Three Seas Economic Journal 42 Vol. 3 No. 3, 2022 This is an Open Access article, distributed under the terms of the Creative Commons Attribution CC BY 4.0 1 Vinnytsia National Agrarian University, Ukraine (corresponding author) E-mail: ruslanaivan@gmail.com ORCID: https://orcid.org/0000-0003-0663-8307 DOI: https://doi.org/10.30525/2661-5150/2022-3-7 IMPROVING THE METHODS OF PERSONNEL MANAGEMENT OF THE RESTAURANT CHAIN Ruslana Lopatiuk1 Abstract. The aim of the article is to study the issues that determine the relationship between the management function and its instrumental apparatus to improve the efficiency of enterprises in the field of catering. Methodology. The management system used and inherent in the network of restaurants in Vinnytsia is investigated in order to identify their effectiveness and determine their strengths and weaknesses. The article analyzes the relationships in the team, which form the basis of personnel management at restaurant business enterprises, because in the conditions of constant socio-economic changes and dynamic development of market relations, the need for effective and professional management personnel is growing. Socio-economic approaches to improving the efficiency of personnel management in the food industry are considered. According to the results of the study, it was found that the implementation of management decisions is influenced by the following factors: material and resource base, training and strategy of the company's management, and the key role is played by the support of the staff. What is the motivational component and what is the main purpose of motivation, psychophysical, personal, professional and material motivators of the behavior of employees of the restaurant chain, as well as the main types of motivation and forms of their stimulation are determined. Practical implications. The main methods of improving the efficiency of personnel management are proposed, taking into account the concepts of corporate culture, leadership development and the use of positive features of the organizational structure of the network. It is argued that employees should be given the opportunity to acquire new skills and move up the hierarchical structure of the restaurant, along with the implementation of incentive motivation policy. This will significantly reduce the outflow of personnel from the enterprise and ensure its effective functioning. Value/originality. The essence of the personnel management system, which is inherent in the network of restaurants in Vinnytsia "Faini spravy" and has a systemic nature, is substantiated, and it is established that the restaurants of this chain need constant improvement of personnel in order to continue to keep pace with modern market challenges. The company should also reduce the costs and time spent on the search for new personnel. To do this, it is necessary to establish closer ties with colleges and universities in Ukraine. Key words: personnel, leadership, strategy, management, restaurant business, communications. JEL Classification: M12, J23, J29 1. Introduction Effective restaurant management involves several basic tasks: public relations, inventory, staff responsibility and customer service. In some cases, the restaurant owner may act as the manager. In any case, a strong manager is an important component of a successful restaurant (Kononenko, Polstyana, 2019). In the conditions of constant socio-economic changes and dynamic development of market relations, the need for effective and professional manage- ment personnel is growing. The implementation of management decisions is influenced by the following factors: material and resource base, training and strategy of the company 's management, as well as the key role of support from the staff. The recent crisis showed that enterprises were not ready for the new challenges that emerged. The management system required new measures to increase staff motivation, additional training for managers and support for employees to work effectively (Kozhuhivska, Parubok, 2018). 2. Principles of successful personnel management Successful personnel management in the restaurant business largely depends on the quality of personnel Three Seas Economic Journal 43 Vol. 3 No. 3, 2022 selection. The search for personnel in the restaurant business market is currently quite difficult. The main feature of the selection of professional employees is the competitiveness of the institution. The best establishments sometimes use the method of labor piracy as the main tool for managing human resources of the restaurant. As an additional incentive for cooperation, establishments use qualified motivation for this. It allows saving employees' money by providing them with additional incentives through tangible and intangible methods of motivation. Some scientists also identify a system of principles that should ensure the harmonious existence of these types of motivation. Researchers offer five points: 1) it is necessary to regularly improve the management system through motivational incentives. Such steps will create a competitive enterprise that will hunt for valuable personnel in the labor market; 2) the task of material incentives is to orient the management structure in such a way that it is fully invested in the final result, combining into a single whole the work for themselves, for the benefit of the enterprise and the company; 3) it is recommended to invest a certain percentage of profits in providing staff with additional payments and bonuses that increase in accordance with the position held in the hierarchy of the enterprise; 4) it is necessary to give the employee the opportunity to implement the acquired experience and relevant skills for the purpose of its own realization, which is aimed directly at the development of the company; 5) it is necessary to constantly monitor the balance between two types of motivation, material and non- material, in order to maintain a balanced incentive system (Selyutin, 2018). The motivational component is a kind of tasking process, the purpose of which is to create such a psychological state in an employee that will help to control and model his behavior in order to purposefully activate it in the interests of the enterprise. The main purpose of motivation is to get the maximum benefit from the available labor potential of the institution and ultimately to make a profit. Also, motivation as a component of labor potential is divided into certain elementary parts. Among them there are subtypes of motivation: labor activity; productive employment; competitiveness of the employee; choice of workplace; mastering various means of production. Unfortunately, the application of the entire motivation structure is not always traced, but only its individual components. But it is worth noting the general rules that should be systematically used at the enterprise to motivate the staff: equal opportunities; agreed remuneration; proper conditions for all employees; opportunities for professional growth; atmosphere of trust. Restaurateurs in the process of carrying out their business activities constantly have to solve problems related to the management of restaurant personnel, as the availability of qualified and well-trained staff is the key to the success of the restaurant business. Therefore, the creation and application of a viable personnel management system in the restaurant industry can increase the efficiency of the restaurant business several times. Due to the functioning of the personnel management system, continuous improvement of methods of work with personnel is ensured using modern scientific and practical developments in this area. In turn, the essence of personnel management is to establish economic, administrative, organizational, managerial, socio- psychological, informational, intellectual and legal relations between the subject (owner or top manager of the restaurant) and objects (restaurant staff ) of management. The basis of these relations are methods of influencing the motives of behavior, interests and labor activity of restaurant workers for their most productive use. I. I. Bazhan believes that the personnel of the enterprise is defined as a set of permanent employees who have undergone the necessary professional training and have practical experience (Bazhan 2018). 3. Management objects in the restaurant industry That is, personnel management can be understood as a purposeful complex influence on individual employees or a team in order to provide optimal conditions for creative and initiative work to achieve the company 's goals. Therefore, personnel management in the restaurant business requires careful attention from owners and managers, which can be carried out qualitatively using a set of certain management methods. Under the methods of personnel management understand a set of techniques and methods of influence on the staff of the enterprise to achieve the goals of the organization. However, any method of personnel management is based on the motives that guide the employee in the process of his work. In turn, the motive is the motivating reason for the actions and deeds of the staff. It is the motives that influence the interests, behavior, actions and needs of the personnel. It should be noted that each category of personnel has its own needs, and the methods of influencing them may differ. Therefore, it is important to distinguish several categories of personnel of restaurant business establishments with their unique methods of managerial influence and motivation. Three Seas Economic Journal 44 Vol. 3 No. 3, 2022 4. Categories of restaurant staff 1. Restaurant administration is the management staff, specialists who provide financial and adminis- trative management of the restaurant (restaurant manager, accounting, marketing and advertising services, human resources, logistics, etc.) The best motivation for top management personnel is the possibility of career growth, high income, social status, recognition of their importance. 2. Kitchen specialists are qualified workers who ensure high quality of cooking, their wide range in the restaurant (chef, pastry chef, pizza chef, cooks, sushi chefs, etc.). Motivation for this category of employees will be recognition of their talents in cooking and serving dishes, as well as their importance for the restaurant. Social and psychological motivation for them can be various competitions for the title of "Best in Business". An element of economic motivation can be cash bonuses for the number of original dishes sold. 3. Service personnel in the hall are skilled and unskilled workers who provide direct contact with customers and visitors of the restaurant (hall managers, cashiers, banquet managers, hall administrators, waiters, bartenders, sommeliers, etc.) The main economic motivation for them will be the amount of tips received from satisfied customers. 4. Employees of auxiliary services are unskilled workers who provide the necessary conditions for the functioning and work of all other categories of restaurant staff (food suppliers, cleaners, dishwashers, kitchen auxiliary workers, etc.) They will be motivated by a stable and decent salary, a clear range of their responsibilities, the possibility of a short rest during the working day, respect of the management and periodic moral and material incentives. At the same time, restaurant staff is characterized by a number of specific features: high staff turnover among line staff; lack of highly qualified managerial staff; lack of HR department or HR manager in many restaurants; unprofessionalism of ordinary restaurant workers, especially waiters, bartenders and cooks. Therefore, the competent use by the management of the restaurant business establishment of various management methods, ways and means of influence, tools and types of motivation, taking into account an individual approach to each of the above categories of restaurant personnel, will be the most important condition for the effective functioning of the entire restaurant personnel management system, which will allow to maintain professional and dedicated staff. To do this, it is necessary to take as a basis traditional and introduce innovative methods of personnel management of restaurant business enterprises. A. Ya. Kibanov proposes the following classification of personnel management methods (Kibanov, 2020): 1) administrative methods (formation of the organizational structure and management bodies, approval of administrative rules and regulations, creation of orders and instructions, development of organizational regulations, performance standards and job descriptions, selection and placement of personnel); 2) economic methods (pricing policy; technical and economic analysis and justification; tax, accounting and financial accounting; planning; material incentives; economic rules and regulations); 3) social and psychological methods (social develop- ment and analysis of the team; social planning; participation of personnel in management; psycho- logical influence on employees; moral stimulation; formation of working groups; creation and mainte- nance of a healthy psychological climate in the team; stimulation of creativity, initiative and responsibility). The effectiveness of the application of certain methods of personnel management depends on their motivational orientation, consistency and the availability of a mechanism for their implementation and involves the management work of the management of the restaurant business establish- ment to find and implement modern and innovative methods of personnel management in the general complex of methods of personnel management of the restaurant business enterprise. 5. Personnel potential of hotel and restaurant facilities The human resources potential of hotel and restaurant facilities has quantitative and qualitative characteristics. The quantitative side of human resources potential is determined, according to most economists, by the labor resources available to the enterprise in each period, as well as the amount of working time. The qualitative characteristics of human resources include indicators that can be formulated using a set of features: demographic, professional qualification, social, moral and other. The staffing potential of hotel and restaurant facilities is characterized by the following absolute and relative indicators: – the registered and attendance number of employees of the enterprise and its internal structural units, individual categories and groups at a certain date; – the average number of employees for the specified period; – the growth rate of the number of employees for the specified period; – the average length of service in the specialty; – staff turnover. The concept of "human resources" requires a more detailed study and a clear separation of the object and subject of human resources management. The main element of management is people who are both the object and the subject of management. The ability of human resources to simultaneously act as an object and subject Three Seas Economic Journal 45 Vol. 3 No. 3, 2022 of management is the main specific feature of the management of hotel and restaurant facilities. The main purpose of staff motivation in the personnel management system is to get the maximum return from the use of available human resources, which allows to increase the overall efficiency and profitability of the enterprise. Properly organized system of material incentives at the restaurant business enterprise creates an atmosphere where employees feel the need to work with maximum efficiency for the success of the institution. The system of material incentives requires constant study of the factors that determine material incentives. These factors are understood as the driving forces that ensure the formation and use of a set of incentives to meet the collective and personal interests of employees (Tranchenko, Shkolniy, Lopatyuk, Biletska (2018). Personal self-realization is necessary for the effective work of the restaurant business. Although remuneration is the most significant source of income in the restaurant business, it is impossible to ensure these qualities of an employee with the help of traditional forms of material incentives and strict external control, salary and punishment. Only those employees who are aware of the meaning of their activities and strive to achieve the company 's goals can count on obtaining high results (Tranchenko, 2018). It can be argued that monetary motivation by its nature is "insatiable" and in the future other types of material motivation should be used to retain specialists at the enterprise and stimulate them to perform their duties in good faith. Along with a decent salary as additional financial incentives can be used: bonus system of accrual; provision of free or preferential meals at the enterprise; payment for mobile communication directly related to the implementation of the labor process; reimbursement of transportation costs; financing professional development; providing an opportunity to get a loan or a preferential loan for housing or other household needs; partial compensation of vacation expenses, etc. These benefits help to create comfortable working conditions, thanks to which a person will be satisfied with his work not only because of the salary. If the interests of the enterprise and employees are balanced, it will allow to identify a certain group of motivators in the first place. They will be interested in achieving the set goals and will encourage other employees to do so in order to get a certain incentive for the work of the team. In turn, the motivators are divided into groups: psychophysical, personal, professional and material (Figure 1.) Although the motivators and their elements are in different structures, they are still in some way related to each other (Lopatiuk, 2021). The purpose of each hotel and restaurant enterprise is to make a profit as a result of providing effective services. They are directly related to the service, that is, the staff that provides them. In order to build quality services, it is necessary to prevent the decrease in staff motivation due to lack of support from management and in the process of disagreement with colleagues. To do this, the following system must be created that will be effective and consistent in the process of achieving the goal (Tranchenko, 2018) . To improve the efficiency of personnel management abroad, there is a practice of personnel training. Depending on the goals and objectives, the following training options are used: – training of new managers and specialists who are hired for the first time at the enterprise. Employees are introduced to the peculiarities of the structure, economy, organization of production activities, technologies, social conditions and safety; – retraining of personnel is carried out in order to obtain additional higher or vocational education; – providing staff with special skills and knowledge that were not previously used at the enterprise to increase labor productivity and adapt staff to new realities due to changes in the production process (Loptiuk 2020). After analyzing the work of Vinnytsia restaurant establishments, it was concluded that there are negative trends in the work with staff during the quarantine period: – lack of professionalism of waiters (most of them do not have the appropriate qualifications and education); – decrease in motivation, which is reflected in the work of employees (they work without enthusiasm, without effort, do not show initiative, approach their duties formally). It was on the basis of our study of the chain of institutions "Faini spravy " that it was possible to find out that the role of the leader is especially important when the strategy of the team is formed, which provides a variety of services and serves consumers. In the case of direct contact of the employee providing services with the recipient of these tangible and intangible benefits, the most important thing is to create a sense of a high-quality and well-coordinated team capable of providing competitive services. In the conditions of constant dynamic changes that are always inherent and occurring in the environment of restaurant business enterprises, it is worth noting that leadership qualities can positively affect the use of intellectual and human resources potential of the economy. This statement makes clear another function of management – to exercise targeted control over the entire personnel structure (Tranchenko, Shkolniy, Lopatyuk, Biletska (2018). The process of realization of such influence should lead to an increase in the types of competitive, Three Seas Economic Journal 46 Vol. 3 No. 3, 2022 strategic and business-modeled behavior in the teams in order to guarantee the provision of quality goods and services to the consumer, raising the enterprise to a higher level as a result of constant inevitable processes of development of the institution and its place among the segments of the market economy. In order to effectively apply leadership as a powerful mechanism for the development of hotel and restaurant services, it is necessary to carry out its scientific institutionalization. This will make it possible to implement this approach within the framework of normal relations, thanks to the method that will consolidate this direction in socio-economic processes, streamlining them with related formats of management and leadership in the conditions of sustainable development of the business complex. At the enterprises it is advisable to apply methods related to diagnostics of assessment of return on investment in intellectual development of personnel (Figure 2). They are an integral part of economic potential development and create an inextricable link between human and organizational potential. Human potential should be a source of innovations that are implemented in the process of knowledge trans- formation (Kozhuhivska, Parubok, 2018) Having implemented the leadership function, the next step is to improve human potential and intensify corporate culture development programs. After analyzing various results of leadership programs, it was found that the involvement of investment policy in human capital is much more effective compared to the modernization of technological production base. This conclusion is based on the fact that production facilities are managed by employees, and as a result of maximum involvement of the team in the implementation of changes, transformations and other types of optimization, it is possible to improve business results. It also depends on the number of employees involved and the speed of involving Motivators for using the labor potential of the enterprise Material motivators Pay system Copartnership Participation in ownership Participation in management Provision of benefits Professional motivators Educational level Professional skills Experience Personal motivators Ability to master and generate ideasCompetence Responsibility Initiative Psychological motivators Staff rotation Social guarantees Work force development system Improvement of working conditions Figure 1. The structure of motivators for increasing TPP Three Seas Economic Journal 47 Vol. 3 No. 3, 2022 employees in solving certain processes. To solve complex and non-standard issues, managers use the methodology of a systematic approach, which allows to involve managers of the company at all levels, forming a powerful management team that is able to organize the team to the conditions of the most effective work (Yuryk, Romanyuk, 2017) In order to improve the management culture, it is necessary to identify the elements of organizational culture that have the specificity of repetition and have an indirect ability to influence other areas of communication. This type of culture begins to form as a result of communication and actions aimed at achieving the company 's goals through the staff. Due to these processes, special norms of behavior, values, approach to contact with external factors were created. In order to carry out a complete, continuous reproduction of the general culture of the staff, managers need to adhere to a targeted analysis, control and evaluation in the process of setting tasks for employees. In order to ensure that employees adhere to roles, it is necessary to establish a type of reward that will have an intangible origin. Another step towards improving the efficiency of personnel management is its practical side. To do this, the following criteria must be met: – constantly increase the role of self-management; – establish effective cooperation between the staff and the leader; – to improve the quality of the organization of management activities; Sufficient starting capital Implementatio n of the management mechanism Justification of the economic feasibility of investment The relationship between expected income and risk Investment Investment in human capital Urgency of implementati on The size of the return depends on the interest of the person High profitability in combination with riskiness Influence of historical, cultural and family traditions Ability to transfer the acquired knowledge Longer investment period Management staff Figure 2. Peculiarities of investing in human capital – application of ethical methods and techniques in business communication. The "Lezghinka" restaurant, which is part of the "Faini spravy " chain, needs constant improvement of its personnel to keep moving along with modern market challenges. The company should also reduce the costs and time spent on the search for new personnel. To do this, it is necessary to establish closer ties with colleges and universities in Ukraine. 6. Conclusions Introducing such opportunities is a way for staff to grow and develop professionally within the company. Providing employees with the opportunity to acquire new skills and move up the hierarchical structure of the restaurant, along with a policy of incentive motivation. This will significantly reduce staff turnover from the enterprise and ensure its effective functioning. In order to improve the work of the departments of the teams, it is necessary to create such conditions that will allow to implement the following factors: – as a result of the campaign on the use of business ethics, to increase the level of communication; – significantly reduce the cost of finding new employees through cooperation with colleges and universities; – to improve the moral climate of the "Faini spravy " restaurant chain through the implementation of the principles of "organizational culture", which have the specificity of repetition and have an indirect ability to influence other areas of communication. This type of Three Seas Economic Journal 48 Vol. 3 No. 3, 2022 culture begins to form as a result of communication and actions aimed at achieving the company 's goals through the staff; – introduction of self-management, increasing the level of responsibility of employees and cooperation with managers; – due to the introduction of internal culture in the farm, staff turnover will be significantly reduced. Improving the efficiency of personnel management also requires the implementation of a program to strengthen communications with staff. The absence of such communications of one department with other departments of the restaurant for the most part always contributes to a decrease in the speed and quality of work. References: Kozhuhivska, R . B., & Parubok, N. V. (2018). Improvement of the organizational structure of the management of hospitality enterprises. Economy and society, vol. 17, pp. 258–264. Kononenko, T. P., & Polstyana, N. V. (2019). 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