Three staff on a dead Sunday is payroll with nothing to do. One staffer on a festival Saturday is a line walking away. Most of managing a crew is matching people to the day.
Learning objectives. After this week you can (1) apply the four functions of management; (2) describe structure, span of control and delegation; and (3) use basic staffing and motivation ideas, and measure labor as a percent of revenue.
Remember this: plan the crew for the day you expect, then read the report and correct.
1) The four functions of management
Planning → Organizing → Leading → Controlling
- Planning: set goals and decide how to reach them ("450 units tomorrow").
- Organizing: arrange people and resources to carry out the plan.
- Leading: motivate and direct the crew.
- Controlling: compare results with the goal and correct course.
2) Structure and delegation
An organizational structure says who reports to whom. A flat organization has few layers of managers; a wider span of control means one manager supervises more people. Delegation hands tasks and authority to others so a manager can do more than one person could.
3) Staffing and motivation
Human resources covers recruiting (attracting candidates), hiring, training and scheduling staff to match demand. Maslow's hierarchy ranks needs from the bottom up: physiological (food, rest), safety, social, esteem, and self-actualization. Pay meets the lower needs; recognition and growth meet the higher ones. Motivated people are more productive.
4) Labor cost as a percent of revenue
In the arena each staffer can serve up to 190 units a day and costs $200 a day from your wage account. Your report prints the real total as Wages paid. To compare days of different sizes, use a percent:
Labor % = Wages Paid ÷ Revenue × 100
A busy day paid $513 in wages on $2,731 of revenue: 513 ÷ 2,731 ≈ 18.8%. A quiet day paid $327 on $637.80: 51.3%. The quiet day's crew cost more than half of everything that came in.
Quick self-check
(a) Comparing actual sales with your target is which function? (b) Wages paid $400 on $1,600 of revenue: labor %? (c) Which of Maslow's needs sit at the bottom? (Answers: controlling; 25%; physiological needs such as food and rest.)
Common mistakes
- Mixing up planning and controlling. Planning sets the target; controlling checks it afterward.
- Staffing for an average day. Your days are not average; the crowd moves by district and weekday.
- Judging labor in dollars only. $500 of wages is cheap on a big day and heavy on a slow one.
This week in the arena
Find your busiest and your quietest day this week. For each, write down Staff, Utilization and labor %. Did the crew match the day? Report the two labor percentages side by side and say what they tell you.