Professional Documents
Culture Documents
March 2019
ABSTRACT
Title: Inadequate number of employees serving the target market: A case study of Hap Chan
No. of Pages:
Researcher:Angelo M. Espiritu
Degree Conferred:
Year:
INTRODUCTION
"Training Magazine," and "The Savannah Morning News" – “Forecasting staffing needs
is an element of strategic planning. Staffing levels affect many aspects of a business. Too
many employees drive up overhead and directly affect business profitability. Too few
employees limit the ability to serve current customers and grow the business.
Understaffing may make sense to the management team but have negative impact in the
long run”.
Hap Chan Teahouse is a showcase of the superior food quality and friendly
neighborhood service of the authentic Hong Kong Tea house. Starting out in 1997 as a
small tea house in Manila, and serving only the Filipino-Chinese favorites: Mami, congee
and dim sum. It began franchising its restaurant chain in 1999 through Hap Chan Trading
and Management Corporation and has slowly grown its menu.This case study seeks to
answer the following questions. Why do employers cut down employees despite of its
needs of adequate man power? How this dilemma affects its regular employees in facing
this kind of problem and its impact in delivering good customer satisfaction in serving the
Both product and service quality suffer when fewer employees are available to
serve customers especially in the food service industry. A small number of employees
must work rapidly in order to handle a higher volume of work, and errors increase when
quotas are stressed over quality. Employees may be rushed through training or begin
working without training to ease the workload. Poor quality over time decreases a
company’s reputation and drives away customers. Many companies cut down their
employees in order for them to reduce payroll and benefit costs, however, fewer
employees who now have to work overtime can be more expensive than hiring additional
full-time staff. The time regular employees spend training temporary staff and correcting
errors reduces productivity. Replacing temporary workers repeats the expensive hire-and-
train process.Inadequate number of employees serving the target market of Hap Chan
Restaurant will cover its entire effect to its employees and target market and what needs
to be done in order to address this kind of problem. Also, the gathered responses of its
This study aims to help Hap Chan Restaurant and the management in assessing
the quality of service provided and draw plans on meeting the customer’s needs and
number employees, the pros and cons of inadequate number of employees serving the
target market to achieve a positive customer experience and at the same time this will
surely help for the growth of the company and its people.
RELATED LITERATURE
The human resources aspect of a business is often its largest asset. This
Having a strategic plan for your staffing needs and decisions allows you to organize and
account for demands in personnel while keeping organizational goals and vision in the
forefront. Likewise, a strategic staffing plan aligns your company objectives with the
amount and type of personnel you need to obtain and sustain for those objectives (Carrie,
2008). Human resource professionals cite staffing as the top critical function in their role,
edge, HR professionals align talent acquisition with attractive benefits and compensation
to attract the top talent in the industry. This enables them to develop a strategic workforce
plan that meets business requirements. HR staffing issues usually involve deciding
known as workforce planning, provide you with a strategy to make certain that you have
an appropriate number of people with the right skill sets for your current and future
business goals. As you grow your business, using one or more of the four staffing
processes can help your business run more efficiently (Lynn, 1998).The first step to
strategic staffing is identifying needs. Assess what positions are crucial to the company's
overall functions. Distinguish between needs and wants. After critical positions are filled,
you can move on to ancillary posts. After you have pinpointed your needs, evaluate the
means to fill those positions. Depending on your financial situation, you may need to add,
remove or combine positions. Allocate the most time and money toward key staffing
needs first and move on from there (Carabelli, 2003).According to mitrefinch.org
to determine staffing needs. This requires looking at current and future needs and
responsibilities they will have in the organization. The staffing priorities are based on the
results the organization wants to achieve. Staffing in this way is advantageous in some
instances, but there are also drawbacks to the organizational staffing process
(Thibodeaux, 2019).The decisions you make about staffing your business can have
dramatic effects on the quality of your work, your retention rates and level of customer
service. Production and goals are at risk. Making appropriate staffing decisions is one of
the most important tasks for a manager or small business owner (Ray, 2019).Identifying
the needs of the company represents an important part of developing a staffing plan. This
can be accomplished by developing job descriptions to lay out the positions needed
employees within the organization can help you identify any shortcomings among the
staff. This continual feedback also helps identify the need to hire additional employees to
ensure the work is completed in an efficient manner without putting excessive strain on
your current employees (Long, 2019).Hiring enough people to efficiently run your
business will make customers feel like you respect their time and are committed to giving
them efficient, timely service. Even the best employees won’t perform to their full
potential if they are overworked or are trying to do the job of several people, which can
lead to irritability and impatience with both employees and customers. Evaluating your
staffing needs and making sure you have enough trained professionals in place to cover
regular shifts will help you deliver smooth, customer-friendly service(McQuerrey, 2018).
Developing an effective staffing strategy can keep your company out of bankruptcy.
Researching employment trends, workforce data and using current employment data to
create staffing models can ensure your business is productive and, ultimately, profitable
(Mayhew, 1995).Identify gaps within the organization. Determine if critical needs exist
that are not being met with current staffing levels or if any skill sets are needed which are
not possessed by any current employees of the company. Assess if the gaps can be filled
with internal actions such as transfers and cross training or whether external recruitment
efforts will be needed (Benjamin, 2008). Staffing plan is a well-thought-out road map for
ensuring your company is fully staffed, with the long-term goal of avoiding downtime or
loss in production due to retirement or other staff turnover. Staffing plans tend to vary
from one company to the next, depending on industry, size of the organization and
your business, but with careful planning and research, it is possible to have a pipeline of
talent ready to step in and fill vacancies as they occur (Peterson, 2007). The rule of
For example, if the organization has set up its structure to have one operations manager
per five line supervisors, then short term staffing will include keeping the same number
of supervisors when there is turnover. Long term staffing will include planning five
supervisors for every manager added. The rule of thumb calculation is not exacting or
based on in-depth analysis, but on maintaining the organizational structure (Cardenas,
2017).
Journalist Saheli S.R. Datta points out in CNN Money, "The standard economic measure
make operational improvements. Nor can you simply count the widgets they ship per
week, as factory managers do."But methods do exist for measuring your small business's
employee productivity. With a little creativity and number crunching, you will be able to
dividing a worker's actual output rate by the standard output rate and multiplying the
outcome by 100 percent. The standard output rate is a worker's normal rate of
performance or the volume of work a trained employee can produce per unit of time
using a prescribed method and with the usual effort and skills. As production efficiency
increases, production costs go down. The operations strategy, technology, job design and
process influence the rate of output as does the worker's skill and effort (Nordmeyer,
2018). Cutting back on staff levels may seem like an easy way to save the business
money, but be careful of running the risk of this only looking good on your balance
sheet for that particular month. The real repercussion of severely shrinking the size
of your workforce has a huge negative impact on your people (Ben, 2018). Handling
multiple jobs to compensate for understaffing not only increases an employee's workload,
but the additional responsibilities can intensify stress. This can happen if personnel aren't
familiar with their new responsibilities or when new duties prove too challenging. In
addition, employees might feel that others aren't pulling their weight to keep the
operation running smoothly. Heightened stress levels can cause dissension within the
organization and decrease productivity (Higuera, 2019).Is it aligned with the company's
reevaluate individual and team goals to ensure that each still maps to those of the
company (Michelman, 2003.The incentive can come in many forms. When you really
need your short-staffed team to pull something out of the bag, you could offer a financial
bonus to all staff that meet their objectives, or if the company as a whole meets certain
Keeping the right balance of long- and short-term staff is a key element of
running a successful and cost-effective business in today's market. With bottom lines
rising and profit margins shrinking for all but the largest businesses, the careful
management of each position on the payroll is essential to survival in many cases. The
proper blend of full-time, temp and freelance employees can help cover all of your
staffing needs while keeping costs down (Morello, 2002). Controlling labor costs
presents a significant financial challenge to small business owners. There must be enough
employees scheduled to serve customers and complete the company's work objectives,
but not so many that it drives up production costs unnecessarily or makes the product or
service too costly. Skilled owners and managers learn the art of demand forecasting so
they can accurately calculate manpower requirements and schedule the correct number of
employees -- neither too few to get the job done nor so many that costs are out of control
(Redman, 1985).For many businesses, including most small businesses, the most
significant cost is labor. Salaries and wages comprise the major line-item expense for
most retail and small-scale manufacturing companies, but labor also tends to be
consider measuring employee efficiency and setting aggressive performance targets to get
the most bang for their labor buck (Gillikin, 2018). According to mitrefinch.com/blog.org
(2016)…,one way to immediately reduce payroll and benefit costs is to cut your staffing
levels. However, if this leaves departments with too few employees for tasks and
projects, you will need to look at alternative staffing options to fill positions sooner rather
than later.Most businesses experience periods of economic down time. During these
times, lots of employers cut back on staffing to save funds and stay in business.
Unfortunately, prolonged understaffing can lead to a variety of issues that can greatly
harm a small business. Company managers should be conscious of the problems that
occur when the workforce is reduced so they can weigh the pros and cons of keeping
professional workplace, particularly in hospitality industry where service and quality may
be compromised as a result. From time to time we all find ourselves in situations like this,
but when the odd occasion starts to become the norm you have to ask yourself: does
management know, or are they totally oblivious to what is actually going on in their
higher levels of perceived task scope and utilization of skills, and that these task
capacity to meet customer needs. If a business takes on new clients or products and can’t
deliver the goods or services, it can lose the business and damage its reputation in the
industry. Lost business means lost revenue and growth into new markets. A business
should weigh the cost of an employee against the amount of revenue generated by that
employee’s contribution to the organization (Harper, 2019). Tunesi (2014) says “I would
regular workload and complete job tasks efficiently. In some cases, understaffing is the
result of challenges in finding suitable workers, but in others it's intentional due to cost-
cutting measures. Regardless of the reason, though, understaffing's burden falls mostly on
the shoulders of the existing workers, who must take up the slack (Balle, 2017).
STATEMENT OF THE PROBLEM
This study look to the problem in “Inadequate number of employees serving the
target market: A case study of Hap Chan Restaurant C – Raymundo Branch in Pasig
City” that results to stress or pressure at work to its employees which greatly affects
service quality towards its customers. This case study seeks to answer why employers cut
down employees despite of its needs of adequate man power and how does employees
cope up with this problem. Both product and service quality suffer when fewer
employees are available to serve customers especially in the food service industry.This
study aims to help Hap Chan Restaurant and the management in assessing the quality of
service provided and draw plans on meeting the customer’s needs and satisfaction as well
employees that will surely help for the growth of the company and its people.
METHODOLOGY
This study uses a qualitative type of approach which provides a complete and
detailed description of a subject without limiting the scope of the respondent’s answers
(Collis & Hussey, 2003). Descriptive research was used which seeks to describe the
usually leans towards more qualitative methods. The most familiar method of descriptive
research, surveys involve interviews or discussions with larger audiences and are often
conducted on more specific topics (McNeill, 2018). Basically, the data is in word or
narrative form, and it is subjective depending on the respondent’s point of view about a
subject (Langkos, 2014). Participants were fully informed regarding the objectives of the
study by presenting a letter to conduct a survey signed by the manager on duty, while
they were reassured that their answers were treated as confidential and used only for
academic purposes and only for the purposes of the particular research.The size of the
sample was relatively 9 participants which is 90 percent of the total population. The
method of purposive sampling was used to develop the sample of the research under
sampling techniques, sample members are selected on the basis of their knowledge,
in which researcher relies on his or her own judgment when choosing members of
effective when only limited numbers of people can serve as primary data sources due to
the nature of research design and aims and objectives (Dudovskiy, 2018). In the current
study, the participants who were selected had special relationship with the case
under investigation, sufficient and relevant work experience in the field of hospitality
and active involvement in service industry. The researcher may use his/her own
judgment in order to choose senior level manager/s and employees who are active and
currently working in the field of study who could particulate in in-depth interviews.
Some sample questions that were included in the semi-structured open ended
Employee Questionnaires
Question 2.Could you tell us a scenario where your service was compromise due to
understaffing?
Question 3.How does your company manage customer complaints? Explain briefly what
Question 5. Could you tell us about your positive or negative experience with your
company so far?
concerned?
Manager Questionnaires
Question 9.Are you having any difficulty in delivering your target every day?
Question 10.Do you have sufficient employees to cover the regular workload and
Question 11. What can you suggest to deliver a service quality despite of having
group?
Question 14. Do you think long term staffing would help to run your operations
smoothly?
Question 15.What was the company's biggest challenge recently and how did you learn
from it?
In some cases participants may refused to speak against their organizations. Personal
interviews were conducted with the manager on duty and workers directly involved in the
interview which means to say that some questions were prepared to guide the researchers
and to avoid the risk of departing from the established objective of the interview and to
give flexibility to the flow of the interview. Furthermore, the interviews were
This study look to the problem in “Inadequate number of employees serving the
target market: A case study of Hap Chan Restaurant C – Raymundo Branch in Pasig
City” that results to stress or pressure at work to its employees which greatly affects
service quality towards its customers. This case study seeks to answer why employers cut
down employees despite of its needs of adequate man power and how does employees
cope up with this problem. The result of this study will be further discussed under the