An expert in Organizational

Development remarked that

even the most
competent manager cannot
succeed in an unfavorable
work environment. A food
company may have hired the
best managers but if it fails to
provide a favorable climate
where people can move, inter-
act and operate efficiently, then
all attempts to produce
expected results become a futile
exercise.
Mervin Weisbord, in his
book Organizational
Diagnosis, mentioned six key
elements that are necessary for
any organization to achieve
maximum efficiency. They
are:
An expert in Organizational
Development remarked that
even the most
competent manager cannot
succeed in an unfavorable
work environment. A food
company may have hired the
best managers but if it fails to
provide a favorable climate
where people can move, inter-
act and operate efficiently, then
all attempts to produce
expected results become a futile
exercise.
Mervin Weisbord, in his
book Organizational
Diagnosis, mentioned six key
elements that are necessary for
any organization to achieve
maximum efficiency. They
are:
An expert in Organizational
Development remarked that
even the most
competent manager cannot
succeed in an unfavorable
work environment. A food
company may have hired the
best managers but if it fails to
provide a favorable climate
where people can move, inter-
act and operate efficiently, then
all attempts to produce
expected results become a futile
exercise.
Mervin Weisbord, in his
book Organizational
Diagnosis, mentioned six key
elements that are necessary for
any organization to achieve
maximum efficiency. They
are:
An expert in Organizational
Development remarked that
even the most
competent manager cannot
succeed in an unfavorable
work environment. A food
company may have hired the
best managers but if it fails to
provide a favorable climate
where people can move, inter-
act and operate efficiently, then
all attempts to produce
expected results become a futile
exercise.
Mervin Weisbord, in his
book Organizational
Diagnosis, mentioned six key
elements that are necessary for
any organization to achieve
maximum efficiency. They
are:
An expert in Organizational
Development remarked that
even the most
competent manager cannot
succeed in an unfavorable
work environment. A food
company may have hired the
best managers but if it fails to
provide a favorable climate
where people can move, inter-
act and operate efficiently, then
all attempts to produce
expected results become a futile
exercise.
Mervin Weisbord, in his
book Organizational
Diagnosis, mentioned six key
elements that are necessary for
any organization to achieve
maximum efficiency. They
are:
CHAPTER 1

CREATING A FAVORABLE ORGANIZATION CLIMATE

An expert in Organizational Development remarked that even the most competent

manager cannot succeed in an unfavorable work environment. A food company may have hired
the best managers but if it fails to provide a favorable climate where people can move, inter-act and
operate efficiently, then all attempts to produce expected results become a futile exercise. Mervin
Weisbord, in his book Organizational Diagnosis, mentioned six key elements that are necessary for
any organization to achieve maximum efficiency. They are:
I. PURPOSE In setting this direction, the following questions have to be addressed:
1. What is the vision of the company? What does it want to become in the future, for the next
2,5 or 10 years?
2. What specific and measurable results does it want to achieve i,e.,-projected revenue,
profit margin, covers, production quota, etc. These are often referred to as forecasts.
3. How much resources (budget) are needed to realize the company goals? How does the
company intend to allocate these resources (how many percent of total sales is allocated for
food cost, labor, supplies, marketing, depreciation, administrative expenses, promotions, etc.)
4. What comprise the target market? What are their spending habits, needs, tastes and
preferences in so far as food and entertainment is concerned, paying capacity,
expectations, requirements, etc.? This information is usually gathered in a market survey.
5. How does one intend to reach the target markets? Who can help? What specific groups,
agencies and persons can sales people make a tie-up to be able to gain access to the target
markets?
6. How does the company intend to package its products and services to the satisfaction
of its target markets? What menus and banquet packages (with amenities) can be offered? How
will the food, rooms and other products be packaged and presented to customers? How
will the rooms be set-up? What room amenities will be set-up? How much will each package
cost? Does the company provide the right package for various target groups? Is the cost
affordable to clients?
7. Where does a company intend to excel? What image does it want to project? Does it want to
be known as a specialty restaurant that specializes in Filipino,
Japanese, Mediterranean or Oriental cuisine? Does it want to excel as a food chain or as a fine
dining restaurant or as convention hotel?
8. What is the situation of the company? What are the performance gaps and operational
problems/ These issues are usually addressed in an internal analysis.
9. What hinders the business from achieving its goals or targets? This must take into
consideration internal weaknesses like inability to satisfy customers, poor service, high prices,
lack of promotions, etc. and also external factors like economic recession, canceled bookings due
to calamities, reduction in tourist arrivals, etc. SWOT (strength-weakness-opportunities-threats)
analysis is usually done for this purpose.
10. What strategies and remedies are necessary to correct internal weaknesses, deal with the
external threats and improve over-all company performance? Example: New marketing and
promotional tactics, quality control, etc.
11. What are the needed resources and how much are needed to implement the strategies?
12. Do people in the organization especially the managers and supervisors understand and
internalize the company goals, vision, mission, corporate strategies and philosophy as well as its
corporate values?
13. Did they participate in the making of the corporate goals and strategies? Do they recognize
the significance of these goals/
14. Have these key people committed their support in ensuring the attainment of corporate goals
and targets? A successful business starts with a good direction. It is in the exercise of direction-
setting that desired results are clearly defined before they can be achieved.

But the following conditions must prevail for the business to move towards attaining its goals.
1. All officers and staff are oriented and made to understand the company’s vision, goals
and strategies and they participated in the making of these corporate objectives. This is
normally done in a goal-setting or planning workshop.
2. 2. Managers and supervisors are oriented about their roles and functions as well as the
results expected of them. Said information must be documented in their job description
and should be acknowledged and signed by them.
3. 3. Everyone understands what he or she expects to get if the goals and the results are
achieved or not achieved (rewards and sanctions).
4. 4. Accomplishment of goals are consistently monitored and measure. There is way of
checking actual attainment against targets. This can be done through performance audit
and performance reviews.
5. 5. The working team is given feedback about its progress towards goal attainment. Sales
reports, accomplishment and audit reports may be used for this purpose, presented to and
discussed with the concerned supervisors.
6. 6. Variances are analyzed and remedial measures are taken to bridge any performance
gap. Facebook of customers can help in discovering causes of variances and can also
serve as a basis for corrective action.
7. 7. Managers and supervisors are made to account for their performance and are made to
answer for unjustified variances and discrepancies. Inability to correct variances and
discrepancies indicates managerial inefficiency and is a ground for administrative action.
If these seven conditions are strictly implemented by management, the movement
towards goal attainment is facilitated and sustained

II. STRUCTURE Provides the mechanism for dividing, arranging and administering the job to
be done in a manner that will ensure maximum efficiency and productivity
Questions to address in setting an organizational structure.

1. What are the major task to be accomplished and how should they be distributed and
delegated? An organizational chart is used to illustrate the division of labor.
2. Who is in command in each unit? Who is accountable for results? (Unit head) What is his
span of control or area/scope of responsibility? Will the structure enable him to manage the
operations efficiently?
3. What are the lines of authority? Will “double bossing” be avoided? Who reports to whom?
Who is responsible to whom?
4. Does the power structure provide for autonomy and flexibility?
5. Are there limits to authority and power? Is everyone informed about it? What are the
decisions that the manager or the supervisor is authorized to make? What are the decisions that
the manager or the supervisor is authorized to make? What decisions must be referred to top
management?
6. How are the job positions classified? Is each job position appraised to ensure a fair job
classification?
7. Are the lines of communication and coordination understood by all concerned staff?
8. What are the job duties, responsibilities and boundaries of managers, supervisors and staff?
Are these clearly communicated to them?
9. Are tasks or duties properly delegated? Is there no overloading and duplication of job duties
among the staff?
10. What company policies and procedures regulate the behavior and performance of people in
their job?
a.) What control systems and policies are enforced to ensure that losses, pilferage, excessive
consumption and other forms of abuses or inefficiency are prevented?
b.) Are job procedures in line with quality standards or industry standards? If the hotel caters to
an international market does it comply with international standards of service to make it
competitive in the global market?
c.) What are the job standards – quality and quantity of work expected, standards of safety,
sanitation, cost, etc.
d.) Are all these information formally sanctioned and documented or simply implied? Are all
employees made to understand them or trained to apply them?
11. How will the job be evaluated? Are there specific, measurable, attainable and realistic
performance standards that serve as basis for an objective job evaluation?
12. Is there an organized monitoring system that can check and ensure a consistent application of
operating procedures and standards?
13. Is there a feedback and problem solving mechanism? Are variances and discrepancies
communicated to all concerned, deliberated on, analyzed and resolved with appropriate
remedies?

III. REWARD SYSTEM Refer to package of incentives and other forms of rewards given in
recognition of satisfactory performance.
1. What do employees get if they do a good job? What incentives and benefits are provided by
the company?
 1.1. Are these competitive with those offered by other establishments in the same caterogory?
1.2. Can the company afford to pay the required benefits?

2. On what basis are incentives

distributed? Are these based on
the merits of
performance? How does the
company measure a satisfactory
job?
3. Is a job evaluation system in
place for the company to have a
sound basis for job
and wage classification?
4. What company practices are
being implemented to boost
employee morale?
4.1. Are employees
consistently recognized and
appreciated for their efforts?
4.2. Is there a good rapport
between managers / supervisors
and staff as well
as between managers and the
owners?
2. On what basis are incentives distributed? Are these based on the merits of performance? How
does the company measure a satisfactory job?
3. Is a job evaluation system in place for the company to have a sound basis for job and wage
classification?
4. What company practices are being implemented to boost employee morale?
4.1. Are employees consistently recognized and appreciated for their efforts?
4.2. Is there a good rapport between managers / supervisors and staff as well as between
managers and the owners?

IV. SANCTIONS This element covers administrative penalties or disciplinary actions given to
employees for unjustified infractions, deviations from standards and other performance and
behavioral deficiencies. Before administering sanctions, consider the following:
1. Are the standards of productivity, quality of work, cost, efficiency, etc. clearly defined?
Where these made clear to all concerned?
2. Is the acceptable level of performance defined? Is there a way of measuring? Levels of
performance?
3. Is there a code of ethics or house rules that define undesirable behavior?
4. Are offenses properly classified? (minor, major and grave offenses)
5. Are there appropriate and just sanctions for every type of offense?
6. How is misconduct determined and processed? Is there due process?
7. How are infractions and misconduct detected and documented?
8. Are erring staff made accountable for infractions, variances and questionable transactions?
9. Is there consistent and fair administration of sanctions?

V. CULTURE AND RELATIONSHIP This has reference to the working relationship among
staff in various levels, the degree of teamwork, cooperation and the prevailing culture that
govern the relationships and the corporate practices. The climate of working relationships is
highly influenced by the prevailing corporate culture. Such culture is reflected in the
company’s core values, myths, beliefs, and practices.
It is also manifested in the perceptions and attitudes of the owners, managers and staff. In
analyzing the corporate culture, examine the following.
1. What are the core values of the company-what are highly valued and given enough
importance i.e. quality, cost, productivity, dignity of labor, employee morale, customer
satisfaction, etc.?
2. How are these core values actualized in terms of policies and practices? For example, if cost
is important, what cost control policies are being enforced? If dignity of labor is valued, are work
conditions humane?
3. What are the myths and beliefs that influence the behavior of top management, department
heads and staff?
4. Does the prevailing culture believe in the importance of people participation? If so, is there a
democratic and consultative process of decision-making? Healthy working relationships and
teamwork are important elements in enhancing group productivity. Are they given attention by
top management? - How is healthy teamwork created and maintained? - Is there harmony,
camaraderie, mutual trust and respect among the staff and between top management and the
managers? - Are false beliefs and misconceptions clarified? - Are internal differences, conflicts,
disagreements confronted and resolved?

VI. LEADERSHIP Speaks of the management style-how people are mobilized, trained,
directed and motivated to be able to deliver the expected results.

1. Are all company officers

properly screened to avoid the
hiring of misfits?
2. What is the dominant
leadership style-autocratic,
democratic, and bureaucratic?
3. Is situational leadership
effectively utilized? (matching
leadership style with
various levels of personnel and
varying work situations)
4. How is the rapport between
leaders and their staff, managers
and the owners?
5. Are managers and unit heads
consulted by the owners or top
management
regarding policies, goals and
other critical decision affecting
operations?
6. Are leaders given the
autonomy and sufficient
authority to make decisions?
7. Are all company officers
properly trained in management
techniques before
assuming their position or are
they made to operate on a hit
and miss basis?
8. Do officers consistently
monitor and check their staff’s
performance? Do they
give their staff feedback about
their progress on the job?
9. How do officers manage the
consequences of staff
performance? What is the
response to good performance
to deviations and variances?
1. Are all company officers properly screened to avoid the hiring of misfits?
2. What is the dominant leadership style-autocratic, democratic, and bureaucratic?
3. Is situational leadership effectively utilized? (matching leadership style with various levels of
personnel and varying work situations)
4. How is the rapport between leaders and their staff, managers and the owners?
5. Are managers and unit heads consulted by the owners or top management regarding policies,
goals and other critical decision affecting operations?
6. Are leaders given the autonomy and sufficient authority to make decisions?
7. Are all company officers properly trained in management techniques before assuming their
position or are they made to operate on a hit and miss basis?
8. Do officers consistently monitor and check their staff’s performance? Do they give their staff
feedback about their progress on the job?
9. How do officers manage the consequences of staff performance? What is the response to
good performance to deviations and variances?
Questions to address in setting
an organizational structure.
1. What are the major task to
be accomplished and how
should they be distributed
and delegated? An
organizational chart is used to
illustrate the division of labor.
2. Who is in command in each
unit? Who is accountable for
results? (Unit head)
What is his span of control or
area/scope of responsibility?
Will the structure
enable him to manage the
operations efficiently?
3. What are the lines of
authority? Will “double
bossing” be avoided? Who
reports to
whom? Who is responsible to
whom?
4. Does the power structure
provide for autonomy and
flexibility?
5. Are there limits to authority
and power? Is everyone
informed about it? What are
the decisions that the manager
or the supervisor is authorized
to make? What
are the decisions that the
manager or the supervisor is
authorized to make?
What decisions must be referred
to top management?
6. How are the job positions
classified? Is each job position
appraised to ensure a
fair job classification?
7. Are the lines of
communication and
coordination understood by all
concerned
staff?
8. What are the job duties,
responsibilities and boundaries
of managers,
supervisors and staff? Are
these clearly communicated to
them?
9. Are tasks or duties properly
delegated? Is there no
overloading and duplication of
job duties among the staff?
10. What company policies and
procedures regulate the
behavior and performance
of people in their job?
.

I. PURPOSE
In setting this direction, the
following questions have to be
addressed:
1. What is the vision of the
company? What does it want to
become in the future, for
the next 2,5 or 10 years?
2. What specific and
measurable results does it
want to achieve i,e.,-projected
revenue, profit margin, covers,
production quota, etc. These are
often referred to
as forecasts.
3. How much resources
(budget) are needed to realize
the company goals? How
does the company intend to
allocate these resources (how
many percent of total
sales is allocated for food
cost, labor, supplies,
marketing, depreciation,
administrative expenses,
promotions, etc.)
4. What comprise the target
market? What are their
spending habits, needs, tastes
and preferences in so far as
food and entertainment is
concerned, paying
capacity, expectations,
requirements, etc.? This
information is usually gathered
in a market survey.
5. How does one intend to
reach the target markets? Who
can help? What specific
groups, agencies and persons
can sales people make a tie-up
to be able to gain
access to the target markets?
6. How does the company
intend to package its products
and services to the
satisfaction of its target
markets?
What menus and banquet
packages (with amenities) can
be offered?
How will the food, rooms
and other products be
packaged and presented to
customers?
How will the rooms be set-up?
What room amenities will be
set-up?
How much will each package
cost?
Does the company provide the
right package for various target
groups?
Is the cost affordable to clients?
7. Where does a company
intend to excel? What image
does it want to project?
Does it want to be known as a
specialty restaurant that
specializes in Filipino,