Chapter 21

Monitoring Performance and Taking Corrective Action

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

Learning ObjectivesAfter reading this chapter, you should be able to:

• 21.1 Define the term monitoring as it is used in labour cost control and differentiate between direct and indirect monitoring of employee performance.

• 21.2 Identify the two means of direct monitoring of employee performance and provide examples of each.

• 21.3 Describe four sources of information used for indirect monitoring and provide examples of each.

• 21.4 Outline the five-step approach used to identify the specific cause of some discrepancy between actual and standard performance.

• 21.5 List and describe the three general causes of discrepancies between actual performance and that anticipated by standards.

Monitoring Performance • Monitoring employee performance is:

• gathering information about their work and results

• the third step in the control process

• May be monitored:

• directly

• indirectly

• or a combination of the two

Monitoring Performance • Direct Monitoring:

• Observations by management• Examine employee results

• Indirect monitoring:1. Customers

2. Employees

3. External agencies/organizations/groups

4. Managers

External Monitoring• Agencies/ Organizations/Groups • Government agencies

• Health department• Fire regulations

• Chain organizations• Franchise

• Food critics• Media

• Rating organizations• Michelin, Zagat, Fodor’s

Corrective Action

1. Meet with appropriate staff to point out the problem and to determine its cause.

2. Identify all appropriate corrective measures that may be adopted.

3. Select the best corrective measure from among the alternatives.

4. Institute the selected measure.

5. Monitor performance to be sure that the corrective measure has the desired effect.

Performance Discrepancies • Inadequate performance

• Many reasons

• Unsuitable standards

• Unrealistic

• Inappropriate

• Inappropriate organization

• Reorganization

• Eliminated positions

• Combined jobs

Causes of Inadequate Performance

• Improper materials provided to workers

• Lack of required equipment or tools

• Need for additional training

• Inadequate management or supervision

• Poor union-management relations

• Personal problems away from the job

• Difficulties with inter-personal relations on the job

• Inadequate compensation

• Illness

• Poor working conditions

• Improper work schedules

Key Terms• Direct monitoring, p. 540• Indirect monitoring, p. 541• Monitoring, p. 540• Reorganization, p. 551

Chapter Web Links• Zagat: http://www.zagat.com/• Fodor’s: http

://www.fodors.com/world/north-america/canada/restaurant-reviews.html

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