Organizational Behavioural Management Strategies in Cafe Business

This report provides an overview of organizational behavioral management within a cafe business context. It discusses various aspects such as the cafe's products, job descriptions (specifically focusing on the cafe manager), the time-based pay system implemented, and its impact on employee performance. The report highlights the benefits and limitations of the time-based pay system, including its simplicity and potential for inefficiency. It also emphasizes how active payroll and employee appreciation can increase productivity and customer satisfaction, contributing to the overall growth and profitability of the cafe. The analysis concludes that a well-managed organizational behavior approach, including effective compensation strategies, is crucial for the success of the cafe business.

Running head: ORGANIZATIONAL BEHAVIOURAL MANAGEMENT
ORGANIZATIONAL BEHAVIOURAL MANAGEMENT
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Table of Contents
Overview of the business...........................................................................................................1
Various products of the business................................................................................................1
Job description of the employee.................................................................................................2
Time Pay system for the employee............................................................................................2
Inherent benefits.........................................................................................................................3
Possible limitations....................................................................................................................3
Impact of the payment system on employee performance.........................................................3
References..................................................................................................................................5

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Overview of the business
A café or a coffee shop is a business, which is trending in the current modern world.
If effective plans and objectives are made, then opening a café will prove to be extremely
profitable. Offering quality coffees and delicious beverages in a relaxing atmosphere is a
highly beneficial business model. In this scenario, the business plan is of a café house that
provides high-quality coffee with various types of beverages, which are loved by the
customers. There are televisions in the café and one relaxing zone is available, which has one
library containing books of various famous authors. One gaming zone is there for teenagers
who can enjoy their coffee by experiencing many exciting games and can compete with each
other as the gaming zones contain games with amazing graphics and visualization. The café
operates with its employees to form an active business and to sustain itself in the market for
the long run. The profitability of the café is measured in terms of its financial success, such as
increased earnings and acquiring more market share.
Various products of the business
The café is committed to its products and never compromises in values such as
quality, integrity, excellence, and leadership. It provides specific commitments to its
customers by delivering high-quality products and excellent customer service. It offers
unique products at market prices, which works in favour of the café as customers want to
return repeatedly. The café uses premium quality coffee beans and serves espresso and drip
coffee, smoothies, lattes, and various other types of coffee that are enjoyed by the customers.
Various savouries are served that may vary with seasonality. Products such as scones,
cupcakes, muffins, cookies and many more beverages are available in the café. Bread and
cakes are supplied daily by local bakery. Even diet snacks and desserts are available for
customers who want to maintain a healthy balanced diet and are health conscious.

3ORGANIZATIONAL BEHAVIOURAL MANAGEMENT
Job description of the employee
In this business plan, individual employee performance is taken into consideration for
analysis purposes. Café manager is one of the vital parts of the business that contributed
towards the growth and expansion of the company (Chang & Chen, 2015). Café manager is
responsible for the daily operational activities of the company. Starting from planning menus,
dealing with different vendors, managing employees, keeping records of the budgets,
ensuring the manager attracts customer satisfaction and many more activities (Rambe &
Makhalemele, (2015). Specific job description of café manager is to carry out the recruitment
and training activities of the employees, ensuring clean and attractive look at the café,
maintaining inventory, and many more. The ultimate goal of the manager is to provide a high
level of customer satisfaction.
Time Pay system for the employee
Time-based pay system is implemented when employees are paid for time they gave
to the organization (Noe, 2015). In this business, usual form of time rate is a monthly salary.
One standard working hour is fixed daily and at the end of the month, wage is calculated
based on total time contributed by the employee over the entire month (Cascio, 2015). An
employee working above the standard time is known as overtime.
The basic pay structure of the café manager is as follows;
Basic Salary = AED 2711
Bonus = AED 701
HRA = AED 561
Special allowances = AED 701
Net Salary = AED 4674
Special allowances include items such as dearness allowance, meal allowance, and
entertainment allowance. The standard time per day is eight hours, and if the manager works

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beyond eight hours a day, then for overtime, the manager will receive an incentive on an
hourly basis. The rate of incentive vary on a seasonality basis and act as financial motivation
for the manager.
Per week working hours approximately coming to 40 hours.
Per month working hours (40*4) = 160 hours.
If the manager works more than 160 hours monthly, the incentive will be:
Total Salary of the manager = AED 4674/ 160 = AED 29 per hour ( approx.)
Incentive 29 x 30% = AED 8.7per hour
Inherent benefits
 Calculation of time rates is simple and easy to evaluate. Time-based pay system is used
for managerial positions.
 Employee can use some certainty to budget the personal finance expense, as this payment
system is easy to understand from an employee perspective.
Possible limitations
 Time-based payroll system does not show differences in performance, and due to
inflation, the average pay of an employee can increase even if performance is not up
to the mark.
 No incentive is given for the extra output produced during a period due to this, an
employee can lose interest in job, and it can lead to inefficiency of the employee.
Impact of the payment system on employee performance
In this case, analysis regarding the impact of time-based payroll system on the café
manager performance is evaluated. The café rewards excellence and even appreciates
employees for loyalty. Active payroll increases the productivity and efficiency of the

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manager, and if the café manager is efficient, then ultimately, the growth of the café will be
prosperous, leading to profitability (Yousaf, 2014). As in this case, the payroll is time-based;
the manager will contribute the entire time to produce effective results for the business and
will implement innovative ideas to achieve high customer satisfaction. Even the skills of the
manager will improve and there will be smooth functioning of the operational activities of the
café.

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References
Cascio, W. F. (2015). Managing human resources. New York: McGraw-Hill.
Chang, W. L., & Chen, S. T. (2015). The impact of World Café on entrepreneurial strategic
planning capability. Journal of Business Research, 68(6), 1283-1290.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2015). Human resource
management. Gaining a Competitive.
Rambe, P., & Makhalemele, N. (2015). Relationship Between Managerial Competencies Of
Owners/Managers Of Emerging Technology Firms And Business Performance: A
Conceptual Framework Of Internet Caf Performance In South Africa. International
Business & Economics Research Journal (IBER), 14(4), 677-690.
Yousaf, S., Latif, M., Aslam, S., & Saddiqui, A. (2014). Impact of financial and non financial
rewards on employee motivation. Middle-East journal of scientific research, 21(10),
1776-86.