Determine budgeted labor cost

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Questions:

1. Determine budgeted labor cost. Managers must know how much money can be spent for labor during each work shift.

2. Create a master schedule. The master schedule is necessary to create the crew schedule, considering the expected number of customers to allocate the number of hours allowed by the budget between the different positions in the operation.

3. Develop a crew schedule. Managers must consider many factors with flexibility in mind as they match the abilities of the specific employees to accomplish the responsibilities required during the shift, and balance the needs of the establishment with the personal needs of employees to create a happy and effective environment.

4. Distribute and adjust the crew schedule. The distribution of schedules to employees should be 7 to 10 days in advance including all the information needed such as days off, a.m. and p.m shifts and posted in different locations. If there is any discrepancies on days or time requested by the staff it should be fixed immediately before display on bulletin boards, and network of computers.

5. Monitor employees during shift. Managers can use different methods such as observing employees when actually working. This is a way of monitoring and follow up of the quality standards expected when planning the master and crew schedules, using positive feedback for reinforcement. A daily line-up meeting, or brief in session held before the work shift begins, encourages staff members and focus on main goals.

6. Analyze after-shift labor information. Professional managers must also analyze actual labor costs after shifts are completed to see if extra hours were worked by some employees or if there is a need of another employee at that time to be scheduled, otherwise the labor cost and benefits cost will rise since extra hours are paid one and a half as much as regular hours and employee benefits are tied to wages. Cost control is critical for a successful business.

Reference no: EM133411552

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