Chapter 1

THE POBLEM AND REVIEW OF RELATED LITERATURE

Background of the Study

In this modern society, catering becomes more popular

choice for events where everything, including the food, drinks

and service is planned and rendered. Catering is a remote food

service provider for occasions such as weddings, birthdays,

christenings, and corporate affairs. Over time, these services

have evolved for the better – further providing a balance of

elements that makes a simple event turn into an exquisite

celebration that people will enjoy the most. With an improving

industry of catering services, choosing the perfect corporate

catering for your event could be challenging than expected.

There are two types of catering services, the on premise

and off-premise catering. The On-premise catering are typically

attached to the venue, their home kitchen is located in the

building and they will do all the preparation and cooking on the

site. Off-premise catering cooks the food and brings it to the

site, meaning they serve food in different venues. Raylar’s

Catering is an Off-premise catering since they prepare the food

and deliver it to the venue of the event.

 The researchers choose this study because they have noticed

such problems encountered by Raylar’s Catering from the

different events they handled. This problem includes: Time

management, building your brand reputation and winning client’s

confidence, miscommunication, handling fortuitous situation.

The purpose of this study is to give awareness on how to

deal with this kind of problems that they encounter and also to

determine the solutions in attaining proper methods related to

operational management and customer service.

Review of Related Literature

This section will give a lot of studies, related

literatures and research work on the different aspects related

to operational management and customer service in catering that

gives important information that is essential to every catering

business owners, future entrepreneurs and hotel and restaurant

management students.

Carlos, M. et al., (2012) part of operations management is

to create and deliver a good service. By planning and control of

a conversion process that includes bringing together inputs such

as raw materials, equipment, labor and turning them into outputs

such as product and services that customers want.

 Doris, D. (2011) customer satisfactions is essential to

the survival of every business. Making customers feel valued and

understood. From the moment they enter your business until they

leave, is the first step toward building positive, long lasting

relationships.

According to Hokanson (2005), There are many factors that

affect customer satisfaction these factors include friendly

employees, courteous employees, knowledgeable employees, helpful

employees, accuracy of billing, billing timeliness, competitive

pricing, service quality, good value, billing clarity and quick

service.

Furthermore, Hu, H. et al., (2016) effectively capturing

customer feedback can help organizations swiftly react and

improve the quality of their service processes and delivery

systems. In most organizations, frontline employees are a vital

source of customer feedback as they interact with customers

frequently and intimately.

As Jhon, S. (2010) organizing, creates a division of labor

for tasks to be performed and then coordinating results to

achieve a common purpose. Once plans are created, the manager’s

task is to see to it that they are carried out. Given a clear

mission, core values, objectives, and strategy, organizing

begins the process of implementation by clarifying jobs and

working relationships. When Planning is done well it creates a

solid platform for the other management functions: organizing-

allocating and arranging resources to accomplish tasks; leading-

guiding the efforts of human resources to ensure high levels of

task accomplishment; and controlling-monitoring task

accomplishments and taking necessary corrective action. In the

planning process, objectives identify the specific results or

desired outcomes that one intends to achieve. The plan is the

statement of action steps to be taken in order to accomplish the

objectives.

June, P. (2009) foodservice where food is regularly served

outside the home. Such establishments include catering service.

In Foodservice it should not only be knowledgeable about basic

cooking methods but also needs to understand the time-

temperature relationships and quality control challenges

inherent in quantity food production. Production of food

involves enhancing the aesthetic appeal of the raw food product

by maximizing the sensory qualities of color, texture, and

flavor. Destroy harmful organisms to ensure that the food is

microbiologically safe for human consumption.

June, P. and Monica, T. (2012) what menu items to prepare,

what quantities to produce, when individual items are to be

produced, who is to prepare each item is part of operational

management. Production scheduling requires knowledge of the

steps through which a menu item must go from the item

ingredients are assembled to the point of service. This sequence

is referred to as the flow food. Each step must be carefully

monitored to ensure that each of the cooking objectives is

achieve and maintained, and that products are ready for service

units on time for distribution. During food production, portions

are measured by scoop or dipper or are weighed on portion

scales. Employees should know the numbers of servings expected

from a certain batch size and should be familiar with the size

of the portion. The true test of the planning, however, is the

production of food that is appealing to the clientele, prepared

in the appropriate quantity, microbiologically safe, and within

budgetary constraints. Under Food Services, Customer deserves

the same careful concern given employees in regard to safety.

They expect and should have assurance that the food served will

be safe for consumption and that the facility for dining is also

safe.

Kim, S. et al., (2017) to help customers perform their

roles better, service providers offer them feedback on their

performance. To improve the design of customer feedback that

contains both positive and negative messages, the purpose of

this is to examine the order and the repetition effect of

feedback message types on customer feedback satisfaction,

motivation, and compliance intention, focusing on the moderating

effect of customer involvement level.

Based on MC, M. (2008) food service the daily operations of

a catering service. Under food service, food processing the set

of methods and techniques used to transform raw ingredients into

food for consumption by humans. Food processing often takes

clean, harvested or slaughtered and butchered components and

uses these to produce attractive and marketable food products.

In the food and beverage business, control is a process used by

managers to direct, regulate, and restrain the actions of people

so that the established goals of an enterprise may be achieved.

Probably the most common goal for all private enterprises is

financial success a particular profit or return on investment

other goals may include promoting better health by providing

nutritional information on the menu. To achieve this goals,

management must set up any number of sub goals compatible with

its primary goals this tend to be more specific and usually more

immediate in nature.

As Lora, A. and Douglas, B. (2006) a caterer must remain

highly organized and efficient. A caters job involves planning

how to prepare menus for all of her engagements, preparing the

food, managing staff, transporting the food, talking with

clients, advertising, and handling various unforeseen glitches

such as equipment malfunctioning. As the authors describe she

must effectively juggle these tasks while remaining personable

and professional.

Magdalena, M.T. (2005) food production in kitchens was

checked in order to improve food safety by establishing a self-

regulated control system based on good manufacturing practices

(GMPs) and as an introduction to hazard analysis and critical

control points (HACCP). A form, which referred to different

aspects such as cleanliness of installations, personal hygiene

and the prevention of cross-contamination, was used to obtain

the necessary data.

Ninemeier, J. and David, H. (2006) special care is needed

to reduce the possibility of food contamination. Foods in

production should be kept at room temperature for a minimal

amount of time. It is a common practice of removing all items to

be produced at the beginning of a shift for production during

the shift is not a good one. Utensils such as knifes and cutting

boards should be properly cleaned between food preparation tasks

to prevent cross-contamination.

Ove, H. and Marie, A. (2005) “satisfaction is an overall

customer attitude towards a service provider, or an emotional

reaction to the difference between what customers anticipate and

what they receive, regarding the fulfillment of some need, goal

or desire”.

Robert, L. (2005) customer relations is built on trust. The

most important thing to remember about trust is that, without

it, you have no relationship. For customers to continue doing

business with you, they must trust you and your organization.

Only through continued positive efforts on the part of everyone

in your organization can you demonstrate to customers that you

are worthy to their trust. As you communicate, project your

feelings, emotions by being positive and enthusiastic. Let

customers know that you are human and approachable. Also

communicate frequently and keep customers informed. This is

especially important when they are awaiting a product or service

that has been delayed. If you fail to update them regularly,

they may become frustrated and could cancel their order,

complain, and tell others about their disappointing experience.

Building customer relations, emphasize to your customer’s that

you have their best interest at heart. Work to demonstrate that

you are willing to assist in satisfying their needs. Asking

questions that uncover their needs and then taking positive

action to satisfy them can do this. It can also be accomplished

through passionate efforts to solve problems. Recover from

errors by apologizing, accepting responsibility, and then

quickly and appropriately solving the problem or getting the

necessary information is part of customer relations.

Robert, L. (2009) customer service the ability of

knowledgeable, capable, and enthusiastic employees to deliver

products and services to their internal and external customers

in a manner that satisfies identified and unidentified needs and

ultimately results in positive word-of-mouth publicity and

return business. Feedback is a response to messages a listener

receives. This response may be transmitted verbally (with words)

or nonverbally (through actions or inaction). Depending on the

content and delivery, your feedback could positively or

negatively influence your relationships with your customers. The

words you choose when providing feedback to your customers are

crucial to interpretation and understanding. Before providing

feedback, you should take into consideration the knowledge and

skill level of your customers. When providing verbal feedback,

you should also be conscious of how your customer is receiving

your information. If the customer’s body language or nonverbal

cues (gestures, facial expressions) or words indicate

misunderstanding, you should pause, and take any corrective

action necessary to clear up confusion.

In addition Roberta, R. (2011) activities in operations

management include organizing work, selecting processes,

arranging layout, locating facilities, designing jobs, measuring

performance, controlling quality, scheduling work, managing

inventory, and planning productions.

Stephen, S. (2008) formulating a plan is a beginning point

to the successful execution of a catering event. A well

formulated plan will serve the caterer well. The plan is a blue

print. It becomes the outline for the event it provides

guidance, establishes direction for the catering team,

identifies each course of action required to accomplish

predetermined objectives. Building an organizational structure

with the flexibility to support the implementation of multiple

event plans centers on the catering management task of

organizing.

Umashankar, N. et al., (2017) complaining after service

failures leads customers with strong ties to increase customer

relations. Service firms spend considerable resources soliciting

complaints to initiate recovery efforts and improve their

offerings. Complaints/feedback serves an equally important role

in engendering loyalty. The strength of social ties between

customers and service providers influences the degree to which

complaining drives loyalty. Paradoxically, while strongly tied

customers fear that complaining threatens their ties with the

provider, when they are encouraged to complain, their loyalty

increases because offering feedback serves as an effective way

to preserve social ties.

In Addition, Verma, R. (2010) the quality of products and

services can have a big impact on customer satisfaction.

Businesses that continue to provide high-quality products and

services realize high customer loyalty. A customer who is

satisfied and more loyal to a business is also likely to spread

positive word of mouth and therefore create additional goodwill

in the marketplace. On the other hand, lower quality offerings

lead to negative word of mouth and lower customer loyalty.

Customer satisfaction measures can assess how well the products

and services that a firm supplies meet or exceeds its customer

expectations and also track how customers perceptions of a

business quality are changing over time as the business

initiates and continues with any improvement efforts. Customer

feedback is essential for identifying or developing any quality

improvement plan. Customer feedback can come in many different

formats: customer satisfaction, customer choice analysis,

customer panels, and blogs.

Wayne, H. and Deborah, M. (2010) said that satisfaction can

be associated with feelings of acceptance, happiness, relief,

excitement, and delight.

Conceptual Framework

This section of the study provides a brief discussion

about the relationship between the independent and dependent

variables as shown in the research paradigm.

This study was anchored on the concept of Stephen, S. et

al., (2010)

Control in all facets of the catering operation is needed.

Controlling the organizations resources is an important

management task required to ensure the financial health of the

business.

Formulating a plan is a beginning point to the successful

execution of a catering event. Success evolves over time as the

caterer becomes more adapted to the planning function.

Organizing formally structuring the organization so each

assigned task can efficiently and effectively attained the

stated objective.

Production in catering is the flow of food through

operation. Get everything assembled before work begins such as

equipment, utensils, recipes, ingredients and personnel

involved. Also budgeting and scheduling, determining what can be

produced and understand how fast it can be produced.

 This study was anchored on the concept of June, P-P. and

Monica, T. (2009)

Customer feedback listens to the reply, which may be words,

facial expression, body language or even silence. The evaluation

of feedback can tell much about how the message has been

received.

Customer relations along with strategies on how to handle

customer complaints and angry customers and how to win customers

heart through effective communication.

Customer satisfaction depends in large part on the pleasing

presentation of carefully prepared assembled and transported

food in every type of food service operation.

Foodservice mission might be to satisfy customer by serving

high quality, nutritious food at reasonable price while

achieving a desired profit for the organization.

Theoretical Framework

This section contains theories that help and support to

better comprehend the data gathered on this study.

This study was anchored on the theory of Susan, D. (2010)

customer service theory based on identifying and satisfying your

customers needs and exceeding their expectations. A company must

be totally committed to delivering consistently high standards

of service to gain and retain customer loyalty. Customer

satisfaction and loyalty are inextricably linked to the quality

of customer service and, ultimately, to the business

profitability. Customer service theory involves build a customer

service culture, provide comprehensive training programs to the

employees that make them experts in their field. Emphasize how

providing excellent customer service is the cornerstone of your

business. Know your customer, by profiling them. You can ask

them directly, through customer comment cards and surveys at

your place of business and on your website. Set customer

expectations, Deliver on every promise to win customer loyalty.

When customers are happy, they recommend your business increased

levels of customer satisfaction also mean increased

expectations. Look for ways you can improve your products,

services and the overall customer experience. Communication,

Establish a continuing dialog with your customers. Keep them

informed of special promotions that appeal to their interests.

Customer service tips, Build relationships with your customers

and listen carefully to what they tell you. Pay attention to

their changing needs, and introduce new products and services

based on customer feedback gathered from surveys. Continually

explore new ways to keep your customers engaged. Focus on caring

for your existing customers and new ones will naturally follow.
 This study was anchored on the theory of Mahesh, G. and

Lynn, B. (2008) Theory of constraints can serve as a general

theory in operations management. It was observed that the

execution of the TOC cycle promoted better employee performance

and a greater contribution of the employees to the improvement

of the process as a whole. The change of this mental model

adopted by the employees came from the TOCs measures and

methodology, naturally adopted during its application, providing

the results of Gupta and Boyd shows the TOCs relationship with

mental models, measures, and methodologies. With the use of TOC

cycle, there are changes in the way each employee behaves and

sees his or her work, leading to changes in his or her way of

acting in relation to work and the organization. TOC emphasizes

the cross-functional and interdependent nature of organizational

processes by viewing an organization as a chain of

interdependent functions, processes, departments or resources

where a variety of inputs are transformed into a variety of

products and outputs.

This study was anchored on the theory of Nate, B. (2014) in

the late 1950s Frederick Herzberg introduced his research that

has revolutionized the way we look at motivation in the

workplace. This theory is known as the two factor theory and it

introduces two separate scales measuring employee satisfaction.

There is one scale that measures satisfaction and the other

measures dissatisfaction. The key is to focus on the fact that

herzbergs theory does not identify them on the same scale. This

means satisfaction and dissatisfaction are not co-dependent

opposites, but rather separate measurements all together. The

two factors that comprise the theory are motivators and hygiene

factors.. The best part is that Herzbergs two factor theory can

be applied to other business functions. After all, it is a

theory based on people, not any specific discipline. Customer

service is a fanatic example. Unique insight can be gained by

viewing service interactions through the two factor lens. In a

service environment we can consider motivators such as free

products, convenient social media support channels, and wow

moments in service transactions can grow satisfaction, brand

loyalty. Hygiene factors such as extended phone trees, long hold

times, channel switching, or inconsistency between analysts can

reduce customer satisfaction. There are many hygiene factors in

service interactions that take the form of customer

expectations. These are elements that will rarely build rapport

but when done poorly they are major dissatisfiers. Intentional

effort to understand the expectations of your customers will be

essential to predicting loyalty.

Independent Variable Dependent Variable

Operational Management Customer Service

 Controlling  Customer Feedback

 Planning  Customer
 Production Relations
 Organizing  Customer
Satisfaction
 Food Service

Figure1. The Research Paradigm

Statement of the Problem

The purpose of the study is to determine the relationship

between operational management and customer service at Raylar’s

Catering, Libertad, Butuan City.

1. What is the extent of operational management at Raylar’s

Catering Services in Libertad, Butuan City in terms of:

1.1 Controlling;

1.2 Planning;

1.3 Production; and

1.4 Organizing?

2. What is the level of customer service at Raylar’s Catering

in Libertad, Butuan City in terms of:

2.1 Customer Feedback;

2.2 Customer Relations;

2.3 Customer Satisfaction; and

2.4 Food Service?

3. Is there significant relationship between operational

management and customer service?

Hypothesis

Based on the problem stated a full null hypothesis is

tested at 0.05 level of significance.

HO. There is no significant relationship between the extent

of operational management and the level of customer service.

Significance of Study

This study would have significant purpose and give more

information to the following:

Catering Services Owners. The study will allow them to

analyze the outcomes in running this type of business and for

them to prevent from possible problems that may occur in the

future.

Customers. The study will served as a guide to costumer’s

on how catering services can improve their event and to give

them idea on what are the positive or negative effects of

catering services to a certain event.

Employees. This study will help them understand the right

duty and responsibility that they should render to their

customer.

Future Entrepreneurs. This study will provide the

information on how to run catering business properly. And how to

solve problems that they will be encounter in handling catering

services.

Future Researchers. Throughout this study, they will

possess an effective way of exhibiting what they have learned

and come up with an output, in the design of making a research

study that could be helpful to others. This research will also

serve as an added information or background on how to create an

excellent beginning in a catering service business; this study

will also help the researcher to be more resourceful and

diligent in the field of this study.

Scope and Limitations

The concern of the study is to determine the extent of

operational management and the level of customer service at

Raylar’s Catering in Libertad, Butuan City.

The Independent variable of the study is Operational

Management in terms of controlling, planning, production,

organizing. On the other hand, the dependent variable of the

study is Customer Service in terms of customer feedback,

customer relations, customer satisfaction, and food service.

The respondents of the study, limits to those selected (30)

employees who is working at Raylar’s Catering in Libertad,

Butuan City.
Definition of Terms

To gain more knowledge and to understand the terms used in

the study, the following are defined operationally.

Operational management. The set of activities that creates

value in the form of goods and services by transforming inputs

into outputs.

Controlling. Evaluating the employees behavior, expenses,

measurement of recipes, the quality of utilities, food and

beverage stocks.

Planning. Activities that establishes a structure of tasks

such as plan blueprint, contingency plan, plan customers

requests, and business objectives.

Production. Preparing the materials and ingredients needed

and employees to start the process of making the inputs into

outputs.

Organizing. Proper arrangement of utensils, materials.

Creating organizational structure for staffs for them to know

their task and follow it.

Customer Service. Making sure customers are satisfied and

will continue to purchase the products or services of a

business/company.
 Customer Feedback. Feedback which often takes the form of

complaints to improve our performance.

Customer Relations. Build permanent customer relationship

such as loyalty. The responsiveness to develop long term

relationships with a customer or with a difficult client.

Customer Satisfaction. A pleasurable fulfillment response to

a customer experience by providing them the needs, wants and

services as requested.

Food Service. The daily operations of a food businesses that

serve meals and beverages to customers by having the exact

portion, food safeness, and presentable output.