In Brief Executive summaries of this month’s feature articles.

Hospitality Strategy

Human Resources

Why Restaurant Firms Franchise: pp. 9-16

An Analysis of Two Possible Explanations by Vera L. Hoover, David J. Ketchen, Jr., and James G. Combs

The decision to grow a hospitality firm via franchises rather than company-owned outlets remains under debate. One explanation is that franchising resolves some outlet-monitoring problems cre- ated by expansion. Another is that franchising gives firms access to inexpensive capital. Data from 91 large restaurant chains reveal that both explanations drive the decision to franchise, suggesting that food-service managers should carefully consider both when planning future outlets. Indeed, two outlet-monitoring issues (i.e., the level of specific knowledge needed and the desire for foreign expansion) emerged as the strongest single likely explanations for franchising followed by capital scarcity

How the Achievement of Human-resources Goals pp. 17-24

Drives Restaurant Performance by Daniel/. Koys

In an effort to connect employee attitudes and behavior to a restaurant’s business success, this study examined causal relationships between data measured a year apart. The data, drawn from 28 restau- rants in a regional chain, show that employee satisfaction, organizational citizenship behavior, and employee retention, as measured in the first year, influence customer satisfaction and financial per- formance, as measured in the following year. The reverse relationship did not hold, providing evi- dence that good people management influences restaurant performance, rather than the other way around.

Employee Selection: pp. 25-32

How Simulations Change the Picture for Minority Groups by Nea I Schmitt

A comparison ofwritten tests and job simulations showed significant differences in the success rate on those tests of different groups of prospective employees. The outcome of the written test was that a sample of African-American participants would have been screened out of contention for a customer- service position. Because the job at hand places the ability to solve problems and work with people over a high reading content, however, it made more sense to test the effects of a job simulation that does not involve written questions. As compared with the written-test results, the simulation determined that a larger proportion of African-American candidates would be qualified for the position in question.

Organizational Citizenship: A Comparison between pp. 3342 Part-time and Full-time Service Employees by Christina L. Stamper and Linn Van Dyne

A study of 257 employees and their managers in six diverse restaurants found that employees’ work status influences their level of organizational citizenship behavior. In particular, the study found that part-time employees are less likely than full-time workers to exhibit helping behavior. Helping in- volves going beyond specific job duties to assist when and as necessary. On the other hand, the two groups were not substantially different in their use of voice, which is defined as making suggestions for improvement or innovation in policies and procedures. Organizational culture made a differ- ence to citizenship behavior, in that the employees of highly bureaucratic operations were less likely to go beyond their job descriptions than were the employees of informal operations.

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6 Cornell Hotel and Restaurant Administration Quarterly FEBRUARY 2003