Chapter Five

5. Issues That Needs Managerial Attention

5.1 Introduction

Who Is a Manager? It used to be fairly simple to define who managers were: They were the
organizational members who told others what to do and how to do it. It was easy to differentiate
managers from non-managerial employees. Now, it isn’t quite that simple. In many
organizations, the changing nature of work has blurred the distinction between managers and
non-managerial employees. Many traditional non-managerial jobs now include managerial
activities. For example, at General Cable Corporation’s facility in Moose Jaw, Saskatchewan,
Canada, managerial responsibilities are shared by managers and team members. Most of the
employees at Moose Jaw are cross-trained and multi-skilled. Within a single shift, an employee
can be a team leader, equipment operator, maintenance technician, quality inspector, or
improvement planner.

So, how do we define who managers are? A manager is someone who coordinates and oversees
the work of other people so that organizational goals can be accomplished. A manager’s job is
not about personal achievement—it’s about helping others do their work. That may mean
coordinating the work of a departmental group, or it might mean supervising a single person. It
could involve coordinating the work activities of a team with people from different departments
or even people outside the organization, such as temporary employees or individuals who work
for the organization’s suppliers. Keep in mind, also, that managers may have work duties not
related to coordinating and overseeing others’ work. For example, an insurance claims supervisor
might process claims in addition to coordinating the work activities of other claims clerks.

Elements

According to Mackenzie, the elements that today’s managers work with are ideas, things, and
people. These are the main components of an organization and are in the center of the figure. The
manager’s task that is related to ideas is to think conceptually about matters that need to be

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resolved. The task related to things is to administer or manage the details of executive affairs.
The task related to people is to exercise leadership and influence people so that they accomplish
desired goals.

Functions

The functions of a manager can be thought of as continuous functions and sequential functions.
Many times a question may be asked: “But what does the manager do?” The manager should be
seen to do several continuous functions, as well as several sequential functions. The continuous
functions relating to ideas and conceptual thinking are to analyze problems. Those related to
things and administration are to make decisions, and those related to people and leadership are to
communicate successfully. Problems are analyzed, facts gathered, causes learned, alternative
solutions developed, decisions made, conclusions drawn, communications generated, and
understanding ensured.

The sequential functions of management are more recognizable as a part of the classical
definition of management. They involve the planning, organizing, staffing, directing, and
controlling of ideas, things, and people. Mackenzie sets forth various activities in each of these
sequential functions that should be studied and recalled whenever necessary.

5.2 Issues that needs managerial attention

• Budget
• Rates & revenue
• Staff and Daily operations
• Maintenance of grounds and facilities
• Marketing campaign
• Planning for the future

Budget

A budget is a plan that allocates financial resources to cover fixed and variable costs throughout
the fiscal year. Hotel management is responsible for preparing an annual budget that covers

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everything from rent and utilities to employee pay and maintenance. While planning a corporate
budget is a lot more complicated than planning a budget for your household, the principle is the
same.

Rates & revenue

Revenues are driven by the number of paying customers you have and the price you can charge
for rooms and other products and services that your hotel may offer. You can sell rooms through
several different channels, each of which might add incremental revenue for your hotel.

You have walk-in customers and customers who make reservations at your hotel’s website. You
have meeting planners who book blocks of rooms. You have online travel agencies like Expedia
and Priceline that will help fill empty rooms. As a manager, you must prioritize the way you sell
rooms to maximize revenue.

Hotel managers must pay careful attention to market conditions and adjust their room prices to
maximize revenue. Price elasticity is driven by demand. Demand for rooms change by the day of
the week, the time of the year, around the holidays, and when a big event is in town.

As an example, regular Las Vegas visitors know that if they check-in to a room on a Sunday
afternoon and check-out on a Tuesday morning, they will get the lowest room rates. If they
check-in on Friday and check-out on Sunday, their room rates will be substantially higher.

Basic economic theory explains the importance of setting the right rate. At some price point, you
will maximize revenue (sale price x number of sales). If you charge too high of a price, you will
not make as many sales. Setting a low price may generate more sales, but it also will result in
lower revenue per sale.
While experienced hotel managers have a good idea of when they are able to push rates higher
without hurting occupancy, it is not an exact science. You must know the competition and know
your customer. Computer software programs are available to help you analyze the price/revenue
equation.

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Staff and Daily operations

Take care of your employees and they will take care of you. Someone smart said that a long time
ago and it certainly applies in the hotel industry. As a manager, you need to establish an
atmosphere where employees feel like they are part of a team. Setting up a system where
performance is recognized and rewarded will encourage people to work harder toward meeting
company goals.

Your front desk staff, housekeeping crew and maintenance workers are best equipped to identify
problems and make suggestions as to how things can be done better to improve the hotel. Listen
to them. While management styles can vary, it is essential to be on-site and interact with both
staff and guests. When you see first-hand how your hotel is operating, you can quickly identify
areas that may need attention.

Always be available to listen to your staff or take the lead in handling issues that can impact your
hotel’s reputation. Walk around the breakfast buffet and casually engage hotel guests to see how
they feel about their stay. Being social is an important part of being a hotel manager.

Maintenance of grounds and facilities

You cannot afford to let your building or grounds deteriorate or you will see exponential growth
in the number of online negative posts on hotel review sites. Just like you want to have great
curb appeal when you are trying to sell your house, your hotel should also have great curb
appeal. Landscaping is important, particularly near the entrance to your hotel. Sweep the
sidewalks. Make sure the building looks presentable.

The lobby is the first thing that guests see when they enter your hotel. Does the furniture and
décor make the positive statement you want it to make? Money is well-spent on updating a tired-
looking lobby.

While you budget may not allow you to do a major overhaul of your hotel, you should make sure
that what you have is kept clean. Windows need to be washed, carpets vacuumed and furniture

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polished. While the task of maintaining your property may be the responsibility of others, as the
manager, you need to see that the job is being done correctly.

Marketing campaign

From traditional advertising to the further development of your social media program, you need
to step up your marketing campaign to be competitive with other hotels. Everything changes so
quickly in today’s online world. You must be at the forefront of change and stay ahead of the
curve to succeed. Integrating mobile strategies and recognizing that there are more social media
platforms than Facebook and Twitter can pay big dividends as you try to reach travelers in 2014.

Don’t treat social media as an afterthought. Your competitors are actively trying to improve their
online presence and you cannot afford to lag behind. Engage your younger employees who are
savvy social media types. Hire professionals who are adept at capturing the attention of the
Millennials. Don’t ignore the power of the Internet.

Planning for the future

Failure to plan for the future can lead to stagnation and a decline in business. Hotels that do not
think about tomorrow can quickly become irrelevant. Examples of companies failing to develop
a strategy for the future are everywhere. Look what happened to Kodak when everyone started
using digital cameras. Blackberry failed to adapt to the changing technology and is now in
danger of going out of business.

The same is true of hotels. If you do not give people what they want, they will go elsewhere. In
addition to providing more amenities, you need to provide more value. Hotel management must
analyze the trends and make plans to modify their operations to meet.

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