Business Process Management
Table of Contents
- Food and Beverage Service Organization. 3
- Process Design. 5
- Importance of Productivity. 6
- Capacity Problems. 8
- Impact of Job Design on motivation and productivity of staff 10
5.1. Impact of Job Design on Motivation of Staff 10
5.1.4. Task Characteristic Autonomy. 11
5.2. Job Design and Impact on Job Productivity. 12
Business Process Management
1. Introduction
Business process management is a form of looking at a business and controlling the operations that are available at the company. It is considered a successful process if it is well applied when cases issues arise so as to ensure the process are successful as this will lead to improved and cheap organisation. These processes are done constantly and comprise of an on-going assessment of the processes and are composed of steps that will elevate the general flow of the operations.
This paper will focus on the service industry that is based in New Zealand a good example being Revelry bar and eatery which is a popular and successful company. It has a huge variety of shared meals, tapas, platters and fast lunch choices for on time midday snack. Music is there, inside and outside eating places. In the beverage sector there are global wine lists of classic an original cocktails among others. The industry is a growing one in the country and has several features as shall be seen in the paper (Menumania, 2012). The paper goes on to look at as to how Revelry bar and eatery has develop as it has, taking into consideration a process design that is put in place leading to production. Additionally, the issues that are connected to it are assessed in design and capacity and how they impact productivity. Lastly the paper looks at the principles of process management for an effective company to be met.
2. Food and Beverage Service Organization
The organization in focus is Revelry bar and eatery that is located in New Zealand and is under the food and beverage service industry. This organization is attributed to the making and serving people with food and drinks. It is comprised of restaurants, hotels, clubs, health tools, and airlines among others. This organization is among the biggest in New Zealand in the number of staff; chefs, bartenders, cashiers, and managers. In New Zealand, taking to fact that there may not be any exact numbers on the size, growth, and importance of the food and beverage organization, it is quite clear that it is necessary to the country in several areas. The organization has no specific structure and a number of descriptions are used.
Revelry bar and eateries acquired yearly sales of about $20 million in 2005, and growth of $354 million in 2004. The driving factors for it are positive economic setting and benefits in the clients’ real disposable incomes and industry sales that are predicted to increase in the years to come (Menumania, 2012).
The food and beverage industry is relevant to other industries in the country; a good example is the tourism industry. In the year 1997 and 2002, the departments in the industry that recorded the highest gains were note in the hospitality sector; wherein the rooms, foods, and drinks services increased by 42% (Statistics New Zealand, 2003). Similarly in the consecutive years, spending went on to increase. Taking to fact the function that tourism has in regard to a country’s economy, it is vital to get an understanding of the bigger effect that productivity has in this industry. The tourism plan notes that quality is necessary to company’s gains and is keen on the desire to create business ability for firms in management expertise.
The food and service organization contrasts majorly in regard to revenue models. Accommodation may depend on revenue acquired from it to support the restaurant if need be. On the other hand, restaurants that are based with no accommodation may rely on beverage so as to support its food services. Areas that have limited services may however suffer as they may lack operating costs. According to the Restaurant Association of New Zealand (2006), there are several operators in the categories that acquire a limited return on the benefits, mostly coming from short periods for the forms based.
At the end of 2005, Revelry bar and eatery company employed about 80,000 staff not including the ones working in hotels. The staffs in the country are averagely 16-24 years working for 28 hours in a week while the male are 30-37 years who are advanced in their skills.
The food and beverage organization as stated above is a service organization that is attributed to the processes of production and consumption, which in most cases, interchange and leads to issues. The clients are vital and known players in the organization and hence have a vital impact on productivity.
Quality is quite keen and is connected to measurable results in the allocation of service, making it hard to do away with any impact on productivity. The immateriality of services and the relevance of the psychological results with quality, show major issues in measuring and getting to be aware of the service industry productivity and the food and beverage organization.
3. Process Design
Mass customization is the process design that is applied in the food and beverage industry. Mass customization is a delivery process that makes it possible for mass market of products and services whereby they are individualized so as to meet the needs of precise clients at the best cost possible. It is through this process that clients have the opportunity to come up with their special end product at the most preferable time they need. With the rise of this design, there are two aspects that are related to this; the first one is the demand for customization where the clients desire preferences and are not contended with mass goods. The other one is emerging insights and concepts in production and logistic issues that bring about broader product differentiation at no charges or cheaper prices.
At Kraft’s food sector, the fast food areas where one can access fries and burger or chicken are quite common. These foods are of varied themes as time passes by. While in the beverage industry, there are a number of diet soft drinks as well as a number of mineral water drinks that of varied tastes.
Mass customization and the food and beverage sector are based on the aspect of maximizing differentiation and efficiency. In differentiation, it is brought about the value of a good or service as noted by the client. If the client aims to meet the needs and appeal to clients so as to purchase or use their services in a restaurant, they are supposed to be aware of what they want or if they will go to other companies.
The first element is the value of the service which is quite relative to an individual. The value of any service or product is not rated on prices but on the needs of the clients and this is where most clients are keen for gains. It is based on knowing the correct value for varied clients and connecting value to it.
Another aspect worth considering is the presence of what they need. Clients are known to be irrational and decide what they want when the time comes. The organizations like restaurants have to offer the clients what they want at the correct time. They however have to be appealed to so as to buy a product or go for a service.
The other thing worth considering is efficiency, as in doing away with difficulties. Such may involve added costs in the production, selling like stocks, delivery, and technology charges. These can be easy in sections of a company administration and management as well as in the production. There is however times that the demands for clients are not known and hence in the rise, it leads to added complexities. This is where mass customization connects; wherein it helps in the reduction of difficulties. This may be done through strategizing of assortment. The firms that are noted to have several variations sell small sizes of all varieties and this brings about difficulties in the charges. If they are done away with it, it would lead to minimal difficulties on charges. However, in the heterogeneous market, solution lies with the declining charges and constant batch size of every good.
Mass customization is hence a reality in the food and beverage industry hence allocating great amount of pressure on production so as to make sure they are able to handle high level of difficulties. We are currently able to see customized greeting cards in restaurants and this goes on to improve with time and in other areas.
4. Importance of Productivity
A good number of researches are acquired from service and manufacturing companies, though the service organizations need a method that takes into consideration their special attributes. In the allocation of services, the procedures of production and consumption are in most cases connecting or are able to intersect, leading to the creation of precise set of issues. The clients are active participants in a number of service issues and hence are relevant in impacting productivity. As has been stated above, quality is closely connected to the allocation of service, making it hard to do away with the impact that productivity has in the service industry.
The measuring of productivity in the service companies is very vital. The process can be insufficient and without shape hence bringing about unhelpful association in the companies. The food and beverage service organizations in most cases are keen in bringing down the price that is connected to labour costs while at the same time keeping the sales constant. Labour generally is composed of a third of the hospitality charges while food and beverage takes up the other third. When a company is keen on bringing down the charges of labour as a fraction of sales, it has the ability to bring about short period productivity goals though they can interfere with long term operability because of doing away with the service models. Services that are below standard have a great impact on the client satisfaction that on the other hand impacts sales and productivity hence leading to a trend of below par productivity.
A good number of studies state that food and beverage service companies are keen on the quality of service that they provide. However, according to Parasuraman (2002), organizations issue service inputs that directly have a great impact on productivity from the client’s point of view. This point of focus by the client is supported by Bates et al. (2003) that acquired the production of improved service while at the same time labour sensitive, creating better gains for every staff. They came to a conclusion that better service providers have a much better return on equity as well as assets when compared to their rivals in service levels that are below par.
The measurement of productivity in foods and beverage, also known as hospitality is identified to be quite hard and takes place in multi factor model. Studies done by David et al. (1996) acquired that there are varied measurements of productivity for the hotel chain. A good number of food service contract organizations apply sales for labour in an hour so as to show productivity, though they do not measure the price of food sales. The increased application of part-time and seasonal work force by the food and beverage service organization applies an extra form of difficulty to measure productivity.
This is what takes place in New Zealand and is closely connected to the global instance. It is vivid that a good number of managers and staff are not aware of productivity. Studies have shown that factors connected to productivity are in a person’s mindset though they have not been applied as it should be.
Productivity is connected to the clients and the response that is acquired. It is with this that communication is vital. On the other hand, the measurement of client satisfaction varies from complicated response to simple observation of the customer’s tendencies and reaction. Productivity is similarly connected to staff going above the need of the staff.
5. Capacity Problems
The Kraft’s food company is among the most successful industries in New Zealand has led to the creation of employment as well as development of buildings as points for hotels, restaurants, and bars. With the continued rise of this industry, it has to come to a point that it has to consider capacity utilization as a way of controlling the spiralling growth of customers. The method has increased with time and it is now at 45% averagely.
The margins can be slim in the speedy food and beverage industry. On the other hand, competition for shelf space has been rigid especially in the fast growing tourism industry in New Zealand. The brands that aim to take a part in the industry are proliferating, with a gradual development of new tastes and varied products that are involved in the market. However, the issue of seasonality of the drinks and food products as well as the client visits has a great impact on the market. This is in regards to demand and production. A good number of companies that produce the different products are shifting their product portfolios so as to acquire client’s tastes.
The country has been faced by high production so as to meet the demand of clients hence leading to loss when the client demands changes. This has been due to the absence of stores to keep the extra products. These are like juices, tea products, and food. Wines are able to last longer but lack the places to keep them.
There are a number of things that one has to take into consideration when assessing the issue on the capacity of the food and beverage industry in a case in point like New Zealand. The first thing is that it is reliant on the appropriate and successful involvement to handle competitiveness and support marketing. The second thing is that the hotel demand shifts in connection to the tourism sector size. Revelry bar and eatery has been reliant on the local visitors and this market may drop at a higher rate when compared to the tourism sector. Additionally, research shows that the business and holiday areas are most affected. Thirdly, while this section is keen on the capacity, it is probable that there will be no profits. Moreover, the occupancy numbers met in 2008 was based highly on the room charges that made the hotels to be non-operable. Therefore even with rise in the recent years, there is no surety that it will be back to viability.
Taking to fact that this is a global problem; companies ought to look for effective ways so as to sustain the high numbers that are noted in certain periods of the year as well as the small numbers that are gotten at other times of the year. The food and beverage industry in New Zealand and that globally, ought to come up with a well-developed sourcing method that makes it possible for one to strategically plot for seasonality and meet the commitments for an improved list of competent suppliers. For instance, one has dynamic capabilities to acquire bid details when it comes to transport and delivery as well as capacity. The industry is able to make suppliers to come up with options or other choices so as to have innovations to the industry. This will be an effective method that will be able to meet the demands from the clients who are the main focus of this industry getting to satisfy the needs of the customers.
6. Impact of Job Design on motivation and productivity of staff
6.1. Impact of Job Design on Motivation of Staff
Revelry bar and eatery has its driving aspect being agriculture and technology enabling it to pursue advancement and get involved in competition. The aim to effectively issue the best services to its customers while at the same time meeting the highest return on investment on the whole reflecting job design and motivation are regions that are not accorded the necessary focus it deserves in the food and beverage industry (Mauk, 2009).
The aspect of job design notes the value it issues to the development and motivation of human resource while at the same time developing and integrating the staff job so as to offer clarity and extreme satisfaction in motivating the staff.
Studies in New Zealand show that job design is necessary, and is controlled by the need for job in the food and beverage area and varies in the manner the services are allocated. The design of a job is successful mode of motivating the staff in that it helped to simplify operations.
6.1.1. Task skills
The businesses in New Zealand are of the opinion that their job designs need them to make use of a number of skills so as to operate. This means that the people consider necessary and important manner on their work that make them use varied skills in applying their work.
6.1.2. Task Identity
The businesses in the country that are in the food and beverage industry are in consensus that their work has a start and an end.
6.1.3. Task Significance
Based on extensive research, it can be noted that focus on task relevance that the most of the staff in the industry has the outcome of what they do to be quite important to other people in other areas of the country. A good example is the economy of the country and the agriculture sector in terms of advancement and provision of employment.
6.1.4. Task Characteristic Autonomy
Most of the work undertaken in this industry offers the staff the ability to decide on the manner or strategy that their work is done. Hence, they are not placed in tight policies that restrict their operation. This accords the staff the feeling of autonomy and fosters close connection with what they do (Mauk, 2009). This is quite necessary especially in the food and beverage sector taking into consideration that New Zealand, just like any other country, has a varied food production as well as beverage.
6.1.5. Feedback from Job
The industry has activities that accord the staff with a direct and clear set of data that is based on effectiveness of their work. Varied scholars have come to back the idea that the job design has a significant impact on the motivation as well as job effectiveness of the staff. The impact that arises from this is that the food and beverage industry ought to acquire systematic design of work so as to elevate the staff’s performance. So as to meet the quality at its highest level, it is considered necessary.
6.2. Job Design and Impact on Job Productivity
In regards to the impact that job design has on productivity, there are a number of factors that are keen in the food and beverage industry. This has been noted to be the effectiveness and efficiency of a staff that were seen to be quite significant. Effectiveness is quite affected by factors like leadership and communication while on the other hand efficiency is greatly affected by elements such as team commitment, motivation, personal performance, and team philosophy.
With regards to studies done, it is necessary for job design and motivation to connect to productivity. Therefore, the advancement in the job design is seen to bring about high forms of motivation that would on whole lead to productivity.
7. Principles of Project Management
For the success of a project, there are a number of principles that ought to be taken into consideration for a successful operation to be met. These principles include initiating, planning, implementation, controlling, and closure. These activities cannot be met unless there is a project manager who is in charge of making sure that the team undertakes the project effectively. He comes up with the project plan with the help of the team and organizes the performance of operations. Additionally, he approves deliverables from the players and communicates issues to the team for in-line application.
Initiating involves operations that describe new projects and is comprised of defining and acquiring approval so as to start work (Mauk, 2009). There is the creation of the format that would connect all of the tasks to be used. The next principle is planning which involves procedures needed so as to set up the scope of the project, structure the goals, and describe the mode of action needed to meet the goals of the project. The team that is in place goes through the several options available to them and recommendations are issues. For example, the food and beverage industry requires a place that is quiet and relaxed. When coming up with the schedule of what to take place, it calls for major coordination of every player that is involved. Additionally, this called for extensive communications strategy so as to allow the shareholders to be informed of the development progress this leads to excitement.
Execution process followed and involves the operations that are undertaken to complete work so as to finish work stated in the project specification. This is a set of predictable stages that are followed until the project is done. In the controlling stage, the team is called to track, review, and control the development and performance of the project; to note, the regions that changes are required and it would be the one that will start them. The project ends with its closure when all of the activities are finalized.
8. Conclusion
The effective application of process management can lead to successful results for a company. This is with the help of an effective process design and effective staff management. Revelry bar and eatery popular and successful as it is similarly has problems as seen from the paper. This is in terms of capacity and design. The paper has been able to offer effective ways to solve them for effective outcome to be met. This is since the process design affects motivation of the staff as well as productivity. Lastly, a successful business cannot be met unless the principles of management are applied. Revelry bar and eatery is a good example of how the process of management is applied and how the issues that arise within its ranks can be handled. This can similarly be used in other companies for effective results.
References
Bates, K., Bates, H., & Johnston, R. (2003). Linking service to profit: The business case for service excellence. International Journal of Service Industry Management, 14(2), 173.
David, J. S., Grabski, S., & Kasavana, M. (1996). The productivity paradox of hotel-industry technology. Cornell Hotel and Restaurant Administration Quarterly, 37(2), 64-70.
Mauk, S. (2009). The five principles of successful project management. Retrieved from
http://www.mpiweb.org/Magazine/Archive/US/November2009/TheFivePrinciplesOfProjectManagement
Parasuraman, A. (2002). Service quality and productivity: A synergistic perspective. Managing Service Quality, 12(1), 6-9.
Menumania. (2012). Revelry Bar. Retrieved from http://www.menumania.co.nz/restaurants/revelry-bar-auckland
Statistics New Zealand. (2005). Employment size groups for geographic units. Retrieved from http://wdmzpub01.stats.govt.nz/wds/TableViewer/tableView.aspx?ReportName=Business%20Statistics/Employment%20size%20groups%20for%20geographic%20units-(ANZSIC%2006)
