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Management Functions

and
Linking Processes
Management

A critical element in helping transform inputs


of foodservice system into outputs.

Process of integrating resources for


accomplishments of objectives.
Management as a Part of Foodservice
System Model

CONTROL

Management
Functions
INPUT Functional Linking OUTPUT
Subsystems Processes

MEMORY

FEEDBACK
Management

ACTIVITIES
Planning
Organizing
Staffing
Directing
Controlling

RESOURCES
Types of Managers

Level of Job

TECHNICAL
CORE
TOP
MANAGERS

MIDDLE
MANAGERS

FIRST-LINE
MANAGERS
(SUPERVISORS)
TQM Managerial Levels

Customers

Employees

Managers
Nature of Responsibilities

General Manager

Functional Manager
Roles of Managers

INTERPERSONAL ROLES INFORMATIONAL ROLES


Figurehead Monitor
Leader Disseminator
Liaison Spokesperson

DECISIONAL ROLES
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
Interpersonal Roles
Figurehead Role
-The representational responsibility of
management.
Leader Role
-Responsible for the work of staff.
Liaison Role
-Deals with people inside and outside the
organization.
Informational Roles
Monitor
- Constantly searches for information to
use to become more effective.
Disseminator Role
- Transmits information to subordinates
who otherwise who probably have no access
to this information.
Spokesperson Role
- Transmits information to people inside
and outside the organization or unit.
Decisional Roles
Entrepreneur
-The voluntary initiator of change.
Disturbance Handler
-Responds to situations that are beyond his
or her control.
Resource Allocator -Decides
how and to whom the resources of the
organization will be distributed.
Negotiator Role
-Participates in a process of give and take
until a satisfactory compromise is reached.
Management Skills
Technical Skill
-Involves an understanding of , and
proficiency in, a specific kind of activity,
particularly one involving methods or
techniques.

Human Skill or Interpersonal Skill


- Concerns working with people and
understanding their behavior.
Conceptual Skill
-The ability to view the organization as a
whole, recognizing how various parts depend
on one another and how changes in one part
affect other parts.
Managerial Levels and Skills

EXECUTIVE

TECHNICAL
HUMAN

MANAGER CONCEPTUAL

EMPLOYEE
Management Functions

Planning
-Determining in advance what should
happen.
- It is essential as a manager organizes,
staffs, directs and controls.
Hierarchy of Plans

GOALS,
OBJECTIVES

POLICIES

PROCEDURES

METHODS
Level of Management

TOP GOALS,
MANAGEMENT OBJECTIVES

MIDDLE POLICIES
MANAGEMENT

FIRST-LINE PROCEDURES,
MANAGEMENT METHODS
Management Functions

Organizing
-Grouping activities, delegating authority,
and creating relationships, horizontally and
vertically.
-The outcome of organizing is the
development of the formal organization,
usually depicted in the form of chart.
Organizational Structure

Itis based on the objectives that management


has established and on plans and programs to
achieve these objectives.
Different Types of
Organizational Structure
Traditional Organization
-Pattern of formal relationship and duties.
-Assignment of tasks to different units or people
of the organization.
-Primary reason of traditional organization is to
establish lines of authority, which create order.

Innovative Organization
-Employers are challenged to improve the
quality of work life and to develop a corporate, or
organizational culture
Quality of Work Life

Toimprove the quality of work life (QWL) in


the organization, managers need to look at
the way work is organized and the way jobs
are designed.
Participative Management
-Involves empowering employees to
participate in decisions about their work and
employment conditions.
Leader-member Relations
-Refer to the nature of the relationship
between the leader and work group.
Self-managed Team
-They do the daily work.
Team-based Leadership
-Two or more people who interact regularly to
accomplish a common purpose or goal to be
considered a group.
Corporate Culture

Also called organizational culture.

Shared philosophies, values, assumptions,


beliefs, expectations, attitudes and norms
that knit an organization together.
Division of Labor
Vertical
-Based on the establishment of lines of authority.
Chain of command clear and distinct lines of
authority within an organization- who reports to
whom.
2 Principles:
Unity of command- employee reports to only one
manager.
Scalar Principle- a clear and unbroken line of
authority extends from the bottom to top position
in the organization.
Horizontal
-Groups employees at similar levels in the
organization allowing them to work together
more easily.
Teams
-Involves the entire organization being
made up of work groups or teams rather than
the more formal organizational structure.
Matrix
-It is often used for special projects.
VERTICAL AND HORIZONTAL
TEAM
MATRIX
Underlying Concepts of Organization
Authority, Responsibility and Delegation
BOARD OF
DIRECTORS
SCOPE OF
AUTHORITY TOP
MANAGEMENT

MIDDLE
MANAGEMENT

LOWER
MANAGEMENT
(SUPERVISOR)

EMPLOYEE
Span of Management
-Often referred to as span of control.
-It is concerned with the number of people
anyone person can supervise effectively.
Formal Versus Acceptance Authority
Formal Authority
-Exists because of position in the
organization.
Acceptance Authority
-Based on the employees acceptance of
that authority.
Authority of Competence
-Based on managers competence or
expertise.
Departmentalization
Process of grouping jobs according to some logical
arrangement.

The most frequently used method for implementing


division of labor.

Departments are commonly organized by:


Function
Product
Geography
Customer
Process, equipment or time
Types of Departmentalization
Functional
Occurs when organization units are defined by the nature
of work.

Product and service


All activities required in producing and marketing products
are usually under the direction of a single manager.

Geography
Occurs in organizations that maintain physically dispersed
and autonomous operations or offices.
Customer
Based on the type of customers served.

Process/equipment
Based on the specialization needed for the large
volume produced in the operation.

Time/shift
Organizations that function around the clock.
Line and Staff Positions

Line position
A position in the direct chain of command.

Staff Position
Position intended to provide expertise, advise,
and support for line positions.
Administrative Intensity
-The degree to which managerial positions
are concentrated in staff positions.

Coordination
- Process of linking activities of various
departments in the organization.
Management Functions

Staffing
-Determining the appropriate number of
employees needed by the organization for the
work that must be accomplished.

Recruitment
Selection
Training and development
Steps in Staffing Process
Directing
-Directing human resources for the
accomplishment of objectives.

Controlling
-Ensuring that plans are being followed.

Standards
- created in the planning process define the
dimensions of what is expected to happen.
FEEDBACK

PLANNING CONTROLLING
STANDARDS PROCESS
PROCESS

-THE PLANNING- CONTROLLING CYCLE

ACTUAL PERFORMANCE
DEVIATION, MEASURED
AND CORRECTED BY
CONTROLLING

DESIREDPERFORMANCE
(STANDARDS)
~THE CONTROLLING FUNCTION OF MANAGEMENT
Management Practices
Behavior modeling
Modeling the behavior you expect from your employees.
Open door policy
Encourage employees to come to their office with ideas,
concerns and questions.
Managing by walking around
Practice in which managers walk through their operation
on a regular basis talking with employees and supervisors.
Making work fun
Having fun in the workplace.
Emerging Management Issues
Social Responsibility
-An organizations responsibility to society
that extends beyond its profit generation.
(Wheelen and Hunger, 2008)

Caroll (1979, 2004)


A companys ethical and discretionary
responsibilities encompass its social responsibility.
She proposed that business organizations have 4
responsibilities:
Economic: must do responsibility to produce goods and
services of value to society and that allow the organization to
pay its creditors and stockholders.

Legal: have to do responsibility to follow laws imposed by


government.

Ethical: should do responsibility to follow generally held


beliefs about behavior in society.

Discretionary: might do responsibility to voluntarily do good


for others.
Robbins and Coulter (2005)
Businesses that accept social responsibility are
characterized by managers who actively promote:
social justice
preserve the environment
support social and cultural activities.

Companies often are rewarded by consumers for their


social responsibility efforts.
Faville (2006)
Reported that 83% of consumers indicated they
trust a company more if it is
socially/environmentally responsible.

DaSilva (2004)
Consumers are considered switching to another
companys products to punish a companys bad
corporate behavior.
Globalization

The interaction among people and organizations of


different nations.

The advances in communication and information


technology and ease of foreign travel have resulted
in a more global society.

The economic, political, cultural, and


environmental events in one part of the world can
greatly impact those living in another part of the
world.
Parochialattitude- inability to recognize the
differences between people.

Ethnocentric attitude- perceive that the best


practices and approaches are those of their
home country.

Geocentric
attitude- focuses on finding the
best approach regardless of its national
origin.
In supporting globalization, it varies based on
ones beliefs about the process.

Levin Institute (www.globalization101.org)


Proponents of globalization helps those less
developed countries improve their economic
status and standard of living
Economic Environment

Includesthe economic system of a country,


the level of economic development in a
country, the exchange rate of its currency,
and the type of trade agreements in place.

2 Diverse Economic System


Market Economy
Command Economy
Market Economy
Capitalist or Free Market, one in which supply and
demand in the marketplace drive what is
produced.

Command Economy
Government controlled, in which a planning
agency determines what to , when to, who can
and in what quantities to produce.
Exchange rate of currency
The equivalent value of ones countrys currency in
another country, can impact international business.

Trade agreements exist among many nations


of the world.

Free Trade
Common Market
Political and Legal Environment
Impacts globalization through Trade barriers.
Tariffs
Subsidies
Quotas

Countries with unstable political systems, those


experiencing terrorism, and those with international
violence can be at risk for limits to globalization.

Legal system and types of business laws in a country


can impact the ease of globalization.
Sociocultural Environment

Includes
the culture and values that exist in
each country.

Many differences can exist.

Societys values were among the most


influential in cultural differences among
countries.
Motivation

Aim, Desire, Intention, Objective, Goal,


Purpose

Inner
force that activates or moves a person
toward achievement of goal.

Needs Drives or Motives Achievement


of Goals
Theories of Motivation

Need Hierarchy (Maslow 1943)


-People are motivated by their desire to
satisfy needs, which are arranged in the
following ascending order:
Physiological
Safety
Social
Esteem
Self-actualization
EXAMPLES OF METHODS
MASLOWS HIERARCHY
FOR SATISFYING NEEDS
SELF-ACTUALIZATION NEEDS CHALLENGING WORK ALLOWING
(REALIZING ONES POTENTIAL CREATIVITY, OPPORTUNITIES FOR
GROWTH USING CREATIVE PERSONAL GROWTH, AND
TALENTS) ADVANCEMENT

ESTEEM NEEDS TITLE AND RESPONSIBILITY OF JOB, PRAISE AND


REWARDS AS RECOGNITION FOR
(ACHIEVEMENT, RECOGNITION, ACCOMPLISHMENTS, PROMOTIONS, COMPETENT
AND STATUS) MANAGEMENT, PRESTIGIOUS FACILITIES

SOCIAL NEEDS FRIENDLY ASSOCIATES, ORGANIZED


(LOVE, BELONGING, AFFILIATION, EMPLOYEE ACTIVITIES SUCH AS BOWLING OR
ACCEPTANCE) SOFTBALL LEAGUES, PICNICS, PARTIES

SAFETY NEEDS BENEFIT PROGRAMS SUCH AS


(PROTECTION AGAINST DANGER, INSURANCE AND RETIREMENT PLANS,
JOB SECURITY, SAFE AND HEALTHY
FREEDOM FROM FEAR, SECURITY)
WORKING CONDITIONS, COMPETENT,
CONSISTENT, AND FAIR LEADERSHIP
PHYSIOLOGICAL NEEDS
(SURVIVAL NEEDS, AIR, WATER, PAY, BENEFITS, WORK CONDITIONS
FOOD, CLOTHING, SHELTER AND SEX)
Existence Relatedness Growth
Alderfer (1972) proposed a more simplistic model
of human needs that influence worker behavior.

Human needs grouped into 3 categories that


were not hierarchical in nature:
Existence: Basic needs for existence (food, water,
shelter, safety).
Relatedness: Involvement with family, friends, co-
workers and employers
Growth: Desire to be creative, productive, and
complete meaningful tasks
Achievement-Power-Affiliation

McClleland (1985) emphasized needs that are


learned and socially acquired as individuals
interact with the environment.

3 Needs:
A need to achieve.
A need for power.
A need for affiliation.
Achievement Motive
A desire to do something better or more efficiently than it
has been done before.

Following traits that an individual with high need of


achievement:
Responds to goals
Seeks a challenge but establishes attainable goals with only a
moderate degree of risk
Exhibits greater concern for personal achievement than rewards
of success
Desires concrete feedback on performance
Maintains a high energy level and willingness to work hard.
Tend to gravitate toward managerial and sales
positions.
Often able to manage themselves and satisfy the
basic drive for achievement.
Tend to get ahead in organizations because they
are producers they get things done.
Task oriented and work to their capacity, and
expect others to do the same.
Sometimes lack of human skills and patience
necessary to manage employees with lower
achievement motivation.
Power Motive

A concern for influencing people.

An individual with a high power need tends to


exhibit the following behavior:
Enjoys competition with others in situations
allowing domination
Desires acquiring and exercising power or
influence over others
Seeks confrontation with others.
Affiliation Motive
Characterized by the desire to be liked by
others and to establish or maintain friendly
relationships.

A person with a high need for affiliation tends


to be one who:
Wants to be liked by others
Seeks to establish and maintain friendships
Enjoys social activities
Joins organizations
Two-Factor Theory

Herzberg(1966), focuses on the rewards or


outcomes of performance that satisfy needs.

Related to Job Satisfaction (motivators)


Achievement
Recognition
Responsibility
Advancement
The work itself
Potential for growth
Relatedto Dissatisfaction (maintenance or
hygiene factors)
Pay
Supervision
Job Security
Working Conditions
Organizational Policies
Interpersonal relationships on the job
Expectancy Theory

Vroom (1944) and Porter and Lawler (1968)

Attempts to explain behavior in terms of an


individuals goals, choices, and expectations
of achieving these goals

People are motivated to work if they believe


their efforts will be rewarded and if they value
the rewards that are being offered.
Thetheory is based on the belief that people
act in such as to increase pleasure and
decrease displeasure.

The second part of expectancy theory is


concerned with the value the employee
places on the rewards offered by the
organization, also referred as Valence.
Reinforcement Theory

Skinner (1971)

Often called Operant Conditioning or


Behavior Modification.

Deals with how the consequences of a past


action influence future actions in a cyclical
learning process.
Intrinsic Vs Extrinsic Motivation
Intrinsic Motivation
-Is within the individual and is driven by
the interest in, enjoyment of, learning from,
and/or satisfaction from the task being done.

Extrinsic Motivation
-Are factors outside of the individual that
drive behavior. It occurs when a task is done
primarily because of external factors such as
pay, coercion or competition.
Job Satisfaction

An individuals feelings and beliefs about his


or her job.

Itis largely determined by conditions in the


environment and in the situation.

It reflects the persons attitude in the


situation.
The Relationship Among Participative Management Style, Strategy
Implementation Success, and Financial Performance
in the Foodservice Industry

Authors of the Study: Ogbeide, Godwin-Charles A; Harrington, Robert J

Year: 2011

Purpose of the Study


The study aims to consider how the degree of participation at various
hierarchical levels impacts action plan implementation success and firm financial
performance.

Specifically, the study seeks to assess the relationship among organizational


structure, involvement by top management, middle management, lower
management and frontline employees and its effect on firm performance; and,
when controlling for firm size and industry segment membership, the effect of
the relationship among direct involvement effects and interacting involvement
effects on performance.
Objectives of the Study
-To examine the relationship between management
hierarchical level of involvement and organizational
structure;
-To determine the relationship between participative
management style, strategy implementation
success, and financial performance; and
To investigate the differences between the degree of
overall participation on strategy implementation
success, and financial performance.
Introduction
Directive and participative management style in
decision making and the strategy implementation
process has been an area of research interest for a
long time in the management literature.
While much research has looked at the
participation issue, little has been done to assess
the relationship among the level of involvement at
a variety of organizational levels and the impact of
the degree of participation on firm performance
Literature Review
Decision making
Directive leadership style
Participative leadership/ participative
management style
Strategic management and innovation areas
Relationship between higher level of involvement
of organizational members and higher firm
success
Methodology
The study used survey methodology and a
random sample of members in a US State
Restaurant Association.
The analysis included comparisons between
groups using independent sample T tests and
hierarchical regression to assess direct and
interacting effects.
The questionnaire is made up of:
some forced-choice questions regarding management
implementation tactics, foodservice segments, organizational
structure, ownership type, and educational level;
some "fill in the blank" questions regarding the total number of
employees in the organization, and the official title of the
respondent;
a five-point scale, which ranged from 1="Low" to 5="Top", was
used to measure organizational performance; and
a ten-point scale, which ranged from 1="No/Low/Little" to
10="High/Very", was used to measure the environmental
factors impacting the foodservice industry, implementation
success, and the hierarchical categories of employees involved
in the strategy implementation process.
Hypotheses
H1a. Larger organizational structure will utilize strategic processes with
higher level of involvement of upper managers.
H1b. Larger organizational structure will utilize strategic processes with
higher level of involvement of middle managers.
H1c. Larger organizational structure will utilize strategic processes with
higher level of involvement of lower managers.
H1d. Larger organizational structure will utilize strategic processes with
higher level of involvement of frontline employees.

H2a. No difference in strategy implementation success between small


and large organizations.
H2b. No difference in overall profitability/financial performance
between small and large organizations.
H3a. Foodservice organizations with higher (lower) degree of
participative management style will achieve higher (lower)
implementation success than their competitive sets.
H3b. Foodservice organization with higher (lower degree of participative
management style will achieve higher (lower) overall
Implications of the Study
In general, higher top management participatory
approaches are important to enhance financial and
strategy implementation success, regardless of firm size.
The interaction of participation by all levels of the firm is
a useful approach to increase the likelihood of strategy
implementation success.
Top management and frontline employee participation
are critical organizational levels for enhancing
participative management approaches and ultimately
increasing financial performance for all foodservice firms.
Results
Of 1,600 surveys, 424 (26.5 percent response rate) were returned,
of which 324 responses were usable, containing all information.
However, in order to minimize the possibility of non-response
error, foodservice segment characteristics of the sample were
compared with the association membership, percentages by
ownership-type and numbers of units were compared between
the sample and the National Restaurant Association, and all firms
that responded were sent a second copy and asked to have a
second informant respond to the survey.
Overall, these findings indicated minimal effects due to non-
response bias, ensure inter-rater reliability of the environment
and organizational processes, and increase the external validity
beyond the borders of this sample.
Findings
The findings indicate that, regardless of firm size or industry
segment, the direct effects of greater top management
involvement and the interaction effects of one three-way
interaction (middle management, lower management, and
frontline staff) and the four-way interaction led to higher levels
of action plan success.

For the longer-term impact on financial performance, higher


participative approaches used by top management and
frontline staff were significantly associated with higher overall
profits and financial success.
Discussions and Conclusions
Strategic implementation process in organizations with larger
structure require a greater level of involvement of middle and
lower management.

Foodservice firms in the study utilized a similar participative


management style for the two key organizational levels. An
implication of this finding is that the level of involvement at these
two levels has become institutionalized across foodservice firms.

Greater levels of involvement by a variety of management levels


were related to greater strategy implementation success and
financial performance.
Value of the Study
The value of this study is the consideration of the
impact of participation by degree across four
hierarchical levels on firm performance and plan
execution success.
Limitations of the Study
The sample was drawn from a specific region in
the USA and may not be generalizable.
The study attempts to minimize the potential for
non-response bias and to ensure inter-rater
reliability but these potential threats to validity
cannot be totally ruled out.
Recommendation
Future research should be designed to expand the assessment of participative
management styles for greater detail and to determine if the degree of
participative management varies by situation (e.g. strategic, tactical or
operational decisions).

While this study assessed performance using two dimensions, future research
should utilize a "balanced scorecard" approach to performance or assess
additional relationships between participative impacts on growth, knowledge
management, innovation capabilities, employee turnover, and development of
approaches to speed good decision-making.

Further, more research should be conducted to determine how managers at


varying levels understand their communication practices and the effect it has on
firm performance as well as to determine the best practices that facilitate
effective communication, participation and decision making both across and
Corporate Social Responsibility and Competitiveness
in the Restaurant Industry in Guadalajara

Authors of the Study: Sanchez-Gutierrez, Jose;


Gutierrez-Govea, Adair; Gaytan-Cortes, Juan; Garcia-
Jimenez, Edgar

Year: 2011

Purpose of the Study


The aim of this paper is to identify the relationship
between Corporate Social Responsibility and
Knowledge Management with competitiveness.
Introduction
Guadalajara, one of the biggest cities in Mexico, has
attracted major levels of concentration of foreign
investment that has located this place as an attractive
place to do business in the western region of the country
The service industry in Guadalajara is highly complex and
requires constant attention. High quality human resources
are a main concern, therefore, Knowledge Management
and Corporate Social Responsibility becomes strategically
important in creating competitive advantages for the
industry.
Literature Review
Knowledge Management
Competitiveness
Corporate Social Responsibility
Methodology

This research work was carried out by applying questionnaires to managers,


administrators, and owners of establishments that integrate the restaurant industry in the
metropolitan zone of Guadalajara, which is located within the state of Jalisco in Mexico. I

The questionnaire was the product of a collaborative project between various educational
institutions and was structured in eight sections, covering the same numbers of variables;
among which were: Corporate Social Responsibility, Knowledge Management and
Competitiveness.

Evaluation of the responses using the Likert scale in order to determine the degree of
agreement or disagreement with each item

Analyzed the results using confirmatory factor analysis (CFA), Cronbach's alpha, and
subsequently structural equation models (SEM).

The model structure is based on an independent variable, competitiveness, and two


Hypothesis
Hypothesis 1
To greater Corporate Social Responsibility, greater levels
of competitiveness.
Analysis of Results
The statistical results for the research hypotheses
were obtained using structural equation
modelling using the same variables to check the
model structure and obtain the results, which
verified the hypotheses.
Conclusions
Corporate Social Responsibility generates higher
levels of competitiveness in companies that are
part of the restaurant industry in Guadalajara.

Small and medium enterprises which have a


strong link with philanthropic society causes are
most valued by consumers, leading organizations
to substantially improve their competitiveness
from the perspective of developing a positive
image to society.
Recommendation
Companies in the restaurant industry in Guadalajara
undertake social responsibility activities only to the
extent possible and only with available resources.

Further studies should identify Social Responsibility


practices and implement in Guadalajara.