Within Metzo the manager has to deal with staff everyday and must communicate with them daily and effectively for the business to run smoothly. The manager succeeds on most occasions to convey his message effectively, however he can be quite autocratic which seems to intimidate some of the staff, which may lead to further problems with motivation and moral.
Conceptual Skills:
“involve the ability to see the organisation as a whole, recognising complex and dynamic issues, examining factors that influence these problems and resolving such situations” (Modern Management, 1996: 6).
Within Metzo the manager succeeds in seeing the business as a whole and is involved in every aspect of running the Café, from ordering supplylies to recruiting staff. He is quite apt at identifying problems and solving them before they become a major issue.
Corporate Culture:
Jones and Merricks (1996: 160-173) “suggest that the corporate culture may be weak or strong, ouvert of covert, and may change over time”
The culture within Metzo seems to be quite a weak one, the staff seem to work for the sake of working and lack any common goal for the business as a whole. The manager guides the staff to do their work but rarely has staff meetings and fails to take into consideration the ideas of the staff. However, the staff don’t seem interested in supplying ideas either. Overall Metzo seems to lack any Corporate Culture at all.
Identified problems within the Management Process:
The management processes as a whole in Metzo lack any real formality and as such has quite a number of problems. However to identify them all, would take a considerable amount of time, so I identified two main problems.
1) Control - as one of the management functions, it is a very important aspect to running a business. Without control, management would fail to monitor progress or achieveing goals. Managers must have the ability to measure performance accurately and regulate organizational efficiency and effectiveness.
However within Metzo the control function seems to be lacking. Staff within Metzo do as they are told and do so daily. The Manager, doesn’t check on staff and just issues ordrs. The control function of management is non-existent within Metzo.
2) Leadership - again as a management function it is vital to the running of any business. Without leadership, the goals within a business fail to be identified and staff fail to get any guidance. A manager must lead in order for all activities to work in harmony and goals to be achieved.
Within Metzo, there is a leadership style, however it is an autocratic style. The staff within Metzo are told what to do, which I feel leads to poor motivation levels. In order to prevent a high staff turnover, due to unhappy staff, the leadership style will have to be changed.
Improvement Guidelines for these two problems:
1) Control: -
Management needs to exert control and monitor progress in order to achieve success. Management within Metzo fails to do so, this could be improved by following the guidelines listed below:
- identify the business goal
- inform all staff of the goal
- identify objectives necessary to achieve the goal
- have regular staff meetings to ensure staff are working well to achieve the goal and also to keep staff aware of any changes.
- Design and implement information and control systems, which will enable management to access progress.
- Train staff in the necessary skills to achieve the goal.
(Management, Sherharn, John Wiley and son, 1995)
2) Leadership -
“involves incourageing individuals or groups to assist willingly and harmoniously in the attainment of goals” (Modern Management, 1996:3)
the management style within Metzo is very autocratic which leads to low staff moral and unhappiness in the workplace. To change this problem, management could possibly follow ‘ House’s Path-Goal Theory’. Based on the expectancy theory of motivation, Path-goal theory provides managers with three guidelines to follow, to be effective leaders.
- Find out what outcomes your subordinates are trying to obtain from their jobs
- Reward staff for high performance and goal attainment with the customers they desire.
- Clarify the paths to goal attainment for staff remove any obstacles to high performance and express confidence in staff capabilities.
Having carried out the above the manager can then engage in the following behaviours to motivate staff:
- Directive behaviours eg. Setting goals, assigning tasks
- Supportive behaviours eg. Expressing concern
- Participative behaviours eg. Allow for participation
- Achievement-orientated behaviours eg. Setting challenging goals, believe in staff.
(Contemporary Management, 2000: 478-479)
Industrial Relations:
Recruitment:
“includes all the activities that managers engage in to develop a pool of qualified candidates for open positions” ( Contemporary Management, 2000:353)
There are generally two types of recruitment,
- Internal
- External
Café Metzo uses both of these methods. If a member of staff is qualified for a the open position, they are given the opportunity to apply for it. For example, the new manager obtained his position this way
Also Metzo advertises in the local papers for staff needed. Most staff have been recruited this way, which has both advantages and disadvantages.
Advantages: Large applicant pool
Attracting new skills, knowledge and abilities
Disadvantages: Costs
Training new staff
Selection:
“Is the process by which managers determine the relative qualifications of job applicants and their potential for performing well in a particular job” ( Contemporary Management, 2000: 353)
The staff selection within Metzo is based on experience and qualifications. Those who apply for the job are just questioned over the phone and if they sound suitable they are then invited for an interview. When interviewed both the owner and manager are present. This helps to avoid complacency and both have an input in if they hire the applicant or not. Then if they are selected they are given a week long trial to access suitability to the work environment.
The selection process is based on:
- Background information
- References
- interview
- performance during trial
Induction:
During the week trial the applicant gets to experience the running of the café and meets the other members of staff. It is during this time that the induction takes place. The applicant is given their job description , informed as to what is expected of them and are also trained in during this time.
Training and Development:
Training is defined as: “teaching organizational members how to perform their current jobs and helping them acquire the knowledge and skills they need to be effective performers”
and development is defined as “ building the knowledge and skills of organizational members so that they will be prepared to take on new responsibilities and challenges”
(Contemporary Management, 2000:363)
Based on a Needs Assessment the style of training can be chosen. There are many types of training that can be chosen from, such as:
- on the job training
- coaching
- counselling
- project work
- classroom instruction
- computer- assisted training
- apprenticeships (Modern Management,1996:217)
Each of the methods benefits different companies in different situations. The company must base their choice on the need assessment and the people they are training.
Within Café Metzo the training in carried out on a one to one basis, on the job. The new recruit is assigned to another member of staff who is already trained in the required skills. The new recruit spends the best part of a week being a shadow of the other worker. During this period the new recruit is encouraged to ask questions and use their iniative, to further the training process. After this period they are left to work by themselves but still have the backup system of the other staff if they should need it
This system works well in Café Metzo as it allows work to go on as normal for the other staff. The new recruit has the backup of the other staff members, which allows for the pressure of starting a new job to be lessened somewhat. Which naturally seems to help the new recruit to learn and settle in much quicker. However those who find it difficult to keep up can be left by the wayside as the other members of staff are still required to do their list of tasks for the day. This imbalance can lead to undue pressure being placed on the person the new recruit as been assigned to. A balance which café Metzo seems to have found must be met in order for this method to work.
Development within an organization also has many different forms and the choice of development method must be based on the person. Some methods of development are as follows:
- Varied work experiences
- Formal education
- On the job training
- Classroom instruction
(Contemporary Management,2000: 364)
Each method can be utilised individually as well as together. The method chosen will be based on the skills required to develop and also the person whose skills are being developed.
Within Café Metzo development takes place mostly by on the job development. The reason for this is due to the sheer volume of business such an establishment carries out. It works best for the café to have as little disturbance as possible to the work routine. Café Metzo carries out their staff development through on the job instruction by management and senior members of staff, again this works for Café Metzo are it disturbs the other members of staff as little s possible.
Trade Unions and Trade Union Membership:
“The role of trade unions is to recruit members, collect dues and represent and protect employees. Unions aim to ensure that employees are treated fairly in their jobs.”
(Modern Management, 1996:102)
However a trade union does not exist in café Metzo. Most problems are dealth with be approaching senior staff and management. It would seem, as it is such a small establishment that a union isn’t required just yet.
Wage Negotiating Practices and Sanctions:
“ pay level refers t how an organizations pay incentives compare, in general, to those of other organizations in the same industry employing similar kinds of people” ( Global Management, 1989: 241)
“pay structure clustures jobs into categories reflecting the relative importance t the organizations and its goals, levels of skills required and other characteristics”
( Global Management, 1989: 242)
Organizations must establish a pay level as a whole, identify jobs done and the level of skill involved. This in turn helps establish exactly how much each member of staff gets paid. Higher skilled jobs may get paid a higher wage and so on. Pay is used as a motivation factor and wages can be negotiated on that basis. There are theories that believe motivation is directly linked to pay and many organizations base their pay levels on these theories with pay being increased when motivation needs to be increased.
Such theories are:
- Expectancy theory – links performance to pay
- Need theory – different levels of pay can lead to different levels of motivation
- Equity theory – pay based in proportion to inputs
- Goal setting theory – pay based on reaching set goals
These theories can help management establish what type of pay structure they want within their business.
Café Metzo wages are based on the Expectancy Theory. Each member of staff is paid inline with they job they carry out. All staff start at a negotiated wage, established during recruitment. However this can change quite rapidly, directly linked to the performance of the staff. It seems the more work the staff are willing to do and the more responsibility they are willing to take on, the higher the level of their pay. However there isn’t room for every member of staff to move up the ladder and so some staff can remain with a static wage for quite some time.
Environmental Analysis:
Environmental analysis is used to establish the feasibility of business or and idea and is vital for the success of a business. One of the most tried and trusted methods of environmental analysis within the business world if the S.W.O.T analysis. It identified the strengths, weaknesses, opportunities and threats of a business.
With Café Metzo the S.W.O.T. analysis reads as:
Strengths
- situated in a busy shopping centre
- offices nearby
- static rent for 5 year periods
- covered by centre insurance
- qualified staff members
- near bus routes
Weaknesses
- Indian restaurant near by
- Local pub serves all day bar menu
Opportunities
- New office block being built near by
- To generate business at slow periods
Threats
- The local bar expanding menu
- Seasonal highs
Based on these findings the Café can decide on its next business move.
Production/ Service Systems:
Production systems can be defined as “ as the system that as organization uses to acquire inputs, convert the inputs into outputs and dispose of the outputs”
( Contemporary Management,2000: 645)
Production systems are a vital aspect of operation management and it is vital to the running of a business that this system to be carried out.
The system can be shown using a model such as the on below.
Production System
¦
Input stage Conversion stage Output stage
-raw materials - skills - goods
- component parts - machines - services
- labour - computers
(Contemporary Management, 2000: 646)
Within Café Metzo their production system is carried out on a day to day basis without any formal acknowledgement. On analysis, their system also fits into a model which can be seen below.
Input Stage:
* Raw Materials *component Parts * Labour
-meat -ingredients -staff
-veg - service pates -
-bread etc.
Conversion Stage:
*Skills *Machines *Computer
- Staff training - Grill - music system
- service skills - fryer etc. - internet
Output Stage:
*Goods *Services
-sandwiches - customers relations
- food items etc. serving food
Overall Café Metzo carries out all aspects of a production/service system, however it does so with little of no acknowledgement. I feel that, although so far no problems have arisen from this lack of acknowledgement, that one will arise some day and when it does the Café won’t be able to cope with the implications. They need to monitor their system in order to avoid any major problems which may affect the daily running of the business.
Best Practice:
According to Harold Kerzner there are five attributes to ‘Best Practice’, and all are related either directly of indirectly to the process of educating personnel. ()
These attributes can be identified as:
- common knowledge – the need for a good understanding of work involved
- Common Processes – knowledge of how to do job
- Singular Methodology – all areas of business working for a common goal
- Benchmarking – helps maintain competitive advantage
- Continuous improvement – using benchmarking to make improvement
These attributes relate to Café Metzo in the following Ways:
1) Common Knowledge: all the staff in Café Metzo are aware of how the business is run and who does what within the business. However new staff can at times be left to figure these things out for themselves, this should be rectified, perhaps during the training process in order to ensure best practice at all times.
2) Common Processes: the staff within Metzo are each individually trained in their required jobs and as such do each job well, equally they are all aware of the common goal of the business and so all strive for this goal , helping to ensure best practice.
3) Singular Methodology: strongly linked with the previous two, Café Metzo has succeeded in achieving a majority singular methodology. Each member of staff knows where the business is going and what is expected of them to achieve the common goal of the business.
4) Benchmarking: Café Metzo has the ability, as th ecafe is quite informal, to get continuous feedback from customers. This in turn helps lead to improvements being made where needed. Equally the café has the advantage of having other food service businesses near by which keeps them comparing and competitive. Allowing them to benchmark of other businesses.
5) Continuous Improvement: by analysising their benchmarking results the café can make improvements on a regular basis keeping them competitive and leading to best practice at all times. Which is important in order to keep the business successful.
Legislative requirements:
Almost all aspects of business is now governed by legal requirements and this fact should be taken into account when establishing a business and also when it is fully established. Most of these legal requirements can be found in “ The Catering Management Handbook, 1994: 67-82”. Some of the more widely know legislation in relation to catering are: Health and Safety at Work Act 1974, Health And Safety Regulations 1990, Workplace Regulations1992 and that is only to name a few.
Hygiene Requirements:
Hygiene requirements, some might argue are some of the most important legal requirements in relation to the food industry. The most recognised method of implementing hygiene requirements is HACCP (hazard analysis critical control points). All establishments within the food industry must use this system to keep their business hygienic. In order for this system to work there are 7 principles to follow known as the 7 principles of HACCP and can be listed as:
- Conduct hazard analysis
- description on product
- identify use of product
- design a flow chart
- list potential hazards
- list control measures
- Critical control pts
- Critical limits
- Monitoring system for above
- Corrective action to be taken
- Verification that it is working
- Record keeping
By following these steps in relation to all aspects of food production a company can ensure a safe hygienic business.
Within Café Metzo, HACCP is implemented to some degree. Three members of staff are trained in HACCP and pass their knowledge onto other members of staff. However their system is quite lax, they have no formal method of conducting a hazard analysis or of identifying critical control points or limits. They tend to rely on word of mouth to identify problems. Equally their monitoring system, although established can be forgotten about during busy periods and as such their recording system can also be forgotten about at times.
However their system, although a little informal, works for them. The only improvements or recommendations I would have for the café would be;
- to establish a formal system and not rely on word of mouth
- ensure monitoring system is always functioning
- ensure recording takes place, this will be vital should a health officer visit.
Security Risk Analyis:
“ in any business, management has a duty to protect its assets. It also has a duty not to put undue temptation before employees” ( The Catering Handbook, 1994, 215)
The main security areas within a business can be identified as:
- doors and windows
- alarms and surveillance
- cloakrooms
- security of cash
by ensuring these areas are safe within a business it can ensure security.
Doors and Windows:
- only a select few should have keys to doors
- register these people with local police dept.
- keep a record of all spare keys
- if combination lock, change combination regularly
- ensure secure glass in windows
Café Metzo Doors and Windows
- selected members of staff have keys however they are not registered with local gardi
- there are no spare keys within the shop
- no combination keys are used
- windows are protected by metal shutters at night
I feel the registration of those wit keys with the local Gardi might be a good idea.
Alarms and Surveillance:
- installation of burgular alarms
- closed circuit tv
- video recording
Café Metzo Alarms and Surveillance:
- Metzo has an alarm system which is activated evernight upon closing
- Within the café they have closed circuit tv
- The café is situated in a shopping centre and so outside surveillance is provided
- The centre also provides security staff
Car Park:
- display signs that cars are parked at owners risk
- regular checks of area
Café Metzo Car Park:
- shopping centre has signs displayed
- the car park is monitored by security staff and on camera
Cloakrooms:
- display disclaimer notice
- keep it locked
Café Metzo Cloakroom:
Security of Cash:
- strict control of main safe
- cash handlers should have background search
- number of keys kept as a minimum
- milk till regularly
- surveillance systems
Café Metzo Security of Cash
- only owner Shanta has access to main safe
- 2 sets of keys both held by Shanta, one set she keeps at home
- Surveillance system in place and checked when dicrepiencies occur.
The only recommendations I have would be for Shanta to milk th etill, large sums of money can be present in the till by the end of the day and this is quite a big security risk but at the moment as the cash is being left in the till for the whole day.
Overall the security within Café Metzo is very apt and as of yet they have not experienced any security problems. However I do feel a till full of cash may lead to problems at some point and this should be rectified sooner rather than later.
Financial:
Financial Margins for Café Metzo.
“since the hospitality industry is do diverse, it is impossible to be specific in establishing guidelines within which the labour cost as a percentage of revenue should fall” ( Cost Control for Hospitality Industry, 1989, 240)
The factors that can influence differences in labour cost are
- Physical size of business
- Location
- Market demands
- Government legislation
- Unions
- Use of equipment
- Menus
Some methods to calculate labour costs:
Sales per man hour, labour cost per guest served
The average labour costs tend to fall between 25 – 30% of revenue, which seems about right for a café of Café Metzo’s size.
Wages:
At the moment in the café
- most of the staff are getting minimum wage,€ 7
- and are working a 40mhour week
- manager is getting approximately €10 per hour
- part-time staff are also getting $7 per hour
Overheads:
Should at all times be kept to a minimum in order to increase profit. The smaller the overheads th egreater the profits. However as Café Metzo is quite a new business and is still finding its feet so to speak, its overheads are quite large at eh moment. As it is, the cafés overheads account for 70% of its income which is far to high for a business of its size. However the owner Shanta believes that this will only be the case for a next year or so, by then all her major overheads will be cleared and she hopes her overheads will then only account for about 30-40% of her revenue.
Net Profits/ Gross Profits:
For any food establishment it is expected that gross profit on food items should be at 60% and at 300% on beverages. This profit is established when costs have been deducted. The net profit margin is higher due to cost not yet incurred. ( Cost Control for Hospitality Industry, 1989: 236)
Within Café Metzo at the moment their Gross Profits and net profits are meeting their targets inrelation to food and beverage, however when this is accompanied by the large overheads the café is experiencing at the moment, their overall profit is quite low.
All financial margind can be analysied through a series of accounting systems, such as double entry accounts and trading profit loss and balance sheet accounts. Examples of these can be seen in appendix 1.
Marketing:
Advertising Campaign/Promotional plan
- Target Market Segment:
The market I intend to select is adults between the ages of 18 to 60. the reason I have chosen such a broad range of people is due to the area that the café is situated. The café is situated in a busy built up area with many offices and homes near by. This leads to quite a diverse range of people visiting the café, from housewives t business men. Therefore I must divise a campaign that reaches all these people.
- Media Choice:
I have chosen the local newspaper, The evening Herald, as my advertising media. On analysising all other types of media such as radio, tv etc I established that the newspaper would reach the majority of my target audience as it is regional and daily. This combination I believe will reach most people in the area. Also the paper reaches outside my target area, which may help to generate new business.
Reasons for choice: local and regional
Visual
May help generate new business
Frequent – daily
- Sample Adds:
- Message Conveyed:
By using the type of advertisment shown on the previos page I hope to convey that the café is value for money
Local
Friendly
Has good food.
In conveying this message I hope to entice local people to visit the café. If using the advertisment with the discount I hope t entice neew customers who haven’t been before and in doing so widening the customer base.
- Expected reach, Frequency, impact and cost:
“for most media types we can only estimate exposure to the media vehicle, not to the ad itself” ( The Media Handbook, 2003, 105)
I expect that the paper will reac 90% of the target audience due to the way in which it is distributed, however I cannot be certain as to how many will see the ad. I would hope that 40-60% of those who get the paper would see the ad.
The paper is available daily and so will be seen on quite a frequent basis, this I hope will increase the impact of the ad, allwing people to become firmilar with it.
Cost
Cost per thousand (CPM) (Media Handbook, 2003, 110)
To establish a comparison in media in terms of cost, media specialists turn cost into CPM.
CPM = total schedule cost/ gross impressions
By using this formula you can compare the cost efficiency of one media category, vechile or schedule against each other.
However for the purpose of this project I priced the cost of a ¼ page ad in the paper and found the cost to be €75. Due to eh wide audience that this paper reaches I feel this money is very well spent.
- Supporting Merchandising Activities:
Along with the ad in the paper it would be my intention to also distribute leaflets to the surrounding areas. I feel this will help reinforce the ad in peoples minds.
This method is quite cost effective with the cost of producing the leaflets being the only real factor in costings. However if I wanted to save time and perhaps reach a wider audience I could organise with An Post to deliver them.
The leaflets will convey the same message as the newspaper ad and will be laid out as below:
Conclusion:
The previous document has analyised Café Metzo in all respects of the business as far as management goes. I feel it is an accurate represention of this café it shows the café in a realistic light with both its good and bad points. Overall I feel this document gives one an insight into the management stream of a Dublin café.
Biblography:
Business Management, Robert Erskine: Prentice Hall, 1991
The practice of Management, Peter F. Drucker, Butterworth: Henineman, 1994
Modern Management Theory and Practice for Iriash Students, Tiernan, Morley and Foley: Gill and Macmillian,1996
Global Management Principles, Ronnie Lessem: Prentice Hall, 1989
Management, Schererharn: John Wiley and Sons, 2002
Managing Organizations, Rosefiels and Wilson: Mc Grain Hill, 1999
Management, Stoner, Freeman, Gilbert: Prentice Hall, 1995
The Catering Management Handbook, Ridgway and Ridgway: Clays ltd, 1994
Contemporary Management, Jones, George, Hill, Irwan: Mc Grain Hill, 2000
The Media Handbook, Katz: Lawrence Erlbaum Associates,2003
Cost Control For the Hospitality Industry, Coltman: Van Nostrand Reinhold, 1989
Appendix 1
