Management in the Hospitality Industry

Reden C. Costa

MSHRM/MHR 502

What is Hospitality Management?

According to the Oxford English dictionary, Hospitality means the reception and entertainment of guests, visitors or strangers with liberality and good will.

Management comprises planning, organizing, staffing, leading, directing, facilitating and controlling or manipulating an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.

What is Hospitality Management?

Simply defining as “the practice of running a hotel”

“ managing a hotel”

How to manage the hotel?

Basic functions of management:1. Planning: Planning is the conscious

determination of future course of action. This involves why in action, how to take action, and when to take action .

How to manage the hotel?

2. Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans.

How to manage the hotel?

3. Leading: Determining what needs to be done in a situation and getting people to do it.

How to manage the hotel?

4. Controlling: Monitoring, checking progress against plans, which may need modification based on feedback.

What is meant for Organization?

A structure through which individuals cooperate systematically to conduct business.

What is Organizing?

The work managers do to bring order to the relations between people and work as well as among the various people at work.

What is Authority in the hotel management?

Authority in management is the formal or legitimate authority specified in a charter gives a project manager the authority to act in the name of the sponsoring executive or on behalf on the organization.

Power that is recognized as legitimate

What authority do you practice?

Are you like this?

Or like this?

Two bases of Authority

1. FORMAL ORGANIZATION- follows series of steps, authority must be shared

- Top to bottomSpecifically involved Legal system that

commonly imply a community’s potential use of force to maintain order.

“ I own this company, you’ll have to do as I say”

2. INFORMAL ORGANIZATION

-usually has a leader who is consciously or unconsciously recognized by the group.

Manager comes to accept the work group and establishes working relations with this structure that constitutes a real limitations on his formal authority.

Authority and Responsibility: Unified Tasks

Manager can be held responsible for results only as far as his/her effective authority extends.

What is Departmentalization?

It changes the institutional structure of the program for the staff effectiveness

What is delegation?Delegation is a very important aspect of

leadership skills as is human resource management.

WHY?

WHY?

- Authority must be delegated

- it develops management talent in the organization

- through assigning, it increased employees’ responsibility

Span of Control

Refers to the number of people the manager supervises directly

Refers to formal reporting relationships “Direct report”- no other manager in between

the manager and employee• Wide span of controlWide span of control: Ex. Lyn Wells-AVP of Academic Affairs at CLC directly supervises 50 faculty

*Narrow span of Control- when a manager directly supervises only a few subordinates

Ex. CLC College President- directly supervises 3 Senior VP’s

General Rule: The narrower the span of control, the more managers needed. Why?

If all managers have narrow span of control, then the organization must be “tall”

Tall organizations have many layers and have narrow spans of control

If managers have wide spans of control, then the organization can be “flat”

wide span of control

Fewer managers needed but tend to have decentralized decision making.

Note: Consultation and interaction extend beyond the span of control.

Span of control in hotel is being reevaluated

Bases of Departmentalization

Departmentalization is the basis on which work or individuals are grouped into manageable units. There are five traditional methods for grouping work activities.

Functional Departmentalization

Departmentalization by function organizes by the functions to be performed. The functions reflect the nature of the business. The advantage of this type of grouping is obtaining efficiencies from consolidating similar specialties and people with common skills, knowledge and orientations together in common units.

Product

Departmentalization by product assembles all functions needed to make and market a particular product are placed under one executive.

Geographical

Departmentalization by geographical regions groups jobs on the basis of territory or geography. For example, Merck, a major pharmaceutical company, has its domestic sales departmentalized by regions such as Northeast, Southeast, Midwest, Southwest, and Northwest.

process

Departmentalization by process groups jobs on the basis of product or customer flow. Each process requires particular skills and offers a basis for homogeneous categorizing of work activities.

Customer

Departmentalization by customer groups jobs on the basis of a common set of needs or problems of specific customers.

Note:

No department represents “the best” means of division. What important is that authority and responsibility be divided in a way that suits the particular needs of the market

Advantages and disadvantages of COMMITTEES

Advantages - Allow number different interest

to gain representation.

- Builds morale-”when everyone is consulted, no one is offended, or so the arguments goes”

- hearing many views

- regularize consultation

-Serve as motivational tool by allowing all participants to e involved

Disadvantages -Tend to consume a great deal of

time.

- often avoid action rather than take it

- avoid or shift responsibility for unpopular or risky decisions.

- encourage compromise

BUREAUCRACY?

Weber's theory of bureaucracy (1958) is one of the most popular themes of the studying of organizations. He identified the legitimate of power with authority. 'Power' means the ability to ask people to accept the orders; 'Legitimation' means people regard this power as legitimate so as to obey the orders.

What is Adhocracy?

Adhocracy is a term from the theory of management of organizations. Adhocracy

refers to the opposite of bureaucracy, or or the absence of hierarchy. the absence of hierarchy.

Other definition of Bureaucracy:

Scott defines bureaucracy it as "the existence of a specialized administrative staff".

Wikipedia: A bureaucracy traditionally does not create policy but, rather, enacts it .

What is Adhocracy?

Adhocracy is a term from the theory of management of organizations. Adhocracy

refers to the opposite of bureaucracy, or or the absence of hierarchy. the absence of hierarchy.

Bureaucracy vs. Adhocracy

BureaucracyBureaucracy very structured in its

rules and hierarchy everyone knows their

specific role, they specialize in that role, and know nothing, or very little, about the roles of their coworkers.

AdhocracyAdhocracy experiences an organic

structure hierarchy barely exists. democratic nature a complex and dynamic

organizational form

BureaucracyBureaucracy-only truly effective when -only truly effective when

one thing is being one thing is being mass-producedmass-produced

-bureaucracy a thing of -bureaucracy a thing of the pastthe past

-Division of labor-Division of labor -Hierarchy of authority-Hierarchy of authority -Formal rules-Formal rules

AdhocracyAdhocracy- adhocracy one of the adhocracy one of the

futurefuture - little formalization of little formalization of

behaviorbehavior - high cost of high cost of

communicationcommunication

Staffing?

Is the work that managers and supervisors do to determine the specific personnel needs of their operations– to attract qualified applicants and to choose the best-suited of these for employment and training.

Human resources management?

Is the planning, organizing, directing and controlling of the procurement, development compensation, integration, maintenance and separation of human resources to the end that individual organizational and social objectives are accomplished.

Edwin B. Flippo

Hr’s concern in considering/choosing staff..

1. Personal service – qualified employee promotes success of the whole enterprise.

2. Significant cost (payroll costs)

What is job description?

A list of job’s duties, responsibilities, reporting relationship, working conditions and supervisory responsibilities.

Standards in choosing staff:

a. Physical requirement

b. emotional or attitudinal characteristics

c. Mental or intellectual abilities

Physical Requirement

It involves the height, weight and even disabilities.

Mental or Intellectual- may either language proficiency, arithmetic skills..

Emotional Or Attitudinal Characteristics – employees must have good dispositons

Recruitment

The process of finding and attracting capable applicants for employment.

Two (2) major sources: a. Internal Sources- recommendations of

former employees(current) b. External Sources- divided into two:

advertisements and employment agencies

Internal sources Recommendation of the

current employees - recommendations of

previous or former employees

External sources Advertisements large number of

applicants Mass recruiting Time consuming Employment agencies operated with tax

revenues

STAFF PLANNING

TO HAVE SUFFICIENT STAFF IN THE APPROPRIATE JOBS TO MEET THE OPERATION’S NEEDS.

Part-time employees

taking part-time job in addition to their main employment. There are advantages and disadvantages:

Part-time employees’

Advantage cost advantage for

they receive fewer fringe benefits

Disadvantage

May create special problems as they are outside establishments.

Like spouse’s vacation, exams, sembreak or graduation (students)

Fatigue (other professionals)

Computerized Scheduling

Great help for the hotel managers to track the whereabouts of his/her employee or subordinates.

Meaning of Control and its Importance

Control is the work that managers and supervisors do to measure performance against standards, detect and analyze variances from target performance and initiate corrective action.

What is cybernetics?

-Cybernetics is closely related to control theory and systems theory. (wikipedia)

Cybernetics began as the science of communication and control in the animal, machine, and society;

Control and Cybernetic Loop

1. management-presented information on the progress of an organization

2. Takes corrective action on basis of information

3. Process continuous- term loop used 4. Action constantly takes place 5. Information about action must constantly

pass through loop