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definition of terms

The document outlines key concepts related to payroll and labor expenses in foodservice operations, including definitions of salaried and exempt employees, fixed and variable payroll, and productivity metrics. It also discusses employment processes such as job descriptions, applications, skills tests, and employee separations. Additionally, it touches on management practices like empowerment, orientation programs, and systems for on-call and call-in employees.

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3 views3 pages

definition of terms

The document outlines key concepts related to payroll and labor expenses in foodservice operations, including definitions of salaried and exempt employees, fixed and variable payroll, and productivity metrics. It also discusses employment processes such as job descriptions, applications, skills tests, and employee separations. Additionally, it touches on management practices like empowerment, orientation programs, and systems for on-call and call-in employees.

Uploaded by

cthln.cmn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Payroll – Total wages and salaries paid by a foodservice

operation to its employees.

Labor expense – All expenses (costs), including payroll,


required to maintain a workforce in a foodservice operation.
Salaried employee – An employee who receives the same
income per week or month regardless of the number of hours
work.
Exempt employees – Salaried employees whose duties,
responsibilities, and level of decisions make them “exempt”
from the overtime provisions of the government’s fair labor
standards act. Exempt employees are expected, by most
organizations, to work whatever hours are necessary to
accomplish the goals of the organizations.
Minimum staff – The term used to designate the least
number of employees, or payroll dollars, required to operate
a facility or department within the facility.
Fixed payroll – Those money spent on employees, such as
managers, receiving clerks, and dietitians, whose presence is
not generally directly dependent on the number of guests
served.
Variable payroll – Those dollars expended on employees
whose presence is directly dependent on the number of guests
served. These employees include servers, bartenders, and
dishwashers, for example. As the number of guests served
increases, the number of these individuals required to do the
job also increases. As the number of guests served decreases,
variable payroll should decrease.
Productivity – The amount of work performed by a worker
in a set amount of time.
Productivity ratio – This formula refers to the total unit
output divided by the unit input.
Job description – A listing of the tasks to be performed in a
particular position.
Job specification – A listing of the personal skills and
characteristics needed to perform those tasks pertaining to a
particular job description.
Employment application – A formal document, completed
by a candidate for employment, which lists the name,
address, work experience, and related information of the
candidate.
Skills test – Preemployment tests such as typing tests for
office employees, computer application tests for those
involved in using word processing or spreadsheet tools, or
food production tasks, as in the case of chefs.
Pre-employment drug testing – A preemployment test used
to determine if an applicant uses drugs.
Negligent hiring – Failure on the part of an employer to
exercise reasonable care in the selection of employees.
Orientation program – A program usually held during the
first week of an employee’s job that provides information
about important items.
Employee separation – An event that describes employees
who quit, are dismissed, or in some other manner have their
employment with an operation terminated.
Voluntary separation – An employee makes the decision to
leave the organization
Involuntary separation – Management causes the employee
to separate from the organization.
Sales per labor hour – A calculation used to measure worker
productivity.
Productivity standard – Management’s Expectation of the
productivity ratio of each employee.
Franchisor
On-call – A system whereby selected employees who are off
duty can be contacted by management on short notice.
Call-in – A system whereby employees who are off duty are
required to check in with management on a daily basis to see
if the volume is such that they may be needed.
Overtime wages – By law or policy, it must be paid at a
higher than normal rate.
Standard labor cost – It needed to meet established
productivity standards.
Empowerment – Giving employees power to make
decisions.

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