Key information about The Fachetti Group PDF

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Key information about The Fachetti Group: -

The Fachetti Group was previously made up of two divisions; the restaurant division and the manufacturing division. Fabio Fachetti owns the business and he is a famous celebrity chef and TV presenter who is well known for his innovative Italian recipes.

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Katrina Szynalski was the divisional manager for the restaurant division, having 20 years of experience in Fabio's most successful restaurant

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Sunny Elder is the divisional manager for the manufacturing division

The restaurant division: (Division was closed down after Fabio's plan was implemented) -

Katrina Szynalski was the divisional manager

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The restaurant division was a collection of luxury restaurants in the UK's major cities

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In 2020 when many restaurants closed down due to the pandemic, Fabio opened up his restaurants to take home delivery orders.

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Despite the good performance, Fabio was worried that some of his restaurants wouldn't survive the closure and discussed their permanent closure.

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After Fabio read Sunny's proposal which stated that the restaurants were no longer viable, he laid out plans for the future of the business, which included that the restaurants were to close with immediate effect, Katrina would become the deputy manager of the manufacturing division, all 15 head chefs were offered positions as quality inspectors and offer restaurant staff could apply for jobs in the factories.

The manufacturing division: -

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Sunny Elder is the divisional manager This division consists of factories that produce gourmet chilled Italian meals The meals are sold to many of the UK's major supermarkets (B2B - Business to Business) These meals are high quality and are sold at a premium price under the Fachetti's Kitchen brand, showing that they have a luxury brand image Under Fabio's new plan two new factories will be opened, showing that the division is expanding and there is more focus on being a supplier to the major supermarkets.

How the workforce is currently motivated: (Learning Aim D) -

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Staff are given bonuses when they hit their targets Bonuses are an example of a financial motivator In the case study, there are lots of references to a high remuneration which means that Taylor's Scientific Management motivational theorem is being used This fits in with Sunny's beliefs and behaviour towards staff as he uses an X-Theory where staff are only motivated through pay and should be told what to do Taylorism can cause other factors that motivate employees to be overlooked, leaving the higher levels of Maslow's Hierarchy of Needs unfulfilled.

The strategic objectives The strategic objective only applies to Fanchetti kitchen and are linked to figure 3 Fabio has set the following goals for Fachetti kitchen: -

Zero defect production Reduce staff turnover to January 2020 levels Increase net profit by 10%

Zero defect production -

The model aims to reduce and minimise defects in the production process In the Fachetti's Kitchen division, this means to produce the maximum number of meals, with the minimum number of defects An advantage of zero defects is that net profit will increase as if there are fewer defects, fewer materials are wasted Zero defects also increase customer satisfaction as the meals that they buy from Fachetti's Kitchen will be of higher quality builds up brand reputation and can increase customer loyalty However, a criticism of this model is that there needs to be a highly skilled workforce therefore staff will likely have to be trained which can be very expensive.

Reduce staff turnover to January 2020 levels: (Figure 3) -

Staff turnover is the percentage of employees that leave a business over a certain period of time The higher the rate of staff turnover, the worse it is for the business, as it shows that lots of staff are quitting their jobs High staff turnover means that there is a poor working environment which may be caused by poor relationships, conflicts or low pay

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High staff turnover can reduce net profit as the business has to spend more money on recruiting staff in order to fill gaps in the workforce In January 2020 the staff turnover rate was 12%, however, in September 2020 it is 22% For this goal to be achieved, staff turnover needs to be reduced by 10%

Increase net profit by 10%: -

Net profit is the final amount of money that the business makes, after deducting all costs and expenses Having a sufficient level of net profit is important because it will make the business financially stable and able to cover debts, this is even more important considering the pandemic In table 3 the current net profit in September 2020 is £11.2 million, Fabio's goal states that this should be increased by 10% £11.2 million x 1.10 = £12.32 million, so net profit needs to be increased by £1.12 million in order for this goal to be achieved.

Katrina VS Sunny - The conflicts in management (Learning Aim B and D) There is a management clash between Katrina and Sunny. Katrina uses a democratic management style where she regularly consults with employees, cares for them and encourages their input. On the leadership continuum, he is further right as she 'consults' with employees which would put her behavior as high supportive, low directive Her management style is linked to McGregor's Y-Theory. Whereas Sunny uses an autocratic management style with a strict set of rules that he expects his employees to fully adhere to and very rarely asks for their input. On the leadership ontinuum, he is far left as he 'tells' his employees what to do which means his behaviour is low supportive, high directive. This links to McGregor's X-Theory. As Sunny and Katrina have different views on how employees should be managed, this will obviously lead to a lot of conflicts. For example,

Katrina believes that Sunny's autocratic style limits his creativity and that he lacks compassion for his staff and Sunny believes that Katrina's democratic style means that she cares too much about the opinions and needs of staff at the expense of profit and cash flow This will become a significantly larger problem in the future because they both have to work closely as divisional manager (Sunny) and deputy divisional manager (Katrina) for the manufacturing division. If there are further conflicts then it will create a poor working environment which can increase the level of staff turnover, negatively impacting the strategic objectives.

Action centred leadership model: (Learning Aim A) The action centred leadership model was developed by John Adair and shows the core actions a business must focus on and balance in order to lead the workforce efficiently. The core components include; managing and developing the team, managing and developing the individual and achieving the task. If too much focus is placed on one of the components then it will lead to an imbalance and other core components will be neglected. For example, if a manager is focused on solely achieving the task, then they will overlook the needs of the team and individual, which will lead to demotivation, lower productivity and overall, a decrease in efficiency. Therefore, the three components should be balanced in order to ensure the efficiency of the business. Katrina focuses too much on managing and developing the team and individual, and achieving the task is overlooked. Sunny focuses too much on achieving the task that the needs of the team and individual are overlooked. The proposal/solution for this problem is to switch to a Paternalistic management/leadership style because it has characteristics of an autocratic and democratic style as staff are still 3 consulted for their

opinions, however, the manager still gets the final say in the decisionmaking process. The Paternalistic style also reduces staff turnover because it operates more like a family unit with staff being engaged and feeling valued. As this style draws characteristics from the autocratic and democratic styles it means that there is a common ground between Katrina and Sunny which will result in fewer conflicts.

Introduction Over the last few years, Fachetti's restaurants and Fachetti's Kitchen brands have had to operate in difficult socioeconomic and political environments. Customers are eating out less because of the numerous social gathering restrictions that were put in place to stop the spread of COVID-19. As with most businesses in the restaurant and hospitality industry in the UK, revenues have generally plummeted due to low patronage by customers eating out less because of the numerous social gathering restrictions that were put in place to stop the spread of the 2019 coronavirus. Due to these considerations, as well as the high production costs of Fachetti's restaurants. The Fachetti Group was obliged to make modifications to its business operations and management structures. This report examines and analyses internal business operations and management concerns, as well as some external issues that contributed to the company's adjustments. The paper goes on to describe and discuss Fachetti's Kitchen's current production, quality, and human resources management issues. The report would include recommendations on management styles and skills, motivation and

reward systems, as well as change and quality assurance management tactics that the company might adopt to resolve and improve its current issues.

There is a clash between Katrina Szynalski the deputy divisional manager of the manufacturing division and Sunny Elder the divisional manager of the manufacturing division. This clash arises because both managers have different beliefs and behaviours towards management. Katrina uses a Democratic leadership style where she is compassionate about her staff, consulting with them and encouraging their input in decision making. The benefit to her using this approach is that her subordinates feel naturally engaged and valued because she is asking for their direct input in decisions. However, a disadvantage to this approach is that decisions can take a lot longer to make as each employee has to be consulted for their opinions On the leadership continuum created by Tannenbaum and Schmidt, she is further right at the consulting' stage which puts her behaviour as a high supportive and low directive This links to McGregor's Y-Theory because it is likely that Katrina believes that employees like working and facing challenges. On the other hand, Sunny uses an Autocratic management style where there is a strict set of rules that staff must follow and they are rarely asked for their input. The advantage of this style is that all decisions are made by Sunny; a fully qualified and experienced manager who fully understands the businesses goals and can make decisions corresponding to them. However, in the long run, and Autocratic style can cause higher staff turnover because it creates a poor working environment and relationship between management and employees causing them to not want to work at The Fachetti Group anymore. Sunny's behaviours put him at the left of the leadership continuum at the 'telling' stage as he used a high directive and low supportive approach. This links to McGregor's X-Theory where managers believe employees to be inherently lazy and therefore should follow a strict set of rules created by an Autocratic manager

As both managers have different beliefs and behaviours towards how employees should be managed, this will obviously cause a lot of conflicts. For example, Katrina believes that Sunny's Autocratic style limits staff creativity and that he lacks compassion for employees, whereas Sunny believes that Katrina's Democratic style means that she cares too much about employees at the expense of profit and cash flow. This clash will become even more pronounced in the future as under Fabio's new plan both Katrina and Sunny are closely working together in the manufacturing division and with the distinct difference in their management style, further conflicts will cause a poor working environment for subordinates as if there are conflicts, functions of management such as coordinating and organising cannot be used successfully which will result in a higher level of staff turnover which worsens the strategic objectives. Higher staff turnover will mean that The Fachetti Group has to spend more on recruiting which will increase costs and further reduce net profit. Recommendation The Fachetti Group should implement a Paternalistic management and leadership style to resolve the conflict between Sunny Elder the divisional manager and Katrina Szynalski the deputy divisional manager of the Fachettis Kitchen manufacturing division. A Paternalistic style involves consulting subordinates for their opinions which has the advantage of making them feel engaged and valued, which would align with Katrina's beliefs. However, the manager still gets the final say in the decision-making process which has the advantage of still being able to make decisions with expertise and clear correspondence to the businesses objectives which would satisfy Sunny's view to management. The Paternalistic management and leadership style makes a workforce operate as a family unit, hence the paternal' in its name This will benefit the strategic objective of reducing staff turnover to January 2020 levels because there will be fewer conflicts between Katrina and Sunny as the Paternalistic style takes characteristics from both Democratic and Autocratic approaches which will create a common ground of agreement to how employees should be managed. This will create a positive working environment as employees feel valued and engaged as decisions are made in their best interest which subsequently reduces the level of staff turnover....