Food and Beverage Management
Articles Review myriad of ingredients go into the stew that is successful food and beverage service, including: good equipment, good location, excellent product, pleasant atmosphere, quality middle-level management, forward-thinking administration-level hierarchy, and sincere / consistent customer service. And moreover, a vitally essential component which completes the recipe for food and beverage success is a terrific staff, which springs from the planning that goes into finding talent, followed by the training and maintenance of staff excellence through intelligent processes. This paper reviews those issues, and the research which delves into how notably competent HR and hands-on management can bring - and keep - high-caliber employees on board successfully.
Article #1: "How the achievement of human-resources goals drives restaurant performance," by Daniel J. Koys, Cornell Hotel & Restaurant Administration Quarterly
Attitude" has a different meaning in the 21st Century than it did in previous years. To often today, it means something like, having a chip on one's shoulder, or being pushy. Meantime, for the purposes of this research article, the "attitude" that management expects from employees - which has everything to do with the success - is the 4th definition of "attitude" on Merriam-Webster's Web page: a) "a mental position with regard to a fact or state"; b) "a feeling or emotion toward a fact or state."
What, according to Koys, leads to customer satisfaction? "...Employees' high functioning and favorable attitudes lead to customer satisfaction, loyalty, and a perception of value." And those customer attitudes, derived from employee attitudes, "lead to company profits and growth." This concept, Koys notes, results from the "service-profit chain" concept - which results not from sociological and psychological theorists, but from data collected, which found a "relationship between employees' perceived ability; employees' satisfaction, and employees' length of service on one hand, and customer satisfaction on the other."
The study alluded to above, which led to the "service-profit chain" was conducted by the National Restaurant Association (NRA). Meanwhile, Sears did an interesting study - in 800 of its stores - analyzing the "employee-customer-profit" chain; results showed "employees' attitudes about Sears and about their jobs led to positive behavior toward customers," Koys reports. And, just as in the NRA study, an improvement in employees' attitudes led to an improvement in the growth of revenue - all springing from more satisfied customers.
In continuing to develop his theme - satisfied employees translate to satisfied customers which translates to profits - Koys also discusses a logical yet innovative concept developed by Dennis Organ, called "Organizational Citizenship" (OC). Basically, OC is "going beyond the call of duty, and being nice about it." OC is not an "enforceable requirement" of one's job, but rather a matter of "personal choice," and clearly, employers should look for the kinds of people who show aptitude for the canons of OC. Organ's five dimensions of OC behavior include the following: conscientiousness (performance beyond minimum requirements); altruism (helping others); civic virtue (responsibility for participating in the political life of the company); sportsmanship (not complaining; keeping positive attitudes); and courtesy (respecting each other).
And, why would management go to great lengths to find talent that meets Organizational Citizenship criteria?
Because people that don't exhibit the strengths that OC calls for, will leave, or be fired - and turnover is not at all a good thing for a restaurant, for these reasons: a) turnover negatively influences company performance; b) turnover increases separation costs, replacements costs, and training costs; c) turnover brings inexperienced employees on board, who make mistakes that cause customers to be unhappy. Furthermore, Koys cites two studies related to turnover: one found that "the cost of turnover for a front-desk employee at a hotel was about 30% of salary," and the other reported that the per-employee cost of turnover was almost "$5,000 for a typical employee in a typical hotel."
Statistically, Koys points out, behavior studies show the relationship between Organizational Citizenship behavior "in year one and financial performance in year two..." explains 19% of the positive variance in financial performance in year two. Simply stated, profits increased by about 19% because management hired and trained people that lived up to OC standards.
Article #2: "Hospitality-management Competencies," by Christine Kay & John Russette, Cornell Hotel & Restaurant Administration Quarterly
What specific competencies should executives look for, and expect, in an applicant for a general manager's (GM) position - or management trainees' slots - in food and beverage in a hotel-restaurant environment? The authors of this article discuss and consolidate three "landmark studies" - (Tas, Pkeiyi, Sandwith) - which offer a considerable body of knowledge...
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