M8 Managing the Cost of Labor

Question 1

is the term used to refer to the salaries and wages paid to employees.

Answer 1

PAYROLL

Question 2

includes salaries and wages, but it consists of other labor-related costs as well.

Answer 2

LABOR EXPENSE

Question 3

Labor expense includes:

Answer 3

❖ FICA (Social Security) Taxes
❖ Workers’ compensation
❖ Group life insurance
❖ Employee meals costs
❖ Employee health insurance

Question 4

receives the same income per week or month regardless of the number of hours worked

Answer 4

SALARIED EMPLOYEE

Question 5

used to designate the least number of employees and payroll dollars needed to operate a facility or department within a facility.

Answer 5

Minimum Staff

Question 6

refers to the amount an operation pays in salaries.

Answer 6

FIXED PAYROLL

Question 7

consists primarily of those dollars
paid to hourly employees.
In most cases the number of hourly employees needed will “vary” with increases or decreases in sales volume.

Answer 7

VARIABLE PAYROLL

Question 8

is the amount of work performed by an employee in a fixed period of time.

Answer 8

PRODUCTIVITY

Question 9

10 Key Factors Affecting Employee Productivity

Answer 9

Employee Selection
Training
Supervision
Scheduling
Breaks

Morale
Menu
Convenience vs. Scratch Preparation
Equipment/Tools
Service Level Desired

Question 10

is vital in developing a highly productive workforce

Answer 10

EMPLOYEE SELECTION

Question 11

is a listing of the tasks that must
be accomplished by the employee hired to fill a specific position in an operation.

Answer 11

JOB DESCRIPTION

Question 12

is a listing of the personal characteristics needed to perform the tasks contained in a particular job description.

Answer 12

JOB SPECIFICATIONS

Question 13

Managers selecting new employees have several important tools available to them.
These include:

Answer 13

❖ Applications
❖ Interviews
❖ Pre-employment testing
❖ Background/reference checks

Question 14

can include activities such as typing tests and computer application tests.

Answer 14

SKILLS TEST

Question 15

can include personality tests, tests designed to predict performance, or tests of mental ability.

Answer 15

PSYCHOLOGICAL TESTING

Question 16

is used to determine if an applicant uses drugs.

Answer 16

Pre-employment drug testing

Question 17

failure to conduct background checks on some positions can subject the employer to potential litigation under the doctrine of

Answer 17

NEGLIGENT HIRING

Question 18

will improve job satisfaction and
instill in employees a sense of well-being and accomplishment. It will also reduce confusion, product waste, and loss of guests.

Answer 18

TRAINING

Question 19

is the training undertaken to ensure an
employee has the skills to meet productivity goals.

Answer 19

TASK TRAINING

Question 20

means assisting employees in improving productivity.

Answer 20

SUPERVISION

Question 21

on the floor, in other words,

Answer 21

in the dining area, during meal periods.

Question 22

is a technique used to match individual
employee work shifts with peaks and valleys of customer demand

Answer 22

SPLIT-SHIFT

Question 23

Employees have both a physical and a mental need for breaks from their work.

Answer 23

BREAKS

Question 24

Management can create a fun and motivating environment for employees to work in

Answer 24

MORALE

Question 25

is high in some sections of the hospitality industry

Answer 25

Employee turnover

Question 26

is the term used to describe employees who have either quit, been terminated, or in some other manner have “separated” themselves from the operation.

Answer 26

EMPLOYEE SEPARATION

Question 27

is one in which the employee made the decision to leave the organization.

Answer 27

VOLUNTARY SEPARATION

Question 28

is one in which management has caused the employee to separate from the organization.

Answer 28

INVOLUNTARY SEPARATION

Question 29

the more variety of items a kitchen is asked to produce, the less efficient that kitchen will be.

Answer 29

MENU

Question 30

The decision of whether to “make” or “buy” involves two major factors: 1. Product quality 2. Product cost.

Answer 30

Convenience vs. Scratch Preparation

Question 31

should be properly maintained and updated as needed if employees are to be held accountable for productivity standards or gains.

Answer 31

EQUIPMENTS

Question 32

When management varies service levels, it varies employee productivity ratios.

Answer 32

SERVICE LEVELS

Question 33

The most perishable commodity a foodservice operator buys is the labor hour. When not productively used, it disappears forever.

Answer 33

SALES PER LABOR HOUR

Question 34

Sales per labor hour neglects to consider the amount paid to employees per hour to generate the sales, so some managers prefer utilize a labor pesos per guest served ratio.

Answer 34

Labor Pesos per Guest Served

Question 35

helps managers evaluate how much guests buy and how quickly they are served. It does so primarily by assessing the duration of guests’ dining experiences. Duration is simply the length of time customers sit at a table.

Answer 35

Revenue Per Available Seat Hour (RevPASH)

Question 36

is defined as management’s view of what constitutes an appropriate productivity ratio in a specific foodservice operation.

Answer 36

PRODUCTIVITY STANDARD

Question 37

system whereby employees who are off duty are assigned to on-call status.

Answer 37

ON-CALL

Question 38

system employees who are off duty are required to call in to management on a daily basis to see if they are needed.

Answer 38

CALL-IN

Question 39

is the labor cost needed to achieve established productivity standards; it is not always the same as “budgeted cost.

Answer 39

STANDARD COST

Question 40

One way to increase productivity and reduce labor- related expense is through ________

Answer 40

employee empowerment