establishments.
15
Entrepreneurship and Food
Service Management 1.3 TYPES OF FOOD SERVICE ESTABLISHMENTS
Food services basically fall into two categories, commercial and non-commercial. Let
us see what do both these entail and what are the differences between them.

1.3.1 Commercial Establishments


Commercial establishments are those that are set up mainly with a profit motive and
sell food and services for a price, irrespective of their size. They range from the
smallest tea stall, roadside eating place or dhaba to the coffee house, cafeteria,
restaurant, motel and hotels, the latter providing a wide range of dining and service
facilities. The customers who visit such establishments eat out for different reasons
such as hunger and thirst, pleasure, entertainment, leisure, business meeting and so
on. They are therefore willing to pay for the food, service and comfort received, thus
providing for the profit levels of these establishments as planned.

Other type of commercial food services found today are contract catering services.
These operate on behalf of anyone who wishes to celebrate an event according to
their own menu; at any place they want, whether in their home, in a lawn or a hired
hall in the locality or a community center. You must have seen such events as
marriages where all the arrangements are made by caterers, according to the menu
decided by the host. Can you think of any other functions you have attended where
the food is not prepared and served from the home kitchen but outsiders come and
arrange the food and the service and then also clear up after the party or function?
It is, therefore, clear that food establishments that are set up to make a profit from
the operations are called commercial organizations. Food services that make more
than 25 per cent profit fall into this category.

However, there are small establishments that do not have very high costs of staff
such as roadside establishments, vendors, or mobile services. These therefore, charge
less from customers and make profits within 15-25 per cent. Such establishments
are called semi-commercial services as they do not spend much money on furniture
or decoration to attract customers and thereby lower their total costs of operation.

From commercial, to semi-commercial, let us next review the non-commercial


establishment.

1.3.2 Non-commercial Establishments


Non-commercial services are those that have been set up with a social objective and
food preparation and service are only a complimentary part of the care giving aspect
of the establishment. Some examples are government hospitals, schools, prisons,
orphanages, old age homes and the like. Such institutions may however, carry on
activities that will enhance their income or charge a fee for services rendered from
those who can afford to pay for them.

These establishments cover all their expenses either through government grants or
subsidies or through public donations and generally do not aim at profits from sale
of the food and services provided. Financially they are said to breakeven, although
they may in part charge a price from those inmates/beneficiaries who can afford to
pay, such as for private ward patients in hospitals.

Having gone through the discussion so far, let us take a break and recall what we
have learnt so far by answering the questions included in the check your progress
exercise 1.

16
History and Development
Check Your Progress Exercise 1 of Food Service System
1) Describe the term food service establishment. Highlight the factors influencing
its development.
……………………………………………………………………………..
...…………………………………………………………………………..
……………………………………………………………………………..
2) List the food service establishments you have seen on the way while traveling
from home to your place of work, leisure or play. Try and write down against
each, the type of establishments you think they are. For example: Restaurant
— commercial.
……………………………………………………………………………..
……………………………………………………………………………..
……………………………………………………………………………..
3) How many times do you eat outside your home in a month? State the reasons
why you eat out. Tally your responses with what you have learnt.
……………………………………………………………………………..
……………………………………………………………………………..
……………………………………………………………………………..
4) Match the food service establishments in column A with the reasons for their
development given in column B.
A B
a) Dhaba i. Education
b) Restaurant ii. Technology
c) Canteen iii. Road development
d) Air Catering iv. Tourism
e. Commercial Establishment v. Entertainment/leisure
5) Define a specialty food service establishment. Give three examples of such
services.
……………………………………………………………………………..
……………………………………………………………………………..
……………………………………………………………………………..
……………………………………………………………………………..

So, that was easy. It is important to understand that running a food service unit is
not an easy task. It requires management skills and knowledge. Next, we shall focus
on what is management and the approaches to food service management.

1.4 UNDERSTANDING MANAGEMENT


Management is classified and defined by different authors in the perception of its use.
Let us actually come to define the term management now.

Allen states that the definitions and interpretation of management vary widely. Some
see management as a complex of administrative and personal skills. Others view it
17
Entrepreneurship and Food as a technique of leadership. Still others define it as a means of co-ordination and
Service Management cooperation.

According to Drucker, it is management that enables the organization to contribute


a needed result to society, economy and the individual. Mary Parker Follett states
that management has been called the art of getting things done through people. It
calls attention to the fact that the manager achieves organizational goals by arranging
for others to perform whatever tasks may be necessary and not by performing the
tasks themselves. Management is a form of work that involves guiding and directing
a group of people towards organizational goals or objectives.
Haimann, Mc Farland and other writers have explained the term “management” in
three different ways:
As a noun, it refers to the individuals who exercise leadership in an organization,
i.e. the manager.
As a process, it refers to planning, organizing, staffing, directing and controlling.
As a discipline, it refers to a body of knowledge and practice.
According to the Functional School, management is defined as an integrating process
designed to achieve organized and purposeful result. It is the process by which the
manager creates, directs, maintains and operates purposive organizations through
coordinated and cooperative human effort.

According to Human Relations School, management is a social process because


management actions are concerned with relations between the people. Lawrence A.
Appley cites management as personnel administration. According to Drucker
management is a task of making people capable of joint performance, to make their
strength effective and their weakness irrelevant.

According to System and Contingency School, management is an open system


consisting of interacting and interdependent parts, having a variety of goals in other
words the System theory. Management is also situational, that is, there are prevailing
environmental conditions according to which everything should be managed, termed
as Contingency theory. Management is a process of using resources to achieve goals
through various interacting elements including problems, needs, wants, values,
decision making, planning, implementing, communication and feedback, all operating
within an environmental context.

According to the Decision making School, management is a decision making body,


a rule making and rule enforcing body. According to Drucker, the life of a manager
is a perpetual choice making activity. This school underlines the role of thought
process in taking decisions, which are directed towards achieving goals. Thus
management is defined as a process of decision-making and control over the action
of human beings for the explicit purpose of attaining the predetermined goals.

Management is identified as a body of systematized knowledge, based on general


principles, which are verifiable in business practices. If management is a profession,
then the key problem is to decide what a manager does. Strong answers by saying
that a manager plans, organizes, delegates motivates, directs and controls. These are
some of the aspects of his work. He adds foresight, order, purpose, integration of
effort and effectiveness to the contribution of others. Therefore, we can say that
management is a process of planning, organizing, delegating, leading and
controlling the efforts of the organization members and by using all other
organizational resources to achieve the stated organizational goal. Gullick has
suggested POSDCORB an acronym for management created from the names of
seven functions, which include planning, organizing, staffing, directing, coordinating,
reporting and budgeting.
18
Now that we have a clear view on what is management, let us review the approaches History and Development
to food service management. of Food Service System

1.5 APPROACHES TO FOOD SERVICE MANAGEMENT


Management thinking has undergone a number of changes in the last few decades
resulting in adoption of approaches that can be flexibly applied to management
situations in the fast changing business environment of today.

Management thought in India gained momentum after independence but developed


on the lines of western approaches followed in U.K. and U.S.A., where sociologists
have increasingly focused attention on various aspects of organizations studying
their structures, managerial practices, and people’s behaviour at work and why some
organizations succeed and others do not.

Manager’s have followed a number of approaches while managing their establishments,


depending on their own personality traits, position in the establishment and leadership
and decision making qualities. Further, the science of management has changed
through the decades to suit the changing needs and challenges of the business
environment. We will now see what approaches were followed and how they changed
over time. We begin with the traditional approach.

1.5.1 Traditional Approach


Traditional management was based on the rule of thumb principle which assumed
that whatever food and drink was prepared and offered to the customer would be
sold because food is a necessity for survival. Thus, management of food production
and service became a combination of certain cultural factors adapted to the
contemporary world, both through its own inertia and its relevance to the organization
and its environment. This combination often referred to as ethics determines actions,
decisions and behaviour of people at work and their role in an organization.

The traditional ethic is clearly depicted by the Confucian philosophy which originated
in China and spread to Korea and other countries. This defines five basic relationships
between people by which society can be organized at the social, political and economic
levels, as indicated in Figure 1.2. .

Master — subject
Husband — wife
Parent — sibling
Self — friends
Franchiser — franchisee

Figure 1.2: Five relationships at work in traditional management

Let us see what these relationships are and how they work in an organization where
a number of people interact at work.

Master-subject
This relationship is widely seen in catering enterprises where the owner is the sole
manager as in the case of small roadside establishments such as Dhabas, tea or
coffee shops, bakeries and so on. In such situations, the management style is
authoritative, and communication is one-way usually in a downward direction from
master to subject.

19
Entrepreneurship and Food Husband-wife
Service Management
Ventures started by couple’s exhibit this relationship in their management style which
shows male domination in management decisions in a traditionally male dominated
society. The advantage of this relationship is that it is based on love and understanding
and therefore division of work and effort is willing, participative and effective. The
skills are well used, the wife taking charge of food production and service while the
husband deals with external forces and activities such as purchasing, inventory
management, customer networking and finance. Examples of such services are
supply of meals to homes, offices, or take-away services from which customer picks
up the meals or food items, having ordered them telephonically in advance.

Parent-sibling
With this relationship, the establishment expands with the family, its members
contributing to the work according to their age, ability, skills which they gradually
learn from the parents on-the-job. Unity, loyalty and goal focus is assured because
of familial bonds between the members of the organization, which may be a cafeteria,
contract catering business, specialty or other restaurant.

Self-friends
Management thinking changed with time and greater investments were needed. This
was achieved by extending family businesses by joining with friends who exhibited
mutual loyalties, and were willing to share responsibilities of a business in terms of
partnerships for investment, risk and profits alike. The characteristics of this
relationship were care, concern and mutual respect which formed the basis of success
in running a food service organization such as a motel, hotel, lodge, hostel or
restaurant in partnership.

Franchiser-franchisee
This represents a contractual relationship between one organization and another, the
franchiser allowing the use of its established trade name in exchange for royalty
payments. The franchisee was however, trained by the former to ensure that standards
of food and service were maintained under the given trade name irrespective of the
location of the newer enterprise. Examples of such enterprises are Nirula, Pizza Hut,
McDonald, Sagar Ratna, Udipi restaurants and so on.
The traditional management arrangements, as discussed above, although still practiced
in some establishments, have gradually undergone changes resulting from behavioural
and social research on groups at work. The different approaches that thus evolved
are discussed as practiced from time to time.

1.5.2 Classical Approach


In the 1800’s when industry was being developed, child workers were employed who
worked up to 13 hours a day, even in England, and yet lived in poor conditions.
Classical approaches to management at the time treated productivity as a purely
engineering problem. It was Robert Owen who first conceived the manager’s role as
that of a reformist, because he felt that improving working conditions of employees
would lead to better production and profits. He truly believed that the best asset for
any manager was his workforce. Owen practiced his beliefs on his own workers by
reducing their hours to 10½, stopped employing children under 10 years of age and
started rating daily performances. In this way he instilled pride in people for their
achievement, discovered problem areas and introduced competition. Gradually
management skills began to be taught instead of only technical ones shifting the
focus from engineering to people at work.

The Classical organization theory resulted from the need to find guidelines for
managing complex organizations and Henri Fayol was the first to systematize them.
20
According to him, sound managerial practice falls into patterns that can be identified History and Development
and analyzed. This gave rise to the classical bureaucratic model that was followed by of Food Service System
managers in establishments. Many transitional theories with slight modifications followed
which were referred to as neo-classical approaches. Let us review this approach.

Neoclassical approaches
Neoclassical approaches evolved as a result of experimentation with improvements
tried by managers using human relations and behavioural approaches. Two theories
were developed by Douglas McGregor known as Theory X and Theory Y, which
were based on two sets of assumptions about the nature of people.
The traditional assumptions included in Theory X were that:
• Human beings have an inherent dislike for work and will avoid it if they can.
• Most people need to be coerced, controlled, directed and or threatened with
punishment to get them to put in enough effort to achieve organizational objectives,
and
• Human beings prefer to be directed, wish to avoid responsibility, have little
ambition and want security.
Theory Y assumptions were stated as:
• The expenditure of physical and mental effort in work is as natural as play or
rest.
• External control and threat of punishment are not the only means of producing
effort, and people will exercise self-direction and self-control to achieve objectives
or goals to which they are committed.
• The degree of commitment is proportionate to the size of rewards associated with
their achievement.
• Average human beings learn, under proper conditions, not only to accept but also
seek responsibility.
• The capacity to exercise a high degree of imagination, ingenuity and creativity in
the solution of problems, is widely distributed among people, and
• The potential of people is usually only partially utilized.

Now that you have gone through the two theories, can you suggest what the difference
between the two theories is? Write down the difference and tally your response with
the differences highlighted next.

Differences between the two theories


Theory X is pessimistic, static, and rigid and the control is external being imposed by
the superior. Theory Y is optimistic, dynamic and flexible, and emphasizes self-
direction and the integration of individual needs with those of the organization. There
is little doubt that each set of assumptions will affect the way managers perform in
any establishment.

Some important distinctive features of classical & neoclassical approach are highlighted
in Table 1.1. Going through this table you could also differentiate between the two
approaches.

21
Entrepreneurship and Food Table 1.1: Points of distinction in classical and neoclassical approach
Service Management
Points of Classical Approach Neoclassical Approach
Distinction
Focus Functions and economic Emotion and humans qualities
demand of workers of workers
Structure Impersonal and mechanistic Social system
Application Autocratic management and Democratic process
strict rules
Emphasize Discipline and Rationality Personal security and
Social demand
Work goal of Maximum remuneration Attainment of organization
worker and reward goal
Concept about men Economic being Social being
Content Scientific management, Hawthorne experiment,
administrative management human relation movement
and bureaucratic and organizational behaviour
management
Relation Formal Informal
Nature Mechanistic Organistic
Source: Rafiul M. & Sadrul M., 2013, Classical and neoclassical approaches of management, IOSR,
Journal of Business and management, volume 14, Issue 6, Bangladesh.

We will all agree today, that managers should behave respectfully to their employees
too, thanks to the research done and implemented by Owen, Fayol, and others in the
management field.
Next, let us review the scientific approach to food service management.

1.5.3 Scientific Approach


The scientific approach to management is also called Taylorism after its founder
F.W.Taylor who believed that management could be taught and practiced in a scientific
manner. He felt that an organization can be looked at scientifically from three points
of view – management, workers and the total organization.
Let us understand these three points of views.
Management
This approach assumes that management has always been interested in obtaining
control over the worker. This may not necessarily be for exercising power but to
increase output and efficiency. On the other hand, managers were happy to offer
definite rates and standards for jobs, which could be used to judge the performance
of people at work. This approach suggested by Taylor also helped managers to
calculate wage costs more accurately and avoid conflicts at work. In fact Henri Fayol
was the first to investigate managerial behaviour in organizations and systematically
grouped operations of an organization into six basic activities such as:
Security: This included safety of people and property.
Technical: This covered all production methods and products.
Commercial: Included all activities of buying and selling.
Financial: Involved the raising of funds and using capital.
Accounting: This involved recording and monitoring of all costs, profits and liabilities.
Managerial: This covered monitoring productivity, problem solving, coordinating,
controlling and so on.
22
Fayol, however, preferred to use the word principle instead of rules to build flexibility History and Development
in the way managers could react to situations using their own judgment. of Food Service System

Workforce
The views of workers was basically monetary gain and incentive pay which were part
of scientific management, although much harder work had to be performed to meet
the standards laid down.

Organization
The scientific approach enabled organizations to set clear goals and organize processes,
procedures and work areas more efficiently to achieve them. The result was that
efficiency and thereby productivity improved and profits got better ensured. Thus, a
value was placed on work performed which indirectly benefited the organization, as
it involved better planning, organizing and overall functioning of all staff in the
organization. While Taylorism grew out of experimentation and experience on the job,
a problem arose, that workers were afraid of completing a job too soon because they
believed that their pay would be lowered as a result. To remove these fears, Taylor
encouraged productive workers rewarding them by increasing their wage rates. Gradually
training schemes based on procedures followed by high performers were prepared,
skills required for various jobs were established for use in staff selection and evaluation
standards set up for each type of work. Management thus, started to become scientifically
researched and practiced.
Having understood the scientific approach, next we shall get to know the management
by objective approach.

1.5.4 Management by Objectives


Peter Drucker was the first to use the Management by Objectives or MBO approach
for management planning and evaluation, in situations where goals of managers were
set to be achieved within a predetermined time frame. In this approach, each manager
sets his own goals within the broader preset goals of the establishment and then works
to achieve them. The significance of this approach is that manager’s performance can
also be evaluated, in addition to that of the operative staff of an establishment. This
makes managers more committed to goal achievement.
The characteristics of the MBO approach are superior-subordinate participation in goal
setting, devising methods, reviewing progress and achieving results. Constant interaction
between involved staff is established but requires a good information system for
success, as the approach is totally result oriented. The positive features of the MBO
approach are employee satisfaction because it outlines what exactly is expected of
them and provides measurable objectives at all levels of the establishment. It also takes
into account profitability, competitiveness, efficiency and flexibility.
Next, we shall review the systems approach to food service management.

1.5.5 Systems Approach


The systems approach looks at organizations as systems composed of a number of
sub-systems which interact with each other and their internal and external environments
to achieve goals, and to satisfy the needs of the environment in which the organization
exists. The systems model therefore focuses more on those properties and processes
of the organization which are relevant to goal achievement.

The systems approach therefore, sees the organization as receiving inputs from its
environment and interrelating them through various job divisions or systems to produce
the products or service.s which flow back into the environment to satisfy needs. The
systems model is thus seen as inputs and outflows from one system to another as
shown in Figure 1.3.
23
Entrepreneurship and Food External
Service Management Environment

ng Organisa
Technical/Economic teri tio
System Ca Social System
Internal

n
Banks External
Institutions
Input Competition
Sub Systems Output
Customers
Government Suppliers

Environment
So
cio em
-technical Syst

Figure 1.3: Systems approach to organizations

Source: Reprinted with permission from Institutional Food Management, Sethi, New Age,
International, 2004.

For example, in a restaurant a system consists of the customer giving an order to a


waiter, who in turn takes it to the kitchen. The cook then prepares it and returns it
to the waiter who then presents it to the customer. Thus the activities of the customer,
waiter and cook are interconnected in the customer-feeding system. Such systems
show important properties of dynamism, the parts of the system constantly moving
in addition to interacting with one another. So if something occurs in one part of the
system its effect in some way gets transmitted through it to affect the functions of
other parts. We can therefore quote three main assumptions underlying organizations
as systems. These are:
 Systems are composed of interdependent parts.
 They have needs for survival, and
 They behave and take action
The systems concepts thus focus on interconnectivity so a change in one part
influences other parts as well but without showing any visible cause of disturbance.
Let us review the types of systems next.

Types of systems
There are basically three types of systems – closed, open and socio-technical systems.
Let us get to know these systems.

• Closed systems: Closed systems usually have few inter-relating parts which
operate on the assumption that the external environment is constant and does
not change to influence the functioning of the organization. When changes do
occur they are slower than the internal changes and organizations adapt to them
to bring back a state of equilibrium.
• Open systems: These are similar to closed ones except that they take into account
the interactions with the external environment as well.
• Socio-technical systems: In such systems the link is provided between the social
and the technical system by a set of activities, interactions and sentiments which
are partly molded by the technical system. One such factor is the division of work
developed in a system through which the task requirements interrelate to individuals’
24 needs, as an interdependent socio-technical system.
Thus, the systems approach helps to distinguish between productive, maintenance, History and Development
adaptive and managerial-political functions of an organization. There are however, of Food Service System
certain limitations of the systems approach. These limitations are highlighted next.

Limitations of the System Approach


The limitations of the systems approach include:

• It is purely functional and does not focus on people to a large extent.


• The model does not explain the prevalence of conflict at work.
• The approach can be misleading, as it suggests that all the parts of the system
cooperate at all times rather than compete or struggle for survival.
• The least convincing aspect is its inability to explain change that arises not from
the system, but from the interaction between motivated people.
• The approach looks at the organization from the viewpoint of managers and not
the workers.
• The needs of the environment are seen as impersonal processes, and therefore
organizations adapt to their environments at different rates, and
• The scope of employees’ participation in decision making is limited, since all
decisions are made within the formal structure of the organization.
Next, we shall focus on the quantitative approach.

1.5.6 Quantitative Approach


Quantitative approach is also called the mathematical or operational research (OR)
approach, because it involves the study of effects of all possible factors that can affect
potential outcomes, based on which management decisions may be taken. It involves
the building of models to project through computers a real situation or problem.
Basically, four types of models have been used namely, representative, analogous,
symbolic or mathematical and simulated models.
Let us get to know about these models.
Representative model: This is a scaled representation of the real situation as in a
photographic or mapped out model.
Analogous model: This involves using comparative properties of situations to illustrate
problems or the mechanisms involved in decision making in similar situations and
conditions.
Symbolic model: These consist of mathematical derivations using symbols for certain
components of the problem and then calculations are made to depict solutions from
which the best possible solution is arrived at. Symbolic models represent real situations,
are simple, convenient and economical to use for testing hypotheses. They help in
understanding and predicting conditions of uncertainty or risk and control decision
problems which are under consideration.
Simulation model: This model makes use of linear programming to solve problems
such as queuing which affect sales revenue of an establishment. Simulation helps to
search for an optimum solution by striking a balance between the cost of waiting,
customer loss and cost of reducing queues through allocation or reallocation of
additional resources.
Quantitative methods help to maximize resource use by providing solutions to technical
problems at operative levels. For managers, they provide a factual basis for guiding
them towards objective decision making.
The next approach covered in this section is the behavioural and human relations.
25
Entrepreneurship and Food 1.5.7 Behavioural and Human Relations Approach
Service Management
Behavioural and human approach is based on the belief that an organization is as good
as its people, because in-spite of scientific and other planned approaches, managers
continue to face problems. This was attributed to the changes in people’s behaviour
and therefore attention was drawn to social and psychological factors that operated
among working groups. Behavioural scientists suggested three ways of improving
productivity by:

• Selecting the best person for each job using psychological testing techniques,
• Creating the best psychological conditions, and
• Motivating employees.

The human relations and behavioural approaches had two basic objectives –
i) economic effectiveness, and ii) employee satisfaction which can further be extended
to customer satisfaction with respect to service organizations.

Today, a lot of attention is paid to motivation of employees through providing different


degrees of employee benefits and rewarding them with bonuses for increasing profits
of organizations, irrespective of their size. The working environment too is the focus
of attention of managers to provide workers with a comfortable work environment
and atmosphere.

After behavioural and human approach, we shall review the contingency


approach.

1.5.8 Contingency Approach


The contingency approach was the result of the efforts of managers to apply different
approaches to real life situations for making the most effective decisions. They
found that methods used in one situation did not succeed at other times. According
to this approach, managers needed to identify which techniques will work in a
particular situation under given circumstance, and at a particular time, to contribute
the maximum to goal achievement.

From contingency approach, we move on to the just-in-time approach.

1.5.9 Just-in-Time
Just in Time or JIT approach was the result of the increasing desire of managers to
enhance efficiency for achieving better profits. This approach is applied basically to
production management in an effort to control costs of storage space, time and
effort. The idea was to receive raw materials just in time for production as required
with minimum stocks being held on the premises.

The JIT approach was first developed by the Japanese in 1970’s and has since
inspired managers globally to adopt it to cut the costs of production. In food services,
this approach is followed when fresh, highly perishable foods, like meats, milk, fruits
and vegetables, are directly delivered to the kitchens for production of meals, rather
than stored in the establishment. The concept gains importance in India given the
seasonality of raw food production in different regions of the country, and the price
sensitivity of the consumer. Only in large establishments where the quantity delivered
is very large, these foods are stored for short periods under refrigeration or in cold
rooms, for issue as required.

The JIT approach results in appreciable cost reduction in terms of storage, handling
and staff costs, making the products and services offered by food establishments more
affordable for consumers and more profitable for the food manufacturing and catering
26
sectors. Savings of 5-10 per cent have been reported in inventory and storage costs History and Development
as reported by some researchers. JIT thus improves efficiency of production and of Food Service System
improves quality because foods are not stored excessively and deterioration is
automatically prevented.

JIT thus follows a demand pull rather than a supply push approach enabling managers
to schedule production on demand rather than have unsold products in the hope that
they will be demanded. Implementing the JIT approach has definite advantages. These
advantages are enumerated next.
Advantages of JIT
The advantages of JIT include:
• Direct cost reduction
• Staff and space reduction
• Decreases cost of handling
• Reduces or eliminates damages in storage
• Makes work flow easier, and
• Saves time and energy

Implementation, however, requires the establishment of sound communication networks


as suppliers need to be informed about requirements, consumer uptake all of which
needs documentation. Some establishments following this approach are McDonalds,
Dominoes Pizza, Cadbury India Limited which is linked with its depots, factories,
cocoa sourcing points by use of appropriate software. JIT is a management intensive
system, but once established is easy to monitor effectively.

Finally, let us study about the total quality management approach.

1.5.10 Total Quality Management Approach


Total Quality Management or TQM is a concept that fosters continuous overall
improvement at all levels of production and service in an establishment. This approach
emphasizes a systematic, integrated and consistent organizational effort involving all
resources at hand whether human or material, for the purpose of gaining competitive
advantage in the market. What then does TQM mean? Let us see. According to Ho,
1995, TQM is:
Total represents all people associated with an organization including suppliers and
customers.
Quality means that the requirements of customers whether expressed or implied, are
being met constantly.
Management implies that the managers of the organization are fully committed to the
continuous improvement of all facets of the organization from the smallest to the
largest link.
Many researchers have been linked with the development of the TQM approach such
as Crosby (1979), Deming (1986) and Juran (1988) who spread it worldwide. By
1992 the definitions kept on changing to include statements like performing jobs right
the first time, or defining quality as providing extraordinary customer satisfaction or
conforming narrowly to standards and so on. Juran developed the ideas of quality
planning, quality improvement and quality control.
According to the Japanese, TQM is a journey which never ends if an organization
has to succeed and survive in a competitive environment. Kondo (1995) focused on
27
Entrepreneurship and Food quality and people motivation and believed in creativity, physical activity and sociability
Service Management for expressing the joy of sharing pleasure and pain with colleagues.

Thus, the TQM, approach signifies a state of constant dynamism within an organization
because of technological advances and systems development which has made it
possible to monitor work and processes more effectively for constant quality
improvement.

With TQM, we end our discussion on the different approaches to food service
management. Surely, you may have found the discussion a bit technical but certainly
interesting. Do read this section once again for better understanding and
conceptualization. To help you recall what you have learnt in this section, we have
included few exercises in the check your progress exercise 2. Answer these exercises
and evaluate where you stand.

Check Your Progress Exercise 2


1) What are the different approaches to management? List them.
................................................................................................................
................................................................................................................
................................................................................................................
2) Fill in the blanks:
i) Traditional management was based on the ………… of ………… principle.
ii) The scientific approach to management is also called ……….. because
………… founded it.
iii) Organizations can be looked at scientifically from ………. points of view
namely, management, ……….. and …………. .
iv) …………. school defines management as a social process.
v) Neoclassical approach evolved as a result of experimentation with
improvements using ……………… and ……….. approaches.
3) What are the five relationships at work in traditional management? Name
them and write against each the type of food service establishment you think
they are practiced in even today. For example:
i) Master subject …………… Dhaba
ii)
iii)
iv)
v)
4) Write full names for the following short forms and define them.
i) MBO- ....................................................................................................
..........................................................................................................
ii) JIT - ................................................................................................
.........................................................................................................
..........................................................................................................
28
History and Development
iii) TQM -.............................................................................................. of Food Service System

.........................................................................................................
.........................................................................................................
iv) OR - ...............................................................................................
.........................................................................................................
.........................................................................................................

In the last section we covered the approaches to food service management. Next, we
shall study about the processes and principles involved in managing an organization.

1.6 MANAGING AN ORGANIZATION


In order to use the approaches highlighted in section 1.4 above, to manage an
organization, managers use certain processes and principles to perform their functions
in order to achieve goals. Let us see what these are and how managers succeed or
fail in different situations on their journey towards goals.

1.6.1 Processes Involved


The very concept of management involves the design of the environment in which
people working together in groups, using their different skills and talents strive to
achieve objectives of the organization. Design is thus, the application of knowledge
to a practical problem for the purpose of finding out the best possible way to achieve
results for that situation. The processes involved therefore aim to establish an
environment in which goals can be achieved with the least expenditure of time, money,
materials while using human resources most productively, and in a climate that fosters
harmony. Details of the different processes are dealt with in Unit 2.

Here, let us try and look at some decisions that you take almost routinely every day
to reach your place of work. What do you do when you wake up in the morning?
Possibly:
— Look at you watch and react by saying Oh! I’m late.
— Jump out of bed.
— No time for a relaxed cup of tea.
— Pull out some clothes and rush to get ready.
— Get stressed, miss breakfast.
— Run to catch your bus or drive fast unmindful of safety.
— Reach late and try to catch up with work throughout the day.
— Can’t achieve as expected.
— Reach home frustrated and disturb harmony.
Look at your reactions above and observe the processes that you have gone through
to make decisions at various points in time. You will find that you went through three
types of processes, physical, mental and emotional. Now reverse the situation and
wake up well in time. You will still go through the three types of processes but reach
office in time, eat well, be happier and satisfied at the end of the day. We all have
good days and bad days, so do managers but they still have to take decisions as the
situation demands.

In food service establishments, it is common for operative level staff to complain that
the manager draws more salary, has greater comfort at work and sits in a chair most
of the time ordering others to do the hard work. This is however, a misconception
29
Entrepreneurship and Food since managers are mainly involved on the mental plane, using their judgment in
Service Management particular situations and making decisions that help the organization towards its goals.
In order to operate efficiently, the managers follow certain principles which are briefly
outlined and discussed next.

1.6.2 Principles of Management


What do principles mean? George R. Terry has aptly defined a principle as .. a
fundamental truth providing a guide to thought and action. Thus, principles are
guidelines formulated on the basis of past experiences of managers in related situations,
through a process of recording mentally or in writing, the effects of decisions taken
in the past.
Certain basic guidelines can be formulated by every manager to help in the successful
management of his/her establishment, therefore there can be very different principles
that are applied in various organizations according to past experiences and judgment
of managers in their particular situations. This is also because no two situations are
exactly alike to demand prototype decisions taken in the past, and people involved
also change their behaviour at different points in time. Present decisions however, can
be based on the results of past decisions taken under fairly similar circumstances,
depending on future goals to be achieved.
Thus, principles are not rigid foolproof rules which can provide definite solutions to
problems or needs but are flexible, practical, consistent and relevant guidelines for use
in similar sets of situations. They help to predict the results of decisions taken when
used with the manager’s own judgment of when to apply or use them. When
managers take decisions that have constantly proved wrong, the fault does not lie with
the principles, but in the judgment made and the principle applied by managers in a
particular situation. Let us see how this works through an example.
Example 1
Suppose a catering manager follows the principle of serving lunches strictly between
12.30 and 2.30 pm every day, but one day finds that there is an unexpected rush
of customers, and meals get finished by 2.00 pm. How will he apply his principle to
manage the situation with respect to customers who habitually come to the establishment
between 2.00 and 2.30 pm?
Let us list what decision choices he has in the situation.
— Close down service at 2.00 pm on that day.
— Use some ready to serve foods held in stock to make up extra meals to cover
the demand between 2.00 to 2.30 pm.
— Request staff to make sandwiches and arrange for making eggs to order to make
up a meal platter for customers.
In this manner there can be many different reactions to a particular situation and it
may seem confusing to make a decision. But the principle if applied with a manager’s
value judgment helps to make decision making easier and more effective. Let us see
how different managers use their value judgments to make decisions.
i) A manager who places greater value on the goodwill of customers will not think
twice about keeping the food service open, and providing whatever he can to his
customer. He would not take the risk of turning away even a single customer.
ii) Another manager might value his own image vis-à-vis his staff, in which case he
will treat the situation as a challenge and think of quick preparations, being guided
by the principle of keeping the food service open till 2.30 pm.
iii) A third manager may value good relations with his staff and take the opportunity
to give them half an hour off, based on the fact that the number of customers
in the last half hour are not significant enough to make his staff prepare meals
30 all over again and create stress in the environment.
Which of the above decisions would you choose if you were the manager of the History and Development
establishment and why? It is possible that when you apply your value judgment you of Food Service System
may come up with a fourth decision absolutely different from that of the three
managers cited above.
So you can see that many possibilities come up in different situations according to
the many value judgments of people. Principles applied must therefore be flexible
enough to be used where goals change, no matter how far apart in time similar
situations may be.
Principles therefore represent the historical collection of cause and effect data obtained
from experiences gathered by managers in various situations, from which practicing
and potential managers can draw for making effective decisions. There are therefore,
no fixed numbers of principles that a manager may adopt as the basis for developing
an organization. As experience is gained very different guidelines emerge, some
principles helping to predict, others providing guidelines for decision making at various
levels of the organization.
According to Koontz, O’ Donnel and Weihrich, principles of management are descriptive
or predictive and not prescriptive. In other words, they do not tell a manager what
he should do, but only give him an idea of what may be expected if certain variable
interact in a situation.
There are 14 principles which have formed the basis for management activity, but each
manager may use as many as they think useful in a particular situation. In fact, every
manager can create principles to suit their own particular field of work which could
form reference points for success in the future. The basic principles are outlined in
Figure 1.4 and are self explanatory.

Authority
Division of and
work responsibility Discipline
Span of
control Unitary
command

Unity
Unitary
PRINCIPLES OF direction
MANAGEMENT

Individual
Initiative goals second to
organizational
goals
Work
stability Payment for
Loyalty work
and
devotion Orderliness Hierarchy

Figure 1.4: Principles of management


31
Entrepreneurship and Food Now let us see how these principles are used effectively in food service establishments.
Service Management
Division of work: The use of this principle in food services is based on the different
skills, knowledge and experience of staff. It is a fact that a worker washing dishes
cannot perform a cook’s job. This implies that jobs need to be divided between
people according to their abilities in every establishment irrespective of its size or
location. The use of this principle in organizing work, makes staff perform tasks
repeatedly, a process through which they become more efficient, gain confidence
and thereby production gradually speeds up thus increasing efficiency of the
establishment.

Larger organizations need to apply this principle more than very small operations
like dhabas, tea stalls etc. in which staff numbers vary from 2-5 only and require to
do all the tasks together, under the supervision of one manager. The principle of
division of labour however, needs to be applied with care in food services because
strict application might lead to staff becoming too specialized in their jobs to takeover
the tasks of others. For example, if a cook leaves the assistant cook may not be able
to produce the same quality food for the customer, to the detriment of the
establishment. Therefore a certain amount of job rotation also needs to be followed
to train others to fill in for staff that may be absent, sick or on leave.

Authority and responsibility: The principle of authority works in two ways one, it
is exercised because of the position in the chain of command of the organization, and
two, it is because of a person’s intelligence, experience and the sense of values he
holds. Both types of authority complement each other. In any work situation some
of the official authority may be delegated along with the responsibility a task carries
with it. For example the task of meal production and job distribution may be delegated
by a manager to the head cook, who then also gets the responsibility of ensuring
quality food to the customer. Authority may thus be dispersed or centralized for an
organization, depending on its size and location.

Discipline: The principle of discipline covers punctuality, courtesy, adherence to rules


and regulations, obedience and so on, all being essential where group activities are
involved and directed towards common goals.

Unitary command: Unitary command means that there should only be one manager
to give the orders or command at work in any area of the establishment under his
control. Application of this principle goes a long way in establishing loyalty towards
managers and the organization. Imagine if two or three people were to give different
orders or instructions for completing the same task. What would happen? There would
be confusion in the mind of the worker and questions like:
• Whose instructions should be followed?
• Will other managers go against me if I do not follow their orders?
• What should I do?

Apart from the mental confusion, many commands given together is time wasting to
implement, as well as, frustrating for the worker, lead to dissatisfaction and fatigue.

Unitary direction: This relates to coordination of activities to achieve a single goal.


Undirected or multidirectional goals lead to divided attention, lack of efficiency and
achievement.

Individual goals second: The principle of organizational goals being subordinate to


establishment goals is important for organizational success, because if every person
starts to satisfy their own personal goals first, the organization will have to close down.
This is because there is no end to individual needs and when one is satisfied another
will crop up, all at the cost of the food service.
32
Payment: All work must be paid for in order to motivate people to do their best. The History and Development
methods of payment agreed upon should satisfy employees and the organization, the of Food Service System
terms in principle being fair.
Hierarchy: The principle of hierarchy refers to the chain formed by staff at different
levels in an organization, and corresponds to the various levels of management. The
levels tell the worker who is their boss and who to go to when in need. This results
in a natural acceptance of authority that can then command respect if relationships
developed over time are cordial.
Orderliness: Orderliness saves time at work looking for materials and equipment and
leads to a smooth work flow through the establishment. In kitchens where raw, partly
prepared and ready to serve foods are handled it also prevents cross-contamination
and ensures food safety for all concerned. Orderliness with respect to staff is helpful
in placing people in positions so that the right person is in the right place at the right
time which is a reflection of a good organization.
Loyalty and devotion: Where people show a sense of devotion to work and loyalty
the work environment generates harmony, and a unified attachment to the interests
and goals of the establishment.
Work stability: Where there is work stability people stay and do not leave an
organization frequently. Where staff turnover is minimized it creates in people a sense
of security and confidence leading to pride in their association with the organization.
Initiative: Based on this principle staff are often encouraged to participate in making
decisions that affect them and their work. In such an interactive environment morale
is raised and people generate new and creative ideas to increase organizational
effectiveness. For example, if a recipe idea suggested by an assistant cook is accepted
for preparation by the head chef or manager and further liked by the customers it helps
to develop initiative in staff to become more creative.
Unity: The principle of unity emphasizes the spirit of group work and helps to establish
smooth communications between people, a healthy team spirit and positive group
behaviour.
Span of control: This principle suggests that every manager can only guide or supervise
the work of a limited number of people efficiently. This usually covers five to six
people having related jobs and is referred to as the span of control of a manager. It
may vary with the nature of jobs being performed, but with the advent of computers
and quick monitoring and evaluation techniques the span may be increased for each
manager.

From principles, we move on to the functions of management.

1.6.3 Functions of Management


The activities which a manager performs to get people to work harmoniously towards
the goals of the organization are termed as functions of management. There are
basically six functions that every manager performs as shown in Figure 1.5.

Organizing
Directing
Planning

MANAGEMENT
FUNCTIONS
Coordinating
Controlling Evaluating

Figure 1.5: Functions of management


33
Entrepreneurship and Food The functions illustrated are performed at all levels of the establishment, within the
Service Management span of everyone’s activity and control. These are not necessarily performed in the
order in which they are written, but according to their relevance to the situation at
a particular time.

Let us get a brief insight into these functions.

Planning
Planning is the continuous process by which a manager scrutinizes past performance,
reviews its applicability in the light of environmental changes, and forecasts future
trends. The planning process generally starts by an awareness of an opportunity or
a problem, which can be foreseen or forecasted in the future. In the light of forecasts
the manager then scrutinizes the establishments for its strengths and weaknesses,
and sets new objectives and goals on the basis of certain assumptions called planning
premises. These include forecasts pertaining to technological advancement, economic
and social factors, government controls, customer attitudes and competitive forces.
All planning involves the following three steps:
1) Gathering information relating to building, finances, and all other resources to
make a workable scheme.
2) Developing a blueprint of the structure indicating the arrangement of spaces and
details of activities to be performed in them, and
3) Setting goals or targets to be achieved in a set period of time, the goals being
closely related to a fairly accurate forecast of future events.
Planning is thus a continuous mental exercise of setting and resetting goals, which help
activities to proceed as realistically as possible towards them, in constantly changing
environments. Therefore any goal set must be clear to both planner and the staff
involved in activities for achieving it. This way, people know why they are doing what
and feel a sense of achievement in the end. Work then becomes purposeful, creative,
orderly, productive, cost effective and satisfying for all. Apart from benefits to the
organization, individuals benefit too, through better relations at work, economically by
getting bonuses for producing profits and personally by upgrading their skills and
experience, thus enjoying a sense of belonging to the organization.

There are basically three types of planning – short, medium and long term varying
from one to five to ten years. When the targets for achievement for each period are
set, written out clearly and understood by all staff concerned, the document is known
as a plan.
Planning food service operations involves stating objectives clearly by:
 Forecasting number of customers accurately.
 Knowing staff production and service skills.
 Judging customer expectations through information on their food habits, cultural
background and economic status or purchasing power.
 Determining menu composition and costs.
 Establishing profit policy keeping in mind inflationary trends, taxes to be paid,
subsidies and free meals of employees.
Accurate projections help to lay down general policies and goals that are achievable
over different periods of time. Planning therefore is advantageous. Let us get to know
how?

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Advantages of Planning History and Development
of Food Service System
Planning has a number of advantages although some managers tend to think that
planning is a time wasting exercise. The advantages include:
• It helps to minimize time wasting activities like waiting for instructions,
ingredients and so on because of last minute purchasing, all leading to
uncertainties in task performance.
• Makes managers alert to changes and trends that may affect the activities of the
department.
• Helps integration of activities of various subunits or departments.
• Eliminates confusion if a plan is communicated well and in time to those
responsible for its implementation.
• Provides a basis for control through budgeting of time money, space and energy.
Time spent on planning therefore is time well spent provided it is not overdone.
From planning we move to the next function of management i.e. organizing.
Organizing
Once the goals have been set and understood by key people in each department, each
area of the plan has to be put into practice. In food services the key areas of
implementation revolve around the food production cycle, service areas, profit planning
and record keeping. Each department manager then translates his part of the plan into
clear-cut activities that are sequenced in a manner to flow smoothly. The ability to
coordinate the activities of staff according to their abilities and establish smooth work
flow is termed as organizing.

Let us learn what steps are involved in organizing.

Steps in organizing
There are five steps involved in the process of organizing. These are:
• Breaking down tasks into specific activities.
• Each action unit is then allotted to a manageable group of people and authority
and responsibility for its performance to a leader in the group.
• Staff are allocated to each action unit and placed in positions according to their
skills with levels of authority clearly defined.
• Resources are then allocated for each activity.
• Work is equally distributed to avoid stress and fatigue.

Organizing may thus be defined as putting together resources by matching skills to


tasks, within the structural and financial constraints of an establishment.
From organization, we move on to the third function i.e. directing.
Directing
Directing is a function that initiates actual performance of tasks and requires interaction
between people. This is done through five distinct activities such as:
• Instructing
• Guiding
• Supervising
• Teaching
• Reviewing
Let us review these activities briefly.
35
Entrepreneurship and Food Instructing: Instructing means communicating a plan of action to the people who have
Service Management to put it into action. Unless they understand exactly what is to be done, where and
how a plan can become useless. All instructions given by the manager must, therefore,
be clearly written out in a language understood by the staff, followed by verbal
communication so that if any one has doubts they can ask questions and clear their
understanding before work actually starts. Further, clear stepwise instructions should
be put up clearly at each work area for reference that will help staff to check
periodically that their activities are being carried out as instructed.

In kitchens and service areas the staff is from different religious, cultural and
educational backgrounds, therefore, communicating with them is not as simple as
managers tend to think. People understand instructions according to their own abilities
and experiences and a simple instruction may convey a different message to different
people. An example given herewith will illustrate this point.

Example: A manager gives a simple instruction to her peon – please bring me some
coffee. The message reaches the kitchen. Let us see how this instruction is acted
upon by different staff according to their understanding.
i) To a service staff it would mean the manager wants a cup of coffee.
ii) To kitchen staff it may convey that the manager wants to see the new brand
of coffee for sampling that may have just been received for use.
iii) To the storekeeper it may mean issuing a fresh tin of coffee.
iv) The manager herself might have meant that three cups of coffee be served as
she had two visitors sitting with her. Obviously the instruction was not clear and
left to staff who interpreted it differently.
So it must be evident from the example above, how confusion can be created if
instructions are not clear. Where such a disparity of backgrounds, languages and skills
occur, it is better to communicate to the head cook or dining room supervisor who
would then pass the instruction to concerned staff in the language they understand.
The instruction is also more likely to be received, understood and acted upon
immediately because the chef and supervisors work with staff, speaking their language
and constantly instructing them for various activities on a daily basis.

Guiding: The task of directing people involves guiding them in the performance of
their jobs in a manner that standards of performance desired are achieved, and in the
process the employee also develops himself. Guiding however, does not mean standing
on a workers head all the time, but keeping a close watch on how tasks are being
performed so that if improper methods are being used they can immediately be
corrected and the employee guided to work more efficiently.

There are a number of occasions when a worker does not want to admit that he is
finding a problem in his job, for fear of being under-rated by his colleagues or
superiors. In such cases supervisors will not be able to guide in time if they wait for
staff to ask for guidance. The result will be habitual use of incorrect methods being
adopted that will affect productivity. Therefore an important component of good
guidance is supervision. Let us understand this function next.

Supervising: Supervising means keeping a watch to detect discrepancies in work


behaviour or improper use of equipment and materials, or maintenance needs, correction
or modification of procedures that may need to be attended to for improving performance
and results of the organization.
Supervision can be carried out effectively in many ways. These include:
i) Viewing people’s work positively that is, looking for things they are doing right
and praising them. In this way keen observation of other people’s work too can
36
bring out areas where guidance and correction may be required.
ii) Taking regular rounds of activity areas just to say hello to people and find out History and Development
about their welfare. Observations or curiosity shown about the way work is of Food Service System
being done can often produce a response from which judgment of methods
being followed can be made.
iii) Maintaining records of production and sales. States of costs, sales and profit
margins achieved act as guides to the need for supervision. Areas that show
variances from expected results indicate the need for attention.
Good supervision helps in maximizing resource use and checking pilferage especially
in food services, since food is the most tempting commodity for those handling it,
especially if it is expensive and not afforded by staff.

Teaching: The person responsible for motivating people to achieve goals has got to
be able to demonstrate the work methods staff is expected to follow. Teaching people
to organize their work so that it is evenly spread throughout the day is important in
catering. This is because in food services there are periods of peak when activity at
its highest. This coincides with mealtimes when customer rush is experienced. It is
important to teach quicker methods for performing time consuming jobs to reduce
stress and perform better. A relaxed work environment also develops good learning
and working relations among staff and customers.

Reviewing: Reviewing the effect of every activity on individual and total performance
is the job of every manager. There are a number of strategic points in the production
and service cycle, which determine the quality of what is served to the customer.
Reviewing activities therefore, and modifying them when necessary to conform to
standards laid down, is essential for every food service small or large.

Leadership style, experience and ability to communicate with people, to a large extent
determines the degree to which staff can or will take instruction, be guided, supervised
and motivated to achieve and develop.

The discussion above focused on the directing function of management. Next, we shall
review the coordinating function.

Coordinating
Apart from directing the activities of staff, it is important to link them together, if group
efforts have to become meaningful. This process of linking is known as coordination.
Coordination can therefore be defined as the process of integrating the objectives
with the activities of different units of an organization in order to achieve goals
effectively. In fact Koontz defines management as an exercise in coordination, and
represents in a nutshell all the functions of management.

Constant coordination helps to tackle problems when they arise, gather ideas from
various experiences, anticipate problems and take timely action to prevent them from
recurring. The extent of a manager’s responsibility for coordination depends on the
organizations structure, policies and scope of his activity.

Henri Fayol considered coordination as the binding together, unifying and harmonizing
of all activities and efforts. The larger the organization the greater becomes the degree
of coordination required to keep individual departments together instead of alienating
their activities. Coordination results in establishing better interaction between subunits
and work is performed successfully under a single command. Good coordination
strengthens staff loyalty and a feeling of oneness permeates through the organization
resulting in greater understanding.

From coordinating we move on to the control function of management.

37
Entrepreneurship and Food Controlling
Service Management
Using all the functions of management discussed so far, there is no certainty that the
targets laid down will be consistently achieved, therefore control is necessary to give
the right direction to activities. This is because achieving is not a simple process that
takes place under stable conditions. The food service establishment is constantly
surrounded by a changing environment consisting of helping and hindering forces
some of which are indicated in Figure 1.6.
HINDERING FORCES
ESTABLISHMENT GOALS

Pr

Da ctur
St

i ce
Sh

rik

m
St
Ri
or

Sta

ag
s
Men

ru
e

sin
tag
Fo

e
f
Material

od

f
e

g
Customer

al
Money
Time satisfaction
Procedures Profits

ion f
Equipment

t
f

nt

en
Re Sta
G l od

Eq etter
me

ag d
em
Fo

M Go o
ut

ial
lat

uip
B
rd
Co

an
HELPING FORCES
Figure 1.6: Some helping and hindering forces

In Figure 1.6, you may have noticed, that helping forces move the establishment
towards goals, assisting in maximizing profits through accelerating the speed of work,
whereas, the hindering forces inhibit timely achievement of goals even though their
effects are not immediately noticeable. Constant monitoring of the changes is therefore
necessary in order to use opportunities creatively to achieve goals.

The controlling function in management is expected to increase the impact of the


helping rather than the hindering forces impacting on the environment. This can only
be done if managers make the best use of natural forces like a favourable crop, good
weather and holiday time to attract customers, motivate staff, invest on better equipment,
and provide a safe, healthy and happy working environment. At the same time every
hindering force needs to be counteracted as soon as it arises in order to ensure that
activities proceed towards their original goals.
The control process, therefore, involves:
• Measuring actual performance
• Comparing results with standards expected
• Pinpointing areas of deviation
• Determining reasons for deviations
• Taking corrective action

Controlling is a very specialized multifaceted function involving control of costs,


methods and procedures, behaviour of people at work both individual and in groups
all of which have been dealt with in greater details in the next unit.

Finally, the last function of management is evaluation, which is elaborated next.

Evaluation
Evaluation is a process of determining how well people have performed their
functions over time. Efficiency of production or service or of managerial effectiveness
is judged through evaluation, a process that measures how far set targets have been
achieved.

38
Evaluation procedures should be set up to monitor progress periodically to ensure History and Development
success. If it is done at the end of a project, deviations cannot be detected in time of Food Service System
to correct procedures or guide activities better. In addition, the use of resources
becomes inefficient if people have to search for what went wrong where and when
on the way to the goal.
The areas of evaluation in food service establishments are:
• Staff appraisal
• Work environment
• Work conditions
• Procedures
• Equipment and maintenance
• Food product evaluation
• Profitability
For evaluating all the above periodically it is important to establish evaluation forms
designed for use in every establishment according to its goal requirements.

With evaluation we end our brief study on the functions of management here. Let us
recapitulate what we have learnt on this topic by answering the check your progress
exercise 3.

Check Your Progress Exercise 3


1) a) How did George Terry define a principle of management?
..........................................................................................................
..........................................................................................................
..........................................................................................................
b) List ten important principles used by a manager to guide him/her to make
decisions for his food service establishment.
..........................................................................................................
..........................................................................................................
..........................................................................................................
..........................................................................................................
2) a) What are the functions of management?
..........................................................................................................
..........................................................................................................
..........................................................................................................
..........................................................................................................
b) Name the six functions of management and write against each at least one
activity that a manager performs using the function. For example, menu
planning. Give another activity for planning not used in this example.
..........................................................................................................
..........................................................................................................
..........................................................................................................
39
Entrepreneurship and Food
Service Management 3) What are the five elements for directing the activities in a food service
institution?
................................................................................................................
................................................................................................................
................................................................................................................
4) Fill in the blanks:
a) According to Koontz management is an .............. in .....................
b) ............................... means keeping a ............................. .
c) The ability to establish smooth .................... in any production or
service area is termed as .......................... .
d) The process of determining how ......................... people have performed
their functions is called ............................
5) With which approach of management are the following people associated.
a) Juran .........................................
b) Japanese .........................................
c) Drucker .........................................
d) McGregor .........................................
e) Owen .........................................
f) Chinese .........................................
6) State whether the following statements are True or False by putting ‘T’ for
True and ‘F’ for False in the brackets provided against each.
a) Guiding means watching staff while they are performing their activities.
( )
b) Principles of management are prescriptive. ( )
c) McGregor is associated with theories X and Y. ( )
d) Controlling increases the influence of hindering forces
on the organizational environment. ( )
e) The leadership style, experience and ability to communicate
with people determine the degree to which staff will take
direction/instruction from managers. ( )

1.7 LET US SUM UP


This is the first unit of the course on Entreperneurship and Food Service Management.
It introduces the course by defining food service establishments and discusses their
history and development, in the light of changes that have affected our living, eating,
working and socializing patterns that have taken place over time. The factors that have
brought about the development of various types of establishments have been highlighted
along with recent and expected trends.

Food service establishments are basically set up to plan, produce and serve food to
a large number of people, who may come from different regions, religious and cultural
backgrounds and socio-economic levels of society all of whom may not have the same
purchasing or paying power.
40
In this unit we learnt that there are basically two types of food service or catering History and Development
establishments, commercial and noncommercial. The former are setup with the explicit of Food Service System
aim of making profits by selling food to customers, while the latter function for the
benefit of those who are challenged in some way and receive food as part of a
package of welfare and rehabilitation activities. The noncommercial establishments
provide the catering service as a supplement to welfare and are therefore only expected
to plan meals, so that expenses incurred are covered directly by customers or donations
from the public or subsidized by the government.

The evolution of management approaches has been traced right from traditional to
modern day approaches, and how they have affected management thought in India
after independence. Managers have followed some of these approaches either singly
or in combination to manage their food services, according to their personality traits,
position in the establishment and leadership and decision making qualities. Further,
the science of management has changed through the decades to suit the changing
needs and challenges of organizations.

A mention has been made of people who influenced management thought from time
to time and introduced theories that formed the basis of improvement in managing
abilities within organizations, according to their size, location and other factors that
may help to achieve goals as planned or hinder them. The advantages and
disadvantages of certain approaches have also been outlined to help managers to use
their judgment appropriately while making important decisions on behalf of the
establishment.

The principles and functions of management have been discussed in detail with
suitable examples of actual situations that can arise in food establishments to warrant
the use of judgment of managers to make decisions. The importance of planning,
organizing, directing, coordinating, controlling and evaluation has been stressed for
improving efficiency of units and achievement of preset goals, whether, short term,
medium term or long term.

1.8 GLOSSARY
Abbey : a term usually used in England, for a religious place in
which missionaries or priests stay. However, in ancient
times travelers were given permission to spend a night if
they needed help, and were looked after.
Bhatura : a type of Indian fried bread made from fermented refined
wheat flour dough.
Chaat : a sour and spicy preparation in which a number of ready
to use ingredients are mixed together just prior to
consumption. The dish is spicy and makes a good appetizer
or an in-between meal snack.
Chai : hindi term for tea.
Chana : hindi word for Bengal gram, often used de-husked and
boiled in chaat and curries.
Dal : pulse preparation served with meals in India.
Dhaba : a traditional roadside food service establishment which
usually prepares and serves main meals commonly eaten
in the region.
Dharamshala : resting place for pilgrims in India. Usually built near
places of worship.

41
Entrepreneurship and Food Franchising : this is a process of leasing out the management expertize
Service Management of an establishment to the buyer who then pays a fixed
royalty to the parent organization. Examples are fast
food services like MacDonalds, Wimpy, Pizza hut,
Dominoes etc.
Gurudwara : place of worship of Sikhs.
Langar : the food distributed to all present at mealtimes at places
of worship of the Hindus.
Paan : beetle-nut leaf used in India, filled with a mixture of
digestives, usually eaten after main meals. Customers
choose the type of fillings they want, sweet or plain.
The leaf is then folded over and handed over to the
buyer for immediate consumption. In some regions
households offer it to their guests on arrival as a sign
of hospitality.
Prasada : food offered to the Lord in places of worship and then
distributed to all present as a token of His blessings in
temples and gurudwaras.
Ramadaan : is the holy month of the Muslims during which they fast
religiously. Roti : A type of chappati or Indian bread
rolled from wheat flour dough and cooked on a hot
griddle.
Tikki : name for a type of potato cutlet plain or stuffed, which
is shallow fried on a hot griddle.

1.9 ANSWERS TO CHECK YOUR PROGRESS


EXERCISES
Check Your Progress Exercise 1
1) Food service establishments may be described as places set up primarily to plan,
prepare and serve food to a large number of people, who may be from different
religions, cultural backgrounds and represent various socio-economic levels of the
society. The factors influencing its development are tradition and culture, religious
fervour, economic status, industrial development, social changes, technological
advancement and globalization.
2) Restaurant — Commercial
Coffee shop — Semi commercial/commercial
School canteen — Commercial
Vendor/ tea stall — Semi commercial
Orphanage/old age home/residential blind school — Non commercial
You may give other examples based on your experience.
3) Answer on your own. A sample answer is given for your consideration.
Reasons for eating out in:
College canteen — to satisfy hunger
Fast Food Joint — for fun/socialize
Temple/place of worship — religious reasons
Roadside café — while traveling

42
4) (a) – iii; (b) – iv; (c) – i; (d) –ii; (e) – v History and Development
of Food Service System
5) Specialty food service establishment is one which specializes in the production and
service of foods typical of a region or country. Examples include: (i) Chinese (ii)
South Indian (iii) Italian.

Check Your Progress Exercise 2


1) The different approaches to management include: Traditional, Classical, Scientific,
Management by Objectives ( MBO), Systems Approach, Quantitative, Behavioural
and Human Relations, Contingency, Just-in-Time (JIT) and Total Quality
Management (TQM).
2) i) rule, thumb
ii) Taylorism, F.W.Taylor
iii) three, workforce, organization
iv) Human relations
v) Human relations; behavioural
3) i) Master-subject: Coffee shop/dhaba/tea stall
ii) Husband-wife: Bakery/takeaway/home delivery service
iii) Parent-sibling: cafeteria/restaurant/contract catering business
iv) Self-friends:motel/hotel/lodge/hostel/restaurant
v) Franchiser-Franchisee: Macdonald’s/Nirulas/Udipi/Sagar/Pizza Hut
4) i) Management by Objectives (Refer to sub-section 1.5.4 and write the definition
on your own)
ii) Just in Time (Refer to sub-section 1.5.9 and write the definition on your own)
iii) Total Quality Management (Refer to sub-section 1.5.10 and write the definition
on your own)
iv) Operations Research (Refer to sub-section 1.5.6 and write the definition on
your own)

Check Your Progress Exercise 3


1) a) Terry defined a principle as a fundamental truth providing a guide to thought
and action.
b) The important principles used by a manager to guide him/her to make
decisions include: Division of work, Authority and responsibility, Unitary
command, Payment for work, Discipline, Orderliness, Loyalty and devotion,
Unity, Initiative and Work stability.
2) a) Functions of management are the activities that a manager performs to make
people work harmoniously towards the goals of the establishment.
b) The six functions of management are:
i) Planning — menus/spaces/policies
ii) Organizing — work areas
iii) Directing — staff
iv) Coordinating — activities
v) Controlling — resource use
vi) Evaluating — performance/profits

43
Entrepreneurship and Food 3) The five elements used for directing the activities of a food service establishment
Service Management are: Instructing, Guiding, Supervising, Teaching and Reviewing.
4) i) exercise, coordination
ii) Supervising, watch
iii) work-flow, organizing
iv) well, evaluating
5) i) Juran — TQM
ii) Japanese — JIT
iii) Drucker — MBO
iv) McGregor — Neoclassical
v) Owen — Classical
vi) Chinese — Traditional
6) a) False, b) False, c) True, d) False, e) True.

44

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