Management Functions and Organizational Structure Study Notes

Introduction to Management

• Chapter 12 focuses on key management functions, including:

  • Planning

  • Organizing

  • Leading/Directing

  • Controlling

• Emphasis on the importance of:

  • Organizational Structure

  • Time Management and Teamwork

Functions of Management

1. Planning

   • Involves creating goals, objectives, strategies, policies, procedures, and determining in advance what will happen.

   • Example in foodservice includes menu development, creating budgets, and developing schedules.

   • Plans facilitate organizational effectiveness by establishing goals and procedures to reach them.

2. Organizing

   • Process of grouping activities, delegating authority, and coordinating relationships to accomplish organizational goals.

   • Includes staffing, which encompasses recruitment, selection, training, and development of employees.

   • Essential in establishing formal lines of authority and allocating resources effectively.

3. Leading/Directing

   • Refers to interacting with and directing individuals in the organization to complete tasks and meet organizational goals.

4. Controlling

   • Process of ensuring that plans formulated in the planning phase are followed and effectively managed.

Introduction to Planning and Organizing

• Planning involves selecting goals (desired outcomes like increased sales) and choosing strategies (courses of action) for achievement.

• Organizing refers to structuring and coordinating work into tasks and departments to meet goals, also involving resource allocation (salaries, space, equipment).

• Key function of organizing is establishing a formal authority framework.

Dimensions of Planning

• Planning types include:

  • Strategic: Establishing overall mission, goals, long-range objectives, and strategies.

  • Operational: Setting short-range objectives and strategies to enhance subsystem performance.

  • Policies: Guidelines for decision-making and established procedures for regular activities.

  • Emergency Preparedness: Strategies to ensure readiness for unforeseen events.

• Strategic vs. Operational Planning:

  • Strategic plans are broader, long-term (3-10 years), and directional.

  • Operational plans are more immediate, supporting daily activities aligned with strategic goals.

Strategic Planning Process

• A comprehensive approach that includes:

  • Writing vision, philosophy, slogan, mission statement, values, policies, procedures, and schedules, followed by implementation and control.

  • Collaboration in developing plans is encouraged for better buy-in from all stakeholders.

• Example of a mission statement: Starbucks' mission is to “inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.”

SWOT Analysis

• SWOT stands for Strengths, Weaknesses, Opportunities, and Threats:

  • Strengths: High satisfaction ratings, cutting-edge menu, qualified employees.

  • Weaknesses: Challenges in retaining quality personnel, higher food costs, outdated POS systems.

  • Opportunities: Availability of local organic products, potential expansion of services.

  • Threats: Declining student enrollment, increasing competition from foodservice contractors, foodborne illness risks.

• Application of SWOT:

  • Build on strengths, correct weaknesses, exploit opportunities, counter threats.

Objectives and SMART Goals

• Goals (broad) vs. Objectives (specific):

  • Example objectives for sustainability:

  • Reduce food waste by 20% within one year.

  • Decrease water consumption by 10% by 2022.

  • Double local and organic food purchases by January 2023.

  • SMART criteria: Specific, Measurable, Achievable, Realistic, Time-bound.

Levels of Management

• Top Management: Responsible for overarching planning.

• Middle Management: Responsible for policy development.

• First-line Management: Focus on procedures and day-to-day operations.

Developing an Organizational Chart

• Key considerations when developing organizational structure include:

  • How to organize into departments that align with goals.

  • Division of labor and specialization among employees.

  • Establishing a clear chain of command and communication channels.

Departmentalization

• Grouping of activities into departments can be based on:

  • Functional: Based on roles (production, sales, etc.).

  • Geographical: Local adaptation.

  • Customer-based: Dividing by customer type.

  • Product/Process: Related to specific outputs produced.

Authority and Responsibility in Management

• Authority: Right of managers to direct and make decisions, delegated from top to lower levels.

• Responsibility: Obligation to perform assigned tasks, cannot be transferred.

• Accountability: State of being answerable for performance.

Time Management for Managers

• Identification of time-wasting activities:

  • Overuse of phones and emails, excessive social interactions, poor filing systems.

• Techniques for effective time management:

  • Daily logs to identify time usage.

  • Prioritizing important tasks and delegating where necessary.

  • Utilizing the 80-20 Pareto Principle in time management.

Working Effectively in Teams

• Definitions:

  • Work Groups: Have a clear leader and perform independently toward a goal.

  • Work Teams: Collaboratively work on processes, with shared leadership and accountability.

• Stages of Team Development (Tuckman): Forming, Storming, Norming, Performing, Adjourning.

• Factors that can affect group performance include:

  • Size and composition of the group, leadership style, and established norms.

Productive Meetings

• Preparation for meetings includes having a clear agenda.

• During meetings, leaders guide discussions and ensure participation.

• Post-meeting, summarize outcomes and collect feedback for improvement on future meetings.

Organizational Culture

• Defining and understanding the shared values and norms influencing organizational behavior.

• Importance of having a positive culture that encourages integrity, inclusivity, and community involvement.