CHAPTER IV

COMPANIES CONTROL PROCEDURES

Balance between centralization and decentralization of power

For operational choices relating to product, marketing, and human resource management, Jollibee's
franchises in foreign countries should have a certain amount of decentralization of power. Additionally, a
specific number of R&D facilities might be established in other nations to aid in the localization of
particular products. Quality control, financial decisions, and general corporate strategy must all be
handled by the Philippine headquarters at the same time.

Reforming Organization Structure

Jollibee ought to choose an organizational structure that enables it to spread its worldwide learning and
core capabilities throughout its outlets. For more effective operations, it should also assist value
generating activities in the value chain. One of these types of structures is the adaptable matrix structure,
which offers a shared culture and vision. The collaboration and coordination between local and foreign
operating units will be made possible by this framework.

Management-by-Objective (MBO)Management by objectives (MBO) is a method of creating

Unique Features and Advantages of the MBO Process

Employees should understand their tasks and functions clearly, according to the Management by
Objectives (MBO) guiding philosophy. Then, they may comprehend how their actions link to the
accomplishment of the organization's objective. The accomplishment of each employee's personal goals is
a priority for MBO.

Important Features and Advantages of MBO

Motivation

Involving employees in the whole process of goal setting and increasing employee empowerment. This
increases employee job satisfaction and commitment.

Better Communication and Coordination

Frequent reviews and interactions between superiors and subordinates help to maintain
harmonious relationships within the organization and also to solve many problems.

Clarity of Goals
 o Subordinates tend to have a higher commitment to objectives they set for themselves than those
imposed on them by another person.
o Managers can ensure that objectives of the subordinates are linked to the
organization's objectives.
o Total Quality Management or TQM
o An integrative philosophy of management for continuously improving the quality of products and
processes.
o TQM functions on the premise that the quality of products and processes is the responsibility of
everyone who is involved with the creation or consumption of the products or services offered by
an organization. In other words, TQM requires the involvement of management, workforce,
suppliers, and customers, in order to meet or exceed customer expectations.
o Considering the practices of TQM as discussed in six empirical studies; Cua, McKone, and
Schroeder (2001) identified the nine common TQM practices as: ·cross-functional product
design, process management, supplier quality management.
o Jollibee Foods Corporation Human Resources customer involvement
o Information and feedback
o Committed leadership
o Strategic planning
o Cross-functional training
o Employee involvement
o Appropriate Method for the Company
o Job redesign, as the most appropriate for the selected company to utilize in order to implement
the recommended business policy.

The objective of job design and job redesign is to develop or restructure jobs or work roles in terms of
work functions and employee skills that are both appealing to individuals and consistent with the
organization's strategy and vision. Job design is the process of organizing a job's components, methods of
execution, and relationships with other tasks within the company. The purpose of job design and redesign
is to align organizational productivity requirements with the demands of the people doing diverse
occupations. The goal of job design and redesign is to give people meaningful work that seamlessly fits
into the organizational structure. The purpose of job design is to streamline, enhance, expand, or
otherwise alter tasks so that each employee's efforts mesh better with those of other workers. One job
redesign can improve the effectiveness of the entire system, and the chosen organization should use these
techniques to put the suggested business policy into practice.

Job Redesign Approaches

Motivational Approach

The motivational method has mostly been created within the realm and scope of organizational
psychology. It is grounded in the earlier work on job enrichment, job enlargement, and other aspects of
employment. According to the motivational approach, work design elements have often been looked for
in order to predict such key outcome variables as satisfaction, motivation, participation, absenteeism, and
job performance.
Mechanistic Approach

In general, the mechanistic approach to job redesign has focused on increasing the efficiency with which
tasks may be completed. Jobs created using a mechanistic approach need less training and are less
expensive to staff. In essence, the tasks are easier and involve less responsibility. Lower mental demands
might result in higher-quality production.

Perceptual-Motor Approach

Given its focus on dependability and occupational safety, the perceptual-motor method is thought to
provide a number of advantages, including an improvement in output quality and a forecasted drop in
accident rates. Employee stress and weariness would be lessened by the job's lower mental demands.

INVENTORY MANAGEMENT

The capabilities of suppliers, production planning, and customer happiness may all be improved with
inventory management. Inadequate inventory control will result in inadequate raw materials for daily
operations. This could occur when individuals are out shopping for quick lunches and dinners during peak
hours. If there is a shortage of raw materials, it is impossible to make enough ingredients for each meal
that a customer order. There isn't a contemporary, automated machine that can make daily tasks easier.
For example, they still need the staff to clean up and wash all the cutlery manually. If the restaurant is full
of customers, especially during peak hours, they will have inadequate staff to serve the customer (e.g.,
taking orders, cleaning the table and helping in preparing food). Thus, they need machine and equipment
in order to minimize their jobs and to leverage their service. Other than that, a limited number of kitchen
equipment results in insufficient time for the chefs to prepare food. Consequently, inefficiency in food
preparation can delay the serving time.

Role of Inventory

Management Operations frequently account for a large amount of the revenue from the sale of food and
supplies that are not immediately consumed (inventory). Maintaining inventory levels that are both high
enough to ensure that menu items can be produced in the proper number and low enough to prevent
excess product from piling up in storage is a tried-and-true approach of keeping food costs under control.
We refer to this as inventory control.

Increased waste from foods that deteriorate, are stolen from, or are simply thrown out as a result of
overproduction or obsolescence can be brought on by excess inventory. When inventory levels are high, it
is more difficult to maintain track of what items are actually in stock, more storage space is needed,
money is locked up, and waste management is more difficult than when inventory levels are kept low.
This is true for both completed products and raw materials. The cost of trash can be monitored on
production records or by keeping a waste report.

On the other side, failing to produce enough of each menu item, whether as a result of a shortage of raw
materials or poor forecasting, frustrates customers and can be against program rules. Students should have
access to all options while not having an abundance of leftovers. Although the idea seems
straightforward, achieving the intended results calls for rigorous planning, established practices, and
monitoring.
In the past, managers simply had to take their own facility's inventory into account in order to keep
expenses in check. However, in the age of supply chain management, school nutrition managers are
increasingly cognizant of the cost of inventory across the supply chain and the impact it has on final
expenses. When planned sales do not occur and there are too much goods inventories, producers,
manufacturers, and distributors incur decreased profits and waste. Utilizing predictable purchase patterns
will reduce food expenses to schools since this cost is transferred to the school district.

Multiple objectives may be met through efficient inventory management. Preserving food quality comes
first. Freshness is ensured by receiving the appropriate amount of the product just before it is served.
Additionally, teaching staff to verify product codes guarantees that items fulfill requirements, producing
the intended quality. Preserving a high level of customer service, increasing productivity, managing
finances, minimizing storage space and cost, minimizing loss in the event of recalls or disasters,
regulating the quantities of food and supplies on hand, and maintaining the safety of foods are other
objectives.

Customer Service

One important aspect of good customer service is to have daily advertised menu items by controlling
stock outs. Customers are disappointed when their favourite products run out and when acceptable
substitutions are not available. Also, some customers have allergies or other dietary restrictions and their
health depends on the right products being available. Substituting a peanut oil for vegetable oil may
literally mean life or death for some customers. Good customer service also requires the delivery of
product that is fresh. Although they may be safe to eat, serving products past their use-by date call into
question the quality of all products. Serving leftovers resulting from inaccurate forecasting also erodes the
perception of quality. Finally, offering a product mix with enough variety to maximize participation
contributes to good customer service. However, it is also important to limit variety to those products that
provide sufficient sales in order to maintain operational efficiency. Making small quantities of product
increases labour and reduces efficiency.

Efficiency

Product handling with efficiency is another facet of inventory management. The layout and location of
storage rooms, in particular, can have an impact on how easily items can be transported to manufacturing
areas and how secure inventory is. The time required to count inventory can be decreased by designing
inventory forms to correspond with the arrangement of storage spaces. Examples of practices that can be
used to increase efficiency include:

 reducing the number of items or stock keeping units (SKUs) that need to be ordered, handled, and
stored resulting in decreased handling time;
 eliminating items with low volume; ·consolidating common types or styles of food such as using
the same chicken patties for more than one entrée; and
 using purchasing reports from vendors or software systems to determine the number of cases
purchased of each item.
Financial Management

Improving financial control is one of inventory management's top priorities. Assuring that the most profit
is made from investments in food and supplies is the financial aim of inventory management. Costs for
moving and keeping merchandise are in addition to the actual cost of purchasing it. These expenses,
which are referred to as carrying costs, could include storage rental, utilities, insurance, the cost of
shrinkage and obsolescence, the cost of wages and benefits for labor to move and count stock, as well as
the opportunity cost, or how much more you might have been able to make if the money were used in
another way.

Managing Quantities

The correct quantity of inventory is the level at which sufficient product can be produced to meet
customer demands – no more, no less. Some safety stock, a small cushion of inventory for unpredicted
usage, is necessary to prevent sites from running out of food. For many products, this may mean setting a
periodic automatic replacement (par) level or a reorder point. Par levels are usually set for items served
daily such as milk, common ingredients used in multiple recipes (e.g., sugar, flour, spices), chemicals,
and paper supplies. For entrees, fruits, vegetables, and bread products it is best to project serving
quantities for the week’s menu. Common measures of inventory efficiency are the number of days of
inventory on hand and turnover rate. The days of inventory on hand and turnover rate are calculated:
Ending inventory ÷ average daily food cost = days of inventory on hand Number of serving days ÷ days
of inventory on hand = turnover rate.

Food Safety
Food safety is a critical consideration in inventory management. It is very important to protect food
inventories from both unintentional and intentional contamination. Proper placement of product in storage
areas can ensure that raw products do not cross-contaminate food that will receive no further cooking
as well as prevent accidental contamination from chemicals. Standardized, (Hazard Analysis and
Critical Control Points) HACCP-based receiving practices protect customers from products that have not
been held at proper temperatures or have been damaged during transport. Proper storage practices ensure
foods are kept safe and shelf life is maximized. Ideal storage temperatures vary based on the type of food.
Although refrigerated foods should be held between 32°F and 40°F, temperatures near 32°F may freeze
produce whereas this temperature may be ideal for meat and fish. Products requiring colder temperatures
should be placed near the back of the cooler where temperatures are cooler. Thermometers should be
placed both near he door and at the back of the cooler to adequately monitor proper holding temperatures.
Keep in mind that holding temperatures refer to the temperature of the food, not the air temperature of the
cooler. Cooler air temperatures should be 2°F below recommended product temperatures. Interpreting
product dating and shelf life can be confusing. Four types of dates may be found on product packaging
and each type has a different meaning:

Sell-By
“Sell-By “is the last date products should be displayed for sale. Although the product may still be safe,
the quality starts to diminish once this date passes.

Best if used by
“Best If Used by (or Used Before)” is peak quality date. It does not mean the product is unsafe or unfit to
eat beyond this date.
Use-by
“Use-By” is the last date recommended by the manufacturer for consuming the product for best quality.

Closed or Coded Dates

Reference:

Charisse Mae M. Carreon 2016, pdfcoffee, Ronald F. Clayton, accessed 10 July 2022,
https://pdfcoffee.com/jfc-case-study-pdf-free.html