1. Chapter 19 Establishing Performance Standards
Principles of Food, Beverage, and Labour Cost Controls,
Canadian Edition

2. Learning Objectives After reading this chapter, you should be able to:
19.1 Explain the meaning and significance of quality and quantity standards in labour control.
19.2 Identify the three steps used to establish standards and standard procedures for employees.
19.3 Explain the need for an organizational plan.
19.4 Describe an organization chart and explain its purpose.
19.5 Describe job analysis, and explain its importance in developing job descriptions and making employment decisions.
19.6 Identify the three parts of a job description and use these to prepare a job description.
19.7 Differentiate between variable-cost personnel and fixed-cost personnel.
19.8 Explain how records of business volume are used in scheduling.
19.9 Differentiate between the scheduling of variable-cost personnel and the scheduling of fixed-cost personnel and prepare a schedule for each.
19.10 Describe how to develop performance standards based on a test period.
19.11 Explain how to determine appropriate staffing levels for an establishment given a table of standard staffing requirements and a sales forecast.

3. Establishing Performance Standards and Standard Procedures
Organize the enterprise
Develop an organizational plan
Prepare job descriptions
Complete a job analysis
Schedule employees
Determine appropriate levels of staffing

4. Organizational Plan
Manager must develop a clear picture of the nature of the operation
This includes the:
type of clientele
nature of the products offered
extent and type of service
Include an estimate of the number of meals to be prepared and served
Prepare an organization chart

5. Job Analysis
Interviews and observations are designed to provide information about the following:
Job objectives
Specific tasks required to achieve objectives
Performance standards
Knowledge and skills necessary
Education and experience required

6. Job Descriptions Answer three questions: Typically three parts:
What is to be done?
When is it done?
Where is it done?
Typically three parts:
Heading that states the job title and department
Summary of the duties of the job
List of the specific duties assigned to the job

7. Job Descriptions Performance criteria: Job specifications:
statements that describe an acceptable level of job performance
Job specifications:
describes the specific skills needed for a given job and the kinds and levels of education and experience required

8. Calculating Standard Hours
Standard work hours
the number of employee work hours required for a given volume of work
Example: 8 servers for 500 covers in a three-hour lunch period
Standard work hours = Number of servers × Number of hours
8 servers × 3 hours = 24 work hours

9. Scheduling Employees
Variable-cost personnel are linked to business volume, as volume increases, more personnel in this category are hired.
Fixed-cost personnel are numbers that are unrelated to business volume, examples include managers, chefs, maintenance personnel.

10. Calculating Standard Cost
Standard labour cost
Example:
24 hours × $8.50 per hour = $204 standard cost
Standard cost =
# of standard work hours X Hourly wage

11. Key Terms Fixed-cost personnel, p. 497
Standard staffing requirements, p. 512
Job analysis, p. 492
Standard work hours, p. 512
Job description, p. 493
Variable-cost personnel, p. 496
Job specification, p. 494
Median, p. 504
Organization chart, p. 490
Organizational plan, p. 489
Performance criteria, p. 493
Standard labour cost, p. 514

12. Chapter Web Links Actoris: www.actorissoftware.com/xpressschedule.php
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13. Copyright
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