In this project im going to be looking at human resource problems they currently face at a particular little chef restaurant located in Royston.
Introduction
Little chef is Britain's largest roadside restaurant chain with 300 outlets and the largest Burger king franchise with 100 outlets nationwide. Little chef is part of Travel rest service Ltd, a company backed by Permira investment managers. The majority of the restaurants are situated on major UK A-roads, in Moto service stations and Welcome Break Service areas.
In this project im going to be looking at human resource problems they currently face at a particular little chef restaurant located in Royston. I will be evaluating the staff training and development within that unit as well as looking at ways in which the unit could improve its staff training and development in order to achieve their objectives.
In order to achieve this, I will conduct primary and secondary research based on the little chef restaurant. The primary research will be carried out in the form of questionnaires and interviews with the workforce from the Little Chef unit itself. The secondary research will be conducted through books, Internet and published articles. Once I have conducted my research and analysed the results I will then be able to make some proposals of how the problem they currently face can be overcome.
The Problem(s)
The Little Chef restaurant in Royston is currently faced with two problems, the major one being a high labour turnover rate. This has resulted in another problem of staff shortages that has meant the quality of the service could deteriorated due to a lack of human resource which may cause a loss of customers thus a decrease in sales figures, however this has not happened yet. In my project I am mainly going to focus on the labour turnover problem, which I feel is the cause of all the problems.
While conducting my research on the restaurant, I found out that the restaurant had a labour turnover rate of 22% in 2002, alone which is way above the acceptable figure of 15% according to the AAFP (American Academy Of Family Physicians). The problem may be costing the restaurant a lot more than they think for example through training costs. In order to uncover the cause of the problem I will ask a number of questions;
> Is there a desirable work setting?
> Are tasks being appropriately assigned and performed?
> Are they hiring the right staff and giving them adequate training?
> Are they offering effective ways for staff communication?
> Are staff members supporting each other?
These are important questions, which need to be investigated if the problem is going to be solved.
Primary Research
Purpose Of Results
The results of the questionnaire were linked with other data in the context of performance indicators using them as a basis for comparison in which they say a lot about the success of a firm's human resource management. They are particularly useful in 3 areas:
Comparisons over time: The results could have been used to compare them with past figures over the last few years such as labour turnover rates. In this case the labour turnover was 22% for 2002 but we do not know the labour turnover rate for the last few years therefore we do not know whether the turnover rate has improved.
Benchmarking: Another important use of the results could be using them to compare them with benchmarks. Benchmarking is a management tool, which helps companies improve their performance. It involves comparing aspects of business performance with those of other companies. The purpose is to identify the best achievements, for example staff turnover rate. The business will then change some or all of its practices in order to try to match the best company. (Ian Marcouse, 1999). For example Little Chef could compare itself with a similar sized restaurant such as the local Chinese restaurant (Mulan), which has been fairly successful. Through this process they may compare their figures with those of the Chinese restaurant to find out a number things such as; whether their labour turnover was better or worse than that of their competitor? Whether their standard is higher or lower than that of their competitors?
A basis for target setting: The final use for the results is for setting targets. The company may have views on what the acceptable levels of personnel performance should be. The indicators can then be used as a basis for target setting and, in retrospect, for evaluating performance. (Ian Swift). By undertaking such comparisons it is possible to form judgements about the performance of a company. However they will remain fairly simplistic if left to stand-alone.
My primary research was conducted in the form of an interview in which each member of staff at the restaurant ...
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A basis for target setting: The final use for the results is for setting targets. The company may have views on what the acceptable levels of personnel performance should be. The indicators can then be used as a basis for target setting and, in retrospect, for evaluating performance. (Ian Swift). By undertaking such comparisons it is possible to form judgements about the performance of a company. However they will remain fairly simplistic if left to stand-alone.
My primary research was conducted in the form of an interview in which each member of staff at the restaurant completed a questionnaire. (Appendix1). This included a range of workers with various job titles, from team workers to managers. The interviews were conducted on the work premises each lasting approximately 5 minutes.
This method of research has drawbacks such as cost and carries a risk of being bias, for example a bubbly interviewer may generate more positive responses, which may result in inaccurate results. However this method has clear benefits, which include a high response rate and the assurance that the interviewer will be able to help explain an unclear question, which was the case with one of the questions on my questionnaire. Some of the interviewees did not know what I meant by Little Chef's objectives, which I then explained to them; this is an important factor, which could have affected my results. I could also have used a self-completion questionnaire or an observational method of research to conduct my primary research.
From my questionnaire I found that there was a variation in the responses of the workers within different rankings of the hierarchy.
From my interviews I found out that nearly 75% of the workforce had not been working at this restaurant for more than 4 years, which just proves the company has a high labour turnover, which is one of the problems costing the company lots of money. (Appendix2). The overall training within the company is good with the majority being conducted internally, which means the company will benefit from fewer absentees and therefore no problems of staff shortages. The workers appeared to be satisfied with their positions within the company as a result they did not suffer from job insecurity that may demotivate staff. There is also a good level of communication within the company with the majority of the workforce attending team meetings at least every 3 months. This may suggest that the workforce is well motivated by the management, which may be due to the managers being perceived to have both democratic and paternalistic characteristics which may keep the workforces' morale high. According to their job descriptions (Appendix5), these are skills the managers are suppose to possess in order to motivate staff, but it may not be true in practise.
Training
Induction involves helping a new employee settle into a job and often into a new organisation. It marks the start of the relationship between employer and employee and is of fundamental importance in setting standards and patterns of behaviour. Good induction procedures have 3 main objectives;
> To help employees settle into their new environment.
> To help employees understand their responsibilities.
> To ensure that the organisation receives the benefit of a well-trained and motivated employee.
Employees will best be able to contribute to the quality objectives of the organisation if they are quickly introduced to empowered ways of working, to understanding clearly organisational objectives, and to understanding how they and their job fit into the organisation.
There are 2 main types of training; these are on-the-job training and off-the-job training.
On-the-job training involves training people in their place of work. This could be done by an experienced worker demonstrating the correct way of performing a task or by a supervisor coaching an employee by talking him or her through the job stage by stage. Job rotation involves switching employees between a range of tasks to develop their skills in a number of areas and to give them a general feel for the key operations of the organisation.
"For this reason much of the training of new staff has to be performed "on the job" so that the experience of dealing with its customers can be obtained. On the job training therefore plays a vital part in the industries approach to training". (Boella, 1996, p120)
For example at Little Chef the managers and supervisors have the responsibility of showing new employees how tasks are carried out as this is part of their job description. (Appendix5).
"It is my duty to ensure that my staff are fully trained in order to provide the customers a high quality service at all times."
(Little Chef Manager).
The effectiveness of this type of training will be determined by the quality of the guidance from managers or supervisors. It is therefore vital that appropriate training is provided for managers and supervisors in this respect, and that is made clear to them that this is part of their job and will be one of the areas for assessment of their performance.
Off-the-job training involves any form of training, which takes place away from the immediate workplace. The company itself may organise an internal programme based with its on-site facilities or pay for employees to attend a local college or university for an external development scheme. This approach to training will include more general skills and knowledge useful at work, and job specific training.
Armstrong (1999) also believes that this type of training is the best way to acquire advanced manual, office, customer service or selling skills and to learn about company procedures and products. It increases the trainee's identification with the organisation. At Little Chef this type of training is conducted with the use of a computer on the premises away from the immediate work environment.
Once employees have received adequate training for their job, they can further improve their skills and help with their development. This may be through multiskilling and retraining.
Multiskilling is a key feature of modern business life. Employees need to be able to solve work-based problems themselves rather than waiting for another for another expert to come to their aid, therefore flexibility means training employees so that they have the full range of skills required in their work. At a simple level, if a light bulb needs changing they should be able to change it without waiting for a qualified electrician. As a result employees have been trained to be multiskilled. In a restaurant, if the head cook goes on a break another employee should be able to cover the cooking. Employees need to be trained to take responsibility for a variety of work, the implication is that the worker will receive better rewards such as increased wages but their extra productivity will justify this. The multiskilled worker is also more likely to enjoy and be motivated in their work.
Retraining most people will need to be retrained throughout their career. The modern concept is of lifetime learning and training due to new technological advances occurring constantly, employees need to be constantly retraining and upskilling in order to be able to gain employment in a flexible labour market. Organisations need to retrain their staff in order to upgrade the quality standards of the products and services they produce, these organisations therefore need to invest heavily in training and development.
High Staff Turnover
If the current high staff turnover problem is to be solved a number of questions need to be asked.
Is the right staff being hired with adequate training?
The key to keeping staff turnover low lies within hiring the right staff members,
Who are a good match for the restaurant and the position. Before any candidate is offered the position, the company should conduct thorough reference checks, finding out why the candidate left a previous job and ensuring the candidate's skills match those of the job description.
Training processes must be evaluated on a regular basis to find out whether staff members are following standard procedures to accomplish tasks. If they aren't, it may point to a problem in the way the staff were initially trained or a problem with the training procedure. It's critical that adequate time and resources are dedicated to providing sufficient training and enhancing the skills of staff members.
For example in terms of Little Chef, a training procedure may be created for a supervisor position consisting of written protocols and manuals. They are the most effective training tools according to the AAFP and can be maintained and updated when policy changes are made. Manuals will also force follow-ups on decisions and prevent policies from changing daily, Little Chef need to consider this because it is not currently being done within the company.
Is there a desirable work setting?
The work environment plays an important role in staff job satisfaction. This includes everything from having the right equipment to providing basic comfort, such as an ideal room temperature particularly in the kitchen and noise control. It is important to ensure that the work area is laid out logically and efficiently. Little Chef has created an ideal environment for its staff; the work area has been laid out in a logical way with ideal room temperatures in the kitchen with the aid of fans and heaters.
Are staff members supporting each other?
All staff members need to support each other, but sometimes these efforts deteriorate without anyone realizing. Staff members may be focusing solely on their own work rather than their work as part of the team. The phrase "it's not in my job description" is inappropriate in this situation. Teamwork is particularly important within a restaurant like Little Chef because it will lead to more efficient and effective production and it is an area they need to improve. People often respond positively to working within a team because it satisfies their social needs. If managers are willing to delegate responsibility to teams it will also meet the employees' ego and self-actualisation needs which are at the top of Maslow's hierarchy of needs.
Are they offering effective ways for staff communication?
Effective communication is essential within an organisation, because without it employees won't know what they are supposed to do, why and how to do it. Similarly, managers will have little idea of how the business is performing, what employees are doing and what their customers think. Communication coordinates many activities within the organisation. It motivates, enables feedback to staff and clarifies roles and responsibilities.
Below is an example that illustrates a typical organisational structure of a Little Chef restaurant. It represents chains of command, authority, accountability and responsibility. It is based on the main managerial functions and is controlled from the top layer of senior management. It shows how people fit together and defines each person's place and role within the organisation.
The typical organisational diagram above shows that the Little Chef restaurant does not have a tall organisational structure, which suggests that there is a good level of communication as well as employee participation. This means it is much easier for an employee lower down the hierarchy to communicate with the manager. The importance of managers actually listening to their employees and their social needs was highlighted in Mayo's study of the Hawthorne works. When employees were allowed to share their opinions their productivity rose because they felt they were valued by the organisation. Greater participation has been shown to have tangible results in many companies, such as higher motivation, more innovation and lower labour turnover. (Ian Marcouse, 1999).
The traditional methods of communication within organisations - such as team briefings and newsletters remain the most popular methods of communication but they are not necessarily the most effective. In terms of Little Chef the most effective methods of communication would be through memos and appraisals whereby managers can communicate goal and targets for employees as well as an overview of how they are performing. Effective communication can serve a number of purposes;
* It can improve motivation and lead to better decision making internally; as well as provide better links and feedback from external groups such as suppliers and consumers.
* Effective two-way communication is vital in terms of democratic management and the kaizen approach.
* It can lead to economies of scale because of improved motivation, coordination and control.
This is an area Little Chef is currently trying to improve by having regular team meetings and encouraging all staff members to attend. These are all areas they need to improve in order to solve their main problem.
Conclusion
My study was carried out in accordance with a tight (three-month) timeframe and word count (3500). As a result the study has not included as much detailed research as it could have if I was give a longer timeframe such as a year. This discouraged me from going into too much detail in some of the issues raised in this study, whereas if I had a longer word count (10000) and a timeframe of about a year, my study would have been more detailed and accurate.
From my study I have found some areas of concern;
> The company needs to re-evaluate its training techniques.
>
Keeping staff turnover low is important. It requires being aware of the current state of the work environment, choosing appropriate new hires and providing them with proper training, talking to staff members and solving problems as they emerge. When a staff member leaves the restaurant, management need to find out why they are leaving. This will require an extensive exit interview with the employee, this is because staff will usually offer a reason for leaving such as he or she is looking for a job with flexible hours. These would be their main reasons for their departure but an exit interview would uncover the underlying reasons for their departure. For example ask for the employee's help in critiquing their former job description and the tasks required for the position. (Appendix6). The answers to these questions may give management some insight into how the staff members view restaurant operations and the performance of management.
In addition to the exit interview, they could consider having the departing employee fill out a written exit survey form. (Appendix6). Employees may find it easier to be truthful and to the point on paper than in a face-to-face interview. This survey can be conducted over a period of time and analysed to see if there is a pattern, which may help solve the problem.
The cost of not training staff members has greater consequences to the company than it may seem. I created a predicted profit and loss account analysis, which shows different possible results of the effect of training or the opportunity cost of training. (Appendix8). Such an analysis will be carried out by firms to assess the short-term financial merit of investing in training and as shown in Appendix 7, it has a good financial merit. Little Chef's main aim is;
"To be the motorist's friend when it comes to offering quality food at value for money prices for people on the move."
They will need to invest in human resource planning in order to fulfil this aim or face the consequences such as a reduction in sales and failure to meet their main aim, without this investment they may be overtaken by their competitors such as Wimpy.
The management should strive to provide superior leadership within the company, keep communication lines open and support the entire staff. They should periodically take time to examine the workplace, and continually seek to improve it. This will help them to create and maintain a workplace where people want to work and stay.