Chapter 21 Monitoring Performance and Taking Corrective Action Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 1

Learning Objectives 21.1 Define monitoring in labour cost control and differentiate between direct and indirect monitoring of employee performance Identify the two means of direct monitoring of employee performance and give examples Describe four sources of information used for indirect monitoring and give examples Outline five-step approach used to identify discrepancy between actual and standard performance List and describe the three general causes of discrepancies between actual performance and that anticipated by standards. Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 2

Monitoring Performance Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 3

Monitoring Performance Monitoring employee performance is: gathering information about their work and results the third step in the control process May be monitored: directly indirectly or a combination of the two Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 4

Monitoring Performance Direct Monitoring: Observations by management Examine employee results Indirect Monitoring: 1.Customers 2.Employees 3.External agencies/organizations/groups 4.Managers Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 5

External Monitoring Agencies/ Organizations/Groups Government agencies Health department Fire regulations Chain organizations Franchise Food critics Media Rating organizations Zagat, Fodor’s, Tripadvisor, Urbanspoon Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 6

Corrective Action 1.Meet with appropriate staff to point out the problem and to determine its cause. 2.Identify all appropriate corrective measures that may be adopted. 3.Select the best corrective measure from among the alternatives. 4.Institute the selected measure. 5.Monitor performance to be sure that the corrective measure has the desired effect. Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 7

Performance Discrepancies Inadequate performance Many reasons Unsuitable standards Unrealistic Inappropriate Inappropriate organization Reorganization Eliminated positions Combined jobs Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 8

Causes of Inadequate Performance Improper materials provided to workers Lack of required equipment or tools Need for additional training Inadequate management or supervision Poor union-management relations Personal problems away from the job Difficulties with inter-personal relations on the job Inadequate compensation Illness Poor working conditions Improper work schedules Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 9

Key Terms Direct monitoring, p. 538 Indirect monitoring, p. 539 Monitoring, p. 538 Reorganization, p. 548 Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 10

Chapter Web Links Zagat: Fodor’s: america/canada/restaurant-reviews.htmlhttp:// america/canada/restaurant-reviews.html Tripadvisor: Urbanspoon: Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 11

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