Chapter 19

Establishing Performance Standards 

Principles of Food, Beverage, and Labour Cost Controls,Canadian Edition

Learning ObjectivesAfter 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.

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

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

Job Analysis

Interviews and observations are designed to provide information about the following:

1. Job objectives

2. Specific tasks required to achieve objectives

3. Performance standards

4. Knowledge and skills necessary

5. Education and experience required

Job Descriptions

Answer three questions:1. What is to be done?

2. When is it done?

3. Where is it done?

Typically three parts:4. Heading that states the job title and department

5. Summary of the duties of the job

6. List of the specific duties assigned to the job

Job Descriptions

• Performance criteria:• 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

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

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.

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

Key Terms• Fixed-cost personnel, p. 497• Job analysis, p. 492• Job description, p. 493• Job specification, p. 494• Median, p. 504• Organization chart, p. 490• Organizational plan, p. 489• Performance criteria, p. 493• Standard labour cost, p. 514

• Standard staffing requirements, p. 512

• Standard work hours, p. 512• Variable-cost personnel, p. 496

Chapter Web Links• Actoris: www.actorissoftware.com/xpressschedule.php

• Silverware POS: www.silverwarepos.com

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