1. Chapter 19 Establishing Performance Standards Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 1

2. Learning Objectives 19.1 Explain quality and quantity standards in labour control. 19.2 Identify 3 steps used to establish standards for employees and procedures. 19.3 Explain the need for an organizational plan. 19.4 Describe and explain an organization chart. 19.5 Describe job analysis, importance in job descriptions and employment decisions. 19.6 Identify three parts of a job description and use these to prepare a job description. 19.7 Differentiate between variable-cost personnel and fixed-cost personnel. 19.8 Explain how records of business volume are used in scheduling. 19.9 Differentiate between scheduling variable-cost personnel and fixed-cost personnel and prepare a schedule for each. 19.10 Describe how to develop performance standards based on a test period. 19.11 Explain how to determine staffing levels given standard staffing requirements and a sales forecast. Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 2

3. Establishing Performance Standards and Standard Procedures Organize the enterprise Develop an organizational plan Prepare job descriptions Complete a job analysis Schedule employees Determine appropriate levels of staffing Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 3

4. Organizational Plan Manager must develop a clear picture of the operation This includes the: type of clientele nature of the products offered extent and type of service Include an estimate of the number of meals to be prepared and served Prepare an organization chart Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 4

5. Job Analysis Interviews and observations are designed to provide information about the following: 1.Job objectives 2.Specific tasks required to achieve objectives 3.Performance standards 4.Knowledge and skills necessary 5.Education and experience required Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 5

6. Job Descriptions Answer three questions: 1.What is to be done? 2.When is it done? 3.Where is it done? Typically three parts: 1.Heading that states the job title and department 2.Summary of the duties of the job 3.List of the specific duties assigned to the job Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 6

7. Job Descriptions Performance criteria: statements that describe an acceptable level of job performance Job specifications: describes the specific skills needed for a given job and the kinds and levels of education and experience required Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 7

8. Calculating Standard Hours Standard work hours the number of employee work hours required for a given volume of work Example: 8 servers for 500 covers in a three-hour lunch period Standard work hours = Number of servers × Number of hours 8 servers × 3 hours = 24 work hours Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 8

9. Scheduling Employees Variable-cost personnel are linked to business volume. As volume increases, more personnel in this category are hired. Fixed-cost personnel are numbers that are unrelated to business volume, examples include managers, chefs, maintenance personnel. Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 9

10. Calculating Standard Cost Standard labour cost Example: 24 hours × $8.50 per hour = $204 standard cost Standard cost =# of standard work hours X Hourly wage Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 10

11. Key Terms Fixed-cost personnel, p. 496 Job analysis, p. 491 Job description, p. 493 Job specification, p. 495 Median, p. 503 Organization chart, p. 489 Organizational plan, p. 488 Performance criteria, p. 493 Standard labour cost, p. 512 Standard staffing requirements, p. 510 Standard work hours, p. 511 Variable-cost personnel, p. 496 Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 11

12. Chapter Web Links Silverware POS: www.silverwarepos.comwww.silverwarepos.com NCR POS: www.ncr.comwww.ncr.com Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 12

13. Copyright Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 13