Chapter 13

Labor Cost Control

Planning and Control for Food and Beverage Operations
Sixth Edition
(464TXT or 464CIN)

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 Competencies for
Labor Cost Control
1. Describe how food and beverage managers
use staffing tools such as job descriptions,
job specifications, and organization charts in
planning for labor cost control.
2. Describe how food and beverage managers
use recruitment and selection tools to ensure
that the most qualified applicants are hired
for open positions.
3. Explain how orientation programs, training
programs, and employee performance
evaluations help control labor costs.
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 Competencies for
Labor Cost Control
(continued)

4. Explain how food and beverage managers can

increase staff productivity by simplifying work
processes and revising performance standards.
5. Explain how food and beverage managers use
techniques such as job rotation, job enlargement,
and job enrichment to increase productivity and
employees’ interest in work.
6. Review basic tactics that food and beverage
managers can use to reduce employee turnover rate.
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 Job Descriptions
Features
• Summarize each job
• List major tasks for a job
• Indicate employee’s supervisor
• Indicate who the employee supervises
Uses
• Recruitment/selection
• Design of training programs
• Daily supervision
• Performance evaluation
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 Recruitment and Selection

Recruitment
• Attracting qualified applicants
for open positions
• Sources of applicants
• Application form

Selection
• Employee interviews
• Reference checks
• Selection tests
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 Orientation
• Set the tone
• Employee handbook
• Forms assembled
• Tour
• Workstation viewed
• Trainer selected
• Training plans developed
• Adjusted supervision
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 Training Program
• Job knowledge
• Job skills
• Job attitudes
• Training material
• Training evaluation
• Training time

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 Training Program Development
• Observe training needs.
• Establish training goals/objectives.
• Construct a job list.
• Develop a job breakdown.
• Write job descriptions.

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 Training Program Development
(continued)

• Develop performance standards.

• Make a training plan.
• Write training lessons.
• Implement the training.
• Evaluate training: coach and follow up.

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 Performance Evaluation
• Identify objective, measurable factors of job
performance.
• Explain performance evaluation process to
employees.
• Collect appropriate performance data.
• Discuss job performance with the employee.
• Permit employee to express views.
• Stress employee’s strong points.
• Obtain commitment on improving performance.
• Conduct formal appraisals every six months.
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 Factors Affecting
Performance/Productivity
• Menu items
• Convenience foods
• Service style
• Quantity of meals
• Number of meal periods
• Facility layout and design
• Production equipment
• Labor market
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 Factors Affecting
Performance/Productivity
(continued)

• Allocation of labor hours

• Human resources administration policies
• Supervision
• Employees
• Work methods
• Work environment
• Number of hours worked
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 Revising Performance Standards

1. Collect/analyze information about current

performance standards.
2. Generate ideas for new ways to get the job done.
3. Evaluate each idea and select the best approach.
4. Test the revised performance standard.
5. Implement the revised performance standard.

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 Increasing Interest in Work
• Job rotation: cross training to perform several
different jobs
• Job enlargement: increase number of tasks
included in a job
• Job enrichment: change tasks associated with a job

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