MAXS RESTAURANT A CAPSTONE PROJECT OF MGMT 341

MAX’S RESTAURANT A CAPSTONE PROJECT OF MGMT 341 Team 3 Chris Butterwick – cjb 216@psu. edu Adam Cressman – aqc 5351@psu. edu Michael Martin- mam 6311@psu. edu Summer 2012

MAX’S RESTAURANT - COMPANY VALUES Statement of Values “As a company, and as individuals, we value integrity, honesty, personal excellence, and mutual respect. We are committed to our customers, communities, and employees and put total effort into striving for perfection and harmony. ” Values for Success Focus on social responsibility in addition to financial and economic responsibilities Continue with traditions of supporting community and employees through transitioning business structure Build new partnerships with community organizations

COMMUNITY INVOLVEMENT & COMMUNITY RELATIONS Max’s will continue to donate time, money, and resources to local communities Work with employees to continue strong community involvement during and onward from business transition General Manager will lead these programs until full integration Create and engage in activities to promote community involvement Support college charities and initiatives Be an active supporter of the local college Offer special events or promotions that coincide with college calendars (sports seasons, graduation, orientation, finals, etc. ) Advertise and promote community involvement and business through college radio station and newspaper Work with and attempt to partner with other community organizations (student union, teacher’s union, etc. )

BENEFITS OF A DIVERSE WORKFORCE Greater employee satisfaction Increased customer satisfaction Creativity Improved problem solving capabilities All of this equals INCREASED PROFIT

CREATING AN INCLUSIVE CULTURE An inclusive culture means going beyond just hiring and retaining a diverse workforce Inclusive culture means that diversity in our workforce is celebrated Done through: Recognition of different cultures’ holidays and significant historical events in different nations Employee events, outings, and parties celebrate differences and focus on particular cultural, psychological, or physical differences Menu offerings and front of house activities geared to diverse target customer base

STEPS TO A DIVERSE WORKFORCE Diversity is appreciated and embraced and this attitude will permeate throughout the organization from the top down. A Code of Ethics will be established which will include material on embracing diversity and workplace discrimination. An Ethics Officer will be appointed to oversee the training and enforcement of the Code of Ethics. Job openings advertised in various outlets and placements which will attract a broad group of qualified applicants. A diverse selection committee will be assembled to review applications, conduct interviews, and make the final selection for new hires. The selection committee will be as diverse as possible and include management and staff who vary by age, gender, race, ethnicity, religious preference, skill and ability, and other factors. Extensive training will be offered to new hires on the organizational behavior, cultural norms, and expectations as an employee for Max's. Ongoing training throughout the year will refresh all employees of the value of diversity and code of ethics at Max's.

DISCIPLINARY ACTION Our goal at Max’s is to offer our employees a fair, equitable, and enjoyable workplace and we value each and every employee who works with us. Sometimes however, an employee may act against the best interests of the restaurant, its customers, and/or their co-workers. In this circumstance, we will apply progressive disciplinary action to any and all situations which we feel warrants action. The action steps are outlined in the following slide.

STEPS OF DISCIPLINE We will review the behavior to determine if it truly is a violation that warrants disciplinary action, if it is not, none will be performed. If disciplinary action is warranted, we will first offer an oral warning to the employee. If the improper behavior is a second violation the employee will receive a written warning. If the improper behavior continues the employee will then receive a suspension, without pay. If the employee continues to perform the improper behavior after all other avenues above have been exhausted, the employee will be terminated. As an At-Will employer, Max's restaurant reserves the right to skip the steps above if, in the company's view, the improper behavior is so dire that swift and immediate termination is required.

SHIFTS & STAFFING Shifts 3 – 6 hour part-time (5: 30 am-11: 30 am, 11: 30 am-5: 30 pm, 5: 30 pm-11: 30 pm) 2 – 9 hour full-time (5: 30 am-2: 30 pm, 2: 30 pm-11: 30 pm) Staff 4 PT dishwashers 8 -9 PT prep cooks 4 PT order takers 3 FT supervisors

ADDRESSING EMPLOYEE FLUCTUATION AND BUSY SEASONS Part time work from college students and local residents Students may leave in the summer so local residents can help on a seasonal basis Holidays and college activities (graduations, formals, etc. ) Will need extra part-time help Management and supervisor can work extra hours to help Work with the college to determine what summer enrollment is like and advertise with some of the student circulations and media as summer students arrive Full time workers from college students and local residents Will lessen the fluctuations in our workforce Will add to the diversity of our workforce Non-college workers are likely to be of an older age, have different experience, knowledge, and abilities, and at a different place in life when compared to college students Consistency in our workforce may be good for business We hope to develop loyal customers and having familiar faces in the restaurant which may be a welcoming sight to our customers If the college has a culinary, management, or hospitality department, we should partner with professors and advisers to attract student help and possibly even consider hosting internship or job shadowing

EMPLOYEE RECRUITING Target college students and town residents who are not associated with college Recruit college students by placing ads in student union building, career centers, lounges, campus newspaper, and airing ads on campus radio station Recruit town residents by placing ads in local newspaper and having a presence at job fairs Television ads will be cost prohibitive so we will not purse this method of recruitment

RECRUITING COLLEGE STUDENTS SAMPLE AD

RECRUITING NON-COLLEGE LABOR SAMPLE NEWSPAPER AD Help Wanted Max’s Restaurant has immediate openings for the following part time positions: Dishwasher, Server, Prep Cook. A "can do" attitude, strong work ethic, and desire to work as part of a high achieving team are absolute musts. Prior experience is helpful but not required. Max's offers a flexible schedule and positive working environment. Stop in at Max's at 222 College Ave to fill out an application today.

EMPLOYEE SELECTION Selection process is critical. We want to attract top performing candidates Top performers can choose where they want to work It is our role at Max’s to sell the company to them just as much as it is the candidate’s role to sell themselves to us We will conduct structured interviews Create an interview environment which is comfortable, friendly, and welcoming

EMPLOYEE SELECTION Possible questions to ask in the interview: What attracted you to this position? If you were hired, how would you establish credibility with the team at Max's? What do you feel are qualities of good leaders? Bad leaders? Tell us about your supervisory experience: positions held, number of employees reporting to you, amount of budgetary authority? Have you ever worked in a supervisory position before? Are you comfortable having employees report to you? Questions to avoid: What is the most embarrassing moment of your life? What is your greatest fear? If you could be an animal, what would it be and why? What is your favorite memory in childhood?

TRAINING AND DEVELOPMENT Having well trained employees who execute their jobs efficiently, courteously, and expertly is a hallmark of Max's restaurant. We emphasize the cyclical nature of training and make sure that we revisit training with our employees on regularly scheduled intervals as well as when new equipment needs demand. Our order takers provide the first impression to our customers as they enter the restaurant and we want to make sure they are well versed in anything that may come up. We have found that the best way for our order takers to learn is through On the Job Training or OJT

TRAINING AND DEVELOPMENT OJT provided by veteran and high-performing employees New employees paired with these individuals for mentoring and training OJT sessions scheduled outside of busiest rush periods so that new employees can settle into the position naturally and with confidence Role playing will also be used New employee works with senior staff to run through realistic but challenging situations Employee given feedback on how they handled situation and what they can do better

PERFORMANCE OBJECTIVES Well executed performance appraisals recognize individual achievements, motivates high-performing employees, and guides future behaviors which are tied to overall company goals. Part of the appraisal process results in establishing performance objectives for all staff. Performance Objectives for Prep Cook: 1. 2. 3. Put out 10 meals in a 15 minute period Provide 98% guest satisfaction based on food temperature and quality Fully clean work station in 15 minutes

PERFORMANCE OBJECTIVES Performance Objectives for Supervisor: 1. 2. 3. Provide a 98% guest satisfaction rate based on overall experience- includes but not limited to: food quality, service, dining experience, facility cleanliness Enforce all applicable federal, state, and local laws and regulations so that there are zero workplace infractions Hand out employee satisfaction survey to ensure supervisors are fair and efficient. These should be anonymous. These can be rated on scales from 1 -5 with categories such as: Fairness, Accommodating, Friendly, etc.

CRITICAL INCIDENTS The critical incidents method of performance appraisal involves keeping written records of highly favorable and unfavorable employee work actions. Some positive critical incidents which we anticipate for the order takers include: guest leaving positive feedback or calling/writing to express outstanding service employee came in to fill a missed shift on short notice employee receiving any training to enhance their job performance taking a leadership role on any company initiatives Some negative critical incidents which we anticipate for the order takers include: guest leaving negative feedback about service of order taker missed shifts or tardiness violations of company policies or any local, state, or federal regulations

LABOR MARKETS General Manger Regional to national labor market Pay leader Offer industry leading compensation Helps attract and retain the best employees Experience required Experience in opening a restaurant a plus Hourly Employees Local labor markets Pay leader Offer industry leading compensation Helps attract and retain the best employees

RANKING METHOD OF JOB EVALUATION 1. Supervisor High 2. Prep Chef High skill, high pressure, high responsibility skill, high pressure, moderate responsibility 3. Order Taker Moderate skill, moderate pressure, high responsibility 4. Dishwasher Low skill, moderate pressure, low responsibility (comparatively)

INDIRECT FINANCIAL COMPENSATION Our benefits package helps attract the best employees, retain the best employees, and is integral to the positive culture at Max’s. We will offer a comprehensive package to see that our employees and their families are happy, healthy, and financially secure.

BENEFITS AT MAX’S Paid time off Employees working 20 -39 hours per week receive 1 week of PTO per year. This amount does not increase with tenure. Employees working 40+ hours per week and exempt employees receive 2 weeks of PTO per year. After five years of service, this amount increases to 3 weeks. After ten years of service, this amount increases to 4 weeks which is the maximum amount. Employees can carry over a maximum of 1 year's allotment of PTO to the next year. PTO is the entire bank of paid time off and is to be used for sickness, vacation, or other time off needs. Healthcare All employees working 20+ hours per week are eligible for our HSA plan. Plans are available for individuals, husband/wife, and families and plan prices vary. If an employee opts out of our HSA plan, they will receive an appropriate form of direct financial compensation.

BENEFITS AT MAX’S Dental and Vision care All employees working 20+ hours per week are eligible to receive dental and vision benefits. Max's will pay for this benefit in full. The dental plan covers 100% of all preventive care and 75% of all restorative care. The vision plan covers an annual eye exam and either 12 month's supply of contacts or one pair of glasses/lenses not to exceed $400. 401(k) Available to employees working 40+ hours per week and exempt employees. Max's will match employee contributions dollar for dollar up to 4% of their weekly pay. Education scholarships Free food Any employee working a minimum of a 4 hour shift is entitled to $20 of Max's food, based on menu price

LABOR UNIONS: "AN OUNCE OF PREVENTION IS WORTH A POUND OF CURE" Why we want to prevent labor unions from forming: Management distracted from work by bargaining and contract negotiations Paying even higher wages Offering benefits which senior management does not want to such as additional holidays, family care, vacation time Potential for employee strikes if a contract is not renewed To mitigate labor unions formation, determine why they are formed: Dissatisfaction with management Low wages and benefits Job security Attitude of the management staff. Social Outlet Leadership Opportunities Peer Pressure

LABOR UNIONS: "AN OUNCE OF PREVENTION IS WORTH A POUND OF CURE" Ways to deter: Offering competitive wages and benefits as discussed in other Max’s assignments Attract quality employees that are not simply looking to form a union and fight for higher than industry standard wages Job security Difficult thing to promise due to the volatility of the economy We can do our best to provide a positive work environment that promotes openness Employees can address their concerns with management about the state of the business and the security of their job Create Non-Work Social Outlets Softball & bowling leagues