-
List the functions of management
- Plan
- Organize
- Direct
- Control and evaluate
-
What is the basic function of management
Planning
-
Predetermined; towards which management directs its efforts; serves as motivators, provides direction
Objectives
-
Guides that define scope of permissible activity
Policies
-
Daily operations
Procedures
-
Covers period of one year or less
Usually the operating budget
Projected in days, weeks, months
Short range or operational planning
-
Up to a five-year cycle, focus on goals and objectives
Requires a mission statement of long-range vision
Long range planning
-
Concentrates on decisions, not plans
Strategic planning
-
SWOT analysis acronym and which part of the planning process is it part of
- Strengths, weaknesses, opportunities, threats
- Strategic planning
-
What is needed during disaster planning
1 gallon of water/person/day for a minimum of 3 days
-
Organizational chart:
- Shows relationship of positions and functions
- Depicts lines of authority shown with solid lines
- Advisory (staff) positions shown with dotted line
- NOT SHOWN: degree of authority at each level, informal relationships
-
Shows command relationship from top to lowest level
Begins with one person and extends downwards
Chain of command
-
Advise and support the line, but NOT involved in day-to-day operations
(Personnel director, consultant dietitian in a nursing home)
Advisory staff; specialist
-
Serves as both line and staff
Has limited authority over a segment of activity because of specialized knowledge, units are defined by the nature of the work.
(The responsibility of purchasing may be given to a head purchasing agent who oversees that location in all departments)
Functional staff
-
Number of individuals or departments under the direction of one individual
Span of control
-
Type of span where more levels are needed; need more managers
Needed with newly-hired personnel
Narrow span
-
Type of span where fewer levels and fewer managers are needed; used with highly trained, highly motivated workers
Wide span
-
Concentric model of organization (circular)
- Improves representation of dynamics of personal relationships because functions are centered around individuals, not above or below them
- Eliminates above and below concepts
- Presents an organization without loose ends
-
Acute care conventional stuffing patterns:
17 minutes per meal or 3.5 meals per labor hour
-
Extended Care facility staffing patterns:
5 meals/labor hour
-
Cafeteria staffing patterns:
5.5 meals/labor hour
-
School Food Service staffing patterns
13-15 meals/labor hour
-
When determining meals served, consider _____
Meal equivalents
-
A measure of productivity defined as the amount of all food sales divided by the average cost of a typical (prototype) meal
Meal equivalent
-
Minimum number of employees needed to staff the facility; counts productive hours (hours actually worked)
Absolute FTE
-
Minimum number of employees needed to staff the facility and also takes into account the benefit days and days off
Adjusted FTE
-
FTE/year
Labor hours worked that year/2080
-
Relief workers: approximately ____ employees are necessary for everyday coverage of full-time positions
1.55
-
To determine the actual number of relief workers needed:
- multiply the number of full-time positions by 0.55
- To determine number of employees needed: add relief workers to full-time positions OR multiply full-time positions by 1.55
-
Relief worker can cover the "days off" of ____ full-time workers each week
2.5
-
Purpose of work simplification procedures
eliminate unnecessary parts of job and those that add no value
-
Looks at SMALLEST parts of the job (hand movements, steps taken)
Increases productivity and decreases cost
work simplification
-
reduce motions and time required
motion economy (work simplification procedure)
-
observe random samples (intermittent observations) to determine percentage of time working or idle
work (activity, occurrence) sampling (work simplification procedure)
-
scale drawing showing path of a worker during a process
Pathway chart or flow diagram (work simplification procedure)
-
movement of hands; reduces transportation and re-plan work areas
operation charts (work simplification procedure)
-
Steps involved in process using symbols
process charts (work simplification procedure)
-
efficiency of equipment placement, studies work motions, shows number of movements between pieces of equipment
cross charts (work simplification procedure)
-
efficiency with which a production or service activity converts inputs into outputs, expressed as ratios
productivity
-
examples of productivity inputs (resources)
- labor
- money
- materials
- facilities
- energy
-
examples of productivity outputs (units of service)
meals, patient days, consults
-
to increase productivity...
increase the output or decrease the input
-
meals per labor hour equation
#meals produced/#hours worked
-
Work schedule: serves as overall plan; days on and off, vacations; basis for developing weekly schedules
master
-
Work schedule: staffing patterns for a particular operation; positions and hours worked, number of days worked per week, relief assignments
shift
-
work schedule: time sequencing of events required to produce a meal; employee assignments and menu items; quantity to prepare and the timing (what to do when)
production schedule
-
Labor turnover rate equation
- uses # of NEW employees at END OF PERIOD

-
the distribution of work to qualified people
delegation
-
For effective delegation, managers must have...
- clear understanding of what they want done
- give specific instructions
- motivate
- provide training
- require complete work
- establish adequate controls
-
What is essential for effective communication
listening skills
-
Organizational communication channels: from Department Head down through the ranks of workers (chain of command)
Use procedure manuals, policy statments
downward
-
Organizational communication channel: from workers to the Department Head
open-door policy, suggestion boxes, grievance procedures
Provides employees an opportunity to have a say in what happens in the organization
MANAGEMENT NEEDS TO RECEIVE VITAL INFORMATION FROM LOWER LEVELS
Upward
-
Organizational communication channel: between departments (Nutrition and Nursing), or between production and service within the Nutrition Department
horizontal
-
Organizational communication channel: minimizes time and effort extended in organizations
-Between functions diagonally placed (paper orders in hospital)
diagonal
-
Organizational communication channel: meets social need of group
informal channel (grapevine)
-
Motivational theory: motivated by the desire to satisfy specific needs
Maslow's hierarchy of needs
-
basic needs for Maslow's hierarchy of needs
survival needs - pay, benefits, working conditions, schedule
-
higher human needs for Maslow's hierarchy of needs (motivators)
- social (organized activities) - fun
- self-esteem (job title, praise, rewards, promotions)
- self-realization, self-actualization (realizing your potential growth using creative talents); advanced training
-
job enrichment:
advanced training - more challenging work
-
Motivational theory: motivation and maintenance approach
Herzberg's two-factor theory
-
maintenance (hygiene) factors for Herzberg's motivational theory
- satisfiers, dissatisfiers
- fair wage, insurance retirement benefit, supervision, schedule, working
- DO NOT PRODUCE MOTIVATION, BUT CAN PREVENT MOTIVATION FROM OCCURRING
-
motivators for Herzberg's motivational theory
- Job enrichment
- achievement
- personal accomplishment
- recognitition
- responsibility
- participation in decision-making
- opportunity for growth and advancement
-
Motivational theory: suggest that all people have three needs - needs to achieve, need for power, and a need for affiliation
McClelland's achievement
-
Motivational theory: attitude of the manager toward employees has an impact on job performance (based on manager's assumptions as to how employees view work)
Theory X and Y
MacGregor
-
MacGregor's Theory X
- people inherently dislike work and will avoid it if possible
- authoritarian, work-centered
- workers prefer to be controlled and directed by pressure
- motivation through fear
- NEGATIVE, AUTOCRATIC
-
MacGregor's Theory Y
- work is as natural as play or rest
- management should arrange conditions so workers can achieve goals by directing own efforts
- POSITIVE, PARTICIPATE
-
Motivational theory: If you involve people in the process, they become more productive
Hawthorne studies - Mayo
-
Hawthorne (Mayo) productivity due to:
- employees given special attention
- placebo effect (special attention improves behavior)
- work breaks increased productivity
-
Motivational theory: rewards serve as motivators only under certain circumstances
Expectancy theory - Beer, Vroom
-
Expectancy theory - Beer, Vroom: employees must believe and feel rewards...
- believe that effective performance leads to certain rewards
- feel that rewards offered are attractive
-
Motivational theory: focuses on leader's effect on employee's motivation to perform
-Motivation to behave in a particular manner is the result of an expectation that a behavior will result in a particular goal and how strongly a person desires the goal
Path-Goal Theory - Evan, House (Expectancy theory)
-
Leadership styles listed in DECREASING order of control
- autocratic
- consultative
- bureaucratic
- participative
- free rein (laissez-faire)
-
Leadership style: demands obedience, most control (crisis - fire)
autocratic
-
Leadership style: asks for input, but make final decision alone
consultative
-
Leadership style:by the book, follows procedures to the letter
bureaucratic
-
Leadership style: emerging trend in management. Encourage workers to participate in decision-making.
-Uses quality circles: small group of employees who meet regularly to identify and solve problems
participative
-
Leadership style: least control
free rein (laissez-faire)
-
-
Likert - management of conflict -- 4 basic systems of organizational leadership
- exploitive, autocratic -- job-centered
- benevolent, autocratic -- job-centered
- consultative -- employee-centered
- participative -- employee-centered
-
-most effective management of conflict
-employees worked under general supervision, the boss delegated authority, and it was employee-oriented
-decision-making spread evenly throughout the organization
-full involvement of employees in setting goals making job-related decisions
participative
-
promote someone to a level of incompetence
- Peter Principle
- don't follow, setting up for failure because skills don't match
-
Management approach:
1) formal structure that organizes and administers the work activities
2) coordination is main responsibility of management
3) focus on tasks, structure, authority
4) scalar principle
5) unity of command - each is accountable to only ONE superior
6) criticism - too mechanistic; doesn't see -group interactions and decision-making processes
traditional or classical
-
authority and responsibility flow in a direct line vertically from the highest to lowest echelons
scalar principle (traditional or classical management approach)
-
Management approach:
1) uses behavioral sciences, workers exist in social group
2) employee participation in decision-making is essential
3) improves morale and productivity
4) THEORY Z (Ouchi)
human relations (behavioral theory)
-
the value of the company is the people
- everyone who will be affected by a decision is involved in making the decision (consensus decision-making)
Theory Z (Ouchi)
-
Management approach:
1) system is an organized whole composed of interdependent parts
2) 2 parts of theory
a) open system interacts with external forces which impacts organization which has an impact on the environment (making the system open and interactive)
b) impact of changes within an organization: a change in one part affects other parts
3) this operational analysis gives the manager information to use in decision-making that involves conflicting objectives of different people or departments in an organization
systems approach
-
Management approach:
1) responds to external environment
2) Methods that are highly effective in one situation may not work in another (results differ because situations differ). Management must identify which techniques will work in a particular situation at a particular time
3) most favorable situation: task-oriented, will-liked leader, directing a well-defined job
contingency or situation leadership - Fledler
-
Management approach:
1) work-centered - workers must work at fastest pace possible and at maximum efficiency; systematic approach to improving worker efficiency
2) minimize motivation needed by supervisor
3) find the best way of performing tasks
4) focus on physical aspects of the job (no emotional)
scientific management - Taylor
-
Management approach:
1) type of democratic management that provides control from within
2) establish performance goals WITH employees
3) participative leadership
Management by Objectives (MBO) - Drucker
-
clarifies roles and responsibilities; uses rewards and punishments to achieve goals
transactional leader
-
inspire followers to become motivated to work towards organizational goals rather than personal gain; builds on and extends transactional leadership
transformational - agents of change
-
Management approach:
1) conditions necessary to change (transform) a department (leader recognizes there is a need to make a change - proactive)
2) leader depicts a future that appeals to the values, needs and aspirations of followers (defines a vision)
3) successful change requires: unfreeze the status quo, change to a new state, refreeze to make the change permanent
organizational change theory
-
Steps in controlling/evaluating:
- Measure present performance against standard performance
- 1) establish qualitative and quantitative standards
- 2) measure performance
- 3) compare to standard
- 4) take corrective action
- Document both process and outcome evaluations
-
Checklist for education and training record
- date, content of sessions
- continuing education sessions
-
Managerial characteristic skill: technical
- understanding of and proficiency in a specific kind of activity
- most important at LOWER LEVELS of management (production manager)
-
Managerial characteristic skill: human
- ability to work effectively as a group member
- important at ALL LEVELS but imperative at LOWER LEVELS of management
-
Managerial characteristic skill: conceptual
- ability to see organization as a whole (big picture)
- importance increases at HIGHER RANKS of management
-
decision-making/problem-solving steps
- recognize and analyze problem (assess)
- determine workable solutions
- gather data
- choose solutions
- take action
- follow-up the action
-
Decision-making technique:
1) more controlled - authoritative leader, controlled interactions, closely focused goals, rigid enforced procedures, responses strictly controlled by leader
2) horseshoe formation; SILENT generation of ideas by participants
3) round robin reporting - leader records ideas
4) group RANKS item in priority order; vote for final decision
nominal group technique
-
Decision-making technique:
1) designed to probe expert minds in a series of written interviews from which some consensus is sought
2) participants do not meet
Delphi technique
-
Decision-making technique: focuses on different causes of a problem; categorizes related factors to make their influence more observable.
cause and effect (fish) diagram - portrait of a problem
-
examples of causes and effects in the cause and effect (fish) diagram
event: inservicecauses: topic, speaker, attendeeseffects: sound information, pleasant experience
-
Decision-making technique: 1)the relative importance of problems 2) work on the tallest bar or problem that occurs most frequently 3) 80-20 rule: 80% of a given outcome results from 20% of an input (80% of sales come from 20% of customers
Pareto charts
-
develops the relationships involved in waiting in line
queue - queuing theory-balance cost of waiting lines with the cost of preventing waiting lines through increased service
-
repress conflict rather than settle it; creates a win-lose situation
dominance and suppression
-
"I'm the boss. Do it my way." No argument, may lead to indirect and destructive expressions of conflict.
forcing - dominance and suppression conflict resolution method
-
more diplomatic; manager minimizes the extent of disagreement and tries to talk one side into giving in
smoothing - dominance and suppression conflict resolution method
-
manager avoids taking a position; no-one is satisfied; pretends to be unaware that a conflict exists or postpones action repeatedly
avoidance - dominance and suppression conflict resolution method
-
conflict method: can be effective if members regard the procedure as fair
resolve conflict by majority vote - dominance and suppression conflict resolution method
-
may be a weak method of conflict resolution - does not usually lead to a solution that can best help the organization
compromise
-
ability to exert influence
power
-
ability to reward another for carrying out an order, give incentives, praise to reinforce certain behaviors
reward power
-
negative side of reward power, ineffective in motivating behavior change, may create resistance
-ability to punish another for not carrying out requirements
-used to maintain minimum standard of performance
coercive power
-
subordinate acknowledges that the influencer has the right to exert influence due to position (job title)
position (legitimate) power
-
belief that influencer has some relevant expertise that the subordinate does not; provides credibility
expert power
-
based on desire to identify with or imitate the influencer, how well you are liked
referent power (personality, charisma)
-
describes in general terms a competent level of nutrition care practice as shown by the NCP - knowledge
SOP (Stardards of Practice in Nutrition Care)
-
decribes a competent level of behavior in the professional role (6 domains of professionalism) - behavior
SOPP (Standards of Professional Performance)
-
Legislative branch:
-What it consists of and what it does
- Congress, Senators, Representatives
- May introduce and enact a law and con override a veto by the executive branch
-
Executive branch:
- What is consists of and what it does
- President
- may veto legislation or sign it into law
-
Judicial branch:
what it does
may discard a law if it considers it in violation of a person's basic rights and freedoms
-
Stages of a bill
- Legislation enters as a bill or a resolution
- The bill is sent to committees which schedule public hearings where testimony is taken from bill's sponsors (Nutritionist can present views here or in earlier planning stages)
- The committee revises the bill during a markup session and put into final form
- If approved it is sent to Rules Committee for debate
- It needs approval from both Houses and the President.
-
What must be passed to provide funding
Appropriations bill ($$)
-
Who are regulations written by
staff members of the agencies charged with enforcing the regulations
-
FTC acronym and what it does
- Federal Trade Commission
- Regulates content of food ads; enforces truth-in-labeling; challenges product claims when product crosses state lines
-
FDA acronym and what it does
- Food and Drug Administration
- Ensures safety of some domestic and imported food products
-
FCC acronym and what it does
- Federal Communications Commission
- Licenses radio and TV
-
notices of public hearings, proposed and final rules, agency decisions, published weekly
-Lists changes in USDA food programs
Federal Register
-
Information from floor, NO HEARINGS, lists bill with sponsors and action, issued daily when Congress is in session
Congressional Record
-
weekly update; identifies bill with sponsor and committee
Congressional Index
-
Aggressive form of action; plead cause of a group
Advocacy
-
activities aimed at influencing public officials and legislators
lobbying
-
Unemployment compensation
- insurance against loss of income
- state run
- must be employed for specific time, able and willing to work, unemployed through no fault of their own; employers pay tax on payroll
- each state has own laws that define benefits in accordance with minimum federal standards
-
Workman's compensation
- administered by state
- insurance covering employers liability for the costs of any accident incurred by an employee in connection with their job
- must furnish a safe place to work, competent supervision, instructions
-
National Labor Relations Act - Wagner Act
- supports labor
- guaranteed right to organize and join labor unions
- gave union the right to be the bargaining agent
- created the National Labor Relations Board (NLRB) -- listens to claims of "unfair labor practice"
-
Taft Hartley Labor Act - Labor Management Relations Act
- supports management
- balanced powers of labor and management; amended Wagner Act
- outlawed the closed shop; limited union shop to one year
- government can obtain injunction against strikes that endanger national health or safety
- specified unfair labor practices of the union
-
Landrum-Griffin, Labor Management Reporting and Disclosure Act
bill of rights for union members; regulates internal union affairs
-
Civil Rights Act
- prevents discrimination on basis of race, color, national origin; prohibits sexual harassment
- overseen by the EEOC (Equal Employment Opportunity Commission)
-
Equal Employment Opportunity Act
- prevents discrimination in employment based on race, color, religion, sex, national origin, political affiliation
- overseen by EEOC
-
Fair Labor Standards Act
- Minimum Wage or Wage Hour Law; set minimum wage
- for overtime work (over 40 hours in 1 week) must pay time and one-half
- minimum wage - listed at Bureau of Labor Standards
- amendment - Equal Pay Act - prohibits discrimination on basis of sex
- donated (tolerated) time - compensatable - must be paid
- child labor laws regulate work hours and duties of children
- occupations EXEMPT from minimum wage and overtime requirements: executive, administrative, professional, outside salespersons
-
Age Discrimination in Employment Act
prevents discrimination due to age
-
Family and Medical Leave Art
- applies to public agencies and private agencies employing >50 workers
- up to 12 workweeks of unpaid, job-protected leave during any 12 months for: birth or placement of a child for adoption, to care for an immediate family member, or medical leave for a serious health condition
- when you return you are guaranteed an equal job, but NOT the same job
-
Americans with Disabilities Act
- covers employers with 15 or more employees
- must provide "reasonable accommodations" - remove barriers, have wide aisles (36") and doors (32"), install ramps, lower shelves and phones, rearrange tables and chairs, flashing alarm lights
- to comply, job descriptions must specify "essential" job functions
-
HIPAA
- Health Insurance Portability and Accountability Act
- allows employees to transfer coverage of existing illness to a new employer's insurance plan
-
Illegal Immigration Reform and Immigrant Responsibility Act
places limitations on persons who remain in the US longer than permitted by their visa and/or who violate their non-immigrant status
-
studies all aspects of job, done by worker and their supervisor
-conducted first to collect info for job description
job analysis
-
reflects required skills and responsibilities
-matches applicants to job, orientation and training, employee appraisal
job description
-
duties involved, conditions, qualifications (education, experience); written for each job
-used in selection and placement of employees (hiring)
-does not have detailed information as to what to do or time involved
job specification
-
hour by hour - training - tasks and time
work schedule
-
what to do and how to do it - no time limits
job breakdown
-
more similar tasks to alleviate boredom
job enlargement
-
upgrades job by adding motivating factors
-increases number of tasks and control the employee has over the job
-Maslow and Herzberg motivator (advanced training)
job enrichment
-
locate most qualified person for job
- recruiting
- internal - promotions, transfer, rehire
- external - ads, agencies, unions
-
Fair Employment Practice Law
makes it illegal to ask about a candidate's race, religion, sex, national origin, age, marital status (after hire, can ask)
-
use checklist or preplanned strategy; gives same information on all; minimizes personal biases
structured (directed) interview
-
no definite checklist; more participation from applicant; "tell me about your last job"; sales, counseling, management (more information can be gathered)
unstructured (non-directed) interview
-
either voluntary or involuntary termination of an employee
-an exit interview can help identify personnel related problems
separation
-
payment required by law to ensure income in event of unemployment, injury or death (must be provided by employer) -- workman's comp
statutory
-
deduction of union dues from pay
check-off
-
must join union after being hired
- union shop
- illegal in public employment -- gov. jobs
-
can join union or not
open shop
-
must be member of union first before hiring
- closed shop
- illegal in public employment -- gov. jobs
-
all workers must pay agency fee, but not required to join union
agency shop
-
illegal to fire an employee who refuses to join a union even if contract has a union shop clause
right to work laws
-
an employee who represents fellow employees as the union representative
- union steward
- does not get extra pay for serving
-
one person represents a group of people to bargain with the employer
collective bargaining
-
Steps in order for collective bargaining
- Bargaining between union steward and management
- if that fails - mediation - neutral person helps settle differences; decision not binding
- if that fails - arbitration - hearing to dissolve a dispute during an impasse; decision is usually binding. Final step in bargaining
-
court order to prevent someone from doing something
injunction
-
before a change in policy can be made, it requires that ______ are in favor of the change
50% plus 1
-
disciplinary action steps
- 1. oral warning: discuss nature, cause, corrective actions; temporary in record
- 2. written warning: repeat violation or as first action if warranted; permanent in employee record
- 3. suspension: forced leave of absence without pay; permanent record
- 4. dismissal: .
-
best use of an employee evaluation is to improve their performance by
providing feedback
-
record incidents of positive and negative behavior
critical incident
-
obstacles to effective appraisals: judge on most noticeable positive treat
halo effect
-
obstacles to effective appraisals:rate everyone higher than they deserve
leniency of error
-
obstacles to effective appraisals: rate everyone as average
error of central tendency
-
Purpose of Budget development
- gives manager a basis for CONTROL - estimate of future needs
- must be flexible and adjustable according to changes
- usually reviewed monthly
-
Types of budget development
- operating budget
- cash budget
- capital budget
-
Operating Budget
- forecast of revenues, expenses, and profit for a specific period of time
- first step - forecast sales or revenue (income portion)
- then budget expenditures (labor, food, operating expenses) related to the projected level of revenue
-
Cash Budget
- projects revenues and expenses, showing inflow and output of cash
- purpose is to determine if funds will be available when needed
-
Capital Budget
- $$
- plant facilities, equipment, cost of improvements and repairs (service, maintenance contracts), expansions, replacements
- includes expenditures whose returns are expected to last beyond one year -- expensive, long lasting equipment
-
List of methods to establish line items within budget
- traditional (incremental)
- zero-based budget (ZBB)
- fixed budget
- flexible budget
- performance budget
-
Traditional (incremental)
- uses existing budget as a base and projects changes for the ensuing year in relation to the current budget
- what your doing now + more money
- usually begins with this year's expenses plus an inflation factor
- control oriented
- prepared at one level of sales or revenue
-
zero-based budget (ZBB)
- NOT this year's expenses plus an inflation factor
- begin at 0. must justify each expense
- planning oriented
- example: PPBS - Planning, Programming, Budgeting System -- past dollar allocations are NOT the basis of projections
-
Fixed budget
prepared at one level of sales or revenue (no expected major change in patient or customer count during the year
-
Flexible budget
- adjusted to various levels of operation with varying levels of sales or revenues throughout the year (changes in patient or customer count)
- closing a floor for renovation
-
Performance budget
- details what it costs to perform an activity (how much to supervise the cafeteria)
- mini budget inside big budget
-
Indirect (fixed) cost
- not affected by sales volume (number or people served), not directly evident in day to day activities, required for business to exist even if it produces nothing, cannot be readily changed
- Example: rent, taxes, interest on debt, insurance, depreciation
- stay fixed within a range of sales volume
-
Direct, variable, flexible costs
- varies directly with changes in sales (revenue); directly involved in service to customer
- Example: china, silverware, food, uniforms, laundry, repairs, benefits
-
Semi-variable costs
- both a fixed and variable component;
- a portion of the cost will remain fixed regardless of changes in sales volume
- Example: labor, maintenance, utilities
- these are divided into fixed and variable components before doing break-even analysis
-
Sunk costs
- already incurred and cannot be recouped by a new decision or alternative
- cost involved in studying merits of a new computer
-
Differential costs
- amount of increase or decrease in cost when you compare alternative choices
- difference in costs between two delivery systems
-
CPM acronym and what it does
- Critical Path Method
- helps plan and control an operation
- identifies the most critical activities, to best allocate limited resources (can lead to cost savings)
-
most readily controlled item
food cost
-
most important for food cost
menu planning
-
type of service that reduces food waste and cost
selective menu
-
purchasing method that reduces food cost
group buying
-
receiving control for food costs
weigh in and check items against invoice
-
Edible Portion (EP) vs. As Purchased (AP) price equation
-
labor cost is _____ than food cost
less controllable
-
Operating costs
- 12-18% of budget
- utilities (electricity), laundry, cleaning
-
recognizes a transaction at the time the cash is taken in or released
cash basis
-
recognizes revenues when earned and expenses when incurred (regardless of when the actual cash is received or dispersed)
accrual basis
-
records and reports transactions categorized by account number
-summary of all expenses and revenues for the month by category (meat, fruit, dairy)
general ledger
-
Profit and loss statement
- income statement or revenue and expense statement
- shows operating results over a period of time
- presents the income (revenue), expenses and profit (or loss or break-even) over the course of the budget period
-
Balance sheet
- shows financial conditions as of a particular date
- lists assets (goods and products owned) - cash, inventory, accounts receivable (amounts owed by you)
- lists liabilities - amounts owed to others
- assests = liabilities + capital (equity)
-
assess ability to meet short term debt
liquidity ratios
-
asset management, turnover ratios
- shows current effectiveness of inventory control
- are you efficiently using the assets to produce more income?
-
inventory turnover rate equation
-
net worth ratio
assess ability to meet long term debt
-
Purpose of the daily food cost report (food cost percentage)
tells you what percent of the income was spent on the food sold
-
food cost percentage equation
-
food cost per meal equation
-
meals per labor hour
# of meals produced / # of hours worked
-
profit margin
- most commonly used assessment of overall financial efficiency
- reflects the portions of sales volume remaining after paying all expenses
-
-
Purpose of payback period
determines the length of time it will take for the cash inflows from a project to equal the initial cash outlay (how much tie it will take for an investment to pay back the organization for the investment)
-
-
Budget projections formula
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What is marketing analysis
Process of identifying a need, assisting potential clients in recognizing that need, and filling that need
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Marketing channel - exchange of ownership:
producer, processor, distributor, supplier, customer
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First step in marketing process and plan
identify a need that is not being filled (market niche)
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market segmentation
- divide market into groups of people with similar product needs
- demographic variables: age, gender, race, education, income
- geographic variables: urban, suburban, climate, resources, cultural values
- psychographic: social class, lifestyle (what is important to them and their mode of living), motive (the reason the customer makes a purchase)
- behavioristic: occasions, loyalty
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product mix
- group of items you will offer
- 4 P's: product, place, price, promotion (short term)
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Social marketing
- use of marketing principles to advance a social cause, idea or behavior
- change behavior
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Business marketing
- filling customer's needs or desires
- give customers what they want
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The business plan
- organize the planning process - mission statement, what you will offer, why
- diagnose the situation - waht is currently offered, target market, price (SWOT - strengths, weaknesses, opportunities, threats)
- set goals and objectives
- develop operating plan - dates, resources, costs, deadlines
- develop a financial plan
- write the document: business name and legal entity, mission statement, description of business, goals, reasons; action plan and business summary
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Breakeven point
point at which asales revenue (income) will exactly cover fixed and variable cost
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BE equation in number of units sold
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BE equation in sales volume
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