Management and Legal Standards in Food Service Final Exam Review

Management Functions and Organizational Structure

• Functions of Management – POSDCoRB: Comprehensive management involves seven key functions represented by this acronym. Students must know both the acronym and the meaning of each function:

  • Planning: Determining goals and the means to achieve them.

  • Organizing: Arranging resources and tasks to meet goals.

  • Staffing: Recruiting, selecting, and training employees.

  • Directing: Leading and motivating employees.

  • Coordinating: Synchronizing various parts of the organization for smooth performance.

  • Reporting: Keeping stakeholders informed through records and research.

  • Budgeting: Fiscal planning, accounting, and control.

• Organizational Chart Terminology:

  • Line vs. Staff: Line positions are directly involved in the primary activities of the business (e.g., producing food or serving guests), whereas Staff positions provide specialized support (e.g., HR, Accounting) to line positions.

  • Reporting Relationships: The chart identifies the hierarchy of who reports to whom.

  • Span of Control: Refers to the number of employees a supervisor can effectively manage.

  • Chain of Command: The continuous line of authority that extends from upper levels of an organization to the lowest levels.

  • Unity of Command: The principle that an employee should report to only one supervisor to avoid conflicting instructions.

  • Delegation: The assignment of authority and responsibility to another person (usually from a manager to a subordinate) to carry out specific activities.

Recruitment, Training, and Professional Development

• Recruitment Strategies:

  • Internal Sources: Seeking candidates from within the current workforce (e.g., promotions).

  • External Sources: Seeking candidates from outside the organization (e.g., job boards, career fairs).

• Training and Orientation:

  • Orientation Purpose: Introducing new hires to the establishment's culture, rules, and expectations. An Employee Handbook is central to this; employees must sign it to ensure they are held responsible for the rules and regulations identified within.

  • Different Training Methods: Includes various approaches to skill acquisition.

  • ManageFirst Skills: Identifies two specific areas: Interpersonal skills and Employee Development skills.

• Professional Development:

  • First Step: Identifying the skills the employee will gather or assessing the need for development.

  • Responsibilities: The manager is responsible for assessing needs, recommending goals, and monitoring progress. The employee is responsible for achieving the agreed-upon goals.

  • Timing: Should begin as early as possible in the employment cycle.

  • Development Methods:

    • Cross-training: Training employees to perform multiple jobs. Benefits include helping with scheduling challenges, discovering new interests, boosting morale, and reducing turnover. The first step is to consider which skills the employee will acquire.

    • Delegation: Used as a time management alternative and a professional development opportunity.

    • Mentoring: High value for both the mentor (gives back, develops relationships) and the mentee (addresses problems and challenges).

    • Others: Coaching (one-on-one, personalized feedback), Job rotation, on-the-job training, and special projects.

Management Skills and Tools

• Managerial Skills:

  • Technical Skills: Knowledge and proficiency in a specific functional area (e.g., cooking techniques, software usage).

  • Human Skills: The ability to work well with and lead other people.

  • Conceptual Skills: The ability to think abstractly and see the organization as a whole.

• Tools of Management in Foodservice:

  • Job Analysis: Determining the duties and skill requirements of a job and the kind of person who should be hired for it.

  • Job Description: A written statement of what a worker actually does, how they do it, and what the job's working conditions are.

  • Job Specification: A list of the human requirements (education, skills, personality) necessary for a job.

  • Work Schedule: Identifies specific times and tasks for staff.

  • Skills Matrix: A grid used to track the skills and competencies of employees in a team.

• Budgeting:

  • Single-use Plan: A budget is a primary example of a plan designed for a specific time period or purpose.

  • Proforma Budget: An estimate of predicted revenue and expenses used for financial forecasts and securing funds from investors or lenders prior to starting a business.

Leadership and Communication

• Leadership Styles:

  • Autocratic: Senior management makes decisions with little input from others. This is most effective when working with an inexperienced staff who must learn procedures quickly.

  • Bureaucratic: Management by the book, strictly following every rule.

  • Democratic: Management encourages participation in decision-making.

  • Laissez-faire: A hands-off approach where employees are given freedom to make their own decisions.

• Communication Dynamics:

  • Verbal vs. Non-verbal: Communication occurs through spoken/written words as well as body language and tone.

  • Grapevine: The informal communication network within an organization.

  • Effective Communication: Clear exchange of information that involves overcoming barriers.

• Barriers to Effective Communication: Distractions, personal opinions, cultural or generational differences, making assumptions, and Jargon (technical language specific to a field).

Employee Relations and Coaching

• Teams and Ethics: Integrity is the most important quality for a supervisor in a team setting. Trust takes years to build and can be lost in an instant.

• Coaching (3-Step Process):

  1. Compare actual behavior to expected behavior.

  2. Reinforce positive behavior and correct negative behavior. Negative discussions must always be conducted in private; never correct an employee in public. Evaluate work by comparing performance to standards.

  3. Practice ongoing coaching.

• Conflict Resolution Hierarchy:

  • Negotiation: Parties discuss directly to find a solution.

  • Mediation: A neutral third party helps the parties reach a voluntary agreement.

  • Arbitration: A third party makes a binding decision to resolve the dispute.

• Discipline and Termination:

  • Progressive Discipline: Shows commitment to the employee. Steps include: Oral warning, written warning, probation, and termination.

  • Wrongful Discharge: Legal action by a former employee alleging discharge violated anti-discrimination laws, public policy, or implied contracts/promises.

  • Checklists: Termination/separation checklists and exit interviews are used to ensure administrative compliance and gather feedback.

  • Employment at Will: A legal concept where an employer can terminate an employee for any reason (as long as it is not illegal) and the employee can quit for any reason.

Scheduling and Operations

• Work Management: Managers use a $9$-step process to plan, manage, and evaluate employee work.

• Types of Schedules:

  • Master Schedule: A template based on sales forecasts that defines overall staffing needs (Created first).

  • Crew Schedule: The specific schedule for individual employees for a certain period.

  • Scheduling Procedure: The first step in scheduling employees is determining the labor needs based on sales volume. Employees should find out about their detailed schedule as far in advance as possible.

• Meetings and Records:

  • Pre-shift (Line-up) Meeting: A brief meeting before a shift to communicate daily specials, volume expectations, and focus areas.

  • Manager’s Communications Log: Records general shift events and notes for other managers.

  • Critical Incident Record: A permanent record of significant events, such as accidents or major policy violations.

• Standards vs. SOPs:

  • Standards: Quality expectations and goals.

  • Standard Operating Procedures (SOPs): Routine procedures required to attain standards consistently. Smooth operation depends on the coordination of many people meeting these quality expectations.

Legal and Regulatory Framework (Federal)

• Equal Employment Opportunity Commission (EEOC): Established via the Civil Rights Act of $1964$. It enforces laws against workplace discrimination based on $12$ protected classes: Age, Disability, Equal Pay/Compensation, Genetic Information, Harassment, National Origin, Pregnancy, Race/Color, Religion, Retaliation, Sex, Sexual Harassment, Sexual Orientation, and Gender Identity.

• Specific Antidiscrimination Laws:

  • Genetic Information Nondiscrimination Act (GINA) of $2008$: Protects against discrimination based on genetic info in health insurance and employment.

  • Pregnancy Discrimination Act (PDA): Illegal to discriminate due to pregnancy or related conditions. Pregnant employees must be allowed to work as long as they can perform the job.

  • Equal Pay Act of $1963$: Requires equal pay for equal work in the same workplace.

  • Age Discrimination in Employment Act (ADEA) of $1967$: Protects workers aged $40$ and older.

  • Americans With Disabilities Act (ADA) of $1990$: Prohibits discrimination against qualified individuals with disabilities. Requires reasonable accommodation unless it imposes "undue hardship." Disability details MUST be kept confidential. HIV, AIDS, Hepatitis B and C, and Tuberculosis are considered disabilities under ADA.

  • Immigration Reform and Control Act (IRCA) of $1986$: Prohibits discrimination based on national origin or citizenship.

• Department of Labor (DOL) Regulations:

  • Fair Labor Standards Act (FLSA): Establishes minimum wage, overtime pay, record-keeping, and child labor standards. Note: Overtime should never be planned for in advance; requiring approval is a method of control.

  • Family and Medical Leave Act (FMLA): Provides $12$ work weeks of unpaid, job-protected leave in a $12$-month period for the birth/adoption of a child or care of a spouse, child, or parent.

  • Occupational Safety and Health Act (OSHA) of $1970$: Reduces workplace injuries and deaths. Requires notification of bloodborne illnesses.

  • COBRA: Allows employees to continue group health benefits (typically for $18$ months) after job loss or life events. Individuals may pay up to $102\%$ of the cost. The plan administrator communicates status.

  • USERRA: Protects employment rights of uniformed service members.

  • Worker Adjustment and Retraining Notification Act (WARN): Requires $60$ days advance notice for plant closings or mass layoffs.

  • Employee Polygraph Protection Act (EPPA): Prevents the use of lie detector tests for pre-employment screening, with certain exceptions.

  • Employee Retirement Income Security Act (ERISA) of $1974$: Protects employee pensions and healthcare plans from unethical administration.

State and Local Regulations and Forms

• Unemployment Insurance: A federal-state program providing benefits for workers unemployed through "no fault of their own." Most states pay for a maximum of $26$ weeks.

• New York State Workers’ Compensation Board: Ensures employers provide compensation for medical costs and lost wages for employees injured at work.

• Liquor Boards/Authorities: Regulate legal age to drink, serve, and enter establishments, and rules for serving intoxicated or pregnant guests.

• Forms:

  • I-9 (Employment Eligibility Verification): Proof that an employee is legally able to work in the United States.

  • W-4 (Employee’s Withholding Certificate): Used for federal income tax withholding.

• Bona Fide Occupational Qualification (BFOQ): A legally allowed hiring restriction based on sex, religion, or national origin (e.g., a female attendant for a women’s restroom).

Compensation, Health, and Safety

• Tipped Employees: Both the employer and employee are responsible for reporting tip income. Under FLSA, employers using a tip credit must ensure total wages meet the minimum wage.

• Labor Cost: Includes both wages and benefits.

• Exempt vs. Non-exempt: Exempt employees earn a fixed salary regardless of hours worked; Non-exempt employees are paid hourly and are subject to overtime.

• Social Security: A federal pension program for retirees and people with disabilities, funded through payroll taxes.

• HIPAA: Protects access to healthcare by limiting restrictions on enrollment and preexisting conditions.

• Sexual Harassment Types:

  1. Quid Pro Quo: Manager requests sexual favors as a condition for employment opportunities (always deliberate).

  2. Hostile Environment: Repeated offensive comments, jokes, symbols, or intimidating behavior (can be deliberate or indeliberate). The victim determines if the behavior is offensive.

• Workplace Safety:

  • Drop Safe: Minimizes workplace violence by limiting cash on hand.

  • Hazard Communication Standard (HAZCOM/Right-to-Know): Protects employees from physical and health hazards (explosions, chemical exposure). Requires Safety Data Sheets (SDS/MSDS).

  • HACCP: Focuses on flow of food to prevent/reduce hazards.

  • Child Labor: $16$ and $17$ year olds can serve food but cannot operate hazardous equipment in the back-of-the-house.

Health and Disease Management

• ADA Guidelines: HIV, AIDS, Hep B/C, and Tuberculosis are classified as disabilities. These cannot be spread through food/casual contact, so employees should not be removed from food handling solely for these diagnoses. Establishments may obtain medical info regarding capability to work.

• FDA Food Code ($2022$) Reportable Diagnoses: If a health practitioner diagnoses an employee with any of the following, they must be excluded and reported to authorities:

  • (a) Norovirus

  • (b) Hepatitis A virus

  • (c) Shigella spp.

  • (d) Shiga toxin-producing Escherichia coli

  • (e) Typhoid fever (Salmonella Typhi)

  • (f) Salmonella (nontyphoidal)

• Action: Exclude from establishment, report to local regulatory authorities, and coordinate with medical practitioners for return to work.

Questions & Discussion

• Q: Which leadership style is most effective when working with an inexperienced staff who must learn procedures?

• A: Autocratic.

• Q: What are permitted interview questions?

• A: "Where do you live?" is permitted. "How many children do you have?" or questions about religion are NOT permitted.

• Q: What is the most common OSHA violation in eating/drinking establishments?

• A: Violation of the Hazard Communication Standard (HCS).

• Q: Who is responsible for COBRA communication?

• A: The plan administrator.

• Q: Who is responsible for reporting tip income?

• A: Both the employer and the employee.