Behavioral-financial-analysis-The-impact-of-restaurant-management-attitudes-on-corporate-financial-statements

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! Pfeffer, J. (1978). OrganizationalDesign. Arlington Heights, Illinois: AHM Publishing. Podmore, T. (1906). Robert Own: A Biography. New Yale Appleton, ftide, W„ R. Hughes, and J. Kapoor. (1993). Businas. 4th. ed. Boston: Houghton- Mifflin Company. Roethliserger, F. (1941). Managementand Morale. Cambridge: Harvard University Press. _________ and W. Dickson. (1939). Management and the Worker: An Account o fa Research Program Conducted By the Western Electric Company Hawthorne Workers. Cambridge: Harvard University Press. Samuelson, P. (1955). Foundations o fEconomic Analysis. Cambridge: Harvard University Press. Sanders, D. (1993). Statistics: A First Course. 5th ed. New York: McGraw-Hill. Schein, E. (1980). OrganizationalPsychology. Englewood Cliffs, New Jersey: ftentice Hall. Scmitt, N. and EL gitmnsfci. (1991). Research Methods In Human Resources Management. Cincinnati: South-Western Publishing Company. Scott, D. (1923). Theory o fAccounts, VoL 1. New York: Holt/Rinehart;and Winston. Shaman, A. and G. Bohlander. (1992). Managing human resources. 9th ed. Cincinnati: South-Western Publishing Company. Siegel, G. and H. Ramananskas-Marooni. (1989). Behavioralaccounting. Cincinnati: South-Western Publishing Company. Spiegel, H. (1971). The Growth o fEconomic Thought. Englewood Cliffs, New Jersey: ftenlice-Hall. St. Clair, O. (1937). Key to Ricardo. London: Routleedge, pp. 9-43. Taylor, F. (1911). Principles o fScientific Management. New York: Norton. Timm, P. and B. Peterson. (1993). People at Work: Human Relations In Organizations. 4th ed New York: West Publishing Company. Ure, A. (1835). The Philosophy o fManufactures. London: Charles Knight. WQkerson, A. (1986). The Scientistk Handbookfo r Writing Papers and Dissertations. Englewood CUfis, New Jersey: ftentice Hall. Yukl, G. (1989). Leadership In Organizations. New York: ftentice Hafl. Journal Articles Albro, W. (1922). 'Personnel Administration Today.* Management Engineering, 3(1) pp. 17-22. Argyris, C (Jannary-February 1933). 'Human Problems With Budgets.' Harvard Business Review. Avery, R. (1990). 'Unfair Discrimination in the Employment Interview: Legal and Pychological Aspects.' Psychological Bulletin, 86, pp. 737-763. Baron, Jn A. Davis-Black, and W. Biely. (1986). T he Structure of Opportunity: How Promotion Ladders Vary Within and Among Organizations.' Administrative 91 t Reproduced with permission o f the copyright owner. Further reproduction prohibited w ithout permission.

Science Quarterly, 31, pp. 248-273. Bowers, D. (Jane 1969). 'Organizational Theory and Homan Resource Accounting.* American Psychologist, pp. 585-592. Brummet, R* E. Flamholz, and W. Pyle. (March. 1968). 'Aoeoanting far Honan. Resources.* Michigan Business Review, pp. 20-25. Eilbirt, EL (1959). *The Development of Personnel Management in the United States.' Busines History Review, 33, pp. 345-364. Gilbert, M. July 1970). 'The Asset Value of the Honan Organization.' Management Accounting, pp. 25-28. Harari, O. (November 1993). 'Stop Empowering Your People.* Management Review, p26. Hckhnian, J. and C Jones. (Jannary-Fefaruary 1967). \"Put People On Your S h e et' Harvard Business Renew, 45, pp. 105-113. • Higgins, J. (April 1952). 'Responsibility Accounting.' The Arthur Anderson Chronicle, 12, no. 2, pp. 93-113. Kiker, B. (October 1968). \"The Historical Roots of the Concept of Honan Capital.* Journal o fPolitical Economy, pp. 481-499. Manhoney, T. and J. Deckhop. (1986). *Evolution of Concepts and Practice In Personnel/Human Resource Management' Journalo fManagement, 12, pp. 223-241. Mintzberg, EL (July-August 1987). 'Crafting Strategy.' Harvard Business Review, pp. 66-75. Rowland, K. and G. Ferris. (1982). \"Perspectives on E^ersonnel Management' In K. Rowland and G. Fenis ( Eds.) Personnel Management. Boston: Allyn and Bacon, pp. 2-33. Schmitt, N. (1991). 'Social and Situation Determinants oflhterview Decisions: Implications for the Employment Interview.' PersonnelPsychology, 29, pp. 79-101. Schultz, T. (March 1961). \"Investment in Honan Capital.* The American Economic Review, 51, no. 1, p3. Showwalkcr, M. and J. Mulholland (July-August 1992). 'Continuous Improvement Strategies for Service Organizations.' Badness Horizons, p84. Viner, J. (June 1941). \"Marshall's Economics, in Relation To The Man and To IBs limes.* American Economic Review, 31. Walton, R. (Winter 1975). \"The Diffusion of New Structures: Explaining Why Success Didn't Take.' Organizational Dynamics, pp. 3-22. ________ . (May-June 1974). \"Improving the Quality of Work Life.' Harvard Business Review, pp. 12-18. Whitaker, J. (Summer 1971). \"Some Neglected Aspects of Marshall's Economic and Social Thought.* History o fPolitical Economy, 9. Text Contributions Lawrence, P. (1985a). \"The HRM Futures Colloquium: The Managerial Perspective.* HRM Trends and Challenges. Boston: Harvard Business School Press, pp. 349-367. 92 i Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

Merchant, K. (1989). 'The Behavioral Dimensions of Internal Control.* hi G. Seigel and H. Ramananskas-Marcani (Eds.) BehavioralAccounting. Oneim— South- Weston Publishing Company, Chapter 13, pp. 289-291. Nitterhouse, D. (1990). \"Behavioral Aspects of Reporting Requirements.\" In G. Siegel and ELRananauskas-Marcoai (Eds.) BehavioralAccounting. Cincinnati: South- Western Publishing Company, Chapter 17, pp. 383-399. Rowland, K. and G. Ferris. (1982) \"Perspectives on Personnel Management.* hi Rowland and Ferris (Eds.) PersonnelManagement. Boston: Allyn and Bacon, pp. 2-33. Shannon, D. (1989). \"The Behavioral Patterns of Auditors' hi G. Seigle and H. Rananamfcas-Marconi (Eds.) BehavioralAccounting. Cjndmuti: South-Western Publishing Company, Chapter 14, pp. 292-323. R eports American Accounting Association Committee of Accounting for Human Resources, Report of die Committw1, on Human Resource Accounting The Accounting Review Supplement to Volumejoviu, 1975. American Accounting Association, Committee on Cost Concepts and Standards, \"Tentative Statements OnCost Concepts Underlying Reports for Management Purposes.\" The Accounting Review, vol. 31, no. 2, April 1956. Avery Dennison Corporation (Charles D. Miller) 1996 Animal Report, March 1,1997. Citizens Utilities (Daryl A. Ferguson) 1996 Annual Report, March 14,1997. Dun and Bradstreet DunsAnalytical Services: Industry Norms and Key Business Ratios (1985% 1986. Dun and Bradstreet. Duns Analytical Services: Industry Norms and Key Business Ratios, (1986), 1987. Dun and Bradstreet. DunsAnalytical Services: Industry Norms and Key Business Ratios, (1987), 1988. ITT Industries, (Travis Engen) 1996 Annual Report, 1997. Johnson & Johnson (Ralph S. Larson and Robert N. Wilson) 1995 Annual Report, March 12,1996. Leggett & Platt, Inc. (Hany M. Cornell, Jr. and Felix E. Wright) 1996 Ann—i Report, March 7,1997. MascoTech, Inc. (Richard A. Manoogian and Lee M. Gardner) 1996 Annual Report, 1997. NAA Bulletin, August 1953, \"The Analysts of Management Cost Variances,\" Research Series No. 2. The NationalAssociation o fAccountants. New Jersey Resources Corporation )Lanrence M. Downes) 1996 Annual Report, 1997. Nordson Corporation (Edward P. Campbell and William P. Madar) 1996 Annual Report on Worldwide Operations, 1997. Northern States Power Company (Fred M. Butler and Robert ELFriedl) 1996 Annual Report, 1997. Parker Hannifin Corporation (P.S. Parker and DJL Collins) June 30,1996 Annual Report Ryder Systems, Inc. (M. Anthony Bumes) 1996 Annual Report, February 21,1997. 93 Reproduced with permission o f the copyright owner. Further reproduction prohibited w ithout permission.

U.S. West, Inc. (Richard D. McCormick and Sol Trujillo) 1996 Annual Report, 1997. Uniroyal, Inc. 75th Annual Report -1966. 1967. Versa Technologies, Inc. (James E. Mohxhauser and Thomas J. Magulski) 1996 Annual Report, 1997. XXX, inc. 1985 Annual Report, 1986. XXX Inc. 1986 AnnualReport, 1987. XXX Inc. 1987AnnualReport. 1988. Unpublished W orks and Occasional Papers Dyer, L. (1980). \"Personnel Policy Theory and Research: The Need and the Reality.\" Paper presented to the National Academy of Management meeting, Detroit, MN. Flamholz, E. (1969). \"The Theory and Measurement of an Individual's Value to an Organization.\" University of Michigan: Unpublished Phi), dissertation. Hebert, J. (1970). \"The Economics of Human Capital: A Theory For Success.\" Athens, Greece: The Eastern Rite Institute, Unpublished thesis. Hermanson, R. (1964). \"Accounting for Human Assets.' Occasional Paper No. 14, East Lansing: Bureau of Business and Economic Research, Michigan State University. \"Skillem Drugs Suggested Management Interview Questions (July 1966). ' The Personnel Department of SldQem Drags, a Division of The Zales Corporation. \"Survey Question Recommendations and Computations: Brinkman (1976).* University of Dallas handout, July 1980. 'Survey Question Recommendations: Jenkins, Nadler, Lawler, and Camman (1975).\" University of Dallas handout, July 1980. Tomassini, L. (1974). \"Human Resource Accounting and Managerial Decision Behavior An Experimental Study.\" Los Angeles: University of California, Unpublished Ph.D. dissertation. Reproduced with permission o f the copyright owner. Further reproduction prohibited w ithout permission.

GLOSSARY The following represents definitions, explanations of factors, ratios, and terms found within the body of this dissertation. Accounts Payable to Sales is obtained by dividing accounts payable by annual net sales. This ratio measures how the company is paying its suppliers in relation to the volume being transacted. An increasing percentage, or one larger than the industry norm, indicates the firm may be nsfag suppliers to help finance operations. This ratio is especially important to short- tenn creditors d n « a high percentage could indicate potential problems in paying vendors. Assets to Sales is calculated by dividing total assets by annual net sales. This ratio ties in sales and the total investment that is used to generate those sales. While figures vary greatly from industry to industry, by mmpsHng a company's ratio with industry norms it can be determined whether a firm is overtrading (handling an excessive volume of sales in relation to investment) ornndertradlng (not generating sufficient sales to warrant the assets invested). Abnormally low percentages (above the upper quartile) can indicate overtrading, which may lead to financial difficulties if not corrected. Extremely hijghpercentages (below the lower quartile) can be the result of a very conservative or poor safes management, frirftratftig that a more aggressive gales policy may need to be followed. Behavioral Financial Analysis is the process of systematically collecting, analyzing, and reporting the relevant human capital concerns of a situation, and assessing the relationship with the elements of a firm's financial statement. Collection Period is determined by dividing accounts receivable by sales and then multiplying by 365 days. The quality of the receivables of a company can be determined by this relationship ih w i ntwuparerf w ift soiling term s and mrfnsfry norm s. In Some industries where credit sales ate not the normal way of doing business, the percentage of cadi, sales should be taken into consideration. Generally, where most sales are far credit, any collection period more than one-third (1/3) over ««™ t soiling terms (40.0 for 30-day terms) is indicative of some slow-turning receivables. When comparing the collection period of one concern with that of another, allowances should be made for possible variations in selling terms. Communications refers to the ability of top management (corporate, regional, and district) to nrgamini^ interpret, *n/i information. moots the requirements of restaurant managers. This is defined as the ability to sopply restaurant managers with information that they can use to make better decisions. Comparative Analysis is the ability to compare a company with its peers and is a reliable method for evaluating financial status. The key to this technique is the compositian of the peer group and the timeliness of the data. The D & B Industry Norms are unique in scope of R eproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

sample size and in level of detail. Current Assets include cash, accounts and notes receivable (less reserve for bad debt), advances on wiventarieg, nwHimfaft mvwntorigs, and marketable securities. This ratio measures the degree to which,current assets cover current liabilities. The higher the ratio the mom assmancnevkte fhaf the idmmwrf n f ament liabilities can he made. The CUOent ratio measures the margin of safety available to cover arty possible shrinkage in the value of cnrrent assets. Normally a ntio of 2 to 1 (2.0) or better is considered good. Cnrrent Liabilities to Inventory is compnted by cfividing cnrrent liabilities by inventory yields, another fauficatiaa of the extent to which,the business relies on funds from disposal of unsold inventories to meet its debts. This ratio combines with Net Sales to inventory to indicate how management controls inventory; It is possible to have decreasing liquidity while maintaining consistent salcs-to-invcntory ratios. Large increases in sales with corresponding increases in inventory levels can canse an inappropriate rise in cnrrent liabilities if growth, is not made wisely. Cnrrent Liabilities to Net Worth is compnted tty dividing cnrrent liabilities by net worth. This contrasts the funds that creditors risk temporarily with,the funds permanently invested by the owners. The smallerthe net worth and the largerthe liabilities, the less secarity for the creditors. Care should be exercised when selling any firm with, cnrrent liabilities exceeding two-thirds (2/3) of net worth. Current Ratio is compnted by dividing total current assets by total current liabilities; Efficiency Ratios indicate how effectively a company uses and controls it assets. This is crucial information, for evaluating how a company is managed. Studying these ratios is useful far credit, marketing, and investment purposes. The ratios in this study included Collection Period, Net Sales to Inventory, Assets to Saks, Sales to Net Working Capital, and Accounts Payable to Sales. Financial Ratio Trends ate the Key Business Ratio changes which indicate trends in the important mlaHnwchipg h—w— fay ftume, au* •< thtt mlatinnrfrip hefween Nrt Profit and Net Sales* a common huScator of profitability. Ratios that reflect short- and long­ term liqnidity, efficiency in managing y-SPf**and controlling debt, and different measures of profitability are all included in the Key Business Ratios section of the industry norms. Fixed Assets to Net Worth is computed by dividing fixed assets by new worth. The proportion of net worth that consists of fixed assets will vary greatly from industry to industry, but, generally, a «\"«ifer proportion, is desirable. A high ratio could be unfavorable because heavy investment in fixed assets indicates that either the concern has a low net working capital and is overtrading or has utilized large funded debt to supplement working capitaL Also, the larger the fixed assets, the bigger the armual depreciation charge that must be deducted from the income statement. Normally, fixed assets above 75% of net worth Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

indicate possible over-investment and should be examined with care. Hmw»n Capital is the investment wmfe to improve the quality of people's skills through education, training, health care, employee benefits, and so on. Homan Resource Accounting is the ability to account for people as organizational resources. Hnman Resource Management consists of all the activities involved in acquiring m aintaining m l r f i f inplnp — w pfifaaH nw 'KIm ra n reaflm ces . Industry Norms for Financial Analysis are used to identify irregularities that require explanations to completely understand an industry's or company's current status and future potential. These irregularities can be identified by comparing the industry norms with the figures of specific companies (comparative analysis). Ranges in this study included the Median, Upper Quartile, and Lower Quartile. Key Business Ratios are the fotnteea (14) Key Business Ratios which are broken down,into median figures with,upper and lower quartiles, giving the analyst,an even.pore refined set of figures with which to work. These ratios cover all those critical areas'of business performance with indicators of solvency, efficiency, and profitability. The provide s profound and well-documented insight into all aspects of the financial working of a business. Krusfcal-Wallls Test is a nonparametric test for k independent samples having a continuous dependent variable measured with at least an ordinal scale. It is used to test whetherthree (3) or more samples come from the same or different populations. Lower Quartile is considered to be the least favorable condition for a firm in a given category. Mann-Whltney U Test is a nonparametric counterpart of the t test used to compare the means of two (2) independent popuhftons. Median is the typical ratio figure or range for a concern in a given category. Net Sales to Inventory is obtained by dividing annual net sales by inventory. Inventory control has been a prime management objective since poor controls allow inventory to become costly to store, obsolete, or insufficient to meet demands. The sales-to-inventory relationship is a guide to the rapidity at which merchandise is being moved and the effect on the flow of funds into the business. This ratio varies widely between different types of businesses, and a company's figure is only meaningful when compared with industry norms. Individual figures that are outside either the upper or lower quartiles for a given industry should be examined with care. Although low figures are uriially the biggest problem, as they indicate excessively high inventories, extremely high turnovers might reflect insufficient merchandise to meet customer demand, resulting in lost sales. Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

Operations refers to the decision-making capabilities, strategic planning process, employee benefit programs, and growth opportunities within a company, and how they affect unit level managers. Operations are viewed as the means through which upper management decisions and plans alter the destiny of the firm. Opportunity Costs of humanresources refers to (be value of hnmaaresources in their most favorable alternative use. This cost concept is closely related to the idea of human resource value. Original Coats of hnrnm resources refers to the sacrifice that was actually incurred to acquire and develop people within the company. This original cost typically includes costs of recruitment, selection, hiring placement, orientation, and on-the-job training. Profitability Ratios show how successfully a business is earning a return fafits owners. Those interested in mergers and acquisitions consider this key data for selecting candidates. The ratios in this study included Return on Sales, Return on Assets, and Return on Net Worth. Quartile Risk Caknlatloos are figures above the Upper Quartile or betowKhe Lower Quartile. Normally, these figures indicate that the business is in a risk situation (overtrading, undertxading, management too liberal, management too conservative, etc.). Quick Ratio is computed by dividing cadi plus accounts receivable by total current liabilities. Current Liabilities are all the liabilities that fall due within one year. This ratio reveals the protection afforded short-term creditors in cash or near cash assets. It shows the number of dollars of liquid assets available to cover each dollar of current debt. Any time this ratio is as much as 1 to 1 (1.0), the business is said to be in a liquid condition. The larger the ratio, the greater the liquidity. Relationships (Motivation) refers to two (2) different, but related, ideas. From the standpoint of the restaurant manager, relationship is an internal state that leads to the pursuit of objectives. From the standpoint of top management, relationship is an activity to get people to pursue objectives. Both concepts have an important meaning in common: mfttrmgMp te tfi«» «rp«»»iH»ww» n f +ffnrt fo •eflnmpltA wbsbHb. The effort StetUS fitOma force to perform that stems ftom one (1) or more of three (3) sources: the individual, (he manager, or the group. The purpose of relationdiips with subordinates is to encourage them to achieve objectives (or results) that helpthe organisation. Relative Position is a study of common-size and.typical balance sheets which provides an excellent picture of the make-up of (he industry's assets and liabilities. Ate assets concentrated in inventories or accounts receivable? Are payables to the trade or bank loans more important as a method for financing operations? The answer to these and other important questions were clearly shown by the Industry norms, its common-size balance sheet approach, and is then further crystallized by the typical balance sheets. >* ?8 Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

Costs of hwrrian resources refers to the sacrifice that would have to be incurred today to replace human resources presently employed. These costs typically include the costs attributable to the turnover of a present employee as well as the costs of acquiring and developing a replacement. Return on Assets is obtained by dividing net profit after taxes by total assets. This ratio is the key indicator of profitability for a firm. It matches operating profits with,the assets available to earn a return. Gompanies using their assets efficiently will have a relative high return, while less weD-run businesses will be relatively low. Retnrn on Net Worth (Retnrn on Eqnlty) is obtained by (fividmg net profit after tax by net worth. This ratio is to analyze die ability of the firm's management to realize an n/Vfprate return an the capital invested by thfe owners of the firm. The tendency is to look increasingly to this ratio as a fm»i criterion of profitability. Generally, a relationship of at least 10% is regarded as a desirable objective for provfcfing dividends plus funds far future growth. H Return on Sales (Profit Margin) is obtained by cfividing net profit after taxes by annual net sales. This reveals the profits eamed per dollar of sales and therefore measures the efficiency ofthe operation. Return must be adequate for the firm to be able to achieve satisfactory profits for its owners. This ratio is an fiy*Tr*>nirof the firm's ability to withstand adverse conditions such as falling prices, rising costs, and declining sales. Sales to Net Working Capital is obtained by dividing net sales faynet working capital. Net working capital is c u r r e n t mmns current This relationship indicates whether a company is overtrading, or, conversely, carrying more liquid assets than needed for its volume. Each, industry can vary substantially, and it is necessary to compare a company with its peers to see if it is either overtrading an its available funds or being overly conservative. Companies with substantial sales gams often read, a level where their working capital becomes strained. Even if theymaintain an adequate total investment for the volume being generated (Assets to Sales)* that investment may be so centered in fixed assets or othernon- current items that ft is to amttnm miwrtng all current obligations without additional investment or reduction in sales. Sample Sine the nw»iigfof fimne in the sample and must be representative, or they will be unduly influenced by irregular figures from relatively few companies. The more than one m illion m m pM ine used as*a basis for Industry Norms allow far more than adequate sample sizes inmost cases. Solvency (Liquidity) mmm MMnts are significant in evaluating a company's ability to meet short- and long-term obligations. These figures are of prime interest to credit managers of commercial mmpnitej and iimtnniwig. The ratios used in this study included Quick Ratio, Current Ratio, Current to Net Worth, Current Liabilities to Inventory, Total Liabilities to Net Worth, and Fixed Asset to Net Worth. R eproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

Support refers to organizational polity as a major contributor to quality. If top management o ils for offering the public high-quality goods or services, appropriate policies will follow. If top management quality, low quality goods and services win probably result. If top management, by its plaices profit before quality, then poor quality iiccnmf^ acceptable and is almost guaranteed. Total liabilities to Net Worth is compnted by dividing total cuneot liabilities; pins long­ term and deferred liabilities; by net worth. The effect oflong-term (funded) debt on the c«w«pawy is by this ratio with.Current flabilities to Net Worth. This comparison,wfllpinpoint the relative size of long-term debt, which, if sizeable, can burden a firm with nrf«e*«rffai interest In general, total liabilities shouldn't exceed net worth (100%), since; in.such cases, creditors have more at stake than owners. I* Upper Quartile is considered to be the best condition, far a firm in a given Category. Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

ACRONYM I1ST The following acronyms have been used throughout the body of this dissertation: A/S : Assets to Safes ' AP/S : Accounts Payable to Sales - C : Numberof Groups CL/NW: Quxeat Liabilities to Net Worth. CL/I : Cunent Liabilities to Inventory • CP : Collection Period CVR : The Critical Value Tables of the Mann-Whitney CJTest df : Degree of Freedom FA/NW: Fixed Assets to Net Worth Ha : Alternative Hypothesis HC : Human Capital Ho : Null Hypothesis HRA : Human Resource Accounting HRM : Human Resource Management K : The Kruskal-WaUis K Test M : Mean n : Total Number of Items NA : N Analysis equals to N(N + 1) / 2 n l : Number in Group 1 n2 : Number in Group 2 NS/I : Net Sates to Inventory nj : Number of Rems in a Group SD ' : Standard Deviation S/NWC: Sates to Net Working Capital Tj : Total of Ranks in a Group TL/NW : Total Assets to Net Worth Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

QR Quick Ratio RA Return, on.Assets RNW Return oa Net Worth RS Return cm.Sales W1 The Sum.of the Ranks of Values in Group 1 U The U Value of the Marm-Whitney U Test Z Z Value I- ii i _____ Reproduced with permission o f the copyright owner. Further reproduction prohibited w ithout permission.

NOTE: Questions and the design format for the Restaurant Management Survey were developed primarily from the structured survey presented in Jack Herberts' (1970) \"The Economics of Homan Capital: A Theory For Success* and a suggested interview questions and format from the Personnel Department of Skfflems Drags (1966). Additionally, the Researcher has discovered Out several other organizations have used similar cultural surveys. APPENDIX A Appendix A-l: Restanrant (Unit) Management Survey Forms, a2-«5 Appendix A-2: Restaurant (Unit) Management Survey Score Sheets, a6ndl la Reproduced with permission o f the copyright owner. Further reproduction prohibited w ithout permission.

APPENDIX A-l: RESTAURANT (UNIT) MANAGEMENT CULTURAL SURVEY Instructions: Please respond to this survey by circling a number indicating whether you strongly agree (5), agree (4), somewhat agree (3), somewhat disagree (2), or strongly disagree (1) with (he following statements. 1. Top management seeks foodback from all levels within the organization. 5 4 3 2 1 2. The management style of top management Is more democratic than 54 3 2 1 dictatorial 3. Top management is more likely to cut coats by increasing productivity 54 3 2 1 than fay laying off employees. 4. Top management encourages new ideas from unit level managers. 5 43 2 1 5. The management style of regional managers is more democratic 5 43 2 1 than dictatorial 6. Regional managers seek feedback from unit level managers. 5 43 2 1 7. Regional managers encourage new ideas from unit level managers. 5 43 2 1 8. Regional managers have been trained in management 5 43 2 1 techniques. 9. The management style of district managers is more democratic 5 43 2 1 than dictatorial. 10. District managers seek feedback from unit level managers. 5 43 2 1 11. District managers encourage unit level managers to develop new 5 43 2 1 ideas. 12. District managers have been trained in management techniques. 5 43 2 1 13. XXX requires members of different regions, districts, and units to 5 43 21 worktogether on Joint projects. 14. Power within XXXis distributed fairly among regional managers. 5 43 21 15. Power within XXXat the regional level is distributed among district 5 43 21 managers. 5 43 21 16. The regional training manager communicates effectively with the regional manager, district managers, and unit level managers. 2a Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

17. XXXhas the resources to publicize the unit's quality management 5 4 3 21 program. 5 43 2 1 5 4 32 1 18. Top management supports the idea of developing employee 5 43 2 1 pftbl«n-»Mn$ groups. 5 43 2 1 19. Top management will publicly support a unit level quality management 5 43 2 1 program. 5 43 2 1 5 43 2 1 20. Top management will supply the time, expertise, and funds to 5 43 2 1 implement and maintain a quaflty managomont program. 5 43 2 1 21. Ifthe quality managomont program is successful on the regional 5 43 2 1 management level, top management will implement the system 5 43 2 1 at all levels within the organization. 5 43 2 1 5 43 2 1 22. Top management will wait one to three years for a significant 5 43 2 1 return on investment In a quality management program. 5 43 2 1 23. Top management will fund job training programs. 24. Regional management wfll wait one year before evaluating the success of a quality management program. 25. Within specified limitations, the regional manager will aflow employee problem-solving groups to select and solve problems which they identify. 26. The regional manager is receptive to new ideas from staff members or unit level managers. 27. The policies of Hie top management are known throughout XXX. 28. The policies of the regional manager are consistent with policies of top management 29. The regional manager keeps district managers and unit level managers Informed on matters concerning XXXand the region. 30. District managers keep unit level managers informed on matters concerning the district and the unit 31. Step-by-step job breakdowns have been written for positions within XXX (top management down to crew member.) 32. District managers understand their responsibilities and what is expected of them. 3a Reproduced w ith permission of the copyright owner. Further reproduction prohibited w ithout permission.

33. XXX's policy regarding salaries and wages is dearly defined. 5 43 2 1 5 43 2 1 34. Unit level managers understand their responsfolHtles and what 5 43 21 is expected of them. 5 43 21 5 43 2 1 35. Regional and district managers use established criteria to 5 43 2 1 evaluate the job performance of unit level managers. 5 43 2 1 5 43 21 36. Unit level managers are satisfied with the amount of Information 5 43 2 1 which they receive. 54 3 2 1 37. XXX has a history of effective job training programs. 54 3 2 1 54 3 2 1 38. XXXcurrently provides training for unit level managers. 54 3 2 1 5 43 21 39. XXXoffers an educational benefits program that pays for job- 54 3 2 1 related instruction. 5 43 21 5 4 3 21 40. The unit consistently evaluates productivity, absenteeism, turnover, and guest feedback. 41. Regional managers, district managers, and unit level managers within the organization have the ability to Identify and solve problems relating to their work areas. 42. Top management defines the basic goals of the unit 43. All levels within the organization are free to determine their own means to reach the goals of the unit 44. Regional and district managers strive to balance short-term and long-term goals. 45. Regional and district managers encourage unit level managers to participate in making decisions. 46. Regional and district managers actively participate in making upper management decisions. 47. District and unit level managers establish and document work methods and goals. 48. Managers within the unit can successfully develop employee problem- solving groups. 49. There are informal leaders within the organization that do not occupy management positions. 4a R eproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

50. The regional, district, and unit organizations respond well to change. 5 43 2 1 5 43 2 1 51. Recognition systems within the region, district, and unit are tailor- 5 43 2 1 made to suit unit levd manager's needs. 5 43 2 1 52. A unit level manager suggestion system is used effectively at the 5 43 2 1 regional, district, and unit levels. 5 43 2 1 5 43 2 1 53. There is an employee awards program a t the unit level 5 43 2 1 54. XXXproduces a monthly newsletter. 55. XXXoffers an employee recreation and fitness program. 5 43 2 1 56. The unit provides the employee a time and place to eat their 5 43 2 1 meals and/or take breaks. 57. There are sat procedures by which to communicate the goals of the company to all levels within XXX. 58. Regional, district, and unit management consistently measures how wel the unit accomplishes its goals. 59. Unit level managers understand the mission statement of the organization. Survey Definitions Units: Restaurants Unit Level Managers: Restaurant Managers Top Managers: Corporate Chief Administrative Officers Upper Miinagers: Regional and District Managers Quality Management Program: Total Quality Management Program 5a ! Reproduced with permission o f the copyright owner. Further reproduction prohibited w ithout permission.

APPENDIX A-2: UNIT MANAGEMENT SURVEY SCORE SHEET L ORGANIZATIONAL RELATIONSHIPS Tap rw uiw r o_ f* MLCBaaBii Total Sooie (1) 5 4 3 2 I Potato q-I q-2 q-3 q-* Total Secdon Potato Secdon Mean.Soon (2) Total NRliUi—IIiILU■i■l Of Point* 5432 1 Score (1) q-5 Total q-6 Potato Soctlon Moon Seore (2) ■_ q-7 q-8 Number of Moan Managon Score Total Soctlon Potato Section Moan Score (2) M alvl MsBBwnvnt 543 2 1 q-» q-10 q-11 q-12 Total Soetion Potato 6a Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

Total Number of Mean 3 2 1 Points Managers Score q-13 Total Section Points _____ Section Mean Score ■ q-14 q-15 RELAHONSMP MEAN SCORE ( 3 ) - ___ q-16 IL ORGANIZATIONAL SUPPORT 5 q-17 43 Total Number of Mean q«18 2 1 Points Managers Score q-18 q-20 q-21 q-22 q-23 Total Section Points _____ Section Mean Score « . Regional Iflanogsr q-24 ___ ___ ___ ____ ___ ____ _______ __ q-25 . ___ ___ ___ ___ ___ ____ _______ __ q-26 „_ ___ ___ ___ ____ _______ __ Total Section Points _____ Section Mean Score i SUPPORT MEAN SCORE-______ 7a Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

HI. ORGANIZATIONAL COMMUNICATIONS Communication Flow 54 3 Total Number of 2 1 Points Manage re Score q-27 q*28 q*29 q-30 Total Section Points Section Mean Score « Training, Development, and Evaluation Systems 643 Total Number of Score 2 1 Points Managers q-31 q-32 q-33 q-34 q-35 q-36 q-37 q*38 q*39 q-40 q-4i Section Mean Score ■ Total Section Points ORGANIZATIONAL COMMUNICATION MEAN SCORE ■ 8a Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

IV. OftGAMZAHOfiAL OPERATIONS Total Numberof Mean 4 3 2 1 Points Managers Score q-42 q-43 Section Meen Score i q-44 q-45 q-46 q-47 Total Section Points 543 Total Number of Mean 2 1 Points Managers Score q*4« __________ Section Mean Score < Number of Moan q-49 ___ ___ Managers Seore q - 5 0 ________ Section Mean Score < Total Section Points Benefits/Rewards 543 ToM 2 1 Points q*51 q-52 q-53 q-64 q-55 q-56 Total Section Points 9a Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

Policy Planning 54 3 Total Numbor of Moan 2 1 Points Managers Score q - 5 7 ____________ _______________ _______ _____ q - 5 8 ______________ _________________ ________ ______ q - 6 9 ______________ _________________ ________ ______ Total Soctlon Points _____ Section Mean Score ■ __________ ORGANIZATIONAL OPERATIONS MEAN SCORE - _________ RESTAURANTMANAGEMENTCULTURAL SURVEY MEAN SCORES ORGAMZATIONAL RELATMNSMPS - _____________________ ORGAMZATIONAL SUPPORT - ______________________ ORGAMZATIONAL COMMUNGATIONS - _____________________ ORGAMZATIONAL OPERATIONS - ______________________ TOTAL SURVEY SCORE - Total Points (dhr. by) Number offStMsmonte (dhr. by) Number off Managers ■ ______________ Special Survey Notes 1. The mean score for e statement was computed by rfvhfng the total points by the number of managers responcbng to the statement 2. The section mean score was computed by divicSng the total points for the section by the number of statements in the section and by the number of managers reeponcKng to statements. 3. The port mean score is computed by dMdng the total points for the parts by the number of statements in the part and by the number of managers responding to the statement 4. div. by • rfivided by 10a Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

NOTE; Methods for calculating the restaurant management survey mean scores came from several graduate courses taken at the University of Dallas from 1977 - 1980. APPENDIX B Table 1 Restaurant Management Cultural Survey Mean Scores: b2-b3 Table 2 Acceptable Range Chart for Selected Financial Ratios: M-b5 Table 3 Ratio Value Table (Target Company): b6 lb \\ Reproduced with permission o f the copyright owner. Further reproduction prohibited w ithout permission.

A ppindk B Table 1 L ORQAMZAHONAL RELAHONSHPS 1995 ita s 1667 Section Scores: Top Management (4 q.)* 1.63 1.67 1.66 Regional Management (4 q.)** 2.15 2.11 1.95 District Management (4 q.) 1.64 1.63 1.60 he vttsae vra^ on rmv smn ieumnmiomBmlitontiiws Miw at s.iir 2.S2 238 Total Part Soore*** 254 154 157 9. ORQAMZAHONAL SUPPORT 1.77 1.86 1.77 9B^mOn 9wOlww« 121 L§2 1M Top Management (7 q.) Regional Management (3 q.) 1.75 1.76 1.67 Total Part Score ML ORGAMZATIONAL 00MMUMCAT10N8 2.79 2.11 2.05 2 J0 221 2.60 9V«m DMVi* 257 255 2.45 Cw womi i emi i euenn iuceeNtinonns sFnlor *wr Mi w a ii i » i TraMng/DeveiopmenVEvaluafion (11 q.) Total Part Soore IV. ORQAMZAHONAL OPERATIONS 2.33 1.92 1.79 Empowerment (6q.) 1.66 1.42 1.36 InKalive (3 q.) 1.82 1.64 1.57 Benefits/Rewards (6 q.) PoRcy Planning (3 q.) 23* 221 2.64 Total Part Soore 2.11 158 1.79 Total Survey Score**\"* 222 2.05 157 ■The mean score of the statement was computed by dMcfing the total points by the number of BKiviuuiw iBsponongio m iM n w iiv **The sectk>n mean soore was computed by dividing the total points for the section by 9ie number of statements in the section and by the number of indMduale responding to the statements. ***The total part mean score was computed by dhridng the total points for the part by the number of statements in part and by the number of MMdUals reepondtog to the statements. ****7he total survey mean score was computed by cHvfcfing total points by number of statements and 2b Reproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w ithout permission.

then dhrfdng that answer by the number of imfviduals. Number of Parts to Survey: 4 Number of Sections in Survey: 12 Numberof Questions in Survey: SO Numberof Sunrey Respondents: 1886 * 63 1086*77 1087 * 75 1067*20% Percent of Unit Level Managers: 1066*18% 1866*21% Typee of Managers 1866 1866 1067 Unit Managers First Assistant Managers 8 12 15 Second Assistant Managers Shift Managers 12 15 8 Unit Trainers Total Managers 18 21 23 14 18 21 __ i 10 7 63 77 75 Pofnt Statement Scores: Seore Grade 5 A Condition Indteatad 4 B Strongly Agree (Excellent) 3 C Agree (Very Good) 2 D Sometime* Agree (Positive) Sometimes Disagree (Fair) 1 E Strongly Disagree (Needs Attention andfor Major Problems Exist) 3b Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

F Appendix B Table 2 An Acceptable Range C h it for Selected flnondel tem ple fleelauiente IMS, ISM, end 1M7 Rootourcnt temple She (SIC 5612 aeMnj pbeaa) 1965 1,763 Recteurenta 1966 2,061 Recteurenta 1967 2,155 neeteuienta Point Velue 543 21 Solvency 1.6 - 1.4 1.4- 1.0 1.0 • .6 .6 -.4 .4 -6 2 .5 - 2.0 2 .0 -1 6 1 6 -.6 .6 -.6 QR 26 - 2.5 17.6 - 37.4 37.4 - 66.6 66.6 • 93.4 93.4 • 112.5 CR 13.4- 7.6 270-311 CL/NW 106 • 148 146 -270 70-100 311 -520 520 - 525 CU1 27 -33 33 -70 100-173 173 - 227 TL/NW 45 -54 54 -75 75-99 99-160 160-190 FA/NW 0-2.1 2.1 - 4.7 4.7 - 6.6 5.5-11.6 11.6-13.5 Efficiency 107-93 93-62 62-55 55-34 34-32 18-20 20-32 32-34 34-55 55-62 CP 45-36 36-20 20-17 9-8 S/I 1.1 - 1.4 1 .4 -2 6 17-9 4.3 • 4.7 A/S 2.6 • 2.7 2.7 - 4.3 S/NWC AP/S 9.2 • 8.6 8.6 • 4.2 4 6 • 3.6 3.6- 1.1 1.1 - .6 27.6 • 18.6 16.6 • 9.4 9.4 • 7.3 7.3 - 2.6 26-5 Profltabitty 47.9 • 43.0 43.0 • 19.3 19.3 • 15.1 15.1 -6 6 6 6 • 3.1 RS RA RNW 4b Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

CondMon Indterttd Score Grade Upper QuartHe (Excellent) 5A MkJdte Upper QuertHe 4B Mid-Point (Roeiflve) 3C Middto LowerQuartite 20 Louver Quaitle (Needs Attention) 1E Major Problems Exist 0F Note: Score* which tel outside of aoceptabie ranges are valued at *0*. Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

Raffoe Target Company A Redo VWue Table for IMS, IMS, m d 1967 Solvency IMS ISM 18S7 QR CR 0.1aO 0.0-0 0.7-3 ■ CL/NW 0.6-0 1.0-2 CL/I 19.1-4 0.4-0 242-4 TL/NW 614.0-0 19.3-4 699.0-0 FA/NWC 64.6-4 660.0-0 60.6-4 Solvency Mean MU-4 37.2-4 1X>9-9 Efficiency 123 14A firt.- CP 1.67 220 s/i 0.0-5 0.0-6 0.0-6 76.6-4 78.6-4 64.3-4 A/S 69.3-0 66.1-0 67.7-0 S/NWC Neg-0 Neg-0 Neg-0 AP/S 6.3-0 6M 6M Efficiency Mean 12 1.8 12 PfofltaMlty 2.0-2 42-4 62-4 RS 3 .0 ^ 7M 6.1-3 RA RNW ajhs 1.M . J&9-2 Piofitabffty Mean 1.79 226 6b i Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

I NOTE: Questions far the exit interviews and Senior Restaurant Management Open-ended interviews were developed from a list of suggested questions from the Personnel Department of Slatterns Drugs dated July 1966. APPENDIX C Table 1: Exit Interviews, c2<5 Table 2: Senior Restaurant Management Open-Ended Interviews, c6 lc Reproduced with permission o f the copyright owner. Further reproduction prohibited w ithout permission.

Appendix C, Table 1 Exit Interviews 10/1/84 - 2/24/87 (28 Restaurant Managers) 1. What did you need to do your Job with pride and to do the best ofyour ability? \"Well trained co-workers and caring supervisors.' \"The respect of regional managers to know that they coold came to me if needed and for them to know that they coold count on me.' \"Both a competent staff and management team to work with.' 'Needed good working setting.' 'A pleasant working setting.' 'More cooperation and communication between fellow employees and the regional management staff with which we work closely and are likened to.' 'Need more support from regional management staff.' 2. As a former member of a Unit Level Management Team, what exactly did yon do at your Job? \"Put out fives between employees and other managers.* 'Controlled service quality and product quality.' Trained crew members and new assistant managers, shift managers, and unit trainers.' Tried to keep customers coming back.* 'I worked every area of the unit.* Tried to enforce company policies while being ordered to violate franchise product quality standards.' 3. What were your overall goals as a professional in your Job, and did yon reach them? T o try to keep the unit clean and do the bestjob I can. Sometimes.' \"Develop a better inventory control system. Yes, but never allowed to implement it' \"Do the job effectively. Yes, but never recognized for improving the situation.' T o please the customers and regional management I pleased the customers but never upper management even though my profit and sales per square foot were the best in the region.' T o get better training to become more proficient. Once I reached the level of Unit Manager, my district manager would not give me additional time to get training from a school in the area, even at my own expense.' T o move up the ladder. No! My age and sex were wrong.' T o do the job to the best of my ability. I was never allowed to become the best that I could be\" 4. What did you hope U>gain by working as a unit level manager? 2c Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

\"Experience to farther my individual goals.* \"To make my job and someone else's easier. To help both management and customers as much as my ability allows and advancement in the future.* *More sense of confidence and a stronger leadership ability. I learned a lot about human behavior and management styles. I learned how not to manage from watching the failings ofboth,the regional manager and district manager* \"The experience of working and meeting different people and learning how to deal with each, individual.\" \"Knowledge, understanding, and experience of what makes a last food restaurant work.* 'A future.* \"Job security* 5. What were the obstacles that kept yon from performing your Job to the best of your ability? \"When I did not have enough people present to serve the customer.* \"When repair orders would not be responded to in a timely maimer.* \"Not being able to get answers to questions right away* \"Little time to spend with my family. Working 60 to 70 hours per week.\" \"Lack of communication between managers within the unit, district, and region. Policies and procedures not always defined or followed by everyone, while they kept changing to meet each situation.' \"Lack of team work and delays in receiving information.* 6. What would have made you proud and enthusiastic about your job? \"That I would be properly paid for the work that I did, both on and off the clock.\" \"That management would occasionally approve of my work.\" \"That the district manager and regional manager not only treat me as a person, but a professional.* \"Better employee benefits.* \"Better compensation.\" \"That they give raises based on the job done and not on friendship.* \"That promotions and raises be based solely on how well the job is performed.* •Job security* \"Better communication.* 7. Could you communicate with the regional management staff? If not, why not? \"No, the problem develops when regional management staff takes too much time to give an answer to a problem.* \"No, with the exception of the regional personnel director, they are either unwilling to listen or uninterested in what others have to say.* \"No, personality.\" \"No, they don't seem to be really interested in what I have to say.* 3c Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

\"No, they are closed-minded, egotistical, and not respected by those who try hard to perform their duties with pride.' \"No, the majority are opinionated, and I felt it would hinder my fbture with the company should I disagree with them or even ask them to explain their decisions.* 8. Did you feel important In your Job? Seventeen respondents said: 'N o.' Two respondents said: \"Yes.' Three respondents said: *Never.' Six respondents said: 'Sometimes.* 9. Was better communication needed among the employees of the unit? If so, what coold have been done to improve commnnicatfcHi? 'Yes, because of pressures from regional management staff, meetings (employee) were not encouraged outside of the sh ift' 'Yes, a better understanding of each job; what was expected and how each job affected the others within the unit. More employee training.' 'Yes, better employee srfmrfnifng and training.' \"Yes, Unit Level Employee meetings.' 10. When did yon look forward to coming to work? Fifteen respondents said: \"Never.' Nine respondents said: 'Sometimes.' Four respondents said: 'Always,' or 'D aily.' 11. When did yon feel a sense of accomplishment at your job? Fourteen respondents said: \"Never.' \"When I leave in the evening, I feel as if I have done a good job.' 'A t the end of my shift. It makes me feel good when I have put forth my best effort.' 'After a hectic day and a goodjob is acknowledged by my boss.* \"When it was a challenge and the challenge was met, and I was acknowledged.* 12. What coold have been done to ran the unit better? \"Better employee training.' \"Better manager training.\" - \"Delegation of jobs to employees based on their skills.' \"Pay more attention to subordinates and their needs.\" \"Keep the equipment current and repaired.' \"Plan for success not far failure. Regional managers always assume that unit managers will fail.\" \"Do ensure that all unit level employees fed that they have job security.' 'Allow all unit level employees to feel that they have a future [with the company] 4c Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

if they do a goodjob.* \"Allow communications to be both ways.* Additional Comments Top management must reduce employee turnover while improving employee training-* *RegionaI management most allow its unit managers to take an active role in improving service quality and product quality.* *Build a strong quality service program.* “Don't ask your unit managers to lie about conditions within the region to top management or the franchiser* \"Don't ask your managers to manipulate store income, inventory, or coupon \"Focus on the need for change even if it means destroying the 'good old boy' network.' \"Allow managers to advance themselves, regardless of age or gender. Base pay an work performed, not who you know.\" \"Do not force unit managers to work off die clock.* \"Increase employee benefits.* \"Give the unit level managers the autonomy necessary to run their units.* \"Let's discuss our problems and not hide them.\" Two-way communication program, in place. Increase two-way communications between managers at all levels.\" Results of open-ended interviews The interviews found four major problem areas within the Southern region: 1. A lack of communications and relationships between upper level managers (regional and district) and unit level managers, and a lack of communications and relationships between unit level managers (managers assigned to the same unit). 2. A lack of support from upper management (regional and district). 3. A lack of communications flow between unit level managers (managers assigned to the same unit), unit level managers and regional managers (regional and district), and a very poor evaluation system. 4. A lack of opportunities and benefits. 5c i Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

Appendix C, Table 2 ■ M W W W W W l M W W W W a a W M — M W M lg W B W W M W lC T a S W B lg B g Senior Restaurant Management Open-Ended Interviews 1985-1987 Employed at XXX at least 7 Years Number of Managers Interviewed: 15 Identified Problem Areas 1980-1987 Ranked in Order •What are tbe six major problem areas within the Southern region which you believe affect product quality and/br service quality? 1. Lack of opportunities and very poor benefits. (13) 2. Lack of rapport between unit managers and regional managers. (12) 3. Very poor employee evaluation system. (11) 4. Employee turnover problems. (10) 5. Poor employee training. (9) 6. No employee problem solving teams. (8) 7. Lack of autonomy at unit level. (7) 8. Lack of family time. (6) 9. Lack of agreed-upon, standards. Poor product quality and poor service quality. (5) 10. Autocratic regional management. (4) 11. Poor equipment and property maintenance. (3) 12. Lack of communication between unit level employees. (2) •How long have the problems which you have described existed? 1. Nine respondents indicated more than seven years. 2. Pour respondents indicated at least six years. 3. Two respondents indicated five years or less. •How would you Improve tbe situation? 1. Four respondents indicated that they did not believe the situation could be improved with the current leadership. 2. Five respondents believed that the situations could improve with the re-training of managers throughout the Southern region (including regional and district management positions). 3. Three respondents indicated that quality standards must be enforced. 4. Three respondents indicated that problem solving teams should be established. 6c Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.

Note: This ranking reflects many of the problems which, the reaeawhrr observed between 1984 and 1987. Additionally, this ranking reflects conditions found in the restannnl HMMgemen* surveys o f 1985, 1986, and 1987. The rank order was determined from the interviews and came from die restaurant managers. 7c Reproduced with permission of the copyright owner. Further reproduction prohibited w ithout permission.