Establishing Performance Standards

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EstablishingPerformance Standards

• HRT 276 Chapter 19
• Part IV Labor Control

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Thanks to

• The information in this presentation comes from
  Chapter 19
• Principles of Food, Beverage, and Labor Cost
  Controls
• By Paul R. Dittmer
• 7th Edition. 2003. New York John Wiley Sons

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Introduction

• Food and beverage operations vary, therefore
• Job categories vary
• Number and types of employees vary
• Generally, the more complex the preparation
  methods
• The more HOH job categories
• The greater the degree of job specialization
  more different HOH people
• Generally, the more elaborate the service level
• The more FOH job categories
• The greater the degree of job specialization
  more different FOH people
• Goal each person performing as effectively as
  possible

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Establishing Standards

• Quality
• With quality standards in mind for the type of
  food and beverage, establish appropriate
  standards for HOH and FOH employees
• Quality is measured using employee KSAs
• Knowledge (mental tasks)
• Skills (physical tasks)
• Attitudes (defined by using objective, observable
  actions and behaviors while performing tasks)

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Establishing Standards

• Quantity
• Set quality standards first, then develop
  corresponding quantity standards
• Quantity defined
• The number of times a task is performed
• In a given amount of time
• At an established level of quality
• Measuring Quantity
• With tasks number of times per hour
• Might be measured in dollars or guests per hour
• Might be per shift, per meal period, per day, or
  per employee

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Establishing Standards

• Quality standards developed using time motion
  studies
• Concept from manufacturing industry
• Concepts are sound FB is unique
• Production is linked to immediate customer demand
• Rate of production must consider perishable
  products
• Generally, FB employees multi-task
• Common measurements
• HOH Reasonable Expectancies how long should
  this procedure or recipe take when performed by
  an employee with normal experience
• FOH track guests per hour and table-turn
  averages to generate guests (or sales) per hour
  or per shift benchmarks

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Establishing Standard Procedures

• Establishing SOPs Step 1 of 3
• Organize the operation on paper
• Organizational Chart
• Show positions
• Identify reporting and communication
  relationships
• Many chart styles
• Generate staffing requirements
• Staffing is not scheduling
• Staffing is analyzing the number of positions
  required, the number of people needed in each
  position for all volumes of business, and the
  amount of time each position will require
• A schedule contains names of people

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Establishing Standard Procedures

• Establishing SOPs Step 2 of 3
• Prepare job descriptions
• Job Analysis - Obtain KSA information for each
  position
• Interview
• Observe
• Evaluate and identify
• Job objectives
• Specific tasks required to achieve objectives
• Performance standards
• KSAs necessary
• Education, experience, and ability required

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Establishing Standard Procedures

• Establishing SOPs Step 2 of 3 (continued)
• Write Job Descriptions describe the job
• What is to be done?
• When is it done?
• Where is it done?
• What are the performance criteria?
• Write Job Specifications specifies the person
• An outline of qualifications
• Qualifications include KSAs
• Some are specific Knowledge ServSafe
  Certified Skill Carry an oval tray with 4
  plates
• Some are general Attitude Smiles while on the
  phone

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Establishing Standard Procedures

• Establishing SOPs Step 3
• Schedule employees
• Variable cost staff Number needed linked to
  business volume
• Fixed cost staff Number unrelated to
  business volume
• Costs can be forecasted with staffing projections
• Costs can be forecasted with schedules
• Remember, a schedule has names
• Remember, a schedule should be considered an
  invoice

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Standard Staffing Requirements

• Deciding type, how many, and when
• Done for both HOH and FOH
• Done for varying levels of sales volume
• Standard Work Hours
• Number of employees to perform a given volume of
  work
• Number of people x Hours per person Total works
  hours
• Standard Cost
• Standard work hours at the wage per hour for the
  position or for the average wage at a particular
  position
• Number of hours x Wage per hour Total hourly
  cost
• Remember to add the percent of indirect costs to
  get total cost