The rtm restaurant and lounge management essay

Colbourne CollegeRESEARCH PROJECT ASSIGNMENTSTUDENT NAME: Roshel Avagay MorrisonCampus: KingstonEnrolment Date: Sep 5, 1012Student ID number: K764-F12Project Title: The management and operation of‘The R.T.M Restaurant & Lounge*’Hand in Date of Proposal: April 30, 2013In Partial Fulfillment of ……………

Table of Contents

Unit Page

Introduction………………………………………………..…………………3

Section A

Project back ground…………………………………………………….4-6Literature Review……………………………………………………….7-9Objective…………………………………………………………..……9Methodology/Limitation………………………………………………..10-11

Section B

2.1 Analysis and findings…………………………………………………..12-20

Section C

3.1 Recommendation/ Discussion………………………………………..21

Section D

4.1 Conclusion…………………………………………………………..…224.2 Bibliography………………………………………………………..…..23

Introduction

‘The R.T.M Restaurant & Lounge*’ is located at Grenada Crescent, New Kingston, where the city never sleeps and the party is as sure as the day following the night. It is a Italian cuisine restaurant and lounge. It will be opened from 7am to 10pm, to serve breakfast, lunch and dinner. The menu consists of fine wines, tasty pastry, and a lounge for hangout and dining in styles. Tipping the scale of luxury, it has a three-sixty degree view of the man-made forests, with the sound and scenery of water falls with flamingos of all shapes, size, and colors. It also consists of several VIP areas with its own televisions and waitress/waiters. ‘The R.T.M Restaurant & Lounge’ is a partnership business that consists of three friends: Molly Morrison, Trudy Glaves and Andy Cousins. The business is financed both by loans and personal saving. The pricing of ‘The R.T.M Restaurant & Lounge’ is matched with the quality of service and experience that the customers will achieve. The restaurant has eighteen employees and with the constant growing demand it will have to extend its space and increase employment to keep up with the demand.The importance and potential impact of the project is that it shows how to manage and run an effective business by being good leaders and mangers to the employee so that the they can achieve the main objective of the restaurant. Therefore, the employers first uses employer branding within the restaurant so that they can speak positively and be happy but their working environment. Hence with this this being employed people tend to gravitates toward the restaurant while fostering a greater market share. Hence this project shows what are the consideration that must be put in place to operate a business in Jamaica, for instance, the rules and regulation of the country.Section A

Project back ground

The R.T.M Restaurant & Lounge*

Names of partners

Qualification

Bach ground

University/College

Molly MorriosnBachelor degree in marketing & finance*Upper middle*Christian*No childrenUniversity of TechnologyTrudy GlavesBachelor degree in tourism management & HRM*Modest background*Christian*No childrenExcelsior Community CollegeAndy CousinsBachelor degree in food and nutrition*Degree in FinanceCulinary arts institute

Managerial hierarchy

Literature Review

Management is structuring organization setting with specific roles. The aim and objective is achieved by influencing others to perform organization task. (Webster 2007)Henri Fayol (Training Journal. 2005) believe that management is about ‘command and control’. Fayol continues to say that there are five function of management: Planning, Organizing, Commanding, Coordinating and Controlling. In addition he defined 14 principles of management: Division of work, Authority and responsibility, Discipline, Unity of direction, Subordination of individual interests to the general good, Fair but not excessive remuneration, which rewards effort, Centralization, The scalar chain, Order, Equity, Stability, initiative and Esprit de corps. ‘Command and control’ seems odd today but it is true that most organization need some kind hierarchy and a clear line of command and accountability, for the organization to function properly. Like Fayol, Jaques(Training Journal. 2005) for example,management hierarchies is need because managers are accountable. It is important to the layers of management and authority associated with each. This will help employees to know where they stand and there reach their goal. She believe that De-layering, group objectives will foster problem and confusion of where accountability lies.FW Taylor believe that, organization responsibility belong to the manager; workers hardly do what they were told to do. He claimed that to get maximum result on work it should be specific and precise, then followed. Workers should be carefully selected, train and monitored such as the time and motion study. Taylor continues by saying that, ‘in the past man has been first’; ‘in the future the system must be first’. He believed that workers are motivated by incentives. Frank and Lillian Gilbreth (Training Journal. 2005), for example, in the 1890s to 1910s based on time and motion studies find it highly successful in business because it help to minimize waste and reduce time spent on work related activities.According to (kashafchaudhry 2013), some problems that HRM faces with globalization are:Managing diversity in the workforce.Managing pressures for more labor rights in third world countries.Managing Outsourcing of employees.More part-time and temporary work.Employing flexible working hoursManaging productivity and Quality level.Diversity within the organization can be both positive and negative. For instant on the negative side, with a diverse work force can create conflict with each other by employees might bash each other because of where they came from and the stereo type associated with it (Muslim, booming). Therefore, they will not be comfortable working there because they and in a comfortable environment.Within every business there is legal framework that employees and employers have to follow. For example, employers must pay their staff for their efforts on the job and employees have a right to obey any reasonable command from their managers to complete a task.

Objective

The objectives of this project are:To determine the importance of technology in the business and how this business can use technology to greater efficiency and effectively manage the day to day operation of the business.To determine the values and laws and regulations that governs businesses in the country.To identify the legal and ethical challenges of running a restaurant.

Methodology

The main data will be secondary data. This was process to give a factual and logical answer. These are:➢Magazine➢Journals➢Internet sources and➢BooksThe advantages of using a Secondary data:➢there are usually easy to administer.➢The information that is collected is from a large number of people even if they are geographical related.➢it save the researcher time since the information as gathered from a large number of people and stored.➢the data can be easily accessible and analyze.The advantages of using secondary resources is:➢Reliable, the researcher can verify information if they do not seem factual in some way or form.➢easily and quickly can go back to reference, if you misunderstood. Therefore, you can clarify your findings or similarity.➢Valid, there is the opportunity for clarification of misconceptions on the part of old and modern findings/literature.➢ it is practical, it saves the researcher time and money.

Limitation

There are some matters that this methodology may not help me to explain but there was no limitation.These might include:➢there was not any limitation to this study.For future research on this topic it is that, more modern theories should do work on management as it relates to modernization.Section B

Analysis and Findings

Principle of ManagementDivision of workThis means continues improvement both in term of skill and work. For the restaurant, this will allow individual with special types of skill to utilize it in helping the business to grow and achieve its goals. The restaurants goal is to be the number restaurant in Jamaica.Line of authorityOrganization must have some sort of authority and hierarchy. This means that with in the restaurant, there will be superior and subordinates authority, therefore one have to follow instructions and give instructions.DisciplineEmployees must obey but only if management plays their part by providing good leadership. In running the restaurant, the partners must show respect to the employees and this will result in a harmonious environment within the company.Unity of commandEmployees should only have one boss with no conflicting line of commands. In the restaurant, employees should only report to one person and that is the person that is in charge or in charge in a particular department. For example, Chef only reports to the food and beverage manager concerning menu, food preparation, etc.Unity of directionManagement must be unified and moving in one direction. The restaurant’s goal must be of the interest of all the employees. Therefore, the interest of the restaurant objective should be clearly stated and paramount.Subordination of individual interestThe needs of individuals should not be the focus in the organization; the organization goal should be the focus. Furthermore, it is vital that the employees keep the working environment free of conflict, if not; it will be the down fall of the restaurant objective.RemunerationThis is payment to employees for their service to the organization. It is also a motivation for a well-directed effort; you should not award people who don’t do any work. This is a high motivator for employees to put out there best, because in return they will be awarded accordingly. Hence, the restaurant will be successful because workers are motivated and their energy will reflect positively on their customers.EquityEmployees should be treated in an organization equally with fairness, reasonable, respect and so on. For example, two qualified persons, one male and a female, with the same qualifications are working in a restaurant performing the same job description but the female gets less pay due to gender differences. With equity, no one will be subjected to sexuality/gender issues.Stability of tenure of personnelWorkers need some type of stability on the job, which will make, workers perform better. For example, when employees work with curiosity, wondering if today is their last on the job, they tend to operate under severe pressure leading up to lower production and lack of creativity.InitiativeAllowing all personnel to show their initiative in some way, is a source of strength for an organization. The restaurant can benefit from the initiative that workers given by exploiting different ideas and creativity.

Important decision that must be made to utilize organizational resources to effectively build a competitive advantage.

PlanningThis is the process used by managers to identify, select appropriate goals and follow a course of action for an organization. This is done by obeying laws in which the organization operates in. The restaurant should have a set of particular goals that it plans to meet at a particular time period.OrganizingThis is grouping people in department so that work can be done effectively. By grouping these people in department will help to manage the flow of the workers and controlling the internal running of the restaurant. With the smooth running of the restaurant, conflicts will be kept on a minimal. As a result of this, production and service will be high; and will encourage customer loyalty.LeadingManagers will determine the direction and stating a clear vision for the employees to follow. The employees at ‘The R.T.M Restaurant & Lounge’ after being employed, will be given a job description outlining what is expected of them and how they would contribute to helping the restaurant to reach its goal. The quality of customer service and the quality of food and beverage that is being prepared should be of high quality and also the proper allocation of resources and capital. With employees meeting these expectations, it will allow the business to grow and achieve its objectives.ControllingManagers evaluate how well the organization is achieving its goals and find ways to improve its performance. With this being implemented, it will give the company away to be competitive and a source of saving capital. This can be achieved by finding ways to cut down wastage that is used to create a particular dish. For example, using chicken leg and breast mostly, without using other parts of the chicken. These other parts could be used to create other types of dish, for example, putting chicken soup on the menu at an attractive price.

Technology use to better manage the complexity of the restaurant industry

Technology indeed has taken over almost all industry in the modern world today. Businesses these days are now finding ways to implement technology to lower cost and better able to serve a large clientele. It is costly, but worth it in the long run because it will be cheaper to have technology doing a large amount of work than employing a lot of workers to do the same job. It is safe to say that ‘humans tend to waste more resource than computer animated equipment’. Listed below are several ways technology can help manage complexities of the restaurant:1)Computers- these highly sophisticated machines can take orders for delivery, pick-up, a dinner reservation, or even promote the company. Also, it can be uses to source cheaper raw materials, weather overseas or in the local market. With this being done, the price of a meal is passed down to the consumer at a lower price.2)Phones- Land line or Cell phone- As of recent, in general phones has become a part of our everyday lives. It is important for the restaurant to have a phone because communication is the key. This will allow customer to make or cancel an appointment without going to the restaurant in person, weather it is months, weeks, or days in advance. This in return, will allow the restaurant to know how much stock they need to satisfy their clientele.3)Fax machine or facsimile- This type of technology has been around from the 1980’s and is known worldwide. Faxing, will allow the restaurant to communicate with suppliers about new supplies or the lack of supplies. Therefore, keeping the restaurant informed about a particular product or raw material. Moreover, the restaurant can use the information to find new or alternative solutions.4)Point-Of-Sale (POS) system- The POS system is promptly being used by the restaurant industry. These systems use a touch-screen display to allow cashiers and servers to input orders, then automatically sending them to the kitchen for preparation without having to manually call the order back and submit a hand-written dining ticket. As soon as a server types a customer’s order into a POS terminal, it is sent directly to the designated food prep station, all while the server is getting back out to check on his/her tables and make sure that all of their customers are happy, new orders will be getting ready in the kitchen for waiting customers.5)Computerized stock management software- new software’s have the ability to keep track of anything that the restaurant uses. It can keep track of the amount of food, ingredients and dry stock that is in the store and automatically deduct portions based upon the components of the orders that are coming back through the POS system. Not only does this make keeping track of stock and generating usage statistics much easier, but the POS system can automatically alert servers when one or more items are out of stock. This also helps to prevent them from attempting to place orders for dishes that are currently out of stock.6)Use energy efficient machines- New machines such as power saving equipment and fast machines to cook/make food will reduce costs dramatically and in return yield greater profits. These machines that should be replaced are refrigeration, lighting, sanitization, and food preparation machines. Not only will these machines reduce cost, but reduce preparation time, idle time, increase efficiency, and reduce repair and maintenance costs.

Five legal and ethical challenges that restaurant will face and the plans of action

Safety IssuesWhether you run a restaurant, or any other type of business, you will need to know the rules that govern workplace safety, and we will work with our insurance provider to implement all government safety regulations. Also, we will contact the local fire department to inspect the workplace and guide us on obligations. It is important for our restaurant to comply with all government agencies to have optimum safety at our location, not only for our workers, but employees as well.Image ProblemsWhen employees or anyone of the organization act unethically, it can damage the business dramatically. If the public believes that you discriminate against customers or employees try to skirt environmental laws, or they act in other inappropriate ways, customers will stop patronizing the business. Some unethical behavior is also illegal, such as bait-and-switch advertising; sexual harassment; age, sex or racial discrimination; and intimidation of workers who want to organize a union. If you break your word on an agreement with one customer or employee, word can spread in the marketplace, making it more difficult to operate. Creating a detailed company policy and procedures will guide employees how to act accordingly. These guidelines must be distributed to each employee, and it will help avoid many legal and ethical problems.Legal LiabilityIf your service or an employee harms a customer or member of the public, you might be liable for damages. Meeting with the insurance company to evaluate exposure and arrange for an appropriate insurance coverage. Other types of insurance to look into are: product and premises liability insurance; director’s and officer’s liability insurance. Make sure you set up your company as an entity that protects you from personal lawsuits. Also, employees of this organization will all have to go through a food handler’s workshop to ensure that they handle the food and beverages properly, for example the server must use gloves when preparing a salad for the customer.StealingStealing is a normal attribute that affects the profits of a business in today’s world. According to some websites online, theft of food or money in the restaurant industry takes up about 65-75% of inventory shortage and loss of around 4-6% of total sales. A lot of the owners of want to believe that they have honest employees working for them at the restaurant, and does nothing to prevent employees from stealing. I would first have a disciplinary code of conduct that has strong rules and regulations that will prevent employees from stealing. I would also take the time to watch the camera to see if any suspicious activity is going around, keep a keen eye on the cash register, if someone tells me that an employee is a thief at my location, I would watch them and questions other employees about that person.Registering of the companySome small restaurants is not registered with the government, therefore, they have no knowledge about the existence of the restaurant. To approve the operation of a restaurant in Kingston, the government would have to send the Kingston and St. Andrew Corporation (KSAC) to approve the plan, building codes and so on. This approval can take a while to be processed, and it comes with a cost that has to be paid by the restaurant. The KSAC will govern the employees working in the company. They will govern things such as: number of hours worked, minimum wage free from tax, safety regulation and good working conditions. Additionally, it makes sure that employees get benefits such as: National Housing Trust (NHT), NIS, Education tax, etc. In the end, everyone will benefit from this action. The registration of the company will benefit the government by earning taxes; workers will gain interest and safety is paramount; and partners will not have to worry, as the government and public will both recognize our fantastic restaurant.

Five (5) steps that describe how Management by Objectives (MBO) can be implemented in the restaurant

Set or Review Organizational ObjectivesThe managers for the restaurant must set a clear organization objective, and if they fail to do so the workers would not know what direction to g. For example, the restaurant wants to offer the best service money could buy.Cascading Objectives Down to EmployeesThe restaurant can be successful by motivated, committed team members, and a good communication channel.SWOT (Strength, Weakness, Opportunity and Threat) analysis: this will help determine how successful the business will be. SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm’s specific business model that will best align an organization resources and capabilities to the requirements of the environment. In other words, it is the foundation for evaluating the internal potential limitations, probable opportunities and threats from the external environment.Strength(S)- This is where the organization finds a way to expand its product line. For example, adding on a new dish and appetizer to the main course. This will create or add a variety of product selection on the menu. With the course added to menu, it can create customer loyalty to the restaurant; therefore bring profits to the organization.Weaknesses(W)- of an organization can be internal and external. Internal weaknesses can be things like: poor: management, leadership style, money allocation etc. This can be eliminated by setting clear goals and strategies as well as the practice of conflict resolution. External weaknesses are things that the business has no control over. For example, competitors, the law (zoning la), and so on. This can be controlled/ minimized by keeping in tune or informed about any changes in the external market.Opportunity(O)- is both internal and external. Internal opportunity can be that the business is expanding and creating revenue, as well as creating and expanding business both locally and internationally. External opportunity is the awareness of the restaurant both locally, regionally and internationally, by creating revenue and publicity.Threat(T)- is never favorable to any organization. Some examples are: low turnover, competitors, low sales, infestation of poor management of waste and lack of awareness. This can be prevented with good book keeping, management of financial resources, and practices of proper disposal of garbage to prevent the infestation of insects and animals.Encourage Participation in Goal SettingEmployees at the organization have their own personal goals and knowing the goal of the restaurant, they can compare the two, and see how they will fit in the organization. When employees are self-directed rather than boss-directed, they work a lot better and this kind of action is both beneficial to the employee and the overall organization. The managers must have some sort of mechanism to monitor the progress.Monitor ProgressMonitoring deals with finding out problems before they happen. This is important because if something goes wrong within one department, it throws off other departments resulting in threatened goal achievement. A good manager will find out the problems before they happen. For example, the chef has to prepare a customer dinner in ten to fifteen minutes maximum. However, that time might not be sufficient time, because some customers might have special requests on how they want their dinner to be prepared, and that will take up additional time.Evaluate and Reward PerformanceEvaluating employees based on how customers are treated and their efficiency when completing a task, or the amount of customers they can be dealt with in a short and quick time span without making customer feel rushed or not getting enough attention is important. Hence, by taking these into consideration the managers can then reward employees based on effectiveness and efficiency. Reward performance can be like employee of the month (non-monetary rewards) of a raise in pay (monetary reward).Section C

Recommendations/ Discussions

The recommendation is that in order for the restaurant to continue to grow and improve its market share, the owning partners of the business have to be free from major conflicts, thinking individualism instead of thinking collectively and treat their employees with respect. Therefore, with the internal staff being treated well, like as a part of the restaurant, and not just as a worker, it will reflect positive on the restaurant and people will strive to affiliate themselves with that kind of atmosphere.To be successful in restaurant business the managers must adopt a leadership style that will encourage its worker to perform efficiently and effectively.Reasons: with motivated employee the worker will work harder and more efficient. Hence this will create more revenue for the restaurant, greater market share and the customer will be highly satisfy with their food and customers satisfaction when it comes on to services.The managers should find ways to assist and evaluate their workers to find out what is their strong and weak area and to train them to better enhance capabilities.Reasons: The manager should figure out if their workers are motivated with non-monetary (recognition) or monetary rewards (bonuses). When employees are motivate it show in their performance and how they deal with customers.The managers should invest more in technology for the kitchens to better able to manage the quality of food. For example the coffee machine would make the coffee the same way with high quality than it employees.Reason: Quality of service is more manage than the production of employees.Section D

Conclusion

According to the literature review, organization must have a clear line of authority so that employees know who to report to incase of emergency decisional making. In conclusion, ‘The R.T.M Restaurant & Lounge’, is a partnership business that has several employees that are motivated and willing to work for the betterment of reaching the business organizational goals.The method that was employed to complete this project is secondary research because the information was readily available than if you had to do a primary research on the topic area.To be effective managers, the partners must employ a good leadership style which they believe will satisfy their employees and motivate them to do their job effectively and efficiently while giving good customers service.