Management theories applied to a UK Restaurant

There are a lot of foreign restaurants have opened in UK in this years and these restaurants are growing popular both with UK nationals and foreign visitors to the UK. I am working as an assistant manager restaurant called Smith. This business is the family business and they are thinking about extending and developing a chain of restaurants across the UK like other foreign companies. The owner and manager, Mr Smith is himself a foreigner who has lived in the UK for many years. His family in Africa operates a chain of restaurants business across the African countries and therefore he is very familiar with this kind of business.

Introduction

Smith’s restaurant is located in central London and close to many attractions and easily accessible by public transport. The restaurant has seen a big increase in sale due to the popularity of European and International cuisines. According to these factors Mr Smith want to open the similar restaurants across the UK.

Gather Information

The restaurant is currently using the typical hierarchical structure. Mr Smith is the owner and also the managing director. He had two assistants and three supervisors but he direct control over management and operational issues such as the hiring of staff, marketing and sales promotion.

.

Mr Smith

Managing Director

Staff

Staff

Staff

Assistant Manager

Assistant Manager

Staff

Supervisor

Supervisor

There are small accounting and finance department headed by Mr Smith’s son Peter. He is currently studying for a degree in accounting and only works part time. Mr Smith himself takes some of the duties in this department too.

Centralization and Decentralization

Mr Smith restaurant is now in centralization structure an it have several layers of management that control the company by maintaining a high level of authority, which is the power to make decisions concerning business activities. With a centralized structure, line-and-staff employees have limited authority to carry something out without prior approval. The top management telling middle management and then tells supervisors. Then the supervisors tell the staffs what to do and how to do it.

In this case Mr Smith has to think about the decentralization policy to change in business extension plan. Decentralization seeks to eliminate the unnecessary levels of management and to place authority in the hands of assistant managers and supervisor. Although that policy helps Mr Smith some part of the duties, it’s increasing the span of control, with more employees reporting to one manager. Because more employees are reporting to a single manager than before, the managers are forced to delegate more work and to hold the employees more accountable.

Tall and Flat structure

There is other structure to look at for the Mr Smith business plan. A tall structure is the structure which Mr Smith using it now. A tall structure is one with many levels from the top management level to the operating level. A tall structure usually implies a narrow span of control for supervisors and managers and a greater degree of devolved decision-making, but requires many more supervisory and managerial staff. It also leads to the long vertical communication, and possibly to weaker communication between top management and staffs. In a tall structure the hierarchy is generally problems of coordination are always present.

Nowadays many large corporations have set about reducing their hierarchy in order to introduce a flatter structure. The flat structure contains fewer levels between the top and bottom of the organisation. The result for the using this structure is a few supervisor and management staff, and wider spans of control for those who remain. This structure leads to more centralised decision-making. However, to avoid this increasing centralization by encourage all the levels of staff carry greater personal responsibility for their role and duty.

Organisational Culture

Organisational culture affects behaviour through a deep-rooted system of values, attitudes and beliefs. Culture is specific to the organisation and is learned behaviour. Different organisations have a different ‘feel’ or ‘climate’ that reflects their culture. This may be reflected in the degree of formality and task or people orientation; the dress code; accepted behaviours and expected performance levels.

Charles Handy (1985) looking at culture which used to link to organizational structure to organizational culture. He describes four types of culture;

A Power Culture which concentrates power among a few. Control radiates from the center like a web. Power Cultures have few rules and little bureaucracy; swift decisions can ensue.

In a Role Culture, people have clearly delegated authorities within a highly defined structure. Typically, these organizations form hierarchical bureaucracies. Power derives from a person’s position and little scope exists for expert power.

By contrast, in a Task Culture, teams are formed to solve particular problems. Power derives from expertise as long as a team requires expertise. These cultures often feature the multiple reporting lines of a matrix structure.

A Person Culture exists where all individuals believe themselves superior to the organization. Survival can become difficult for such organizations, since the concept of an organization suggests that a group of like-minded individuals pursue the organizational goals. Some professional partnerships can operate as person cultures, because each partner brings a particular expertise and clientele to the firm. (P1, P2)

Organisational behaviour and management theories

Organisational behaviour is a term applied to the systematic study of the behaviour of individual within work groups, including an analysis of the nature of groups, the development of structure between and within group, and the process of implementing change. The rationale of organisational behaviour is to predict or control individual and group behaviour in the pursuit of management goals, which may or may not be shared throughout the organisation.

Organisational behaviour also includes in many areas what might be called management theory. Management theory is especially concerned with issues of goal-setting, resource-deployment, employee motivation, team-work, leadership, control, coordination, and performance measurement.

Management theory has been approached form a number of different perspective, each identifying problematic issues and usually, proposing a range of possible solutions.

These are some of the management groupings as follows;

Human Relations Theorists

Perspective

Typical Issues

Exponents

Dates

‘social’, ie attention to people’s social needs at work

Group identity

Workers as members of a group

Importance of informal groups

Elton Mayo

Roethlisbeger & Dickson

1927-36

Social Psychological School

Perspective

Typical issues

Exponents

Dates

Individual needs and motivation

Acknowledgement of individual contribution

Individual needs

Personal motivators

Self-actualisation

Achievement

Individual independence

Supportive relationships

Abraham Maslow

Douglas McGregor

F.Herzberg

R.Likert

C.Argyris

D.McClelland

1950’s

1960’s

Leadership theorists

Perspective

Typical issues

Exponents

Dates

Leadership qualities and style

Nature of the qualities

Leadership styles

Situational/ functional aspects of leadership

Contingency approach

D. McGregor

Tannenbaum/Schmidt

C.Argyris

Blake/Mouton

F.E Fiedler

Victor Vroom

John Adair

W.Reddin

1950’s

1960’s

1960’s

1970’s

Improvements in work performance and effectiveness are depending how excellence in management processes. It is important for managers to understand behaviour in a number of areas.

Attitudes: dynamic change in the environment demands rapidly change form organisations and this means their behaviour must change. Employee attitudes to change are often resistant since people feel more secure with the familiar and habitual. They are naturally apprehensive and fear they may be disadvantaged by change and worry they may not be able to learn new skills. For this problem manager must understand the attitudes and perceptions of their employees and respond proactively to reduce resistance for change. This might involve open communication action, participation in the change process and attention to a new wage work bargain.

Motivation: is the most importance in the organisation achieving the goals. Managers must not only understand the needs that drive employee behaviour, they must appreciate the processes involved in making motivation effective in improving performance. Needs may vary with the individual’s level in the organisational hierarchy and what might be effective with one individual might not be with another. Having the right equipment, people skills and organisational framework is not a guarantee of excellent performance. Employees and managers must be motivated to achieve organisational goals.

Communication: organisations depend on receiving and transmitting information to achieve the co-ordination necessary to achieve their goals. Managers must understand this behaviour if they are to ensure a communication process that allows a clear, understandable and fast transmission of information to support decision making without unnecessary distortion or noise. Human nature also leads to extensive informal communications that do not follow the chain of command.

Conflict: when negative, this can inhibit the achievement of organisational goals and adversely affect morale and performance. Managers have to understanding of organisational behaviour will appreciate that conflict can be positively correlated with goal achievement where it releases tensions, stimulates ideas or challenges the status quo.

Manager also needs to recognise the behaviour signs of negative conflict and understand the mean by which this type of conflict may be resolved. (P4)

Motivational theories

There are a lot of motivation theories for Mr Smith business plan. These are some theories which are suitable for Mr Smith business plan. A “motive” is a need or a driving force within a person. The process of motivation involves choosing between alternative forms of action in order to achieve some desired end or goal. Mr Smith is now using the Theory X and Y style (stick and carrot) form Mc Gregor scientific management.

Theory X makes the assumption that the average human being has an:

Inherent dislike of work and will avoid it if possible,

Is lazy

Wishes to avoid responsibility,

Has relatively little ambition

Wants security above all

This is the person should use the stick. They have to controlled, directed and threatened with punishment to get them to put forth adequate effort towards the achievement of organisational goals.

Theory Y makes the following general assumptions:

Work can be as natural as play and rest.

People will be self-directed to meet their work objectives if they are committed to them.

People will be committed to their objectives if rewards are in place that address higher needs such as self-fulfilment

Under these conditions, people will seek responsibility.

Most people can handle responsibility because creativity and ingenuity are common in the population.

This is the person should use the carrot. They have their personal goals and the motivator has to fulfill their quest with organisational goals together.

Victor Vroom – Expectancy theory

The best known contribution to the process theory of motivation is the work on expectancy models of motivation developed by Victor Vroom.

Vroom believes that people will be motivated to do things to reach a goal if they believe in the worth of that goal and if they can see that what they do will help them in achieving it.

People’s motivation toward doing anything is the product of the anticipated worth that an individual places on a goal and the chances of achieving that goal. It may be stated as:

From the Vroom theory, Mr Smith has to motivate the employees by the individual goal and chances of achieve the goal. Mr Smith has to show the employees the goal is clear and it is worth to reach that goal. He is trying to increased activity from reduce the staff lunch breaks from one hour to thirty minutes. He argues that he pays his employees very well and they will have to be happy with whatever decisions he made. Mr Smith is using the one of the motivation theory called Herzberg motivation Theory. Herzberg that monetary methods of motivation have little value; firms still use money as a major incentive. There are a variety of payment systems that a business could use to motivate the employees.

Advantage

Simple and easy to use for businesses

Disadvantage

Workers may resent being paid the same as a colleague who they feel is not so productive

These are the some of the motivation theories for Mr Smith business extension plan to cover. Mr Smith has to look at the monetary methods is not the only solution in organisation, there are so many theories to motivate the employees and always aware of the individual goals of the staffs, then to get the organisational goals with fulfil their wish. (P7)

Empowerment

Empowerment is like delegation. It is when power or authority is given to employees so they can make their own decisions regarding their working life.

Mr Smith should think about the empowerment in future business plan that will also improve in motivation of employees and help in chain organisation. That’s why Mr Smith must use the right management style and structure in his future business extension plan.

Blake and Moulton’s managerial grid

There are a lot of management theories using in business organisation these days. This is the one of the management theory which can help Mr Smith business plan.

1.1 Impoverished management- shows a minimum of concern for either people or production. This type of manager exerts just the minimum effort to get the work done and has little interest in his or her subordinates.

9.1 Task Oriented management- is concerned only with the work and has little interest in people. Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree.

5.5 middle of the road- management- balances the necessity to produce with maintaining morale at a satisfactory level in order to achieve adequate organisational performance.

1.9 The country club style- management is all about the people and shows little concern for getting the work done. Thoughtful attention is paid to the needs of the staff for satisfying relationships, leading to a comfortable, friendly atmosphere and work tempo. This is sometimes called “country club management”.

9.9 Team management- is seen as the ideal. The manager gets the work accomplished by committed people. He or she tries to provide a situation where workers’ and the organisation’s goals are the same and this interdependence through a “common stake” in the organisation leads to relationships based on trust and respect.

Blake and Moulton considered that all managers should strive to attain 9.9 on the grid, with training being directed to this end. (P8)

Effective Teamwork in Organisation

-Teams have been described as collections of people who must rely on group collaboration if each member is to experience the optimum of success.

-A team is a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.

Team success due to:

Synergy: 2+2=5

Co-operation increases efficiency, quality, and commitment

Atmosphere created by cohesive groups encourages participation

Communication and good leadership help to maintain rapport

Mr Smith has to look at in the area of teamwork in his future business plan. Teamwork is one of the most important facts in organisation. Without teamwork any organisation couldn’t cope in critical situation. These are some effective team development process;

Wilemon and Thamhain have developed a model, which they refer to as a multidimensional framework, to guide the project team-development process. This team-development model indicates that the team-development process is composed of the following tasks and goals:

Recruiting of team members

Climate setting for team development

Goal setting

Role clarification

Procedure development

Decision-making

Control

Using the effective team development in organisation Mr Smith can easily manage from head office to overseas of the chain of restaurants. (P10)

Finding and Analysis

Management

Management is a structured process involving planning, organising, directing, co-ordinating and controlling a range of resources, to achieve pre-determined objectives.

THE CLASSICAL SCHOOL OF MANAGEMENT

The “classical” school was effectively the first coherent set of theoretical perspectives about organisation and management. It arose at the end of the last century as the early writers sought to make sense of the newly emerging large-scale business organisations. They focused on:

Purpose and Structure: The approach centres on understanding the purpose of an organisation and then examining its structure.

Operations: The next level of focus is on the operations which have to be undertaken within an organisation to meet the objectives.

Groupings of functions: This is followed by the logical groupings of functions to form individual jobs, sections, departments and so on.

Span of control: Special care is taken over the span of control within management. Co-ordination is affected by clear hierarchies which identify authority, responsibility and accountability, and by duties being clearly specified for each post.

Efficiency: A key emphasis in all of this is a belief in the efficiency of specialisation of labour – individuals being responsible for one particular task to the exclusion of others, and thus being able to build up expertise in that task and contribute to the greater efficiency of the whole.

F .W Taylor and the Scientific School

In 1911, Frederick W Taylor’s book the Principles of Scientific Management was published and, with it, management as a separate field of study started. The main elements of this view of management are:

The detailed and careful analysis of all processes and tasks within the organisation to identify each component part;

The review of all routines and working methods, using (principally) time and motion studies – now called “work study” – to find the best way to do the job;

The standardisation of all working methods, equipment and procedures, so that the precise way in which each task should be done can be laid down and monitored;

The scientific selection and training of workers who would then become first-class at their particular jobs;

The introduction of payment on a piecework basis, which would both be an incentive to maximise productivity and produce high wages for the workers, although there would be penalties for falling below the prescribed standard – “a fair day’s pay for a fair day’s work” in Taylor’s words.

HUMAN RELATIONS SCHOOL

This began through the work of G Elton Mayo (1880-1949) who, with others, conducted a series of experiments at the Hawthorne plant of the General Electric Company in Chicago during the years 1927-32. Mayo sought to evaluate the effects of the changes in physical working conditions, which, according to scientific management, should cause significant variations in productivity. Thus lighting, noise levels, etc. were adjusted and resulting output changes noted.

The researchers concluded that group relationships and management worker communication were far more important in determining employee behaviour than were physical conditions and the working practices imposed by management. Also, wage levels were not the dominant motivating factor for most workers.

Further research established the following propositions of the human relations school.

Employee behaviour depends primarily on the social and organisational circumstances of work.

Leadership style, group cohesion and job satisfaction are major determinants of the outputs of the working group.

Employees work better if they are given a wide range of tasks to complete.

Standards set internally by a working group influence employee attitudes and perspectives more than standards set by management.

Starbucks coffee company: believes that their employees are one of their important assets in that their only sustainable advantage is the quality of their workforce. They have accomplished building a national retail company by creating pride in the labour produced through an empowering corporate culture, exceptional employee benefits, and employee stock ownership programs. The culture towards employees is laid back and supportive. Employees are empowered by management to make decisions without management referral and are encouraged to think of themselves as a part of the business. Management stands behind these decisions. Starbucks has avoided a hierarchical organizational structure and has no formal organizational chart. Starbucks Company basically use the Human Relationship management by Elton Mayo to become success retail company in the world wide.

KFC’s Fried Chicken Restaurant: strategy of KFC is currently working with is to improve operating efficiencies. This in turn can directly impact the operating profit of the firm. In 1989, KFC centered on elimination of overhead costs and increased efficiency. This reorganization was in the U.S. operations and included a revision of KFC’s crew training programs and operating standards. They emphasized customer service, cleaner restaurants, faster and friendlier service, and continued high-quality products. In 1992, KFC continued with reorganization in its middle management ranks. KFC’s is using the middle management style form Blake and Moulton’s managerial grid. It is also help the KFC’s company to one of the famous restaurant around the world.

Mr Smith himself has to choose the right management style and practice in his future business to become a successful organisation around the world. Above information will give Mr Smith to right decision to choose management style for his future business plan. (P5)

An individual at work is seemed by other in three principal ways:

As a physical person having gender, age, race and size characteristics;

As a person with a range of abilities (intellectual, physical and social);

As a personality (ie; someone is having a particular kind of temperament).

In these three of factors personality of individual must have to look at in every organisation. Personality types are great effective in organisation when we look at in leadership, group and teamwork etc; in such areas.

Personality

“those relatively stable and enduring aspects of an individual that distinguish him/her from other people and at the same time form the basis for our predictions concerning his/her behaviour” (Wright et al., 1970)

These are the factors impact on the Personality of individuals;

Genetic factors – there is significant evidence to suggest that our genetic inheritance plays a role in developing our personality. Children, especially twins, are observed to inherit common family traits. Also our physical attributes, which are all genetically determined, may influence how others treat us and may in turn affect how we view ourselves.

Social factors – these are the factors that could influence personality as a result of interacting with other people. Socialisation is the process of being taught how to behave and how to feel by family, friends and other significant people within a social setting. Humans are social animals and so it is to be expected that social interaction will affect our personality and behaviour..

Cultural factors – these are wider social beliefs and values that are absorbed by an individual, and guide behaviour towards that which is acceptable within a social context. This varies across cultures with Americans exhibiting a strong need to achieve whereas in Japan there is an equally strong need to support the team.

Situational factors – these reflect the effects of specific experiences or situations on a person’s feelings and behaviour. There will have been certain events in your life that have had a significant effect on you. Bereavement may literally change the whole personality of an affected person. A person’s personality might also change if his or her role changes, e.g. being sent to prison.

Because people have different personalities, managers must consider the following work behaviour in organisation:

The compatibility of an individuals personality with his task – different personality types fit different types of work and this most be taken into consideration when allocating work

The compatibility of an individual’s personality with the systems and management culture of the organisation – some people hate to be controlled whiles others seek active supervision and control. Managers must be aware of these when adopting a particular style of management.

The compatibility of an individual’s personality with that of others in the team – personality clashes are often the major cause of conflict at work and this must be considered when forming teams. (P3)

Leadership in Organisation

Leadership is a process by which individuals are influenced so that they will be prepared to participate in the achievement of organisational or group goals. It is the role of the leader to obtain the commitment of individuals to achieving these goals.

Formal leaders are those appointed to positions within a hierarchy in the organisational structure.

The informal leader may exercise appreciable influence within a workgroup. Although not necessarily in a post with any formal authority, and thus unable to issue formal instructions and directives, such a person may initiate action through friends or colleagues, or block action, in conflict with the formal leader’s wishes.

There are number of different approaches to leadership. Mullins provides a framework within which to analyse and understand the complexities of the subject. It embraces the following approaches:

Traits- views leaders as born and not made due to inherited characteristics – personality focus.

Functions- focus on what leaders do (roles and responsibilities) – assumes they can be learnt.

Behaviour- concentrates on how leaders behave and influence subordinates and is linked to style.

Style- combines functions and behaviour to produce alternative effects on subordinates;

Contingency- Situational theories propose that leaders choose the best course of action based upon situational variable. Different styles of leadership may be more appropriate for certain types of decision-making.

Situational- based on the recognition that different styles are required in different situations.

All these leadership approaches are using in the today business organisation. Mr Smith has to look at the most effective and suitable for his future business plan. For leaders to be effective, they must be able to perform the following functions or roles:

An executive – co-ordinating group activities and developing norms and policies;

A planner – deciding the means by which goals will be achieved;

An expert – source of key information and specialised skills;

A figurehead – representative of the group, and communications link;

An exemplar – setting standards and expectations and providing a unified front;

An arbitrator – resolving conflicts;

A father figure – a focus for group feelings;

An ideologist – setting standards of behaviour.

According to Mr Smith business plan, he must look at the Professor Adair’s action-centred leadership. The model is where task, group and individual needs are interconnected in the context of total leadership. According to him an effective leader is a leader who is able to:

Satisfy task needs – the leader ensures that the purpose, i.e. completion of the task, is fulfilled. The leadership function includes setting objectives, planning and allocation of resources, setting standards and control to ensure achievement.

Satisfy group needs – until the task is completed the group has to be held together; the leader must maintain team spirit and build morale, be a spokesperson, motivation communicate and maintain discipline

Satisfy individual needs – each member of a group or team has individual needs and the leader should try to ascertain these needs and work towards satisfying them as far as is possible within the group’s needs.

If Mr Smith can use this leadership style in organisation, it will be beneficial to all level in his future business organisation. (P6)

The nature of groups and group behaviour within organisation

A group comprises two or more individuals who interact in the collective pursuit of a common goal. They share values and goals, are involved in regular activities together, and identify themselves as members of the group and are identified as such by others.

In the view of group development process the most accepted is that advanced by Tuckman (1965), which comprises four main stages:

Forming

Storming

Norming

Performing

Adjoining/Mourning

Forming: The group comes together and gets to initially know one other and form as a group.

Storming: A chaotic vying for leadership and trialling of group processes

Norming: Eventually agreement is reached on how the group operates (norming)

Performing: The group practices its craft and becomes effective in meeting its objectives.

Tuckman added a 5th stage 10 years later:

5. Adjourning: The process of “unforming” the group, that is, letting go of the group structure and moving on.

In 1996 Cole identified the factors that influence group behaviour in organisation. These are the following factors;

Size

Leadership and management style

Cohesiveness

Motivation of group members

Norms of groups

Group/team roles

The environment

The group task

Learning the nature group and behaviour in organisation, we should also