Affects of this structure: There is a good understanding between top management and staffs. So it’s easy to transmit top management decision to staff, lower management cost, any decision can be taken easily and inexperience staff can learn quickly by getting direction from senior management. Decisions are taken quickly, so subordinates have very little idea what is going to be. At the same time implementation of any new strategy can be difficult, if the staffs are rarely interested about it. Sometimes this reluctance decrease employee’s attentiveness towards his duty.
Factors that influence individual behaviour[P3]
♦Management attitudes
An employee’s behaviour vitally affected by the management’s attitude towards his role. It is very important how the management behaves with the employee for his positive and negative jobs. Good management attitudes turn an inexperience staff experienced vey quickly.
♦Working environment
Another important factor is the environment of the work place. As most of the employee in this company are international student, so more or less they are from same background. For these reason relationship between staff are tremendous. That’s why a friendly working environment will increase the working speed.
♦Wages
Wages is the direct method of motivation. A good figure of salary inspires an employee to work attentively. If the wages is not worth for the job certainly an aemployee will look another suitable job.
♦Gratuity
It is a good idea to share the gratuity with the working staff. Gratuities add extra money on the top of the wages. It will make staff happy for their job.
♦Bonus
Sometimes in few occasion such as Christmas times when the work pressure is higher then normal time may announce a special bonus for the employees. It will express that company is very cordial to their staff.
♦Cheap accommodation
As the status the people working here are almost categories it is a good idea to arrange a cheap accommodation for them.
♦Flexible working hour
Among the fifty employees most of them are students, students have strict restriction for working more then 20 hours in their study period. A flexible rota will help to make the working speed smooth.
♦Arranging staff meeting in a month
In order to keep employees happy it is very necessary to have a good relation between the top management and the staff. By arranging a staff meeting monthly top management will have a clear idea about the staff requirements. Moreover so many information will come out about customer’s demand, which is important to run the business.
Principles and Practices of organising [P4]
There are some organisational theory and management principles that help to maintain a organization. Some are given bellow:
- Strategy/Finance: Those who want to improve the value of a company need to know how to organize to achieve organizational goals; those who want to monitor and control performance will need to understand how to achieve results by structuring activities and designing organizational processes.
- Marketing: Marketers know that to create a successful corporate brand they need to get the organization behind the delivery of its promise; a thorough understanding of what an organization is and how it operates will make their endeavours to align the organization and its brand strategy more feasible and productive.
- Information technology: The way information flows through the organization affects work processes and outcomes, so knowing organization theory can help IT specialists identify, understand and serve the organization’s informational needs as they design and promote the use of their information systems. Operations Value chain management has created a need for operations managers to interconnect their organizing processes with those of suppliers, distributors and customers; organization theory not only supports the technical aspects of operations and systems integration, but explains their socio-cultural aspects as well.
- Human resources :Nearly everything HR specialists do from recruiting to compensation has organizational ramifications and hence benefits from knowledge provided by organization theory; organizational development and change are particularly important elements of HR that demand deep knowledge of organizations and organizing, and organization theory can provide content for executive training programs.
- Communication: Corporate communication specialists must understand the interpretive processes of organizational stakeholders and need to address the many ways in which different parts of the organization interact with each other and the environment, in order to design communication systems that are effective or to diagnose ways existing systems are misaligned with the organization’s needs.
[http://www.oup.com/uk/orc/bin/9780199260218/hatch_ch01.pdf]
From the above discussion, we can easily identify what are the theories is required in order to create a new chain of restaurant.
Different approaches and organisation[P5]
There are couple of management approaches. These are given bellow:
♦Scientific management
Scientific management methods called for optimising the way that tasks were performed and simplifying the jobs enough so that worker could be trained to perform and specialised sequence of motions in the one best way.
♦ Bureaucracy
Bureaucracy is the most efficient form of organization. In fact, bureaucracy to be the most formally rational form of organization. As such, bureaucracy as being more effective than alternative forms. Administration was based on written documents. This tended to make the office (bureau) the focus of organization.
♦Human relations approach
The human relations approach argues that people are emotional rather than economic‐rational beings; organizations are cooperative social systems rather than mechanical ones; and organizations are composed of informal structures, rules, and norms as well as formal practices and procedures. The human relations approach represents a distinct break from the classical approach. However, both share two important similarities.
♦Systems approach
The systems approach to management is a concept which views a company as an interconnected purposive system that consists of several business sections. It is a management approach which enables the leadership to see the company as a unified part or a major section of the larger outside corporate environment. Even a small activity in a part has a substantial effect on other sections in the company. Such a system may be biological, physical or social; and may enable the management to efficiently determine the long-term goals of the company.
♦Contingency approach
This approach is to identify the conditions of a task, managerial job and person as parts of a complete management situation and attempt to integrate them all into a solution which is most appropriate for a specific circumstance. Contingency refers to the immediate (contingent or touching) circumstances.
The manager has to systematically try to identify which technique or approach will be the best solution for a problem which exists in a particular circumstance or context.
Among from these are the approaches I would prefer for scientific management approaches. Because there are some certain characteristics that would be helpful in order to expand the business. Key characteristics of scientific management approaches given bellow:
- Scientific Job Analysis – observation, data gathering, and careful measurement determine “the one best way” to perform each job
- Selection of Personnel – scientifically select and then train, teach, and develop workers
- Management Cooperation – managers should cooperate with workers to ensure that all work is done in accordance with the principles of the science that developed the plan
- Functional Supervising – managers assume planning, organizing, and decision-making activities, and workers perform jobs
[www.tcnj.edu/~wright/classicalb.ppt]
The reason I would prefer to go for this approaches are given bellow: In restaurant business allocation of job and choosing the right person for the job is very important. It helps to increase the loyal customer. As the key staff like waiter directly communicate with customer, they have to play vital role in order to increase the sales. As it is not possible for Mr smith to direct supervise all the restaurants at the same time, he has to appoint manger to look after the restaurants. So that, manager has to do the functional activities with a co ordination with owner. And manger has to be cooperative with the fellow worked in order to get 100% effort from them.
Different tyopes of leadership[P6]
- Leader makes decisions without reference to anyone else
- High degree of dependency on the leader
- Can create de-motivation and alienation of staff
- May be valuable in some types of business where decisions need to be made quickly and decisively
- May help motivation and involvement
- Workers feel ownership of the firm and its ideas
- Improves the sharing of ideas and experiences within the business
- Can delay decision making
- ‘Let it be’ – the leadership responsibilities are shared by all
- Can be very useful in businesses where creative ideas are important
- Can be highly motivational, as people have control over their workinglife
- Can make coordination and decision making time-consuming and nlacking in overall direction
- Relies on good team work
- Relies on good interpersonal relations
- Leader acts as a ‘father figure’
- Paternalistic leader makes decision but may consult
- Believes in the need to support staff
Democratic leadership would the best option for the Mr. smith. Because according to this theory the leader will be acting as a father figure and will be holding the decision making power but may discuss with the subordinate which will help to take the best possible decisions. This leadership style encourage workers, give instruction to follow and also belief in supporting staff.
Different Motivation Style[P7]
According to Dr. Abraham Maslow, ”there are general types of needs( physiological, survival, safety, love and esteem) that must be satisfied before a person can act unselfishly”. If we observe Maslow’s need pyramid, after a need satisfied it stoops acting as a motivator and the next need starts motivating.
Source: Maslow’s hierarchy of needs
Frederick Herzberg believed that all factors fell into one of these categories and therefore had separate consequences. His research concluded that some factors fell into both categories although they held a stronger position in one of them. See the diagram below for examples of the factors that he determined for each category.
Source: Motivational Theory: Herzberg's Two Factor Theory
By looking at the diagram, it shows that a sense for achievement, recognition of their effort, the nature of the work itself, and the desire for responsibility are all strong factors for motivation. At the bottom of the diagram, the way the business is run, how they are supervised, the work conditions and their pay, are all factors that can lead to job dissatisfaction if not met to the standards of the employees.
Relationship between motivation theory and management and impact [P8]
There is a relationship between practice of management and motivation. Management always wants get the job done but in order to get the job done employee has to be motivated. So that motivation is the key factor for management. Motivation can be done in a form of rewarding or simply appreciating for the good work. If the manager concern about both task and employee then according to black and mouton’s managerial grid it is called team management. So that in order to be successful in new business Mr. smith must follow some motivational theory and continue with the management practice. He has to consider that staff motivation is the key factor to continue management practice and be successful. In this profession it is very important to keep the worker cheerful. Another very important things is, if the motivation program continue in this company the worker will not leave the company for any cheap reason. If an employee works a long time company will definitely benefited.
Groups [P9]
Group is when few employee working independently for a common task and interact between themselves to promote it’s accomplishment.
♦ Dynamics group formation
Theory of propinquity- people who are similar attitudes toward certain object and goals tend to form a group.
Exchange theory- The record-cost outcomes of interactions serve as the bais for group formation.
♦ Formal group
These groups are formed to carry out specific task. It includes:
Command task
- represented in the organisation chart
- permanent in nature
- members report to common supervisor
- function reporting relationship exists.
Task group
- formed to carry out specific task
- temporary in nature
♦ Informal group
This types of groups are formed by employees themselves. Hence they are not formally structured. They are two types
- Friendship group
- Interest group
Factors that will lead to effective teamwork [P10]
There are six critical success factors that must be in place before any group begins to function as a leadership team.
1. Supportive Sponsor
Leadership teams are usually formed by a sponsor who recognizes that reaching an organizational goal will require a group of individuals working together to provide the leadership necessary to move a company, division or unit towards the organization's goals. It is the sponsor’s responsibility to create a ‘charter’ that establishes the leadership team and it’s primary focus. In addition, the sponsor establishes specific goals the leadership team is to accomplish. In order to open the chain of smith’s restaurant you must clear all aspect from your sponsor.
2. Focus on Stakeholder Outcomes
A shared understanding of the leadership team’s stakeholders, their expectations of the team, and the values the team embraces is essential to create the focus needed as the leadership team members plan and execute the actions necessary to achieve the team’s goals.
3. Smart Goals
Specific, measurable, achievable, realistic and time-bound goals should be established by the team’s sponsor and then broken into sub-goals by the leadership team. Without SMART goals, the team will lack the milestones necessary to drive action.
4. Committed Leadership
Every leadership team needs a leader who focuses the members of the team on the mission, purpose, and goals of the team. This individual must be committed to the team’s results and must be willing to be held accountable by the team’s sponsor and other stakeholders, for leading the team through processes that insure the team’s goals are reached. The team leader must engage each team member in the processes of the team and build a platform of mutual trust that leads to open debate, collaboration, individual commitment, and personal accountability.
5. Mutual Trust
The most important element of successful team work is the establishment of a platform of mutual trust that enables the leadership team to engage in open debate and decision making that leads to commitments to action by individual members of the team. Building this trust requires an openness that allows team members to know and understand the beliefs and behaviours of all members of the team so that team actions can be
6. Engaged Leadership Team Members
An effective leadership team will have team members who are actively engaged in the work and focus of the team. This will require that each team member emotionally commits to actively and openly participate in the team’s processes in the pursuit of the team’s goals. The team member must willingly commit to carry out action plans to complete individual actions necessary for the team to reach their team goals. The team member must be dependable and carry the full weight of personal responsibility to complete their individual commitments by the date committed to.
Technology on Team functioning [P11]
In this present world no business can run without adopting technology. When technology mixed with proper management the organisation will successful. Using latest technology certainly improve the working speed on the team. In new business of chain restaurant there are so many technology can be use. Such as:
E-mail
Customer can enquire about restaurant through e-mail. Now a days many people prefer to book table by sending a mail.
WI-FI
If WI-FI facilities is available inside the restaurant customer will interested to come with their laptop. As well as staff can use their PDA for taking order.
Computer
As a chain restaurant it is very important to keep a continous communication among the branches. If all the restaurant have computerand connected in company’s own network any important document can be transfer in a short time.
PDA
PDA is very important for service staffs. It will increase the working speed by taking order quickly.
References
∙Bellott, F. K., & Tutor, F. D. (1990). "A Challenge to the Conventional Wisdom of Herzberg and ∙Maslow Theories." Paper presented at the Nineteenth Annual Meeting of the Mid-South Educational Research Association. New Orleans, LA.
∙Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The Motivation to Work (2nd ed.). New York: John Wiley & Sons.
∙Maslow, A. H. (1970). Motivation and Personality (2nd ed.). New York: Harper and Row.
∙Newstrom, John W. & Davis, Keith (1993). . New York: McGraw-Hill
∙www.google.co.uk
∙www.humanresources.co.uk
∙www.pwc.co.uk
∙lecture note provided by Mr. A. J.