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Jean Inman Domain III
Terms in this set (276)
list the 5 functions of management
plan, organize, staff, direct, control/evaluate
describe objectives, policies, and procedures
objectives: predetermined goals towards which mgt directs its efforts (direction, motivation)
policies: general decision making guides/boundaries
procedures: chronological, specific sequence of activities
short vs. long vs. strategic planning
short: 1 yr or less, operational planning, usually the operating budget viewed in days, weeks, and/or months
long: focused on goals and objectives, 5 year time frame, requires a mission statement
strategic: intended future outcomes, measuring success, assessing the environment inside and outside; 10+ years
SWOT analysis; what type of planning uses SWOT?
Strengths, Weaknesses, Opportunities, Threats
List some ways to ensure emergency preparedness.
-screening personnel, have up to date contact information
-issue ID badges, evacuation routes, OSHA and HAZMAT #s easily available
-memo of understanding (MOU) with vendors
-know the name ID badge, delivery schedule of delivery people
-lock doors and windows, have surveillance cameras
-use safe food practices, only authorized personnel preparing foods
Visualize an organizational chart. The solid lines depict what? The dotted lines depict what? What 2 factors are not shown?
solid - lines of authority
dotted - advisory (staff) positions
degree of authority at each level, informal relationships between employees
Staff/specialists ___ and ___ the line, but are not involved in ____. Give example.
advise and support
day to day operations
consultant RD at LTC facility
positions that serve as both line and staff, having limited authority over a defined segment of activity 2/2 specialized knowledge
efficient or inefficient?
(ex) head of purchasing oversees purchasing for whole facility
span of control
narrow vs. wide
span of control: # of individuals or depts under 1 person's direction
narrow: few employees or departments per manager; use in new or low motivated employees
wide: several employees or departments per manager; use in seasoned or highly motivated employees
# of meals/labor hour in each setting:
school food service
acute care: 3.5
extended care: 5.0
school food service: 13-15
describe the master schedule
lists days on/off, vacation day, can develop weekly schedules based on the master schedule
describe the shift schedule
staffing patterns for a particular operation, i.e. AM or PM shift.
lists positions and hours worked, # of days worked per week, and relief assignments.
describe the production schedule
tells what to do when
time sequencing of events required to produce a meal
quantity to prepare and timing of prep
what is the difference between absolute and adjusted FTEs?
absolute: minimum number of employees needed to staff a facility
adjusted: accounts for benefit days and days off
list the standard # of labor hours per day, week, and year
approximately ___ employees are needed for total coverage of each full time position.
how to calculate # of relief workers? total # of workers needed?
positions x 0.55 = # of relief workers
positions x 1.55 = total # of workers
a relief worker can cover the "days off" of ____ full time workers per week.
work simplification procedures examine the ___ parts of the job to eliminate unnecessary aspects. It increases ___ and decreases ___.
work simplification procedure involving a scale drawing showing path of worker during a process
pathway chart or flow diagram
work simplification procedure showing movement of hands to decrease transportation and re-plan work areas
work simplification procedure studying efficiency of equipment placement, work motions, and number of movements between equipment
work simplification procedure based on observing random (intermittent) samples to determine % time working and idle
work simplification procedure that reduces motions and time required; uses short, straight routes
work simplification procedure showing steps in a process using symbols
productivity is the __ with which a service activity converts __ into __, expressed as ratios
efficiency, inputs, outputs
examples of inputs and outputs; 2 ways to increase productivity
inputs: labor, materials, money, facilities, energy
outputs: meals, patient days, consults (units of service)
increase output or decrease output
how to determine meal equivalents
(measure of __)
total amount of food sales/average cost of typical meal
formula for meals per labor hour
total number of meals produced/total number of hours worked
formula for labor turnover rate
(# of positions terminated and replaced/total number of employee positions) x 100
___ is the distribution of work to qualified people. What is the major barrier to a manager being effective at this?
reluctance to delegate (feel they can do it better themselves, don't trust staff, feel like losing control, don't plan ahead)
transmitting and receiving information to bring about a desired change
___ tells you if the correct message was received
4 potential barriers to good communication
poor listening skills!!
poor voice quality
words not mutually understood
5 types of communication channels, briefly describe each
1. downward - from dept head down to subordinates
2. upward - from subordinates up to dept head (grievances, open door policy, suggestion box)
3. horizontal - from one dept to another
4. diagonal - between functions placed diagonally (purchasing clerk to purchasing dept)
5. informal (grapevine) - meets social needs of group
describe Maslow's theory of needs
a hierarchy of needs
1. basic needs for survival: food, water, shelter, fair pay, fair schedule, good working conditions, job security
2. higher needs (motivators): social, self esteem, self actualization, praise, title, promotions, advanced training
*must meet basic needs 1st before higher needs can become motivators for employees.
__ developed the 2-factor theory of maintenance and motivation. Describe the 2 components.
maintenance (hygiene) factors: serve as satisfiers or dissatisfiers. They are basic needs that must be met for motivation to occur, such as fair pay and good work conditions. They don't actively motivate, but if they are not present, they can demotivate.
motivators: call forth energy and enthusiasm, job enrichment, i.e. recognition, responsibility, decision making, advanced training
__ developed the theory that the attitude of the manager towards employees has impact on employee performance. describe the 2 theories.
theory x - manager believes workers do not like work and avoid it if possible. negative, autocratic, total control.
theory x - manager believes workers see work as natural and enjoyable. feel that they need to provide an environment in which workers can achieve self directed goals. positive, participative.
The __ studies by Elton Mayo indicated what?
placebo effect - special attention improves performance and increases productivity
Rewards serve as motivators only under certain circumstances is the ___ theory by __ and __. list 2 factors that influence rewards as motivators.
Beer and Vroom - expectancy theory
employee must recognize that good performance leads to results
employee must view results as attractive
*different team members have different motivators and rewards.
Evans and House developed the __-___ theory, similar to the expectancy theory. What does this theory state?
leader's effect on employees' motivation.
employees must expect behavior to lead to goal, and employees must see goal as worthwhile/desirable
List 5 styles of leadership from most controlling to least, and briefly describe each.
1. autocratic - total control, total obedience
2. consultative - ask for input but make final decision alone
3. bureaucratic - everything by the book
4. participative - asks for input, lets employees be involved in decision making
5. free reign/laissez faire - very little control
within the participative style of management, what is quality circle? what is democratic leadership?
quality circle: small group of employees that meet regularly to identify and solve problems
democratic leadership: accepts group decisions
__, ___, and ___ developed the leadership grid... be able to draw and identify the 5 areas in a leadership grid.
Blake, Mouton, and McCanse
see paper flashcard
promoting someone to level of incompetence
management of conflict proposed by ___
4 systems of organizational leadership (job or employee centered?)
exploitative and autocratic (job)
benevolent and autocratic (job)
participative (employee) -- best
traditional or __ mgt theory emphasizes a formal structure that organizes and administers work. __ is the main responsibility of mgt. this theory focuses on tasks, ___, and ___. it endorses the scalar principle, or the idea that ___. it also supports __ of ___, or the idea that each employee is responsible to only one superior. some criticisms include...
structure and authority
authority and responsibility flow in a direct, vertical line from high to low
unity of command
too mechanistic, too impersonal, does not see group interactions, does not see decision making process
the behavioral (__ ___) theory of mgt uses behavior sciences and indicates that workers exist in __ groups. it emphasizes employee __ in decision making. theory z by __ suggests that ___. everyone who is affected by a decision should be involved in making the decision, a term called ___ ___-____.
the value of a company is in the people
consensus decision making
the systems approach to mgt recognizes that a system is composed of ___ parts called ___.
complete system within itself and also part of a larger system
production is a subsystem of food service, food service is a subsystem of hospital
3 major components of a system
major point/purpose of system approach
input, transformation, output
changing one aspect of a system changes all other aspects of a system; consider all other parts when making changes
some characteristics of an open system:
1. each part affects performance of other parts
2. parts are blended together in unified whole
3. units working together have greater impact than each unit independently
4. steady state, continuous response and adaptation
5. varying alternatives to input and transformation yield same results
6. allows systems to be affected by changing environment
7. where 2 systems or subsystems come into contact
4. dynamic equilibrium
6. permeability of boundaries
scientific management by ___ is __-centered. it focuses on the __ aspects of a job to increase pace and ___.
MBO stands for __ ___ ___ and was created by Drucker.
It is a type of __ mgt that provides control from within and allows mgt to create goals __ employees. It is a type of __ leadership.
management by objectives
reciprocal approaches focuses on ___ rather than qualities of the leaders themselves.
2 types and brief descriptions.
interactions between leaders and employees
transactional - clarifying roles, providing information, autocratic, uses rewards and punishments
transformational - inspires followers to be motivated to work towards organizational goals
mgt theory that says managers serve as catalysts for change
2 conditions necessary to make change
organizational change theory
manager must see need for change (proactive)
manager must put forth a vision for employees to see future with change
mgt style that responds to external environment, recognizing that different leadership techniques work in different situations
list 3 sub-models
contingency and situational leadership
-leadership effectiveness model
contingency approach by ___
1. type of leader appropriate in moderately favorable situations
2. type of leader appropriate in high un/favorable situations
1. relationship oriented
2. task oriented
Leadership continuum by __ and ____
describe the continuum from 1-6, where 1 is the most control and 6 is the least control.
Tannebaum and Schmidt
asks for input on decision
collaborates on decision
leadership effectiveness model by __, __, and ___ compares what 2 factors? list 4 leadership styles and appropriate applications.
hersey, johnson, and blanchard.
employee readiness vs. leadership style.
low readiness: tell decision
low to moderate readiness: sell decision
moderate to high readiness: participate
high readiness: delegate
4 steps of controlling/evaluating performance
1. set performance standards
2. measure performance
3. compare performance with standards
4. take corrective action as needed
3 types of skills needed by managers
technical, human, conceptual
ability to work effectively as a group member
this skill is important at what level of managing?
important at all levels, but imperative in lower mgt
understanding or a proficiency in a specific kind of activity
this skill is important at what level of managing?
ability to see the organization as a whole
this skill is important at what level of managing?
3 major roles of a manager
informational, decision making/problem solving, and conflict resolution
(informational) constantly searching for information to become more effective
(informational) transmitting information to subordinates
(informational) transmitting information to people inside and outside organization
6 steps of decision making/problem solving
1. recognize and assess the problem
2. determine possible solutions
3. gather data
4. choose best solution
5. take action
6. follow up the action
problem solving technique using silent generation of ideas, round robin sharing, and ranking of ideas (also include person's name)
nominal group technique by Delbecq
decision making/problem solving technique using written interviews to gather consensus from experts, typically do not meet in person
problem solving technique that answers the question, "What are the causes of the results you are seeking?" draw a simple example
cause and effect (fish) diagram
causes --> event --> effects/results
series of connected arrows
problem solving technique that focuses on the "vital few"
explain the 80-20 rule
80% of a given outcome is caused by 20% of the input
suggests that most effects have relatively few causes
What is the purpose of the queue-queueing theory?
analyzes flow of customers as they wait in a line; think of roller coaster lines that snake back and forth rather than a straight line.
List the 3 major conflict resolution methods.
1. dominance and suppression
3. integrated problem solving
repressing conflict rather than settling it, resulting in a win-lose situation
dominance and suppression conflict resolution
When a manager does not allow any argument to be made, using statements like "I'm the boss, do it my way"
a more diplomatic approach in which a manager minimizes the extent of the disagreement and tries to talk one side into giving in
when a manager avoids taking a position by pretending a conflict does not exist or postponing action repeatedly
holding a vote among members, can be effective if members consider the procedure to be fair
when managers try to resolve conflict by finding a middle ground
describe the results of a compromise and why it may be a weak method
both parties achieve some of their objectives and sacrifice others. it may be weak because the parties find a solution that they can both live with, but it may not be the best solution for the organization.
describe integrative problem solving
when conflict is converted into a joint problem solving situation and parties openly try to find a solution they can all accept
action that will cause a change in behavior or attitude of another person
ability to exert influence
list the 5 types of power
reward, coercive, position, expert, referent
ability to reward another for carrying out an order, giving incentives or praise
ability to punish another for not carrying out requirements
effective or ineffective?
coercive power; ineffective in motivating and may cause resistance
subordinate acknowledges that the influencer has the right to exert influence due to job title/postion
position (legitimate) power
belief that influencer has some relevant expertise that the subordinate does not; credibility
based on desire to identify with or imitate the influencer; how well you are liked; personality and charisma
Attributes of a successful manager include:
1. Have a bias for ____
2. Be close to your ____ and learn from them
3. Exercise autonomy and be a __ ____
4. Recognize productivity come from ___ and treat with __ and ___
5. Always be hands on and __-driven
3. risk taker
4. people; respect; dignity
What are the SOP and SOPP? What is the difference between the 2? Are they regulations?
SOP: Standards of Practice in Nutrition Care. SOP is general terms of competent level of care in the NCP; used in direct patient care.
SOPP: Standards of Professional Performance. SOPP describes a competent level of behavior in the professional role.
No, they are not regulations, but may help determine competency.
List the 2 state run employment laws and regulations
1. unemployment compensation
2. workman's compensation
insurance against loss of income
list 3 qualities employee must meet to quality for unemployment insurance
1. employed for a specific amount of time
2. able and willing to work
3. unemployed through no fault of their own
insurance covering employers' liability for the costs of any accident incurred by an employee in connection with their job
National Labor Relations Act (_____ Act)
3 outcomes of this employment regulation
pro-labor or pro-management?
-gave employees the right to unionize
-gave union right to act as bargaining agent
-created National Labor Relations Board
Taft Hartley Labor Act (Labor ___ ____ Act)
Amended the Wagner Act for what 3 outcomes?
Pro labor or pro management?
Labor Management Relations Act
-ended closed shop and limited union shop to 1 year
-balanced power of labor and management
-specified unfair labor practices
Purpose of the Labor Management Reporting and Disclosure Act (____-_____ Act)
bill of rights for union workers and regulates internal union affairs
2 employment laws overseen by the EEOC
Which addresses sexual harassment?
Which prohibits discrimination based on religion, political affiliation, sex?
Civil Rights Act and Equal Employment Opportunity Act
Which law prevents discrimination based on age?
Age Discrimination in Employment Act
The Minimum Wage or Wage Hour Law is formally know as the __ ___ ___ Act. What are its major components (5)?
Fair Labor Standards Act
exemptions from minimum wage
tolerated donated time
child labor laws
What organization sets minimum wage?
Bureau of Labor Standards
How does an employer compensate for overtime?
pay time and a half
What types of employees are exempt from minimum wage?
executives, administrative, professional, and outside salespersons
What is tolerated donated time? Does an employee have to be paid for it?
when an employee works more than their designated time and the employer
this additional time, yes they have to be paid for it.
if you don't want to pay this time, don't tolerate it.
FMLA stands for what? It allows for up to ___ workweeks of (paid/unpaid), job-protected leave for what types of situations?
Family and Medical Leave Act
birth or adoption of child, caring for immediate famly member, medical leave for serious illness
ADA stands for what? Requires employers to provide "___ accommodations," which may include....
Americans with Disabilities Act
flashing alarm lights, wide hallways and doors, lower shelving and phones
HIPAA stands for what? And guarantees what when employees get new insurance?
Health Insurance Portability and Accountability Act
coverage for preexisiting conditions transfers when insurance changes
study of all aspects of a job, done by an employee and the supervisor to collect information about the job
lists the required skills and responsibilities for a job; helps match applicants to a job
includes the duties involved, condition of the job, and qualifications for the job (does not include instructions on how to do job)
hour by hour description of training, tasks, and time
description of what to do and how to do it (no time limits)
provides more similar tasks to alleviate boredom
upgrades the job by adding motivating factors (increases number of tasks and level of control)
part of the employment process that locates the most qualified individual for the job
internal vs. external recruiting
hiring from within (promoting, transferring, rehiring) vs. hiring from outside (ads, agencies, unions)
List some of the qualities that the Fair Employment Practice Law makes it illegal to ask a candidate about.
race, religion, sex, age, marital status
part of employment process involving applications, screening, and interviews
describe structured (___) vs. unstructured (___) interviews
structured (directed): checklist or preplanned strategy that provides the same info on all candidates; minimizes bias
unstructured (non-directed): open ended questions, conversational, participation from candidate
changing to a job with higher pay, status, and performance requirements
changing to a job with basically the same pay status, and performance requirements
reason for this type of change?
allows employees to go to a position they prefer or where their skills are needed most
a voluntary or involuntary termination of an employee
earnings/compensation of managerial and professional personnel
earnings/compensation of hourly workers
protected by what law?
Fair Labor Standards Act
benefits required by law to ensure income in the event of unemployment, injury, or death
benefits or pay for time not worked
life and health insurance
Unionization is a means of ____ bargaining.
deduction of union due from pay
when an employee is required to join a union after being hired
when an employee has the option to join a union or not
when an employee must be a member of a union before they can be hired
__ and ___ shops are illegal in public employment (govt positions).
union and closed shops (being required to be in a union)
when all workers must pay agency fee, but are not required to join unions
what do right to work laws do?
makes it illegal to fire an employee who refuses to join a union (even if contract has a union shop clause)
Laws exist to protect against both unfair ___ and ___ practices.
union and employer
an employee who represents fellow employees as the union representative (no $ compensation)
union or shop steward
term for when one person represents a group of people to bargain with the employer
3 steps of collective bargaining
bargaining, mediation, arbitration
meeting between union steward and management
involvement of a neutral person to help settle differences
decision binding or not binding?
a hearing to dissolve a dispute
decision binding or not binding?
court order to prevent someone from doing something
How are disciplinary actions/grievances handled in non-unionized companies vs. unionized?
Non: settled informally between employer and employee
Union: written, formal procedure for filing a grievance is outlined in employment contract
4 steps of disciplinary action (which are temporary vs. permanent on record?)
1. oral warning (temp)
2. written warning (permanent)
3. suspension without pay (permanent)
4. dismissal (termination)
What is the key element for using discipline positively in practice?
consistency - shows employee that any employee would get same discipline for same offense
Always compare the employee's performance with __ ___, never another ___ ____. Any disciplinary action should be given in __. To most effectively reprimand an employee, ....
show them how to improve performance
What is the best use of an employee performance evaluation?
to give employee feedback on performance so they can make improvements
What are 4 types of performance assessments?
merit rating, checklist, critical incident, self assessment
list 3 obstacles to effective appraisals
halo effect, leniency of error, error of central tendency
judging based on most noticeable positive trait
rating higher than employee deserves
leniency of error
rating everyone as average
error of central tendency
What is the #1 key to retaining employees? List a few ways this can be accomplished.
develop good relationship between management and employees
written mission statement, integrity, trust, good training and rewards for performance, having fun
The budget gives the manager a basis for ___ and an estimate of future ___. The budget must be ___ and is usually reviewed on a ___ basis.
control; needs; flexible; monthly
What are the 3 types of budgets?
operating, cash, capital
forecast of revenues, expenses, and profits for a specific period of time
How to develop operating budget (2 steps)
1. project income/revenue
2. budget expenses based on projected revenue
projects revenue and expenses, showing inflow and output of cash
purpose of cash budget is...
to determine if funds will be available when needed
describe the capital budget
accounts for expenditures that are long lasting, i.e. facilities, equipment, improvements/repairs, expansions, replacements
*expensive but gives returns > 1 year
list the 5 ways to establish line items in a budget
traditional, zero-based, fixed, flexible, and performance
describe the traditional (___ or ___) budget
incremental or baseline
take the previous year's budget and add an inflation factor to obtain the next year's budget
uses existing budget as a base
describe the zero based budget
starts at $0 and each expense must be justified
does not use existing budget as a base
describe the fixed vs. flexible budgets, and explain when each would be appropriate.
fixed: prepared at one level of revenue when no major changes to income are expected (no changes in # of patients hospital can accept)
flexible: prepared at various levels of revenue when changes to income are expected (hospital is opening or closing a floor)
budget that details what it costs to perform an activity
describe indirect (___) costs and give examples
not affected by sales volume; these costs remain the same regardless of # customers served.
ex) rent, insurance, taxes, depreciation
describe direct (___) costs and give examples
affected directly by sales volumes; these costs change directly when changes in revenue. typically these costs are directly involved with the customer.
ex) china, silverware, uniforms, laundry, repairs
describe semi-variable costs and give examples.
have both a fixed and variable component. there will be fixed/minimum cost associated with it, and then additional cost varies directly with sales volume.
ex) labor, maintenance, utilities
costs already incurred that cannot be recouped by a new decision or alternative
amount of increase or decrease in cost when you compare alternative choices
3 types of costs in a foodservice setting
food cost, labor costs, operating costs
which type of cost is most easily controlled?
ways to reduce food costs:
1. __ planning (most important)
2. type of ___, i.e. selective
3. purchasing in ___
4. ___ control (compare order to invoice)
5. storage and ___ control
6. ___ portions
How to calculate edible portion (EP) cost per pound
as purchased (AP) cost / EP (wt in #)
labor costs are (less/more) controllable than food costs.
operating costs include...
utilities, laundry, cleaning
2 types of accounting methods (___ and ___ basis)
cash basis and accrual basis
accounting method that recognizes revenues when earned and expenses when incurred, regardless of when cash is actually received or dispersed
accounting method that recognizes a transaction at the time the cash is taken in or released
3 types of financial statements
general ledger, profit-loss statement, and balance sheet
financial statement that shows operating results over a period of time; displays the revenue, expenses, and profit/breakeven/loss
profit-loss statement (aka revenue-expense statement or income statement)
financial statement that records and reports transactions categorized by account numbers
a summary of all expenses and revenues for the month by category
financial statement that shows financial condition as of a particular date, listing assets and liabilities
goods and products owned
accounts receivable vs. accounts payable
receivable: money owed to you
payable: money owed to others
amounts owed to others
assets = ___ + ___
liabilities + capital (equity)
the most common way of analyzing an organization's financial position is via financial ___, which use data from financial statements.
assesses ability to meet short term debt
assesses ability to meet long term debt
net worth ratio
shows current effectiveness of inventory control; is the org efficiently using the assets to produce income?
specific turnover ratio that measures how often an inventory is consumed and replenished
inventory turnover rate
formula for inventory turnover rate
total food cost or cost of sales/average inventory cost
what does high inventory vs. low inventory turnover rate indicate?
high - limited inventory being kept
low - large amounts of money tied up in inventory
desirable monthly inventory turnover rate
2-4x per month
tells what percent of the income was spent on the food sold
daily food cost report or food cost percentage
formula for daily food cost report
(daily food cost/daily income) x 100
general formula for food cost per meal
food cost per month/# meals per month
what 2 factors do you need to determine total food cost?
$ spent on food purchase AND $ used in foods removed from inventory
Food cost per meal example: Determine the food cost per meal using the following info. Inventory on June 1: $36,250. Inventory on July 1: $34,375. Foods purchased in June: $52,390. Meals served in June: 134,000
answer: $0.40 per meal (see domain iii pg 22 for calculation if needed)
formula for meals per labor hour
total # of meals produced/total # of labor hrs worked
most commonly used assessment of overall financial efficiency, reflects the portion of sales volume remaining
paying all expenses
formula for profit margin
net profit or profit after all expenses paid/total sales dollars or revenue
*be able to use data to calculate profit margin
cost of sales
cost of raw foods and beverages sold
revenue after cost of sales is deducted
revenue after all expenses are deducted
the length of time it will take for the cash inflows from a project to equal the initial cash payment, or how much time it will take for an investment to pay for itself
how to calculate payback period
1. add up costs of the service
2. add up costs saved by using the service
3. divide cost of service/cost saved
payback period example:
you have invested in new hardware and software the will reduce the labor hrs needed to complete a task. what is the payback period if..
hardware cost $3500, software cost $2400, staff instruction cost $1000, labor hours saved 6 per week at $20/hr.
cost of service = $6900
money saved = $120 per week
6900/120 = 57.5 weeks for payback period
budget projections will include the current year's sales, cost by __ of income, and projected ___ to budget. Can you calculate the budget projection given this information?
percent (i.e. labor costs are 35% of income)
1. determine the actual costs for the year (multiply sales x %)
2. add the increase in cost to current cost
3. total up all costs
the process of investigating all aspects of a service to discover and eliminate unnecessary costs without interfering with the effectiveness of the service
value analysis ___ costs, while ___ added increases value to the customer
process of identifying a need, assisting potential clients in recognizing that need, and filling the need
the exchange of ownership from producer, processor, distributor, supplier, to customer
what is the very first step of marketing?
identify a need that is not being filled, or the market niche
where services will be offered
dividing the market into groups of people with similar needs
age, gender, race, education, income
examples of demographic variables
urban, suburban, climate, resources, cultural values
examples of geographic variables
social class, lifestyle, motive
examples of psychographic variables
special occasions, loyalty
examples of behavioristic variables
specific need you are trying to fill
how you would like the marketplace to view your product
group of people with similar wants or needs with the potential of purchasing your product
quantifiable, achievable goals
the route you chose to reach goals
the group of items you will offer
4 components of marketing mix
product, place, price, promotion
a product unique to your business
short-term activity to increase or renew awareness of your product
long term, overall view of marketing in the organization in which resources are allocated and objectives set
use of marketing principles to advance a cause, idea, or behavior, i.e. "Got Milk?" campaign
filling customer's needs or desires, i.e. changing a menu
point at which sales revenue will exactly cover fixed and variable costs
breakeven point (BE)
can examine BE in __ of units sold or in sales ___
BE formula for number of units sold
BE = fixed costs/(selling price - variable costs)
example BE for number of units sold:
determine the BE point when fixed costs are $50,000 ; selling price is $5.00 ; and variable cost is $3.25
BE = 50,000 / (5-3.25)
BE = 50,000 / 1.75
BE = 28,572 units must be sold to break even
formula for BE in sales volume
BE = [fixed costs/1-(variable costs/sales)]
example for BE in sales volume:
determine the BE when fixed costs = $25,000; variable costs = $60,000; and sales = $100,000
BE = [25,000/1-(60,000/100,000)]
BE = [25,000/1-0.6]
BE = 25,000/0.4
BE = $62,500 in sales to break even
recognize a breakeven graph and the breakeven point. identify points on the graph where company is losing vs. making money.
traditional or markup method for determining selling price
factor pricing method
the difference between the cost and the selling price
mark up factor
formula for markup factor
100/food cost percentage
formula for selling price
markup factor x raw food price
"hidden cost" of __% may be added to food to cover unproductive costs, such as ...
losses during prep, cooking, serving, and unavoidable waste
factor pricing example: if the food cost percentage is 30, and the raw food cost of the item is $0.18, what is the selling price using the factor method?
B) what is the selling price when also considering hidden costs?
mark up factor = 100/food cost percentage
mark up factor = 100/30
mark up factor = 3.33
selling price = mark up factor x raw food cost
selling price = 3.33 x $0.18
selling price = $0.60 per unit
B) add the 10% hidden cost to the
raw food cost
. so, 3.33 x (0.18 + 0.018) = $0.65 per unit
method of determining selling price that considers raw food cost and labor cost involved in making the item
prime cost method (unlikely will need to calculate)
method of determining selling price that is done for a short time, i.e. a sale or special pricing to increase sales during a slow period
method of determining selling price in which some items are priced lower to draw people in the hope that they will purchase other items at normal price
method of determining selling price in which a predetermined percentage of profit is factored into price to guarantee a profit with every sale
cost of profit pricing
methods of maintaining public relations in the community: have good __ relations, create and place __ information to attract attention, and build and retain relationships with ___ and ___ officials.
press, newsworthy, legislators and government
two major types of cost benefit studies
cost-benefit analysis and cost-effectiveness analysis
describe the difference between cost-benefit analysis and cost-effectiveness analysis.
cost-benefit answers the question, should we do this? it is worthwhile to do this? do the benefits outweigh the costs? measures in a quantifiable way.
cost-effectiveness assumes that the benefits are worthwhile, and answers the question, what is the best way to do this? compares costs of alternative strategies.
2 types of cost-benefit analyses, and briefly describe each
direct: measures direct benefits of an intervention, value is determined by measuring the cost of treatment needed when intervention is NOT in place (how much more does it cost to not implement this change?)
indirect: measures benefits by addressing saving MD time or resources, such as admissions or LOS
cost-effectiveness analysis utilizes __ research, which is used to assess the intervention vs. various other alternatives in terms of cost and resources used.
formal study that retrospectively monitors performance
answers the question...
did performance meet standards?
continuous improvement of organizational processes, resulting in high quality products and services
TQM - Total Quality Mgt
three C elements of TQM
customer (true judge of quality)
culture (environment that makes quality a priority)
counting (defining and measuring what high quality means)
PDSA/PDCA cycle (always link with TQM)
Plan, Do, Study/Check, Act
plan to improve/make changes
do implement the changes
check or study the results
act to maintain and continue
find a process to improve
organize a team
clarify current knowledge
understand causes of process variation
select best process improvement
an integral part of TQM, __ ___ ___ emphasizes the organization and systems rather than individuals. it is the ideal that systems and performance can ___ improve.
continuous quality improvement
improvement processes use ___, or professionally developed statements that describe desirable healthcare processes or outcomes. list the 3 types and an example of each.
structure - policies, budget, personnel factors
process - procedures, sequence of activities
outcome - anthropometrics, biochemical, survey results
RUMBA acronym of characteristics of criteria
relevant, understandable, measurable, behavioral, achievable
measurement tools that monitor and evaluate important aspects of patient care and mgt.
do/do not serve as direct measures of quality
__ for evaluation is an indicator expressed in %, level at which a stimulus is strong enough to signal a need to respond
__-___ indicator ranges 1-99% and indicates what happens in best care
give an example
rate-based or comparative rate
95% of high risk patients will be assessed within 24 hours of admission
__ ___ indicator that is either 0% or 100%, serious, undesirable but avoidable event
give an example
0% food poisoning, floor around dishwasher is dry 100% of time
the degree to which an exchange helps to achieve objectives ("doing the right thing")
the minimization of resources you must spend to achieve desired level of exchange ("doing things right")
__ __ is a data driven approach for improving quality by removing defects and their causes.
achieving six sigma means there is how much variation in a process?
very little (6 standard deviations from the mean)
"good change" that suggests making continuous and small incremental improvements in process on a daily basis, rather than revolutionary changes. focuses on teamwork and discipline.
using less human effort, less space, less capital and less time to make products exactly as the customer wants with few defects
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