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CONTEMPORARY
CLUB MANAGEMENT
Educational Institute Books
UNIFORM SYSTEM OF ACCOUNTS FOR THE LODGING MANAGING HOSPITALITY HUMAN RESOURCES
INDUSTRY Fifth Edition
Tenth Revised Edition Robert H. Woods, Misty M. Johanson, and Michael P. Sciarini
wORLD OF RESORTS: FROM DEVELOPMENT TO RETAIL MANAGEMENT FOR SPAS
MANAGEMENT HOSPITALITY INDUSTRY FINANCIAL ACCOUNTING
Third Edition Third Edition
Chuck Yim Gee Raymond S. Schmidgall/James W. Damitio
PLANNING AND CONTROL FOR FOOD AND BEVERAGE INTERNATIONAL HOTELS: DEVELOPMENT & MANAGEMENT
OPERATIONS Second Edition
Seventh Edition Chuck Yim Gee
Jack D. Ninemeier QUALITY SANITATION MANAGEMENT
UNDERSTANDING HOSPITALITY LAw Ronald F. Cichy
Fifth Edition HOTEL INVESTMENTS: ISSUES & PERSPECTIVES
Jack P. Jefferies/Banks Brown Fifth Edition
SUPERVISION IN THE HOSPITALITY INDUSTRY Edited by Lori E. Raleigh and Rachel J. Roginsky
Fifth Edition LEADERSHIP AND MANAGEMENT IN THE HOSPITALITY
Jack D. Ninemeier/Raphael R. Kavanaugh INDUSTRY
MANAGEMENT OF FOOD AND BEVERAGE OPERATIONS Third Edition
Fifth Edition Robert H. Woods/Judy Z. King
Jack D. Ninemeier MARKETING IN THE HOSPITALITY INDUSTRY
Fifth Edition
MANAGING FRONT OFFICE OPERATIONS Ronald A. Nykiel
Eighth Edition
Michael L. Kasavana/Richard M. Brooks UNIFORM SYSTEM OF ACCOUNTS FOR THE HEALTH,
RACQUET AND SPORTSCLUB INDUSTRY
MANAGING SERVICE IN FOOD AND BEVERAGE
OPERATIONS CONTEMPORARY CLUB MANAGEMENT
Fourth Edition Third Edition
Ronald F. Cichy/Philip J. Hickey, Jr. Edited by Joe Perdue and Jason Koenigsfeld for the Club Managers
Association of America
THE LODGING AND FOOD SERVICE INDUSTRY
RESORT CONDOMINIUM AND VACATION OwNERSHIP
Seventh Edition
MANAGEMENT: A HOSPITALITY PERSPECTIVE
Gerald W. Lattin
Robert A. Gentry/Pedro Mandoki/Jack Rush
SECURITY AND LOSS PREVENTION MANAGEMENT ACCOUNTING FOR CLUB OPERATIONS
Second Edition Raymond S. Schmidgall/James W. Damitio
Raymond C. Ellis, Jr./David M. Stipanuk
TRAINING AND DEVELOPMENT FOR THE
HOSPITALITY INDUSTRY MANAGERIAL ACCOUNTING HOSPITALITY INDUSTRY
Seventh Edition Debra F. Cannon/Catherine M. Gustafson
Raymond S. Schmidgall
UNIFORM SYSTEM OF FINANCIAL REPORTING FOR CLUBS
PURCHASING FOR FOOD SERVICE OPERATIONS Sixth Revised Edition
Ronald F. Cichy/Jeffery D Elsworth
HOTEL ASSET MANAGEMENT: PRINCIPLES & PRACTICES
MANAGING TECHNOLOGY IN THE HOSPITALITY Second Edition
INDUSTRY Edited by Greg Denton, Lori E. Raleigh, and A. J. Singh
Sixth Edition MANAGING BEVERAGE OPERATIONS
Michael L. Kasavana Second Edition
HOTEL AND RESTAURANT ACCOUNTING Ronald F. Cichy/Lendal H. Kotschevar
Seventh Edition FOOD SAFETY: MANAGING wITH THE HACCP SYSTEM
Raymond Cote Second Edition
ACCOUNTING FOR HOSPITALITY MANAGERS Ronald F. Cichy
Fifth Edition UNIFORM SYSTEM OF FINANCIAL REPORTING FOR SPAS
Raymond Cote
FUNDAMENTALS OF DESTINATION MANAGEMENT AND
CONVENTION MANAGEMENT AND SERVICE MARKETING
Eighth Edition Edited by Rich Harrill
Milton T. Astroff/James R. Abbey ETHICS IN THE HOSPITALITY AND TOURISM INDUSTRY
HOSPITALITY SALES AND MARKETING Second Edition
Fifth Edition Karen Lieberman/Bruce Nissen
James R. Abbey SPA: A COMPREHENSIVE INTRODUCTION
MANAGING HOUSEKEEPING OPERATIONS Elizabeth M. Johnson/Bridgette M. Redman
Revised Third Edition HOSPITALITY 2015: THE FUTURE OF HOSPITALITY AND
Aleta A. Nitschke/William D. Frye TRAVEL
HOSPITALITY TODAY: AN INTRODUCTION Marvin Cetron/Fred DeMicco/Owen Davies
Seventh Edition REVENUE MANAGEMENT: MAxIMIzING REVENUE IN
Rocco M. Angelo/Andrew N. Vladimir HOSPITALITY OPERATIONS
HOSPITALITY FACILITIES MANAGEMENT AND DESIGN Gabor Forgacs
Third Edition FINANCIAL MANAGEMENT FOR SPAS
David M. Stipanuk Raymond S. Schmidgall/John R. Korpi
06/12
CONTEMPORARY
CLUB MANAGEMENT
Third Edition
Edited by Joe Perdue, CCM, CHE,

and Jason Koenigsfeld, Ph.D., CHE, for the
Club Managers Association of America
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ISBN 978-0-86612-408-9
Editor: Jim Purvis
Cover Photos: Courtesy of Ocean Reef Club, Key Largo, Florida.

Contents
Preface.................................................................................................. xv
Part I: General Club Management..................................................... 1

1 Overview of Club Operations................................................. 3
What Is a Club?........................................................................................ 3
Ownership of Clubs................................................................................ 4
Equity Clubs • Non-Equity Clubs
Types of Clubs.......................................................................................... 6
Country Clubs • City Clubs • Other Types of Clubs
Club Membership.................................................................................... 11
Membership Categories • Reciprocity • Selection Process
• Member Discipline
Club Organizational Structure............................................................... 16
Equity Clubs • Non-Equity Clubs
Endnotes, Key Terms, Review Questions, Additional Reading,
Internet Sites, Case Studies............................................................... 26
Chapter Appendix: Sample Job Descriptions...................................... 36
2 The Board of Directors and the General Manager/

Chief Operating Officer.......................................................... 43
The Board of Directors............................................................................ 43
Board Structure • Written Records
The General Manager.............................................................................. 59
Starting a New Job • Chief Operating Officer Model • Management
to Leadership Model • Working with the Board • Other Tips for
Long-Term Success • Professional Development
Internet Sites, Case Studies............................................................... 71
3 Leading Clubs Effectively........................................................ 81

Background on Leadership.................................................................... 82
Leadership Frameworks
vi Contents
Leadership Theories................................................................................ 84
Armchair Theories • Other Leadership Theories and Models
Elements of Leadership........................................................................... 92
Power and Leadership • Group Behavior • Time Lag: A Leadership
Variable • Philosophy and Style • Evaluation • Leadership Skills
Motivational Theories............................................................................. 100
Expectancy Theory • Path-Goal Theory • Maslow’s Hierarchy of
Needs • Herzberg’s Two-Factor Theory
Goal Management................................................................................... 109
Setting and Achieving SMART Goals • Checking a SMART Goal
• Reinforcing Goals
Service Analysis as a Leadership Tool.................................................. 111
Service Operations Analysis • Service Management Assessment
• Practical Considerations
A Construct for Effective Club Leadership.......................................... 114
Use Objective Measures • Create and Establish Goals • Report
• Evaluate Progress • Reward
Time Management................................................................................... 120
Improving Time Management Skills • Meetings • Paperwork
Personal Leadership................................................................................ 126
Primary Values • Primary Strengths • Primary Individuals and
Experiences • Personal and Professional Goals and Objectives •
Planning Your Next Logical Steps
Endnote, Review Questions, Internet Sites.......................................... 135
4 Strategic Planning and Management....................................... 139

Organizational Strategic Planning: A Step-by-Step Process.............. 141
Agreeing on the Need • Needs Assessment • Setting Ground Rules
• Membership Input • Competitive Analysis • Strategic Planning
Retreat • Vision • Mission • Goals • Objectives
• Organizational Situation Analysis (SWOT) • Strategy Statement
• Budgets • Action Plan • Assessing Progress
Strategic Implementation Analysis....................................................... 173
Creation of Grand Strategy • Strategic and Long-Range Planning
Should Complement Each Other • The Strategic Plan as a Living
Document • Understanding the Internal and External Environment
• Using the Strategic Plan to Allocate Capital • Aligning Strategy
with Operations • Monitoring Goal Achievement • Ensuring the
Strategic Plan Is Used
Key Terms, Review Questions, Internet Sites...................................... 187
Contents vii
Part II: Club Communications, Marketing, and Human Resources..... 189
5 Effective Communication for Club Managers.......................... 191
Overview of Communication................................................................ 191
Types of Business Communication • How Communication Works
Communication Challenges................................................................... 192

Communication Myths • Communication Barriers • Personal
Biases and Communication
Speaking Skills......................................................................................... 198

Think About the Details • Speaking On the Job • Formal
Presentations
Listening Skills......................................................................................... 202

Obstacles to Listening • A Listening Model • Active Listening
Skills
Nonverbal Communication: Body Language...................................... 208

Facial Expressions • Posture and Body Movement • Gestures
• Body Language on the Job
Writing Skills............................................................................................ 211

Clear Writing Is Important • Business Writing Techniques • Plain
English and Short Sentences • Memos • E-Mail
Important Workplace Communication Issues..................................... 218

Relationships Between Staff Members • Relationships Between
Departments • Negotiations
Key Terms, Review Questions, Internet Sites...................................... 225
6 Club Marketing....................................................................... 229

Understanding the Role of Marketing.................................................. 229
Marketing Strategy • Situation Analysis • Service Marketing
• Internal Marketing
Understanding Buyer Behavior............................................................. 235

Consumer-Buyer Behavior • Organizational-Buyer Behavior
The Marketing Mix.................................................................................. 242

Product Concepts • Promotion Concepts • Place or Distribution
Concepts • Price Concepts
Marketing Research................................................................................. 259

Types of Research • Sources of Data
viii Contents
Toward an Ethical Approach to Club Marketing................................ 262
Endnotes, Key Terms, Review Questions, Case Study....................... 262
7 Membership Marketing........................................................... 269

Club Membership Marketing: An Introduction.................................. 269
Factors in Declining Club Membership • A Club’s Location and Its
Effect on Membership Size • Reasons Cited Why Marketing Is Not
Necessary in Private Clubs
The 4 P’s of Marketing............................................................................. 275
Product • Price • Place • Promotion
The Membership Marketing Plan.......................................................... 277
Steps in Developing a Membership Marketing Plan • Appropriate
Membership Marketing Plans
Attracting New Club Members............................................................. 279
Examples of New Initiatives • Other Recruiting Strategies
Membership Directors............................................................................ 290
Using Technology for Membership Marketing .................................. 291
The Internet • Databases
Conclusion................................................................................................ 292
Endnotes, Key Terms, Review Questions, Internet Sites, ................. 292
Appendix A: Sample Marketing Strategies.......................................... 295
Appendix B: Job Description for Membership Director.................... 298
Appendix C: Sample Membership Marketing Forms........................ 301
8 Managing Human Resources in Clubs..................................... 311

Workplace Antidiscrimination Laws.................................................... 312
Major U.S. Employment Antidiscrimination Laws
Recruitment.............................................................................................. 319
The Recruitment Process
Selection.................................................................................................... 320
Elements of the Selection Process
Orientation................................................................................................ 328
Orientation Kits
Performance Appraisals.......................................................................... 331
Functions of Performance Appraisals • Common Appraisal Errors
• Who Should Evaluate Performance? • How Often Should
Appraisals Be Conducted? • Performance Appraisal Methods
Contents ix
Discipline.................................................................................................. 338
Approaches to Discipline • Appeal Mechanisms • Discharge: The
Last Resort
Internet Sites, Case Study................................................................. 345
9 Training and Professional Development in Clubs.................... 355

The Essential Role of Training in Achieving Quality Service............ 355
Creating a Learning Environment for Quality Service • Training for
Quality Performance
Training and Development as an Investment in Clubs
and Their People................................................................................ 359
CMAA’s Commitment to Lifelong Learning • Return on Individuals
• Return on Investment
Assessing Training and Development Needs...................................... 364
The Needs Assessment Process
Orientation and Socialization................................................................ 368
Orientation • Socialization
Hourly Employee Training..................................................................... 372
Types of Training • The Four-Step Training Method • The Role of
the Trainer • Adult Learning • Evaluation of Training • Online
Training
Supervisory and Management Professional Development............... 380
Common Training Needs for Supervisors • Professional
Development for Managers
Outsourcing Training.............................................................................. 383
Advantages and Disadvantages of Outsourcing
Internet Sites....................................................................................... 385
Part III: Club Operations..................................................................... 389

10 Club Food and Beverage Operations....................................... 391
The Importance of Club Food and Beverage Operations.................. 391
Why Food and Beverage Operations Are Important • How Club Food
and Beverage Operations Compare to Other Hospitality Segments
Organization of Club Food and Beverage Departments.................... 395
Types of Food and Beverage Facilities in Clubs • Organization
Charts and Position Profiles
x Contents
The Importance of the Menu.................................................................. 399
The Food and Beverage Staff.................................................................. 404
Financial Aspects of Club Food and Beverage Operations............... 406
Monthly Food and Beverage Operating Statement • Food and
Beverage Minimums
The Future of Club Food and Beverage Operations........................... 410

Today’s Consumers Expect More and Spend More • Operators Must
Be at the Top of Their Game • Diner Profiles Reveal Food Attitudes
• Major Trends
Endnotes, Key Terms, Review Questions, Internet Sites, ................. 416

Appendix A: Sample Job Descriptions................................................. 420
Appendix B: Online Management Closing Report............................. 433
Appendix C: Club-Sponsored Special Events Matrix........................ 436
Appendix D: Using a CAD System for Visualizing Room Layouts.... 438
Appendix E: Sample Wedding Checklist............................................. 439
Appendix F: F&B Pocket Card............................................................... 445
11 Club Financial Management................................................... 447

Financial Statements................................................................................ 447
Statement of Financial Position • Statement of Activities
• Statement of Cash Flows
Analyzing Financial Statements............................................................ 462

Liquidity Ratios • Solvency Ratios • Activity Ratios
• Profitability Ratios • Operating Ratios • Ratios Presented to
Club Boards • Ratio Research Results
Budgeting.................................................................................................. 469
Operations Budget • Capital Budget • Cash Budget
Federal Income Taxes and Clubs........................................................... 479

Internet Sites, Case Study, Problems............................................... 480
12 Club Technology...................................................................... 487

System Basics............................................................................................ 488
Electronic Data Processing • Computer Hardware
Generic Software...................................................................................... 491

Word Processing Software • Spreadsheet Software • Database
Software
Accounting Systems................................................................................ 494

Contents xi
Club Software Applications................................................................... 497
Prospect Recruitment • POS Systems • Event Management
• Golf Course Management
System Interfacing................................................................................... 505
Interface Standards
System Upgrades..................................................................................... 508
Appoint a Project Team • Identify Information Needs • Establish
Requirements • Request Vendor Proposals • Host Site Surveys
• Evaluate Proposals • Schedule Product Demonstrations •
Negotiate a Contract
Club Websites........................................................................................... 514
E-Mail Messaging • The World Wide Web • Club Website
Considerations • Internet Protocols
Internet-Based Networks........................................................................ 520
Intranets
Key Terms, Review Questions, Additional Reading, Internet Sites. 522
13 Club Facility Management...................................................... 527

The Importance of Facility Management in Clubs............................. 527
Impact on Members • Impact on Employees • Impact on Financial
Success
Facility Management and Sustainability.............................................. 529
Sustainability and Private Clubs • Why Sustainability? • Golf
Courses and Sustainability
Facility Management Responsibilities.................................................. 531
Building Maintenance and Operations • Housekeeping and
Sanitation • Grounds, Utilities, and Site Maintenance • Waste
Management and Hazardous Materials • Energy Conservation and
Management • Fresh Water Resource Management • Function
Setup and Breakdown • Local, State, and Federal Code Compliance
Facility Quality Assessments................................................................. 535
Facility Condition Evaluation • Facility Function Evaluation
• Facility Quality Assessment
Building Projects...................................................................................... 539
Forming a Design and Construction Team • The Design Process
• Integrating Sustainability Into the Plan • Safety Concerns
• Construction Project Management • Construction Contract
Delivery Methods • Project Insurance and Surety • Commissioning
• Closeout
xii Contents
Conclusion................................................................................................ 548
Endnotes, Key Terms, Review Questions, Internet Sites................... 548
Chapter Appendix: Sample Request for Qualifications..................... 552
14 Managing Entertainment in Clubs........................................... 561

Determining the Entertainment Needs of Club Members................. 562
Auditioning and Interviewing • Club Members Who Book Their
Own Entertainment • Themed Events • Musical Entertainment
• Strolling Entertainment • Event Bands
The Business of Purchasing Entertainment......................................... 569

Talent Agencies • Purchasing Pointers • Event Producers/Planners
• Other Entertainment Resources
Entertainment Contract Negotiations................................................... 573

Licensing................................................................................................... 574
Public Performance or Performance Rights • Blanket License
Conclusion................................................................................................ 575
Endnote, Key Terms, Review Questions, Internet Sites..................... 575
Appendix A: Sample Name Artist Performance Contract................. 577
Appendix B: Sample Production Schedule.......................................... 579
Part IV: Club Sports............................................................................. 581
15 Golf Operations in Clubs........................................................ 583

History of Golf......................................................................................... 583
Golf Organizations • Rules of Golf
Golf Facilities............................................................................................ 586

Golf Course • Practice Facility • Golf Shop • Bag Room • Golf
Car Storage Facility • Maintenance of Golf Facilities
Golf Programs and Services................................................................... 590

Golf Standards • Tee Sheet Management • Handicap Systems
• Tournaments • Instructional Programs • Caddie Programs •
Golf Car Rentals
Golf Staff................................................................................................... 601

Golf Professionals • Other Golf Staff Positions

Internet Sites, Case Study................................................................. 609
Chapter Appendix: Sample Job Descriptions...................................... 613
Contents xiii
16 Golf Course Maintenance....................................................... 623
Greens and Grounds Department......................................................... 623
Golf Course Superintendent • Assistant Golf Course Superintendent
• Golf Course Maintenance Foreman • Equipment Mechanic •
Equipment Operator • Groundsperson • Laborer
Budget....................................................................................................... 631
Equipment................................................................................................ 633
Turfgrass Management and Maintenance............................................ 634
Turfgrass Species • Golf Course Sections • Turfgrass Management
Practices
Environmental Concerns........................................................................ 649
Water • Chemicals • Wildlife • Audubon Cooperative Sanctuary
Program
Internet Sites....................................................................................... 655
Appendix A: Sample Job Descriptions................................................. 659
Appendix B: Preparing the Course for a Tournament....................... 670
17 Club Fitness, Spa, Aquatics, and Tennis Operations................. 675

Fitness Operations................................................................................... 676
Fitness Center • Fitness Center Staff • Fitness Programs • Risk
Management and Liability Issues • Payment Policies
Spa Operations......................................................................................... 684
Spa Facilities • Spa Staff Compensation
Aquatics Operations................................................................................ 688
Aquatics Programs • Special Events • Aquatics Staff • Safety
Policies • Pool Operation and Maintenance
Tennis Operations.................................................................................... 697
Tennis Programs • Tennis Staff • Pro Shop • Maintenance
• Tennis Associations
Case Study........................................................................................... 704
Appendix A: American College of Sports Medicine (ACSM)
Certifications....................................................................................... 707
Appendix B: Sample Job Descriptions.................................................. 708
Index .................................................................................................... 729

Preface
C ontemporary Club Management, Third Edition, continues to be a product of the
partnership between club industry professionals and hospitality educators. The
Club Managers Association of America’s certification program for club managers
guides the development of the book; CMAA’s core club management competen-
cies serve as the foundation for chapter content. The third edition reflects CMAA’s
realignment of its club manager competencies with the addition of Interpersonal
Skills as the tenth competency and the change of the Management competency
to a more comprehensive Leadership competency. In keeping with this realign-
ment, a new chapter on communication has been added to this edition, as well as
a new chapter on club facilities management, which addresses another of the ten
competency areas. All of the other chapters, covering areas such as general club
management, marketing, human resources, club operations, and club sports, have
been carefully updated and revised.
The authors who contributed to this book were chosen for their proven expe-
rience in hospitality education and the club industry. The overriding goal of Con-
temporary Club Management is to provide both club managers and students of club
management with a thorough overview of the competencies needed for success in
the club environment. The text explores the unique aspects of club management
and outlines what it takes to be successful as a leader in the club industry. Manag-
ing a private club requires knowledge, skills, flexibility, vision, diplomacy, stam-
ina, empathy, patience, integrity, common sense, uncommon energy, and—above
all—a never-ending dedication to provide extraordinary service to club members
each and every day. The hope of everyone who worked on the third edition of Con-
temporary Club Management is that readers will find much that will inform, chal-
lenge, and inspire them in its pages.
Acknowledgments
A textbook is the result of contributions from many individuals. This book is no
exception, and in fact is perhaps an extraordinary example of the dedication it
takes from so many people to turn a book from an idea into a reality.
First, I would like to welcome Jason Koenigsfeld, Ph.D., CHE, as the co-editor
of the third edition. Jason serves as the Senior Vice President—Professional Devel-
opment for the Club Managers Association of America. He brings a new perspective
to the book with his extensive educational background in the hospitality indus-
try and his unique experiences within, and understanding of, the club industry.
Every day, Jason works in the trenches to provide the highest-quality club man-
agement education to club managers and others, both in the United States and
around the world.
Sadly, we have lost two of our most supportive industry icons and contribu-
tors to the development of the book’s earlier editions with the passing of Sally
Burns Rambo, who served on the original task force, and Kathleen S. Nelson, who
served as a chapter author for the first two editions. My friendships with these
xvi Preface
two ladies will always be cherished, and the leadership that both Sally and Kathy
provided to the club and hospitality industries will be sorely missed.
Next, I would like to thank the other industry professionals who served on
the original task force for the planning of Contemporary Club Management. They
included G. Mead Grady, CCM, Brian R. Kroh, CCM, Jonathan F. McCabe, CCM,
C. Douglas Postler, CCM, and Michael Wheeler, CCM. These individuals pro-
vided insight and guidance for the development of the initial work. I would also
like to thank the individuals who helped create the case studies for the first and
subsequent editions. They included Cathy Gustafson, Ph.D., CHE, CCM; Kurt D.
Kuebler, CCM; and William A. Schulz, MCM.
Thank you to the authors of individual chapters for their work in developing
new chapters or revising chapters from the previous editions. Thank you to Josh
Feuerstein, Director of Research and Industry Services of the Club Managers Asso-
ciation of America, for providing access to surveys and documents.
Special thanks go out to Paul M. G. Astbury, President, and Molly Carroll,
Director of Communications, of the Ocean Reef Club in Key Largo, Florida, for
the beautiful pictures of Ocean Reef Club that appear on the cover of this edition.
And last but by no means least, thank you to Jim Purvis of the American Hotel
& Lodging Educational Institute for his unwavering energy and enthusiasm in
heading the project at the Institute and providing an unbelievable dedication to
quality and excellence. Jim also headed the project for the first edition, and has
truly become a “club expert.” Also, thank you to George Glazer, Tim Eaton, Shan-
non Cantwell, Matthew Haas, Gary Logan, and Kim Ricciardo from the Institute,
all of whom worked on or otherwise provided support for the third edition.
Joe Perdue, CCM, CHE,

Academic Advisor, Club Managers Association of America, and
Executive Director of Global Hospitality Initiatives for the School of Hospitality,
Georgia State University, Atlanta, Georgia
Part I
General Club
Management
Chapter 1 Outline Competencies
What Is a Club? 1. Define the nature, ownership, and
Ownership of Clubs types of private clubs. (pp. 3–11)
Equity Clubs 2. Describe facets of private club
Non-Equity Clubs membership, including categories,
Types of Clubs reciprocity, and discipline procedures.
Country Clubs (pp. 11–15)
City Clubs
Other Types of Clubs 3. Explain how the boards and
Club Membership committees of private clubs are
Membership Categories structured. (pp. 16–22)
Reciprocity 4. Summarize the duties of a club’s
Selection Process general manager, club professionals,
Member Discipline and typical department managers.
Club Organizational Structure (pp. 22–26)
Equity Clubs
Non-Equity Clubs 5. Describe the organizational structure
of a non-equity club. (p. 26)
1
Overview of Club Operations
This chapter was written and contributed by Joe Perdue, CCM, CHE, Academic
Advisor, Club Managers Association of America; and Executive Director of
Global Hospitality Initiatives, Georgia State University, Atlanta, Georgia.
In 1890, applying for a charter for the Philadelphia Country Club, John C. Bullitt
wrote the following:
Most of the [club’s] subscribers are heads of families, the inducement to
whom is that they, as well as their wives and sons and daughters, can
visit the club for the purpose of recreation and pleasure without encoun-
tering any person or anything which will in the least degree be inconsis-
tent with good behavior or good manners.1
This statement aptly describes the historical essence of what private clubs are all
about. Clubs today, however, face challenges that did not exist a century ago. Life
is more complex and so are clubs and club management. Members are as likely to
be women as men. Today’s clubs need well-educated, professional club managers.
Clubs today operate under many different types of ownerships and are designed
to meet many different needs. The membership options vary among clubs and the
organizational structures have become ever more complex.
Club managers are professionals who use their expertise to make private clubs
special places for their members. This chapter explores what makes clubs unique.
What Is a Club?
A private club is a place where people with a common bond of some type—similar
interests, experiences, backgrounds, professions, and so on—can congregate for
social and recreational purposes. By definition, a private club is a place that is not
open to the public; an individual must be accepted by the rest of the membership
before he or she may join. Once someone is accepted, he or she usually must pay
an initiation fee and monthly membership dues. Some clubs also have minimum
spending requirements for members (members must spend a certain amount of
money each month or year in the club’s food and beverage outlets, for example).
Why do people join private clubs? Some desire an exclusive atmosphere
and see club membership as a statement of social position. Others join clubs
because of the recreational facilities, or because the club is convenient for them:
perhaps the club is close to their home or business, or they appreciate the fact
that they are not faced with long waits to be seated at the club’s dining facilities
or don’t have as much trouble getting a golf tee time at their club as they would
at a public golf course. Some people see club membership as a way to get ahead
3
4 Chapter 1
in business, because other people in their professions are also members of their
clubs or because their clubs give them an impressive place to entertain busi-
ness clients. Some people are given club memberships by their companies as an
employment perk. Other people join clubs because club membership is a family
tradition. And still others simply enjoy the personal recognition and service they
receive at a private club.
Private clubs are built for many reasons. U.S. clubs that began in the nine-
teenth century or earlier were often started by a small group of individuals who
decided to each put up a sum of money to buy a piece of land or an already-exist-
ing building and begin a club for purely social reasons. Many modern-day private
clubs are built by developers as a way to help them sell homes; the club and its golf
course are the centerpiece of a housing development, and individuals who buy the
homes surrounding the club either are automatically members of the club or have
the option to become members.
Part of the appeal of private clubs is their unique environment. Private clubs
tend to have the best of furnishings and impressive, well-kept grounds. The goal
of most private clubs is to provide a level of service that is rarely found in public
facilities. A member’s club is a place where the member is called by name and is
treated as someone special; a club is the member’s home-away-from-home.
All of a club’s facilities face competition from public facilities. Competitors of
a club’s food and beverage outlets are independent gourmet restaurants, family-
dining chain restaurants, and even fast-food restaurants (if a club has a fast-food
type of food and beverage outlet). Public golf courses compete with a club’s golf
facilities. Public health clubs, including many large chain operations, compete
with the fitness facilities of private clubs. Spas, luxury resorts, and hotels pamper
their guests with extraordinary service and compete with private clubs for a club
member’s discretionary dollars. All of these competitive pressures make it essen-
tial that private clubs be led by professional managers who can provide quality
club products and the extraordinary level of service members want, at a cost mem-
bers perceive as giving their club membership high value.
Ownership of Clubs
Private clubs are owned in one of two ways: they are either member-owned clubs,
called equity clubs, or non-member-owned clubs, called non-equity clubs. Non-
equity clubs may be owned by real-estate developers, corporations, or other
owners.
Equity Clubs
Equity clubs are clubs owned by their members and governed by a board of direc-
tors elected by the members. In effect, the members are not just “customers,” but
also shareholders (they own equity in the club). Each member has a vote when it
comes to electing board members or deciding major club issues (unless the mem-
ber has purchased a type of membership that does not include voting rights). The
managers of equity clubs work directly for the members, since the members own
the club. Equity clubs are usually established as nonprofit corporations that are
Overview of Club Operations 5
The Origins of Private Clubs

Although English social clubs and the golf club of St. Andrews in Scotland are the
direct forerunners of city clubs and country clubs in the United States, the origins of
clubs extend back to ancient times. For example, the Roman baths can be viewed
as clubs, in the sense that the baths were establishments run by managers in which
selected groups of people met with their peers for recreational and social purposes.
In some respects, the merchant and craft guilds of medieval Europe resembled clubs.
Clubs have been an integral part of the social fabric of upper-class English
society for centuries. The origins of English city clubs lie in the coffeehouses that
sprang up in the mid-seventeenth century with the importation of coffee. The first
coffeehouses were formed at three major English universities: Oxford, All Souls, and
Cambridge. The Oxford coffeehouse was the first to be called a club.
Early London city clubs featured extensive libraries and cultivated a quiet,
relaxed atmosphere where members could read the Times or hold quiet conversa-
tions. Venerable London clubs such as White’s and the Marlborough Club are still
open today, having survived economic depressions, political upheavals, radical social
changes, and two world wars.
The Royal and Ancient Golf Club of St. Andrews, established in Edinburgh in
1754, is world renowned for its contributions to the game of golf; the club’s commit-
tees have formulated and periodically updated the rules of golf during the more than
200 years of the club’s existence. This club is considered the first country club.
Clubs in the United States

The first U.S. city clubs were established in the Colonies during the eighteenth century.
These were loosely formed men-only social clubs that met in lodges or taverns, where
the men drank rum and other alcoholic beverages and discussed the news of the day.
A wave of city-club building occurred in the mid-nineteenth century. The Som-
erset Club in Boston was founded in 1842; the San Francisco Commercial Club
and Honolulu’s Pacific Club were founded in 1851. The Pacific-Union Club in San
Francisco dates from 1852, Delaware’s Wilmington Club from 1859. The Olympic
Club in San Francisco, the Union Leagues in Philadelphia and New York City, and
the Rochester Club in Rochester, New York, were all organized during the Civil War.
Then as now, U.S. city clubs were organized primarily to provide a place for individu-
als with similar interests to dine and socialize together.
The Country Club in Brookline, Massachusetts, founded in 1882 with antecedents
to 1860, is generally considered the oldest U.S. country club. Until the 1940s, country
clubs were reserved for the most affluent members of U.S. society; applicants were
carefully screened by powerful membership committees, and merely submitting one’s
name for membership sometimes required tremendous influence. However, during
World War II, hundreds of thousands of ordinary servicemen were exposed to the
game of golf on military bases, and after the war they generated a demand for public
golf courses and affordable clubs with golf facilities. This led to the vast country club
construction programs of the sixties, seventies, and eighties. Today country club mem-
bership is within the reach of many more Americans than in the past.
Sources: Ted E. White and Larry Gerstner, Club Operations and Management, 2nd ed. (New
York: VNR, 1991), pp. 5–9; Club Management Operations, 4th ed. (Dubuque, Iowa: Kendall/
Hunt, 1989), p. 2; and Rocco M. Angelo and Andrew N. Vladimir, Hospitality Today: An
Introduction, 7th ed. (Lansing, Mich.: American Hotel & Lodging Educational Institute,
2011), p. 244.
6 Chapter 1
exempt from federal income taxes and some state and local taxes. Most private
clubs are equity clubs.
Non-Equity Clubs
Non-equity clubs represent another form of ownership; the assets of the club are
owned by an individual or a corporation, not the club’s members, and the mem-
bers’ control over the club is much more limited. Members do not often partici-
pate in major policy decisions, as they do in equity clubs, and club managers in
non-equity clubs work for the club’s owners, not the members. Non-equity clubs
typically are not tax-exempt; they are usually for-profit organizations. Most non-
equity clubs are corporate clubs or developer-owned clubs.
Types of Clubs
Clubs are hard to categorize, because there can be so much variation among clubs
within a category, and because so many clubs can be categorized in more than
one way (an athletic club is also usually a city club, for example). Most clubs fall
into one of two broad categories: country clubs or city clubs. While this is help-
ful, these categories refer primarily to location and only hint at the nature of the
clubs. However, for purposes of discussion, it is useful to divide clubs into three
categories: country clubs, city clubs, and “other” or specialty clubs. (While read-
ing the following sections, keep in mind that the club descriptions are general in
nature and that, as just mentioned, there are many variations among the clubs in
each category.)
Country Clubs
A country club is a club that has a clubhouse and enough acreage for a golf course;
most country clubs have other sports facilities as well. Country clubs are the most
common type of private club in the United States. See Exhibit 1 for a sample orga-
nization chart for a small country club.
In addition to a golf course and its ancillary facilities (which typically include
a driving range, chipping and putting practice areas, golf car storage facilities, and
buildings for golf course maintenance equipment), most country clubs have ten-
nis courts and swimming pools for member use, and may also have such varied
recreational facilities as the following:
•• A fitness center with exercise rooms, weight-lifting areas, and courts for bas-
ketball, volleyball, squash, racquetball, and handball
•• Billiard rooms
•• Sauna and steam rooms
•• Croquet areas and areas for other lawn games
•• Spas
•• Stables and trails for horseback riding
•• Skeet, archery, rifle, and pistol ranges
Exhibit 1 Sample Organization Chart for a Small Country Club
8 Chapter 1
•• Skating rinks
•• Cross-country skiing trails
A country club’s recreational facilities are limited only by what its members want
and what they can afford. For example, some country clubs have what amount
to golf teaching centers, with large indoor driving facilities so that members can
practice their swings during the winter months. These centers may include video
rooms where members can be videotaped swinging a golf club; later they can
sit down and watch their videos with the club’s golf pro and have their swings
critiqued.
In addition to recreational facilities, it is common for country clubs to offer
formal and informal dining outlets and a variety of beverage facilities. Country
clubs typically have one or more pro shops that sell golf and tennis equipment
and apparel, and locker rooms for members who use the club’s recreational facili-
ties. Some country clubs have massage rooms or spas in or near the locker rooms.
A country club might also have rooms set aside in the clubhouse for members
who play cards (bridge, gin rummy, poker, and so on). A few also offer overnight
accommodations, though this is more typical for city clubs.
City Clubs
City clubs are the second most common type of private club. A city club is usu-
ally housed in a building or part of a building located within a city or in a subur-
ban office complex. Some city clubs offer only food and beverage services to their
members and consist of little more than a restaurant and a bar or cocktail lounge.
Other city clubs have multiple food and beverage facilities, meeting rooms, indoor
sports facilities (billiard rooms, swimming pools, weight-lifting/fitness facilities,
and so on), reading rooms/libraries, and overnight accommodations for members
and guests. Very large city clubs might also have parking garages or decks, bar-
ber/beauty shops, and floral shops. The main purpose of a city club is to serve the
business, entertainment, and social needs of its members in an urban setting. City
clubs usually offer fine dining to members and their guests, and may cater special
parties and banquets for members. See Exhibit 2 for a sample organization chart
for a city club.
Other Types of Clubs

Other types of clubs include military, athletic, university, tennis, yacht, corporate,
and developer-owned clubs. (There are other types of clubs as well, such as polo,
rowing and paddling, shooting, and swim clubs, but they are relatively rare com-
pared to the clubs discussed in the following sections.)
Military. All branches of the military operate military clubs for officers and enlisted
personnel. All of these clubs used to be managed by military personnel; however,
as the U.S. military has been restructuring, most military clubs are now run by
civilian managers or the function is contracted out. Most of these clubs are similar
to city clubs in the facilities and services they offer. Some are more elaborate, how-
ever, and offer additional facilities and services. With appropriated funding being
Exhibit 2 Sample Organization Chart for a City Club
10 Chapter 1
directed to combat-related activities, military clubs must now operate on a profit-

able or break-even basis.
Athletic. Private athletic clubs offer members such fitness and sports facilities
as gyms, swimming pools, racquetball and handball courts, weight-lifting areas,
and exercise rooms. Many athletic clubs also have food and beverage facilities and
operate similarly to city clubs. Like city clubs, some athletic clubs also offer hotel-
style overnight rooms for members and their guests. A few athletic clubs even
offer golf; these clubs closely resemble country clubs.
University. As the name implies, university clubs are clubs for university gradu-
ates, faculty, certain levels of university staff, and friends of the university. Most
university clubs are for individuals from a single university; others, like the Uni-
versity Club in Seattle, are not affiliated with a single school; you only have to be
a university graduate in order to join. Typical facilities for university clubs include
dining facilities, meeting and banquet rooms, libraries, and sometimes fitness
facilities and overnight accommodations.
Tennis. A tennis club is organized around the game of tennis and provides tennis
courts and other tennis facilities and services to its members. A tennis club might
also have a clubhouse with food and beverage outlets, banquet rooms for member
parties, and additional athletic facilities.
Yacht. Yacht clubs are located on large bodies of water and are designed for peo-
ple who own boats or enjoy boating. Some yacht clubs allow only sailboats, others
only powerboats, and others allow both. Yacht clubs offer marina services such
as wet and dry storage, refueling facilities, and dock services (electricity, sewage
disposal facilities, and so on). Yacht clubs also have a clubhouse and provide food
and beverage services for members; some also have a swimming pool and other
athletic facilities.
Corporate. Corporate clubs are owned by one or more individuals or a large cor-
poration and are expected to operate at a profit. Members of corporate clubs pur-
chase a membership in the club, not an equity share. A corporate club is usually
managed by a general manager hired by and responsible to the owners. Members
have little or no say in the operation of a corporate club. If there is a board of gov-
ernors in a corporate club, it is strictly advisory in nature, as are a corporate club’s
committees.
There are more than sixty management companies that either own or man-
age clubs. Some management companies are very large, such as ClubCorp and
American Golf, which own or manage hundreds of clubs; on the other end of the
spectrum, some management companies own or manage only one club.
The most widely known corporate-club company is ClubCorp. In 1957, Rob-
ert H. Dedman started the first of several companies that eventually evolved into
the Club Corporation of America (CCA) and was later renamed ClubCorp. Club-
Corp owns and operates clubs as well as provides management services to equity
(member-owned) clubs. ClubCorp is a multi-faceted company, operating more
than 170 clubs, resorts, semi-private and daily-fee golf courses, and real-estate
developments worldwide.
A corporate club can also be a single private club owned by a corporation as
part of its real-estate holdings or for the purpose of providing a club for the cor-
poration’s employees. For example, the DuPont company originally built its own
club—the DuPont Country Club—in Wilmington, Delaware, for DuPont employ-
ees and their families.
Developer-Owned. As mentioned earlier, many private clubs are built by devel-

opers to enhance the attractiveness of a housing development. Usually, develop-
ers do not want to retain ownership of such clubs; rather, they seek to maximize
their investment by selling the clubs to a club corporation or to the surrounding
homeowners through equity conversion programs, turning the clubs into equity
(member-owned) clubs. With an equity conversion program, a separate nonprofit
corporation is formed to sell club memberships to the development’s homeown-
ers. An equity club conversion may be implemented at the beginning of the resi-
dential development (an “up-front” conversion), after the sale of a portion of the
residential units (a “midterm” conversion), or at a point when most or all of the
houses are sold (a “tail-end” conversion). Once developer-owned clubs are turned
over to their members, they are organized and operated like other equity clubs.
In some residential communities with an associated club, the club’s GM/COO
has the added responsibility of managing the homeowners association as well,
with all of the various legal, governance, and community-resident issues involved.
Management of these unique entities requires a special skill set. An excellent
resource regarding homeowner association management is Managing the HOA-
Residential Golf Community, published by the Club Managers Association of
America. Another resource is the Community Associations Institute (CAI). CAI
(www.caionline.org) provides information, education, and certification programs
for individuals involved in community management.
Club Membership
If someone were to tell you “I’m a member of the ABC Club,” you would have
to ask him or her several more questions before you would know what kind of
privileges the person enjoyed at the club. That is because today many clubs offer a
variety of membership options to encourage club membership.
Although clubs tend to be exclusive, they must balance their exclusivity with
their need to generate revenue so that they can be operated and maintained in an
efficient manner. Clubs also have to take into account the optimum capacities of
their facilities, such as their golf courses. Therefore, clubs have created numerous
membership categories in addition to the traditional “full membership,” which
entitles a member to everything the club has to offer but also obligates the mem-
ber to pay the highest initiation fees and dues. Other membership categories give
people an opportunity to join a club for less money, in exchange for enjoying
fewer club privileges. This “unbundling” of club services allows individuals or
families to join a club and pay for only those facilities and services they really
want or will use.
12 Chapter 1
Membership Categories
Because so many membership categories exist within private clubs, in the fol-
lowing sections we will confine our discussion to the most common ones: regu-
lar, social, nonresident, junior, and senior. To give you an idea of the large vari-
ety of membership categories, we will also briefly mention other, less common
memberships.
Regular. A regular membership, also referred to as a full, resident, or stock mem-

bership, gives the member full use of all of the club’s facilities as well as voting
rights and the right to hold office. As mentioned earlier, this type of membership
has the highest dues and initiation fees. There is also usually an age requirement
attached to this type of membership; the minimum age for a regular member var-
ies from club to club but is usually somewhere in the early thirties. This require-
ment makes it more likely that a regular member has attained a certain business
or professional status. In most cases, a regular member’s spouse and children can
also enjoy all of the club’s facilities at no extra cost.
Social. A social membership, also called a house membership, gives a member

the use of the clubhouse and its facilities, but does not allow the member to use
the club’s other facilities (golf course, tennis courts, and so on) unless the mem-
ber pays a user fee. At some clubs, social members are further restricted; they are
only allowed to use the club’s other facilities on specified “slow” days. Other clubs
define their social membership a bit differently; social members are allowed to use
the clubhouse and all recreational facilities with the exception of golf.
Nonresident. The nonresident membership category is for members who live a

certain distance from the club (the distance is specified in the club’s bylaws). This
membership is usually available for lower dues than the regular membership—the
assumption being that, because nonresident members live some distance from the
club, they will use the club less frequently than other members. At some clubs, the
nonresident category may restrict the number of times the member can use the
club within a specified period of time—for example, a nonresident member may
only be able to use the club two times a month.
Junior. A junior membership is for individuals, usually the children of regular

members, who have not yet attained the age required for regular membership but
are too old to be afforded membership status on the basis of their parents’ mem-
bership. Junior members are entitled to use all of the club’s facilities, but rarely
have an equity interest in the club. Dues and initiation fees for this type of mem-
bership are lower than those for regular members.
Senior. A senior membership, sometimes called a life membership, is for club

members who have been members of the club for a specified number of years and
have reached a certain age. Dues for senior members are lower than for regular
members. Clubs created this membership category (1) to take into account that
the income of some club members goes down when they reach their senior years,
and (2) to reward club members who have been members of the club for many
years. However, clubs must be careful in setting requirements for this member-
ship; otherwise, a club might have so many senior members that its revenues are
substantially reduced. A club might require, for example, that a club member have
a total of ninety points in order to qualify for a senior membership—the point total
being some combination of the member’s age and his or her years with the club
(a seventy-year-old member who had been a member of the club for twenty years
would qualify, for example).
Other. Other memberships less common than the memberships just discussed
include founder, absentee, surviving spouse, honorary, and clergy.
Founder. Some clubs have a founder membership category that designates
members who provided funds to initially build or purchase the club. Dues may be
reduced for founder members.
Absentee. An absentee membership is sometimes extended to members who
will be out of the state or country for a year or more, during which time dues are
suspended.
Surviving spouse. If a club member dies, many clubs have a surviving-spouse
membership category that allows the member’s spouse to become a member of the
club in the same membership category that the deceased member was in, or in a
special category requiring lower dues but with more limited rights (for example,
no voting privileges or right to hold office).
Honorary. Some clubs elect honorary members to the club, such as politi-
cians and other community leaders. These members usually have all the rights
and privileges of regular members, except that they usually cannot vote or hold
office. Honorary members usually do not pay initiation fees and pay lower dues
or no dues at all.
Clergy. Some clubs grant clergy memberships to members of the clergy in
their local communities. These members usually have all the rights and privileges
of regular members, except that they cannot vote or hold office. Clergy members
generally pay no initiation fees and may pay lower dues.
Reciprocity
A discussion of club membership would not be complete without some mention
of reciprocity. Reciprocity refers to agreements clubs make with each other so that
their members who are traveling can visit other private clubs and enjoy their facili-
ties and services while the members are away from their home clubs. For example,
a city club might have reciprocity agreements with other city clubs throughout
the United States as well as internationally. Members of this city club would be
allowed to use these other city clubs when they travel. Charges are usually billed
back to the member’s home club.
A club can also have reciprocity agreements with nearby clubs, so that mem-
bers can use another club when theirs must be closed for a substantial amount of
time. Some clubs close down for a few weeks each year to give all of their staff
members a vacation at once; others close down for two weeks for maintenance and
minor renovation. Or, a club might have to close for a substantial period of time
during a major renovation or after a fire or other disaster.
14 Chapter 1
Exhibit 3 Sample Nomination for Membership Checklist
Proposer and Seconder Checklist

Completion Date
1. Proposer Complete and return Candidate Questionnaire
and Confidential Questionnaire. _______
2. Seconder Complete and return Confidential Questionnaire. _______
3. Proposer List the names of five members writing letters of
endorsement, and follow-up with the Membership
Director to see they are being submitted in a
timely fashion.
_______
_______
_______
_______
_______
4. Formal Candidate Profile received and sent to Candidate. _______
5. Interview Date.
NOTE: The Candidate and spouse, if married,
accompanied by the Proposer and Seconder
must attend.
Proposer Please be sure the proposed Candate has been
advised of the current rates for Initiation Fee,
dues, and Long-Range Capital Plan Assessment.
REMINDER: All completed forms and the five letters of
endorsement are to be sent to:
Chairperson of Admissions
___________________ Club
Membership Office
Selection Process
If you want to become a member of a private club, first you must be nominated
for membership. Some clubs allow candidates for membership to apply directly
to the club; at other clubs, a member (or more than one member) must sponsor a
candidate’s nomination. See Exhibit 3 for a sample nomination checklist.
The selection process for prospective members is governed by the club’s
bylaws. Typically, nominations are reviewed by the club’s membership committee.
Some members of the committee might check the references of candidates; others
might interview the candidates and their spouses (if the candidates are married).
The committee then notifies the club’s membership of the candidates and asks for
comments for or against admitting them to the club. The list of candidates and the
call for comments may be published in the club’s newsletter, posted in the club-
house, or mailed directly to members. Common reasons that members have for
objecting to a candidate include personal dislike, the fact that the candidate is a
business competitor, or a feeling that the candidate isn’t compatible with the char-
acter of the club. After taking these comments into consideration, the membership
committee sends a recommendation to the club’s board, and the board votes on
whether to accept or reject each candidate. At some clubs, the board may arrange
to meet the candidates before voting.
Member Discipline
A club’s bylaws spell out rules for using the club that members must abide by.
Clubs have the authority to create additional rules if necessary. A club has the right
to suspend or expel any member who violates the club’s bylaws or other club rules
or whose conduct is otherwise improper and not in the best interests of the club.
(It should be noted that suspension and expulsion are matters decided by a club’s
members, not its managers.)
Typical reasons for suspending or expelling a member include the following:
•• Conduct unbecoming a member of the club

•• Conviction for a crime
•• Harassment of other members or staff
•• Nonpayment of club dues or other bills
•• Flagrant and repeated violation of club rules
A member facing suspension or expulsion usually receives a notification out-

lining why the club is considering such a drastic action and inviting the member
to respond.
Suspending or expelling a club member is a very rare event, and a club must
undertake such an action with great care. Proper documentation is critical, and
the club’s legal counsel should be consulted. In practice, when expulsion is being
considered, the club’s board may choose to give the member a chance to resign
from the club before expulsion takes place.
Besides suspension or expulsion from the club, there are other ways that a
club can discipline members. For example, a club may suspend a member’s privi-
lege to use a certain club facility. If a member becomes enraged over a bad golf shot
and damages part of the golf course by whacking trees or smashing flowers, the
member’s golf privileges might be suspended for a period of time. Or, if members
have large and growing club bills that they have neglected to pay for a significant
length of time, in the past some clubs have posted the names of these delinquent
members on a club bulletin board or in the club newsletter, hoping to embar-
rass the members into paying. Because of possible legal actions by angered club
members, even this action should be given careful consideration. A less drastic
method of encouraging club members to pay their bills on time is for the club to
impose late-payment penalties on members.
16 Chapter 1
Club Organizational Structure

A club’s organizational structure depends in part on whether the club is an equity
club or a non-equity club.
Equity Clubs
To govern the club, provide assistance to club managers, and carry out other func-
tions, members of equity clubs elect fellow club members to serve on the club’s
board of directors. The elected president of the club appoints club members to
serve on the club’s committees. The club’s general manager actually runs the club
on a day-to-day basis. The club’s department managers and professionals report to
the general manager, and the general manager reports to the board.
In the following sections we will take a closer look at the organizational com-
ponents and positions that make up an equity club:
•• Board of directors
•• Executive committee
•• Other club committees
•• General manager
•• Club professionals
•• Department managers
•• Employees
Board of Directors. Generally speaking, an equity club’s board of directors (called
a board of governors at some clubs) makes club policies and governs the club. A
club board is made up of directors (the number varies from club to club) and the
club’s officers—president, vice president, secretary, and treasurer. The club’s gen-
eral manager attends board meetings but is not considered a board member.
A board’s specific duties and responsibilities are spelled out in each club’s
bylaws. Typical responsibilities include establishing general operating policies;
overseeing the financial stability of the club (which includes reviewing the club’s
financial statements, approving its operating budget, taking action if the budget is
not being followed, and so on); voting on new member candidates; and handling
member discipline problems, including voting on whether to suspend or expel
members.
Another very important responsibility of the board is to hire the club’s general
manager. The board should also evaluate the general manager at least once a year.
Some boards shy away from this responsibility, but this does a disservice to the
club and the manager. General managers can perform better if they have a clear
understanding of what their boards expect of them. As one board president put it,
“Not so long ago, our club was at a standstill. And we soon realized why: our gen-
eral manager spent so much time trying to figure out what the board wanted him
to concentrate on that he never had time to get his real job done.”2 A club board
shouldn’t micro-manage the general manager, but give overall directions, such as,
“We think you should give developing new member services a very high priority,
Exhibit 4 Summary of a Club Board’s Ideal Relationship with the Club’s
General Manager
Ideally, a club’s board of directors should:

1. Delegate responsibility for all of the club’s operational functions to the general
manager.
2. Consult with the general manager on all matters that the board is considering.
3. Share all official board communications with the general manager.
4. Make all of the club’s staff responsible to the general manager.
5. Hold the general manager accountable for the supervision of all club staff
members.
6. Give the general manager counsel and advice.
7. Support the general manager in all the decisions and actions he or she takes
that are consistent with the policies of the board and the standards of the club.
8. Give the general manager a performance evaluation at least once a year.
since new services will help us grow and accomplish the financial goals we’ve set
for the club.”
Ideally, the club’s president should conduct the general manager’s evaluation,
because it is very difficult for an entire board (especially if it is a large one) to hold
productive evaluation sessions.
Above all, a club’s board should avoid the temptation to try to actually run
the club; that job belongs to the general manager. The board should restrict itself
to setting policy and overseeing the club’s operation, not actually giving directions
to club managers and employees. (See Exhibit 4 for a summary of a club board’s
ideal relationship with the general manager.)
The term of office for board members varies among clubs. Whatever their
length, terms should be staggered to keep new blood and new ideas flowing to the
board while maintaining some measure of continuity: part of the board—one-half
or one-third, for example—might be elected each year.
Executive Committee. If a club has an executive committee, it is usually composed
of the club’s officers (president, vice president, secretary, and treasurer). Some-
times the club’s immediate past president is included, and the bylaws of some
clubs permit the current president to appoint additional members if necessary.
An executive committee usually has duties and responsibilities similar to
those of the board of directors. It essentially is a “mini-board” that acts in lieu of
the club’s full board between board meetings, whenever an emergency comes up,
or when something minor must be handled quickly that doesn’t necessitate calling
the whole board together.
Other executive committee duties vary depending on the club and might
include the following:
18 Chapter 1
•• Handles matters considered too sensitive for the full board

•• Monitors the performance of the full board
•• Monitors the performance of club managers
•• Serves as a bridge between the full board and the club’s general manager on
sensitive issues, taking the board’s concerns to the general manager and the
general manager’s concerns to the board
•• Receives reports in detail so as to conserve the full board’s time
•• Prioritizes issues to be brought before the full board for resolution
•• Revisits the club’s mission statement periodically to help keep club efforts in
focus
•• Conducts a performance appraisal of the general manager (rather than the
club president alone or the board as a whole)
The executive committee usually has a regular monthly meeting but should
also be prepared to meet whenever the president deems it necessary.
The club’s general manager should participate in executive committee meet-
ings, just as in meetings of the entire board, unless the committee is in executive
session.
Other Club Committees. Other club committees exist to (1) perform the respon-
sibilities assigned to them by the club’s board or bylaws, (2) advise the board and
help it carry out certain responsibilities and duties, (3) provide input and assistance
to club managers, and (4) listen for suggestions and other feedback from members
and act as liaisons between club members and the club’s board and managers.
There are two types of club committees: standing and ad hoc. Standing com-
mittees are permanent committees that help the club conduct ongoing activities.
Ad hoc committees are formed for a special purpose, such as assisting with a
bigger-than-usual golf tournament, researching the club’s history and making
preparations for a club’s centennial celebration, or helping plan a club renovation.
An ad hoc committee is usually focused on a single problem or issue and remains
in existence until that problem or issue is resolved, which might take a few days, a
few months, or even longer. The club’s board dissolves an ad hoc committee once
its purpose is served.
The club’s president usually appoints the chairpersons of the various commit-
tees. Sometimes the president also appoints the committee members, sometimes
this is left up to each committee’s chairperson, and—in a few cases—the club’s
general membership elects people to committees—it all depends on the particular
club. Typically, chairpersons of the club’s major committees (such as finance and
golf) are also members of the club’s board of directors. The club president is an
ex-officio (nonvoting) member of every club committee and is free to attend all
committee meetings, but should not feel obligated to do so.
Club committees vary in size, depending on their responsibilities and the
needs of the club. (The size of some committees might be stipulated in the club’s
bylaws.) Clubs should keep in mind that the ability of a committee to make deci-
sions seems to decrease as its size increases. The length of a committee member’s
term varies from club to club. Two-year terms seem to work well, with 50 percent
of committee members replaced annually.
Many club committees meet once a month. A few, like the insurance commit-
tee, might meet quarterly; some might meet just once a year (the bylaws committee,
for example); other committees, such as a legal/governmental affairs committee or
a nominating committee, might meet on an as-needed basis.
All committee actions require board approval, except in those areas where
authority to act independently has been delegated (for example, the aquatics com-
mittee might have the authority to change the opening and closing hours of the
club’s pool, but not to change the user fee that members in certain membership
categories must pay for using the pool). Just as a club’s board shouldn’t try to run
the club, neither should its committees. Rather, committees should help shape and
then support club goals and objectives. Committees basically serve in an advisory
role to the board of directors.
Club committees can be very positive forces for a club. They can help generate
enthusiasm among club members for club events and programs, they help the club
draw on the expertise of club members, and they provide an outlet for members
who want to learn more about or get more involved in their club. On the other
hand, without direction and focus, committees can damage a club. At their worst,
committees can violate club policies, put a club in financial difficulty by not work-
ing within their budgets, and create trouble among the club’s general membership.
To avoid possible problems with committees, the club’s president and manage-
ment team should hold an orientation meeting of all committees at the start of each
year. At this meeting, the club’s president and general manager can cover the role
of each committee, committee objectives for the year, specific tasks, and budget
constraints. The keys to effective committees are an effective chairperson, active
members, and supportive club staff.
In the following sections we will take a brief look at standing committees
commonly found in clubs: strategic or long-range planning, finance, bylaws, nom-
inating, membership, house, social, athletic, and golf course. Keep in mind that all
of these committees may or may not be found in a single club and that a club might
have many other committees in addition to these (such as wine and food, debu-
tante ball, and employee relations); each club decides on the committee structure
that best meets its needs.
Strategic or long-range planning. A club’s strategic planning committee (also
called a long-range planning committee) is responsible for making recommenda-
tions for long-range capital improvements to the club and recommending other
long-range plans for the club and its assets, including land use. It may review
long-range projects suggested by the club’s board of directors as well as suggest
such projects to the board. Some strategic planning committees are charged with
developing and maintaining a comprehensive three- to five-year plan that is con-
sistent with the club’s mission statement.
Finance. The primary responsibility of a club’s finance committee is to keep
the board of directors informed of the club’s financial condition and all matters
affecting the club’s fiscal affairs. The finance committee sets the parameters of
the club’s annual operating and capital budgets (with input from the club’s gen-
eral manager and controller) for consideration by the board, recommends fiscal
20 Chapter 1
policies to protect the club’s assets, and exercises control over the club’s financial
interests. Committee members might give advice and guidance to the club’s man-
agers and controller with respect to the club’s finances. The finance committee
typically reviews the club’s financial statements and the annual audit, and over-
sees other financial matters such as capital-project funding, dues levels, delin-
quent accounts, cash flow projections, and cash management. This committee
might also suggest capital improvements, make sure the club has adequate insur-
ance and bonding, and recommend ways to generate additional revenue.
Bylaws. The bylaws committee oversees the club’s bylaws and makes recom-
mendations to the board concerning whether certain bylaws should be amended,
supplemented, or repealed. The committee also must make sure the club’s bylaws
are legal.
Nominating. A club’s nominating committee is charged with presenting
to the club’s general membership a slate of candidates for election to the board
of directors. Unless otherwise directed by the club’s bylaws, this committee is
appointed by the club president and reports to the board. Committee deliberations
are confidential, and the committee meets on an as-needed basis.
Membership. A club’s membership committee reviews nominations for
membership and makes recommendations to the board of directors regarding
each new candidate. (Because this committee deals with such sensitive issues,
the names of the members who are serving on it are kept secret at some clubs.)
In some clubs, the membership committee also makes recommendations regard-
ing current members who request a change in status (from a social member to a
regular member, for example). As mentioned earlier, members of the member-
ship committee might be responsible for interviewing prospective new members,
posting their names on club bulletin boards or in the club’s newsletter, and invit-
ing comments from the general membership. Maintaining a waiting list of pro-
spective members and a roster of current members might also be a duty of the
membership committee.
In some clubs, the membership committee oversees the conduct of current
members and supports management in maintaining the decorum of the club.
Problems with current members that the membership committee might deal with
include member intoxication, abuse or harassment of employees, and past-due
bills. Other clubs set up a separate rules committee to deal with these issues or let
the board of directors handle them.
House. The house committee, sometimes called the clubhouse committee,
is responsible for overseeing the maintenance of the clubhouse and the grounds
that surround it. In many clubs, the house committee also oversees the operations
that occur within the clubhouse, such as the food and beverage operations and
clubhouse social events. (In some clubs, social events are the responsibility of a
social or entertainment committee.) The house committee also may consult with
management about menus, wine lists, selling prices, and the clubhouse’s hours of
operation, and may assist management in preparing capital improvement budgets
for the clubhouse.
The house committee does not manage clubhouse personnel, but at many
clubs it does monitor clubhouse service and quality levels. If service and quality
are not meeting member expectations, the committee brings this to the attention of
the general manager for correction. Conversely, this committee might look for ways
to congratulate staff members for a job well done. The house committee might also
monitor whether members are adhering to clubhouse rules.
Social. The social committee, referred to in some clubs as the entertainment
or special-events committee, is responsible for overseeing the entertainment activ-
ities of the club. (At clubs without social committees, this function is usually per-
formed by the house committee.) The social committee typically sets or approves
the club’s entertainment calendar for the year. It might also help club managers
plan special events, select entertainers, and stay within each event’s budget. In
some clubs, the social committee also assists with sporting events held at the club.
Committee members listen to suggestions and feedback from members and might
oversee advertising and promotional material for special events. Most clubs rely
on the members of the social committee to personally promote the club’s special
events to other club members. This committee also helps managers prepare the
entertainment portion of the club’s annual budget.
Athletic. A club typically has several separate athletic committees (golf,
tennis, swim or aquatics, and fitness); in rare cases, a club may choose to assign
the responsibilities and duties of all of these committees to one committee called
an athletic committee, recreation committee, or sports committee. Clubs may
also maintain separate golf and tennis committees but combine aquatics and fit-
ness together in one committee, or may have a separate committee for women’s
sports—it all depends on the club, its sports facilities, and the extent to which
members participate in each sport. For example, some large country clubs with
several golf courses have many separate golf-related committees, such as a golf
committee, a women’s golf committee, a grounds committee, a handicap commit-
tee, and a rules committee.
Athletic committees recommend operational policies to the club’s board (such
as tee times for golf, or hours of operation for the club’s pool or tennis courts).
Athletic committees work closely with their sport’s pro to enforce the rules of the
sport, plan tournaments or meets, maintain member golf handicaps or bowling
averages, and help prepare their portion of the club’s annual budget. Athletic
committees also recommend equipment acquisitions to the board and may review
non-routine maintenance requested by club pros (the tennis pro might request
that the club’s tennis courts be resurfaced, for example). It’s up to the athletic com-
mittees to help publicize tournaments and other sports events held at the club.
Golf course. The golf course committee is concerned with the maintenance
of the golf course. In some clubs, this committee is still referred to as the grounds
committee or greens committee. It is an important committee at most country
clubs, because members are usually very concerned about the condition of the
club’s golf course(s). The golf course committee oversees policies governing such
maintenance issues as irrigation, weed control, fertilization, day-to-day mainte-
nance (mowing, care of bunkers and greens, maintenance of golf car paths, and so
on), and maintenance of drinking fountains and course signs/markers. Commit-
tee members might be called on to communicate with local public officials about
the club’s golf course irrigation policies, especially if the local area experiences a
water shortage. The golf course committee reviews and recommends policies for
regulating play so as to permit proper course maintenance with a minimum of
22 Chapter 1
inconvenience to members. This committee might also investigate vandalism of

the golf course and recommend measures to prevent it.
As with the members of other committees, it is important that golf course
committee members remember that their role is advisory; they should avoid the
temptation to actually manage. Committee members can make suggestions but
should not give specific direction to the club’s golf course superintendent, for
example.
General Manager. Private equity clubs, because they are owned by their members,
can operate in any way the members deem most suitable. For example, years ago
it was typical for clubs to not have a general manager; the managers of the club’s
various departments and the club professionals reported to committee chairper-
sons and the club’s board instead. A few clubs still operate that way. However,
today the preferred organizational structure for clubs, the one outlined in this
chapter and endorsed by the Club Managers Association of America, is for club
professionals, department heads, and other staff members to report to a general
manager/chief operating officer. (See Exhibit 5 for the Club Managers Association
of America’s official position on the club GM/COO role.)
A club’s general manager is the chief operating officer of the club. Titles vary
from club to club—this position is sometimes referred to as executive director,
director of club operations, or chief operating executive—but in this chapter we
will refer to this individual simply as the general manager. (However, it should
be noted that the trend in large clubs is to use the “chief operating officer” title.)
As mentioned earlier, the general manager is hired by the club’s board of directors
and is responsible to the entire board but usually reports to the club president. It is
the general manager’s duty to carry out the policies set by the board. The general
manager attends board meetings to report on club operations and answer ques-
tions, but does not vote on board matters. He or she has the somewhat daunting
task of providing the quality facilities and services that members demand, while
at the same time generating sufficient cash reserves to ensure that the club can
maintain its physical plant and even expand that plant when and if the members
so desire. (Major expansion or renovation may also be financed through member
assessments.)
In addition to directly supervising all club professionals and department
heads (and being indirectly responsible for all other club staff members), the gen-
eral manager also prepares the annual budget (which is subject to the board’s
approval) and, after the budget is approved, is responsible for managing and con-
trolling club operations to achieve budgeted revenue and expense targets.
Just as the board should not try to directly manage the club or get involved in
day-to-day management decisions, the general manager should not try to set club
policies. As mentioned earlier, the board is the policy-making body of the club;
the general manager carries out the board’s policies and decisions while efficiently
managing the club and its staff.
The general manager’s salary and fringe benefits are negotiable, but usually
correlate to the size of the club and the manager’s experience. (The Club Managers
Association of America periodically conducts a comprehensive compensation and
benefits survey. In 2005, the average salary for CMAA members was $117,000, with
Exhibit 5 The Club Managers Association of America’s Position on the General
Manager/Chief Operating Officer
The General Manager/Chief Operating Officer (GM/COO) is hired by the Board of

Directors, reports to the President or Executive Committee, and is responsible for carrying
out the Board’s policies. The GM/COO will be held accountable for all areas of the club
and will ensure the synergism of all club activities. He/she becomes the Board’s bridge to
the staff and committees, and enables the Board to avoid the intricacies and short-term
focus that are the staff’s responsibility. This will allow the Board to work more exclusively
on the holistic and long-term focus of club governance. The GM/COO will prepare such
special reports as may be requested by the Board and will report back on the effectiveness
of the club’s policies, operations, and new programs.
The characteristics of a successful GM/COO include honesty, straightforwardness,
integrity, accountability, leadership, and dedication. He/she must demonstrate interper-
sonal relations skills, be a good communicator, be administratively competent, and be able
to communicate the club’s vision.
Guidelines
The GM/COO is a partner with the Board in achieving the club’s mission and dis-
cusses issues confronting the club with the Board. He or she also assists the Board in
developing a format for assessing the progress of the club and reviews any issues of
concern with the Board.
The GM/COO keeps the Board apprised of the organizational climate, identifies prob-
lems (either actual or anticipated), communicates with the Directors, and offers consulta-
tive assistance as well as shares responsibility with the Board for the club’s organizational
development and organizational change programs.
The GM/COO has ALL club department heads reporting to him or her. The GM/COO
will assume or delegate the duties and responsibilities of the department heads if they are
absent or disabled. The GM/COO will complete all responsibilities and duties as prescribed
in the bylaws of the club and perform other duties as directed by the Board of Directors.
The GM/COO monitors long- and short-term objectives, monitors financial reports,
and prepares a financial plan for the club.
The GM/COO sets the standard for effective management, maintaining a high level of
ethics, prudence, creativity, and productivity, and demonstrating a concern for the supervi-
sion and development of the staff.
The GM/COO helps the Board arrive at a consensus about important matters by
providing pertinent information and interacting with the Board to investigate more efficient
operating procedures and new club activities.
The GM/COO apprises the Board of trends, changing circumstances, and unexpected
occurrences that could call for innovation or adaptation of the strategic plan.
The GM/COO helps set and maintain high standards for all facilities, services, and
communications.
The GM/COO oversees all programs, services, and activities to ensure that objectives
are met.
The GM/COO coordinates and edits all membership and public relations communica-
tions.
The GM/COO maintains a comprehensive knowledge of operational procedures and
principles used throughout the club and takes responsibility for developing, maintaining,
and documenting consistent procedures.
The GM/COO has knowledge of key situations or problems facing the club. The GM/
COO monitors all activities in progress in order to achieve the Board’s objectives and
provides feedback to the Board on the progress being made.
24 Chapter 1
general managers earning $113,630 and chief operating officers earning $146,295.)
Fringe benefits for general managers might include all or some of the following:
•• Vacation—usually two to four weeks per year
•• Sick leave
•• Insurance—health, disability, life
•• Pension
•• Use of the club’s facilities
•• Living quarters
•• Auto
•• Paid membership in the Club Managers Association of America
•• Continuing education for professional development
See the chapter appendix for a sample job description for a club general manager.
Club Professionals. Professionals commonly found at country or city clubs are
golf professionals and tennis professionals. Although a club’s golf course superin-
tendent is not considered a club professional, we will discuss the superintendent
position in this section because superintendents work very closely with golf pro-
fessionals and are considered to be at a similar organizational level. Because of its
sports-related nature, we will also discuss the aquatic director’s position in this
section, even though the person who fills this position is not usually considered a
club professional.
Golf professional. A club’s golf professional, also referred to as a golf pro or
director of golf, is in charge of all activities related to the club’s golf program, such
as working with the general manager to prepare the golf budget, teaching golf to
members and supervising other teaching pros on staff, conducting club golf tour-
naments, overseeing the club’s handicap system, overseeing the tee-time reserva-
tion system, arranging a tee-time schedule, supervising the use and maintenance
of the club’s golf cars, and running the golf pro shop. The golf pro may or may not
own the pro shop merchandise, depending on the club.
The golf professional does not supervise the maintenance of the golf course;
that is the job of the golf course superintendent. However, the golf professional
and superintendent work closely together to keep the golf course in optimum
playing condition for the club’s members.
Tennis professional. A club’s tennis professional manages the club’s tennis
program. He or she gives individual lessons to members, establishes clinics for
members of all ages, oversees the maintenance of the tennis courts, actively works
with the club’s tennis committee to keep tennis-playing members happy with the
club’s tennis program, and works with the general manager to prepare a budget
for the program. At some clubs this is a part-time, seasonal position.
Golf course superintendent. A club’s golf course superintendent is in charge
of maintaining the club’s golf course(s) in ideal playing condition. Without the
golf course superintendent’s expertise, a golf course’s fairways and greens would
deteriorate in a matter of days. A golf course superintendent typically has a degree
in turf grass management or agronomy and works to mold the natural elements of
grass, trees, hills, streams, and ponds (or, in a dry climate, rock formations, cacti,
and so on) into a beautiful golf course. The superintendent must constantly moni-
tor the environment to protect the course. It’s a constant battle with insects, adverse
weather conditions, and other environmental factors that threaten to undo all of
the hard work of the superintendent and his or her staff. The golf course superin-
tendent also works with the club’s general manager and golf course committee to
develop the golf course budget.
Aquatics director. A club’s aquatics director, also known as the swim pro-
fessional in some clubs, should be selected with great care. An aquatic director’s
responsibility is enormous, because he or she is constantly dealing with members
in situations where bad judgment or lack of training might end in tragedy. The
aquatics director should be a mature person, professionally trained in physical
education and possessing superior administrative abilities and aquatics skills. An
aquatics director should be friendly but at the same time command respect so that
he or she can effectively enforce the club’s safety rules.
At some clubs this is a part-time, seasonal position (traditionally late May
through early September). Rather than hire a part-time aquatics director, some
clubs with a fitness center hire someone full-time who can run the club’s aquatics
program as well as the fitness center. Clubs that do not have fitness centers but do
have indoor swimming pools also have an aquatics director on staff year-round.
Department Managers. The number and type of department managers a club has
depends on the type and size of the club. For example, a very small city club might
have only an executive chef and a catering or banquet manager in addition to
the general manager. At the other extreme, a very large country club might have
a food and beverage director, an executive chef, a banquet manager, a beverage
manager, an assistant general manager, a director of security, an executive house-
keeper, a controller, a membership director, a director of human resources, and a
director of purchasing. A yacht club has a department head—harbor master—who
appears in no other type of club.
In this section we will discuss department managers found at most country
or city clubs: assistant general manager, controller, executive chef, and banquet
manager.
Assistant general manager. The assistant general manager (sometimes called
the clubhouse manager) is usually the general manager’s second in command.
He or she is in charge of managing the clubhouse and its personnel, and enforc-
ing clubhouse policies and operating procedures. See the chapter appendix for a
sample job description for an assistant general manager.
Controller. A club’s controller develops and oversees policies to control and
coordinate accounting, auditing, budgeting, and related duties; prepares or over-
sees the preparation of the club’s financial statements; and forecasts and analyzes
financial information for the club’s managers, board of directors, and committees.
Executive chef. The executive chef is responsible for all food production in a
club’s food and beverage outlets. Executive chefs develop menus, food purchase
specifications, and recipes; supervise food-production staff members; and develop
and monitor food and labor budgets for the club’s food and beverage department.
26 Chapter 1
A club’s executive chef must maintain the highest food quality and sanitation stan-
dards. At some clubs, a food and beverage director oversees the executive chef and
other food and beverage department managers, in which case the executive chef’s
role is more restricted.
Banquet manager. A club’s banquet manager promotes the club’s dining facili-
ties for private banquets, business and social meetings, and other activities. He or
she oversees all administrative and operational aspects of preparing and serving
food at banquets, and works with the executive chef to put together banquet menus.
Employees. A club’s employees report to department managers (or intermedi-
ate supervisors) and create products and services for club members. As with a
club’s managers and professionals, the number and types of employees a club has
depends on the type and size of the club. For example, at a small city club, the
kitchen might only have a few cooks in addition to the executive chef. A large
country club might employ an executive chef, a sous chef, a sauce cook, fry cooks,
line prep persons, breakfast cooks, a garde manger, a butcher, broiler cooks, sauté
cooks, and salad prep persons.
Club employees often enjoy wages and benefits competitive with or even
higher than the wages and benefits of other employees in the hospitality industry.
Many club employees stay with their clubs for a long time; it’s not unusual to find
club employees who have worked at their clubs for decades. These employees
appreciate the unique nature of the club environment and the job security that
working in a club affords them, as well as the family atmosphere and upscale
facilities that are typical of clubs.
Non-Equity Clubs
The organizational structure of a non-equity club differs from an equity club’s
structure because non-equity clubs are not owned by their members, but rather by
an individual or corporation. There is no board of directors made up of club mem-
bers; the club is directed by the club’s general manager, who follows the owner’s
policies, not policies established by the club’s members.
Although there is no board of directors with policy-making authority, there
might be an advisory board (sometimes called a board of governors) and other
member committees for the more important club areas (such as the clubhouse,
golf course, and tennis facilities). However, these bodies usually have no power or
authority; they are strictly advisory, making their recommendations to the club’s
general manager. Depending on the scope of a committee recommendation, the
general manager might act on it or pass it along to the corporate office for review.
The general manager is usually given complete authority to operate the club and
accept new members, subject to the owner’s oversight.
Endnotes
1. Club Managers Association of America, Club Management Operations, Fourth Edition
(Dubuque, Iowa: Kendall/Hunt Publishing Company, 1989), p. ix. The introductory
paragraph of this chapter was adapted from the fourth edition’s preface by Donald R.
Beever, CCM.
2. Administrator Evaluation Manual: A Complete Guide for Board Members (Frederick, Mary-
land: Aspen Publishers, Inc., 1991), p. 4.
Key Terms
ad hoc committee—A club committee formed for a special purpose. An ad hoc
committee is usually focused on a single problem or issue and remains in existence
until that problem or issue is resolved.
athletic club—A private club that offers its members such fitness and sports facili-
ties as gyms, swimming pools, racquetball and handball courts, weight-lifting
areas, and exercise rooms. Many athletic clubs also have food and beverage facili-
ties and operate similarly to city clubs. Some athletic clubs may also offer golf.
athletic committee—A club committee that recommends operational policies for
club sports programs to the board. Most clubs have several separate athletic com-
mittees (such as golf, tennis, swim or aquatics, and fitness); a few clubs choose to
assign the responsibilities and duties of all of these committees to one committee
called an athletic committee, recreation committee, or sports committee.
board of directors—An equity club’s governing body, made up of club members
elected by club members.
bylaws committee—An equity club committee that oversees the club’s bylaws
and makes recommendations to the board of directors concerning whether certain
bylaws should be amended, supplemented, or repealed. The committee also must
make sure the club’s bylaws are legal.
city club—A private club usually housed in a building or part of a building located
within a city or in a suburban office complex; a city club serves the business, enter-
tainment, and social needs of its members in an urban setting.
country club—A private club that has a clubhouse and enough acreage for one
or more golf courses; most country clubs have other recreational facilities as well.
equity club—A private club owned by its members and governed by a board of
directors elected by the members.
executive committee—An equity club committee that is usually composed of the
club’s officers (president, vice president, secretary, and treasurer); this committee
has duties and responsibilities similar to those of the board of directors and is
essentially a “mini-board” that acts in lieu of the club’s full board.
finance committee—An equity club committee whose primary responsibility is
to keep the board of directors informed of the club’s financial condition and all
matters affecting the club’s fiscal affairs; it also recommends fiscal policies for pro-
tection of the club’s assets, exercises control over the club’s financial interests, and
gives financial advice and guidance to the club’s general manager.
general manager—A club’s chief operating officer, in charge of all club staff mem-
bers and operations.
golf course committee—A club committee concerned with the maintenance of the
golf course. Also referred to as the grounds committee or greens committee.
28 Chapter 1
house committee—A club committee responsible for overseeing the maintenance

of the clubhouse and the grounds that surround it; in many clubs, the commit-
tee also oversees the clubhouse operations and events that occur within the club-
house. Also called the clubhouse committee.
junior membership—A private-club membership category for individuals—
usually the children of regular members—who have not yet attained the age
required for regular membership.
membership committee—An equity club committee that reviews nominations for
membership, interviews membership candidates, and makes recommendations to
the board of directors regarding each new candidate; the committee also makes
recommendations regarding current members who request a change in status, and
might be responsible for maintaining a waiting list of prospective members and a
roster of current members.
military club—A private club for military officers and enlisted personnel.
nominating committee—An equity club committee charged with presenting
to the general membership a slate of candidates for election to the board of
directors.
non-equity club—A private club that is owned by an individual or a corpora-
tion, not its members; with this type of club, the members’ control over the club is
limited.
nonresident membership—A private-club membership category for members
who live a specified distance from the club.
private club—A place where people with a common bond of some type—similar
interests, experiences, backgrounds, professions, and so on—can congregate for
social and recreational purposes.
reciprocity—Refers to agreements clubs make with each other so that members
who are traveling can visit another club and enjoy that club’s facilities and services
while the members are away from their home clubs. A club can also have reciproc-
ity agreements with nearby clubs, so that members can use another club when
theirs must be closed for a substantial amount of time (for major renovations or
some other reason).
regular membership—A private-club membership category that gives members
the full use of all of the club’s facilities, along with voting rights and the right to
hold office. Also referred to as a full, resident, or stock membership.
senior membership—A private-club membership category for club members who
have been members of the club for a specified number of years and have reached
a certain age. May be called a life membership in some clubs.
social committee—A club committee responsible for overseeing the entertainment
activities of the club. Also called the entertainment committee.
social membership—A private-club membership category that gives members
the use of the clubhouse and its facilities but restricts their use of the club’s recre-
ational facilities.
standing committee—A permanent club committee that helps the club conduct
ongoing activities.
strategic planning committee—A club committee responsible for making recom-
mendations for long-range capital improvements to the club and recommending
other long-range plans for the club. Also called a long-range planning committee.
tennis club—A private club organized around the game of tennis, providing ten-
nis courts and other tennis facilities and services to its members.
university club—A private club for university graduates, faculty, and certain lev-
els of university staff.
yacht club—A private club for people who own boats or enjoy boating; such clubs
offer marina services and usually have a clubhouse that provides food and bever-
age and other services to members.
Review Questions
1. What is a private club?
2. Who owns an equity club? Who might own a non-equity club?
3. What types of facilities might be found at a country club? a city club?
4. What are some common private-club membership categories?
5. How is an equity club organized?
6. A board of directors performs what types of duties for an equity club?
7. What are some standing committees commonly found in equity clubs?
8. A club’s general manager performs what types of duties?
9. What are some club professional and department manager positions com-
monly found in clubs?
Additional Reading
Brewer, James H. “Developing a Club’s History Book,” in Master Club Manager
Monographs, Volume I, Numbers 1–6. Alexandria, Virginia: Club Managers
Association of America, 1995.
Byrne, Michael J., and Basso, Joseph F. An Anthology on Club Management, Alex-
andria, Virginia; Club Managers Association of America, 2001.
Club Managers Association of America. Club Bylaws. Alexandria, Virginia: Club
Managers Association of America, 1996.
Club Managers Association of America. Club Standards of Operating and Perfor-
mance, Alexandria, Virginia: Club Managers Association of America, 2003.
———. Job Descriptions in the Private Club Industry, Sixth Edition. Alexandria,
Virginia: Club Managers Association of America.
30 Chapter 1
Hall, Laurice T. “New Member Orientation for Private Clubs.” Master Club Man-
ager Monographs, Volume II, Number 1. Alexandria, Virginia: Club Managers
Henderson, Edward. “Lions Among Us,” in Master Club Manager Monographs,
Volume I, Numbers 1–6. Alexandria, Virginia: Club Managers Association of
America, 1995.
McCoy, Jerry. “The Value of Contract Documents in Club Construction and Reno-
vation Programs,” in Master Club Manager Monographs, Volume I, Numbers
1–6. Alexandria, Virginia: Club Managers Association of America, 1995.
McDeson, A. Graham. “Implementing Total Quality Management as an Integral
Part of Strategic Management,” in Master Club Manager Monographs, Volume
I, Numbers 1–6. Alexandria, Virginia: Club Managers Association of America,
1995.
Redman, Bridgette M. Topical Reference Series: White Papers on Club Management,
Issues 1–6. Lansing, Mich.: American Hotel & Lodging Educational Institute,
1997.
Schulz, William A. “Club Management Opportunities: Assistant Manager Devel-
opment Program.” Master Club Manager Monographs, Volume III, Number 1.
Alexandria, Virginia: Club Managers Association of America, 1997.
Spitzig, Norman J., Jr. “Is It Time to Move?” in Master Club Manager Monographs,
Volume I, Numbers 1–6. Alexandria, Virginia: Club Managers Association of
America, 1995.
Winker, Mac. “Innovativeness/Entrepreneurship in Clubs: A Systematic
Approach,” in Master Club Manager Monographs, Volume I, Numbers 1–6.
Alexandria, Virginia: Club Managers Association of America, 1995.
Internet Sites
For more information, visit the following Internet sites. Remember that Internet
addresses can change without notice. If the site is no longer there, you can use a
search engine to look for additional sites.
Association of College and International Health, Racquet, and
University Clubs Sportsclub Association
www.acuclubs.org cms.ihrsa.org
Association of Private Club Directors International Military Community
www.apcd.com Executives Association
www.imcea.com
www.cmaa.org The Virtual Clubhouse: Club
Management Magazine
International Club Network www.club-mgmt.com
www.icnclub.com
Case Studies
Case Study 1
Charlie Davis is the manager of the Blue Creek Club. As he walks through the grill
area one afternoon, someone from a nearby table calls his name. It’s John Martinez,
vice president of the club board. He has a guest with him.
Charlie approaches the table. “Hello there, Mr. Martinez,” he says. “How are
you?”
“I’m fine, thanks,” Mr. Martinez responds. He pauses, then motions toward
his guest. “Charlie, let me introduce you to my friend, Sam Jacobs. He’s a board
member of the Cherrywood Club, the most prestigious club in this area. And Sam,
this is Charlie, the manager here at Blue Creek.”
Sam and Charlie exchange hellos and shake hands. John continues, “You
know, Sam, Charlie is quite a successful manager. He’s been here several years,
and the club runs like clockwork under his direction. He keeps costs down and
keeps the place looking good.”
Sam turns to Charlie. “Glad to hear it, Charlie,” he says. “Boy, I wish we could
have a manager like you at the Cherrywood Club. Sometimes the management
there can’t seem to get its act together. For example, last Saturday, two wedding
receptions were scheduled at the club. From what I heard, it was quite chaotic. The
second wedding was delayed and the dinner was late.”
“I was at the second wedding,” John says. “The guests had to wait in a hold-
ing room while the reception room was being set up. The holding room was too
small for the number of people there, and we had to wait an hour for dinner to
begin.”
“And that’s not the only thing that has happened recently,” Sam says. “One
member who owns a liquor store asked if he could bring his own champagne
for his daughter’s wedding reception, and the management wouldn’t allow it.
This man is a good friend of mine. He was pretty upset when he was told that he
couldn’t bring in his own champagne. He had to pay regular club prices to have
champagne served at the wedding. In addition to those incidents,” Sam continues,
“the club operated with a $20,000 loss last month. And to top that off, ol’ Ben Pilote
was fired. He’s been a favorite employee at Cherrywood for years. Lots of mem-
bers are angry about that.”
Charlie is silent. He doesn’t mention that he and Henry Reed, the manager
of the Cherrywood Club, have worked together in the past. On a few occasions,
Charlie and Henry have shared staff and combined purchases. In addition, Charlie
and Henry have been good friends for several years. They have dinner together
with their wives every other month. Although Charlie would rather not say any-
thing to Sam, he feels he must respond—especially since he is in the presence of
John Martinez, who will be his board president next year—and so he makes a few
remarks.
A week later, Charlie receives a phone call from Sam Jacobs.
“Say, Charlie,” he says, “here at the Cherrywood Club, the manager position
may be opening up soon. I was wondering if you’d be interested in coming over
and talking to us about the position. A couple of board members and I would like
32 Chapter 1
to meet with you to discuss this further. I’m sure we could offer you twice the sal-
ary you’re making now. But, don’t mention anything about it to John Martinez.
Again, we can discuss details later.”
Charlie is surprised by the offer. The Cherrywood management job is an
attractive one. The club is the most prestigious in the area, and the pay raise cer-
tainly would be nice. Charlie’s thoughts are interrupted by another phone call just
a few minutes later. This time, the caller is Henry Reed, Charlie’s good friend and
the manager of the Cherrywood Club.
“Hi, Charlie. It’s Henry. I’ve got some great news! Susan and I are expecting
a baby in December! We’re very excited. And we’ve finally settled into our new
house. Everything at the club’s going great, too. Our revenue is up from two wed-
dings last month, and I finally got rid of Pilote—remember me telling you about
him? He’s the server that couldn’t get an order right to save his life. Things are
really looking up. Whaddaya say—how about you and Patty joining Susan and me
for dinner this Friday? We’ve got lots to celebrate!”
(To provide you with an additional factor to consider in this case, we are
including the Club Managers Association of America’s code of ethics, a code that
club general managers are encouraged to live by.)
CMAA Code of Ethics

We believe the management of clubs is an honorable calling. It shall be incumbent
upon club managers to be knowledgeable in the application of sound principles
in the management of clubs, with ample opportunity to keep abreast of current
practices and procedures. We are convinced that the Club Managers Association
of America best represents these interests, and as members thereof, subscribe to
the following CODE OF ETHICS:
We will consistently promote the recognition and esteem of club manage-
ment as a profession and conduct our personal and business affairs in a manner to
reflect capability and integrity. We will always honor our contractual employment
obligations.
We shall promote community and civic affairs by maintaining good relations
with the public sector to the extent possible within the limits of our club’s demands.
We will strive to advance our knowledge and abilities as club managers, and
willingly share with other Association members the lessons of our experience and
knowledge gained by supporting and participating in our local chapter and the
National Association’s educational meetings and seminars. We will not permit
ourselves to be subsidized or compromised by any interest doing business with
our clubs.
We will refrain from initiating, directly or through an agent, any communica-
tions with a director, member, or employee of another club regarding its affairs
without the prior knowledge of the manager thereof, if it has a manager.
We will advise the National Headquarters, whenever possible, regarding
managerial openings at clubs that come to our attention. We will do all within our
power to assist our fellow club managers in pursuit of their professional goals.
We shall not be deterred from compliance with the law, as it applies to our
clubs. We shall provide our club officers and trustees with specifics of Federal,
State, and Local laws, statutes, and regulations, to avoid punitive action and costly
litigation.
We deem it our duty to report to local or national officers any willful viola-
tions of the CMAA CODE OF ETHICS.
Discussion Questions
1. Given the fact that John Martinez will soon be the president of the club board,
Charlie felt he had to respond when Sam described the conditions of the
Cherrywood Club. What should Charlie have said in response to the situa-
tions that Sam described?
2. How should Charlie respond to Sam Jacobs’ telephone call about the manage-
ment position that might be open soon?
3. What should Charlie say to Henry? Does Charlie have any obligation (accord-
ing to CMAA’s code of ethics) to do anything?
The following industry experts helped develop this case: Cathy Gustafson,
CCM, University of South Carolina, Columbia, South Carolina; Kurt D. Kuebler,
CCM, Vice President, General Manager, The Desert Highlands Association, Scott-
sdale, Arizona; and William A. Schulz, MCM, General Manager, Houston Country
Club, Houston, Texas.
Case Study 2
Tom Westerman recently became the general manager at the Overlook Country
Club, a small club that’s been going through some growing pains in the past few
years. Tom formerly worked at a number of successful clubs and has a reputation
for turning clubs around.
Since coming to the Overlook a few months ago, Tom has noticed very little
consistency or control in the levels and types of responsibilities held by committee
members and chairpersons. No written guidelines outlining specific responsibili-
ties for committee members exist for any of the club’s committees. Tom has learned
that various committee chairpersons, under the previous general manager, fre-
quently took actions that impeded the work of the club’s managers. In fact, some
committee chairpersons were still overstepping their authority by trying at times
to manage parts of the club. All in all, things just weren’t working the way Tom
believed they should. Tom has made an appointment to talk with Mr. Carpenter,
the club’s president, about some of the problems he’s seen.
“Mr. Carpenter, I realize the previous general manager had a strong relation-
ship with the committee chairpersons and allowed them a lot of latitude in the
decisions they made. Did anyone ever outline actual roles and responsibilities, as
well as limitations, for each chairperson?”
Mr. Carpenter chuckled. “Are you kidding? The last general manager was
around for so long, everyone just understood what their responsibilities were after
awhile. Why? Is there a problem?”
34 Chapter 1
“Well, Mr. Carpenter,” Tom said, “actually there does seem to be a problem. A
lot of the committee chairs are making decisions without getting input or approval
from me. In some cases they’re authorizing expenditures without notifying me.
It’s starting to affect the club’s operations and our bottom line. And there are times
when they are trying to actually run the club.”
“Give me specifics,” Mr. Carpenter said. “And please don’t beat around the
bush.”
“Okay, here’s an example of what I’m talking about. The chairperson of the
golf committee, Fred Jarvis, has started to micro-manage the golf staff and Brian,
our golf pro. Mr. Jarvis seems to think he’s Brian’s boss, and he doesn’t like the way
Brian is managing the golf staff. Mr. Jarvis wants to change tee times and has actu-
ally started giving directions to the golf staff that contradict Brian’s. Mr. Jarvis has
also decided that slow play shouldn’t be tolerated and has demanded that Brian
penalize golfers who take more than four hours to play a round by restricting their
access to the course. Brian is really upset with the entire situation.”
“Well, slow play is an issue, Tom,” Mr. Carpenter said.
Tom nodded. “Of course it is, but we shouldn’t be so heavy-handed in how
we deal with it. All we’ll do is upset our members.”
“Good point. We want to maximize course usage, but our members won’t be
very happy if they feel they’re being herded through the course like cattle.” Mr.
Carpenter paused. “Are Fred’s complaints about Brian mismanaging the golf staff
valid?”
“Not really. Most of Mr. Jarvis’s concerns are his own opinions and don’t take
into account the big picture.” Now it was Tom’s turn to pause. “I know it’s Mr.
Jarvis’s responsibility to be concerned with Brian’s performance,” Tom continued.
“However, he should bring those concerns to me and let me decide how best to
handle them, not go directly to Brian.”
Mr. Carpenter frowned. “Are we in any danger of losing Brian?”
“I think it’s a possibility if the situation continues,” Tom said, “and we were
lucky to get him in the first place.”
“Yes, we can’t afford to lose our golf pro, especially at this time of year,” Mr.
Carpenter agreed. “But Fred Jarvis is a longtime and well-respected board mem-
ber. We can’t just ignore his concerns.” Mr. Carpenter was interested in hearing
how the new general manager would handle this problem. He asked Tom, “So
what do you plan to do about the situation with Fred?”
“I’m going to meet with Mr. Jarvis to discuss his concerns about Brian’s man-
agement of the golf staff and tell him I’ll communicate his concerns to Brian at the
right time,” outlined Tom. “If I approach Mr. Jarvis tactfully, I think he’ll let me
handle the situation. I’m also going to speak with Brian and tell him I understand
his frustrations and I’m working on resolving the problem. That should help him
be more patient with Mr. Jarvis.”
Mr. Carpenter smiled. “Sounds good. You don’t want to make an enemy of
Fred, but you’ve got a point about committee chairpersons overstepping their
bounds.”
“I’m glad you agree, Mr. Carpenter, and you could really help in this situa-
tion. Would you be willing to speak with Mr. Jarvis and set the stage for me?”
“I’d be glad to, Tom,” Mr. Carpenter said. He leaned back in his chair. “What
I’ll do is hand out an organization chart and make a blanket statement to the entire
board at our next board meeting. If I reinforce the idea that part of your job is to
mediate between board or committee members and the club’s staff, they should
get the picture.” Mr. Carpenter laughed. “I’ll appeal to their egos and remind them
that they are all too busy to waste their valuable time on trying to manage the club.
Then, if the situation with Fred hasn’t changed, I’ll speak to Fred directly and pre-
pare him for a meeting with you. If we handle it that way, maybe we won’t have to
step on any toes or hurt anyone’s feelings.”
1. What could Tom do to prevent committee chairpersons from overstepping
their authority?
2. What obstacles might Tom encounter when he implements his plan to create
written guidelines for committee members? What actions should Tom take to
overcome those obstacles?
3. What process should Tom follow to establish written guidelines for commit-
tee members?
36 Chapter 1
Chapter Appendix:
Sample Job Descriptions
What follows are sample job descriptions for a club general manager/chief operat-
ing officer and an assistant general manager. These job descriptions are courtesy
of Joe Perdue and Jack Ninemeier, Job Descriptions for the Private Club Industry,
Seventh Edition.
General Manager/Chief Operating Officer

Position
General Manager/Chief Operating Officer (GM/COO)
Related Titles
Chief Operating Officer; Club Manager; Clubhouse Manager; Managing Director; Man-
ager; General Manager/Vice President
Reports to: Club President and Board of Directors
Supervises: Assistant General Manager (Clubhouse Manager); Food and Bever-
age Director; Controller; Director of Facilities; Membership Director; Director of Human
Resources; Director of Purchasing; Director of Golf; Golf Course Director; Tennis Profes-
sional; Athletic Director; Administrative Assistant
Education and/or Experience
•• Bachelor’s degree from a four-year college or university; Hospitality Management
major preferred.
•• Maintains membership with the Club Managers Association of America (CMAA) and
other professional associations.
•• Attends conferences, workshops, and meetings (e.g., CMAA’s World Conference
and Club Business Expo, and CMAA chapter meetings) to keep abreast of current
information and developments in the field to enhance his or her value and quality of
services to the members.
•• Experience as a Clubhouse Manager or Assistant General Manager.
•• Substantial private club or hospitality industry experience, with management and
supervisory experience and progressive professional advancement.
•• Management of complex capital projects required.
•• Experience working with volunteer committees preferred.
Job Knowledge, Core Competencies and Expectations
•• Characteristics of a successful GM/COO include honesty, straightforwardness, integ-
rity, accountability, leadership, and dedication.
•• Able to inspire and motivate others, and earn the respect of the members and
employees as well as the community at large.
•• Conducts himself or herself in a responsible and professional manner at all times
while at or away from the club, and encourages other staff members to do the same
to reflect the proper image of the club throughout the community.
•• Able to be diplomatic and tactful—yet firm—in dealing with member constituents.
•• Must demonstrate interpersonal relations skills; be an excellent communicator and a
competent administrator; and be able to effectively communicate the club’s vision.
•• Ability to set goals and objectives as well as delegate to and coach the department
managers and their staffs.
•• Ability to manage cross-functional teams and multi-disciplinary projects.
•• Ability to make complex decisions in a dynamic environment in support of the club’s
vision, mission, and core values.
•• Displays sound judgment.
•• Ability to think strategically while meeting operational and near-term objectives.
•• Financial aptitude commensurate with executive duties.
•• Helps to set and maintain high standards for all facilities, services, and communications.
•• Knowledge of and ability to perform required role during emergency situations.
Job Summary (Essential Functions)
Serves as Chief Operating Officer of the club. Manages all aspects of the club, including
its activities and the relationships between the club and its Board of Directors, members,
guests, employees, community, government, and industry. Coordinates and administers
the club’s policies as defined by its Board of Directors. Develops operating policies and
procedures and directs the work of all department managers. Implements and monitors
the budget, monitors the quality of the club’s products and services, and ensures maxi-
mum member and guest satisfaction. Secures and protects the club’s assets, including
facilities and equipment.
Job Tasks/Duties
•• Implements general policies established by the Board of Directors; directs their
administration and execution.
•• As a partner with the Governing Board in advancing the club’s mission, the GM/COO
discusses with the Board all issues facing the club and identifies actual or anticipated
problems.
•• Apprises the Governing Board of trends, changing circumstances, and unexpected
occurrences that could result in making changes to the strategic plan.
•• Reports member infractions to the Board for necessary action.
•• Monitors long- and short-term objectives and financial reports, and, in consultation
with the Controller, prepares a financial plan for the club.
•• Manages club cash flow and establishes controls to safeguard funds.
•• Sets the standard for effective management and demonstrates a concern for the
supervision and development of the staff.
•• Plans, develops, and approves specific operational policies, programs, procedures,
methods, rules, and regulations in concert with general policies.
•• In conjunction with the Human Resources Director and department supervisors,
establishes employee rules and regulations, work schedules, internal controls, and a
performance appraisal system.
•• Coordinates the development of the club’s long-range and annual (business) plans in
efforts to move toward the club’s mission.
•• Develops, maintains, and administers a sound organizational plan; initiates improve-
ments as necessary.
38 Chapter 1
•• Establishes a basic personnel policy; initiates and monitors policies relating to person-
nel actions and training and professional development programs.
•• Coordinates development of operating, cash, and capital budgets according to the
applicable budget calendars; monitors monthly budget and other financial statements;
takes effective corrective action as required; approves vouchers before payment; pre-
pares and makes financial reports to the Board of Directors.
•• Coordinates and serves as ex-officio member of appropriate club committees.
•• Welcomes new club members; “meets and greets” all club members as practical
during their visits to the club. Develops ongoing dialogue and rapport with members
through recognition, communication, and follow-through.
•• Provides advice and recommendations to the club’s president and committees about
construction, alterations, maintenance, materials, supplies, equipment, and services
not provided in approved plans or budgets.
•• Consistently assures that the club is operated in accordance with all applicable local,
state, and federal laws.
•• Oversees the care and maintenance of all the club’s physical assets and facilities.
•• Coordinates the marketing and member-relations programs to promote the club’s
services and facilities to present and potential members.
•• Ensures the highest standards for food, beverage, sports and recreation, entertain-
ment, and other club services.
•• Establishes and monitors compliance with purchasing policies and procedures;
reviews and approves purchasing procedures and requirements.
•• Reviews and initiates programs to provide members with a variety of popular events.
•• Works with department heads to schedule, supervise, and direct the work of all club
employees; confers with them about personnel-related matters, including compensa-
tion, job changes, and performance evaluation.
•• Convenes and presides over meetings with department managers and conducts
regular full staff meetings.
•• Attends meetings of the club’s Executive Committee and Board of Directors.
•• Participates in selected community activities to enhance the prestige of the club;
broadens the scope of the club’s operation by fulfilling the public obligations of the
club as a participating member of the community.
•• Properly manages all aspects of the club’s activities to ensure and maintain the qual-
ity of products and services provided by the club.
•• Serves as liaison between all management staff and the Board.
•• Coordinates inter- and intra-committee activities.
•• Writes policy and rule directives or approves those written by department heads.
•• Has ultimate authority over inter-departmental matters and implements policies con-
cerning employee-employer relations.
•• Develops, maintains, and disseminates a basic management philosophy to guide all club
personnel toward optimal operating results, employee morale, and member satisfaction.
•• Prepares reports and other support material for committee and board use.
•• Negotiates and recommends Board approval for contracts.
•• Provides for and manages the use of the club’s equipment, space, and materials.
•• Establishes and approves workloads, work methods, and performance standards.
•• Maintains relations with police, fire, liquor control board, health department, and other
government agencies.
•• Directs purchasing, receiving, storage, issuing, preparation, and control of all prod-
ucts, supplies, and equipment.
•• Coordinates as necessary arrangements for public functions and social gatherings,
including seating according to protocol and special courtesies extended to members
and guests.
•• Ensures proper cleanliness and sanitation of all club facilities and environments.
•• Performs competitive analyses on clubs and other businesses, providing member
alternatives through personal observations and historical reports.
•• Oversees risk management programs to ensure that adequate safety measures are in
place to protect members, employees, and club assets.
•• Handles emergencies such as fires, accidents, and breaches of security or house
rules promptly and in person. Emphasizes prevention through training, inspection,
and preventive enforcement.
•• Secures and protects the club’s assets, including intellectual property and brand, and
enhances the brand equity.
•• Convenes and presides over meetings with departmental managers; conducts all-
facility personnel meetings.
•• Gives direction to and works closely with vendors, outside contractors, firms, and
individuals providing services to the club.
•• Directs the writing and publishing of the club newsletter and plans for intra-club public
relations.
•• Maintains relations with local, state, and national associations that promote the game
of golf.
•• Assists in the sale and transfer of club memberships.
•• Provides for the security of the club, its environs, and members’ belongings.
•• Adheres to established Board media policies.
•• Performs other duties and functions as the club’s Board may direct that are consistent
with this job description.
Licenses and Special Requirements
•• Certified Club Manager (CCM) designation or in current pursuit of this designation
desirable.
Physical Demands and Work Environment
•• Must be able to reach, bend, stoop, stand, and lift up to 40 lbs.
•• Must be able to handle hot and cold interior and outdoor conditions.
•• Public speaking at meetings and events.
Assistant General Manager

Position
Assistant General Manager
Related Titles
Clubhouse Manager; Assistant Manager; Assistant Club Manager; Assistant Clubhouse
Manager; Assistant General Manager—Hospitality Services
40 Chapter 1
Reports to: General Manager/Chief Operating Officer (GM/COO)
Supervises: Executive Housekeeper, Director of Security, Valet, Coat Checker; Director of
Facilities
•• Bachelor’s degree from a four-year college or university; Hospitality Management
major preferred.
•• Member of Club Managers Association of America (CMAA) and other professional
associations.
•• Attends conferences, workshops, and meetings (e.g., CMAA’s World Conference
and Club Business Expo, and CMAA chapter meetings) to keep abreast of current
information and developments in the field to enhance his or her value and quality of
services to the members.
•• Six or more years of related experience, with three or more years as a manager.
•• Substantial private club or hospitality industry experience, with management and
supervisory experience and progressive professional advancement.
•• Management of complex capital projects.
•• Experience working with volunteer committees.
Job Knowledge, Core Competencies, and Expectations
•• Ability to function as the club’s GM/COO during his/her absence.
•• Knowledge of management requirements for housekeeping, engineering, mainte-
nance and repair, and security functions at the club.
•• Must demonstrate appropriate analytical skills, attention to detail, and organizational
and project management skills.
•• Ability to develop and maintain awareness of occupational hazards and safety pre-
cautions; skilled in following safety practices and recognizing hazards.
Works closely with the GM/COO. Responsible for the operation of all aspects of the club in
the absence of the GM/COO and performs specific tasks as requested by the GM/COO.
Job Tasks/Duties
•• Approves budgets, staffing, and general operating procedures and other plans for the
rooms, housekeeping, maintenance and repair, and security departments; directs the
work of department heads.
•• Monitors the budget and directs corrective action procedures as necessary to help
ensure that budget goals are attained.
•• Functions as an administrative link between departments.
•• Monitors internal cost control procedures.
•• Plans and coordinates training and professional development programs for himself or
herself and club personnel.
•• Assists the GM/COO in developing and implementing long-range (strategic) and
annual (business) plans, operating reports, forecasts, and budgets.
•• Monitors safety conditions and employees’ conformance with safety procedures;
updates emergency plans and procedures and ensures that effective training for
these programs is conducted in all departments.
•• Maintains contact with members and helps to ensure maximum member satisfaction.
•• Receives and resolves complaints from club members, guests, and employees.
•• Ensures that the club’s preventive maintenance and energy management programs
and Master Plan are on schedule and in use.
•• Assists in the planning of facility improvements, remodeling, construction, and repair;
and interacts with applicable club committees for this purpose.
•• Participates in ongoing facility inspections throughout the club to ensure that cleanli-
ness, maintenance, safety, and other standards are consistently attained.
•• Serves as an ad hoc member of appropriate club committees.
•• May serve as a department manager in that manager’s absence.
•• Attends management and staff meetings as scheduled.
•• Interacts with members—answering questions, solving problems, and overseeing
services; shows club facilities to guests of members and other visitors.
•• Approves all entertainment in consultation with the Special Events Manager and oth-
ers.
•• Serves as a club representative within the community.
•• Counsels with other managers and employees about employee grievances and com-
plaints; directs problem correction where possible.
•• Monitors labor costs; evaluates scheduled and actual labor hours and costs.
•• Researches new products and develops an analysis of their costs and benefits.
•• Oversees daily club operations.
•• Reviews all accidents and works with Security in completing accident reports.
•• Advises GM/COO about the development and revision of club by-laws and policies;
consistently enforces all policies.
•• Works with Human Resources Department staff to meet the long-term staffing needs
of the clubhouse department.
•• Works with department heads to plan professional development programs for appli-
cable staff.
•• Ensures that all legal requirements are consistently followed.
•• May perform clubhouse opening and closing duties, including those related to secu-
rity.
•• Recruits for and manages the club’s internship program; responsible for the manage-
ment and operation of the employee dormitory.
•• Monitors employee dress codes and member dress codes as applicable.
•• Conducts training and other meetings with department staff.
•• Completes other appropriate assignments made by the GM/COO.
•• Certified Club Manager (CCM) designation through CMAA or in current pursuit of this
designation desirable.
•• Must be able to handle hot and cold interior and outdoor conditions.
•• Independent mobility throughout the clubhouse.
The Board of Directors 1. Describe a typical board structure and
Board Structure how it governs the club. (pp. 43–53)
Written Records 2. List the types of written records that
The General Manager a private club board generates and
Starting a New Job maintains. (pp. 53–59)
Chief Operating Officer Model
Management to Leadership Model 3. Identify the important factors that
Working with the Board make a new job a success for general
Other Tips for Long-Term Success managers. (pp. 59–61)
Professional Development 4. Explain the chief operating officer
model. (p. 62)
5. Describe how the management to
leadership model works and what it
means for club managers. (pp. 62–65)
6. List tips for long-term success as a
club manager. (pp. 65–66)
7. Identify professional development
opportunities for private club
managers. (pp. 66–71)
2
The Board of Directors and
the General Manager/Chief
Operating Officer
This chapter was written and contributed by Joe Perdue, CCM, CHE, Academic
Advisor, Club Managers Association of America; and Executive Director of
Global Hospitality Initiatives, Georgia State University, Atlanta, Georgia.
T wo critical pieces of a club’s puzzle are the club’s board and its general manager.
They must work together for a club to be successful. Club boards govern the phi-
losophy and function of the club. It is worth examining who serves on them, how
they function, their duties, and so on. The second key factor in a club’s success is
the management of the club. Managers have key career development needs and
must work closely with boards. They also must continually take advantage of edu-
cational opportunities to keep up in the fast-paced, demanding club environment.
The Board of Directors

Private clubs are governed by a board of directors that club members elect from
among their numbers.1 A club depends on its board of directors for long-term
guidance, leadership, and policy-making. Each member of the board plays an
important role in ensuring that the club continues to thrive and meet the needs of
its members.
While the specific duties of board members vary among clubs, there are three
primary legal duties that all board members assume:
•• Duty of care. Board members must take the same precautions in governing the
club that an “ordinarily prudent” person would take.
•• Duty of loyalty (or good faith). Board members must put the interests of the
club ahead of their own personal interests.
•• Duty of obedience. Board members must remain faithful to the mission of the
club.
Some clubs have written position descriptions for board members. A posi-
tion description can help educate a board member about his or her board duties
by spelling out the roles and responsibilities a board member is expected to fulfill
and outlining the structure of the club, club policies, and the club’s strategic goals.
Exhibit 1 gives a list of typical board member duties (of course, these vary some-
what from club to club).
43
54 Chapter 2
44 Chapter 2
Exhibit 1 Board Member Duties
1. Establish club policies.

2. Oversee the fiscal management of the club.
3. Enact regulations (bylaws, rules, resolutions).
4. Adopt budget plans.
5. Approve membership applications.
6. Hire the general manager.
7. Meet prospective new members.
8. Oversee the administration of policies.
9. Fill vacancies on the board.
10. Supervise the administration and enforcement of club regulations.
11. Discipline, suspend, or expel a member when necessary.
12. Review and approve programs submitted by club committees.
13. Oversee transfers of memberships.
14. Attend special meetings.
15. Supervise club elections.
16. Set an example by abiding by all club rules.
Board Structure
Board Structure
Every club struggles to find the ideal structure for its board. How many people
Every
shouldclubservestruggles
on it? How to find
longthe ideal each
should structure
person forserve?
its board.
HowHow should manyclubpeople
mem−
should
bers be serve
chosen onfor it? the
How long should
board? There are each noperson
standardserve? How that
answers should club mem-
fit every club.
bers
Eachbe chosen
club has itsforownthe challenges
board? There andare no standard
needs, and the way answers that isfitput
a board every club.
together
Each club has depends
and operated its own challenges
on the structureand needs, and theofway
and purpose each a board
club. is put together
and operated depends on the structure and purpose of each club.
Size. The size of most boards is determined more by their histories than by studies
Size.
of whatThewould
size ofbemostmostboards is determined
effective. Some clubmore by their
experts histories
say that a club than by studies
board’s ideal
of what
size would be
is between 9 andmost12effective.
directors;Some othersclub
putexperts
the idealsayrange
that at
a club board’s
8 to 15. ideal
However,
size
someisclubs
between 9 and
operate 12 directors;
very effectivelyothers
with aput the whose
board ideal range at 8 to
size falls 15. However,
outside of these
some clubs operate
recommended ranges. very
Theeffectively
key for each withclub
a board whose
is to find size falls
a board thatoutside
is smallof these
enough
recommended
to make timelyranges.decisions Thebut
key for each
large clubtoiseffectively
enough to find a board
handle thatitsisduties.
small enough
to make timely
A large decisions
board but large
that serves one enough to effectively
club extremely handle
well coulditsbe duties.
a disaster at
A large
another club.board
A boardthat serves
that is one
too club
largeextremely
for a clubwellcancould
causebe a disaster
several at another
problems. For
club. A board
one thing, oncethat is too large
a board gets toofor large,
a clubitcan cause
is no several
longer ableproblems. For one thing,
to make decisions effec−
once
tively.a Other
board potential
gets too large, it is no longer
disadvantages of anable to makeboard
oversized decisions
includeeffectively. Other
the following:
potential disadvantages of an oversized board include the following:
• Board discussions/debates tend to be of lower quality
•• Board discussions/debates tend to be of lower quality
• Board members become less personally involved in the board
•• Board members become less personally involved in the board
• Board members fail to assume responsibilities
•• Board members fail to assume responsibilities
• Less frequent board meetings
•• Less frequent board meetings
• Increased apathy among board members
•• Increased apathy among board members
The Board of Directors and the General Manager/Chief Operating Officer 45
A board that is too small carries its own set of challenges. If a board is too
small, there may not be enough directors to do the work that needs to be done,
making the board weak and ineffective. Some other problems a too-small board
might cause include the following:
•• Not enough policy guidance for the club’s general manager
•• Failure to represent some segments of the club’s membership
•• A tendency for board members to become clannish
•• Difficulties in achieving a quorum
•• Lack of discussion on important issues
Whatever the board’s size, board experts encourage clubs to have an uneven
number of people on their boards to eliminate the problem of deadlock.
Makeup. A club board of directors is presided over by a president (the board’s
president is also referred to as the club’s president). The president may be elected
by the general club membership or, in some cases, the members of each new board
may elect the president and the board’s other officers (vice president, secretary,
and treasurer) from among themselves.
Even though a club’s bylaws may spell out many specific duties and respon-
sibilities for its board president, the president’s most important role is to lead the
club. As the board of directors’ guidelines for one club put it:
The president’s role, even as defined in the bylaws, is specifically non-
specific. He is, in fact, “responsible for everything” at the club. His job is
leadership. Ideally he should have qualities of wisdom, understanding,
concern for everybody (staff as well as members), statesmanship, sales-
manship, patience (and, when the time is right, impatience), and avail-
ability. He should have a love affair with the club because, for a full year,
he must care more deeply than any other member, and spend more time,
sweat, and perhaps tears, than will ever be appreciated.
At most clubs, the president’s term is one year; at others, it might be two.
Rarely is it more than two years.
The board’s vice president presides at board meetings in the absence of the
president. He or she should be the president’s advisor, principal confidant, aide,
and supporter. The vice president should learn the president’s job and be prepared
to assume and perform the duties of president if needed.
The club’s secretary keeps the minutes of all board meetings (or sees that they
are kept by someone) and is in charge of the club’s records. He or she notifies
board members of meetings and conducts board correspondence. At some clubs,
the secretary is in charge of maintaining a correct roll of members and coordinat-
ing the election of board officers and directors.
The club’s treasurer reports to the board each month on the club’s financial
status, and in fulfilling that role must meet periodically with the club’s managers
to go over financial reports. The treasurer must be the financial watchdog for the
board, since most other board members rely on him or her (and the club’s general
manager) regarding financial matters.
46 Chapter 2
Club Governance
According to the club governance model of the Club Managers Association of
America, “governance” can be simply defined as the making and administration of
policy, and the term “policy” can be defined as a course of action or directive from a
person of higher authority. It is sometimes said that a club’s board develops policies
and the general manager implements them, but that’s not quite correct. When we
refer to policy, it is necessary to identify the type of policy, which is determined by
its source—i.e., the person or entity that is issuing the policy. For example, member
policy is determined by members, board policy by the board of directors, and operat-
ing policies (or work procedures) by the GM. Policies flow down through the organi-
zation—from the members to the board, to the GM, and then to the staff—with each
level of authority being subject to the policies of higher levels of authority. CMAA’s
governance model further states that a board policy is a statement of the board to the
GM that is designed to influence how the GM manages the club. The GM will in turn
have policies for the staff across the various management functions–—food service,
golf course maintenance, accounting, and so on.
What do the other members of the board of directors do? Ideally, a director’s
role is to be a representative of the membership, a policy maker, an overseer, a
planner, and a supporter of the club’s management. According to one industry
expert, directors should exercise their responsibilities primarily by asking good
and timely questions rather than by trying to actually run club programs or imple-
ment their own policies.2
The club’s general manager attends board meetings as well, to report on the
club’s status and answer any questions board members might have. The general
manager does not vote on board matters, however.
Board Member Tenure. Like a board’s size, a board member’s tenure or term of
service is usually established by history and tradition rather than by careful analy-
sis. Depending on the club, tenures of club board members range anywhere from
one year to a lifetime appointment.
Samuel Adams, a hero of the American Revolution, voiced his distrust of any-
one who governs for too long, stating that “where annual elections end, tyranny
begins.” A similar fear that long-serving board members might abuse their power
led some clubs to establish short terms for board members. More frequently, a
short term was chosen for the sake of the board members; becoming a board mem-
ber typically means taking on a lot of work and responsibility. Some advantages to
short terms include the following:
•• More club members are able to serve on the board because positions open
more frequently.
•• A board member’s typically heavy workload need be carried for only a short
time.
•• The board is constantly infused with new ideas and viewpoints.
•• “Problem” board members do not have as much time to do damage as they
would with longer terms.
These advantages haven’t convinced everyone that board member terms should
be short. Cyril O. Houle, a member of several boards and author of many books
and papers on board governorship, says that “a short period of service does not
provide enough time for the individual member to absorb what he needs to know,
to make a substantial contribution, or to be prepared through experience for later
major responsibilities.”3
Frequent board turnover also has its drawbacks from a club general manag-
er’s point of view. New presidents and board members bring their own ideas and
agendas to the table, sometimes making it hard for a club to stick to a consistent
direction. As one general manager put it: “Board members, committees, and presi-
dents change annually at my club. It’s very frustrating to find the emphasis and
thinking changes each time they do. Direction becomes confusing—in fact, quite
often there is no direction or fundamental plan for the year.”4
As these criticisms imply, there are advantages to long terms of service for
board members (especially in clubs where there are many departments and
activities):
•• Board members have more time to master the club’s complexities and
challenges.
•• The commitment of board members is at a higher level.
•• The board has greater stability.
•• The board has a greater commitment to long-term and strategic planning.
The major disadvantages to a long term are that fewer people get a chance to serve
on the board, thus limiting the infusion of new ideas, and that the club may not
develop enough new leaders.
A question related to term length is: how many terms should someone be per-
mitted to serve on the board? In some clubs, there are no term limitations for board
members; it is left to the personal judgment of the individual as to how many
terms to serve (if he or she continues to be nominated). If a board does choose to
enact term limitations, it should spell out how those limits apply to half-terms, and
whether a person can serve on the board again after a period of absence.
Most board experts encourage the staggering of terms. A club that replaces
all of its board members at once loses all of its experienced board leadership and
sacrifices continuity. The most common way to stagger terms is to have one-third
of the board members begin their term of service each year; with this plan, a board
loses only one-third of its members in any given year. Houle cites two advantages
to staggered terms:
•• Staggered terms allow for both continuity and a change in membership.
•• Staggered terms make it easier to plan for diversity and maintain a board that
is representational of the membership.
Board Member Selection. Short board tenures and term limits can help rotate an
ineffective board member out of service, but it is far better for a club that an ineffec-
tive member never occupy a board seat in the first place. This places great impor-
tance on the selection of board members. At most clubs, the general membership
58 Chapter 2
48 Chapter 2
Exhibit 2 Guidelines for Nominating Board Members
A board member candidate should:

• Have outstanding business, administrative, or other valuable experience, proven
ability, and significant accomplishments.
• Either hold a position of high responsibility or have recognized expertise in one
or more areas.
• Have no present or visible potential for conflict of interest and should not be an
officer or director of any major club supplier or competitor of the club.
• Be able to show some connection with organizations that serve the community in
civic, social, or charitable activities.
• Possess self-confidence and be at ease with individuals of distinguished attainment.
• Be articulate and command respect from peers.
• Possess maturity, but also display youthful initiative and a progressive attitude.
• Be enthusiastic about the prospect of serving and be able to devote the neces-
sary time.
• Be neither chosen nor excluded solely because of race, color, or sex.
Source: Adaptedfrom
Source: Adapted from Arthur
Arthur D. Little,
D. Little, Inc.,Inc., The Corporate
The Corporate Director:
Director: A of
A Report Report of the Corporate
the Corporate Directors
Directors
Conference Conference (Boston,
(Boston, Mass.: Mass.:
Cahners Books).Cahners Books).
•electsTooboard
manymembers from Ifamong
directorships. club
a person members
is already onwho have been
a number nominated
of boards, for
he or she
board service either by a nominating committee or the current board.
will probably not be able to devote as much time to the club’s board as needed.5
A club should consider several factors when selecting board members. One
However
of the most a club selectsisits
important to board members,
make sure there are
the diversity of certain traitsmembership
the general that it should
is
look
represented on the board. Some clubs address this by requiring that therethat
for in a potential board member. Exhibit 2 lists some of the qualities nomi−
be board
nating
members committees
from each orofboards should
the club’s look for when
membership nominating
categories. This club members
prevents for
a board
board service.
from being made up of all golfing members or all social members, for example.
It should
Ralph be noted
F. Lewis, that club
editor managers have
and publisher of theno official Business
Harvard responsibilities
Review,ortalked
input
regarding the selection of board members. This is strictly a decision for the club’s
at a board conference about several potential hazards in selecting board members.
members, and wise club managers stay out of the process.
They were:
•• Tokenism.
Board MemberClubs shouldConsidering
Orientation. the crucial role
not bring unqualified that board
people members
onto the board play
just
in guiding their club, it is important that new board members fully
because they represent particular club groups. A club should take the time to understand
theirfind
newqualified
responsibilities. A well−planned
people from those groups.orientation can help a new board mem−
ber make a successful transition from neophyte to contributor. Orientations:
•• Conflict of interest. Clubs should carefully consider whether potential board
• members
Set a clear have anynew
role for current
boardormembers.
potential conflicts between their business or
• personal lives and the needs
Provide new board members with the of the club.
materials they need to govern effectively.
••• Too manythedirectorships.
Shorten learning curveIf aof
person is alreadyand
new members on help
a number
them of boards,
become he or
produc−
she will
tive more probably
quickly. not be able to devote as much time as needed to the club’s
board.5
• Help new members understand what is and (just as important) what is not
However a club
expected selects its board members, there are certain traits that it should
of them.
look for in a potential board member. Exhibit 2 lists some of the qualities that
Club Governance Policies and Procedures

According to a survey by the National Club Association, the following are the per-
centages of clubs that adhere to the listed governance policies and procedures:
•• The club is organized under the general manager/chief operating officer con-
cept: 81%
•• The board effectively delegates appropriate matters to staff or club committees:
77%
•• The board communicates effectively with club members to keep them up to date
on club activities: 76%
•• New board members participate in a board orientation program: 62%
•• The board has a conflict of interest statement that each director must sign: 61%
•• The club has a whistleblower policy for employees: 54%
•• Board members receive a written description of their duties and responsibilities:
50%
•• The club follows an established document retention plan: 48%
•• The club has a succession planning process to ensure continuity in leadership:
43%
•• The board has a code of ethics policy that each director must sign: 42%
•• Committees have annual goals, and the board monitors their achievements:
29%
nominating committees or boards should look for when nominating club mem-
bers for board service.
It should be noted that club managers have no official responsibilities or input
regarding the selection of board members. This is strictly a decision for the club’s
members.
Board Member Orientation. Considering the crucial role that board members
play in guiding their club, it is important that new board members fully under-
stand their new responsibilities. A well-planned orientation can help a new board
member make a successful transition from neophyte to contributor. Orientations:
•• Set a clear role for new board members.
•• Provide new board members with the materials they need to govern effectively.
•• Shorten the learning curve of new members and help them become produc-
tive more quickly.
•• Help new members understand what is and (just as important) what is not
expected of them. See Exhibit 3 for one club’s description of board and com-
mittee responsibility.
•• Give current board members and the general manager a chance to welcome
new board members.
50 Chapter 2
Exhibit 3 Sample Club Statement of Committee and Board Responsibilities,
Roles, and Duties
Committee Responsibilities
Committees of members shall be designated by the Board of Directors to assist the
Board of Directors by suggesting policies. Upon the recommendation of a policy by
the appropriate Committee, the Board of Directors may, at its sole discretion, choose
to adopt the policy, modify and adopt the policy, or not to adopt the policy. Com-
mittees, while having input into the budget process, shall not have the authority to
purchase any material in the name of the Club, unless granted the authority for a
specific purchase by the Board of Directors. Committees will oversee, through the
General Manager, the adoption of Board-approved policies.
Guidelines for Committees:

1. The President is an ex-officio member of all Committees and should have the
courtesy of an invitation to each meeting. He may not have time to attend every
meeting during the year, however, and therefore relies on committees’ reports.
2. All committees will work through the General Manager. The General Manager
and/or a subordinate staff executive should attend every committee meet-
ing. They act as consultants on operational matters and provide professional
continuity from year to year. Their presence can save much time and effort when
questions of policy or questions about the effect of decisions on the other facets
of Club operations are raised.
3. For liaison purposes, a member of the Board of Directors should be assigned to
every major committee and will serve not only as a liaison, but shall also be a
voting member of the committee.
4. Committees are advisors to the Board of Directors and thus have no “command”
function over personnel, unless the Board of Directors specifically assigns such
a duty.
5. All committee actions require Board approval, except in those areas where
authority to act independently has been delegated.
6. Every committee will keep records of its meetings, its policy decisions, and
authorities, and render periodic reports.
7. Throughout the year, following each committee meeting, every chairperson must
submit a report of actions and progress to the Board for the latter’s next meeting.
8. Suggestions or complaints concerning any area of the club should be put in
writing and addressed to the Committee Chair or Board of Directors. Communi-
cating your thoughts in writing allows the recipient time to gather the information
required to answer you with more accuracy and detail.
Source: Fiddlesticks Country Club, Fort Myers, Florida, Club Operations Manual, Premier
Club Services, Club Managers Association of America.
The Club Managers Association of America found that 45 percent of the clubs
it surveyed had orientation programs for new board members. The likelihood that
a club would have an orientation program increased as the number of total club
members increased. While 30 percent of clubs with less than 400 members had
board orientation programs, this number increased to 55 percent among those
clubs with more than 900 members. The club’s general manager is the facilitator in
at least half of these orientation programs. In nearly half of the programs, the club
president is involved as well.
The bulk of the work involved with planning and conducting new-board-
member orientation programs usually falls to the club’s general manager, since he
or she is frequently the person with the fullest knowledge of how the club works.
Many general managers like being in charge of the orientation, since it is in their
best interest to have board members properly oriented to their roles and respon-
sibilities. Although the general manager may plan, coordinate, and even facilitate
the new board member orientation, it is often the role of the club president to set
the stage in the actual orientation session and emphasize the importance of serv-
ing on the club’s board.
Exhibit 4 is a sample checklist general managers might use when planning an
orientation. A key decision that must be made early on is whether the orientation
session should be held on- or off-site. The general manager and board president
usually make this decision. Holding the orientation at the club allows for a tour of
club facilities that new board members may not have seen before (such as the club-
house kitchen or other back-of-the-house areas); it also allows the general manager
and board president easy access to additional resource materials if any are neces-
sary. However, holding the orientation session off-premises may provide a more
comfortable environment for new board members. At a different site, everyone is
usually more relaxed and there should be fewer interruptions for the general man-
ager to deal with.
A general manager can orient new board members individually or hold a
group session. If holding a group session, the general manager should check
everyone’s schedule and choose a time convenient for everyone. The general man-
ager will also need to make sure that all materials and equipment needed for the
orientation are in place for the meeting. Exhibit 5 is a list of materials that are com-
monly used in orientations.
An orientation typically includes the following activities:
•• A tour of the club (if the orientation is held on-site), including back-of-the-
house areas
•• Distribution of printed material
•• A discussion/overview session
•• A meal
•• A slide or media presentation
•• Panel discussions
•• A question/answer session
All new board members should receive a manual containing a board-member-
position description and other written materials they might wish to consult as
they carry out their board duties. General managers can use computers to help
60 Chapter 2
52 Chapter 2
Exhibit 4
3 Sample New-Board-Member
New−Board−Member Orientation Checklist
Setting Orientation Objectives

______ Write clear, measurable objectives for the orientation session.
______ Compare objectives to previous years’ objectives.
______ Review orientation materials to make sure they meet objectives.
______ Update orientation materials to reflect objectives (if necessary).
Delivering Materials
______ Send a welcoming letter to each new member.
______ Compile all necessary orientation materials.
______ Mail or hand-deliver orientation materials to new board members.
Planning the Agenda
______ Set a date or dates for the orientation session or sessions.
______ List each orientation activity:
______ Tour of club
______ Distribution of printed orientation material
______ Discussion/overview session
______ Meal
______ Slides or media presentation
______ Panel discussions
______ Question/answer session
______ Board meeting
______ Other:
______ Assign a time to each activity.
______ Prepare agenda and make copies.
Informing the Involved Parties
______ Call or write individuals making presentations during the orientation(s):
______ Board president
______ Committee chairpersons
______ Experienced board member(s)
______ Club attorney
______ Club controller
______ Other:
______ Call or write all new board members.
______ If necessary, reserve the room where the orientation will be conducted.
(continued)
(continued)
A Club’s Board and Its General Manager 61
3
Exhibit 4 (continued)
Conducting the Orientation

______ Arrive at the orientation site early.
______ Bring all necessary materials.
______ Distribute the agenda.
______ Begin on time.
Following Up with New Members

______ Call every new member after the first orientation session.
______ Call every new member after the first board meeting.
______ Call every new member a few months into the new members’ terms.
them produce
• Panel these manuals each year. Information stored on the computer can be
discussions
updated as club rules and procedures change.
• General
A question/answer session
managers who take the time to put together fun and informative ori-
entation sessions are making an investment that will greatly benefit the new mem-
All new board members should receive a manual containing a board−member
bers, the board, themselves, and the entire club.
position description and other written materials they might wish to consult as they
carry out Records
Written their board duties. General managers can use computers to help them
produce these manuals each year. Information stored on the computer can be up−
Every board relies on a wide range of written records. Although these records vary
dated as club
depending onrules and and
the club procedures
its boardchange.
and general manager, there are a few basics
General managers who
that no club can do without: take the time to put together fun and informative ori−
entation sessions are making an investment that will greatly benefit the new mem−
•• Articles of incorporation
bers, the board, and the entire club.
•• Bylaws
•Written
• Rules Records
• Financial
•Every documents
board relies on a wide range of written records. Although these records vary
• Meeting
•depending onminutes
the club and its board and general manager, there are a few basics
•that
• no club can do without:
Agendas
• Articles
Articles of Incorporation.
of incorporationArticles of incorporation establish the club’s legal
existence. (In some clubs, this document is referred to as the club’s constitution.)
• articles
The Bylaws of incorporation establish that the organization is a club and state the
name,
• Ruleslocation, and purpose of the club (see Exhibit 6). Articles of incorporation
typically are very short and extremely difficult to change.
• Financial records
Bylaws. A club’s bylaws govern its board and set the foundation for club rules.
• Meeting
Bylaws are the backbone of a club. The following topics are typically covered in a
minutes
club’s bylaws:
• Agendas
•• Membership requirements
Articles of Incorporation. Articles of incorporation establish the club’s legal exis−
tence (in some clubs, this document is referred to as the club’s constitution). The
articles of incorporation establish that the organization is a club and state the
name, location, and purpose of the club (see Exhibit 5). Articles of incorporation
62 Chapter 2
54 Chapter 2
5
Exhibit 4 New-Board-Member
Materials Commonly Used in New Orientations
Board Member Orientations
• Position descriptions for board members

• Club organization chart
• Club mission statement
• Definition of responsibilities
• Club articles of incorporation and bylaws
• Club rules
• Club policies and procedures
• Club financial information
• Minutes of previous year’s board meetings
• Pending issues before the board
• Calendar of events and meetings
• Names and biographies of board members
• Names of all club committees and their chairpersons
• Director’s and officer’s insurance information
• Board meeting procedures and customs
• Club history
• Applicable state laws
• List of resources (Club Managers Association of America, Professional Golfers’
Association of America, and so on)
• The club general manager’s responsibilities
• Guidelines for effective board meetings
• Sample club forms
• Current club news releases
• The club’s long-range plans
• The club’s conflict- of- interest policy
Bylaws. A club’s bylaws govern its board and set the foundation for club rules.
• Membership
•Bylaws classes (regular,
are the backbone of a club.social, junior, and
The following so on)
topics are typically covered in a
club’s bylaws:
•• Admission policies and procedures
•• Member assessments
Membership and minimum charges
requirements
•• Policies for reprimands,
Membership suspensions,
classes (regular, and expulsions
social, junior, and so on)of members
•• Guidelines
Admission for the board
policies of directors and its officers, the general manager, and
and procedures
• club committees
Member assessments and minimum charges
•• Election procedures
• Policies for reprimands, suspensions, and expulsions of members
•• Membership meeting guidelines
• Guidelines for the board of directors and its officers, the general manager, and
•• Use
club of the club by members, spouses, other family members, and guests of
committees
members
• Election procedures
•• Bylaw amendment procedures
A Club’s Board and Its General Manager
63
6
Exhibit 5 Sample Articles of Incorporation
Articles of Incorporation issued February 11, 1889; amended October 17, 1900; May
26, 1908; and May 23, 1935; to read as follows:
1. The name of such corporation is the XYZ Club.

2. The object for which it is formed is the promotion of literature and art, by establish-
ing and maintaining a library, reading-room, and gallery of art, and by such other
means as shall be expedient and proper for such purposes.
3. The governance of the aforesaid XYZ Club shall be vested in a board of eighteen
directors to be elected by the members as provided by its bylaws.
4. The location is in [city], in the County of [county name], and State of [state name].
• Most club general

Membership managers
meeting advise against having items subject to frequent
guidelines
change in the bylaws, because bylaws are usually difficult to change. Matters such
• member
as Use of dress
the clubcodes
byand how much
members, the membership
spouses, other familydues shouldand
members, be are better
guests of
placed in club rules or policy statements.
members
• Before it is adopted,
Bylaw amendment every bylaw should be subjected to rigorous analysis
procedures
by the board and its legal advisors. A club’s general manager can be very
useful during
Most club this process
general because
managers of hisagainst
advise or herhaving
knowledge
itemsof club operations.
subject to frequent
Each
changebylaw should
in the bylaws,be:because bylaws are usually difficult to change. Matters such
as member dress codes and how much the membership dues should be are better
• Consistent
•placed withor
in club rules federal,
policystate, and local laws.
statements.
•• Consistent
Before it is with the club
adopted, charter.
every bylaw should be subjected to rigorous analysis by
•• Consistent with reason (the A
the board and its legal advisors. club’s
bylaw general
should manager
make sense).can be very useful dur−
ing this process because of his or her knowledge of club operations. Each bylaw
• Capable
•should be: of being complied with.
••• Consistent
Consistent with
with ownership or and
federal, state, contractual rights.
local laws
••• Consistent
Consistent with
with the
the club’s tax status.
club charter
• Although
Consistentitwith
is notreason
uncommon for bylaws
(the bylaw shouldtomakebe written
sense)in “legalese,” such lan-
guage frequently obscures the meaning of the bylaws. A club’s bylaw committee
•
should deleteofallbeing
Capable ambiguities
complied that might cloud a bylaw’s intent. E. B. White’s oft-
with
quoted
• statement,
Consistent with“Itownership
is easier for oracontractual
man to be loyalrightsto his club than to his planet;
the bylaws are shorter, and he is personally acquainted with the other members”
•
might Consistent
be taken as with the club’s taxThe
an admonition. status
shorter and easier to understand the bylaws
are, the more loyalty and obedience
Although it is not uncommon for bylaws the club istolikely to engender.
be written in �legalese," such lan−
guage frequently obscures the meaning of the bylaws. A club’stobylaw
It is important that a club have bylaws that are responsive the club’s mem-
committee
bers.
shouldClubs that
delete allnever review their
ambiguities bylawscloud
that might sometimes endintent.
a bylaw’s up burdened with anti-
E. B. White’s oft−
quated
quoted bylaws
statement that
�Itno longerfor
is easier reflect
a manthe to club’s
be loyal mission, direction,
to his club than toor
hisneeds.
planet;(For
the
example,
bylaws are one club formed
shorter and he is during the Great
personally Depression
acquainted with had a bylaw that
the members" stated
might be
that
takentheasclub’s board could
an admonition. notshorter
The approve and any capital
easier loan greater the
to understand than $10,000
bylaws with-
are, the
out
moregetting a vote
loyalty and of approvalthe
obedience fromclubthe
is club’s
likely full membership; needless to say, this
to engender.
madeItitismore difficult for the club to make improvements.)
important that a club have bylaws that are responsive Some clubs
to the are facing
club’s mem−
membership shortages for the first time. For this and
bers. Clubs that never review their bylaws sometimes end up burdened other reasons, many clubswith
are
seeing the need to revise their bylaws.
56 Chapter 2
Rules. Private clubs have always had rules to cement the expectations of the
majority of their members. Rules in a club are important because they facilitate:
•• Efficient operation of the club.
•• Maximum enjoyment of the club.
•• Better member relations.
•• Problem resolution.
•• Equitable access to facilities.
•• Better service.
A club’s rules answer questions about how members should dress, how they
should use the club’s facilities, where they can go within the club, who has access
to which services, and so on. Without rules, club members would be adrift in a sea
of undefined expectations. Rules establish what club members can expect from
each other, the board, and the club’s staff. A club’s rules are meant to establish
expected behavior, not limit or restrict the members’ enjoyment of the club.
Financial Documents. There are many financial documents that boards use on
a regular basis. It is important for board members to become familiar with these
documents so they can use them to check on the club’s current financial status.
Financial documents commonly reviewed by boards include operating budgets,
capital appropriation requests, capital budgets, statements of income and expense,
and balance sheets.
Meeting Minutes. Keeping minutes can aid the effectiveness of board meetings.
Minutes, in their simplest form, can help keep board members informed of prior
decisions, pending issues, and repeating agenda items. At a slightly more com-
plex level, the minutes can be used as a living document to help facilitate the
current meeting. Minutes may be kept on a flip chart or chalkboard. As board
discussions progress, the person recording the minutes writes down key words
or main points. When necessary, he or she can ask, “Is this what you’re saying?”
or “Is this okay?” If a flip chart is used, pages can be hung around the room as
they fill up and used as references to help keep the discussion moving. Since the
club’s general manager might be called on to keep the minutes, Exhibit 7 has some
tips for keeping minutes during a board meeting. It should be noted that board
meeting minutes serve as a permanent record of the actions and discussions of
the board, so they must be accurate and concise.
Agendas. The bane of every general manager is the board meeting that lasts for
many hours but accomplishes little. While some general managers have resigned
themselves to sitting silently while board meetings go on and on, other general
managers have identified and implemented ways to make board meetings more
efficient for the participants and the club. Consistently, club general managers and
meeting experts cite the meeting agenda as the single most important tool for
successful meetings. Every meeting should have an agenda that serves as a “road
map” showing board members what route the meeting should take. Without an
agenda, participants are likely to turn off at every interesting side street, which
might be entertaining but rarely makes for a successful meeting.
A Club’s Board and Its General Manager
65
7
Exhibit 6 Tips for Minute-Taking
Minute Taking
When recording minutes, keep the following tips in mind:

• Don’t worry about spelling while recording information.
• Listen for key words and phrases to capture basic ideas.
• Interrupt the discussion and ask for clarification if you get behind.
• Focus on ideas rather than names. The board speaks as “one,” so it is not nec-
essary to record the names of who said what. (Use names in the minutes to
indicate assignments given to board members. Names may also be used when
thanking a person or group.)
• Read back your notes to the board at the end of the meeting to make sure there
aren’t any additions or corrections.
• Finish your notes by outlining the agenda for the next meeting.
• Write clearly.
If using a chalkboard or flip chart:

• Underline for clarity.
• Change colors for visual relief or organizational purposes.
• Star, box, or circle for emphasis.
themselves
At many to clubs,
sitting itsilently
is the while
general board meetings
manager whogoputs on and
boardon,meeting
other general
agen-
managers have identified and implemented ways to make
das together, subject to the approval of the board president. (Exhibit 8 containsboard meetings more
efficient for the participants and the club. Consistently, club
tips offered by club general managers for preparing a board meeting agenda.) general managers and
meeting experts cite the as the single most
Although putting an agenda together every month can be time-consuming, many
meeting agenda important tool for suc−
cessful meetings.
general managers Everywelcome meeting should have an
this responsibility agenda
because that serves
it gives them aasmeasure
a �road
map" showing board members what route the meeting
of control over board meetings and helps them keep board members focused on should take. Without an
agenda, participants are likely to turn off at every interesting
policy and governance issues and away from the temptation to manage the club. side street, which
might be entertaining
Many but rarelyrecommend
general managers makes for a that
successful
boardmeeting.
meeting agendas be as
At many clubs, it is the general manager
detailed as possible. For example, instead of simply who puts board“Treasurer’s
listing meeting agendas
Report,”to−
gether, subject to the approval of the board
ideally an agenda should list something like the following: president. (Exhibit 7 contains tips of−
fered by club general managers for preparing a board meeting agenda.) Although
Treasurer’s
putting an agenda Report—15
together minutes
every month can be time consuming, many general
managers welcome this responsibility because it gives them a measure of control
Financial Review. (See the attached statement.)
over board meetings and helps them keep board members focused on policy and
Capital
governance issuesRequests.
and away The grounds
from committee
the temptation to is requesting
manage a supplemental
the club.
Many airgeneral
conditioner
managersfor therecommend
Kaiser Building.
that board meeting agendas be as de−
tailed as possible. For example, instead of simply listing �Treasurer’s Report,"
anInformation
ideally agenda should Item.list
The accounting
something likedepartment
the following: has just completed a self-
audit. (See the attached report.)
Delinquent Accounts. This month we have four delinquent accounts. (See
Treasurer’s Report�15 minutes
Financial
the attachedReview . (See the attached statement.)
report.)
Capital
Just putting down Requests. The grounds
“Treasurer’s Report”committee
is too vague.is requesting
It doesn’ta outline
supple−what the
mentalare
board members airexpected
conditioner for the Kaiser
to concentrate on,Building.
which tempts some board members
to wanderInformation
and unnecessarily
Item. Theprolong the meeting.
accounting If agendas
department has justindicate the expected
completed
length of athe meeting with a starting and ending
self−audit. (See the attached report.) time, board members will have
an idea of how much time they should devote to a given topic. Sometimes every
66 Chapter 2
58 Chapter 2
8
Exhibit 7 Checklist for Preparing a Board Meeting Agenda
When preparing a written agenda for a board meeting, a club general manager
should check to be sure that:
• The agenda contains a clear indication of why the meeting is being called.
• The agenda is sent out in advance to everyone expected at the meeting.
• Relevant supplementary material is attached (reports, statistical information,
proposals).
• Time is reserved for announcements.
• It says who is running the meeting.
• Time is reserved for breaks during long or unusually difficult meetings.
• Time is budgeted for each agenda item.
• There is an explanatory line or two after each agenda item to set the tone of the
discussion.
• The agenda follows a consistent format for each meeting.
• The agenda identifies the type of action that must be taken on a given agenda item
when necessary (a recommendation, an assignment, a decision, and so on).
• The agenda clearly identifies the location, starting time, and ending time of the
meeting.
• The names of individuals making reports are clearly noted.
• The agenda avoids technical terms that might not be understood by all board
members (or explains any technical terms used).
• Guests making presentations are placed early on the agenda so that they can
leave when their presentations are complete.
agenda item is given Accounts.

Delinquent an estimated This time,
monthas with the example
we have just given (“Trea-
four delinquent
surer’s Report—15 minutes”).
accounts. (See the attached report.)
Another tip from club general managers: only list committees on the agenda
Just putting down
that actually �Treasurer’s
have something Report"
to report. is too
(The vague.
general It doesn’t
manager can outline
check withwhat the
com-
board members are expected to concentrate on, which tempts some
mittee chairpersons before putting the agenda together.) Traditionally, the board board mem−
bers to wander
meeting agendas and
at unnecessarily
many clubs listedprolong
every theclub
meeting. If agendas
committee, month indicate the ex−
after month.
With that format, all committee chairpersons felt they had to give some sort of
pected length of the meeting with a starting and an ending time, board members
report,
will even
have an ifidea
theyofdidn’t have anything
how much time theytoshould
say, which
devoteputtosome
a givenof the chairper-
topic. Some−
sons on the spot and slowed the meetings down.
times every agenda item is given an estimated time, as with the example just given
Determining in what order to place items can also present general managers
(�Treasurer’s Report�15 minutes").
withAnother
a challenge. There
tip from aregeneral
club many ways to arrange
managers: an agenda.
only list committees In the
on past, board
the agenda
meeting
that agendas
actually have typically
something started with(The
to report. the general
approvalmanager
of minutes, then moved
can check with com− on
to committee
mittee reports,
chairpersons old business,
before putting thethen new business.
agenda together.)Some club general
Traditionally, man-
the board
agers have
meeting suggested
agendas a new
at many agenda
clubs listedmodel
everythat
clubfacilitates
committee, themonth
flow ofafter
discussion
month.
and schedules difficult items for when board members are
With that format, all committee chairpersons felt they had to give some freshest. This “action”
sort of
agenda model is structured like this:
•• Announcements (15 minutes or less). These are quick items that require no
debate. Announcements could include everything on the consent agenda
(an agenda listing everything that will be voted on without discussion). By
quickly dealing with these items, the board meeting’s facilitator (typically the
board president) helps board members start to focus their attention on board
matters and away from their outside concerns.
•• Easily discussed items (15 minutes). These are black-and-white issues that can
be addressed quickly. Dealing with these items early in the meeting helps the
board feel that progress is being made and can establish a sense of momen-
tum and teamwork.
•• Most difficult item (25 to 40 minutes). This is the hardest or most controversial
item on the agenda. It’s usually something that needs a lot of discussion or
relates to a long-term need of the club. The facilitator should first state what
is expected of the members—discussion only or a decision. Board members
should then be given a chance to air their viewpoints.
•• Break (10 minutes). This is a chance for everyone to take a breather and think
about the current discussion. It also allows for some behind-the-scenes persua-
sion or politicking. Board members might also take this time to smooth over
any controversies raised during the debate.
•• Most difficult item, continued (20 minutes). After the break, the discussion of
the most difficult item is continued. Important points can be repeated and
written down. If the board’s goal is to make a decision, the facilitator can call
for a vote after this discussion period.
•• Discussion-only items (30 to 40 minutes). This is the time to introduce new
topics or present committee and other reports. Placing committee reports near
the end of the meeting, when people are getting eager to wrap things up, can
help keep the reports short.
•• Least difficult items (10 minutes). These items are ones that can be quickly
voted on. Putting least difficult items at the end of the meeting can leave
board members with the feeling that they can decide things efficiently and
quickly. It ends the board meeting on a high note.
Many general managers feel strongly that a board meeting’s agenda should
be mailed out to board members before the meeting. This gives board members a
chance to review the agenda and do any research they feel is necessary. Mailing
the agenda out ahead of time can save a lot of meeting time when the board gets
together. Clubs that follow this practice have discovered that their boards act more
quickly and table fewer issues because board members arrive informed and ready
to tackle the challenges they face.
The General Manager

A club’s board governs the club, establishing policy; the club’s general manager
manages it.
60 Chapter 2
Historically, most major management functions of a club were handled
by committees who hired secretaries, stewards, or caretakers. These positions
evolved into the first club manager positions. In most of these positions, the first
managers had responsibility for only the clubhouse and food and beverage opera-
tions. Often the golf professional and perhaps even the golf course superintendent
had as much or more administrative responsibility as the manager. All three of
these positions (manager, golf professional, and golf course superintendent) each
reported to the board of directors of the club or perhaps to individual committees.
No one position had responsibility for overseeing all management responsibilities
of the club operation. Conflict often developed and no clear lines of authority and
responsibility existed.
Then in 1927, the Club Managers Association of America was formed by
club personnel who wanted information, education, resources, and a professional
network. At the time, training for club general managers was limited to a few hotel
and food and beverage programs. CMAA developed a professional development
program to help managers become the leader of the entire club operation.
In today’s club world, it usually takes formal education and some practical
experience to attain even an entry-level management position. Today, one of the
first steps to becoming a club general manager is to get a degree at an accredited
school with a hospitality curriculum; some colleges offer specialized training in
club management. Many club general managers began getting practical club expe-
rience while still in college—often as dishwashers, cooks, or food servers. From
these line-level positions, club management students can be promoted into super-
visory positions, with promotions to assistant manager positions possible after
graduation.
Club management is a service profession. To excel, a club general manager
must genuinely like people and enjoy serving others. Other characteristics of a
successful general manager include integrity, creativity, and dedication. He or she
must possess social and leadership skills, be a good communicator and adminis-
trator, and be able to communicate a club’s vision.
Starting a New Job

The first six months on the job are critical to a general manager’s success. This
period is the general manager’s “honeymoon” with the club’s board, and is also the
time during which the general manager establishes relationships with the club’s
department managers, club professionals, and employees. Exhibit 9 is a checklist
of things a club general manager can do to get off to a good start at a club.
It’s important for a new general manager to establish his or her credibility as
soon as possible. For the first three months, it may be a good idea for the general
manager to be the first to arrive at the club and the last to leave. Successful general
managers say this is important because it shows the club’s staff members that you
care as much as they do.
Unless they encounter a drastic situation, new general managers should not
rush to make changes. New managers usually will quickly see things that they
want to change, but it is wise to go slowly at first. Changes made too fast, or sim-
ply for the sake of change, can upset the routine and rhythm of a club.
Chapter 2
70
Exhibit 9
8 Getting Started at a Club
The following list is certainly not exhaustive, but gives some examples of actions a
new general manager can take to get off to a good start at a club:
• Get to know your staff members as quickly as possible. It might be a good idea
to have a private “get acquainted” meeting with each staff member.
• Be visible. Circulate through the club each day for at least an hour, chatting in-
formally with club members and staff members.
• Hold well-organized weekly staff meetings.
• Communicate with your board. A weekly written status report might be a good idea.
• Inspect the club each day.
• Familiarize yourself with upcoming club events.
• Learn about the club’s traditions.
• Don’t rush to implement change.
Source: Adaptedfrom
Source: Adapted from�A“A Manager’s
Manager’s Staying
Staying Power,”
Power," Executive
Executive CareerCareer
ServicesServices
Kit: For Kit: For Mem-
Member Use in
ber Use in
Selecting Selecting
a Club a Club Virginia:
(Alexandria, (Alexandria, Virginia: Association
Club Managers Club Managers Association of America).
of America).
experience to attain even an entry−level management position. Today, one of the first
stepsSome club general
to becoming a clubmanagers recommend
general manager thata degree
is to get new general managers school
at an accredited write
weekly status reports
with a hospitality and fax them
curriculum; someto their board
colleges offer members.
specializedThey also in
training suggest that
club man−
new general
agement. Manymanagers
club generalvisit managers
with board members
began gettingindividually
practical club toexperience
get their input.
while
Establishing good lines
still in college�often asofdishwashers,
communication cooks, withor the
food board is a From
servers. top priority and will
these line−level
help keep club
positions, transition problems
management to a minimum.
students It is also important
can be promoted for new
into supervisory general
positions,
managers to find to
with promotions out if there manager
assistant are any groups
positions of unhappy
possible after members at the club. Dif-
graduation.
ficultClub
situations can often
management is be defusedprofession.
a service if the general manager
To excel, a clubtalks to members
general manager of
these unhappy groups
must genuinely like peopleto uncover
and enjoythe serving
source of their Other
others. discontent.
characteristics of a suc−
Club
cessful tradition
general manageris important to many creativity,
include integrity, club members, even though
and dedication. He orsome
she
traditions may seem unimportant or even comical
must possess social and leadership skills, be a good communicator and adminis− to outsiders. For example,
one private
trator, and beclub ablehas a rule that states
to communicate a club’s that the club will serve vegetable soup
vision.
every Wednesday and, according to the general manager, “there’s never been a
Wednesday
Starting ainNew the pastJob120 years that the club has not served vegetable soup.”
Members usually feel a sense of ownership in their club and the history and tra-
ditions
The firstthatsix they
months have onhelped
the job build and sustain.
are critical to a generalThat’s why a new
manager’s general
success. man-
This pe−
ager
riod iswill
thenot makemanager’s
general friends (or�honeymoon"
keep a job long) with if the
he or she comes
club’s board, in, anddenounces
is also the
the
timeclub’s
during traditions
which the as general
silly or manager
impractical, and proceeds
establishes to “update”
relationships with the them or
club’s
eliminate
department them entirely.club professionals, and employees. Exhibit 8 is a checklist
managers,
Because
of things a clubtraditions
general are rarelycan
manager written
do to down,
get off to it can
a good be difficult
start at afor a general
club.
manager to know when
It’s important for a henew or general
she is treading
manager ontosacred ground.
establish his orNewher general man-
credibility as
agers
soon as should takeFor
possible. the the
timefirst
to talk
threeto months,
staff members,
it may board
be a good members,
idea for andtheothers to
general
find out what
manager to bethetheclub’s
first to traditions
arrive at are. It’s also
the club anda the
good idea
last for new
to leave. general manag-
Successful general
ers to writesay
managers thethis
traditions down;because
is important this will it give
shows thethemanagers
club’s staff something
members tothat
referyou
to
until they’ve learned
care as much as they do. the traditions.
If a clubthey
Unless tradition has a anegative
encounter effect on the
drastic situation, newclub, the general
general managers manager
shouldmaynot
eventually
rush to make changes. New managers usually will quickly see things is
be able to propose starting a new tradition to replace it. This often
that theya
more effective strategy than trying to simply eliminate the tradition.
62 Chapter 2
Chief Operating Officer Model
As the club general manager made professional strides over the years, CMAA pro-
moted the GM/COO concept. The general manager/chief operating officer is held
accountable for all areas of the club and ensures the synergism of all club activities.
This person becomes the board’s bridge to the staff and committees and enables
a board to avoid the operational intricacies and short-term focus that is the staff’s
responsibility.
Historically, managers needed to possess the characteristics of:
•• Honesty.
•• Integrity.
•• Accountability.
•• Leadership.
•• Dedication.
They had to be able to demonstrate interpersonal relations skills, be a good com-
municator, be administratively competent, and be able to communicate the club’s
vision.
As clubs became more diverse in the services offered to their memberships,
club managers developed the leadership and technical skills to lead the club oper-
ation. CMAA geared its lifetime professional development program to providing
these skills and equipped the manager to indeed become the GM/COO. CMAA
developed the following competency areas:
•• Club governance
•• Food and beverage management
•• Accounting and financial management
•• Human and professional resources
•• Leadership
•• Membership marketing
•• Golf, sports, and recreation management
•• External and governmental influences
•• Facilities management
•• Interpersonal Skills
Club members began to accept the GM/COO position, recognizing the need for
one competent person to be in charge of the multi-million dollar businesses that
clubs had become.
Management to Leadership Model

Today, the GM/COO role has expanded beyond club operations. Two equally
important areas are asset management and club culture.
A true leader takes stewardship or responsibility in all three of these areas.
An evolved concept of the GM/COO has become the management to leadership
model. Exhibit 10 shows what this model looks like. CMAA developed this model
to address the changing role of managers. Under this model, the ten GM/COO
competencies are listed as the foundational operations part of the pyramid. In the
second tier, managers must master asset management competencies such as:
•• Managing the financial well-being of the club.
•• Managing the physical property of the club.
•• Managing the human resource needs of the club.
•• Maintaining a comprehensive portfolio of club assets, both tangible and
intangible.
•• Managing cash flow.
•• Overseeing and planning facility renovations and new construction.
•• Directing sports and recreational properties and facilities such as the golf
course, tennis facilities, pools, fitness facilities, and spa operations.
When it comes to the top of the pyramid, managing the club’s culture, the
GM/COO is responsible for maintaining the club’s:
•• Vision.
•• History.
•• Traditions.
•• Governance structure.
These responsibilities evolve the GM/COO into a chief cultural officer who is
responsible for the traditions, customs, and practices of the club. This new type of
club general manager is intimately familiar with what makes the club unique and
how he or she can preserve the intangible quality of culture.
While CMAA is the organization that introduced the concept, it is the GMs/
COOs who advance it. They practice professional development by developing
competency in operational areas, asset management, and cultural aspects of the
club. They proactively promote the GM/COO concept to board and staff, and they
live the concept in their day-to-day management.
Working with the Board

There are many groups and individuals at a club with which the club general man-
ager must work—club professionals, department managers, and club committee
members are some obvious examples. But, above all, a club general manager must
work harmoniously with the club’s board of directors. A club’s board provides the
strategic direction for the club that the general manager must carry out. The board
is also responsible for hiring and firing the general manager and providing him or
her with regular performance evaluations. Because a general manager reports to
the board, his or her relationship with the board is extremely important.
64 Chapter 2
Exhibit 10 Management to Leadership Model
Leadership
Culture
•• Vision
•• History
•• Tradition
•• Governance
Asset Management
Financial Physical Human

Management Plant Resources
Operations
Accounting & Financial
Membership Marketing
Human & Professional
Food & Beverage
Governmental
Golf, Sports &
Management
Management
Management
Management
Interpersonal
Governance
Leadership
Recreation
Resources
External &
Influences
Facilities
Skills
Club
Management
One of the most delicate issues club general managers face in working with
boards is keeping board members from overstepping their roles and trying to
actually manage the club. How can a general manager discreetly encourage his or
her board to stick to governing the club and not interfere with daily operational
decisions? According to Richard Chait’s How to Help Your Board Govern More and
Manage Less, there are several things a club general manager can do. The general
manager can:
•• Structure written materials for the board, such as club status reports and
board meeting agendas, to direct the attention of board members to issues of
policy and strategy.
Roles of the Board and the General Manager in a Club

According to Dick Kopplin of KOPPLIN & KUEBLER, an executive placement firm for
the private club industry, it is very important that the role of both the board and the
general manager be clearly defined in the various activities and decisions made in
regard to club governance and club management. Clearly defined roles help prevent
micro-management by the board and give the general manager clearly defined areas
of responsibility. The chart below provides five examples of who is responsible for
various activities and decisions in a club:
Activity/Decision Board General Manager
Budget Approves Recommends and provides input
Capital purchases Approves Prepares requests
Personnel policies Adopts Recommends and administers
Staff evaluations Evaluates only GM Evaluates all others
Day-to-day operations No role Makes all management decisions
•• Equip board members with the capacity to monitor the club’s performance
and progress.
•• Create clear expectations for the board.6
Other Tips for Long-Term Success

There are no rules club general managers can follow that will guarantee that
they will keep their jobs or be happy managing their clubs. But there are a few
principles veteran general managers cite that might help a club general manager
achieve long-term success with a club:
•• Be yourself when interviewing. The best thing a general manager can do dur-
ing the hiring process is to let the board know exactly who he or she is so that
there is a better chance that the right match between club manager and club
will be made.
•• Ask for an employment contract. A general manager should have an employ-
ment contract, or at least a letter of agreement, from the club’s board. It is
always wise to have employment terms and conditions in writing, especially
if the club’s board changes annually. The general manager should make sure
this document is updated and signed each time he or she goes through a ben-
efit or compensation review.
•• Work with the club’s committees. Club committees are resources that general
managers should tap into. General managers should make an effort to know
what’s going on with the club’s committees and attend as many of their meet-
ings as possible. A general manager who works closely with club committees
often has greater membership support.
•• Continue your education. It becomes more important every year for club gen-
eral managers to continue their educations. Some general managers are able
to put aside funds in the club’s annual budget for professional development.
66 Chapter 2
Educational opportunities give general managers a chance to pick up money-
saving ideas and other ways to improve their clubs.
•• Communicate, communicate, communicate. Communication is a general man-
ager’s lifeline. He or she must keep in touch with the membership. General
managers should listen to the vocal minority, but not forget to communicate
with the silent majority. A great way to keep in touch is by writing a monthly
article in the club newsletter. Also, the general manager must communicate
with the board about everything going on at the club. The general manager
should never spring any last-minute surprises on the board.
•• Don’t forget the basics. Do communicate. Do be visible to the membership.
Do dress the part. Do continue to improve the club for the members, making
sure that you know what they really want. Do continue your education—keep
moving ahead in your career.
•• Don’t use the club. This may sound surprising, but many experienced club
general managers maintain that a general manager shouldn’t use his or her
club—ever.7 General managers who frequently play on their club’s golf course
or use other club facilities may regret it because, inevitably, at least a few of
the club’s members will frown on it, or make remarks such as the following:
“Gee, I couldn’t get a tee time this morning, but I noticed the club manager
didn’t have any trouble getting on the course.” The key to success in using
club facilities is for the manager to always use club facilities with discretion.
Professional Development
Because of the constantly changing nature of the club industry, a club general
manager’s education should be ongoing. Fortunately, there are many professional
development opportunities available.
Club Managers Association of America. The Club Managers Association of
America (CMAA) is a major source of professional development opportunities for
club managers.8 CMAA offers a variety of educational programs designed for club
managers at all career levels, including:
•• Business Management Institute.
•• World Conference on Club Management.
•• Leadership/Legislative Conference.
•• Chapter education.
•• Assistant Manager’s Conference
Business Management Institute. CMAA’s Business Management Institute
(BMI) is a series of intensive university-based one-week courses ranging from the
first level, designed for the entry-level club manager, through the fourth and fifth
levels, designed for advanced senior-level managers. These competency-based
courses are offered at major U.S. hospitality schools and are taught by university
faculty and industry professionals. The five core BMI programs are:
General Manager Performance Evaluation Process

Crystal Thomas, MCM Monograph
Most club managers are passionate about their work. So why is it not uncommon to
hear of managers who were surprised by terminations as they thought their perfor-
mance was meeting or exceeding expectations? Why is there managerial turnover—
especially when managers are often excellent communicators—due to poor commu-
nication with the board and misunderstanding of how their or the club’s performance
is being measured?
Crystal Thomas’s Master Club Manager monograph examined the performance
evaluation process to discover relationships between performance evaluations and
managerial longevity, performance evaluations and club progress, and performance
evaluations and managerial compensation.
Placing importance on the performance evaluation and its processes can help move
the private club industry forward. The results of the monograph study indicate that
appropriate use of performance evaluations and a well-defined performance evalua-
tion process reap major benefits for all involved. The major rewards include: increas-
ing the longevity of a club manager’s tenure; creating a positive effect on the club
through well-defined, communicated, and measurable goals; and providing a quantifi-
able means by which bonuses, and possibly salary, can be measured, ultimately
increasing the compensation of the general manager.
Data shows that the average tenure of a club manager is only 2.5 years (Club
Manager Review, 2001). Although causes of employee turnover have been studied
in the club industry, we know very little about the causes of managerial turnover in
clubs. One can only speculate about the number of moves made to better positions,
the number of moves within the area of employment, or the number that represent a
significant geographic move. However, the average tenure indicates that there is not
much occupational stability for the individual, and some of this instability can easily
negatively affect a manager and his or her family.
Knowing the dedication and passion with which most club managers approach their
positions, there seems to be a disconnect between the desire managers have to
perform well and their perceptions that they are performing well, and the perceptions of
the board of directors. Ideally, the performance review process should be providing an
avenue for communication between managers and boards on managerial performance.
Mr. James Singerling, CCM, CEC, and chief executive officer of the Club Managers
Association of America, believes the statistics are changing. He says “the perception
of club managers as COOs and the acceptance by members and boards that clubs
are businesses with myriad issues that need a professional have led to the increase
in tenure of senior management at clubs. The two- to three-year statistic is a holdover
from many years ago when GMs were more disposable and had far less training.
Today, they are so well-trained and versatile and not nearly as disposable as they
once were.” (Bridget Gorman Wendling, personal communication, September 18,
2003.) Several of the statistics in CMAA’s 2003 Compensation and Benefits Survey
reference the average respondent being with their club for almost seven years, and
having held their current job titles for more than five years. (2003 Compensation and
Benefits Survey.)
(continued)
68 Chapter 2
Manager turnover is not inherently a bad thing, and, as cited above, the reasons
managers leave clubs are numerous, varied, and mostly unknown. Some managers
may be in junior positions and making progressive moves to further their careers.
Others may just not be suited to a particular club and move into something else that
becomes a win-win for them and their club.
In this industry, and virtually all industries that work with volunteer boards, there are
challenges inherent to the relationship between managers and their boards. The
rapid turnover of board membership and the inconsistency in board members’ under-
standing of club operations contributes to the problems of establishing stability within
club operations. One of the responses to these challenges is the use of a formal
performance evaluation process for club managers.
A structured performance evaluation process can ease the transition for a manager
through changes in the board of directors, as it can provide continuity and estab-
lished guidelines in the midst of change. Club managers will always be faced with
challenges that develop from board politics and the need to work with board mem-
bers who possess inconsistent levels of commitment and knowledge of club opera-
tions. However, there are various ways to assess how a club manager is doing, the
most objective of these being a formal performance evaluation, a method that leaves
a permanent record in the manager’s employment file.
In Thomas’s study, she found that most clubs had a performance evaluation process.
The most common type of performance evaluation cited was the top-down perfor-
mance evaluation. However, the respondents that have a 360-degree performance
evaluation reported the highest level of satisfaction with their type of evaluation.
Although the biggest group of general managers (41%) did have some level of input
into their performance evaluation, there were 6% that had no input whatsoever. Some
of the respondents (30%) reported having an ad hoc discussion of their performance
at their review, and 27% of the managers said that they would like a different style of
performance evaluation.
The vast majority, 94%, of respondents stated that they were allowed to pro-
vide feedback at the end of the evaluation process. Most of the managers, 91%,
responded that they considered the performance evaluation system being used to be
fair. Furthermore, 84% of the respondents reported that they were satisfied with the
performance evaluation system used. Finally, 85% of the respondents said their per-
formance evaluation is based upon a combination of subjective and objective criteria.
The study also indicated that the lack of an adequate performance evaluation is more
likely to lead to managerial turnover.
Half of the respondents agreed that an excellent performance evaluation motivates
a general manager to stay at the club. There is a 56% level of loyalty of managers to
their club in terms of managers stating that they would not look for other jobs just for
receiving a poor performance evaluation. The majority of general managers would
not leave their position after receiving a poor performance evaluation nor would their
loyalty diminish if they received a poor performance evaluation. In fact, 68% agreed
that a poor performance evaluation motivates them to improve in those stated areas.
The data also supported the hypothesis that performance evaluation is positively
related with a manager’s compensation. Of those who earn less than $100,000, 47%
have a performance evaluation process, and 71% do not receive performance evalu-
ations. Of those earning more than $100,000, 53% have a performance evaluation
process, while only 29% do not.
The majority (69%) of the respondents reported that managerial bonuses are paid
only if earned, and are not arbitrary in design. The higher paid the general manager
is, the higher the bonus percentage. For general managers making $140,0000 and
over, 28% of them receive a bonus of 20% to 24%, whereas of those making less
than $80,000, only 7% receive a bonus of 20 to 24%. Conversely, for those mak-
ing $140,000 and over, 12% receive a bonus of less than 10% of their base salary,
compared to those making less than $80,000, of which 63% have a bonus of less
than 10%.
Type of Performance Evaluation
Frequency Percent Valid Cumulative

Percent Percent
Valid 360-degree 10 6.0 8.0 8.0
Top-down 95 56.9 76.0 84.0
Peer-to-peer 2 1.2 1.6 85.6
Subordinate 1 .6 .8 86.4
Self-assessment 3 1.8 2.4 88.8
Other 14 8.4 11.2 100.0
Total 125 74.9 100.0
Missing No answer 42 25.1
Total 167 100.0
Correlation Between Overall Performance Evaluation and Salary
Frequency Percent Valid Cumulative

Percent Percent
Valid Strongly agree 33 19.8 21.7 21.7
Agree 72 43.1 47.4 69.1
Disagree 36 21.6 23.7 92.8
Strongly disagree 11 6.6 7.2 100.0
Total 152 91.0 100.0
Missing No answer 6 3.6
Not applicable 9 5.4
Total 15 9.0
Total 167 100.0
Source: Crystal Thomas, MCM, Master Club Manager Monograph.

70 Chapter 2
•• BMI I: The Basic Club Management School
•• BMI II: The Leadership Edge
•• BMI III: The Chief Operating Officer Concept
•• BMI IV: Tactical Leadership
•• BMI V: Strategic Leadership
Elective courses in the BMI program include one-week programs in the fol-
lowing areas:
•• BMI Certification Review Course
•• BMI Food and Beverage Management
•• BMI Golf Management
•• BMI Food and Wine Experience
•• BMI International: Traditions, Innovations, and Future Trends
•• BMI Distance Learning Course—Organizational Behavior: Team Processes in
Private Clubs
World Conference on Club Management. Held in a major U.S. city each year,
CMAA’s World Conference on Club Management serves as the centerpiece of the
association’s annual functions. Educational opportunities abound at this confer-
ence, including approximately 100 educational programs on club management
that range from ninety-minute sessions to full-day pre- and post-conference work-
shops. The ninety-minute sessions allow club managers to receive updates on such
topics as government regulatory issues and environmental concerns. The work-
shops provide an in-depth look at topics ranging from golf course management
for club managers to technology and computer applications in private clubs. Day-
long case studies provide participants with an opportunity to analyze real club
problems and come up with creative solutions. In addition, the World Conference
hosts the club industry’s largest exposition of products and services and an Idea
Fair of creative club programs.
Leadership/Legislative Conference. CMAA’s Leadership/Legislative Con-
ference is designed for CMAA chapter leaders, offering extensive information on
leadership techniques for use in chapter management as well as information on
legislative issues affecting the club industry.
Chapter education. A variety of educational programs are offered on a
monthly or quarterly basis by the more than fifty CMAA chapters located through-
out the United States and around the world.
Assistant Managers’ Conference. An established chapter endeavor is the
Assistant Managers’ Conference. Sponsored by a different CMAA chapter each
year, it consistently receives excellent evaluations and has proven to be an effective
program for assistant managers.
Manager in Development (MID). The Manager in Development Program is
a unique opportunity to experience the value of organized mentoring. It is a
hands-on, modular-style, workbook/CD series designed for assistant managers,
departmental supervisors, and club interns to complete as they conduct regularly
assigned club duties.
MID participants learn about all functional areas within a club, prepare them-
selves for career advancement, attain a challenging and measurable benchmark
in club management, and develop a relationship with a club manager as a men-
tor. This program is a gateway to the club management profession and provides
opportunities for personal and professional growth.
Other Associations. Educational opportunities for club general managers are also
available from a number of other associations that serve the club and hospitality
industries. The American Hotel & Lodging Educational Institute has a wide range
of textbooks, seminars, and certifications that are of value to club managers.9 The
Educational Foundation of the National Restaurant Association offers educational
seminars and workshops dealing with food and beverage operations.10 The Ameri-
can Management Association is an excellent source of materials on management
and offers hundreds of courses and seminars in such general management cat-
egories as purchasing, research and development, human resources, technology,
and finance and accounting.11 The mission of the National Club Association is to
“defend, protect, and advance the interests and well-being of private, social, and
recreational clubs.” NCA actively lobbies the U.S. Congress, focusing on the needs
of the private club industry. It also provides legal, legislative, and regulatory infor-
mation as well as trends, human resource, operations, governance, and planning
information for the club industry.
Endnotes
1. Much of the information in this chapter was adapted from Bridgette M. Redman, Topi-
cal Reference Series: White Papers on Club Management, Issues 1–6 (Lansing, Mich.: Ameri-
can Hotel & Lodging Educational Institute, 1997). Copies of this book can be obtained
by contacting the Club Managers Association of America, 1733 King Street, Alexan-
dria, VA 22314; tel. (703) 739-9500.
2. Gerald F. Hurley, The Private Club Leadership Guide (Washington, D.C.: National Club
Association, 1991), p. 7.
3. Cyril O. Houle, Governing Boards (San Francisco, Calif.: Jossey-Bass Publishers, 1990),
p. 72.
4. Edward A. Merritt, “Hospitality Management: A Study of Burnout in Private Club
Management” (master’s thesis, Pepperdine University, Malibu, Calif., 1995), Appendix
C, p. 10.
5. Ralph F. Lewis, “The Art of Choosing Board Members,” in The Corporate Director: New
Roles, New Responsibilities (Boston, Mass.: Cahners Books, 1975).
6. Richard P. Chait, How to Help Your Board Govern More and Manage Less (Washington,
D.C.: National Center for Nonprofit Boards, 1993).
7. George P. Carroll, “Here Today, Here Tomorrow: Improving a Manager’s Staying
Power,” Club Management, June 1990.
8. For more information about the Club Managers Association of America’s programs for
club managers, call (703) 739-9500; or write CMAA, 1733 King Street, Alexandria, VA
72 Chapter 2
22314; or fax (703) 739-0124; or contact CMAA via the Internet at www.cmaa.org; or
e-mail them at cmaa@cmaa.org.
9. Information on services and products provided by the American Hotel & Lodging
Educational Institute can be obtained by calling (800) 752-4567; or writing the Edu-
cational Institute, 2113 North High Street, Lansing, MI 48906; or using EI’s Internet
address: www.ahlei.org.
10. Information on courses as well as other professional services offered by the Educa-
tional Foundation of the National Restaurant Association can be obtained by call-
ing (800) 765-2122; or writing the Educational Foundation, 250 S. Wacker Dr., No.
1400, Chicago, IL 60606; or using EF’s Internet address: www.restaurant.org/educate/
educate.htm.
11. A complete description of the American Management Association’s courses can be
obtained by writing the association at 1601 Broadway, New York, NY 10019-7420; or
calling (800) 225-3215; or e-mailing at cust_serv@amanet.org.
Key Terms
articles of incorporation—The document that establishes a club’s legal existence.
Also called a constitution.
board of directors—An equity club’s governing body, made up of club members
elected by club members.
bylaws—Rules adopted by a club to govern the club.
general manager—A club’s chief operating officer, in charge of all club staff mem-
bers and operations; he or she reports to the club’s board of directors and carries
out club policies set by the board.
meeting agenda—A tool used to help make meetings more effective; it lists all top-
ics to be covered in a meeting.
minutes—A document recording what takes place at a board or committee meeting.
Review Questions
1. What are some problems that might occur if a club’s board of directors is too
big? too small?
2. What are some of the advantages a club enjoys by having long terms of ser-
vice for board members?
3. Why is it a good idea to give new board members an orientation to their new
roles as board members?
4. What are some topics typically covered by a club’s bylaws?
5. Why is it important for a board meeting to have a written agenda?
6. What are some ways a new general manager can get started on the right foot
with his or her club?
7. How can a club general manager discreetly encourage his or her board to
govern the club, not try to manage it?
8. What are some of the professional development opportunities available to
club general managers?
Additional Reading
Carroll, George P. “Here Today, Here Tomorrow: Improving a Manager’s Staying
Power.” Club Management, June 1990.
Chait, Richard P. How to Help Your Board Govern More and Manage Less. Washing-
ton, D.C.: National Center for Nonprofit Boards, 1993.
Henderson, Edward. “Lions Among Us,” in Master Club Manager Monographs,Vol-
ume 1, Numbers 1–6. Alexandria, Virginia: Club Managers Association of
America, 1995.
Houle, Cyril O. Governing Boards. San Francisco, Calif.: Jossey-Bass Publishers,
1990.
Hurley, Gerald F. The Private Club Leadership Guide. Washington, D.C.: National
Club Association, 1991.
Lewis, Ralph F. “The Art of Choosing Board Members,” in The Corporate Director:
New Roles, New Responsibilities. Boston, Mass.: Cahners Books, 1975.
Merritt, Edward A. “Hospitality Management: A Study of Burnout in Private Club
Management.” Master’s thesis, Pepperdine University, Malibu, Calif., 1995.
Internet Sites
American Hotel & Lodging National Club Association
Educational Institute www.nationalclub.org
www.ahlei.org
National Restaurant Association
American Management Association www.restaurant.org
www.amanet.org
www.cmaa.org
Case Studies
Case Study 1
Chris Miller is the new general manager of the Mountainview Country Club, a
1,000-member club just ten years old. The club’s board fired the previous general
74 Chapter 2
manager because it was unhappy with the way the club was run. When Chris
interviewed for the job, several board members mentioned that club operations
seemed “chaotic” and that the club was bogged down with one problem after
another. They wanted Chris to “turn things around.” Despite some misgivings
(Chris knew that he would be the club’s fourth general manager in ten years),
Chris took the position because he felt the club’s potential was worth the risk.
It didn’t take Chris long to realize that one of the biggest problems with the
club was the board itself. At Chris’s first monthly board meeting, he had been
surprised at how Ted Fisher, the board’s president, ran things. First, there was
a generic agenda that consisted of an extremely simple outline: “Call meeting
to order; Read previous minutes; Finance committee reports; House commit-
tee reports; Greens committee reports”; and so on. There were three new board
members at the meeting, but they were not formally welcomed and they obvi-
ously had not been given any orientation because they looked lost throughout
the meeting. The meeting itself wandered from subject to subject and took three
hours to accomplish almost nothing. It was obvious that many of the committee
chairs had nothing to report, but felt obligated to say something anyway. After
the meeting, Chris had asked President Fisher about the generic agenda. “We
always go in the same order,” Fisher said, “so that’s all we really need.” What
about the new board members—had they been given any orientation? “We’ve
never bothered with that,” Fisher replied. “What is there to learn, really? They’ve
been members for years.”
After that first board meeting, Chris had asked his assistant manager, Linda,
for some background information about the board and how it operated. Unfor-
tunately, his worst suspicions were confirmed. Some of the board members are
retired, Linda said, and have a lot of time on their hands, so they want to micro-
manage everything. On the other hand, many of the board members are very busy
executives and they present an opposite problem: they are so pressed for time they
hardly give the matters that come before the board any attention. Julia, the club’s
only female board member, had promised her friends that if she was elected to the
board she would do something about the men-only Saturday-morning tee times.
Her proposal to open the Saturday-morning tee times to women was defeated
early in her term and she’d had a poor attitude ever since; she took scant interest
in other club business and appeared to be just going through the motions until her
term ended. Other board members, too, tended to focus on their pet projects to the
exclusion of everything else.
Chris also learned that board members had a history of abusing their power in
matters both large and small—not because they were deliberately trying to disrupt
the club, but because they didn’t know any better. Many board members habitu-
ally gave direct orders to club employees, for example. This bad habit had gotten
started after the first general manager left the club and the club struggled without
one for six months. Apparently the members didn’t realize the havoc they caused
when they contradicted a club manager’s directives, or asked valets on duty to
take them to the airport, or told a banquet server to drop what he was doing and
drive by their house to pick up the wedding gift they forgot.
Some board members asked to be seated in the main dining room during busy
periods without making reservations. Last year the club’s dining room manager
quit because she received a tongue-lashing and then a very harsh letter of repri-
mand from a board member. Her crime? She had refused to seat his party because
some of his guests were wearing blue jeans and the club has a firm policy against
blue jeans in the main dining room.
One of the board members tends to drink a little too much, Linda went on,
and sometimes discusses with club bartenders things like the previous general
manager’s bonus plan and why the club fired its last golf pro. Around Christ-
mastime an outbreak of food poisoning had occurred at the club, and a board
member thought it would be helpful if he went to the media and explained the
situation. Without the board’s or anyone else’s knowledge, he went to the local
newspaper and told such a confused and contradictory tale that the newspaper
launched a full-blown investigation and turned an unfortunate but minor inci-
dent into a front-page story. And last but not least, the board’s vice president had
almost gotten the club involved in a lawsuit because he repeatedly made inappro-
priate advances toward one of the club’s female servers. Because this was another
period when the club was between general managers, the server went directly to
the board with her complaints, but the board ignored the problem. Soon afterward
the server graduated from college and landed another job, and it looked like she
would not be pressing charges, but one never knew if the problem would reoccur
more seriously.
All in all, it was a picture of an undisciplined board that was doing more harm
than good to the club. Chris knew that if he was going to make positive changes
at the club, he would have to start with the board, and he had his work cut out for
him. Chris also knew from working at other clubs that timing was a critical factor.
Since he had just been hired, he had the board’s attention and a brief window of
opportunity in which to address the issues that needed immediate action.
1. What challenges does Chris face with the club’s board?
2. Which of these challenges should Chris address immediately (Priority A chal-
lenges), and which are not so critical and can be addressed over time (Priority
B challenges)?
3. How should Chris address the immediate, Priority A challenges?
4. What can Chris do immediately to encourage the board president to run more
effective meetings?
5. How can Chris help the board president see the need for an orientation pro-
gram for new board members?
6. What elements should a new-board-member orientation program contain?
The following industry experts helped generate and develop this case: Cathy Gus-
tafson, CCM, University of South Carolina, Columbia, South Carolina; Kurt D.
Kuebler, CCM, Vice President, General Manager, The Desert Highlands Associa-
tion, Scottdale, Arizona; and William A. Schulz, MCM, General Manager, Houston
Country Club, Houston, Texas.

76 Chapter 2
Case Study 2
Tom Frost has recently become the general manager of the Leisure Resort Club, a
private, residential golf course community at which the average age of members
is 65. Most of its members are retirees. Many members used to be CEOs or in the
upper management of large corporations. They previously led very hectic life-
styles and are now learning to unwind.
Tom used to be the general manager of the Vertigo Club, a large downtown
club. The average age of members there was 45—many members were hard-
working professionals. Board meetings for the club were typically held for no
more than an hour over breakfast one day a month. The president of the Vertigo
Club was known for his efficient meeting-time management with the board; he
would mail out agendas in advance that included time frames for each item, and
he knew how to diplomatically keep discussions on schedule.
In the course of his orientation, Tom learned from the Leisure Resort Club
president that monthly board meetings typically started at 3:00 p.m. and varied
in length. Sometimes they finished by the dinner hour, sometimes not. Tom has
met with each of the board members and he has been impressed with the warmth
and cooperative attitudes they exhibit. His understanding from the president is
that he is to conduct a review of club operations, so he reviews human resources
records and gathers reports from the accounting division, the food and beverage
outlets, the golf and greens operations—all the branches of the club’s operation.
He puts tremendous effort into reading minutes from previous board meetings,
internalizing the club’s goals and organizational structure, and reviewing, analyz-
ing, and reformatting reports. His goal is to give a “State of the Club” address at
the upcoming board meeting, which will be his first, and receive feedback on his
observations from board members.
The day arrives for Tom’s first board meeting. He learns at 10:00 a.m. that
there is a schedule conflict for the boardroom, so he has the board meeting moved
to the Smith Room, a private room off the main dining room. Tom has his staff
spread the word to the board members while he calls to inform the club presi-
dent. When Tom asks whether the board members will be badly distracted by the
unusual setting of the meeting, the president tells him not to worry about it. Tom
arrives at the Smith Room at 2:30 p.m. and arranges his presentation materials. Tom
hands the president a copy of the meeting agenda, complete with time frames for
each agenda item. The president comments, “Wow, we’ve never had anything this
detailed before. This should really help us stay focused.” Tom places copies of the
agenda and his report summaries at each place around the table. At 3:00, as mem-
bers start to arrive and look at the materials before them, Tom hears many com-
ments about how organized his handouts are and how helpful they are sure to be.
The president opens the meeting with a welcome to Tom. The board members
offer a hearty round of applause, and Tom beams, thinking to himself, “This bunch
of people makes it worth all the effort I put in last week.” The president continues
with his own report: “One of the most pressing issues we are facing here, Tom, is
the renovation of the main clubhouse. All of you know how it has been a mixed
blessing for us in the past months. I feel that it is important that Tom know the
depth of this board’s struggles and feelings over our extensive but necessary reno-
vation enterprise. Wouldn’t you say so, Bill?”
Bill jumps in. “You’re right, Reynold. Why just the other day a member came
to me and said she had seen what she feared was asbestos hanging down from a
section of ceiling...” As they talk, two servers come in, looking for a contact lens a
member might have lost in that room earlier.
Three hours later …

Tom has been taking notes from time to time, but has been getting more and more
anxious. The board has discussed the renovations, slow play on the golf course,
the renovations, their most recent golf games, the renovations, cigar smoking, the
renovations, soft spikes, and the renovations. Two board members spent part of
the time on their hands and knees, helping the servers look for the contact lens.
The president is just summing up the discussion on the renovations when a dining
room employee enters and whispers in Tom’s ear. As the president takes his seat,
Tom says, “I’m terribly sorry, everyone, but there’s another group scheduled to
meet here in fifteen minutes, so we need to wrap things up.”
Tom eagerly begins to cover agenda item 3 of 11, the general manager’s report.
He quickly outlines the results of his analysis. A board member interrupts and
says her copy of a particular page is too light to read. Two other members start
talking about how shameful it is that they are the most important decision-making
body in the organization and they can’t even have a meeting room for an adequate
period of time. The president steps in and says, “I think Tom has done an excellent
job at taking the pulse of our club, and I encourage all of you to take these report
summaries home and read them. It’s just about time to go. Tom, do you have any
more comments to share?”
Tom says, “I thank you in advance for the effort you will put into reading
these materials.”
Floyd, a committee chair whose report is always last on the agenda, asks
the president for a chance to speak. The president gives him the floor, and Floyd
begins: “Tom has obviously put a lot of work into these summaries. He will need
to hear our feedback and to begin to know what actions to take on his conclu-
sions. If we leave him to muddle through the next month, we’ll have only our-
selves to blame if he takes actions we don’t like. Let’s all be timely in reading these
reports and giving Tom our feedback.” The president agrees and hears a motion to
adjourn the meeting. After a quick vote, the board members file out. Bill finds the
contact lens on his seat cushion, and the board members nearby hail him as a hero.
By the time Tom has gathered his belongings and vacated the conference
room, the next group is almost ready to start their meeting. On the way out, Tom
sees a copy of his report on the bar counter. He grabs it and hopes the bartender
hasn’t read anything in it, especially the section about poor liquor control on the
part of the bar staff.
“What a disaster,” Tom thinks to himself as he shuffles back to his office. He
feels too exhausted to think, but he makes himself call the general manager of the
Schenkles Club, a sister club to the Vertigo Club. The manager listens carefully to
his story and then offers to give Tom some suggestions.
78 Chapter 2
1. What more does Tom need to know to conduct an effective board meeting?
What skills does he need to exercise and develop if future board meetings are
to be effective?
2. In terms of the setting, interaction with board members, and the agenda, what
went wrong at Tom’s first board meeting?
3. In terms of the setting, interaction with board members, and the agenda, what
should the Schenkles Club general manager suggest that Tom do differently
at the next board meeting?
The following industry experts helped generate and develop this case: Cathy
Gustafson, CCM, University of South Carolina, Columbia, South Carolina; Kurt D.
Kuebler, CCM, Vice President, General Manager, The Desert Highlands Associa-
tion, Scottdale, Arizona; and William A. Schulz, MCM, General Manager, Houston
Country Club, Houston, Texas.
Background on Leadership 1. Discuss leadership frameworks and
Leadership Frameworks leadership theories. (pp. 81–92)
Leadership Theories 2. Explain elements of leadership, from
Armchair Theories power and leadership to leadership
Other Leadership Theories and skills. (pp. 92–100)
Models
Elements of Leadership 3. Describe motivational theories.
Power and Leadership (pp. 100–109)
Group Behavior 4. Explain how club managers can
Time Lag: A Leadership Variable effectively manage goals.
Philosophy and Style (pp. 109–111)
Evaluation
Leadership Skills 5. Discuss how service analysis can be
Motivational Theories an effective leadership tool.
Expectancy Theory (pp. 111–114)
Path-Goal Theory 6. Describe a construct for effective club
Maslow’s Hierarchy of Needs leadership that includes the following
Herzberg’s Two-Factor Theory elements: use objective measures,
Goal Management create and establish goals, report,
Setting and Achieving SMART Goals evaluate progress, and reward.
Checking a SMART Goal (pp. 114–120)
Reinforcing Goals
7. Explain how club managers can
Service Analysis as a Leadership Tool
wisely manage their time.
Service Operations Analysis
(pp. 120–126)
Service Management Assessment
Practical Considerations 8. Summarize personal leadership issues
A Construct for Effective Club Leadership for club managers. (pp. 126–135)
Use Objective Measures
Create and Establish Goals
Report
Evaluate Progress
Reward
Time Management
Improving Time Management Skills
Meetings
Paperwork
Personal Leadership
Primary Values
Primary Strengths
Primary Individuals and Experiences
Personal and Professional Goals and
Objectives
3
Leading Clubs Effectively
This chapter was written and contributed by Edward A. Merritt, Ph.D.,
The James A. Collins Distinguished Professor of Management,
Collins College of Hospitality Management, California State University
(Cal Poly Pomona), Pomona, California.
T his chapter offers a guide to the subject of leadership within the private club
environment. Leadership is an elusive concept. Often, we can sense when leader-
ship is present (or missing), but we find this presence (or lack thereof) difficult to
explain in precise terms. A variety of concepts have been used to define leadership.
For example, leadership can be defined as a means of:
•• Directing an individual’s or group’s activities toward goal achievement.
•• Combining common values and sharing a vision, both of which create an
environment others can support and work to improve.
•• Providing meaningful direction to a common effort.
•• Delegating, influencing, and motivating others to contribute to an organiza-
tion’s effectiveness.
The terms “management” and “leadership” are often used interchangeably.
This is particularly true in club management, because general managers in clubs
must possess both management and leadership qualities. However, managers are
not always good leaders, and leaders are not always good managers. Generally,
we view managers as individuals who strive for stable environments, orderly
methods, and efficiency. Meanwhile, we view leaders as flexible individuals who
encourage innovation and effectively adapt to changing or trying circumstances.
Another way to state the difference between managers and leaders is to say that
managers do things right, while leaders do the right things. Effective club lead-
ers can do the right things because they possess traits like relatively predictable
personalities, self confidence, emotional maturity, good social skills, a need for
achievement, and strong internalized values.
A “skill” is the ability to do something effectively. Skills can be broadly cat-
egorized as technical, interpersonal, or conceptual. Although effective club leaders
come from a variety of backgrounds and training, effective club managers find that
technical skills in food and beverage operations, as well as service management,
are perhaps the most valuable skills they can possess. In addition, effective gen-
eral managers must have interpersonal skills like the ability to understand mem-
bers’ feelings and attitudes, and the ability to establish positive and cooperative
81
82 Chapter 3
relationships with members. Finally, effective general managers must have a high
degree of conceptual skills related to creativity, problem-solving, and business
analysis.
This chapter presents several leadership theories and models to provide a
framework for leadership conceptualization. Because leadership is a social pro-
cess, it requires involvement with people. Therefore the chapter will explore topics
such as group behavior and theories for motivating people. Goal management,
time management, and personal leadership are also important topics that will be
covered.
Background on Leadership
Leadership is a difficult field to study because it involves many disciplines and
is a concept open to interpretation. As alluded to earlier, a host of definitions for
leadership have been offered, most of which include terms like:
•• Influence
•• Induce
•• Group
•• Goals
•• Behavior
•• Effectiveness
•• Environment
•• Leader personality traits
•• Leadership style
•• Follower maturity
•• Situation
The definition that best fits the manner in which this chapter discusses leadership
is the one proposed by leadership expert and author James Burns in his classic
book Leadership: “Leadership is the action of inducing or influencing followers to
accomplish certain goals that represent the values, wants, needs, aspirations, and
expectations of both leader and followers.”
Now that we have a working definition of leadership, the next logical step is
to explore leadership concepts. Most leadership concepts try to comprehensively
explain how and why some leaders perform more effectively than others; how-
ever, theory development in this area has not been entirely successful. Despite this
shortcoming, the next several sections present an overview of major leadership
theories and how they may be practically applied in the private club industry.
Leadership Frameworks
The manner in which one obtains a leadership position begins to build a leader-
ship framework. Such frameworks include follower expectations, skills required
of the leader, group maturity, and other circumstances. Because of the complexity
Leading Clubs Effectively 83
of these variables, some authors tend to oversimplify leadership. For example,
researchers often classify leadership into either an autocratic or a democratic
framework, or describe the leader as the one in control. These terms categorize
the leader and his or her followers. By framing leadership, a particular view
develops so that the relationship between leader and followers becomes clear.
Concepts and terms become descriptive devices to help develop an understand-
ing of leadership as a concept.
For example, one term often used to describe a club leader is “control.” It is a
common notion that the leader is the one in control of followers and the working
environment. To investigate this concept, it is important to provide an idea of the
meaning of the term “control” within a leadership context. One way to look at this
is to understand how a leader gains control. Does the method of gaining control
affect the leadership environment? What is control? How does control help influ-
ence a group? These questions must be addressed in order to understand how con-
trol affects the leadership environment. For example, the leader may gain control
as the result of tradition. If this is the case, followers will have little to say about
who has group control. Followers may accept the tradition without questioning
its authority.
Followers may blindly accept all consequences of leader actions without
questioning the circumstances. Under these circumstances, followers are subjects
under the leader’s control. Under the autocratic style of leadership, control may
mean that followers are coerced and the will of the leader is forced upon them.
At the other end of the spectrum, we have followers who elect their leader.
In the club environment, the followers (staff) may not technically elect their leader
(the club’s general manager or the staff members’ department manager or other
supervisor). However, in a healthy club the staff accepts, respects, and willingly
works with the leader and in that sense supports his or her success at the club and
“votes” for the leader. While this type of leader will also have control, it will be
of a much different nature than the control exerted by an autocratic leader. In this
more democratic case, followers authorize the leader, within certain parameters,
to control them. If followers no longer want to be controlled (i.e., no longer want
to follow the leader), they may change leaders by transferring to a different club
department or leaving the club entirely, or by trying to influence higher-level man-
agers and/or the club’s members to change their leader. It should be obvious from
this example that the control exercised by an autocratic leader and a democratic
leader is different.
The reason for showing how one variable, such as control, may be viewed
based on the leadership framework is to reveal how a wide variety of elements
affect leadership. The general environment becomes a mixed bag of factors that
affects how group members and leaders interact. Understanding how leaders and
followers interact is very important in understanding leadership. However, it is
apparent that creating an exhaustive review of all leadership elements and cause/
effect relationships cannot be done, because there are just too many. However,
the primary goal of this chapter remains one of identifying essential leadership
elements and investigating how they interact. The question becomes: Do essential
leadership elements exist which interact in certain ways to produce leader effectiveness?
If there is some consistency to how these elements interact to produce effective
84 Chapter 3
leadership, then we may be able to develop predictive models for effective leader-
ship behavior. The next few pages include some of the major theories and concepts
that have been used to explain leadership and isolate cause/effect relationships in
the leadership environment.
Leadership Theories
Leadership theories include armchair theories such as the great man theory, the
follower theory, and the genius theory, as well as other theories and models.
Armchair Theories
Armchair theories (also referred to as personalized theories) are those leadership
theories that are based on personal experience, conjecture, and personal feelings.
The great man theory might be referred to more appropriately as the great per-
son theory. The great person is viewed as one who is above the group, an almost
superhuman individual who can handle almost any situation for which the group
may need him or her. The great person possesses the attributes of a hero and these
heroic traits are the basis of group support. Great men and women have always
been considered highly influential individuals who, due to their personal cha-
risma, intelligence, wisdom, or willingness to sacrifice, make a great impact on
others. There have been many examples of such great persons in history: Winston
Churchill, John F. Kennedy, Martin Luther King Jr., Mother Teresa, Ronald Rea-
gan, Margaret Thatcher, Nelson Mandela, and Queen Elizabeth II are just a few
examples from relatively recent history.
The follower theory proposes that the way to become a leader is to be an effec-
tive follower. The smart follower becomes a leader because he or she has learned
through on-the-job training all the necessary skills to lead the group effectively.
This concept places primary importance on the experience of the leader and the
leader’s ability to relate to group members. This leader’s skills have been learned
through years of experience, and experience is the only manner in which he/she
can become qualified and accepted by the group. Examples of this model exist in
factories, in corporations that rely on corporate experience, and in work environ-
ments where skills must be handed from group member to group member.
Another armchair theory, the genius theory, promotes a person to a position of
leadership and separates the person from the rest of the group members because
of his/her innate talents and/or knowledge. This person is a leader by virtue of his/
her special talents. Einstein and Babe Ruth are two very different examples of the
special talents that exemplify this concept.
These concepts or theories present a line of reasoning that describes how lead-
ers obtain their position of leadership and why they are viewed with esteem, but
offers little to identify systematic interactions of leadership elements. There are
other concepts that could be classified in the category as Armchair, all having the
quality of personal perception based on experience. The value of these concepts is
that they do help explain elements of the leadership environment. The fallacy of
these concepts is that they fail to develop a sound basis for theory development
and consequently a body of reliable information to study the subject. Recently,
Exhibit 1 The Grid Model
Person-Oriented
0X- 1X- 2X- 3X- 4X- 5X- 6X- 7X- 8X- 9X-
9Y-
8Y-
7Y-
Systems-Oriented
6Y-
5Y-
4Y-
3Y-
2Y-
1Y-
0Y-
Person-Oriented. The X-axis moves horizontally from left (low) to right (high) from 0–9
Systems-Oriented. The Y-axis moves vertically from bottom (low) to top (high) from 0–9
however, there have been major improvements in developing a body of leadership

information.
Other Leadership Theories and Models

Other leadership theories and models include the grid model, the managerial grid,
the situational leadership theory, and the contingency theory.
The Grid Model. The grid model helps to determine a leader’s tendencies toward
a high concern for both people and production. The grid model was originally
conceptualized by a University of Ohio research team in the 1950s, using terms
to describe task-oriented and person-oriented behavior. At about the same time, a
group of researchers from Japan established a similar model describing an effective
leader as one who is high in both performance behavior and maintenance behav-
ior. They referred to their model as the PM Leadership Theory (for researchers
Peterson and Misumi). The grid model attempts to identify a leader’s behavioral
patterns on a coordinate plane, using two basic variables. These variables were
identified as systems-oriented behavior on the Y-axis, and person-oriented behav-
ior on the X-axis. Simply stated, the person-oriented behavior is action directed
toward satisfying the needs and preferences of individuals, and systems-oriented
behavior is behavior directed toward structuring the work environment to accom-
plish group goals. The coordinate plane and the variables are shown in Exhibit 1.
Another researcher described this systems-oriented versus person-oriented
leadership scheme as having six categories of behavior for each side of the model.
86 Chapter 3
On the systems-oriented side, we have the following six categories of leader

behavior:
1. Production emphasis—the leaders is concerned with increasing the production
of the group.
2. Initiating structure—this category deals with the establishment and clarifica-
tion of rules and policies to govern group actions.
3. Role assumption—this has to do with the leader’s active exercise of his or her
leadership position.
4. Representation—in this category, the leader acts as the group’s spokesperson,
furthering the group’s interaction with higher authority.
5. Persuasiveness—refers to the leader having firm convictions and the ability to
convince others of his or her point of view.
6. Superior orientation—this category covers leader actions that serve to main-
tain the group and actions that maintain or increase the leader’s position
within the group.
These six categories provide a comprehensive view of the Y-axis variables on the
grid.
On the person-oriented behavior side are the following six categories of leader
behavior:
1. Tolerance of uncertainty—refers to actions that show the leader has the ability to
accept postponement and indefiniteness without becoming upset or anxious.
2. Tolerance of freedom—allows followers scope for their own decisions, actions,
etc.
3. Consideration—refers to the leader expressing friendliness and interest, con-
sulting with group members and attending to their suggestions.
4. Demand reconciliation—this category has to do with the leader’s ability to deal
with conflicting demands without becoming upset.
5. Integration—leader action that serves to maintain a closely knit group and
resolve conflicts among group participants.
6. Predictive accuracy—a set of behaviors that exhibit the leader’s foresight and
ability to anticipate outcomes.
These six categories provide a comprehensive view of the X-axis variables on
the grid. When the X and Y variables are plotted against one another, patterns may
be identified to classify a leader’s behavioral style.
The Managerial Grid. Robert Blake and Jane Moulton used a grid to develop
another behavioral approach to leadership, the managerial grid (see Exhibit 2).
Their managerial grid uses what Blake and Moulton refer to as relationship and
task variables instead of the systems and person variables used in the grid model
just discussed. A matrix is formed with specific areas identifying certain behav-
ioral tendencies. Coordinates are used on specific areas of the grid to identify
Exhibit 2 Managerial Grid (Blake and Moulton)
(1,9) (9,9)
(5,5)
(1,1) (9,1)
the type of leader who would display high/low, low/high, etc. task/relationship
behavior. For example, the “1,1” leader is said to exert minimum effort to sus-
tain the group; such leaders are low-task and low-relationship. The leader with a
“9,1” is high-task and low-relationship oriented; this person would be classified as
emphasizing efficiency, order, and results, with minimum concern for human rela-
tions. The “5,5” category reveals a leader that has an orientation toward achieving
adequate performance through a balance of pursuing work requirements while
maintaining satisfactory staff morale. The “9,9” leader exhibits high-relationship
and high-task behavior and is usually a person that allows people a great deal of
freedom and independence in their work. The “1,9” leader pays particular atten-
tion to the people in the group but is not oriented toward getting things done.
These labels are helpful because they allow one to think in specific terms about a
leader’s behavioral patterns.
The Situational Leadership Theory. The situational approach to leadership was
developed by Paul Hersey and Kenneth Blanchard and applies to both individual
followers and groups. Essentially, their theory specifies an appropriate leader-
ship style based on the capabilities of the follower or group. A high-capability
follower/group has the ability and willingness to complete a task successfully;
a low-capability follower/group lacks both the ability and self-confidence to
attempt a task. The essence of the model is that the leader recognizes follower
maturity—both in terms of job maturity (the follower’s relevant skills and techni-
cal knowledge) and psychological maturity (the follower’s self-confidence and
88 Chapter 3
Exhibit 3 Situational Leadership Theory—Matching Leadership Style to Follower

Maturity
Maturity Level of Follower/Group Most Appropriate Leadership Style
M1: Low maturity Directing
M2: Medium maturity, limited skills Coaching
M3: Medium maturity, higher skills but Supporting

lacking confidence
M4: High maturity Delegating
ability/readiness to accept responsibility) and then chooses an effective leader-

ship style accordingly (see Exhibit 3).
As you can see, the situational model considers both the follower and the
leader. It posits that the leader must assess the follower’s readiness to take on a
task before choosing the appropriate leadership behavior. This assumes that lead-
ers can change their behavior (leadership style) and that a change in leadership
style will have a maturing effect on their followers. A follower who moves from
almost total reliance on the leader for direction and support (M1) to developing
almost total self-reliance and therefore great freedom in performing a task (M4)
illustrates the full range of the maturing process. As this example illustrates, this
model assumes that the follower’s behavior can be changed and that the follower
desires his or her behavior to be changed. It takes time, perseverance, and talent
for a leader to move a person or a group from low maturity (M1) to high maturity
(M4).
Hersey and Blanchard characterized leadership styles in terms of the amount
of direction and support that a leader gives to his or her followers and came up
with the following styles: directing (the highest amount of supervision and con-
trol), coaching, supporting, and, finally, delegating (the lowest amount of supervi-
sion and control):
•• Directing. In the directing leadership style, leaders define the tasks to be
accomplished and supervise their followers closely. Decisions are made by
the leader and communication with followers is mostly one-way, from the
leader to the follower (or group). While the directing style (also referred to as
the authoritarian style) sometimes has a negative connotation, there are times
when this style is appropriate—for example, in an emergency, as when an
emergency room physician is providing trauma care. Another less-dramatic
situation in which directing would be an appropriate leadership style would
be if a dining room captain was having places set by inexperienced servers for
a banquet of one hundred guests.
•• Coaching. In the coaching leadership style (also referred to as a consultative
style), leaders continue to define tasks and supervise their followers closely;
however, leaders begin to seek ideas, input, and suggestions from followers.
Communication is far more two-way, in that there is an expected give-and-take
between leader and follower. An application appropriate for a coaching style
would be a case in which followers have some relevant experience perform-
ing a related task, but might not be fully capable of performing the particular
task at hand. For example, a group of machinists may have a great deal of
experience cutting precision automobile pistons from steel but are now asked
to cut a specialized connector using titanium.
•• Supporting. In the supporting leadership style, it is appropriate for leaders to
pass day-to-day decision-making along to followers. Here, the leader facili-
tates work processes and an outcome, but control of goal achievement lies
with the followers as their responsibility. Communication is very much ori-
ented from followers to the leader. Supporting leadership is often referred to
as participative or democratic leadership. This leadership style is appropriate
when a follower is capable and is highly committed but may lack the con-
fidence to take charge and go it alone. For example, think about the situa-
tion that might come up when a long-time supervisor of a hotel front desk is
offered the position as front desk manager. The supervisor may have some
qualms about taking on the management role, even though he or she has
demonstrated competence in the task. A supporting style can help allay the
supervisor’s doubts and self-confidence issues.
•• Delegating. In delegating, the leader is involved in major decisions and
problem-solving, but otherwise allows followers to be in control; they invite
the leader in only when they want his or her involvement. Delegating is often
referred to as a laissez-faire leadership style. The delegating style works quite
successfully when the follower is an experienced professional doing an excel-
lent job in his or her position; for example, as when an experienced golf profes-
sional is encouraged to run his or her day-to-day business within a hotel resort.
The situational leadership theory suggests several important lessons and
points for consideration:
1. Effective leaders are versatile and should be able to provide varying amounts
of control and support to their followers based on follower ability.
2. Less-experienced followers need more direction. Followers who are more
capable need to be encouraged, but do not need or appreciate constant micro-
managing from their leaders.
3. Leaders, especially in large organizations, cannot possibly (and should not
attempt to) run their day-to-day organizations—at some point it becomes
physically impossible to do so. Therefore, using situational leadership allows
a leader to focus his or her attention where it is needed, which makes leader-
ship manageable.
4. Supporting leaders involve fellow workers and constituents in the process of
making important decisions. This does not mean that these leaders abdicate
the responsibility for making decisions; instead, it means that they allow fol-
lowers to provide important input.
90 Chapter 3
5. The coaching, supporting, and delegating leadership styles foster decision-

making by lower-level management, because tasks and authority have been
delegated.
6. Information flows laterally and downward in the coaching, supporting, and
delegating organizational structure, whereas the directing leader typically
keeps followers in the dark and makes his or her own decisions.
7. Over-managing and trying to do too much is a common pitfall of less-
experienced leaders. They typically believe that they must try to do it all and
do not know how to delegate effectively. Left unchanged, this behavior leads
to inefficient management and possibly burnout.
8. While there are situations that favor a directing style over the more participa-
tive styles, current trends favor a leadership style that ideally moves along the
continuum toward delegating whenever possible or practical.
9. In an ideal, established, and effective work environment, all followers are
fully trained and highly motivated to perform their jobs, which allows the
leader to use a delegating leadership style.
Assessment and motivation in situational leadership. With the situational
leadership model, leaders to be effective must be able to assess the skill levels and
maturity levels of their followers and use the proper leadership style(s) to moti-
vate their followers accordingly. The leader must continually motivate followers
to achieve goals, and be able to assess each follower’s skill levels and readiness to
take on tasks. Skill levels are viewed from the standpoint of where the follower is
currently to where the follower needs to be when the desired competency level
is reached. Different leadership styles may be needed at different times to assist
and motivate a group and even a single follower, depending on the skill or task in
question.
As pointed out throughout this section, the situational leadership model
may be used for groups as well as individuals. A group’s maturity level would be
assessed in much the same way as for individuals, and changes in leadership style
would be dictated by group maturity-level changes. The problem when assessing
a group is that individuals within the group will mature at different rates; thus, the
leader must assess maturity in an aggregate manner for groups. Therefore, care
must be used if this model is applied to groups.
The Contingency Theory. Fred Fiedler, a leading researcher in industrial and
organizational psychology, created a leadership theory based on “situational
contingency” that involves two factors: (1) leadership style, and (2) situational
favorableness.
To classify a leader’s leadership style, Fiedler developed the least-preferred
co-worker (LPC) scale. When filling out the LPC scale, leaders are asked to think of
the person with whom they least liked working, and rate them on a series of scales
from 1 to 8 on attributes such as the following:
Unfriendly 1 2 3 4 5 6 7 8 Friendly
Uncooperative 1 2 3 4 5 6 7 8 Cooperative
Hostile 1 2 3 4 5 6 7 8 Supportive
Exhibit 4 Contingency Theory—Chart of Situational Favorableness
Favorable Moderately Favorable Unfavorable
Leader-Member
Good Good Good Good Poor Poor Poor Poor
Relations
Task Structure High Low High Low
Position Power Strong Weak Strong Weak Strong Weak Strong Weak
Work Situations 1 2 3 4 5 6 7 8
The responses to these scales (usually sixteen are used) are summed and averaged.
The results reveal whether a leader has a human-relations orientation (indicated
by a high LPC score) or a task orientation (indicated by a low LPC score).
Situational favorableness is determined by looking at three components:
1. Leader-member relations—the loyalty, friendliness, and cooperativeness of
subordinates toward the leader. This component indicates the quality of feel-
ings that group members have for the leader and their degree of acceptance
of the leader.
2. Task structure—the degree to which the group’s tasks, goals, objectives, and
operating procedures are clearly laid out and expectations for outcomes are
well-defined.
3. Position power—the extent to which the leader’s position enables the leader to
evaluate group members and thereby exercise influence over the group in the
form of rewards and punishment.
Leader-member relations is the most important component, task structure is sec-
ond in importance, and the leader’s power position is third.
Situational favorableness is a composite of these three components. Fiedler
assigned a possible value to each component—good or poor for leader-member
relations, high or low for task structure, and strong or weak for position power—
then placed the components on a chart to determine the degree of situational
favorableness, identifying eight different potential work situations or environ-
ments. In charting these component combinations, Fiedler divided the eight pos-
sible work situations into three classifications in terms of their favorableness for
leaders: favorable, moderately favorable, and unfavorable (see Exhibit 4).
The effectiveness of a leader is determined by the degree of match between
the dominant leadership trait of the leader and the favorableness of the situation
for the leader. Fiedler found that task-oriented leaders are more effective in favor-
able or unfavorable situations (the extremes on the chart), while human-relations-
oriented leaders were more effective in moderately favorable situations (the mid-
dle of the chart). Fiedler’s assumptions:
92 Chapter 3
1. In the favorable situations, the group would complete more tasks or reach
their goals more efficiently with a task-oriented leader. In favorable situa-
tions, the leader-member relations are assumed to be good and, consequently,
followers would expect and/or be open to the leader taking charge.
2. In the moderately favorable situations, a human-relations-oriented leader
would be most effective, because in these situations the leader needs to
possess and apply relationship skills, since leader-member relations are
poor in two of the four categories, and in the two categories where leader-
member relations are good, one of them is saddled with a weak position-power
component.
3. In unfavorable conditions, the group would (as in the favorable situation)
complete more tasks or reach their goals more efficiently with a task-oriented
leader. Because all but one component in this category has the bottom rating,
the most effective leader for unfavorable work situations would be a task-
oriented leader who could stabilize an unstructured work environment also
hampered by poor leader-member relations.
The contingency theory of leadership suggests that a person may be a success-
ful leader in one situation but not in another. Since most leaders have a preferred
style (task oriented or human-relations oriented) and often seek to apply their pre-
ferred style instead of the indicated or appropriate style for a given situation, there
is a possibility that some leaders will not freely adopt (or even be able to adopt)
a different leadership style to deal with a work situation that calls for that dif-
ferent style. Sometimes improving a leader’s effectiveness requires changing the
situation to better fit the leader. This can be done by increasing a leader’s position
power, changing the structure of a task, or influencing leader-member relations to
better fit the leader’s style.
Elements of Leadership
The elements of leadership that we will explore in this section include power and
leadership, group behavior, time lag, philosophy and style, evaluation, and lead-
ership skills.
Power and Leadership

Power is recognized as a leadership element, but it can easily be misinterpreted.
Power is not leadership, but leaders have power. Webster defines power as pos-
session of control, authority, or influence over others. This definition takes on
additional meaning when combined with the concept of leadership. Leadership
power is based to a great degree on the followers’ willingness to be influenced
and guided by a particular person. One commonly held but mistaken belief is that
a leader is necessarily the person, within a group setting, who holds the highest
degree of authority. A person may have authority by virtue of his or her position,
but still not be a leader. Also, people often are considered leaders simply because
of their rank or title within an organization. However, ranks or titles do not pos-
sess leadership characteristics, only people do. One may expect certain leadership
characteristics to be exhibited by people in certain positions, and that a position
calls for some expected style of leadership, but a position (title or rank) by itself, of
course, does not exhibit leadership.
Position Power versus Leadership Power. Position power, also referred to as
legitimate power, is power conferred on someone by virtue of his or her position
and responsibilities within an organization. Position power is enforced by orga-
nizational edict, the existence of an organization chart delineating reporting rela-
tionships, and the willingness of employees to recognize and accept these organi-
zational power cues. Position power is formal authority delegated to the holder of
the position.
Leadership power is derived from followers’ willingness to be led by some-
one. That is not to say that individuals in administrative or managerial positions
do not have power, because they do. Their position power, however, does not
automatically make them leaders. Position power is derived from vested authority
and responsibilities and is different from the leadership power that is bestowed
by people who are willing to follow someone. A person may possess both position
power and leadership power, maximizing his or her influence.
It is important to realize that position power is limited by the boundaries
of the position’s authority, while leadership power is power the group gives the
leader because it believes that the leader will use this power to move the group in
a desired direction. On occasion, someone with leadership power may be allowed
to go beyond his or her position’s bounds, because leadership power expands the
zone of influence of the leader.
A person wielding position power is accepted by followers because of the
authority an organization invests in the position. A person wielding leadership
power is accepted because followers perceive that the leader will use this power
to promote group goals and purposes. There is a willingness on the part of follow-
ers to submit to leadership power because of an overriding commitment to group
values. In a sense, position power is imposed on followers; leadership power is
bestowed by followers.
Other Forms of Power. Other forms of power include the following:
•• Representation power. With representation power, a person is given the power
to represent a group internally and/or externally. This person may represent
the missions, goals, and operations of the group and may communicate the
purpose and intent of group actions to entities external to the group. Within
the group, this person may occupy any position; the consistent factor is that
group members look to him or her to represent their interests to others.
•• Purpose power. The concept of purpose power suggests that the mission or
purpose of the group takes priority over the desires of any single individual
or set of individuals within the group. Therefore, actions that are perceived
as furthering group goals and perpetuating group purpose are considered
more important than any special interests that might arise within the group.
The group leader enjoys purpose power when group members can see that
the leader is pursuing the group’s purpose and intent, and therefore group
members accept the leader’s actions.
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•• Reward power. Influencing the behavior of others by giving them rewards of

some type can result in power for the benefactor. The rewards must be per-
ceived to be of value to the recipients in order to alter their performance. In
addition to pay, promotion, and prestige, rewards may include praise, pub-
licity, respect, favorable working conditions or scheduling, and other such
considerations perceived as desirable by the recipients.
•• Coercive power. Coercive power is the opposite of reward power. Coercive
power results from a person’s ability to punish others or withhold rewards.
Examples of punishment or the withholding of rewards include denial of
raises, demotions, unfavorable job transfers, or other actions that are deemed
undesirable by the recipients. Coercive power is an obvious form of power,
but it is usually ineffective because it tends to build resistance and resentment
from the people who experience it. However, staff members must perceive
that their supervisors have the capability and authority to use coercive power
if necessary.
•• Personal power. Effective leaders use their personal power to help them
influence others. Personal power flows from personal characteristics such
as appearance, personality, and interpersonal skills. A person with personal
power enhances the effectiveness of the other types of power (such as posi-
tion power) that he or she might possess. Some people have magnetic per-
sonalities that lead people to be naturally and positively drawn to them. On
the other hand, some leaders with personal power may not be liked but are
still perceived as having personal qualities that are worth emulating. Leaders
can use this personality attraction as a power of presence to influence oth-
ers. Minimally, a leader with personal power is perceived as one who has the
qualities necessary to get the job accomplished. The group’s collective feelings
concerning the leader’s positive qualities (whether they like the leader or not)
give the leader personal power.
•• Influence power. If a group perceives a person as their leader, this person
has inherent influence within the group. The leader usually has the power
to influence policy, operations, and the general group climate. The leader is
usually a key person in establishing important work relationships and how
people interact to accomplish group missions.
•• Expert power. If someone is judged as possessing superior knowledge or skill,
he or she may influence others who have less knowledge or skill. The impor-
tance of expert power is easily discernible in a superior-subordinate relation-
ship, and either the superior or the subordinate can enhance his or her posi-
tion of power by using it. Unlike other types of power, expert power is usually
highly specific and limited to the particular area in which the expert is trained
and qualified.
•• Referent power. Referent power may exist when a person is liked, admired,
or respected because of personality traits or skills that others find desirable.
Referent power is based on the charisma and interpersonal skills of the indi-
vidual. The person who holds this power may or may not be conscious of it.
People like to identify with those they perceive as winners.
Group Behavior
Becoming familiar with group dynamics is important in understanding the nature
of leadership. A group, in the context of leadership, has a special meaning; it is
not simply a gathering of people, but rather a gathering of people who have come
together for a specific reason, intent, or purpose and are bound by certain moral
or philosophical beliefs and values. In studying leadership, it is important to note
and understand some basic group characteristics and the manner in which groups
take action.
Group actions can be categorized in three fundamental ways:
1. Interacting. Interacting groups are those in which the product outcome
involves a group effort and the members work interdependently with one
another.
2. Co-acting. Co-acting groups are those in which the members work indepen-
dently of one another.
3. Counteracting. Counteracting groups are those in which members compete
with one another.
When these three classifications are applied to leadership theory, we discover

the following relationships:
•• The Fiedler contingency model applies to groups in which individuals within
the groups are interacting and not to groups in which members either work
independently or compete within the group.
•• Hersey and Blanchard’s situational model applies to all three classifications of
groups and may be applied to individuals.
•• The grid approach is one that is geared to individual leader behavior. There-
fore, groups and their corresponding work would not be considered within
the boundaries of this approach.
The study of group dynamics is necessary for serious students of leader-
ship, because leadership, by definition, takes place within a group setting. Group
dynamics go beyond mere group classifications and delve into the inter-workings
of various group types.
Time Lag: A Leadership Variable

Rensis Likert’s time-lag concept stresses group performance and environmental
climate as the primary forces that produce results (outcomes). The importance
of this concept lies within its recognition that leader actions do not directly affect
results. Instead, leader actions affect results indirectly. Likert suggests that there is
a time lapse between leader action and results. Likert identifies three concepts to
support his hypothesis:
1. Causal variables. Causal variables are elements that are under the control of
the leader and include issues such as philosophy, structure of the organiza-
tion, policies, rules, regulations, leader behavior, and the like.
96 Chapter 3
2. Intervening variables. Intervening variables are those elements that are affected
by causal variables. They include issues such as climate of the organization,
attitudes of the employees, perceptions, and politics among group members.
3. End-result variables. End-result variables can also be described as the product
or outcome. Likert posits that end results are the product of the first two vari-
ables (causal and intervening variables) and that the cause/effect relationship
between the first two variables creates a natural flow to produce the third vari-
able, end-result variables. For example, in a school setting, end-result variables
might include test scores, rate of attendance, percentage of college-bound stu-
dents as compared to the total school population, teacher turnover rate, etc.
This model is referred to as a time-lag model because, in most cases, results
are not immediately realized when leader action is taken, and time becomes a
variable that affects the realization of goals and objectives. Most complex organi-
zations have goals that are realized longitudinally across time. Consequently, the
benefit of a leader’s action taken today may take weeks, months, or even years
to be fully realized. The Likert model takes into consideration the time element
involved in fully realizing the effect of leader actions.
Philosophy and Style

A leader’s general philosophy or outlook concerning people informs his or her
leadership style. In this section we will look at three theories about people and
their relationship to work, and how these theories may describe or influence the
way leaders interact with those they lead: Theory X, Theory Y, and Theory Z.
Theory X and Theory Y. Rather than theories on leadership, Theory X and Theory
Y express assumptions concerning how people view other human beings. These
theories are significant, because how leaders relate to others is a critical element in
predicting leader behavior. The value of Theory X and Theory Y comes in realizing
that they can help identify basic leader attitudes. A leader’s attitude about people
in general is a key in the development of leader-follower relations.
Theory X assumptions are as follows:
1. The average person has an inherent dislike for work and will avoid it if pos-
sible;
2. Most people must be coerced, controlled, directed, or threatened with punish-
ment to get them to exert adequate effort toward the achievement of organiza-
tional objectives; and
3. The average person prefers direction, wishes to avoid responsibility, has rela-
tively little ambition, and wants security above all else.
Contrast these assumptions with the following Theory Y assumptions:
1. The expenditure of physical and mental effort in work is as natural as play, as
long as it is satisfying;
2. People will exercise self-direction and self-control toward an organization’s
goals if they are committed to the goals;
3. Commitment to objectives is a function of the rewards associated with
their achievement; the most effective rewards are satisfaction of ego and
self-actualization;
4. The average person learns to not accept and seek responsibility—that is,
avoidance of responsibility and emphasis on security are learned and not
inherited characteristics; and
5. Creativity, ingenuity, and imagination are widespread among people.
All people like to be treated with dignity and respect. Effective leaders should
review Theory X and Theory Y assumptions and ensure that they develop or already
possess Theory Y philosophies. Theory X leaders will not be successful in today’s
workplaces, especially in people-oriented work environments such as clubs.
Theory Z. Theory X and Theory Y assume that a leader’s general outlook toward
people will help determine the leadership style that a leader will tend to adopt.
Another theory that makes a similar assumption is Theory Z, which came into
prominence during the 1970s. Theory Z is the direct opposite of a bureaucratic phi-
losophy of management and counters the view that leadership must be a behav-
ioral continuum. Theory Z’s philosophy implies trust in the judgment of people
and embraces group members’ opinions to help influence group actions.
Application of Theory Z stresses upward mobility for all group members via
skill specialization, so that group members can become competent in many spe-
cific areas. After becoming a competent specialist in one area, group members are
encouraged to progress to other tasks, which will challenge their existing skills
and intellect, thereby encouraging group members to view education and training
as a never-ending and key element of career and personal development.
Position security is another mainstay of Theory Z; providing group members
with the opportunity to work in confidence, knowing that their positions will
not be threatened. Theory Z also encourages an attitude of greater cooperative
effort between and among group members and group leaders, allowing leaders to
obtain firsthand information about group activities and making followers feel they
are part of the leadership team.
The leadership philosophy in many organizations during the 1900s in the
United States was the opposite of Theory Z. One of the main influences in the
United States was the work of Max Weber and the development of bureaucratic
structure. Weber’s philosophy of management can be observed throughout federal,
state, and local government, the military, and other organizations. The bureau-
cratic philosophy stresses chain of command, span of control, policies, regulations,
and rank. It is obvious that organizational structures have influenced how leaders
have developed and expressed their leadership styles. Current trends in the 2000s
appear to be shifting toward Theory Z, as reflected in the manner in which many
of today’s organizations are operated.
Evaluation
Leaders are evaluated in terms of how successful or effective they are. We will
explore these concepts in the following paragraphs.
98 Chapter 3
Success and Effectiveness. The concept of effectiveness is central to the study of

leadership. There is a difference between being an effective leader and being a suc-
cessful leader. Leadership that produces desired results may be termed success-
ful, but not necessarily effective. For example, a leader who achieves a goal may
be termed successful, but if he or she does it at a greater-than-budgeted cost, the
leader may be seen as not very effective. A leader can be successful without being
effective, but cannot be effective without also being successful.
Successful leadership results in intended group behavior, but, in the long
run, success alone may not produce desired results. A leader could achieve all the
goals set forth for a group and still not be considered effective. The effective leader
will motivate followers toward continued success and instill in them the desire to
strive for future goals. The non-effective leader may accomplish immediate goals,
but not motivate followers for future activity. The effective leader will take into
consideration follower feelings and desires, and attempt to satisfy the followers’
personal needs as well as accomplish group goals. Effectiveness is a process; the
result is success and motivated followers.
Addressing follower satisfaction is a primary element in developing an effec-
tive leadership style. Knowing what satisfies a particular follower may vary from
person to person, but the astute leader will learn the satisfying environmental ele-
ments as well as the dissatisfying environmental elements. The effective leader
will seek to minimize the latter while maximizing the former. The desired result
for the leader is successful accomplishment of goals, as well as a satisfied and
motivated work group.
Leaders are particularly difficult to evaluate since, to be considered effective,
they not only must be both able and willing to lead, but their followers must be
both able and willing to follow. These variables are diagrammed in Exhibit 5. As
you can see, there are four combinations of leader/follower that result in failure,
and only one combination of leader/follower that results in success. Is it thus rea-
sonable to conclude that it is four times as easy to fail as to succeed when leading
people? Or for that matter, is it four times as easy to fail any time one deals with
people? Those are probably not the best conclusions to draw, but almost anyone
who has been in a position of trying to lead people will admit that it is difficult to
be successful. The leader’s responsibility when dealing with people is to turn the
failure situations into success situations by creating “willing and able” scenarios
for all involved.
Three criteria of leader effectiveness that can be used as a basis for leader
evaluation are (1) group satisfaction, (2) group productivity, and (3) group perfor-
mance. In many cases, these criteria are measured via questionnaires administered
to the group under study. There are other ways to judge leader effectiveness as
well. But it should always be remembered that the concept of effectiveness in lead-
ership has much to do with the motivation of followers.
Leadership Skills
Many of the current approaches to leadership have focused on behavioral ele-
ments. Studies of leader behavior have been thought to reveal or suggest success
and effectiveness patterns. Analysis of specific situations has provided insight to
Exhibit 5 Five Leadership Effectiveness Combinations
Behavior Characteristics Effectiveness Outcome

Follower is: Leader is: Failure Success
1.

Willing to be led
Able to be led
Willing to lead
(Unable to lead)
2.

Willing to be led
Able to be led
(Unwilling to lead)
Able to lead
3.

(Unwilling to be led) Willing to lead
Able to be led Able to lead
4.

Willing to be led
(Unable to be led)
Willing to lead
Able to lead
5.

Willing to be led
Able to be led
Willing to lead
Able to lead
the type of leader behavior that is thought to be most effective for a particular
situation. Another approach to leadership has been to identify skills that, when
executed successfully, yield effective leadership. With this approach, the leader
exhibits certain skills and is rated on his or her successful execution. The major
emphasis of this line of thought is on teaching leadership skills. It is assumed that,
if someone can be taught appropriate skills, he or she will become an effective
leader.
This approach highlights a philosophical argument: Is leadership an art or
a science? The answer to this question is probably, “Both.” If it is a mixture of
both, how much of it is art and how much of it is science? This answer depends
on personal interpretation and, perhaps, application. It is important to note that
the skills approach is not all-inclusive. Competence in certain skills does not nec-
essarily guarantee leadership success. Necessary skills in one situation may not
be a requirement in another situation. Thus, to determine the skills necessary for
leadership success, one needs to analyze carefully the specific leadership situation
in question.
Certainly, some conglomeration of skills is necessary for one to become a
competent, successful, and effective leader. However, the type of skills and degree
of expertise depends on the environment—often referred to as the situation.
Assessing the skills required for effective leadership without analyzing the envi-
ronment is tricky. For example, an engineering environment would require the
demonstration of different skills than a social-work environment. There may be
leadership skills common to both environments, such as effective communication.
However, there are skills unique to each environment, which require their own
type and degree of competency. The student of leadership should be careful not to
100 Chapter 3
view execution of skills as leadership itself. There is a difference between execut-

ing a skill and effective leadership. The act of executing skills does not equate to
leadership, but execution of skills may be necessary to be a leader in a particular
situation.
Motivational Theories
Motivation is an integral element of leadership, and is included as a major section
in the majority of leadership texts. This section provides a descriptive narrative of
the subject and provides insight into many of the current theories on motivation.
Unfortunately, motivation in organizations and institutions over the past 100
years has been handled predominantly from a negative perspective. Followers
have been largely motivated with words that go something like this: If you do not
do (insert some task or a project that the leader wants done here), then (insert some
negative outcome or punishment here) will happen. Some refer to this method as
motivation by fear or intimidation. Whatever the case, it is certainly an example of
negatively oriented motivation. Negative motivation may be the most often-used
method, but it is rarely the preferred method.
In many instances, effective leaders instinctively know that each follower is
different and that not all individuals are motivated by the same things. Moreover,
they realize that not all people can be treated effectively in exactly the same man-
ner. However, all people should always be treated with both dignity and respect.
Leaders who hold this view tend to make an effort to know their followers and
know why and how each person is different. These leaders do not stress the same-
ness of followers; instead, they notice individual qualities. Astute leaders use these
differences to their advantage in dealing with followers. Many theories stress the
importance of the individual in motivation and thereby address factors that cause
people to take certain actions over others.
The term drive is often used in psychological circles to describe the amount of
energy focused and channeled toward accomplishment of a particular objective.
The direction and intensity of a person’s motivation are influenced by two factors:
1. A person’s perceptions of himself or herself (intrinsic), and
2. A person’s perception of the world external to himself or herself (extrinsic).
A person’s perception of how well he or she can perform and the external
forces acting on the individual to either aid or hinder performance will influence:
1. Whether the individual will or will not take action, and
2. The amount of energy that will be exerted toward the action.
In considering motivation, one should realize that any environment involving
people deals with varying degrees of uncertainty. One cannot always accurately
assess how others will react to particular leader behaviors. For example, an admin-
istrator praises John for a job well done. Afterward, John demonstrates a 10 per-
cent increase in work output. The leader uses the same technique with Ken, only
to observe a 10 percent decline in Ken’s work. Notice that identical leader behavior
resulted in two distinctly different responses. Later, the same leader praises John
Exhibit 6 Seven Steps of Motivation
7. Tension relieved
6. Need satisfied
5. Goal achieved
4. Search for appropriate behavior
3. Level of drive exerted
2. Tension produced
1. Existence of an unsatisfied need
and gets another 10 percent increase in performance. However, this time the leader
criticizes Ken; the result is a 10 percent increase in Ken’s performance, which is the
reverse of what happened when the leader praised Ken. This illustrates that indi-
vidual followers may react in the same way (both John and Ken increased their
work output by 10 percent) to different leader behavior (the administrator praised
John but criticized Ken). This may be due to differences in individual preferences
or to differences in perception by the individuals themselves.
One of the primary tasks of any leader is to try to help motivate followers,
both individually and collectively. Knowing what prompts a follower to action
can help provide the leader with the tools necessary to accomplish group tasks
and goals.
Many current theories treat motivation as a process that begins with some
unsatisfied need. A need produces tension, which in turn stimulates a level of
drive within the individual. Drive leads to a search for appropriate behavior to
achieve the goal and thereby satisfy the need. If the need is satisfied, then the ten-
sion is thereby relieved (see Exhibit 6).
In the following sections we will discuss some of the prevalent theories about
motivation, many of which deal with concepts such as goals, drives, and needs:
the expectancy theory, the path-goal theory, Maslow’s hierarchy of needs, and
Herzberg’s two-factor theory.
Expectancy Theory
The foundation of expectancy theory is that people have choices to make, and
for their effort expended, people expect results. Several questions are addressed
within this theory:
102 Chapter 3
•• What do we perceive as the payoff for our efforts?

•• What is it that drives us?
•• Why do we choose the goals we choose?
Expectancy theory posits that a person will make a decision to behave or act
in a certain manner because of what he or she expects the result of that selected
behavior will be. In essence, the individual’s motivation is driven by the degree
of desirability of the expected outcome. While it is a key element, the expected
outcome is not the only determinant in making the decision of how to behave.
Expectancy theory evolved around the process illustrated in Exhibit 6. There are
three assumptions behind the expectancy theory:
1. People anticipate or expect that things will occur and that certain behaviors in
response to those events will probably produce predictable consequences.
2. People usually confront possible alternative behaviors in rational manners.
3. Over time, people learn to predict likely consequences and therefore modify
their behavior in a way that helps them achieve desired results.
The constructs that follow help provide an understanding of motivation in
terms of expectancy:
•• Valence. Valence refers to the degree of preference that one has or the par-
ticular value for a potential outcome. Valence can be either positive or nega-
tive. Different people will assign different values to items and issues such
as income, working conditions, status, or security. Valence helps define the
parameters of what an individual wants or expects from a job.
•• Outcome. Outcome is the consequence, product, or result of one’s behavior.
•• Action. Action is open, observable, and obvious behavior. Action entails phys-
ical movement as well as cognitive content and emotional tone. Expectancy
theory assumes a range of behavior is available to and applicable by each
individual.
•• Expectancy. Expectancy is the belief that some particular behavior will likely
result in a predictable, first-level outcome.
•• First-level outcome. First-level outcome is the direct or immediate consequence
of one’s behavior. For example, exceeding accomplishment of one’s goals and
objectives for the year (action) may result in a pay raise or incentive bonus
(first-level outcome).
•• Second-level outcome. Second-level outcome refers to the personal impact
that the first-level outcome has on a particular individual. A first-level out-
come may affect something else in the life of the individual. For example,
more productive work on the job (action) may produce better pay (first-level
outcome), which may yield a better lifestyle (more luxurious vehicle, better
housing neighborhood, higher-quality clothes) for the worker (second-level
outcomes). Better lifestyle is a second-level outcome that occurred directly
because of the first-level outcome.
•• Instrumental effect. Instrumental effect refers to a correlation between the first-
level outcome and the second-level outcome. It is an individual’s perception
as to how strongly the initial outcome (first-level outcome) will affect other
outcomes (second-level and subsequent outcomes).
A direct outcome is desirable or undesirable, in part, to the extent that it is
perceived to relate to indirect outcomes that are desirable or undesirable. A direct
outcome takes on valence as it is perceived to be instrumental in attaining desired
indirect outcomes and/or avoiding unpleasant indirect outcomes.
Expectancy theory is a psychological theory that places the individual in the
position of choosing among values. It is based on the assumption that all human
behavior can be regarded as the result of a state of internal tension that serves as
a drive for action. It is drive that produces the energy to act. Expectancy theory is
a descriptive model of how individuals act relative to their perception of environ-
mental stimulus.
One major force within individuals is their perception concerning their ability
to act. A second major force is the perceived consequence of action taken. These
two forces are major factors in determining whether an individual will take action,
and the degree of energy the individual will exert toward the action. Expectancy
theory helps explain the process of how individuals are motivated and the factors
present when an individual is motivated. Understanding the motivational process
will help leaders identify ways to motivate individuals. It is incumbent on leaders
to recognize what followers value—the elements that cause internal tension. It is
also important for leaders to recognize how followers perceive their ability to act.
Confidence is a major factor in the successful completion of activities.
Using terms described in the preceding paragraphs, here is an example of
positive and strong motivation as a form of expectancy: If an individual believes
strongly (expects) that exceeding accomplishment of goals and objectives will lead
to (correlate strongly and positively with) a hefty pay raise (first-level outcome),
and that hefty pay raise will allow the individual to move into a better house, buy
a BMW, and begin shopping at Nordstrom (second-level outcomes), then he or she
will likely work hard to exceed goals and objectives.
Path-Goal Theory
R. J. House’s path-goal theory is a type of expectancy theory. The path-goal the-
ory hypothesizes that if a follower clearly understands the path to take to reach a
desired goal, and explicitly understands the rewards that will be received if he or
she is successful, then that person will be motivated to choose the path that leads
to the rewards that best suit his or her wants and needs. An individual can expect
certain outcomes from actions because the various paths to those outcomes have
been clearly identified. The individual is motivated by clearly understanding the
amount of energy (drive) needed to achieve a particular outcome. An individual
is also motivated to achieve a particular outcome if the path has been cleared of as
many obstacles as can be anticipated.
According to the path-goal theory, the primary function of a leader is to be
a facilitator in removing obstacles from the path of followers so that desired out-
comes may be realized. The leader should provide skill training for the follower
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to accomplish desired goals, and identify the necessary amount of effort that will
be required. The leader should point out the reward for successful accomplish-
ment, and help show the follower the way to go about successful accomplishment.
House is quick to make leaders and followers aware that there is no guarantee
of success, even if the follower is aware of the means of reaching his or her goals
and even if most obstacles are removed from the follower’s path. A major portion
of responsibility for success lies with the follower. The follower must value (have
valence for) the goal enough to take the necessary action (drive) to fulfill the goal.
The path-goal theory outlines six ways for leaders to motivate their followers:
1. Recognize and arouse the follower’s need for outcomes over which the leader
has some control
2. Increase personal payoffs to followers for successful goal attainment
3. Make the path to payoff easier to obtain by offering coaching, directing, and
other forms of mentoring
4. Help followers clarify expectations in terms of objective terms (discrete met-
rics that can be timed and/or counted)
5. Reduce frustrating barriers
6. Increase the follower’s opportunity for personal satisfaction contingent upon
effective performance as evaluated in terms of objective measures
If these guidelines are implemented, the result should be a significantly
higher percentage of followers who are motivated. The path-goal theory places
the follower at the front of the focus—the follower successfully completes tasks to
achieve goals, while the leader provides the guidance and direction.
It is necessary for the leader to understand each individual follower’s wants
and needs and also the group’s wants and needs. The leader must know the task
accomplishments that are necessary for the follower to realize success. This implies
that the leader must understand the environment and have empathy for the fol-
lower’s goals. Leaders using any leadership style need to:
1. Know and understand themselves
2. Understand the external environment in which they are working
3. Know and understand their followers
Knowledge of one’s strengths and limitations, and knowing the followers’
characteristics are basic issues for the practical application of any motivational
theory.
When the path (means for accomplishing a goal) is clear to followers, research
shows that some followers do not respond well to further path clarification. This
may help explain why many people resent close monitoring or micromanaging.
These people believe that they know their jobs, know what is expected of them,
and therefore can operate independently. They prefer a style whereby a leader
provides the structure for getting the goal achieved and then allows the follower
to execute the plan.
The path-goal theory helps explain some of the issues that motivate people.
It does not attempt to either define or otherwise explain the nature of motivation;
Exhibit 7 Maslow’s Hierarchy of Needs
5. Self-
Actualization
4. Esteem
3. Love and belonging
2. Safety
1. Physiological
it simply attempts to identify some elements that cause a person to take action.
Followers will choose among the paths that they perceive fulfill their needs. If
given a choice, some people will choose to pursue peer recognition, for example,
while others may pursue financial security. Of course, it is not always a matter of
choosing one path, it is often a matter of simultaneously working on several paths
to achieve desired goals. The path-goal theory suggests that there is a more or less
general pattern to one’s actions. These patterns provide insight into a follower’s
behavior and can help a leader establish a meaningful leadership plan by laying
out rewards, tasks, goals, and expectations.
Maslow’s Hierarchy of Needs

Maslow’s hierarchy of needs theory is a well-known motivational theory that
delineates personal needs and orders them in priorities of likely fulfillment (see
Exhibit 7). This theory is based on several assumptions: the needs of an individ-
ual are complex—each individual is subject to a variety of needs; a need that has
already been satisfied is not a motivational factor; and an individual will only be
motivated to achieve higher-order needs after lower-level needs are met.
Maslow’s hierarchy of needs theory provides a framework in which to con-
ceptualize what motivates individuals. In our society, we typically assume that
most followers’ basic needs are being met, which allows us to concentrate effort
on higher-order needs, such as self-actualization. In reality, assuming that people’s
basic needs are being met may or may not be a valid assumption.
What follows are brief descriptions of the needs listed in Maslow’s hierarchy:
•• Physiological needs. Physiological needs are requirements for survival. If these
requirements are not met, the human body cannot function. Higher needs are
not considered much or at all if physiological needs are not being met. Air,
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water, and food are requirements for survival for all humans. Clothing and
shelter provide necessary protection from the elements.
•• Safety needs. After physiological needs are satisfied, the individual’s physical
safety needs receive dominant focus. Safety and security needs may include
a variety of needs, including personal security, financial security, and health
and well-being.
•• Love and belonging needs. After physiological and safety, the third level of
human needs involve feelings of love and belonging. The desire to feel loved
and to belong develops in early childhood and continues into adulthood.
Love and belonging involve significant relationships typically associated with
family members and friends. Humans need to feel a sense of love, belonging,
and acceptance by others. In the absence of these elements, people may suffer
the ill effects of loneliness, social anxiety, and clinical depression.
•• Esteem needs. Esteem is the desire to be accepted and valued by others. People
possess the need to gain recognition and feel as though they are making a
contribution. Imbalances at this level can result in low self-esteem or an infe-
riority complex. People with low self-esteem need respect from others.
Maslow noted two versions of esteem needs, a lower one and a higher
one. The lower one is the need for the respect of others and encompasses the
need for status, recognition, fame, prestige, and attention. The higher one is
the need for self-respect, which encompasses the need for strength, compe-
tence, mastery, self-confidence, independence, and freedom. The latter one
ranks higher because it rests more on inner competence won through experi-
ence. Deprivation of these needs can lead to an inferiority complex and feel-
ings of helplessness.
•• Self-actualization needs. This level of need pertains to knowing what a person’s
full potential is and realizing that potential. Maslow describes this desire as
the desire to become everything that one is capable of becoming. Self-actual-
ization means different things to different people. For example, one individual
may have the strong desire to become an experienced and effective club gen-
eral manager, another may desire to play on the PGA Tour, and another may
desire to become the best parent possible. To reach self-actualization, people
must first have met all of the preceding needs and must have a clear under-
standing of what self-actualization means to them. One effective method of
understanding this need is through the setting of goals and objectives.
Herzberg’s Two-Factor Theory

Another motivation theory is Herzberg’s two-factor theory. The two-factor theory
is different from Maslow’s theory in that Herzberg posits that motivation cannot
be sufficiently explained in terms of a hierarchy alone. Instead, he theorized that
motivation is composed of two distinct factors, which he referred to as being either
motivational or maintenance (the maintenance factors are sometimes referred to
as hygiene factors). Herzberg’s two primary assumptions are that (1) maintenance
or hygiene factors must be sufficiently present in order for motivational factors to
come into play (when they are not sufficiently present, conditions are created that
block motivation and lead to dissatisfaction); and (2) motivational factors lead to
satisfaction.
Maintenance factors are not motivational. Instead, when they are present they
help keep individuals from being dissatisfied. In order to be motivated, one must
derive a certain degree of satisfaction from his or her effort. If motivational factors
are considered inadequate by employees, that causes dissatisfaction with work.
According to Herzberg, it is the task of the leader to eliminate or mitigate
sources of dissatisfaction for individuals. For example, if a group of workers is to
be motivated, then that group must perceive that its environment is significantly
free of conditions that Herzberg labeled “dissatisfiers.”
Maintenance factors include salary, benefits, safe working conditions, and
other such elements. Herzberg concluded that motivation does not appear to come
from maintenance factors, but from other factors. He concluded the factors that
incubate motivation include recognition, job challenge, achievement, responsibil-
ity, advancement, and promotion.
Historically, researchers had suggested that the opposite of job satisfaction
was job dissatisfaction, which sounded logical. And, further, that if the dissatisfac-
tion could be eliminated from work, the job would become both satisfying and
motivational. Herzberg disagreed, writing that the opposite of dissatisfaction is
not satisfaction. By eliminating sources of dissatisfaction one might reduce the
dissatisfaction of a worker, but this does not mean that the worker will somehow
become motivated or find job satisfaction.
Like Maslow, Herzberg made some fundamental assumptions about people
when formulating his theory:
1. Individuals do not simply respond to events after they occur. Instead, they
are highly proactive in trying to shape their events and influence situations,
and are thereby proactive.
2. Individuals usually consider alternative behaviors and their possible conse-
quences in a more-or-less rational manner.
3. Through experience, individuals learn to anticipate (forecast) likely outcomes
of alternative behaviors in dealing with events and, because of this learning,
modify their responses to try to achieve positive outcomes.
Exhibit 8 lists maintenance and motivating factors that may be found in a
typical workplace.
Motivating Factors. There are a limited number of actions that a club leader can
take to motivate followers. The first action, however, should be for the leader to
examine the work environment to identify dissatisfiers. This analysis should then
be operationalized with a goal of reducing or eliminating dissatisfiers where pos-
sible. It is likely that not all dissatisfiers can be effectively eliminated. However,
the demonstration of willingness on the leader’s part to act on behalf of the group
members typically will positively enhance the leader’s image among group mem-
bers. If the leader evidences a caring attitude, an atmosphere of confidence typi-
cally develops toward the leader.
After eliminating elements from the environment that keep people from
being motivated, the leader must address the notion of actually motivating
108 Chapter 3
Exhibit 8 Herzberg’s Two-Factor Motivational Theory: Motivating Factors and

Maintenance Factors
Achievement
Growth
Status
Potential
1.
Motivating
Factors
Recognition Responsibility
Advancement
Working
Relations
Job Security Salaries
2.
Maintenance
Factors
Environmental Interpersonal
Climate Relations
Benefits
followers. To motivate them, the leader must determine what it is that they value
or otherwise care about. In order to do this, the leader needs to understand the
wants and desires of each group member. This can be quite difficult, but the leader
should make a concerted effort to determine wants and needs to help ensure that
all individuals are being accommodated in such a way as to allow them to realize
their maximum potential.
Maintenance Factors. Application of Herzberg’s theory suggests that overall
group feelings are a critical element in analyzing the efficacy of maintenance fac-
tors. The leader should ensure that dissatisfiers in this category are significantly
reduced so that followers will feel more inspired to participate in group goals. To
the extent possible, all group members should have positive feelings about their
work relationships with their co-workers, workplace conditions, salaries, benefits,
and their job security. The following are evidences of de-motivated employees in
a club environment:
•• Low productivity
•• Poor production or service quality
•• Strikes, disputes, and/or breakdowns in relationships and communication
•• Complaints about pay and working conditions
Goal Management
Setting and working toward goals is an important part of leadership. In this sec-
tion we will look at SMART goals, how to check on progress toward goal attain-
ment, and how leaders can reinforce the importance of goal achievement among
followers.
Setting and Achieving SMART Goals

One effective way to both set and manage goals utilizes five checklist items.
The first letters of each of these items together spell the word SMART: Specific,
Measurable, Acceptable, Realistic, and Timely. We’ll examine each of these goal
elements in the following paragraphs.
Specific. Goals must be stated in specific terms. Specific terms help establish pre-
ciseness of the goal. Specificity is the common thread that runs throughout all
of the checklist items because it reminds us to drill down into necessary levels
of detail. If we were to establish a goal of reducing operating expenses in golf
course maintenance, here are two goal statements. First, the non-specific exam-
ple: “I will reduce golf course maintenance expenses wherever possible across the
department.” Second, the specific example: “I will reduce golf course maintenance
expenses by a total of 2 percent.” Adding the total amount adds an overall level of
understanding as to what we are trying to achieve. We will continue to use the golf
course maintenance example to help illustrate the remaining four checklist items.
Measurable. Using times and counts, the measurable item continues to add depth
and understanding to the goal. That the goal is measurable is helpful to the depart-
ment head (in this case, the golf course superintendent) and it is also helpful to
the supervisors and employees working in the department. Finally, it is helpful to
the club’s general manager in establishing a baseline target from which to rate the
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superintendent’s performance. In this case, the total of 2 percent can be measured.

Specifically, it answers the question by how much, which becomes the basis for
measurement.
Acceptable. As the general manager and the golf course superintendent are estab-
lishing this goal of reducing expenses by a total of 2 percent, the acceptable element
reminds us that this goal must be acceptable to both the general manager and the
superintendent. If 2 percent is not acceptable because it is too much, the superin-
tendent will not try his or her best to accomplish the goal. If the general manager
believes that the goal is too little, he or she will not value the goal in terms of its
accomplishment because it is too easily achieved.
Realistic. The realistic element of goal setting and achievement complements the
acceptable element just discussed. Imagine for a moment that the club in our golf
course maintenance example is located in Florida and that a Category 5 hurricane
has blown through the area in September, causing flooding, washouts, downed
trees, and damage by on-course furniture. The concept of realistic becomes a key
element in the goal of reducing expenses by 2 percent. (We must assume that the
goal of reducing expenses by 2 percent suggests cutting and trimming expenses
that will not be noticed by the membership.) Because the hurricane likely creates
a significant increase in expenses, such as labor and materials, a 2 percent expense
reduction may not be realistic.
Timely. “Timely” is often stated more clearly in terms of the goal being time-
bound. Being time-bound suggests that there is a period of time established by
which the goal will be accomplished. Referring back to the 2 percent golf course
maintenance goal, adding a time period once again adds a valuable level of pre-
ciseness to the goal. If, for example, the goal of reducing expenses by 2 percent is
time-bound over a period of twelve months, the goal may still be realistic. How-
ever, if the goal is time-bound for a single month, especially if that month is right
after the September hurricane cited in this example (that is, the single month is
September or October), it is quite likely that the 2 percent goal is not attainable.
Checking a SMART Goal

Once we have established a SMART goal, it is necessary to check it for thorough-
ness. One excellent way to check a SMART goal is to use a method often used by
journalists when writing a story. Club managers can check the goal by answering
the following questions:
Who? Who answers the question of who is responsible for the goal
achievement.
What? The what question helps ensure that the goal is stated in under-
standable terms.
Where? Where confines the goal to a particular area within the club.
When? When becomes a checklist for time-boundness in terms of begin-
ning and/or ending.
Why? The why question addresses the question of importance. Why is
attaining this goal important?
How? How can include the method(s) that will be used to accomplish
the goal. However, most often, how answers the question as to
how the goal achievement will be objectively measured as either
being successful or unsuccessful. Remember that objective mea-
surements are those that can be timed and/or counted. How also
addresses any agreements for an incentive bonus.
Who cares? The final element, who cares, is not part of the traditional journal-
istic questions but it is an important question for club managers to
ask when setting goals.
Physical and Cognitive Approaches. The physical approach to goal achievement
is used most often by club managers. Also referred to as management by objec-
tives (MBO), the physical approach includes setting a time frame for the goal start,
setting interim goals (also referred to as objectives) along the way, and checking
to see that interim goals and the overall goal are achieved in a timely fashion. The
cognitive approach to goal achievement became popular in sports and is used by
free-throw shooters, batters, and even bowlers. Also referred to as visualization,
the cognitive approach includes the specific steps of developing an enthusiastic
and positive attitude, relaxing, imagining the accomplishment of the goal, and
re-orienting back to the present time.
Reinforcing Goals
Effective club managers are involved in others’ achievement of goals in the form of
reinforcement. Reinforcement can be classified as either positive or negative. Posi-
tive reinforcement is almost always the more successful method in encouraging
others. When using positive reinforcement, a manager finds ways to compliment
a person’s efforts and progress toward goal achievement. Negative reinforcement
also can be a successful method, provided that the manager has established a good
rapport with the person. Negative reinforcement can be done in private and can be
used as a coaching session to uncover obstacles that may be keeping the individual
in question from performing up to expectations. Successful negative reinforce-
ment should end on a positive note and with an agreement for improvement. The
individual should not feel as though the manager has permanently lost confidence
in his or her ability to successfully complete the goal, because that could lead to the
person giving up entirely on achieving the goal.
Regardless of the reinforcement method used, often a goal must be reevalu-
ated because progress on it has not lived up to expectations. Two guidelines club
managers should use before changing a goal is to establish whether efforts have
been maximized and whether the goal is still attainable and realistic.
Service Analysis as a Leadership Tool

Establishing a comprehensive service analysis across the club is perhaps the
most basic and valuable leadership tool available for a club manager.1 This is true
112 Chapter 3
whether the manager is new to the club or a long-standing club leader. Such analy-
sis provides an analytical snapshot of the club’s present level of service, which can
be used as a basis for developing long-term service goals and objectives.
Effective club managers are always focused on providing great service to
members. Consistently delivered high levels of personalized and thoughtful
service is one of the few differentiators that separate private clubs from restau-
rants and hotels. By comparing the club’s current, actual service practices to ideal,
benchmark service standards, the club can create service objectives that are consis-
tent with the club’s definition of itself.
For example, if a service survey were completed before instituting training
and other service programs, progress toward benchmark standards could be mea-
sured accurately. This method gives managers hard evidence instead of mere feel-
ings or intuition that programs are either getting positive results or need adjust-
ment. For effective strategic management, managers must create reliable ways to
measure the results of efforts and initiatives. To create objective measures, effec-
tive leaders count everything they can count and time everything they can time.
When conducting a service analysis at a club, evaluators should use concep-
tual, analytical, assessment, and decision-making skills to complete two major
phases of the service analysis: (1) service operations analysis, and (2) service man-
agement assessment.
Service Operations Analysis

During the service operations analysis, an evaluation team observes, rates, and
writes a critical analysis of the efforts of the club’s service providers during daily
operations. To complete the service operations analysis, evaluators should plan to
spend approximately ten hours or so at the club, observing operations and then
reporting findings classified according to seven procedural dimensions and eight
personal dimensions:
Procedural Dimensions:
1. Timeliness
2. Incremental Flow
3. Anticipation
4. Communication
5. Member Feedback
6. Accommodation
7. Supervision/Organization
Personal Dimensions:
1. Attitude, Body Language
2. Attitude, Tone of Voice
3. Tact
4. Attentiveness
5. Naming Names
6. Guidance
7. Selling Skills
8. Gracious Problem-Solving
Service Management Assessment

During the second phase of service analysis, managers conduct a service man-
agement assessment. In the service management assessment, an evaluation team
observes, rates, and writes a critical analysis of the efforts of the club’s manage-
ment team in creating a service-based infrastructure and culture. To complete the
evaluation, evaluators report their findings according to these ten dimensions:
1. Quality Customer Service Values
2. Organizational Climate and Leadership
3. Quality Service Standards
4. Jobs and Hiring
5. Training
6. Customer Feedback
7. Response to Customers
8. Service Provider Feedback
9. Recognition and Rewards
10. Continuous Quality Improvement
Practical Considerations
As with any other evaluation, assessment, or survey, objectivity and experience
are paramount considerations when conducting a service analysis. For this reason,
a club may be best served by looking for outside help when conducting a service
analysis.
An outside team of evaluators might offer the best opportunity for the club to
get a truly objective analysis of its service. Such evaluators would not likely have
a vested interest in the outcome of the analysis, nor would they fear reprisals for
honest comments, as a club staff member or department head might. A simple yet
effective method to recruit an objective evaluation team would involve partnering
with the manager of another club, perhaps a friend or well-known colleague, to
share the task of analysis. The partner club would provide an observation team
composed of its own managers and staff; likewise, your club would send a similar
team to the club you are partnering with. Thus, each club and each evaluation
team would experience the service analysis both as an evaluator and a recipient of
an evaluation.
Often, simply the freshness of observing the service practices of another
club aids in the improvement and development of a club’s service initiatives. The
task of critiquing another club’s operation also inherently causes evaluators to
114 Chapter 3
analyze their own operation more closely, adding another, more personal level of
assessment.
The idea that underlies the entire service analysis process is that excellent
member service is both the foundation for and the focus of any club’s efforts.
Therefore, analyzing present service levels is an important tool for maintaining or
enhancing the club’s service to members.
Another common method for conducting a service analysis is engaging the
services of a consultant who specializes in this work. A qualified outside consul-
tant can bring both efficiency and a wealth of experience and ideas to the task,
because of his or her experiences in observing and working with other clubs.
A Construct for Effective Club Leadership

There are many books and theories out there on how to become an effective busi-
ness leader. One construct for effective leadership in business is as follows:
•• Use objective measures
•• Create and establish goals
•• Report
•• Evaluate progress
•• Reward
We will take a closer look at each of these leadership elements in the following
sections.
Use Objective Measures

We often speak in general business conversation about the importance of using
objective measures. Their importance has already been emphasized several times
in this chapter. Objective measures are quantitative—that is, they lend themselves
to counts and times. Again, it is a good idea to count everything you can count, and
time everything you can time.
Clubs, as well as other service-oriented organizations, have a tendency to cre-
ate goals, report, evaluate, and reward or punish based on subjective measures.
Subjective measures are imprecise and deal mostly with feelings unsupported
by facts. While there is a place in club management for subjectivity, managers
should support their conclusions and initiatives with objective measures when-
ever possible.
Examples of quantitative (times and counts) and qualitative measures are
shown in Exhibit 9. As you can see, quantitative measures are much more precise.
Create and Establish Goals

Creating goals for the club should flow from the strategic plan. Whether short-,
mid-, or long-term in focus, goals should be written in a manner that enables them
to be measured objectively in quantitative terms (timed or counted). A subjective
goal, such as “We will improve member service in the mixed grill,” is written in
Exhibit 9 Quantitative versus Qualitative Measures
Quantitative Measure Qualitative Measure
Covers 576 covers We were really busy
Memberships 50 net new members by the end We need a lot of members

of December quickly
Overseeding 400 pounds of annual rye per acre Heavy overseeding
Color 267 flats of annual color around Brighten up the entry with
the front entrance some flowers
Labor 76% labor on Saturday a la carte We were heavy on labor
dining over the weekend
Pro Shop We do sales of $1.25M annually, We do pretty well there—
an average inventory of $200K, it’s a good source of
and avg COS of 68% income for the club
imprecise or incomplete terms. On the other hand, a well-written goal includes the
five critical characteristics of a SMART goal: it is specific, measurable, acceptable,
realistic, and time-bound.
Specific. A specific, well-written goal will answer several questions, which them-
selves are a guide for writing the goal. Consider the service in the grill:
•• Who will be responsible? The grill staff.
•• What is the goal? Lower the service contact time at the grill lectern from 120
seconds to 30 seconds.
•• Where will the effort be focused? The grill.
•• When will the effort take place? Between January 1 and June 30.
•• Why this goal? Members rate promptness of service upon arrival at the grill as
poor.
•• How will we accomplish this goal? Meeting, greeting, and seating will become
a high priority for servers. If necessary, we will add a dedicated meeter, greeter,
seater position to accomplish this goal.
•• Who cares whether we do this? The members who dine in the grill.
Measurable. A goal should include an objective method for evaluation. For exam-
ple: There is a semi-annual member survey, a scalar range in place (“1” being “Poor”
and “5” “Excellent”), a discrete question (47) which addresses this specific issue, and
historical data (past survey responses) against which we can measure improvement.
Acceptable. Ensure that the goal is agreed upon by those who will be responsible
for achieving it. To continue with the grill example: The department manager has
met with the grill employees, has discussed the past ratings, has related the ratings to
116 Chapter 3
the strategic initiative of service improvement, and has asked the staff members what
they think they can do to improve.
Realistic. A goal may be difficult, but it must be achievable. For example: We have
established that an average rating that moves from “Poor” to “Meets Expectations”
is realistic.
Time-Bound. When is the effort to reach the goal going to begin and end? The
effort will occur over a six-month period, January 1 through June 30.
Putting It All Together. Effective goal-setting keeps the club’s strategic initiatives
in mind, isolates a problem or opportunity, and suggests a goal or a plan for solv-
ing the problem using objective measures, as follows:
Strategic Initiative:
We will improve member service in the mixed grill by 25 percent within two
years.
Problem:
We currently average 120 seconds to meet and greet a member at the grill lectern.
Members perceive this as poor (rating the club at “1” on a 5-point scale).
Goal:
Between January 1 and June 30, we will lower that average “meet time” to
30 seconds and will measure our improvement, as perceived by the members,
through question 47 on the next semi-annual survey, which addresses “prompt-
ness of service” upon arrival at the grill. In lowering the service contact time, we
will consider the goal achieved if we score an average of “3” (“Meets Expecta-
tions”) or better on the next semi-annual survey.
Method:
We will institute a policy whereby meeting, greeting, and seating will become
a high priority for servers. If necessary, we will add a dedicated meeter-greeter-
seater position to our staff to ensure that we achieve the goal.
Report
Reporting is an oral and written managerial function requiring succinct updates
regarding progress toward goal achievement.
At times, the reporting function is clouded by dense and flowery descriptions
(subjective reporting) and is not supported by facts and figures (objective report-
ing—counts and times). This is particularly the case when the news being reported
is less than desirable. In such instances, the person reporting tends to emphasize
generalities and gloss over unpleasant details.
Objective reporting, on the other hand, includes general descriptions to set
the tone of the update, whether positive or negative, but quantifies these descrip-
tions by providing objective details. These details include counts and times, and
explanations of how those measurements relate to goals and objectives and, ulti-
mately, to the department’s strategic plan, as well as, if appropriate, to the overall
strategic plan of the club.
To highlight the difference in reporting methods, consider this example of a
subjective report at an operational meeting for a food and beverage department:
We had a great turnout for the Mother’s Day brunch in the grill. The weather
was pleasant; we did a good job meeting, greeting, and seating; and everyone
raved about the food and the service. The members would really like to have more
functions like this.
This report is so general it could have been copied from the previous year’s
report, with only an update on the weather. Unfortunately, a large percentage of
reports at clubs are delivered in this manner. Such reports are not very useful, and
club general managers should try to put an end to this type of reporting. Objective
reports are much more useful. An objective report about that same meeting might
read as follows:
We had a great turnout for the Mother’s Day brunch in the grill. We forecasted
225 covers and served 247. The weather was sunny and 75 degrees, which brought
more members out than we expected. We added a dedicated meeter-greeter-seater,
who did an effective job of helping to achieve our 30-second “meet time” goal.
Review of the security camera tape at the grill entrance showed an average of 28
seconds for meeting-and-greeting, so we are showing good progress. Review of
member comment cards showed an average score that was 10 percent higher than
for the same function last year. Generally, the comments from members suggest
that both the food and the service were very good, and that they like the option of
either buffet or menu service.
Objective reporting takes a little additional time, but it delivers a much more
meaningful message. The objective measurements included in the second report
allowed other managers at the meeting to get a better sense of the success of the
function.
Effective club GMs/COOs should ask their direct reports to always use objec-
tive measurements in reporting, especially when reporting on progress toward
goal achievement. Furthermore, GMs/COOs should consult with their managers
and have everyone agree on a report format, to help ensure consistent reporting.
The reporting function is not the place to be creative.
Evaluate Progress
Evaluation is the managerial review function. There are two basic types of evalua-
tion that managers must engage in: employee evaluations and club or department
evaluations.
Employee Evaluations. Employee evaluations are often referred to as performance
reviews. Formal performance reviews should take place at least semi-annually;
quarterly is preferable. An annual review is not frequent enough for the person
being evaluated to improve areas of concern in a timely fashion, or to receive
timely encouragement or appreciation.
Informal employee evaluations should be conducted almost weekly or
monthly. The size and complexity of the club hierarchy, the personalities of the
supervisor and the employee, and the personality of the club itself all help dictate
how often these reviews should occur. Informal evaluations may occur between
118 Chapter 3
employee and supervisor while walking the employee’s work area during an
informal inspection. The employee, no matter the level, needs to get reinforcement
from his or her supervisor, whether department head, GM/COO, or club presi-
dent, on a regular basis. Regular evaluation helps an employee realize that his or
her contributions to the club are important and that the supervisor is interested in
the employee and the challenges of the employee’s particular work area.
Club or Department Evaluations. Club managers normally measure operating
results against budgets in order to evaluate how a club department or the club as
a whole is doing. Typically, each month after the financial statements or variance
reports come out, the club’s department heads meet with the GM/COO, who facili-
tates the process of reporting departmental results. An explanation is provided
for positive or negative variances compared to budget, and for whether such vari-
ances are valid variances or simply the results of timing issues.
These monthly variance reports lead to more formal quarterly meetings,
which may include the club’s board. The quarterly reviews usually include reports
on what measures have been or will be taken in response to negative variances to
help the club get back on track to meet budget. Positive variances, which are nor-
mally simply cause for celebration, should be scrutinized as well, since they too
were not anticipated in the budget. Quarterly figures help generate the year-end
figures that signal a successful or unsuccessful year.
During a quarterly variance meeting, the director of golf course maintenance
might offer this sort of subjective report:
During August, we lost several maintenance work days due to thunderstorms.
We had to send the crew home early a lot. We also lost some effectiveness in
chemical applications during the month for the same reason. We may need to
do some re-application. We had to load up on overtime to get the grass scalping
in preparation for over-seeding done because of the rain. All-in-all it was a hot
month and there was a lot of member play. Things look pretty wilted and beaten
up due to the heat. I think that our numbers, while a bit out of whack for the
month, are more related to timing than to actual variances, and we should be
okay and back in line when we look at the quarter as a whole.
An objective report is connected to measurements (times and counts):
During August, we lost 400 employee work hours due to thunderstorms. We
had to send the crew home early 11 times, so we lost 20 percent of our avail-
able work hours for the month, which meant that much of our ability to keep up
with planned work was lost. We also lost what we estimate to be approximately
50 percent of the effectiveness in the chemical applications during the month,
for the same reason. We may need to do some re-application, which will cost an
additional $4,000 over budget. The rain had three effects on the golf course main-
tenance: (1) we were unable to work when it was raining, (2) the wetness cut back
on our ability to get out on the course, and (3) the rain combined with the heat
made the Bermuda grass grow at about twice its normal rate. As a result of these
conditions, we had to add $6,000 (a negative variance impact) to payroll budget
in overtime to get the grass scalped in preparation for overseeding. All-in-all it
was a hot month (the average temperature was 93 degrees versus the normal 87
degrees), and there was a lot of member play when the course was open, due to the
pent-up demand created by the rain days when we were closed, so it was difficult
to work maintenance in around the member play (the pro shop reported that daily
play on the days that we were open was up 38 percent). Because of the heat, things
look pretty wilted and beaten up, which is normal for this time of year. Our num-
bers, when adjusted for overtime and re-spraying, were $89,000 for the month,
versus the budget goal of $78,000. We will increase the time between our repeat
frequencies on some maintenance items so we can get back on budget by October.
Overall, we hit a few speed bumps, but are doing fine.
Financial results are one of the key elements in measuring the success of a
club’s performance. However, the financial success of the club is not the only ele-
ment worth measuring. A second key element which should be measured is accom-
plishment of goals and other strategic initiatives. Financial results are directly
determined as a result of counts—objective measures. Similarly, strategic initia-
tives can and should be measured through counting and timing. Counts would
indicate how many times a task was accomplished. Times would represent how
long it took to accomplish the task or project and would help determine whether
it was done according to the established timeline.
An example of a subjective evaluation—that is, one not tied to measurable
results—of a strategic initiative is as follows:
This year, the club’s front nine greens were successfully stripped and rebuilt.
After many years of mutating greens, which became predominantly Poa Annua
from Bent, the rebuilding of the greens project began in the spring and re-opened
in the fall. The Poa Annua had taken over and ruined the greens. Members were
really unhappy.
There were a number of normal construction problems during the project,
but, all-in-all, I think we ended up pretty much opening on time and ending on
budget.
On the other hand, an example of an objective measurement of a strategic ini-
tiative includes direct measurements, as follows:
This year, the club’s front nine greens were successfully stripped and rebuilt.
After fifteen years of mutating greens, which ultimately reached 75 percent Poa
Annua mixed with the original Penncross Bentgrass, the rebuilding of the greens
project began March 1 and ended with the re-opening, on budget and on sched-
ule, on September 1.
Mutation of the greens to predominantly Poa Annua had progressively
made the putting surface bumpy, less true, and less predictable. During early
spring, the seed heads grew tight and low, which were unsightly and which exac-
erbated the bumpy conditions. During the hotter weather of summer, it was not
unusual to observe bare spots in the greens as large as 18 feet in diameter—as
Poa Annua often withers and dies during extreme heat. These conditions had
caused increasing levels of dissatisfaction among golfers at all levels.
The club had strategically planned for the rebuilding beginning five years
ago, so we were able to properly anticipate, bid, stage, and reschedule events for
the six-month project. The process included stripping contaminated sod down to
the soil mix, roto-tilling in fresh soil amendments, re-establishing the original
contours and surface design, and seeding with a newer variety of Bentgrass.
This first phase took the allotted 30 days. After the destruction and prep stages,
the greens were covered with clear plastic and grown-in for 60 days (April and
May). On June 1 the plastic was removed, and the young grass was cultivated
for another 90 days (June, July, and August).
120 Chapter 3
A “soft” opening was held on September 1, with normal play resuming
September 15. A survey of the members last November rated the front nine
greens a two (on a 10-point scale, with 10 being “best”). A follow-up survey this
November (the new nine had been open approximately 90 days) rated the front
nine greens a 10. Budget: $770,000. Actual: $728,000. Projected time: March
1–August 31. Actual time: March 4–August 31.
As you can see, an objective report contains much more factual information,
therefore making it much more useful to club managers, both now and in the
future.
Reward
Rewarding usually means creating incentive bonus programs, which can be quite
effective, especially at management levels. At hourly levels, a combination of
smaller incentive bonuses combined with preferred scheduling and other non-
monetary bonuses work even more effectively than one-time monetary rewards.
Whatever the reward system used, rewards should be handed out on the basis of
objective measures.
Time Management
Time management simply means putting time to its best possible use. But when
managers consider time management more deeply, it becomes apparent that it is
not time, but themselves, that they must manage. Club managers like to think they
are masters of their own time; in reality, most are slaves to events. While most club
managers recognize the importance of time management, they can become side-
tracked by unexpected events or crises that happen during the day. Running from
problem to problem is not effective time management.
Leaders do poorly when it comes to time management mainly because they
do not anticipate how their days will actually be spent. Throughout the day they
become bogged down by interruptions. Many club managers give up so much
control over their time and work space that they constantly manage in an interrupt
mode—which, in addition to being an inefficient use of management time and tal-
ent, is very stressful.
Improving Time Management Skills

Time—or, more precisely, the lack of time—is indeed the source of many lead-
ers’ problems. But the solution is not finding ways to squeeze a few extra hours
out of the day. Rather, effective executives must change the way they think about
time. By pushing themselves to accomplish more, many leaders actually become
less productive, and can become prime targets for health problems and just plain
unhappiness. Leaders should analyze where their time actually goes, then cut
back or eliminate the unproductive demands on that time.
To become more effective, leaders can adopt a three-pronged approach to
improving their time management skills:
1. Breaking bad time management habits
2. Learning to delegate
3. Eliminating interruptions
Breaking Bad Time Management Habits. Few of us recognize our bad habits
because we are not consciously aware of them. Here are a few of the most note-
worthy bad habits related to time that haunt club managers:
•• Procrastination. The human failing most closely associated with poor time
management is that of procrastination. Everyone procrastinates to some
extent; there is always something one would rather do than a distasteful task.
Procrastination is a problem to be recognized and faced. Club managers can
fight their tendency to procrastinate by following these guidelines:
1. Break up a difficult task or project into smaller pieces.
2. Begin. Don’t worry about having to begin at the beginning—just get
started.
3. Start whether you feel like starting or not.
4. Work in spurts of no more than twenty to thirty minutes at a time. Walk
through operations, then get back to work.
5. Do not put off your most difficult tasks. Difficult tasks tend to get more
difficult, not less, over time.
6. Schedule an “I’m going to work on my task/project” day and keep the
appointment.
7. Edit. If you get stuck, don’t quit. Instead, go over what you have done
and refine your work.
•• No closure. Another bad habit practiced by managers is not making steady
progress toward completing a task once they begin it. The longer a task is set
aside, the more time it will take for managers to refamiliarize themselves with
it again when they resume work on it. This not only wastes time, but in many
instances affects the quality of the manager’s work.
•• Ineffective communication. Leaders communicate with their staffs in many
ways: extemporaneous verbal directions, scribbled notes, e-mail, and elabo-
rate lists and charts. Whatever communication strategy is most appropriate, a
leader should take time to ensure expectations are explicitly clear so that staff
members will know what is expected of them.
•• Inability to say no. Leaders should prioritize their work and distinguish
between the important issues that they must handle and the squeaky-wheel
issues that occur during the day. Often, managers will over-commit to help
others, only to find themselves hopelessly behind in their own work. When
managers cannot simply say no, they should try compromising. Saying, “Yes,
but not now” may buy the manager the amount of time necessary to more
efficiently work the request in with other tasks and projects.
•• Time leaks. Leaders should be relentless in their quest to manage smarter.
That means identifying and plugging time leaks. True leaders, for example,
avoid micro-managing or paying excessive attention to low-yield projects.
122 Chapter 3
Learning to Delegate. Throughout the chapter the importance of effective delega-

tion has been emphasized. Before delegating tasks, leaders must identify where
their time is being spent and which tasks could be performed just as well by some-
one else.
Why should leaders delegate? Here are a few of the primary reasons:
1. Delegation gives the manager more time for thinking and planning.
2. The person closest to the activity should be better able to make decisions
about it than a higher-level supervisor who is removed from it.
3. Delegation encourages staff members to take the initiative and make effective
use of their skills. This can lead to improved staff morale.
4. Delegation tends to reduce decision time, as it eliminates the need for every
decision to move up the chain of command and back down again.
5. Delegation helps subordinates develop professionally by permitting them to
make decisions and apply their knowledge and skills.
However, managers must realize that delegation involves the transfer of
authority and decision-making, but not of actual responsibility. The manager is
still ultimately responsible for what goes on during his or her watch or in his or
her area.
Delegation is not an “all or nothing” situation. There are different levels of
delegation, and a leader must determine to what degree he or she wants to del-
egate authority. Here is a list of some of the various degrees of delegation:
•• Investigate and report back. The subordinate gathers facts for the manager. The
manager then takes appropriate action.
•• Recommend action. The subordinate recommends action based on fact-finding
or specialized knowledge. The manager evaluates the recommendation and
takes appropriate action.
•• Advise of action planned. The subordinate makes a decision based on the inves-
tigation and tells the manager what he or she would like to do. The manager
evaluates the decision and approves or disapproves the decision before any
action is taken by the subordinate.
•• Take action; advise of action taken. The manager gives the subordinate control
over the decision and the authority to act, and simply requests to be kept
informed as to the action taken.
When delegating, the leader should be aware of certain limitations or rules
of delegation. First, the delegating manager must follow through and find out
the results. This is important not only for the task itself but also for the manager’s
understanding of subordinates’ capabilities.
Delegating managers also need to set objective standards of performance so
that subordinates can track their progress toward completing the task. Managers
must also develop ways by which to monitor subordinates’ progress. Such moni-
toring may take the form of written reports or discussion in meetings.
Managers who delegate relinquish many operational tasks. Although this
gives the manager more time for truly managing, the manager is still responsible
for the smooth running of the club. By setting standards of operating perfor-
mance, the manager can monitor the club and be alert to any deviations from
the standards.
Eliminating Interruptions. Member satisfaction and retention are the primary
goals of most club business plans. However, for many clubs, actual work effort
devoted to member satisfaction and retention falls far short of goals. The primary
reason for this lack of follow through stems from one of the ongoing dilemmas of
management: unexpected interruptions and activities (usually due to challenges
that arise during day-to-day club operations) often push aside work on long-term
club goals. Simply put, the day-to-day running of the club gets in the way of the
club’s primary goals and objectives.
What can be done to eliminate frequent and unproductive interruptions in
the workday? A well-trained assistant is the manager’s first and most effective
line of defense. Telephone calls are still listed by leaders as being the most serious
interrupter of all. Managers typically spend from one to three hours a day on the
phone. By screening calls, a well-qualified assistant can prevent many of these
interruptions for the manager. Since emergencies do arise occasionally, the assis-
tant should be able to distinguish important calls and be aware of key individuals
the manager should speak with immediately. Another option is for assistants to
take messages or give callers the alternative of using the manager’s voice mail,
thus allowing managers to fit return calls into their own schedules.
Another serious interrupter in the leader’s workday is the unscheduled meet-
ing or walk-in visitor. Often, such meetings with club members and department
managers take up tremendous amounts of time, leaving the leader to wonder
where the day went. Consequently, these interruptions must be reduced to the
point where the manager is back in control of the workday. Again, an assistant can
carefully screen visitors and schedule meetings with the manager at more con-
venient times—always being aware that a manager cannot appear disconnected
from the club members or the staff. This effort is far easier to control with staff than
with members. If the visitor insists on seeing the manager, the manager should
come out of the office and meet the visitor on neutral ground, thus preventing the
visitor from sitting down in the manager’s office and tying up an extended period
of time.
While an open-door policy is valuable for promoting open communication,
the leader must have some uninterrupted work time. Many club managers find
it beneficial to have a second office or a hidden retreat at the club where they can
work uninterrupted for extended periods of time. Although a second office is not
common in clubs, where space is usually at a premium, a desk or a table in the attic
or basement of the clubhouse would serve the purpose. If setting up such a modest
out-of-the-way workspace at the club is not possible, the manager might consider
spending a morning or two working from home when necessary.
Meetings
Scheduled meetings can account for as much as one-third of a leader’s day. Meet-
ing time can be reduced significantly by using the following strategies:
124 Chapter 3
Understanding and Facilitating Phases

of Team Development
Leaders must often put together and/or work with teams. It is therefore important for
leaders to be familiar with how teams are formed and how they function. Team mem-
bers experience a series of five normal phases as they develop from newer and less
effective to mature and more effective in performing their duties. We will examine
and discuss the different phases of team development in the following paragraphs.
First, let’s develop a more comprehensive understanding of what is meant by
the term team. In the club context, “team” may mean a small work team (the bag
storage room staff) or an entire department (the golf pro shop staff). For this dis-
cussion, the word “team” could even mean a committee (such as the membership
committee) or a board (such as the board of trustees). The concepts are so similar
that they relate and apply to both paid staff and members volunteering at the club.
A team may be ongoing, such as the staff in the club’s golf pro shop, or it may be
formed for one particular purpose and then go away (an ad hoc team), such as a
team planning the club’s 100th anniversary. Finally, a team may be specialized,
whereby the team’s makeup is singularly directed (such as golf course maintenance)
or it may be cross-functional, whereby the team’s makeup may be from a variety of
departments and/or interests (such as the golf pro shop, golf course maintenance,
and food and beverage areas all being involved in planning and executing the club’s
member-guest tournament).
The stages of team development are forming, storming, norming, performing,
and disbanding. Each stage of team development is sequential, so development
goes in order. If a major change occurs within a team, it could set the team back by
one, two, or more stages until it can re-establish itself and achieve the characteris-
tics of a particular stage and proceed to the next one.
Forming. Forming is the initial stage. During this time, team members become
acquainted, display a positive outlook for the work to be done, test and feel their way
along, and seek to understand the details of their mission.
Storming. As the team becomes more established, a somewhat chaotic period
begins as members vie for leadership and influence. During this time, there is little to
no formalized group structure, which leads to the formation of cliques and coalitions.
The focus is on team dynamics instead of team accomplishment. Despite the chaos,
as team members work their way through these choices and decisions, interaction
and cooperation emerges. Cooperation must begin to emerge in order for the team
to progress to the next stage.
Norming. When the storming stage settles down, team members begin to focus
on achievement by establishing rules of conduct, setting policies, and agreeing upon
goals and objectives. The peer culture becomes positive, and the team becomes
cohesive in working together toward a common goal. Most club departments, commit-
tees, and boards never move past the norming stage.
Performing. Performing is the most highly developed phase of team develop-
ment. Picture one or two of the most evolved and highly effective teams functioning
within your club, and that is what the performing stage looks like. All clubs would like
to have more of these teams! Performing teams develop over time. Often, it is slow
and steady improvement over a long period of time and a commitment to total qual-
ity management (TQM), continuous quality improvement (CQI), and other process
improvement systems that allow excellent teams to emerge. Performance team

members work well together in what may appear to be a seamless system of mutual
interdependence. Members step in to assist each other without being asked. They
know what needs to be done and they are professional in their approach to accom-
plishing the team’s goal(s).
Disbanding. The final stage (and the only one that can occur at any stage
of team development) is disbanding. Disbanding can come about as a result of a
normal process (the team’s work has been completed) or an abandonment of the
goal or mission (higher management or the board has decided to move in a different
direction). Disbanding can happen with ongoing teams, such as when a department
or sub-department like clubhouse grounds maintenance is outsourced, but most
often occurs with ad hoc teams, such as a team formed to oversee a club’s 100th
anniversary celebration. Members can experience a variety of feelings as the team
disbands: relief, satisfaction, disappointment, reluctance to end the team, and a host
of other emotions as the team comes to an end.
•• Each time a meeting is held, a record of the time spent per person and the
hourly salary of the persons attending should be kept. This can be tabulated
to determine the total cost of the meeting and compared to the actual results
or outcome of the meeting.
•• Be aware of meeting attendees with compound agendas. When a person has
multiple issues, a list-making strategy can be employed. Taking notes encour-
ages speakers to be clear and specific. Ending a rambling conversation posi-
tively, yet firmly, is a critical skill for leaders to develop.
•• Meetings often are held on an open basis in order to receive as much input as
possible. However, this can cause meetings to become aimless and unstruc-
tured chat sessions instead of information forums. To reduce the chance of
meetings getting out of control, the leader and staff must be well prepared in
advance. For example, the club manager can set up a detailed meeting agenda
to follow, suggest a time limit for speakers, and assign persons to comment
on certain topics.
The manager should also be aware of other peoples’ time. How often have
you been asked to attend a meeting that wasted your time? Often a copy of the
minutes is as informative as the meeting itself. Keep this in mind whenever you
schedule a meeting. Require attendance only of those who will be contributing to
the agenda and leave it open for others to attend only if they would like to.
Paperwork
Paperwork is another problem faced by all leaders. One day’s absence from the
desk can result in a stack of correspondence that takes two days to sort and
answer. Club managers can eliminate a large portion of wasted time by reviewing
all incoming paperwork and organizing it into three categories: action, reading,
and discarding. When going through the first group (action category), the man-
ager should respond to each note and take action before the next one is read. The
126 Chapter 3
second group of notes (reading category) should be separated into two piles: those
that require forwarding and those that should be filed. The third group (junk mail
and other unwanted correspondence) should be discarded. The goal is to keep the
number of times you handle each piece of paper to a minimum.
Effective Writing. Sometimes reports submitted to the leader are of poor quality,
are too lengthy, and need to be re-written. Some managers and department heads
spend as much as 40 percent of their time just writing. Writing should be a tool
for greater productivity, but is often anything but. Unfortunately, most managers
waste time producing poorly written, laborious documents that waste even more
time for their readers.
Here are some strategies that can help alleviate the leader’s burden of revising
shoddy, long-winded reports:
•• Provide report guidelines in advance. Help ensure that those who are prepar-
ing reports know what you expect in terms of format, detail, and deadlines.
•• Set an atmosphere of excellence. Make it clear that you expect smart, simple,
and short reports.
•• Have the person responsible refine the report if it is not up to expectations.
•• Make sure people are not over-committed. Club staff people have a tendency
to say yes to every demand. Over-commitment leads to unfinished and sloppy
work.
•• Give, or bring in an expert to give, a one-day seminar on how to write effec-
tive memos and reports.
Junk E-Mail. Once a leader is on one e-mail list, the junk e-mail seems to increase
exponentially. Setting up electronic rules, filters, and programs to help organize
e-mail, or having an assistant go through the e-mail and eliminate the junk, can
help alleviate this problem. Another method for getting e-mail under control is to
use different forms of your name or e-mail address when subscribing to publica-
tions, ordering from vendors, and conducting other electronic correspondence.
This will help quickly identify the source of incoming e-mails so you can more
easily sort them and rank them in terms of importance.
Personal Leadership
A personal leadership plan can provide guidelines to help ensure effectiveness
and success in both your personal and professional life. Conducting a personal
leadership analysis helps you get in touch with who you are as a person. Deter-
mining who you are is important in determining how you will be as a leader and
club manager, because personal values influence how you lead and manage on
the job.
Primary Values
Creating a list of statements or descriptors about yourself and your values is an
effective way to gain insight about who you are and what you stand for. “It is
important for me to maintain a balance between work and home in my life” is
an example of this type of descriptor. As you begin to create a list of descriptors,
don’t worry about ranking the descriptions. It is more effective for the creative
process to simply write statements; you can assign importance later. You should
aim for creating a list of at least five descriptors during this exercise. This is often
an uncomfortable experience for club managers. Part of the reason for this uneasi-
ness is that they are used to on-the-job doing rather than thinking, envisioning, and
reflecting—especially about themselves.
Primary Strengths
In the next step of the personal leadership analysis, prepare a list of your primary
strengths—what you are good at doing. “I am adept at quickly understanding
the gist of any operational situation” is an example of a primary strength. This
should be a list of those major qualities that drive your success as a person and a
club manager. Again, you should aim for creating a list of at least five descriptors
during this exercise.
Primary Individuals and Experiences

Whether you realize it or not, you have been molded and shaped, to a large extent,
by key people and events in your life. To better understand who you are, it is
important that you identify and reflect on people and events that influenced you
in a major way. Positive examples are certainly important to list—and will likely
be the easiest to recall. However, negative examples molded and shaped you as
well, so list those, too. You should aim for creating a list of at least two individuals
and two experiences during this exercise.
An example of a positive individual:
Coach Tommy W. “Wimpy” Townsend was an important and influential person
in my life. When I was a young, aimless ninth grader, he came to me and asked
me to be on the basketball team. He taught me the importance of self-sacrifice
for the good of the team. Coach Townsend served as a positive role model for me.
An example of a positive experience:
Serving in the U.S. Marine Corps was an important and influential event in my
life. At 19 years old, I lacked a strong sense of honor, discipline, and purpose. The
Marine Corps taught me the importance of those characteristics and qualities.
Beyond those, the USMC also taught me the importance of creating and achiev-
ing measurable goals and objectives.
An example of a negative individual:
As a young club manager, I reported to a general manager who was a micro-
manager, an attention hog, and a drug abuser. The two years I reported to this
GM were miserable. However, that time taught me several positive lessons: You
cannot keep secrets from those who report to you in the organization—you must
always assume that what you are doing might as well be printed on the front
page of the club newsletter. Also, that experience taught me to respect others
and trust them to do their work without unnecessary meddling. I also learned
to celebrate others’ accomplishments and give them credit for doing a great job,
instead of trying to steal the credit for myself.
128 Chapter 3
An example of a negative experience:

I worked on a farm for one summer when I was a teenager. The farmer told me
that I would have a great learning experience and get a great education because
I would be working all summer with a Ph.D. Later, I realized that his “PHD”
was a post-hole digger. That summer was the most physically exhausting three
months of my life in setting fence posts, stretching barbed wire, planting trees,
and feeding ducks. However, it was a strategic turning point for me because
it reinforced the importance of getting a good education. That summer, I set a
number of educational goals to help ensure a better future.
Personal and Professional Goals and Objectives

Managers report that setting goals and objectives is an excellent way to develop a
roadmap for where they are going and where their energies should be focused. In
developing goals and objectives, however, you should remember that they should
be written in pencil—that is, they should be flexible enough to be changed as cir-
cumstances change.
Consider the goal of a tourist to drive from Miami to Boston. His or her objec-
tives are the cities in which he or she stops each day along the journey—the first
day calls for a stop in Savannah, Georgia; the second in Washington, D.C.
As a tourist, if you mark destinations on your map in pen, it becomes very
difficult for you to change your mind. However, if you draw the route in pencil,
you may easily change your mind and drive the first day to Myrtle Beach, South
Carolina.
Writing goals in pencil instead of pen is symbolic, of course. The point is that
your goals and objectives are guidelines. It is important to know where you are
going, but it is also important for you to be able to change your mind. The idea is
to create your future instead of allowing circumstances to dictate your path.
For example, assume a certain food and beverage director hates his job at the
club. He had grown up in the surrounding neighborhood, had started working
part-time at the club as a teenager, and after high school had earned a position
in the dining room. From there, he moved to the bar, then supervised the dining
room, and was recently promoted to food and beverage director. Asked why he
hated his job, he answered that he never wanted to work in food and beverage,
but it was the hand life dealt him. That food and beverage director was passive in
directing his future. He took opportunities, but only because they were easy and
accessible.
On the other hand, consider a college senior who takes a more assertive
hand in creating her future. She majored in hotel and restaurant management at
a university on the west coast and accepted an internship at a prestigious club in
Atlanta. Apprehensive about leaving her home and friends, she was still excited
to have the opportunity to meet new people and learn new ways of doing things.
After the internship, she plans to get at least two years of intensive food and bever-
age experience at a great club in the East. Then she wants to head back west as an
assistant manager at a full-service country club located in southern California. She
thinks that if she can stay on track, she will have a chance to become a GM/COO at
a small club, preferably in California, Arizona, or Nevada, within ten years.
She has a clear plan, long-range goals, and interim objectives. As long as she
stays flexible—writing with a pencil instead of a pen—to take advantage of unex-
pected opportunities, she has certainly planned a great future for herself.
Five-Year Personal Goals. Think for a moment about personal goals that you
would like to achieve over the next five years. What is important to you? What do
you see yourself doing? Where do you see yourself living? What will life be like
for you five years from now?
Take a shot at writing down the two or three key things that you likely have in
the back of your mind that you would like to accomplish personally. You should aim
for creating a list of at least two personal five-year goals, accompanied by objectives.
After writing down two or three key personal goals that you would like to
accomplish, ask yourself how you would go about achieving them. Creating goals
is extremely important, but writing a few key statements about objectives—interim
goals—helps move you toward implementation. Also, be sure to write down how
you will measure your progress toward achieving these goals—using objective
counts and times.
As with goals for a club, personal goals should answer several basic ques-
tions. Here is an example of a personal five-year goal:
What?
I will permanently lose my excess body fat. My ultimate goal over five years is
to lose 200 pounds.
When?
I will successfully lose all 200 pounds over a five-year period beginning on June
1, 20XX, and ending May 31, 20XX. By the end of each year, I will have lost
40 pounds. By the end of each month, I will have lost an average of 3.5 pounds.
Where?
Regular outside workouts on the trail by the river, the state park, and the 24-hour
fitness gym.
Why?
Not only am I tired of being fat, but decreasing my unhealthy weight will also
increase my life expectancy and quality of life, and improve other health-related
indicators (blood pressure, heart rate, and cholesterol). This is important to me,
my wife, and my children.
How?
I will begin by getting a physical exam from my doctor. Pending her comments, I
will hire a personal trainer from the 24-hour gym, as well as seek assistance and
guidance from a local nutritionist referred by my doctor. I will create exercise
plans and workouts that will change over time. The workouts will be balanced
between cardio and weightlifting.
Who cares?
I care, my spouse cares, my children care, and even the people at the club care.
They want to see me become a better, healthier, and happier person who lives the
life he has the potential to live.
130 Chapter 3
Leadership Styles Among Club Managers

MCM Monograph: Dorothy Donovan, MCM
Management expert Ken Blanchard believes that “there is no one best leadership
style for all occasions. Instead, the most effective leader is the person who has the
ability to use different leadership styles; one who can assess a situation requiring
leadership behavior and decide which leadership style is best for that particular
situation; and who can then modify or adapt his or her leadership behavior as
required.”
Dottie Donovan, MCM, researched the types of leadership styles that club
managers most often practice. She used Blanchard’s Leader Behavior Analysis II
Questionnaire, which presents situations to managers and places them into four
categories based on their responses.
The questionnaire defines the following styles:
1. Directing: High Direction Behavior/Low Support Behavior (S1)
The leader provides specific direction about what to do and how to do it. He or
she closely tracks each individual’s performance and gives frequent feedback
on how well they perform each step necessary to complete the task.
2. Coaching: High Direction Behavior/High Support Behavior (S2)
The leader explains why something needs to be done, solicits suggestions,
praises progress, and continues to direct task accomplishment. In this case,
the leader is focused more on the end result than the process required to get
there.
3. Supporting: Low Direction Behavior/High Support Behavior (S3)
The leader and the individual make decisions together. The role of the leader
is to facilitate, listen, draw out, encourage, and support.
4. Delegating: Low Direction Behavior/ Low Supportive Behavior (S4)
The leader empowers the individual to act independently and provides the
appropriate resources to accomplish the goal or task.
Donovan found that private club managers show an overwhelming preference
for a supportive leadership style: one where the leader provides a high amount of
support and relatively little direction. Among club managers, the most common style
was that of the supporting style—low direction and high support. The least common
style was the directing style—high direction and low support.
Primary Leadership Scores

Style Number Percentage
1 (High Direction/Low Support) 2.0 1.54%
2 (High Direction/High Support) 46.0 35.38%
3 (Low Direction/High Support) 77.5 59.62%
4 (Low Direction/Low Support) 4.5 3.46%
130 managers 100%
Note: Many managers showed preferences for more than one style.
Donovan’s study also identified the styles managers are weakest on.
Developing Leadership Styles

Style Number Percentage
1 (High Direction/Low Support) 69.50 53.46%
2 (High Direction/High Support) 17.20 13.23%
3 (Low Direction/High Support) 2.10 1.62%
4 (Low Direction/Low Support) 41.20 31.69%
130 managers 100%
Significantly, Style 1 was the leadership style most in need of development, while
Style 3 was almost insignificant.
Source: An Exploratory Study of Leadership Styles Among Club Managers, by Dorothy S. Dono-
van, MCM.
Five-Year Professional Goals. Think for a moment about professional goals that
you would like to achieve over the next five years. What is important to you? What
do you see yourself doing? Where do you see yourself living? What will life be like
for you five years from now?
Write down the two or three key things that you would like to accomplish
professionally. You should aim for creating a list of at least two professional five-
year goals. After listing your key professional goals, ask yourself how you will go
about achieving them.
Here is an example of a professional five-year goal for a club manager:
What?
I will concentrate on taking more of the educational programs offered by CMAA.
My ultimate goal is to achieve the Certified Club Manager (CCM) designation.
When?
I will successfully achieve my CCM designation over a five-year period begin-
ning on June 1, 20XX, and ending May 31, 20XX.
Where?
I will attend programs locally, regionally, and nationally as necessary to meet
my goal.
Why?
I want to obtain my CCM as a professional goal. The CCM designation is the
most recognized level of expertise in the club management field.
How?
By the end of each year, I will have attended six chapter meetings and education
sessions, participated in one chapter workshop, and attended the CMAA World
Conference. Every other year I will attend one of the required BMI programs. By
the end of year four, I will have assessed any education-point deficit areas and
132 Chapter 3
will concentrate on tying up loose ends. By November of year five, I will have
applied to take the certification review course in Atlanta and will be registered
to take the certification exam afterward. Additionally, I will buy the certification
resource texts, will develop a small study group with three other managers in
my chapter, and will meet with them locally once each month during year five to
review the readings and questions.
Who cares?
I care, my family cares, my board cares, and the club members care. It is
very important for me professionally and personally that I obtain my CCM
designation.
After writing a goal, review it to make certain that it is challenging. Any goal
should challenge you and your abilities. Ask yourself: Does this goal really stretch
my abilities? If it seems too easy, consider shortening the time frame or rewriting
the goal to make it more challenging. Is the goal attainable? While goals should
stretch your abilities, they must be attainable. Inasmuch as a goal is a glimpse into
the future, that future should be attainable. Otherwise, you may see the goal as
being impossible and won’t commit your energies toward achieving it.
Whether writing goals for yourself or helping others create goals, remember
to avoid statements that suggest failure. Negotiate with yourself and others to cre-
ate agreement on personal and professional goals.
Ten-Year Personal and Professional Goals. After writing five-year personal and
professional goals, you should also create ten-year goals for yourself and those
whom you supervise.
Managers often refer to ten-year goals as “guiding principles.” While the ten-
ure of managers at a given club is often shorter term, especially as younger manag-
ers are promoted upward within a club or to another club, this aspect should not
affect your perspective on ten-year goals.
Ten-year goals can be a way to express determination—your focus on out-
comes, plans, and dreams—at your present club and in the private club industry
as a whole. Your managerial skills, especially if you have achieved CCM or MCM
status, are viable skills that are highly portable among clubs.
While the process for creating ten-year goals is essentially the same as for five-
year goals, the longer time frame is often discouraging to managers, for a number
of reasons. Some managers are not used to thinking so far ahead. Others see the
long time frame as not requiring immediate attention. Still others believe that the
long time period is unpredictable and that planning so far in advance is futile.
None of those are valid reasons for not planning your next ten years in advance.
In fact, there are even more reasons why setting ten-year goals is effective.
Thinking strategically and from a long-term perspective ensures that you are
creating, to the best of your ability, your future. As mentioned previously, creating
your future is much more powerful than allowing circumstances to create your
future. Also, the long time frame allows you to work toward outcomes over the
long haul. You have many years to work toward an outcome you have in mind.
When an option or opportunity presents itself, you will be better able to determine
whether it will help you achieve your goals if you have a ten-year plan in place.
Most importantly, to a large extent the future is predictable. This is especially true
if you are able to align your thoughts and energies toward accomplishing specific
goals.
As with your five-year goals, ten-year goals should stretch your abilities while
remaining attainable. The longer the time frame of the goal, the more important it
becomes to review the goal to make certain it is challenging. It is not at all unusual
to find that you can accomplish your 10-year goals in five years, as long as you
focus your thoughts and energies toward goal-accomplishment.
Keep negotiating with yourself or others to create “buy-in” on goal creation
and then get busy working on achieving your future.

An important element in creating your future is forecasting your next logical
career steps, so that you can begin moving in that direction. Again, to the extent
that you can influence outcomes, you want to help create your future instead of
allowing circumstances to dictate it for you.
Think for a moment about where you are now in terms of your position at the
club. Now, envision your next logical position at the club. Think of it honestly: Are
you moving into an area or position that would be exciting? Or not at all interest-
ing? When is the move likely to happen? Will you be making a lateral move to get
experience in another area? Or are you are topping out?
Preferred Area and Position. When envisioning your next logical position at the
club, you should evaluate whether the area or position toward which you are
headed interests you. Is it where you want to be moving within the club? For
example, if you have been the evening dining room service manager in the mixed
grill and sense that you will be moving into a maitre d’ position—heading-up the
service side of the club’s food service operation—you should take a close look at
the position itself. Do you want or need to stay in the food and beverage depart-
ment? You should also ask yourself whether this path will help you reach your
goals and objectives. This is all part of the planning process. You cannot ask your-
self these questions unless you have determined your personal and professional
goals and objectives.
After analyzing whether their next likely move is to a preferred area and posi-
tion, proactive managers have two options. To continue with our example, you
could decide that you would like to accept the new maitre d’ position and stay
in the food and beverage department, in which case you should ensure that your
strategic behaviors—everything that you think, do, and say at work—reinforces
your consideration as the logical choice for the position when it becomes available.
Or, you could instead decide that the position is not for you. If you see that
your logical career progression at the club is leading you deeper into an area or
toward a position that is not of interest to you, for whatever reason, understanding
this early will allow you to change direction before you spend a lot of years going
down a career track that you don’t like. The unsatisfied food and beverage director
described earlier did not have such foresight.
One successful GMs/COO related his experience with evaluating his next log-
ical steps. Having come up through the food and beverage department of a well-
respected northeastern club, he decided that he did not want to move from his
134 Chapter 3
then-position as morning service manager in the grill to the position of beverage

manager, a position which he had identified as his next logical career move. He
realized that his lifestyle, goals, and objectives—both personal and professional—
did not include spending long, late-night hours working in and supervising the
club’s beverage operation. Thus, during various performance reviews, he men-
tioned to his then-supervisor, the clubhouse manager, that he would prefer a role
in the membership department.
When the membership director left the club unexpectedly, the supervisor,
who happened to also oversee the membership department, encouraged the ser-
vice manager to interview for the vacant position. The service manager helped cre-
ate his own future through planning and discussion, and by directing his actions
and energies toward his objectives. He got the job as membership director, and is
now a successful GM/COO.
Spend time forecasting where you are headed at your own club. If you like your
potential department and the position toward which your path seems to lead, put
your effort into helping ensure that you reach that position. On the other hand, if
you do not like where you are headed, make your interests and preferences known
over time—and at the appropriate time. Think and communicate strategically.
Identifying the Time Frame. When envisioning your next move at the club, you
should estimate when the opportunity may arise—that is, when the position will
be available. Identifying a time frame will allow you to prepare yourself. What do
you need to be doing? What do you need to be learning? With whom do you need
to be cultivating a relationship?
Knowing approximately when the opportunity may come about, you can ori-
ent your efforts toward making the possibility become reality. In the club environ-
ment, it is often difficult to know when areas and positions will open. But it is
never too soon to focus your efforts toward those areas and positions that interest
you. In doing so, you help position yourself as a logical candidate for those posi-
tions as they become available.
Promotion or Lateral Move? Consider all upcoming opportunities and don’t

discount lateral moves. While promotions are ideal, at times lateral moves are
necessary. This is especially true for managers who consider themselves “pass-
ing through” a particular department to gain working knowledge, not necessarily
depth of knowledge.
For example, one GM/COO had long-considered food and beverage her
“home” department and her comfort zone. However, she had set a goal many
years before: she wanted to become the GM/COO of a country club within ten
years. Thus, with no experience in golf course and grounds maintenance—and
knowing she had to “get her card punched” in that area by understanding some
of the sensitivities of golf course maintenance—she became a working supervisor
in that area for six months. Though she had no intention of becoming a golf course
superintendent, she wanted to prepare for her future. She now looks back at her
time in golf course maintenance—her lateral move as a young manager—as a stra-
tegic turning point that helped her gain a competitive advantage. Eventually, she
made it to a GM/COO position at a country club—all by age 34.
So carefully consider your opportunities, especially if you are a young man-
ager. Will a lateral move help you gain working knowledge of a key department
outside of your “home” department? Most likely, it will.
Topping Out. When you are considering your next logical position, be honest
with yourself. Have you topped out? Topping out or plateauing is usually related
to your position at a particular club and not to your ability. If you have determined
that you have topped out at your present club, you have three options: do nothing,
“re-tool,” or move on.
If you decide to do nothing, make sure that you can be satisfied with your
decision. Doing nothing is not a bad decision as long as it is a strategic decision.
A clubhouse manager may realize that he or she has topped out—at least for the
foreseeable future—at a large country club. However, the club is very prestigious,
the pay is great, challenges are ever-present, and the geographic location is ideal.
For such a manager, plateauing for a while is a reasonable, strategic decision.
“Re-tooling” is another option, exemplified by the manager who wanted
experience in golf course maintenance in order to boost her viability as a general
manager candidate someday. She took positive steps to gain experience where she
was lacking—she re-tooled and eventually achieved her goal. Re-tooling may also
be a good strategy for an experienced manager who is very deep in a department.
However, flexibility is extremely important to success in this process. Managers
who are stubborn or otherwise set in their ways are often not successful in moving
laterally. Managers who consider re-tooling should take an honest look at what is
in store for them before proceeding.
Simply moving on is another strategic option. In club management, this
option is perhaps the most common method of advancing, and it is a viable option
if an honest look at the present situation suggests that there is little chance for
advancement at the club. Managers who decide to move on should, if possible,
discuss this option with their supervisors. Often, especially in larger and more-
established clubs, GMs/COOs groom assistant managers for GM/COO positions
at other clubs.
If you have topped out, make sure—whatever career option you choose—that
your personal strategic plan is the foundation for your decision. After following
through and moving into your next logical position, take another look into the
future and move toward your next logical step, and repeat the process until your
ultimate career and personal goals have been achieved.
Endnote
1. Dr. William Martin’s Quality Service: What Every Hospitality Manager Needs to Know
is an excellent reference tool—a “how-to” service guide—for managers. It includes
concepts that have been adapted here to relate to the private club industry.
Review Questions
1. How do leadership and management differ?
2. What are some armchair leadership theories?
136 Chapter 3
3. What are some characteristics of the following leadership theories: the grid
model, the managerial grid, the situational leadership theory of Hersey and
Blanchard, and Fiedler’s contingency theory?
4. What are some different types of leadership power?
5. What are some motivational theories?
6. What are some ways club managers can conduct an effective service analysis
of their club?
7. A well-written club goal contains which five critical characteristics?
8. What are some of the differences between a subjective report and an objective
report?
9. What are some bad time management habits that plague club managers, and
how can they overcome them?
10. What are some effective ways that club managers can plan for their future?
Internet Sites
Club Managers Association of America The Productivity Institute
www.cmaa.org http://balancetime.com
Goal Setting Time Thoughts: Resources for Personal
www.goalsetting.biz & Career Success
www.timethoughts.com
Organizational Strategic Planning: 1. Explain the importance of a club
A Step-by-Step Process strategic plan and summarize the first
Agreeing on the Need steps in strategic planning: agreeing
Needs Assessment on the need, needs assessment, setting
Setting Ground Rules ground rules, membership input, and
Membership Input competitive analysis. (pp. 139–151)
Competitive Analysis 2. Discuss the following steps in
Strategic Planning Retreat strategic planning: strategic planning
Vision retreat, vision, mission, goals, and
Mission objectives. (pp. 151–162)
Goals
Objectives 3. Describe the last steps in strategic
Organizational Situation Analysis planning: organizational situation
(SWOT) analysis, strategy statement, budgets,
Strategy Statement action plan, and assessing progress.
Budgets (pp. 162–172)
Action Plan 4. Discuss strategic implementation
Assessing Progress analysis, including the creation of
Strategic Implementation Analysis grand strategy, the relationship
Creation of Grand Strategy between strategic and long-range
Strategic and Long-Range Planning planning, the strategic plan as a living
Should Complement Each Other document, and the club’s internal and
The Strategic Plan as a Living external environment. (pp. 173–180)
Document
Understanding the Internal and 5. Explain how club managers can use
External Environment the strategic plan to allocate capital,
Using the Strategic Plan to Allocate align strategy with operations,
Capital monitor goal achievement, and ensure
Aligning Strategy with Operations that the strategic plan is used.
Monitoring Goal Achievement (pp. 180–186)
Ensuring the Strategic Plan Is Used
4
Strategic Planning and
Management
This chapter was written and contributed by Edward A. Merritt, Ph.D.,
The James A. Collins Distinguished Professor of Management,
Collins College of Hospitality Management, California State University
(Cal Poly Pomona), Pomona, California.
T his chapter provides an overall guide to the strategic planning process. Specifi-
cally, it was written in response to the request of club managers for a user-friendly
document that would explain the planning process as it relates to private clubs,
including step-by-step guidelines, background information, helpful hints, and
real-life examples.
This chapter will help club managers create an integrated strategic plan that
will serve both club members and paid staff. Simply stated, the overarching goal
of club strategic planning is to help ensure that the executive management team
has established a vision and mission for the club and that the paid staff is achiev-
ing that vision and mission through the process of achieving the strategic plan’s
goals and objectives. A strategic plan is broad-based and conceptual in nature,
and requires long-range, big-picture, visionary thinking. Once created, a success-
ful strategic plan leads to operations planning, which is more short-term and prac-
tical in nature (goals and objectives) and involves the club’s general manager/chief
operating officer (GM/COO) and the management team, supervisors, and appro-
priate line staff. General managers, as the chief operating officers of their clubs,
typically lead the strategic planning process on behalf of the members and the paid
staff in conjunction with their club’s board and long-range planning committee.
Strategic planning offers several benefits for a private club:
1. Strategic planning offers the club a way to examine where it is presently (if it
is an existing club) or where it should be when it opens (if it is a new club).
By understanding where the club is presently in terms of operations and per-
formance (the actual) and comparing it to where the club would like to be
(the benchmark), a manager and board have created an opportunity for a gap
analysis, which identifies what the club needs to do in order to achieve its
goals. The “needs-to-do” becomes the basis for the action plan.
2. Strategic planning allows the club to define its future direction. Often referred
to as “proactive management,” defining the club’s future direction helps club
139
140 Chapter 4
managers be intentional about managing the club instead of responding to

ad hoc directional whims. Successful managers learn early that “whim man-
agement” is a dangerous game when they are trying to deliver a consistent
product and treat all members as being important.
3. A written strategic plan provides a consensus direction that can be measured
and evaluated.
Strategic planning is often a difficult challenge for clubs. Most clubs that
undertake strategic planning are existing clubs, so the strategic plan must be for-
mulated while carrying out operational responsibilities and, in many cases, must
be phased-in to allow for as little disruption to operations as possible, so it is not a
clean or clear-cut process. Another difficulty with strategic planning is that long-
term strategies bind future boards, an element that may be viewed as a drawback
by a board. However, binding future boards is, from a strategic perspective, a
great idea for club members and management, because it lends continuity to a
potentially disparate series of board presidents and members. Most clubs elect
new board presidents and a third of the board’s members each year, which creates
a dynamic that makes strategic planning an even more important element for a
club’s success.
Uniquely shaped by their traditions, size, and focus, clubs will vary widely
in their approach to strategic planning. Some will want to go it alone, others will
want to do some of the work themselves but will employ some outside help, and
still others will want to leave it mostly in the hands of a consultant. No matter
which approach a club takes, this chapter can help guide and coordinate the stra-
tegic planning process.
In understanding strategic planning as a process that filters throughout the
organization, it is helpful to think of a typical club—whether country club, city
club, golf club, tennis club, yacht club, or any other kind of club—as a single-
business entity. As such, it has its own hierarchy with respect to the way that the
strategic plan courses through its organizational veins.
Exhibit 1 illustrates how the strategic planning process flows from top to
bottom:
•• Club strategic planning: The club’s board, long-range planning committee,
and GM/COO usually take the lead in creating the club’s strategic plan. The
primary strategic planning issues include highest-level strategies and initia-
tives to maintain or enhance the club’s position as a successful organization
serving its members over time. This chapter focuses on strategic management
at this level.
•• Functional strategic planning: The functional department heads, typically rep-
resented by staff heading up non-operational, key support entities at the club
that function for the benefit of the entire club (such as marketing, finance,
information technology, membership, and human resources) usually take the
lead in creating functional strategic plans (in conjunction with the GM/COO).
The primary planning issues include creating departmental strategies and ini-
tiatives to support the club’s overall strategic plan, and creating and achieving
departmental performance goals and objectives.
Strategic Planning and Management 141
Exhibit 1 The Club Strategic Planning Pyramid
Club Strategic Planning

Responsibility of the board, long-
range planning committee, and
GM/COO
Functional Strategic Planning

Responsibility of functional
department heads (i.e., market-
ing, finance, IT, HR)
Operations Strategic Planning

Responsibility of operations
department heads (i.e., F&B,
sports professionals)
•• Operations strategic planning: The operations department heads, typically

represented by the food and beverage director and the heads of the various
sports areas at the club (golf, tennis, swim, fitness, equestrian, etc.), usually
take the lead in operational strategic planning (again, in conjunction with the
GM/COO). Primary planning issues include creating department-specific
strategies aimed at supporting the club’s strategic plan, and creating and
achieving departmental performance goals and objectives.
This chapter has been written under the assumption that no formal strategic
initiative exists at a particular club. Thus, the chapter is organized chronologically:
GM/COOs, boards, members of the long-range planning committee, and students
can follow along, step-by-step, to see how an organized and integrated strategic
plan for clubs is put together. Realistically, however, the overwhelming majority
of clubs will have at least some elements of a strategic plan in place. In these cases,
GM/COOs can look at the chapter more generally, to see the relationships among,
and the general order of, the strategic planning elements. While the individual
elements work best in the order and manner specified, they can also serve supple-
mental functions alongside a given club’s current practices. In short, this chapter
works as well for existing clubs seeking to improve their strategic plans as it does
for new clubs attempting to create entirely new plans.
Organizational Strategic Planning: A Step-by-Step Process

Strategic planning helps lead and guide a club from a long-term perspective. For a
club, strategic planning always relates to the club’s self-definition of what it wants
142 Chapter 4
to become. Thus, strategic planning affects operational decisions and determines

how the club will practically achieve what it ideally wants to be.
Strategic planning contributes to club stability and helps ensure that a club
remains relevant and responsive to the needs of its members. It provides a basis
for objectively monitoring progress and for assessing outcomes and impacts. It
facilitates new program development. It enables a club to look into, plan, and fore-
cast the future in an orderly and systematic way. From a board governance per-
spective, it enables a club’s board to set big-picture policies and goals to guide the
club and provides a clear focus to the general manager and staff for implementa-
tion and overall management of club programs and staff.
Undertaking the process of strategic planning can be a daunting task. There
are a number of elements inherent in the creation of an integrated strategic plan
that may, at first glance, confuse even the most experienced club manager. How-
ever, when considered in a progressive order of importance, these elements work
clearly and crucially with each other. They include the following elements that
proceed in a more or less sequential order, although some elements may overlap
at times:
1. Agreeing on the Need
2. Needs Assessment
3. Setting Ground Rules
4. Membership Input
5. Competitive Analysis
6. Strategic Planning Retreat
7. Vision
8. Mission
9. Goals
10. Objectives
11. Organizational Situation Analysis (SWOT)
12. Strategy Statement
13. Budgets
14. Action Plan
15. Assessing Progress
These elements are discussed in the following sections. If any element is not
already in place at a club, the person responsible for the strategic planning process
should ensure that the missing step is completed before proceeding to the next
stage of the process.
Agreeing on the Need

The most fundamental element of the strategic planning process is reaching
an agreement on the need for a strategic plan. This may be done at a board
meeting with key staff present, or may require a special meeting or retreat, includ-
ing the board, the long-range planning committee, key staff, and some key internal
stakeholders (such as past club presidents). After the agreement on the need for
a strategic plan, the strategic planning process begins and preliminary research
is conducted in advance of any further formal strategic planning meetings. Typi-
cally, the GM/COO, members of the board, and members of the long-range plan-
ning committee take on or assign an array of duties to gather information that will
be used throughout the strategic planning process.
Needs Assessment
Preliminary research to assess the needs of the club usually includes confiden-
tial interviews, a minutes review, a financial review, an operational audit, and
an environmental scan. Once these five steps have been completed, a report is
compiled identifying a master list of issues for consideration during the strategic
planning process.
Confidential Interviews. The strategic planning team should meet with individu-
als and small groups to discuss their opinions and views on various aspects of
the club. These confidential interviews serve as an effective way to discover the
general feelings and climate of the club. One way to focus questions is to state
them in terms of where the club is currently as compared to where the club should
be in the future. This focus defines a gap that can help identify the changes that
must occur over time to move the club from its present position to where the mem-
bers want the club to be in the future. One effective line of questioning might go
something like the following: “Tell me about your club experience—is it meeting
your expectations presently? How would you change the club’s direction so that it
could be even better in the future?”
Minutes Review. A comprehensive analysis of the minutes from board meetings,
annual meetings, and other major deliberations should be conducted for the pre-
ceding five to seven years. The report that develops from this analysis should be
a listing and big-picture summary of the situations, actions, and past direction of
the club that could influence the future direction of the club. For example, has the
membership expressed frustration over the years about not being able to seat a
full draw plus spouses for the member-guest awards banquet? Has the club been
the subject of threatened lawsuits from neighboring homeowners over misaligned
tees or short doglegs leading to frequent broken windows (a problem above and
beyond the occasional errant shot)?
Financial Review. Similar to the minutes review, a comprehensive analysis of club
financial statements should be conducted for the preceding five to seven years. The
report that develops from this analysis should include a listing of the end-of-year
budget-to-actual results (income and expenses), a trend analysis of the balance
sheet results, a review of the capital expenses each year for furniture, fixtures, and
equipment, and a review of the capital budgets for significant remodeling projects.
Operational Audit. The operational audit is a detailed analysis of the club’s major
and minor operating departments, drawn from past member surveys, secret
144 Chapter 4
shopper reports, committee comments, and comments from the confidential inter-
views. The report should summarize the service effort throughout the club, which
can help identify service challenges that need to be addressed.
Environmental Scan. The environmental scan, if one does not already exist at
the club, is a document that is time-consuming to prepare but is a vital reference
for the club. An environmental scan is a comparison of the demographics, dues,
fees, charges, rules and policies, and other information for clubs that compete
with the club for members (these clubs are also referred to as the club’s competi-
tive set). The environmental scan can be set up as a worksheet with each club
occupying a row and each data point occupying a column. Suggested column
headings would include zip code, club type, membership type, initiation fee by
membership type, monthly dues by membership type, and then fees and charges
for common facilities and services by department. For example, golf would
include fees and charges for guests of members, carts, the range program, lock-
ers, bag storage, lessons, policies on outside play, charges for the member-guest
tournament, and the like. Some environmental scans contain more than 100 clubs
with over 300 columns of detail as to dues, fees, charges, and policies (resulting
in more than 30,000 cells of data). This document is of tremendous help to club
managers and other staff who must answer questions about what other clubs
are doing. Without this document, staff members spend inordinate amounts of
time throughout the year researching ad hoc questions asked by board mem-
bers, committee members, and others. Ideally, the environmental scan should be
updated annually.
Other issues that don’t lend themselves to being addressed on the worksheet
but should be included in an environmental scan are forces and trends—political,
economic, social, and technological—in the broader community that are having or
may have an impact on the club. Those putting together the environmental scan
should look at changing demographics, political trends, economic trends, shifts in
values in the local community, the implications of new or changing laws and regu-
lations affecting the club, trends in communications and technology, and other
issues that will have an impact on the club and its members.
Setting Ground Rules

Once the preliminary research has been completed, many more strategic planning
meetings will begin to be called. From the outset of the strategic planning process,
an atmosphere should be created in which all contributions are welcomed. Essen-
tially, the objective of the strategic planning leadership should be to ensure that
all participants can safely share ideas, without the ideas being shouted down or
ignored as being insignificant or otherwise unimportant. To help set the appropri-
ate tone, leaders of the strategic planning process should:
1. Encourage active involvement. All participants (in any meeting or planning ses-
sion) should be actively involved in the process. Stating participation expecta-
tions up front can help keep impatient or more vocal participants from con-
trolling the process and potentially shutting down creative viewpoints and
ideas from others.
2. Solicit different points of view. The goal during strategic planning sessions,
especially in the early stages, is to get a broad range of ideas. It may be helpful
at the beginning of early planning meetings to announce that their purpose is
to generate a lot of ideas (quantity), and that judgment about the relevance of
the ideas (quality) will come later.
3. Probe issues. The strategic planning leaders can explore issues during meet-
ings by posing questions to the group. This probing provides encouragement
to flesh-out and elaborate on ideas.
4. Manage conflict. Conflict needs to be mediated. Conflict is natural and should
be encouraged up to a point, as healthy disagreement brings additional ideas
to the table that otherwise might not have been generated. However, if per-
sonal attacks ensue or if negativity develops between certain interest groups,
a respected and influential person may need to refocus the group’s energy.
Because policies at many clubs prohibit paid staff from interceding in mem-
ber disputes (the paid staff manages the paid staff; members manage mem-
bers), this respected and influential person is usually a club member who has
agreed in advance to serve as mediator.
Before any strategic planning meeting begins, planners should consider what
outcome is sought. Whether the GM/COO, the president, another board member,
or a member of the long-range planning committee leads the meeting, the meet-
ing’s objective should be announced in advance; that is, it should be made clear
whether the meeting’s objective is to come to an agreement on a matter or was
called simply to gather more insight and background information. Announcing
the purpose of the meeting helps participants shape their comments, viewpoints,
or answers accordingly.
Assuming that the meeting seeks agreement in the form of a decision, the
person leading the meeting should always consider how decisions will be made.
We often think that, in clubs, decisions are made simply by a majority vote. But
that is not usually the case. Instead, decisions are made in private clubs in one of
the following ways:
•• Authority. In decision by authority, the leader of the meeting typically accepts
input but reserves ultimate decision-making authority; thus, meeting partici-
pants serve as advisors. If this is the case, participants should be made aware
of their advisory status, so that they know what to expect of the decision-
making process.
•• Majority. When deciding by majority, the leader typically accepts input and
offers his or her personal opinions before calling for a vote. (Robert’s Rules of
Order dictates a slightly different process but with essentially the same out-
come.) The decision gains approval either by a simple majority or, in some
cases, by a super (two-thirds) majority. Thus, meeting participants are advi-
sors and voters.
•• Minority. Decision by minority suggests that the leader allows a vocal
or passionate minority to mold the decision. In clubs, this method is often
technically decision by authority, though the authoritarian allows the vocal
146 Chapter 4
minority to influence the outcome to the point that the minority view is
adopted. While it may not seem logical that decision by minority is used often,
we see this in clubs regularly. A group that is unified, vocal, and passionate,
no matter how small, can be very influential. The bridge players, the 19th hole
regulars, the A-Team tennis players, and the under-five-handicap golfers are
typically small but influential minorities within clubs that often get their way
in decision-making.
•• Unanimity. The perceived strength of a unanimous decision lies in the fact
that all eligible voters voted on a decision, whether for or against, with no
abstentions. Unanimity is a form of decision by majority, unique because the
“100-percent” vote often further legitimizes the decision.
•• Consensus. Decision by consensus is, by far, the “bread-and-butter” deci-
sion-making model most used in the private club environment. Consensus,
like majority, is technically decision by authority; in consensus, though, the
authoritarian guides the discussion and encourages compromises that will
help the group arrive at a decision informally and usually without a vote.
Once a decision has been reached, the leader then asks if that is the consensus
of the group, which is typically indicated by simple nods of agreement or
non-responses from group members. The decision is then adopted.
Ideally, strategic planning meetings should be focused, with a clearly identi-
fied facilitator, enthusiastic participants, and a clear understanding of the purpose
of the meeting.
Membership Input
Including club members in the strategic planning process was begun in the con-
fidential interviews component of the needs assessment. As the process moves
forward, more membership input should be solicited to help create a roadmap for
charting the future of the club. Conducting focus groups and creating and con-
ducting a club survey are two methods clubs use for gaining member input.
Focus Groups. Focus groups allow strategic planners to meet with a wide variety
of members and staff to determine their perceptions, opinions, beliefs, ideas, and
attitudes toward club products, services, and concepts. Focus groups yield valu-
able insights for the club by building upon information and comments gleaned
from confidential interviews. Analyzing the information that comes from focus
groups can help in the development of a club survey.
Focus groups work well when the groups are kept small. A good plan is to
conduct five sessions at staggered times (maybe morning, mid-afternoon, and eve-
ning) over two consecutive days (maybe a Wednesday and Thursday). Each ses-
sion should include ten to twelve participants (plus non-participant observers).
The focus group sessions may be aimed at the membership in general or be more
specific (i.e., made up of golf or tennis members). Questions for the focus groups
should build on those from the confidential interviews. Sample questions appro-
priate for general sessions include the following:
•• What are we doing that you consider great?
•• What is not working well and needs improvement?
•• What would you like to see us add at the club? What is missing?
Examples of questions designed for particular groups include the following (in
this case, using golf as the focal point):
•• Are the club’s golf facilities, programs, and services meeting your expectations?
•• What are two or three golf services that you find particularly important?
•• How could the club improve the golfing experience for its members?
Issues will continue to surface during the focus group sessions. It is the com-
bination of the previous analyses of the confidential interview information and
the focus group feedback that becomes the foundation for creating a club survey.
Club Surveys. Effective boards, long-range planning committees, and general
managers all want to develop and maintain products and services that are mean-
ingful and attractive to current and prospective members. Good research about
club members’ needs, wants, and expectations will help them do just that.
Conducting a club survey, while a daunting and time-consuming task, pro-
duces valuable and rewarding information. Before conducting a club survey, the
club’s general manager, other members of the management staff, members of the
long-range planning committee, and the club’s board must decide on the purpose
of the survey. A survey is a great way to collect data that can be turned into valu-
able information. If not put together judiciously, however, a survey can turn into
an unfocused document that will only serve to upset and frustrate members and
staff. The survey can be particularly frustrating if the survey information is wasted
and nothing much happens after the survey has been conducted.
Surveys are usually conducted at clubs for one or more of these three reasons:
1. To persuade. The club might collect member views and opinions before under-
going a major renovation, for example, in part to help persuade members that
the renovation is necessary.
2. To create or modify a service or product. The golf department might modify its
starting-time procedures based on member input from a survey, for example.
Or, after analyzing survey data, the food and beverage department might
modify the grill menu or change the operating hours of the main dining room.
3. To understand member behavior. The club might undertake a club-wide, com-
prehensive survey with no preconceived outcome in mind, except to simply
better understand members’ wants and needs so that the club might serve the
members better. This is the most strategic purpose for a club survey.
These three reasons often overlap in a club survey. The primary focus of a
club survey created for the purpose of helping the club formulate a strategic plan
would be to simply identify and better understand the needs, wants, and expec-
tations of members. Such a survey should consist of a series of questions about
the club in general and each of the club’s functional areas (accounting, marketing,
etc.) and operating areas (dining, golf, tennis, swimming, etc.). The survey should,
when specifically addressing operations, ask questions that elicit both importance
148 Chapter 4
ratings (such as a scale of 1–10, with 10 being most important) and performance
ratings (on a report card scale from A down to D). In the past, most club surveys
only surveyed members on the basis of performance and erroneously assumed
that all of the club services and products they were asking about were important
to the members. So it is vital to ask both questions when dealing with club services
and products: Is this important and how are we doing? It should be noted that the
more general and strategy-oriented survey questions often do not lend themselves
to performance as well as importance ratings because such questions deal with
future club directions and offerings. As such, including performance ratings for
such questions does not make logical sense.
Generally, clubs that do a good job with their surveys:
•• Survey their members with regularity (approximately every twelve to sixteen
months).
•• Conduct their surveys online instead of using paper-and-pencil forms.
•• Include an introduction by the president and the general manager.
•• Solicit participation by all users of the membership, including the member,
spouse, and all dependents.
•• Include a demographic section of ten to fifteen questions on their surveys to
obtain demographic information about the member responding.
•• Have separate sections on their surveys for each major club department.
•• Have one separate section to cover minor areas.
•• Have a separate section to cover the club overall (that is, a section for general
questions).
•• Include one open-ended question at the end of each survey section that elicits
comments on anything the respondent would like to elaborate on.
The following guidelines can help club managers create an effective club
survey:
1. Decide on the purpose. Whether the survey is intended to persuade, to modify
a service, or to gather information about member behavior, deciding on the
purpose allows you to focus your questions.
2. Assemble the questions. Creating the questions is undoubtedly one of the most
time-consuming parts of the process, but should be done carefully and judi-
ciously. Ensure that each question addresses one—and only one—specific
issue or topic. Do not ask a member what he or she might “like best.” Instead,
ask what products or services the member would be “likely to use or buy.”
Keep the questions brief and clear. Short questions are less likely to be inter-
preted incorrectly. Use normal club vocabulary—call it “the grill” in your sur-
vey, if that’s what it’s called by club members, not “the informal dining area.”
3. Choose a time limit. Typically, members are not likely to fill out a survey that
takes any longer than about ten minutes to complete. That time threshold
decreases dramatically if club surveys are distributed frequently. As a rule
of thumb, members will not object to completing a ten-minute survey once
each year. If you really publicize the importance of a club-wide, strategic and
long-range planning survey, you can probably get an excellent response to a
twenty-minute survey every other year.
After deciding on the appropriate time limit and scaling back (or adding
to) the number of questions accordingly, you should test the questionnaire
for length, clarity, and interest. Get feedback on your questions from a select
group of members before sending it out to all of the targeted members.
4. Plan a frequency. The frequency of club surveys, like the number of questions,
largely determines your response rate. Some clubs survey quarterly; at the
other extreme, others survey every three to five years. Those clubs that survey
quarterly are most successful when the questionnaire asks no more than ten
questions and is quite easy for members to complete and return. Those clubs
surveying annually or less frequently can get away with longer, more com-
prehensive surveys, which are the best surveys for helping managers with
strategic and long-range planning.
5. Decide on the target audience. This may sound obvious, but it is important
to survey those who are interested in or use the facility in question. If your
club allows annual members (non-owners) to use social facilities but not the
golf course, do not send annual members a survey about re-building the golf
course greens. Surveys to help clubs with strategic planning usually include
most or all of the members.
6. Decide on a method for data collection and analysis. Will you administer the
survey in-house or through an outside firm? How will the project be staged?
Who will analyze the data? This is typically the point at which most clubs
decide to consult with an outside source. If you take this route, remember to
stay true to the purpose—the intention and motivation—for your survey.
7. Decide how the results will be disseminated. Most members will assume that if
you are asking about a product, service, or facility, you are going to develop
an action plan to somehow change it—and that the members will be informed
about the plan. Disseminate survey results through the club’s newsletter,
through separate and specific mailings, e-mails, or other media, depending
on the inclinations and expectations of the membership. Informing members
about the purpose of the survey is important and related to how you will dis-
seminate the survey results. In the case of a survey designed to help the club
with its strategic planning, it is acceptable to tell members that you are unsure
about what actions, if any, will be taken. However, if members feel that a sur-
vey wasted their time, they will respond less often and less enthusiastically to
subsequent surveys.
Other Methods for Gaining Member Input. Soliciting member input is important
in helping ensure that the club is on track in its offerings of products and services.
Clubs can easily solicit member input during the normal course of the business
day. Here is a list of easy ways to informally obtain member input:
150 Chapter 4
•• At point of purchase. Ask for feedback at the moment when a transaction takes
place. Questions can be related to quality, price, and service.
•• Online. Add a tell us what you think link on every page of the club website.
•• Newsletter. Include a question or two at the bottom of the president’s column.
•• Comment cards. The traditional comment card approach still functions well
for many clubs. Managers can post a comment box in one of the club’s public
areas along with cards and a few golf pencils.
Competitive Analysis
There are many methods of collecting comparative data on competitors for analy-
sis. The paragraphs that follow will cover three of the most used methods. Often,
these analyses are conducted earlier in conjunction with the needs assessment. A
club’s choice of whether to do a detailed competitive analysis earlier in the strate-
gic planning process or now generally lies in how the work progresses and how
responsibilities were assigned. Whether the competitive analysis comes now or
earlier in the process, either method works well. What’s most important is that it
gets done.
Comprehensive Club Surveys. Comprehensive club surveys are among the most
reliable surveys because they include data points from hundreds of clubs across
the country. The results can be reviewed by club type, such as golf club, country
club, city club, and yacht club; club size, such as fewer than 400, 400–599, 600–899,
and more than 900 members; geographic location, such as West, Southwest, Cen-
tral, Northeast, Mid-Atlantic, South, and Southeast; and other categories of inter-
est. The primary advantages of using comprehensive club surveys are the ability
to analyze and compare data between and among several geographic areas, the
high numbers of club respondents, and the fact that they are usually conducted
by firms specializing in surveying and are therefore kept up-to-date and include
multiple-year comparisons, which can be helpful in determining trends.
Regional Club Surveys. Regional club surveys are also helpful and are essentially
scaled-down versions of comprehensive club surveys. The primary advantages
of using regional club surveys are that they typically focus on one particular geo-
graphic area and they can serve as a basis for establishing competitive sets. A few
of their drawbacks are that because their creation and upkeep are usually done
on a voluntary basis, they may not be up-to-date and may not include multiple-
year comparisons. Also, because they are regional, these surveys do not provide a
wider view as to what other clubs are reporting outside of the region.
Ad Hoc Club Surveys. Ad hoc club surveys are the bane of a general manager’s
existence because of the time involved in gathering information. Ad hoc surveying
is almost always driven by a need for a few key bits of data to assist in a decision.
Ad hoc surveys are the most local form of surveying and focus on two or three of
a particular club’s closest competitors. The driver behind an ad hoc club survey
usually goes something like this (assume the president is speaking to the general
manager): Patrick, the board is good with most of your work with the upcoming budget.
A few of us just need some reassurance on a couple of items. Will you call around and
find out what Redwood, Blue Lake, and Willow Springs charge for a Belvedere martini,
their policies and charges for golf guest fees on weekends, and their charges for a half
cart after three p.m.?
All three methods of surveying are used by clubs with regularity. Access to
this data provides the club with information in establishing ranges, boundaries,
and benchmarks for operations in defining what is customary and acceptable
within a defined market. Club benchmarks are service and/or product standards.
For example, a club would not be wise to charge a 30 percent gratuity on food and
beverage if the average in their area was 18 percent.
Strategic Planning Retreat

The strategic planning retreat is listed as one of the integral steps in the strategic
planning process because it almost always serves as the venue where the founda-
tional elements of strategy are created, discussed, amended, and decided. These
foundational elements would include developing, modifying, and/or confirming
the club’s basic values and guiding principles, vision, and mission; and creating
and prioritizing key goals and objectives. The retreat creates a structure of conti-
nuity for club governance.
In the past, a strategic planning retreat was typically an elaborate, multiple-
day conference held at a location away from the club, with work sessions during
the day, sports events in the afternoon, and social events that included spouses
in the evenings. This extended agenda allowed for focused business sessions and
then informal social times to reflect upon and discuss issues among colleagues.
The culminating session included deciding on and agreeing to the strategic plan.
Today, a retreat is almost always conducted in a condensed format lasting
about one day and held in one of the private rooms at the club. Because of full
agendas and shorter time frames, clubs often find it beneficial to use an outside
professional facilitator to help ensure that items are discussed and dealt with in a
timely fashion.
Deciding Whether to Use a Professional Facilitator. Should the club go it alone or
use a facilitator for its strategic planning retreat? The answer is, it depends. Here is
a checklist of considerations:
•• Do you want to participate? It is difficult to facilitate and participate at the same
time. For the club president or the general manager it becomes unusually com-
plicated to take on the facilitator role, because participants react to your role as
the president or the GM as well as to you personally, and they may think they
already know your biases as to what the club should do or become.
•• Does the club have sensitive issues? An outsider can diffuse the discussion
of prickly issues by counteracting overbearing personalities and softening
heated exchanges, directing the energy into the work in progress.
•• Does the club understand the process? An experienced professional facilitator
understands the strategic planning process and usually has successfully led
other clubs through the process in the past.
152 Chapter 4
Vision
Vision is perhaps the most fundamental of the strategic planning elements. Vision
is future-oriented and identifies what the club is all about, its purpose for being,
and where the club is heading. Infusing the club with a definite sense of purpose,
a club’s vision states a direction for the club and describes the destination.
At the outset of casting the vision, which usually begins at the board level, it
is important to assess others’ concepts of vision. It is often difficult for board mem-
bers to find a common language to describe their respective visions of the club.
One effective way to reach common ground is to make a comparison between the
club and an idea or object unrelated to the club. In making such a comparison,
constructing a metaphor to describe the club in the form of a familiar product
with widespread familiarity and a high degree of stratification can be helpful in
facilitating discussion. One product that I find quite helpful is to use automobiles.
It may sound unusual at first, but getting fundamental agreement on what a
club is presently and what the club should be creates the opportunity for a “gap
analysis,” for which an automobile-related metaphor is an effective tool. For exam-
ple, as the strategic planning process begins, one might ask this question: “If this
club were a car, what kind of car should it be?” This question works equally well
for established clubs (those that have some strategic planning elements in place) or
new clubs that are seeking to define themselves. The question is straightforward,
understandable, and, perhaps most importantly, prompts vision.
The ensuing discussion often will go on for some time, as participants share
their definition or view of the club in ideal terms. Be careful not to rush this discus-
sion. It is the most foundational discussion in the entire process, because it sets the
club’s direction. And expect to get a variety of answers. There may be less varia-
tion among answers if the meeting is attended by board members alone. Typically,
“Mercedes-Benz,” “BMW,” and “Lexus” top the list of responses.
A logical follow-up question establishes the current state of the club and high-
lights the disparity of members’ views and responses: “Continuing with our car
analogy, what kind of car is the club presently?” This question is similar to the
first, but forces the participants to assess the club’s actual and current status, what
the club is rather than an intended ideal. Again, plan for an extended discussion as
participants voice their opinions as to how the club meets expectations and where
it may fall short, all in the context of the club as an automobile. And, as before,
expect to get a variety of answers. In addition to the answers listed above, answers
such as “Volkswagen,” “Bentley,” “Chevrolet,” “Ferrari,” and even “Edsel” are not
uncommon.
While it may seem that you have opened the proverbial can of worms with
this question, the answers are important clues as to what the club’s members truly
think about the club in its present condition. Celebrate the fact that you now have
actual data to work with! To turn this data into useful, practical information, you
must compare the ideal and actual descriptions of the club. This becomes an effec-
tive “gap analysis” of where the club is presently and where the club should be
ideally in the future.
After comparing answers and identifying the gap, analyze the answers in
terms of the participants’ demographics and membership characteristics (as
much as club tradition and member preferences allow). For example, if most of
the tennis-member respondents described the current state of the club in terms
of economy or low-end cars, then consider examining the tennis department and
operation, in terms of its facilities, staff, and programs, to see why it is falling short
in the opinion of these members.
At times it is necessary to probe for more details, in order to elicit richer infor-
mation for use in decision-making. Asking the question, “What kind of car is the
club presently?” in order to assess members’ actual perception of the club is good
as far as it goes, but if the discussion stalls, one can also ask more specific and
probing questions, such as these:
•• What model is the car?
•• What is its condition?
•• What is the quality of its stereo? Its tires?
•• What options does this car have?
Depending on the willingness and enthusiasm of the group, you may need to
keep probing in order to get people engaged and talking. (Once you get them talk-
ing, do not forget to make sure that all of their responses are recorded. Keeping
up with what was said will get more difficult as the pace of the discussion picks
up.) For example, if members answer initial questions vaguely, probe for meaning:
Mr. Gordon, you stated that the present club would be a Mercedes-Benz S-Class, with
a faded paint job and broken dashboard controls. Will you please elaborate a bit, so I
can get a clearer idea of what you are saying? Do the controls work occasionally? Are
they missing entirely? Why is the paint faded? How does this automobile resemble
the club? Naturally, these additional prompts will lead into more specific discus-
sion about the club itself, as the framework of the car metaphor generates discussion
about values and qualities that apply to the club. At the end of this process, the
desired outcome is a shared vision and understanding of the club.
Here is an example of the vision statement for a start-up club that used the
automobile-as-metaphor process:
The Country Club of Tarantula Canyon will create an exciting, innovative, dif-
ferentiated, private club experience that will redefine quality in Southern Cali-
fornia. By creating a country club experience that is second to none, continu-
ously innovating while recognizing tradition and broadening our appeal to the
members and prospective members, we will be successful in our quest for excel-
lence. Our success in these endeavors will create greater value for our members
and greater desirability for prospective members.
This is an example of a successful club that is positioned as a Rolls-Royce–
level club. By aligning its infrastructure, service, and facilities toward the “high-
end,” the club has initiation fees at the upper end, expensive (and inclusive) dues,
and impeccable service. Members expect to pay a premium; however, they expect
exceptional value for their dollars spent.
Think for a moment about this successful club. It knows what it is and who
its members are. The message that this is a Rolls-Royce–level club is clearly com-
municated in everything that the club staff and management think, say, and do.
154 Chapter 4
The club does not appeal to Chevrolet-level members and does not try to do so.
Instead, it focuses its marketing toward skimming the “cream” from the highest
income earners in Southern California, such as those who routinely shop on Rodeo
Drive.
However, do not misunderstand this concept. There is nothing wrong with
being a Chevrolet-type club, and there are a number of extremely successful
Chevrolet-level clubs. But those clubs are successful because they understand
clearly that they are Chevrolet-level clubs. That is what they are, that is how they
market themselves, and that is how they want to be defined. These clubs typically
have average initiation fees and dues structures and offer a full array of reason-
ably maintained (but not lavishly maintained) facilities. They are dependable but
are neither flashy nor extravagant. Their strength lies in their ability to know
clearly what they are as clubs.
Problems often develop when some among a given club’s population—
whether club managers, staff members, club members, or others—do not share
this clear understanding of their club’s vision. Think for a moment about the mem-
ber who visits another club and notices a number of the special offerings and ame-
nities that the host club offers, only to return to his or her home club and suggest
that you, the GM/COO, immediately adopt similar offerings. The requests may
be simple and easily achieved. But it may then lead to larger and more elaborate
requests. Where does it stop? This Pandora’s box effect may be over-generalizing
the situation. Still, without a clear understanding of what a club is about and what
its vision is, club members often tend to push for their Chevrolet clubs to slowly
morph into Cadillac clubs. A clear understanding of what kind of club yours
is helps prevent this from occurring, or at least from occurring without careful
examination.
For example, one club located in North Carolina gave the impression of being
a Chevrolet-level club. Modest by most standards, the club had, however, a few
areas of discontinuity in operations. These inconsistencies helped explain the
club’s dire financial straits. All cars were parked by valets, which added to labor
costs. The house scotch was Chivas Regal, an expensive scotch priced at a mere $2
for a two-ounce pour (including tax and gratuity), a cost dictated by a past club
president who preferred the expensive brand to the former house scotch. Table-
cloths were of an average quality, a standard polyester blend, but the china was
Villeroy & Boch (very high quality) and the flatware was Reed & Barton (very high
quality). Luncheon steaks were Angus beef and the sandwich bread was custom-
baked at a local bakery. An interview with the general manager revealed that he
had been “helpfully advised” by some of the club members over the years; that is,
he had been pressured by governors, influential committee chairs, and powerful
members to make these and other changes based on their personal whims.
This club would have been more accurately described as a Frankenstein-club
instead of a Chevrolet-club. Certain elements of the club were so out of line with
its basic identity that the club had morphed into a monster, featuring a bit of this
and a non-related bit of that. But, after beginning the strategic planning process,
including identifying a clear vision, the club has become re-created into a success-
ful and popular country club. A visionary president and GM/COO took charge
of the arduous re-creation process in order to make the club a healthy and happy
Secrets of Creating a Strategic Vision and Mission

If the club does not have a clear vision and mission, make the process more man-
ageable by considering the following guidelines:
Encourage Flexibility and Inclusion
A number of clubs that go about the business of creating a vision and/or mis-
sion do so with one person, such as the club president, acting as the visionary.
This is expedient, but not usually effective. The expedient method for creating
a club’s vision/mission, and the one often observed at clubs, is for a strong club
president to step forward and push a predetermined outcome. While the job gets
accomplished, the product is compromised, because it is not fully accepted by club
members and staff excluded from its creation. Ideally, all stakeholders at the club
should have an opportunity to help mold and shape the club’s vision and mission.
This takes flexibility and an attitude of inclusion on the part of the club’s president,
board, and managers.
Avoid Perfectionism
Clubs are not well-served by attempts to create the perfect vision and mission,
because the perfect one of either vision or mission does not exist. Instead, clubs
are better off setting the goal that its vision/mission will be focused and clear
enough to infuse the paid staff and the club members with a definite sense of the
club’s purpose and direction. One world-famous resort club located along coastal
Florida, for example, began with a unique—but not necessarily “perfect”—vision-
ary element. Built by an owner-developer who was also an avid outdoorsman, the
club was located in an area known for a number of dressy, stuffy, “old-line” and
“blue-blooded” formal clubs. He envisioned a club that would do things differently—
a club that would be first-class without acting first-class. He described this vision
as “barefoot elegance.” Resort guests, prospective and current members, and
staff all understood what he meant. The club became a casual and laid-back club
also known for exceptional service and high-end amenities. Your club’s vision
and mission likely cannot—and perhaps should not—be fully expressed in such a
simple way. (If it is, it should not be expressed in that manner alone.) But this club’s
president had the creativity and focus to paint a picture of the club’s purpose with
just two words, and “barefoot elegance” became the reference point for everything
that the club would think, say, and do over the years.
Challenge What Holds the Club Back
The vision and mission stage of the strategic planning process is more concerned
with ideals than with present states in elucidating the club’s purpose. During this
step of strategic planning, someone might say of an idea, “Yes, that’s a great idea,
but we can’t possibly be that.” These types of challenges to your club’s ideal will
develop. In many instances, they should be seen not as stopping points but as
starting points for determining, “Why not?” One club in inland southern California
was trying to establish its reason for being. As the story goes, the club’s vision and
mission grew from the interests of one young member who had the potential to
become a world-class swimmer. Among the major problems he faced in fulfilling his
potential was the lack of an infrastructure that supported high-level coaching and
(continued)
156 Chapter 4
training, which was a seemingly insurmountable drawback, both for his interests
as a young swimmer and for the club itself. However, vision and mission drove the
club in everything that it would think, say, and do for the next twenty-five years to
become a powerhouse swimming club with one of the top Amateur Athletic Union
(AAU) programs in the nation. In hindsight, it is clear that a specific vision nurtured
a strong commitment. With that strong commitment, potential members flocked to
the club so their kids could be a part of this new, unprecedented swimming pro-
gram. Over the years, the club produced scores of world-class swimmers, including
several Olympic medalists. At the club’s peak, there was a three-year waiting list of
people wanting to join.
Realize that Consultants Are Not Magicians
Nobody understands the club better than its managers, staff, and members. Given
this reality, why do scores of clubs each year pay thousands of dollars for con-
sultants to come in and tell them what to do in terms of strategic planning? While
consultants can be very helpful, they are not magicians. Consultants can lay out
the elements of the strategic planning process, and they have the additional experi-
ence of having seen and analyzed a wide variety of solutions to fairly common club
issues. Their external expertise, however, cannot substitute for the club’s internal
knowledge of its own personality. In the end, what works for any particular club is
based on that particular club’s personality or culture.
Chevrolet-level club once again. For example, the pouring scotch at that club is
now the more appropriate Grants. Who would have thought that Grants could be
the better choice than Chivas Regal? At this club, it clearly is, because it fits in with
the club’s image and perception more effectively and appropriately.
Generic Business-Level Strategies. Ultimately, all this talk about cars is intended
to bring us closer to a full understanding of where the club is currently and where
it should be going in terms of planning and operations. Professor Michael Porter
devised a method for examining strategic planning in terms of four different lead-
ership strategies (see Exhibit 2):
•• Low-cost leadership: The focus of low-cost leadership is high sales at low cost,
the high sales being achieved by coming up with a product that will appeal
to a broad target market. Typically, new clubs offering a “no-frills” approach
adopt this sort of strategy, which allows them to be competitive by undercut-
ting other clubs in member costs, including initiation fees, dues, and other
expenses. Theoretically, a larger pool of potential members would join or be
able to join the club because of those low costs. Henry Ford’s Model T epito-
mized this strategy: cheap, simple, reliable, and with black as the only color
choice. When it first entered the U.S. market, Volkswagen used the low-cost
strategy with its original Beetle. It was priced low, it was uncomplicated, and
it was popular with car buyers across a wide range of social and economic
backgrounds. An example of a club following this strategy would be a social
club offering a large multi-purpose activity room, fold-up tables and chairs,
maybe a modest pool, restrooms, and little else.
Exhibit 2 Strategic Planning: Four Leadership Strategies
Competitive advantage source
Cost Unique
Broad Low-cost Differentiation
Breadth of target market (quantity) (price)
competitive
scope Narrow Focused low-cost Focused differentiation
target market (quantity) (price)
•• Differentiation: With differentiation, the strategic focus is on uniqueness and

price. Real estate developers might adopt this strategy, entering a market at
several economic levels with a variety of club communities. They would cre-
ate clubs of different types at a range of price points, from low to high, thereby
capturing a large number of total sales. This strategy could be compared to
that of General Motors, which offers brands Chevrolet, GMC, Buick, and
Cadillac; essentially, it offers something for every car-buyer, from entry-level
to high end. Toyota uses the same strategy under its unified brand in Yaris,
Corolla, Matrix, Camry, Prius, Venza, and Avalon, and the separate Scion and
Lexus brands that contain their own stratifications of offerings.
•• Focused low-cost leadership: Focused low-cost leadership emphasizes high
sales at low cost to a narrow target market. Clubs offering a “no-frills”
approach in a particular area, such as tennis, use this strategy. Undercutting
other tennis clubs in initiation fees, dues, and other charges allows this type
of club to attract a larger pool of potential tennis members. Years ago, British
sports car manufacturer MG used this strategy to develop its Midget brand
and sold a relatively large volume of cars to a very narrow market of peo-
ple who sought a low-priced sports car. Jeep used the same strategy when it
brought its original automobile to market. It was inexpensive, appealed to a
narrow segment of car buyers, and dominated its niche. With a focused low-
cost strategy, clubs understand that they are not for everybody. Members have
access to great tennis services and facilities, but little else. However, they offer
a great value to tennis enthusiasts.
•• Focused differentiation: Focused differentiation emphasizes uniqueness and
price, but for a narrow market. For example, some high-end, independent,
member-owned clubs offer a single membership plan at a high price, market-
ing themselves as elite and thereby appealing to a narrow, affluent audience.
Their intangible array of desirable relationships and excellent facilities helps
them capture a low number of total sales, but at high prices. Rolls-Royce and
Ferrari market in this manner.
While the focused differentiation strategy is often stereotypically assumed to
be the business model of all private clubs, any of these generic strategies can work
quite well. Remember, though, that the desirability of each strategy depends on
the goals of each particular club.
During the vision stage of strategic planning, it is essential to clarify the club’s
generic strategy. Are we going to be a low-cost club (relatively speaking, in relation
158 Chapter 4
to other clubs), a differentiation club, a focused low-cost club, or a focused differ-

entiation club? The important thing is to not allow the club to get stuck between
these positions somewhere. When a club is neither fish nor fowl, it gets into trouble.
Often, competing forces within a club’s membership demand both high quality and
low price, which can lead a club to an untenable middle ground if it tries to satisfy
both demands. The conversation may proceed something like this:
Look, I know that the regular price for a banquet is $39 per person. However,
this is an important function for a great cause. We need for you to do it for $30,
including tax and gratuity, and it has to be the best event of the year because the
senator will be attending.
Or:
Okay, here’s the plan, we really need to get a ton of new members in here. So, for
the next fifty members who join at the regular $100,000 initiation fee, let’s give
them free dues for ten years.
To begin such a fire sale on a “Rolls-Royce” club should be unthinkable,

because it would betray the club’s vision, cheapen the product, and upset current
members. Clubs that consistently stick to their chosen strategy in every decision
they make, whether it be about pricing for a banquet or ways to recruit new mem-
bers, are the most successful in the long run.
Connecting the Vision with Operations. For a club’s vision to become reality
there should be a strong connection between the vision and the day-to-day opera-
tion of the club.
MBA students often speak of operations as “the burning platform.” Envision
an ongoing business operation as an offshore oil rig that has caught fire. The oil
rig’s engineers and laborers are trained to expect a fire as part of daily operations,
and are so well-trained that the operation continues even in the midst of such a
catastrophe. The idea behind this illustration is simple: a club’s vision should be
so well-integrated into operations that, even under stressful conditions, everyone
executes his or her duties in a manner consistent with that vision.
To connect the vision with operations, make sure that discussions about the
club’s vision address these issues:
1. Define the club. This may seem an obvious task, but it should not be under-
estimated. Such discussion is essential, especially if the club has never estab-
lished a definite purpose and reason for being. Comparing the club to cars, as
suggested previously, is one way to help define the club. A private club can
also be defined by answering three questions:
•• Who are the club’s members?
•• What are the members’ wants and needs?
•• How will the club satisfy the members’ wants and needs?
2. Decide the long-term strategy. The long-term strategy should consider a time
frame reaching five to ten years or more into the future. Generally, the more
established the club, the further out into the future the time frame.
3. Communicate the vision. The vision should be stated clearly and in a way that
inspires staff and members alike. Communicating the vision in everything
that a club thinks, says, and does is as important as the creation of the vision
itself. Share the vision! Construct a concise, well-worded vision statement to
empower employees with a higher sense of purpose. For example, a painter
in the engineering department who is in tune with the club’s vision might
consider it his job to “maintain a treasured showplace,” not simply to “paint
the white trim.”
4. Recognize the difference between strategy and operations. Strategy is aimed
across the club and across time. Operations (often referred to generically as
tactics) is aimed across the various departments at the club and occurs in day-
to-day, week-by-week, and month-by-month increments.
Mission
Mission is a broad description of a club’s fundamental purpose. It includes the
broadest and highest level of club goals and objectives. A written mission state-
ment includes not only the club’s vision and purpose, but also the basic services
the club provides. The mission statement states why the club exists and how it
contributes to the overall goals of the club. Generally, the mission statement is one
that, if realized, ensures the club’s success.
To make the distinction between vision and mission, vision is a broader
approach, while mission includes the vision and then adds the basic services pro-
vided at the club. More clubs are merging the discussion of vision with mission,
with excellent results. Discussing these items together is time efficient and results
in the desired product, which is a well-developed mission statement.
More than any other element of the strategic planning process, the mission
statement picks up where the vision leaves off and spells out the first-order rea-
sons for the club’s existence in more detail. The mission statement flows directly
from the club’s vision. The mission statement should be used everywhere to com-
municate and reinforce the vision, and to remind the club community—its mem-
bers, staff, guests, vendors, and others—as to why the club exists and the basic ser-
vices it provides. To achieve this end, the mission statement should be reproduced
and printed in all club publications, including the newsletter, on club stationery
and letterhead, in advertisements, in public relations articles, club employee hand-
books, board orientation manuals, new-member materials, and even on the mem-
bership application. In short, any time you are putting together a communications
piece, consider including the club’s mission statement as a companion element.
Some clubs even print the mission statement on laminated business cards that
paid staff members carry when on duty as a reminder of the club’s basic tenets.
A properly constructed mission statement answers these questions:
•• What do we do?
•• How do we do it?
•• For whom do we do it?
To test the value of a mission statement, ask these questions:
160 Chapter 4
•• Does it foster common goals?

•• Can anyone outside the club understand what we do?
•• Can we use the statement to evaluate what we do?
A sample mission statement for a start-up club might read as follows:
The Country Club of Tarantula Canyon was created as a haven for its members.
We are second to none in our purpose to offer an extraordinary array of club
experiences, in our commitment to the highest level of member service, and in
our willingness to recognize our employees as the most valuable asset within the
club. Our allegiance to these basic elements will ensure long-term success for our
members and staff.
When creating a mission statement, clubs should carefully consider the fol-
lowing three elements as a guideline:
1. Common features: What are the club’s products and services? What markets
or potential members does the club pursue? What are the club’s core values?
What are some of the club’s broadest goals? What is the club’s competitive
position? What is the image that the club wants to portray to those outside the
club?
2. Internal scans: What are the unique strengths that the club should be known
for and build upon? What weaknesses should the club improve upon inter-
nally? If we consider reinvention, what does not exist in the present club that
should in the future? If we reengineer, what will the club look like after a
complete redesign? Is the club focusing major attention to continuous quality
improvement and total quality management?
3. External scans: What demographic shifts should the club anticipate? What
changes in products and services may come about over the next five years?
What changes in the economy are forecast? What is the club’s source of labor?
What laws and regulations could change the ways that the club does busi-
ness? What are the strengths and weaknesses of the competition? What tech-
nological trends are developing? What ecological factors should be consid-
ered?
Goals
Goals focus on future states of existence that a club strives to achieve. Goals
ensure fulfillment of the mission. How well a club achieves its goals dictates its
effectiveness.
The strategic vision transitions to performance targets through goal-creation.
Goals are evidence of the commitment by club managers to achieve specific out-
comes in keeping with the club’s vision. Managers who insist on achieving mutu-
ally agreed-upon and focused goals are far more effective in reaching those goals
than are managers who have only a vague idea of what they should be doing.
Goals are the “meat and potatoes” of strategic planning.
At this point in the process, the pure planning of strategy is beginning to be
mixed with the implementation of the strategy. To ensure that the strategic planning
process does not become corrupted with actual operations (a phenomenon referred
to as micromanagement), it is important to make a few distinctions between and
among concepts:
Strategy can be referred to in terms of two broad categories: strategic plan-
ning and strategic implementation. Strategic planning is the part of the process
that occurs before creating the major goals and objectives. Strategic implementation
picks up at the creation of major goals and objectives and continues through the
creation of the multiple-year economic model along with agreed-upon methods
for reviewing, measuring, and evaluating goal achievement. The planning portion
of strategy is fairly distinctive in that it is a broader and more creative process. Stra-
tegic implementation focuses on the creation of goals and objectives. During this
process, it sometimes becomes difficult for boards and committees to not assume
the responsibility for goal achievement. The achievement function is clearly a func-
tion of the paid staff, working under the direction of the general manager. When
goals move from the implementation stage (while still part of the strategy) to the
operational stage, they are turned over to the general manager.
Goals will differ in terms of their timelines:
1. Short-term operational goal: In general terms, an operational goal that can be

accomplished within approximately three months is a short-term goal. Just
because a goal is short term does not mean it is not vital to the club’s suc-
cess. For example, a club membership department may decide in January to
eliminate errors in the membership roster before the end of February—a very
important goal.
2. Mid-term operational goal: An operational goal that can be accomplished
within six to twelve months is a mid-term goal. For example, a club’s golf
course maintenance department might decide in January to rebuild the bun-
ker drainage system before the end of June.
3. Long-term operational goal: A goal that requires twelve months or more to be
accomplished is a long-term goal. The aquatic department may be rebuilding
the club’s swim team and, in late July, might set a goal of winning the club
novice league championships held in August of the following summer.
Unlike operational goals, strategic goals are usually larger in scope and typi-
cally have more uncertain or open-ended time frames:
1. Short-term strategic goal: In January a club sets a goal to admit a net total of ten
new members before the end of December.
2. Mid-term strategic goal: A club decides in January of 20X1 that it wants to
admit a net total of thirty new members before the end of December 20X3.
3. Long-term strategic goal: A club decides in January of 20X1 that it wants to
admit a net total of fifty new members before the end of December 20X5.
When the club achieves this goal, it will become a replacement (full member-
ship) club instead of a growth club.
162 Chapter 4
Objectives
Objectives are often described as the specific “whats” of a club. Objectives include
short-term departmental aspirations and aims. Objectives should be quantifiable,
measurable by counting and/or timing, and should serve as steps toward achiev-
ing goals.
As with operational and strategic goals, the distinction between operational
and strategic objectives is sometimes a fine one. For example, one could argue
that the short- and mid-term strategic goals used in the examples just mentioned
are actually interim objectives of the long-term goal to increase the club’s net total
membership by fifty members within five years.
As one proceeds through these initial stages of strategic planning, do not be
overly concerned about distinguishing an objective from a goal. Instead, be con-
cerned with aligning everything that the club thinks, says, does, and plans with
the club’s vision and its highest, broadest goals. Arguing about whether a given
proposal is a “goal” or an “objective” wastes time on unproductive word games.
The board plays a critical role in reviewing progress and assuring that strate-
gies are changed as appropriate. Staff working under the direction of a general
manager should carry out the objectives as well as carry out monthly monitoring
in the form of budget variance meetings. Typically a quarterly budget variance
meeting is attended by board members and members of the long-range planning
committee. If the club has a planning and evaluation unit (such as treasury), it
should play an ongoing role in monitoring progress toward goals and objectives,
and analyzing reasons for shortfalls. The main report cards for measuring accom-
plishment of goals and objectives are the budget, the management performance
review using a dashboard (described later in the chapter), and the recurring oper-
ations survey completed by the membership.
Organizational Situation Analysis (SWOT)

Situation analysis is a concept that has existed for many years. Situation analysis
helps a club establish a sense of identity and direction as to where it is currently
and where it might go in the future. Such analysis helps evaluate a club’s strengths,
weaknesses, opportunities, and threats (SWOT). SWOT analysis is a valuable tool
for planning the strategic direction of a club.
The SWOT analysis is both an internal and external appraisal. The internal
appraisal identifies the club’s strengths and weaknesses. These strengths and
weaknesses help managers establish a set of key factors for the club’s success. The
external appraisal identifies the threats and opportunities that exist in the outside
environment. This, too, helps managers establish a set of key factors for the club’s
success.
Strengths and Weaknesses. Strengths and weaknesses are internal to the club. A
strength is something positive about the club or is something that the club is good
at doing. Conversely, a weakness is where the club falls short or has a limitation.
Curiously, in conducting a SWOT analysis, an identified strength may also help
identify a corresponding weakness, and vice versa. For example, that a certain
club facility is a grand-style, 150-year-old architectural treasure may be a strength,
in that the club’s age adds value to the members’ perception of their club experi-
ence. On the other hand, the facility’s age would undoubtedly be a factor in several
internal problems, such as high maintenance costs, faulty wiring, and outdated
plumbing, which are all club weaknesses.
Do not be overly concerned that a strength in one sense could also be consid-
ered a weakness in another. Use good judgment to determine if the strengths of a
particular club attribute outweigh its weaknesses, so that the attribute should be
placed in the strength column rather than the weakness column (or vice versa).
Many club managers have heard the cautionary tale of a club GM/COO and presi-
dent who convinced the board and membership that the operational difficulties
associated with maintaining an antebellum mansion as a club facility were insur-
mountable. The building was razed and a modern and efficient facility was con-
structed in its place, but the new building’s sterile atmosphere lacked character.
The new club was little more than a modern banquet hall, and the club suffered
greatly from this misjudgment.
Lists of strengths and weakness are developed during brainstorming ses-
sions, formal club surveys, or informal conversations with and interviews of
members, staff members, and suppliers. Following this collection of data, a ses-
sion (or several sessions) should be held to help ensure agreement and consen-
sus. During this process of “consideration and assessment,” perceived strengths
and weaknesses should be considered individually in terms of relativity and
duplicity.
For example, some members might report that the club is too expensive. Club
managers and the board must use honesty and sound judgment to determine
whether this is a valid statement of weakness or simply a relative weakness—that
is, a general statement that could be attributed to all private clubs.
Eliminating duplicity (listing a club element as both a strength and a weak-
ness) requires judgment in sorting through strengths and weaknesses. For exam-
ple, suppose that a country club’s golf course has the highest USGA slope rating of
any area course. A club could perceive this as a strength—it may be a prestigious
award that earns bragging rights; or, the difficulty lures the finest golfers to the
club; or, the undulating terrain is spectacular in its beauty and elevation change.
But the fact that the club’s golf course has the highest USGA slope rating may
also be a weakness, if the course’s difficulty frustrates golfers with average to high
handicaps, thereby severely limiting the market for the club’s course as an “every-
day home course,” or if the difficulty creates an average round time of five hours,
which is a full hour longer than the typical average-round target of four hours. In
this case, club managers, the board, and others must determine whether overall
the club’s golf course is a club strength or a weakness. Alternately, the listing could
appear in both places (as both a strength and a weakness), as long as the particular
context was explained.
Once complete, the internal assessment of strengths and weaknesses helps
establish a bundle of distinctive competencies and qualities that the club is adept
at either doing or being, along with a set of issues that the club is not good at either
doing or being.
In conducting this analysis, remember that strengths and weaknesses are
internal to the club.
164 Chapter 4
Opportunities and Threats. Opportunities and threats are external to the club.
An opportunity is something that the club could explore capitalizing on. A threat
can come from a competitor, or from government regulations, or from any other
external situation that presents a challenge for the club.
As with the determination of strengths and weaknesses, success in determin-
ing opportunities and threats lies in careful analysis and judgment. Often, clubs are
quick to dismiss a finding as insignificant, but few findings are insignificant. In fact,
those clubs that are particularly successful in identifying opportunities and threats
are those that can identify emerging trends that go unnoticed by other clubs.
A growing trend among seasoned strategy experts is to work through oppor-
tunities and threats before identifying strengths and weaknesses. These experts
believe that opportunities and threats from the outside drive the club’s internal
strengths and weaknesses, rather than the other way around.
An opportunity based on competition may be that a neighboring club burned to
the ground, and present zoning only allows it to build back 50 percent of its pre-fire
square footage. This creates an opportunity for a neighboring growth club, because
the rebuilt club may no longer have the capacity to handle its former membership.
A situational opportunity for a remote club may be that the state transporta-
tion department has approved the construction of a new bridge, which will put the
club within twenty miles of the major population center of the area, as opposed
to the forty-mile journey that people in the populated area must currently take to
reach the club. Because of the new bridge, the club will become more geographi-
cally accessible and thus potentially more desirable to a larger number of people,
creating a clear opportunity for growth.
Threats can be classified similarly. A threat from the competition may include
plans for a major new country club to be built within three miles of the club. A
governmental threat may be a lowered blood-alcohol level requirement for DUI
or DWI offenses. Such a mandate might then threaten the club’s beverage sales,
and might also put the club at greater risk for alcohol liability and liquor-related
lawsuits.
SWOT Analysis Examples. If the external analysis uncovers an opportunity for
the club and the internal analysis reveals corresponding internal strengths, then
the club has a tremendous chance to capitalize on the opportunity.
Continuing with one of the previous examples, if the club that has the new
bridge being built nearby, thereby bringing the club closer to the population center
(external opportunity), is a “growth club” with a number of memberships avail-
able for sale (an internal strength due to availability), then the club has a tremen-
dous opportunity to sell new memberships.
The following chart illustrates this example:
Internal Strengths Internal Weaknesses

Growth club
External Opportunities External Threats

New bridge
If a club’s external analysis identifies an opportunity but its internal analysis
reveals weaknesses that make it difficult or impossible to take advantage of the
opportunity, the club has a limited ability to capitalize. For example, if the “new
bridge club” is a replacement club with few memberships available, it has a rela-
tive weakness due to availability, and thus has only a limited opportunity to capi-
talize on selling memberships. This situation can be represented as follows:

Replacement club

New bridge
If a club’s external analysis reveals a threat, but its internal analysis reveals a
strength that can help the club offset or cope with the threat, then the club has the
ability to respond to the threat successfully. For example, if the state lowers the
BAC requirement for DUIs, but the club has an outstanding alcohol awareness
program in place, the club has the ability to minimize the impact of this threat.
This example could be illustrated as follows:

Alcohol awareness program

Lowered tolerance for DUI
If a club’s external analysis determines a high degree of threat and its internal
analysis reveals weaknesses in its ability to respond to the threat, the club faces its
worst operating position. For example, if a new, developer-owned club will open
next year within two miles of a club that has not provided acceptable service to
its members, the poor-service club faces a severe threat to which it likely cannot
respond effectively:

Poor member service

New developer-owned club
In any SWOT analysis, whether club-wide or by department, a key to extract-

ing meaningful information is to chart and compare the club’s strengths and weak-
nesses. One way to do that is to prepare grids similar to the ones presented in this
section.
166 Chapter 4
Strategy Statement
The object of effective strategy is to capitalize on a club’s strengths in a way that
helps it develop sustainable advantages in its marketplace. After all, all GMs/
COOs, boards, committees, members, and paid staff want their particular club to
be the club of choice. To develop and highlight their strengths, clubs can choose
one or more of the strategic methods listed in the following paragraphs.
Enhancing Differentiation. With the enhancing differentiation strategy, the
club concentrates on becoming more appealing in one particular area. The inter-
nal SWOT analysis identifies the club’s internal strengths (and weaknesses). To
enhance its differentiation from other clubs, the club simply focuses on improving
its strength in particular areas.
For example, one club located in a competitive area with high demand for
golf times might add lights, thereby allowing play long past sundown. In fact, one
club in Arizona worked through this exercise and added lights to its five finish-
ing holes, effectively accommodating an increase of almost fifty members per day.
Such a situation could be illustrated in this manner:

Willingness to innovate Low availability for increased
Dollars available for capital rounds of golf on present
improvement course

High demand for golf
For another example of a club improving on a strength, a club with a Golf

Digest–rated top-100 golf course spent an extra $200,000 on grooming and con-
ditioning its course, thus spending capital dollars to enhance an already superior
aspect of the club in order to attract new members, further satisfy current mem-
bers, and perhaps move up in the Golf Digest ratings.
Enhancing Superiority. A club using the enhancing superiority strategy endeav-
ors to exploit a competitor club’s weaknesses or to emphasize its own noncompeti-
tive strength.
Exploiting weakness: To exploit another club’s weakness, a Nevada club
replaced all of its greens with pure, Bent grass greens, thus highlighting the course
condition of a competitor, which had bumpy, 25-year-old Poa Annua–infested
greens and was not an ideal course by comparison. The following chart illustrates
this exploiting weaknesses strategy:

Willingness to innovate
Dollars available for capital
improvement

Competitor has
Poa Annua–infested greens
Enhancing noncompetitive strength: A West Virginia club emphasized its non-

competing strengths by publicizing the club-owned bowling center, equestrian
center, “dive-in” movies at the pool during summer, and indoor shooting range.
Exploiting noncompetitive strengths, especially when perceived as having real
desirability, can add tremendously to the club’s value equation in terms of attract-
ing potential members or retaining and satisfying existing members. This example
of enhancing a noncompetitive strength might look like this:

Bowling center
Equestrian center
Pool “dive-in” movies
Indoor shooting range

Competitor clubs offer only golf
Innovating. Clubs interesting in an innovating strategy would develop new

products or services that do not presently exist at the club or at competing clubs.
The list of potential new products and services is endless. The key is to innovate
into areas that will be appreciated and used by the club’s members or at least be
perceived as providing new, different, and desirable products and services. One
example of innovating would include a well-known club in Texas that, over time,
added a club dry-cleaners, a tailor shop, a stylist, casual-use office space, a retail-
type convenience store, a business center, and a club-sponsored American Express
card. This example of innovating is illustrated below:

Willingness to add new products or
services
Excess space available
in clubhouse
Dollars available for capital
improvements

Competitor clubs unwilling or unable
to add new products
or services
168 Chapter 4
Revolution. The revolution strategy can be an effective strategy, especially when

drastic measures are required to improve the club or its performance. A “revo-
lution” strategy changes the fundamental and accepted way the club conducts
business. For example, a growth club located in Louisiana adopted a policy of
nondiscriminatory tee times among male and female members. This was seen as
a very revolutionary initiative by the surrounding communities. Revolution is an
extremely effective strategic initiative for a club hoping to gain new members and
distinguish itself in a market dominated by old-line, established, traditional com-
petitors. The revolution strategy could be illustrated in this manner:

New club
No existing tradition or policies
Willingness to use revolution

Competitor clubs are old-line,
traditional, unwilling to change
Demand from female golfing
community
Once a club has identified and chosen a strategy, the strategy is then written
as a statement. The strategy statement explains how external opportunities will be
exploited by the club’s internal strengths. Threats and weaknesses, in the strategy
statement, are either avoided or mitigated with suggested counter-measures.
Specific Strategies for Clubs. Major club departments and constituencies often
refer to themselves as being the drivers of their clubs. Golf members may not value
another sport or activity, forgetting that an integrated club must offer a wide vari-
ety of facilities to keep all members involved and engaged. The following list of
strategies helps clubs allocate resources to a wide variety of constituencies:
•• Surplus maximization. A club operates in a manner that retains and stock-
piles surplus dollars at the end of each year with the idea of undertaking a
major renovation and/or expansion when enough money is retained to do the
project without borrowing money or assessing members. Example: Retaining
surplus dollars each year for five years until there is enough money set aside
to fund the building and equipping of a health club.
•• Usage or targeted maximization. A club sets a goal of serving the highest num-
ber of users of their services by offering very high value. This is a common
goal in the food and beverage department, but could also apply to a summer
swim program for juniors or even to the bridge players in the card room.
•• Full or partial cost recovery. A club manages its programs and services so that
it financially breaks even, providing only as much as finances allow. Typi-
cally, full cost would be defined as covering labor and cost of goods, so it is
not actually full cost recovery. Perhaps a club agrees to do a Napa wine tour
if it can get ten advance sign-ups.
•• Budget maximization. A club maximizes the size of its staff, services, and oper-
ating expenses regardless of revenue. This is an older club concept. An exam-
ple may be that the club offers a dinner dance with an elaborate buffet and a
live music three-piece combo every Friday night, because it is thought of as
what the club is all about, even though on certain Friday nights the club only
does a dozen or less covers.
•• Member satisfaction maximization. A club offers extreme value on selected
events and services as a recurring thank you and membership retention tool.
An example may be that a club offers a Saturday morning breakfast buffet to
the golfers for $2.95, or a happy hour every Friday evening with complimen-
tary hors d’ oeuvres and $.99 glasses of wine.
Binding Future Boards. Boards often work diligently at planning a club’s future,
only to find that incoming board members and officers seem to change the club’s
direction on impulse. This phenomenon occurs in clubs with regularity, due to the
governance pattern that most clubs follow. On average, clubs change presidents
and other officers every year and maintain staggered board terms that turn over
completely every three years (three-year terms). To illustrate, a new club would
elect a board of nine members. Three board members would have one-year terms,
three would have two-year terms, and three would have three-year terms. From
that initial board, each subsequent year, the members would elect three new board
members, each into three-year terms.
Boards wanting to help ensure continuity once vision, mission, and direction
are established (or re-established, as the case may be) can follow these strategies:
•• Bylaw method. Adopting a bylaw change stating that a “substantial change”
(which will need to be defined) to club strategy requires a vote (either a simple
majority or a two-thirds super majority) of the membership. This is the most
complex method, as it requires a bylaws change, which is complex, time-con-
suming, and expensive. The bylaws method often works well when the club
is undergoing a bylaws review with the idea of anticipating other updates.
•• Inclusion method. Another option would be to communicate within the strat-
egy (the written plan) and to the membership that any substantial change to
this strategy requires a vote (usually a simple-majority vote) of the member-
ship, or the board, or the executive committee. This is a less complex method,
but may not be as strong if a challenge were to occur.
Defining a substantial change. Clubs vary widely in the way they define a
substantial change. Whatever the club’s decision, ensure that the definition accom-
plishes its intended function (slowing tampering with the plan) while still allowing
the club some flexibility. For example, a club may create a set floor amount, such
as any change to income or expenses in the amount of $50,000. Another method
might include a set percentage change (either positive or minus) on any income or
expense item, such as 20 percent.
170 Chapter 4
Before undertaking either of these methods, it will be important to consult

with and involve the club’s legal counsel. Further, this may be one of those issues
that could benefit from consulting with the club’s past presidents as well.
Budgets
There are three types of budgets that clubs must create and manage: normal capi-
tal budgeting, project capital budgeting, and operations budgeting.
Normal Capital Budgeting. The majority of clubs do not have unlimited capital
reserves. In fact, most clubs do not fund depreciation. Instead of funding depre-
ciation, they traditionally spend about two to three percent of gross revenues on
normal capital items such as furniture, fixtures, and equipment (often referred to
as “FF&E”). In recent years, and in view of the proliferation of developer-owned
clubs coming into the market, many clubs are finding it necessary to spend seven
to eight percent of gross revenues annually on normal FF&E in order to maintain
their elite-class standards. (As a point of comparison, it is noteworthy that several
of the resorts in the four- and five-diamond category spend as much as nine per-
cent or more of gross revenues annually on normal FF&E.) A club’s strategic plan
should help prioritize capital budgeting.
Project Capital Budgeting. Often clubs refer to major rebuilding, remodeling, and
“adding-on” as “project capital.” Funding for project capital may come from capi-
tal reserves (unspent capital), a supplemental monetary commitment from normal
capital over time, assumption of debt, or an assessment of the members. A member
assessment may come in the form of a cash requirement, either as a lump sum or
as payments over time, to fund the project. The strategic plan should also priori-
tize project capital budgeting.
Operations Budgeting. The process of operations budgeting by department is
a tremendously time-consuming part of effective club management. Operations
budgets consider how and when revenues will flow into the club and how and
when expenses will flow out of the club. Operations budgets should be created in
painstaking detail and should be broken down into expected increments. When
completed, operations budgets should answer the questions, “What?” “Why?”
“When?” and “How many?” (or how much, as the case may be).
For example, if the membership department was budgeting revenues, bud-
getary assumptions would be supported by answers to these questions:
What? “The goal is twenty net new members for the year.” (Also answers
“How many?”)
Why? “The club is a growth club and, consistent with the strategic plan,
the club will allow a growth of twenty net new members per year.”
When? This would be a statement that projects when during the year the
new members will join the club. For example, club managers might proj-
ect the following:
“Consistent with the club’s resignation and join pattern over the past five
years, we forecast this seasonality during the following months”:
Month Number of members Resignations New member

at beginning of month during month joins
January 360 0 0
February 360 0 2
March 362 1 3
April 364 0 2
May 366 2 6
June 370 0 3
July 373 0 2
August 375 0 2
September 377 1 3
October 379 0 1
November 380 0 0
December 380 0 0
Total 380 4 24
These written assumptions will help explain any subsequent variance. They
will help managers determine whether budget variances are permanent or simply
the result of timing issues. The chart also provides a basis for forecasting member-
ship revenues by month.
Operations budgets should flow from the club-wide grand strategy and the
supporting departmental strategies.
Creating an Economic Model. The culminating effort of the budgeting process,
including normal capital budgeting, project capital budgeting, and operations
budgeting, is to forecast these elements for the next five to seven years and create
a package that is often referred to as the “economic model.” The creation of an
economic model aids any club, in that it prioritizes and forecasts major and minor
regular and project capital expenditures and annual budgets.
An economic model smoothes the annual budgeting process, in that as years
progress, each year moves one place to the left toward becoming the operating
year (referred to as “year one”). As this moving occurs, years two and three are
typically gradually refined to the point where they are a natural progression in the
budgeting process instead of the product of a stressful and demanding October
push to come up with an operating budget and package that goes into effect in
January (assuming that the club’s fiscal year begins in January). The creation of
an economic model has the added advantage of helping bind future boards into
continuing with the established plan.
172 Chapter 4
Exhibit 3 Implementing Action Plans

Strategy (What)
Clear Strategy Unclear Strategy
(+) (–)
Effective Success in past and Success in past;
Operations future. doubtful future.
Operations (+) (+/+) (+/–)
(How) Ineffective Some success in Failure in past and
Operations past; doubtful future. future.
(–) (–/+) (–/–)
Action Plan
The action plan comes together after planning and budgeting are completed. Often
referred to as “operations” or “implementation,” the action plan is the realization
or practical application of the strategic planning effort. Strategy and operations
meet during action planning. The strategy is what the club will do; operations, the
action plan, is how the club will do it (see Exhibit 3).
There are four scenarios in which strategy meets operations. Knowing these
scenarios provides an understanding as to how the implementation is likely to
occur. In the best case, the club has clear strategy and effective operations; the
likely result is that the club has enjoyed success in the past and will also do so
in the future. If the club has a clear strategy but ineffective operations, the club
has likely enjoyed some success in the past; however, future success is in doubt.
Similarly, if the club has an unclear strategy but effective operations, the club has
probably enjoyed success in the past, yet future success is doubtful. In the worst
scenario, the club has an unclear strategy and ineffective operations. Most likely,
the club has failed in the past and will likely fail in the future unless major changes
are implemented.
Assessing Progress
Whatever form the action plan takes, being able to measure whether the club
is accomplishing its goals, objectives, and strategic initiatives is vital. The foun-
dational element for controlling and monitoring progress is a connection to the
“counts” and “times” (the objective measures) created in the budgeting process.
For example, a renovation of the mixed grill, approved in the capital budget,
would have developed from a strategic initiative and would include assumptions
of what, why, when, and how much. The objective measures for evaluating its suc-
cess—timing and dollars spent—are the answers to “when,” and “how much.”
Monitoring and assessing progress should be continuous, occurring during the
renovation as well as after completion of the project. Monitoring serves two pur-
poses: (1) it keeps all departments and functional areas on track, and (2) it ensures
that accomplishments move the club toward its long-range goals (those outlined
in the strategic plan).
Strategic Implementation Analysis
Strategic implementation analysis is the process of examining a club’s efforts to
ensure that operations efforts are driven by strategic initiatives. Often, clubs spend
tremendous effort, time, and money to create a strategic plan, then fail to integrate
it into operations. The flurry of day-to-day operations creates confusion between
what the club would like to become (its ideal, as defined by its strategic plan) and
what it is (its current state, as defined by operations and implementation). The
strategic implementation analysis form (see Exhibit 4) allows a manager to rate
how well the club aligns and coordinates its strategic plan with implementation,
and helps the manager bring these two aspects more into alignment, if necessary.
Ideally, club operations flow naturally from the overall strategic efforts of the club.
The headings of the following sections provide a checklist of issues that club
managers should concern themselves with in managing the effective implementa-
tion of the club’s strategy.
Creation of Grand Strategy

Has the board determined what it wants the overall club to be in both nature and
direction over the next several years? An overarching approach and agreement
to club-wide direction from the board is referred to as grand strategy. Much like
a road map for the club, the grand strategy provides a direction for the club and
should be the foundation and reference point for everything the club thinks, says,
and does. This grand strategy should be written down and referred to often.
Agreement. Is there agreement about the grand strategy? As the foundation for
everything the club thinks, says, and does, the grand strategy should be agreed to
by all board members, officers, and senior staff. Do not be surprised if agreement
does not come easily; agreement usually develops over time. However difficult a
process, agreement about the club’s grand strategy is a valuable outcome. Efforts
made to bring the board, members, and staff into agreement and alignment create
a strong club identity.
The GM/COO as an Integral Part of Grand Strategy. Though unlikely, it is con-
ceivable that the club does have an agreed-upon master plan for the club in the
form of the grand strategy, but management has been left out of the loop. GMs/
COOs should, to the extent possible, ensure that they are made an integral part
of the planning and development process in clubs where grand strategy is a new
initiative. In clubs that already have a grand strategy, GMs/COOs should reinforce
the importance of the agreed-upon outcomes as guiding principles for the club.
Successful GMs/COOs position themselves not only as chief operating offi-
cers, but also as chief administrative officers for board proceedings. As such, they
become chief advocates for continuity of the grand strategy across all club con-
stituencies. GMs/COOs are responsible for implementing the elements of the stra-
tegic plan on the operational level. They can be much more effective if they take an
active role in the grand strategy and the specifics of the club’s strategy.
Communicating the Strategy. Assume that as the club’s GM/COO you are famil-
iar with the club’s grand strategy. Are you sharing that plan with direct reports as
174 Chapter 4
Exhibit 4 Strategic Implemention Analysis Form
Strategic Implementation Analysis Form

(Fill in the name of your club here)
Complete the form based on your observations in order to calculate an objective score.
Rating Scale:
2 = Standard is consistently demonstrated.
1 = Standard is inconsistently demonstrated.
0 = Standard is not demonstrated.
Please use the rating scale above to fill in the blanks below:
___ 1. The board of governors has determined what it wants the club to be
over the next several years—it has formed a grand strategic plan.
___ 2. The grand strategic plan of the club is a comprehensive, written docu-
ment that the club uses as a reference for everything that it thinks, says,
and does.
___ 3. The grand strategic plan has been agreed upon by the board members,
officers, and senior staff of the club.
___ 4. Management has been included in the grand strategic planning process
or in the outcome of what was decided and thus created.
___ 5. The GM/COO and other club managers share, refer to, and reinforce
the importance of the grand strategic plan with their direct reports and
all other club employees.
___ 6. The grand strategic plan can be stated simply and clearly—within thirty
seconds—by any board member or manager of the club.
___ 7. The strategic plan is used as a guide to create new services, products,
and markets.
___ 8. Strategic considerations and discussion converge in joint meetings
together with long-range planning efforts.
___ 9. All planning and operational efforts have been funneled through the
strategic planning committee.
___ 10. An analysis of internal strengths and weaknesses has been performed
on the club as a whole within the past twelve months.
___ 11. An analysis of internal strengths and weaknesses has been performed
at all departmental levels within the past twelve months.
___ 12. An analysis of external opportunities and threats has been performed
on the club as a whole within the past twelve months.
___ 13. An analysis of external opportunities and threats has been performed at
all departmental levels within the past twelve months.
___ 14. The strategic plan plays a major part in prioritizing and allocating capital
during normal capital budgeting (for furniture, fixtures, and equipment).
___ 15. The strategic plan plays a major part in prioritizing and allocating capital
during project capital budgeting (for major renovations).
___ 16. Any club goals that are created relate to the strategic plan.
___ 17. All goals are SMART—specific, measurable, acceptable, realistic, and
time-bound—and thus, complete.
___ 18. Goals are all written in specific terms by including answers to the follow-
ing questions: Who? What? Where? When? Why? How? Who cares?
___ 19. Reporting includes brief descriptions to help set the tone of the report—
whether positive or negative—and quantifies those descriptions with
objective measurements.
___ 20. Objective, informal evaluation of employees is conducted in the employ-

ees’ workspaces throughout the club at least monthly and includes
informal, objective updates on accomplishment of strategic initiatives.
___ 21. Formal evaluation of employees is conducted in private with all employ-
ees individually throughout the club at least semi-annually and includes
formal, objective measures.
___ 22. Accomplishment of strategic initiatives is described during the formal

evaluation process and includes quantifiable, objective measurement.
___ 23. Quantifiable variance analysis meetings with department heads are
facilitated by the GM/COO on a monthly (or periodic), quarterly, semi-
annual, and annual basis.
___ 24. All managerial employees participate in an objective incentive bonus

program based on financial management, service management, and
achievement of strategic initiatives that can be explained clearly by
each participant within thirty seconds.
___ 25. All club employees participate in an objective incentive bonus program
based on financial management, service management, and achieve-
ment of strategic initiatives that can be explained clearly by each partici-
pant within thirty seconds.
___ Total Score

To obtain the total score, add your ratings for questions 1–25.
(continued)
176 Chapter 4
Interpreting the Score

Please refer to the ranges listed below to help explain the club’s current score.
Score Explanation
0–20 Grade: F to C- Ribbon: Participant

Some focus on the strategic plan, but operations and short-term, non-
integrated thinking dominate. Few to no formal programs exist to help
foster a commitment to the strategic plan as the foundational element of
the club.
Outlook: The board members and club managers have a tremendous
opportunity to create a strategic infrastructure and culture.
21–30 Grade: C to B Ribbon: Green

Some strategic focus, but few operations are tied to measurable
outcomes. Accomplishment of strategic initiatives is occasionally
discussed. Few programs exist to help support a commitment to the
strategic plan.
Outlook: The club’s board and management team have a unique
opportunity to create an integrated, strategic infrastructure and culture.
31–40 Grade: B+ to A- Ribbon: Red

A strategic focus is expected and fostered. Operations are tied to
measurable outcomes and accomplish strategic initiatives, but may fall
short at times. Many programs exist to help support a commitment to
the strategic plan.
Outlook: The board and management team have a solid plan in place
and have a superb opportunity to further integrate a strategic infrastruc-
ture and culture.
41–50 Grade: A to A+ Ribbon: Blue

A strategic focus is expected, fostered, and tied to measurable results
and the accomplishment of strategic initiatives. Occasional discontinuity
is tested against the strategic plan. Fully integrated programs support
the strategic plan.
Outlook: The board and management team have an excellent plan in
place and have a unique opportunity to inch this club further toward a
world-class, strategy-based infrastructure and culture.
well as every other club employee? Are you reinforcing the importance of the plan
and using it as a central theme in everything that you think, do, and say at the club,
whether with subordinates, club committees, individual members, or suppliers?
Do key managers understand and share the same vision of the club’s grand strat-
egy and use it as a guide for their departmental strategy? All of the club’s senior-
level managers who work directly with the board should refer to and reinforce the
importance of the strategic plan when discussing any issues.
Checking for clarity and conciseness. There is an exercise referred to as the
“Elevator Test” that works well in illustrating the need for clarity and conciseness
when expressing the club’s overall strategy. Imagine for a moment that you are
riding down from the twentieth floor to the first floor in an elevator at your club
with a prospective member, and he or she asks you to explain what your club is
all about. Could you do it before the doors opened on the first floor? Where would
you begin? What would you say?
The elevator test suggests that the GM/COO, as well as other department
managers and sports professionals, the club’s board members, and members of
the long-range planning committee, should visualize the club’s strategic plan,
including its vision, mission, and major goals and objectives, as a daisy chain of
connectedness. As such, you should be able to organize your thoughts and answer
the “What’s your club all about?” question simply, clearly, and in less than thirty
seconds. Impossible? If your answer is “yes,” then you need to better organize
your thoughts and/or simplify or clarify the club’s strategy. Practice reciting the
thirty-second version of the club’s strategic plan until the answer becomes second
nature. If you cannot explain the club’s strategy clearly and concisely before the
elevator doors open, you or the club’s written documents are stating the strategy in
terms that are disorganized or too complicated. Organize. Simplify. Clarify. Refine.
Using the Grand Strategy to Create New Club Services. A clear grand strategy
allows department heads to align their daily operations with the strategy and
guide the creation of new services, products, and markets. Additionally, a clear
strategy suggests services, products, and markets that the club will not pursue.
This “here-and-now” application of the strategic planning process is an important
key to the success of the club-wide effort and has a tremendously important focus-
ing quality.
Consider the scenario suggested earlier in the vision discussion: Members
visit another club and return with suggestions that they want the club to adopt.
A clear strategy can be an effective filter for these types of suggestions. Do the
members’ suggestions fit in with the club’s strategy? If not, they should not be
implemented.
A clear strategic plan, like the vision and mission that help define it, is a foun-
dational element of the club. Refer to the strategy to ensure that your Chevrolet
club, Mercedes club, or Ferrari club stays true to its roots, maintains its distinctive
identity, and does not become a Frankenstein club, as we discussed earlier.
Strategic and Long-Range Planning Should Complement Each Other

While both strategic and long-range planning are often spoken of as being syn-
onymous, there are a few key fundamental differences in the functions that each
178 Chapter 4
perform. Essentially, long-range planning focuses on what a club wants to look

like over time, and strategic planning focuses on how a club will get there.
Long-range planning forecasts both internal and external conditions and real-
ities and plans how a club can function effectively within them. Because it involves
planning and predicting over multiple-year periods, it cannot be as specific as
short-term or operational planning, which generates a work plan with detailed
annual objectives, tasks, methods, timelines, and responsibilities.
Strategic planning is a process by which leaders of a club pick up on the long-
range planning of what a club intends to be in the future and develops a plan
as to how it will get there by creating and assigning priorities, procedures, and
operating strategies to achieve that vision. Included are measurable goals that are
realistic and attainable, but also challenging; emphasis is on long-term goals and
strategies, rather than short-term (such as annual) objectives, which almost always
appear in the present-year operations budget.
Just as the strategic and long-range plans should complement each other, so
too should the hierarchy charged with those planning efforts work fluidly and
consistently. There is much variation among clubs’ strategic and long-range plan-
ning efforts, but typically one of the following three scenarios occurs in clubs:
1. No strategic or long-range planning. The least desirable scenario for a club is
that it has neither a strategic planning nor a long-range planning committee.
Clubs without either committee are at a distinct operational disadvantage;
their product offerings, markets, and services tend to develop as reactions to
member comments, without cohesion or structure. If the formation of strate-
gic and long-range planning committees is currently impractical for the club,
an ad hoc committee that occasionally reviews the club’s strategic and long-
range planning efforts is better than nothing at all.
2. Merging strategic and long-range planning. The second configuration merges
strategic planning with long-range planning into one standing committee.
While this is often a very effective model, the demands on the committee
members are numerous. The success of the single committee depends on
the organization of work: What are members of the committee charged with
accomplishing? If duties are not carefully decided, assigned, and prioritized,
the committee members can become overwhelmed with work. This is espe-
cially the case in an existing club that establishes a combination long-range
planning and strategy committee for the first time.
3. Separate strategic and long-range planning. The third governance model sepa-
rates long-range planning and strategic planning into two discrete standing
committees. The functional advantage of having two committees is the poten-
tial division of work among the volunteer, member-composed committees.
There is not an unreasonable time commitment required of either committee.
The main disadvantage is the separation of planning issues and coordination
of the committees’ efforts. Simply stated, long-range planning efforts should
not be separated from strategic considerations.
Given these three scenarios, the one most common and perhaps most practi-
cal for the average club is the single-committee model. Though the demands on
committee members are larger, coordination of effort is streamlined, which is often
the most important consideration in planning efforts. Clubs without a long-term
planning and/or strategic planning committee should create one.
If we assume that a club merges the functions of its strategic planning and
long-range planning efforts into one committee, it is that committee that helps
ensure the future success of the chosen strategy. It becomes one of the committee’s
most important functions to serve as the club gatekeeper for proposed programs
and major changes. It is also incumbent on this committee to serve as a consistent
and reliable committee for making sure that the agreed-upon strategic plan is fol-
lowed closely and achieved. (Gatekeeping will be discussed further in the next
section.)
The Strategic Plan as a Living Document

Is strategy treated as if it were the blood that courses throughout the body of the
club? If not, it should be. A club’s strategic plan should be the “nourishment” for
everything that a club plans, projects, and budgets, as it is the lifeblood of all dis-
cussion at the club.
At times you may feel frustrated and confused as to why it seems as if all
planning and operations are funneled through the strategic planning committee.
Take heart; that is the very purpose of the committee. When a long-range planning
committee and/or strategic planning committee is established in an existing club,
the committee becomes the club’s gatekeeper for two important reasons:
1. The strategic plan flows from the club’s vision and mission, while operations
flow from the strategic plan. Because strategy flows from vision and mission,
all ideas for new products or changes or improvements to the club must be
“filtered” through the strategic planning committee to ensure that they are
consistent with the club’s vision and mission. With this system in place, ide-
ally all board members, all committees, and all staff members at all levels of
operations will soon begin to ask themselves the question, whenever a new
idea for the club comes up: “Is this consistent with the club’s strategy?” If so,
the conversation should continue and perhaps the idea will move all the way
to implementation. If not, the idea should be either discarded or filed away
for future discussion and possible implementation, should the club’s strategy
ever change.
2. All current practices should be filtered through the strategic plan. The commit-
tee is an evaluation tool not only for new ideas, but also for what’s currently
going on at the club. Sometimes old club products, services, or operational
procedures pre-date the club’s current strategic plan. These “unfiltered” club
elements should pass through the strategic planning committee to ensure
that all club elements are aligned with the club’s strategic plan. Otherwise,
“filtered” or committee-approved operations are mixed in with unfiltered
operations, to the detriment of the club’s strategic vision. This type of club
is a conglomeration of misaligned functions and is in danger of becoming a
Frankenstein club.
180 Chapter 4
Understanding the Internal and External Environment

Strategic planning includes an internal analysis of what a club is adept at doing
and where it falls short, as well as an outward look at the external environment
and its challenges and opportunities. An internal analysis is often referred to
as a situation analysis or SWOT analysis. As discussed earlier in the chapter, a
SWOT analysis, which identifies a club’s strengths, weaknesses, opportunities,
and threats, indicates a club’s current position. A SWOT analysis may be used on
a macro level to evaluate the club as an overall entity, or on a micro level to get
a “snapshot” of a particular aspect of the club, such as the golf course, food and
beverage department, membership department, or any other department or area
of the club.
During a SWOT analysis, a club serves as its own critic. Besides providing
perspective and understanding of the club’s position, a SWOT analysis helps a
club create a clear strategic plan, either for the club as an entity (grand strategy) or
by department (business strategy). All business strategies should align with and
complement the grand strategy.
A SWOT analysis should be performed for the club as a whole and for each
department within the club at least one time each year. It can be an valuable exer-
cise, if it is carried out in a frank and honest manner. On the other hand, if it is
handled in a political manner, the exercise can become a waste of time.
Using the Strategic Plan to Allocate Capital

Throughout the budgeting process, the strategic plan should play a major part as
a reference tool for prioritizing needs and distributing capital. Capital requests
should be made with the club’s strategic plan in mind.
For example, suppose that the greens committee and golf committee have sup-
ported a proposal by the GM/COO, the golf course superintendent, and the direc-
tor of golf to begin hand-mowing greens instead of tri-plexing greens, to begin
tri-plexing fairways instead of gang mowing fairways, and to begin gang mowing
the rough instead of flail mowing the rough. In the proposal, the economic impact
of the mowing changes has been stated in terms of operations (increased labor)
and capital expenses (purchasing hand-mowers and gas carts with trailer combi-
nations for transport).
Since this is an expensive proposition, it is likely that this proposal would
be turned down at many clubs unless it dovetailed with the club’s strategy. In
this case, the club had a strategic initiative to improve the condition of the club’s
golf course by 25 percent within two years. Therefore, the club’s board approved
the proposal as consistent with the club’s strategic plan. In this case, everyone
involved—the GM/COO, the golf course superintendent, the director of golf, the
greens committee members, the golf committee members, and the club’s board—
kept the club’s strategic goal for the golf course in mind, and so time was not
wasted on a proposal that had nothing to do with the club’s strategic vision, and
the proposal was approved with no difficulty. Clubs that use the strategic plan
to allocate capital do not waste money on projects that have nothing to do with
advancing the club’s strategic vision.
Aligning Strategy with Operations
As the strategic planning process trickles down from grand strategy to depart-
ment (business) strategy to operating the club in a strategic manner, this list of
guidelines will help ensure that goals, objectives, projects, and tasks align with
those created at higher levels:
•• Where are we going? Supervisors and department managers should commu-
nicate the plans for the department, making it clear exactly where the depart-
ment is heading, including its goals and objectives for the year.
•• How do we want to get there? In addition to communicating and clarifying
where the club and department are headed, it is vital for supervisors and
department managers to communicate in detail how the department will
achieve its goals and objectives. It is helpful to break goals and objectives into
weekly, monthly, quarterly, semi-annual, and year-end segments. Creating
this level of detail helps focus attention as to how overall goals and objectives
funnel down into daily operations.
•• Establish goals and objectives for individuals and teams. In an ideal situation and
over time, all club employees, departments, and teams should be involved in
the establishment of goals and objectives that they can be given the power to
achieve and can accept the responsibility for achieving.
•• Prioritize. Club employees at all levels are often bombarded by so many tasks,
projects, objectives, and goals that they can become overwhelmed, lose track
of a clear focus, and actually become less productive as a result of the ensuing
confusion. Effective supervisors and managers anticipate these scenarios and
solicit questions about priorities on a regular basis.
Monitoring Goal Achievement

If, over time, the club has gotten departments, groups, teams, and individuals uti-
lizing systems of mutually agreed-upon goals and objectives, club managers must
now create a system whereby achievement can be monitored easily. The founda-
tional elements in an effective monitoring system ensure that goals and objectives
can be tracked easily, that progress and results can be accessed by the supervisor
and the person(s) responsible for the outcome, and that progress and results are
reported using objective terms instead of subjective terms.
Reporting in Objective Terms. Objective terms include times, counts, dates, and
other details. Many results are expressed in subjective terms, which is an impre-
cise method suggesting that the reporter has not done his or her homework in
knowing the precise answers.
Examples of subjective terms:
•• We were really busy and did a lot of covers.
•• We will probably finish up that project by about summer.
•• Food cost at the snack bar was relatively low.
•• Labor at the Turn is quite expensive.
182 Chapter 4
Envisioning and Initiating Change

Strategic planning often leads to changes at a club. Normally, change is instituted
and occurs from the higher levels of management and volunteer governance.
Change can involve physical structures or equipment, but change almost always
involves staff and has an impact on their attitudes, behaviors, and work processes.
The following list helps define and identify the people involved in visualizing and
implementing change at a club:
•• Change sponsors. Change sponsors can be defined as individuals within
the club who are convinced of the need for change and have the power and
influence to both initiate and implement change. Change sponsors include the
club president, board members, key committee chairs, the general manager,
and key department heads or sports professionals.
•• Change agents. Change agents can be defined as persons within the club
who are convinced of the need for change and are responsible for assigning
initiatives, projects, tasks, and day-to-day efforts that make change happen.
Change agents include the general manager, department heads or sports
professionals, and supervisors.
•• Change targets. Change targets can be defined in terms of physical struc-
tures or equipment, but, as stated previously, club change almost always
involves staff, including attitudes, behaviors, processes, and ways of doing
things that must change.
Here is an example of how these three types of people involved in change
might interact. The club president (change sponsor) recognizes that the mixed grill
needs to be remodeled and prioritizes the project as one of his or her initiatives for
the year. The GM/COO and the food and beverage director (change agents) agree
with the president and take on the responsibility for getting the project accom-
plished. The mixed grill (the physical remodeling) and the staff who will work in the
newly remodeled grill are the change targets.
Model for Organizational Change
The steps in the model for instituting change within the club include planning, doing
(implementing), checking (monitoring results), and acting in a way that ensures
continuous improvement:
•• Planning. In the planning stage, change sponsors recognize the need for
change, establish a vision, assesses the current status as to the way things
presently exist, and develop a plan.
•• Doing. In the doing phase, change agents become involved by completing the
planning, communicating the vision to the club staff, using elements of power
to get the change accomplished, using times and/or counts to establish a
method by which to measure accomplishment, and celebrating the success of
the completion of the change.
•• Checking. In the checking phase, change sponsors and change agents
become involved in re-evaluating the accuracy of the vision for the change, re-
assessing the plan for the change, and evaluating the direction of the change
to help ensure that the actual change is in alignment with the intended change.
•• Acting. In the acting phase, the focus becomes one of looking for additional
opportunities to improve the change. Total quality management and continu-
ous quality improvement become methodologies used by change agents and
change targets to help ensure steady improvement in operations over time.
On a regular and planned basis, change agents consult with change sponsors
(repeating the cycle) to confirm that operations are meeting or slightly exceed-
ing the intentions of the original plan.
Examples of objective terms:

•• Last week we did 463 covers on a budget forecast of 450.
•• We are on track to complete the project as planned by June 30, 20XX.
•• Food cost at the snack bar was 27 percent for July on a budget forecast of 30
percent.
•• Labor at the Turn for February was 51 percent on a budget forecast of 51 percent.
It is obvious to see the benefit of getting everyone using a common language
in the form of objective terms when discussing their goals and objectives and bud-
get line-item assumptions (explanations and justifications). Using objective terms
helps add quantification and precision to statements, thereby reducing chances of
misunderstandings.
Dashboards. Effective managers create dashboards (also referred to as flash
reports or scorecards) to help them monitor goal achievement. While this may
appear to be a daunting task, a bit of time spent in organizing a dashboard on the
front end saves tremendous amounts of time in the future and pays huge benefits
in organization. Club managers can follow these steps and examples to help them
get started:
•• Agree on the right measures. When created, goals and objectives should all
have associated objective measures (time frames and numbers) associated
with them. These times and counts must be meaningful. If they are not,
change them.
•• Seasonalize instead of flat lining. Make certain that time is taken to spread the
times and numbers across time frames that make sense. For example, if the
membership director assumes a goal of twenty-four new-member joins for
the year, spreading the joins over the year at two per month (flat lining) makes
little sense. Take the time to plug the actual forecasting into the months where
joins are most likely to occur (seasonalizing).
•• Assign responsibility. State who has the responsibility for goal achievement
(and make sure that person has been given both the responsibility and the
power for achieving the goal). Identify where the number is coming from
and who is responsible for reporting it. At clubs, the data source will almost
always be the budget and/or the member survey. These two data sources are
the two major dashboards at any club.
184 Chapter 4
•• See the big picture. The primary purpose of the dashboard is to provide an
overall view of the club with a relatively small amount of information. If the
big picture is not coming through, change the measures. Creating a visual
depiction (a dashboard) is an effective way to see the information quickly.
•• Monitor and act. Taking action must be done in a timely fashion. Many manag-
ers rely on the venue of budget variance meetings for this step. If that method
functions well, do not change it. If we back up a few steps and remember that
everyone involved in goals and objectives is using quantified (objective) bud-
get line-item assumptions (explanations and justifications) that are properly
seasonalized (not flat lined), and that those assumptions have been used in
the creation of an operating budget (and perhaps a multiple-year economic
model over time), one is able to zero in on actual results when compared to
the budget forecast.
The question then becomes, when does a timing issue become a real change?
There is no hard and fast answer. However, from experience I generally rely on
quarterly updates as a major indicator of real change. If direct reports have been
given both the responsibility and a commensurate amount of power for goal
achievement, then they should also be leading the discussion in terms of objective
reporting and analysis, along with coming up with a plan and recommendations
as to how to get underperforming results back in line with the plan. Unfortunately,
at most clubs, the analysis, planning, and recommendations for correction are all
left to the general manager or the board, which is not an indication of effective
management.
Constructing a dashboard. The easiest way to construct a dashboard is to use
either Excel or Tables inside of a Word document. The advantage of using Excel is
the ability to use formulas and update data easily. Use icons such as smile, blank,
and frown to quickly indicate status. Exhibit 5 is an example of a simplified dash-
board for golf course maintenance for January and February (created in Tables).
Enter the words dashboard scorecard into a search engine to see examples of other
dashboards. Tip: Ensure that the dashboard is kept simple enough to easily main-
tain and that it provides adequate detail. Over time, have a dashboard for each
department manager and sports professional at the club.
Working with dashboards. Using the dashboard should complement the
budget variance meetings. Referring to the example dashboard for golf course
maintenance in Exhibit 5, it is apparent that the dashboard provides (by design)
an incomplete picture of that department, in that it does not report all line item
expenses (remember that there is no income attributed to golf course maintenance),
no actual-versus-budget variance numbers with percentages, and no year-to-date
(cumulative) actual-versus-budget variance numbers and percentages. However,
the dashboard does its work: it functions as a snapshot of how the department
functioned in its designated five key items. Moreover, it contains information rela-
tive to major non-financial goals (speed of greens, availability of rolling stock, and
headcount) that would not be included in the financials. In that manner, it comple-
ments the monthly financial statement.
Exhibit 5 Example of a Simplified Dashboard for Golf Course Maintenance
Goal Actual Forecast Indicator Actual Forecast Indicator
Jan Jan Feb Feb
Greens avg.
1
Stemp speed
8 7  8 8 
2 Payroll $71,000 $72,356  $77,951 $75,301 
Sand, seeds,
3
fertilizer
$6,700 $7,200  $5,002 $8,000 
All rolling
4 stock ready 100% 100%  75% 100% 
for use
Headcount
5
(FTEs)
13 15  16 16 
The responsibility for maintaining the dashboards should lie with the depart-
ment heads and sports professionals within the club. After a format is agreed to as
to how the dashboard will be reviewed (assume during the monthly budget vari-
ance meeting), each department head and sports professional should be informed
as to the order of reviews at the meeting and what analysis should be completed
prior to the meeting. What follows are some review guidelines:
1. Revenues. Review any line item with a variance (either positive or negative)
of 10 percent when comparing actual results to budget. Identify the cause of
the variance and form an opinion as to whether the variance is due to a tim-
ing issue (and will therefore correct itself over the coming months) or if the
variance will continue and therefore become permanent. Explain the cause
along with a proposed action plan if the variance becomes permanent.
2. Expenses. Review the trial balance with the controller for any line item with
a variance (either positive or negative) of 10 percent. Identify the cause of the
variance and form an opinion as to whether the variance is due to a timing
issue (and will therefore correct itself over the coming months) or if the vari-
ance will continue and therefore become permanent. Explain the cause along
with a proposed action plan if the variance becomes permanent.
3. Non-financial goals. Review actual performance for the period compared to
forecasted performance related to goal achievement. Formulate an opinion
and action plan for dealing with under-performance on any goal (negative
variance). Analyze and explain over-performance on any goal (positive vari-
ance).
4. Timing issues. Timing issues, as a rule of thumb, should correct themselves
within one to three months. Variances thought to be due to timing but trend-
ing longer than three consecutive months are good candidates for re-classify-
ing as permanent variances that need to be addressed.
186 Chapter 4
A note about variances: many clubs closely scrutinize negative variances but
simply celebrate positive variances. While this is understandable, positive vari-
ances should receive as much scrutiny as negative variances, because both positive
and negative variances suggest errors in budgeting. Conducting analyses on vari-
ances will aid in the preciseness of the budgeting process in the future.
Ensuring the Strategic Plan Is Used

Often clubs go through a strategic planning process only to allow day-to-day oper-
ations, club elections, and the like to edge out the strategy in terms of importance.
As the strategy ages without updates, it begins to feel like a dusty and tired burden
instead of having the exciting and powerful lead-sled-dog status it deserves. You
can ensure that the club’s strategic plan is actually used by doing the following:
•• Get lots of members involved. Ask questions. Solicit opinions. Make everyone
feel like they are part of the process. Let them know that what they have to say
is important to the future of the club.
•• Keep the strategy simple. The work that goes into creating the club strategy is
time-consuming and detailed. However, the product that filters down from
all of the questions, analyses, and work should be simple. A strategic plan is a
guide that serves like a roadmap in getting the club from where it is presently
to where it wants to be in the future. This is not a business plan that explains
the club business to the members. It is an action piece.
•• Communicate with the membership and staff. Summarize portions of the stra-
tegic plan. Let everyone know (in summary format) what was said, what was
decided, and when people might begin to notice changes. Use big-picture
language to describe what the club is presently and what it will become in the
future. Do not be afraid to report what the club is not going to become in the
future.
•• Refer to and publicize the strategic plan. The strategic plan should become the
foundational element within the club. The strategic plan should be the pri-
mary driver for everything the club thinks, says, and does. The club president,
the general manager, and all contributors to the club newsletter should refer-
ence and draw subject material from the strategic plan. Make the strategic
plan important. The strategic plan should be the first document referred to
before the annual budget process begins and before adding, changing, or dis-
continuing any product or service within the club.
•• Charge the long-range planning committee. The long-range planning commit-
tee, in the absence of a strategic planning committee, should assume the role
of strategy gatekeeper. If we assume that a club merges the functions of its
strategic planning and long-range planning into one effort, it is that commit-
tee whose function helps ensure the future success of the chosen strategy. It
becomes one of the committee’s most important functions to serve as the club
gatekeeper for proposed programs and major changes. It is also incumbent on
this committee to serve as a consistent and reliable committee for making sure
that the agreed-upon strategic plan is followed closely and achieved.
Key Terms
action plan—The realization or practical application of the strategic planning
effort. Action plans are how a club enacts its strategies.
differentiation—A strategy that focuses on uniqueness and price.
enhancing differentiation strategy—A strategy that emphasizes becoming more
appealing in one particular area.
enhancing superiority strategy—A strategy that endeavors to exploit a competi-
tor club’s weaknesses or to emphasize a club’s own noncompetitive strength.
focused differentiation—A strategy that emphasizes uniqueness and price for a
narrow market.
focused low-cost leadership—A strategy that emphasizes high sales at low cost to
a narrow target market.
innovating strategy—A strategy in which a club develops new products or ser-
vices that are not present at the club or at competing clubs.
low-cost leadership—A strategy that focuses on high sales at a low cost.
mission—A statement of the club’s broadest and highest goals and objectives.
revolution strategy—A strategy that changes the fundamental and accepted way
the club conducts business.
strategic implementation analysis—The process of examining a club’s efforts to
ensure that operations efforts are driven by strategic initiatives.
SWOT analysis—A tool that evaluates a club’s strengths, weaknesses, opportuni-
ties, and threats.
vision—The purpose of a club and the statement for its direction and what it
wants the destination to be.
Review Questions
1. What are some of the benefits and challenges of strategic planning for clubs?
2. What are typical elements of the strategic planning process?
3. How is a club’s vision put together?
4. How is a club’s mission statement created and used?
5. Why should clubs create goals and objectives?
6. What is a situation or SWOT analysis?
7. What are some general strategic approaches that clubs can choose from?
8. What are three basic types of budgets that clubs must create and follow?
9. Why is an action plan important for a club?
10. What are some issues that club managers should be aware of when imple-
menting their club’s strategy?
188 Chapter 4
Internet Sites
addresses can change without notice. If the site is no longer there, use a browser
to look for additional sites.
Fast Track Strategic Planning
www.rsmmcgladrey.com/Industries/Private-Clubs/Strategic-Planning/
The Hospitality Resource Group: Private Club Division
www.thehospitalityresourcegroup.com/club_strategy.htm
McMahon Group
www.mcmahongroup.com
Part II
Club Communications,
Marketing, and
Human Resources
Overview of Communication 1. Identify three types of business
Types of Business Communication communication and provide an
How Communication Works overview of a basic model for
Communication Challenges communication. (191–192)
Communication Myths 2. Explain how communication myths,
Communication Barriers communication barriers, and personal
Personal Biases and Communication biases can affect communication.
Speaking Skills (pp. 192–198)
Think About the Details
Speaking On the Job 3. Review basic speaking skills useful
Formal Presentations when communicating on-the-job and
Listening Skills when making formal presentations.
Obstacles to Listening (pp. 198–202)
A Listening Model 4. Discuss obstacles to listening, a four-
Active Listening Skills stage active listening model, and
Nonverbal Communication: Body procedures for effective listening.
Language (pp. 202–208)
Facial Expressions
Posture and Body Movement 5. Describe how nonverbal
Gestures communication impacts the
Body Language on the Job understanding of messages.
Writing Skills (pp. 208–210)
Clear Writing Is Important 6. Explain the basics of effective business
Business Writing Techniques writing. (211–218)
Plain English and Short Sentences
7. Identify how effective communication
Memos
enhances a club manager’s work
E-Mail
relationships and negotiation skills.
Important Workplace Communication
(218–225)
Issues
Relationships Between Staff Members
Relationships Between Departments
Negotiations
5
Effective Communication for
Club Managers
This chapter was written and contributed by Jason Koenigsfeld, Ph.D.,
CHE, Senior Vice President—Professional Development, Club Managers
Association of America, Alexandria, Virginia; and Jack Ninemeier, Ph.D.,
CHA, Professor, Michigan State University, East Lansing, Michigan.
Club managers must communicate effectively as they interact with other club
managers, employees, board members, club members, vendors, and numerous
other persons. They must have excellent speaking, listening, and writing skills,
because almost all aspects of their work involve communication. The more effec-
tively they communicate, the better they can perform their jobs.
Club managers, like other hospitality industry leaders, must be good “people
persons,” which means they must have good interpersonal skills for dealing with
a wide variety of people. The increasing diversity of the workforce creates new
communication challenges for club managers almost everywhere. Excellent non-
verbal communication skills are important for those who orient, train, and coach
employees with limited English-language skills. Getting to know one’s employees
and communicating with them is crucial to retaining them. In contrast, poor com-
munication can contribute to high staff turnover.
Many club managers believe that one of the best ways to be a good commu-
nicator is to be a good listener. Being a good listener is not a passive activity. Club
managers who want to be good listeners must listen not only to what is being said
but also to how it is being said and why it is being said, staying alert for the feelings
behind the words.
Club managers must effectively address the needs of their members. They do
so as they discover what their members want, as they deliver products and services
that meet these needs, and as they evaluate the effectiveness of their efforts. Each
of these activities—whether undertaken by conversation, survey, board or com-
mittee discussion, “managing by walking around,” or other methods—involves
communication.
Overview of Communication
Club managers should understand that there are different types of business com-
munication. This section will also present a basic communication model that
describes how the communication process works.
191
192 Chapter 5
Types of Business Communication

In terms of business communication, club managers must communicate not only
with employees, but with their bosses and other club managers well. There are
three different types of business communication:
•• Downward communication—the passing of information from a club’s higher
levels to its lower levels.
•• Upward communication—the passing of information from a club’s lower lev-
els to its higher levels.
•• Lateral communication—the passing of information between persons at the
same level in the club.
Think of the various levels of club managers and employees, and how they
are joined together in a network of communication “linking pins.” Line employ-
ees, for instance, are linked to other employees, their supervisors, and through
their supervisors to other club managers; the club’s department heads serve as
linking pins between other club managers in their department and the club’s gen-
eral manager, who serves as the club’s chief operating officer (COO). Peers across
the organization are linked to each other. These links are strengthened through
good communication, but they are weakened if communication is poor.
Exhibit 1 offers tips to help club managers increase their effectiveness as they
communicate throughout the club. Note that whether communication is upward
or downward depends on one’s location within the organization. For example, a
conversation between a club manager and an employee is downward for the club
manager and upward for the employee.
How Communication Works

How does the basic communication process work? Exhibit 2 answers this ques-
tion. As you review Exhibit 2, note that, when two people communicate, the mes-
sage sender has a thought or feeling, puts it into words and/or actions, and then
sends the message to the other person. The receiver decodes/interprets the mes-
sage, develops a response, puts the response into words or actions, and sends a
new message, thus providing feedback.
Successful communication occurs when a speaker or writer sends a message,
the listener or reader receives it, the message is understood, and it is acted upon
by both parties. The basic communication process seems simple. However, the dif-
ficulty lies in carrying out the process.
Communication Challenges
Let’s explore some common myths, barriers, and personal biases that can detract
from effective communication.
Communication Myths
Several myths create misunderstandings about communication and can become
obstacles to effective communication:
Effective Communication for Club Managers 193
Exhibit 1 Communication Tips for Club Managers
Downward Communication
Developing effective downward communication skills helps club managers identify
potential problems, gain staff commitment, and gather information for making
decisions. Some tips to help you develop better downward communication skills
•• Maintain an open-door policy, and let employees know they can come to you
with problems.
•• Listen attentively and objectively to your employees’ concerns and contribu-
tions.
•• Don’t react emotionally or critically when someone brings you bad news.
Becoming angry at the message bearer will cut off your communication in the
future.
•• Use active listening skills.
•• Be sure that employees know that you care about their opinions and sugges-
tions.
Upward Communication
A successful club manager knows that communicating with his or her manager is
very important. Upward communication takes care and planning. Some tips to help
you communicate with your manager include the following:
•• Be sure your message is important; your manager’s time is limited.
•• Be sure the information is accurate and complete.
•• Be brief.
•• Communicate both the good news and the bad news.
•• Communicate regularly.
•• When you present a problem, suggest potential solutions.
•• Make an agenda; some managers appreciate receiving a list of topics you will
discuss in advance so that they, too, can be prepared.
•• Be sure your timing is right; presenting information to your manager at the
wrong time can derail the communication process.
•• Establish clear objectives; know in advance what you want to accomplish dur-
ing your talk with your manager.
•• Don’t go over your manager’s head unless it is absolutely necessary.
Lateral Communication
Lateral communication skills enable you to communicate effectively with other club
managers. This helps ensure that information will continue to flow your way and
enhances your career opportunities. Tips that can help you develop better lateral
communication skills include the following:
(continued)
194 Chapter 5
•• View peer communication as a chance to establish relationships that work for

both parties.
•• Share information; nobody wants to talk to someone who doesn’t share in
return.
•• Constantly look for overlapping areas of responsibility or interests that might
help improve your interaction with other managers.
•• Take a “big picture” perspective and communicate about issues that might help
the whole club, not just your part of it.
•• Give sincere and positive feedback when asked.
•• When appropriate, offer your help.
•• Use positive body language when communicating.
•• When possible or appropriate, work a day or two in another department to help
you understand some of the problems and issues your peers are discussing.
Exhibit 2 Sender-Receiver Model
Sender Receiver
Thoughts/feelings
Encoding Message Decoding

transmission
Thoughts/feelings
Decoding Feedback Encoding
•• “We communicate only when we want to.” In fact, club managers communicate
every day and all day, often without realizing it. For example, suppose a man-
ager is listening to an employee present a report. The manager travelled for
many hours the night before, returning from a conference, is very tired, and
so yawns almost continually. The employee doesn’t know about the sleepless
night and concludes the club manager is uninterested in the report. An incor-
rect message has just been sent.
•• “Words mean the same to everyone.” Words have different meanings to dif-
ferent people, based on their backgrounds and viewpoints. Suppose a club
manager tells an employee that his or her work is “above average” because
the manager thinks the employee is a good worker and has great potential.
The manager assumes the employee will respond in a positive way. Instead,
the employee is a high achiever and, to him or her, “above average” means
barely acceptable—the employee was hoping to hear that his or her work was
“great” or “excellent.” Now the employee’s morale and work quality may suf-
fer because of concern that success is not likely.
•• “We communicate chiefly with words.” In reality, people communicate many
of their messages nonverbally. They may say one thing but reveal their real
feelings by their tone of voice, facial expressions, eye contact, gestures, or how
they sit or walk. For example, assume that a club manager sees an employee
in his office and asks how he feels. The employee responds, “Fine, thanks,”
but slumps in the chair, stares at the floor, and sounds and looks distressed.
The manager observes these nonverbal cues and knows that the employee is
not “fine”—something is wrong!
•• “Nonverbal communication is silent communication.” Nonverbal communi-
cation is done without words. However, nonverbal communication such as
laughter, crying, and tone of voice does involve sounds. When a club manager
hears an employee whistling a happy tune, the manager usually assumes that
the employee is having a good day and typically that assumption is correct.
•• “The best communication is a one-way message from me to you.” This myth
suggests that speakers talk at listeners rather than with them. Effective com-
munication is best when both parties participate actively. They do this when
the listener gives the speaker feedback. Feedback is a listener’s reaction to the
speaker’s verbal and nonverbal message. When club managers give instruc-
tions to employees, they probably want feedback to ensure the employees
understand the message. Examples of nonverbal feedback include shaking
one’s head or frowning. An employee may provide verbal feedback by saying
“I see” or “I don’t understand.”
•• “The message communicated is the message received.” Sometimes club manag-
ers assume that listeners receive their messages exactly as intended. These
assumptions can lead to trouble. Suppose a manager asks an employee on
Monday morning to write a report and states that she needs it “soon.” The
employee plans to work on it Wednesday and give it to her on Thursday. But
the next day (Tuesday), the manager asks the employee for the report. In this
instance the communication failed, since “soon” meant “tomorrow” to the
club manager and “this week” to the employee.
•• “There is no such thing as too much information.” Too little information is not
good, but neither is too much information. Problems can occur when employ-
ees are overwhelmed with information. Club managers waste time if they
tell employees about matters that neither affect nor interest them. Focus on
the quality of communication rather than its quantity. More is not necessarily
better.
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Communication Barriers
Barriers exist that can decrease the effectiveness of communication. Knowing
about them is the first step toward overcoming them.
Distractions. Workplace distractions can include too much noise, excessive heat or
cold, interruptions, and physical discomfort. Spoken communication is enhanced
when it occurs in settings that are as distraction-free as possible. Suppose an
employee wants to talk to her manager about a problem with a co-worker because
the manager has always emphasized an “open door” policy. However, the club
manager leaves the office door open during the meeting and there is a lot of noise
outside. The manager also accepts two telephone calls and shuffles papers on the
desk. Because of all these distractions, this employee is not likely to confide in the
manager in the future.
Differences in Background. Message senders and receivers have different—some-
times very different—educational, experience, and knowledge backgrounds. This
can create communication barriers. A new dishwasher may try to make friends
with the executive chef but be rejected. A recent hospitality management school
graduate may be ignored when he tries to tell much older employees how to
improve their job performances. A speaker may send a message based on per-
sonal knowledge, but the message may not be understood if the listener does not
have similar knowledge. Persons with different backgrounds can have difficulty
in sharing ideas and working together, and club managers must address these
challenges.
Poor Timing. Poor timing may cause both parties to say things they do not mean.
Someone may say something in anger and later regret it, or a person who should
be listening may be distracted or simply unwilling to listen at the moment. The
best communication occurs when both parties are ready and want to participate
in it.
Assume a club manager wants to discuss an upcoming meeting with an
employee who appears distracted. Usually an attentive listener, the employee on
this occasion seems lost in thought, doesn’t provide the active feedback expected,
and quickly “forgets” things that were discussed just a few minutes ago. Upon
questioning the employee, the manager learns that the employee has a serious
family problem on his mind, so the manager reschedules the discussion to enable
him to work through the problem.
Personality Differences. The personalities of those who are communicating can
pose communication obstacles. For example, assume that a manager is conducting
an employee meeting with two employees: one attendee is a favorite employee,
and the second is someone with whom the manager has previously had serious
disagreements. During the meeting the club manager may pay close attention to
the first employee and disregard whatever the second employee has to say.
Prejudice. A club manager may want a report completed in a specific way because
“that’s the way we’ve always done it” and she is positively prejudiced toward that
process. Another club manager has had poor experiences with a product vendor
and, even after the business changes ownership, he is still reluctant to buy from
the company. In both examples, the club managers should keep an open mind and
not be closed off to new processes or new personnel.
Differences in Knowledge and Assumptions. Communication may be hampered
if the receiver lacks the knowledge or experience required to understand the mes-
sage but the sender assumes that she does. Only a partial message is sent when
the sender assumes the receiver has the same knowledge and so communicates
without conveying needed background information. To minimize this problem,
senders should determine and consider what is already known by receivers before
sending their messages.
Stress. Everyone reacts differently to stressful situations. Stress can be positive,
such as the sense of concentration managers may feel when they are confronted
with new and challenging situations. Positive stress can help a person to concen-
trate, focus, and perform at peak efficiency. Stress becomes negative when a club
manager doesn’t (or can’t) relax after facing a challenge.
Stress can also relate to the vague sense of anxiety a person feels after having
“one of those days.” In difficult situations, stress must be controlled and managed
to provide the best possible results.
Given the nature of the private club industry, the need to communicate under
stress occurs frequently. One of the best ways to minimize the impact of stress on
communication is to plan ahead. Being well-organized and having a clear sense
of priorities should help provide managers with a clear direction when tension
builds. As the pressure grows, club managers can keep calm by thinking positive
thoughts about the situation (“This will all work out”) as they use the resources
available to tackle the difficulties.
Personal Biases and Communication

Club managers should consider how their own personal biases may interfere with
their ability to effectively communicate. The best managers make every effort to
become more aware of their biases and take actions to minimize the impact of
these biases when they carry out responsibilities. There are many types of per-
sonal biases that affect the communication process on the job.
First Impressions. When club managers first meet someone, they sometimes make
immediate judgments about that person based on external factors such as appear-
ance, accent, and age. However, first impressions may later prove incorrect. It is
important to obtain more information, especially when interviewing job appli-
cants and orienting newly hired employees.
Stereotypes. Club managers may form general opinions about certain groups and
then apply predetermined beliefs to individuals in those groups. If an employee
acts in a different way than other members of the group, the manager may overlook
the differences or assign positive or negative values to them. The best approach:
try to think of each employee as an individual, not as a member of a specific group.
Just-Like-Me. Many club managers tend to like those who behave or think as they
do or who have similar backgrounds and characteristics. They then may favor
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those who are like them and disregard those who differ from them. Club manag-
ers should be especially careful to avoid this type of thinking when interviewing
job applicants or conducting performance evaluations.
Halo or Pitchfork Effects. Sometimes club managers favor someone for one pos-
itive characteristic and overlook the person’s other traits (the halo effect). Con-
versely, they may dislike someone only because of a single characteristic that they
see as negative (the pitchfork effect). In both cases, these positive or negative views
based on one trait color the club manager’s perceptions of the whole person. Club
managers must avoid this all-or-nothing thinking, particularly when selecting and
training employees or evaluating their performance.
Contrast Effect. Club managers sometimes compare employees with others
and rank them according to their perceptions of “best performance.” Instead of
comparing employees with other employees, it is always best to evaluate them
based on job performance standards. This is especially important when coaching
employees and evaluating their performance.
Leniency/Severity Effect. Some club managers view the world positively, while
others are clouded by negativity. When employees are seen too positively, the
problems they create may be excused. If employees are viewed too negatively,
the manager’s judgments may be too severe. When club managers are having a
good day, they may react less sternly to an employee’s policy violation or failure
to complete a task according to standards. Club managers must evaluate perfor-
mance consistently and try to see their employees’ strengths and weaknesses with-
out bias. This is especially important when coaching, evaluating, and disciplining
employees.
Speaking Skills
Effective speaking, whether in front of a group or in a personal conversation, gen-
erally involves introductory remarks, the main body (points to be made), and a
conclusion. The introduction portion of an informal talk or speech should get the
attention of listeners and communicate the purpose for speaking. Speakers should
think about what they want to say before saying it. They should identify the main
points they want to make and then address them, sticking to the topic.
An effective communicator gets a listener’s attention by announcing his or her
intentions. Effective communicators explain what they want to talk about, why it
is important, and what they expect to occur as a result. They keep the interest of
listeners by explaining what the message means and how it affects them.
The time and method required to introduce a topic varies according to the
situation. For a routine one-on-one conversation, a club manager might casually
say, “Joe, let’s talk about the banquet plans.” But for a presentation before the local
Chamber of Commerce, the club manager would be much more formal: “Ladies
and gentlemen, there are things you should know about the proposed legislation
that will affect our business and our community.”
The key points of a conversation or speech should be in a logical sequence.
This will require planning and organization, especially in the case of a formal
presentation. Spoken cues can help listeners focus in on what’s most important.
For example, a speaker might say, “The main concept I’m trying to emphasize is
…” In addition, speakers should maintain eye contact with the listener(s), vary
their tone of voice, and summarize and clarify important points.
Asking questions is one effective way that speakers can ensure that listeners
understand. Asking questions will keep listeners interested and encourage them
to carefully consider what is being said. The final summary of a conversation or
speech should repeat the main ideas and indicate what the speaker wants the
listener(s) to do as a result of the communication.
Think About the Details

When engaging in a conversation or making a more formal speech, speakers
should think about more than the content of the message; they should also pay
attention to how they are delivering the message. For example, if the volume of a
club manager’s voice is too high, listeners may feel that he or she is pushy or over-
bearing; conversely, when a manager speaks too quietly, listeners may feel that
the manager is nervous or unassertive, or may not hear the message at all because
they can’t make out the words. On most occasions, speakers should try to speak in
a normal voice that is neither too loud nor too quiet.
The pitch or tonal level of one’s voice is most effective when it comes natu-
rally. Trying to use a pitch that is higher or lower than a normal pitch can make a
person’s voice sound artificial.
Club managers should vary the tone of their voice according to the situation.
They might use a stern tone when disciplining an employee for the third time and
probably would speak gently to a nervous new employee. In general, a person
who speaks too warmly may sound insincere, and those who speak too coldly will
likely offend nearly everybody. Club managers should avoid both extremes.
The pace at which club managers speak may be revealing. If it is too quickly,
others may not understand what is being said or may think the manager is anxious
or very busy. If a manager speaks too slowly, listeners may find it difficult to follow
the message as their minds wander, or may think that the manager is indecisive
or uneasy.
Speaking On the Job

Several guidelines are helpful for speaking in any work situation. Club manag-
ers should plan and organize what they want to say and stick to the main points
without digressing or introducing unnecessary information. They should provide
enough accurate information to support the points being made.
It is important for club managers to gear the message toward the listener
and use understandable language so that the message is easy to follow. Manag-
ers should pause occasionally to allow the listener to ask questions, or even ask
the listener questions to check for comprehension. Whenever possible, managers
should maintain appropriate eye contact, not only when speaking with just one
person but also when addressing groups.
Watching the listener’s body language to see how the message is being
received is a good habit for club managers to cultivate. In addition, managers can
200 Chapter 5
ask questions to confirm whether they are correctly reading the receiver’s body
language.
Gestures are another consideration when speaking. Hand, head, and upper
body movements can be used to effectively emphasize key points in a talk. (Note:
body language will be more fully discussed later in the chapter.)
Formal Presentations
Formal presentations require planning and organization. Club managers should
begin their planning by asking what they want to accomplish with their presenta-
tion. Presentations can be informative, persuasive, or something in between. Infor-
mative presentations explain a topic, and persuasive presentations try to convince
an audience about something. Determining whether the purpose is to inform or
persuade helps managers prepare for the presentation.
Different audiences require different presentation approaches. Club manag-
ers should consider four things when analyzing the audience, especially for a pre-
sentation off-site to an outside group:
•• What values are important to them?
•• Why do they need the information being presented?
•• What constraints might prevent audience members from doing what is
wanted or understanding what they should understand?
•• What is the audience’s demographic profile, including ages, income levels,
and occupations?
Three Parts of a Presentation. A presentation should have an introduction, a main
body, and a conclusion. The introduction should get the listeners’ attention, gain
their interest, and communicate the presentation’s purpose. Here are some ways
to begin a presentation:
•• Show how the information relates to the audience.
•• Explain your competency (knowledge or experience) to speak on the subject.
•• Refer to something unusual to capture the audience’s attention, or refer to
something familiar to establish a bond with the audience.
•• Reassure the audience about the presentation’s importance.
•• Use a quotation from someone else to focus attention on the topic.
While we have discussed the introduction first, good presenters do not always
begin to prepare a presentation by writing the introduction. Instead, the introduc-
tion is often made from the presentation’s content, so many speakers work from
the center outward. They plan the main body first, then write the introduction and
conclusion.
The presentation’s main body should present information in a logical
sequence. Each point mentioned in the main body should support the intent of
the presentation. The main body should also include the benefits the audience will
likely experience as a result of accepting the presentation’s main points.
Good speakers summarize information from time-to-time during the presen-
tation. Some speakers prefer to summarize only at the end of their talk. Others
believe that summarizing points during the presentation’s main body helps pre-
pare the audience to accept their conclusions.
Visual aids such as PowerPoints can add substantially to a presentation if
used properly. Guidelines for preparing PowerPoints or other visual aids include
the following:
•• Keep visuals short and simple.
•• Develop titles for visuals.
•• As a rule of thumb, use no more than one visual for every several minutes of
speaking.
•• Graphs, pictures, flowcharts, etc., can often summarize information better
than words on a screen.
•• Set off the important points of visuals with bullets, numbers, indents, or some
other method.
The presentation’s conclusion summarizes information already provided.
New information should not be introduced at the end of the session.
The Presentation Environment. A poor environment can ruin an otherwise great
presentation. Before beginning a presentation, ensure that the environment will
contribute positively to the session by attending to the following:
•• Equipment: Test computers, slide projectors, and other equipment in advance.
•• Visuals: Go to the back of the presentation room and determine whether the
planned visuals can be easily seen.
•• Flip charts: Ensure that there is enough paper and that there are markers on
hand.
•• Handouts: Make sure handouts are easily accessible, are in the correct order,
and can be easily distributed.
•• Pointers: Make sure a pointer is easily accessible if it will be used.
•• Microphone: Presentations to more than seventy-five people will likely require
a microphone. Test it in advance and know how to use it.
•• Lighting: Determine how to turn room lights on or off if it will be necessary
to do so. Leave some light on when using overheads or slides; speaking in a
completely dark room may be uncomfortable, and listeners cannot take notes.
•• Seating arrangements: Arrange seating in the room appropriately.
Presentation Delivery Tips. How the presentation is delivered is frequently a key
to its success. Presentation delivery tips include the following:
•• Posture: Be relaxed and erect. Don’t shift back and forth from one foot to the
other.
202 Chapter 5
•• Movement: Moving nearer the audience emphasizes main points. When using
a lectern, move out from behind it occasionally. Be aware of hand movements.
Wringing your hands or keeping them in your pockets, “handcuffed” behind
your back, or folded in front of you will likely detract from the presentation.
•• Orientation: Speakers who keep their shoulders turned toward their audi-
ences often find they are considered to be more engaging. Speaking while
facing away from the audience seems awkward to listeners.
•• Gestures: Many people “talk with their hands” when they speak. Gestures
are an important form of nonverbal communication if they are used appro-
priately. However, quick hand movements and other visual signs of anxiety
detract from presentations.
Some presenters use a video camera to tape themselves to see what they look and
sound like when making a presentation. This helps them identify ways to improve
future presentations.
Listening Skills
Every day we hear sounds of every kind coming from everywhere. We hear selec-
tively by noticing some sounds while tuning others out. Hearing is largely passive.
We do not have to work at hearing something; instead, we hear automatically.
Listening, however, is not the same as hearing. To listen well, we must become
involved; that is, we must decide we want to listen and focus on the sounds. Club
managers who are good listeners can become even better listeners, because lis-
tening is a skill that can be developed just as one can learn to speak or write bet-
ter. Managers spend a great deal of time listening, and for optimum results they
should use effective listening skills as they do so. They should listen attentively to
everyone with whom they come in contact on the job.
It is important to take an active role when listening, which is completely dif-
ferent from the passive role taken when just hearing something. Active listening
takes effort, but the benefits gained are worth the time and trouble. To cite just one
benefit, employees appreciate club managers who truly listen to their concerns.
Obstacles to Listening
Obstacles to effective listening are created by many of the listener’s own bad hab-
its. For example, a listener’s mind may wander when personal thoughts and ideas
seem more interesting than those of the speaker’s. Meetings can be “tuned out”
because the information is boring or difficult. Sometimes there are distractions
when a person would rather be elsewhere or is worried about work that must be
done.
Perhaps a meaningful word or idea grips a person’s attention so that he or she
is distracted and doesn’t take in what the speaker says after that. It is possible to
prejudge speakers or their topics and form opinions of the speakers before they
are even seen. It is also possible for listeners to miss a message if they are busy try-
ing to take detailed notes. Distractions arise from others talking or by noises in the
room. Some causes of poor listening habits are listed in Exhibit 3.
Exhibit 3 Causes of Poor Listening Habits
•• Unsuitable listening environment: too much noise or too many distractions

•• Allowing your mind to wander
•• Thinking of something else
•• Focusing on one word or idea at the expense of the whole message
•• Negative reactions to a speaker’s mannerisms, appearance, dress, accent,
and so on
•• “Tuning out” because the message is difficult or dull
•• Not paying attention
•• Taking too many notes
•• Talking to others in the group or audience
•• Lack of desire or determination to listen
Some people try to fake attention by looking at the speaker and nodding
their heads from time to time while their thoughts are somewhere else. However,
speakers often catch on when this occurs. If club members or employees think a
club manager has a habit of not fully listening, they will think he or she doesn’t
care. The result: employees will stop sharing their problems, ideas, and solutions,
and members may wonder if the manager is really concerned about them and
their club.
Listening difficulties may also result from the difference between how fast
we speak and the rate at which we listen, think, and comprehend. The average
speaker says 125 to 150 words per minute. The average listener, however, can
hear and understand more than twice as many words per minute. Club managers
should put this spare listening time to work. Rather than daydreaming, managers
should become actively involved in receiving the message. They should use extra
moments to review what they have heard or anticipate what additional points the
speaker might make.
A Listening Model
Exhibit 4 summarizes the four stages of active listening: focusing, interpreting,
evaluating, and responding.
Focusing. Focusing involves paying attention to the speaker and concentrating on
receiving the message. Four tactics that can help club managers accomplish this
•• Deciding to listen. Keep your attention focused and set aside your own ideas.
Concentrate on the speaker’s words and message rather than his or her age,
gender, position, or manner of speaking. Listen without becoming defensive
and remain open to new ideas and concepts.
204 Chapter 5
Exhibit 4 Four Stages of Active Listening
Stage 1— Focusing
Decide to listen.
Create the proper atmosphere.
Focus on the speaker.
Show that you are paying attention.
Stage 2— Interpreting
Keep from judging.
Determine the speaker’s meaning.
Confirm that you understand the meaning.
Show that you understand.
Reach a common understanding.
Stage 3— Evaluating
Gather more information.
Decide whether the information is genuine.
Evaluate the information.
Communicate your evaluation.
Stage 4— Responding
Learn what the speaker expects.
Consider your own time and energy.
Decide what to do.
•• Creating the proper atmosphere. Make it easy to listen by minimizing outside

distractions. Choose a suitable location and eliminate as many interruptions
as possible.
•• Focusing on the speaker. Establish and maintain eye contact. Give the speaker
time to speak before beginning to question or comment. Concentrate while
listening to the message’s content. Avoid thinking about how to answer once
the speaker is finished. If notes must be taken, keep them brief.
•• Showing concern. Use appropriate nonverbal communication to show that
the message is being received. When necessary, ask questions to obtain more
information or ask that parts of the message that were not heard or under-
stood be repeated.
Interpreting. Interpreting helps the listener to identify why the speaker is com-
municating. A club manager should not judge but, instead, try to determine the
speaker’s meaning and confirm that understanding. Managers should keep per-
sonal biases out of the way.
Club managers should try to think about the speaker’s primary reason for
speaking and consider what the speaker wants to get across. The speaker may be
making casual conversation, expressing an idea, wanting to exchange information,
or trying to persuade.
Club managers should confirm that they understand the meaning of the
message being spoken. They can do this by asking questions or paraphrasing
(re-stating or re-wording) the speaker’s message. They should continue ask-
ing questions until they understand the meaning of the message, and show
that they understand by using suitable words and body language. The goal
of the interpreting stage is for the listener and the speaker to reach a common
understanding.
Evaluating. Evaluating helps to verify that a common understanding has been

reached. It also helps the listener determine whether the message is based on facts
or is just the speaker’s opinion. To evaluate a message, a listener should:
•• Gather more information. Concentrate on the speaker’s tone of voice and

body language and on what the speaker does and doesn’t say. If only general
information is provided, listeners should ask for details if given the chance
(this may not be possible if the listener is part of the audience at a formal
presentation).
•• Decide whether the information is genuine. Try to separate facts from opinions
and assumptions, but always judge the message, not the messenger.
Responding. Responding during a conversation should occur while the speaker

talks (with nods, smiles, and so on) and after the speaker is finished (i.e., a verbal
response). After the speaker is finished, the listener’s response depends on:
•• What the speaker expects. Listeners should ask questions if they are in doubt.
•• The time and energy available. Listeners receiving requests from a peer must
decide whether their plans and schedules can or should accommodate the
speaker’s request. Such listeners must consider their own objectives, time
pressures, and energy levels. If employees are listening to supervisors, time
and energy concerns must be expressed appropriately or set aside entirely,
depending on the situation.
•• Decide what to do. At the conclusion of the message, a listener must determine
how to respond and then communicate that response to the speaker. The dis-
cussion should be ended in an appropriate way that includes a concluding
statement that reviews any actions to be taken.
For an example of how the four stages of listening might play out in a club
environment, consider a situation in which a club manager receives directives
from the club’s board and disagrees with them. First, the club manager should
clarify understanding—perhaps the manager simply misunderstood the board.
Second, if it is not a case of a simple misunderstanding, the manager should
clearly express his or her concerns and reservations about the board's direc-
tives and provide support for those misgivings. Third, the manager should seek
feedback from the board and, if the manager succeeds in persuading the board
members to reconsider the directives, he or she should help the board explore
alternatives.
206 Chapter 5
Active Listening Skills

The responsibility for effective listening rests with the listener. Fortunately, there
are useful active listening tactics that listeners may employ, which include provid-
ing feedback so the speaker will know if his or her message is understood. We will
look at these tactics in the following sections.
Mirroring. Mirroring (restating) involves repeating some of the speaker’s key
words. It suggests that the listener is interested in the speaker’s words and wants
to understand them. Here are two examples:
Speaker – I don’t think I can finish this on time without help.
Listener – You don’t think you can finish without help?
Speaker – I’m the only one on this crew who does any work.
Listener – You’re the only one of your crew who works?
Managers should be careful not to overuse mirroring, for it may become tedious or
appear as if they are speaking down to the speaker.
Paraphrasing. When listeners paraphrase, they use their own words to re-state
what the speaker is saying. This is useful for several reasons. First, it helps the
listener clarify what the speaker is saying. It also helps the speaker, because the
paraphrase reveals how the message sounds to others. Here are two examples of
paraphrasing:
Speaker – I don’t like this job. I try to be friendly, but my co-workers don’t
even notice I’m here.
Listener – You feel lonely here, and that makes you dislike your job. You wish
everybody would be nicer.
Speaker – Cindy is hard to work with. She thinks she works harder than
everybody else, and now I’m assigned to work on a committee with her.
Listener – You’re uncomfortable around Cindy because she doesn’t seem
friendly and now you need to work closely with her.
Paraphrasing is another tactic that, if used improperly or too frequently, can
make it seem like the listener is talking down to the speaker, especially when
phrases such as “What you really mean is ...” or “What you're trying to say is …”
are used. Those types of phrases should be avoided.
Summarizing and Self-Disclosure. Summarizing statements condense parts of
what the speaker said and stress important points. They may be used when a
listener wants to: (1) focus attention on a certain topic; (2) show agreement with
specific points; (3) guide the speaker to another part of the subject; and (4) reach
agreement on specific points to end the conversation. Examples of summarizing
statements include the following:
“If I hear you correctly, you want to ...”
“As I understand it, your main idea is to ...”
Self-disclosure statements show the speaker how a listener feels about
what has been said. This helps the speaker to feel understood. Examples of self-
disclosure statements are:
“That reminds me of something that happened to me ...”
“Other employees have noticed the same thing ...”
Self-disclosure statements can also be used to communicate disagreement
with the speaker’s point and to help the speaker by underscoring sensitive areas:
“I don’t necessarily agree with your second point. There is another way to
look at it, however ...”
Questioning or Clarifying. Listeners may notice some statements that seem
incomplete or do not tell the whole story. In such instances, listeners should ask
questions to help the speaker clarify his or her thinking. Sometimes speakers leave
out important points because they are caught up in the emotions of the moment.
Questioning or clarifying statements can help make the speaker’s message clearer.
Open-ended questions allow speakers to respond in any way they would
like. Listeners can use them to move along a discussion, discover a speaker’s ideas,
or examine a sensitive subject. Open-ended questions often begin in these ways:
“What do you think about ...”
“How do you feel about ...”
“Can you tell me ...”
“Could you describe ...”
For example, a speaker might be asked, “How do you feel about the changes made
in the employee work schedules?”
Listeners may want additional information about unclear statements. In most
instances they should ask for specific details when the speaker has provided only
general information. Specific questions begin with words like “who,” “where,”
“when,” “why,” “which,” and “how many.” For example, a listener might ask
a speaker a specific question such as, “Why do you think the members were
unhappy?”
Motivating the Speaker to Say More. This tactic encourages the speaker to con-
tinue talking. When motivating a speaker to say more, listeners should use neutral
words that communicate neither agreement nor disagreement. The purpose is for
the listener to show interest in wanting the speaker to continue. Examples include:
“Tell me more.”
“Let’s talk about it.”
“I’d like to hear your point of view.”
Speakers can also be encouraged when the listener uses empathy: that is,
when the listener tries to see the situation from the other person’s point of view.
Empathy shows that the listener accepts the speaker, can relate to the experiences
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Exhibit 5 Common Interpretations of Nonverbal Messages
What You Do and What It Says

NONVERBAL MESSAGE TYPICAL INTERPRETATION
Making direct eye contact ��Friendly, sincere, self-confident, assertive
Avoiding eye contact ��Cold, evasive, indifferent, insecure, passive,
frightened, nervous, concealment
Shaking head ��Disagreeing, shocked, disbelieving
Patting on the back ��Encouraging, congratulatory, consoling
Scratching the head ��Bewildered, disbelieving
Smiling ��Contented, understanding, encouraging
Biting the lip ��Nervous, fearful, anxious
Tapping feet ��Nervous
Folding arms ��Angry, disapproving, disagreeing, defensive,
aggressive
Raising eyebrows ��Disbelieving, surprised
Narrowing eyebrows ��Disagreeing, resentful, angry, disapproving
Wringing hands ��Nervous, anxious, fearful
Leaning forward ��Attentive, interested
Slouching in seat ��Bored, relaxed
Sitting on edge of seat ��Anxious, nervous, apprehensive
Shifting in seat ��Restless, bored, nervous, apprehensive
Hunching over ��Insecure, passive
Erect posture ��Self-confident, assertive
and feelings being presented, and wants to hear more. Listeners who want to show
empathy should use words that avoid any kind of judgment, employing phrases
such as:
“I know what you mean; I’ve had a similar experience ...”
“I understand how you feel about ...”
Nonverbal Communication: Body Language

The spoken word is not the only means of human expression. Some people will
argue that it’s not even the most important one. The old saying “actions speak
louder than words” supports this view.
Nonverbal communication, which consists largely of body language, is
important in day-to-day interactions. Club managers should interpret physical
signals such as facial expressions that employees, peers, and members use in addi-
tion to the message given with words. Exhibit 5 presents some common interpreta-
tions of nonverbal messages.
Suppose a club manager tells Bill, an entry-level employee, that she wants him
to stay for an extra hour today to do a special project. Bill says, “Sure, no problem,”
but when Bill turns around to leave, the manager can see that Bill is frowning and
his hands are clenched. Reading Bill’s body language, the manager sees that Bill is
probably upset about staying later today even after saying it was no problem. Bill
is a good employee and the club manager doesn’t want to lose him. However, she
also needs the special project completed.
The club manager should approach Bill, because it is important to deal with
the situation before it gets out of hand. It could be that his actions may relate to
something outside of work. Bill should be asked about the inconsistency between
what he said and how he is acting. For example, the manager might say, “Bill, you
said you were okay about helping with the project and now you seem upset. May
I ask why?”
As this story illustrates, the words a person speaks do not necessarily tell
the whole story. We communicate with more than just our words. Our nonverbal
behavior can reveal our attitudes and feelings. Even though our words may say
otherwise, our true feelings are usually exposed by our nonverbal expressions and
actions.
Facial Expressions
Our facial expressions are the most common nonverbal communication we use,
and they reveal a lot about our attitudes. Most people look at the listener’s face
when they are talking. Have you ever felt uncomfortable trying to talk to someone
wearing sunglasses? Think also about how much easier it is to understand speak-
ers when their faces can be seen. By watching facial expressions, we can know
whether someone is happy, sad, angry, or confused.
Facial expressions are not always completely reliable. For example, a smile
does not always indicate happiness. It can communicate anger, nervousness,
defensiveness, or embarrassment, among other emotions.
The more people catch our eye and hold it, the more likely we are to pay atten-
tion to them. For example, a speaker who maintains eye contact with the audience
is likely to be considered a good speaker. The reverse is also true: a speaker who
looks at the floor or over the heads of the audience is likely to appear nervous and
possibly unreliable.
We generally suspect that people who avoid eye contact are uneasy or per-
haps are lying about something. Alternatively, they may be uninterested or ner-
vous. An assertive, confident person is likely to look into a listener’s eyes, while a
passive, unassertive person may avoid eye contact.
Posture and Body Movement

A person’s slumped shoulders usually communicate depression or sadness. An
anxious person may move stiffly and tensely and have a grim facial expression,
with his or her lips pressed tightly together and a wrinkled brow. Tense people
may avoid eye contact and may stand or sit with their arms folded tightly. A
relaxed person, on the other hand, generally sits and stands comfortably and ges-
tures naturally.
A person’s walk can give clues to his or her general nature. For example, a
determined person will walk firmly and steadily, while an impatient, aggressive,
210 Chapter 5
or busy person often walks quickly. A shy, uncertain person may walk hesitantly.
New club members may be nervous as they enter the club’s lobby, and their hesi-
tant steps reveal that they could use some assistance or reassurance.
When speaking before a group, managers should walk toward the group to
emphasize a particular issue. When managers want to de-emphasize a point or
decrease tension, they should walk away from the group.
Gestures
Gestures often reveal a lot about a person’s feelings and attitudes. For exam-
ple, an employee who chews his or her lips or fingernails, or repeatedly folds
and unfolds a tissue may be nervous. People may also reveal their nervousness
with repetitive movements, such as swinging their feet or drumming their fin-
gers. Repetitive gestures may also indicate impatience or uncertainty as well as
nervousness.
One of the most common body language signals is when we cross our arms
in front of our chests. We may use this gesture to close off the rest of the world
and form a shield between ourselves and a hostile environment. For example, an
employee may tightly fold his arms across his chest when a manager is discussing
a performance problem. Crossed arms may also indicate anxiety or disagreement,
but it is important to consider the entire context. For example, a person may sim-
ply be more comfortable sitting with his or her arms crossed.
Body Language on the Job

Suppose you want to discipline an employee in your office. To assert your position
of authority, you should sit in a chair behind your desk, while the employee sits
in a chair in front of the desk. The desk serves as a barrier between you and the
employee, and shows you are in charge. However, if you want to establish a more
informal atmosphere, you might move your chair to the employee’s side of your
desk to decrease the physical and psychological distance between the two of you.
This will put you and the employee on a more equal footing.
No matter what your attitude, it will show in your nonverbal behavior. If you
resent an employee, it may be difficult for you to hide it. Instead of trying to con-
ceal it, it is often better to modify your attitude. Try to find something you can
admire about the employee, and then your genuine warmth will come through in
your body language.
Some forms of body language send different messages in different cultures.
Many club managers facilitate the work of diverse work forces and interact with
club members from different cultures. Therefore, it is important to ensure that
your body language sends the right message. In some cultures, for example,
it is considered improper to show the bottoms of your shoes while sitting. In
others, direct eye contact is considered a challenge to the other person. People
in some cultures consider it an unclean practice to touch others with one’s left
hand. Learn as much as you can about the employees you supervise and the
club members you serve in order to avoid communication problems caused by
cultural differences.
Writing Skills
Writing is a difficult form of communication for many people to master. However,
club managers must know how to write well. The importance of writing skills
increases as a manager rises to higher levels of responsibility. For example, club
supervisors may write memos to employees, reports for their boss, and clear, con-
cise comments on performance appraisal forms. In contrast, the club’s GM/COO
may write letters to vendors and attorneys about matters involving high-dollar
purchases and serious legal matters.
Clear Writing Is Important

Club managers must be able to express themselves effectively in writing. The
messages or reports they write represent themselves and their clubs (especially
if the writing will be seen by people outside the club). Clear and organized writ-
ing is a product of the writer’s clear and organized thinking. The opposite is also
true: a poorly written and disorganized communication results from disorganized
thinking.
A club manager’s written words represent him or her not only now but in the
future, as any written communication can be filed away and saved. Even memos
can serve as lasting reminders of a manager’s writing abilities. Well-written reports
suggest that the club manager is an efficient and organized person.
Developing an outline typically is the first step in drafting a concise and well-
written document. Managers should take a few minutes to list the main points to
emphasize and then place those points in a logical sequence. Then they can begin
the first draft, which will serve as the foundation for the finished document. Man-
agers should go through the document several times and revise it as necessary,
especially if it is important and formal. Even the best writers spend much of their
time revising.
Good writers make it as easy as possible for their readers to understand their
messages. Writing for easy reading doesn’t come easily; however, it is a skill that
can be learned.
Business Writing Techniques

Good business writing clearly communicates information as briefly as possible to
the intended readers. This requires proper grammar, spelling, and punctuation.
Before they begin writing, effective writers:
•• Have a specific reader or audience in mind. A memo to employees about vaca-
tion schedules can be far more informal than a memo to the club’s board about
a budget issue. Know to whom you are writing, and gear your tone, language,
and level of writing to the readers.
•• Know the objective. Determine the topic and stick to it. Identifying a specific
purpose for writing will help keep your thoughts and your writing clear.
•• Decide what information is essential to include. This may involve reviewing
files and speaking to others in addition to careful thought. However, club
managers typically do much of their writing without research. In any event,
212 Chapter 5
determining exactly what information should be included will make the writ-
ing task easier.
•• Decide how to present the information. The best way to do this for a formal and
important document is to make an outline, which is a list of significant points
placed in logical order. When creating an outline, managers should write
down the major points and, beneath them, list the supporting minor points:
1. Major point
A. Minor point
i. Sub point (if any)
ii. Sub point (if any)
B. Minor point
2. Major point
A. Minor point
B. Minor point
Managers should look at the initial outline carefully. The first outline is a good
place to start but there is often a better way to organize the points than the order in
which they were first put to paper (or computer screen). As they revise the outline,
managers should keep to the objective and sort all the points into a logical order
that supports the objective. Using an outline usually makes writing tasks easier
and faster. Outlines are valuable tools because they require the writer to organize
his or her thoughts. As a manager’s writing skills improve, outlines may become
briefer and easier to develop. However, no matter how skilled a manager becomes
at business writing, it is helpful to prepare some type of outline every time some-
thing must be written, even if it is a short mental outline for an informal memo.
Good business writing requires specific and active language. Specific nouns
express meanings more powerfully than general or abstract nouns. For example, it
is livelier and more specific to say “I met with Terry, Sue, Steve, and Alonzo about
Tuesday’s banquet plans” than “I met with four supervisors about the banquet.”
Use verbs in the active voice: the subject of the sentence does the acting.
Notice the difference in the following examples:
Passive The decision was made by George.
Active George made the decision.
Passive The employee handbook was revised by the committee.
Active The committee revised the employee handbook.
Passive The employee was praised by the club manager.
Active The club manager praised the employee.
Plain English and Short Sentences

Readers are more likely to understand a written document if simple and familiar
words and concise sentences are used. Make sure you understand each word as
well. If you have doubts about any word, select another that you are more familiar
with.
When writing, managers should use the same types of words they use when
they speak and concentrate on informing readers, not impressing them. Examples
of showy words (and their plain English substitutes) include:
•• Ameliorate (help, improve) • Endeavor (attempt, try)

•• Ascertain (find out, learn) • Optimal (best, finest)
•• Commence (begin, start) • Peruse (read, study)
Short sentences are easier to read and understand than long sentences. How-
ever, not all sentences should be short, because that could be dull. A good plan:
alternate long sentences with short ones.
As a general rule, limit sentences to no more than three typed lines; longer
sentences contain more information than readers can easily absorb at one time.
How can long sentences be avoided? Begin by breaking a single long sentence into
smaller, stronger statements by removing the words “and” and “but.” Consider
the following example:
Your readers are more likely to understand your writing if you use simple
words and sentences, and you should make it a point to use words that
are familiar to your readers, always making sure you clearly understand
each word, too, and if you have doubts about any word, you should
always choose another that you are more familiar with.
This example is a long-winded version of the opening paragraph of this section.

The fairly simple original sentences became one long, complicated sentence with
the addition of the words “and” and “but” in certain places. Take the time now to
reread this section’s opening paragraph. Then reread the long-winded, rewritten
version. Isn’t the original, simpler paragraph easier to understand?
Since your co-workers and other businesspeople will probably want to read
your memos and other written business communications as quickly as possible,
consider using the inverted pyramid style of writing. Newspaper reporters put
their most important information at the beginning of their stories and leave less
important details for the final paragraphs, because they know many readers will
not read the entire story. Similarly, managers should put what’s most important at
the beginning of their documents.
Club managers should make sure every paragraph deals with a single topic.
Each paragraph should begin with a strong topic sentence (main point) that tells
what the paragraph is about. A short, simple topic sentence is stronger and eas-
ier to understand than a long one. In fact, a lengthy topic sentence may blur the
intended message, so that its effectiveness may be lost.
A one-idea topic sentence limited to 1½ typed lines stays in readers’ minds.
The topic sentence becomes a guideline, and the writer can then logically develop
the rest of the paragraph. A briefly stated topic sentence also delivers clear infor-
mation to the reader that gets immediately to the point. Examples of topic sen-
tences include:
214 Chapter 5
Exhibit 6 Sample Memo Format
You may want to use the following sample format for memos that you write.
MEMORANDUM
TO: Your Reader
FROM: You
DATE: Today’s
RE: Subject
Paragraph 1: Contains a clear, direct topic sentence. This paragraph states why you
are writing. It might also explain what you want readers to do when they finish read-
ing.
Paragraph 2: Contains the most important proof or details supporting Paragraph 1.
Alternatively, it may be about another subject entirely, presented with its own clear
topic sentence.
Paragraph 3: Contains less important evidence or material, supported with less
detail. Again, it may address a different subject.
Final Paragraph: Acknowledges the reader’s time. Requests action or repeats an
earlier request.
•• “There are three reasons to do this; they are ...” (list them and explain them
in the paragraph).
•• “We have developed a new schedule plan that will ...” (review the revised
plan in the paragraph).
•• “The meal did not meet the member’s expectations because ...” (discuss the
member’s disappointment in the paragraph).
Once you have written the topic sentence, focus on the rest of the paragraph.
The remaining sentences should relate to and support the point made in the topic
sentence. A topic sentence is usually more general than the sentences that support
it. It may be helpful to think of a topic sentence as a generalization which needs
supporting evidence. Other sentences in the paragraph will supply that evidence
by providing details or back-up material. Each paragraph, then, will look some-
thing like this: Topic sentence. Detail. Detail. Detail. Detail.
Memos
The proper length of a memo depends on its purpose. It is important, however,
to keep all business documents as short as possible. As with all writing, memos
should be clear, concise, and to the point. Exhibit 6 presents a sample format to use
for memos (it is also useful for e-mail communications).
If the memo is long, it should be broken up into sections highlighted with
headings and sub-headings. A memo’s tone may be friendly, informal, and casual
when it is written for co-workers. A more formal tone is necessary when writing a
cover memo for an important report or when writing to a higher-level executive.
(A document checklist like the one shown in Exhibit 7 can help managers make
their documents the best they can be.)
Exhibit 7 Document Checklist
1. Is it organized well?
• Did I write with my readers in mind?
• Did I determine my objective before beginning to write?
• Did I decide which important information to include?
• Did I make an outline first?
• Did I sort my ideas in a logical order?
• Will my reader immediately know what I am writing about?
• Does each paragraph contain a topic sentence?
• Do other sentences in each paragraph support the topic sentence?
2. Is it clear?
• Does it clearly communicate my message?
• Did I use plain English?
• Are my words specific? Do they mean what I think they mean?
• Did I use concrete nouns rather than abstract nouns?
3. Is it concise?
• Did I use active verbs?
• Are my words strong and to the point?
• Did I use words both my reader and I understand?
• Did I include only what my reader needs to know?
• Are my sentences limited to three typed lines or less?
• Have I eliminated unnecessary instances of and and but?
• Have I used the inverted pyramid style of writing?
4. Is it accurate?
• Is all the information in the memo/letter correct?
• Did I use proper grammar, spelling, and punctuation?
• Did I refer to dictionaries and grammar texts when I was uncertain?
5. Is it courteous and friendly?
• Did I use positive expressions?
• Is my writing free of bureaucratic, pretentious, and legalistic language?
• Did I use words like “please” and “thank you”?
• Was my tone appropriate?
Two Versions of One Memo. Two versions of a memo are presented in Exhibits 8
and 9. As you read the two versions, think of the writing principles you have read
about in the chapter and decide which version is better before reading further in
the text.
We hope you quickly came to the conclusion that Version B is the best version
of this memo.
What is wrong with Version A?
•• It includes unnecessary history and detail.
216 Chapter 5
Exhibit 8 Sample Memo, Version A
TO: All employees

FROM: Chris Greene
DATE: February 15, 20XX
RE: Time sheets
In January the Accounting Department, because it met with difficulty process-
ing employee paychecks on time, inaugurated an improved program devised to
ameliorate the process and get the checks out on time. Many steps were taken by
Accounting to get the process to the much-improved point at which it presently is.
These steps included redesigning the time sheets, which were double-sided and
designated Form T-300, and are now single-sided and designated Form T-310. As
you know, the time sheets had to be turned in to yours truly by 3 p.m. Wednesdays,
and then signed by me, and delivered to Accounting.
I am cognizant of the fact that myriad members of my staff are still utilizing the old
time sheets, Form T-300, instead of the new time sheets, Form T-310. I have been
apprised that your persistent use of the erroneous time sheets will have unfortunate
repercussions. It will doubtlessly result in the misfortune of your hours not being
processed and your paychecks not being dispensed in time.
Therefore, take judicious note of our company’s revised time sheet, a copy of which is
affixed to this memo. In the future, please see to it that you utilize the new, improved
time sheet so that you will be paid in as propitious a manner as possible.
•• It uses too many “big” words such as inaugurated, ameliorate, cognizant, myr-
iad, utilize, apprised, erroneous, dispensed, repercussions, and propitious.
•• It doesn’t get right to the point.
•• There is excessive use of the passive voice.
•• Its most important paragraph is the last one rather than the first one.
•• It sounds too formal and pretentious.
•• It is too long (it contains more than 200 words).
What is right about Version B?
•• The most important paragraph appears first.
•• It gets to the point immediately.
•• Its words and sentences are easy to understand.
•• It is clear, direct, and concise.
•• It tells busy employees exactly what to do.
•• Its tone is appropriately informal but still courteous.
•• It uses language the writer probably uses when talking.
•• It is short (well under 100 words).
Exhibit 9 Sample Memo, Version B
TO: All employees

FROM: Chris Greene
DATE: February 15, 20XX
RE: Time sheets
Please remember to use the new version of the time sheet (copy attached). In Janu-
ary, Accounting announced that the revised single-sided time sheet takes the place
of the old, double-sided time sheet.
Using the new time sheet correctly will ensure your getting your paycheck on time
every payday. Please fill out your weekly time sheet completely, sign it, and give it
to me by 3 p.m. each Wednesday.
E-Mail
E-mail is used today for purposes previously achieved by regular mail, office
memos, and telephone conversations. However, important differences do exist
between these forms of communication. For example, while telephone calls may
be traced and some may be recorded, all e-mail messages are recorded, stored,
and traceable. E-mails never disappear entirely; even deleted messages can be
retrieved from back-ups and can usually be traced to their origin.
In short, e-mail is not a private form of communication. Once you send an
e-mail, it’s out of your control. With some office computer systems, the e-mail
administrator can read any and all e-mail messages. Some private clubs monitor
employee e-mail messages and have a policy about the types of messages that
can be sent. A good rule to keep in mind is that if your e-mail is safe enough to be
printed and posted on your club’s bulletin board, it is safe enough to send. (Note:
the reverse is also true! If it’s not safe enough to be placed on a bulletin board for
all to see, don’t send it!)
You’ll never know how many people actually read an e-mail that you send,
because it could be forwarded many times. Therefore, club managers should never
send confidential information or send or forward e-mails containing libelous infor-
mation or defamatory, offensive, racist, or obscene jokes or remarks.
Many e-mail systems have a “blind copy” function that enables you to send an
e-mail with copies sent to others without the original recipient knowing about it.
This function can be useful when you want to protect the privacy of those receiv-
ing a group e-mail. However, blind copies of your e-mail could be used to spread
gossip or embarrass the recipient (or even yourself) when those receiving the blind
copy pass it on to others.
Sending E-Mails. The subject line of an e-mail should be a short, specific identifi-
cation of the message’s topic so readers can quickly determine the importance of
the message. Also, readers may use the subject line to help them recall the content
of the message. Avoid subject lines that are too informal. Recipients may think the
218 Chapter 5
e-mail is spam and delete it without reading it. Some users have anti-virus soft-
ware programs that automatically delete or flag e-mails with informal greetings.
E-mail messages should be short and to the point, normally less than one
printed page or the length of a computer screen, because many people do not
like to scroll through long e-mails. If a long e-mail is necessary, include a short
summary, how quickly you expect a response, and even a brief table of contents
if the e-mail is extremely long. In every case, the e-mail should address a single
topic; switching topics can frustrate and confuse readers. If you have two or more
separate topics to address, send separate e-mails. If lengthy, critical information
must be included, send it as an attachment and use the e-mail text to describe the
contents or importance of the attachment.
E-mail messages are frequently printed. Typos that may be forgiven on a
screen are likely to be annoying to others and embarrassing to you when seen on
paper. Most e-mail programs can spell-check outgoing mail.
E-mail has become a convenient way to send files such as documents, spread-
sheets, graphics, and pictures. However, don’t attach unnecessary files. Large files
may take up a lot of space on mail servers and impair the performance of the
e-mail system.
Before sending a large file, be sure the recipient can receive it. You may have
to break up the file into smaller attachments and send a series of e-mails. When
receiving attachments, it’s best to save them to your hard drive as soon as possible
and then delete the message and attachment from your mail box.
Replying to E-Mails. Senders generally expect a quick response to their e-mails.
Reply to e-mail messages as soon as possible, preferably within twenty-four hours.
If you can’t reply within a day, send a message telling the person when you will
respond. It is usually best to respond with the “reply” function and not start a new
e-mail message. The reply function retains the original message as a “string” and
often helps the person you are answering place your response in the context of
their original message. Attempt to make your reply immediately understandable
without referring the recipient to the original e-mail or to an e-mail string.
In some situations, it is necessary and appropriate to use the “Reply to All”
function. This keeps everyone on the initial e-mail list up-to-date with your reply.
More often, it is not necessary to clog everyone’s inbox with lengthy e-mail threads.
Use this function with care. Reply only to those who need to hear what you have
to say.
Forward messages only to appropriate recipients. Never forward messages
with personal content in them without obtaining permission from the author. If,
before forwarding an e-mail, you edit the message, be sure to explain what you
have done.
Important Workplace Communication Issues

Effective communication procedures are very important in maintaining and
improving positive relationships among club staff members. Club managers
who consistently use the basic communication practices discussed in this chap-
ter will be well on their way to enjoying the benefits that occur when managers
and employees work together as teams to attain goals. Basic communication skills
are also important when planning and participating in negotiation sessions of all
types.
Relationships Between Staff Members

Club managers model the behaviors they expect from the club’s employees when
they treat their employees the way that they (the managers) would like to be
treated—and as they expect employees to treat the club’s members. Managers
can also reinforce desired behaviors when they engage in positive coaching,
praise employees when they “catch them doing something right,” and develop
a practical rewards system for successful employees. Training and professional
programs are useful ways to show employees that they are appreciated and that
the club’s managers want them to be successful. These developmental efforts
help the club and its members at the same time they benefit manager-employee
relationships.
Effective club managers communicate a clear vision of where they want to
lead their employees. They talk frequently about how to move toward the club’s
vision, and they request input from their employees along the journey. They pre-
pare their employees for the work to be done, establish performance guidelines
and procedures, and recognize that employees do not need to be micro-managed.
In other words, club managers prepare their employees, point them in the right
direction, and allow them to perform.
Club managers who have a positive attitude avoid judging others and are
more accepting of those on their staffs. They quickly resolve conflicts with a plan
of action that involves discussion with the affected employees. These managers
help employees find pride and happiness in their work by treating them with
genuine respect. They do this by paying attention to them, listening to them,
and responding according to their employees’ needs. Good club managers seek
to understand and accept their employees’ personal and cultural differences
because they know this encourages a professional relationship that focuses on
achieving goals.
Managers who are effective communicators are better leaders in their clubs.
They can present ideas, improve workplace relationships, and tactfully disagree,
when necessary, while continually moving others toward the club’s goals. They
can make excellent oral and written presentations, they can negotiate for “win-
win” conclusions, and they use their interpersonal skills to improve the working
relationships between themselves and their employees, and between employees in
different departments. As they do so, they model desired performance by main-
taining consistency between what they say and what they do.
Club managers can communicate with their staffs through scheduled meet-
ings, e-mail, employee newsletters, and other methods to keep everyone current
with current changes and challenges. They should have an “open door” policy
and strive to talk with employees when employees want to talk, not when the
managers “get around to it.” Club managers should, whenever possible, address
employee-related situations themselves and involve those at higher organizational
levels only when necessary.
220 Chapter 5
In addition to encouraging open communication, the best managers clearly

communicate and explain the club’s policies and culture to their staff members.
Their goal: to reduce the possibility that employees will make assumptions, pass
along rumors through the “grapevine,” and create communication obstacles that
will be difficult to overcome.
Suggestions to improve relationships with specific employees include the
following:
•• Be positive and not judgmental.
•• Gather as much information as possible to understand the situations that are
creating the conflict.
•• Resolve conflicts when they first occur. A thorough discussion, development
of a mutual plan to address the problem, and working together to resolve it
are useful tactics.
Club managers should accept the responsibility to establish and maintain
cooperative interpersonal relationships with each member of their employee team.
They should not discuss employee-related problems with other employees, but
only with club managers and, if applicable, board members as part of the club’s
progressive discipline process.
Effective club managers try to find solutions to employee problems rather
than blame employees or rationalize that the workplace would be improved if one
or more employees were not part of the team. They also recognize that problems
represent growth opportunities, and they work with employees to manage the
problems that arise.
Relationships Between Departments

Private clubs with many or even just a few departments can suffer from inter-
departmental communication challenges. Communication can suffer when there
are personal conflicts between managers in different departments who do not see
the importance of communicating with managers in other departments. Problems
also occur when the club’s standard operating procedures do not address the need
for departments to communicate with each other.
Problems can also arise when department personnel blame each other for the
club’s problems. For example, marketing and sales personnel might believe that,
if the physical facilities were better maintained and if higher-quality services and
amenities were provided, it would be easier to increase business volumes. At the
same time, the club’s operating managers may believe the marketing and sales
team does not plan and implement creative programs that are equal to or better
than their competitors’.
Several strategies can be used to improve inter-departmental communication:
•• A process should be in place in which personnel in each department identify
exactly what information they need that is generated by or dependent upon
another department. Once identified, employees within affected departments
can design procedures and/or systems to provide this information. Standard
Technology and Communication

Technology has dramatically changed how we communicate in our personal and
professional lives, and it has even revised the ways we think and talk about the
process. Communication that does not involve talking can now occur instantly, and
this fact is changing what we communicate. For example, people have historically
used communication media to transfer big chunks of information infrequently (think
paper-based letters and reports); now, smaller amounts of information can be sent
much more frequently (think messages on Twitter and Facebook). Increasingly,
many people are in contact with many other people almost constantly all around
the world. Once a communications device (computer, smart phone) has been
purchased and the monthly fee for voice and data transfer paid, the further cost to
communicate is typically nothing; this may be driving the trend of people sharing
many small bits of news about almost anything at any time. The technology/com-
munication phenomenon is so great that many people reallocate their budgets to
give priority to communication expenses.
Revolutionary Communication Changes

Changes in communication have been revolutionary (not evolutionary) since the
1990s. It began with e-mail messages on computers that many persons checked
and read only once or twice a day. In contrast, for many people today these mes-
sages are checked and read many times each hour on mobile phones and other
devices. Instant messaging alternatives have, within just a few years, brought
down message receipt and response times from several days or even weeks (let-
ters) to hours (e-mail) to virtually instant communication (minutes, if not seconds).
The goal of any type of communication is to be understood, and there can
be many obstacles to overcome when the communication process takes place
online. In recent years many discussions have occurred about how communication
alternatives affect understanding (for example, face-to-face meetings versus virtual
meetings held online, or the use of a telephone versus instant messaging for one-
on-one conversations). These are important concerns, because the Internet has
forever changed how people communicate.
Most of us are familiar with and are probably users of Internet calling services
such as Skype that allow people to create a video phone with a computer, web-
cam, and headset. Blogs are now a common way for people to broadcast ideas
very widely and very quickly, and, typically, to receive message responses on an
ongoing and often real-time basis. Blogs allow people to inform others or to learn
from others about an incredibly wide variety of topics helpful in one’s profession or
of interest to one on a personal level.
Interactions with other people for both professional and social reasons are a
prime reason why online social media outlets are so popular. Connections among
people in these online spaces involve personal and professional conversations,
attendance at training workshops, and the instant sharing of news and other infor-
mation.
Today, news from the world’s trouble spots is shared globally by those who
are there. This massive and ongoing output informs others, and also shapes the
(continued)
222 Chapter 5
reactions of those in charge and those around the world who have become aware
of the news.
The Internet allows people to communicate in numerous ways on social sites
such as Facebook and in virtual environments where they can represent them-
selves with a personal profile or an avatar. People have communication options
ranging from text and voice chat to public message boards and/or private mes-
saging. Still other nontraditional communication channels exist that allow users to
express themselves in creative ways; examples of such channels are YouTube for
videos and Flickr for photos.
Online communication broadens the methods through which people provide
information to others. For example, traditional communication methods involved
only voice, body language, and text exchanges. Now people can integrate these
methods, and communication no longer must be confined to one method at a
time. A person can post a blog message to a professional group, transmit tweets
(140-character messages sent through Twitter) to a family member, send an instant
message to another person, and begin a Skype call at almost the same time. Mov-
ing between these and other media alternatives is quick and easy. The choice of
method(s) basically depends on with whom one wants to communicate, the length
and nature of the message, and the amount of time that can or should be spent
during the interaction. The ability to do this type of multi-tasking is becoming more
seamless almost every day as new communication tools and applications are intro-
duced.
More About Communication Changes

Television, radio, newspapers, and magazines are able to reach out to many peo-
ple but, with a few exceptions such as newspapers’ “letters to the editor” and call-in
radio shows, they are mostly one-way communication channels. People cannot
usually respond to the message sender through these communication media, nor
can they communicate with each other. Today, web-enabled social media outlets
like Facebook and Twitter allow a different type of communication. People can send
and receive messages and communicate with many people at the same time. The
mobile phone made communication between people almost instantaneous from
almost anywhere, so today there are numerous kinds of conversations happening
at multiple levels all the time.
People such as bloggers, posters on Facebook, and broadcasters on YouTube
have the ability to influence many people, and the roles of centralized commu-
nication channels such as public relations and marketing teams in organizations
are changing. Any employee can easily communicate with the external world via
powerful social media channels, so media policies are now increasingly necessary
to guide employees about what they can and cannot discuss beyond the organiza-
tion.
The choice of so many different available media allows users to determine
which to select, based in part on how personal they want to make the communica-
tion and the extent of interaction desired with the message receiver. Let’s look at
five examples of ways people communicate using the many alternatives open to
them today:
•• Twitter is often an excellent choice for sending and receiving short and publicly
viewable messages. Its public reply feature provides an easy means for
people to interact with public figures and with others they do not personally
know. Tweets can, therefore, be a starting point for the possibility of more
direct communication.
•• After a relationship is established through public communication, the next
step may be a direct message within a social network. This provides a private
connection that is probably preferable to e-mail because it can only come from
people you follow.
•• E-mail allows for more in-depth communication, can be easily forwarded, and
can be sent to many people at once. If it is used skillfully, it is a great means of
communication.
•• The use of a phone allows one to hear a person’s voice, which provides
greater context for communication than written words. A phone allows for
immediate back-and-forth communication and is more private than the earlier
communication methods mentioned.
•• Face-to-face communication—historically, this was the entry point of relation-
ships but, today, this often evolves at later stages of a relationship after people
have communicated in other ways.
Technological innovations in communication media will continue to be rolled
out to the public at a fast pace. There is no question that technology has changed
how and why people communicate. Many of these impacts have affected, and will
continue to affect, clubs and other business and social organizations. Successful
club managers will embrace these changes rather than fear or avoid them. As they
address the challenges posed by new communications technology in a planned
and organized way, they and their clubs will benefit.
operating procedures can also be revised to identify where information should

flow between departments and outline ways to facilitate that flow.
•• Department meetings can be held to identify factors that hinder cooperation
between departments.
•• Club-wide events can be scheduled that allow club managers and employees
from all departments to get to know each other. It’s possible that even in small
clubs, some employees may not know each other. For example, employees
working in the grounds department may rarely if ever see staff members who
primarily work on evening banquets.
•• Club managers can use cross-functional teams to address issues. This
problem-solving approach occurs when employees from different depart-
ments provide input to the resolution of problems that may impact the
departments.
•• Managers can encourage employees to volunteer for projects that help
the local community or a civic-service group, or even plan and undertake
224 Chapter 5
club-sponsored projects to help local causes or organizations. While partici-

pating in these worthwhile endeavors, club employees who may not interact
very much at the club can get to know each other better.
Negotiations
Negotiations are a part of the club world just as in all other business organizations,
and can range from high-level negotiations involving top managers, board mem-
bers, and important club-wide issues to informal, casual negotiations between club
managers or other staff members trying to resolve minor challenges that come up
while they are performing their everyday jobs. The negotiation process helps the
involved parties reach an agreement about something while bargaining for advan-
tages in line with their own interests. Successful negotiators know the importance
of effective communication and compromise during the negotiation process.
When club managers negotiate with others, there are three possible outcomes:
•• An agreement is reached.
•• The negotiation is unsuccessful but the parties agree to continue negotiating
at some future time.
•• The parties “agree to disagree” and the negotiation process ends with no
agreement.
The best negotiators understand that a long-term relationship between the
parties is not possible when one party “wins” and the other “loses.” Negotiations
with “win-win” outcomes are generally the best.
The success or failure of most negotiations is influenced by the negotiators’
skill levels and by the extent to which their personalities are compatible. Three
other factors include each negotiator’s expectations about the other party’s inten-
tions, the extent to which the negotiators are committed to their positions, and
their ability to use persuasion to influence the other party and move him or her
toward an agreement.
Effective negotiators are effective communicators. They are excellent speakers
and listeners, and they can organize their thoughts before expressing them. They
know how to use facts, they can build good interpersonal relationships, and they
are effective decision-makers.
There are three basic elements to any formal negotiation session:
•• Preparation. Club managers should find out as much as possible about the
situation before beginning a negotiation session, whether the negotiation
will involve bargaining to reach a final sales price for an equipment item or
attempting to resolve a dispute between staff members. They must also have
an ideal outcome in mind; this will help guide the preparation process. Details
must be thought through and priorities set. For example, a long-term war-
ranty on an equipment purchase may be more important than fast delivery.
Before negotiations begin, club managers should identify their final fall-back
position—that is, the point beyond which they will not compromise.
•• The negotiation session. It is important that the club manager negotiates with
someone who has the authority to make a decision. In a purchasing situation,
for example, this may be a vendor’s representative, or it may be the sales man-
ager, or even the company’s owner.
All negotiation sessions have a beginning, middle, and end—that is,
a period where introductory remarks are made; the heart of the session, in
which the most serious discussion takes place; and a conclusion, during which
an agreement is finalized if the negotiation session went well, or arrange-
ments are made to continue the negotiations if an agreement was not reached.
Hopefully, the dialogue will be maintained on a professional level through-
out all three stages and will prove helpful to both parties. A club manager’s
communication skills such as questioning, listening, and observing become
very important during a negotiation session. The appropriate use of body lan-
guage is another important communication skill when negotiating.
•• Follow-up to the negotiation. Final steps in the negotiation process include con-
firming “who promised to do what and by when.” A written summary of the
negotiation session may be useful, as well as a self-evaluation of how the club
manager could have improved his or her performance. These documents may
be beneficial when the manager prepares for future negotiations.
Successful negotiators are patient. They do not typically accept the first offer,
and their goal is to give up something of lesser importance in order to gain some-
thing of greater importance. They want to learn the other party’s position before
they indicate their own. Successful negotiators stay focused on their goals, they
know the facts about the situation from their pre-session preparation, and they
are aware of all of their options—including the option of ending the negotiation
session without an agreement.
Key Terms
active voice—In the active voice, the subject of the sentence does the acting. The
active voice is usually stronger because it is more direct and uses fewer words than
the passive voice.
cross-functional team—A group of employees from different departments that
provides input to the resolution of inter-departmental problems.
downward communication—The passage of information from an organization’s
higher levels to its lower levels.
empathy—The ability to see circumstances from the other’s viewpoint or to under-
stand the other’s feelings.
feedback—The reaction of a listener or reader to the verbal and nonverbal com-
munication of a speaker or writer. Feedback may evaluate something the speaker/
writer said or did, and may provide corrective information.
grapevine—An informal communication network within an organization.
inverted pyramid—A style of writing that many newspaper reporters and others
use; it involves putting the most important information at the beginning of a writ-
ten piece and leaving less important details for the final paragraphs. Reporters
226 Chapter 5
write with the knowledge that readers may skip closing paragraphs or that editors
may delete them to fit the story into the available space.
lateral communication—The passage of information between peers at the same
organizational level.
mirroring—Repeating a speaker’s key words to show the speaker how they
sound. Mirroring indicates the listener’s interest in the speaker’s words and desire
to understand them. Mirroring helps both the listener and the speaker determine
the importance of the key words the speaker uses. Also called restating.
nonverbal communication (body language)—The facial expressions, gestures,
and body movements a person uses, including eye contact and posture. Our body
language may contradict our words or reveal information we don’t intend to
reveal. We can hear certain types of nonverbal communication, such as laughter,
weeping, whistling, or tone of voice.
open-ended questions—Questions that permit free, unstructured responses. Such
questions are broad and encourage responses of more than just a few words.
outline—A list of significant points that is helpful when writing a memo, letter, or
report. An outline helps writers organize their thoughts before actually starting to
write.
paraphrase—Using your own words to restate what a speaker just said, or to
reflect the content of the speaker’s message as well as the feeling behind the con-
tent. Paraphrasing helps the listener clarify to him- or herself what the speaker is
saying. It also helps the speaker, because a paraphrase reveals how the speaker’s
message sounds to the listener.
self-disclosure statements—Statements you can use to show a speaker how you
feel about what he or she said. When you report experiences or feelings similar to
the speaker’s, it shows the speaker that he or she is not the only one to think or feel
a certain way.
summarizing statements—Statements that condense parts of what the speaker
said and stress important points. Summarizing statements are used to focus atten-
tion on a certain topic, to guide the speaker to another part of the subject, and to
reach agreement on specific points in order to end the conversation.
topic sentence—A sentence that contains the main point of a paragraph and shows
what a paragraph is about. Using the topic sentence as a guideline, a writer can
logically develop the rest of the paragraph.
upward communication—The passage of information from an organization’s
lower levels to its higher levels.
Review Questions
1. What are three types of business communication?
2. What are some of the commonly believed myths about communication?
3. What are some barriers to effective communication?
4. How can club managers become more effective speakers?
5. What are some common obstacles to listening?
6. What are some active listening skills?
7. How can knowledge of nonverbal communication (body language) help club
managers on the job?
8. How can club managers make their business writing more effective?
9. What are some special considerations to keep in mind when sending e-mails?
10. What are some interpersonal communication skills that can help club manag-
ers more effectively deal with workplace communication issues?
Internet Sites
Editorial Service The University of Western Ontario
www.editorialservice.com/ www.sdc.uwo.ca/writing/
11ways.html index.html?handouts
Eleven ways to improve business writ- Student Development Services pro-
ing skills. vides easy-to-use, helpful information
on a variety of topics related to effec-
Writing Help Central tive writing.
www.writinghelp-central.com/
index.html E-Mail Replies
Shaun Fawcett’s website offers tips, www.emailreplies.com
advice, pointers, information, and This site explains how to send effective
templates for all types of business e-mail replies. It discusses why e-mail
writing. etiquette is necessary, lists e-mail
etiquette rules, and explains how to
HyperGrammar enforce these rules by creating a com-
www.uottawa.ca/academic/arts/ pany e-mail policy.
writcent/hypergrammar/
The Writing Centre at the University of Yale University Library
Ottawa offers an online reference for www.library.yale.edu/training/neti-
developing grammar, punctuation, quette/index.html
and writing skills. Guidelines for e-mail etiquette.
Understanding the Role of Marketing 1. Explain the role of marketing in a
Marketing Strategy private club setting. (pp. 229–235)
Situation Analysis 2. Summarize consumer- and
Service Marketing organizational-buyer behavior.
Internal Marketing (pp. 235–242)
Understanding Buyer Behavior
Consumer-Buyer Behavior 3. Identify the ways marketing mix
Organizational-Buyer Behavior affects club marketing. (pp. 242–259)
The Marketing Mix 4. Describe marketing research and
Product Concepts identify ethical considerations in club
Promotion Concepts marketing. (pp. 259–262)
Place or Distribution Concepts
Price Concepts
Marketing Research
Types of Research
Sources of Data
Toward an Ethical Approach to Club
Marketing
6
Club Marketing
This chapter was written and contributed by Lawrence E. Ross, Ph.D.,
Anne & Bill France Distinguished Professor of Business,
Florida Southern College, Lakeland, Florida.
Developing a successful new software application may be the fast path to riches
in today’s economy, but the key word is “successful.” What determines success?
Financial success requires that revenues exceed costs. Revenue will be realized
if the world needs the new software, is made aware of the new software, sees the
price of the new software as being worthy of the benefits that derive from its use,
and is able to purchase the software at a time and in a way that is convenient and
consistent with the markets’ needs. Since the software application is not going to
sell itself, you will probably have to turn to marketing to help you sell your won-
derful new product.
What do new software applications have to do with the club industry? They
serve to illustrate many of the misconceptions about the definition and role of
marketing in operating a hospitality enterprise such as a private club. Marketing
has increasingly become a topic for discussion in the club industry as the com-
petitive, legislative, socio-cultural, and economic pressures of the recent past have
restricted growth in club memberships and revenues. When an otherwise success-
ful club is faced with the prospect of disappointing revenues, marketing becomes
a topic of great interest among board members, club managers, and club members.
What is marketing, and what role can marketing play in a successful private club
operating in the current environment? These are the questions this chapter will
attempt to answer.
Understanding the Role of Marketing

What does the term “marketing” mean to you? Many people equate marketing
solely with selling or advertising. Marketing is a word that is often misused in
business and society to describe the merchandising and distribution of products
in a capitalistic, developed, free economy. The American Marketing Association
defines marketing as follows:
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.1
The basic function of marketing is to bring buyers and sellers together to com-
plete an exchange. In private clubs, members exchange money—membership fees,
bills for food and beverages, greens fees, and so on—for goods and services from
229
230 Chapter 6
the club. What the members receive must be of greater perceived value than the
amount of money the members pay or else the club will soon find itself with dis-
satisfied members. In time, failure to satisfy its members will lead to the demise of
the club. Marketing, therefore, is a necessary and dynamic aspect of managing any
enterprise or organization, particularly a private club.
Not all exchanges involve tangible products. Clubs are typically classified as
service-based products, with large numbers of their exchanges involving intan-
gible services. The customer in a service-based exchange is also different and is
rarely called a customer. Doctors call their customers patients, accountants call
their customers clients, and clubs call their customers members.
A market is defined as the set of all actual and potential buyers of a product.
In any market there typically will exist groups of buyers with similar needs and
similar marketing response characteristics. These homogeneous groups are called
market segments. Market segments are important to understand because they
help to define specific marketing objectives, strategies, and tactics for the club to
pursue. Club managers have long recognized that not all residents of a community
are potential club members. They have learned to divide community members
into market segments based on income, lifestyles, and other demographic differ-
ences. Then they pursue only those market segments that are the most likely to
contain potential club members.
There are many ways to segment a market: geographically (where potential
members live or work), demographically (who they are in terms of age, gender,
income, and family life cycle), psychographically (who they are in terms of per-
sonality, lifestyles, attitudes, and beliefs), or some combination of these, such as
geodemographically (who they are and where they live or work). A market can
also be segmented in terms of the benefits people are seeking (such as health- or
business-related benefits). Once a basis for segmentation is selected, data can be
gathered to help the club manager prioritize market segments into target markets.
Target markets can be categorized as primary markets, secondary markets, and
tertiary (insignificant or peripheral) markets. The residents of the community who
are the most likely to fit as members of the club are considered to be the club’s pri-
mary target market.
Marketing Strategy
A well-formulated marketing strategy makes it easier for a club to allocate its
resources to achieve a unique and workable market position. This market position
is influenced by the club’s internal strengths and weaknesses, anticipated changes
in the environment, and the competitive moves of its rivals.
A club’s marketing strategy should be long-term and should guide its short-
term marketing activities. Typically, a club’s marketing strategy will include guide-
lines for the target market and the specific marketing mix that will be used to reach
that target and achieve the club’s objectives. A club without a well-thought-out
marketing strategy can easily drift off course while implementing its short-term
marketing action plans. This does not mean that the club’s marketing strategy
should be rigid and fixed. On the contrary, as a club’s internal and external operat-
ing environments change, so too must its marketing strategy.
Club Marketing 231
Most marketing strategies can be classified according to the marketing ori-
entation or concept that serves as the strategy’s focal point. Over time, five such
orientations have been identified in business marketing:
•• Production orientation
•• Product orientation
•• Selling orientation
•• Marketing orientation
•• Societal orientation
While a club’s marketing strategies may incorporate elements of more than
one of these orientations, one usually will dominate.
Production Orientation. Marketing that is production-oriented is based on deliv-
ering the product to the customer at the lowest possible unit cost. McDonald’s
exemplifies this approach in the quick-service restaurant industry. McDonald’s
products are standardized, and the emphasis is on producing them quickly and at
maximum cost efficiency. If the customer wants to order something that is not part
of the standardized menu, it requires extra waiting time while the item is custom
produced. If McDonald’s encouraged its customers to custom-order every item
on its menu, the system would be brought to a screeching halt. Being the lowest-
cost-per-unit producer does not mean that all of McDonald’s products are priced
lowest in the market. Rather, it means that McDonald’s is able to take the extra
gross profit it earns on each item, use it to market its products more effectively, and
thereby increase its market share.
Product Orientation. Not every customer wants the same standardized product.
Some customers want different options and are willing to pay for them. This is
the basis for product-oriented marketing. Wendy’s, to continue with quick-service
examples, offers it basic hamburger product 256 different ways. This broad selec-
tion of choices, available to the customer on demand, is made possible by an effi-
cient production system, but the efficient production system is not the emphasis of
Wendy’s marketing strategy. Instead, Wendy’s tells its customers about the seem-
ingly endless array of choices, produced “hot off the grill,” that it can offer them
from a very limited menu. In its marketing, Wendy’s emphasizes product qualities
over production efficiency.
Selling Orientation. An organization with a selling-oriented marketing approach
sends salespeople into the marketplace to stimulate demand for its products. The
goals of the salespeople are to (1) make the potential customer aware of the orga-
nization’s products and services, and (2) persuade some of them to buy. Unfortu-
nately, many customers view this marketing approach negatively, since it some-
times leads to high-pressure sales tactics and unethical approaches. For many
people, the stigma attached to personal selling overshadows their entire view of
marketing. There need not be such a stigma. Most successful organizations that
use a sales force are very ethical and do not use high-pressure tactics. Most clubs
have a very professional sales staff. A club’s “salespersons” are its staff members,
232 Chapter 6
especially those in such sales-oriented positions as food server, bartender, and

golf pro.
Marketing Orientation. After World War II, there was tremendous economic
expansion in the United States and it was fairly easy to sell anything you could
produce because, after years of rationing and low production of consumer goods
due to the war effort, everyone needed everything. By the mid-1950s, however, as
the economy began to stabilize and the growth in demand began to slow down,
a new approach to marketing was developed. This approach, which dominates
businesses today, is known as marketing-oriented marketing. This concept is
based on the premise that it is best to first determine what the market needs and
then develop products and services—in fact, the entire organization should be
structured—around meeting those needs. This is the most profitable way to do
business. Fewer resources are wasted, less selling activity is necessary to stimulate
demand, and customers tend to get exactly what they want in a product that meets
their needs.
Societal Orientation. The fifth approach to marketing grew out of the marketing-
oriented approach. Examples of societal-oriented marketing include the promo-
tion of products that are “good for the environment” or “low in fat” and touted
as being good for the customer’s health. Today this trend in marketing is known
as “green marketing.” Under the societal orientation, a product is marketable if
customers benefit from it but not at the expense of a high cost to society in general.
Disposable diapers were introduced under the marketing orientation as a product
that clearly met the needs of consumers; however, if marketers had used a societal
orientation, disposable diapers might never have been introduced to the market,
since they stack up in landfills and are costly to society in general in terms of the
environment. Private clubs using a societal orientation to marketing are discover-
ing the advantages of offering organic food products and using more environmen-
tally sustainable approaches to golf course management.
Originally, marketers treated societal marketing with suspicion. Eventually it
was embraced, and now it is in danger of being abused, with biodegradable plas-
tics and anything that is recyclable being perceived as having a market advantage.
Customers are becoming confused and seek to understand which products truly
are or are not good for society and, at the same time, are or are not good for them.
The term “green washing” is used to describe businesses that attempt to position
their offerings as being societally friendly when in fact they may not be.
Situation Analysis
Whether a club chooses a production, product, selling, marketing, or societal ori-
entation as its primary marketing strategy will depend on the club’s resources,
such as the competencies of the club’s staff, and the opportunities and threats that
the club faces. Conducting a situation analysis can help club managers identify
internal and external environmental factors. Exhibit 1 includes common elements
of a comprehensive situation analysis. A situation analysis defines the circum-
stances that the club manager confronts as he or she prepares to develop a market-
ing strategy and ultimately a marketing plan. A situation analysis is often referred
Club Marketing 233
Exhibit 1 Components of a Situation Analysis
Internal Constraints
Strengths Weaknesses
Breadth and depth of product lines Narrow or outdated product lines

Degree of market coverage Limited market coverage
Production competencies Increasing or inefficient cost trends
Marketing skills Poor marketing plan
Information systems competencies Inadequate information systems
Human resource competencies Inadequate human resources
Brand name reputation Loss of brand name equity
Cost/financial advantages Financial instability
Depth of management skills Inadequate management skills
Efficient control systems Lack of control
Well-developed strategy Inappropriate organizational structure
Location advantages Location disadvantage
External Constraints
Opportunities Threats
Expansion of core business Attacks on core business

Exploit new market segments Increase in direct competition
Widen the breadth of product lines Increase in indirect competition
Extend cost/financial advantage Change in consumer preferences
Diversify into new business Rise in new or substitute products
Vertical integration (forward/backward) Shifts in demographic factors
Reduce rivalry among competitors Changes in economic conditions
Make profitable acquisitions Increased regulation
Apply brand name in new areas Legal challenges to existing structure
Seek fast market growth Rising labor costs
Incorporate new technologies Slower market growth (decline)
Source: Adapted from Arthur A. Thompson, Jr., and A. J. Strickland, III, Strategic Manage-
ment, 8th ed. (Chicago: Richard D. Irwin, Inc., 1995), p. 94.
to as a SWOT analysis. The SWOT acronym refers to the concept of identifying and
analyzing the club’s internal Strengths and Weaknesses, as well as the external
Opportunities, and Threats. Once the club’s current situation has been assessed,
an effective marketing strategy can be developed.
Assuming that the situation analysis indicates that it is feasible, most clubs
would choose a marketing strategy focused on growth. Such a strategy is not
always feasible, however, and internal constraints may dictate a strategy of
retrenchment or even a “harvesting” strategy where the club may eventually be
closed or merged with another organization.
If a club wants to grow, and the situation analysis indicates that the club has
the potential to grow, one of several growth strategies may be selected to guide
234 Chapter 6
Exhibit 2 Alternative Growth Strategies
Product Dimension
Present New
Present Market
MarketPenetration Product
Penetration ProductDevelopment
Development
Market
Dimension
New Market
MarketDevelopment Diversification
Development Diversification
Source: Thomas C. Kinnear, Kenneth L. Bernhardt, and Kathleen A. Krentler, Principles of

Marketing, 4th ed. (New York: HarperCollins, 1995), p. 95.
the development of the marketing plan. Exhibit 2 presents a classification scheme

for growth strategies. There are four growth strategies that depend on product-
related decisions, market-related decisions, or some combination of both. Product-
related decisions pertain to either staying with the current product offerings or
developing new products. Market-related decisions pertain to either continuing
to focus on current markets being served or attempting to identify and reach new,
unserved markets. The four growth strategies in Exhibit 2 are defined as:
1. Market Penetration—increasing revenue by increasing market share, or share

of customer, with current products in current markets. Examples include pro-
viding more opportunities for tennis court time, new meal/menu offerings, or
additional golf tee times for the current membership base.
2. Market Development—increasing revenue by taking present products to new
markets. Examples of market development strategies would include offering
a new golf-only membership category and opening the golf course to non-
members.
3. Product Development—increasing revenue by introducing new products to
current markets. Building a new skeet shooting range that members will pay
a fee to use is an example of product development. A country club opening a
city club to serve its members in a different location would also be an example
of product development.
4. Diversification—increasing revenue by introducing new products to new mar-
kets. For example, a club might diversify by hiring an in-house travel plan-
ner and offering tour packages to members for a fee. This new service might
appeal to club members who never used any of the club’s other products or
services, thereby creating a new market for the club.
Club Marketing 235
Whichever growth strategy is chosen, when combined with one of the five mar-
keting orientations, it will serve as the basic approach the club intends to use to
compete for members and their discretionary spending over the long term.
Service Marketing
Marketing services, such as those services that clubs provide to their members, is
quite different from marketing manufactured goods. What is being marketed—
service—is intangible; very perishable (services can’t be manufactured and stock-
piled); not often identical from day to day, employee to employee, or member to
member; and usually produced (by club employees) while the service is simulta-
neously being consumed (by members).2
With tangible products, there is often an emphasis on advertising and moving
a static inventory off the shelves and into the hands of consumers. Service market-
ing, on the other hand, attempts to maximize the frequency of purchase, the aver-
age amount of the purchase, and the satisfaction of the customer/member—all at
the same time. Less traditional external marketing (such as advertising) is used,
and there is a greater emphasis on the people-oriented dimensions of marketing,
such as personal selling and delivering excellent service.
Internal Marketing
Because clubs market their services and club employees are the providers of those
services, employees often become the focus of a unique marketing effort on the
part of club managers. Instead of thinking of employees as functionaries, manage-
ment should recognize the need to gain employee buy-in on the importance of
their jobs and the value of their contributions to the members’ level of satisfaction
with the club. This emphasis on employees as “customers” and their jobs as prod-
ucts is one aspect of the concept known as internal marketing.
Club managers should communicate to employees that their contributions
to member satisfaction are important to meeting member needs and making the
club successful. If this importance is not successfully communicated, management
often ends up with dissatisfied employees who may sometimes pass along their
dissatisfaction to members in the form of poor service or poor attitudes. This in
turn can result in dissatisfied members who may take their business elsewhere.
Understanding Buyer Behavior

To successfully market their clubs, club managers should have an understanding
of buyer behavior and what motivates the members to use the club. Buyer behav-
ior can be defined as the processes people use to (1) make purchase decisions, and
(2) use and dispose of the purchased goods and services.3
In addition to dealing with individuals who buy for themselves (“consumer
buyers”), clubs also deal with individuals who buy for a group or organization
that they represent (“organizational buyers”). In this section we will first look at
two models of consumer-buyer behavior, then look at a model of organizational-
buyer behavior.
236 Chapter 6
Consumer-Buyer Behavior
Two consumer buyer behavior models are the family life cycle and the consumer-
purchase-decision process. These two models can help club managers understand
what forces are affecting a club member’s purchase behavior. Recognizing the
forces that have an impact on a member’s needs provides valuable insight to club
managers when addressing marketing decisions.
The Family Life Cycle. Knowing the gender, age, and marital status of a member
is not always enough to explain his or her buying behavior. Often, differences in
purchase and consumption patterns among people of the same age and sex may
result from being in different stages of the family life cycle. The family life cycle
(FLC) is a series of stages determined by a combination of age, marital status, and
the presence or absence of children in the home. In the club business, it may be the
most valuable tool in understanding the buying behavior of members.
Exhibit 3 illustrates FLC stages. The FLC provides club managers with insight
about how families’ needs, incomes, resources, and expenditures differ at each
stage. For example, people in the “young married with children” stage are most
likely to be candidates for a developer-owned club membership, since they are in
the peak period for buying a home. However, young marrieds with children typi-
cally have very little discretionary cash and may not be able to support an aggres-
sive food and beverage budget for the club. They are likely to make great demands
on the club’s amenities, such as the pool and other sporting facilities. Conversely,
people in the “middle-aged married without dependent children” stage have the
extra cash and financial stability to be frequent customers of the club’s food and
beverage outlets. This group will not place as much demand on the sporting facili-
ties (other than the golf course) as the young marrieds with children.
The Consumer-Purchase-Decision Process. Exhibit 4 illustrates a simplified
model of the consumer-purchase-decision process. This model shows that a buy-
er’s purchase decision is a dynamic process. A potential new member of the club
will go through a complex decision-making procedure before choosing to join a
club. He or she will seek out information from various sources to help evaluate
the many alternatives that are available. The simplified model shown in Exhibit
4 contains five stages. Each of these stages is influenced by a multitude of either
inferred or directly observable factors. These factors are summarized in Exhibit 5
in an expanded model of the consumer-purchase-decision process.4
Inferred influences. The top third of Exhibit 5 shows that there are three indi-
rect or inferred influences on consumer behavior: psychological factors, external/
social factors, and situational factors. The following sections examine some of the
factors in the model.
Motivation, one of the psychological factors, can be defined as “activity
directed toward a goal.” A motivated state is the result of tension, which arises
out of an unfilled need. People try to reduce the tension by satisfying the need.
The need is therefore a critical element in the motivation process. When a need is
aroused, it becomes a motive or drive that stimulates behavior. Buying motives
are often classified as being either primary buying motives or selective buying
motives. Primary buying motives are associated with general categories of products
Club Marketing 237
Exhibit 3 Sample Family Life Cycle (FLC) Model
Middle-Aged
Divorced
without
Children
Young Middle-Aged
Divorced Married
without without
Children Children
Middle-Aged
Young Middle-Aged
Young Married Married
Young Married Married Older Older
without without
Single with with Married Unmarried
Children Dependent
Children Children
Children
Middle-Aged
Young Middle-Aged Divorced
Divorced Divorced without
with Children with Children Dependent
Children
Few financial Better off Home purchas- Financial Home owner- Drastic cut in Drastic cut in
burdens financially ing at peak position still ship at a income income
than they will level improving peak
Fashion opin- Home paid for Special need
be in the near
ion leaders Liquid assets More working Most satisfied for attention,
future Buy: medical
very low wives with financial affection, and
Recreation- supplies that
Highest status security
oriented Dissatisfied Hard to influ- aid health,
purchase rate
with financial ence with Interested in sleep, and Buy: same as
Buy: basic and highest
position and advertising travel, rec- digestion other retired
furniture, average
amount of reation, self- group
cars, stereos, purchase of High average
money saved education
vacations durables purchase of
Like advertised durables Make gifts and
Buy: refrigera-
new products contributions
tors, durable Buy: new/more
furniture, Buy: televi- tasteful fur- Buy: vacations,
vacations sions, baby niture, boats, luxuries,
food, toys unnecessary home
appliances improve-
ments
Source: Patrick E. Murphy and William A. Staples, “A Modernized Family Life Cycle,” Jour-
nal of Consumer Research, June 1979, pp. 16–17.
238 Chapter 6
Exhibit 4 Simplified Model of the Consumer-Purchase-Decision Process
Evaluation
Evaluation Post-
Post-
Problem
Problem Information
Information Purchase
Purchase
of
of Purchase
Purchase
Recognition
Recognition Seeking
Seeking Decision
Decision
Alternatives
Alternatives Evaluation
Evaluation

Exhibit 5 Expanded Model of the Consumer-Purchase-Decision Process
Psychological
Psychological Factors
Factors External/Social
External/Social Factors
Factors Situational
Situational Factors
Factors
–– Motivation
Motivation –– Reference
Reference Groups
Groups –– Physical
Physical surroundings
surroundings
–– Perception
Perception –– Culture
Culture –– Social
Social surroundings
surroundings
–– Learning
Learning –– Social
Social Class
Class –– Temporal
Temporal perspective
perspective
–– Personality
Personality –– Family
Family –– Task
Task definition
definition
–– Attitudes
Attitudes –– Antecedent
Antecedent states
states
Inferred Influences
Evaluation
Evaluation Post-
Post-
Problem
Problem Information
Information Purchase
Purchase
of
of Purchase
Purchase
Recognition
Recognition Seeking
Seeking Decision
Decision
Alternatives
Alternatives Evaluation
Evaluation
Directly Observable Influences
Demographic
Demographic Factors
Factors Marketing
Marketing Mix
Mix Factors
Factors
–– Age,
Age, Gender,
Gender, Race
Race –– Product
Product
–– Income,
Income, Education
Education –– Price
Price
–– Household
Household size
size –– Place
Place
–– Promotion
Promotion

Club Marketing 239
or services, such as whether to buy a sport-utility vehicle or join a private club.
Selective buying motives are associated with specific brands within a category—
for example, whether to buy a Chevy Suburban or a Toyota Sequoia, or whether to
join the Roseglen Country Club or the Green Meadow Golf Club.
Needs, which form the basis for motives, are most often classified on the basis
of the work done by Abraham Maslow in the 1930s and 1940s. In Maslow’s model,
a lower-level need must be met before an individual is ready to be motivated to
satisfy a higher-level need. Maslow classified needs from the most basic physical
needs to the highest psychological need—the need for self-actualization or self-
fulfillment. In between are the needs for safety and security, social or affection
needs, and esteem needs. Every person has at least one level of need to be met at
all times. Through the products and services that it offers, a club attempts to meet
its members’ needs at every level in Maslow’s model.
Attitude is a factor that is closely related to the concept of personality. An
attitude is a learned tendency to respond consistently toward a given object, such
as a brand. Attitudes also encompass a person’s value system, which represents
personal standards of good and bad, right and wrong. A club member may have
the attitude that racquet clubs are a waste of money. This same member may also
hold a stronger attitude that only activities that get you out and involved with
nature (such as golf) are worthwhile. Attitudes can change over time. Typically the
changes will be gradual and will be influenced by a person’s age, education, and
economic or social standing. Sometimes, however, an attitudinal change occurs
suddenly, such as the shift that might occur in a person’s feelings about drinking
alcohol after a loved one is injured in a drunk-driving accident.
A third factor to consider is culture. Culture refers to the set of values, norms,
attitudes, and other meaningful factors that shape human behavior and the arti-
facts or results of that behavior as they are transmitted from one generation to the
next. Culture is a relatively permanent, but dynamic, influence on behavior. What
we eat and how we eat it are two examples of how culture affects our lives. While
grits may be an acceptable side dish in the South, members of a club located in
the North would probably ignore it. Even club membership is largely related to
culture. In a culture that encourages club membership we would expect to find a
greater propensity to join clubs than we would in a culture that does not.
Directly observable influences. The lower third of the Exhibit 5 model lists
those directly observable factors that also influence the consumer-purchase-decision
process. These factors include demographics (discussed earlier in the chapter) and
the marketing mix (discussed in the next section of the chapter). Club managers
and marketers should thoroughly understand the influences that both inferred and
directly observable influences have on consumer behavior and what impact those
influences have on the final choices that club members make. Demographic factors
are outside of the control of club managers, but understanding the relationship of
these factors to member purchase behavior will help managers develop and market
products and services that better satisfy the members’ needs.
Organizational-Buyer Behavior
Organizational-buyer behavior is different from consumer-buyer behavior because
the nature of the purchase is different and the profile of the buyer is more complex
240 Chapter 6
and often involves a group of individuals, some of whom may not even consume
the product. An organizational buyer is defined as the purchaser of hospitality
products for a group of people with a common purpose.5 Examples of organiza-
tional buyers include members of business organizations, social clubs, or asso-
ciations; people buying products and services for special occasions (such as wed-
dings and anniversaries); and other groups that may need hospitality products
and services. These buyers’ needs are different from those of the consumer buyers
just described. Although all of the basic factors—inferred and directly observable
influences—are the same for an organizational buyer as for a consumer buyer,
organizational buyers are buying to meet the needs of others.
Buying Centers. Club managers should understand that often an organizational
buyer is not an individual, but a group of individuals known as a buying center.
Each of the persons who make up a buying center has a specific role to carry out.
Several persons may occupy the same role and one person can undertake several
roles simultaneously. What follows are the five roles in a typical buying center:
1. User. This individual actually will consume or use the product or service. In
many cases, the user initiates the buying process. Often, the user will also be
involved in the post-purchase evaluation.
2. Influencer. This buying-center member may develop purchase criteria or pro-
vide information that is used to evaluate alternatives. His or her influence on
the purchase process may be indirect or direct.
3. Buyer. This individual has formal authority for actually selecting the com-
pany to purchase from, and usually arranges the actual terms of the purchase.
Although the buyer is responsible for negotiating, the buyer is subject to the
constraints placed on him or her by the other members of the buying center.
4. Decider. This person controls the purse strings and is termed the decider
because he or she is the person with the authority to decide to spend the
money on the product or service, although often the decision he or she makes
is to go along with what the buyer recommends. This member of the buying
center is often referred to as the fund provider. In his or her role as the fund
provider, the decider permits the buyer to complete the purchase. In large,
formally structured organizations, the buyer and the decider are two distinct
members of the buying center; in small, informal organizations, these two
roles are often performed by the same person.
5. Gatekeeper. This individual controls the flow of information into the buying
center. A gatekeeper may have a formal position such as secretary or purchas-
ing agent, but often his or her role is largely informal.
The buying center concept can be best understood through a simple illus-
tration. Consider Mr. and Mrs. Smith, whose daughter is planning a wedding in
the spring. The Smiths will attend the wedding reception, consume the food and
beverages, and enjoy the other services that the club provides, so they qualify as
users. Mrs. Smith’s mother has some definite ideas about the theme and specifics
of the reception—she takes on the role of influencer. The Smiths’ daughter, Lau-
ren, will be the person who actually negotiates with the club manager about the
Club Marketing 241
Exhibit 6 Buy Classes in the Organizational-Purchase Process
Buying
New Modified Straight
Situation
Task Rebuy Rebuy
(Buy Class)
Newness of the
High Medium Low
Problem
Information
Extensive Moderate Minimal
Requirements
Importance of Very
Limited None
New Alternatives Important
Source: Adapted from Patrick Robinson, Charles Faris, and Yoram Wind, Industrial Buying
and Creative Marketing (Boston: Allyn and Bacon, 1967), p. 28. This is the original buy-class
model upon which subsequent models have been based.
specifics for the reception and, as such, she plays the role of the buyer. She is also,
clearly, a user and an influencer. Mr. Smith ultimately has to sign the contract and
pay the club; this designates his role as decider. His daughter, his wife, and the
club manager will tightly control the information Mr. Smith is given. Each of these
individuals takes on the role of gatekeeper.
Buy Classes. Not all organizational purchases are subject to the same complex
interplay of buying-center members. One factor that moderates the complexity of
the decision-making process is the type of buying decision that must be made. The
different types of buying decisions made by organizations are called buy classes.
Buy classes are based on the newness of the problem to the group, the amount
of information needed to make an informed purchase decision, and the degree
to which alternatives are considered. Exhibit 6 illustrates the three types of buy
classes: new task, modified rebuy, and straight rebuy.5
In a new-task situation, the group faces a requirement or problem that has not
occurred before. The group has little or no relevant previous buying experience,
so a great deal of information is needed, and alternative suppliers are carefully
considered. Lauren Smith’s wedding would be a new-task situation if the Smiths
had never planned a wedding before.
In a modified-rebuy situation, the purchase is common or recurring, but the
suppliers might change. An example of a modified-rebuy situation would occur if
the Smiths had the wedding receptions for their first three daughters at the club,
but Lauren has asked them to consider a new hotel that just opened in the last year.
The Smiths must solicit a bid from the hotel and meet with the catering sales staff
so they can compare the hotel’s proposal to the club’s proposal.
242 Chapter 6
A straight-rebuy situation involves a common or recurring purchase and is

usually handled on a routine basis. A list of acceptable product/service sources
exists, and no new suppliers are considered; buyers have a great deal of relevant
buying experience and need little or no additional information. An example of
a straight-rebuy situation might be a bridge club planning its next weekly lun-
cheon at the club. The specific menu, the price, or the date and time may change
somewhat from purchase to purchase, but a new supplier isn’t considered and the
purchase process is routine.
The Marketing Mix

Marketing becomes much more down-to-earth when the club manager moves
from concepts and strategies to the more pragmatic aspects of a detailed mar-
keting plan. The marketing plan affects club members directly. It represents the
implementation of the club’s marketing strategy through specific tactics taken in
each of four areas: product, promotion, place, and price—the Four P's of market-
ing. These four areas together are called the marketing mix.
Product Concepts
The first and most important element of the marketing mix is the product itself.
Club marketing decisions in this area may be concerned with the number and
types of recreational activities that the club should offer, the depth and breadth
of the menu in the dining room or grill, the physical appearance of the club, and
the policies and procedures for taking dining room reservations or tee times. It is
helpful to explore product concepts when trying to understand club products and
the impact that product-related marketing decisions will have on the satisfaction
of club members and the club’s financial performance. Important product concepts
include:
•• Product classifications
•• Product positioning
•• Product differentiation
•• Product life cycles
Product Classifications. A product can be defined, for marketing purposes, as
a bundle of benefits, both physical and psychological, that satisfies the needs
and wants of the purchaser. There are various types of products, and a product-
classification scheme is beneficial when trying to understand how the club’s
products may best be marketed. One of the most common methods for classifying
products is to define them as convenience goods, shopping goods, or specialty
goods on the basis of the buyer’s involvement with the product and the frequency
of purchase.6
Convenience goods are those products bought with a minimum of time and
effort. A soft drink purchased at the snack bar by a member is an example of a con-
venience good. The price is typically quite low and does not justify an extensive
shopping effort. In addition, the purchaser usually has a high level of knowledge
Club Marketing 243
about the product and its benefits. Purchasers of convenience goods typically have
little brand loyalty; if they are thirsty, they will usually buy a soft drink regardless
of the brand name. The key to marketing convenience goods is convenience; the
product must be readily available when the person wants it. This implies that the
level of distribution is of critical importance. In other words, to successfully mar-
ket soft drinks, a club should plan to have soft drinks available wherever members
are likely to be thirsty—on fairways, near the tennis courts, adjacent to the pool,
and in locker rooms.
Shopping goods are products that require some comparison shopping on the
part of the purchaser. Consumers may compare price, quality, and style before
making a purchase decision. Extensive information-seeking is necessary because
the purchaser has incomplete knowledge. Shopping goods are not purchased as
often as convenience goods and generally are higher-priced. The bottle of wine
that a club member buys from the club’s wine list is an example of a shopping
good. For this type of product, promotional efforts take on added importance.
It takes more personal selling to sell a shopping good than to sell a convenience
good, and price is often used as a device to help guide purchase decisions. Unlike
soft drinks, for which price matters little, wine should be priced in a way that indi-
cates its quality. The price of a fine Bordeaux wine should be higher than that of a
mass-produced blended wine, for example.
A product for which no reasonable substitute exists is called a specialty good.
The purchaser is willing to spend a considerable amount of time and effort to
locate and purchase this type of product. The purchaser is typically very brand
loyal and willing to pay a premium price for a specialty good. An example of a
specialty good would be a signature seafood dish prepared by an acclaimed chef,
or an exclusive club. Marketing unique club products or the club itself as a spe-
cialty good gives the club an advantage in the marketplace.
Product Positioning. Product positioning refers to the process of developing a
strategy for designing a club’s product and service offerings and image so that the
club’s target markets understand and appreciate what the club stands for in rela-
tion to its competition. There may be several competing clubs in a given market. If
a club manager wants to position the club as the premier club in the market—the
best club in relation to all the others—then efforts must be made to create and
maintain a premier image in the members’ minds and in the minds of the market
in general.
Product Differentiation. Product differentiation refers to the efforts or action steps
club managers perform to carry out the product-positioning strategy. Product pack-
aging and physical changes to the club can help differentiate a club from its com-
petition. If the products and features chosen to differentiate the club are important
and believable to people in the market, this strategy will help to increase revenues.
Product differentiation is often used along with market segmentation for
maximum results. A club that has identified a large market of retirees and targets
their need for value by featuring extensive golf opportunities at prices lower than
what competing clubs are charging can be said to be following a product differen-
tiation strategy. In this case, the club manager is positioning the club to the retiree
market as the club to join because it offers rounds of golf at low prices.
244 Chapter 6
Product Life Cycles. All products pass through well-defined life-cycle stages. The
life of a product is measured in terms of its revenues and rate of revenue growth.
When a club is first built and introduced to the market, revenues may be relatively
low and costs relatively high, resulting in operating deficits. This is referred to as
the introductory stage of the product’s life cycle (PLC). The same may be true for a
new menu item or activity program at a club. As the new product is accepted and
becomes more popular, it enters into the growth stage of the PLC. Revenues go up
rapidly and costs are moderate, and the club is able to charge a premium price for
the product that reflects its popularity. The combination of increasing revenues
and moderate costs results in a generous operating profit margin on this product.
This is a very desirable stage in the PLC. The extra profit margin may be used to
support products that are in the introductory stage or in later stages of the PLC.
As the club enjoys the increasing revenues that accompany increasing pop-
ularity, the product may attract the attention of competitors. When competitors
enter the market and the product’s revenue growth slows down, this indicates
that the product has entered the mature stage of the PLC. Tennis programs are an
example of a mature club product. During maturity, profit margins begin to fall.
Competitors begin to copy the successful aspects of the product, so that the prod-
ucts of competing clubs become more similar and less differentiated. At this stage,
price competition becomes common and total revenues level off while product
profit margins are reduced.
The decline stage is the final stage in the product life cycle. An example of a
club product in the decline stage is formal dining. Technological progress, shifts
in member tastes and lifestyles, and competitive attacks from rival operations are
among the reasons products enter the decline stage. Sales and profits fall off rap-
idly, and cost concerns become paramount. Declining products drain the club’s
resources and efforts away from healthy (growth stage) products.
Sometimes declining products are simply dropped. Another option for deal-
ing with a declining product is to reformulate it so that a new life cycle is gener-
ated and decline is avoided. A third option is to dramatically reduce costs through
improved operating procedures that allow the club to keep offering the product
and still generate profits from its sale. For example, a club might offer fine dining
only one night a week so that the needs of the members who want such products
can still be met, but the costs associated with offering the products can be isolated
to one night for greater cost efficiency.
The product life cycle is useful primarily as a planning tool. Strategies based
strictly on the PLC should not be followed blindly. One danger of using the PLC is
the self-fulfilling prophecy. A club manager who suspects that a product is enter-
ing the decline stage might want to drastically reduce the amount of resources
committed to the product. The product might not actually be in the decline stage,
but if the manager pulls promotion and other resources away from it, the result
may be the product’s premature failure.
Promotion Concepts
Decisions affecting how a club communicates information about its product offer-
ings to members are known generally in marketing as promotional decisions.
Club Marketing 245
Promotional elements of a club’s marketing mix may include personal selling,
publicity, sales promotions, and—in some cases—advertising. These elements or
activities serve to remind and inform members about the club and its offerings.
Promotional efforts in clubs are somewhat constrained by the club’s limited mar-
ket—its membership.
The Promotional Mix. The combination of promotional elements used to com-

municate with members is called the club’s promotional mix. There is not a single
optimal promotional mix for a club, because all of the promotional elements are
essentially substitutes or reinforcements for each other. For instance, a coupon in
the club newsletter for a discount on dinner may be more or less effective than a
personal recommendation from the staff of the pro shop regarding the Friday-
night seafood buffet. Both are examples of promoting dinner, and either one or a
combination of both techniques might be used to build member participation and
revenues. An effective promotional mix is one that accomplishes the club’s promo-
tion or communication objectives.
Creating an effective promotional mix is more art than science and will typi-
cally require trial and error, with managers carefully comparing actual results to
the desired objectives. Factors that guide a club manager in developing an effec-
tive promotional mix include: (1) the resources available, (2) characteristics of the
club, (3) characteristics of the club’s membership, (4) the product life-cycle stage
that the club is in, and (5) club policy. For most club operations, advertising will
play a minor role in the promotional mix, while personal selling, digital and direct
mail, and the club newsletter will get the greatest share of resources and deliver
the best results. Any decisions regarding the promotional tactics to pursue must be
made with the image of the club in mind and be consistent with the club’s overall
marketing strategy.
The following sections discuss common marketing activities that may be con-
sidered for inclusion in a club’s promotional mix:
•• Personal selling
•• Direct mail
•• Newsletters
•• Merchandising the menu
•• Sales promotions
•• Advertising
•• Public relations
•• Web-based communications
Personal selling. Perhaps no other element of marketing communication has

as important a role in promoting the club’s products as personal selling. In clubs,
the service staff is responsible for most of the personal selling effort. Good ser-
vice usually involves simultaneously determining a member’s needs and satisfy-
ing those needs with some aspect of the club’s product offering. Good service is
synonymous with personal selling. Personal selling is the most dynamic, flexible,
246 Chapter 6
Exhibit 7 Sample Club Newsletters
Courtesy of The University Club, Washington, D.C., and The Cosmos Club, Washington, D.C.
and efficient form of two-way marketing communication available to the club’s

managers and staff.
Direct mail. One of the most common techniques clubs use to communicate
with members is direct mail. Direct mail is popular in clubs for many reasons.
One important reason is the availability and low cost of computer hardware and
software, which has enhanced management’s ability to aim direct mailings more
precisely. For example, a club can reach members who infrequently eat at the club
with an offer designed to entice them to the club’s dining room. The idea behind
this direct-mail promotion is that the dining experience will be so positive that the
infrequent diner will begin to visit the club’s dining room more often and purchase
more regularly. Using the club’s billing database, the club manager could target
only those members with a food and beverage purchase history below a certain
threshold. Conversely, frequent diners might be mailed a free meal coupon as a
reward for their loyalty and their contribution to the club’s operating revenues.
The heart of any direct-mail marketing system is the mailing list. A club’s
membership roster and billing database provide a ready-made, up-to-date, low-
cost mailing list that club managers can use to send marketing messages to selected
club members or the entire membership.
Newsletters. Nearly every club uses a newsletter to communicate with its
members (see Exhibit 7). A newsletter can tell members about upcoming special
events, changes in the hours of operation in the dining room, renovation plans,
Club Marketing 247
Exhibit 8 Tips for Effective Club Newsletters
•• Set goals for your publication and know the audience you are trying to reach.
Don’t try to be everything to everybody.
•• Make sure a professional communicator is responsible for producing the news-
letter.
•• Do not use the newsletter to preach to club members. It should be more than
just a tool to promote the club or sell products. It should enlighten, entertain,
and stimulate a genuine dialogue between the club and its members.
•• Provide a forum in which readers may respond. Give members a chance to feel
a sense of ownership of the publication by soliciting priceless feedback from
them.
•• Write to express, not impress. Use words that communicate your message
clearly and concretely. Use short sentences and paragraphs, and avoid jargon
that will not be easily understood by your entire audience.
•• Establish a recognizable format so that readers can become comfortable with
the publication and quickly find information.
•• Publish on a consistent schedule with firm deadlines. The members should be
able to anticipate the arrival of the newsletter and plan to use the information in
a timely fashion.
•• Use well-planned photography and artwork. Don’t wait until the design stage to
begin thinking of graphics to use. Readers typically look at interesting photos
first.
•• Keep your readers in mind when choosing a typeface. They generally want
large, easy-to-read type. Avoid the urge to cram too much into each edition. By
saying less you may communicate more.
Sources: Carolyn Walkup, “Newsletters Prove to be Effective Marketing Tools,” Nation’s

Restaurant News, February 25, 1991, p. 12; Chris Brennan-Martin, “Food-Focused Newslet-
ters Pique Curiosity,” Restaurants & Institutions, March 27, 1991, pp. 125–130; and Steve
Friedman, “Keep Needs of Readers in Mind When Publishing Newsletter,” Marketing News,
January 1992, p. 5.
and so on. A club newsletter should also have a column or section that showcases
members and their accomplishments. Member recognition is one of the most effec-
tive ways to ensure member satisfaction. A letter-to-the-editor section that solicits
feedback from members is an excellent two-way communication device. An effec-
tive newsletter should include a calendar of events, directory of key staff mem-
bers, and a list of the board members and officers of the club.
Additional sections can include staff highlights (any staff changes or accom-
plishments that have taken place since the previous newsletter), food and bever-
age information such as recipes or new wines offered in the dining room, general
information about the community that may affect club members, and promotional
offers designed to encourage club use and increase product sales. Other points to
consider when developing a newsletter are shown in Exhibit 8.
248 Chapter 6
Merchandising the menu. The principal marketing communication tool

available to club managers for improving food and beverage revenues is the club’s
menu. In much the same way that a clothing company uses a catalogue to show
what it has to offer, a club uses its menu to guide club members in making food
and beverage purchases.
A menu is not just a list of food and beverage products offered for sale. It is
a marketing tool that can be used to merchandise specific items that are good for
members (in terms of need satisfaction) and good for the club (in terms of prof-
itability). Identifying the most eye-catching areas on a club menu can help club
managers place house specialties and high-profit menu items in the right spots
(see Exhibit 9). For example, with a two-page menu, the right page gets the most
attention; with a three-panel menu, the middle panel gets the most attention. Club
managers can also draw member attention to high-profit menu items by placing
them at the head of lists, putting them in boxes, or using graphic elements such
as line drawings or decorative borders to set them apart. Regularly conducting a
thorough analysis of the popularity and profitability of each menu item can help
in the development, design, and pricing of subsequent menus.
Other menu considerations besides layout, content and pricing include deci-
sions about the type style to use, the weight and quality of the paper stock, the
style of the menu cover, and the use of artwork. The menu should reflect the club’s
marketing strategy and be consistent with the expectations of club members. For
example, a photocopied menu on plain white paper does not belong in a white-
tablecloth gourmet dining room.
Including recommendations for wine pairings in the menu is an effective way
to cross-merchandise different product offerings. Likewise, creating combination,
table d’hôte meals can accomplish the goal of increasing the average food pur-
chase while increasing member satisfaction at the same time. Other menu mer-
chandising ideas include the promotion of brand-name ingredients and products
to convey a strong commitment to quality.
Sales promotions. A club sales promotion is any activity or incentive designed
to induce an immediate response from (1) targeted members, or (2) employees
responsible for selling the promoted product. Sales promotions include offering
members free samples of a product; sponsoring a sweepstakes or other contest
offering price incentives, rebates, or giveaway items to members; demonstrating
products; and offering an incentive to the staff (cash, lottery tickets, time off, etc.) for
selling the promoted product. Sales promotions aimed at club members are called
“pull techniques” because they give members incentives for requesting the prod-
uct. Sales promotions directed at club staff members are called “push techniques”
because they encourage the staff to more actively sell the product to members.
Advertising. Many club managers would say that advertising has no place
in the club’s promotional mix, but there are ways to advertise other than buy-
ing a display ad in the local newspaper or a thirty-second spot on the local radio
station. Club advertising may be as simple and discreet as a poster placed at the
club's entrance promoting the Valentine’s Day dinner and dance, or a page in the
club’s newsletter encouraging club members to take advantage of the club’s prime
rib special every Wednesday night. Promotional pieces can also be stuffed in the
envelope along with each member’s monthly bill as part of a direct mail campaign.
Club Marketing 249
Exhibit 9 Menus and Eye Movement
First First
Eye Eye
Focus Focus
Eye movement across a Eye movement across a two-page menu.

one-page menu.
Upper Left Corner Upper Right Corner
First
Eye
Focus
Bottom Left Corner Bottom Right Corner
Eye movement across a three-page menu.
This chart details typical eye movement over various styles of menus. In order to
make the most effective use of menu space, high-profit items should be placed in
those locations where they will receive the most notice.
Public relations. Publicity refers to the unpaid mention of a product or orga-

nization by the media. Publicity is often the product of a club’s public relations
decisions and efforts. Public relations activities can be characterized as positive
250 Chapter 6
or negative. Positive public relations are usually done on a proactive basis. For
example, the club might send out a press release regarding the hiring of a new golf
pro or the first-place ribbon the executive chef recently won in a culinary competi-
tion. The key aspects of good news publicity are to know how to write an effective
press release and knowing who is most likely to publish it. The club may want to
engage the services of a public relations firm to ensure maximum exposure and
efficiency in all of the club’s publicity efforts.
Negative public relations activities are typically reactive and deal with errone-
ous impressions or damaging reports about the club. A news story about a sexual
harassment lawsuit being brought by a former employee against a club member
would be an example of this type of public relations challenge. The best way to
prepare for negative publicity is to develop a set of public relations contingency
plans for dealing with bad news. Most importantly, avoid the temptation to stone-
wall. If you refuse to explain what happened, a multitude of unofficial informa-
tion sources usually will spring up.7 The best policy is to get the news out quickly,
accurately, and completely. A designated club spokesperson should become the
media’s best source for all information related to the incident. A second aspect
of handling bad publicity is to try to turn the negative into a positive. Members
and potential members will watch how the club’s spokesperson performs during
the crisis. If the spokesperson appears to have the situation under control, it will
reflect well on the club and lead to the members trusting the club's management to
handle the situation in an appropriate manner.
Web-based communications. The growth of the Internet can be seen in the
increase in the number of Internet users. In 1994 there were only 25 million users
in the United States, but by 2009 that number had grown to 160 million, with the
number of Internet users worldwide exceeding the one billion mark.8 At a mini-
mum, an effective club communication plan should include an attractive and eas-
ily accessed website. It would be more effective to have an interactive website
that is actively managed on a daily basis. Such a site would include daily menu
specials, photos of club members participating in recent club activities, links to key
club staff members, and the ability for members to view their current account bal-
ances or minimums. Additional features may include the ability to book reserva-
tions or tee times, participate in online surveys, and plan private events. Creating
an online presence requires the club to secure a domain name, find a server to host
the site, create the web pages, and upload them to the web server. To preserve the
legal status of private clubs, it is important to make the site fully accessible only to
members by use of a password.
Having an accessible and member-friendly website is a good start, but it is
not sufficient to rely solely on the content of the website to drive traffic to the
site. It is important to support the website with an effective e-mail communication
plan. Effective e-mail communication requires the use of advanced tools to allow
club managers to create effective e-mails quickly and attractively with a minimum
amount of effort. Such advanced tools allow recurring e-mails to be sent not only
at scheduled intervals, but also individually at those intervals, to avoid having
them trapped in SPAM filters. Other advanced tools can target e-mails geographi-
cally, include hot links to specific web pages (such as a reservation site for future
meal occasions), and target members on the basis of event registration, opt-ins,
Club Marketing 251
Foster Positive Media Relations

To develop good media relations and get the most from media coverage, clubs must
consider several factors. First and foremost, a club’s GM/COO or media contact must
understand media interests. Just as the club staff must project the club’s benefits
to its membership, newspapers and magazines must generate reader interest and
increase circulation, and radio and television stations must appeal to their audiences
and increase ratings.
Publishing or airing interesting features or news stories is one way the news
media seek to appeal to audiences. A club’s objective for developing good media
relations is to communicate consistently—with as wide a reach as possible—that the
club is an asset to the local community.
The general manager of one private yacht club encourages positive media
relations. His positive dealings with the media have enabled his club to maintain and
enjoy its privacy while enhancing its positive image in the community.
“If I have taken the trouble to establish good relationships with the local media
by cooperating on a regular basis, they are more likely to provide fair, accurate
reporting on our club in times of crisis,” he explains. “Even though we offer only mem-
ber access to our private club, we have developed a positive relationship with the
local community by serving as a U.S. Coast Guard harbor of refuge. In our area, we
provide the closest access point from the water to a hospital. We provide 24 hours
of free dockage to boaters in distress. Two local high school sailing teams use our
facilities for practice, and we host the regional high school sailing championships. By
cooperating with the media on their coverage of such functions that benefit the com-
munity, we find that the media, in turn, provide us with fair treatment.”
One CMAA chapter initiated a unique approach to building positive relationships
with the media by hosting a special media day at one chapter club. All local sports
media professionals were invited to learn more about the golf industry and were pro-
vided with industry-related information and media kits from participating clubs. Indus-
try experts spoke at the gathering and, after a luncheon, everyone was invited to
play 18 holes of golf and network with chapter club managers, golf pros, golf course
architects and others. “Approximately 30 club managers and 30 media professionals
attended our chapter media day,” commented the host club’s general manager. “This
was a great way to drum up more positive publicity about our industry.”
Evaluate Club News: Is It “Newsworthy”?

According to the American Heritage Dictionary, “newsworthy” is something “worthy
of reporting to the general public.” How do you determine if a club event meets this
criterion? First, ascertain whether the public in your immediate community, state, or
region shows interest in your activities. Then, determine what is newsworthy (and
to whom) by examining community interests that relate to club news and what news
editors deem worthy of news. The ten key elements, adapted from CMAA public
relations materials and enumerated in Figure 1, often can be found in “newsworthy”
stories. Combinations of these key elements make stories all the more newsworthy.
(continued)
252 Chapter 6
Figure 1: Determining Newsworthy Status

Immediacy: relevance to the The stronger the immediacy of your story
present time or subject. or event, the more likely it will be printed or
broadcast. (Example: a national issue such as
business meals or dues deduction laws that
have impacted your club.)
Proximity: nearness in space, Proximity is one of the strongest elements of
time, or order. news because it engages people on a per-
sonal level. (Example: election of your club’s
new board of directors can affect the member-
ship directly.)
Consequence: importance or The more people affected by news, the greater
significance. the news value. (Example: club member par-
ticipation in local, national, or world affairs that
reflects positively on your club.)
Conflict: a struggle to over- A conflict or challenge can make interesting
come. news. (Example: when a regional drought
jeopardizes your club’s water use on the golf
course, your superintendent finds a way to
save water, yet keep the greens healthy.)
Oddity: anything out of the (Example: Arnold Palmer walks into your
ordinary. board meeting and gives everyone $1,000 in
recognition of their great support of the golf
industry.)
Gender: sexual identity, espe- A newsworthy gender-related story may
cially in relation to society or involve breaking down traditional stereotypes.
culture. (Example: your club’s female golf pro is invited
to enter an otherwise all-male tournament.)
Emotion: strong feeling. Human interest stories encompass human
feelings such as happiness, sadness, hate,
love, etc. (Example: your club hosts an annual
holiday party for orphans.)
Prominence: readily notice- Local personalities generate community inter-
able or conspicuous. est; national personalities generate nationwide
interest. (Example: athletic or culinary events
with celebrity participants.)
Suspense: excitement and Following individuals as they pursue their
anticipation regarding an goals against great odds can be suspense-
outcome. ful. (Example: a club member wins a local or
national contest or championship.)
Progress: forward movement, (Example: a club member discovers a cure for
improvement, innovation. a rare disease.)
(continued)
Club Marketing 253
Prepare Wisely for Special Circumstances

Bad news about a club may create lasting impressions and negatively affect the
club’s image well after the event has passed. While some clubs may choose not to
be involved with or concerned about the public at large, it is important for members
to derive a sense of pride from the manner in which their clubs conduct business. If
a club receives negative publicity, it could prompt some members to leave or pre-
vent new members from joining. It is critical, therefore, to develop a public relations
strategy for handling emergencies or other situations that can generate bad news or
tarnish a club’s reputation. Proper planning can limit the potential for negative public-
ity and reinforce a positive public image and member pride.
One club manager displayed wonderful finesse when the media was prepared
to cast his club in a negative light. When drought hit the club’s locale, the media
planned to report that the “big private club with the state-of-the-art sprinkler system”
was “wasting” precious local water. The club manager responded proactively to the
charge and took the reporter on a tour to demonstrate that the club’s water table was
separate from the immediate community’s water table. No threat of water hoarding
existed because the club’s computerized irrigation system efficiently protected the
greens through water conservation and recycling. The club manager told reporters
that the club would be happy to offer water to local residents in need. By setting the
story straight, the club manager went well beyond making the best of a bad situation
and helped the club to distinguish itself during a community crisis.
and other customized criteria. These same tools allow for e-mail tracking to see
who received the e-mail, when it was opened, and which e-mail addresses are no
longer valid.9
Place or Distribution Concepts

Place or distribution in the semantics of marketing refers to the tactics and tech-
niques used to bring the product and the customer together. Distribution issues
are concerned with matching the supply and demand for a product in a timely
fashion while meeting the financial objectives of pricing for a profit. Specifically,
marketing distribution decisions involve coordinating the firms or individuals
who participate in the flow of goods and services from producers to consumers.
Goods versus Services. When the manufacturer of a typical tangible product or
manufactured good makes decisions about how to get the product into the end-
user’s hands, the decisions are focused on the channels of distribution to be used.
Channels of distribution include determining the number and type of interme-
diaries to be used between the point of production and the point of consump-
tion. The types of intermediaries include agents or brokers, wholesalers, and retail
outlets. Not every tangible product is distributed in the same way. There are an
almost infinite variety of options available, from direct distribution to complex
multi-channel options. In the case of intangible or services-based products, such
as those found in a club, there are many distribution options as well. However,
254 Chapter 6
because of the unique nature of service-based products, there is a fundamental

difference between tangible-goods distribution plans and service-based plans. In
order to purchase and consume a service, the buyer must be in the presence of the
service provider. For example, revenues from the services provided by the club’s
golf professional are only realized when the golf pro works with a member. If no
one is scheduled for lessons Thursday morning, then the revenue the club could
have realized, had someone taken golf lessons Thursday morning, is gone forever.
Because services are highly perishable and involve simultaneous production and
consumption, distribution plans for organizations that provide services are usu-
ally focused on getting purchasers (in the case of clubs, members) to come to the
point of production (the club).
The distribution channels for hospitality services rarely involve a separate
wholesaler or retailer taking physical possession of the product and selling it to
the end-consumer at a later date. A club is not only the retailer, but the manu-
facturer of its products as well. The problem, then, is not how to distribute the
club’s product to retailers, but how to get members to the retail outlet of the club’s
products—the club itself. This problem gives rise to the need for a special kind
of distribution system. In a business where the product is very perishable and
where production and consumption are simultaneous, it is imperative for a club to
consider distribution options that allow its members to more easily visit the club
and purchase club products and services. For single or independent club opera-
tions, distribution options or decisions are limited to the selection of the physical
location of the club and issues such as accessibility, operating hours, and offering
various levels of membership. For multi-unit clubs, however, distribution options
are more complex.
Distribution Options for Multi-Unit Clubs. While many clubs are single-entity
operations, there is a growing trend toward establishing groups of clubs, or
“chains,” as they are called in other areas of hospitality such as restaurants and
hotels. For multi-unit club operations, decisions regarding distribution might
include how to expand the reach of the club chain and facilitate member usage
through increased visibility and recognition of the clubs in the chain. This goal
is similar to the goal McDonald’s has of wanting the Golden Arches on all of the
best street corners in the market. Distribution options for a multi-unit club chain,
or a single club considering expansion into a multi-unit chain, include forming a
“mini-chain” of independent clubs, franchising the clubs, or affiliating with other
clubs.
Independent “mini-chains.” Most private clubs today are independently
owned and operated, and most prize their independence and do not want to be
seen as franchised properties. However, some independent clubs that have a com-
mon bond of some type—they are in the same city, for example, or are owned by
the same developer—decide to band together and in some ways act as a chain in
order to gain certain purchasing and accounting advantages. These “mini-chains”
of from two to five clubs reap some economies of scale by banding together, but
not as much as clubs that belong to bigger franchise-type organizations such as
ClubCorp, which has more than 170 clubs under its umbrella. Also, these mini-
chains add little value to the clubs within the chain from a distribution point
Club Marketing 255
of view; since each club maintains its appearance of independence, there is no
“brand-recognition value” to the mini-chain, so belonging to the chain does little
to bring more new members to any of the clubs within the chain. It also does not
encourage members of clubs within the chain to visit the other clubs in the chain.
Franchised operations. In the case of a non-equity (profit-oriented) club,
managers may work for a franchisor-based organization. The owners, or share-
holders, of the club will choose this option when they want immediate member
recognition of the reputation and image that accompanies the franchising parent’s
name. In addition, this option provides greater access to capital funds for expand-
ing or improving the club’s facilities and, in some cases, may make available
better-trained managers. A popular benefit of being a franchised operation is the
professional marketing support that the parent organization can provide. Other
benefits of a franchise relationship include support services that act as safeguards
in areas of legal matters, safety regulations, and insurance issues.
There are also some significant disadvantages to operating a club under a fran-
chise. The operating objectives of the franchise organization and the club’s members
may differ. For example, the members may want moderate pricing and restricted
access but the franchisee may want higher prices and a liberal membership policy
in order to maximize membership revenue numbers. Another disadvantage arises
because the financial risk of the club is borne by the club’s owners and not by the
franchisor. When the return on investment is below the owners’ expectations they
may want to take steps to reduce their risk (or increase their return) that are not
permitted under the franchise agreement. This in turn leads to conflict and may
interfere with management’s ability to meet the needs of club members.
Affiliations. Many club members may also travel frequently and extensively
or belong to a club with limited facilities in a market with many competitors. Some
clubs affiliate with other clubs to share facilities, engage in joint-marketing efforts,
and achieve economies of scale in purchasing. Affiliated clubs extend privileges to
nonmembers at little or no cost in exchange for reciprocating privileges. This is a
relatively limited approach to distribution, and provides very few financial advan-
tages. It does, however, increase the value of a club membership and can help
entice prospective members to join a club. A special type of affiliation is known as
reciprocal membership. Under a reciprocal agreement, a club will allow members
from other participating clubs to use its facilities and services, and facilitate the
billing and collection of fees.
Price Concepts
Pricing the club’s products and services is not always the first thing that comes
to mind when developing marketing strategies for a club, and setting prices is
not as simple a concept as it first appears. Generally, price can be defined as “the
monetary value that the producer of a good or service puts on the utility that the
purchaser will receive from the good or service.”
From a purely economic viewpoint, pricing products and services in monetary
terms is important because price facilitates the establishment of relative value and
makes complex transactions possible. On a more practical level, price is important
to a club because it affects the quantity of product the club can sell and the amount
256 Chapter 6
of revenue it can generate to cover the costs of doing business. If prices are too low,
there may be too much demand for the club’s services and insufficient revenue to
cover the operating costs. This scenario will result in such great popularity for the
club that it will quickly go out of business unless the prices are adjusted upward
to a profitable level. Price is important to members as well, who use it as a measure
of their cost of living. Members might get angry if the price of a club product is
too high and may choose not to purchase it, which results in a member need going
unsatisfied. If members see a product’s price as reasonable, they will be more will-
ing to pay it and should purchase the product more frequently than they would if
they felt the product was overpriced. In addition to increasing the club’s operating
revenues, satisfied members will place a higher value on their club membership
and will be more likely to renew their memberships in the future.
The importance of pricing to a club dictates that club managers develop a
set of pricing strategies before attempting to implement either a rational or emo-
tional pricing approach. Pricing strategies are typically based on a combination
of demand, cost, and competitive and promotional factors. Pricing strategies can
range from relatively low prices (i.e., introductory pricing designed to encourage
first-time buyers) to relatively high or prestige prices designed to indicate that the
club or club product has a high degree of exclusivity and quality.
One of the most important aspects of pricing is the concept of elasticity of
demand. Elasticity of demand is a means of measuring how sensitive demand
is to changes in price. In general, as the selling price of a product decreases, the
quantity demanded will increase; when the price of a product is increased, the
quantity demanded will decrease. When the demand for a product is highly sen-
sitive to price changes, such that an increase in price leads to a decrease in total
revenue, the demand is said to be elastic. When the demand for a product is not
very sensitive to changes in price, such that an increase in price leads to an over-
all increase in the revenue from that product, the demand is said to be inelastic.
It is possible to mathematically calculate the demand elasticity for any product
if the exact demand characteristics are known for a full range of possible prices.
Knowing a product’s demand elasticity can be helpful to the club manager in
guiding price decisions. If the demand for the club’s products is elastic (that is,
price-sensitive) then a conservative pricing strategy is called for.
Rational Approaches to Pricing. Setting price levels can be done with techniques
ranging from naïve and simple to complex. Because setting prices is arguably a
rational, objective, and quantifiable process, it is easy to overlook the subjective
and emotional implications that should be addressed. Whichever pricing strategy
or method is employed, the resultant price should then be submitted to a subjec-
tive test of reasonableness before it is implemented. Rational pricing approaches
•• Full-cost pricing
•• Mark-up pricing
•• Gross-profit pricing
•• Integrated pricing
Club Marketing 257
Full-cost pricing. Full-cost pricing, also referred to as cost-plus pricing, is
product pricing that covers all variable costs of production, administrative costs,
allocated fixed costs, and a desired level of profit. Full-cost pricing has long been
an appealing method for setting prices because it is relatively straightforward
and relies on the fundamental premise that if all costs and a profit are accounted
for before setting prices on club products, the club will prosper. However, this
approach assumes that the decision-maker can accurately identify all costs associ-
ated with each product and that the products can be sold at the resultant prices.
In order to use the full-cost pricing method, a club manager must be able to
identify all production costs and understand the relationship between fixed and
variable costs. In addition, knowing the elasticity of demand for the product is
essential to successfully using this pricing method.
While full-cost pricing is arguably the best method of rationally setting prices,
it is also the most difficult and complex method because it requires the decision-
maker to know the nature of all the costs of the operation and be able to incorpo-
rate them into a single set of pricing guidelines. This difficulty is often overcome
by establishing a pricing ratio, or factor, that estimates the relationship between
the costs and the forecasted demand and makes the actual setting of prices a sim-
ple mathematical exercise. This alternative to full-cost pricing is called mark-up
pricing. Food and beverage products are often priced using mark-up pricing.
Mark-up pricing. Food and beverages constitute a significant portion of a
club’s revenues, but may constitute a disproportionately small amount of the
club’s operating costs. In such a case, it may be more practical to use a mark-up
factor to establish the selling price of a menu item whenever the direct costs of pro-
ducing the item are easily identified. The mark-up factor is designed to cover all
non-product costs, such as labor, utilities, supplies, interest costs, taxes, and other
elements of the club’s operating overhead.
Under the mark-up approach, the first step is to determine the menu item’s
ingredient costs. Second, the club manager must calculate the appropriate mark-
up factor to use in multiplying the ingredient costs. The third step is to multiply
the ingredient costs by the mark-up factor to determine the desired selling price.
Finally, the club manager must assess the price in terms of its reasonableness to
the members. The multiple, or mark-up factor, is usually based on a desired level
of food cost (or beverage cost) and is calculated by dividing the number 1 by the
desired product cost percentage. A desired cost of 40 percent would result in a fac-
tor of 2.5 (100 ÷ 40 = 2.5) or a price that is two and a half times the ingredient costs.
Gross-profit pricing. Gross-profit pricing is a variation of full-cost pricing.
With this method, all of the non-product costs are estimated for a given period
of time in the future. These costs include the fixed and variable costs of operating
the club, but do not include the cost of providing the specific product. Secondly,
an estimate of the number of products or transactions to be completed during the
same period of time is calculated. The total non-product costs reflect the amount of
total gross profit that is necessary to successfully operate the club. The gross mar-
gin is then divided by the expected number of transactions (sales) and the result
is the amount of gross profit the club needs to recover from each transaction. This
amount is then added to the variable cost of producing the product to arrive at the
desired selling price.
258 Chapter 6
The disadvantages of the gross-profit pricing method are the same as those
for full-cost pricing. These disadvantages include the need for the decision-maker
to know all production costs and be able to identify the relationship between fixed
and variable costs, as well as knowing the elasticity of demand for the product
in question. In addition, the accuracy of the forecasted number of transactions is
critical to the successful implementation of this method. Failure to properly allo-
cate costs or an underestimation of the number of transactions could result in an
operating deficit.
Integrated pricing. Many clubs have several revenue-producing depart-
ments. If each department was allowed to price its products independently, the
club might fail to realize its profit goals and operate at a deficit. For instance, set-
ting greens fees very high might result in maximizing golf revenues at the expense
of the food and beverage department. The higher greens fees would probably
mean that fewer members would use the course and there would be fewer custom-
ers for the grill room or snack bar. If the profit potential from food and beverage is
not realized, other operating costs may go unmet.
Prices for all operated departments should therefore be established in such a
way that the club’s total revenue is maximized. This requires an integrated pricing
policy set by the club’s board and the general manager and coordinated among all
of the club’s department managers. While integrated pricing benefits the club as
a whole, it can mean that some departments will not maximize their revenues or
departmental profit.
Emotional Approaches to Pricing. Rational approaches to setting prices may need
to be tempered by subjective factors. Subjective or emotional pricing approaches
should be given consideration, but should never be the primary basis for setting
prices. It is more appropriate to set prices using a rational or objective approach
and then submit the prices to subjective tests for reasonableness.
One subjective approach to pricing, known as competitive pricing, bases a
club’s prices on what the competition is charging. This is typically done without
knowing the competitor’s cost structure or pricing strategies. In the club environ-
ment this will usually result in pricing below the competition. Unfortunately, this
does not take into account the price sensitivity of club members or such factors
as the club’s location, the unique capabilities of the club’s staff, member goodwill,
and the exclusivity of the club. Pricing above the market may yield high gross
profits, but reduce demand so much that overall revenues and departmental prof-
its are below expectations.
Another emotional approach to pricing is to base the selling price on the club
manager’s intuition. Typically, a manager who uses this approach bases the sell-
ing price on what he or she “feels” that members are willing to pay. The manager
relies on his or her experience regarding member reactions to prices. Unfortu-
nately, intuition suffers from the same disadvantages as competitive pricing; the
intuitive method ignores costs and may decrease demand so much that the club
fails to recoup its operating costs.
Psychological pricing methods are often employed by club managers trying
to tune in to the emotional impact of pricing. Odd-numbered pricing is an example
of a psychological pricing method. Prices are set so that the last digit is always an
Club Marketing 259
odd number, usually 9. This is done to create a consistent impression among buy-
ers that the prices are lower than they actually are. For example, managers who
set the price of a menu item at $8.99 hope that members will think, “That’s less
than $9,” and therefore the item is a “good value”; these thoughts would not be
encouraged if the price were set just a penny higher at $9.00. Other psychological
considerations include not listing prices in either ascending or descending order.
With such lists, members are able to match prices to their “mental budget line” too
easily, and low-priced items will have an unnecessary advantage.
The last emotional pricing approach is simply trial and error. Under this
method, the price is set and then member reactions are monitored to determine
whether the price should be adjusted up or down. Problems with this approach
include the failure to consider costs and the time lag between when the price is
set and when member reactions are recorded and analyzed. A long time lag could
result in irreparable damage being done before corrections can be made. Also, fre-
quent price changes may confuse or anger members. Another disadvantage of the
trial-and-error method is that it fails to isolate the cause of the member reaction. A
member’s negative reaction to a price may be the result of a bad day at the office
or even the weather and may have no relation to the actual price being charged.
Marketing Research
Most private clubs have conducted informal marketing research for many
decades. In an effort to better understand the needs and wants of members, club
managers periodically ask the members for their opinions. Often, this solicitation
of opinions takes the form of a member comment card or an annual membership
survey. Managers may also meet with servers from the dining room on a weekly
basis to ask them how members reacted to the daily or weekly specials offered
by the club. Training servers to effectively solicit such feedback is one element of
a well-designed marketing information system. In addition, managers may read
articles that appear in the business press or in club-industry trade publications
about trends affecting the club. All of these efforts to collect and process data about
the market and the club’s products are associated with marketing research. Most,
however, are done informally and with little concern for the importance or “fit” of
the data with the overall forces affecting the club’s operation.
A formal marketing research effort is distinguished from informal approaches
by the fact that it is systematic and follows an orderly sequence of steps designed
to provide reliable information for decision-making. Marketing research is
defined as:
the function that links an organization to its market through the gath-
ering of information. This information allows for the identification and
definition of market-driven opportunities and problems. The informa-
tion allows for the generation, refinement, and evaluation of market-
ing actions. It allows for the monitoring of marketing performance and
improved understanding of marketing as a business process.10
Club managers, facing a challenging and dynamic marketplace, are respond-
ing to the need for up-to-date and reliable marketing information by creating what
260 Chapter 6
are referred to as marketing information systems. A marketing information sys-

tem is a structured, interacting complex of people and equipment designed to
generate pertinent marketing information from sources within and outside the
club. The information is generated for use in both current decision-making and
future planning in regard to formulating marketing strategy, identifying buyer
behaviors, and developing an effective marketing mix.
Types of Research
There are two broad marketing-research categories. Subjective methods of collect-
ing marketing data are typically referred to as qualitative research; objective meth-
ods are referred to as quantitative research.
Qualitative Research. Qualitative research is concerned with exploring the atti-
tudes and behaviors of specific club members. The most common form of qualita-
tive research is called focus-group research. A typical club focus group comprises
six to ten members familiar with the club and its products and services. These club
members are brought together with a trained moderator to discuss some aspect of
the club’s product offerings.
A focus group is often used when a club develops a new menu. The focus
group may be the club’s house committee or the food and beverage committee,
or it may be selected from the general membership. The club manager may pro-
duce a draft of the proposed menu and then invite the focus group to discuss the
menu over a one- to two-hour period. To avoid interjecting his or her own biases,
the manager should hire a skilled moderator to lead the focus group and explore
the members’ opinions fully. Skilled moderators build rapport with group mem-
bers so that they are more likely to share their true feelings, attitudes, and beliefs.
The group’s discussion can be recorded (via audio- or videotape) and then subse-
quently analyzed by decision-makers.
Qualitative research is useful because it allows the moderator to get informa-
tion from the direct consumers of the product, which can lead to the development
of new ideas and concepts. The major drawback to this type of research is that
managers can only be certain that the findings apply to the focus group and not to
the club’s general membership. Some clubs overcome this difficulty by convening
more than one focus group to get a better sampling of the membership.
Quantitative Research. Quantitative research deals with numbers. One type of
quantitative research is called descriptive research. Descriptive research describes
the number of members who like or dislike something and includes the members’
ages and other demographic characteristics represented by averages, frequencies,
or other percentages. While descriptive research can tell the manager how many
members feel or act a certain way, it cannot tell them why the members feel or act
a certain way.
An example of a descriptive study is the annual membership survey. A
membership survey asks club members to respond to a list of questions. Ques-
tions could request demographic data such as age, income, or gender of family
members. Additional questions might ask for opinions about the quality of club
Club Marketing 261
services offered, the availability of services, and prices of specific products or
services. This data is then tabulated into a statistical summary and presented to
club staff for further analysis. Techniques (such as cross tabulation or Pearson
product-moment correlations) exist for examining two or more of these variables
simultaneously to establish how they correlate. For instance, the members who
responded favorably to the availability of low-fat menu choices could be corre-
lated with their ages or genders. The results of this analysis could suggest when
and where low-fat food should be offered and how many low-fat offerings to
make available on future menus.
Other types of research include inferential and conclusive research. Inferen-
tial research relies on results taken from representative samples of a population
(as opposed to conducting a census of the full membership population within a
club, for example) and then inferring or generalizing the results back onto the
population being studied. Conclusive research is designed to draw conclusions
– typically about what causes something to happen – and is typically done with
experiments in a tightly controlled environment. Conclusive or causal research
is very expensive and typically yields results that cannot be generalized onto the
population.
Sources of Data
There are two basic sources of data used in marketing research: primary and sec-
ondary. Secondary data is the most common type of marketing data. Secondary
data is information that has already been collected for another purpose. Because
it has already been collected, secondary data can be obtained more quickly and
less expensively than primary data. The unique nature of secondary data—that
it already exists—is the principal advantage and principal disadvantage of using
this type of data. Since secondary data was collected for some other purpose, it
may not provide a manager with exactly the information he or she needs for the
marketing decision at hand. In addition, the data may be out of date, or in a form
that is of little use to the manager. The major sources of secondary data are internal
records, syndicated data, and government data. Syndicated data refers to informa-
tion that has been collected, analyzed, or archived by private sources or “syndica-
tors” and subsequently made available for a fee. Sources for this type of second-
ary data include credit-reporting bureaus and companies such as Claritas, which
compiles marketing on neighborhoods (as defined by postal zip codes), with its
PRIZM system (Potential Rating Index for Zip Markets). Government data is often
available at little or no cost to users because tax revenues were spent to generate
it. Unfortunately, government data is often not in a form that is immediately use-
ful. Some syndicators specialize in reformatting government data to a more “user-
friendly” form and selling it.
Primary data, on the other hand, is information that is collected specifically
for the current use. Because it is almost always more expensive and time-consum-
ing to collect primary data, primary data collection should be considered only
after secondary sources are exhausted. Primary data sources may include surveys,
telephone interviews, and in-person interviews. Focus-group research is an exam-
ple of collecting qualitative primary data.
262 Chapter 6
Toward an Ethical Approach to Club Marketing

Club managers must be concerned not only with successfully marketing their clubs,
but marketing them within the range of what is considered ethical and appropri-
ate behavior. Ethics represent a set of beliefs about what is right or wrong. Ethics
may be determined by an individual or by a group. What is proper and ethical in
one setting may not be so in another.
There is increasing awareness by the public of the ethical aspects of business
decisions.11 Club managers constantly face ethical dilemmas. For example, should
one member always be given the best table in the dining room? Should club man-
agers promote the consumption of alcohol when overconsumption can lead to
health problems and/or legal problems for members? Even marketing research
raises ethical questions: how much information should managers know about club
members and what means are acceptable in gathering that information?
One way club managers can resolve ethical dilemmas in marketing is to sub-
mit a marketing decision to three ethical tests:
1. Does the decision violate someone’s rights or the law?
2. Is everyone who is affected by the decision treated fairly?
3. Would you mind reading about your decision and its consequences in the
newspaper or club newsletter?
Ethical marketing is not only important for club managers to practice, moni-
tor, and improve, it is also important for all of the club’s employees. The exam-
ple set by the management of the club, in terms of ethical behavior, influences
employee behavior and in turn affects the members’ perceptions of and satisfac-
tion with the club itself.
Endnotes
1. “About the AMA.” American Marketing Association, July 31, 2009; www.marketing-
power.com/AboutAMA/Pages/DefinitionofMarketing.aspx>.
2. Leonard L. Berry, “Services Marketing Is Different,” Business, May/June 1980.
3. Charles W. Lamb, Jr., Joseph F. Hair, Jr., and Carl McDaniel, Principles of Marketing,
Second Edition (Cincinnati, Ohio: South-Western Publishing, 1994), p. 102.
4. Thomas C. Kinnear, Kenneth L. Bernhardt, and Kathleen A. Krentler, Principles of Mar-
keting, Fourth Edition (San Francisco: HarperCollins, 1995), p. 187.
5. Patrick Robinson, Charles Faris, and Yoram Wind, Industrial Buying and Creative Mar-
keting (Boston: Allyn and Bacon, 1967), p. 28.
6. Melvin T. Copeland, “The Relationship of Consumer Buying Habits to Marketing
Methods,” Harvard Business Review, April 1923, pp. 282–289.
7. Stephen M. Agins, “How to Survive Bad Publicity,” Lodging, January 1991, pp. 33–34.
8. Erick Schonfeld, “TechCrunch,” comscore, July 31, 2009; www.techcrunch.com/
2009/01/23/comscore-internet-population-passes-one-billion-top-15-countries/>.
9. William Ivers, “AXIS: Communication,” clubessential, July 31, 2009; www.clubessential.
com/Default.aspx?p=DynamicModule&pageid=241238&ssid=95727&vnf=1>.
Club Marketing 263
10. American Marketing Association, “Official Definition of Marketing Research,” 2001.
11. Stephen S.J. Hall, “Ethics in Hospitality: How to Draw Your Line,” Lodging, September
1989, pp. 59–61.
Key Terms
attitude—A learned tendency to respond consistently toward a given object, such
as a brand.
buy class—A type of buying decision based on the newness of the problem to
the organization, the type of information required, and the consideration of new
alternatives.
buying center—A group of individuals functioning as an organizational buyer.
consumer-buyer behavior model—A tool to help the club manager understand
what forces are affecting club members’ purchase behavior.
convenience good—A product that is purchased with a minimum of time and
effort.
culture—The set of values, norms, attitudes, and other meaningful symbols that
shape human behavior and the artifacts or products of that behavior as they are
transmitted from one generation to the next.
descriptive research—A type of quantitative marketing research that counts the
number of members who like or dislike something and includes the members’
ages and other demographic characteristics represented as averages, frequencies,
or other percentages. An example of descriptive research in the club industry is the
annual membership survey.
elasticity of demand—A term economists use to describe the change in the quan-
tity demanded by consumers as a result of a given change in the price charged.
ethics—A set of moral principles and values that we use to answer questions
regarding the right or wrong action to take.
family life cycle (FLC)—A series of stages within a family, determined by a combi-
nation of age, marital status, and the presence or absence of children in the home.
internal marketing—A marketing effort that managers direct toward employees,
in which managers sell employees on the importance of their jobs and the value of
their contributions to the success of the club.
market—A population group that has purchasing power and is currently, or could
be, a purchaser of an organization’s products or services.
market segment—A group of consumers with similar needs, wants, backgrounds,
incomes, buying habits, or other attributes.
marketing—The process of planning and executing the conception, pricing, pro-
motion, and distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational objectives.
264 Chapter 6
marketing information system—A structured, interacting complex of people and

equipment designed to generate marketing information from sources within and
outside of an organization.
marketing mix—The combination of the Four P's of marketing—product, promo-
tion, place, and price—used to achieve marketing objectives.
marketing research—The function that links an organization to its market through
the gathering of information.
motivation—Activity directed toward a goal.
organizational buyer—A purchaser of products for a group of people within an
organization.
primary data—Research information that is collected specifically for the current
use.
primary target market—The market segment whose members are most likely to
want a business’s product or service.
product differentiation strategy—A marketing strategy that involves creating
a difference in consumers’ minds between a particular product and competing
products.
product positioning—A marketing strategy aimed at creating and maintaining a
desired image for a product relative to the image of competing products.
publicity—The gratuitous mention in the media of an organization’s people,
products, or services.
qualitative research—The collection of verbal marketing data, usually to analyze
the attitudes or behaviors of buyers.
quantitative research—Marketing research that deals with numbers.
secondary data—Research data that has previously been gathered for a purpose
other than the one at hand.
shopping good—A product that requires shoppers to do some comparison shop-
ping before making a purchase.
situation analysis—An analysis of an organization’s strengths, weaknesses,
opportunities, and threats.
specialty good—A product for which no reasonable substitute exists.
Review Questions
1. How is a market defined and segmented?
2. What are five marketing orientations that serve as the focal points for market-
ing strategy?
3. What is a situation analysis?
4. What is service marketing? internal marketing?
Club Marketing 265
5. How can understanding the concept of the family life cycle help club manag-
ers market their clubs?
6. What is the consumer-purchase-decision process?
7. What are buying centers? buy classes?
8. What are some common product concepts that can help managers understand
the products they offer to members?
9. A typical club’s promotional mix consists of what elements?
10. What are some common place or distribution concepts that can help club
managers better understand how to market their clubs?
11. What are some typical approaches to pricing club products and services?
12. What are the differences between qualitative research and quantitative
research?
13. What role do ethics play in club marketing?
Case Study
As hard as he tried, Fred Lee couldn’t get his clubhouse manager’s comment out of
his head. “You know, it’s not just a coincidence that the drop in our club’s member-
ship started just after the new country club on the south side of the city opened.”
The clubhouse manager wasn’t trying to be critical, but the comment still bothered
Lee for several reasons. First, his club had been the premier club in the city for sev-
eral decades. The membership roster was a virtual who’s who of the city’s leaders:
the top executives, doctors, and business owners all belonged to his club. Second,
the south side of the city was just beginning to attract some development. The bet-
ter neighborhoods and established residential areas were all located on the north
side. Third, the conservative nature of the club’s board had ensured that little was
changed from year to year and the current members seemed to like that.
The most disturbing aspect of the declining membership was that the food
and beverage revenues had been falling at a faster rate than the member dues
revenues. It seemed that the older and more loyal members were not spending as
much time in the club’s dining room or casual grill room. Snack bar revenues were
down almost 50 percent from just ten years ago. As Fred considered the revenue
problems, he thought back to when he had first joined the club as an assistant
manager nearly fifteen years earlier. The pool area and tennis courts were always
crowded, especially in the summer months when school was out. The club had
been the site of all of the most important wedding receptions back then, but lately
the wedding business had been down significantly.
The club’s facilities were in great repair, and the reserves for replacements
had been one of the strengths of the club since Fred had joined the management
team. The city was growing, and local businesses were attracting more and more
young professionals with young families. Fred was concerned that if the club con-
tinued on its current course, there would be operating deficits before the end of
the decade.
266 Chapter 6
1. Why do you think the club on the south side of the city has affected club mem-
bership in Fred’s club? What can Fred do about it?
2. Develop an outline for a marketing research project for Fred’s club that would
provide him with information about the underlying demographic trends
and other buyer issues that are affecting the marketplace in which his club is
located.
3. List some of the important marketing issues that Fred should consider in
developing a marketing plan to increase current member usage of the food
and beverage facilities. Also list those marketing issues that Fred should con-
sider in attracting new members to the club.
Club Membership Marketing: An 1. Describe common factors involved
Introduction in declining club membership,
Factors in Declining Club Membership explain how a club’s location affects
A Club’s Location and Its Effect on membership size, and list reasons
Membership Size often cited why marketing is not
Reasons Cited Why Marketing Is Not necessary in clubs. (pp. 269–275)
Necessary in Private Clubs 2. Identify and discuss the 4 P’s of
The 4 P’s of Marketing marketing. (pp. 275–277)
Product
Price 3. Describe steps in developing a
Place membership marketing plan,
Promotion summarize issues clubs must consider
The Membership Marketing Plan in order to develop an appropriate
Steps in Developing a Membership plan, and describe strategies clubs use
Marketing Plan to attract new club members.
Appropriate Membership Marketing (pp. 277–290)
Plans 4. Summarize the major duties and
Attracting New Club Members responsibilities of a club membership
Examples of New Initiatives director, and describe how clubs are
Other Recruiting Strategies using the Internet and databases in
Membership Directors their membership marketing efforts.
Using Technology for Membership (pp. 290–292)
Marketing
The Internet
Databases
Conclusion
7
Membership Marketing
This chapter was written and contributed by Raymond R. Ferreira,
Ph.D., Associate Professor, Georgia State University, Atlanta, Georgia.
P eople typically join a private club so they can meet, socialize, and develop
friendships and associations with individuals of similar backgrounds, interests,
and pursuits. There is often a selection process involved in becoming a member
of a private club, especially in those clubs that have a waiting list for membership.
However, many private clubs today find themselves in a new predicament: they
must actively seek additional members. This has caused many private clubs to
implement a membership marketing plan, something practically unheard of in the
prestigious halls of private clubs prior to 1980.
In this chapter, we will take a look at factors in declining club membership
and other important issues that influence club membership marketing, including
a club’s location and reasons frequently cited why marketing is not necessary for
private clubs. We will identify the four P’s of marketing and go through the steps
in developing a membership marketing plan. We’ll conclude the chapter by look-
ing at how clubs go about attracting new members, including some relatively new
strategies: employing membership directors, and using the Internet and databases
to help find and attract new members.
Club Membership Marketing: An Introduction

There are many factors that affect club membership marketing, from declining
club membership to the attitudes of current club members to a club’s location.
Factors in Declining Club Membership

The number of members a private club has is related somewhat to its type. Golf
clubs usually have the least number of members, because members typically want
easy access to the golf course and an adult-only emphasis for the club. City/athletic
clubs typically have the largest number of members. The number of members at
country clubs is usually somewhere in between golf clubs and city/athletic clubs
(see Exhibit 1).
Without a full membership, a club may face some of the following problems:
•• Lower revenue, which forces the club to decrease operating expenses (i.e.,
fewer services and amenities offered to members)
•• Fewer initiation fees paid, which results in fewer renovations and capital proj-
ects for the club
269
270 Chapter 7
Exhibit 1 Average Number of Members per Type of Club

Number of Members Number of Members Number of Members Number of Members
Type of Club
2002 2004 2008 2010
Golf 509 513 463 411
Country 690 697 698 634
City & City-Athletic 1,330 1,637 1,116 1,138
Average 757 847 774 634
•• Poor employee morale, because of cutbacks in staff and lower wages

•• Deferred maintenance on club facilities
•• Costlier renovation projects (on a per-member basis), because there are fewer
members to share the cost
•• Member dissatisfaction, because of the decline in the club’s services, ameni-
ties, quality of service, and appearance
•• Higher member attrition rate, due to member dissatisfaction
As you can see, a decline in membership starts a vicious cycle of other problems
(fewer services, fewer amenities, deferred maintenance, etc.) that will lead to
member dissatisfaction and the loss of more members, which further aggravates
the problem.
No single factor accounts for the decline in membership that some private
clubs have experienced since the late 1980s (see Exhibit 2); it appears that a combi-
nation of factors caused the decline:1
•• Economic downturns
•• Overbuilding
•• More competitors
•• Aging membership
•• Different preferences of Baby Boomers and Generation X-ers
Economic Downturns. The recessions and economic problems of the mid-1980s
through the early 1990s in North America caused many businesses to cut expenses.
When revenues are down, businesses typically first cut entertainment expenses,
which include club memberships and client dining/entertainment expenses. More-
over, many businesses implement downsizing strategies during difficult economic
periods. These strategies typically include decreasing the number of management
positions, which results in fewer individuals seeking club memberships. More-
over, some companies close their doors during these periods, resulting in further
decreases in the number of managers and other professionals who are normally
club members. Clubs experienced a large drop in membership because of the eco-
nomic downturn from 1990 to 1994. From 1995 to 2000, clubs experienced a mod-
est increase in their membership size but failed to match their high membership
levels of the late 1980s.
Membership Marketing 271
Exhibit 2 Competitive Factors Affecting Membership Levels
Reasons for Membership Decline 1970's–1980's
1990's–2000's
Economy Overbuilding More Competitors Aging Different Preferences
Many clubs experienced another membership decline from 2000 to 2004, pri-
marily because of the economic decline following the 9/11 terrorist attacks.2 Fol-
lowing 2004, clubs experienced another period of increased membership until
near the end of 2007.3 Starting in 2008, clubs experienced the largest decline in
membership because of the severe economic recession.4
While economic downturns affect all clubs, the downtown city club segment
of the private club industry typically suffers the greatest decline in membership
during economic downturns. More competitors offering upscale dining and meet-
ing facilities in downtown areas, and business migration from downtown areas to
city suburbs also puts pressure on city clubs.5
Overbuilding. Both the membership levels at individual clubs and the overall
industry demand for private club memberships (total number of members at all
clubs) have decreased over the last decade, and especially since the economic
downturn of 2008. In addition, the supply, or number of total private clubs, has
increased significantly since the late 1970s. Real estate developers built numerous
clubs in the 1970s, ’80s, and ’90s in order to make their real estate developments
more attractive, and residential developers built country/golf clubs to increase the
price and appeal of the residential properties they sold. In addition, office building
developers built city or athletic clubs in their buildings to make leasing more entic-
ing to their business tenants. The dramatic increase in the number of private clubs
and the decrease in the number of new members resulted in most clubs having
fewer members or smaller waiting lists (for those clubs fortunate to have a waiting
list for membership).
More Competitors. Clubs today face many competitors besides other private
clubs. For years, clubs were the only place individuals could enjoy fine dining,
quality service, outstanding facilities, and well-manicured golf courses. Today,
clubs face many competitors who provide some of these same features and who
compete for members’ and prospective members’ time and money. For example:
272 Chapter 7
•• More upscale, high-quality restaurants are conveniently located near mem-

bers’ residences or places of business.
•• Many hotels, convention facilities, and restaurants offer banquet/meeting
facilities comparable to those offered at private clubs.
•• Semi-private clubs with the financial backing of real estate developers cater to
both members and the general public with private club quality.
•• High-end public, daily-fee golf courses provide outstanding, well-maintained
courses, and many offer services once only available at private clubs (for
example, club cleaning services and bag-drop cart service from the parking
lot).
These businesses are able to market themselves much more aggressively than pri-
vate clubs and have taken a good share of business away from clubs.
Aging Membership. The average age of a member at a country club has increased
from 55 in 1993 to 58 in 2011.6 Having a membership that is perceived as “old”
is a problem, because most people do not want to join a “gray” or “blue-haired”
club—a club whose membership is composed primarily of retired individuals
or those near retirement. Younger people want a club that meets their needs for
social, recreational, family, and business purposes.
Another concern for clubs with an aging membership is that many members
in their seventies or eighties either use the club less often or terminate their mem-
berships due to retirement, limited income, or poor health.
Different Preferences of Baby Boomers and Generation X-ers. Candidates for
membership and new members in their late twenties to early fifties desire differ-
ent services from those preferred by older, long-term club members. These newer
members and prospective candidates for membership prefer more casual dining
and faster service. Time shortages and the resurgence of a focus on family life
make family club activities critical for many clubs; members want to spend their
limited free time with family members. Because many membership candidates
come from households with two adult wage earners, gender equity in the club
is an important issue; clubs must accommodate and appeal to both adults in the
family, not just the household’s adult male. Newer, younger members typically are
also more health-conscious and seek clubs that provide healthy menu alternatives
as well as fitness/health activities. Younger members also prefer a more casual
dress code and club decor. Moreover, they want to be able to use technology in the
club (i.e., laptops and smart phones for Internet and text messaging). These dif-
ferences cause friction in clubs because many of the items that younger members
want are things that older, long-term members resist. Change is difficult for many
older members.
A Club’s Location and Its Effect on Membership Size

An old adage in marketing says that the three most important factors for success in
business are location, location, and location. This adage applies to private clubs as
well. Obviously, the club’s prestige, membership composition, services, amenities,
Exhibit 3 Demographic Factors Affecting a Club’s Membership Size
Downtown Location Suburban Location
Number of Businesses Number of Households with $250K Income Level

Number of Executives Number of Residential Properties Valued Over $500K
Number of Employees Number of Owner-Occupied Properties
Number of Competitors Number of Competitors
and facilities also are important in attracting new members and are usually critical
factors for premier clubs. But for most clubs, their location and easy accessibility
for members and potential members are critical factors as well. We live in a time-
starved culture, and most club members today do not want to travel far to use
their club regularly. Therefore, clubs located close to the homes or businesses of
their target markets will typically be able to convert membership candidates into
members more easily than other clubs.
The club’s location and the area’s demographics have a big impact on the
number of members a club realistically can attract. The critical demographic
makeup for the area surrounding the club is different for a downtown city or
city/athletic club versus a country club in the suburbs. The market size for a
downtown club is affected by the following demographics: number of businesses,
number of executives, total number of employees, and number of competitors
(see Exhibit 3). The primary demographic area that affects city clubs in major
metropolitan areas is within just a two-mile radius of the club. In smaller metro-
politan areas, that radius expands to five miles. For clubs in the suburbs of large
metropolitan areas, the demographics affecting the membership size the most are
the number of households with income levels over $250,000, the number of resi-
dential properties valued at more than $500,000, the number of owner-occupied
properties, and the number of competitors within a ten-mile radius of the club.
These household income level and property value numbers would be smaller for
smaller metropolitan areas.
Reasons Cited Why Marketing Is Not Necessary in Private Clubs

While some private clubs may experience all of the competitive factors discussed
in the previous sections, many may experience only a few of them. These factors
do not typically have an immediate, dramatic impact on club membership levels;
rather, there is a slow but steady decline as membership levels fall over a number
of years. Because of this slow deterioration, many club boards are reluctant to
react to declining club membership. Many feel that the club will “snap out of its
slump” next year. Before these clubs know it, that slump has extended over many
years, and the membership number is down a significant amount. At that point,
some boards finally perceive declining membership as a major problem, panic
somewhat, and start many ill-conceived membership marketing drives. This is a
familiar scenario at many clubs and one of the most common reasons why clubs
don’t develop membership marketing plans as soon as they should. Clubs should
274 Chapter 7
Exhibit 4 Barriers to Membership Marketing in Clubs
1. The club has an exclusive image to maintain

2. Marketing sends a “club is in trouble” message
3. The club’s reputation will diminish
4. The club’s members will worry about overcrowding
5. Members fear that they won’t get individual attention or good
service with more members
6. A membership marketing plan will upset long-term members,
because the club’s tradition has been to never market
7. Marketing is a new area for private clubs, so even experi-
enced club managers are unfamiliar with marketing
not wait until the membership level reaches a critically low point to take action. In
fact, if prospective members are not standing in line to join the club, that’s a sign
that the club needs to start marketing itself better.
Although many private clubs realize that they need a membership marketing
plan in order to increase their membership, planning efforts are sometimes met
with a number of objections from the club’s board and other club members (see
Exhibit 4). Some of the typical objections or barriers involved in implementing a
membership marketing plan include the following:
•• The club should be exclusive, and not everyone should have access to member-
ship; it’s a private club. This is very true, and a club can and should maintain
its standards for membership (member sponsorship, applicant review by a
membership committee, credit checks, etc.), no matter what type of member-
ship marketing plan it implements. Implementing certain types of membership
marketing plans will not jeopardize a club’s selection process, however.
•• If the club implements a membership marketing plan, it will send a message to
its members that the club is in trouble. Most members talk among themselves
and know the club’s situation. They typically are aware that membership is
down and that there are membership openings available. Moreover, many
members understand that not having a full membership causes an increase
in their dues structure, which tends to make them more open to efforts to
increase the membership. Trying to hide the problem from members doesn’t
work and only creates a temporary, false sense of security for the club’s board
and management.
•• A membership marketing plan will damage the club’s image and status. While
some inappropriate membership drives have hurt some clubs’ reputations,
there are many membership marketing plans that have been successfully
implemented in private clubs. These plans have increased membership lev-
els and allowed some clubs to attain and maintain a full waiting list. The
increased number of members allows clubs to offer all of their members the
services and amenities synonymous with exclusive and prestigious clubs.
•• Members don’t want the club’s membership to increase because of overcrowd-
ing; members would prefer to play a round of golf without making a tee-time,
or have dinner at the club without having to make a reservation. While almost
every club member would love to have the luxury of never having to wait to
enjoy any club service, clubs must have a certain amount of revenue in order
to sustain the level of services that members demand and maintain the club’s
facilities at an acceptable level. This revenue must either come from existing
members or new members. Although most members say they don’t want the
number of club members to increase, when given the choice between accept-
ing new members or accepting an increase in their dues or a new club assess-
ment, many members decide that bringing in new members is not such a bad
option after all.
•• If the number of members in the club increases, members won’t get the individual
attention and service to which they are accustomed. Actually, the opposite is
usually true. As the number of members decline, club revenues decrease, and
the club starts to cut expenses in response. Service falls, because the club lays
off staff members; other employees—usually the top performers—leave, look-
ing for more stable employment. The more members, the more revenue; the
more revenue, the more staff and the better the service for members.
•• Boards are reluctant to market clubs because they don’t want to upset long-
term members who cling to tradition and consider marketing inappropriate for a
club. Club membership marketing has only evolved in the last decade or so;
clubs have not had to think about this issue until recently. While marketing
may have been unnecessary and inappropriate for clubs decades ago, it has
become a necessity for many clubs today. It is the board’s responsibility to
look at the club’s future and its best interests, rather than the past.
•• Club managers are unfamiliar with marketing strategies and what works for pri-
vate clubs. This is a barrier for many clubs, because club managers typically
have concentrated on the operational aspects of managing a club: producing
the finest food, training employees for excellent service, controlling expenses,
and so forth. There was no need to increase membership levels through mar-
keting, because most clubs had a waiting list. Even experienced club manag-
ers are not likely to have as much experience in membership marketing as
they do in other operational areas of a club.7 But this is a barrier that club
managers must overcome.
The 4 P’s of Marketing

Marketing for clubs is the process of determining the needs and desires of cur-
rent and future members. This includes designing a specific product (services,
programs, and amenities) to meet the needs and desires of members and poten-
tial members. Also, it is important that current members stay informed about the
products of the club and how they can easily access them. “Product” is just the
first of what are commonly referred to as the “4 P’s” of marketing: product, price,
place, and promotion.
276 Chapter 7
Product
Determining your club’s product level constitutes the first step in membership
marketing and all other marketing efforts at the club. Should the club be marketed
as the premier club in the area, an average-level club, or a lower-tier club that
offers a tremendous price/value relationship? The club’s location, the competition,
the economy, and so on can affect the club’s position. Not all clubs can be premier
clubs, even if the members want that for their club. If the club is marketed as a pre-
mier club, does it offer the variety and level of services that would position it as a
premier club? An average-level club needs to offer the variety and level of services
that its current and potential members want and are willing to pay for.
Price
The next “P” to consider is price. The price that a club charges for its initiation fees,
dues, dining, etc. should be set in accordance with the position that the club has or
desires. Coming up with the correct prices also involves determining what current
and future members are willing to pay. Other factors to consider include what the
competition is charging and the club’s financial goals. Premier clubs should charge
accordingly for their services; their perception as a premier club is based not only
on the products and services they offer, but also on what members must pay for
those products and services. Average-quality clubs, on the other hand, must keep
their prices in the mid-range.
Some clubs incorporate different pricing strategies to achieve different objec-
tives. For example, a club may have a pricing structure with high initiation fees
and moderate dues, making the club difficult to join but easy to afford once you
are a member. Some clubs employ the opposite strategy: they charge a moderate
or low initiation fee to attract a large number of members, then charge high dues
to make possible their high level of service.
A club’s pricing strategy should be consistent with its quality level and per-
ceived image. If prices are not in line with the image the club is trying to foster, the
club sends a mixed message to prospective candidates for membership and also
will create dissatisfaction among current members.
Place
The third “P” is “place.” The place or location of the club can act as an asset or
a liability. If the club is located in an affluent area, or one surrounded by a large
number of businesses, then the location is conducive to attracting individuals who
regularly live or work in close proximity to the club. Clubs blessed with a good
location can charge higher prices, have a higher level of steady member usage,
and usually can look forward to a stable future. A club whose location is not ideal
will have to come up with strategies to overcome, or minimize, this weakness.
Developing a specialization (for example, a premier tennis program) is one strat-
egy that might influence people to join and frequent the club despite its inconve-
nient location.
The demographic makeup of the population living and working within a
one- to ten-mile radius of a non-premier club will influence not only the volume
of business at the club, but also the amount the club can charge and how many
members the club can have at a given price level.
Promotion
After analyzing a club’s product, price, and place, it is important to then consider
the type and amount of promotion the club should use. Promotion, like the other
“P’s,” is directly related to how the club positions itself and is also influenced by
the level of activity in different parts of the club itself. For instance, if a club already
has a great deal of activity in the dining room area, then the club will be less likely
to promote the dining room to its members and will instead promote club areas
that are underutilized.
Common methods of promoting to a club’s current membership include the
club’s newsletter, the monthly billing statement (either inserts included with the
statement or promotional messages printed on the statements themselves), direct
mailings, activity boards or signs in the club, table tent cards in the club’s dining
areas, the club’s website, e-mails, and direct communication from the staff and/or
club committee members.
In addition to promotion among current members, clubs should also consider
promotion as a way to attract new members.
The Membership Marketing Plan

In the last decade, many articles on marketing plans for attracting new members
have been published in private club magazines and journals such as Club Direc-
tor, Club Management, Club Manager Quarterly, Private Club Advisor, The Club
Marketing Report, and so on. Although all clubs have some common features and
similarities, each club is unique. Most clubs have a specific niche in the market-
place that can vary a great deal from club to club. What attracts members to join
and retain their membership will be different at each club. It is crucial that clubs
do not implement a membership marketing plan just because it worked at another
club. A successful marketing plan for one club may fail miserably at another. (See
Appendix A at the end of the chapter for some sample marketing strategies for
private clubs.)
Steps in Developing a Membership Marketing Plan

Before implementing a membership marketing plan, it is imperative to cover most,
if not all, of the following planning steps, to ensure that the club implements the
best and most appropriate plan:
•• Conduct an internal analysis. A club needs to acquire the right information
and data before the club’s board and managers can develop the best plan.
How does the club perform, judged by the number of members, amount of
sales, the club’s services and facilities, and the member benefits? What kind
of internal strengths and weaknesses does the club have? What do members
want, and what new services would they like? The club should develop a mis-
sion statement for the club if one is not already in place.
278 Chapter 7
•• Conduct an external analysis. What kinds of external threats and opportunities

exist? Include in the list of club competitors not only other private clubs, but
also other businesses that offer services similar to what the club offers (nearby
upscale restaurants, for example). How does the club differentiate itself from
its competitors? How is the demographic profile of the area around the club
changing? What impact will those changes have on the club? What other envi-
ronmental factors do you see affecting the club?
•• Position the club. What vision do the club’s leaders have for the club? Define
the club’s unique position and how it differentiates itself from the competition.
•• Develop an action plan. Define the club’s appropriate level of marketing
aggressiveness. Does the board and the membership support the plan? Will
this plan maintain the club’s image and its exclusive nature? Is the plan real-
istic and achievable?
•• Evaluate the plan. Are the members happy and pleased with the action plan
and its outcomes? Did the club experience an increase in membership, and
is this increase a result of the plan and not other factors? Reevaluate the plan
and make changes for the next period.
Appropriate Membership Marketing Plans

As mentioned previously, for some club members the very words “membership
marketing” imply that the club will lose its exclusive image and that sponsorship
requirements will be dropped. This is usually not true with most successful mem-
bership marketing plans implemented at private clubs.
Most membership marketing plans are created to deal with one basic issue:
current members are not proposing membership candidates in sufficient numbers.
The question is, Why? The harried lifestyle of many of today’s club members is
a major reason. Many members are so busy that often they forget to nominate
qualified individuals, or feel they don’t have the time to complete all of the steps
involved in nominating an individual for membership. Therefore, many of the
successful membership marketing strategies implemented by clubs center on
actions that remind members that the club needs referrals for membership. All of
the other requirements for membership—sponsorship, seconder, letters of recom-
mendation, application, credit report, posting candidates’ names for membership,
approval by the membership committee or club board, etc.—are still intact at most
clubs that have implemented membership marketing plans.
Clubs starting membership marketing plans usually start small. The goal of
many of these initial plans is to simply collect more membership candidate refer-
rals from existing members. If, after six to twelve months of following this strategy,
a club has not achieved the number of new members it wants, then some clubs
implement strategies that are a little more aggressive. A slightly more aggressive
approach may involve the club management team identifying good prospects for
membership, rather than waiting for member referrals. Such a plan must address
how to match identified prospects with members who would be willing to spon-
sor the individuals. The level of aggressiveness in membership marketing plans
usually increases only when the subtler marketing strategies do not bring in the
desired number of members a club wants or needs.
The most aggressive membership marketing plans, and usually the last course
of action for many private clubs, include strategies that involve mailing brochures
to individuals identified as potential candidates by marketing research companies
or association lists. Often, candidate lists are created using demographic charac-
teristics (for example, income level, profession, etc.) that are associated with the
club’s current membership, or come from organizations that the club thinks have a
number of individuals who might be interested in membership. The less screening
of a candidate by a club before sending him or her information about membership,
the greater the chance a club has of damaging its exclusive image.
Member-owned and tax-exempt clubs should not advertise via any of the com-
mon mass media outlets (television, radio, newspapers, etc.). If clubs do advertise
through these channels and inform the general public about membership opportu-
nities, they may jeopardize both their private status and their tax-exempt status—
Internal Revenue Service (IRS) non-profit designation for private clubs 501(c)(7).
Clubs that have a lot of contact with the general public (golf tournaments open to
non-club members, large private functions attended mostly by guests, advertising
to the public, etc.) risk being defined as “public accommodations facilities” by the
IRS or a court of law. A membership in a 501(c)(7) club must also be in the name of
or owned by an individual and not a corporation. Therefore, corporate member-
ships are not allowed in 501(c)(7) clubs, but are allowed in “for-profit” clubs.
Attracting New Club Members

Some clubs have policies or procedures that are intended to safeguard the mem-
bership admission process, but they really act more as barriers to getting nomina-
tions. The following are some new policies, practices, or procedures that are being
implemented at many private clubs to encourage members to nominate more can-
didates for membership and otherwise attract new members.
Examples of New Initiatives

Examples of policy changes and other strategies undertaken at some clubs to
attract new members include the following:
•• New sponsorship policies
•• Installment payments for initiation fees
•• Decreased initiation fees and/or dues
•• Equity or refundable initiation fees
•• Non-discriminatory policies
•• More membership categories
•• Significant-other policies
•• Family-friendly services
•• New member marketing materials
280 Chapter 7
New Sponsorship Policies. In the past, many private clubs had a policy that did
not allow new members to sponsor a candidate during their first or second year
of membership. Clubs created this policy because it was felt that new members
would not be aware of the club’s culture and therefore would not know who
would be an acceptable candidate for membership. But more and more clubs are
changing this policy and are allowing new members to sponsor candidates right
away. These clubs usually find that their candidate referrals go up significantly,
because new members are excited about the club, are eager to invite non-member
friends to the club to show it off, and typically know a number of good potential
candidates for membership.
Some clubs only allow members in the “full-privilege” membership category
to sponsor or propose candidates for membership. This policy makes it difficult for
those in other membership categories to recommend candidates. Many clubs with-
out membership waiting lists have changed this policy and are allowing members
in all membership categories to sponsor or propose candidates for membership.
Installment Payments for Initiation Fees. In the last decade, many clubs have
given new members a choice on how to pay their initiation fees. Traditionally, new
members paid the initiation fee in one lump sum at the time of acceptance; now,
some clubs are giving new members the option of paying the fee over a period of
time (usually three years) with a very small finance fee added. Many of today’s
Baby Boomers prefer the latter option, because they don’t have to liquidate invest-
ments. In some instances, clubs have arranged financing through a third-party
financial institution (usually a bank). If this is the case, the club receives the full
payment of the initiation fee at the time of closing when the loan is approved; the
new member pays the bank over time, rather than the club.
Decreased Initiation Fees and/or Dues. Many clubs are too quick to lower initia-
tion fees when membership levels decline. Having said that, as with any product,
when the fee decreases, there will be additional buyers who were price-sensitive
at the higher price level, and clubs that have used this strategy have been success-
ful in attracting new members. However, clubs should only decrease their prices if
(1) their prices are not in line with their primary competitors’ prices, considering
what their position is within that marketplace, and (2) there has been consistent
feedback from membership candidates who did not join that the initiation fee and/
or the club dues are too high. When clubs reduce their fees or dues, they increase
the risk that the individuals who join the club because of these lower prices may
not have the disposable income necessary to support the club on a regular basis
(i.e., food and beverage purchases, guest fees, lessons, etc.).
If a price reduction to attract new members is justified, usually the reduction
should be in the club’s initiation fee and not in the dues structure. A club’s target
market usually has a high salary and cash flow but less cash assets and reserves.
Therefore, the obstacle for many nominees is not in the monthly or quarterly dues,
but in the large initiation fee.
Temporary price reductions. With temporary price reduction programs, ini-
tiation fees are reduced for a set period of time only. Typically, a club will reduce the
fees during a special three- or six-month membership campaign. This limited-time
lower price period is designed to create a sense of urgency in potential buyers. In
this case, there are two buyers: the first “buyer” is the current member who will
act as the sponsor and/or proposer; the price reduction program creates a sense of
urgency for the member to get the nomination form, get the candidate to complete
the form, and follow up on the candidate. The second buyer is the actual candidate;
hopefully, the program will get the candidate to move the purchase decision along
faster in order to take advantage of the temporary price reduction.
While these types of programs have worked well and many clubs have used
them, there are downsides. Often the club receives a large number of nominations
during the temporary price reduction program, but after the program ends, they
receive very few. This creates a perception in some clubs that to get nominations,
you have to periodically reduce the initiation fees. When clubs implement tempo-
rary price reductions once or twice a year, they can create “cherry pickers” among
the club’s membership—that is, create members who will only sponsor an indi-
vidual for membership during the temporary price reduction specials.
In practical terms, when a club announces that in the near future there will
be a price increase in the initiation fee, from that point onward a one-time tempo-
rary discount program exists. This future increase should help create a sense of
urgency in both members and membership candidates to act quickly.
Most successful club initiation fee discount programs have had a specific
theme or eligibility requirement for the candidate to receive the discount. Clubs
following this strategy may do one of the following:
•• Discount the initiation fee for a limited time (for example, “fees lowered by 50
percent for the next fifty days only”).
•• Offer a discount to candidates that are employed at the same business of a
current member.
•• Offer initiation fee discounts for selected categories of people, such as attor-
neys, physicians, female executives, government employees, etc.
Equity or Refundable Initiation Fees. To make the club attractive to candidates,
some older private clubs have adopted a policy that many of the newer private
clubs and developer clubs implemented in the 1990s: refunding a portion of the
initiation fee should the member resign from the club. This refundable attribute
of an equity initiation fee is very attractive to many membership candidates, and
often may be the factor that convinces them to risk investing the large initiation
fee in a club. While it definitely attracts candidates for membership, it burdens the
club with long-term debt and the inability to use all of the initiation fees collected
for capital projects.
Non-Discriminatory Policies. The largest growing market segments for club
membership are female professionals and members of minority groups. There-
fore, many clubs now try to make themselves as attractive as possible to these
groups by abolishing discriminatory policies in membership guidelines and in
club usage policies. Female club members having equal access to the golf course
is an especially sensitive issue. Because of men-only grill areas and dissatisfac-
tion among some female members over their inability to access the golf course
on weekend mornings, lawsuits have been filed in the public court system
282 Chapter 7
against clubs. These lawsuits have resulted in adopted or proposed legislation

in some states that would mandate clubs to provide equal gender access to all
facilities. The picture for the future is clear—if clubs don’t voluntarily provide
equal access, especially on the golf course, state courts will intervene and force
them to provide it.
More Membership Categories. Many clubs offer a variety of membership catego-
ries in order to make themselves attractive to numerous prospective candidates (as
well as lower attrition rates among current members). Some of the club member-
ship categories that are helpful in attracting or retaining members include non-
golfing, legacy or junior, senior, and temporary or trial memberships.
Non-golfing memberships. More non-golfing membership categories are
being offered at country clubs today. Country clubs have found that there are mar-
ket segments that want all of the privileges of a country club except for golf. One
of those market segments, for example, consists of people in their twenties and
thirties who are starting careers and families and don’t have the time to play golf
on a regular basis, but will dine, play tennis, and use the pool and fitness facili-
ties at the club with their families. Another segment interested in a non-golfing
membership category is made up of price-conscious individuals who can afford
the lower-priced non-golfing membership but not the expensive initiation fees and
higher dues structure of a golf membership.
Legacy and junior memberships. Many clubs offer a legacy membership cat-
egory for the adult children of current club members. This category encourages
multi-generational families at the club and is only available to adult children of
members. Typically, the dues are significantly reduced and the payment of ini-
tiation fees made attractive for this price-sensitive group (reduced fees, various
payment options, payment delayed until the individual becomes a full-privilege
member, etc.). Many clubs have increased the eligibility age for the adult children
of members in this category. Prior to the 1990s, it was not uncommon for the age
eligibility for this category to be under the age of thirty. In the mid-nineties, many
clubs increased the age eligibility to thirty-five, and in the mid-2000s, that age has
increased to forty at some clubs. The reason for this age increase is that many of
today’s thirty-year-olds do not have the disposable income necessary to afford the
full-privilege membership at a private club.
Some clubs have a junior membership category, which is like the legacy mem-
bership category in that it offers similar discounting options, but it is open to
young candidates for membership who are not children of existing members.
Senior memberships. Many clubs offer a senior membership category for
long-term older members. In the past, this membership category, which typically
has lower fees, was a method of trying to retain long-term members who were
using the club less often because of age- and health-related problems; without
this membership option, these members were resigning because they weren’t
using the club as much and couldn’t justify continuing to pay the high regular
fees. For many clubs, it made sense to retain these members at a lower dues struc-
ture because they did not use the club as much as younger members and did not
cause a compaction problem on the golf course or in the club. Moreover, moving
these individuals to the senior membership category opened up spaces for new
members in the regular category; therefore, clubs received full dues from the new
members and partial dues from the senior members.
Today, though, members over the age of sixty-five are much more active
and healthier than their predecessors, and many use the golf course well into
their eighties. This change has caused a compaction problem for many country
clubs and golf clubs, especially on weekend mornings and other peak golf course
times. Therefore, many clubs have instituted changes to their senior member-
ship category. Some clubs have put a cap on the number of senior members at
the club; certain clubs have reduced the senior member discount; others have
increased the age and/or number of years as a regular member required for a
member to switch to the senior member category; and some clubs have restricted
privileges (for example, restricting usage of the golf course by senior members
to nonpeak periods).
More and more country and golf clubs will have to take another look at the
senior membership issue, because many full-paying members view members who
pay less than they do in a critical manner. Moreover, as more Baby Boomers enter
their retirement years, demographic projections for many clubs indicate a large
portion of their membership will be eligible for the discounted senior category in
the next decade.
Temporary or trial memberships. In the 1990s, clubs developed new mem-
bership categories in order to meet the needs of an increasingly mobile society.
Because so many managers and other professionals transfer frequently as they
move up the career ladder, many are leery of paying a large initiation fee to join a
club, because they are afraid they might be transferred soon after and would not
only lose their club membership but forfeit a substantial sum of money in the pro-
cess. This problem has led many clubs to implement a temporary or trial member-
ship category. With this special membership, the member pays a very low initia-
tion fee but regular dues for a set period of time (typically one year). At the end of
this time period, temporary or trial members must either resign their temporary/
trial membership or switch to one of the permanent membership categories they
are eligible for and pay the full initiation fee (that is, pay the difference between
the current fee and the low initiation fee that they initially paid).
Some clubs have instituted an initiation fee refund policy that allows mem-
bers to receive back a prorated amount of their initiation fee if they relocate out
of the area. The prorated refund periods typically range from three to five years.
For a three-year prorated refund policy, members would receive almost all of the
initiation fee back if they relocated and resigned within the first year of their mem-
bership anniversary, a two-thirds refund if they resigned between the first and
second year anniversary, a one-third refund between the second and third year
anniversary, and nothing after the third year anniversary.
Significant-Other Policies. Typically, 85 to 90 percent of the memberships at most
private clubs consists of traditional, married households. Because of this over-
whelming majority and the traditions affiliated with private clubs, most clubs
extend member privileges only to members, the spouses of members, and the
members’ dependent children. However, with the rising divorce rate, the increas-
ing number of single-parent households, and the growing number of non-married
284 Chapter 7
households in our society, more and more clubs are implementing “significant-
other” policies. These policies are very diverse among the clubs that have imple-
mented them. Some common “significant-other” policies include the following:
•• The “significant other” receives the same club privileges as a spouse; the
member must designate his or her “significant other” in writing each year
•• The “significant other” receives member privileges with no equity interest,
and only one person is allowed the privilege in a calendar year
•• The “significant other” receives guest privileges, but there is no limit on visits
and a lower guest fee is charged
Based on recent legislation, clubs considering a significant-other policy
should be willing to extend privileges to both opposite gender households and
same gender households.
Family-Friendly Services. The resurgence in Generation X-ers wanting to have
children has had a large impact on private clubs. If clubs want to make themselves
attractive to Generation X-ers and their children, they must become more family-
oriented. This means having facilities, programs, and activities geared toward
children (for example, baby-sitting services, an activities director for children,
a children/teen room in the club, camps for children, and so on). Many country
clubs are expanding or improving their programs in tennis and swimming, as well
as other services that appeal to the entire family. Moreover, many clubs, especially
country clubs, are adding fitness centers based on the lifestyles and preferences
of Baby Boomers and Generation X-ers. In 1996, 28 percent of country clubs had a
fitness center; by 2008, that number had increased to 55 percent, an increase of 96
percent in just twelve years.8
New Member Marketing Materials. Many clubs have developed a marketing
brochure for candidates for membership. Such a brochure should feature many
pictures of members using the different club areas; this allows candidates to “be
in the picture”—that is, visualize how they and their family would use the club.
The club’s newsletter should list new members and their sponsors on a regular
basis. This helps remind club members that they have a responsibility to sponsor
candidates for club membership.
Other Recruiting Strategies

In the following sections we will review other membership recruitment strategies
used at clubs: member referrals, new-member orientations, member-guest events,
membership committees, and prospect lists.
Member Referrals. Some clubs, instead of passively waiting for members to refer
friends and acquaintances, have proactively encouraged members to refer indi-
viduals for membership. Typically, the first strategy implemented is to simply ask
current members to propose individuals for membership and to make members
aware that there are openings for new members. Often, the club president prints
an announcement in the club’s newsletter or mentions in his or her regular column
that there are openings for new members. These initial announcements should not
imply that the club is in desperate need of more members, but simply explain that
there are openings and outline the club’s membership nomination procedures.
If these initial efforts do not generate the number of referrals that the club
hoped for, the club might want to increase its aggressiveness somewhat. Some
clubs have followed their initial statements with ones that explained the impor-
tance of keeping the club’s membership full, in terms of the financial implications
and the prestige factor of having a full membership. Members might be reminded
that it is their responsibility to help keep the membership full by referring indi-
viduals they have screened and would recommend as good members.
Clubs often use important dates or significant events to remind members to
recommend individuals for membership. One country club used its fiftieth anni-
versary as a membership marketing tool; it asked members for referrals so the club
could increase its number of regular members by fifty in its fiftieth anniversary
year. A city club in 1999 promoted a membership program whose goal was to have
2,000 club members by the year 2000.
Some clubs have also successfully implemented an annual nomination card
program. A thank-you letter is sent to members each year on their member anni-
versary date. Enclosed with the letter is a membership nomination card, which
reminds members that they can and should nominate a person for membership
each year.
In order to entice more new-member nominations from current members,
some clubs use incentives. Common incentives include free dues for a specified
period of time, free food and beverage service at selected events (for example, free
dinner for eight at the club’s Easter or Mother’s Day buffet), or a credit of some
type (for instance, a food and beverage credit of $500 for each membership spon-
sored). The actual cost to the club for food and beverage incentives is less than
the dollar amount awarded, since the club’s food and labor costs are less than the
awarded retail amount. Any financial incentive over $600 given to a member is
taxable and requires the issuance of a 1099 IRS form.
New-Member Orientations. Many clubs conduct new-member orientation ses-
sions to review the policies and procedures of the club with new members and
their families. In addition to allowing the club to welcome the new members and
answer any questions they may have, the new-member orientation also provides
an excellent opportunity to discuss the membership nomination process with
members who are excited about the club and who may be great sources of pros-
pects for membership. The club can also distribute membership nomination forms
during the orientation.
Member-Guest Events. Member-guest events have been common in private clubs
for many years. These events—wine dinners, speaker events, golf outings, and so
on—allow non-members to experience the club. If they have a great experience,
some of them may decide to pursue membership in the club.
In the past, member-guest events were designed simply to provide members
with quality events that they would be proud to share with guests. Today, the
thrust of some member-guest events has changed; they are specifically designed
to introduce the club to prospective new members, and members are encouraged
to invite only those individuals who would be good candidates for membership.
286 Chapter 7
New-Member Orientation for Private Clubs

MCM Monograph by Laurice T. “Bud” Hall, MCM
The value of orientation for new employees as a method of establishing a sense of
community and mutual responsibility is well-known and accepted as common prac-
tice. New member orientation, providing the same sense of hospitality and account-
ability, is common to many private clubs. Providing an opportunity for new members
to experience the culture of the club and to dialogue with club staff regarding facilities
and regulations has positive results for both the member (in increased knowledge of
and use of the club and a sense of affiliation) and for the club (in increased stability of
membership).
New-member orientation can provide the keys to membership stability through
the following advantages:
•• Establishing rapport and open communication early on in the member/club
relationship.
•• Assuring club members of the economic and social value of their private club
membership.
•• Providing clear communication of club policies and procedures.
A CORE MODEL FOR NEW MEMBER ORIENTATION

Certain elements of new-member orientation are foundational. For the club man-
ager about to establish such a program, attention to the basic elements of orienta-
tion is critical. For the club manager who has mastered the foundational elements,
attention to innovative and creative ways to elaborate on current practice will provide
a challenge to the manager and potentially be of greater enjoyment to the new mem-
ber.
Personnel
The first thing to establish is which staff members in the club would be best
suited to present orientation to new members. The number of people involved will
depend on the scope and the content of the orientation. The people involved may
include members of the board of directors, membership committee members, the
sponsoring member, and/or staff members such as the general manager or member-
ship director. Regardless of whether the new member is familiar with the club through
family members or friends, these first direct personal contacts he/she makes in the
new club are vitally important in continuing use and satisfaction with the club.
Scheduling
The next thing to establish is the scheduling of the orientation. The entire pro-
gram and reception may be presented whenever you are accepting even one new
member or couple into membership, or a set schedule of orientation once or twice a
month can be arranged when all new members who have made applications within
that time period are invited. The important thing to remember is that the new mem-
ber must be made to feel appreciated and welcomed. Staff or committee members
must be attentive to the members’ schedules and needs. Orientation scheduling may
vary depending on whether the orientation is required or voluntary, and whether it is

conducted before or after final approval of membership.
Invitation
The invitation to attend orientation should be very congenial and positive. It
must entice the new member to “come and sample,” whether you are offering break-
fast, lunch, dinner, hors d’oeuvres, or a just a “taste” of your club’s amenities and
traditions. Some type of food and beverage should be included in the orientation as a
gesture of hospitality.
Greeting
As new members arrive at orientation, each board, committee, or staff member
should be introduced. One half-hour following these introductions should provide
enough time to discover areas of common interest or touch on specific interests in
the club. This is a good time to introduce new members to each other and encourage
conversation.
Tour
The next step in orientation should be a tour of the facilities, which can involve
only the clubhouse or take in all the club facilities and could include the kitchen in
some clubs. There is no set procedure for this, but it is a very important part of the
orientation, helping the new member to become more comfortable with the club, and
it should not be hurried.
History
A quiet, comfortable area should be chosen for the next part of orientation, a
place where members can concentrate and absorb all the information they are about
to receive. Most new members will appreciate the opportunity to learn about the his-
tory of their new club, but they may be focusing a bit ahead of the presenter, wanting
to learn more about the club for their own personal use. A written piece of information
about the history of the club should be included for reading when the member is at
home and time allows.
Club Use
The next part of the orientation should provide the member with all of the infor-
mation necessary to start using the club immediately. This can range from providing
a copy of the club newsletter, which should contain information on current events at
the club, to going over the proper procedure for obtaining an introductory card for
reciprocal privileges at other clubs. This is the time to run through all club rules and
regulations, billing procedures, tipping policies, and hours of operation, though care
should be taken not to “suffocate” listeners with too much information. A new member
will generally seek out financial information or reciprocal privileges as those things
become of interest to him/her, but the orientation is the best vehicle for providing day-
to-day pertinent information for the actual use of the club. Members should also be
supplied with telephone numbers that are helpful as they begin to use the club.
Brochures, rules and regulations, bylaws, and phone numbers need to be
included as a “take-home” packet for new members. The orientation should provide
an overview of all areas, so that each new member will be able to find the written
(continued)
288 Chapter 7
material on his/her specific interests and learn more about it at their leisure. Also
included in the packet may be several gift envelopes containing certificates for one
free golf or tennis lesson, a complimentary cocktail, or two free Sunday brunches.
This is also a good time to present a video about the club's history or perhaps one on
golf etiquette, a copy of which may be given to members as gifts.
Members’ questions should be anticipated and incorporated into the informa-
tion presented to conserve time; however, there should also be an atmosphere that
encourages questions and comments as different sections of the club are discussed.
This may be the only time you will have an opportunity to address an issue or explain
a policy, averting a potentially uncomfortable situation for new members later.
Follow-Up
Orientation does not end when a new member walks out the door. Equally
important as the initial contact with the new member is the follow-up or tracking of
club use and satisfaction in the weeks and months to follow. An initial follow-up can
be a welcoming gift (flowers, candy, or private label wine) sent to the new members’
homes along with their new membership cards and a name and telephone number
to call if they have any additional thoughts or questions. The next follow-up may be a
personal reminder or invitation to join other members at a club social event. At sched-
uled intervals (30 days, 90 days, and 180 days for example), each new member’s
usage may be tracked so that contact can be made by phone or in person to deter-
mine use and satisfaction with the club and as an opportunity to suggest club-usage
opportunities and assist with more involvement.
Even the most basic new member orientation program can create an atmo-
sphere of hospitality and affiliation and build the foundation for satisfied, involved club
members.
These events are usually free for both the member and the guest. Members are told
the purpose of the event and that the cost of the event is borne by the club in order
to bring in more nominees. This point is emphasized so that members do not take
advantage of the free event by inviting individuals who are not serious candidates
for membership.
Membership Committees. The role and purpose of the membership committee
at many clubs is to merely review membership nominations as they come in and
determine whether the candidates are acceptable. But in clubs that do not have a
membership waiting list, or have a waiting list that is not considered to be large
enough, the membership committee is sometimes charged by the club’s board to
increase the number of qualified nominations, rather than passively wait for nomi-
nations to come in.
This shift to a recruitment role for membership committees is a major philo-
sophical change. Clubs that have made this shift try to enlist club members with
special credentials to serve on their membership committees—individuals who
can assist the club in identifying candidates for membership. Individuals enlisted
for this type of committee are typically marketing professionals, Chamber of
Commerce executives, high-end realtors, exclusive-product salespersons, and so
on. These individuals can typically provide leads on good candidates for member-
ship as well as understand the sales process and how it can be applied to a private
club. These types of membership committees aggressively pursue the identifica-
tion of good membership candidates.
Some clubs have created a recruitment or nomination committee separate
from the traditional membership committee. This separation allows for a division
of the responsibilities associated with recruiting and evaluating candidates. Hav-
ing separate committees helps ensure that candidates will be evaluated in an unbi-
ased fashion and will be admitted to the club based strictly on the club’s selection
criteria.
Prospect Lists. Prospect lists are lists of individuals who have the same profile as
a club’s current membership or who possess other characteristics that would make
them good candidates for membership. Clubs typically acquire prospect lists from
associations or purchase them from marketing research companies. Examples of
prospect lists include the following:
•• Membership lists from other private clubs (many members have multiple
memberships at local clubs)
•• Membership lists from professional associations/organizations
•• Tenant lists of businesses in office buildings close to the club
•• Realtor lists of individuals who have purchased homes over a certain mon-
etary value in neighborhoods close to the club
•• Lists of individuals who have passed the law board exam
•• Lists of new physicians hired at local hospitals or health centers
•• Lists of individuals with a household income over a set value in certain zip
codes
•• Lists of individuals who own a home valued over a set amount in certain zip
codes
•• Lists of parents with children in select private schools
•• Lists of major contributors or donors to select charities or causes (for example,
art exhibits or museums)
The level of aggressiveness that a club feels comfortable with dictates what
it does with a list once it’s acquired. For clubs that want to stay conservative, the
list can be used by the recruitment or membership committee as an initial list of
individuals that the committee will screen to see if any committee member may
know someone on the list. The next step may be to identify other members who
know that individual and/or are willing to meet, contact, or sponsor the identified
candidate. For example, if a new hospital physician is on the list, the committee
might contact a current member who is also a physician in the same department at
that hospital and ask the member if he or she knows the individual and would be
willing to contact that person about membership.
290 Chapter 7
Clubs could very aggressively use the list by sending out direct mail pieces. In
this instance, the club might send a brochure with membership information about
the club and an application directly to the individuals on the list. This strategy
would reach the largest number of individuals, but it could hurt the club’s image as
an exclusive club. To minimize the negative affect of a letter mailed to prospects, the
letter can contain the name of a current member who invites the candidate to tour
or use the club. The member’s name listed in the letter would be determined by the
recruitment or membership committee, which would identify a specific association
or relationship between the prospect and the current member. There are numerous
strategies and levels of aggressiveness in using prospect lists to pursue candidates.
Each club has to determine what level it is comfortable with and adopt the best
strategy for the club and its members.
Membership Directors
Since the early 1990s, many clubs have hired membership directors to combat
their decrease in membership. Prior to 1990, most membership directors were
hired by large clubs simply to deal with the tremendous amount of paperwork
associated with processing a large number of membership applications each year.
However, during the nineties, the primary role of a membership director changed
for many clubs without a waiting list. For these clubs, membership directors were
expected to increase the number of members at the club, rather than just process
the nominations that came in.
A membership director assists members with the referral process and tries
to make sponsoring a new member as easy as possible. The director usually also
takes over the following administrative responsibilities:
•• Collects the member nomination paperwork: nomination forms, letters of rec-
ommendation, etc.
•• Sends brochures, letters, and other marketing materials to candidates
•• Gives tours of the club
•• Follows up on nominees and membership inquirers to increase the likelihood
of their joining
Membership directors also may help in identifying member candidates from
among the many guests who visit the club. Another important responsibility is to
match membership candidates with members willing to sponsor them because of a
common association. Finally, membership directors may have to implement more
aggressive strategies if less aggressive member referral programs do not work.
Today, more than half of all clubs have a membership director. About a third
of clubs with a membership director reported having more than one membership
director or an administrative assistant to help the membership director, espe-
cially city clubs that have more than 2,000 members and an annual attrition rate of
around 200 members. Almost three-fourths of the membership director positions
were full-time, and the sale of memberships was emphasized, with no additional
duties assigned to that person. Most membership directors were paid a base salary
along with a commission and bonus based on performance. Typically, if member-
ship directors met their performance goals for the year, they received commis-
sions and bonuses that equaled or surpassed their base salary. Commissions and
bonuses were paid for new members, initiation fees generated, and/or new dues
dollars generated.9 See Appendix B at the end of the chapter for a job description
and responsibility list for a membership director whose primary role is to increase
the number of membership nominations.
Using Technology for Membership Marketing

New technology is having an impact on how clubs conduct membership market-
ing. In this section, we will look at how the Internet and the use of databases have
helped clubs do a better job of marketing for new members.
The Internet
Many businesses have developed websites to promote their products and services,
while others actively sell their products online through their web pages. But is
using the club’s website to market memberships appropriate for private clubs?
Many club managers and members have raised concerns about using a club’s web-
site for membership recruitment. Some feel that this activity damages the club’s
exclusive image. Many clubs that are concerned about exclusivity control access to
their websites by issuing their members IDs and/or passwords to access member-
only areas of the site. Another reason for this concern about the level of outside
access comes from the fear that the club could be sued—a plaintiff might try to
prove in court that the club is not truly a private club but is a public accommoda-
tions facility in part because much or all of its website is open to the public.
While some clubs, especially those with a full membership waiting list, are
concerned about the public accessing their websites, other clubs actively seeking
members may welcome the exposure. Many Internet surfers are above-average
income earners and potential club members. A portion of a club’s website can be
used to describe the club’s amenities, provide information on catering/banquets,
explain the nomination process, and so on—all information of interest to potential
members.
Another way to use the club’s website to market for new members is to pro-
vide current members with all of the information and all of the forms they need to
recruit and nominate family members, friends, and acquaintances for club mem-
bership—information about the nomination process, nomination forms that can
be easily downloaded, letter of reference forms, information about membership
categories, the club’s membership fee structure, and so on.
Databases
Membership directors and others at the club can use databases to pursue new
candidates. Candidate databases are being used primarily as a sales tool to track
membership candidates, sponsors requesting nomination forms, members who
sponsor candidates for membership, etc. As clubs actively seek more members,
it is essential to track and organize candidates and those proposing them. Many
292 Chapter 7
membership directors use sales tracking software packages to track leads (pros-
pects) for membership, build the database, and develop a plan on when and how
often to contact the candidates and/or sponsors.10
Clubs can also acquire lists of individuals who have some of the demographic
characteristics of its current membership. One type of list or database typically
sought by private clubs consists of homeowners of property valued over a certain
amount (for example, $500,000) in neighborhoods in which members currently
reside. Clubs may also want to know which households have income levels over a
certain amount (for example, $250,000). These databases or lists of individuals are
often good sources of prospects. How to go about contacting the people in these
lists/databases is a key decision that the club must make. The strategies used must
be appropriate for the club and fit the club’s comfort level in terms of how aggres-
sive it wants to be in marketing for new members.
Conclusion
Because actively pursuing candidates for membership in private clubs is relatively
new, clubs need to use new strategies. Many of the non-traditional membership
marketing activities covered in this chapter will become normal for private clubs
as the twenty-first century progresses, especially during periods of economic
downturns, when disposable income is lower and companies typically cut enter-
tainment budgets. Private clubs have only recently started to market themselves in
order to increase member numbers. Many clubs now implement a variety of mar-
keting activities, such as hiring sales-oriented membership directors and changing
membership policies, in order to stay competitive. By understanding the concepts
of supply and demand and recognizing that much of a club’s market is determined
by the demographics of the population surrounding its location, a club can set
realistic goals for its membership size and develop the best membership market-
ing plan possible.
Endnotes
1. Raymond R. Ferreira, “Marketing in Private Clubs,” Proceedings of the Sixth Annual
Assistant Club Managers Association of America’s Conference, Atlanta, Georgia, October
1996, pp. 119–128.
2. Raymond R. Ferreira and Catherine M. Gustafson, “Declining Memberships During
an Economic Downturn in U.S. Private Clubs,” International Journal of Hospitality &
Tourism Administration, 7, no. 3/3, 2006, pp. 3–18.
3. Raymond R. Ferreira, “Membership Changes in Private Clubs From 2003 to 2007,”
Proceedings of the Southeast CHRIE Hospitality and Tourism Research Conference, Atlanta,
Georgia, 2008, pp. 54–59.
4. Catherine M. Gustafson and Raymond R. Ferreira, “Membership Levels in U.S. Private
Clubs: The Impact and Comparison of Two Periods of Economic Decline,” Proceedings
of the Southeast CHRIE Hospitality and Tourism Research Conference, Tuskegee, Alabama,
2011, pp. 17–21.
5. Michael B. Embody, “City Clubs: How They Responded to the Pressures of Change,”
Club Director, December 1995, pp. 22–26.
6. Club Managers Association of America, 2011 Finance and Operations Report (Alexan-
dria, Virginia: CMAA, 2011), p. 41.
7. Harold Berman, Esq., “Policies and Practices,” Club Director, April 1996, pp. 17–20.
8. Club Managers Association of America, 2008 Operations and Financial Report (Alexan-
dria, Virginia: CMAA, 2008), p. 5.
9. Raymond R. Ferreira, “Private Clubs: Membership Marketing Activities,” Proceedings
of the Southeast CHRIE Hospitality and Tourism Research Conference, Atlanta, Georgia,
2004, pp. 21–26.
10. Rick Coyne, “Knowledge Is Power,” Club Director, June 1995, pp. 17–20.
Key Terms
equity initiation fee—A fee that is partially refundable if a member resigns from
the club within a set number of years.
legacy membership—A membership category offered to the adult children of cur-
rent club members. It typically involves reduced fees, various payment options, or
delayed payments.
membership directors—Club managers who handle the nomination and mem-
bership process and help identify prime club candidates.
prospect lists—Lists of individuals who have the same profile as a club’s current
membership or who possess other characteristics that would make them good
prospects for membership.
temporary price reduction programs—Marketing programs during which initia-
tion fees are reduced for a set period of time as part of a new membership cam-
paign.
Review Questions
1. What are some common factors in declining club membership?
2. How does a club’s location affect its membership size?
3. Why do some people believe that marketing is not necessary in private clubs?
4. What are the 4 P’s of marketing?
5. What are the steps in developing a membership marketing plan?
6. How do clubs go about attracting new club members?
7. What are some of the duties and responsibilities of membership directors?
8. How are clubs incorporating technology in their membership marketing
plans?
294 Chapter 7
Internet Sites
Club Mark Foundation Private Club Memberships

www.clubmark.com www.privateclubmemberships.com/
MemberMarket.html
Creative Golf Marketing
www.creativegolfmarketing.com Professional Club Marketing
Association
Ferreira Company www.askpcma.org
www.ferreiracompany.com
The McMahon Group
www.mcmahongroup.com
Appendix A:
Sample Marketing Strategies
The following are sample marketing strategies that show how a club might go about
increasing (1) its membership rates, and (2) the different markets for membership.
Increase the Number of Members at the Club

Goals:
•• Add a full-time membership director's position.
•• Increase the number of new members each year.
•• Change membership categories, policies, and fees to attract more members
and decrease resignations.
Objectives:
•• Hire a membership director by January 1, 20X1 (refer to job description).
•• Structure the salary of the membership director's position to consist of a base
salary, commission, and bonus incentives. A commission will be paid for each
new member and an additional bonus at various levels above the $100K mark
for new members in a year. This incentive ensures that the membership direc-
tor will exert equal effort in pursuing the 37th new member as the 137th new
member. (This range was used in this example because the club has averaged
75–100 new members each year over the last few years.)
•• Add 125 new members in 20X2 for a 25 percent increase from 20X1's level. In
20X3, 150 new members will be added for a 20 percent increase from 20X2's
level, and 175 in 20X4 for a 16.6 percent increase from 20X3.
•• Purchase software for the following: tracking prospects to make sales staff
more efficient (sales planning/scheduler), prioritizing leads (tickler system),
creating letters to prospects, and producing sales reports with a minimum of
effort. Helps in evaluating the sales strategies that are working best. Imple-
ment by February 1, 20X1.
•• Minimize the administrative duties for the membership director to allow him
or her to spend most of the day selling and identifying prospects.
•• Discount initiation fees by 25 percent for multiple individuals (3 or more)
from the same company/institution/organization starting in March 20X1.
•• Implement the reinstatement program more aggressively for members who
resigned. No initiation fee will be charged for four months in 20X1. Letter
should introduce the new club services offered and urge resigned members
to try the club again to see its improvements.
•• Lower the initiation fee for junior members by 50 percent because they are
very price-sensitive and feel that the price at the club is high. Implement by
February 20X1.
296 Chapter 7
Pursue Current and Different Target Markets for Membership

Goals:
•• Identify prospects within the current target markets.
•• Contact the prospects and discuss the opportunities for membership.
•• Identify women and minorities who would be good prospective members
and aggressively pursue them.
Objectives:
•• Develop the Prospect Member Roster from the following sources:
•• Personal referrals from members.
•• Members of other private city and country clubs.
•• Directors and officers of major corporations and financial institutions
within the market area.
•• Association rosters.
•• Bank's preferred customer lists.
•• Professional societies.
•• Mailing lists of new residents, physicians, attorneys, investors, pilots,
managers, educators, professionals, and engineers in the market area.
•• Develop relationships with leasing agents in every office building within
a minimum of a six-block radius of the club. Use incentives to acquire a
list of tenants and the senior staff at each company. Notification of new
tenants is very critical in order to contact the tenants before they move in.
•• Develop relationships with major brokers and real estate agents who
specialize in selling expensive homes. Use incentives to get referrals of
individuals moving to the city, who work downtown, and who purchase
upper-end homes.
•• Develop relationships with each physician recruiter at the hospitals in
the downtown area to get leads on new physicians.
•• Develop relationships with the law board to get leads on new attorneys.
•• Pursue lists of parents with children in private schools in the city.
•• Prospect lists should be purchased to get additional leads.
•• Any other available sources.
•• Identify professional groups (i.e., city's economic development for minorities)
that cater to businesswomen and minorities. Target qualified prospects from
that group.
•• Contact at least 50 prospects each week through phone calls, direct mail
pieces, personal visitations at the prospects’ worksites, club tours, etc.
•• Make a second or third contact with at least 50 “qualified prospects” through
phone calls, mail pieces, personal visitations at the prospects' worksites, club
tours, etc.
•• Contact at least 25 sources for new leads each week through phone calls, mail
or personal visits, etc.
•• Consider lowering the initiation fee by 10 percent for other membership cat-
egories in 20X2 if the membership director in 20X2 receives feedback from
prospects that the initiation fees are too high.
298 Chapter 7
Appendix B:
Job Description for Membership Director
Position
Membership Director
Related Titles
Membership Manager; Membership Secretary; Director of Marketing and Sales; Account
Executive; Sales Manager; Director of Membership Development; Member Relations
Manager; Membership and Marketing Director; Membership and Communications Director
(Manager); Member Services Director (Manager, Coordinator, Representative)
Reports to: General Manager
Supervises: Social Activités Manager; Communications Manager
•• Bachelor’s degree in Business Administration, Hospitality or Resort Management,
Commuinications, Public Relations or related major and three (3) years of work expe-
rience in the hospitality industry.
•• Five years of relevant work experience.
•• Ability to establish and maintain effective relationships with supervisory/administrative
staff, employees, guests and the general public.
•• Direct and oversee the activities of the Membership Department and control its bud-
get.
•• Knowledge of and ability to perform required role in emergency situations.
Develop and implement programs, projects, and activities designed to increase and retain
membership in the club. Represent the club in its relationships with numerous external
constituencies.
Job Tasks/Duties
•• Maintains the club’s database (membership register) of members’ files.
•• Develops and ensures that established procedures for processing prospective mem-
bers’ applications are consistently followed.
•• Plans and implements strategies to meet club membership goals.
•• Processes all requests for and transfers of membership.
•• Assists prospective members in fulfilling application requirements.
•• Conducts tours for prospective members.
•• Conducts orientation program for new members.
•• Promotes club activities using table tents, newsletters, direct mail flyers, notices on
club website and other means.
•• Coordinates with the Events Manager the updating of the club’s master calendar.
•• Maintains on-line member directory.
•• Holds prospective member functions.
•• Calls and requests active members to make personal referrals and to assist with
recruitment efforts.
•• Processes member resignations; develops reports and undertakes special projects as
applicable if membership retention problems arise.
•• Determines markets to be canvassed for qualified individuals and completes and
maintains perpetual member invitee roster.
•• Assesses the need for and makes recommendations regarding membership classifi-
cations to help ensure that the needs of ever-changing markets are met.
•• Personally meets each club member and instills confidence that the club is operated
in the best interests of the membership.
•• Serves on applicable club committees to assure members’ interests are consistently
addressed.
•• Follows-up on telemarketing efforts, member referrals, leads from staff, catering con-
tracts, newspaper articles, lists, publications, etc.
•• Organizes production of membership kits for sales calls, “blitzes,” and direct mail
activities.
•• Researches the need for on-going sales promotions regarding demographics, market
segmentation data, etc.
•• Provides sales and other applicable training for staff members.
•• Tracks the success and overall performance of all membership activities.
•• Coordinates development of the social activities and social calendar for the club.
•• Maintains a file of club history information.
•• Coordinates all club public relations efforts, members’ newsletters, news and media
events, use of social media, and club promotional materials.
•• Conducts annual club survey on membership dues, equity, practices and fees.
•• Attends management and staff meetings.
•• Effectively responds to member comments in accordance with club standards, poli-
cies and rules; uses ideas, feedback and suggestions to continuously improve the
services provided to members.
•• Develops and adheres to a departmental budget; after approval, monitors and takes
corrective action as necessary to help assure that budget goals are attained.
•• Recruits, trains, supervises, schedules and evaluates subordinates according to
established club procedures.
•• Reports approved new members to the Controller to initiate proper administration of
their memberships; ensures that applications are completely and properly filled out,
that initiation fees are collected and that new members understand the privileges and
costs of becoming a member.
•• Provides notices and agenda for and invites and maintains minutes of the club’s
membership committee.
•• Maintains club’s member bulletin boards.
•• Serves as manager on duty as scheduled.
•• Coordinates floral décor throughout the club.
•• Interacts with club’s decorating and interior design committee to provide effective
decorating concepts for the clubhouse.
300 Chapter 7
•• Works with the Food and Beverage Department as needed to coordinate special
member events.
•• Takes photographs of members and club officers at social events.
•• Surveys other clubs for information useful in setting and revising club membership
policies.
•• Oversees the administration of all membership rules and regulations to ensure
consistency in interpretation and application; updates club rules and regulations and
keeps members informed of changes.
•• Responsible for all correspondence to members regarding rules infractions.
•• Manages suspension list and handles communication with dissatisfied members.
•• Responsible for transfer of club equity memberships through interaction with sales
agents, attorneys and title companies on behalf of buyers and sellers.
•• Maintains all waiting lists for club and golf memberships.
•• Responsible for maintaining confidentiality of all member information.
•• Is present during club operating hours and events to assist in meeting and greeting
members and guests.
•• Completes other appropriate assignments made by the General Manager.
•• Must be able to sit for prolonged periods of time.
•• Moderate noise level in the work environment.
Appendix C:
Sample Membership Marketing Forms
The following are samples of the types of forms that clubs find useful in their
membership marketing efforts.
Sample Form 1: Nomination for Membership

XYZ Country Club
Please typewrite or print. Refer to instructions on last page before filling out this form.
Nominee’s Name
(last) (first) (middle)
Social Security # Date of Birth
Maiden Name:
Class of Membership □ Active (34 & Over) □ Junior (Age 20–33) □ Junior Legacy
Please check preferred billing address:
□ Residence Address
□ Business Name
□ Business Address
Residence Phone Business Phone
Residence Fax # Business Fax #
Preferred Mailing Address

Principal Occupation
Name of Firm
Nature of Business Profession
Present Position
Number of years with this firm How long a local resident
If less than five years, show prior business or professional affiliation, what capacity:

Education:
1) University or College
Degree/Year
Degree/Year
Degree/Year
Additional

302 Chapter 7
Members Known to Nominee:

1. 5. 9.
2. 6. 10.
3. 7. 11.
4. 8. 12.
Board Members Known to Nominee:

1. 2. 3.
Family:
Spouse’s Name Maiden Name
How long a local resident Date of Birth
Members Known to Applicant Spouse:

1. 5. 9.
2. 6. 10.
3. 7. 11.
4. 8. 12.
Education
Business affiliations, clubs, civic and other organizations of spouse
Names and birth dates of sons
Names and birth dates of daughters
Sponsor’s Signature
Sponsor’s Club Number

Sample Form 2: Nomination for Membership Checklist
PROPOSER AND SECONDER CHECKLIST
Completion Date
1. Proposer Complete and return Candidate Question-

naire and Confidential Questionnaire. _______
2. Seconder Complete and return Confidential _______

Questionnaire.
3. Proposer List the names of five Members writing let-

ters of endorsement, and follow-up with the
Membership Director to see they are being
submitted in a timely fashion:
_______
_______
_______
_______
_______
4. Formal Candidate Profile received and sent to Candidate. _______
5. Interview Date.
NOTE: The candidate (and spouse, if married),

accompanied by the proposer and seconder,
must attend.
Proposer Please be sure the proposed candidate has

been advised of the current rates for initia-
tion fee, dues, and long-range capital plan
assessment.
REMINDER: All completed forms and the five letters of

endorsement are to be sent to:
Chairperson of Admissions
____________________ Club
Membership Office
304 Chapter 7
Sample Form 3: Application for Membership

XYZ COUNTRY CLUB
MEMBERSHIP APPLICATION
Name of Transferor
Member #
For Office Use Only:
Phone: (123) 456-7890 Check Received

Fax: (123) 456-0987 Effective Date
Member Number
I hereby offer myself for □ Resident □ Resident under age 35 □ Nonresident

membership in XYZ Country Club. If elected, I agree to conform to the Club’s
regulations as prescribed in its bylaws and house rules.
Please Print
Date , 20
Applicant’s Name Maiden Name (if applicable)

Home Address Phone ( )
City State Zip Code
Company Title
Business Address Phone ( )
City State Zip Code
Profession
Age Birth date Social Security Number
Biographical Information (Educational and Professional History)

Spouse’s Name Maiden Name (if applicable)

Company Title
Business Address Phone ( )
Age Birth date Social Security Number
Biographical Information (Educational and Professional History)

Names of Children and Birth Dates

Wedding Anniversary Date
Professional trade associations in which you hold or have held membership or

office

Clubs, society, lodge, and church affiliations

Have you ever been rejected, expelled, or dropped from a membership in any
Club?
Your bank references
Signature of Applicant
Endorsements: We the undersigned members recommend the above applicant for

membership in XYZ Country Club without reservations.
We have examined the above application and believe the statements therein to be
true.

Print Name Print Name

Signature Member Number Signature Member Number
306 Chapter 7
Sample Form 4: President’s Welcome Letter to New Member

Print on club letterhead
Date
Mr. / Ms. Member

Address
City, State, Zip code
Dear Mr. / Ms. Doe:
On behalf of the Board of Directors, I have the privilege of welcoming you to the
membership of the XYZ Country Club. Enclosed, please find a copy of the Rules
and Bylaws of the Club, as well as a copy of dues and initiation information. A
membership card will be forwarded to you as soon as we receive your minimum
deposit.
We are sure that you will enjoy the use of the Club during the years to come as
much as we will enjoy your membership. If you have any questions regarding
Club rules or the use of our facilities, do not hesitate to contact our General Man-
ager or any member of the Club’s Board of Directors.
Again, please accept our heartfelt welcome. I look forward to seeing you around
the Clubhouse.
Sincerely,
(Signature)
Typed name
President
Sample Form 5: General Manager’s Welcome Letter to New Member
Date
Mr. / Ms. Member

Address
Dear Mr. / Ms. Doe:
Allow me to offer my congratulations on your membership into the XYZ Country

Club. It is our pleasure to have you as a member and I hope you will make full use
of the Club’s facilities.
Though I’m sure you feel acquainted with the Club, it is customary for us to
arrange a special visit for new members. In that spirit, we would like to invite you
to join us at the Club on Friday, November 2nd, at 4:30 in the Clubroom. We will
then conduct a tour to familiarize you with all of the Club’s facilities, after which
the President and the Board of Directors extend an invitation for refreshments.
Please call me to confirm whether you will be able to attend. I look forward to see-
ing you on November 2nd.
Sincerely,
(Signature)
Typed name
General Manager
308 Chapter 7
Sample Form 6: Letter to Sponsor

Date
Mr. / Ms. Member

Address
Dear Mr. / Ms. Doe:
I am pleased to inform you that Mr. Robinson, whom you recently sponsored, has
been elected to membership in the XYZ Country Club.
To thank you for your bringing a new member into our midst, it is our pleasure to
offer you a free dinner for two in the exclusive Clubroom. We encourage you to
dine with the new member and introduce him to Club hospitality.
We understand that it takes some time and effort to sponsor a new member, and
we appreciate your dedication to the Club in this regard. Thanks again.
Sincerely,
(Signature)
Typed name
General Manager
Workplace Antidiscrimination Laws 1. Summarize major U.S. employment
Major U.S. Employment laws that affect clubs. (pp. 311–319)
Antidiscrimination Laws 2. Describe recruitment, selection, and
Recruitment orientation tasks. (pp. 319–331)
Selection 3. Explain the issues and tasks club
Elements of the Selection Process managers should be familiar with
Orientation regarding employee performance
Orientation Kits appraisals. (pp. 331–338)
Performance Appraisals 4. Describe approaches to employee
Functions of Performance Appraisals discipline and discharge.
Common Appraisal Errors (pp. 338–345)
Who Should Evaluate Performance?
How Often Should Appraisals Be
Conducted?
Performance Appraisal Methods
Discipline
Approaches to Discipline
Appeal Mechanisms
Discharge: The Last Resort
8
Managing Human Resources
in Clubs
This chapter was written and contributed by Robert H. Woods, Ph.D.,
Professor, University of Nevada, Las Vegas; Las Vegas, Nevada.
H uman Resources Management in private clubs has changed dramatically in

recent years. A few years ago, clubs were faced with an employee shortage. Predic-
tions at that time called for serious shortages of labor for all of hospitality. That is
not true today. Now there is a glut of potential employees, many of whom have
finely tuned skills. Club managers today must be skilled at selecting from a pool
of several viable potential employees, some with years of experience. Instead of
taking whoever walks through the front door, for the first time in many years clubs
can be selective in their choice of employees.
Responsibilities come with the opportunity to be selective. Members know
there are a lot of people looking for work and they may expect improved service
as a result. At the same time, managers have had to become creative in reducing
costs, as private clubs have been hit by tough economic times, sometimes quite
badly. As memberships in some clubs have dropped, budgets have been cut. As a
result, today managers must be excellent at all of the major human resource func-
tions, as there is little time for wasted effort or expense. The bottom line is that pri-
vate club managers must possess better human resources skills than ever before.
Human resource issues in clubs are similar to the human resource issues in
other service organizations such as hotels and restaurants. However, there is one
major difference between clubs and other hospitality organizations: club manag-
ers serve a more or less permanent population of “customers”—the club’s mem-
bers. These “permanent customers” form a group of repeat customers unlike any
found in the commercial sector. In effect, managers have a relatively small pool
of potential customers from which to draw. Therefore, club managers face the
constant challenge of encouraging members to frequent the club and to spend
more of their discretionary dollars there. In many clubs, the club members own
the club. Whether or not they belong to an equity club, members believe that they
are the club manager’s boss most of the time. This fact, coupled with the fact that
some club members give club managers advice on how they should deal with
employees, puts added pressure on club managers that managers in other hospi-
tality organizations don’t have to deal with.
311
312 Chapter 8
In this chapter we will look at workplace antidiscrimination laws that club

managers should be aware of, then explore the human resources issues involved
in recruiting, selecting, orienting, evaluating, and disciplining employees. Master-
ing these human resource tools will help club managers to more effectively man-
age their human assets.
Workplace Antidiscrimination Laws

Prior to the 1960s, workplace discrimination in the United States was widespread.
This led to the passage of significant new employment laws, including the Equal
Pay Act of 1963 and the very important Civil Rights Act of 1964, which prohibited
discrimination on the basis of race, color, religion, sex, or national origin. Since
then, other antidiscrimination laws have been enacted that affect club managers.
Club managers discriminate among employees all the time. Hiring, training,
promoting, and many other human resources functions all involve discrimina-
tion—that is, they all involve choosing one or more individuals over others. Most
of this discrimination is simply a choice, choosing one employee over another
legally. Discrimination practices that follow the guidelines of equal employment
opportunity laws are legal; however, discrimination practices that fail to follow
these guidelines are illegal.
Clubs incorporated under 501(c) regulations must follow the provisions of
the major employment antidiscrimination laws or risk losing their tax-exempt
status. According to an article in the CMAA Premier Club Services Legal News-
letter, many managers believe that their clubs are completely exempt from fed-
eral antidiscrimination laws. In response to this belief, the authors of the newslet-
ter suggest that “these managers are not wholly mistaken, but they make such
assumptions at their club’s significant peril.”1 According to these authors, at issue
is whether the club is actually a bona fide private membership club. Courts have
been restrictive in their interpretation of what constitutes a private club, including:
(1) membership selectivity, (2) membership control, (3) history of the club, (4) the
use of the facilities by non-members, (5) the club’s purpose, (6) whether the club
advertises for members, and (7) whether the use of the club is non-profit. Courts
have found clubs to be non-exempt because (1) they permit guests to have essen-
tially the same privileges as members, (2) their membership criteria are not very
selective, and (3) their marketing materials suggest that club facilities are open to
the public at large.2 The authors also point out that states and municipalities as
well as the federal government may have laws regarding employment discrimina-
tion and private clubs.
Some clubs are also tempted to try to get around employment antidiscrimina-
tion laws by contending that some of their employees are independent contractors
rather than employees. The IRS test for whether a worker is an employee or an
independent contractor contains twenty questions. If the club answers “yes” to any
of these questions, the worker is considered an employee of the club and therefore
subject to antidiscrimination laws. Included in these questions are queries about
whether the worker complies with managerial directions, receives training from
the club, or is at risk of being disciplined or fired by the club. “Managers must
be vigilant to follow the highest standards of anti-discriminatory employment
Managing Human Resources in Clubs 313
practices, not only because they are fair, but because they are essential to guard-
ing against very real litigation threats that any contrary approach could yield.”3
Defending a club against discrimination lawsuits can be costly in monetary terms
and in other ways, such as the cost to the club’s reputation.
Major U.S. Employment Antidiscrimination Laws

What follows are brief descriptions of the major U.S. employment antidiscrimina-
tion laws.
Wage and Hour Laws. Private clubs must follow both federal and state and some-
times even city or county wage and hour laws unless they can prove that their
workers are independent contractors rather than employees.
Equal Pay Act of 1963. The Equal Pay Act of 1963, passed as an amendment of
the Fair Labor Standards Act of 1938, requires that men and women working for
the same organization be paid the same rate of pay for work that is substantially
equal. This means that club managers cannot pay men more for doing essentially
the same jobs as women. Both must be paid the same wages.
Title VII of the Civil Rights Act of 1964. Title VII of the Civil Rights Act of 1964
prohibits employment discrimination based on race, color, sex, religion, and
national origin. Title VII also provides for six exemptions to this law, including:
1. Bona fide occupational qualifications.
2. Seniority systems.
3. Pre-employment inquiries.
4. Testing.
5. Veterans’ preference rights.
6. National security.
The most important of these for clubs is the bona fide occupational qualifi-
cations (BFOQs) exceptions that permit some legal discrimination based on the
need to hire certain types of people for specific jobs. Under this provision, some
discrimination based on sex, religion, and national origin is acceptable if there is a
BFOQ that makes it necessary. An example of a BFOQ in the club industry would
be female attendants in a women’s locker room. It is legal to recruit and hire only
female attendants for a female locker room without facing charges of discrimina-
tion. The same is true if the club were to stage a Polynesian dance revue concert. In
this case, it would be legal to require that all participating workers be Polynesian.
Age Discrimination in Employment Act of 1967. The Age Discrimination in
Employment Act of 1967 (ADEA) prohibits employers from discriminating against
persons aged 40 or older on the basis of age. All employment actions—hiring,
recruiting, appraising, promoting, advertising, and so on—that affect employ-
ees 40 or older are subject to the provisions of this act. The ADEA stipulates that
employers cannot discriminate on the basis of age (for persons over 40) in any way.
Occupational Safety and Health Act of 1970. While not really an employment
antidiscrimination law, the Occupational Safety and Health Act of 1970 (OSHA)
314 Chapter 8
does materially affect the relationship between employees and clubs. The essential
provisions of OSHA make employers responsible for providing a safe and “suf-
ficiently risk-free” workplace for employees. OSHA requires that employers post
notices advising employees of various aspects of the OSHA law. Club managers
are also required to report any accidents at work to OSHA immediately.
OSHA compliance officers may enter clubs and inspect the premises to deter-
mine compliance. Compliance officers can issue citations in eight categories:
1. Imminent danger.
2. Willful or repeated violations.
3. Serious danger.
4. Non-serious danger.
5. Failure to correct a violation.
6. Willful violation that causes the death of an employee.
7. Posting requirements.
8. De minimis (or minimal) violations.
Minimum penalties of $5,000 for each willful violation and penalties of up
to $70,000 for repeated violations are possible. A willful violation that results in
death can cost $500,000 and result in jail time for managers. Falsifying records can
result in a $10,000 fine and up to six months in jail, while failure to correct prob-
lems can result in penalties of up to $7,000 per day. That said, most citations range
from $400 to $500. Each workplace must also maintain a file on each employee that
details any occupational illnesses or injuries. Most businesses report as many acci-
dents as possible as “minor first-aid” to minimize recordkeeping requirements.
Vocational Rehabilitation Act of 1973. The Vocational Rehabilitation Act of 1973
requires all employers holding federal contracts of $25,000 or more to employ
“qualified handicapped individuals” when “reasonable accommodations” can be
made for them. This does not apply to most private clubs. However, it does apply
to those private clubs that come under federal government supervision, such as
military clubs. Clubs that receive federal or state monies for any other purpose are
also subject to these laws if the amount exceeds $25,000.
Pregnancy Discrimination Act of 1978. Prior to enactment of the Pregnancy Dis-
crimination Act of 1978, an employer could require an employee to take a preg-
nancy leave for a stipulated period or at a specific time in her pregnancy. This is
no longer the case, of course. Today pregnancy is not viewed as a medical defi-
ciency but, rather, a condition, and is not a reason for discrimination except when
a worker might be working with chemicals or in jobs in which her health or the
health of the unborn baby are at undue risk. In addition, this act prohibits employ-
ers from refusing to hire a pregnant applicant, so long as the applicant is able
to perform the essential functions of the job. (Essential functions of the job are
described later in the chapter.) Employers also cannot provide health coverage to
employees that does not include, or imposes high costs for, pregnancy care.
Even today, not all companies completely understand or equally apply the
provisions of this law. For instance, a hotel manager in Texas filed a lawsuit and
alleged that she was twice demoted after becoming pregnant. The company origi-
nally sought to dismiss the case, but the U.S. District Court denied that motion,
citing inappropriate comments made by her supervisor when he learned about
her pregnancy. The court ruled that “stray remarks may be sufficient evidence of
discrimination in the event comments are related to the protected class of persons
that the employee belongs, close in time to the adverse employment action, made
by an individual with authority, and related to the employment decision.” Manag-
ers, then, would be wise to choose their words carefully before speaking.4
Immigration Reform and Control Act of 1986. The Immigration Reform and Con-
trol Act of 1986 (IRCA) was designed to regulate the employment of non-U.S. citi-
zens in the United States. Employers with four or more employees are prohibited
from discriminating against applicants on the basis of citizenship or nationality.
This makes it illegal to knowingly employ or recruit illegal immigrants and requires
employers to legally attest to their employees’ immigration status. Employers, no
matter how small, must verify that applicants are authorized to work in the United
States within three days after their hire by completing the Employment Eligibility
Verification Form (Form I-9).
This law allows employers to show preference to U.S. citizens or nationals
over aliens when hiring. For example, a club manager can legally discriminate by
choosing an applicant who is a U.S. citizen over one who is not. Discharges and
layoffs cannot be based on U.S. citizenship, however. Today, there are somewhere
between 10 and 30 million illegal immigrants in the United States. Many of these
(37 percent) work in the hospitality industry
The government has been lax about enforcement of immigration laws, but
that does not mean that violation is either legal or ethical. Club managers need to
take care to make sure that applicants are really U.S. citizens or legal workers and
that the credentials they present (Social Security cards and driver’s licenses) are
actually theirs, not stolen.
Identity theft has become a major problem in the United States, and employ-
ers are partially at fault. If they knowingly allow illegal immigrants to provide sto-
len identity information to gain jobs, these managers are, in fact, not only breaking
the law but contributing to the damage done to those whose identities have been
stolen. The damage is sometimes enormous to the injured party and courts are
now ruling that employers are liable for some or all of these damages.
Notwithstanding the threat of lawsuits, club managers should simply do the
right and legal thing, and hire only qualified employees after ample checking. Any
other action is illegal and unethical.
Employee Polygraph Protection Act of 1988. The Employee Polygraph Protection
Act of 1988 prohibited the use of polygraphs in about 85 percent of the employment
situations in which they previously had been used. Under this law, employees are
protected from dismissal, discipline, or discrimination solely on the basis of their
refusal to submit to a polygraph exam. An employer can still require polygraph
tests if he or she is willing to state in writing that an employee is guilty of some
wrongdoing. However, it is rarely wise for club managers to subject themselves
or their clubs to the lawsuits that can arise from accusing employees of wrongdo-
ing in writing. As experienced club managers know, it is often more difficult for a
316 Chapter 8
club to prove wrongdoing than it is for an accused employee to win a wrongful-

discharge lawsuit.
Drug Free Workplace Act of 1988. Ninety-seven percent of hospitality profession-

als believe alcohol and drug abuse to be a problem for the industry, with more
than one in two respondents reporting that the combined effects have reached
“worrying” levels. It was found that of almost 1,000 hospitality professionals, 40
percent of respondents had seen colleagues take illegal drugs while at work, and
59 percent had seen colleagues drinking to excess on duty. The most common rea-
sons given by people who took drugs at work were “to stay awake during shift”
(48 percent) and “to help cope with stress” (48 percent).5
The Drug Free Workplace Act of 1988 does not require a drug-free work envi-
ronment among all private employers; however, it does require federal contractors
who receive federal grants to establish policies and procedures that ensure that
their organizations are free of drug abuse and to make a good-faith effort to sus-
tain a drug-free work environment. Many managers misunderstand this law and
believe that they are obligated to drug test every potential employee and to give
random tests to current employees. This is wrong. Drug tests are only required in
certain circumstances, few of which involve the club industry.
Some argue that drug testing is a violation of personal rights and that minor-
ity groups will be affected more than others, unfairly and perhaps illegally. Others
argue that drug testing is good for everyone. The question remains open to discus-
sion, but managers who engage in drug testing must be careful to follow both the
letter and intent of this law, which means that if any applicants are tested, all must
be tested, and that random tests are truly random. Violation of these provisions
can and have led to major lawsuit losses for businesses, including clubs.
Some clubs have reported that they conduct drug tests to obtain lower insur-
ance premiums. While this may be true, managers must weigh the cost savings
against the potential loss of employees, the possibility of falsely accusing someone
of drug use (which might result in a lawsuit), and whether this policy fits the
culture of the club. Companies that implement drug testing often have greater
turnover and a much smaller pool of applicants from which to choose.
Americans with Disabilities Act. On July 26, 1992, the Americans with Disabili-
ties Act (ADA) became law. The ADA, known to its sponsors as the “Emancipation
Proclamation for the Disabled,” forbids workplace discrimination against people
with disabilities. At the time the law was signed, President George H. W. Bush
noted that it was created for approximately forty-three million disabled U.S. citi-
zens, two-thirds of whom were in the 16 to 64 age bracket and were regarded as
chronically unemployed.6
Stringent penalties are outlined for employers who fail to comply with ADA
provisions. For example, it is within a court’s power to assess civil penalties against
any employer to a maximum of $50,000 for a first violation, and up to $100,000 for
subsequent violations. The ADA also provides for equitable remedies in job dis-
crimination lawsuits, including job reinstatement, back pay, and even front pay
for disabled applicants who were discriminated against by potential employers.
An employer is considered in violation of the law if employment practices are
used that discriminate against the disabled—even if the discrimination is unin-
tended. This is much like the adverse-impact provision of Title VII of the Civil
Rights Act, upon which so many discrimination lawsuits have been filed since the
act was passed in 1964. According to this provision, even employment practices
that appear neutral but have the result of adversely impacting the disabled will be
considered discriminatory.
Defining disabilities under the ADA. According to the ADA, an individual
is considered disabled who (1) has a physical or mental impairment that substan-
tially limits one or more major life activities, (2) has a record of such an impair-
ment, or (3) is regarded as having such an impairment. Therefore, the ADA does
not apply only to those who use wheelchairs. For example, speech, visual, and
hearing impairments, as well as mental retardation and emotional illnesses, are
considered disabilities. In addition, people with cancer, heart disease, palsy, epi-
lepsy, multiple sclerosis, arthritis, asthma, and diabetes are considered disabled,
as are those with infections such as HIV or AIDS. Some learning disabilities are
also considered disabilities. Drug or alcohol addiction is considered a disability if
the person is participating in a supervised rehabilitation program or has under-
gone rehabilitation and is not currently using drugs or alcohol. This last provision
often makes drug testing a potential landmine for managers, as they may illegally
pass over applicants who test positive for drugs but are participating in a rehabili-
tation program.
The ADA Amendments Act of 2008 (ADAAA) specifically lists disabilities
and greatly expands the original 1990 list. Included in the non-exhaustive list of
major life activities that must be substantially limited in order for an impairment
to be a disability are caring for oneself, performing manual tasks, seeing, hearing,
eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning,
reading, concentrating, thinking, communicating, and working. The ADAAA also
lists major bodily functions in which disability might be an issue—including, but
not limited to, functions of the immune system; normal cell growth; and diges-
tive, bowel, bladder, neurological, brain, respiratory, circulatory, endocrine, and
reproductive functions.7 The law also removed the requirement for employees to
demonstrate that they are disabled. Instead, an individual can establish coverage
under the law by showing that he or she has been subjected to an action prohibited
under the Act because of an actual or perceived physical or mental impairment
that is not transitory and minor.
Qualifying for work under the ADA. Persons with disabilities are consid-
ered qualified if they can perform the essential functions of a job with or without
reasonable accommodation. These two issues are critical ones for club managers
to understand. The term “essential functions” was mentioned earlier in the chap-
ter and refers to job tasks that are fundamental to a job. For instance, “cooking
skills” would be considered fundamental for a cook. However, the ability to hear
spoken food orders would not be considered a fundamental skill. As a result, in a
club kitchen in which servers inform cooks of food orders by speaking, a reason-
able accommodation might be to create a written communication option so that
someone with a hearing disability could be hired.
318 Chapter 8
“Reasonable accommodation” refers to what employers must do in order

to make the workplace accessible to people with disabilities. As a general rule,
employers are required to provide accommodations for disabled individu-
als unless it would impose an undue hardship on the employer. Undue hard-
ship is still being defined by the courts and will likely depend on the specific
circumstances. According to the Equal Employment Opportunity Commission
(EEOC), approximately 50 percent of people with disabilities require no reason-
able accommodation at all. To date, 31 percent of accommodations have had no
cost, 19 percent cost between $1–$50, 19 percent between $51–$500, 19 percent
between $501–$1,000, and 11 percent between $1,001–$5,000. Only 1 percent have
cost more than $5,000.8
According to the EEOC, the following would be considered reasonable accom-
modations (unless particular issues in a specific case made them unreasonable):
1. Making facilities accessible (constructing wheelchair ramps, widening isles,
raising a cashier station on blocks for a person in a wheelchair, and so on).
2. Restructuring jobs (eliminating nonessential functions in a job).
3. Reassigning someone to a vacant job (moving employees to other jobs if they
become unable to perform their present jobs).
4. Modifying work schedules (to allow for medical appointments, for example).
5. Modifying equipment or acquiring the special equipment necessary for dis-
abled individuals to perform essential job functions.
6. Providing readers or interpreters (for those who cannot read or are visually
impaired).
What these “reasonable accommodations” mean is that clubs must make their
work areas accessible and barrier-free so that disabled employees can be hired and
can reach their work areas. Physical barriers—stairs, curbs, narrow doorways, and
so on—must be modified to accommodate disabled employees, elevators must
have audio cues or braille buttons for people who are visually impaired, and so on.
Family and Medical Leave Act. Passed in 1993, the Family and Medical Leave Act
(FMLA) applies to employers with fifty or more employees and allows employ-
ees to take unpaid time off from work (up to twelve weeks per year) for certain
medical and family reasons. For example, the FMLA provides that employees,
male or female, may take time off from work to care for a newborn child or a sick
immediate-family member. Employers must allow this time off and “hold” the
employee’s position for a stipulated period of time. It’s possible for state laws
to allow employees more time off than the FMLA, in which case the state laws
would supersede the federal laws. Therefore, club managers should consult with
state equal-employment-opportunity officials to determine the amount of time an
employee can take unpaid leave for family or medical reasons without penalty.
Bills have been introduced in Congress to amend the FMLA to include domes-
tic partners, same-sex spouses, and extended-family members. While they have
not been passed, several states have enacted similar legislation as well as laws to
greatly expand the definition of “family” to include such persons as in-laws, civil
union and domestic partner couples, and grandparents. Other states have greatly
reduced the size of organizations to which the FMLA applies. In Vermont, the
legal limit is ten employees, for example.
State and Local Laws. Nearly all states and many localities have equal-employment-
opportunity laws. In many cases, these laws provide much broader protection
than federal EEOC legislation. For example, while federal laws often provide pro-
tection for employees in companies with specific-sized payrolls, state laws often
do not include this restriction. As a result, employers of all sizes, including most
clubs, are generally required to follow state EEOC regulations. In addition, many
states and municipalities have enacted laws that protect groups not included
in federal protection plans. For example, some states and localities have passed
“sexual orientation” laws protecting gay men and women from discrimination.
Others have passed bills that require employers to provide health care coverage
to life partners, regardless of the gender of the participants. Because these provi-
sions vary from state to state and city to city, club managers should not assume
that compliance with federal laws is enough. To make matters more complicated
for club managers, many cities and counties have passed what are called “living
wage” laws. These laws require wages higher than those required by either state
or federal employment laws.
Recruitment
The fact that the U.S. population is growing at only about one percent annually
is problematic for employers. Now is the time for clubs to convince employees
that positions in their organizations represent good lifelong career opportunities
if they wish to establish long-term employee relationships and pipelines to future
employees. The job of recruiting has also become harder because of the aging
work force. Many clubs already realize that it often takes extra effort these days
to recruit, hire, and retain the right employees. As a result, these clubs are quickly
gaining an edge over the clubs that they compete with for employees. Working in
the club industry’s favor is the coming of age of Generation Y—people born from
the early 1980s to the late 1990s. It is likely that this group will provide a large pool
of part-time employees for clubs.

Recruitment should be thought of as a process. Much of the work in recruiting is
done prior to actually placing any recruitment advertising. The recruitment pro-
cess begins by reviewing the information contained in job analyses, job descrip-
tions, and job specifications. After reviewing the information on these docu-
ments (and updating them if necessary), the process continues until desirable
candidates are identified and encouraged to apply. Many clubs have developed
web-based application processes that allow applicants to apply online. (This is
particularly useful for attracting younger workers, who tend to prefer online
applications.) In fact, perhaps the most effective form of recruitment for clubs
today is to use the non-member portion of their websites to post jobs and encour-
age people to apply. The last step in the process is to evaluate the club’s recruiting
320 Chapter 8
methods. Overall recruitment costs, costs per hire, the number of contacts made,
and acceptance-offer ratios are all ways to measure the effectiveness of a club’s
recruitment process.
Club managers can recruit either from external sources (sources outside the
club) or internal sources (from employees already working for the club). There are
advantages and disadvantages to both approaches (see Exhibit 1). If club managers
maintain adequate skills inventories, replacement charts, and succession charts,
internal recruiting is easier because the managers have a better idea of which cur-
rent employees can perform the needed skills of an open position and who might
be interested in such a position. Many clubs use job postings on bulletin boards to
let current employees know about job openings. Typically these postings include a
complete job description and specifications so that interested employees can read
about the job’s responsibilities and the skills needed.
All recruitment costs money. Recruiting externally costs more than recruit-
ing internally among current employees, of course. However, the cost of recruit-
ment is only a small part of an employee’s costs-versus-benefits equation. How an
employee performs on the job is the big payoff. A slight increase in the quality of
employees hired can pay big dividends for clubs in the form of increased member
satisfaction and staff morale. Therefore, when it comes to recruiting, it pays to
spend whatever money and management time and attention is necessary to find
and hire quality employees.9
Some club managers ask current employees for leads on external recruits.
This helps managers locate friends and acquaintances of current employees. These
potential recruits often have more realistic views about the advantages and dis-
advantages of working at the club than do other candidates. Another advantage
to this method is that current employees typically refer only those friends whom
they believe would make good employees. For these reasons, some clubs have
even offered bonuses to current employees who can help persuade friends or
acquaintances to work at the club.
While sources for external recruiting differ depending on the local circum-
stances, those listed in Exhibit 2 represent good sources for many clubs.
It should be noted that many hospitality organizations, including clubs,
are guilty of breaking antidiscrimination laws in their employment advertising.
Club managers must be careful to follow EEOC guidelines when advertising for
workers.
Selection
Selecting the right person for the job is one of the most important functions a club
manager performs. Conducted properly, selection will provide a club with the per-
sonnel the club needs to excel. However, selection that is conducted haphazardly
or improperly will usually lead to wasted management time and effort, misuse of
employee time and effort, and member discontent with the employees hired. It is
important that managers take the selection process seriously. Managers shouldn’t
take shortcuts with the selection process or delegate selection to untrained manag-
ers or employees.
Exhibit 1 Advantages and Disadvantages of Internal and External Recruiting
Internal Recruiting
Advantages
•• Improves the morale of the promoted employee.
•• Improves the morale of other employees who see future opportunities for
themselves.
•• Managers can better assess the abilities of internal recruits, since their per
formances have been observed over time.
•• Internal recruiting for supervisory and management positions results in a
succession of promotions (one to fill each vacated job), which reinforces the
“internal career ladder.”
•• The cost of internal recruitment is lower than the cost of external recruitment.
Disadvantages
•• Internal recruiting promotes “inbreeding.”
•• Internal recruiting can cause morale problems among those employees who
were skipped over for promotion.
•• Internal recruiting can have political overtones; some employees attribute inter
nal promotions to friendships with managers and supervisors.
•• Filling a gap in one department through internal recruiting may create an even
more critical gap in another department.
External Recruiting
Advantages
•• External recruiting brings new blood and new ideas into the company.
•• Recruits from the outside can often provide not only new ideas but news about
how and what competitors are doing.
•• External recruits can provide a fresh look at your club, which sometimes rein
forces the reasons current employees work for you. Consider, for example,
the value of an external recruit saying such things as, “You keep your kitchen
much cleaner than they do at XYZ club where I used to work” or “The helpful
attitude of employees here certainly makes this a more pleasant place to work
than my old job.”
•• External recruiting sometimes avoids many of the political problems associated
with internal recruiting.
•• External recruiting serves as a form of advertising for the club (newspaper ads,
posters, bulletin board notices, and so on remind the public of your products
and services).
(continued)
322 Chapter 8
Disadvantages
•• It is more difficult to find a good fit with the club’s culture and management phi
losophy when recruiting externally.
•• Internal morale problems can develop if current employees feel that they have
no opportunity to move up in the organization.
•• It takes longer to orient external recruits than it does internal recruits.
•• External recruiting can lower productivity over the short run because external
recruits usually cannot produce as quickly or effectively as internal recruits.
•• When employees believe that they could have done the job as well as the
external recruit who was hired, political problems and personality conflicts can
result.
Elements of the Selection Process

Exhibit 3 illustrates basic steps in the selection process. The number of steps can
vary. While clubs, by law, must accept and dutifully consider each application, it
is also legal to establish club policies (based on BFOQs and job descriptions that
specify skills required of applicants) that eliminate applicants early in the process
if they are deemed unsatisfactory.
While selection methods vary from club to club, most selection programs con-
tain common elements. In the following sections we will discuss selection elements
that most club managers address when selecting employees: application blanks,
pre-employment tests, other pre-employment screening, employment interviews,
and reference checks.
Application Blanks. The purpose of application blanks (also known as applica-
tion forms) is to learn what applicants have done in the past. An application blank
typically asks an applicant to report on his or her employment history, educational
background, work references, personal references, and other personal data.
Application blanks should not be too long. Excessively long or complex appli-
cations can discourage potential applicants and cause concern over whether all
of the questions on the form are truly job-related. On the other hand, application
blanks that are too short can fail to collect the information needed to assess the
ability of an applicant to perform the job.
Questions on application blanks must relate to bona fide occupational quali-
fications. Therefore, questions that require applicants to reveal their gender, age,
birthplace, race, marital or family status, sexual preferences, religion, military
record, disabilities, or convictions or arrests not related directly to the job at hand
are all illegal. Asking applicants for photographs and specific types of references
(religious, military, and so on) is also illegal.
Many application blanks in the past included questions such as, “Do you suf-
fer from any permanent ailment or disease?” and “Have you ever suffered a seri-
ous accident while on the job?” Some application blanks included sections that
asked applicants to identify any disabilities that they had (hearing, visual, and so
Exhibit 2 External Recruiting Sources
•• Employment agencies—state and private
•• Schools—high school job fairs, club managers as guest speakers in classes,
notices with guidance counselors, personal contact with teachers and coaches,
participation in work-study programs
•• Student organizations—Future Homemakers Association, Future Farmers of
America, Distributive Education Clubs of America, and so on
•• Colleges—job fairs, contact with placement counselors, club managers as class
room guest speakers, contact with teachers and coaches, participation in work-
study programs, contact with campus social and professional clubs, hospitality
management programs, dormitory counselors
•• Churches and synagogues
•• Youth groups
•• Apartment complexes—laundry-room bulletins, doorknob brochures
•• Apartment newsletters
•• Local sports teams (sponsorship)
•• Women’s groups
•• Child-care centers
•• Professional and trade journals
•• Libraries
•• Craft centers
•• Exercise centers
•• Sales, supply, and machinery representatives
•• Participation in community events
•• Senior-citizen groups
•• Governmental division-on-aging unit
•• Agencies for the disabled
•• Urban League and other agencies that provide skills training and job placement—
Vietnam Refugee Fund, Mexican-American Opportunity Foundation, and so on
•• Government rehabilitation agencies
•• Government veterans agencies
•• Chamber of Commerce
•• Social/health organizations such as YMCA or YWCA
•• Social service organizations such as the American Red Cross or the Salvation
Army
•• Volunteer groups—League of Women Voters, homeless shelters, health
agencies, and so on
(continued)
324 Chapter 8
•• Welcome organizations—Welcome Wagon, Hello Club, Newcomers, and so on

•• Military agencies—reserve and active units of the local National Guard
•• Open job fairs
•• Employees at other hospitality companies or service-oriented organizations that
you meet while dining out, shopping, or doing other day-to-day activities
•• State American Hotel & Lodging Association
•• State restaurant associations
•• Local chapters of the Club Managers Association of America
•• Local and state assistance programs—for example, clothing and food drives for
the needy
•• Ads in local “pennysaver” and other low- and no-cost papers
•• Online job boards and job services
on). Such questions are illegal under provisions of the Americans with Disabilities
Act unless they are proven to be specifically job-related. Since in most cases this is
very hard to prove, as a general rule clubs should eliminate such questions from
their applications.
Pre-Employment Tests. Pre-employment tests represent an attractive selection
method to managers because they are an easy way to compare candidates. A can-
didate who scored 90 on a test would appear to be a more attractive candidate than
one who scored 80 on the same test. However, using tests to evaluate candidates
can often lead to charges of discrimination, because lawyers have successfully con-
tended in many cases that tests discriminate against certain minority groups that
typically score lower on tests, thereby creating an adverse-impact discrimination
situation.
Tests, especially general intelligence and mechanical-comprehension tests,
were used widely in the 1950s and 1960s as selection devices. However, after the
passage of Title VII of the Civil Rights Act of 1964, tests became the focus of many
discrimination suits. The first testing issue was to demonstrate the job-relatedness
of the tests. In many cases, tests used prior to the Civil Rights Act were not job-
related. The second issue that came under fire was the validity of the tests. In many
court cases, companies using tests as selection devices were unable to prove that
the results were valid predictors of job success. Pre-employment tests may only
be used if the employer can prove that they are accurate predictors of job perfor-
mance. While most clubs may never be forced to prove this, it is safer to avoid this
problem by not using tests that do not relate directly to work issues.
In recent years, personality tests have again become popular with employers
as a means of identifying who they want to hire. Such tests are legal, but only if
they can be proven not to contain adverse-impact issues. For instance, if employ-
ers really want to hire only non-minority applicants and use a test that allows for
Exhibit 3 Basic Steps in the Selection Process
1. Confirm that an opening exists
2. Review the job description for the position to identify job responsibilities
3. Review the job specification to identify qualifications applicants should possess
4. Identify sources of applicants
5. Review applications
6. Select an interviewing environment
7. Select an interviewing strategy
8. Develop questions to ask during interviews
9. Conduct interviews
10. Close interviews
11. Evaluate candidates
12. Check the candidates’ references
13. Select a candidate
higher scores from such applicants, they are subject to severe penalties for viola-
tion of Title VII of the Civil Rights Act.
Other Pre-Employment Screening. Checking social networking sites for informa-
tion about potential employees is frequently done today, and many managers are
making hiring decisions based in part on information learned from these sites.
These sites can provide information that job candidates do not disclose on their
job applications or during job interviews. Many people reveal a great deal about
themselves on such sites, including disclosures that some employers might find
distasteful. Managers should be careful in their use of such sites, however, since
information posted there may be placed by unfriendly third-parties or may other-
wise be inaccurate or misleading, and there are certain legal ramifications to using
such sites for researching candidates.10
Employment Interviews. There are several problems associated with interview-
ing applicants. The one that receives the most attention is the inability of an inter-
viewer to determine in a single interview whether an applicant can perform all
of the functions of a job and fit in well with the organization’s culture. This is
important, because interviews are supposed to be predictors of applicants’ likeli-
hood of success on the job. This problem can sometimes be overcome through
using a system of two separate interviews with a different interviewer each time;
this system allows a club to get two opinions of an applicant. Unfortunately, this
system also has problems. The principal problem with two interviews is related
to the issue of inter-rater reliability. If two interviewers interview the same candi-
date, it is unlikely that they will arrive at the same conclusions unless the applicant
is highly qualified and desirable. While both might agree on general issues, it is
unlikely that they will agree on the more subjective issues such as the likelihood of
326 Chapter 8
Exhibit 4 Common Problems Associated with Interviewing
Similarity Error
Many interviewers are predisposed to react positively to candidates who are similar
to themselves (in outside interests, personal background, and even appearance) and
react negatively to candidates very different from themselves.
Contrast Error
Candidates should be compared to the standards that the club has established for the
position, not to each other. Comparing candidates to one another, whether consciously
or subconsciously, is particularly troublesome when two poor candidates are followed
by a merely average candidate. Because of the contrast between candidates, the
average candidate may be viewed as excellent, resulting in a contrast error.
Overweighting Negative Information
It is human nature to notice negative information more than positive information.
When we examine a résumé or an application, we tend to look for the negative, not
the positive. This also happens in interviews.
First-Impression Error
Many interviewers tend to form a strong first impression of a candidate that they main
tain throughout the interview.
Halo Effect
Sometimes an interviewer’s favorable impression of a single dimension about a
candidate—appearance, background, and so on—can substantially color his or her
overall impression. The halo effect occurs when an interviewer views everything that
a candidate says or does in this favorable light.
Devil’s Horns
The opposite of the halo effect, the devil's horns phenomenon can often cause inter
viewers to see everything a candidate says or does in an unfavorable light.
Faulty Listening and Memory
Interviewers do not always hear what is said in the way it was intended, nor do they
remember everything that was said.
Recency Errors
An interviewer is likely to remember a candidate’s most recent behaviors or
responses, rather than behaviors or responses that occurred earlier in the interview.
Nonverbal Factors
Nonverbal factors such as clothing, smiles, speech patterns, and eye contact sub
stantially influence an interviewer’s impression of candidates. Some interviewers
make up their minds about whom to hire based almost solely on the candidate’s attire
and demeanor.
the applicant’s success in the posted job. When they do agree, the applicant should
be hired. Some of the other problems associated with interviewing reliability are
outlined in Exhibit 4.
Preparing for interviews. A club manager’s likelihood of collecting useful
information during an interview can be substantially enhanced by following a few
simple rules:
1. Do your homework before the interview. Completely read the applicant’s
application or résumé before the meeting.
2. Establish an appropriate setting.
3. Ensure that you will not be interrupted during the interview.
4. Establish a rapport and put the applicant at ease by asking the applicant to tell
you about his or her accomplishments.
5. Prepare questions in advance (including follow-up questions).
6. Know the job and its specifications.
Reading from a candidate’s résumé during the interview obviously signals
to the candidate that you either did not care enough to prepare in advance or
that you are unorganized. Establishing an appropriate setting is critical; a private
spot is usually best. Generally, a club manager should block out whatever time
is needed to conduct the interview and focus solely on the candidate (no phone
calls or other interruptions). Establishing a rapport is important in order to get the
applicant talking; you can learn much more from an applicant by putting him or
her at ease. Knowing the job in advance can be achieved by thoroughly reviewing
the position’s job analysis and job description prior to conducting an interview.
Types of interviews. Interviews fall into three categories, depending on the
degree of latitude allowed the interviewer: unstructured interviews, semistruc-
tured interviews, and structured interviews. These are also known as nondirec-
tive, mixed, and patterned interviews, respectively.
Unstructured interviews are probably the most commonly used. In unstruc-
tured interviews, questions are not planned in advance. Instead, the interviewer
directs the interview down whatever path seems appropriate at the time. Some
experts believe that unstructured interviews are likely to skip over important
job-related issues; others believe that skilled interviewers can use this method to
achieve a better understanding of the candidate, since areas can be explored that
both semistructured and structured interviews might miss.
When using a semistructured interview, a club manager plans out what
issues will be explored, but allows for flexibility during the interview. Typically
the manager will prepare very broad or open-ended questions about the topics
he or she wants to cover and allow the candidate to speak freely about each topic.
In structured interviews, questions are fully prepared in advance and are
asked in the same way at the same time during each interview. Very little flex-
ibility is allowed. This makes it easier for club managers to compare the answers
the job candidates gave to the questions. However, this approach tends to pro-
duce information that is narrower or shallower; issues are typically not explored
in depth with this approach.
Legal do’s and don’ts in interviews. Club managers must be careful not to
break any laws during interviews. Important points for club managers to remem-
ber include the following:
•• Only ask questions that relate directly to the job.
•• Do not ask applicants questions that could be construed as discriminatory,
such as questions about race, national origin, or religion.
328 Chapter 8
•• Do not ask applicants about their family lives. Their family life has no bearing
on whether they qualify for the job.
•• Do not promise terms of employment. Even pointing out examples of employ-
ees who have worked at the club for long periods could be considered an indi-
rect promise of long-term employment.
•• Do not, under any circumstances, inquire about personal relationships. Such
questions can be construed as sexual harassment.
Reference Checks. Checking references should be an integral part of the selec-
tion process. As many as 30 percent of the résumés in the United States contain at
least one major fabrication. Many of these fabrications relate to either educational
accomplishments or past work experience. In 2007, Oregon reported that there
were as many as 331 known diploma mills, or unaccredited colleges, operating
in that state alone.11 For this reason, club managers should be very leery of online
college and other degrees and certifications.
Failing to conduct a thorough reference check can leave a club open to
negligent-hiring lawsuits. “Negligent hiring” is commonly defined as an employ-
er’s failure to exercise reasonable care in the selection of its employees. It is becom-
ing more common for employers to be sued for not taking reasonable precautions
to protect their customers or guests from the actions of employees. Customers
have successfully sued pizza delivery companies, restaurants, hotels, casinos, and
other service organizations because the companies did not take the time to do
background checks which resulted in hiring employees who posed a threat to their
customers.
When checking references, club managers should maintain a genuine concern
for the privacy of the applicant. In fact, a number of states have passed laws to pro-
tect an employee’s or potential employee’s right to privacy. Therefore, as a general
rule, club managers should review the appropriate state legislation regarding this
issue prior to undertaking any action.
Credit reference checks. In 2010 it was reported that 47 percent of organiza-
tions in the United States use credit checks for certain positions as a reference on
potential employees; of these organizations, 65 percent give applicants the chance
to explain bad credit reports before deciding whether to hire them.12 However,
club managers should be forewarned that the practice of checking applicants’
credit reports has come under close scrutiny for its potential to violate individual-
privacy provisions of the Fair Credit Reporting Act.
Requests for references. We live in a litigious society. As a result, many
employers are reluctant to report on the past performance of employees for fear
of someday ending up in court. Club managers who want to play it safe should
only report a person’s job title and dates of employment. The best rule of thumb
for club managers is to secure written permission from employees before releasing
any other information about them.
Orientation
On the first day of a new job, a new employee is faced with new surroundings,
work rules, responsibilities, bosses, and co-workers. At best, all this newness will
Exhibit 5 Checklist for Orientation Planning
•• Determine orientation goals
•• Identify the range of topics that should be covered
•• Determine the time and duration of orientation sessions
•• Divide orientation topics into club, departmental, and job topics
•• Build enough flexibility into the orientation to allow for differences in education
and work experience among new employees
•• Identify the new-employee training that will be done by the club’s human
resources department (if applicable)
•• Identify the new-employee training that managers and supervisors will conduct
•• Provide any training that managers and supervisors might need in order to con
duct an effective orientation program and train new employees
•• Ensure that the social aspects of orientation are covered as well as the technical
•• Brainstorm methods for encouraging employee discussion and feedback during
the orientation
•• Review and update (if necessary) the employee handbook before giving it to
new employees
Source: Adapted from Wayne F. Cascio, Managing Human Resources: Productivity, Quality of
Work Life, Profits (New York: McGraw-Hill, 1989), p. 228.
make a new employee feel somewhat insecure. At worst, it will provoke a feel-
ing of anxiety that the employee cannot get over that will eventually drive the
employee to quit. When turnover of this type occurs, all the time and money spent
in locating, recruiting, selecting, and hiring the employee is wasted.
Orientation programs are intended to reduce the stress that employees feel
when beginning a new job. However, ineffectively conducted orientations can
actually increase the pressure new employees feel. Exhibit 5 is a checklist that club
managers can use to help them create an orientation program. Effective orienta-
tion programs are typically divided into two sections: general property orienta-
tion and specific job orientation.
Employees should first be oriented to the club as a whole. During the general
property orientation, issues such as insurance, benefits, personnel forms, general
policies and procedures, club member and employee relations, the club’s mission
statement and management philosophy, and the role of employees in helping the
club meet club goals are the focus of the orientation.
During the specific job orientation, the focus shifts from organizational and
departmental issues to subjects that relate directly to the performance of specific
job responsibilities. During this stage, employees should be introduced to the
specific responsibilities outlined in the job description, the location of their work
area(s) in relation to other club areas, the location of equipment, performance
appraisal forms used within the department for the specific job, and specific por-
tions of the employee handbook that relate to job responsibilities. During this
330 Chapter 8
Exhibit 6 Sample Items in an Orientation Kit
•• Current organization chart

•• Projected organization chart (illustrating succession)
•• Map of the club
•• Key terms unique to the club industry, the club, and the job
•• Copy of the club’s employee or policy handbook
•• Copy of the club’s union contract (if applicable)
•• Copy of specific job goals and descriptions
•• List of holidays and other days off given to club employees
•• List of employee fringe benefits
•• Copies of performance appraisal forms
•• Copies of other club forms (requisitions, expense forms, and so on)
orientation phase, new employees also should be taken on a tour of the property
and introduced to personnel with whom they will work and come in contact.
Regardless of how managers go about their orientation process, the following
five approaches should be avoided:
•• Emphasis on paperwork. When too much emphasis is placed on human
resources paperwork, employees may feel like they are not really part of the
company.
•• Mickey Mouse approach. When new employees are assigned easy jobs so
they can “get a feel for the work,” they may believe that they are not really
considered capable or important. (The Mickey Mouse approach is so-called
because of the laxity of the program—it does not refer to the Disney approach
to orientation.)
•• Sketchy overviews. When new employees are given vague or incomplete infor-
mation and then are tossed into jobs to sink or swim, they often sink.
•• Suffocation. When new employees are given too much information, they often
feel overwhelmed.
•• Unrealistic job previews. Research has shown that employees who receive real-
istic job previews that communicate the real advantages and disadvantages of
a position are much more likely to remain with a company.
Orientation Kits
Many club managers prepare orientation kits that new employees can take home
with them to study (see Exhibit 6). This enables employees to review the material
and share information with their families. While going through their orientation
kits, employees may think of questions to ask on the following day.
Although Exhibit 6’s list is a good start, clubs should consider adding the fol-
lowing items to their orientation kits:
•• Copies of EEOC notices, and company policies regarding compliance
•• Recent club newsletters
•• Names and telephone numbers of other employees in the department
•• A schedule of remaining orientation sessions
•• Information regarding family activities associated with the club (a summer
picnic for employees and their families, for example)
Much of this information can also be made available on the club’s website. If
this distribution method is chosen, limiting access to some of the online orienta-
tion information to specific applicants may be desirable.
Performance Appraisals
Performing an employee evaluation or performance appraisal is somewhat like
telling someone, “Here’s what I really think of your new baby.” It is a very hard
thing to do effectively. However difficult they might be to do well, performance
appraisals must be done, because they form the basis of what employees will
attempt or be expected to accomplish during the next evaluation period. Without
some sort of evaluation, employees have no direction and often believe they are
doing great when in fact they may not be doing very well in at least some aspects
of their jobs. Because so many managers don’t use performance appraisals cor-
rectly, appraisals often fail to achieve their intended purpose.
Performance appraisals are subject to human emotions, human judgments,
and, therefore, human errors. They are never likely to be completely objective.
But does this mean that club managers should junk the system and not evaluate
employees at all? The answer is clearly no—one of the primary management roles
is to get the most out of employees, and to do this, club managers need some sys-
tem of performance appraisal.
Functions of Performance Appraisals

If you were to ask club managers why their clubs use a performance appraisal sys-
tem, you would likely get a lot of different answers. This is because performance
appraisals can be used for many purposes:
•• Performance feedback. Appraisals are primarily used to provide feedback to
employees. It is imperative that managers tell employees how they are doing
on a regular basis. If managers don’t do this, employees might believe any-
thing along a spectrum between “I must be doing very badly” to “My per-
formance must be perfect.” Employees typically believe that silence means
everything is okay. By providing feedback during a regularly scheduled per-
formance appraisal, managers can prevent a lot of employee guessing and
misunderstanding. Remember that when a manager says nothing, employees
may believe that their performance is totally acceptable.
332 Chapter 8
•• Training and development. Managers can use appraisals to determine which

employees require additional training and which may be ready to be pro-
moted. Appraisals can also be used to determine training needs on a depart-
mental basis. For example, if the appraisals of several department employees
show that all of them need to work on member relations, that tells the depart-
ment head that he or she probably should provide training in this area to
everyone in the department.
•• Personnel decisions. Appraisals can also be used to help managers reach per-
sonnel decisions. When used in this way, performance appraisals provide a
good way to separate poor performers from good ones, and often figure into
promotion, discipline, training, and merit-increase decisions. In discharge
and grievance cases, performance appraisals give managers documentation
that might be useful in grievance proceedings or lawsuits.
•• Selection validation. Sometimes appraisals are used in ways that don’t directly
affect the employees at all. The goal during a club’s selection process is to
predict which candidates will perform the best and which will fit in the best.
These predictions should be tested to determine whether the selection system
is working properly. Performance appraisals are excellent yardsticks with
which to measure the selection process. For example, if most of the recently
hired employees are rated as poor performers during their performance
appraisals, this might be evidence that the selection process is flawed.
Common Appraisal Errors

Club managers can make many errors when trying to evaluate an employee; the
following list briefly describes some of the most common errors:
•• Recency errors. People tend to remember best those events that happened
most recently. A club manager is more likely to remember what employees
did a few weeks before their performance appraisals than what they did six or
eight months ago. Unless club managers keep a record throughout the year, it
is likely that employees will only be judged on recent performance.
•• Past-anchoring errors. Managers tend to rate an employee’s performance
close to what it was rated in the past. If an employee’s ratings in the past
were high, managers tend to rate the employee high again even if the ratings
should be lower this time; the reverse is true for employees who have been
rated low in the past.
•• Halo errors. Halo errors occur when managers judge employees positively
based primarily on the basis of a single trait, behavior, or action. A typical
employee will perform some tasks well, others poorly, and others about aver-
age, but the halo effect causes a manager to rate an employee high in all areas
if the employee does well in one area that is important to the manager.
•• Leniency errors. Some managers give more lenient ratings to employees than
they deserve. If a large enough sample were taken, we would expect that
employee ratings would approximate the shape of a bell curve, but this is
not the case with all managers. For example, if ratings of 1 to 5 were given to
all employees (1 = poor, 5 = excellent), we would expect that the majority of
employees would be rated near the midpoint on the scale. Managers who are
more lenient than others would likely give more ratings near 5 than near 1. As
a result, the ratings overall would be higher than normal.
•• Severity errors. Severity errors are the reverse of leniency errors. As a result
of severity errors, more employees would be rated nearer the lowest point on
the scale (1) than near the high point.
•• Central-tendency errors. Some managers tend to rate all employees, regard-
less of their performances, near the midpoint on a scale. Therefore, in this
case many more employees would be rated near the midpoint than would be
normal.
The problems caused by leniency, severity, and central-tendency errors
are magnified in the club industry because club managers tend to change jobs
frequently. As a result, club employees are often rated by a new manager. If
the first manager tended to be lenient and the second severe, it would look like
employee performance was going down when in fact no change had occurred. On
the other hand, too-severe ratings from the first manager and too-lenient ratings
from the second manager could result in the erroneous conclusion that employees
were getting much better (and possibly deserved raises and promotions) when
the employees had not actually improved their performances. Central-tendency
errors make employee appraisals subject to the same distortions: if the old man-
ager tended to rate all employees in the middle of the scale, and the new manager
tends to be more lenient, then improvement would be noted when none occurred;
the reverse would be true if the new manager tended to be severe.
Another problem with leniency, severity, and central-tendency errors is that an
employee’s rating may depend more on who rates him or her than on his or her actual
performance. This can lead to injustices. Employees in one department, for example,
may be passed over for promotions or career-development assignments because their
manager tends to be severe, while employees in another department may receive
raises and plum assignments simply because their manager is more lenient.
Who Should Evaluate Performance?

An employee’s immediate supervisor usually is responsible for the employee’s
evaluation. Sometimes, however, even immediate supervisors don’t spend much
time with their employees. Club managers who don’t spend much time with an
employee might ask themselves if they can adequately evaluate the employee’s
performance.
A case can be made that, for many club employees, peers are best suited to
evaluate employee performance because of the high amount of contact employees
have with each other, as well as the important role teamwork plays on the job.
However, some club managers may want to include peer appraisals as supple-
ments to appraisals by immediate supervisors rather than leave the appraisals
completely up to peers.
Some clubs allow employees to evaluate their manager’s performance.
Employees know from experience how well-developed a manager’s interpersonal
334 Chapter 8
skills are, how well he or she delegates authority, and how well the manager leads.
This is typically called a 360-degree evaluation, because everyone evaluates every-
one else. Using this type of appraisal calls for managers to trust their employees,
and employees to trust their managers. Unless the appraisal is strictly quantitative
in nature (and therefore protects the anonymity of the employees), it may be dif-
ficult to establish 360-degree evaluations, because managers (who ultimately hold
reward and punishment power over employees) might find out who said what.
The old adage that we are always harder on ourselves than on others is not
always true when it comes to performance appraisals; self-appraisals tend to be
more lenient than appraisals by others. Self-appraisals can be inflated by self-
serving bias. Individuals tend to give themselves extra credit for successes, and
they tend to blame others for failures. Another problem with this form of assess-
ment involves inflation due to “blind spots.” Individuals have a tendency to guess
high when they lack reliable insight into themselves or their job performance. On
the other hand, some employees may rate themselves too low. For example, even
though some employees may do an excellent job, they may have low self-esteem
because they did not finish high school or college; as a result, they may rate them-
selves lower than they should. Nevertheless, when used with other appraisal
methods, self-evaluations can help managers establish goals and objectives for
employees.
Club employees and managers could also be evaluated by club members. This
seems to be a logical appraisal method, since the ultimate goal of any club is mem-
ber satisfaction. Unfortunately, collecting accurate information from members is
difficult. Many members do not fill out such items as comment cards unless they
are either extremely pleased or extremely displeased. Members also usually do
not want the responsibility of evaluation. Therefore, while this approach looks
good in theory, it is often difficult to do in practice.
Appraisals can also be conducted by third parties brought in specifically for
that purpose. Since the club is new to them, third parties can often see things that
managers do not see. However, sometimes third-party appraisals can be more
costly. Managers must determine whether such systems are viable for their club.
Some organizations are moving to online performance appraisals. Using tech-
nology appears to cut some of the costs associated with appraisals. Overall, employ-
ees appear to rate online appraisals more favorably than traditional approaches on
both rater accountability and employee participation in the process.13
How Often Should Appraisals Be Conducted?

While research has consistently shown that performance appraisals should be
conducted more than once or twice a year, this is the norm. The problems asso-
ciated with annual or biannual performance appraisals relate to the appraiser’s
difficulty in remembering events that transpired as long as twelve months ago.
This problem can be helped somewhat by thorough note-keeping throughout the
year, but this will not entirely correct the problem. Unless club managers take the
time to make very exhaustive notes—and few have the time or inclination to do
so—they still must rely on their memory for the details associated with behaviors
and actions on dates long past.
Exhibit 7 Example of Paired Comparisons Ranking
Employees to be ranked: Macaulay, Simpson, Taylor, Nathan
Macaulay is better than Simpson

Simpson is better than Taylor
Nathan is better than Simpson
Macaulay is better than Taylor
Macaulay is better than Nathan
Nathan is better than Taylor
Macaulay is ranked #1
Nathan is ranked #2
Simpson is ranked #3
Taylor is ranked #4
If at all possible, club managers should try to conduct performance apprais-

als quarterly or even more often in cases in which managerial turnover is high.
An alternative to this is to conduct appraisals immediately after the completion of
specific assignments or special projects.
Performance Appraisal Methods

Ranking Methods. Three ranking methods are commonly used. Each eventually
results in ranking employees from best to worst or from first to last. The three
methods are: (1) simple or straight ranking, (2) alternative ranking, and (3) paired
comparisons.
In straight ranking, a manager simply uses his or her best judgment to rank
all employees from best to worst. Alternative ranking closely resembles straight
ranking; the difference between the two is in how the ranking is determined. In
alternative ranking, the manager lists each of the employees on a separate sheet
of paper and then chooses the best and puts him or her at the top, then chooses
the worst and puts him or her at the bottom, chooses the second-best and places
him or her second from the top, then chooses the second-worst and places him or
her second from the bottom, and so on until the list is exhausted. Paired compari-
son involves comparing each employee to each other employee directly on each
job criterion. An example of this method is presented in Exhibit 7. The simplest
way to compute final rankings in this method is to count the number of times an
employee’s name appears on the left side of the chart. The employee whose name
appears most often is ranked best and the one whose name appears least often is
ranked worst.
Forced Distribution. The forced distribution method of appraisal relies on the
assumption that, under normal circumstances, the final rankings of all employ-
ees would conform statistically to a bell-shaped curve. Therefore, it assumes that
about 5 percent of employees are exceptional, 5 percent are very poor, 10 percent
are outstanding, 10 percent are poor, 15 percent are above average, 15 percent are
below average, and the remaining 40 percent are average. An example of employ-
ees ranked using this method is presented in Exhibit 8.
336 Chapter 8
Exhibit 8 Forced Distribution Scale
Graphic Rating Scale. The most widely used method of performance appraisal
is the graphic rating scale. When using this method, club managers typically
rank employees on from ten to fifteen criteria. The criteria used in the ratings usu-
ally contain such items as work characteristics, quality of work, quantity of work,
dependability, attendance, job knowledge, and so on (see Exhibit 9). The criteria
ratings can then be added together to compile a score for each employee.
Behaviorally Anchored Rating Scale. Like the graphic rating scale, the behavior-
ally anchored rating scale (BARS) requires raters to rate employees on a scaled
continuum—from poor to excellent, for example (see Exhibit 10). However, in this
case, the scale defines dimensions to be rated in behavioral terms, and critical inci-
dents are used to describe the various levels of performance. Therefore, there is
less reliance on raters’ opinions of what is good and bad or high and low perfor-
mance. The critical incidents found on a BARS appraisal provide exact examples
of what are assumed to be good and bad behaviors.
Narrative Essays. When using the narrative essays method, club managers simply
write essays that describe the employees they are rating. If a rater takes care to
write essays that present a good picture of employee performance, they are very
useful in filling gaps left by more quantitatively oriented methods.
Critical Incidents. When using the critical incidents method, club managers keep
a log of critical incidents in which each employee was involved. Typically, the inci-
dents focus on behaviors instead of skills, and usually on behaviors that are either
exceptionally desirable or exceptionally undesirable. An employee who interrupts
his normal duties to help an elderly member to her car would be an example of a
Exhibit 9 Sample Graphic Rating Scale
5 4 3 2 1
Quality of skills performance
Exceptional Average Poor
Above average Below average
5 4 3 2 1
Quality of behavioral performance
5 4 3 2 1
Attendance
5 4 3 2 1
Ability to work with others
Exhibit 10 Sample Behaviorally Anchored Rating Scale
Position: Restaurant Server Dimension: Service performance
Excellent 10 points Consistently displays excellent technical

and behavioral skills during service.
9 points
Good 8 points Usually displays both technical knowledge

and behavioral skills during service.
7 points
Average 6 points Has technical knowledge and knows what

behaviors are desired, but often does not
apply knowledge or display behaviors
5 points desired.
Below Average 4 points Has only limited technical knowledge and

often does not display desired behaviors.
3 points
2 points
Poor 1 point Poor technical knowledge, rarely displays

desired behaviors.
338 Chapter 8
Exhibit 11 Steps in Establishing an MBO-Based Appraisal

1. The employee proposes goals for the upcoming evaluation period.
2. The employee and manager discuss goals, modify them as necessary, and reach
an agreement on specific goals; this agreement is recorded in writing.
3. The employee and manager agree on specific action plans to attain the goals.
4. The manager informally encourages goal attainment during the evaluation period.
5. At the end of the period, the employee and manager meet again to discuss
accomplishments and agree on the extent to which the goals were attained.
6. The process is repeated.
positive critical incident that you want others to imitate. Arguing in front of guests
might be an example of a negative critical incident.
Management by Objectives. Unlike the other appraisal methods we’ve described,
management by objectives (MBO) uses a system of establishing goals jointly in
a meeting between employees and managers (or, since it is frequently used to
evaluate managers, between a manager and his or her superior). Also during this
meeting, specific plans for attaining each goal are established. Finally, measure-
ments are agreed on between the manager and employee. Typically, MBO requires
regular meetings to assess progress on the goals established in the initial meeting.
Ultimately, employees are graded on their attainment of the goals. See Exhibit 11
for steps in establishing an MBO-based appraisal.
Discipline
Most employees want to do a good job and want to keep their jobs. However,
problems invariably arise that require managers to discipline and, in some cases,
discharge some employees. In that sense, discipline is an indispensable manage-
ment tool. However, it is also one of the hardest tools for managers to use. Too
many managers view discipline simply as a way to punish bad behavior. Disci-
pline should be much more than that. In fact, when used properly, discipline is a
very effective management tool for encouraging desired behaviors.
The goal of a discipline program should be the promotion of positive employee
behaviors. To effectively lay the groundwork for a discipline system that promotes
positive behaviors, club managers must first clearly establish the club’s rules and
then communicate to employees how those rules should be carried out. This com-
munication can occur via general orientation, training sessions, job descriptions,
performance standards, performance appraisals, posted notices, and employee
handbooks.
Approaches to Discipline
Club managers must choose between two substantially different types of discipline
systems. One type of system, normally referred to as the traditional approach to
discipline, emphasizes administering punishment after an employee fails to fol-
low the club’s norms and standards. The other type of system, normally referred
to as positive or preventive discipline, attempts to direct employee behavior by
emphasizing correct behavior rather than punishing incorrect behavior.
Traditional Discipline. There are two common approaches to traditional disci-
pline: the hot-stove approach and the progressive-discipline approach.
If you touch a hot stove, you immediately get burned. With the hot-stove
approach to discipline, if someone breaks a rule, he or she is immediately disci-
plined. This approach has five foundations:
•• Immediacy—corrective action must be taken immediately after the infraction
occurs. This links punishment with the unwanted behavior.
•• Consistency—corrective action must be consistent; that is, a hot stove will
burn everyone to the same degree and for the same type of infraction.
•• Warning—managers must clearly state company rules and the consequences
for breaking those rules; in other words, employees must be warned that “hot
stoves will burn.”
•• Impersonality—the behavior is punished, not the person.
•• Appropriateness—the degree of punishment must equal the extent of the
infraction.
This system makes a lot of sense to many managers, because it appears to be
fair to all employees, and because it establishes which rules result in which pun-
ishments. However, there are problems with this system. Oddly, the fact that the
hot stove does not discriminate is the biggest problem. For example, an employee
who joined the club last week and may not fully understand all the rules will be
“burned” for breaking a rule as badly as an employee who breaks the same rule
but has been with the club for fifteen years and has a clear grasp of the rules.
Like the hot-stove approach, progressive discipline also relies on a clear and
complete definition of behaviors that will be punished and the type of punish-
ment that will be meted out for each infraction. A progressive-discipline program
might include, for example, a rule that an employee who is late for work twice will
receive an oral warning, an employee who is late three times will receive a written
warning, an employee who is late four times will be suspended, and so on.
Most progressive-discipline programs include four steps:
1. Oral warning—either formal or informal
2. Written warning—formal warning, with a copy that is placed in the employ-
ee’s file
3. Suspension—usually without pay
4. Discharge
One of the reasons many club managers like the hot-stove approach and the
progressive-discipline approach is that both approaches bring order to the disci-
pline process. Both clearly establish ground rules and both emphasize consistent
340 Chapter 8
and non-discriminatory treatment of rule breakers. As managers know, however,

it is a lot easier to describe these systems on paper than to carry them out. Man-
agers want to discriminate in their discipline programs because some employ-
ees are better performers than others, some deserve a break, and some are more
likely to succeed than others. Neither the hot-stove approach nor the progressive-
discipline approach allows this type of discrimination, however. Any manager
who discriminates when using either of these systems risks grievances, discrimi-
nation charges, or lawsuits. In addition, both traditional approaches focus on
symptoms rather than causes for poor performance. Rule-breaking is usually a
symptom of an underlying problem, not the cause of the problem.
Positive Discipline. Proponents of positive or preventive discipline point out that
the difference between this approach and traditional approaches is that the focus
is on the cause of dysfunctional behavior rather than on the behavior itself. Posi-
tive discipline places disciplinary emphasis on recognizing and reinforcing good
performance, rather than recognizing and punishing bad performance. In their
classic book The One Minute Manager, authors Kenneth Blanchard and Spencer
Johnson noted that “catching people doing things right is a powerful management
concept.”14
Critical steps in a positive disciplinary system, very similar to those used in
progressive discipline, include the following:
1. Oral reminders
2. Written reminders
3. Decision-making leave—usually paid
4. Discharge
In each stage of this process, except discharge, the emphasis is on positively
encouraging good behavior. An oral reminder, for example, would emphasize
what should have been done in the situation in question—not what was done
wrong. Step 3, decision-making leave, differs from progressive discipline’s step 3,
suspension, in that a suspension is usually designed merely to punish employees
and remove them from the premises. Decision-making leave requires employees to
think about their actions during their day off and, when they report back for work,
tell their managers how they (the employees) can improve their performance.
Critics of positive discipline contend that the “decision-making day off” encour-
ages employees to perform poorly to get a paid day off. However, most employees
are embarrassed by this form of discipline and will do their best to avoid it.
Appeal Mechanisms
A discipline program should have built into it a system for appeals by employees.
A well-communicated appeal process allows employees to present their side of an
issue; this gives employees a voice in how issues are settled. Additionally, appeal
mechanisms provide evidence in court cases of managerial efforts to give employ-
ees due process. There are four commonly used types of appeal mechanisms:
•• Hierarchical system
•• Open-door policy
•• Peer review
•• Ombudsman
Hierarchical System. The hierarchical system emphasizes an organization’s chain of
command. According to this system, employees who believe they were unfairly dis-
ciplined appeal first to their immediate supervisor. If unsatisfied, employees appeal
to one level higher in the organization. If still unsatisfied, employees can appeal to
the next highest level, and to each succeeding level until the employees are satis-
fied or all levels are exhausted. Appeals are generally made in writing.
Open-Door Policy. Unlike the hierarchical system, which emphasizes the chain
of command, an open-door policy allows employees to appeal to any manager in
the organization, regardless of the manager’s position. While this works in many
cases, in some it fails because managers are reluctant to overrule lower-level man-
agers or managers in other departments. As a result, appeals are often simply
referred back to the employee’s immediate supervisor. Another disadvantage of
an open-door policy is that treatment is sometimes inconsistent. For example, one
manager might work diligently to ensure that the appeal process is fair and that
employees have a chance to be heard, while other managers may take this respon-
sibility lightly.
Peer Review. Peer-review appeal systems typically require the formation of a
committee of employees and managers. This committee or appeal board hears
appeals and rules on issues brought before it. Employees are usually elected to
serve on the board, while managers are usually appointed. An advantage of this
system is that it allows employees to participate directly in the appeal process.
As a result, employees often believe that, regardless of the outcome, their appeals
were conducted fairly.
Ombudsman. The ombudsman system is widely used in governments, colleges,
and universities but has not, as yet, been widely accepted in industry. This system
involves the use of mediators or ombudsmen who listen to both sides of a case and
attempt to mediate an acceptable solution. Ombudsmen typically have no author-
ity to issue judgments in the event that the two sides cannot agree.
Discharge: The Last Resort

The same managers who use discipline strictly as a punishment probably also view
discharge as the ultimate punishment for employees who fail to perform. Many
experts believe that this is an incorrect view of discharge. When an employee is
discharged, who is really punished the most? Is it the employee who must find
a new job, or is it the manager and his or her organization that must now find
a replacement for the discharged employee? Each discharged employee costs an
organization in time and money: the direct expenses involved in finding a replace-
ment as well as indirect expenses such as the lower productivity of a new employee
versus a veteran employee. So, in the final analysis, who is punished the most by a
discharge? And for that matter, who really is at fault when a discharge is required?
Is it the employee being discharged, or is it the manager? In Japanese companies,
342 Chapter 8
managers who discharge employees are viewed as failures because they were
unable to help their employees become productive members of the organization.
An increasing number of U.S. companies are beginning to hold similar views.
Club managers should use discharge only as a last resort. The employee can
be severely affected by the loss of the job, and the employer can end up in court if
the discharge is not properly handled. Therefore, discharging an employee should
be taken extremely seriously and approached with great caution.
Before a club manager exercises this final option, he or she should ask the fol-
lowing questions. If the answer is yes to each of these questions, the manager can
safely proceed with the discharge. If the answer is no to any of them, the manager
should correct the situation described by the question prior to discharging the
employee; otherwise the manager can be held liable for wrongful discharge in
court:
•• Were the rules that were broken reasonable and important to the club? Did
management explain to the employee why the rules were important?
•• Were the rules clearly and fairly communicated to the employee? Was the
employee advised clearly in advance that certain behaviors would result in
discharge?
•• Did management make a sincere effort to identify poor performers and cor-
rect their behaviors or actions?
•• Was the appraisal process fair, complete, and equitable?
•• Was the evidence that precipitated the discharge substantial and reliable?
•• Is the punishment for breaking rules applied consistently to all employees?
•• Is the discipline (in this case, discharge) equal to the seriousness of the offense?
To repeat, a “no” response to any of these questions can mean a club manager
is vulnerable to a wrongful-discharge lawsuit. Wrongful-discharge suits can be
extremely serious to a club. Employees can successfully sue their employers for
back pay, front pay, and punitive damages in wrongful-discharge cases. Wrongful
discharge lawsuit settlements are usually kept secret; only about 3 percent of such
settlements are ever made public. However, those settlements that are known typi-
cally cost organizations between $100,000 and $1 million per individual.15
Some managers know it is hard to discharge employees, so they attempt
to “get rid of them” by transferring or demoting them, hoping that the employ-
ees will simply quit. However, such actions also may be the basis for wrongful-
discharge suits. A transfer can be viewed by the courts as a wrongful discharge
if it is used as a method of avoiding a termination or layoff, and a demotion that
involves no record of wrongdoing on the employee’s part can be viewed as a
wrongful discharge. Courts typically view transfers and demotions as wrongful
discharges if the pay, benefits, responsibilities, travel, and so on of the new jobs
are substantially different from that of the old jobs. Employers are even held liable
for voluntary resignations in cases where management makes working conditions
so bad that employees resign. In such cases, deliberate intent is the key element
in court. To win such cases, employers typically have to prove that they could not
have foreseen that the employee would resign as a result of a transfer or other per-
sonnel decision that resulted in the resignation. The easiest wrongful-discharge
lawsuits are those in which management unfairly applied organizational rules.
While many companies have gone to great lengths to establish sophisti-
cated systems to avoid wrongful discharge suits (complete documentation,
progressive-discipline systems, and so on), they often forget to ensure that managers do
not actually discharge wrongly. Unfortunately, this is the single area in which man-
agers make the most mistakes. While it is difficult to tell managers that they must
fairly enforce the same rules and penalties at all times, managers must do this if
companies wish to avoid or win wrongful-discharge cases. To illustrate how hard it
is to always be fair and consistent, consider the following simple example: Employee
A is an outstanding performer who is well liked by members, management, and
fellow employees. However, Employee A has a habit of tardiness. Employee B is a
poor performer who is not well liked by members, managers, or fellow employees.
This employee also has a habit of tardiness. A manager who “solves” the problem
with Employee B by discharging him for habitual tardiness but does not discharge
Employee A is opening the door for a wrongful-discharge suit.
The Discharge Interview. If a discharge becomes necessary, and a manager is

sure that everything has been done properly so that the employee is not being
wrongfully discharged, then the manager should schedule a discharge interview
with the employee. The purpose of a discharge interview is to communicate to the
employee the history that has led up to the discharge, to explain the reasons the
manager must take such severe disciplinary action, and to complete the discharge.
Discharging an employee is never easy or pleasant; most discharge interviews are
emotionally charged, and managers sometimes are even physically attacked by
enraged employees. However, there are some simple guidelines club managers
can follow that should make the task less difficult (see Exhibit 12).
Discharge and Employment at Will. The doctrine of employment at will essen-

tially holds that management has the right to terminate any employee at any time
for any reason. Throughout the history of the United States, this doctrine has been
the predominant rule that guided employer-employee relations.
While the original employment at will concept was fairly simple, state leg-
islatures have passed laws and various state and federal courts have issued rul-
ings that make employment at will much more complicated. There are a vari-
ety of exceptions to employment at will that have been approved in case law;
whistleblowers cannot be fired for revealing unsafe or illegal work practices, for
example. Some states have exceptions to employment at will that others do not.
Many have implied-contract exceptions, for example; in such states, an implied
contract may be formed when an employer makes oral or written representations
to employees regarding job security or outlines procedures that will be followed
when the employer disciplines or terminates employees; in such cases, managers
in these states can no longer claim that an employment at will relationship exists
between the organization and its employees. All of these exceptions have made
employment at will a dangerous concept for employers to rely upon, especially
in some states.16
344 Chapter 8
Exhibit 12 Guidelines for Discharge Interviews
•• Make sure all supporting evidence is carefully read to the employee and is
available during the discharge. This documentation should include records of all
disciplinary action against the employee and past conditions and terms of such
action.
•• Explain specific reasons for the discharge. Managers cannot get by with simply
telling an employee that “it didn’t work out.”
•• Respect the dignity of the employee during the interview. The fact that the
employee did not work out in this case does not mean that he or she will not find
suitable employment elsewhere.
•• Avoid a personal confrontation with the employee.
•• Reasons for the discharge should remain confidential at all times; this policy
should be clearly stated to the employee during the interview.
•• Use the meeting to find out what went wrong (if applicable; if the employee is
being discharged for stealing, for example, this would not apply). Someone in
the organization thought enough of the employee to hire him or her in the first
place. This is the final opportunity to learn the employee’s side of the story.
•• As a general rule, have a witness attend the interview.
•• Most states require that discharged employees be paid in full at the time of dis
charge. This and other required paperwork should be completed well in advance
of the interview.
•• Make the employee aware of any grievance mechanisms available within the
club.
These two versions of the relationship between employers and employees—

“employment at will” versus “contracts”—have been the grounds for a great deal
of controversy recently. Managers typically want to claim that they have the right
to employ whom they want, when they want. In the past, this right usually was
upheld in court. However, the pendulum has swung in favor of employees in
recent years. As a result, many employee-relations experts now believe that man-
agers no longer have the right to enforce employment-at-will arrangements with
their employees.
Some experts have contended that managers can retain the employment-at-
will right by simply notifying their employees that this is their policy. For exam-
ple, managers can include a clause in the employee handbook that states that the
employer has the right to employ at will and is not bound by any other contract,
and even require each employee to sign this clause prior to employment. Many
companies have included such clauses in their handbooks. However, thirty state
courts have ruled that the existence and use of employee manuals imply a con-
tract between employer and employee.17 These rulings were made primarily on
the basis of language in the employee manuals that described benefits, grounds for
discipline, or affirmative-action statements—all considered evidence of implied
employment contracts.
Although recently some states have passed new “at-will” employment laws,
in effect condoning at-will employment, the bottom line for club managers is that
employment at will is very difficult to sustain. In fact, some human resources
experts believe that managers should abandon employment at will altogether.
According to these experts, such policies often lead to reduced risk-taking and
lower levels of innovation by employees who merely do what they have to do in
order to survive in the organization.
Endnotes
1. Steven M. Gutierrez and Brad Williams, “The Siren Call of ‘Private Club’ Exemptions
to the Federal Discrimination Statutes,” retrieved from www.hollandhart.com/Email/
SirenCallPrivate ClubExemptions.pdf_Oct.15,2010; originally published in the CMAA
Premier Club Services Legal Newsletter, July–August/September 2009.
2. Ibid., p. 4.
3. Ibid.
4. Hospitality Law, vol. 20, no. 6 (2005), p. 4-4.
5. Ian Buick and Mahesh Thomas, “Why Do Middle Managers in Hotels Burn Out?”
International Journal of Contemporary Hospitality, vol. 13, no. 6 (2001): 304–310.
6. George H. W. Bush (1992); remarks of President George Bush at the signing of the
Americans with Disabilities Act, www.gov/ada/bushspeech.html; retrieved Septem-
ber 20, 2010.
7. “Comparison Between the ADA Restoration Act and the ADA Amendments Act.”
Association of University Centers on Disabilities; www.aucd.org/docs/Chart%20
Comparing%20ADARA%20to%20ADAAA%2020080608.pdf; retrieved September 28,
2010.
8. www.csun.edu/~sp20558/dis/reasonable.html; retrieved October 25, 2010.
9. Claudio Fernandez-Araoz, Boris Groysberg, and Nitin Nohria, “A Definitive Guide to
Recruiting in Good Times and Bad,” Harvard Business Review (May 2009).
10. I. Brynside, “Six Clicks of Separation: The Legal Ramifications of Employers Using
Social Networking Sites to Research Applicants,” Vanderbilt Journal of Entertainment and
Technology Law, vol. 10 (2008), p. 445; accessed online at www.2.cob.ilstu.edu/ kjmount/
Presentations/2008%20Book%20of%20Readings.pdf#page=35, on October 25, 2010.
11. Tammy Alexander, “Questionable Qualifications: An In-Depth Look at Diploma
Mills,” InfoSecCD ’07, proceedings of the 4th annual conference on information secu-
rity curriculum development; http://portal.acm.org/citation.cfm?id=1409908.1409929;
accessed November 2, 2010.
12. Gerald E. Calvasina, Richard V. Calvasina, and Eugene J. Calvasina, “Use of Credit
Checks in Employee Selection,” Proceedings of the Academy for Studies in Business,
Las Vegas, Nevada, October 13–16, 2010; accessed online on October 28, 2010, at http://
alliedacademies.org/public/Proceedings/Proceedings27/ASB%20Proceedings%20
Fall%202010.pdf#page=7.
13. Stephanie C. Payne, Margaret T. Horner, Wendy R. Boswell, Amber N. Schroeder,
and Kelleen J. Stine-Cheyne, “Comparison of Online and Traditional Performance
Appraisal Systems,” Journal of Managerial Psychology, vol. 24, no. 6 (2009), pp. 526–544.
346 Chapter 8
14. Kenneth Blanchard and Spencer Johnson, The One Minute Manager (New York: Wil-
liam Morrow and Company, Inc., 1982).
15. www.ehow.com/facts_6819962_average-wrongful-termination-settlement.html;
accessed November 19, 2010.
16. Scott A. Moss, “Where There’s At-Will, There Are Many Ways: Redressing the Increas-
ing Incoherence of Employment At Will,” University of Pittsburgh Law Review, vol. 67,
no. 2 (Winter 2006); Marquette Law School Legal Studies Paper No. 06-06; available at
http://ssrn.com/abstract=740825; accessed online on November 21, 2010.
17. Gerard Panaro, “Don’t Let Your Personnel Manual Become a Contract,” Association
Management, vol. 40, no. 8 (1991): 82.
Key Terms
alternative ranking—A method of ranking employees in which a manager lists
each of the employees on a separate sheet of paper and then chooses the best and
puts him or her at the top, then chooses the worst and puts him or her at the bot-
tom, chooses the second-best and places him or her second from the top, then
chooses the second-worst and places him or her second from the bottom, and so
on until the list is exhausted.
application blank—A form used by companies to solicit background and other
information from prospective employees.
behavioral anchored rating scale (BARS)—A method of evaluating employees in
which managers rate employees on specific behaviors displayed.
bona fide occupational qualifications (BFOQs)—Qualifications on the basis of
which employers are allowed to legally discriminate during selection and promo-
tion.
central-tendency error—An error that occurs when managers tend to rate all
employees, regardless of their performance, near the midpoint on a scale.
critical incidents—A method of evaluating employees in which a manager keeps
a log of significant incidents in which each employee was involved; employees are
rated on how well they performed during these incidents.
employment at will—An employment policy stipulating that employers can dis-
charge employees at any time for any reason.
essential functions of the job—Language in the Americans with Disabilities Act
that specifies that the disabled must not be barred from a job if they can perform
the functions that are fundamental to performing the job.
forced distribution—An evaluation method in which a manager ranks employees
on a bell-shaped curve.
general property orientation—A formal program presented by an employer to
introduce to a new employee the organization’s mission and values, and to cover
such issues as insurance and benefits; usually conducted shortly after hiring.
graphic rating scale—A method of evaluating employees in which managers rate
employees on specific, measurable criteria.
halo error—An error that occurs when a manager rates an individual highly in
all categories just because the individual possesses one or two positive traits or
behaviors that the manager values.
leniency error—An error in a performance appraisal that results when managers
rate employees too positively.
management by objectives (MBO)—A method of evaluating employees in which
a manager meets with an employee and, with the employee’s input, sets specific
goals for the employee to attain; the manager and the employee meet later to assess
the extent to which these goals were achieved.
narrative essay—A method of evaluating employees in which managers write,
about each employee, an essay that describes the strengths and weaknesses of the
employee.
paired comparison—A method of ranking employees in which each employee is
compared on a one-to-one basis with each other employee to determine an over-
all ranking. The employee who “wins” the most comparisons is ranked first, the
employee who has the second highest number of wins is ranked second, and so on.
past-anchoring error—An error in a performance appraisal that results when
managers rate employees on the basis of previous ratings.
reasonable accommodation—What employers must do to make their workplaces
accessible to people with disabilities. Examples of reasonable accommodations
include widening work aisles, lowering countertops, and installing ramps.
recency error—An error that results when managers or interviewers base some-
one’s evaluation primarily on their most recent behaviors or responses.
semistructured interview—An interview in which an interviewer asks both
planned and unplanned questions. Typically, the unplanned questions allow inter-
viewers to ask for specific information about broad issues raised by the structured
questions.
severity error—An error in a performance appraisal or job interview that results
when managers rate employees or job applicants too severely.
specific job orientation—The process of introducing new employees to the spe-
cific tasks and behaviors of their jobs.
straight ranking—A ranking method in which a manager simply uses his or her
best judgment to rank all employees from best to worst.
structured interview—An interview in which all questions are prepared in
advance and are asked in a specific order.
unstructured interview—An interviewing style in which no questions are planned
in advance. Instead, an interviewer directs the interview down whatever path
seems appropriate at the time.
wrongful discharge—A charge brought against an employer for terminat-
ing employees without due process or without substantial efforts to first call an
employee’s attention to improper work habits and to help the employee change;
terminating an employee’s employment without sufficient reason.
348 Chapter 8
Review Questions
1. What does Title VII of the Civil Rights Act of 1964 prohibit?
2. How are disabilities defined under the Americans with Disabilities Act?
3. What are some of the advantages and disadvantages of internal recruiting?
external recruiting?
4. What are some potential problems with pre-employment tests?
5. What are the steps in a club’s orientation program for new employees?
6. What are the steps in the training cycle?
7. What are some common employee-appraisal errors club managers should
avoid?
8. What are some of the questions club managers should ask themselves before
discharging an employee, in order to make sure they will not be guilty of
wrongfully discharging the employee?
Additional Reading
Belasco, James A., and Ralph C. Stayer. Flight of the Buffalo: Soaring to Excellence,
Learning to Let Employees Lead. New York: Warner Books, 1993.
Blanchard, Kenneth, and Spencer Johnson. The One Minute Manager. New York:
William Morrow and Company, Inc., 1982.
Carlson, Eugene. “The Business of Background Checking Comes to the Fore.” Wall
Street Journal, August 31, 1993.
Chaudron, David. “Avoid the Training Waste.” HR Focus, Vol. 72, No. 12 (1995).
Fuschsberg, Gilbert. “More Employers Check Credit Histories of Job Seekers to
Judge Their Character.” Wall Street Journal, May 30, 1990.
Gilbert, Evelyn. “Clarity Seen Needed in Disability Act.” National Underwriter,
Vol. 95, No. 15 (1991).
Goodale, James. “Improving Performance Appraisals.” Business Quarterly, Vol.
57, No. 2 (1992).
Hunsicker, J. Freedley. “Ready or Not: The ADA.” Personnel, Vol. 69, No. 8 (1990).
Jeffries, Rosalind. “Recapping the Rewards of Recognition.” HR Focus, Vol. 74, No.
1 (1997).
Kavanaugh, Raphael R., and Jack D. Ninemeier. Supervision in the Hospitality
Industry, 4th ed. (Lansing, Mich.: American Hotel & Lodging Educational
Institute, 2007).
Manaca, Regina. “Looking for Better Productivity: Don’t Forget the 3 R’s.” Harvard
Business Review, Vol. 74, No. 4 (1996).
Mondy, R. Wayne, and Robert M. Noe. Human Resources Management. Engle-
wood Cliffs, New Jersey: Prentice-Hall, 1996.
Vinson, Mary N. “The Pros and Cons of 360-Degree Feedback: Making It Work.”
Training & Development, Vol. 50, No. 4 (1996).
Woods, Robert H. “Dubious Distinction: #1 in Discriminatory Advertising.” Cor-
nell Quarterly, Vol. 30, No. 1 (1989).
Internet Sites
American Society of Training and U.S. Department of Education
Development www.ed.gov
www.astd.org
Cornell Law School Legal Information
U.S. Department of Labor Institute
www.dol.gov www.law.cornell.edu
Case Study
It was a sweltering August evening, the hottest night of the hottest summer in
recent memory. It was a night when those who ventured far from air-conditioning
paid a heavy price in discomfort, and it was certainly a night when no one wanted
to cook. Perhaps that was why it was the busiest Saturday night of the year at the
Sandstone Country Club’s main dining room. Servers and cooks wilted in their
uniforms as they struggled to keep up the frantic pace.
Roberto, a server who had been with the club just nine months, was having
more than his share of problems. The dining room manager had already corrected
him twice for improperly serving two tables. Tips had not been generous, and he’d
taken a lot of grief from the cooks. Most of the diners were impatient—“Where’s
our food?” “Tell the chef to pick up the pace in there!”—and when Roberto duti-
fully went to the kitchen to check the status of orders, the cooks would brandish
knives in their sweaty hands and tell him to go away.
The party that just sat down in his section was one group he didn’t dare make
a mistake with. Dr. Steele, his wife, and three other couples were all dressed up
for a night on the town. Roberto knew that Dr. Steele was a big tipper, but he also
knew the doctor was hard to please. Roberto put forth his best effort, took the
order, and got it to the kitchen quickly. About ten minutes after the appetizers had
been cleared, Dr. Steele stopped Roberto on his way to another table and asked
him to please check on his table’s order. “Yes sir,” Roberto replied, and hurried to
the kitchen.
When he opened the kitchen door he had to dodge two servers charging out
with loaded trays. A wave of heat enveloped him and the noise was deafening:
shouted orders, dishes clattering, oven doors slamming, the hissing of steam from
the warewashing station. He located Steve through the maze of rushing bodies
and yelled, “How we coming on the order for table 10?”
350 Chapter 8
Steve, the club’s assistant executive chef, looked up from stirring a boiling pot
and wiped his glistening forehead with a white coat sleeve. “We’ve got a prob-
lem,” Steve yelled back, “we’ve eighty-sixed that special.”
“You’re kidding!” Roberto wailed. Wouldn’t you know it—the other seven
diners had ordered something else, but Dr. Steele had ordered the whitefish spe-
cial. “It’s not on the board! Why didn’t you tell me when I placed the order?” The
cooks were supposed to write on the board any items the kitchen was out of, so the
servers could stop promoting those items. If they were too busy to write it on the
board, they should have said something. The stupid cooks always forget, Roberto
thought, and the servers always get the grief.
“Hey, look around!” Steve jerked his head at the cooks bustling all around
him. “We don’t have time to baby-sit every order back here. Just go tell ’em to
choose something else.”
I ought to make you tell him, Roberto thought grimly as he left the kitchen.
The other seven orders at Dr. Steele’s table would be ready in five or ten minutes,
but Dr. Steele’s meal wasn’t even started. The orders for the rest of the table would
have to sit under heat lamps while Dr. Steele’s order was prepared. No one was
going to be happy at table 10; Roberto could see his big tip disappearing.
Roberto was right; no one in the Steele party looked very happy when he broke
the news. Through thinly pressed lips, Dr. Steele ordered his second choice—a
rack of lamb, medium-well. Roberto knew that would take a long time to cook, but
he didn’t want to give Dr. Steele any more bad news. Roberto practically ran back
to the kitchen to get the order in as quickly as he could.
Twenty minutes later Roberto was filling the water glasses for guests at
another table when out of the corner of his eye he saw Dr. Steele impatiently wav-
ing him over.
“Yes sir?”
“Listen, we’ve got tickets for the play tonight. How much longer is it going
to be?”
“Well, Dr. Steele, it will probably be another fifteen minutes at least. It takes
time to properly prepare a rack of lamb. I’m very sorry, I would have told you
before, but I didn’t know you needed to leave so soon.”
“Well, we certainly can’t wait another fifteen minutes. Do you have anything
you can serve quickly?”
“I’m sure we have something you’d like, sir, let me check for you. I’m terribly
sorry.” As he left the table he saw Dr. Steele sarcastically muttering something to
his guests.
Back into the chaos of the kitchen, weaving through servers, cooks, and
buspersons, Roberto found Steve and told him that Dr. Steele wanted to change
his order again. “Damn it!” Steve turned harassed eyes to Roberto. “The lamb’s
already half-cooked—who’s going to pay for it?”
“I don’t care!” Roberto said angrily. “What can you give me in five minutes?”
“I know what I’d like to give you,” Steve said under his breath while he wiped
his brow. “It’ll have to be pasta,” Steve said aloud. “Tell him the pasta primavera
is good tonight.”
Roberto went back to the Steele table with this news. “Oh, forget it!” Dr. Steele
threw his napkin on the floor. “We’re running late, and everyone else’s meal is
probably ruined by now anyway. We’re leaving.” Everybody gave Roberto dirty
looks as they pushed back their chairs and left in a huff.
Roberto stalked angrily back to the kitchen, found the seven orders for table
10 under the heat lamps, and started scraping them into the garbage with savage
strokes. “I hope you’re happy!” he yelled at Steve’s back. “Dr. Steele just left, mad-
der than hell! Forty dollars in tips just walked out the door because you couldn’t
get it right!”
Steve turned suddenly and lunged across a countertop at Roberto, clutching
at him. “You think it’s so easy back here?!” he bellowed, his face mottled with rage.
“We never get tips, just a lot of crap from jerks like you! I’m sick of your attitude!”
“Keep your hands off me!” Roberto pulled away and made what witnesses
later said was “some sort of racial remark” in Spanish to Steve. Steve ran around
the end of the counter, grabbed Roberto, and hurled him against a wire storage
rack; pots, pans, and kitchen utensils rained down with a metallic crash. Steve was
moving in to throw a punch when bystanders restrained him.

Lloyd Marlowe, Sandstone’s general manager, sat at his desk Tuesday morning
with two employee files in front of him and two decisions to make. Last Saturday’s
incident had surprised him; at least he was surprised that Steve was involved.
Tension between cooks and servers was an age-old problem present in every food
service operation since the world began, but he never expected it to erupt into
violence at his club.
Lloyd had been out in the dining room that Saturday night, chatting with club
members, when he had heard the big metallic crash in the kitchen. When he arrived
on the scene, Steve and Roberto were yelling insults at each other, held apart by
what appeared to be half the staff. Lloyd called the manager from the mixed grill
and had him report to the kitchen to help restore order and resume production,
then took Steve and Roberto, one at a time, to his office. He kept the interviews
brief. He suspended both of them without pay for three days and told them he
would take that time to review the incident. He would get in touch with them after
he had made a decision on what disciplinary action to take. After escorting each
of them separately to their cars and watching them drive away, he had returned to
the dining room and pitched in to help the staff get through the rest of the evening.
The three-day suspensions gave Lloyd time to question witnesses and review
Steve’s and Roberto’s employee files. Steve had been employed at the club for three
years and had an excellent record. He was never late, always volunteered to work
extra hours, and had been employee of the month four times. There were two let-
ters in his file from club members praising him for his work at special events they
had hosted at the club. All three of his annual performance appraisals were excel-
lent and he had received a substantial raise each time. He was well-liked by his
co-workers in the kitchen; indeed, Lloyd liked him too. Steve was a key member of
the staff and it would be hard to be without him, even for a short time, because the
rest of August and all of September were absolutely jammed with banquets, wed-
dings, and other special events, not to mention the regular dining-room workload
Steve carried.
352 Chapter 8
Roberto, on the other hand, had been something of a problem ever since his
hire last December. He was habitually late for work and had already passed from
the oral-warning to the written-warning stage on the tardiness issue. The club had
high standards and strict service procedures that Roberto was having trouble mas-
tering. He was also something of a loner and didn’t really fit in with the rest of the
service staff. At times he tended to be rude to other staff members; his supervisor
had noted in his file that she had met with him informally to discuss the problem.
All of these issues were reviewed with him at his six-month performance appraisal
(new club employees received two appraisals their first year), but instead of inspir-
ing Roberto to try harder, the appraisal seemed to embarrass and anger him. After
his appraisal, his attitude took a noticeable dive. He was still careful to be polite
with club members, but with his co-workers he was usually sullen and uncoop-
erative. His supervisor had kept him on, however, in part because she thought
Roberto had the potential to become a good employee despite his problems and in
part because the labor market was tight and servers were very hard to find.
Witnesses to the incident Saturday night emphasized how incredibly hot it had
been in the kitchen and how much pressure everyone felt because of the unusu-
ally large dinner crowd. Roberto had “had an attitude” with the cooks throughout
the evening, they all agreed. On the other hand, everyone agreed that Steve had
grabbed and shoved Roberto and seemed ready to throw punches. “Sure, Roberto
was out of line,” was the consensus, “but no more than usual, except for that last
racial remark after Steve went for him.” The heat and the pressure, coupled with
Roberto’s attitude, apparently had just made Steve lose his head momentarily.
Lloyd drummed his hands nervously on the employee files and sighed. He
didn’t need to review the files yet again; he needed to make some decisions. He
reached for the phone and called his secretary. “Call Steve and Roberto and tell
them I’d like to see them tomorrow morning. Be sure to set up separate appoint-
ments—eight o’clock and ten o’clock would be best. Let me know if there’s any
problem.” He hung up the phone and shoved the files in a desk drawer. He was
pretty sure what he was going to do, but this gave him one more night to sleep on it.
1. Should Lloyd fire Steve? Why or why not? If he shouldn’t fire Steve, what
disciplinary action should he take?
2. Should Lloyd fire Roberto? Why or why not? If he shouldn’t fire Roberto,
what disciplinary action should he take?
3. What messages will Lloyd send to the rest of the staff by the disciplinary
actions he takes with Steve and Roberto?
The following industry experts helped develop this case: Cathy Gustafson, CCM,
University of South Carolina, Columbia, South Carolina; Kurt D. Kuebler, CCM,
Vice President, General Manager, The Desert Highlands Association, Scottsdale,
Arizona; and William A. Schulz, MCM, General Manager, Houston Country Club,
Houston, Texas.
The Essential Role of Training in Achieving 1. Summarize the importance of training
Quality Service and lifelong learning to the success of
Creating a Learning Environment for private clubs. (pp. 355–359)
Quality Service 2. Describe how training and
Training for Quality Performance professional development is an
Training and Development as an investment in the human capital of
Investment in Clubs and Their People private clubs. (pp. 359–364)
CMAA’s Commitment to Lifelong
Learning 3. Explain the needs assessment process
Return on Individuals and its role as the foundation of
Return on Investment training. (pp. 364–368)
Assessing Training and Development 4. Describe the characteristics of effective
Needs orientation and socialization programs
The Needs Assessment Process and the benefits these programs have
Orientation and Socialization for a club. (pp. 368–372)
Orientation
Socialization 5. Discuss hourly employee training and
Hourly Employee Training identify how a trainer can increase the
Types of Training effectiveness of training by using the
The Four-Step Training Method Four-Step Training Method.
The Role of the Trainer (pp. 372–377)
Adult Learning 6. Explain the role of the trainer in
Evaluation of Training hourly employee training, discuss
Online Training adult learning issues, summarize
Supervisory and Management Professional training evaluation issues, and
Development describe online training for hourly
Common Training Needs for employees. (pp. 377–380)
Supervisors
7. Describe supervisory and
Professional Development for
management professional
Managers
development. (pp. 380–383)
Outsourcing Training
Advantages and Disadvantages of 8. Discuss outsourcing training,
Outsourcing including its advantages and
disadvantages. (pp. 383–385)
9
Training and Professional
Development in Clubs
This chapter was written and contributed by Cathy Gustafson, Ph.D.,
CCM, CHE, Associate Professor, University of South Carolina, Colum-
bia, South Carolina; and Debby Cannon, Ph.D., CHE, Associate Profes-
sor and Director, Georgia State University, Atlanta, Georgia.
Private clubs make up a unique segment of the hospitality industry. Because of

the very nature of clubs, a finite number of customers for them exists. Only a very
specific and limited group of “customers”—the club’s members—can use a given
club’s facilities and services. It is almost solely through the club’s members, and
guests of members, that private clubs can generate sales revenue. To thrive, or
even survive in business, it is imperative that each club not only meet its members’
expectations, but also continuously anticipate and exceed the members’ expecta-
tions. To make sure that this level of member satisfaction is achieved consistently
in operations, the club’s leadership must cultivate a workplace environment of
continuous improvement.
The training and professional development of employees and managers is
a process, not an event or one-time occurrence. Therefore, training and profes-
sional development opportunities must occur often and at all organizational levels
within a club. Even a club’s board of directors needs training.
The Essential Role of Training in Achieving Quality Service

Competition in the hospitality industry continues to escalate exponentially. No
longer is it only at the private club where a person can play a great round of golf
on a challenging course or dine on exquisitely prepared cuisine. During the past
few decades there has been a surge in golf course construction and an increase in
the number of fine restaurants, hotels, and resorts in many communities. Private
clubs face competition today not only from other clubs but also from these open-
to-the-public facilities.
Private clubs continue to prosper because they have a competitive advan-
tage: the level of personalized service that they can provide. Successful private
club managers, boards, owners, department heads, supervisors, and employees
know the key to member loyalty and retention is exceptional service. (Exhibit 1
355
356 Chapter 9
Exhibit 1 Examples of Exceptional Service in Private Clubs
1. A City Club – Quality Service in Food and Beverage

The Capital City Club; Columbia, South Carolina
This downtown dining club resides in the top floor of the tallest building in
South Carolina. This club is owned by ClubCorp and is classified as a business
club. One of the quality service performance standards of this club is that each
member be called by name five times during their visit to the club. The underly-
ing premise is to make sure all members feel welcomed and that their business
is appreciated at “their club.” The member is greeted by name upon arrival at
the club by the receptionist, again by the host or hostess at the dining room
entrance, twice by the server—upon greeting the table and once more when
appropriate, and by the receptionist again upon the member’s departure.
2. A Golf Club – Quality Service in Golf Operations

Briar’s Creek Golf Club; Charleston, South Carolina
This exclusive golf club, rated by Golf Digest as one of the best new golf
courses in the United States, knows its members are serious about their golf
game. This club has installed two-way radios on every golf cart. The radio sys-
tem allows the member to easily reach the golf pro or one of the assistant golf
pros at any time they are on the course. Many members use the radio system to
seek advice on how to best play specific holes on the course.
3. A Yacht Club – Quality Service in Member and Guest Amenities

Grosse Pointe Yacht Club; Grosse Pointe, Michigan
Located on Lake St. Clair, this club was founded in 1914. The club, known for
exemplary service, is characterized by unique 18th century Italian Renaissance
architecture. Although it has been updated and modernized several times over
the years, these renovations have stayed with the integrity of the original design
and have always maintained the spectacular lake view. In addition to providing a
beautiful environment, the club takes care of last-minute clothing needs of mem-
bers and guests by offering an array of apparel items ranging from baby bibs to
fleece jackets. Such items can even be ordered online for the convenience of
members and nonmembers.
4. A Country Club – Quality Service at the Spa

Rock Barn Club and Spa; near Charlotte, North Carolina
This beautiful club offers many outstanding services to members and others as
it is semi-private. Many of the club’s facilities and services are for members only,
but several aspects, including the spa, are also open to the public. Most spas,
even in the club environment, must be open to nonmembers to sustain enough
traffic for business success. The spa at Rock Barn is a state-of-the-art facility.
A few days after a visit to the spa, each person receives a handwritten note
mailed to his or her home address. The note is written by the spa professional
who provided service to the individual, and thanks the guest for his or her visit.
The note is personalized to each guest and often references his or her wellness
plan, including a reminder about suggested products.
Training and Professional Development in Clubs 357
gives some examples of quality service found at private clubs in the United States.)
When service problems do occur, quick and precise service recovery is essential.
Creating a Learning Environment for Quality Service

Club managers cannot be all places at all times, covering all hours and areas
of the club’s operation. These club professionals realize that members will con-
tinually interact with the front-line staff and supervisors of their operation, and
occasionally with non-front-line staff, such as horticulturalists, grounds or main-
tenance personnel, and culinary professionals, to name a few. The only way
to ensure that exceptional member service will consistently occur each time a
member visits the club is by creating comprehensive training and professional
development programs throughout the club. These programs are typically either
(1) club-wide—those designed for delivery to every employee of the club, or
(2) department-specific—those training programs designed for a specific depart-
ment or work area.
The process or cycle of training and development involves identifying train-
ing needs, establishing performance standards, developing training programs,
conducting the programs, measuring the outcomes, following up with trainees,
measuring again, seeking feedback from all parties involved, evaluating the effec-
tiveness of the training, then adjusting training programs as needed to meet the
club’s current training needs—which brings us back to the beginning of the train-
ing cycle. At any one point in time, in an active and thriving private club, it is likely
there will be several training programs going on at varying stages of this cycle,
involving the development, delivery, and evaluation of training. Just as members’
needs evolve and change, so do the club’s facilities, services, employees, and man-
agers. In such a dynamic environment, continuous training is essential.
Lifelong learning is the process of continuing to develop knowledge and
skills after formal education is finished, as people pursue knowledge either for
personal or professional reasons throughout their lives. The lifelong learning con-
cept can be applied to an individual or an organization, such as a club. Lifelong
learning is essential in today’s competitive marketplace. In private clubs where the
need exists to continuously improve and excel at member service, lifelong learning
is an essential business requirement.
Successful club managers are the change agents for their clubs as they lead
the organization and prepare it for future business demands. With the challenging
day-to-day demands of a fast-paced private club, taking time to prepare for the
future can be met with resistance by some managers. However, by creating a life-
long learning environment within the club, managers can make their clubs learn-
ing organizations and reap enormous benefits by tapping into the ideas, creativity,
skills, and knowledge of the entire staff.
Peter Senge first coined the phrase “learning organization” in his book, The
Fifth Discipline: The Art and Practice of the Learning Organization. His vision of a
learning organization was “an organization where people continuously expand
their capacity to create the results they truly desire, where new and expansive pat-
terns of thinking are nurtured, where collective aspiration is set free, and where
people are continually learning how to learn together.”1
358 Chapter 9
There are several hallmarks of a learning organization. A learning organization:

•• Thinks of learning as synonymous with working.
•• Becomes smarter over time.
•• Sees learning as the best source of competitive advantage.
•• Thrives on change and anticipates and prepares for future success by increas-
ing the staff’s skills and knowledge.
•• Has a nurturing organizational environment that taps into the collective wis-
dom of the entire work force.
•• Has a working environment where people constantly are learning and apply-
ing their knowledge for continuous improvement.
Why should a club want to be a learning organization? Learning organizations
tend to be more efficient and better at providing quality service. Companies that
provide training opportunities to their staff members report that their employees
enjoy greater job satisfaction and the companies enjoy greater employee produc-
tivity; both outcomes have a positive effect on company profitability. Given the
shorter shelf life of knowledge in today's ever-changing world, new information
must be processed continually. Many futurists believe that the world’s knowledge
base today will amount to only about 10 percent of what we will know in ten years.
Learning organizations do not necessarily spend the most money on train-
ing and development or have the largest training staffs and departments. Learn-
ing organizations do systematically support learning initiatives and programs,
whether formal or informal. They tend to have higher employee engagement
through activities such as employees from one department (for example, a club’s
golf operation) sharing information with employees in other departments, such as
the food and beverage, fitness center, and grounds and maintenance departments.
Another example of a club fostering a learning environment would be club man-
agers teaching employees about leadership or the club’s core values.2 Of course,
formal training programs are also part of a lifelong learning environment.
Training for Quality Performance

The goals and objectives of every training and professional development program
within a club must align with the club’s overall goals. A critical step toward oper-
ational success is incorporating training into the club’s strategic plan. Although
strategic plans vary in complexity, quality performance standards are typically
identified in any club’s strategic plan. Clubs, as well as other hospitality busi-
nesses, may refer to the process of “talent management” in strategically planning
for their future. The Society of Human Resources Management has defined “tal-
ent management” as “aligning human capital and business strategies to support
organizational and financial goals, resulting in a positive impact on shareholder
value.” In the case of private clubs, “shareholders” are the clubs’ members, guests,
and potential members as well as staff members and future staff members who
will benefit from the clubs’ training and development processes.3
By incorporating training into the club’s strategic plan, the performance stan-
dards identified by the plan ultimately become the benchmark or standard level of
skills, knowledge, and service attitudes to be achieved by trainees attending future
training programs. Trainers can adjust quality performance standards quickly to
reflect any changes made in the club’s overall direction. Training becomes a vital
component in the success of the club. Actual performance standards will vary
from club to club, because some types of clubs prefer to be more casual, such as
golf or athletic clubs, compared to those standards set by more formal clubs, such
as traditional city clubs.
A club general manager/chief operating officer (GM/COO) who recognizes
the value of training may have to educate other managers about the benefits
derived from training. This may necessitate tracking the progress of employees
and making clear connections between new skills and competencies, and their
positive affect on productivity and job performance. It may also necessitate taking
on a marketing role, championing the club’s training efforts to help other manag-
ers see how beneficial they are to the success of the club.
Training and Development as an Investment in Clubs and

Their People
Club management is no different than any other professional position with a high
level of responsibility for others and the stewardship of often millions of dollars
in assets. To be successful, club managers must stay current with local, state, and
federal laws, changing societal trends, advances in technology, issues affecting
employees and members, and be financially savvy, to name just a few duties. Con-
sequently, these professionals must be learning continually. Successful club man-
agers are great examples of lifelong learners.
CMAA’s Commitment to Lifelong Learning

The Club Managers Association of America (CMAA) is the professional associa-
tion for the management of membership organizations. With close to 7,000 mem-
bers across all classifications, CMAA’s manager-members run more than 3,000
country, golf, city, athletic, faculty, yacht, and military clubs. In the 1980s, CMAA
determined its mission would be focused on enhancing the educational opportu-
nities (training) available to its members. At that time, CMAA made a commitment
to develop, facilitate, and ultimately provide club-specific lifelong learning oppor-
tunities to its members. A series of professional development programs resulted,
called the Business Management Institutes (BMIs). Starting with BMI I in 1988,
there are now five levels of core curriculum as well as several elective BMI courses,
including an international program.
CMAA also actively conducts and coordinates research for the private club
industry. This research is compiled and made available to CMAA members so they
can compare their club’s operational data to the research results gained from clubs
in their region and nationally. CMAA also partners with other professional asso-
ciations with common areas of interest and recognizes their training programs—
such as the American Culinary Federation, Professional Golfers Association, Golf
360 Chapter 9
Course Superintendents Association of America, American Hotel & Lodging Edu-

cational Institute, and many others—to broaden the lifelong educational opportu-
nities available to CMAA members.
Return on Individuals
Training is an investment in people. Historically in the hospitality industry, empha-
sis has been placed on measuring financial variables such as revenue taken in and
food and labor costs. But the broader focus of today’s hospitality management
includes accounting for human assets, which is especially important in an indus-
try that depends on delivering quality service. Club managers are in a people busi-
ness, yet in the past they have placed dollar values only on buildings, land, food,
inventories, and equipment, and had difficulty with assigning a dollar value to
human capital. Yet business leaders have long known that if you want something
to improve, you measure it.
Human capital has often been called the soft side of the business. The chal-
lenge exists in developing a systematic approach to quantifying human capital.
Some consultants have developed human capital worksheets to guide this pro-
cess, which are available on the market. The concept is to quantify an increase
in productivity or increase in profit that has resulted from improved employee
performance due to training. The core question is: What does this employee do
better since he or she has completed the training? Measuring the benefits of a train-
ing program on employees, and extrapolating it throughout the club, will lead to
identifying training’s return on investment (ROI) in human capital.
The Changing Values of Today’s Work Force. There is a new psychological con-
tract between employees and employers today. Employees do not expect lifelong
employment with a single company anymore, but they expect the companies
they work for to provide opportunities that satisfy their learning and career-
development needs. In essence, many workers are saying to companies: If you
cannot give me the security of working here for a lifetime, then give me the next
best thing by helping me develop portable job skills. For these and other reasons,
many of today’s employees are demanding job training, and if they do not get it,
many move on.
Research has consistently shown three work elements that are valued by
today’s employees: greater responsibility, broader skills, and a relationship with a
peer network. A club’s training program, if well-planned, can address these three
priorities. A valuable message is also communicated to employees through a club’s
investment in training and professional development activities. The message is that
the club is committed to its employees and wants to contribute to their professional
growth, whether the employees are at the entry-level or the management level.
The fact that a club provides training for its employees can be used as an effec-
tive recruiting tool. In today’s world, hospitality companies are not only competing
for guests/members; they are also competing for top service-oriented workers. A
club’s human resources personnel can emphasize that the club has well-run train-
ing programs that feature lifelong learning opportunities, certification programs,
tuition reimbursement, and so on.
Return on Investment
There is a saying that “every organization pays for training, whether it has a train-
ing program or not.” In essence, a club can recognize the value of training by pay-
ing to train its staff, and therefore reap the benefits of training, or choose to ignore
training and pay for it in the form of reduced revenue as its members/customers
receive poor service, poor products, or poor quality, and eventually choose to go
elsewhere.
The Effect on Member Service. A good training program has numerous benefits.
Training is designed to affect behavior in the workplace. The core function of the
hospitality industry is people serving people. As club employees become better
trained at their jobs, they are able to provide better service to members. By keep-
ing skilled workers longer, all parties benefit. It is vital to the long-term success of
any club to have fully trained employees. Effective training is a classic example of
a win-win situation.
Management theorist Peter Drucker stated that “the only meaningful eco-
nomic resource” is the development of knowledge. The process of training and
development disseminates appropriate knowledge to club employees. Getting the
job done right the first time is always more efficient and better for business.
The training function, much like the marketing and research functions in
many businesses, rarely shows an immediate impact on the bottom line. It is esti-
mated that slightly over $137 billion is spent on training in U.S. organizations each
year. Historically, American businesses have often reduced their training budgets
in response to falling profits or economic uncertainty. In numerous other countries,
the custom is to increase training and development in similar economic situations.
The premise is that ultimately a well-trained business organization will thrive, and
increased revenue and profits will result. It is interesting to note that, during the
Great Recession that began in the United States in December 2007 and officially
ended in 2009, U. S. organizations maintained their commitment to workplace
learning, only trimming their training budgets by an average of 3.8 percent, a fig-
ure consistent with other reductions occurring in departments company-wide.4
The Effect on Employee Absenteeism and Turnover. Appropriate training can

assist with reducing absenteeism. Orientation is the perfect time to teach employ-
ees the importance of their jobs to the whole club’s operation. If employees see
themselves as part of a team, it can enhance their own self worth. If employees
realize their absence will negatively affect the team, they are less likely to be absent
without a good reason.
The hospitality industry’s reported national annual turnover rates, which
tend to be high, should sound an alarm to today’s hospitality managers. Usually
the first and second highest-rated reasons for turnover deal directly with the orga-
nization’s leadership, specifically citing communication and quality of supervision
or management. Quality of supervision and communication are both critical attri-
butes of any hierarchical structure, and can be improved with effective training.
Employees have a strong need to be informed. Businesses with strong communi-
cation systems enjoy lower staff turnover.
362 Chapter 9
Other reasons for turnover that are frequently cited in research deal directly
with employee training. These reasons are lack of clear-cut responsibility and lack
of direction for the employee and company. On-the-job knowledge is a critical
variable to employee performance, satisfaction, and, ultimately, turnover.
Training reduces turnover by providing the employee:
•• Increased job satisfaction
•• Increased involvement in the corporate culture
•• Involvement in decision-making
•• Information
•• Organizational stability
•• A predictable work environment
High employee turnover has severe repercussions for companies attempt-
ing to provide quality products and services to customers. For those hospitality
companies that do not train, turnover only goes from bad to worse. Clubs must
retain their employees if they hope to consistently provide quality service to their
members.
Training’s Intangible Costs and Benefits. Intangible costs and benefits are those
that cannot be easily defined or quantified. There are numerous intangible benefits
to training. These benefits may actually be more valuable to a club than many of
those that can be quantified, as training has been proven repeatedly to positively
influence the attitudes and behaviors of employees. Frequently in the service busi-
ness, the customer is less likely to remember whether the food was brought to the
table within seven minutes or twelve minutes, but will quickly remember a nega-
tive attitude on the part of a server.
Examples of some of training’s intangible benefits are:
•• Increased member/customer satisfaction
•• Increased employee motivation
•• Increased employee achievement
•• Increased employee recognition
•• Increased employee interest
•• Increased employee responsibility
•• Reduced tardiness
•• Reduced unacceptable behavior
•• Increased potential value of the employee
•• Increased potential for advancement of the employee
Although these intangible benefits may be difficult to quantify, no club or any
other hospitality business will thrive without them.
The cost of not training is an intangible cost to the club. This cost appears
when an unhappy member complains to nine of his or her closest friends, who
often tell others—a cycle that can eventually ruin the club’s reputation. To survive
in the high-service club industry, training is a must.
Other examples of intangible costs of not training are:
•• Loss of uniformity of service

•• Loss of quality of staff
•• Loss of managerial time in filling in for the position
•• Potential for poor service
•• Low perception of managerial effectiveness
•• Member complaints
•• Potential lost sales
•• Potential accidents
•• Potential major problems (e.g., food borne illness outbreak)
•• High levels of inefficiency
The Effect on Finances. A strong desire exists to create one single way to measure
the overall effectiveness and costs of training. However, since there is not one way
to conduct training, an accurate single formula cannot be created. The analysis
of training and development costs and benefits is complex and dynamic, but can
be accomplished with a systematic approach. One of the reasons American busi-
nesses reduce their training and development budgets during times of economic
uncertainty is because of increased financial scrutiny by owners and boards. It is
particularly important to the survival of a club’s training and development pro-
gram to be able to accurately measure and justify the program’s return on invest-
ment (ROI) for the club.
The ROI of training is nothing more than a financial evaluation of training’s
effect on the workplace. ROI represents a relatively new approach in justifying
training. Accountants argue that you cannot quantify training that affects person-
nel. However, extensive research shows that as an organization invests in the skills
and knowledge of its employees, those employees will do a better job for the orga-
nization. This is the foundation upon which training has existed for years.
Calculating a return on investment for training requires evaluations to calcu-
late the effect training has had on the bottom line. The effect can be measured by:
•• Profit
•• Productivity
•• Performance
Personnel in accounting and human resources can help with some of these
measurements, as they track numerous variables already. Computer programs
exist to assist a club in tracking a training program’s ROI. Accountability is para-
mount, and trainers need to be able to accurately prove that training time and
dollars are well spent. Training skeptics will question the value of training without
364 Chapter 9
hard facts. Documenting ROI increases the credibility of training and communi-
cates results in a financial language already used by upper management when
making operational decisions.
The Training Budget. Organizations differ in how they create and report their
training budgets. Most companies choose to report training as a percentage of
payroll expenses, others choose to allocate training dollars as a percent of expected
revenue. Reporting training as a percentage of payroll is the most common method
used. Many Fortune 100 and Fortune 500 companies invest 5 to 10 percent of their
payroll expenditures in training; however, 2.25 percent is most common.
Most agree that the overall purpose of training and development is to increase
the knowledge, develop the skills, and change the attitudes of employees to bet-
ter attain organizational goals and objectives. However, without the measurement
and evaluation process of training and development, trainers are unable to prove
any progress has been made, and that the time and money spent on training was
worth it. Employees may attend hours and hours of training, but, unless the train-
ing is effective and appropriate to their needs, the training may not affect their
behavior on the job. Without measurement and evaluation tools, only guesswork
and intuition dictate training decisions.
Assessing Training and Development Needs

The underlying purpose of training is to help employees work efficiently, attain
goals, and solve organizational problems so that the club can meet its goals.
Research has shown that frequently less than 20 percent of what is taught in a typi-
cal training session transfers back to the workplace. Companies spend thousands
of dollars each year on training that fails. Why? These sad statistics emerge from a
common problem: the absence of a needs assessment.
Without a needs assessment, club managers end up choosing training pro-
grams based on intuition or the latest hot topic, often selecting general training
programs not specific to the club industry. They may even choose a training pro-
gram that skirts the actual problem. When the needs assessment step is omitted
(as it frequently is), its absence causes the training planning to be haphazard. Con-
sequently, employees attend nonproductive training sessions, become frustrated,
and will likely later resist other training opportunities.
The Needs Assessment Process

The training needs assessment is a systematic process for determining gaps
between ideal and actual performance. The process involves collecting data to
determine where the club’s gaps exist and whether or not they are problems that
can be solved through training. Examination of service gaps should focus on
the causes, the extent of the problem(s), and the solution(s). Conducting a needs
assessment requires management to identify the club’s needs and the needs of
the club’s employees, and to establish criteria (performance standards) for the
development of training. Benchmarks for measuring a training program’s success
should also be identified.
A properly conducted needs assessment provides a blueprint by which the
trainer can appropriately design training that will correct the identified perfor-
mance gap. Needs assessment focuses on a long-term fix of the problem and
allows management to identify solutions that get at the root of the problem.
There are numerous methods for assessing a club’s training needs; most
clubs use a combination of assessment approaches. Most clubs have sources of
important data available that can help club managers target training needs. For
example, information from exit interviews and turnover statistics can target where
there are training issues in a club that have become so serious they have led to an
employee’s resignation or even termination. Sometimes, employees become frus-
trated because of low skill levels or not being properly prepared to do their best at
work. There may also be problems related to poor supervisory or managerial skills
that result in high turnover. Poor communication, favoritism, and failing to keep
employees updated are some of the common reasons employees give for changing
jobs. Supervisory training is essential in improving a club’s work environment and
positively affecting employee retention.
As in any organization, some problems experienced by a club cannot be
linked to training. Whereas supervisors can be trained to communicate more
clearly and effectively, this type of training is not going to affect problems such
as non-competitive wage levels or a lack of adequate equipment or materials
for employees to use in performing their work. Club managers, in using their
analytical skills to determine the true causes for problems experienced at their
clubs, must be aware of what training can and cannot accomplish. Implementing
a training program is appropriate if the problem is linked to a skill or knowledge
area or an aptitude. If, in analyzing turnover issues in a club, managers find
that the problem is that the club’s wages are not competitive, the solution would
involve gathering data on competitive wages and making recommendations,
typically to the club’s board of directors, to take corrective action; the solution
would not be to design and implement a training program to increase employee
satisfaction.
To cite another example, if a club’s accident rate has increased, with the prob-
lem being that more employees are injuring their backs, a needs assessment can
determine the reason for the escalating problem. If managers find through obser-
vation, employee interviews, and an analysis of employee incident reports that
employees have not been using proper lifting techniques, a training program
focused on this topic could be of tremendous benefit. On the other hand, if the
needs assessment shows that employees are lifting properly but there is a lack of
equipment to assist them with lifting tasks, the solution would obviously involve
obtaining the needed equipment rather than employee training.
There are occasions when employee performance does not meet the club’s
standards. Again, in analyzing the causes for the gap between standards and
actual performance, the club’s managers and supervisors must determine whether
training is the appropriate solution. Some gaps in performance, if related to skill,
knowledge, or aptitude, can be narrowed with the appropriate training. But if a
performance gap is the result of intentional disregard of standards on the part of
employees, disciplinary action would be more appropriate than training.
366 Chapter 9
Data Collection Methods. Once it has been decided that training is the solution
to closing an identified performance gap, then the trainer needs to better define
the specific problem or problems that exist and the employee needs that must be
addressed in the training. Trainers have developed several techniques for zeroing
in on problems and needs, some of which include the following:
•• Training needs survey. Managers and staff can be surveyed through written
questionnaires or personal interviews.
•• Observation. Trainers can watch employees at work to determine where the
gaps are between the club’s standards and the performance of the employees.
•• Employee surveys. Employees should always be a part of the gap-analysis pro-
cess, since they are the ones expected to meet the established standards and
are closest to the problems and deficiencies that management might observe.
Surveys can ask employees how they think the club is measuring up to the
established standards.
•• Member or guest comments. Trainers can review formal and informal or unso-
licited member or guest complaints. Repeated complaints signal that some-
thing is wrong and that the members’ needs are not being met. Clubs may
choose to establish ways for continuous member and guest input through
comment cards, focus groups, or structured interviews.
•• Employee meetings. When there is evidence that employee performance is
below club standards, an employee meeting in which employees informally
discuss the job tasks they feel they do well and those that need improvement
can be very effective. Employees can then suggest methods for improving
performance and set goals to raise their performance levels.
•• Inspections. Trainers can perform internal inspections using a checklist and
a weighted scale—the same way government agencies already inspect spe-
cific areas in the club—to generate useful data. Club managers can create an
operational-audit checklist that specifies key areas of performance and the
standards for each. An internal inspection compares actual performance with
identified standards, which may be local, state, or federal regulations or the
club’s own standards.
From Data Analysis to Establishing Training Goals and Objectives. Analyzing
data can be a complex process with involved methods of analysis for each data
collection method. However, information is most valuable when it can be used to
improve the club’s operations—such as identifying trends, defining benchmarks,
or identifying any problem areas from the data.
All trainers and managers must be very systematic and non-judgmental when
analyzing qualitative data to be able to identify common themes and sort appro-
priately. Quantitative data is very exact, yet complex statistical analysis may not
always be necessary. In general, some problems can be identified by keeping quan-
titative analysis simple and in the current units that the club is already using in
other operational reports.
Needs assessments will:
•• Identify performance problems
•• Determine whether training will fix the problem
•• Better define the causes of the problem
•• Determine who needs training
•• Determine training topics
•• Determine what type of training best addresses the problem
•• Determine club objectives
•• Determine where the gaps exist in the club’s objectives
•• Determine how urgent the training should be
•• Determine the desired outcome(s) of the training
•• Better identify the items the employee needs to know
•• Help a club design training that meets its needs
•• Determine the measurement criteria needed in performance
•• Provide a benchmark for performance
•• Provide credibility for training needs
•• Help gain support for training throughout the club
•• Allow managers and supervisors to have input in training development
•• Increase the buy-in and support of managers and supervisors for training
Once a needs assessment is completed, club managers will use the data gener-
ated from the assessment to make recommendations. The data should help man-
agers determine whether the problems identified are ones that can be successfully
addressed with training or are problems not related to training. Those related to
training will become important elements of the training proposal prepared for the
club’s general manager. Since trainers and managers are often held responsible
for performance issues in the club, each needs assessment and analysis should be
simple, accurate, and identify the root of the problem.
Recommendations in training proposals are based on the needs assessment
data and substantiated with clearly written statements that communicate posi-
tively the desired training results. Recommendations should be aligned with the
overall club’s goals. If the needs analysis reveals factors that affect the club’s bot-
tom line, then upper management will better recognize the financial implications
of training. After the recommendations are approved, then any related to training
can be stated as well-defined training goals and objectives. At this point in the
needs assessment process, training goals and objectives should be relatively easy
to identify.
The most useful training goals and objectives are written as positive, direct,
definable, and measurable statements that align with the club’s goals. Training
goals and objectives should help the club overcome the problems that were identi-
fied in the needs assessment. Such goals and objectives clearly answer the ques-
tion, “Where do we want to end up once the training is complete?” Later, these
368 Chapter 9
training goals and objectives can be used as the criteria for evaluating the training
program(s).
As results are achieved through training, the return on investment (ROI) fig-
ures for the club should be made known. The perceived status of training and
development within the club will be heightened as positive results are docu-
mented and communicated.
Orientation and Socialization

Just as first impressions are crucial to a new member’s or guest’s perceptions, an
employee’s first impressions are as important to his or her adjustment in a new
club. An employee who is warmly welcomed into the club is more apt to feel that
his or her decision to join that particular club is validated.
A hospitable start to employment followed by an orientation program provid-
ing helpful information and continued socialization can greatly expedite a new
employee’s successful acclimation to the club. Continued socialization or mentor-
ing and a well-planned, comprehensive on-the-job training program can set the
stage for success and decreases the likelihood of turnover during the employee’s
first few weeks of employment.
Orientation
The first thirty days are crucial to the success of most new club employees. That
is when most new hires either receive proper orientation and go on to become
successful, long-term employees, or receive poor orientation and become over-
whelmed and discouraged, leading in many instances to a resignation. When an
employee resigns after just a few weeks on the job, the club loses all the time and
resources it spent on recruiting and hiring that employee. It is not difficult to see
that orientation is absolutely crucial to efficient operations and turnover reduction.
If a new employee’s first days on the job are positive and he or she gets needed
introductory information about the club and its operations, there is a greater likeli-
hood the employee will be committed to remaining with the club beyond the first
six to nine months of employment (which is typically the highest turnover period
after an individual is hired).
In addition to reduced turnover, numerous other benefits are enjoyed by
clubs that develop effective orientation programs for their new employees. Effec-
tive orientation programs:
•• Satisfy the new employee’s need to know about the club and where he or she
will be working
•• Improve morale and contribute to employee motivation
•• Increase employee commitment by explaining the club’s mission and
philosophy
•• Communicate to the employee what is expected
•• Show how individual jobs fit into the overall club mission
•• Help put the new employee at ease
Exhibit 2 Example of Orientation Activities
Some common activities to include in an orientation are:

•• A warm welcome to the new employees by the orientation leader. This per-
son may be the club’s training director, member of the training staff or human
resources department, or a designated employee from another area.
•• A welcome by major department heads, key employees whom the new employ-
ees will need to know, and the club’s general manager.
•• A video/slides/media presentation, with handouts, about the club’s philosophy,
mission, and goals, and the integral role of employees in meeting the club’s mis-
sion and goals.
•• Distribution of manuals and other printed materials.
•• A review of policies and procedures. The following are just a few examples of
policy topics that may be included, along with other important policy information:
•• Safety
•• Fires, accidents, and emergencies
•• Uniform/dress code standards
•• The performance review process
•• Grounds for dismissal
•• Punctuality and absenteeism
•• Smoking/eating/drinking
•• Substance abuse policy
•• A discussion and overview session. The following are just a few examples of
topics that may be included in the discussion, along with other important club
information:
•• Explanation of benefits
•• Guidelines of member and employee relations
•• The culture of private clubs, industry wide and club-specific
•• A completion of personnel forms.
•• A tour of the entire club property.
•• A meal or refreshment break.
•• Panel discussions involving department heads or other key staff.
•• A question/answer session.
Exhibit 2 lists examples of common orientation activities.

Bringing the Club’s History and Culture to Life. Most orientation programs
include two components—a broad, general club orientation and a specific depart-
mental orientation. In the general club orientation, company policies and proce-
dures that pertain to all employees are explained. Typically, the club’s mission is
370 Chapter 9
explained and discussed, as is the role of employees in meeting the club’s goals.
The general club orientation provides a great opportunity to discuss the history of
the club, including information on the club’s founding. New employees beginning
work at Disney World in Orlando, Florida, learn about Walt Disney and what led
to the birth of Disneyland. Employees entering Ritz-Carlton properties gain infor-
mation about César Ritz and the rich history signified by the Ritz name.
Orientation is also an excellent forum to discuss the concept and impor-
tance of service as it applies to both members and fellow employees. Examples of
exemplary service can help new employees connect actions to the club’s mission
statement.
Socialization
Orientation and socialization are both important to the new employee, but the
two differ in distinct ways. While orientation is typically thought of as a type of
training program encompassing one or several days, socialization is a longer, less-
structured process. Socialization to the club involves the employee learning the
culture of the club and includes the growing understanding of club values, norms,
and behaviors that are consistent with success at the club. An understanding of
these factors results in a greater likelihood that new employees will fit in with
their co-workers and work surroundings. While this process begins with infor-
mation covered in the orientation program, the true acculturation to the work
environment may take from several weeks to several months. Seven dimensions
have been identified for socialization learning: performance proficiency, language,
people, politics, organizational goals, values, and history.5
The socialization process is extremely important for employee retention.
Employees who are not properly socialized typically leave the club, often in the
first thirty days of employment. Research shows that new employees who are
effectively socialized are more productive more quickly than those who are not
adequately socialized. Socialized employees quickly learn which values are of the
highest priority and put those values to work in their jobs. Effective socialization
has also been linked to organizational profitability, employee performance, and
loyalty.
Socialization involves several distinct stages. The first stage, anticipatory
socialization, involves formed expectations before job entry. Stage two, the encoun-
ter stage, has been labeled “reality shock” and involves club entry and adjustment
to the actual working environment. The third stage, the insider stage, is character-
ized by the socialization process being complete, with the employee receiving full
acceptance as an organizational member and settling into his or her role. Social-
ization, however, is a dynamic process that occurs throughout one’s career. New
phases of socialization occur with job changes, career changes, new management,
and moves to other clubs or companies.
Designing Club Socialization Processes. All organizations can take a planned
approach to help employees learn the ropes. This is especially important in the pri-
vate club industry, as many employees are not familiar with clubs or their unique
characteristics. One of the first steps in the socialization process is for the club
to have a clear understanding of its own culture, including the values, norms,
and behaviors that are of greatest importance to effective employee performance.
Every club has a culture, although some are stronger than others. Each club’s cul-
ture is unique. Cultures are quite complex and particularly difficult for a current
employee or manager to comprehensively describe. Symbols, ceremonies, stories,
rites, rituals, and norms are indicators of a club’s culture. These characteristics are
more easily identified and described than the shared beliefs, values, and assump-
tions that form the foundation of the culture.
Approaches to Socialization. There are a number of approaches to the socializa-
tion process, with no one approach always being optimum. Each club’s socializa-
tion program needs to take into account the club’s unique culture. There are some
general choices that managers developing a socialization program must make,
however, such as:
•• Formal or informal. In formal strategies, newcomers are segregated from other
club employees. In informal strategies, newcomers are included with current
employees and much of the learning takes place in the work environment.
•• Individual or collective. Newcomers either go through socialization alone or
with other newcomers.
•• Sequential or nonsequential. Newcomers either go through identifiably differ-
ent stages of socialization or one single, transitional stage.
•• Fixed or variable. Fixed strategies are tied to a set timetable; variable strategies
are not.
•• Tournament or contest. In tournament strategies, newcomers win to move
onto the next socialization stage. In contests, newcomers are given multiple
opportunities to succeed.
•• Serial or disjunctive. Serial strategies involve current members teaching new-
comers to “act as we act.” Disjunctive strategies allow for new behaviors.
•• Investiture or divestiture. With investiture strategies, newcomers are given
information. With divestiture, old habits are taken away.
Some typical club processes, although not thought of as socialization, actually
do contribute to a new employee’s indoctrination in the club’s values, norms, and
traditions. For example, a new employee who is shadowing existing employees
sees values and norms in action. Selecting the appropriate employees to shadow
is crucial, because the club wants the new employee to gain an understanding
of the club’s true culture. Cross-training and requiring employees to gain experi-
ence in various non-supervisory positions before moving into management also
reinforces the socialization process. This is a common practice in many hospitality
organizations, including numerous private clubs.
Another socialization technique is called mentoring. Mentoring is a learn-
ing and professional development process in which an experienced employee,
the mentor, socializes another employee, the learner or protégé, introducing him
or her to the larger context of the club or club industry. The mentor employs a
number of methods that socialize the newer, less experienced employee, includ-
ing the following:
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•• Helps the protégé develop a realistic picture of the club or club industry,
including working relations among employees, protocol, organizational poli-
tics, traditions, and other unwritten procedures and practices.
•• Provides the protégé with additional contacts in the club or club industry that
can supplement and reinforce the socialization process.
•• Shares sources of information such as strategic plans, marketing reports, and
management briefings that build on the new employee’s understanding of
values and norms.
•• Serves as a role model, demonstrating values and behaviors desired by the
club or club industry.
•• Acts as a sounding board in providing advice, fielding questions, and listen-
ing to the ideas or impressions of the protégé.6
The mentoring process can take place on an informal or formal basis. With
the informal approach, mentors and protégés find one another and gravitate into
the mentorship roles. In formal mentoring programs, there is a structured pairing
of mentors and protégés. A number of sources state that the informal approach is
better, because in this case the more experienced employee, typically a manager,
shows a sincere interest in helping and supporting a particular less-experienced
employee. The formal approach involving structured pairings does provide the
club with more control over who is mentoring whom. The formal process should
include training for the mentors and protégés, and some type of evaluation pro-
cess. Even in formal mentoring programs, participation should always be volun-
tary for both mentors and protégés.
Hourly Employee Training

The training and professional development of club employees is a complex issue.
Many facets have been described already. The “how-to” of hourly employee train-
ing is also multi-dimensional. The manager or trainer will need to select the best
training method based on numerous factors, such as the topic, the number of train-
ees, the setting, and available resources, to name only a few.
Types of Training
Hourly employee training typically encompasses several broad classifications.
These classifications are defined by the number of trainees and where the training
takes place. Training of hourly employees is conducted either one-on-one or in a
group setting. In addition, training of hourly employees is conducted either on-
the-job or off-the-job, the latter often in a classroom or seminar setting.
One-on-One Training. The one-on-one training method trains individual employ-
ees. It can take place before, during, or after a shift and either on or off the job. It
gives the trainee individual attention and immediate feedback. It is a method that
allows the trainer to individualize the training to meet the specific needs of the
employee being trained. However, it also provides little opportunity for interac-
tion with other trainees or for team building.
Group Training. The group training method trains several employees at the same
time. It is particularly useful when the trainer must provide the same information
to several employees at once. It can take place before, during, or after a shift and
either on or off the job. It provides an opportunity for interaction with other train-
ees and can be useful in team building. It gives the trainee an opportunity to see
others needing to learn, too, and trainees often benefit from the expertise and expe-
riences of other trainees, especially if group interaction is used and encouraged.
In group training, feedback to individual trainees is limited, and, if provided,
must be done positively and professionally. Group training allows the trainer
to train a lot of people quickly, but does not allow the trainer as much time or
freedom to address the specific needs of an individual employee. In addition, it
requires significant planning efforts and can be more difficult to control.
On-the-Job Training. On-the-job training is conducted at the work site, during

normal business hours, and in the actual work settings. It provides maximum real-
ism. It addresses a trainee’s specific needs and is especially effective for one-on-one
training. Depending on the parameters of the training, it can be more cost-effective
than off-the-job training.
Off-the-Job Training. Off-the-job training is conducted virtually anywhere except

in the actual work setting. In private clubs, off-the-job training often occurs at the
actual club site, but not in the work area of those being trained—a private din-
ing room may be transformed into a classroom for a server training session, for
example. If a large number of people need to learn the same information at the
same time, and the training topic is well-suited for group training, then off-the-job
training can be very cost-effective.
The Four-Step Training Method

Many trainers—especially departmental trainers—use the Four-Step Training
Method to train both new and experienced employees. The Four-Step Training
Method is a basic training model developed initially by the American Hotel &
Lodging Educational Institute in Lansing, Michigan. This method is recognized
and used worldwide throughout the hospitality industry. The model is general
enough for both one-on-one training programs and group training programs. This
model can be used to implement an on-the-job training program and some off-the-
job programs—such as those occurring at the club where trainees are employed,
but not in their actual work setting. A few of the components of the model would
not apply to a seminar or workshop that club employees may attend off-the-job,
such as at a conference or professional meeting.
The steps in the Four-Step Training Method are:
1. Prepare to train
2. Conduct the training
3. Coach trial performances
4. Follow through
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Step One: Prepare to Train. Many trainers think they know the skills required
of employees so well that they can teach them without much thought or prepa-
ration. However, it is easy to forget important details if training is approached
without adequate trainer preparation. The training session will be most effective if
the trainer is skilled in the area being taught. The trainer should present the new
skills/knowledge/attitudes in a logical sequence, following the club’s performance
standards closely. When this is done, the trainees are better able to understand and
remember the steps necessary to perform the job.
Planning for training involves preliminary steps that are taken to answer the
following questions:
Who?
•• Who exactly should be trained?
•• How many employees need the training?
•• Who needs to cover the trainer’s and trainees’ job responsibilities during the
training session?
What?
•• What topics should be covered?
•• What are the employees’ expectations for the training?
•• What audiovisual aids and equipment will be needed for the training?
•• What other materials will be needed for the training?
When?
•• When should the training take place?
•• When will training be least likely to interfere with club operations?
•• When will trainees be most alert?
Where?
•• Where should the training take place?
•• Is the training space available or does it need to be reserved?
Why?
•• Why is the training needed?
How?
•• How should the training be conducted?
•• How will employees’ special needs be met during training?
A training plan and agenda helps ensure that the training is delivered in an
organized manner and is thorough and complete. To make the best use of the
training time available, trainers should prepare a detailed plan about how they
will help trainees learn the knowledge and skills required for each task. This step-
by-step plan details what the trainers expect to be doing in the training session.
The first preparation step is writing training objectives. Training objectives
state what a trainee should know or be able to do after training. The results from
the needs assessment will help identify what should be included in the training
objectives. Task lists, job breakdowns, and job descriptions can also be used to
fine-tune the training objectives. The trainer’s goal is to have the trainee do the
tasks at the performance level set by the club. Training objectives will need to be
updated or adjusted as necessary for a specific position or situation, based on any
changes in procedures, services, or information.
Trainers need to determine the best method for the trainee to learn the infor-
mation and skills presented during training. These methods might include demon-
strations, role plays, shadowing, practice, etc. Often, the training method depends
on the answers to the who? what? where? and how many? questions.
Scheduling is another important preparatory task. Trainers need to decide
how long each training session should take and schedule it during times of low
business volume. The needs of the trainee(s) and club will also influence the train-
ing schedule.
If possible, trainers should train employees at the workstations where they
will be working. Trainees should be standing or sitting where they will actually be
performing the task; otherwise, trainees may watch the work done from a reverse
angle, which may be confusing when they try to do the task themselves. Regard-
less of where the training is conducted, the training session needs to be in a room
that has appropriate ventilation, space, and comfortable seating for optimal learn-
ing to occur.
Finally, trainers will need to set up the training area in advance of the train-
ing session. Trainers should use this time to set up all materials and equipment
and check that all equipment is in working order. They should also check the
room’s temperature and ensure the room is set up in a manner that will enhance
the training.
Step Two: Conduct the Training. Once the trainer and trainee have been pre-
pared for training, the actual process can begin. At Sea World Adventure Parks in
Orlando, Florida, they use the T.R.A.I.N. acronym to conduct on-the-job training.
The acronym is:
Teach by showing
Repeat until comfortable
Ask questions
Imitate work conditions
Note good performance
Additional suggestions for conducting the training include:
•• Prepare the trainees. Motivate the trainees to learn. Do this by showing how
the trainees’ jobs fit into the overall club operation and why each employee/
trainee is important. Let the trainees know the benefits of the training, such as
helping them to do their jobs better. Explain the session’s training objectives.
•• Begin the training session. It is important to start on time and take breaks as
necessary. First, establish the training objectives. Then, explain each step of
376 Chapter 9
the training session and tell why it is important. Be sure the trainees under-
stand the standards and know that the standards will be used to evaluate
their performance. If the same training session will be conducted over time
by different trainers, to different trainees/classes, then care must be taken to
ensure that a consistent and standardized delivery is provided from person to
person and from class to class.
•• Demonstrate the steps. As trainers explain the steps, they should demonstrate
them. The steps should be arranged and demonstrated in the order that they
need to be performed in the workplace, meeting the club’s performance stan-
dards. Trainers should encourage trainees to ask questions whenever they
need additional information, or a step is not clear.
•• Avoid jargon. Jargon is language that is technical or specific to an industry,
such as “edible portion” in the kitchen or “fore” on the golf course. Trainers
should use words that employees new to the club or hospitality industry can
understand. An effective training tool could be a list or glossary of terms used
in the club industry, and any terms specific to the club.
•• Take enough time. Trainers need to go slowly and carefully. They should explain
and show each step thoroughly and be patient if trainees do not understand
the process/skill/knowledge right away.
•• Repeat the steps. Trainers should go over all of the steps at least twice to
increase the likelihood that the employees/trainees will completely under-
stand the process. During the second time a step is demonstrated, the trainer
should ask the employees/trainees questions to see whether they understand.
The steps should be repeated as many times as necessary.
Step Three: Coach Trial Performances. Once the trainee feels that he or she can
execute the duty or task in an acceptable manner, the trainer should allow the
trainee an opportunity to perform the steps alone. This is a trial performance. The
trainer’s job at this point is that of coaching these trial performances.
Once the trainees appear to understand each step, the trainer should ask them
to demonstrate and explain the steps. Trainers may plan for the trainees to practice
the trial performance(s) in an on-the-job situation, or by using training activities,
such as exercises, role playing, or case studies. By observing the trial performance,
the trainer can check to see whether the trainee really does understand the task/
skill/knowledge identified by the training objective. The trainer should not do the
tasks for the trainees or interrupt the performance unless the trainees are in danger
of hurting themselves or others.
Trainers should praise trainees when they perform correctly. Trainers should
gently correct the trainee who does not perform correctly, and repeat the steps of
training as necessary. Trainers should also be sure that trainees can perform each
step and explain its purpose before they move on to the next step.
Step Four: Follow Through. Follow through can be a part of the training session,
or it can follow training immediately, or occur several weeks or months later. The
trainee should continue to perform the new duties on the job after his or her trial
performance to gain speed and accuracy. Follow through may be a formal evaluation
of learning and program effectiveness, such as testing; or a less formal evaluation
technique such as observation.
Trainers are encouraged to observe trainees to see whether they have car-
ried their training experiences over to the workplace. Trainers can then provide
feedback about how the trainees are doing, and take this opportunity to remind
them of what was learned in training. Ideally, trainers should stay available to
their trainees to help solve any problems that come up related to the training topic.
Some suggestions for following through with training include:
•• Coach a few tasks each day. People cannot handle too much information at
once. Sessions are far more effective when they don't try to cover more than
a person can understand and remember. Additional training sessions can be
conducted if there is more information to be learned.
•• Evaluate the trainee’s progress. The following questions can be asked to evaluate
whether trainees have met the training objectives. Did the trainees learn? Are
they applying what they learned? If the trainees have not learned or are not
applying what they learned, then the trainer needs to provide further training
and practice. Evaluation may or may not take place immediately after training.
Some follow-up evaluation may take place at 30-, 60-, or 90-day intervals.
•• Continue positive support. Trainers should let the trainees know when they
perform well and what they are doing correctly after training. Positive feed-
back boosts confidence levels, reinforces good work habits, and increases
motivation. Employees need to know that someone noticed that they are
doing a good job.
•• Correct trainees when necessary. If trainees are not meeting performance stan-
dards, first they should be complimented on the tasks they are doing cor-
rectly, then shown how to correct their bad habits. Corrective feedback is
used to show employees what they can do to work more effectively and
confidently. Such feedback helps employees develop good work habits and
increases motivation. Employees need to know that someone cares whether
they do a good job. Many managers and trainers fail to correct their employ-
ees because they do not want to offend them. But not correcting employees
when necessary just sets them up for failure, which may in turn lead to poor
member and guest service.
•• Get the trainees’ feedback. Employees should evaluate the training they received.
This can help improve training efforts for them and for other trainees.
The Role of the Trainer

Before training begins, trainers have to know what trainees need to learn and be
able to describe it exactly. They need to know what the trainees must do and how
they must do it. This means that the trainer must know the club’s standards before
the training begins and train the trainees so that they can do the job task to the
desired performance level of the club.
Effective trainers are familiar with the job(s) for which they are providing
training. This job knowledge allows trainers to better:
378 Chapter 9
•• Communicate steps for performing required job tasks

•• Provide feedback
•• Answer questions
•• Evaluate trainee performance
Some of the most helpful tools for trainers are task lists and job breakdowns.
A task list tells what tasks an employee in a certain position must perform. When
trainers are preparing for training, the task list will tell them what tasks a trainee
should be able to perform after the training is completed.
Each task on a task list has its own job breakdown that tells how to perform
that task. The job breakdown lists the task’s steps, how the trainee should perform
the steps, and how well he or she should perform them.
Another helpful tool is a job description. Current job descriptions for each
position can help define the job and its requirements. Job descriptions can also
indicate which of the tasks are most important. A job description can be used in:
•• Preparing for training; it identifies what tasks a trainee should be able to per-
form after the training is completed.
•• Orienting and training a new employee so that he or she understands the
basic responsibilities of the position.
•• Evaluating the employee’s performance on the job.
In addition to task lists, job breakdowns, and job descriptions, trainers often
draw from their own personal experiences.
Often the trainer is a supervisor, a key or lead line/hourly employee, or a
member of the management staff. Managers within the individual departments
and those responsible for the overall training function must support and moni-
tor all training. The club should provide resources to hourly employee trainers
such as train-the-trainer programs, support materials, follow-up sessions, training
development education, and recognition.
Adult Learning
The training function within a club’s organization can play an important role
in educating managers and others involved in departmental training about the
unique aspects of training adults. The study of adult learning, or adragogy, is quite
extensive. Trainers in club operations must transform this theoretical knowledge
into real-life applications.
One of the leading adult-learner theorists, Malcolm Knowles, emphasized
that self-motivation is the best stimulus for adults, specifically the factors of “need
to know” and “readiness to learn” being critical to their success. When working
with a club’s fine-dining restaurant manager to decide how best to introduce a
new wine menu to his or her staff, a trainer can bring these principles to life. The
trainer and manager should place emphasis on the trainee’s need to know when
marketing the training several days before the sessions. Even if the training is
mandatory, a receptive and attentive group ready to learn will certainly make the
process more successful.
Adult learners are very interested in the concept of WIFM. A very effective
training technique, WIFM addresses the unspoken question with the employee
group and will likely maximize the “tuning in” process as employees listen for
WIFM, or “What’s in it for me?” A number of benefits for employees could emerge
with a new wine menu, such as becoming proficient with the types of wines
offered, being able to suggest food-wine pairings, and describing the wines using
rich and descriptive adjectives. One of the most obvious benefits to the employee,
and ultimately to the club’s restaurant operation, is an increase in the average
member’s check, which would likely increase sales and possibly wages.
Adult learners need training that is life-, task-, or problem-centered. The
practical aspects of being able to immediately apply the new knowledge, skills,
or aptitudes will reinforce the entire learning process. For example, knowing that
participation and involvement in the training sessions are crucial to success, adult
training sessions can be designed to include interactive training techniques such
as role plays, case studies, and games. In addition, the trainees can be given the
opportunity to discuss applications of the principles emphasized in experiential
learning exercises. Furthermore, adult groups can be arranged around tables for
discussion and collaboration rather than in the more formal and traditional class-
room set-up.
Effective training sessions for adult learners incorporate time for trainees to
reflect on the application of the new skills and discuss ways to refine and modify
them for effective use. The importance of internal factors should not be overlooked
either. Enhanced self-esteem and the feeling of accomplishment are paramount
motivators for adults in a learning environment.
Evaluation of Training
Because hourly employee or department-level training is so important, it must be
evaluated on an ongoing basis. This evaluation will let the trainer know whether
the training was successful and whether either the training needs to be improved
or the trainer needs additional development.
Evaluating the results of a training program are often left to the training
manager, yet the departmental trainer should be encouraged to find out whether
employees are using the knowledge and skills on the job that they learned in train-
ing. Evaluation may or may not take place immediately after training. As men-
tioned earlier, some follow-up evaluation may take place at 30-, 60-, or 90-day
intervals.
Online Training
Before we close this section on hourly employee training, we would like to draw
attention to online, web-based training programs as an option for the training and
development of hourly employees. One of the biggest benefits of such training is
its flexibility. Programs can be accessed from different locations at any time and
can be paced to ideally fit an individual’s learning needs. Online training can also
be very cost-effective, with estimates of online courses being as low as one-fifth
as costly as those offered off-line. Learning via online programs, also known as
380 Chapter 9
e-learning, also provides the opportunity for clubs to more easily tailor programs
to fit their particular training needs.
Online programs can be used for compliance training; in fact, by one estimate,
70 percent of all e-learning is for compliance purposes. Compliance training most
often relates to government regulations. For a club, this could entail food safety
and sanitation training, or fitness and pool certifications (e.g., for fitness trainers
and life guards), to name just a few examples. Compliance training could also
entail coverage of basic employment-law topics such as sexual harassment, with
the goal of avoiding such issues.
E-learning is rapidly changing along with today’s technological advance-
ments. Online programs are not just accessible on a computer anymore. E-learn-
ing can also be done via a tablet, cell phone, or other mobile device, making it
extremely accessible.
To determine if e-learning is the most effective training method to meet a
particular training need, clubs must determine if the training objectives can best
be met through an online option. The question of employee access to computers
or other forms of technology must be addressed as well. Another major consider-
ation: Is this method a good fit for the club’s employees? Older employees may be
more intimidated by online learning than their younger counterparts, for example.
Supervisory and Management Professional Development

A continuous state of change is a crucial factor in maintaining a competitive advan-
tage for most businesses, including private clubs. Frequently, the change agents in
any hospitality organization are the supervisors and managers. This makes their
own training and professional development needs of utmost importance to the
club. When supervisors and managers seek out development opportunities and
work at staying current in their field, they help create a positive future for their
club.
For many years, few formal training programs for supervisors existed and
most development dollars were spent on either hourly employees or upper man-
agement. Hourly employees often represented the most urgent needs and the
higher-level managers and executives were the ones facing increasingly complex
challenges. More emphasis has begun to be placed on developing supervisors and
middle managers, as the quality movement revealed how important these roles
are to the success of any service operation and their effect on hourly employees.
Supervisors in the club industry oversee line-level employees. They also have
a high degree of interaction with the club’s members and guests as services are
provided. It is the responsibility of supervisors to create a team atmosphere. In
addition to having responsibilities for day-to-day operations of the club, they are
also responsible for the motivation and learning of their employees.
The demands of a learning organization in the twenty-first century call for
new management styles among supervisors and managers. The autocratic or dic-
tatorial leadership style used in the hospitality industry for decades does not work
with the work force of today. Today’s employees want to continue to develop their
skills and want to be involved and empowered, so clubs must train their man-
agers and supervisors in non-autocratic management approaches. Clubs can do
this through management training programs, mentoring, and team-building pro-
grams. If managers and supervisors do not adapt to the changing needs of today’s
work force and continue dictatorial styles, their leadership can poison the club’s
culture, and many employees will simply leave such an organization. Training
and development can help supervisors and managers achieve change throughout
their club and enhance their careers.
Fortunately, in the club industry most managers excel in supportive leadership
styles. Dottie Donovan researched club manager leadership styles and discovered
that a supporting leadership style was the most common style found among club
managers. They excel in listening, praising, asking for input, sharing information,
using team building, and problem-solving techniques. Where they lack is in the
skills of setting and clarifying goals, planning work in advance, setting timetables,
defining roles, defining methods of evaluation, showing or telling how a task or
goal is to be done, and checking or monitoring work progress.
Benefits of professional development opportunities for supervisors and man-
agers include:
•• Professional learning
•• Increased job security
•• Professional growth
•• Interaction with others in the same profession
•• Professional commitment
•• Enhanced personal benefits
Common Training Needs for Supervisors

Training topics should be based on the needs of the individual employee and the
club. However, there are some common types of training often needed by supervi-
sors and middle managers in the club and hospitality industries. A highly com-
mon training demand is for team development.
One method for team building that has gotten a lot of attention is the “ropes
course.” A group of individuals, usually limited to twelve people at a time, come
together in a camp-like setting with skilled professionals and go through a pro-
cess of activities on ropes. The purpose of this type of training is to increase com-
munication skills, increase bonding between the participants, build trust, and
facilitate working together as a team. The activities are chosen to emphasize the
need to work together, and ultimately work statements that used to begin with “I”
become statements that began with “we.” This type of training encourages team-
brainstorming sessions to face problems and find solutions in the workplace.
Other examples of the types of training supervisors typically need include the
following:
•• Time management
•• Leadership
•• Communication
382 Chapter 9
•• Written
•• Nonverbal
•• Improving employee performance
•• Scheduling
•• Interpersonal skills
•• Basic financial management
•• Labor relations
•• Human resource laws
•• Professionalism
•• Ethics
Exhibit 3 gives examples of training and development approaches.
Professional Development for Managers

The Club Managers Association of America provides enormous educational
opportunities throughout the world for club managers. Annually, there is a world
conference on club management where nearly one hundred professional speakers
who are experts in specific fields related to club management are brought together
with club managers for five days of extensive educational opportunities. CMAA
has forty-six senior chapters, throughout the United States and abroad, which also
host education for their regional members. Utilizing advancements in technology,
CMAA offers many online educational opportunities, and message boards used
for questions/answers are often active components of CMAA chapter websites.
CMAA’s Business Management Institute provides an extensive amount of educa-
tion, specific to the different facets of the club industry, to club managers in a con-
venient and inexpensive fashion. BMIs are held on university campuses through-
out the United States, and provide club managers with more than forty hours of
education in five days.
To better reflect the degree of professionalism and knowledge required of suc-
cessful club managers, CMAA created a certification process in 1965. As the club
industry has become more complex and the requirements of the club manager
position have increased, the certification process has been evaluated and updated
numerous times. The Certified Club Manager (CCM) designation is recognized as
a prestigious accomplishment throughout the hospitality industry. Many profes-
sional club managers cite the attainment of the CCM as the hallmark of their pro-
fessional advancement and a career milestone. The certification process takes most
managers four to six years to complete, as they are usually busy operating success-
ful clubs at the same time. The certification process culminates with a seven-hour
exam based on ten competency areas in club management.
The Master Club Manager (MCM) designation was created in 1990 to recog-
nize significant and long-term contributions of managers to their clubs, the club
industry, and their communities. By design, this is an extensive certification pro-
cess and honors only those club managers who have demonstrated that they are
Exhibit 3 Examples of Training/Development Approaches
The development opportunities for supervisors and managers range from self-
study programs to club-level seminars to continuing education to certification.
Managers seek educational opportunities through local universities and profes-
sional associations like CMAA.
Club Supervisors University
Chapters of CMAA, found throughout the world, have sponsored numerous educa-
tional and training programs that are offered on a regional or state-wide basis for
club managers. Club Supervisors University was initiated by the Georgia chapter
of CMAA, in partnership with Georgia State University, to address the professional
development needs of supervisors. Club Supervisors University is a 30-hour train-
ing program that is offered over a five-week period for supervisors from depart-
ments with direct member/guest contact and for supervisors who oversee opera-
tions in the crucial, but sometimes less obvious, departments of the club such as
stewarding, housekeeping, and maintenance. Topics include vital subjects such as
communicating with a diverse work force, maximizing a motivational working envi-
ronment, resolving conflicts and disciplinary issues, and contributing to continual
improvement efforts. The class sessions are very interactive, utilizing techniques
such as role plays, case studies, and group discussions.
The MID Program
The Manager in Development Program began as an inspiration of William A.
Schulz, MCM, General Manager of the Houston Country Club, as he developed the
concept for his successful MCM monograph. Today the MID program is a hands-on
training program comprised of ten content modules, which are based on the core
competency areas identified for CMAA's certification program. This training pro-
gram was designed to offer clubs a comprehensive management training program
specific to the club industry. Its completion awards the manager a measurable, and
well-respected, benchmark in his or her career. The training process takes place in
the club where the manager is employed, under the guidance of a mentor.
among the very best in the industry. To earn this challenging designation, club
managers must successfully complete several steps, including written documen-
tation of their leadership activities in the club industry and in their communi-
ties. The most notable phase of the MCM process is the completion of an in-depth
research study documented as a monograph. The main purpose of the monograph
is to provide valuable, applicable information to other club managers through the
extensive research done by the MCM candidate.
Outsourcing Training
Outsourcing training is a relatively new concept to clubs. Outsourcing involves
the “transferring to external resources services previously provided internally.”7 It
is almost inevitable that at times external suppliers will be needed for some type
of training. A Gallup survey revealed that 84 percent of the companies surveyed
384 Chapter 9
bought training products and services from outside sources.8 External suppliers
in training and professional development may take on a number of varied roles,
from conducting a needs assessment and analyzing performance gaps to design-
ing training processes (including online options), delivering programs, and pro-
viding an evaluative, return-on-investment model. Training is so crucial to a club’s
future that, before outsourcing is done, the club’s management must establish
clear criteria for determining the type of outsourcing needed, selecting the sup-
pliers or vendors, and prescribing parameters within which the suppliers/vendors
will operate.
Even when training is offered by external sources, the club will still have
the ultimate responsibility and liability for training, so it is extremely important
that training standards and expectations be clearly defined and explained to the
training partners selected. As one author put it, “Outsourcing is a marriage, not a
separation.” Even though training functions are outsourced, the club retains the
responsibility for managing the learning and development activities. The devel-
opment and evaluation of training as a critical employee-performance strategy
should “never be totally displaced from the nerve center of the operation.”9
One of the foremost questions to consider in determining whether to out-
source certain training and development activities is whether these activities
support and contribute to the club’s mission and goals. Too often, organizations,
including clubs, get caught up in a near frenzy, conducting training on certain top-
ics because it’s “the thing to do.”
Other issues to consider in deciding whether to outsource training activities
include:
•• How many employees are to be trained, and will the need for retraining be
consistent?
•• What advantages are involved in retaining an outside training provider?
•• Does expertise exist within the organization? If so, what can a supplier pro-
vide that in-house providers cannot?10
Advantages and Disadvantages of Outsourcing

Outsourcing may be necessary because there are no internal sources with the
needed level or type of knowledge and skills to meet the club’s training objec-
tives. In some cases, outsourcing is more cost-effective because the supplier is not
on the payroll and so the club does not incur the costs of a benefits package and
other expenses. Using an external supplier or consultant also is advantageous in
situations where objectivity and a certain level of assertiveness are needed. The
club’s internal trainers may be hesitant to adopt the level of assertiveness needed
because they have to “live with the client.”
One of the main disadvantages of outsourcing training is dealing with
unknown suppliers. Even though a consultant may have delivered an excel-
lent program at another club, there is always the element of doubt in knowing
whether he or she can duplicate that success. The “fit” with the club’s philosophy
and culture is of paramount importance, yet this fit is sometimes difficult to eval-
uate in advance. Countless stories have been told of clubs that contracted with
internationally acclaimed presenters, only to have their training program nearly
fail because this “outsider” committed a terrible faux pas, such as using profanity
or inappropriate humor.
Endnotes
1. Peter Senge, The Fifth Discipline: The Art and Practice of the Learning Organization (New
York: Doubleday, 1990).
2. Tamar Elkeles, “Learning Connections: Build Relationships in Troubled Times,” Chief
Learning Officer, February 2010; www.clomedia.com.
3. Leanne Markus, “Talent Management Systems for the 21st Century,” Human Resources,
March 2010, pp. 18–20.
4. 2009 State of the Industry Report: ASTD’s Annual Review of Trends in Workplace Learning
and Performance (Alexandria, Va.: ASTD, 2009).
5. G. T. Chao, “Unstructured Training and Development: The Role of Organizational
Socialization,” in J. Kevin Ford, ed., Improving Training Effectiveness in Work Organiza-
tions (Mahway, N.J.: Lawrence Erlbaum Associates, 1997).
6. R. Sisakhti, Effective Learning Environments (Alexandria, Va.: ASTD, 1998).
7. G. J. DeRose, Outsourcing Training & Education (Alexandria, Va.: ASTD, 1999).
8. Ibid.
9. Ibid.
10. P. N. Blanchard and J. W. Thacker, Effective Training: Systems, Strategies and Practices
(Englewood Cliffs, N.J.: Prentice-Hall, 1999).
Key Terms
adragogy—The study of adult learning.
Certified Club Manager (CCM)—A professional certification designation from
the Club Managers Association of America. Considered a prestigious accomplish-
ment, this certification is based on ten operational competencies identified as most
important to the day-to-day success of a club manager.
corrective feedback—Communication provided by a trainer or manager to train-
ees indicating their performance is in need of improvement.
job breakdown—A document that states how to perform each task required by a
position.
job description—A document that delineates a summary of the job position, lists
job tasks, outlines the knowledge/skills necessary to perform the job, specifies
working conditions, identifies which tasks are essential and which are of second-
ary or marginal importance, and identifies prerequisites for the position, such as
education, prior work experience, certifications/certificates, and which qualifica-
tions are preferred but not required.
lifelong learning—The process of continuing to develop knowledge and skills
after formal education is finished, as people pursue knowledge either for personal
386 Chapter 9
or professional reasons throughout their lives. The lifelong learning concept can
be applied to an individual or an organization, such as a club.
Master Club Manager (MCM)—A professional certification designation from the
Club Managers Association of America that recognizes significant and long-term
contributions of managers to their clubs, the club industry, and their communities.
mentoring—A learning and professional development process in which an expe-
rienced employee, the mentor, socializes another employee, the learner or protégé.
needs assessment—A systematic process for determining gaps between ideal and
actual performance. The process involves collecting data to determine where the
club’s gaps exist.
online learning—Web-based training that is highly flexible (it can be accessed
from different locations at varying times) and can be paced for individual learning
needs. Also referred to as e-learning.
outsourcing—Turning to external resources for services previously provided inter-
nally; for example, some training programs are outsourced to training companies,
educational institutions, or government resources instead of being designed and
delivered by club staff members.
positive feedback—Communication provided by a trainer or manager to trainees
that indicates their performance is good; praise and recognition is offered on what
they are doing correctly.
talent management—Aligning human capital and business strategies to support
the club’s organizational and financial goals.
task list—A document listing what tasks an employee in a certain position must
perform.
training objective—A statement that clearly defines what a trainee should know
or be able to do after he/she has completed that specific training. The results from
the needs assessment will help identify what should be included in the training
objective.
trial performance—An activity of the trainee during training, during which he or
she attempts to execute or show the new skill/knowledge/attitude being taught.
WIFM—An acronym for the question, “What’s in it for me?” WIFM is a very
effective training technique with adults, as it addresses their unspoken question,
“What’s in it [the training] for me?”
Review Questions
1. Why do private clubs continue to prosper today?
2. What is lifelong learning?
3. In what ways can you measure training’s return on investment?
4. What are some methods for collecting training assessment data?
5. What is the difference between orientation and socialization?
6. What are the common types of hourly employee training?
7. What are the benefits of providing professional development opportunities
for supervisors and managers?
8. What are some professional certifications available for club managers?
9. What are some of the advantages and disadvantages of outsourcing training?
Additional Reading
Blanchard, Ken. Leading at a Higher Level. Upper Saddle River, N.J.: Pearson/Pren-
tice Hall, 2007.
Cannon, D. F., and C. M. Gustafson. Training and Development for the Hospitality
Industry. Lansing, Mich.: American Hotel & Lodging Educational Institute,
2002.
Dolasinski, Mary Jo. Training the Trainer: Performance-Based Training for Today’s
Workforce. Upper Saddle River, N.J.: Pearson/Prentice Hall, 2004.
Stolovitch, H. D., and E. J. Keeps. Telling Ain’t Training. Alexandria, Va.: American
Society of Training and Development, 2002.
Internet Sites
American Society for Training and Development
www.astd.org
www.cmaa.org
Part III
Club Operations
The Importance of Club Food and Beverage 1. Describe the importance of food and
Operations beverage operations to clubs.
Why Food and Beverage Operations (pp. 391–395)
Are Important 2. Explain the organization of club food
How Club Food and Beverage and beverage departments.
Operations Compare to Other (pp. 395–399)
Hospitality Segments
Organization of Club Food and Beverage 3. Describe how the menu drives food
Departments and beverage operations in clubs, and
Types of Food and Beverage Facilities discuss the role of food and beverage
in Clubs staff in clubs. (pp. 399–406)
Organization Charts and Position 4. Summarize financial aspects of club
Profiles food and beverage operations.
The Importance of the Menu (pp. 406–410)
The Food and Beverage Staff
Financial Aspects of Club Food and 5. Discuss trends that will likely affect
Beverage Operations club food and beverage operations in
Monthly Food and Beverage the future. (pp. 410–416)
Operating Statement
Food and Beverage Minimums
The Future of Club Food and Beverage
Operations
Today’s Consumers Expect More and
Spend More
Operators Must Be at the Top of Their
Game
Diner Profiles Reveal Food Attitudes
Major Trends
10
Club Food and Beverage
Operations
This chapter was written and contributed by Catherine M. Gustafson,
Ph.D., CCM, CHE, Associate Professor, University of South Carolina,
Columbia, South Carolina; and Jack D. Ninemeier, Ph.D., CHA,
Professor, Michigan State University, East Lansing, Michigan.
All clubs offer some type of food and beverage service to members. Some have
just one food and beverage outlet, such as a dining room offering à la carte menu
selections for one or more meal periods. Other clubs provide members with a wide
variety of dining options that often include fine dining, casual dining, catered spe-
cial events, lounges/bars, grill or card rooms, and snack bar operations.
There are many similarities and some differences between club food and
beverage operations and their counterparts in other segments of the hospitality
industry. In this chapter you will learn about the importance of food and beverage
operations to clubs. We will discuss the organization of club food and beverage
departments and explain why, for all food and beverage operations, the menu is
so important. We will also review staff issues, examine financial concerns and,
finally, conclude the chapter with a look at trends that may affect future food and
beverage operations.
The Importance of Club Food and Beverage Operations

People join private clubs for business and social reasons, for access to high-quality
recreational facilities, for exclusivity and personal recognition, to enjoy high-end
service, and/or because of family tradition. Most members do not join clubs solely
for access to food and beverage services. However, the quality and value provided
by a club’s food and beverage operation helps to attract and retain club members.
Why Food and Beverage Operations Are Important

Food and beverage operations are important to clubs for several reasons:
First, excellent food and beverage operations help to attract new members.
Consider the positive impressions of a member’s guests when they enjoy a meal or
dining experience at the club while attending a family or business occasion.
Second, a club’s food and beverage services are important for member reten-
tion. Members’ expectations about all aspects of their club are very high, and excel-
lent food and beverage facilities go a long way toward keeping members happy
with their club.
391
392 Chapter 10
A Note About Competition

Private clubs compete with restaurants and hotel dining facilities for the “dining out”
dollars spent by their members. In many communities, especially large ones, local
hospitality operations offer formal, upscale-casual, casual, family, and other dining
alternatives of potential interest to club members.
In addition to these alternatives, some competitors are now offering a rela-
tively new dining concept, “dining clubs” or “gourmet food societies,” that offer
exclusivity, name recognition, and other amenities typically found most often only
in private clubs. They may also offer financial advantages (no initiation fees or
minimum charges) that set them apart from most clubs.
Contemporary club managers must respond to these competitive threats with
creative ways to offer food and beverage services that provide significant member
value—enough value to encourage members to continue returning to their clubs for
dining occasions.
Third, a club’s food and beverage operations contribute to the financial goals
established by the club. These goals may be to operate at a surplus (profit), break
even, or perhaps tolerate a loss of a specified amount. Whatever financial goals are
established, they must be attained, as revenue targets and estimates of associated
costs are factored into the club’s yearly budget. The financial success of most clubs
is closely tied to the fiscal results of their food and beverage operations.
Fourth, when the club’s food and beverage staff consistently delivers quality
food and exemplary service, club members are more likely to see the club in a
positive light. What food and beverage managers and staff do (and don’t do) has a
considerable impact on the perceptions that members have about their club.
Nearly one million club members and their spouses were surveyed by the
McMahon Group, a large, well-respected consulting firm that specializes in pri-
vate club operations.1 The survey’s goal was to determine the relative level of
importance members placed on several key aspects of private clubs (e.g., golf, din-
ing, fitness, pool, etc.). Eighty-five percent of the respondents rated dining to be
either “important” or “very important.” Dining ranked first (followed, in order,
by golf, fitness facilities, and social functions/special events) as the most impor-
tant club attribute when all of the various programs, amenities, and services that
private clubs offer were rated by both members and spouses. Initially this statistic
might be surprising, but, after considering which areas of a club are frequented
most often and by whom, it stands to reason that food and beverage operations
were rated so highly. More members and their spouses are likely to dine at the club
than play golf, work out, swim, or use other facilities at the club.
How Club Food and Beverage Operations Compare to Other

Hospitality Segments
To set the context for the study of any food and beverage operation, it may be help-
ful to make a distinction between commercial and non-commercial food service
Club Food and Beverage Operations 393
operations. Commercial food service operations such as free-standing restaurants
exist primarily to generate profits from the sale of food and beverage products
and services. In contrast, non-commercial food service operations, such as those
in educational institutions or hospitals, may or may not want to generate a profit.
Non-commercial food service facilities operate within a larger host organization
whose primary business is not that of providing food and beverage services.
Clubs, along with cruise lines, casinos, amusement parks, theme parks, and
other hospitality industry segments, do not exist primarily to provide food and
beverage services. However, they all do so to meet the needs and desires of their
markets. Managers of commercial and non-commercial operations must always
keep the needs and desires of the consumers of their products and services in
mind when making decisions. Managers in both types of food and beverage oper-
ations have financial goals, and they work hard to meet them without sacrificing
the quality requirements driven by the markets they serve.
How are club food and beverage operations similar to their counterparts in
for-profit commercial operations? Some basic similarities include the following:
•• All food and beverage operations must be responsive to their markets. They are
called “members” in clubs, “guests” in hotels and restaurants, “patients”
in hospitals, and “students” in educational facilities, but whatever they are
called, consumers of food and beverage products and services are the basis
upon which all decisions are made within any successful food and beverage
operation. You will find club managers and chefs discussing such questions
as: What do the club members need or want? What is their definition of value?
What gives us an edge over the competition? These are among the questions
that must be successfully addressed by club managers in order to make deci-
sions that will help their food and beverage operations thrive.
•• Menus must be developed that represent the planning team’s best assessment of
the food and beverage products and services desired by those being served. The
menu for each club food and beverage outlet is developed while keeping the
club members’ wants and needs in mind. The menu, in turn, drives the devel-
opment and implementation of basic processes for purchasing, receiving,
storing, issuing, producing, and serving food and beverage products.
•• Numerous procedures are required to effectively facilitate the work of many staff
members who are needed to manage and operate the food and beverage facili-
ties. Food and beverage operations are labor-intensive. Technology has not
replaced the need for people when it comes to producing and serving food
and beverage products.
•• There must be an ongoing concern for the health and safety of consumers and staff
members. Foodborne illnesses and even death can occur when food products
are handled unsafely. Effective food handling procedures do not differ by the
type of operation—microorganisms do not care whether they are in a com-
mercial or non-commercial operation! As well, injuries and deaths can also
occur when procedures to ensure the responsible consumption of alcohol are
not in place or are not followed.
394 Chapter 10
A Note About Technology

Club food and beverage managers share the increasing use of technology for
enhanced service, management, and control with their peers in other hospitality
industry segments. For example, point-of-sale (POS) systems generate revenue
and sales mix information in clubs, and automated dining room reservation and
dining room table status systems are in use. Social media such as Twitter and
Facebook are used to communicate with members, and club websites offer cre-
ative ways to provide member information and receive feedback about club food
and beverage operations.
Production personnel in some clubs are now using automated recipe systems
that calculate expected food cost information to assist with menu pricing and deter-
mine the actual costs of food used. Purchasing management systems help to track
inventory costs and determine the timing for and quantities of product purchases.
Accounting functions are commonly used for food and beverage control,
including budgeting and developing food and beverage departmental operating
statements. As technology proves itself to be cost-effective, its role in decision-
making activities will continue to grow in the club industry.
•• To be successful, there must be an emphasis on quality. Quality can be defined as

the consistent delivery of products and services in a way that meets the opera-
tion’s standards; these standards are set to meet or exceed consumer expecta-
tions. Managers in all types of food and beverage operations must establish
standards driven by what their consumers want and expect, and they must
develop ways to ensure that these standards are consistently achieved.
There are also ways that club food and beverage operations differ from their
counterparts in other segments:
•• One significant difference between clubs and most of their commercial counter-
parts (large hotels and casinos being prominent exceptions) is that clubs must
prepare food and beverages for many different outlets, usually out of one kitchen.
Most clubs have numerous food and beverage outlets. Many variables change
from one outlet to the next, such as menu, style of service, volume of covers,
and service timing expectations. You can imagine the complexity of an opera-
tion that must, at the same time, provide food for a snack bar, a bar/lounge
(very quick service), banquets (specific times of service), and formal dining
(where a meal can be a two- or three-hour event).
•• In clubs, food and beverage products and services are delivered in an organization
that exists, in part, for the social affiliation of its members. Most club members
are frequent consumers of the club’s food and beverage products and services,
and they tend to know each other and the club’s managers and staff. Club
members have higher expectations than consumers in other food and bever-
age operations in terms of wanting to be recognized and served. Referring
to members by name, seating them at their favorite tables, and remembering
their special occasions such as birthdays or anniversaries are examples of ways
that club food and beverage staff members show recognition to members.
•• In equity clubs, food and beverage managers receive formal advisory input from
members. Equity clubs are those that are owned by their members and are
governed by a board of directors elected by the members. Typically, the orga-
nizational structure includes a house committee. Part of this committee’s
duties is to make recommendations about the club’s food and beverage oper-
ations. Wise club managers carefully consider these recommendations and
take action whenever feasible. Although all food and beverage facilities strive
to please their markets, this type of direct recommendation is not typical in
most non-club food and beverage operations.
•• Staff turnover rates are frequently lower in clubs than in restaurants and hotels.
This is good, because it is easier to attain efficiency and quality service goals
when staff turnover is low. However, low turnover can also create challenges,
such as the need for periodic retraining, staff resistance to changing proce-
dures, and the possibility that improper work habits will develop over time.
Also, if compensation is based, at least in part, on seniority, a significant wage
gap can develop between beginning and senior food and beverage staff.
Sometimes, especially when club retirement packages are not available or are
underfunded, club food and beverage employees may work longer than they
should. Long-term staff members may become too familiar with members (as
often they have watched them grow up from childhood) and not respect the
appropriate professional distance that should be maintained between club
members and employees.
•• Club food and beverage operations frequently require members to spend a mini-
mum amount for food and beverage purchases during a specified time period (such
as monthly or quarterly). This practice is controversial and will be discussed
later in the chapter.
Organization of Club Food and Beverage Departments

The organization of a club’s food and beverage department varies by the type of
club (country club, city club, or yacht club, for example), the club’s size, and the
number and type of food and beverage outlets.
Types of Food and Beverage Facilities in Clubs

It is common for a club to offer food and beverage alternatives that range from
formal, elegant cuisine to casual and fast-food fare. A quick overview of the food
and beverage facilities found at many clubs will illustrate this point:
•• Formal dining room. Many clubs have at least one formal dining room; typi-
cally the menu is à la carte. Traditional formal dining (wait staff in full tux-
edos, and member coat and tie required for service) is declining in the United
States. However, formal dining rooms are still used by members in many
clubs to celebrate a special occasion such as a birthday, an anniversary, or
an agreement about an important business arrangement. Many clubs have
396 Chapter 10
adjusted the hours of operation of their formal dining rooms to reduce costs
and ensure more patronage per night (for example, the formal dining room is
open only three nights a week rather than six or seven).
•• Upscale-casual dining room. “Upscale-casual” service provides traditional
high-quality food and a high level of service while allowing members to be
more casually attired. At clubs, “resort casual” (no coats and ties) is a typical
dress code for this type of dining facility.
•• Casual dining rooms. Most clubs have casual dining rooms, and most of them
feature an à la carte menu; additionally, some clubs reserve a specific din-
ing room for buffet-style food service. Often these rooms are segmented by
type of diner. For example, there may be a casual dining room targeted to
serve families, a casual adult-only dining room, and there may even be casual
dining rooms divided by gender that are an extension of the gender-specific
locker rooms. These are typically called the Men’s Grill and the Card Room
(where female club members often gather to play bridge).
•• Quick-service (at-the-counter) dining outlets. These outlets are most often
found in two club locations: the pool snack bar and the Halfway House or
Turn Room. The pool snack bar sounds unassuming, but some facilities serve
entire meals to members enjoying the pool area. The Halfway House provides
snacks or quick, finger-type foods to golfers. Typically, a hole or two before
the “turn” (the halfway point on a golf course which is after the 9th green),
an area with a telephone or point-of-sale terminal is available to encourage
members to order ahead, so that their food and beverage orders will be ready
when they reach the turn and they can receive their refreshments quickly,
which minimizes the interruption of their golf round. At clubs where tennis
is especially popular, there may also be a snack bar within the tennis shop.
•• Catering and banquet facilities. Catering and banquet facilities are usually a
dominant aspect of any club’s food and beverage operation. Many clubs have
formal ballrooms; some even have two or three! It is common for a club to
have numerous private dining rooms with space designed to accommodate
parties of four to 1,000 persons or more. These private rooms are often luxu-
rious. They allow families to celebrate special occasions such as weddings,
birthdays, bar and bat mitzvahs, and anniversaries at the club. Banquet opera-
tions may also be used for club-sponsored events (club-wide theme parties)
and popular holidays celebrated throughout the year. Food and beverages
served by catering and banquet operations can range from simple coffee
break service for small business meetings to formal, multi-course meals for
weddings and other events. Boxed lunches, pool-side parties for children, and
outdoor barbeques are other typical services provided by a club’s catering
and banquet operation.
•• Lounges or bar areas. Lounges and bars in clubs provide light snacks as well as
beverages; many serve hot appetizers or casual meals.
•• Roving refreshment carts. Roving refreshment carts provide food and bever-
age service to members and their guests on the golf course(s).
•• Vending machines. Vending machines are often available near recreational
facilities.
•• Take-out food services. Some clubs provide take-out food service for members.
A few clubs also offer delivery of some food items (pizza, for example). Holi-
day meals are popular for take-out because they reduce the meal preparation
time for members who may be hosting a holiday event at home.
•• Lobby food services. Lobby food services (continental breakfast items, for
example) and in-suite meals (room service) may be an option at clubs offering
member/guest sleeping accommodations.
•• Employee dining facilities. Employee dining facilities are often adjacent to the
club’s main kitchen. Meals are available to all club staff, not just those working
in the food and beverage department. Given the diversity in where and when
people work at a club, food and beverages for employees typically must be
made available over long time spans.
As you can see, there can be great variety in a club’s food and beverage
facilities. This means that food and beverage personnel must be knowledgeable,
skilled, flexible, and ready to accommodate members and their guests in multiple
facilities.
Organization Charts and Position Profiles

There is no common organization chart for a club’s food and beverage operation.
However, there are some common principles that apply, and we will review some
typical organizational structures.
Exhibit 1 shows the club’s food and beverage management team. The food
and beverage director reports to the clubhouse manager and directly supervises
the work of an executive chef, a catering manager (whose role is primarily selling
banquets and other group functions), a banquet manager, a beverage manager,
and managers for the various food and beverage outlets in the club. (Note: in some
clubs, the catering manager is supervised by the director of marketing.)
The mid-level managers are responsible for their segment of the food and
beverage operation; for example, an executive chef oversees food production
and other “back-of-the-house” responsibilities, a dining room or restaurant
manager has “front-of-the-house” responsibilities, and a beverage manager or
head bartender is in charge of the club’s beverage operations.
Exhibits 2–6 show typical organization charts for specific areas of the club.
Since these charts are examples only, the organization and staff positions within
them will vary based on the club’s size, volume of business, and other factors.
For example, a club with only two or three banquet rooms will require fewer
catering and banquet positions than another club with one or two ballrooms,
smaller banquet rooms, numerous meeting rooms, and an extensive catering and
banquet business.
Chapter Appendix A shows a sample job description for the food and bever-
age director in a large club. As you review the job tasks/duties section, note that
most of these tasks are applicable to the manager in charge of a large food and
398 Chapter 10
Exhibit 1 The Food and Beverage Management Team
General Manager/
Chief Operating Officer
Clubhouse Manager
Food & Beverage

Director
Executive Chef
Catering Manager
Banquet Manager
Beverage Manager
Dining Room/
Restaurant Manager
Location A
Dining Room/
Restaurant Manager
Location B
Dining Room/
Restaurant Manager
Location C
Exhibit 2 Sample Organization Chart—Club Culinary Department
Executive Chef
Purchasing Agent
Sous Chef
Banquet Chef Pastry Chef À la Carte Chef
Line Cooks
Prep Cooks
Ware Washers
beverage operation in almost any hospitality segment. This is good news for those
considering careers in the food and beverage field. As you can see, the food and
beverage knowledge and skills you learn during formal education and on-the-job
training readily transfer from one segment of the hospitality industry to another.
Chapter Appendix A also shows a sample job description for a club’s execu-
tive chef. The executive chef is a valued member of the club’s staff and often has
an opportunity to earn bonuses above and beyond regular salary. For example,
a bonus might be earned for maintaining food and labor costs within a specified
percentage of budget estimates or for rewriting the club’s menus a certain number
of times during the year.
Sample job descriptions for the dining room manager, beverage manager,
banquet manager, and catering manager are also in Appendix A at the end of the
chapter.
The Importance of the Menu

There’s an old saying in the food and beverage industry that “It all begins with the
menu.” This is true in all food and beverage outlets, including those in clubs. Exhibit
7 illustrates the priority concerns of menu planners. Note that the club member is at
the top of the list. One might argue that the task of menu planning is easier for a club
food service manager than for a restaurant or hotel food service manager, because
the members of a club typically share more similar characteristics than the general
400 Chapter 10
Exhibit 3 Sample Organization Chart—Club Restaurant/Dining Room
Restaurant Manager
Restaurant Supervisors
Captains
Lead Wait Staff
Wait Staff
Bus Personnel
Exhibit 4 Sample Organization Chart—Club Beverage Department
Beverage Manager
Head Bartender Wine Sommelier
Bartenders
Bar Backs
public. Conversely, one might argue that menu planning is more difficult in clubs,
since they only serve their members, and the food and beverage outlets must offer
sufficient variety to consistently attract and appeal to the same group of people.
A club’s menu planning team, typically comprised of the food and beverage
director, executive chef, dining room manager, members of the club’s house com-
mittee, and others, has a formable task. In large clubs with numerous food and bev-
erage outlets, the task is even more complicated and time-consuming. Adequate
Exhibit 5 Sample Organization Chart—Club Banquet Department
Banquet Manager
Banquet Supervisors Head Houseperson
Banquet Captains Housepeople
Lead Wait Staff
Wait Staff
Bus Personnel
Lead Bartender
Bartenders
Bar Backs
Exhibit 6 Sample Organization Chart—Club Catering Department
Catering Manager
Administrative
Catering Sales Catering Sales
Assistant
attention must be given even to “simple” menus such as the one offered at a pool
snack bar. What type and quality of items should be offered? What prices should be
charged? The answers to these and related questions are important for every club
402 Chapter 10
Exhibit 7 Priority Concerns of the Menu Planner
Priority Concerns of Menu Planner
Wants and Needs Club Member
Concept of Value Quality of Item Flavor
Item Price Cost Consistency
Object of Property Visit Availability Texture/Form/Shape
Socioeconomic Factors Peak Volume Production Nutritional Content

and Operating VConcerns
Demographic Concerns Visual Appeal

Sanitation Concerns
Ethnic Factors Aromatic Appeal

Layout Concerns
Religious Factors Temperature

Equipment Concerns
food and beverage outlet because of their impact on member satisfaction and the
operation’s financial success.
As you can see in Exhibit 7, the menu planning team must first consider the
members’ wants and needs, their concept of value (price/quality), their reason(s)
for visits to the outlet, and important demographic factors.
Quality issues applicable to potential menu items become important after the
members’ concerns have been considered. Compromises about flavor, consistency,
texture/form/shape, nutritional content, visual and aromatic appeal, and tem-
perature cannot be made if the food and beverage products do not consistently
meet the club’s standards. Exhibit 7 also identifies other important menu planning
issues: costs, ingredient availability, peak volume production, operating concerns,
and other issues relating to sanitation, layout, and equipment.
This brief discussion about important menu planning factors suggests the
magnitude and complexity of the task and the extent to which the menu impacts
Exhibit 8 Flow Chart of Basic Operating Activities (Control Points) in a Food and
Beverage Operation
Guest Satisfaction
Service
Serving
Holding
Production
Cooking
Activities
Preparing
Issuing
Storing
Receiving
Purchasing
Menu Planning
Source: Adapted from Ronald F. Cichy, Quality Sanitation Management (Lansing, Mich.:
American Hotel & Lodging Educational Institute, 1994), p. 3.
the club’s food and beverage operations. Further details about menu planning are
beyond the scope of this discussion.2 However, after the menu items that a food
and beverage outlet will offer have been identified, the series of steps or control
points noted in Exhibit 8 then become necessary to help ensure the proper items
are consistently available for member purchase and consumption.3
Assume, for example, the menu for the pool’s snack bar specifies that grilled
hamburgers will be available. It is determined that portioned-controlled ground
beef patties meeting the club’s required purchase specifications must be pur-
chased, received, stored, issued, and produced. Each of these steps must be done
in a specified way to help ensure that quality requirements, including food safety
404 Chapter 10
regulations and standards concerning portion size, are followed. Proper product
handling at each control point can help the club consistently achieve high levels of
member satisfaction.
The Food and Beverage Staff

Producing and serving food and beverages are labor-intensive tasks; many staff
members are required to produce and deliver the food products and services that
club members desire. Like managers in other segments of the hospitality industry,
club food and beverage managers are often confronted with labor shortages, and
it is increasingly difficult to recruit good employees.
Exhibit 9 illustrates steps that are important in human resources manage-
ment in clubs. Appropriate actions during these steps help ensure that the best job
candidates are hired, and that the new employees are provided with the training
required for optimal performance. As well, the use of sound human resource prac-
tices increases employee satisfaction and retention.
Let’s review Exhibit 9 and focus on some aspects of human resources manage-
ment that may be unique to club food and beverage operations:
•• Step 1: Recruitment. This step is increasingly difficult for many clubs because
people accepting entry-level positions can be employed in many industries
besides hospitality. As well, food and beverage staff recruited for more spe-
cialized positions, up to and including managers, can work in any type of food
and beverage operation. Many clubs have policies that prohibit the employ-
ment of club members’ relatives, and this also reduces the recruitment pool.
(These policies help to avoid conflicts of interest and minimize problems that
might occur if an employee related to a member had to be disciplined or ter-
minated.) Competitive wages, an attractive (often elegant) work environment,
the club’s reputation in the community, and employee benefits that may well
include access to the club’s recreational facilities at specified times provide
clubs with a recruitment advantage compared to some other segments of the
hospitality industry.
•• Step 2: Selection. Clubs typically are concerned about their selection process
because they want to hire the best candidates. Large clubs and a growing
number of medium-size clubs have human resource departments to help club
managers and supervisors with selection tasks. For example, human resource
personnel can provide initial candidate screening. In small clubs, managers
and supervisors conduct all of the employment interviews. Generally, the
immediate supervisor of the position for which an applicant is being consid-
ered will be involved in the interview process. In some clubs, selection tests
may be used. Reference and background checks may also be conducted to
help safeguard club members and employees and to protect the club’s assets.
•• Step 3: Orientation. Orientation of new employees typically includes a review of
the club’s mission statement and goals, with an emphasis on the importance of
serving the club’s members. Often club managers provide a tour of the facilities;
this allows a new staff member to learn about the basic layout of the property.
Exhibit 9 Human Resources Management in Club Food and Beverage Operations
Step1:
Recruitment
Step 2:
Selection
Step 3:
Orientation
For On-Job Knowledge and Skills
Step 4:
For Problem Resolution/Job Changes
Training
For Professional Development
Leading/Directing
Communicating
Step 5:
Motivating
Ongoing Supervision
Evaluating
Positive/Negative Discipline
•• Step 4: Training. Knowledgeable and skilled staff members are absolutely

necessary at all organizational levels to maintain the high level of member
satisfaction that is an integral part of each private club’s mission. Training
provides new staff members with the knowledge and skills they need to
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A Note About Compensation

Food and beverage employees in most clubs are paid wages and salaries that
are competitive with, if not better than, those paid for similar positions elsewhere.
Entry-level staff members typically receive an hourly wage, supervisors may
receive an hourly wage or a salary (depending upon responsibilities), and food and
beverage managers are usually paid a salary with, oftentimes, a bonus or incentive
tied to the financial performance of their food and beverage outlet. Private clubs
must meet all federal, state, and local laws and regulations relating to employee
compensation.
Food servers are either paid a relatively high per hour wage rate and receive
no gratuities (tips) or money from service charges, or a lower hourly rate and
receive gratuities from members or money from service charges automatically
added to members’ food and beverage purchases. Service charges are convenient
for members because it eases the tipping process. It is also easier for the club’s
accounting office to determine the amount of additional employee compensation to
be reported to the Internal Revenue Service for income tax purposes. It should be
noted that some members do not like automatic service charges and, in response,
some clubs now charge their members a flat-rate monthly or quarterly service fee.
No tips or service charges are added to members’ guest checks, and these service
fees allow clubs to pay higher hourly wages to their servers.
effectively perform in their new jobs, but training is not just for new hires.
Training programs can be used for continuous improvement, to resolve
problems, to implement job changes, and to meet the long-term professional
development needs of staff members.
Club managers have access to excellent “off-the-shelf” training resources
from the Club Managers Association of America to assist them with their
training responsibilities. In many clubs, an employee’s immediate supervisor
conducts the training; some on-the-job training may also be done by other
staff members. It is important that such staff members as well as supervisors
participate in “train-the-trainer” programs to learn basic training procedures
and protocols.4
•• Step 5: Ongoing Supervision. The most effective way for club managers and
supervisors to maintain consistent quality and deal with labor shortages is to
retain their present employees. If this is done with effective supervision strat-
egies, the club will reduce the time and expense required for recruiting, select-
ing, orienting, and training new staff members. The club’s food and beverage
managers should work hard to maintain a work environment that encourages
staff members to remain with the club rather than leave it.5
Financial Aspects of Club Food and Beverage Operations

Managers in every type of food and beverage operation are concerned about using
sound financial management practices, and club food and beverage managers are
no exception. Fiscal control begins with the development of the club’s operating
budget, which incorporates the goals of the club’s executive board for the com-
ing year. For example, does the club’s board want food and beverage revenue to
merely equal expenses, to keep members’ charges low? Alternatively, does the
board want food and beverage revenue to exceed expenses (and, if so, to what
extent), to help build a financial reserve for the club’s future needs?
A club’s general manager/chief operating officer (GM/COO) typically meets
with all of the club’s department heads and other top managers—including those
in the food and beverage department—to develop detailed budgets that identify
the financial expectations for each department. After the budget is developed and
approved, the GM/COO and his or her management team is responsible to operate
the club in close alignment with the budget.
The development of the food and beverage department’s budget can be com-
plicated by the number of food and beverage outlets within the club. Ideally, a
separate budget should be developed for each outlet (formal dining room, casual
dining room, lounge/bar, swimming pool snack bar, and so on) in an interactive
process between the food and beverage director and the manager(s) responsible
for each outlet. These individual budgets are then incorporated into the budget for
the entire food and budget department.
Monthly Food and Beverage Operating Statement

A food and beverage department’s operating budget expresses the financial plans
for the department. By contrast, actual operating results are reported in the club’s
monthly operating statement. The section of the operating statement that applies
to the food and beverage department is shown in Exhibit 10. Financial data is
reported for:
•• Food sales. Food sales are separated by location/outlet.
•• Cost of food sold. Details about this calculation are discussed in CMAA’s Uni-
form System of Financial Reporting for Clubs.
•• Other revenue. “Unused minimum” refers to a monthly food and beverage
charge imposed on members even if they do not make food and beverage
purchases. Payment of the minimum allows the member to receive food and
beverages equal to that amount each month; beyond this charge, the member
must pay for additional purchases. The amount of the minimum that is used
by the member is reported as food sales; that which is unused is considered
to be “other revenue.” Service charges are also considered “other revenue,”
and they are then expensed as wages in the “departmental expenses” section
below.
•• Departmental expenses. Departmental expenses represent payroll and related
expenses and other expenses that are allocated to the food and beverage
department because they were incurred to generate the department’s sales.
•• Departmental income (loss). This is the amount that remains when expenses are
subtracted from sales. Income can be used to defer other club expenses. If there
is a loss, it must be covered by revenue generated from other club departments.
408 Chapter 10
Exhibit 10 Sample Supplemental Schedule—Food Department
City or Country Club

Food—Schedule A
Food Sales (List Revenue by Location) $
Cost of Food Sold
Cost of food consumed
Less credit for employees’ meals
Less credit for gratis food
Cost of food sold
Gross profit on food sales
Other Revenue
Unused minimum
Dining room rental
Total other revenue
Total gross profit and other revenue
Departmental Expenses
Payroll and related expenses
Salaries and wages
Less service charges
Net salaries and wages
Payroll taxes and employee benefits
Employees’ meals
Total payroll and related expenses
Other expenses
China, glassware, and silver
Computer expense
Contract services
Dues and subscriptions
Equipment rental
Equipment repair and maintenance
Gratis food
Kitchen fuel
Laundry and linen
Licenses and permits
Music and entertainment
Operating supplies
Printing and stationery
Professional development
Telephone
Uniforms
Other operating expenses
Total other expenses
Total Departmental Expenses
Departmental Income (Loss) $
Source: Club Managers Association of America, Uniform System of Financial Reporting for
Clubs (American Hotel & Lodging Educational Institute, 2003), p. 24.
When food and beverage managers know what the expected revenue and
expenses should be (from the operating budget) and what they actually are (from
the operating statement), they can make comparisons between the data reported
in these two accounting tools. Excessive variances should be analyzed and appro-
priate corrective action(s) taken. This helps managers keep their operations on
track to meet budget expectations.
Food and beverage managers use a process called ratio analysis to study food
cost percentages (cost of food ÷ food sales), average checks (food sales ÷ num-
ber of covers), and food and beverage sales ratios (food or beverage sales ÷ total
food and beverage sales) to help with comparisons between budgeted and actual
results. Details about ratio analysis for food and beverage operations are beyond
the scope of this chapter but are available elsewhere.6
Food costs in private clubs tend to run significantly higher than in other seg-
ments of the food and beverage industry, for several reasons:
•• Clubs use the highest-quality ingredients:

•• Fresh produce
•• Fresh seafood
•• Locally grown items
•• Organic food
•• Aged beef
•• Clubs maintain an inventory that includes items not on the menu:
•• To accommodate special requests
•• To continue to offer “old favorites” to members if they are requested even
though they are no longer on the menu
•• Clubs often serve larger-than-market portion sizes:
•• Larger entrées
•• Soup bowl versus cup
•• Larger desserts
•• Many items are prepared fresh daily:
•• Desserts
•• Breads
•• Soups from scratch
•• Sauces
•• A higher percent of waste is expected:
•• From handling fresh (versus frozen or canned) fruits and vegetables
•• Shorter shelf life of organic foods
•• Fresh-daily items are discarded at the end of the day
410 Chapter 10
Exhibit 11 Food and Beverage Minimum Example

January 1, During January, January 31, February 1,
20XX, member member & 20XX, 11:59 20XX,
is charged/pays family con- PM “Unused member sees
F&B minimum sumes food & Minimum” is F&B charges
beverage worth reported as made in January
“Other income”
Member A $25 $10 $15 $0
Member B $25 $75 $0 $50
Member C $25 $0 $25 $0
Food and Beverage Minimums

As just mentioned, a food and beverage minimum is a monthly food and bever-
age charge imposed on members even if they do not make food and beverage pur-
chases. Payment of the minimum allows the member to receive food and bever-
ages equal to that amount each month and, beyond this charge, the member must
pay for additional purchases.
Advocates of these charges suggest that they encourage members to use the
club’s food and beverage outlets. For example, a member of a club with a $25
monthly food and beverage minimum is charged this amount in addition to
monthly dues, and pays this charge in advance. This encourages the member
to visit the club’s food and beverage outlets enough to at least “use up” the $25
charge. This minimum charge is reduced (used) as the member makes purchases
during the month. Once the member has purchased products equal in selling price
to the minimum, additional charges are billed to the member (see Exhibit 11).
Most members do not like food and beverage minimums because they are
often viewed as forced inducements to make food and beverage purchases and
an indirect way to increase dues. Conversely, club governing boards often believe
that minimums are reasonable, even if members do not spend more than the min-
imum, because (1) they think members should pay something for having easy
access to the club’s superb food and beverage facilities, and (2) most members use
the club’s food and beverage facilities at least occasionally during each month.
Club managers and board members recognize the resentment that minimums
can create, and board members are typically reluctant to implement minimums if
they are not currently levied.
The Future of Club Food and Beverage Operations

There are several effective ways to try to predict the future, many of which are
used daily within the hospitality industry. Of course, no one can predict future
events with total accuracy, but effective business practices such as forecasting;
monitoring business and/or industry conditions; and measuring, recording, and
monitoring trends can greatly assist managers in their decision-making activities.
The degree of success enjoyed by almost any business in today’s ever-changing
marketplace hinges greatly on its leadership being proactive and correctly decid-
ing how to best prepare for changing business and environmental conditions.
In short, two of the best ways to predict the future is to first look back at his-
torical records and then, through review and analysis, try to identify several influ-
encing factors (past and present) that could create changes in future conditions.
By taking this approach, we will look at some of the changes that have taken place
over the years in the food and beverage industry and identify several key influenc-
ing factors that are likely to affect future food and beverage operations.
Today’s Consumers Expect More and Spend More

Consider for a moment that the most basic function of food is simply to provide
fuel for the body; people must eat to sustain their overall strength, health, and
well-being. As societies developed over the centuries, food choices and menu vari-
ety also developed. Peoples’ food choices moved from what they could hunt or
harvest themselves to the most basic fare of local taverns and, ultimately, to the
depth and breadth of the menu variety to which we are accustomed today.
Similarly, the entire concept of food and beverage “trends” first emerged only
after travel became easier (beginning in the early to mid 1900s) and more con-
sumers experienced more varied cuisines; later, diners began to expect “exotic”
food choices on their local menus. Today, food-trend purchases account for many
billions of dollars in food service industry sales, as restaurateurs routinely offer
the latest and greatest food options in hopes of attracting business. Restaurant-
industry sales include all food purchased for consumption outside of the home,
regardless of the type of establishment from which it was purchased (i.e., restau-
rant, club, sports arena, food service within a hotel, etc.). Soon, for the first time
ever, restaurant industry sales are projected to exceed $600 billion in the United
States alone.7
In 1955, the National Restaurant Association first conducted research to mea-
sure Americans’ spending habits at food service establishments and how much
money was spent on food to be prepared and consumed at home. At that time,
approximately 25 percent of the food dollar was spent at restaurants or other food
service venues; for example, for every $100 spent on food and beverages in 1955,
the average family spent $75 in a grocery store or market and $25 at a restaurant.
The portion of the food dollar that represents money spent on food consumed
outside of the home has steadily grown since then. Today, 49 percent of the food
dollar is spent at restaurants and other food service locations.8 Projections indi-
cate that Americans will soon average a 50/50 split between dollars spent on food
prepared by others (at restaurants) or on food purchased to be prepared at home.
Consumer trends data continue to show that many of us eat outside of our
homes several times each week. Spending patterns related to food purchased away
from home are influenced the most by three specific variables: (1) the economy,
including employment and job growth opportunities; (2) the demographic profile
of the consumer; and (3) the overall food service industry (that is, the competition).
If you decide to eat away from home today, you can choose a location from
a wide array of dining options among various food and beverage segments.
Money spent “eating out” is generally considered to be spent from disposable or
412 Chapter 10
discretionary income, regardless of the type of location where it is spent. (Discre-

tionary income is the money left over after one’s bills have been paid.) It stands
to reason that, during periods of economic decline or when local area unemploy-
ment rises, restaurants, including those in clubs, will experience a decline in
revenue. Consumers who decide to be more frugal with their money will either
decrease the frequency with which they dine out or choose to patronize a food
service establishment that is part of a less-expensive segment.
Recent research conducted by the National Restaurant Association confirmed
these observations. Research results showed that 77 percent of adults reported
that they had decided to cut back on their personal spending, primarily due to
the perceived uncertainty in the economy.9 Interestingly, there was very little dif-
ference in the results based on income level. The highest income bracket in the
survey included households whose income exceeded $100,000 per year; 70 percent
of these households reported reducing their spending because of the current eco-
nomic uncertainty.
Operators Must Be at the Top of Their Game

Club food and beverage managers recognize that they compete with other dining
alternatives within their communities, so they must continually meet and exceed
their members’ expectations. Additionally, these managers must ensure that con-
sistently high quality standards are followed to maximize the number of member
visits to the club’s food and beverage outlets.
As one might expect, there is a direct correlation between members’ satisfac-
tion with the club’s food and beverage operation and the frequency with which
they dine at the club. Those members who are most satisfied also eat at the club
most often. Conversely, members who reported dissatisfaction over the club’s food
and beverage operation dine there least often.10
It is likely that every member still eats at his or her club at least occasionally.
However, consider the ultimate impact on club revenue that results from unsatis-
fied members who choose to not eat at the club as often as they might otherwise.
Also, consider the fact that the club’s food and beverage operations are only open
to members and their guests. Perhaps the last time an unsatisfied member dined at
the club it was not a good experience, and this managed to “turn off” that member
so that he or she decided to vastly curtail visits to the facility. As you can see, the
adverse impact of even one negative dining experience at the club can be serious.
Influencing factors or “key drivers” concerning members’ use of club food
and beverage operations, ranked in order of importance, are (1) food quality, (2)
food consistency, (3) value for price, (4) menu variety, and (5) speed of service.
The same individuals were also asked a similar question that was worded slightly
differently that tried to identify what would entice the member to dine at the club
more often. Interestingly, the five factors just listed were ordered in exactly the
same way, with one major exception – menu variety moved to first place.11 Mem-
bers clearly have a strong desire to see more variety on club menus.
Club members, just like all other consumers deciding where to go out to
eat, directly or indirectly assess several variables when making dining decisions.
Other important influencing factors that impact this decision include appropriate
Exhibit 12 Four “Attitude Segments” (Types of Diners) and Menu Descriptions
that Appeal to Them
Type of Diner Appealing Menu Descriptions
Adventurous spicy, organic, herb-crusted, aged, wild, infused, sun-dried
Health-conscious broiled, baked, natural, stir-fried, pesticide-free, organic, deli-
cate, hormone-free, stewed, raw, pureed
Care-free grilled, char-broiled, hardy, seasonal, smoked, mashed, mes-
quite, fried, sauced, breaded
Traditional fresh, homemade, roasted, broiled, baked, crispy/crunchy,
farm-raised, mashed, deep-fried, shredded, ground
Source: National Restaurant Association (2006).
level of service, food safety, convenience, well-trained and respectful staff, and the
flavors and tastes of the food.
Club members also want to see current food trends reflected on their club’s
menus. Food service managers and chefs can add menu variety and include food
trends through several different ways, such as offering an item as a “nightly spe-
cial “or featuring it on a buffet.
Before any dish is added to the actual menu, chefs generally test an item’s
popularity by monitoring its sales and consumption when it is offered as a special
or on a buffet. In club food and beverage operations, most club chefs change the
menu three to four times per year, often aligning these changes with the change
of seasons. The primary purpose behind menu changes is to ensure that the club’s
members do not become bored with the fare.
Diner Profiles Reveal Food Attitudes

The National Restaurant Association conducts ongoing and extensive research on
consumer dining trends. This research includes all consumers eating away from
home regardless of the type of facility in which they are eating. One of the NRA’s
research discoveries is that consumers typically fall into one of four “diner pro-
files” or “attitude segments”: adventurous, health-conscious, care-free, or tradi-
tional (see Exhibit 12). Research found that what someone orders when dining out
is most affected by his or her tastes, likes, and interests, not by where he or she is
dining. Results showed that menu ordering preferences do not change based on a
food and beverage facility’s location or segment (such as fast-food, casual-dining,
fine-dining, or private club).
Must clubs offer an extensive menu in their main dining outlets to ensure they
will appeal to all four diner profiles? Not necessarily. Effective menu planning
teams can offer entrées such as basic seafood and meat dishes that can be prepared
in ways that will appeal to each type of diner. Salads can be offered with unusual
as well as traditional ingredients and toppings, to appeal to a wider variety of
diners. Relatively simple changes, such as adjusting side items, portion sizes, or
cooking methods, can extend the possible alternative ways that menu items can be
made differently to appeal to each of the four types of diner profiles.
414 Chapter 10
Major Trends
There are several types of trends that impact how and what consumers choose
to eat when dining outside of their homes. We will first look at the “big picture”
and discuss four key societal trends. We will follow this discussion with a review
of some lifestyle trends that impact many of us on a daily basis. The chapter will
conclude by taking a close look at a number of food-specific trends that may be
new or coming soon to local area menus.
Societal Trends. The lifestyle of many American families, and much of society
as a whole, produces a need to dine out – often several times each week. That is
good news for the food service industry and provides job security for food service
professionals, regardless of whether they work in private clubs, restaurants, or
any other food and beverage business. Specific factors in each person’s life vary
the number and character of dining-out occasions. However, there are currently
four general “mega trends” (dominant societal trends) that directly or indirectly
facilitate dining outside of the home for nearly everyone.
First, the number of women entering the workplace continues to increase
steadily. This makes dining out more likely because (1) these women are not at
home engaged in meal preparation (one of the traditional roles for women who
stayed at home rather than working outside the home), and (2) if these working
women are part of a dual-income family, additional discretionary dollars are avail-
able to the household, which makes dining out more affordable.
The second mega trend that influences people to dine out is their overall lack
of time. The convenience of eating out motivates many adults who find themselves
crunched for time in their day. For many people, time with family is limited and
highly valued; dining out together is often considered a better use of time than
spending time performing the shopping, cooking, and cleaning-up tasks required
for an at-home meal.
The third mega trend stems from individuals’ needs for social interaction
and their desire to be connected (at least in part) to other people. As jobs and
lifestyles continue to incorporate more and more “high tech,” many consumers
have felt a corresponding need for “high touch” interaction. This motivates many
people to dine out, because dining out can help satisfy their need for community
or connectedness.
Fourth, individuals today are constantly seeking value in their purchases.
This does not necessarily mean they are seeking cheap or inexpensive goods.
Rather, value is achieved from one’s perception of having received an appropriate
amount of goods relative to the money spent for them. Many people today believe
that dining out is just as cost-effective as eating at home and, additionally, they can
enjoy flavors and tastes that cannot be easily duplicated at home.
Individual Lifestyle Trends. Many people have developed an increased interest in
their overall health and wellness, including an increased desire to see more healthy
food options on menus. In an NRA survey, 73 percent of adults reported they
now choose to eat healthier than they did two years ago.12 Multiple factors have
contributed to this individual lifestyle trend, including an increased demand for
healthier food from young adults and a greater awareness on the part of society of
health issues related to obesity, including childhood obesity. Also, the Baby Boomer
generation is getting older, and consequently Baby Boomers have a greater inter-
est in staying active and living longer. But the younger Millennial generation also
deserves credit for the growth of this healthy eating trend, because many Millen-
nials prefer organic, local, and sustainable food. This interest created a significant
growth in farmers’ markets throughout the United States; their number has almost
tripled from the 1990s (about 1,700) to the present (5000+).13
Somewhat related to the healthy eating trend is “back to basics cuisine.” This
concept embraces simple ingredients and on-site preparation/cooking methods.
Back-to-basics cuisine also includes meeting the special dietary needs of many
consumers with gluten-free and other food allergy–conscious menu items.
Specific Food Trends. Food trends should not be confused with food fads. As
a result of celebrity chefs and the growing popularity of food programming on
television and the Internet, food fads enter the marketplace fairly quickly. Food
fads include anything new, unique, or non-traditional, and they can range from a
specific food item, to a flavor, or even to a unique twist in a cooking method. The
difference between a food fad and a food trend is its length of time in the market-
place. Food fads come and go quickly and typically remain popular for less than
a year. Food trends, although still “new,” have more staying power and remain in
the marketplace for more than one year.
The hottest U.S. food trends are identified annually through a joint effort of
the NRA and the American Culinary Federation (ACF). These organizations sur-
vey more than 1,500 chefs, who rank literally hundreds of food items; analyzing
this information, the NRA and ACF identify the top food trends. Additionally,
food is ranked within different food categories such as appetizers, desserts, pro-
duce, and meats. Each year, the results of the “Chef’s Survey: What’s Hot?” can be
found on the NRA’s website.
What specific food items will be of interest to club members in the future? No
one knows for certain, but we will close this section with a list of some contenders
identified by ACF chefs:
•• Upscale and ethnic cheeses (e.g., queso fresco, paneer, lebneh, brie)
•• Super-fruits (e.g., acai, goji berry, mangosteen)
•• Artisan/house-made ice cream
•• Exotic fruit (e.g., passion fruit, paw paw, guava)
•• Non-traditional fish (e.g., branzino, Arctic char, barramundi)
•• Fresh herbs (especially if harvested fresh from the club’s garden)
•• Ethnic/street food–inspired appetizers (e.g., tempura, taquitos, kabobs,
hummus)
•• Asian noodles (e.g., soba, udon, rice noodles)
In conclusion, club food and beverage managers should be cautiously opti-
mistic about potential sales gains well into the future. New menu creations can
enhance their members’ and guests’ health and wellness. Menu changes that
emphasize a healthier lifestyle, coupled with planning that considers the four
416 Chapter 10
mega societal trends just discussed, should increase a club’s capture rate (its fair
share of visits) from those who dine out. The major trends discussed in this section
also point to marketing opportunities for clubs looking to increase food and bev-
erage revenue. Food and beverage operations are a critical component of private
clubs, and it is likely that increased recognition of their contributions will occur
well into the future.
Endnotes
1. The Importance of Good Dining at Private Clubs: McMahon’s Club Trends Report (St. Louis,
Mo.: McMahon Group, Spring 2010).
2. For readers interested in more information, see Jack Ninemeier and David Hayes,
Menu Planning, Design and Evaluation: Managing for Appeal and Profit, Second Edition
(Richmond, Calif.: McCutchan Publishing Corporation, 2008).
3. Figure adopted from Ronald F. Cichy, Quality Sanitation Management (Lansing, Mich.:
American Hotel & Lodging Educational Institute, 1994), p. 3.
4. An excellent resource for basic training information is Debra F. Cannon and Catherine
M. Gustafson, Training and Development for the Hospitality Industry (Lansing, Mich.:
American Hotel & Lodging Educational Institute, 2002).
5. More information about supervision can be found in Raphael R. Kavanaugh and Jack
D. Ninemeier, Supervision in the Hospitality Industry, Fourth Edition (Lansing, Mich.:
American Hotel & Lodging Educational Institute, 2007).
6. One source for more information about ratio analysis is Jack D. Ninemeier, Planning
and Control for Food and Beverage Operations, Seventh Edition (Lansing, Mich.: American
Hotel & Lodging Educational Institute, 2009).
7. 2011 Restaurant Industry Forecast. Inside the Mind of Today’s Consumer: Why Restaurants
Are Poised for Success in 2011 and Beyond (Chicago, Ill.: National Restaurant Association,
2011).
8. Ibid.
9. Ibid.
10. The Importance of Good Dining at Private Clubs: McMahon’s Club Trends Report (St. Louis,
Mo.: McMahon Group, Spring 2010).
11. Ibid.
12. 2010 Restaurant Industry Forecast: America’s Restaurants Uncovering Opportunity in a New
Economy (Chicago, Ill.: National Restaurant Association, 2010).
13. 2010 Trends and Issues: A Private Club Perspective (Washington, D.C.: National Club
Association, 2010).
Key Terms
à la carte menu—A menu in which available food items are individually priced.
average check—Food sales ÷ number of covers.
back-of-the-house—A hospitality industry term referring to non-public areas of
the business.
Card Room—A dining room in clubs frequently found off the ladies’ locker room;
typically where female members gather to play bridge.
club-sponsored events—Club-wide theme parties and popular holiday events
celebrated throughout the year.
commercial food service operation—A food service operation such as a free-
standing restaurant or a food and beverage outlet in a hotel that is in business to
sell food and beverage products and services and make a profit.
covers—The number of meals (or people) served during a specific meal period;
may be calculated by dining area, or throughout the club for that meal.
demographic factors—Factors such as age, marital status, and ethnicity that can
be used to describe a person.
equity clubs—Private clubs that are owned by their members and governed by a
board of directors elected by the members.
food and beverage minimum—A monthly food and beverage charge that is
imposed on members even if they do not make food and beverage purchases. The
minimum allows the member to receive food and beverages equal to that amount
each month; beyond this charge, the member must pay for additional purchases.
food cost percentage—Cost of food ÷ food sales.
food fad—A specific food item, usually prepared a specific way, that is popular
only for a short amount of time; typically, a food fad item is around for less than
one year.
food trend — A food item or preparation/cooking method that remains popular
for a long time (at least for more than a year).
front-of-the-house—A hospitality industry term generally referring to facility
areas to which the public has access.
Halfway House—A food and beverage outlet located near the halfway point of a
golf course, typically after the 9th green and before the 10th tee. Its primary func-
tion is to provide food and beverage services to golfers. Sometimes called a Turn
Room.
Men’s Grill—A food and beverage area set aside in a club for the exclusive use of
male members of the club.
mission statement—A planning and positioning tool that broadly identifies what
a private club would like to accomplish and how it intends to do so.
non-commercial food service operation—A food service operation that exists
within a larger host organization whose primary business is not that of providing
food and beverage services. Non-commercial food service operations may or may
not seek to make a profit from the sale of their food and beverage products and
services.
orientation—The process of providing new hires with basic club information that
should be known by all of its staff members.
418 Chapter 10
point-of-sale (POS) system—One or more electronic registers that instantly cap-

ture information about sales transactions and manage the ordering and service of
menu items in one or more food and/or beverage service outlet.
purchase specification—A description of the size, weight, quality, and so on
required for each food and beverage product purchased by the club.
sales mix—The number of each specific menu item that is sold during a certain
time period relative to the total of all menu items sold.
service charge—A mandatory charge that is added to members’ food and bever-
age bills at the club in lieu of asking members to provide voluntary tips.
service fee—A flat fee, usually charged monthly or quarterly to members, in lieu
of voluntary tipping by members or the club adding a service charge to members’
food and beverage bills. Service fees are typically used to pay higher hourly wages
to service staff.
Review Questions
1. Why are food and beverage operations important to clubs?
2. How are club food and beverage operations similar to, and different from,
their counterparts in for-profit, commercial food service operations?
3. What are some of the advantages and disadvantages of low turnover among
the food and beverage staff in clubs?
4. What are some common types of food and beverage facilities in clubs?
5. What are some factors that must be considered when club managers plan
menus for food and beverage outlets?
6. What are the five basic steps of human resources management in clubs?
7. What is the controversy about the use of food and beverage minimums in
clubs?
8. Club members can be divided into what four types of diners?
9. What are some major food trends that might affect club food and beverage
operations in the future?
Internet Sites
Club Managers Association of America The Consumer Food Trend Series;

www.cmaa.org Canadian Government
www.agric.gov.ab.ca
Club & Resort Business
www.clubandresortbusiness.com
Jonas Software National Restaurant Association
www.jonassoftware.com www.restarant.org
(To review numerous club menus, type “private club menus” into your favorite
search engine.)
420 Chapter 10
Appendix A:
What follows are sample job descriptions for a club food and beverage director,
executive chef, dining room manager, beverage manager, banquet manager, and
catering manager. These job descriptions are courtesy of Joe Perdue and Jack Nine-
meier, Job Descriptions for the Private Club Industry, Seventh Edition.
Club Food and Beverage Director

Position
Food and Beverage Director
Related Titles
Food and Beverage Manager; Food and Service Manager; Dining Services and Beverage
Director (Manager); Food Manager; Maitre d’ Hotel; Food and Beverage Services Director
Supervises: Executive Chef; Catering Manager; Beverage Manager; Banquet Manager;
Dining Room Manager; Outlet Manager; Food and Beverage Training Manager
•• Four-year college or university degree in Hospitality Management or Culinary Arts.
•• Ten years or more as a food and beverage manager with five of those years in a simi-
lar position in a fine-dining situation.
•• Food and beverage cost controls and operating procedures.
•• Accounting.
•• Menu design.
•• Marketing and promotions.
•• Wine, spirits and bar operations.
•• Point-of-sales systems.
•• Strong interpersonal and organizational skills.
•• Polished, professional appearance and presentation.
•• Manage stress and time.
•• Build a team, train, and maintain employee teams.
•• Effective communication through all department levels and throughout club.
Responsible for club’s dining services and all food and beverage production throughout
the club. Directly supervises the Executive Chef, Catering Manager, Beverage Manager,
Banquet Manager, Dining Room Manager, and managers of all other outlets such as
snack bars, half-way houses, etc. Plans, implements and monitors departmental budgets.
Hires, trains and supervises subordinates and applies relevant marketing principles to
assure that the wants and needs of club members and guests are consistently exceeded.
Job Tasks/Duties
•• Develops an operating budget for each of the department’s revenue outlets; monitors
and takes corrective action as necessary to help assure that budgeted sales and cost
goals are attained.
•• Develops a capital budget for all necessary food and beverage equipment and recom-
mends facility renovation needs.
•• Ensures that adequate cash procedures are followed and that documentation is
reported in an accurate and timely manner.
•• Responsible for proper cash and charge procedures, guest check analysis, tip
reports, ticket controls and daily sales reports and analysis.
•• Manages the department’s long-range staffing needs.
•• Assists in recruitment, training, supervision. and termination of food and beverage
staff.
•• Helps plan and approves the organizational chart and staffing and scheduling plans.
•• Assures that effective orientation and training for new staff and professional develop-
ment activities for experienced staff are planned and implemented.
•• Monitors employee records to minimize overtime and keep labor costs within budget.
•• Assures that all standard operating procedures for revenue and cost control are in
place and consistently followed.
•• Assures that all applicable club policies and procedures are followed.
•• Helps plan and approves external and internal marketing and sales promotion activi-
ties for the department’s outlets and special club events.
•• Approves menu items, pricing, and menu designs for all outlets, special events, and
banquet events.
•• Establishes quantity and quality output standards for personnel in all positions within
the department.
•• Ensures all legal requirements are consistently followed including wage/ hour and
federal, state, or local laws for food safety and the sale/consumption of alcoholic
beverages.
•• Ensures all energy management, preventive maintenance, and other standards are
consistently met.
•• Ensures that all new employees receive the appropriate safety instructions and
training, establishes and enforces all safety policies and procedures including OSHA
regulations, and ensures that appropriate proof of training is documented to the
employees’ personnel files.
•• Researches new products and evaluates their cost and profit benefits.
•• Maintains food and beverage personnel records.
•• Monitors purchasing and receiving procedures to ensure proper quantity, quality, and
price for all purchases.
•• Reviews new techniques for food preparation and presentation to maximize member
and guest satisfaction and minimize food costs.
•• Consults daily with the Executive Chef, Catering Director, Purchasing Agent, and
other club administrators to help assure the highest level of member satisfaction at
minimum cost.
•• Greets guests and oversees actual service on a routine, random basis.
422 Chapter 10
•• Helps develop wine lists and wine sales promotion programs.
•• Establishes, updates and maintains all written standards and procedures for the
department as needed.
•• Addresses member and guest complaints and advises the General Manager about
appropriate corrective actions taken.
•• Serves as an ad hoc member of appropriate club committees.
•• Monitors appearance, upkeep, and cleanliness of all food and beverage equipment
and facilities.
•• Monitors employee dress codes according to policies and procedures.
•• Approves all product invoices before submitting to the Accounting Department.
•• Monitors or manages physical inventory verification and provides up-dated informa-
tion to the accounting department.
•• Responsible for the proper accounting and reconciliation of the point-of-sale and
member revenues.
•• Maintains records of special events, house counts, food covers and daily business
volumes.
•• Ensures that an accurate reservation system is in place.
•• Audits and approves weekly payroll.
•• Approves all entertainment.
•• Responsible for long-range planning for the department in concert with the club’s
planning process.
•• Establishes and maintains professional business relations with vendors.
•• Works with the club’s Controller or Chief Financial Officer to identify and develop
operating reports and for on-going control of the department.
•• Recommends operating hours for all food and beverage outlets.
•• Serves as manager-on-duty on a scheduled basis.
•• Ensures timely correspondence with all catering guests including inquiry, follow-up,
contracts, billings and thank-you letters.
•• Completes periodic china, glass, and silverware inventories.
•• Implements and monitors sanitation and cleaning schedules.
•• Completes other appropriate assignments from the General Manager.

•• Food safety certification.
•• Alcoholic beverage certification.

•• Required to stand for long periods and walk, climb stairs, balance, stoop, kneel,
crouch, bend, stretch, and twist or reach.
•• Push, pull or lift up to 50 lbs.
•• Continuous repetitive motions.
•• Work in hot, humid, and noisy environment.
Club Executive Chef
Position
Executive Chef
Related Titles
Chef; Food Production Manager; Culinary Director (Manager); Chef de Cuisine; Working
Chef; Head Chef
Reports to: Food and Beverage Director
Supervises: Executive Steward; Banquet Chef; Sous Chef; Pastry Chef
•• Bachelor’s degree in Culinary Arts and/other Hospitality Management degree and
eight years food production and management experience; or
•• 15 years relevant experience; or any equivalent combination of experience and train-
ing that provides the required knowledge, skills and abilities.
•• Exceptional cooking skills.
•• Plans and monitors all food-production-related costs.
•• Plans menus with Food and Beverage Director.
•• Develops food purchase specifications and standard recipes.
•• Maintains food quality and sanitation standards.
•• Ability to pair/match wine and food and develops a wine list with the Food and Bever-
age Director.
Responsible for all food and pastry production, including that sold in restaurants, banquet
functions and other outlets. Develops menus, food purchase specifications and recipes.
Supervises production and pastry staff. Develops and monitors food and labor budgets for
the department. Maintains highest professional food quality and sanitation standards.
Job Tasks/Duties
•• Hires, trains, supervises, schedules and evaluates the work of management staff in
the food and pastry production departments.
•• Plans menus with Food and Beverage Director for all food outlets in the club and for
special occasions and events.
•• Schedules and coordinates the work of chefs, cooks and other kitchen employees to
assure that food preparation is economical and technically correct and within bud-
geted labor cost goals.
•• Approves the requisition of products and other necessary food supplies.
•• Ensures that high standards of sanitation, cleanliness and safety are maintained
throughout all kitchen areas at all times.
•• Establishes controls to minimize food and supply waste and theft.
•• Safeguards all food-preparation employees by implementing training to increase their
knowledge about safety, sanitation and accident-prevention principles.
424 Chapter 10
•• Develops standard recipes and techniques for food preparation and presentation that
help to assure consistently high quality and to minimize food costs; exercises portion
control for all items served and assists in establishing menu selling prices.
•• Prepares necessary data for applicable parts of the budget; projects annual food,
labor and other costs and monitors actual financial results; takes corrective action as
necessary to help assure that financial goals are met.
•• Attends food and beverage staff and management meetings.
•• Consults with the banquet function committee about food production aspects of spe-
cial events being planned.
•• Cooks or directly supervises the cooking of items that require skillful preparation.
•• Evaluates food products to assure that quality standards are consistently attained.
•• Interacts with applicable food and beverage managers to assure that food production
consistently exceeds the expectations of members and guests.
•• Plans and manages the employee meal program.
•• Develops policies and procedures to enhance and measure quality; continually
updates written policies and procedures to reflect state-of-the-art techniques, equip-
ment and terminology.
•• Recruits and makes selection decisions; evaluates job performance of kitchen staff;
coaches, rewards and disciplines staff in a fair and legal manner.
•• Recommends compensation rates and increases for kitchen staff.
•• Establishes and maintains a regular cleaning and maintenance schedule for all
kitchen areas and equipment.
•• Provides training and professional development opportunities for all kitchen staff.
•• Ensures that representatives from the kitchen attend service line-ups and meetings.
•• Motivates and develops staff, including cross-training and promotion of personnel.
•• Periodically visits dining area to welcome members.
•• Hosts taste panels to assess feasibility of proposed menu items.
•• Reviews and approves product purchase specifications.
•• Establishes buffet presentations.
•• Maintains physical presence during times of high business volume.
•• Implements safety training programs; manages OSHA-related aspects of kitchen
safety and maintains MSDSs in easily accessible location.
•• Understands and consistently follows proper sanitation practices including those for
personal hygiene.
•• Undertakes special projects as assigned by the Food and Beverage Director.
•• Certification from American Culinary Association or other professional hospitality
association.
Dining Room Manager

Position
Dining Room Manager
Related Titles
Restaurant Manager; Restaurant Supervisor (Director); Dining Room Supervisor; Dining
Service Director; Host or Hostess; Receptionist; Captain; Maitre D’; Member Dining Man-
ager; Service Manager; Restaurant Manager/Assistant Manager
Supervises: Dining Room Captain
•• High school diploma or GED required.
•• A four-year college degree in Hospitality is preferred.
•• Three years of dining room supervisory experience in private club.
•• Responsible for management of dining room service in the main clubhouse.
•• Maintains a high level of member contact throughout service hours.
Ensures a high standard of appearance, hospitality and service in personnel and cleanli-
ness of dining room. Ensures timeliness of food service. Supervises and trains dining
room staff. Manages within budgetary restraints. Develops and implements programs to
increase revenues through repeat business and higher check averages.
Job Tasks/Duties
•• Designs floor plans according to reservations.
•• Plans dining room set-up based on anticipated guest counts and client needs.
•• Takes reservations, checks table reservation schedules, and maintains reservations log.
•• Greets and seats members and guests.
•• Inspects dining room employees to ensure that they are in proper and clean uniforms
at all times.
•• Hires, trains, supervises, schedules and evaluates dining room staff.
•• Confirms time, attendance and hours worked and approves weekly departmental
payroll prior to submitting it to the Payroll Office.
•• Produces daily or meal-period revenue analyses and other reports from point of sale
(POS) systems used in the dining room.
•• Performs daily POS closeout and tip distribution requirements (if applicable). Verifies
proper distribution of tips and hours for employees and submits to Payroll Office.
•• Provides appropriate reports concerning employee hours, schedules, pay rates, job
changes, tip pools, etc.
426 Chapter 10
•• Receives and resolves complaints concerning dining room service.
•• Serves as liaison between the dining room and kitchen staff.
•• Assures that all side-work is accomplished and that all cleaning of equipment and
storage areas is completed according to schedule.
•• Directs pre-meal meetings with dining room personnel; relays pertinent information
such as house count and menu changes, special member requests, etc.
•• Able to lead staff through all service types such as American, Russian, French and
Buffet.
•• Assures the correct appearance, cleanliness and safety of dining room areas, equip-
ment and fixtures; checks the maintenance of all equipment in the dining room and
reports deficiencies and maintenance concerns.
•• Makes suggestions about improvements in dining room service procedures and
layout.
•• Trains staff on all aspects of the POS system.
•• Develops and supervises the revenue control system.
•• Assures that the dining room and other club areas are secure at the end of the busi-
ness day.
•• Maintains an inventory of dining room items including silverware, coffee pots, water
pitchers, glassware, flatware, and china, salt and pepper holders, sugar bowls and
linen and ensures that they are properly stored and accounted for.
•• Develops and maintains the dining room reservation system.
•• Develops and implements an on-going marketing program to increase dining room
business.
•• Monitors dining room labor and supplies budget; makes adjustments to achieve finan-
cial goals.
•• Utilizes computer to accurately charge members, create forecast and revenue
reports, and write correspondence.
•• Develops and continually updates and refines policy and procedure manuals for ser-
vice staff to increase quality and to control costs.
•• Assists in service and tableside cookery, as needed.
•• Attends scheduled staff meetings.
•• Plans operating budget for dining service responsibilities.
•• May serve as club’s opening and closing manager or manager on duty.
•• Works with Executive Chef to update, review, and print weekly menu changes.
•• Assists in developing wine lists and beverage promotions.
•• Tracks wine sales.
•• Assures that local and state laws and the club’s policies and procedures for the ser-
vice of alcoholic beverages are consistently followed.
•• Performs other appropriate assignments and projects as required by the Food and
Beverage Director.
Licenses and Special Permits
Physical Demands and Work Environment:
Beverage Manager
Position
Beverage Manager
Related Titles: Bar Manager; Head Bartender; Beverage Supervisor
Supervises: Bartender; Beverage Server; Wine Steward
•• Associate’s degree or higher in hospitality management or related field.
•• Three years or more bartending experience.
•• Assures a high standard of appearance, hospitality and service in lounge areas.
•• Knowledgeable of all aspects of department and daily club operation, including sched-
uled events and operating hours.
•• Meet revenue and expense budget goals and manage within budgetary restraints.
Supervise beverage department personnel and develop and implement programs to
increase revenues and job performance.
•• Acts ethically and honestly at all times.
•• Assures that all state and local laws and club policies and procedures for the service
of alcoholic beverages are consistently followed.
Responsible for management of all bar areas in a manner most pleasing to members
and guests. Meets revenue and expense budget goals and manage within budgetary
restraints. Supervises beverage department personnel, and develops and implements
programs to increase revenues and job performance. Monitors inventory levels. Develops
and implements operating procedures for the Beverage Department.
Job Tasks/Duties
•• Develops and maintains a bar product and supplies inventory system for alcoholic
beverages including wines, non-alcoholic beverages and mixers, glassware, and
paper and other bar supplies.
•• Plans promotional strategies and materials; develops recipes to improve the bever-
age program for members and guests.
•• Maintains cleanliness and sanitation of bar areas, glassware and equipment through
regular inspections.
428 Chapter 10
•• Develops standard operating procedures to help assure that bars are set-up and
operated efficiently.
•• Maintains an adequate supply of liquors, wines, beer, and other beverages with effec-
tive inventory management system.
•• Recruits, trains, schedules and supervises bar personnel according to established
club procedures.
•• Responsible for conducting employee reviews for beverage department personnel.
•• Maintains and keeps current beverage-related training manuals.
•• Develops product and revenue control systems and procedures to help reduce theft.
•• Assures that all laws applicable to beverage operations are consistently followed.
•• Works with Dining Room Manager, Banquet Manager, and others to ensure efficient
beverage service in all of the club’s outlets and for special functions.
•• Interacts with Purchasing Department personnel relative to the procurement and
receiving of beverage products and supplies.
•• Works with the Food and Beverage Director, Dining Room Manager and others to
develop wine lists.
•• Inspects to ensure that the club’s sanitation, safety, energy management, preventive
maintenance and other programs are implemented and complied with as they apply
to beverage operation.
•• Develops the budget for Beverage Department; monitors financial information and
takes corrective action as necessary to help assure that financial goals are met.
•• Develops and monitors labor forecasts and budgets; takes corrective action as neces-
sary.
•• Develops financial records and reports as required.
•• Works with the Accounting Department to ensure that all record-keeping procedures
are consistently followed.
•• Handles complaints from club members, guests and others relative to the Beverage
Department.
•• Produces shift reports containing information on member-related issues, cover counts
and any other concerns occurring during that time period.
•• Assists with private parties and service in food and beverage outlets when necessary.
•• Plans and develops training programs and professional development opportunities for
himself or herself and all other beverage personnel.
•• Keeps current with changing member preferences and industry trends relative to the
beverage operation.
•• Conducts scheduled meetings with service staff.
•• Attends staff and management meetings.
•• Schedules wine and beer samplings with distributors to continuously improve variety
and quality of beverages available to club members and guests.
•• Monitors bar closing procedures (checklist) and assures that area is secure.
•• May serve as bartender, if needed.
•• Plans special wine promotions for members.
•• Assures that the club’s policies and procedures for selling alcoholic beverages are
consistently followed in all beverage outlets and at all club functions.
•• May serve as club’s opening or closing manager or manager on duty.
•• Maintains a service log regarding any notable member or guest behavior.
•• Schedules maintenance of draft beer tapping.
•• Completes other appropriate work assignments as requested by the Food and Bever-
age Director.
Banquet Manager
Position
Banquet Manager
Related Titles: Banquet Service Manager (Supervisor); Banquet Supervisor
Supervises: Banquet Captain
Responsible for the banquet service function in the club. Supervises banquet service
personnel to assure member and guest satisfaction through proper food and beverage
service and presentation. Maximizes the club’s profitability from the catering function.
Job Tasks/Duties
•• Works with the catering manager, banquet chef, and others to schedule and coordi-
nate personnel requirements for private functions.
•• Develops detailed plans for each catered event in conjunction with the club’s func-
tion committee (food and beverage director, executive chef, banquet chef, catering
manager, and executive housekeeper, as necessary).
•• Serves as a liaison between banquet service personnel and other staff members on
the club’s function committee.
•• Diagrams buffet tables, guest tables, and other function room set-up needs for special
events.
•• Holds pre-function meetings with servers to ensure smooth, efficient service; assigns
server stations and coordinates the timing of courses.
•• Ensures that all banquet staff members are well-groomed and in proper uniform
(including name tags).
•• Assists with ongoing sales efforts for group and local function business.
430 Chapter 10
•• Assists in the preparation of the marketing plan and annual budget to increase the prof-
itability of the banquet operation; monitors actual performance against budget goals;
recommends corrective actions as necessary to help assure that budget goals are met.
•• Assures proper inventory of all banquet service equipment and supplies to meet
required needs.
•• Acts as head waiter at special, private functions, and may greet and seat guests as
necessary.
•• Handles member and guest complaints about banquet events.
•• Hires, trains, supervises, schedules, and evaluates banquet service staff.
•• Regularly inspects all front- and back-of-the-house service areas and equipment to
assure that sanitation, safety, energy management, preventive maintenance, and
other standards for the department are met.
•• Assures that all functions are properly staffed in accordance with the approved ban-
quet staffing schedule.
•• Assures the neatness, cleanliness, and safety of all banquet areas.
•• Participates in scheduled staff and management meetings.
•• Assumes closing manager or manager on duty responsibilities when assigned.
•• Conducts after-event evaluations to improve the quality and efficiency of banquet
functions.
•• Ensures that all appropriate charges are billed correctly to each event and forwarded
to the accounting department for billing.
•• Recommends advertising.
•• Plans professional development and training activities for staff.
•• Assures that state and local laws and the club’s policies and procedures for the ser-
vice of alcoholic beverages are consistently followed.
•• Develops and documents standard operating procedures for banquets.
•• Ensures the proper cost and revenue controls for all banquet alcoholic beverage
service.
•• Assures that banquet event closing procedures are followed.
•• Makes recommendations for the replacement and upgrading of banquet service
equipment.
•• Performs other tasks as requested by the food and beverage director.
Catering Manager
Position
Catering Manager
Related Titles: Special Events Manager; Account Executive; Catering Director, Catering
and Banquet Coordinator
Supervises: Catering Account Executive, Events Coordinator, Catering support staff
•• High School diploma or GED; one year of related experience and/or training.
•• Two years of experience in catering operations.
•• Extensive knowledge of the private club industry’s food and beverage operations.
•• Promotes the club’s dining facilities for private banquets, business and social meet-
ings, and other member-related activities.
Responsible for all day-to-day catering services. Develops contracts for and oversees all
administrative and operational aspects of preparing and selling events and catered par-
ties. Works with banquet and other departments to assure that the members’ and guests’
expectations are exceeded and the highest quality food and service are delivered.
Job Tasks/Duties
•• Promotes, advertises, and markets the club’s social event facilities and capabilities to
all members.
•• Assists members in arrangements for special dinner requests in the dining room.
•• Helps member clients arrange banquets, luncheons, meetings, weddings, dances and
other social events; obtains pertinent information needed for guest planning.
•• Works with the Executive Chef to determine selling prices, menus and other details
for catered events; oversees the development of contracts; assures that pre-planned
banquet menu offerings are current and reflect general member interests.
•• Transmits necessary information to and coordinates event planning with production,
serving and housekeeping staff; arranges for printing of menus, procuring of decora-
tions, entertainment and other special requests, etc.
•• Inspects finished arrangements; may be present to oversee the actual greeting and
serving of guests.
•• Checks function sheets against actual room setup; oversees personnel scheduling for
special functions and may help supervise service personnel.
•• Oversees scheduling of banquet service employee meetings.
•• Responsible for hands-on service work when needed and orchestrating events when
necessary.
•• Manages complaints.
•• Maintains past and potential client files; schedules calls or visits to assess on-going
needs of prospective clients for catering services.
•• Assists with completion of in-house banquet event orders (BEOs).
•• Helps develop catering budgets; reviews financial reports and takes corrective actions
as appropriate to help assure that budget goals are met.
•• Represents members’ needs and interests on applicable club committees.
•• Obtains necessary permits for special events and functions.
•• Critiques functions to determine future needs and to implement necessary changes
for increased quality.
•• Attends staff and management meetings to review policies and procedures, future
business, and to continually develop quality and image of banquet functions.
•• Ensures the security of club’s, members’, and guests’ valuables during catered
events.
432 Chapter 10
•• Assumes responsibility of manager-on-duty when necessary.
•• Ensures that proper housekeeping and energy conservation procedures are always
followed.
•• Plans professional development and training activities for subordinate staff.
•• Diagrams room layout, banquet item placement, and related function details.
•• Meets with other department managers to plan food and beverage aspects of special
events organized by the staff members.
•• Manages banquet billing and arranges prompt payment for all events.
•• Updates weekly function information for all affected staff.
•• Serves as liaison between kitchen, service and management staff.
•• Maintains club’s master calendar and function book.
•• Performs special projects as assigned by the Food and Beverage Director.
Appendix B:
Online Management Closing Report
The Fort Worth Club food and beverage team benefits from an effective system of
communication through the use of an online closing report. The closing report is
accessible on the club network by all managers. The report is updated on a daily
and nightly basis and is reviewed each morning for multiple purposes by manag-
ers in different areas. The easy-to-read report benefits catering department staff
members by informing them of any issues that may have taken place the night
before, and by providing actual attendance numbers, which can be compared to
the guaranteed numbers that were given by the hosts. The accounting department
is able to verify actual numbers for billing purposes. The club’s general manager
is able to learn who was present and how conflicts were resolved. These are just a
few of the ways the report is used.
The closing report is updated by both the front-of-the-house and the back-
of-the-house staff. The sample report that follows was provided courtesy of the
Fort Worth Club and the Club Operations and Performance Review, published by
CMAA’s Premier Club Services.
434 Chapter 10
436 Chapter 10
Appendix C:
Club-Sponsored Special Events Matrix
This special events matrix gives you an idea of the types of special events clubs
plan for their members throughout the year. This matrix is courtesy of the Carmel
Country Club, Charlotte, North Carolina, and the Club Operations and Performance
Review, published by CMAA’s Premier Club Services.
438 Chapter 10
Appendix D:
Using a CAD System for Visualizing Room Layouts
Computers are useful for visualizing banquet room and other room layouts in
clubs. This appendix is courtesy of the Charlotte Country Club, Charlotte, North
Carolina, and the Club Operations and Performance Review, published by CMAA’s
Premier Club Services.
Appendix E:
Sample Wedding Checklist
This sample wedding checklist gives you an idea of the many details that club
managers must attend to when planning a special event at the club. This checklist
is courtesy of the Thornblade Club, Greer, South Carolina, and the Club Operations
and Performance Review, published by CMAA’s Premier Club Services.
440 Chapter 10
442 Chapter 10
444 Chapter 10
Appendix F:
F&B Pocket Card
This pocket card is something club staff members can carry with them to remind
them of club policies and the importance of providing excellent service to club
members. This pocket card is courtesy of the Manasquan River Golf Club, Bri-
elle, New Jersey, and the Club Operations and Performance Review, published by
CMAA’s Premier Club Services.
1. MRGC team members are to utilize - Anticipation and compliance with the
any and all resources available to member’s needs.
provide unparalleled products and - A fond farewell. Give the member a
services. warm good-bye and use the mem-
2. The Vision Statement will be known, ber’s name.
owned, and energized by all employ- 9. Use proper telephone etiquette:
ees. - Always answer within three rings.
3. Be an ambassador of our club in and - “Good Afternoon, name of room, this
out of the workplace; talk positively; is ‘John Doe,’ how may I help you?”
be knowledgeable of hours of opera- - When necessary … (Always ask
tion and activities and always recom- permission to put the caller on hold.)
mend. - “Thank you for calling, have a great
4. Daily shift reports are used to record day/evening.”
and communicate defects, member 10. It is everyone’s responsibility to learn
dissatisfaction, hazards, equipment and honor our members’ preferences
malfunction, and any repair and mem- so we can personalize our service.
ber’s maintenance needs. Report any - Research the P.O.S. member profiles
and all deficiencies to your immediate prior to the service period.
supervisor as soon as possible.
11. Be knowledgeable about your job.
5. Any employee who receives a com- Ask questions; share your ideas and
plaint, owns the complaint. experiences with your co-workers
6. Follow uniform appearance stan- and supervisors. Follow standard
dards, including a nametag, appropri- procedures.
ate footwear, and the MRGC basics. 12. Practice safe work habits. Abide by
Personal hygiene is of the utmost all job safety policies. Immediately
importance. report incidents, injuries, and acci-
7. Uncompromising levels of cleanli- dents to your supervisor.
ness are the responsibility of every MANASQUAN RIVER
employee. GOLF CLUB
8. Smile when you are on stage. Use VISION
the “Three Steps of Service” during STATEMENT
the Club’s dining and social activities.
- A warm and sincere greeting, using “GOING ABOVE AND BEYOND TO
the member’s name. EXCEED EXPECTATIONS”
Financial Statements 1. Identify the different financial
Statement of Financial Position statements used by clubs as found
Statement of Activities in the Uniform System of Financial
Statement of Cash Flows Reporting for Clubs. (pp. 447–448)
Analyzing Financial Statements 2. Analyze the statement of financial
Liquidity Ratios position, the statement of activities,
Solvency Ratios and the statement of cash flows.
Activity Ratios (pp. 448–462)
Profitability Ratios
Operating Ratios 3. Describe horizontal analysis, vertical
Ratios Presented to Club Boards analysis, and the importance that
Ratio Research Results ratios play in analyzing a club’s
Budgeting performance. (pp. 462–469)
Operations Budget 4. Summarize the operating budget and
Capital Budget the budgeting process. (pp. 469–473)
Cash Budget
Federal Income Taxes and Clubs 5. Explain the capital and cash
budgeting processes. (pp. 473–479)
6. Summarize ways in which a club’s
general manager can ensure that a
club complies with federal income tax
laws. (pp. 479–480)
11
Club Financial Management
This chapter was written and contributed by Raymond S. Schmidgall,
Ph.D., Hilton Hotels Professor, Michigan State University,
East Lansing, Michigan.
A club general manager’s main focus each day is working with the club’s staff,
especially the management team, to provide services to meet the needs of club
members. In other words, a general manager’s job is intensely “people-oriented.”
Yet, in dealing with the club’s board, committee heads, and department heads,
there are times when the general manager cannot rely on his or her people skills
alone and must use financial statements prepared by the club’s financial person-
nel. While these financial experts can be of great assistance to a general manager,
usually it is the general manager who answers to the club’s board for the financial
performance of the club. Therefore it is critical that the general manager under-
stand not only how the club operates but also how to read and interpret financial
statements.
The focus of this chapter is the financial knowledge a general manager needs
in order to effectively interact with the club’s board, controller, and department
heads. The major topics covered include (1) the major financial statements, (2)
analysis of financial statements, (3) budgeting, and (4) federal income taxes.
Financial Statements
Financial statements are used to communicate a club’s financial position and
results of operations. These statements should be viewed as the club’s scorecards.
When you compare them to the operations budget for the same accounting period,
you can determine the club’s degree of financial success.
The major financial statements include the statement of financial position
(formerly called the balance sheet), the statement of activities (formerly called
the income statement), and the statement of cash flows. (Until the new names for
these statements catch on in the industry, be aware that many club managers will
continue to refer to balance sheets and income statements when they are talking
about statements of financial position and statements of activities.) The statement
of financial position is prepared as of the final day of the accounting period and
reflects the financial position of the club on that particular day. This statement
shows the club’s assets, liabilities, and unrestricted net assets (members’ equity).
The statement of activities is prepared to reflect the results of operations for the
accounting period. It includes revenues and expenses; you subtract expenses from
revenues to get results from operations. The third financial statement is the state-
ment of cash flows, which reveals the inflows and outflows of cash.
447
448 Chapter 11
The statement of activities is prepared on an accrual accounting basis—that is,

revenues are recorded at the time that sales are made (even though cash will often
be received much later) and expenses are recorded as they are incurred. The oper-
ating performance of the club is the focus of the statement of activities. However,
the club’s bills are paid with cash, and in order for a club to prosper, the liabilities
of the club must be paid on a timely basis. Therefore, the statement of cash flows
is prepared to help club managers effectively manage the cash receipts and cash
disbursements of the club.
The statement of financial position, statement of activities, and statement of
cash flows are interrelated, and, in the words of financial executives, they must
“articulate”—that is, they must agree with each other and fit together like gears
do. For example, the difference in cash on two successive statements of financial
position is reflected on the statement of cash flows; the club’s operating perfor-
mance, as reflected on the statement of activities, is transferred to the appropriate
members’ equity account on the statement of financial position.
Several sectors of the hospitality industry have a uniform system of accounts
that serves as a guide for preparing financial statements. The Uniform System of
Financial Reporting for Clubs (hereafter referred to simply as USFRC) was last
revised in 2003. It is useful for several reasons:
•• It is a turnkey system.
•• It is a time-tested system (it was first created in 1954).
•• It is organized on a responsibility-accounting basis.
•• It can be adapted by clubs of any size.
The USFRC provides recommended formats for the major financial state-
ments as well as numerous supplementary financial schedules for both city and
country clubs. (Selected sample schedules will be provided later in the chapter for
both types of clubs.) A large club may use every recommended schedule, while a
small club will simply ignore schedules that do not apply. A new club could sim-
ply adopt, without any major changes, the recommended statement formats, and
it would be reporting its financial results on a basis similar to that of clubs more
than a century old that use the USFRC.
The USFRC has been revised several times. With each revision, changes have
been made to provide for more accurate and meaningful financial reporting. As
the major accounting rule-making organizations have dictated changes in account-
ing, the USFRC has been updated to keep pace.
Now let’s take a closer look at the major financial statements—the statement
of financial position, statement of activities, and statement of cash flows.
Statement of Financial Position

The statement of financial position reveals a club’s financial position at the end of
an accounting period. Specifically, it is a snapshot that reflects a club’s assets, liabil-
ities, and members’ equity on that particular day. Assets are items of value owned
by the club; liabilities and members’ equity represent claims to the assets. The
liabilities are the claims of outsiders such as suppliers and financial institutions.
Club Financial Management 449
Exhibit 1 Statement of Financial Position
STATEMENT OF FINANCIAL POSITION

(Insert period ended)
Assets
Current Year Prior Year

Current Assets
Cash and cash equivalents $ $
Short-term investments
Receivables:
Accounts receivable—members
Notes and deferred initiation fees receivable
Current portion of noncurrent receivables
Other receivables
Total receivables
Less allowance for doubtful accounts
Net receivables
Inventories
Prepaid expenses
Other current assets
Total current assets
Noncurrent Receivables, Net Of Current Portion
Designated Assets
Investments—Long-Term
Property And Equipment
Land
Golf course and golf course improvements
Construction in progress
Leasehold and leasehold improvements
Buildings and building improvements
Furniture, fixtures, and equipment
China, glassware, silver, linen, and uniforms
Total property and equipment
Less accumulated depreciation and amortization
Net property and equipment
Other Assets
Security deposits
Deferred charges
Other
Total other assets
Total Assets $ $
(continued)
Those to whom the club owes money have the first claim to assets. The residual
claim to the assets belongs to the club’s members and is shown as members’ equity
on the statement of financial position. Exhibit 1 is the USFRC’s recommended for-
mat for a club statement of financial position. The “Assets” section is divided into
six parts: (1) current assets; (2) noncurrent receivables, net of current portion; (3)
designated assets; (4) investments—long-term (5) property and equipment; and
450 Chapter 11
STATEMENT OF FINANCIAL POSITION

(Insert period ended)
Liabilities and Net Assets
Current Year Prior Year

Current Liabilities
Notes payable $ $
Accounts payable
Taxes payable and accrued
Accrued expenses
Current portion of long-term debt
Deferred revenue
Deferred income taxes—current
Special purpose funds
Other current liabilities
Total current liabilities
Long-Term Debt
Notes payable, net of current maturity
Obligations under capital lease, net of current maturity
Mortgage payable, net of current maturity
Total long-term debt
Other Long-Term Liabilities
Deferred compensation
Deferred income taxes—noncurrent
Interest rate swaps
Other
Total other long-term liabilities
Total liabilities
Unrestricted Net Assets (Members’ Equity)
Capital stock
Designated
Undesignated
Total unrestricted net assets
Total Liabilities And Net Unrestricted Assets $ $
(6) other assets. Generally, the largest percentage of a club’s assets are property
and equipment.
The “Liabilities and Net Assets” section consists of current liabilities, long-
term debt, and other long-term liabilities, as well as unrestricted net assets (mem-
bers' equity). Current liabilities represent club obligations that must be paid
within the next twelve months. Long-term debt includes notes, mortgages, and
other long-term debt not due in the next twelve months. Other long-term liabilities
include deferred compensation, deferred income taxes, interest rate swaps, and
other. Finally, the unrestricted net assets portion reflects the members’ investment
and the results of other activities (primarily operations) shown on the statement of
activities. Past earnings and capital assessments are shown first on the statement
of activities and then in this portion of the statement of financial position.
When you read a club’s statement of financial position, you must remember
that it reflects the club’s financial position only at a single point in time—generally,
the last day of the accounting period. This is considered a limitation of the state-
ment of financial position.
Another limitation of this statement is that the value of most of the club’s
assets is based on historical cost—that is, the cost of assets, especially property
and equipment, less accumulated depreciation. If a club’s facilities are maintained
in excellent condition, they may well be increasing in value and should generally
be insured at their replacement cost rather than any lesser net book value. For
example, a club’s building might have cost $2 million in 1950 but today it might be
worth $5 million. In the meantime, the building may have been depreciated down
to $500,000 (its net book value). The value shown on the statement of financial
position is $500,000, even though the building is worth $5 million and should be
insured for that amount. Thus in this hypothetical case, the statement of financial
position fails to reflect a realistic value.
Finally, the club’s employees are a major “asset” of the club. A well-trained
work force with high morale will provide quality service to club members, thereby
enhancing the value of the club, yet this human asset is not reflected on the state-
Despite these limitations, the statement of financial position is useful because
it reveals, as of a particular date:
•• The amount of the club’s total debt
•• The resources currently available to pay debt coming due—that is, the current
assets that are available to pay current liabilities
•• The amount of club assets, broken down into the six categories mentioned
earlier: current assets; noncurrent receivables, net of current portion; desig-
nated assets; investments—long-term, property and equipment; and other
assets
•• The amount of members’ equity in the club
Financial analysis of the statement of financial position will be covered in
more detail in the ratio analysis section of the chapter. However, two ratios pro-
vide special insight into the statement of financial position and should be men-
tioned here. The current ratio, determined by dividing current assets by current
liabilities, is a general indicator of the club’s ability to pay its bills in the short run.
The debt-equity ratio compares the amount of total debt to the total members’
equity. The larger this ratio, the greater the financial risk to a club’s creditors and
members.
Statement of Activities
The statement of activities reflects the operating results of the club for a period
of time. In particular, it shows income (also referred to as sales or revenue) and
expenses. The accounting/consulting firm of PKF annually conducts a survey of
both city and country clubs and publishes the results. Exhibit 2 reveals the major
sources of country club income and where it went. It is interesting to note that 57
452 Chapter 11
Exhibit 2 Club Income and Expenses
percent of the average club’s total income came from dues, followed next by 19
percent from food sales. By far the largest expenditures, at 56 percent, were for
payroll and related costs.
The USFRC provides two sample statements of activities for country clubs—
one for club members (see Exhibit 3) and one for club managers (see Exhibit 4). The
statement for club members is a summary statement only, because club members
typically don’t want or need a lot of detail; managers receive a detailed statement
Exhibit 3 Country Club Statement of Activities
COUNTRY CLUB
STATEMENT OF ACTIVITIES
(External)
Period Ended
Revenue
Membership dues $
Initiation fees
Unused food minimums
Food
Beverage
Entertainment
Golf operations
Golf shop
Racquet sports
Aquatic sports
Other sports activities
Overnight rooms
Locker rooms
Telecommunications
Other operating departments
Rentals and other revenue
Total revenue
Operating Expenses
Food
Beverage
Entertainment
Golf operations
Golf shop
Golf course maintenance
Racquet sports
Racquet shop
Aquatic sports
Other sports activities
Overnight rooms
Locker rooms
Telecommunications
Other operating departments
Clubhouse
Administrative and general
Facility maintenance
Energy costs
Total operating expenses
Income Before Fixed Charges
Fixed Charges
Rent
Property taxes and other municipal charges
Insurance
Interest
Depreciation and amortization
Total fixed charges
Income (Loss) Before Taxes
Provision for Income Taxes
Results of operations
Other Activities
Initiation fees
Special assessments
Investment income
Other
Increase (Decrease) in Unrestricted Net Assets (Members’ Equity)
Unrestricted Net Assets, Beginning of Period
Unrestricted Net Assets, End of Period $
See notes to financial statements
454 Chapter 11
Exhibit 4 Country Club Statement of Activities by Department
COUNTRY CLUB
(In Departmental Form)
(Internal)
Schedule Period Ended

Membership Revenue
Membership dues $ $
Initiation fees
Total membership revenue
Cost of Sports Activities
Golf operations income (loss) E
Less golf course maintenance G
Golf shop F
Net golf profit (expense)
Racquet sports H
Racquet shop I
Aquatic sports J
Other sports
Net cost of sports activities
Membership revenue available for
clubhouse operations and fixed charges
Clubhouse Operating Income (Loss)
Food A
Beverage B
Entertainment C
Overnight rooms D
Locker rooms L
Telecommunications M
Other operating departments N
Rentals and other revenue O
Total clubhouse operating income (loss)
Undistributed Operating Expenses
Administrative and general P
Clubhouse Q
Facility maintenance R
Energy costs R
Clubhouse operations and undistributed
operating expenses
Fixed Charges S
Rent
Insurance
Interest
Total fixed charges
Provision for Income Taxes S
Other Activities
Initiation fees
Special assessments
Investment income
Other
Increase (Decrease) in Unrestricted Net Assets
(Members’ Equity)
Unrestricted Net Assets, Beginning of Period
Unrestricted Net Assets, End of Period $ $
that includes all of the supplemental schedules because they are responsible for
the club’s operations.
First let’s look at Exhibit 3, the statement of activities for country club mem-
bers. As you can see, the statement is divided into five sections:
1. Revenue. Revenue includes membership dues, initiation fees, and various rev-
enues such as overnight rooms, food, and beverage revenue.
2. Operating expenses. Some operating expenses are listed by department (food,
beverage), while others are listed under more general terms such as clubhouse,
administrative and general, and facility maintenance. Operating expenses
include, but are not limited to, salaries, wages, payroll taxes, employee ben-
efits, cost of food sold, and cost of beverage sold.
3. Fixed charges. Fixed charges include rent, property taxes, insurance, interest,
and depreciation.
4. Provision for income taxes. Provision for income taxes is the estimated amount
of income taxes for the period. The “results of operations” line is the differ-
ence between income and expenses.
5. Other activities. This section follows the results of operations and is called
“other activities” because the items listed here support the club financially,
but they represent activities “other than” the support (revenue) generated by
the club’s operations.
This section includes initiation fees, capital assessments, proceeds from
the sale of membership certificates, and disbursements for redemption of
membership certificates. The initiation fees listed in this section are initiation
fees that were designated for capital improvements to the club or for other
non-operational activities; the initiation fees listed in the “revenue” section
at the top of the statement are initiation fees used for normal club operations.
“Membership certificates” are what members receive in return for refundable
deposits they make to the club; these certificates entitle the members to vote
for the governing board of the club. (Owning member certificates is some-
what similar to owning capital stock in a for-profit corporation.)
The bottom line of the statement of activities is “increase (decrease) in
unrestricted net assets (members’ equity).”
The phrase “see notes to financial statements” at the bottom of the statement
of activities refers readers—in this case, club members—to supporting documen-
tation. Notes to financial statements often consist of several pages of explanation
to help members interpret the numbers on the financial statements. Notes to finan-
cial statements typically include such information as the club’s accounting policies
and information on the club’s leases, long-term debt, and membership certificates.
These notes are provided with the financial statements that are issued to external
users of the statements. All of this information and much more is always available
to internal users, so these notes are not normally included with financial state-
ments generated for internal users only.
The statement of activities for country club managers (see Exhibit 4) is divided
into the following sections:
456 Chapter 11
1. Membership revenue. This section includes membership dues and initiation fees.
2. Cost of sports activities. This section covers the sports activities of country
clubs, and this is the first section that refers readers (in this case, country
club managers) to supplemental schedules. Because USFRC’s sample state-
ments of activities for both city and country clubs are based on responsibility
accounting, each club department must give a detailed report of its revenues
and expenses on supplemental schedules. With these detailed numbers, it’s
easier to hold each department head responsible for the results of his or her
department’s operations. For example, supplemental schedule E details the
revenue and expenses for the club’s golf operation (excluding golf course
maintenance, which is under a separate manager and is given its own supple-
mental schedule, G). The other items in this section are racquet sports, aquatic
sports, golf shop, racquet shop, and other sports expenses. The difference
between membership revenue and the net cost of sports activities is called
“membership revenue available for clubhouse operations and fixed charges.”
3. Clubhouse operating income (loss). This section reflects clubhouse operating
income (or loss). Included in this section are the club’s operating results in
the food, beverage, entertainment, overnight rooms, locker rooms, telecom-
munications, other operating departments, and rentals and other revenue
areas. Reference is made to the supplemental schedule for each department.
For example, the supplemental schedule for the food department is A (see
Exhibit 5). This schedule includes food and related income such as unused
minimum and dining room rental. In addition, the food schedule shows all
of the related direct expenses of the food department, including payroll and
related expenses and such “other expenses” as contract cleaning, equipment
rental, laundry and linen, and so on. The supplemental schedule for “rentals
and other revenue” includes all revenue not included elsewhere. Examples of
other revenue include space and rentals, concessions, commissions, interest
income, and other revenue.
4. Undistributed operating expenses. “Undistributed operating expenses” is the
next section on the statement of activities for country clubs (Exhibit 4). A
supplemental schedule is included for the four items listed in this section.
These operating expenses increase or decrease as operating income increases
or decreases; they are described as “undistributed” because they are not allo-
cated to the various profit centers of the club.
5. Fixed charges. The fifth section of the statement, fixed charges, shows expenses
related to the club’s physical facilities. The rent relates to renting the building
and surrounding land. The property taxes are based on the assessed value of
the club’s land and building(s). The insurance expense relates to the cost of
insuring the club’s physical facilities and their furnishings. Interest expense,
for the most part, is based on the debt incurred to finance the club’s facilities
and equipment, while depreciation is the periodic write-off of the club’s facili-
ties and equipment as expense.
“Total fixed charges” is the sum of rent, property taxes, insurance
expenses, interest expenses, and depreciation expenses. “Income (loss) before
Exhibit 5 Food—Supplemental Schedule
City or Country Club
Food—Schedule A
Food Sales (List Revenue by Location) $

Cost of Food Sold
Cost of food consumed
Less credit for employees’ meals
Less credit for gratis food
Cost of food sold
Gross profit on food sales
Other Revenue
Unused minimum
Dining room rental
Total other revenue
Total gross profit and other revenue
Departmental Expenses
Payroll and related expenses
Salaries and wages
Less service charges
Net salaries and wages
Payroll taxes and employee benefits
Employees’ meals
Total payroll and related expenses
Other expenses
China, glassware, and silver
Computer expense
Contract services
Dues and subscriptions
Equipment rental
Equipment repair and maintenance
Gratis food
Kitchen fuel
Laundry and linen
Licenses and permits
Music and entertainment
Operating supplies
Printing and stationery
Professional development
Telephone
Uniforms
Other operating expenses
Total other expenses
Total Departmental Expenses
Departmental Income (Loss) $
income taxes” is the income or loss the club experienced for the accounting
period; this number is arrived at by subtracting the total fixed charges from
income before fixed charges.
458 Chapter 11
6. Provision for income taxes. For clubs subject to income taxes, provision for
income taxes is shown just before the bottom line, called “results of opera-
tions.” Membership income, minus the cost of sports activities, plus (or minus)
clubhouse operating income, minus undistributed operating expenses, minus
fixed charges, minus provision for income taxes equals results of operations.
The major focus of a club’s general manager is on operations. Therefore, refer-
ring to the statement of activities in Exhibit 4, a country club’s general manager is
focused on, and has authority to control, all those revenues and expenses shown
on the statement, down to the “income before fixed charges” line. Working with
the department heads of each profit and expense center, the general manager will
attempt to maximize the club’s profits while maintaining the quality of service
club members desire. The general manager will hold the club’s department heads
responsible for the departments they manage, just as the club’s board will hold the
general manager responsible for how well he or she manages the club.
Although each club manager should focus primarily on his or her area of
responsibility, a club’s managers must also function as a team and support one
another. For that reason, department heads need to understand the supplemen-
tal schedules of other departments as well as their own. Each department head
should feel free to make recommendations for improving operations in any area of
the club, and these recommendations should be welcomed by the other members
of the management team.
The fixed charges of the club, as shown in the “fixed charges” section of the
statement of activities, are outside the general manager’s control and relate to
decisions made by the club’s board. For example, the amount of interest expense
relates primarily to the financing of the club’s facilities and equipment; the more
the club goes into debt to purchase facilities and equipment, the greater the inter-
est expense. A club’s board and finance committee have prime responsibility for
this area. The results of their decisions regarding financing are directly reflected in
this portion of the statement of activities.
For the sake of comparison, Exhibit 6 is the USFRC’s sample statement of
activities for city club managers. Note that the major difference between this city
club statement and the country club statement shown in Exhibit 4 is that the city
club statement does not have a section for sports activities. However, if a city club
does have some sports activities, it can modify Exhibit 4 for its own use.
Depreciation. Throughout this section on the statement of activities, we have
referred to depreciation. Since depreciation is a major club expense that is some-
times misunderstood, we will take a brief look at it.
The use of cash for most expenses on a club’s statement of activities occurs
in the year, and often in the same month, that the expense is recorded; however,
capital expenditures, which include payments for the club’s facilities and their
furnishings, are initially recorded as property and equipment and shown on the
statement of financial position. The expensing of these capital costs over time is
referred to as depreciation expense. Depreciation is simply the allocation of capi-
tal costs to expense for the periods of time the facilities and furnishings are used
to generate income. The allocation can be achieved by a number of methods. The
simplest depreciation method is straight-line. This method results in an equal
Exhibit 6 City Club Statement of Activities
CITY CLUB
(In Departmental Form)
(Internal)
Schedule Period Ended
Membership Revenue
Membership dues $ $
Initiation fees
Total membership revenue
Clubhouse Operating Income (Loss)
Food A
Beverage B
Entertainment C
Overnight rooms D
Health and fitness K
Telecommunications M
Other operating departments N
Rentals and other revenue O
Total clubhouse operating income (loss)
Undistributed Operating Expenses
Administrative and general P
Clubhouse Q
Facility maintenance R
Energy costs R
Clubhouse net (loss)
Fixed Charges S
Rent
Insurance
Interest
Total fixed charges
Provision for Income Taxes S
Other Activities
Initiation fees
Special assessments
Investment income
Other
Increase (Decrease) In Unrestricted Net Assets
(Members’ Equity)
Unrestricted Net Assets, Beginning Of Period
Unrestricted Net Assets, End Of Period $ $
460 Chapter 11
allocation of cost annually over the useful life of the asset. For example, assume
that a club purchases a van for $32,000. Further, assume that the van is expected
to have a useful life of five years, after which it is expected to be sold for $2,000, its
estimated salvage value. The van’s annual depreciation, based on the straight-line
method, is determined as follows:
Annual Cost – Salvage Value

=
Depreciation Years of Useful Life
Annual
= $32,000 – $2,000 = $6,000
Depreciation 5
Statement of Cash Flows

The third major financial statement is the statement of cash flows (SCF). Like the
statement of activities, the SCF is a dynamic statement in the sense that it covers
activity for a period of time. The SCF reflects sources and uses of cash by area of
activity.
Exhibit 7 is the sample SCF from the Uniform System of Financial Reporting
for Clubs. This statement is divided into three major categories—cash flows from
operating activities, cash flows from investing activities, and cash flows from
financing activities.
Cash Flows from Operating Activities. The cash flows from operating activities
reveal the amount of cash generated by the club’s operations for the accounting
period. This section starts with the bottom line from the statement of activities for
club members, which is “increase (decrease) in unrestricted net assets.” The next
line, “Adjustments to reconcile increase (decrease) in net assets to net cash pro-
vided (used) by operating activities” is simply a descriptive line to identify what
the following lines—“depreciation and amortization,” “deferred income taxes,”
“revenue designated for capital replacements and improvements,” “(gains) losses
on sales of investments,” “(increase) decrease in assets,” and “increase (decrease)
in liabilities”—represent: adjustments to the “increase (decrease) in net assets” to
reflect the cash provided by the club’s operations.
Depreciation expense is always added at this point. Depreciation is simply a
bookkeeper’s number; it does not represent a cash disbursement. However, depre-
ciation expense was subtracted in determining the bottom line of the statement of
activities (“increase [decrease] in net assets”), which is what we are adjusting to
arrive at cash flow from operations, so it must now be added back.
Other adjustments listed in this section are the changes in the current asset and
current liability accounts. Increases in current asset accounts between statement of
financial position dates covered by the accounting period are subtracted, while
decreases are added. For example, if accounts receivables increase from $250,000
at the beginning of the period to $300,000 at the end of the period, then the differ-
ence—$50,000—is subtracted because, in effect, the increase in accounts receivable
during the accounting period took cash, because the club’s members did not pay
their accounts. Changes in current liability accounts related to operations are also
shown as adjustments to determine the cash flows from operations. For example,
Exhibit 7 Statement of Cash Flows
STATEMENT OF CASH FLOWS

(Indirect Approach)
Cash Flows from Operating Activities
Increase (decrease) in unrestricted net assets $
Adjustments to reconcile increase (decrease) in net assets to
net cash provided (used) by operating activities
Deferred income taxes
Revenue designated for capital replacements and improvements
(Gains) losses on sales of investments
(Increase) decrease in assets
Accounts receivable
Inventories
Prepaid expenses
Other current assets
Security deposits
Increase (decrease) in liabilities
Accounts payable
Taxes payable and accrued
Accrued expenses
Deferred revenue
Special purpose funds
Other current liabilities
Net cash provided (used) by operating activities
Cash Flows from Investing Activities
Deposits to designated assets
Expenditures for property and equipment
Purchases of investments
Redemption of investments
Net cash provided (used) by investing activities
Cash Flows from Financing Activities
Revenue designated for capital replacement and improvements
Proceeds of debt
Repayment of debt
Capital stock (membership certificates) sold
Capital stock (membership certificates) redeemed
Net cash provided (used) by financing activities
Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Period
Cash and Cash Equivalents, End of Period $
Supplemental Disclosure of Cash Flow Information:
Interest paid during the year $
Income taxes paid during the year $
See notes to financial statements.
if the accounts payable increase during the accounting period, then the increase is
reflected as an increase in this section. In essence, an increase in payables results in
more cash, as more credit has been extended to the club by suppliers.
462 Chapter 11
Cash Flows from Non-Operating Activities. The second and third sections of the
SCF reflect non-operating financial activities of the club. These activities consist of
the club’s investing and financing activities. The cash flows from investing activi-
ties reflect cash activities related to designated funds, property and equipment,
and investments. For example, a club’s purchase of undeveloped land for pos-
sible expansion would be shown as a disbursement of cash in this section (under
“expenditures for property and equipment”); a sale of an investment would be
shown as receipt of cash from a redemption of investments. The purchase of the
land would be shown as a negative number, since it reduces cash, while the sale
of the investment would be shown as a positive number, since cash is increased.
The “cash flows from financing activities” section relates to debt and mem-
bership-certificate activities. Borrowing money and selling membership certifi-
cates result in increases in cash, while repaying debt and redeeming membership
certificates result in the reduction of cash.
The “increase (decrease) in cash and cash equivalents” line is the sum of the
net cash flows from the three major activities—operating, investing, and financ-
ing. This sum is equal to the change in cash for the period. For example, if the cash
balance at the beginning of the month is $50,000 and it is $60,000 at the end of the
month, then there has been an increase of $10,000 in cash. The sum of cash from
operating, investing, and financing activities as shown on the SCF for this period
in this example must equal $10,000.
The “supplemental disclosure of cash flow information” section simply
reveals the amount of cash disbursed during the accounting period for interest
expense and income taxes.
The major focus of a club is its operations. Therefore, the club’s board and its
management team generally are most interested in the club being able to generate
positive cash flows from operations. If a club’s operations are using or decreasing
cash flows rather than providing cash flows, then other sources of funds must be
sought to provide sufficient cash flows to operate the club.
Analyzing Financial Statements

Financial statements are often presented on a comparative basis—that is, state-
ments of financial position are shown for the end of two successive years, or the
statements of activities for two years are shown. Comparing the two successive
sets of numbers by computing the dollar change and the percentage change is
called horizontal analysis. Exhibit 8 shows the current asset section of a compara-
tive statement of financial position. Note that the amount of cash and other current
assets are shown for each statement of financial position. The dollar difference is
simply the difference between the two years, with increases shown as positive
and decreases shown as negative. The dollar change of an item divided by the
statement-of-financial-position number from the earliest year results in the per-
centage change. The value of this analysis is that it makes it easier for users of the
financial statement to focus on significant changes. A wise general manager will
analyze any significant differences and provide the club’s board and appropriate
committees with succinct explanations. The key for the manager is to anticipate
and be prepared for board- and committee-member questions.
Exhibit 8 Sample Club Comparative Statement of Financial Position (Current
Assets Only)
COMPARATIVE STATEMENT OF FINANCIAL POSITION (CURRENT ASSETS ONLY)

December 31, 20X1 and 20X2
Dollar Percentage
20X1 20X2 Change Change
Current Assets:
Cash $ 30,000 $ 35,000 $ 5,000 16.67%
Accounts Receivable 350,000 385,000 35,000 10.00%
Inventory 20,000 18,000 <2,000> <10.00%>
Prepaid Expenses $ 12,000 $ 12,000 –0– –0–
Total $ 412,000 $ 450,000 $ 38,000 9.22%
A second analytical approach is referred to as vertical analysis. In a vertical

analysis, the financial-statement numbers are reduced to percentages. These state-
ments are generally called common-size statements. For a common-size statement
of financial position, “assets” and “liabilities & owners’ equity” are set equal to
100 percent and all sub-elements are shown as a percentage of those totals. Verti-
cal analysis is often used for analyzing departmental operating statements. On a
department statement, net revenue is set equal to 100 percent and each expense is
shown as a percentage of net revenue. The percentages then can be compared to
the prior period’s percentages and/or the budgeted percentages to determine the
department’s efficiency.
A third approach to analyzing financial statements is the calculation of finan-
cial ratios. Simply calculating a ratio does not reveal very much; ratios are most
meaningful when they are compared to a standard. The standard for club man-
agers is usually the current budget, although ratios can also be compared to the
club’s past performance. The same ratios calculated at intervals over a period of
time can alert club managers to meaningful trends.
There are five major classes of financial ratios:
•• Liquidity ratios—ratios designed to indicate a club’s ability to pay its bills in
the short run.
•• Solvency ratios—ratios designed to indicate a club’s long-term financial
viability.
•• Activity ratios—ratios designed to indicate management’s effectiveness in
using the club’s resources.
•• Profitability ratios—ratios designed to indicate the club’s degree of profitability.
•• Operating ratios—ratios designed to measure the club’s operating efficiency.
464 Chapter 11
Different users of financial statements tend to be interested in different classes

of ratios. Owners of clubs, especially nonequity (profit-oriented) clubs, are gener-
ally most interested in profitability ratios. Creditors (lenders and suppliers) use
profitability and solvency ratios to evaluate the solvency of clubs and determine
the risk involved in granting loans or extending credit. Club general managers
use ratios to monitor the club’s operating performance and evaluate their success
in meeting a variety of goals. Department heads tend to focus on their own areas
of responsibility and generally are most interested in operating ratios related to
their departments. Since general managers must work with owners, creditors, and
department managers, they must have an interest in all classes of ratios.
There are literally hundreds of ratios; however, our discussion will be limited
to just a few examples of the ratios within each ratio class. Each ratio presented
will be briefly described and the formula for its calculation provided.
Liquidity Ratios
The three liquidity ratios discussed in this section are the current ratio, the accounts
receivable turnover ratio, and the operating cash flows to current liabilities ratio.
The current ratio is determined as follows:
Current Assets
Current Ratio = Current Liabilities
The current-assets number and current-liabilities number come from the state-
The current ratio compares current assets, which include cash and assets to be
converted to cash or used in the club’s operations within a year, to current obliga-
tions that must be paid within a year. The higher this ratio, the greater the capabil-
ity of the club to pay its bills as they become due.
The accounts receivable turnover ratio is determined as follows:
Revenues
Accounts Receivable Turnover = Average Accounts Receivable
Revenues are recorded on the statement of activities, while the average accounts
receivable is determined by dividing by two the sum of the beginning and ending
accounts receivables shown on the beginning- and end-of-the-year statements of
financial position.
Since most clubs have relatively large amounts of accounts receivables, it
is imperative that this ratio be calculated to determine the overall condition of
accounts receivable. A goal of club managers is to turn accounts receivable into
cash in a timely fashion. The accounts receivable turnover ratio gives club manag-
ers a quick reading of how well the club is achieving this goal. If the ratio does not
meet the club’s target ratio, then club managers need to look into the reasons.
Another perspective on accounts receivable is determining the average col-
lection period. This is accomplished by dividing accounts receivable turnover into
the number of days in the accounting period.
Finally, the operating cash flows to current liabilities ratio is computed as
follows:
Operating Cash Flows to Operating Cash Flows
Current Liabilities Ratio
= Average Current Liabilities
The operating cash flow figure is taken from the SCF, while the average current
liabilities figure is based on statement-of-financial-position numbers. Since a club’s
bills are paid with cash, a useful comparison would be between operating cash
flows for an accounting period and the average liabilities due over the same period.
Solvency Ratios
The two solvency ratios discussed here are the debt-equity ratio and the number
of times interest earned ratio. The debt-equity ratio views solvency from a state-
ment-of-financial-position perspective, while the number of times interest earned
ratio looks at the club’s financial viability from an income perspective.
The debt-equity ratio is computed as follows:
Total Liabilities
Debt-Equity Ratio = Total Members’ Equity
(Net Assets)
This ratio uses two numbers from the statement of financial position to compare
the club’s total debt to its total members’ equity.
The debt-equity ratio is especially useful to auditors. Club managers can cal-
culate it and compare it to targeted or historical figures to determine whether the
ratio is too high. The higher the ratio, the greater the reliance on debt and the
greater the financial risk the club is taking. If the ratio is too high, a club might not
be able to make its debt payment and it might be on its way to insolvency.
The number of times interest earned ratio is determined as follows:
Earnings Before Interest and Taxes
Number of Times Interest Earned = Interest Expense
The numerator of this ratio consists of the club’s earnings prior to the payment
of income taxes and interest expense. This number is then divided by interest
expense.
This ratio is especially useful to creditors because they grant credit to clubs.
It can be compared to the targeted ratio or historical ratios to determine whether
the ratio is too low. The higher this ratio, the greater the club’s perceived ability to
pay its long-term bills. If it is too low, insolvency and even bankruptcy could be in
the near future.
Activity Ratios
The activity ratios presented in this section are inventory turnover, asset turnover,
and paid occupancy percentage.
The inventory turnover ratio is calculated as follows:
Cost of Goods Used
Inventory Turnover = Average Inventory
The word “goods” is used in a generic sense. This ratio should be calculated for
food, beverages, and other “goods” sold at the club.
466 Chapter 11
Club department managers should calculate the inventory turnover ratio for
each type of inventory. At most clubs this will include a separate calculation for
food and beverages. The results indicate the number of inventory turns for the
time period. A very low turnover suggests too much inventory. Excessive inven-
tory items are likely to be wasted, especially when inventory items have a short
shelf-life. On the other hand, a very high turnover might indicate that the club
frequently runs out of some of its inventory items and thus is sometimes unable to
meet member expectations.
The days of inventory on hand can be determined by dividing the inventory
turnover ratio into the days in the accounting period.
The asset turnover ratio reflects the relationship between a club’s total rev-
enue and its average total assets. It suggests the general manager’s ability to gener-
ate revenue with the use of the assets he or she has been entrusted with. The asset
turnover ratio is calculated as follows:
Total Revenue
Asset Turnover Ratio = Average Total Assets
Paid occupancy percentage is a useful ratio for clubs with overnight rooms.
This ratio is determined as follows:
Rooms Sold
Paid Occupancy % = Rooms Available
The “rooms sold” number comes from adding the number of rooms sold for
each day of the accounting period (the daily report of operations would gener-
ally include the number of rooms sold); the “rooms available” number is the total
number of overnight rooms available for sale at the club.
Rooms are the “inventory” of the rooms department; the potential revenue
from a room not sold is lost forever. The paid occupancy percentage reveals the
percentage of available overnight rooms that were sold during the period. The
higher the percentage, the better. This percentage is generally regarded as the sin-
gle most useful ratio for revealing how successful the club’s rooms department
has been.
Profitability Ratios
There are a multitude of profitability ratios. However, this section will be limited
to profit margin, operating efficiency ratio, and return on members’ equity.
Profit margin is calculated as follows:
Results of Operations
Profit Margin = Total Revenue
The numbers used in this and other profitability ratios are virtually all found in the
operating results shown on the statement of activities and the related department
schedules.
The profit margin ratio reveals the percentage of revenue that “drops” to the
operating bottom line as profits. For example, a profit margin of 5 percent means
that for every $1 of revenue the club takes in, it makes $.05. Though profitability
per se is generally not a major objective of equity (nonprofit) clubs, the profit
margin ratio is still useful, because it reflects how efficiently the club managers
are managing the club. Board members are often very interested in this ratio,
because if the profit margin falls too low for too long, the club might experience
difficulty in covering its fixed charges and membership dues might have to be
increased.
The operating efficiency ratio is determined as follows:
Operating Efficiency Ratio = Total Revenues
The operating efficiency ratio is designed to measure the general manager’s over-
all success in managing the club. Generally, the general manager has the author-
ity to control operating expenses—those expenses above the “income before fixed
charges” line on the statement of activities (see Exhibit 4). (As mentioned earlier,
the “fixed charges” section shown on the statement of activities relates primarily
to board decisions rather than to those of the general manager.) Thus, the operat-
ing efficiency ratio is generally considered to be a key measure of the general man-
ager’s performance. A club’s general manager should calculate this ratio to make
sure he or she is in line with the targeted ratio.
Finally, the return on members’ equity compares the earnings of the club to
the equity of its members. It is calculated as follows:
Results of Operations
Return on Members’ Equity = Average Members’ Equity
(Net Assets)
The return on members’ equity ratio is typically calculated by a club’s general man-
ager and/or chief financial officer. It reveals the results of operations for the year
as a percentage of the average members’ equity (net assets). The average members’
equity is determined by dividing the sum of the members’ equity from the state-
ments of financial position at the beginning and end of the year by two. In general,
the higher the return on the members’ equity, the greater the profitability of the
club. This ratio is considered extremely valuable for clubs whose goal is to make
profits for its owners/members.
Operating Ratios
The final category of ratios is referred to as operating ratios. Generally, club
department heads and the general manager are most interested in these ratios,
since they reflect the operating success of individual club departments. A club’s
board generally views department activities as the primary responsibility of the
club’s management team and prefers that the general manager deal with these
issues. Only a few key operating ratios are presented in this section: average food
service check, cost of food sold percentage, and cost of labor percentage.
For the club’s food and beverage outlets and other profit centers, the average
check should be calculated. For a food operation, the average check is determined
as follows:
Food Revenue
Average Food Service Check = Covers Served
468 Chapter 11
The “food revenue” number comes from the statement of activities; the “covers
served” number comes from the daily report of operations.
The department manager should compute the average food service check by
meal period for each food outlet. The results can then be compared to budget tar-
gets to determine the club’s success in achieving its desired average food service
check. Similar ratios should be computed for the club’s other profit centers, such as
bars, overnight rooms, the golf course, and so on.
A major ingredient of a sale is the cost of the product sold. Therefore, the
cost of products as a percentage of profit-center revenue should be calculated. For
a club’s food service operation, the cost of food sold percentage is calculated as
follows:
Cost of Food Sold
Cost of Food Sold Percentage = Food Sales
The cost-of-food-sold number and food-sales number come from the food depart-
ment schedule.
Generally, only a single cost of food sold percentage is determined for food
service operations; therefore, this usually cannot be calculated by outlet or meal
period.
The cost of food sold percentage is compared to budget targets or historical
numbers. If the percentage differs significantly from the target, this suggests to the
club’s food and beverage managers that the club’s operating standards in the food
department are not being met. Further investigation can reveal the cause of the
problem or problems (waste, failure to follow standard recipes, theft, and so on).
The cost of food sold percentage is useful in controlling product costs. Manag-
ers of other profit centers in the club (such as the golf shop, tennis shop, beverage
department, and so on) can modify this percentage and use it in their departments.
For most club operations, labor costs are the major expense, often averaging
more than 50 percent of the operation’s revenue. As an overall means to deter-
mine whether labor costs are within desirable boundaries, department managers
should calculate the cost of labor percentage for their departments and the general
manager should calculate it for the club as a whole. The cost of labor percentage
for a department is calculated as follows:
Cost of Labor
Cost of Labor Percentage = Department Revenue
The cost-of-labor and department-revenue numbers come from department

schedules. Remember, the cost of labor includes wages and salaries and related
payroll costs, including fringe benefits and payroll taxes. When a department has
only expenses, such as golf course maintenance, this ratio should be determined
by dividing “cost of labor” by “total department expenses.”
Ratios Presented to Club Boards

Research by Schmidgall, Ninemeier, and Elsworth revealed that financial informa-
tion is presented to a club’s board of directors using financial ratios to supplement
the traditional financial statements.1
The most common ratios (by more than 50 percent of the clubs responding
to the survey) shared with club boards are from the operating class of ratios and
include cost of food sold percentage, cost of beverage sold percentage, and labor
cost percentage. Profit margin was the fourth most popular ratio used. Other ratios
used to a lesser degree (used by more than 20 percent of the responding clubs)
to provide financial insight were the current ratio, golf cart rounds per member,
average food service check, golf rounds per member, and maintenance expense
percent. Still other ratios used by less than 20 percent of the responding clubs
included debt-equity ratio, accounts receivable turnover, spending per member,
golf course maintenance per hole, and inventory turnover.
Overall, ratios from each class of ratios were used to inform board members
of the financial position and results of operations of their clubs. However, more
operating ratios were used than ratios from other classes.
Ratio Research Results

Research covering the financial results for just over one hundred clubs yielded
some interesting financial ratio results (see Exhibit 9).2 The middle column of
Exhibit 9 shows the median results for the clubs studied; columns are also included
for low- and high-performing clubs. The separation of the lowest and highest 20
percent of clubs is based on the clubs’ return on assets. Thus, the column labeled
“Bottom 20%—Low Performers” contains the average ratio results for the lowest
clubs (in terms of financial performance) in the survey.
In a number of areas, the differences between the high- and low-performing
clubs are fairly dramatic. In particular, major differences are noted in the liquidity,
solvency, and profitability ratio categories. Differences are mixed or less extreme
in the activity and operating ratios. Major differences in the operating ratios cat-
egory are seen in the food cost percentage, golf merchandise cost percentage, and
the labor cost percentage. These differences are major contributions to the differ-
ences noted in the profitability ratios.
Budgeting
A club uses at least three different budgets as guidelines for managing its financial
affairs: an operations budget, a capital budget, and a cash budget.
The operations budget is developed as a guideline for the club’s managers.
This budget includes projected revenue and expenses. The capital budget includes
the club’s plan for acquiring property and equipment. The third budget is the cash
budget; this budget projects the club’s future cash receipts and disbursements. The
cash budget is extremely useful for the club’s general manager and board because
it gives them estimates of the availability of cash in the future. Generally, a cash
budget is prepared along with each operations budget. For example, if a club pre-
pares operations budgets for five years into the future, cash budgets are prepared
for the same five years.
470 Chapter 11
Exhibit 9 Comparison of Key Financial Ratios for Clubs

Bottom Top 20%—
20%—Low Median High
Performers Performers
Liquidity Ratios:
Current Ratio 1.93 1.68 1.58
Accounts Receivable Turnover 8.59 11.21 13.20
Average Collection Period 42 days 33 days 28 days
Op. Cash Flows to Current Liabilities 0.09 0.44 0.81
Solvency Ratios:
Op. Cash Flows to Long-term Debt 0.03 0.18 0.59
Long-term Debt to Total Cap. 0.25 0.12 0.11
Debt-equity Ratio 0.13 0.10 0.12
Times Interest Earned (3.93) 1.48 15.92
Fixed Charge Coverage (1.21) 0.58 3.31
Activity Ratios:
Food Inventory Turnover
a. Times 20.03 times 18.54 times 21.59 times
b. Days 18 days 20 days 17 days
Beverage Inventory Turnover
a. Times 2.99 times 3.48 4.76 times
Golf Merchandise Inventory Turnover
a. Times 2.32 times 2.34 2.58 times
Property & Equipment Turnover 0.54 0.68 0.94
Total Asset Turnover 0.46 0.52 0.63
Profitability Ratios:
Profit Margin (11.21%) 0.10% 8.85%
Return on Assets (5.28%) 0.05% 5.23%
Operating Efficiency 8.85% 17.7% 23.74%
Operating Ratios:
Food Cost Percentage 40.90% 40.19% 34.72%
Beverage Cost Percentage 31.97% 32.02% 30.59%
Golf Merchandise Cost Percentage 23.00% 32.10% 36.34%
Labor Cost Percentage 54.35% 49.78% 48.23%
Operations Budget
At most clubs, the general manager is responsible for preparing the club’s oper-
ations budget. Of course, the general manager generally uses the talents of the
club’s management team to prepare it. Often the club’s controller will coordinate
the budget’s preparation by working with the department heads. The control-
ler provides department heads with the past operational history of their various
profit and service centers. The department heads then prepare their forecasts of
revenue and expenses, which are submitted to the controller. These are compiled
as the initial draft of the club’s operations budget.
During the preparation process, various club committees often work closely
with the department heads. For example, the finance committee often provides
input for the budget and reviews it before its final submission. An operations bud-
get usually is reworked a few times before it is presented to the club’s board for
approval.
Club managers benefit from preparing an operations budget in at least four
ways:
•• Budgeting requires club managers to examine alternatives before selecting
a particular course of action. For example, when deciding how membership
dues will be structured for the budget year, managers must think about how
any proposed dues changes might affect membership levels.
•• Budgeting provides a standard of comparison. At the end of an accounting
period (generally monthly), the club’s management team is able to compare
actual operating results to the budget plan. Significant differences between
budgeted and actual results should be analyzed to determine the probable
cause(s). These causes might require additional investigation and corrective
management action.
•• Budgeting compels the club’s management team to look forward, especially
when strategic planning is involved. Managers spend a lot of their time either
solving current problems or reviewing the past. Budgeting requires managers
to anticipate the future.
•• Finally, when participative budgeting is practiced, the budget process involves
the entire management team. This involvement helps motivate lower-level
managers because they get real input into the process rather than being forced
to adhere to budget numbers imposed on them.
The Budget Process. Putting an operations budget together involves several major
steps:
•• Establishing operating and financial objectives
•• Forecasting revenue
•• Forecasting expenses
•• Forecasting results of operations
•• Presenting the budget
472 Chapter 11
Establishing operating and financial objectives. Before the club’s manage-

ment team prepares the operations budget, the club’s board should establish the
club’s operating and financial objectives for the upcoming year. A major objective
established by many clubs is a targeted results-of-operations figure. In addition,
nonfinancial objectives that affect the operations budget should be established up
front. For example, a country club may aspire to have the most challenging golf
course in the area. Achieving this objective may involve several course enhance-
ments that require cash expenditures. The management team must be informed of
this objective to plan for the expenditures necessary to realize it.
Forecasting revenue. Forecasting revenue is the second major step in prepar-
ing the operations budget. To forecast revenue for their departments, the club’s
department managers must be provided with information regarding the economic
environment, the club’s marketing plans, the club’s capital budgeting, and detailed
historical financial results of their departments.
Historical financial information often serves as the foundation on which
department managers build their revenue forecasts. Managers use two basic
approaches. First, some department managers base their revenue forecasts on
prior actual results plus an overall expected percentage of increase. For example,
assume the dues for January for a hypothetical club were $70,000 the prior year
and that over the past three years dues in January had increased by 5 percent
a year. Using this approach, the estimated dues for January of the budget year
would be determined as follows:
$70,000 × 105% = $73,500
An alternative approach would be to base the dues forecast on the expected

number of members and the monthly dues. For example, if the forecasted number
of members is 1,000 and the average dues is $73.50, then the forecasted dues for
January of the budget year would be $73,500.
Both approaches yield the same forecast; however, using the second approach
might make it easier to find the cause(s) for differences between budgeted and
actual amounts.
Similar scenarios could be shown for club profit centers such as the food
department and the golf shop. Since the focus is on meeting members’ needs and
wants, budgeting approaches that focus on the number of members are more
likely to be useful for comparing budgeted and actual results.
Forecasting expenses. After forecasting revenue, the management team fore-
casts expenses. Department managers forecast their expenses based on histori-
cal experience, forecasted revenue, and other factors affecting their costs, such as
increases in the minimum wage.
Departmental expenses can often be segregated into two major categories,
fixed and variable. Fixed expenses remain relatively constant month after month,
while variable expenses change directly with departmental revenue. A depart-
ment’s fixed expenses would generally include the department manager’s salary.
If the department manager receives monthly compensation of $3,500, then the
monthly budget for this department would reflect this amount. Variable expenses
can be calculated as either a percentage of sales or as x number of dollars per unit
sales. For example, assume that the cost of food sold percentage is 35 percent and
that on average the cost of food sold is $3.50 per cover. If the food sales budget for
the period consists of 10,000 covers at $10 per cover, the cost of food sold forecast
would be $35,000, based on either of the following approaches:
Forecasted Sales × Food Cost % = Forecasted Cost of Food Sales
$100,000 × 35% = $35,000
Forecasted Covers × Est. Food Cost/Cover = Forecasted Cost of Food Sales

10,000 × $3.50 = $35,000
If food sales are expected to increase to $120,000 for the second month, then,
using the “percentage of sales” approach, the forecasted cost of food sold would
be $42,000, determined as follows:
$120,000 × 35% = $42,000
Overhead expenses, including service-center costs and fixed expenses, are
forecasted by members of the club’s management team other than the profit-center
managers. (“Service centers” are club departments that incur only costs, such as
the accounting department; “profit centers,” as indicated earlier, are club depart-
ments that generate revenue, such as the food department.) The head of each ser-
vice center will estimate the center’s expenses using historical expenses and pro-
jected increases. As mentioned earlier, the coordinator of the budget-preparation
process is often the club’s controller—he or she is the person who often forecasts
the fixed charges. The controller has the fixed-charges numbers readily available
or can fairly easily forecast amounts for inclusion in the budget.
Forecasting results of operations. The next step in the budget-preparation
process is the results-of-operations forecast. This part of the process is simply
mathematical: revenue less expenses equals results of operations. However, part
of the process is determining that the forecasted results of operations meets the
financial objective set by the board in step one of the budget process. Often the
initial draft of the budget fails to meet the board’s objective, so the initial forecasts
must be reviewed and revised until a budget acceptable to the board is prepared.
Presenting the budget. Finally, the operations budget must be “sold” to the
club’s board and committees. The presentation of the operating budget to the
board is the general manager’s opportunity to convince the board that the opera-
tions budget is the club’s best plan of action for the upcoming year.
Capital Budget
A club’s capital budget relates to the club’s building and equipment acquisition
plan. By its nature it should be part of a club’s strategic plan. Usually, management
proposes capital acquisitions and presents them to the board for approval, since
they affect the club over several years and often require large cash outlays or the
borrowing of funds on a long-term basis.
Virtually all capital projects should be cost-justified before approval. Possible
exceptions would include capital expenditures required by law, such as changes
474 Chapter 11
mandated by the Americans with Disabilities Act, or perhaps expenditures for

replacement of equipment. Even these expenditures can be cost-justified, but since
they are “forced,” some clubs choose to simply do the projects without undertak-
ing rigorous cost justification.
The critical numbers in capital budgeting are cash flows. There is the initial
cost of the project, then there are future cash outflows and often cash inflows
related to the capital project. In order for a proposed capital project to be cost-
justified, the future savings or incremental cash inflows must outweigh the cash
outflow necessary to complete the project.
The two capital-budgeting approaches presented in the following sections are
the payback approach and the net present value approach.
Payback Approach. The payback approach is considered simpler than the net
present value approach and is used to determine how many years it will take for a
capital project to pay for itself. The calculation of the payback period is as follows:
Project Cost
Payback Period = Annual Cash Flow
A project is considered acceptable if the payback period of the proposed proj-

ect is equal to or less than the payback objective established by the club’s board.
To illustrate the payback approach, assume that club managers want to pur-
chase a new computer system at a cost of $20,000. Further assume that future cash
expenditures related to this system total $5,000 per year, and that the proposed
system’s value to the club is worth $15,000 per year. Further, assume this computer
system is deemed to have a useful life of five years, after which it is considered to
be worthless due to expected technological advancements. The payback period for
the proposed computer system is calculated as follows:
$20,000*
Payback Period = $10,000**
= 2 years
* Cost of computer system

** Annual increased cash flow less annual
increased cash outflow from the project:
$15,000 − $5,000 = $10,000
If the club’s board sets a payback objective of two years or less, this proposed
capital project would be acceptable.
Net Present Value Approach. An alternative and more sophisticated capital-
budgeting model is called net present value (NPV). The NPV approach also con-
siders project cash flows.
Prior to discussing the NPV approach, we need to consider how future cash
flows are discounted. This “time value of money” concept can best be explained
by using a couple of simple examples. First, consider whether you would rather
receive $100 today or $100 one year from today. A wise person would quickly take
the $100 today. Why? When invested at 5 percent annual interest, the $100 would
earn $5 in a year, so the $100 today would be worth $105 one year from now and
the person would be $5 ahead.
The second example focuses on present value. We must determine what
amount today (present value) will yield a future amount, given x percent as the
annual interest rate. To illustrate this process, assume that you would like to have
$100 a year from today. What amount would you have to invest today in order to
receive $100 a year from now?
The formula for determining present value is as follows:
P = F ( 1 1+ i )
Where: “P” stands for present value, “F” stands for future value, and “i” stands
for annual interest rate
Using this formula, the present value today of $100 a year from now, given an
annual interest rate of 10 percent, is $90.91, determined as follows:
P = $100 ( 1.10
1
)
P = $90.01
To verify this present-value calculation, simply multiply the present value

by the interest rate to determine the interest earned. The present value plus the
interest earned must equal the future value. For our present example, this is deter-
mined as follows:
$90.91 + $90.91(.10) = $100
Now back to the net present value approach. To determine the NPV of a pro-
posed capital project, we compare the present value of future cash flows from the
project to the initial cost of the project. If the difference between the cost of the
project and the present value of future cash inflows or cash savings is zero or posi-
tive, then the proposed project should be accepted. Remember, future cash flows
are discounted at the interest rate the club would have to pay if it had to finance
the proposed capital project.
To illustrate the NPV approach, let’s go back to the example used earlier to
illustrate the payback approach—the purchase of a new computer system for
$20,000:
Facts:
Cost of proposed computer system $20,000
Future net annual cash inflows $10,000
Relevant interest rate 10%
Expected life of project 5 years
Exhibit 10 contains the computations to yield the net present value of $17,907.
Since the net present value is positive, the proposed project should be accepted.
An alternative to calculating the net present value manually is the use of Excel (see
Exhibit 11). The mathematical function “= npv (k, cash inflows) + cost” will yield
the net present value.
476 Chapter 11
Exhibit 10 Net Present Value Approach
NET PRESENT VALUE APPROACH
Net Cash Discount Present

Year Inflow Factors* Value
1 $10,000 .9091 $9,091
2 10,000 .8264 8,264
3 10,000 .7513 7,513
4 10,000 .6830 6,830
5 10,000 .6209 6,209
Present Value of Cash Inflows $37,907

Less: Cost of Computer System 20,000
Net Present Value $17,907
* The discount factors can be taken from a standard discount-factor table. Alterna-
tively, they could be computed based on the formula 1/(1 + i)n where i = interest rate
and n = year of cash flows.
The general managers of most clubs will find their financial experts knowl-
edgeable about these capital-budgeting models. Since many club board members
have a financial background and understand these models, a general manager
may be most convincing when cost-justifying proposed projects for the club using
these fairly sophisticated capital-budgeting approaches.
Financing Capital Projects. Many options exist for financing capital projects. The
best approach for a particular club depends on the club’s resources and the desires
of its members. In other words, the best approach will differ from club to club.
An ideal way to finance capital projects is to invest excess funds generated
by the club’s operations until the desired funds are realized to purchase the pro-
posed project for cash. This method means funds will not have to be borrowed nor
members be assessed for the desired funds. This approach is reasonable for many
clubs when the capital projects are relatively small. However, very few clubs are
able to finance large projects this way, because they simply are unable to set aside
sufficient funds over an extended period of time.
A second approach is to fund the capital project by borrowing the funds from
a financial institution. Generally, a financial institution will only finance a percent-
age of the project; the remainder must be funded by the club. Debt financing is
generally easy if the club has maintained a very good to excellent credit rating. The
major drawback is that the funds must be repaid with interest on a periodic basis.
This cash flow requirement must be considered when the club prepares its cash
budget. The amount it borrows often depends on its ability to repay the loan. For
clubs that are profit-oriented from a tax perspective, the interest paid on borrowed
Exhibit 11 Calculating Net Present Value Using Excel
funds is deductible for tax purposes, so the real cost of borrowing is reduced by
the related tax savings.
A third approach is to raise the required funds through a capital assessment
drive. This approach involves billing club members for the capital assessment. This
process can be facilitated by billing members a capital improvement assessment
each month along with the monthly dues billing. The assessments are invested in
a capital improvement fund to finance the capital project approved by the club’s
board. The benefit of this approach is that, unlike the borrowing option, it does
not require repayment, and, when planned over a long period of time, it may be
“painless” to the members, because the monthly assessments may be fairly small.
A combination of the above approaches is often used for major projects, unless
the club has an extremely future-oriented board that plans far in advance and has
478 Chapter 11
Exhibit 12 Sample Cash Budget for the Fictional Greenwood Country Club
CASH BUDGET
Greenwood Country Club
For the month of June 20X1
Estimated Cash at June 1, 20X1 $ 15,500

Estimated Cash Receipts:
Cash sales $ 4,000
Collection of accounts receivable 158,000
Proceeds from sale of equipment 2,000 164,000
Estimated Available Cash 179,500
Estimated Cash Disbursements:
Labor expenses 65,000
Fringe benefit expenses 10,000
Payroll taxes 10,000
Cost of food and beverages 23,000
Golf course supplies 15,000
Energy costs 6,000
Mortgage payment 7,000
Insurance premium 2,000
Property taxes 4,000
Other 15,000 157,000
Estimated Cash at June 30, 20X1 22,500
Minimum Cash Balance 15,000
Cash Overage $ 7,500
planned for capital projects through capital assessment drives or internally gener-
ated funds.
Cash Budget
Statements of cash flows are financial statements that report a club’s historical
receipt and disbursement of cash. Cash budgets, on the other hand, are forecasts of
cash receipts and disbursements. The major purpose of preparing a cash budget is
to enable the club’s general manager to effectively manage the club’s cash flow. A
properly prepared cash budget will alert managers to times when they will need
to borrow funds and times when they will have excess funds to invest.
Exhibit 12 is a simplified sample cash budget. This budget was prepared for a
single month; however, realistically, cash budgets should be prepared for several
months and possibly years in the future. The first element shown on the sample
cash budget is estimated cash at the beginning of the month. The “estimated cash
receipts” section reflects the club’s major sources of cash—in this case, cash sales,
collection of accounts receivable, and proceeds from the sale of equipment. The
sum of estimated cash at the beginning of the month and forecasted cash receipts
equals estimated available cash.
“Estimated cash disbursements” includes a detailed list of cash outflows. The
amount of detail should be based on the desires of the user. A given general man-
ager or controller may desire only ten to twelve lines of expenditures, while others
may desire much more detailed reporting.
The sum of estimated cash disbursements is subtracted from the estimated
available cash to equal the estimated cash balance at the end of the month. A mini-
mum cash balance (this is simply a target set by the general manager) follows the
estimated cash balance and acts as a buffer in case there is a cash shortfall for the
period. The difference between the estimated cash balance and the minimum cash
balance is either a cash shortage or a cash overage. If a cash shortage is forecasted,
plans must be made to cover the shortfall. A projected cash overage is a short-term
investment opportunity.
Federal Income Taxes and Clubs

A club’s general manager is generally charged by the board with ensuring that
the club complies with federal income tax laws. Nonprofit clubs are exempt from
federal income taxes if they meet five provisions from the Internal Revenue Code,
section 501(c)(7), as follows:
1. The organization is a club.
2. The club is organized for pleasure, recreation, or other nonprofit purposes.
3. Virtually all club activities must be for purposes described in provision 2.
4. No part of the club’s profits may benefit the members or any private share-
holder.
5. At no time during the tax year can the club’s charter, bylaws, or other govern-
ing instrument contain a provision that discriminates against any person on
the basis of race, color, or religion.
A nonprofit club must file an annual information Form 990 with the Internal
Revenue Service.
Income unrelated to the purpose constituting the basis for the club’s federal
income tax exemption is referred to as “unrelated business income.” This income
is taxable at regular corporate tax rates. Unrelated business income of a tax-exempt
club includes all gross unrelated business income, less all allowable deductions
directly related to producing the gross income for unrelated purposes of the club.
For example, assume a club allows a nonmember to use the club for a party. The
nonmember is charged $5,000 and related expenses are $3,000. In this example the
unrelated business income is $2,000 and the club is taxed on $2,000, not $5,000.
The determination of related expenses is often not so simple. If club facili-
ties or personnel serve to produce both exempt and unrelated business income,
then expenses, including depreciation, must be reasonably allocated between the
two uses. The allocation approaches acceptable to the Internal Revenue Service
are beyond the scope of this book, but often-tried allocation approaches based on
gross incomes of exempt and unrelated business have generally not been accepted
by the IRS.
480 Chapter 11
Nonmembers who use the club’s facilities may be assumed to be guests of

members in certain circumstances, and thus income earned from these individu-
als is not subject to federal income taxes. The IRS guidelines provide that when a
group of eight or fewer people, including at least one person who is a club mem-
ber, uses club facilities, the nonmembers are considered to be guests of the mem-
ber. This rule applies only if the member or the member’s employer pays the club
directly for such use. In addition, if 75 percent or more of a group exceeding eight
people using club facilities are members, and the members or their employers pay
the bill directly to the club, then all nonmembers in the group are considered to
be guests of the members. The club must maintain adequate records to substanti-
ate that nonmembers are treated as guests of members in the two situations just
described.
Endnotes
1. Raymond Schmidgall, Jack Ninemeier, and Jeffrey Elsworth, “Financial Information
Presented at Private Club Board Meetings,” Club Management, April 2005.
2. Raymond S. Schmidgall and Agnes DeFranco, “2010 Financial Performance in the
Club Industry,” Journal of Hospitality Financial Management, vol. 19, iss. 2 (2011).
Key Terms
activity ratio—A ratio designed to indicate management’s effectiveness in using
the club’s resources.
horizontal analysis—Comparing financial statements for two or more accounting
periods in terms of both absolute and relative variances for each line item.
liquidity ratio—A ratio designed to indicate a club’s ability to pay its bills in the
short run.
operating ratio—A ratio designed to measure the club’s operating efficiency.
profitability ratio—A ratio designed to indicate the club’s degree of profitability.
solvency ratio—A ratio designed to indicate a club’s long-term financial viability.
vertical analysis—Analyzing individual financial statements by reducing finan-
cial information to percentages of a whole; for example, expressing statement-of-
financial-position assets as percentages of total assets.
Review Questions
1. What are the major financial statements clubs use?
2. What are some limitations of the statement of financial position?
3. What are the major sections of a country club’s statement of activities?
4. The statement of cash flows is divided into which two major sections?
5. What is a horizontal analysis? a vertical analysis?
6. What are some of the major financial ratios used by clubs to analyze opera-
tions?
7. How does preparing an operations budget benefit club managers?
8. How is an operations budget typically prepared at a club?
9. What are two approaches to capital budgeting?
10. How can clubs finance capital projects?
11. Why are cash budgets useful to club managers?
12. What provisions must nonprofit clubs meet to be exempt from federal income
taxes?
Additional Reading
Schmidgall, Raymond S. Hospitality Industry Managerial Accounting, Seventh Edi-
tion. Lansing, Mich.: American Hotel & Lodging Educational Institute, 2010.
Uniform System of Financial Reporting for Clubs, Sixth Revised Edition. Lansing,
Mich.: American Hotel & Lodging Educational Institute, 2003.
Internet Sites
Hospitality Accounting Organizations

Hospitality Industry Technology Hospitality Financial and Technology
Exposition and Conference Professionals
www.hitec.org www.hftp.org/
Hotel Property Management Systems with Accounting Applications

CMS Hospitality Financial MicroSystems, Inc. Client
www.cmshosp.com.au Ledger System
http://info.clientledgersystem.com/
Execu/Tech Systems, Incorporated clshome.htm
www.execu-tech.com
MICROS Systems, Inc.
www.micros.com
Food and Beverage Systems with Accounting Applications

CMS Hospitality Comtrex Systems Corporation
www.cmshosp.com.au www.comtrex.com
482 Chapter 11
Comus Restaurant Systems Instill Corporation

www.comus.com www.instill.com
Eatec Corporation Micros Systems, Inc.
www.eatec.com www.micros.com
Financial MicroSystems, Inc., Client RMS-TOUCH
Ledger System www.rmstouch.com
http://info.clientledgersystem.com/
clshome.htm System Concepts, Inc.
www.foodtrak.com
Case Study
Jason Terwiliger is a new member of the finance committee of the Windshore
Country Club, a 1,200-member club on the outskirts of a city of about 400,000.
Jason is also the owner of a successful upscale restaurant in the city. After looking
at the club’s budget for next year and examining last year’s financial figures from
the club’s food and beverage outlets, Jason approached Steve Buell, the general
manager of the club.
“Steve, as you know, the finance committee has been looking at various areas
of the club, trying to find ways to improve our bottom line,” Jason began. “Because
of my restaurant background, I concentrated on our food and beverage outlets. I
have to tell you I was a little disappointed at what I found.”
“I’m always looking for ideas to improve our operations, Mr. Terwiliger,”
Steve said. “Have you ever been through our kitchen and storeroom area? There’s
a lot that goes into running the club’s food and beverage outlets that may be differ-
ent from what you’re used to at your restaurant. We can talk about your concerns
as we walk.”
“Sounds good,” Jason said. “I want to learn as much as possible before I make
any recommendations to the committee.”
The two men started toward the kitchen. As they walked, Steve nodded to the
food and beverage outlets they passed. “I’m sure you’re familiar with the club’s
F&B outlets. Each one caters to a different audience and has a different theme. One
is our upscale main dining room, another is for family dining, the third is fast food,
and the last is a grill. But,” Steve smiled, “you may not have known that the food
for all four outlets comes from the same kitchen.”
Jason shook his head as they entered the kitchen. “That’s a big difference
between the club and my restaurant. We both have one kitchen, but at my place
there’s only one outlet and one theme.”
Steve nodded. “We have different customer bases, different market sizes, and
different operating philosophies, too.”
“I think that’s part of the problem—all the differences,” Jason said. “For exam-
ple, the food costs at the club are running at 42 percent; I’m running 28 percent at
my restaurant. That’s a huge difference!”
“I agree,” Steve said. He introduced Jason to Pierre Robichaud, the club’s chef.
Chef Robichaud gave each of them a sample of a new dessert he was preparing.
They chatted with the chef for a few minutes and looked over the kitchen’s new
layout, designed to streamline the food-preparation process. After thanking Chef
Robichaud, they moved on to look at the club’s food-storage areas before returning
to Steve’s office.
“What other concerns do you have about our F&B operations, besides the
food costs?” Steve sat at his desk and took out a pen and paper to take notes.
“Well, there are a number of things I think we could change to make the oper-
ations more profitable,” Jason said as he sat down. “For example, what about that
duck entrée Chef Robichaud told us about? It takes all day to prepare it, so he
starts in the morning and prepares six ducks every day, just in case he gets orders
for them. But he usually has to throw away at least some if not all of them. It’s an
expensive waste.”
Steve wrote down “food waste on specialty dishes” to start his list. “That’s
certainly a problem,” Steve said aloud.
“Also,” Jason continued, “the club only uses fresh ingredients. I’m in favor of
using fresh ingredients, too, but some frozen items provide almost the same qual-
ity and can save the club quite a bit, especially if we buy in bulk.”
Steve added “quality and quantity of ingredients” to the list.
“And speaking of ingredients,” Jason said, “I noticed that we keep a huge
variety of ingredients in stock, which is costly. For example, on our tour I saw that
we still keep the ingredients for Veal Picante on hand, even though Veal Picante
isn’t on the menu anymore. That’s what happens when we let members order items
that aren’t on the menu. And there are items listed on the menu that are rarely, if
ever, ordered. The club’s F&B sales volumes fluctuate wildly, too. The numbers
fluctuated from a low of $33,000 per month to a high of $135,000 last year. The
sales volumes at my restaurant are much more consistent. Maybe the club should
raise prices to offset some of the losses and look for ways to make sales volumes
more consistent.”
“Mr. Terwiliger, you bring up a lot of valid points,” Steve said.
1. What are Jason Terwiliger’s main concerns?
2. How should Steve respond to Jason’s concerns?
Problems
Problem 1
The Spartan Club provides selected information to you as follows:
484 Chapter 11
Current assets $250,000

Property and equipment $1,500,000
Total sales $2,000,000
Profit margin 5%
Current ratio 1.5 to 1
Return on members’ equity 10%
Accounts receivable turnover 20 times
Assume the following:
1. The accounts receivable turnover is based on total sales.
2. Total assets are equal to current assets plus property and equipment.
3. The balances of statement-of-financial-position accounts at the beginning of
the year are the same as at the end of the year.
Required:
Determine the following:
1. Total current liabilities
2. Results of operations
3. Total members’ equity
4. Long-term debt
5. Accounts receivable at the end of the year
6. Debt-equity ratio
Problem 2
Golden Ridge Golf Course has decided to erect a fence to keep intruders off its
golf course. The estimated cost of the fence is $30,000, and annual maintenance is
expected to be $2,000. The fence is expected to have a useful life of twenty years.
The value of the benefits is expected to be as follows:
•• Eliminating vandalism to the course, which is costing an estimated $6,000
annually.
•• Increased play. It is estimated that partial rounds are played by golfers play-
ing on the back nine without paying. The estimated annual benefit, net of any
increased costs, related to more rounds of golf is $4,000.
Required:
Determine the payback of this project.
System Basics 1. Describe how automated information
Electronic Data Processing systems are integrated into private
Computer Hardware clubs. (pp. 487–491)
Generic Software 2. Identify the benefits and uses of
Word Processing Software generic software, accounting systems,
Spreadsheet Software and club software applications.
Database Software (pp. 491–505)
Accounting Systems
Club Software Applications 3. Explain how clubs can implement
Prospect Recruitment system interfacing and upgrades.
POS Systems (pp. 505–514)
Event Management 4. Summarize club website issues and
Golf Course Management describe Internet-based networks.
System Interfacing (pp. 514–522)
Interface Standards
System Upgrades
Appoint a Project Team
Identify Information Needs
Establish Requirements
Request Vendor Proposals
Host Site Surveys
Evaluate Proposals
Schedule Product Demonstrations
Club Websites
E-Mail Messaging
The World Wide Web
Club Website Considerations
Internet Protocols
Internet-Based Networks
Intranets
12
Club Technology
This chapter was written and contributed by Michael L. Kasavana,
Ph.D., NCE5, CHTP, NAMA Endowed Professor,
Michigan State University, East Lansing, Michigan.
D uring the past decade, technology has dramatically changed the information
club managers use to plan, coordinate, control, and evaluate club operations.
Every business collects and analyzes data about its operations. While all busi-
nesses use some type of information system, an automated information system
enables managers to achieve their goals more easily. An automated system stream-
lines the process of collecting and recording data and expands the ways in which
information can be organized and reported. In addition, the system speeds up the
process by which useful information is made available to decision-makers. With
an automated information system, the club’s general manager, the management
team, the board of directors, and club committees can obtain timely information
formatted as reports tailored to their specific needs.
While the degree of automation varies tremendously across the club indus-
try, software programs exist for virtually every area of club operations. Basic
accounting functions and point-of-sale systems in food and beverage outlets were
the first areas within clubs to benefit from computer systems. Today, catering and
special-event software programs help club managers with each step in planning
and executing banquets, weddings, and other celebrations. Generic and custom-
ized database management and spreadsheet programs assist in managing recre-
ational activities. Specialized software for golf operations, for example, not only
schedules tee times but also tracks member usage and provides daily reports that
golf course managers can use to evaluate and improve operations.
From the moment prospective members contact a club, to their eventual par-
ticipation in club activities, an automated information system records, monitors,
and charts significant member/club transactions. The key to success for many club
applications is the degree to which the information system is transparent to club
members. In most clubs, members expect to benefit from an investment in club
automation; they simply do not want nuisances and annoyances from cumber-
some procedures that sacrifice personal service. (This is often referred to as “high
tech, high touch.”) For example, a club’s management team might analyze incom-
ing telephone calls and consider purchasing a voice-mail messaging system as a
cost-effective alternative to live telephone-attendant service. While automating the
club’s incoming telephone traffic may reduce operating costs, it tends to fail the
club’s transparency test:
487
488 Chapter 12
“Hello. Thank you for calling the Casa Vana Country Club. For hours of opera-
tion, press one; for dining-room reservations, press two; for the pro shop, press
three; for membership account information, press four; for new-member informa-
tion, press five. For all other requests, please stay on the line and your call will be
answered in the order it was received.”
Instead of a warm, friendly greeting, every caller experiences an identical rou-
tine generated by a high-tech “reception.” While cost savings and increased opera-
tional efficiencies are important considerations in any automation effort, whether
or not club managers have successfully automated functions within their club is
typically measured by member acceptance and satisfaction.
System Basics
In order to use technology, club managers do not need to learn about silicon chips
or the intricacies of electronic circuitry; they only need to learn the commands
necessary to instruct the system to carry out desired functions. However, if club
managers also have some basic knowledge about the essential operations of an
automated system, they will be better equipped to use technology as an effective
tool in managing the information needs of the club. A basic understanding of the
way information systems operate also enables club managers to select technology
that best meets the information needs of their operations, or to wisely expand the
data-processing functions of currently installed technology. This section defines
basic principles of electronic data processing, focusing on the advantages of an
automated information system for clubs. The section ends with a description of
the fundamental hardware components of an automated system and the types of
hardware configurations often found in private clubs.
Electronic Data Processing

Every day, club managers are bombarded with facts and figures about the results
of club operations. However, these individual pieces of data are relatively mean-
ingless until they undergo a process that organizes or manipulates them into use-
ful information. Data processing involves transforming raw facts and isolated fig-
ures as input (data) into timely, accurate, and useful output (information).
Information, the result of data processing, is clearly one of the most valu-
able management resources. Information can increase a club manager’s knowl-
edge regarding membership, services, labor, finance, and other areas of concern.
For example, the results of a member dining survey can provide managers with
important information about the level of member satisfaction with respect to the
club’s food and beverage outlets. Such information may help managers develop
strategies that lead to improved food and beverage operations.
Information is the key to effective decision-making. Relevant, timely, and accu-
rate information enables club managers not only to do things right, but also to know
if they are doing the right things. An efficiently designed electronic data-processing
system provides club managers with rapid access to the information they need in
order to make timely and effective decisions. In addition, after a decision is made,
information processed via an automated system can provide club managers with
Club Technology 489
feedback on the appropriateness and member acceptance of the decision and may
even indicate new areas of concern necessitating corrective action.
The speed, accuracy, and efficiency required for an information system to be
ideally effective are best achieved through electronic data processing (EDP). A
computer is a managerial tool capable of processing large quantities of data much
more quickly and accurately than any other data-processing method. Computers
can efficiently perform arithmetic operations such as addition, subtraction, multi-
plication, and division and can execute logical functions, such as assembling, rank-
ing, and sorting data. In addition, computers are capable of storing and retrieving
large amounts of data and information and thereby allow managers to exercise
control over procedures that might otherwise be overlooked.
An electronic data-processing system also brings efficiency to daily opera-
tions, enabling club employees to respond quickly to management and member
needs. For example, club members phoning the club to inquire about their cur-
rent account balance can be assisted during the call by an accounting depart-
ment employee using a computer capable of accessing account information elec-
tronically from the club member’s file. In this way, computer systems minimize
throughput—the processing time it takes from data input to information output.
Well-designed systems also streamline information output, generating only select
reports as requested by those who will actually use the information.
Another advantage of an electronic data-processing system is that it reduces
the number of times the same piece of data is handled or re-handled. Consider the
difference between a manual accounting process and an automated system. In a
manual process, invoice amounts must first be recorded in a journal. The amounts
are then carried over to a ledger and amounts recorded in the ledger are then
used to prepare financial records. During each of these steps, it is possible for an
accounting employee to make any number of errors, such as transposing digits,
calculating a total incorrectly, overlooking an entry, and so on. In an electronic
data-processing system, the invoice amount need only be entered once. The pro-
gram is designed to automatically prepare the proper journal, ledger, and financial
recordings and can then index the amounts and apply them wherever needed. If
an amount is entered incorrectly, but the mistake is identified and reversed, the
correction can automatically flow from the journal to all of the subsequent finan-
cial records.
Computer Hardware
The physical equipment of a computer system is called hardware. Computer hard-
ware is visible, movable, and easy to identify. Regardless of type, every computer
system must have three hardware components: an input/output (I/O) unit, a cen-
tral processing unit, and an external storage device.
An I/O unit allows the user to interact with the computer system. The user can
input data by using a keyboard, touchscreen, stylus, or mouse and receive output
on a monitor or through a printer. The most common I/O unit in the club industry
is the cathode ray tube (CRT) unit (a television-like video screen or monitor) with
a keyboard that is similar to a typewriter keyboard. Data entered through the key-
board can be displayed on the monitor. The user edits and verifies the on-screen
490 Chapter 12
input before sending it for processing. Other types of club I/O equipment include
point-of-sale terminals, touchscreen devices, and various types of printers.
The central processing unit (CPU) is the control center of the computer sys-
tem. Inside are the circuits and mechanisms that process data, store information,
and send instructions to the other components of the system. All input entering
the system from an input device is processed by the CPU before it is sent to the
internal memory, an output device, or an external storage device.
An external storage device, also referred to as secondary memory or a mass
storage unit, retains data and computer programs that can be accessed by the CPU.
Such devices include magnetic tapes, floppy disks, CDs, DVDs, floptical disks, zip
disks, USB memory sticks, and hard drives. In some computer systems, the hard
drive is internally mounted inside the casing of the computer.
Hardware Configurations. A computer system’s hardware components and their
design and layout throughout a club are referred to as a hardware configuration.
The club’s size and the number of departments needing access to the system are
significant factors club managers should keep in mind when selecting an appro-
priate network of hardware components. A very small club may find that a single
workstation hosted by a personal computer (PC) is sufficient to meet the needs of a
limited number of users. This workstation serves as the complete system and con-
tains I/O units, a CPU, and external storage capability. Other clubs may determine
they have need for a number of user groups from different departments within the
club, all of which need access to the system. These clubs can avoid unnecessarily
spending funds on equipment by selecting a network configuration of hardware
components that best meets their needs. In many cases, it is possible for users to
share output devices (such as printers) as well as the internal memory and pro-
cessing capability of a central processing unit or networked file server.
The major differences among hardware configurations are speed, multiple
user functionality, and cost. The CPU tends to be among the most expensive and
critical components of the system; the more CPUs a network requires, the greater
the overall system cost. The tradeoff in configuring multiple CPUs, however, is an
efficient network design that enables high-speed processing between the CPUs
and I/O devices.
A local area network (LAN) is a configuration of workstations that enables
users to share data, programs, and output devices (such as printers). Data sharing
facilitates system-wide communications, and program sharing enables users to
access infrequently used programs without the loss of speed or memory capacity
that would result if those programs were installed on their machines. From an eco-
nomic perspective, device sharing is perhaps the most important benefit derived
from networking. With a LAN design, expensive peripheral devices, such as color
laser printers or high-capacity storage devices, are available to all workstations
within the network.
While there are many different types of LANs, one type of LAN, called a
client-server network, links a single powerful computer (referred to as a file server
or simply the server) to numerous (a handful, dozens, or even hundreds) of other
computers (called the clients). Clients access a variety of programs stored on the
server and draw upon the server’s processing power and sophisticated software
Club Technology 491
Exhibit 1 Local Area Network (LAN) Diagram
to perform tasks more quickly and more efficiently than if the system operated in
a stand-alone design. For example, the transfer of sales data from a food and bev-
erage point-of-sale (POS) system to a club-management system’s LAN allows for
detailed analysis of the data without affecting the ongoing operation or speed of
the POS system. Timely management reports can be processed without disrupting
the power and quality of service to members dining throughout the club. Exhibit
1 diagrams the components of a typical LAN.
Generic Software
The hardware of an automated system does nothing by itself. In order for hardware
components to operate, they must have a set of instructions to follow. Instructions
that command a computer system to perform useful tasks are called software.
Application software is a term for computer programs designed for specific
uses, such as word processing, electronic spreadsheet analysis, and database man-
agement. Many of these types of applications are purchased separately from the
492 Chapter 12
hardware components of an automated system and are usually available at retail

computer outlets, from on-line suppliers, or from vendors of club-management
systems. Such software is usually called generic software.
When a club plans to automate its information system, application software
should be selected before the club chooses system hardware components. Club
managers must determine what functions or tasks they want the automated infor-
mation system to perform, then identify which application software will best meet
those needs. This will in turn determine the hardware requirements.
Some software programs perform very specific applications, while others
can be used to perform a variety of tasks. For example, a club manager can pur-
chase a software program designed specifically for menu engineering. This type
of software performs all of the necessary calculations involved in menu analysis
and generates a series of reports. Since this software has one specific purpose, it
requires no programming—only data entry—by the user. The user simply inputs
the appropriate data and the program completes the analysis. Other types of appli-
cation software are less task-specific. For example, generic spreadsheet software
found in most retail outlets can be used for a number of applications, but the user
must create the appropriate documents and spreadsheets that will accomplish the
various tasks.
Word Processing Software

Word processing software offers an electronic means of writing, editing, storing,
and printing textual material. Special-function keys and peripheral devices (such
as mouse, keyboard, stylus, touchscreen, and others) permit the user to move
words, phrases, paragraphs, or even entire pages of material from one point in
a document to another. Many word processing packages include special features
that allow the user to tailor a document’s appearance to meet specific needs. Word
processing software may also enable desktop publishing capabilities, including
graphic design and specialty formatting applications. Using sophisticated generic
word processing programs for desktop publishing enables club staff members to
create, develop, edit, and produce an assortment of club documents in-house on
the premises. Desktop publishing can be used to create menus, promotional mate-
rials, advertising copy, employment applications, training manuals, newsletters,
work schedules, vacation calendars, and other printed matter, including a variety
of web-hosted documents.
Desktop publishing can significantly reduce the expenses associated with
outside production of printed and web-hosted materials. Perhaps one of the most
important advantages of desktop publishing is that it allows for content changes
up to the time of final printing. Since there are no outside vendors involved, the
time required for the publishing cycle can be significantly reduced. This can be
especially useful in producing timely club newsletters, menu updates, and club-
house directories. In-house staff can create professional-quality newsletters at a
reasonable cost and within a production timetable that meets the club’s needs
rather than depend on the schedule of outside printing or design firms.
Another popular use of desktop publishing software in the club industry is
the design, layout, and printing of à la carte, banquet, and catering menus. Menu
Club Technology 493
Exhibit 2 Desktop Publishing Applications for Clubs
•• Menu layout design and printing

•• Tabletop displays
•• Advertisement copy
•• Newsletters
•• Fliers for special events and promotions
•• Discount coupons
•• Employee training materials
•• Internal reports
•• Posters and signs
•• Member mailings
•• Event calendars and charts
•• Custom forms
content can be changed daily, offering club managers the ability to present a
revised menu that reflects current market prices, daily specials, or new and experi-
mental menu items. The menu flexibility offered by in-house menu production is
especially useful in the design of special-event menus and promotions for private
parties, special events, and holiday service. Typical desktop publishing applica-
tions for clubs are listed in Exhibit 2.
Spreadsheet Software
One of the greatest advantages of an automated accounting system is that figures
need to be entered only once into the accounting records. These figures can then
be accessed by spreadsheet software: programs that prepare mathematically cor-
rect journals, ledgers, and financial statements. A spreadsheet program allows the
user to apply a model of the accountant’s traditional worksheet in the automated
system and view it on a monitor. The electronic model is essentially a blank page
of a worksheet, divided into rows and columns that intersect to form cells. Cells
can hold several types of data: alpha data (words), such as titles for the columns
and rows; numeric data, such as dollar amounts or figures; and formulas, which
instruct the computer to carry out specific calculations, such as adding all the
numbers in a certain range of cells and dividing by the contents of a single cell.
Spreadsheet software is not limited to bookkeeping functions; it is capable
of performing many tasks that may be extremely useful to club managers. For
example, the recalculation feature of a spreadsheet program offers club manag-
ers opportunities to explore “what if” possibilities. A spreadsheet could be cre-
ated to indicate trends in member food and beverage item preferences, pro shop
transactions, golf course traffic, and patterns or tendencies in other areas of club
494 Chapter 12
operations. Information that might normally take hours to calculate manually

takes only seconds when calculated electronically. Additionally, the data pro-
cessed by a spreadsheet program can be quickly output in easily interpreted visual
formats such as bar charts, line graphs, and pie charts. The speed and ease of
obtaining financial information increases a club manager’s ability to make timely
and informed decisions.
Database Software
Database software allows club managers to catalog and store information about
club operations, members, inventory, and financial or managerial decisions for
future use. A database, also referred to as a data warehouse, is a collection of
related facts and figures designed to serve a specific purpose. The structure of
the database provides a means of organizing related facts and figures and arrang-
ing them in ways that facilitate searching for data, updating data, and generating
accurate, timely, and useful reports for managers. Database management refers
to the design and organization of databases, as well as to how data are handled
within the computer system.
Think of a database system as an electronic file cabinet. The way information
is organized within a file cabinet will depend on the kind of information stored
and the particular needs of the user. File cabinets have separate file drawers. Each
file drawer contains separate file folders. The folders within each drawer contain
similar records of related information. Each record within a folder contains spe-
cific facts or figures. Exhibit 3 diagrams the similarity between a typical office file
cabinet and a database system. In the language of database software, the file cabi-
net is called the database, the drawers of the cabinet are called database files, the
folders within the drawers are called database records, and the detailed facts and
figures within the records are called database fields.
Club managers could use a generic database program to track membership
participation in special events held at the club, or track member participation in
regularly offered recreational activities. Similarly, data from other systems could
be imported to a database for further analysis. Searches through multiple data-
bases may reveal patterns, trends, and preferences of individual members that
could be useful in promoting future events or in filling enrollments for future rec-
reational activities. This technique is referred to as data mining. The value of a
database system is difficult to quantify since it has unlimited potential. Not only
does it save physical storage space, but, more importantly, it limits the number of
times that data must be handled (or rehandled) and ensures that all users of the
database are working with identical information.
Accounting Systems
Club accounting is a systematic process of collecting and reporting financial
information to help club managers make decisions and plans. Club accounting
software should be both modular and integrated. Modular software is a group
of related computer programs that can be purchased individually based on need.
Buying software components based on need can reduce the overall purchase price
Club Technology 495
Exhibit 3 Database Files, Records, and Fields
for an automated accounting system. The separation of accounting software into

modules—such as accounts payable, accounts receivable, and payroll—also sim-
plifies the division of labor associated with these functions. The user responsible
for accounts payable, for example, need only learn the accounts payable program
rather than a program designed to encompass an entire accounting system. Exhibit
4 lists typical club accounting modules. Integrated software is a package of com-
patible programs designed to work seamlessly together. Such software allows
for data and information sharing, which minimizes the time-consuming manual
transfer of figures from one program or file to another and reduces the possibil-
ity for error associated with this process. With an integrated software package
of accounting programs, posting a vendor invoice within the accounts payable
program produces a simultaneous posting in the general ledger program, thereby
eliminating the need for an additional manual entry. Similarly, a payroll program
would automatically transfer data to the general ledger and financial statement
programs simultaneously.
An automated club accounting system has two primary objectives: to pro-
vide effective internal control and to produce accurate financial reports. The inter-
nal control provided by an automated accounting system includes protecting the
496 Chapter 12
Exhibit 4 Typical Club Accounting Modules
Accounts Receivable Module
Functions: Maintains account balances

Processes billings
Monitors collection activities
Produces audit report listing all accounts receivable transactions
Major Files: Member master file
Accounts aging file
Accounts Payable Module
Functions: Posts vendor invoices

Monitors vendor payment discount periods
Determines amounts due
Produces checks for payment
Facilitates reconciliation of cleared checks
Generates management reports
Major Files: Vendor master file
Invoice register file
Check register file
Payroll Module
Functions: Calculates gross and net pay for salaried and hourly employees
Prints paychecks
Produces payroll tax registers and reports
Prepares labor cost reports for management
Major Files: Employee master file
Payroll register file
Paycheck register file
club against omissions in recordation and documentation, inaccuracies within

the accounting process, and dishonest employees. An effective accounting system
must be capable of detecting such problems and, as much as possible, identify
their source.
Financial statements are among a club manager’s most important sources
of information. A club accounting system must be designed to generate accurate
reports in a minimal amount of time for both internal and external use. Outdated
or inaccurate financial reports serve little purpose and are in fact dangerous, as
they misinform users and can lead them to make poor decisions. Using informa-
tion technology parameters to streamline report formats will ensure that the most
important information is clearly visible on a system-generated report.
Club Technology 497
Exhibit 5 Jonas Club Management Software Report
Club Software Applications

While many managers often think of a club system as consisting primarily of
member tracking and general ledger accounting, there are more modules present
in a typical system configuration. In general, club technology can be classified as
front-office and back-office applications. Front-office applications deal with those
portions of the club with which the membership comes in direct contact; back-
office applications monitor those parts of the club with which the membership
does not have direct contact. While the number of available front-office modules
varies widely among system vendors, typical application modules include:
•• Member tracking.
•• Point of sale.
•• Event management.
•• Lodging accommodations (optional).
Member tracking encompasses member demographics, specifications, state-
ments, and related member profile information. Point-of-sale applications are
designed to provide controls in the areas of revenue, sales, cost, settlement, and
authorization for club operations. Exhibit 5 contains an example of a report gen-
erated by the Jonas Club Management software system’s POS component. Event
management involves function-room scheduling as well as catering/banquet
operation oversight. Banquet and catering applications typically involve special
staging, menu planning, quantity production, and pricing. Lodging operation
498 Chapter 12
applications are reserved for clubs offering overnight accommodations and may
include reservations, registration, member-accounting, and housekeeping mod-
ules. Typically, overnight guest receivables are transferred to a sponsoring mem-
ber’s account for settlement.
Similarly, club management systems can vary in the number of back-office
software applications supported. Back-office software modules typically include:
•• Accounts receivable.
•• Accounts payable.
•• Human resources/payroll accounting.
•• Inventory control.
•• Financial reporting.
General ledger accounting deals with monitoring and charting member trans-
actions, and typically focuses on accounts receivable and accounts payable. An
accounts receivable module monitors outstanding balances of member accounts
(also termed deferred payments), as well as the aging of accounts receivable.
An accounts payable module tracks purchases, creditor positions, and the club’s
banking status. Accounts payable activities normally consist of posting purveyor
invoices, determining amounts due, scheduling payments, and printing checks for
payment.
Human resource applications are concerned with employee records, perfor-
mance tracking, and payroll management. A payroll accounting module is impor-
tant, given complexities in processing time and attendance records, uniqueness of
employee benefits, and variable pay rates, withholdings, deductions, and required
payroll reporting. The payroll accounting module for a club may also monitor job
codes, employee meals, uniform credits, service charges (gratuities), related taxes,
and other data affecting net pay. Inventory control deals with ensuring a sufficient
quantity of supplies to satisfy projected levels of demand. Inventory control also
involves optimizing the money spent for goods in storage as well as maintaining
levels of par stock.
A financial reporting module involves the specification of a chart of accounts
and a systematic approach to recording financial transactions. Back-office reports
may include statements of financial position and statements of financial activities.
Many club software packages also are capable of generating flash reports, dash-
board reports, and executive information system functions. In addition, interval
reports of cash flow, fixed assets, and disbursements are also available. Fixed-asset
accounting provides club management with information related to depreciation of
assets. Exhibit 6 shows the executive dashboard financial view screen in the Jonas
Club Management software system.
Prospect Recruitment
Given the economic pressures often experienced by private clubs, the imple-
mentation of effective member-acquisition technology may address many issues
involved in ensuring the successful recruitment and conversion of prospective
members. Often there is a differentiation made between generic marketing and
Club Technology 499
Exhibit 6 Jonas Club Management Software Screen
private club marketing. Club marketing must be selective, discreet, focused, and
consistent with current member profiles and club practices. Is the club’s cur-
rent membership at an optimal level? What characteristics can be identified that
describe an “ideal” new member? Having the right mix of members is an impor-
tant consideration for any club. Although new-member campaigns often involve
basic sales management activities, traditionally clubs have relegated recruitment
efforts to the discretion of a membership director or membership committee chair.
During the past few years, application software capable of coordinating, monitor-
ing, and managing new-member campaigns has evolved to become an important
consideration in the marketplace.
PRM Software. Prospect relationship management is often defined as more of
a philosophical approach to membership marketing than an actual technology;
however, prospect relationship management (PRM) software exists that can play a
significant role in new-member recruitment. Regardless if prospective candidates
arise from current-member referrals, new-prospect mining, or a combination of
sources, PRM software is designed to coordinate and monitor the new-member-
acquisition process. Calendar synchronization helps provide a reliable set of mile-
stones, in a prioritized ranking, that can strengthen the effectiveness of a member-
ship campaign. By tracking candidate interactions with club representatives, PRM
software combines traditional sales marketing techniques with a specialized set of
500 Chapter 12
tools designed to solicit prospects, evaluate referrals, and guide membership con-
versions. Similar to software designed to facilitate member relationship manage-
ment, PRM software can help club managers evaluate the interest areas, spending
habits, and event preferences of prospective members, then organize this informa-
tion to enable club staff to personalize each aspect of the recruitment process. The
recruitment process often involves a series of planned events and interactions. The
ability to track and monitor these events and interactions, and identify inefficien-
cies (snags, hold-ups, or delays) is critical. From the moment a prospect is deemed
a qualified candidate through to member enlistment, the PRM software guides the
sequencing. The objective is to ensure that the membership director and commit-
tee members, and any other club representatives involved in the process, adhere
to the planned sequence of contacts and mailings. An efficient set of procedures
will minimize guesswork, strengthen forecasting, and provide a clear indication of
prospect status anywhere along the line.
Is PRM software worth its cost to the club? One way to measure the return
on the investment is to compare the cost of the software with the dues revenue
brought in by the new members that the software helped the club staff recruit.
Usually the benefits (the additional revenue) will easily outweigh the cost of the
software.
Membership Marketing. The basic objective of membership marketing is to apply
market research to the task of identifying prospective new members and interest-
ing them in the club. Two key areas of membership marketing are an external
market analysis and an internal membership analysis. An external market analysis
will help provide an overview of the potential of a membership campaign. An
internal membership analysis will help identify the characteristics of active mem-
bers that are desirable to see in candidates for membership. Analyzing the demo-
graphics of the current membership and knowing which characteristics of cur-
rent members are relevant for membership success can lead to the development
of a new-member target profile. Demographic and other member information can
be gleaned through member surveys, focus group research, and an analysis of
member transactions (data mining). The objective is to ensure that a sensitivity to
the makeup of the current club membership is maintained throughout the new-
member campaign.
The club’s marketing director should utilize member, club, and local area data
to accurately project changes to the club’s demographic makeup and the potential
number of members a club may have at different membership price levels in the
near future. Such information can help club managers project membership needs
for seven to ten years into the future.
Prospects and the Club’s Website. An important marketing tool to help a club
identify potential new members is an effective club website. The website should
have a public area that promotes the club’s image, facilities, and management,
highlighting the activities that can be enjoyed through club membership. The style
and presentation of this public area must be consistent with the club’s image. Since
club websites often solicit e-mail addresses from interested prospects, the process
of new-member recruitment can begin with an auto-response e-mail in reply to
Club Technology 501
visitor registration. An e-mail link for prospective members has been shown to be
a powerful tool in attracting new members.
POS Systems
The primary objectives of a point-of-sale (POS) system are to improve member
service, enhance staff productivity, and provide managers with better informa-
tion and increased control over revenue centers (food and beverage outlets, pro
shop operations, and others) throughout the club. A POS system should be rela-
tively easy to operate and should be capable of tracking sales, revenues, gratuities,
service charges, tax (if appropriate), and member account numbers. Club-specific
POS systems have been designed to incorporate these important factors.
Until recently, POS technology involved the purchase of proprietary vendor
systems, which usually included specialty hardware, unique operating systems,
and licensed software. Club management typically had to commit to an expensive
service contract and depend on a single source for replacement parts, training, or
program enhancements. The current POS generation, however, is characterized
by nonproprietary (industry-standard), PC–based hardware and numerous third-
party software providers. What does this mean for clubs? It means that clubs are
able to purchase software independently of hardware suppliers and can imple-
ment a POS system that more appropriately meets the club’s information needs.
With PC-based hardware being an industry-standard platform for POS sys-
tems, software developers are able to focus on increasing the user-friendliness
and intuitive nature of their programs. Club managers now have more software
options and fewer interface compatibility problems than in the past. The same
technology used to monitor and control POS transactions is capable of direct,
seamless integration with accounting, inventory control, desktop publishing, and
electronic settlement software. This can be especially appealing for clubs that auto-
matically transfer member POS charges to accounts-receivable files for deferred
billing. Additionally, a club POS system can transform raw transaction data into
useable information leading to more efficient and effective club operations.
Despite significant technological advancements, there can be challenges asso-
ciated with proper POS system implementation. These challenges include coordi-
nating kitchen production and dining-room service, ensuring data integrity from
order entry through settlement, selecting proper screen and file designs for opti-
mal operational efficiency, and securing quality vendor support. Exhibit 7 contains
a summary of POS generations.
Production and Service Coordination. The coordination of kitchen production
and dining-room service is often cited as a major obstacle to effective club POS
operations. POS terminals and remote workstation units (printers and display
units) do not solve coordination problems by themselves. For example, when serv-
ers enter one hot entrée and one cold entrée at a POS terminal for a table of two
persons, the server is confident that the orders will be relayed to the proper prepa-
ration areas of the kitchen. However, what the servers typically will not know is
the current workload status of each preparation area. Hot food may be left cooling
due to delays in the cold-food production area, or cold foods may be held too long
502 Chapter 12
Exhibit 7 POS Generations
Time Generation Orientation Technology

Pre-1960s First Cash transaction recording Manual
1960s Second Cashier reconciliation Mechanical
1970s Third Menu and meal monitoring Electronic
1980s Fourth Aggregated report management Automatic
1990s Fifth Enhanced operational controls Multitasking
2000s Sixth Network/remote access (ASP) Webcasting
waiting for hot items to be prepared. There simply is not an easy way to coordinate
these processes.
Some club food service operations overcome such problems by having
employees work as dispatchers, expediters, and runners. Dispatchers work in the
kitchen and orchestrate food production by identifying preparation lags, distrib-
uting orders in an efficient time sequence, and maintaining overall production
continuity. Expediters set up tables prior to service and tray food items during
service. Runners deliver complete orders to the appropriate serving station for
server presentation to members. In many clubs, a single employee may function
as a dispatcher, expediter, and runner. A promising software application, labeled
auto-coursing, involves the application of artificial intelligence to timing issues,
and directs items to production areas based on recognition of work flow captured
within the POS system.
Remote service bar printers or display units are another source of concern
with POS systems that rely on dispersed production areas. The bar menu key-
board on the POS terminal may not offer sufficient space for all drink items avail-
able or have enough modifier keys for servers to enter precise drink orders. The
use of price-look-up (PLU) keys is often used to complement the limited number
of preset (menu-item dedicated keys) on a POS keyboard. Exhibit 8 contains a
summary of important club POS features.
In order to ensure data integrity within a POS system (and thereby affirm the
reliability of the information the system provides), club managers must establish
data entry procedures and insist that they be consistently followed. Data integrity
is often affected by order-entry problems that arise because a POS system does not
support server editing functions at the time of input. Many systems do not print
all keystrokes or provide on-screen text review of orders prior to when they are
communicated to a production area. This makes it difficult for servers to correct
input errors until after the system processes the order and transmits the entered
menu items or, in some cases, an entire order. Without properly established proce-
dures, servers may create unique order-entry techniques, which will tend to con-
fuse kitchen personnel and invalidate many system reports.
To many club staff members, the most critical success factor in a POS system
is the order entry format and design. The number and nature of the preset keys,
Club Technology 503
Exhibit 8 Club POS System Features
•• Alphanumeric member account lookup

•• Membership privileges displayed
•• Membership restriction verification
•• Preferences displayed (seating/F&B)
•• Split check by member account
•• Message-waiting-for-member display
•• Special date and celebration tracking
•• Member signature capture/verification
•• Automatic application of discounts
•• Gift certificate programming
•• Frequent diner programming
•• Menu item prep and recipes
•• Guest-of-member tracking
•• Member banquet/catering functionality
•• Reciprocal club affiliation information
•• Digital identification (card/photo)
price-look-up (PLU) keys, modifier keys (price and nonprice modifiers), settle-
ment keys, and others are critical elements. How many hard keys (dedicated) and
how many soft keys (user defined) does the keypad or touchscreen support? The
order entry device should be configured in a logical framework, with similar items
grouped together, in order to enhance employee productivity and reduce item
search time. An efficient order entry design will enhance employee and system
performance and improve overall operational control. Recent developments in
POS include hand-held terminals and other wireless devices.
Event Management
Given the number of private parties and catered events serviced by clubs, event-
management software can be a helpful tool. Most event management software
programs are designed primarily for hotel and independent catering operations.
However, many of these programs are just as useful for club event management
purposes, and some may be customized for a better fit with club-specific needs.
Event management programs monitor and control the activities associated
with each stage of a catered event. Typical files within an event management soft-
ware package include the following:
•• Ingredient file
•• Recipe file
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•• Menu-item file
•• Proposal/contract file
•• Inventory file
•• General-accounting files
While ingredient, recipe, and menu-item files are similar to those typically
used in programs for restaurant operations, these files are expanded to include the
nonfood “ingredients” related to the planning and execution of an entire catered
event. Ingredients often include not only food items but also function rooms, ban-
quet space, and other public space within the club, as well as labor, serving uten-
sils, production equipment, rental equipment, disposable items, decorations, pro-
visions for supplemental recreational activities, and entertainment options.
For example, tables and chairs would be listed within the ingredient file. A
recipe file would help combine the ingredients for a particular event. A club with
eight-top tables (tables that can accommodate eight people), for example, could
input this as a nonfood ingredient. When an event is planned for 240 persons,
the table-and-chairs recipe accesses the ingredient file and lists 30 tables and 240
chairs as required “ingredients” for the event. In addition, the recipe file generally
accesses cost data contained in the ingredient file and generates the cost of supply-
ing tables and chairs for an event. The table-and-chairs recipe would be used as a
sub-recipe within a larger recipe for the entire event.
Any number of sub-recipes can be chained together to produce a “menu” for
a single event. The menu item file stores the recipes used to create an event and
can be accessed when managers plan similar functions in the future. The proposal/
contract file accesses data contained in the menu-item file, develops prices, and
maintains a record of commitments. The inventory file and general-accounting
files perform functions similar to traditional food service inventory and back-
office accounting applications.
The usefulness of event-management software will depend on the degree
to which the programs integrate with the club’s existing computer system. If the
ingredient, recipe, menu item, and inventory files cannot easily transfer data to
and from software programs used in the food and beverage areas of the club, data
will have to be re-input. This “double input” of data is usually tedious, cumber-
some, and error-prone. Similarly, the proposal/contract and general-accounting
files should be compatible with the other computer programs used at the club in
order to be ideally effective.
Golf Course Management

Golf course management software automates the reservation function of a club’s
golf facility and may monitor member usage, update individual member statis-
tics (handicaps), facilitate lesson and tournament planning, and track golf rev-
enue and related revenue. In addition, some programs generate daily reports
that evaluate key areas of golf facility management. For example, after the club
has input the standard time it takes a foursome to play a round of golf, a pro-
gram might generate starting time sequences for maximizing course usage and
Club Technology 505
generate daily reports that compare actual course usage against the maximum
or ideal course usage.
From a member’s perspective, automated reservations may be the greatest
service enhancement offered by golf course management software. With many
manual scheduling practices, control concerns and limited access to up-to-date
reservation sheets force some clubs to designate one staff person per shift to
respond to member tee time requests. This often results in slow response times,
telephone bottlenecks, and anxious, impatient callers. An automated reservation
network enhances service by allowing several reservationists to access a shared,
real-time database of open tee times.
Some automated golf reservation systems allow members to reserve tee times
directly through the automated system. Typically, system prompts lead the mem-
ber to enter member identification information, a preferred play date, the number
in a party, a desired start time, and a course specification (if the club has more
than one golf course). The system then provides the member with a confirmation
number. If the requested tee time is not available, the system may present alterna-
tive times, dates, or courses. In addition to booking reservations, some web-based
systems allow members to enter their scores after their rounds of golf. The system
can then be used to update tournament-play information and such member statis-
tics as handicaps.
System Interfacing
Unless the club is contracting with a single system vendor for an all-inclusive set
of technology applications (often termed a “vanilla system”), there may be con-
cern over interconnecting stand-alone or separate applications to the main club
management system. Generally, hardware connectivity is not as troubling as soft-
ware integration or network administration issues. Interconnecting hardware
components can be accomplished in a number of ways, including both cabled
and wireless options, and may be as easy as connecting two sets of twisted pair
wires. Hardware connectivity tends to revolve around creating linkage, while data
exchange is more complex and requires compatible software. For example, plac-
ing a long distance telephone call is relatively easy as the hardware involved in
the connection establishes a circuit. The caller merely lifts the telephone receiver
and dials the proper country code and phone number. The hardware portion of
the system easily connects to a remote telephone switch. Problems arise when the
caller realizes that the party on the receiving end speaks a different language than
the caller. This is analogous to what might happen during a system interface. Run-
ning a cable between two systems (e.g., a club management system and a POS
system) is relatively simple, but getting the devices to share transactional informa-
tion may be much more complex. In addition to software challenges, some club
systems may also present network configuration and security challenges.
Interface Standards
The interface of a point-of-sale application to a club management system can be
accomplished according to an established set of interface criteria. The five C’s of
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interfacing are: confidence, contracting, communications, comparisons, and con-

tingency planning.
Confidence. Before interconnecting two stand-alone applications (e.g., POS sys-
tem and club system), be sure to test each system separately. There should be a
high level of confidence in each system’s operational capabilities before attempting
to link them together. This is no different than attempting to connect a CD player
to a stereo system. Surely one would test the CD player and stereo system individ-
ually before attempting to wire them together. If there is an interface problem and
the components were not tested prior to connectivity, troubleshooting the problem
becomes more difficult.
While independent testing may seem obvious, often club interface problems
are encountered as a result of failure to prove each system’s functionality prior to
interfacing. Once there is confidence that each device is functioning properly, the
connectivity is more likely to be successful. For example, testing both the POS sys-
tem and club management system prior to linking them will prove effective and
efficient. The fact that POS transactions flow seamlessly to the member receivables
package of a club management system should not be a surprise.
Contracting. Before attempting to connect separate systems, management should
commission a legal review of all involved product vendor contracts. Unfortunately,
there may be contractual interface restrictions requiring direct involvement of the
original product vendor when interface activity is contemplated. The reasoning
behind this provision is to protect the interests of the product vendor. Data may
be stored in a proprietary format, not be easily accessible, or be encrypted, thereby
presenting serious interface complexities. If an unauthorized technician performs
an interface that results in erroneous data transmission or improper application
formatting, interface failure may occur. An uninformed technician may perceive
faulty interface transmissions as an application design flaw when, in reality, the
problem may represent a breach in security.
Once management contacts the company that installed the club's POS sys-
tem and opens a dialogue concerning interfacing the POS system with the club's
management system, the interface can be attempted. Receiving permission from
product vendors helps facilitate proper interface activity and increases efficiency
of data communications, as participating parties have insight to data structures
and communication protocols.
Communications. When contemplating an interface, it is important for manage-
ment to determine what information is to be exchanged, how frequently, and in
what format. In addition, there is the question of whether a copy of transmitted
data should remain at the original source system or whether it should be perma-
nently moved to the receiving system. Knowing what, when, and how interfaced
data streaming is to occur is important to effective interface design.
In the case of POS interfacing, for example, how much order-entry detail
should be transmitted to the club management system? The details of order entry
are really of importance to the food and beverage department, not the accounts
receivable module of the club accounting system. Hence, perhaps only total rev-
enue amounts from the food and beverage order should be exchanged. When
Club Technology 507
should the POS data be sent to the club management system? Well, since the club
is not likely to bill its members immediately following service, there is probably no
need to transmit POS data as it occurs (in real time) or when a check/chit is closed.
Instead, batching the data for transmission at the end of the meal period or at some
later time may represent a feasible timetable.
What about data format? A workable data transmission format will be dic-
tated by the requirements of the receiving system in the interface. While histori-
cally ASCII formatting was fairly commonplace, Windows-based POS systems
employ open database connectivity (ODBC) formats. Open database connectivity
is an open standard application-programming interface (API) for accessing a data-
base. By using ODBC statements in a program, the interfaced system is capable of
accessing files in a number of different database formats (e.g., Access, dBase, DB2,
Excel, and text). A major supplier of ODBC programming support is Microsoft.
Although Windows was the first to provide an ODBC product, versions now exist
for UNIX, OS/2, and Macintosh platforms.
Management must determine whether data transferred from a host system to
an interfaced system remains on the host or is deleted at time of transmission. For
club management applications, this tends to be a difficult decision, as the data is
often useful to both systems. Should a club member question a transaction posting,
the club accounting office would like to have access to the original transaction to
prove its work. Leaving a copy of the original data in the source system provides
a more comprehensive reference base. While there is no clearly preferred rule for
data storage and removal, copying data from a source system to a non-volatile
backup media (e.g., tape, zip disk, CD, etc.) is usually the prescribed option.
Comparisons. One of the most important elements of an interface project is iden-
tifying already installed users. One of the biggest mistakes club management
can make is not contacting currently installed users to determine the best means
by which to accomplish an interface. How can the club learn of installed users?
Product vendors have a list of installed users and usually are aware of successful
(and failed) interfaces to and from their product line. By inquiring about success-
ful interfaces with an installed product vendor, and contacting clubs of a similar
membership size and scope, management can gain invaluable insight into inter-
faced solutions. Although this appears to be a low-cost, obvious strategy, it is not
usually exercised. Too often, management seeks out interface partners without
inquiring about existing solutions with an installed product vendor.
When considering interfacing the club’s POS system with its club manage-
ment system, the most efficient approach is to inquire with the club management
system vendor as to which of its installed users currently have successful POS
interfaces. Such an inquiry will provide management with a list of installed users
(if any) that had a successful experience with the two systems under consider-
ation. If there are experienced users, then management should contact those clubs
and formulate an interface strategy. If there are none, it may be wise to contact the
POS vendor with a similar inquiry.
Contingency Planning. One of the concerns of club management tends to be that
staff will become too automation-dependent and forget the basis of club operations.
In other words, staff may become computer-dependent, not computer-oriented.
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Management must be sure that staff members are trained to operate the club
should the interface fail during a critical time in the data processing cycle. There
should be a set of downtime strategies that assist staff in operating the club even
if the interface crashes.
In addition, some attention needs to be paid to maintaining the spare parts (if
any) required by the interface. If an interface fails or loses integrity, there needs to
be a way to audit and/or restore the system so that data processing objectives can
be accomplished.
For example, when interfacing a POS system to the club management system,
there needs to be a set of provisions governing backup procedures so that proper
processing can be accomplished even if the interface is not operational. What may
happen is that departments become so dependent on an interface they forget how
to function should there no longer be an electronic linkage between two installed
systems. One popular strategy is to develop a procedures manual that documents
the flow of data and information in a workable interface scenario. Then, if the pro-
cess fails, a backup procedure can be invoked. Contacting installed interface users
will help the club’s management develop such contingency plans.
System Upgrades
The process of purchasing or upgrading a club system can be complex and time-
consuming. Club managers should begin the process by forming a project team.
This team will be responsible for identifying the club’s information needs, request-
ing proposals from vendors, scheduling site visits by vendors, evaluating ven-
dor proposals, scheduling product presentations by vendors, negotiating with the
selected vendor (or vendors), and contracting the selected system. By adhering to
a sequence of steps, the team is better able to ensure that the system will meet the
rigorous demands of club operations, conform to budgetary constraints, produce
cost savings, and enhance member services.
Appoint a Project Team

The first step is to appoint a system project team. The team leader should have
overall responsibility for system selection. This person is also responsible for
determining a schedule and monitoring the team’s progress.
Throughout the purchasing process, the team should keep in mind two
important guidelines:
1. Involve as many of the club’s staff members as possible when defining the
club’s information needs and application specifications.
2. Ensure that the same data is processed by competing vendors during system
demonstration sessions. Differences in processing techniques become more
obvious when applied to the same set of data.
Identify Information Needs

The team should identify the types of information that the club’s various levels of
management use in the course of operating the club. This can be accomplished by
Club Technology 509
compiling samples of reports presently prepared for managers and supervisors
throughout the club. The reports should be analyzed with respect to such vari-
ables as purpose, content, use, and frequency of preparation.
While this analysis identifies the types of information currently used by man-
agement, it does not necessarily reveal all of a club’s current information needs.
Therefore, the team should also survey managers to evaluate the effectiveness of
the format and content of the reports that are currently in use. The results of this
survey will reveal the improvements club managers want to make to the current
information system.
Establish Requirements
The next step in the process is to establish system requirements. This does not mean
that club managers must become experts in system design. Managers do not need
to know the mechanics and details of electronic circuitry, but they must be able to
make general determinations about what data to process, how that data is to be
processed, and the formats in which processed data will be output as information.
Determining what data to process involves identifying the information tasks
that can best be performed by a computer system. Determining how data is to be
processed is a matter of making sure that any proposed computer system uses
management-approved formulas when performing such calculations as food-cost
percentages. Determining the formats in which processed data will be output as
information involves decisions that may change the structure and style of member
statements, managerial reports, and other materials.
Request Vendor Proposals

After translating the club’s information needs into system requirements, the proj-
ect team is ready to request proposals from vendors. A request for proposal (RFP)
is typically made up of three major sections: the first section introduces the vendor
to the club and its operations, the second section establishes bidding requirements
for vendor proposals, and the third and most important section deals specifically
with the club’s computer-application requirements.
CMAA and Hospitality Financial & Technology Professionals (HFTP) have
produced a request for information template that club managers can use when
preparing RFPs. Managers can modify the template to reflect the specific needs of
their clubs.
A property profile is a useful way to tell vendors about the information needs
of the club. The property profile should include information such as business vol-
ume (total revenue, number of employees, number of members served), physical-
plant description (square footage, number of food and beverage and other retail
outlets), operating statistics (number of transactions, average check, number of
covers, average inventory turnover, food costs), and similar types of information.
After creating an operational profile, the system project team can collect sales
literature on a variety of systems that meet the needs of the club. Effective ways
to collect relevant product literature include inquiries to state and national trade
associations, attendance at industry trade shows, and visits to local system ven-
dors. This information will help the team standardize the second section of the
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RFP. Establishing bidding requirements for vendor proposals prevents vendors

from using their own bid formats. A standardized bid template makes it easier
for the team to compare the prices and system performance specifications of the
various vendors. Vendors should also be required to include a statement of their
financial stability.
The RFP should direct vendors to include as much information as possible
about the proposed system and support services, including such details as:
•• Hardware configurations.
•• Software descriptions.
•• Maintenance and support services.
•• Installation and training programs.
•• Guarantees and warranties.
•• Payment options.
•• System expansion plans, if any.
Once created, the RFP should be distributed to selected vendors.
Host Site Surveys

After receiving an RFP, conscientious vendors typically schedule a visit to the club
in order to conduct a site survey. The purpose of a site survey is to identify impor-
tant factors about the club’s operation that may affect system design. For exam-
ple, the physical parameters of the club are key factors in determining hardware
configurations. During a site survey, a vendor may analyze other characteristics
specific to operations that are critical to overall computer-system planning. Many
details regarding the club’s internal organization, policies and procedures, and
daily operations directly affect a vendor’s system proposal.
In order to secure all of the information necessary to complete their proposals,
vendors may require a great deal of information from various club departments.
To facilitate vendor access to information and key club staff members, the club’s
general manager or the project team leader may designate a management rep-
resentative to coordinate the flow of information to vendors; this can help keep
disruptions to the club’s daily operations to a minimum. This representative may
also provide the team with valuable information on how efficiently the various
vendors conducted their site surveys; this may provide a clue as to which vendor
is right for the club.
After conducting site surveys, vendors complete and submit their proposals.
Evaluate Proposals
While there are many ways to evaluate a set of vendor proposals, a multiple rat-
ing system can be an efficient method. A multiple rating system uses the same
criteria to judge the worth of each vendor’s proposal. Generally, the criteria consist
of several key issues that the club’s managers consider to be of critical concern
in automating the club. The issues are ranked in the order of their importance
Club Technology 511
and assigned a percentage value that denotes their relative importance within the
overall evaluation scheme. The ratings that each vendor receives for each issue
are multiplied by their appropriate percentage values and then totaled to yield
an overall score for each vendor’s system proposal. The proposal receiving the
highest overall score identifies the vendor with whom the project team should
seriously consider negotiating a contract. Sometimes two or three vendors receive
similarly high scores; in that case, the team may wish to schedule product demon-
strations with more than one vendor.
Schedule Product Demonstrations

Scripted product demonstrations, or “scripted demos” for short, prevent vendor
product demonstrations from becoming unfocused presentations of “neat system
tricks.” The project team should provide each vendor with a script indicating what
it wants the vendor to demonstrate, thereby ensuring that (1) the demo covers
features relevant to the club, and (2) that every vendor demonstration covers the
same ground.
There are several steps in developing a script for vendor product demon-
strations:
1. Determine which system capabilities are most important to the club and
request that vendors demonstrate them.
2. Script scenarios that as closely as possible mimic what really happens at the
club. Have club staff members propose typical member behaviors and pref-
erences and also describe unusual patterns of business that will have to be
monitored by the system.
3. Arrange scenarios in a logical order, but stagger transactional information
to simulate actual business conditions. For example, in the case of food and
beverage areas, ask visiting vendors to enter food orders into their systems in
a way that closely simulates actual member orders, modifications, and settle-
ment activities. This will test the system’s ability to perform a variety of trans-
actions in a random fashion. Advise the vendor of the importance of strict
adherence to the scenarios as written.
4. Identify future events that may be relevant to the system, such as physical-
plant expansion, changes in staff size, on-line credit and debit card authoriza-
tion, club website interfacing, electronic mail, e-procurement, and so on.
5. Limit the vendor’s demonstration time. This directs the vendor to address fea-
tures and functions that the club is most interested in seeing rather than what
the vendor is most interested in showing. A 90-minute presentation period
should be sufficient.
In addition to requiring a scripted demo, the project team should require ven-
dors to use the actual hardware components and application software included
within their proposals to the club.
Vendors should be informed that those who successfully pass the scripted-
demo stage will be invited back for a second visit. At that time, vendors may dem-
onstrate any additional system features that the scenarios failed to illustrate.
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After the team has had a chance to review all of the system demonstrations,
the next step is to negotiate with candidate system vendors.
Once finalist vendors have been identified, the next step is to negotiate a system
contract. Prior to entering into contract negotiations, it is wise to secure copies of
standard contracts used by a variety of system vendors. Although standard con-
tracts are typically written in favor of the vendor, such documents may provide
suggestions relative to the kind of protection that the club may require. Manage-
ment should examine these contracts carefully and obtain legal advice from a
qualified attorney. If the attorney has no working knowledge of club technology,
management may want to seek assistance from an experienced systems consul-
tant, although this is not always needed. In any case, the standard contract offered
by the technology vendor should be considered as the starting point for contract
negotiations. Since the actual sale has not yet been consummated, club manage-
ment maintains a great deal of leverage in negotiating changes to a vendor’s stan-
dard contract.
Contract Provisions. The essential contents of a club technology contract can be
divided into several major areas. While some areas may be executed as separate
contracts or sub-contracts, a club may find that one master contract best meets
the needs of the business and simplifies the contract process. Three basic areas
common to a system contract are: (1) general provisions, (2) hardware provisions
(including maintenance), and (3) software provisions (including enhancements).
General provisions address standard contractual terms that are typically cov-
ered in most purchasing contracts, such as:
•• Terms of delivery.
•• Terms of payment.
•• Survival past delivery.
•• Saleable product warranty.
•• Catastrophe remedies.
•• Provisions for breach of contract.
Survival past delivery refers to the responsibilities of both parties once the product
arrives on the buyer’s (club’s) premises. Saleable product warranty provides the
club assurance that the seller has a legal, marketable right to warrant the pur-
chased product. Catastrophe remedies refer to penalties and relief in the event of
a major failure of the product.
Hardware provisions relate to the purchase and operation of the system
equipment and usually include the operating system that typically accompanies
the hardware. Key areas addressed in the hardware section of a technology con-
tract include:
•• Specifications and performance criteria.
•• Delivery, installation, and testing requirements.
Club Technology 513
•• Costs and terms of payment.
•• Reliability tolerances.
•• Maintenance program options.
Application software provisions tend to be more difficult to negotiate, given
the complex nature of software ownership (or licensing rights). Since software
programs are a compilation of ideas and processes proprietary to the seller, title
is not typically transferred to the buyer. Instead, the software often remains the
property of the vendor and the buyer is granted a nonexclusive license to use the
software programs at a designated site. It is for this reason that the vendor is often
described as providing the club a site license. Key areas of a software contract are
similar to those listed for hardware; however, the club is wise to insist that the
software contract require that a copy of the programming source code be placed
in escrow and released to the club should the vendor quit the software business or
fail to carry out provisions as stated within the contract.
Types of Contractual Arrangements. In relation to club technology, there are at
least four types of contractual arrangements, including:
•• Single-vendor contracts.
•• Multi-vendor contracts.
•• Other equipment manufacturer (OEM) contracts.
•• Application service provider (ASP) contracts.
A single-vendor contract refers to an agreement to purchase hardware and
software from the same vendor. In most single-vendor contracts, the vendor makes
the necessary hardware and software modifications prior to system implemen-
tation. A single-vendor contract clearly identifies the vendor’s responsibilities in
relation to hardware and software performance and avoids the kind of confusion
that may arise in other contractual arrangements when the lines of responsibility
are not so clearly defined (i.e., more than one vendor is involved).
A multi-vendor contract arises when there is an agreement to purchase hard-
ware and software from separate sources. The hardware components may be pur-
chased directly from the manufacturer, through a manufacturer’s representative,
or purchased through the software vendor who serves as a value-added re-seller
(VAR). In any case, the hardware components and/or the accompanying operating
system may require modifications by the software vendor in order to perform to
contractual specifications.
When a club purchases hardware components from one source and they
must be modified to perform to specifications set by another source, confusion
may arise with respect to maintenance, guarantees, and warranties. For example,
when a software vendor modifies hardware components in order for the system
to support special application programs, guarantees and warranties offered by
the hardware manufacturer may become invalid. Hardware manufacturers gener-
ally assume responsibility for product performance only in relation to designated
performance specifications. Whenever hardware components must be modified to
perform according to specifications that differ from those originally designated by
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the hardware manufacturer, club management should insist that whoever modi-
fies the equipment support the performance of that equipment with guarantee
and warranty conditions similar to those originally provided by the hardware
manufacturer.
An “other equipment manufacturer” (OEM) contract refers to a situation in
which a club agrees to purchase a variety of hardware components and software
modules from a single source vendor that takes responsibility for the system con-
figuration. In other words, the OEM builds a custom system by blending other
vendor supplies to form a unique system for the club. The OEM then guarantees
the performance of this unique system. OEM contracts generally involve the sale
of a turnkey system. In relation to other forms of club systems, a turnkey package
is a complete system that arrives on the premises ready for implementation. Once
installed, the club “turns the key” to the system and the system is ready to per-
form. This kind of contractual arrangement provides a club with the equivalent of
a single-vendor contract relationship.
The newest type of arrangement is the application service provider (ASP)
contract. An ASP acquires and offers software to a club (end user) without actu-
ally placing the application on the club premises. Application service providers
are third-party agencies that manage and distribute Internet-based software ser-
vices (often termed “web-hosted”) to clients from a central data center. An ASP
enables a club to outsource its technology needs by locating system components
at a remote, secure site. ASP vendors argue that not only are superior information
system services available, but they are attained at a reduced level of expenditure.
An important concern in an ASP contract is its fee schedule. To engage in an ASP
arrangement, the club must have a high-speed Internet connection and a reliable
web browser.
Club Websites
The Internet has created a communications and information explosion that has
the potential to impact virtually every aspect of daily life. Likened to a network
of interstate roads, the Internet is a network of computer networks, connecting an
ever-growing number of regional sites to an international superhighway of com-
munications and information. When a user connects to the Internet, messages and
information can be shared with millions of other users.
A full discussion of the Internet is beyond the scope of this chapter; the focus
of the following sections will be on the two most common ways club managers use
the Internet: sending e-mail and surfing the web for information.
E-Mail Messaging
Electronic mail or e-mail enables Internet users to communicate with people down
the hall, across town, or around the world. After arranging for Internet access,
new Internet users typically find immediate applications for e-mail communica-
tions. The only requirement is that the sender know the intended receiver’s e-mail
address. The alphanumeric format of an e-mail address is generally based on the
name of the intended receiver, coupled with the name of the e-mail system being
Club Technology 515
Exhibit 9 The E-Mail Communications Process
used and the host computer network. For example, the most commonly used for-
mat for an e-mail address is localname@domain. “Localname” refers to the Internet
name of the intended receiver. The domain portion of the address identifies the
host computer system on which the intended receiver has an e-mail account. The
address on either side of the “@” symbol can be extended, allowing for a more pre-
cise identification of an individual or host computer system. Exhibit 9 diagrams
the e-mail communications process.
A club equipped with e-mail not only enables the internal staff to communi-
cate from their individual work areas, but also allows managers at the club to com-
municate with managers from other clubs who have e-mail capability. In addition,
for some clubs, e-mail opens a convenient communications link with members.
E-mail systems enable club managers to create their own electronic mailing
lists and distribute messages to targeted audiences. If one of these lists contains
the e-mail addresses of club members, messages can be easily and inexpensively
distributed to members. Similarly, communications involving club commit-
tees and board members can be sent using the appropriate e-mail mailing lists.
Additional mailing lists can be developed for special-interest groups within the
membership. Members could sign up (that is, release their e-mail addresses to
the club) to receive communications on specific club functions and activities—
gourmet dining, bridge, swimming, bingo, golf, and more. One of the greatest
advantages of e-mail over regular mail is not just the speed of the communica-
tion but the convenience of communication and ease of response. E-mail can be
sent and received at any time, day or night. This advantage also brings with it
greater responsibility in terms of responding to e-mail messages and requests.
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Club managers should check their e-mail often and prepare timely responses to
the inquiries and messages they receive.
The World Wide Web

The World Wide Web is a major part of the Internet. It is the best-known aspect
because its user-friendly features have attracted millions of people, from grade-
school children to business executives. Unlike text-only sites that have existed
on much of the Internet, the World Wide Web offers a rich combination of text,
images, sound, animation, and video. The visual options of the World Wide Web
and the surging numbers of “surfers” have enticed millions of businesses, organi-
zations, educational institutions, government agencies, clubs, and individuals to
create their own web pages and participate in the dissemination of information
along the web.
Much of the user-friendly nature of the World Wide Web stems from the
HyperText Transfer Protocol (http) that structures information on the web. This
protocol is a specialized set of file download commands embedded within the
hypertext markup language (HTML) used to place text, graphics, video, and other
information displays on the web. The “http” indicates that the web page can han-
dle non-sequential links to other hypertext pages.
A uniform resource locator (URL) designates the Internet address of a site,
usually the site’s homepage. A site’s homepage is the first screen or web page pre-
sented when you reach a site. URLs are usually built into the hypertext of a web
document, enabling users to jump from site to site along the web. For example,
consider the following fictional Internet address:
http://www.doublebogey.com
Inputting this address would take a user directly to the web homepage of the Dou-
ble Bogey Country Club. Generally, the suffix “.com” (for “commercial”) is used
for businesses, “.org” for organizations, “.edu” for educational institutions, and
“.gov” for government agencies. Extending the address to:
http://www.doublebogey.com/proshop.html
would take a user past the club’s homepage and directly to those web pages
devoted to the golf pro shop. Extending the address even further to:
http://www.doublebogey.com/proshop/gloves.html
would take the user immediately to information about golf gloves that are avail-
able through the pro shop at the Double Bogey Country Club.
Keeping track of Internet addresses is one of the functions performed by
a web browser. The term web browser refers to software that coordinates and
organizes information on the Internet. Web browsers tend to have similar designs
and operating procedures. They generally feature a toolbar along the top of
the screen with pull-down menus, icons for accessing utility programs, and a
directory for saving (bookmarking) Internet addresses of sites frequently visited
by the user. Bookmarking a favorite site on the web saves the path used to direct
Club Technology 517
the browser to the site, enabling the user to go back to the site quickly without hav-
ing to remember and input a long Internet address.
When a user does not know a desired web address, the best way to proceed is
to use a web search engine. Commonly used search engines include:
Google www.google.com
Yahoo www.yahoo.com
Lycos www.lycos.com
Excite www.excite.com
Altavista www.altavista.com
Dogpile www.dogpile.com
A search engine is a software program that indexes websites, often based on
key-word recognition, and creates lists and links to sites that match with a user’s
inquiry. Most search engines provide tips on how to efficiently search for addi-
tional information. Generally, the more specific a query, the more relevant the list
of sites the query generates. Then it’s simply a matter of clicking on the link or web
address to go directly to the highlighted document.
ClubNet. ClubNet (www.cmaa.org) is the online member service of the Club Man-
agers Association of America (CMAA), linking club managers around the world.
Because change is the only constant characteristic of the Internet, the web page
available now may look different in the future. Web pages should be continually
updated with new information, services, and hyperlinks to relevant sites.
Fundamental features of ClubNet enable club managers to:
•• Exchange e-mail with CMAA members, including CMAA’s Board of Direc-
tors, chapter officers, educational faculty, and national staff.
•• View, print, or download CMAA publications.
•• View, print, or download the Mid-Management Career Opportunities list.
•• Access information about professional-development opportunities and regis-
ter for seminars and workshops.
•• Review personal education credit history.
•• Access information about CMAA conferences, meetings, and special events as
well as on-line meeting registrations.
•• Access legislative updates and trend reports.
ClubNet also provides links to a variety of club resources, including links
to hundreds of individual club websites as well as a buyer’s guide to a variety of
products available from industry suppliers. The Club Foundation, CMAA’s educa-
tional fundraising division, is also on the web (www.clubfoundation.org).
The majority of private clubs have developed and implemented a website.
Since anyone with access to the web can visit the club’s site, the information posted
on the club’s homepage must be selected with care. Many clubs use a website to
attract potential members, promote club activities and events, enable interactiv-
ity between club staff and members, and enable member-to-member networking.
518 Chapter 12
Commonly found information on club websites includes a history of the club, a list
of facilities and services, membership information, sections of the club’s newslet-
ter, photographs of recent club activities, and descriptions of upcoming events.
Designating a file server or PC to serve as an Internet-access terminal helps
capitalize on the information and entertainment value of the web. A “cyberzone”
or “cybercafe” within the club could provide web-savvy members with the oppor-
tunity to explore sites that they may never think to visit through their normal
surfing routines. For example, club managers could encourage members to pur-
sue their individual interests by bookmarking sites related to recreational activi-
ties such as golf, tennis, swimming, bridge, and so on, and by saving the address
of sites related to reciprocal clubs. For members new to the net, clubs may offer
instructional classes that focus on the fun and entertainment value of the web.
Web applications for clubs are limited only by the creative imaginations of manag-
ers searching for ways to enhance member relationship management and exceed
member expectations.
Club Website Considerations

With the enormous growth of the Internet, an increasing number of clubs have
become web “netizens.” Many clubs recognize that a well-designed website can be
instrumental in enhancing membership communication, information distribution,
and e-commerce. Traditional Internet websites often fail to offer an optimal service
option for private clubs, since Internet websites tend to be publicly accessible. For
this reason, most club managers are understandably apprehensive about posting
and sharing proprietary member-oriented information.
Site Privatization. There are basically three options available to clubs seeking to
privatize a website: members-only partitioning of a public site, subscription to
a vendor-designed (template) site, or development of a virtual private network.
Currently a significant percentage of clubs on the Internet have implemented a
private members-only partition. While the homepage of the club website is acces-
sible to anyone with a web browser, access to specific member-oriented informa-
tion is password protected. The implementation of a members-only partition does
not prohibit nonmembers from club access, but does provide a level of security for
proprietary club information. Public access typically is limited to a variety of gen-
eral club information (e.g., driving directions, facility overview, and staff contacts).
Partitioning the site can offer authorized members online access to the club’s event
calendar, newsletter, menu, staff/member directory, and more. For the most part,
privatized sites on the web require web page content to be provided by club staff
directly or through an intermediary site support function. Shortcomings of some
club websites are failures to allow members to collaborate on content, provide a
searchable member database, process dining or recreation reservations, or incor-
porate committee information.
Club Tax Status Concerns. While the Internal Revenue Service (IRS) does not pub-
lish a list of acceptable website content for tax-exempt entities (i.e., private clubs),
a basic guideline is to avoid information that would not be generally accepted in
print. For example, modeling a club website after a commercial business intent on
Club Technology 519
selling logo merchandise, food and beverage items, and golf or tennis lessons may
well bring unwanted government attention. In his Club Tax Book, Mitchell Stump,
CPA, reviews a multitude of related issues. The following activities are considered
compliant with 501(c)(3) or 501(c)(7) exempt club status:
•• Promoting quality features of the club, its facility and staff
•• Emphasizing unique features of the club (e.g., signature golf course holes,
health spa amenities, swimming facilities, architectural facades, etc.)
•• Discussing relevant history, mission, and community
•• Establishing a communication link between the club and its members
•• Partitioning a secured portion of the site (i.e., members-only access) for pro-
tecting proprietary information (reports, rosters, and related items)
•• Providing useful and relevant hyperlinks to other websites
•• Posting financial information, such as the club’s annual 990 tax return and the
501(c)(7) exempt status application
The following activities may be inconsistent with the provisions of 501(c)(7)
and therefore should be carefully considered before being carried out on a club’s
website:
•• Advertising commercial products or services (e.g., monogrammed merchan-
dise, instructional lessons, etc.). Income from nonmembers must be classified
as nonmember income and may threaten the club’s private status exemption.
•• Promoting “nontraditional activities,” such as catering to private residences,
selling holiday turkeys and hams, and offering baked goods or wines for
carryout.
•• Soliciting members in a manner different from that normally adhered to
throughout the club industry.
•• Promoting reciprocal arrangements involving nonmember activities.
•• Disclosing information about a member (or his/her activities) that may be an
invasion of privacy.
Clubs may be wise to select a web address ending in .org, not .com. In addition, the
club’s legal representative and tax adviser should be consulted.
Internet Protocols
The protocol for Internet communications is TCP/IP. TCP (transmission control
program) and IP (Internet protocol) are commonly linked into a single acronym.
The role of TCP/IP is to break data into segments (packets) for transportation
(switching) across an Internet-based network. At the sending end, TCP encapsu-
lates and addresses the packets and routes them to the intended recipient. Rout-
ers and bridges are used to accurately transfer data packets and to ensure that
packets are not misplaced or mishandled. On the receiving end, IP strips the enve-
lope away while TCP recombines the packets back to their original, unified form.
520 Chapter 12
In addition, TCP verifies that packet contents weren’t damaged or misplaced en

route. If some data are unaccountable or unusable, TCP initiates a request to have
the damaged or missing data re-sent. The underlying TCP/IP protocols are what
defines the Internet and differentiates it from other kinds of networks.
Internet-Based Networks
The technological success of Internet protocols has led to the development of two
additional forms of Internet-based networks: intranets and extranets. An intranet
is a private network built on the communication rules of the Internet combined
with controlled-access techniques. The membership of a club, for example, can
be authorized for entry into a specific network to form an online community.
An extranet is a private intranet with provision for limited outside-user entry.
An example would be a club permitting its purveyors to respond to distributed
purchase orders. Internet-based networks support numerous protocols, includ-
ing Transmission Control Protocol (TCP), Internet Protocol (IP), and Simple Mail
Transfer Protocol (SMTP).
Intranets
Simply stated, an intranet (also known as an internal web) is a computer network
connecting an affiliated set of clients using network communication standards.
From a technical perspective, an intranet is a private network that uses Inter-
net protocols (TCP/IP) as the basis for operation, and hypertext transfer proto-
cols (HTTP) for data transport. An intranet website looks and acts like any other
website with one significant difference—a “firewall.” The term firewall is used to
describe the hardware and software components that surround an intranet and
protect it from unauthorized intrusion. This firewall barrier is used to separate
an intranet from the Internet. The intranet is protected by hardware and software
designed to allow access to only authorized intranet users (members) for specific
purposes. Similar to the Internet, an intranet can share information worldwide
as long as the user gains authorized entry. Users participating in an intranet can
get to the larger Internet resources, but those on the Internet cannot get into the
intranet due to restricted external access.
There are many reasons why intranets are generally more complicated than
the Internet. First, Internet protocols have to coexist with other network protocols
that may be used to host the intranet. Second, intranets may be composed of
multiple local area networks (LANs), all of which must be connected seamlessly.
Third, in order to serve a broad base of interactive intranet applications—such as
bulletin boards, chat links, and collaborative applications—the operating system
of an intranet must be more complicated than that generally found on the Inter-
net. Nevertheless, intranets are much less expensive and complicated to construct
and maintain than a comparable private network based on non-Internet (propri-
etary) protocols. In addition, the ease of publishing information on a network
composed of Internet protocols makes it a popular place for posting a variety of
documents (e.g., club newsletters, menus, and calendars) as well as transactional
information (e.g., reservations, tee times, and account review).
Club Technology 521
Intranet Hosting. An intranet resides on a web server that serves as a site’s host
computer. It stores web pages, verifies user authorization, and responds to requests
for viewing. Web servers communicate with web browsers using HTTP. Given the
expertise required to maintain an intranet host device, a participant club may be
wise to solicit the services of an established vendor to host its intranet.
Intranet Club Sites. In general, the functionality provided by an intranet includes:
•• Security—Participants must be able to interact and exchange information with
confidence and confidentiality. For example, club management may want to
post proposed bylaw changes on the site for member balloting. Such informa-
tion should be shielded from nonmember access.
•• Access control—Users are provided personalized authorization tools for
restricted entry. Each member will have an access profile that defines access
privileges and rights. Access control techniques, which tend to include soft-
ware systems and physical devices, may soon involve biometric factoring
(e.g., voice prints, retina scans, or fingerprints).
•• Transaction management—Every request that flows through an intranet rep-
resents a transaction (e.g., chat session, online purchase, reservation, account
inquiry, etc.). An intranet must manage transactions and deliver desired
results.
From a club perspective there are several potential elements of a members-
only intranet, including:
•• Newsletters, calendars, and member directories.
•• Member e-mail services (via the intranet server).
•• Bulletin board systems (BBS) for message exchange.
•• Member account review and payment systems.
•• Event/function/activity registration.
•• E-commerce transactions (pro shop and catalog sales).
•• Searchable member databases.
•• Member profiles (including photos).
•• Area weather and facility conditions.
•• Food and beverage menus and specials.
•• Recreational facilities scheduling (tee and court times).
•• Feedback, polling, and survey facilitation.
•• Rules and regulations of the club and its operations.
•• Tournament competition support and results.
•• Employees-only sections.
A club intranet site should help foster a sense of community among members.
522 Chapter 12
Club management needs to be aware that there are at least five possible fees
associated with websites. Potential fees include domain name (address) fees, web-
site development fees, website maintenance fees, website hosting (server) fees,
and website promotion fees.
Determining effective website content, and maintaining timely and accurate
information, is critical to efficient intranet operations. The initial development
and continuing maintenance of website content is often a collaborative effort of
members, staff, and management, supported by web designers. Enhanced web-
site value arises from the fact that the site is accessible twenty-four hours a day,
seven days a week by authorized users anywhere in the world. Additional value
factors include cost savings (reduced printing and distribution expenses), rapid-
access communications (e-mail and online messaging), increased member mar-
keting capabilities (awareness and promotions), and higher member spending
(expanded points-of-sale). However, care should be exercised to ensure that no
outside individuals or entities, regardless of whether they are linked to the site or
provide site content, have the capability to communicate with the club’s member-
ship, for any purpose.
Key Terms
bookmarking—A feature of web browsers that logs/saves the path to favorite
Internet sites, enabling the user to arrive quickly at a site without inputting a long
Internet address.
central processing unit (CPU)—The control center of a computer system.
ClubNet—The online member service of the Club Managers Association of Amer-
ica, linking club managers around the world.
data processing—The transformation of raw facts and isolated figures as input
(data) into timely, accurate, and useful output (information).
database software—Allows users to catalog and store information about their
businesses for future use.
e-mail address—An alphanumeric format generally based on the name of the
intended receiver, coupled with the name of the e-mail system and the host com-
puter network. The most commonly used format for an e-mail address is local-
name@domain.
extranet—A private network that includes authorized external entities for the pur-
pose of conducting business or streamlining an organization.
hardware—The physical equipment of a computer system, consisting of input/
output (I/O) units, a central processing unit, and external storage devices (disks,
hard disks, magnetic tapes, and so on).
hardware configuration—The design and layout of the physical components of a
computer system.
homepage—The first screen or web page presented when you reach a site.
Club Technology 523
HyperText Transfer Protocol (http)—A specialized set of file download com-
mands embedded within the hypertext markup language (html) used to place
text, graphics, video, and other information displays on the web.
integrated software—Separate but compatible computer programs designed to
work together, sharing data and information across programs.
Internet—An affiliation of tens of thousands of private, commercial, educational,
and government-supported computer networks around the world.
intranet—A private network that uses Internet protocols (TCP/IP) as the basis for
operation and data transport.
local area network (LAN)—A local (within one office, for example) configuration
of workstations that enables users to share data, programs, and output devices
(such as printers).
modular software—A group of related programs that can be purchased separately.
scripted product demonstration—A product demonstration by a vendor that is
directed by a script prepared by club managers; the script ensures that the demon-
stration covers areas relevant to club operations and that each vendor covers the
same ground.
search engine—A software program that reads indexed websites and creates lists
and links to sites that match with a user’s inquiry.
site survey—A visit from a computer-system vendor to identify important factors
about club operations that may affect computer-system design and implementa-
tion.
software—Programs that instruct or control the operation of the hardware compo-
nents of a computer system; software programs tell the computer what to do, how
to do it, and when to do it.
throughput—The processing time it takes from data input to information output.
uniform resource locator (URL)—Designates the Internet address of a site, usu-
ally its homepage.
virtual private network—An online community formed through intranet technol-
ogy.
web browser—Software that coordinates and organizes information on the Internet.
Review Questions
1. What are some of the advantages of electronic data processing?
2. What three hardware components must every computer system have?
3. What are some examples of generic software?
4. What are some of the challenges clubs face with point-of-sale (POS) systems?
5. What do event management and golf course management software programs
enable clubs to do?
524 Chapter 12
6. What steps should clubs follow when purchasing or upgrading their com-
puter system?
7. How can club managers use e-mail on the Internet?
8. How can club managers make use of the World Wide Web?
Additional Reading
Kasavana, Michael L., and John J. Cahill. Managing Technology in the Hospitality
Industry, Sixth Edition. Lansing, Mich.: American Hotel & Lodging Educa-
tional Institute, 2010.
PC Magazine. New York: Ziff-Davis (www.pcmag.com).
Smart Computing Magazine. Lincoln, NE: Sandhills Publishing (www.smartcom-
puting.com).
Internet Sites
Computer Systems Hardware

Apple Computer, Incorporated Intel Corporation
www.apple.com www.intel.com
Dell Computer Corporation International Business Machines, Inc.
www.dell.com www.ibm.com
Elo TouchSystems NEC Corporation
www.elotouch.com www.nec.com
Gateway Computers Inc. Sony Electronics, Incorporated
www.gateway.com www.sony.com
Hewlett-Packard Company
www.hp.com
The Importance of Facility Management in 1. Explain the importance of facility
Clubs management in clubs, particularly as
Impact on Members it relates to members, employees, and
Impact on Employees costs. (pp. 527–529)
Impact on Financial Success 2. Describe how a club can embrace the
Facility Management and Sustainability concept of sustainability.
Sustainability and Private Clubs (pp. 529–531)
Why Sustainability?
Golf Courses and Sustainability 3. Review the general responsibilities
Facility Management Responsibilities assigned to individuals in a club’s
Building Maintenance and Operations facilities department. (pp. 531–535)
Housekeeping and Sanitation 4. Explain how a club can undertake
Grounds, Utilities, and Site facility condition and facility function
Maintenance evaluations and how they relate to a
Waste Management and Hazardous club’s facility quality assessment.
Materials (pp. 535–539)
Energy Conservation and
Management 5. Describe club building projects, from
Fresh Water Resource Management forming a design and construction
Function Setup and Breakdown team to closeout. (pp. 539–548)
Local, State, and Federal Code
Compliance
Facility Quality Assessments
Facility Condition Evaluation
Facility Function Evaluation
Facility Quality Assessment
Building Projects
Forming a Design and Construction
Team
The Design Process
Integrating Sustainability Into the Plan
Safety Concerns
Construction Project Management
Construction Contract Delivery
Methods
Project Insurance and Surety
Commissioning
Closeout
Conclusion
13
Club Facility Management
This chapter was written and contributed by Bill Whitbeck, LEED AP
and adjunct faculty member in Michigan State University’s School of
Planning, Design & Construction; and Jack D. Ninemeier, Ph.D., CHA,
Professor, Michigan State University. The authors wish to thank Steven
G. Ballard, project manager of The Country Club in Chestnut Hill,
Massachusetts, for his content recommendations, manuscript review,
and revision suggestions.
E ffective facility management is critical to the successful operation of private

clubs. Members and staff require a well-constructed and well-maintained facility
that meets both their needs and the club’s financial expectations. Club managers
best achieve these goals when they understand the fundamentals of effective facil-
ity management. They must manage daily maintenance and sanitation needs, as
well as construction and renovation projects. This chapter provides an overview
of facility management, from the importance of facility management, sustainabil-
ity issues, and facility management responsibilities to facility quality assessments
and the various activities and responsibilities involved with club building projects.
The Importance of Facility Management in Clubs

Impact on Members
Well-designed and well-maintained facilities significantly affect club membership
and participation. Members form first impressions based largely on a club’s facili-
ties; these impressions can strongly influence member retention and satisfaction.
A properly designed and well-maintained facility provides an aesthetically pleas-
ing, comfortable, and safe environment that enables staff to deliver quality service.
To positively affect members’ experiences, club managers must understand the
concepts behind proper facility management and apply them during their daily
decision-making.
Impact on Employees
A club’s facilities are a “manufacturing plant” where the general manager and his
or her team plan, create, and deliver the services and products that members and
their guests desire. The facilities also house and interconnect equipment, systems
(e.g., utilities, communication cabling, elevators), and controls that let employees
complete their jobs. The facilities are where employees work; they, like the club’s
members, require efficient, comfortable, and safe spaces.
527
528 Chapter 13
A well-designed and well-maintained facility benefits club employees in

numerous ways:
•• Employees enjoy coming to work because their workplace is pleasant and
safe.
•• Employees can complete their jobs more easily.
•• Employees take pride in their jobs and might encourage family and friends to
seek employment at the club.
•• Employees see that the club’s board of directors and managers maintain pride
and interest in the operation. Consequently, employees are inclined to be
more motivated and more satisfied with their jobs. They also are more likely
to stay with the club instead of seeking jobs with other companies.
•• Managers can establish efficient performance standards without “working
around” facility impediments (i.e., “Why are steps there instead of a ramp?”).
Impact on Financial Success

Facilities affect the amount of revenue a club generates. A well-maintained facility
helps attract members and guests. Consider, for example, a club whose à la carte
dining rooms and banquet rooms are large enough to seat the optimal number of
guests, and whose food production areas have optimal production capacity. These
rooms and areas can generate incremental revenue the club might have lost had it
not been able to accommodate its members or serve them at desired times.
Club facilities generate several types of costs. Facilities must be designed,
developed, built, and financed. Once occupied, they must be operated and main-
tained. Eventually, they must be renovated and modernized. Each of these phases
can cost a significant amount of money. Club facilities require millions of dollars
to build—an amount that does not include the considerable costs of furniture, fix-
tures, and equipment (FF&E).
Facilities built according to quality standards and good budgetary control
should have fairly predictable maintenance, operation, and renovation costs.
Conversely, poorly designed facilities, or those built with cost overruns (caused
by poor financial planning, project management, and/or construction practices)
require subsequent cost-cutting. They might also face major problems within
their first years of operation. These problems require larger-than-expected finan-
cial outlays, and present continual challenges for the club’s maintenance staff and
other employees.
After construction, ongoing operating costs become important. Facility
design and construction affect the use and cost of electricity, fuel (natural gas, oil,
and propane), potable (i.e., drinkable) water, and sewage systems. Renovation and
modernization costs depend in part on how well developers plan and build club
facilities in the first place. For example, a well-designed and well-built club can
often defer its renovation costs.
A club facility’s design determines the amount of time, energy, and money
required to manage it. Let’s look at some examples:
Club Facility Management 529
•• Facility components and layout. The location of a club’s recreational facilities,
kitchens, food and beverage outlets, and meeting rooms can affect operat-
ing costs. For example, a kitchen operation located far from function rooms
might generate unnecessary labor expenses. Also, improper heating, ventilat-
ing, and air conditioning (HVAC) systems can lead to excessive preventive
maintenance costs.
•• Materials, quality, and types of construction. Building materials affect mainte-
nance procedures and energy use, as well as their associated costs. Also, con-
struction quality affects renovation and operating expenses. When buildings
are well-constructed, facilities personnel can focus primarily on maintenance.
When construction quality is substandard, facilities employees might have to
focus more on construction.
•• Equipment. A club’s equipment affects its maintenance needs. Issues like dura-
bility, estimated life, repairability, efficiency, and accessibility affect mainte-
nance time and costs. The types of equipment items purchased also determine
the skills that staff members will need to handle maintenance issues.
•• Building systems. Old buildings with steam heating systems need mainte-
nance experts who specialize in this type of equipment. Newer facilities often
use hot water to distribute heat, reducing the need for maintenance in general
(and for boiler operators altogether). Controls that regulate HVAC systems
can be complex, and computerized alternatives are increasingly the norm.
Building systems must be integrated and maintained; club managers will face
obvious costs in achieving this integration and maintenance.
Facility Management and Sustainability

In today’s more environmentally conscious world, heightened concern exists
regarding the effect hospitality operations (including private clubs) have on the
natural environment. As prominent gathering places and community role mod-
els, clubs are in a prime position to promote sustainable planning and operations.
Sustainability is closely related to broad environmental issues like global climate
change, habitat/ecosystem degradation, resource consumption, and solid waste
issues. Sustainability addresses environmental issues within the contexts of eco-
nomics, ecology, and ethics. A large number of stakeholders are privy to informa-
tion about a club’s decisions and programs, so engaging in sustainability efforts
can be good public relations for a club in addition to being the right thing to do for
the environment. Therefore, when engaging in sustainable practices, club manag-
ers should ensure that stakeholders hear about them and, when appropriate, are
able to offer their input.
Sustainability and Private Clubs

It is important that club managers consider the ways sustainability affects all
club operations, including daily operations and planned renovation or construc-
tion projects. The best way a club’s general manager can promote sustainability
is to develop a collaborative club-wide “green” culture that encourages input
530 Chapter 13
and provides the necessary support to achieve results. This culture is important,
as virtually every decision managers and employees make affects a club’s sus-
tainability efforts.
Anyone who uses a facility can positively affect it. Therefore, a successful sus-
tainability program involves everyone who uses a club—both staff and members.
Consider an issue as simple as a dripping faucet in a locker room. If the faucet
drips at a rate of one drop per second, it will waste eight gallons of water per day
and 3,000 gallons of water per year.1 If a club member or employee notices the
problem and reports it, the club can repair it quickly, saving water and reducing
utility bills. The repair will also generate goodwill, as the employee or member
experiences the satisfaction of knowing that because of the report the club has
done the right thing for the environment as well as saved itself some money. Like-
wise, when other members enter the locker room and see the repaired faucet, they
might, in some small way, experience heightened satisfaction with the club.
Sustainability programs positively affect clubs in other ways. The financial
savings a club reaps by reducing its utility use are readily apparent. However,
other positive outcomes that affect members and staff are not as obvious or eas-
ily measured. For example, research shows that increases in natural lighting can
improve a person’s health and wellbeing2 as well as save energy. Therefore, design-
ing facilities to take more advantage of natural light or even the simple act of turn-
ing off or dimming light fixtures on sunny days can have a remarkable impact.
According to the U.S. Green Building Council, buildings consume more than
30 percent of the total energy produced in the United States, and 60 percent of the
nation’s electricity.3 Landfill costs are increasing, and fossil fuels negatively affect
the environment. Taken together, these facts indicate that a club’s commitment to
sustainability will benefit the club itself, as well as the broader community and the
environment.
Why Sustainability?
Private clubs are integrating sustainability into their policies and procedures for
several reasons:
•• Economic concerns. Many environmental initiatives offer significant economic
benefits. For example, by converting incandescent lamps to compact flores-
cent lamps, a club uses less energy, which decreases power plant emissions
and is therefore good for the environment, but the conversion also reduces
the club’s costs, which is good for the club’s bottom line. Likewise, by imple-
menting a recycling program, a club reduces waste disposal costs.
•• Regulatory concerns. Legislation that requires recycling and regulates water
use affects many communities and businesses, including private clubs. Club
managers must address environmental impacts, beginning in the club’s con-
struction phase and continuing through day-to-day operations, or face fines
and penalties.
•• Market factors. Some market segments, including many club members, express
increasing concern about environmental issues. Organizations like the Green
Restaurant Association (GRA) and the National Restaurant Association (NRA)
promote and certify environmentally conscious hospitality organizations. In
addition, a growing “green meetings” movement is striving to reduce the
impact meetings and conventions have on the environment.
•• Social responsibility. Many hospitality organizations recognize the link
between their environmental policies and corporate social responsibilities.
Hospitality organizations like InterContinental Hotels Group, Marriott Inter-
national, Starbucks, and McDonald's, among many others, have developed
and marketed their responses to environmental issues.
Club managers know that some products and practices are more sustainable
and environmentally sound than others. A manager’s challenge, then, is twofold:
(1) to minimize the impact his or her club’s products and practices have on the
environment, and (2) to generate an acceptable economic return.
Golf Courses and Sustainability

Golf courses are of concern to many environmentalists today. However, golf
courses, especially with proper land-use planning, can positively affect local envi-
ronments. When creating and operating a golf course, club managers should fol-
low best practices, which often vary based on a given area’s climate and rainfall as
well as other environmental conditions. It is critical that a club’s general manager
interact closely with the club’s golf course managers and staff, encouraging edu-
cation about the impact golf operations have in terms of water management, turf
grass/integrated plant management, and wildlife and their habitats. Such educa-
tion will help the club’s golf staff implement sustainable and effective grounds
and landscape maintenance programs. For example, the fertilizers and pesticides
used on golf courses, if improperly applied, can damage surrounding ecosystems.
Therefore, club managers should ensure that grounds employees are well trained
in proper application practices. Managers should also require ongoing training
and education to create the most sustainable and effective grounds and landscape
maintenance programs.
One important factor that affects a golf course’s sustainable operations is the
local authority that maintains responsibility for storm water and environmental
impacts. This agency enforces local, state, and federal codes and requirements.
A club’s general manager will want to maintain strong relationships with agency
personnel in order to stay abreast of new codes and therefore minimize the likeli-
hood of the club receiving fines and corrective action notices.
Facility Management Responsibilities

Facility managers in private clubs have many responsibilities. This section explores
the most important among them.
Building Maintenance and Operations

Club facilities consist of a club’s buildings and grounds. The facility management
department’s mission is to provide and maintain a physical facility that supports
the club’s broader mission. Effective facility management requires a preventive
532 Chapter 13
maintenance program organized using a planned approach that is not always vis-
ible to the club’s management and employees, let alone to its members and guests.
When facility managers defer preventive maintenance, short-term impacts
are often minimal. However, if managers continually delay preventive mainte-
nance, this unwise practice often leads to devastating long-term consequences that
significantly affect members’ experiences and the club’s budget.
Housekeeping and Sanitation

A well-kept facility enhances members’ experiences and provides a safe and
healthy environment for members and staff to engage in club activities and opera-
tions. The housekeeping function provides value by enhancing the club’s outward
appearance and supporting its mission. An exemplary housekeeping plan requires
the following activities:
•• Establishing cleanliness benchmarks in all club areas
•• Evaluating the results of cleaning methods (i.e., “There might be a better
way!”)
•• Establishing consistent and periodic feedback processes for custodial staff
•• Creating a quality assurance program that accounts for the needs of staff and
members
When analyzing staffing levels and cleanliness benchmarks, facility managers
should consider several critical factors:
•• Frequency of cleaning
•• Tasks to be performed
•• Estimated time to complete each task
•• Types of surfaces to be cleaned
•• Available equipment
•• Cost of cleaning equipment and supplies
•• Other variables, like personal protective equipment, the facility’s age, and
area traffic
Grounds, Utilities, and Site Maintenance

Successful grounds and site maintenance is best achieved by staff who thoroughly
understand horticulture, turf grass, equipment maintenance/operations, work
loading, and scheduling. As with many tasks in a club, grounds and site mainte-
nance is a heavily specialized discipline that requires ongoing training and staff
development.
Waste Management and Hazardous Materials

Proper waste management controls and procedures are essential components of
effective facility management programs. An effective waste management program
includes several fundamental features. One feature is timely waste pick-up and
removal (to control odors and pests). Another is the proper storage of waste in
closed containers and well-ventilated spaces. During the facility’s quality assess-
ment process (discussed later in the chapter), storage and removal systems should
be evaluated for factors like the condition of dumpsters and compactors (which
should be clean, properly painted, and rust-free).
Waste Minimization. Waste minimization is an approach to environmental good
practice that involves reducing, reusing, and recycling waste to lessen the amount
clubs produce, as well as the amount clubs spend to dispose of it.4 Waste minimi-
zation’s ultimate goal is to ensure that disposal is done in an approved and envi-
ronmentally suitable manner. Its potential economic benefits can be significant,
because waste haulage contracts sometimes constitute a large portion of a club’s
property operations and maintenance budget.
Waste minimization begins at the time of purchase. For example, by buying
products in bulk and using products made from recycled materials, a facility man-
ager minimizes waste. Two other tactics are: (1) controlling product usage, and
(2) working with suppliers to reduce product packaging. Managers can also reuse
beer kegs, return pallets to suppliers, donate unneeded items to shelters, and give
furniture and equipment to liquidators or other retailers.
To reduce waste through recycling, facility managers can allocate space for
a program that accepts materials like glass, metal, plastic, paper, cardboard, and
yard waste. When setting up this space, managers should keep in mind two con-
siderations. The first is that space and necessary containers should be as close to
the point of use as possible, so that users can easily dispose of recyclable items.
The second is that storage space and a functioning pick-up space should be ample
enough to contain the bulk recyclables collected from point-of-use locations.
Waste Transformation. Waste transformation involves the conversion of waste
products into other, usable forms. For example, clubs can incinerate burnable
items and use the resultant heat energy to generate power. Not only is this prac-
tice highly efficient, it poses minimal environmental harm so long as recyclables
and potentially toxic materials are removed from the waste before it is burned. In
addition, clubs should consider following the example of some quick-service food
operations which transform waste by capturing, filtering, and recycling heated air
from kitchen ventilation hoods for use in the property’s HVAC system.
Disposing of Hazardous Materials. Responsible waste management requires
identifying and correctly handling hazardous materials during the disposal pro-
cess. The United States Environmental Protection Agency (EPA) classifies many
common materials as hazardous, including batteries, fluorescent light bulbs, lead
paint, construction waste, solvents, fuels, and oils. These items require specific stor-
age, labeling, and handling procedures. The Resource Conservation and Recovery
Act (RCRA), which the EPA mandates and enforces, is the guiding resource for
hazardous waste classification.5 While club managers should familiarize them-
selves with the RCRA, they should also realize that many states classify hazard-
ous waste more stringently than does the EPA. Therefore, club managers should
thoroughly educate themselves about state and local regulations as well.
534 Chapter 13
Energy Conservation and Management

For many clubs, energy conservation significantly reduces expenses. Club manag-
ers can begin the conservation process by recording their clubs’ energy use and
costs. Facilities using computerized HVAC controls can more easily obtain these
records than can clubs using manual systems. Depending on technology, manag-
ers can also sub-meter areas (e.g., food preparation) within the clubhouse to obtain
more specific information.
Once managers establish their baselines, they can reduce energy consumption
by implementing equipment maintenance programs, as well as by encouraging
staff to turn off unneeded equipment. Another, often-overlooked, option is energy
load reduction. Examples of this include the use of window films to reduce solar
heat gain, and the use of low-volume shower heads and toilets to reduce water
consumption.
Fresh Water Resource Management

Water supply shortages caused by dry weather, high consumption, and/or munici-
pal water system breakdowns might subject clubs to regulations that limit water
use, prohibit certain uses of water, or restrict the times clubs can use water for
purposes like landscape irrigation. Clubs can address these restrictions by using
water-saving devices that reduce consumption while maintaining service quality.
In addition, clubs can incorporate native plantings in landscaped areas (plants
native to a region typically require less water), as well as encourage water conser-
vation among employees and members.
Function Setup and Breakdown

In some clubs, facility personnel help food and beverage employees set up and
break down banquet functions. Tables, chairs, portable dance floors, and other
furniture and support equipment might be stored in areas under facility depart-
ment control. These items must be moved where they are needed, and arranged
according to preplanned function room diagrams.
Often, timing is critical. Consider this all-too-common situation in busy clubs:
a wedding reception lasts until midnight or later, and the next morning, the same
space must accommodate a member/guest breakfast before a golf tournament.
A well-planned and well-executed function set-up and breakdown operation
enables staff members to execute tightly scheduled events like these. Diagrams of
table arrangements and layouts, menus, floor plans, staffing plans, and food hold-
ing and staging areas are all necessary elements of a well-run function setup and
breakdown operation. Information about rental equipment and supplies should
also be readily available, with timelines and contact people.
It is important that all departments collaborate to ensure an event’s success.
For example, the club’s special events staff must meet with the event’s sponsor
to fully document requirements. The special events staff must then share these
requirements with the club’s culinary and maintenance personnel.
Local, State, and Federal Code Compliance
Society is becoming more regulated, so a club should have at least one staff
member who is the “resident expert” on legal requirements. Deviation from or
noncompliance with codes can severely affect club operations, leading to safety
issues, bad press, and fines for non-compliance. To decrease the possibility of this
happening, the individual in charge of club compliance must maintain extensive
records, recording information like the testing dates of life-safety systems (e.g.,
smoke detectors and fire pumps). This person should also develop professional
relationships with code-enforcement officials to gain information and more easily
resolve issues that arise.
Municipalities often issue codes—particularly those regarding energy conser-
vation and recycling—with little or no notice. They also introduce and alter local
ordinances frequently. To help a club handle these rapidly changing responsibili-
ties, the club’s general manager should not only designate the aforementioned
“code expert” but also continually educate the entire staff about applicable codes
and their requirements. The time and money a manager invests into this effort
is well spent when one considers the potential negative consequences of a code
violation.
Facility Quality Assessments

A club’s general manager must continually work with his or her director of facili-
ties to evaluate the condition of the club’s buildings as well as their systems and
contents. The manager can perform this evaluation by conducting a facility quality
assessment (FQA).6 This assessment combines two types of evaluations. A facility
condition evaluation (FCE) studies the condition and life cycle of a facility and its
various systems. A facility function evaluation (FFE) studies the types of spaces
a facility contains and determines whether they meet the functional needs of the
club’s members and staff.
Facility Condition Evaluation

As just noted, a facility condition evaluation or FCE studies the condition of a
club’s facilities, including systems, fixtures, and equipment in the physical plant.
An FCE is best done using a facility condition checklist such as the one shown in
Exhibit 1. Such a checklist—modified as needed for specific jobs—helps club pro-
fessionals lead ongoing facility assessments.
Because club facilities are too large and complex for a single person or depart-
ment to assess, the FCE should follow a systems approach. In addition, all stake-
holders who work with a system should evaluate it (e.g., the maintenance staff as
well as the executive chef should assess food service equipment). Such evaluations
require open communication among personnel.
As staff members assess various systems, they should rank each system’s or
item’s priorities. The checklist in Exhibit 1 uses a “1 to 3” priority: “1” items are
critical (i.e., “attention needed now”), “2” items should be addressed within two to
four years, and “3” items should be addressed within five to seven years.
536 Chapter 13
Exhibit 1 Sample Facility Condition Checklist
Building Priority (1, 2, 3)

Description Key Indications 1 = high concern; Comments
System 3 = low concern
Building Roofs, walls, Cracks, deterioration,

envelope foundations foundation settlements
Emergency Sprinklers, fire and Systems must pass

systems smoke alarms functional tests
HVAC Heating, ventilation, and Systems function as

systems air conditioning designed? Are energy
savings possible?
Refrigeration Walk-in coolers, Maintain required

systems freezers temperatures
Electrical Lighting, circuitry, base Systems provide

systems building power functional and
aesthetic values of
lighting and power
Plumbing Supply, drains, waste Leaks, low flows, and

and vents low flushes
Transportation Elevators, escalators, Age, travel times,

systems dumbwaiters condition, service
Food service Fixed and mobile Age, condition, number

equipment equipment of service calls,
cost of preventive
maintenance
Hazardous Asbestos, lead, gasoline Function and condition

materials storage, cart batteries, of material
propane tanks,
fluorescent lamps
Club personnel should undertake a formal FCE at least semi-annually. The

process should consist of scheduled time for the club’s general manager, facility
director, and other managers to walk through the facility and critically evaluate
checklist items.
The club’s operating culture should also include informal assessments. Many
staff members interact with the facility on a daily basis and can provide invalu-
able information. Informal daily communications and semi-annual walkthroughs
let a club manager accurately update the club’s FQA. The FCE may also include
a subset known as retro commissioning (i.e., the detailed study of electrical and
mechanical systems’ energy use, functions, and other operational characteristics).
Facility Function Evaluation

The facility function evaluation or FFE answers the question, “How do the club’s
facilities and spaces meet the current and future needs of members and staff?” In
Exhibit 2 Sample Facility Function Evaluation
Anytown Country Club
Club area: Meeting and Conference Rooms Date of evaluation: 4/4/20XX
Evaluation team (names): Chris Jones

Raphael Hernandez
Dennis Blackstone
Sarah Smith
Infrastructure Does not meet requirements for IT support
Communication Does not meet requirements for video conferencing
Lighting Does not meet requirements for presentation lighting
Finishes Meets needs for this type of space
Furnishings Meets needs for this type of space
Information Technology Does not meet needs for video conferencing
Audiovisual Does not meet projection needs for this type of space
Notes IT and communication infrastructure does not support

teleconferencing. Lighting does not dim for presentations.
Projection capability does not exist permanently.
other words, during FFEs, staff members assess all spaces (e.g., meeting and func-
tion rooms) according to those spaces’ necessary and desired functions. Facility
function evaluations should be based on staff observations, as well as interviews
with employees and members who use those spaces. For example, members who
patronize the club’s dining and banquet facilities could serve as one set of apprais-
ers, while members who use the club’s meeting and conference rooms could serve
as another. When selecting appraisal groups, club managers should remember
that the best results come from fair and balanced input that is not overly detailed
or related to particular events or individuals. The goal of the interviews is to iden-
tify each space’s quantifiable shortcomings as they relate to the space’s planned
functions. An individual with expertise in space planning, as well as equipment
and space needs, should help with the FFE. Exhibit 2 is a sample facility function
evaluation for a club’s meeting and conference rooms, indicating the types of fac-
tors that might be included in an FFE.
538 Chapter 13
Exhibit 3 Sample Elements in a Club’s Facility Quality Assessment

Project Estimated Forecasted
Scope of work Area Priority
number cost year
1 Renovate kitchen— Main kitchen $1,500,000 20XX 2

new equipment, supply
and exhaust air
2 Renovate locker Lockers and $275,000 20X1 2
rooms—new lighting, lounges
floor, wall, and ceiling
finishes
3 Replace roof over Exterior $500,000 20X2 1
main club house envelope
4 Renovate parking lot Grounds $180,000 20X2 3
and site
Facility Quality Assessment

As previously mentioned, the FCE and FFE together form the FQA (also known as
a reserve study or facilities assessment). FCEs and FFEs address different aspects
of a club’s facility needs; however, the items each evaluation covers sometimes
overlap. Therefore, as capital budgets are developed, the needs each evaluation
identified should be cross-validated. For example, the FCE might show that a
kitchen’s flooring system has reached the end of its useful life and needs extensive
repair or replacement. At the same time, the FFE might show that the floor system
does not function well, given the fact that the club’s banquet business has become
popular and produced more cart traffic. Taken together, these items might elevate
the need for a new floor system.
When analyzing information from an FQA, a club’s general manager might
have to consider other factors, such as Americans with Disabilities Act (ADA)
requirements, as well as hazardous materials and life-safety assessments—all of
which address code-related issues critical to a building’s functionality.
The desired outcome of an FQA is a comprehensive building and grounds
assessment that identifies condition and space function deficiencies, and pro-
vides conceptual cost estimates for corrective actions. A sample facility check-
list for a typical club appears in Exhibit 3. Note that the listing for each project
includes information regarding the project’s scope of work, the affected area of
the club, the estimated cost, and the year the project was implemented. Note also
that projects are numbered and categorized so that club management can clearly
budget for and report on each item. The scope of work and estimated cost should
be developed after an analysis of existing physical conditions, which is best per-
formed by a qualified staff member or, if none is available, a consultant with an
architectural or engineering background. The club manager can modify the facil-
ity checklist as needed.
If an analysis such as this has never been undertaken, a club might want to
hire a consultant who will completely assess the club’s condition and functional-
ity. Before doing so, the club’s management should conduct a needs assessment
to determine the FQA’s required level of detail. The FQA is most useful when
management formally reviews and updates it twice a year. This schedule lets the
general manager closely study and verify the scope of work and the estimates for
projects heading toward the design and construction phases.
The FQA and Asset Management. Successful club operations depend on effective
asset management. To maximize the useful life of facility assets, club management
should use the FQA to gauge assets’ conditions as well as their maintenance needs.
Maintenance records for facility assets should be recorded in a database using a
computerized maintenance management system (CMMS). For each asset, the
CMMS should record information like model and serial number, part breakdowns,
wiring diagrams, installation date, supplier, service calls, expected useful life, etc.
An effective CMMS will provide reports that club managers can use to inte-
grate the CMMS and the FQA. Software vendors have developed robust systems
that achieve this integration. However, these systems are expensive, so club man-
agers must conduct a separate cost analysis to determine whether they are finan-
cially viable.
Building Projects
Overseeing building projects is an important part of club facility management.
In the following sections we will discuss various elements of managing building
projects in clubs, from the beginning phases which involve forming a design and
construction team and addressing sustainability issues, to closeout, the final phase
of a building project.
Forming a Design and Construction Team

To deliver a successful project, club management must form an effective design
and construction team. Teams are important because they can represent all of the
project’s stakeholders. Exhibit 4 shows a project impact matrix that can be used to
document possible stakeholders. Each identified individual or group should be
represented during the project’s design and construction phases.
An architectural and engineering (AE) consultant should be selected early in
the process, generally after the project has received formal approval to move from
the planning phase to the design phase. The AE is selected through a qualification-
based process in which a request for qualifications (RFQ) is issued to potential AE
firms. (The chapter’s appendix contains a sample RFQ.) The RFQ should contain a
summary of the proposed project, including the work scope and budget. The RFQ
typically requests information like:
•• Previous projects on which the AE firm has worked, with budgets and
references
•• Proposed project staff members, along with their résumés
540 Chapter 13
Exhibit 4 Sample Project Impact Matrix
Name of Project: Banquet Meal Staging Area
Individual/Group/ Potential Communication Communication

Signature
Project Affected Impact Dates Methods
Chef New equipment Sept. 9 Meeting minutes
Food Service Director New menus Sept. 9 Meeting minutes
Banquet Manager New menus Sept. 9 Meeting minutes
•• Background on the firm, including size, location, history, and experience in

the club or hospitality markets
•• Financial information such as balance sheets and insurance certificates
•• Fee proposal
After AE firms return the RFQs, a committee consisting of the club’s stake-
holders should review them and select a small group of firms (usually three to
five) to interview. Each interview typically consists of a thirty- to forty-five-minute
presentation in which the firm presents its case, as well as a thirty-minute period
for questions, answers, and discussion.
To build trust and a cooperative spirit, club managers should ensure the con-
sultant selection process is transparent and collaborative. The club staff member
leading the process should emphasize the project’s critically important nature
from the start, and reiterate its importance whenever new members join the team.
The Design Process

By nature, the design process is creative and, to some participants, even a bit mys-
terious. However, when properly done, it can achieve tremendous results. The
club’s general manager must understand the process fundamentals, engage in
thoughtful conversations with individuals responsible for key deliverables, and be
willing to make tough, timely decisions based on this input.
The design process has four fundamental phases. Each phase has a defined
start and end point, and requires owner acceptance upon completion.
Phase One: Programming. The programming phase helps define the project’s
basic functional requirements. These requirements include square footage, utility
and equipment needs, and descriptions of the finished project’s elements. (Exhibit
Exhibit 5 Sample Program Statement
Create a one-of-a-kind dining experience for the Country Club of

Pleasantville. This project involves the existing kitchen and dining
facility. It will meet and exceed members’ needs, and provide an
opportunity to grow the club’s membership base through the delivery of
outstanding service in the new environment.
The dining area must have space for 150 seats, and be flexible enough
to accommodate banquets and special events. It may include a
separate room for smaller events. The project must provide barrier-free
access, and must address the area’s aging HVAC system. Leadership
in Energy and Environmental Design (LEED) certification is desirable.
The project budget is $4,500,000, and the construction schedule will be
January 1, 20XX, through September 15, 20XX.
5 contains a sample program statement.) The programming phase can proceed

without the AE consultant, though if this is done, the AE should have an opportu-
nity to validate the program, its budget, and its schedule with the project’s stake-
holders. The project then moves to the schematic design phase, at which point the
AE should produce a milestone schedule to help the club manager monitor the
project’s progress (see Exhibit 6).
Phase Two: Schematic Design. The schematic design phase develops and docu-
ments the project’s space needs, and organizes the spaces so they function prop-
erly. For example, the schematic design phase can address the relationship between
the dining room and food preparation areas, ensuring these spaces are contigu-
ous, with enough square footage to support necessary functions. This phase also
defines the project’s major architectural, mechanical, and electrical systems. For
example:
The HVAC system will be completely replaced, with the exception of the
air handler serving the dining room space and the perimeter heating sys-
tems. These two systems are relatively new and in good condition. The
electrical service to the project is in good condition; however, the electri-
cal system in the space will be completely replaced to account for the new
floor plan.
At the conclusion of the schematic design phase, the AE will deliver a sche-
matic package that contains:
•• Drawings, including floor plans, elevations (front views), and building
sections
•• Descriptions of the HVAC and electrical systems, as well as other critical
systems
•• A schematic budget with contingencies for design and construction
•• A milestone schedule for the balance of the project
542 Chapter 13
Exhibit 6 Sample Milestone Schedule
Milestone date Jan Feb March April May June July August Sept
Develop program
AE firm engaged January 15th
Develop schematic concepts
Schematic concept and budget approval March 4th

Schematic design
Design development
Submit to Office of Fire Safety April 1st

Office of Fire Safety Approval April 29th
Bidding and buy out
Review shop drawings and quotations

Mobilize for construction
Demolition and abatement

Framing
Rough in MEP
Install finishes
Install flooring
Install furnishings
Testing and balancing
Final inspections
Public areas complete (1st and lower level)
Punch list
Occupancy September 15th
KEY- Critical milestone dates
The design and construction team or stakeholder group should review, comment
on, and approve the entire package before the next phase begins.
Phase Three: Design/Development. Once the building’s function has been iden-
tified and planned during the schematic design phase, the design/development
(DD) phase, which starts defining the project’s final form or design, can begin. This
phase involves the selection of materials, finishes, fixtures, equipment, and other
design elements that affect the look and feel of spaces. At the DD phase’s conclu-
sion, the AE delivers the DD package, which includes:
•• Drawings (i.e., floor plans, elevations, building sections, finish and fixture
schedules, detail drawings, and mechanical and electrical drawings)
•• A design development budget with contingencies for design and construc-
tion, as well as projected budgets for owner-provided items like furnishings,
information technology (IT) devices (if any), audiovisual (AV) devices, and
other items
Phase Four: Contract Documents. The fourth and final phase is the contract docu-
ment (CD) phase, during which CDs are completed to a point that lets contractors
bid on the project. The completed CDs contain final drawings and specifications.
Specifications contain the project’s administrative requirements, such as bidding
requirements, payment terms, insurance, surety (i.e., security against loss, dam-
age, or default of payment), quality control, warranties, and temporary facili-
ties. They also provide written confirmation of the project’s materials, fixtures,
and finishes, as well as descriptions, model numbers, acceptable manufacturers,
performance requirements, and other information contractors need before bid-
ding on the project.
Contract documents contain a significant amount of detail, so the CD phase
typically takes two to three times as long as the schematic and design develop-
ment phases. Upon completion of half the CDs, the AE will start the delivery of the
CD package, which includes:
•• Drawings (i.e., floor plans, elevations, building sections, finish and fixture
schedules, detail drawings, and mechanical and electrical drawings)
•• Project specifications as described previously
•• A CD budget with contingencies for construction, as well as projected bud-
gets for owner-provided items like furnishings, IT devices, and AV devices; at
this point, a contractor is often engaged to validate the budget before bidding
Integrating Sustainability Into the Plan

The project’s architect (or engineer) and club professional must work together to
ensure the design plan includes sustainable practices. Consider Project 4 in Exhibit
3, which involves parking lot renovation. One might assume this project has little
environmental impact. However, an asphalt parking lot can generate heat load,
as well as affect the quantity and quality of storm water. Yet by making simple
changes to the basic plan, the architect/engineer and club professional can cre-
ate substantial environmental and economic benefits. For example, the club could
eliminate its plans for an underground structure that would capture storm water
and carry it to the community’s storm water system. Instead, the club could use
the money it would have spent on this system to develop a pervious pavement
system that filters storm water through the parking lot and into the earth’s natural
sedimentary layers. Not only would this system decrease the load on the com-
munity’s storm water system, it would naturally improve storm water quality and
reduce heat load.
When planners view a design and construction project holistically, they can
implement sustainable concepts at little to no additional first costs, and often at
reduced life-cycle costs. Not only do sustainable concepts help a club save money,
they often produce a better-functioning and more comfortable facility.
Safety Concerns
To ensure a safe and secure environment for members, staff, and contractors dur-
ing the building project, the club's general manager should insist on a formal
safety and security plan, developed collaboratively by the contractor and club
staff, before construction on the building project begins. Club managers should
consider important issues such as traffic patterns (for both members and staff) and
facility access. The safety and security plan should include the following:
•• Site fencing maps
•• Temporary barriers
544 Chapter 13
•• Traffic ways for contractors

•• Security protocols for members and staff
•• Provision of restroom facilities for contractors
•• Provision of break and meal facilities for contractors
•• Waste and recycling plans for construction and operations
•• Delivery logistics plans
•• Emergency contact phone lists
•• Emergency utility shutoff locations
•• Emergency weather plans
•• Any other local safety or security issues
Safety on construction sites is essential to project success. The club manager
should require that his or her contractor have a certified safety plan available for
review by insurance agencies, the architect, and the club’s representative. The plan
should mandate compliance with local, state, and federal regulations regarding
safety practices and procedures. To ensure accountability, the contractor must
retain sole responsibility for the construction site’s safety. This means that all visi-
tors must comply with safety regulations (i.e., wearing hard hats and closed-toed
shoes, undergoing appropriate safety training, and so on).
Construction Project Management

After the project has been designed and safety concerns have been addressed, con-
struction or renovation can begin. Every club manager has heard horror stories
about projects gone awry with dramatic budget overruns, missed delivery dates,
and safety and legal concerns. By their nature, building projects involve signifi-
cant risk. However, significant risks can reap significant rewards. Effective project
management principles can help a club attain these rewards.
Project oversight and communication are critical. Oversight includes careful
observation of activities and controls. The club’s general manager must under-
stand activities occurring on the construction site and how these activities relate to
the project schedule. The manager achieves this when he or she schedules periodic
progress meetings and makes planned and unplanned site visits. To identify and
disseminate information about issues that come up, as well as propose, evaluate,
and implement solutions, the manager must also model and encourage open com-
munication from the project’s beginning. Contractors can solve construction issues
but often they do not understand how their solutions might affect club members
and employees. By helping contractors understand this aspect while working to
understand the contractors’ point of view, a club manager helps foster a collabora-
tive culture essential to the project’s success.
Cash flow represents a significant risk for many projects. Construction proj-
ects are funded according to the schedule established in the application and
certification for payment (see Exhibit 7). The application and certification for
payment is the contractor’s payment request; it lists the work the contractor has
Exhibit 7 Sample Application and Certification for Payment Form
completed during a pay period, and the work the contractor has yet to complete.
It is typically submitted to the architect; if the architect approves it, he or she
passes it on to the club manager for final approval and payment. The contractual
relationship establishes each party’s responsibilities concerning this document.
For example:
•• The contractor is responsible for ensuring the document’s accuracy regarding
completed work and its value.
•• The architect is responsible for verifying that the completed work is correct
according to project plans and specifications.
•• The owner is responsible for making sure funding is in place, and for ensur-
ing that the architect (as well as any club staff member who maintains project
responsibility) has accepted the contractor’s work. The owner must also pay
the contractor, sub-contractor, and suppliers in a timely fashion to keep the
project on schedule.
Construction Contract Delivery Methods

Three contractual methods can be used to deliver a construction project: the gen-
eral contracting method, the construction manager method, and the design build
method.
General Contracting Method. The most common of the three contractual methods
is the general contracting method, which uses a competitive bidding approach.
546 Chapter 13
In the general contracting method, several contractors bid on a completed set of

drawings and specifications that an architect or engineer has prepared without
contractor input. Contractors have a set time to prepare their bids. They then
return their bids to the owner, who typically awards the project to the lowest bid-
der. Under the general contracting method, the club owner holds contracts with
the general contractor and the architect or engineer.
Construction Manager Method. A second contractual method uses a construction
manager (CM) firm selected through an RFQ process during the project’s design
phase. The CM adds value to the construction project by handling tasks (e.g.,
detailed estimating) the AE might be unable to complete. The CM is also respon-
sible for schedule analysis, phasing plans, and constructability review. (During
the design phase, the owner pays for these services on an hourly basis.) When the
project is ready for the bidding phase, the CM develops and sends out bid pack-
ages for each trade; then, the CM selects the winning bidders. (The CM might have
subsidiaries of its firm that can perform certain work packages, such as concrete
or carpentry.)
The types of projects for which the CM method works best include large reno-
vations that require detailed estimates and field investigations. The CM method
also works well for projects in which construction phasing plans are critical. The
CM method helps create a collaborative spirit necessary for project success; how-
ever, it also comes at a slight cost premium. When a club owner chooses the CM
method, he or she holds contracts with both the CM and the AE.
Design Build Method. The third contractual method is the design build method.
This method differs from the CM method in that, instead of holding separate con-
tracts with the AE and the CM, a club owner holds one contract with an AE/CM
firm. However, the design build method and the CM method share some charac-
teristics. For example, as with the CM method, the design build method requires
the contractor’s involvement during the design phase. It also requires bid pack-
ages for competitive bidding among contractors.
Under the design build method, club managers can “fast track” their projects
by soliciting bids for, as well as starting, some project components while others
remain in the design phase. For example, a concrete foundation and steel structure
bid package can begin while interior finishes and fixtures are still being designed
and selected.
As with the CM method, the design build method comes at a slight cost pre-
mium, and is often contracted using a guaranteed maximum price, which might
seem a financially attractive way to mitigate risk. However, such guarantees can
lead to value engineering, in which contractors reduce costs by using lower-quality
materials that might not meet the club’s requirements or that might have short life
cycles. This, in turn, can compromise a project’s quality, sometimes without the
owner’s knowledge.
Project Insurance and Surety

Building projects bring together teams of professionals who deliver unique prod-
ucts for club owners. Each of these individuals or groups maintains significant
risk. However, a variety of tools can help reduce these risks. Before signing con-
tracts, a club’s general manager should review the policies of potential AEs and
contractors, confirming, among other things, that the AE has professional liability
insurance to cover common design errors and omissions.
During the bidding and construction phases, managers can avail themselves
of tools like bid bonds, which provide surety that bidders will enter contracts
with owners. A bid bond generally equals a small percentage of a project’s budget,
and protects an owner from the budget differential between the lowest bidder and
the second-lowest bidder. It also prevents a contractor from “tossing out” num-
bers, then backing out of the project. Other types of bonds are: (1) performance
bonds, which ensure that contractors will perform to their contracts’ requirements
and will not default on their projects; and (2) payment bonds, which ensure that
contractors will pay their subcontractors and suppliers. Specifications should
state that these bonds (which are issued to contractors by surety companies) are
required. Parties should review them before signing contracts.
Another insurance and surety tool is builders risk insurance, which provides
property insurance and mitigates risks like fire, smoke, vandalism, and floods.
(The project’s specifications must clearly state which of the two parties [i.e., club
owner or contractor] will carry it.) In addition, comprehensive general liability
insurance protects the contractor from third-party bodily harm and damage the
project might cause. It also protects the contractor from liability for acts of neg-
ligence performed by subcontractors and their suppliers. The contractor and his
or her subcontractors must carry appropriate workers’ compensation coverage
as well.
Commissioning
Imagine a club whose annual member/guest golf tournament and dinner is run-
ning smoothly until the dining room fills with more than 150 people and tem-
peratures climb uncomfortably high. The club manager calls the facility director,
who indicates the HVAC system is working properly and that he or she cannot
pinpoint the problem.
Increasingly, HVAC and other building systems require complex and sophis-
ticated controls. Commissioning is a process that attempts to fill information gaps
among design, construction, and operations personnel by providing informa-
tion about system requirements and operational procedures. Commissioning is
performed by a third-party consultant who, working directly for the club, com-
pletes two tasks. During the design phase, the consultant documents the system’s
requirements; during the construction phase, he or she ensures these requirements
are met. Commissioning provides documented confirmation that the building’s
engineering systems function according to: (1) criteria in the construction docu-
ments, and (2) the owner’s operational needs. To successfully transition between
the operations, construction, and installation phases, the consultant provides train-
ing and documentation for operations and maintenance staff. Throughout each
phase, the consultant also conducts numerous functional requirement checks, and
communicates results to the AE, the contractor, and the club.
548 Chapter 13
Closeout
As the project nears completion, several contractual activities take place; the close-
out process summarizes and documents these activities. The term “substantial
completion” indicates the space is complete and fits its intended purpose. At this
point, local regulatory code officials approve the project, and the space is ready
for use.
At this point, responsibility for insuring the space transfers back to the club
owner. This transition is documented by a formal issuance of substantial com-
pletion. A punch list of incomplete tasks (e.g., “touch up paint,” “missing trim”)
might exist, but at this point the project is essentially complete. Typically, the con-
tractor receives payment equaling 90 to 95 percent of the contract’s value, with
the balance held until the contractor completes punch list and closeout items. The
closeout items are:
•• As-built drawings
•• Operations and maintenance manuals
•• Operations and maintenance training
•• Attic stock for finish materials such as tile, carpet, and wall covering for repairs
•• Warranties, documentation, and associated contact information
Conclusion
A well-designed, well-constructed, and well-maintained club facility is critical
to a club’s success. Facility managers and staff members have many responsibili-
ties, encompassing housekeeping, sanitation, grounds maintenance, waste man-
agement, energy conservation, building projects, and many other areas. Building
projects are especially important for clubs, and often involve millions of dollars.
For these reasons, clubs should follow solid planning processes when implement-
ing new construction or renovation projects, and should involve all stakehold-
ers throughout all of a project’s phases. By doing this, club management can help
increase facility value to both the club and its members.
Endnotes
1. United States Environmental Protection Agency, www.epa.gov/watersense/water_effi-
ciency; retrieved September 15, 2011.
2. “Review and Assessment of the Health and Productivity Benefits of Green Schools: An
Interim Report,” www.nrc.com; retrieved September 15, 2011.
3. United States Green Building Council, New Construction and Major Renovation Reference
Guide, Washington, D.C.: USGBC, 2007.
4. The information about waste minimization, reuse, waste transformation, energy con-
sumption, and management of fresh water resources in this and the following sections
is adapted from David M. Stipanuk, Hospitality Facilities Management and Design, Third
Edition (Lansing, Mich.: American Hotel & Lodging Educational Institute, 2006).
5. “Summary of the Resource Conservation and Recovery Act,” United States Environ-
mental Protection Agency, www.epa.gov/lawsregs/laws/rcra.html; retrieved Septem-
ber 15, 2011.
6. Harvey H. Kaiser and Eva Klein, Strategic Capital Development: The New Model for Cam-
pus Development (Alexandria, Va.: APPA, 2010).
Key Terms
bid bond—An insurance product that provides surety the bidder will enter a con-
tract with the owner. This bond generally equals a small percentage of the project
budget.
capital budget—An accounting tool that outlines a club’s plans to invest in proj-
ects dealing with fixed assets such as buildings, equipment, land, and property
improvements.
cash flow—A comparison between the inflow of cash received by a club during an
accounting period and the outflow of cash dispersed by the club during the same
accounting period.
commissioning—A process executed by a third party during the design and con-
struction phases; it involves documenting systems requirements planned during
the design phase, and ensuring that, during the construction phase, systems are
installed to meet those requirements.
computerized maintenance management system—A database for facility asset
maintenance records that includes information for each asset (e.g., model and
serial number, part breakdowns, wiring diagrams, installation date, supplier, ser-
vice calls, expected useful life, etc.).
cost overrun—An unexpected cost that exceeds the amount allocated in a budget.
facility condition evaluation—A document completed by the club manager, facil-
ities director, and perhaps others that addresses the condition and life cycle of the
club’s facilities and their various systems.
facility function evaluation—A tool completed by the club manager, facilities
director, and perhaps others that studies the types of spaces a club maintains and
whether those spaces meet the functional needs of the club’s members and staff.
payment bond—An insurance product that ensures the contractor will pay his or
her subcontractors and suppliers.
performance bond—An insurance product that ensures the contractor will per-
form to the contract requirements and will not default on the project.
punch list—A list of uncompleted contract terms in a building project that must be
finished before the contractor receives final payment from the owner.
renovation—The process of improving a club’s facility.
request for qualifications—A document (i.e., questionnaire) issued to potential
architectural engineering companies that solicits information about previous proj-
ects. An RFQ asks for references, lists of proposed staff members who will work on
550 Chapter 13
the project (as well as their résumés), background on the firm (including financial
information), and a fee proposal.
retro commissioning—A systematic, documented process that identifies low-cost
operational and maintenance improvements in an existing building, then aligns
the building with the design intention of its current usage. The process typically
focuses on energy-using items, like mechanical equipment and lighting (with
related controls). Generally, its purpose is to optimize existing system perfor-
mance rather than replace equipment. This effort typically improves indoor air
quality, comfort, controls, energy, and resource efficiency.
substantial completion—A term used in the construction industry to indicate that
a space is complete and fit for its intended use.
surety—An insurance product that provides security against loss, damage, or
default of payment.
sustainability—An approach to environmental consciousness that addresses
environmental issues in the contexts of economics, ecology, and ethics.
waste minimization—An approach to environmental good practice that involves
reducing, reusing, recycling, and transforming waste products to minimize the
amount of waste disposed, as well as the cost of its disposal.
waste transformation—Activities that convert waste products into other, usable
forms. These activities include incinerating burnable items and using the resulting
heat energy to generate power.
Review Questions
1. How does the facility management process affect club members? employees?
a club’s revenue and expenses?
2. What is sustainability, and what can clubs do to support it in relation to their
facilities?
3. What are some components of an exemplary housekeeping plan?
4. What is waste minimization? waste transformation?
5. What are two tactics clubs should use to ensure local, state, and federal code
compliance?
6. What is the difference between a facility condition evaluation and a facility
function evaluation?
7. What is a facility quality assessment and what is its desired outcome?
8. What type of information does a request for qualification solicit?
9. What are the four phases of the design process, and what occurs during each
phase?
10. What are the three construction contract delivery methods, and how do they
differ?
11. What insurance products help mitigate the risks encountered during a proj-
ect’s bidding and construction phases?
12. What is “substantial completion?”
Internet Sites
Environmental Protection Agency Rocky Mountain Institute
www.epa.gov www.rmi.org
Green Restaurant Association United States Green Building Council
www.dinegreen.com www.usgbc.org
International Facility Management
Association
www.ifma.org
552 Chapter 13
Chapter Appendix
Sample Request for Qualifications
COUNTRY
COUNTRYCLUB
CLUBOF
OFPLEASANTVILLE
PLEASANTVILLE
REQUEST
REQUESTFOR
FORQUALIFICATIONS
QUALIFICATIONS
PRE-QUALIFICATION
PRE-QUALIFICATIONSTATEMENT
STATEMENTFOR
FOR
CONSTRUCTION
CONSTRUCTION MANAGEMENTSERVICES
MANAGEMENT SERVICES
CULINARY
CULINARYRENOVATION
RENOVATIONPROJECT
PROJECT
Due Date: February 15, 20XX

Issue Date: January 25, 20XX
Project Description
Interested architectural firms are asked to submit experience and qualifications to
the owner regarding architectural and engineering services for the culinary reno-
vation project at the Country Club of Pleasantville. This project involves the reno-
vation of the first-floor dining and culinary area and associated areas as described
in the attached program statement. The approximate construction budget is $4.5
million. Construction work is to be done between May 15, 20XX, and September
15, 20XX.
QUESTIONNAIRE FOR ARCHITECTURAL SERVICES

COUNTRY CLUB OF PLEASANTVILLE
Selection Schedule
Questionnaires Due
Proposal due February 15, 20XX
Notice of intent to interview—optional TBA
Interviews—optional TBA
Invitation to bid TBA
Bid documentation released TBA
Bid due TBA
Contract award TBA
Start of construction May 15, 20XX
Substantial completion September 15, 20XX
Proposal Submission
Submit one copy of your qualifications no later than the above date. Late proposals
will not be considered. Facsimile replies will not be considered. Submit the pro-
posal in an envelope with your return address, RFQ number, and due date noted
on the outside. Address the envelope to:
[Club contact name]
Country Club of Pleasantville
[Street address]
[City, state, zip code]
Selection Process
The pre-qualification statements will be evaluations to select five or six architects
who will interview for the project. At Country Club of Pleasantville’s discretion,
the selections might be interviewed or asked for additional information. Country
554 Chapter 13
Club of Pleasantville reserves the right to reject all applicants, and may stop the
selection process at any time.
Country Club of Pleasantville, in its sole opinion, will determine the final list of
proposals. The following criteria will be used to determine that list:
A. Minimum Requests:
1. The architect must have at least five years of experience in similar proj-
ects.
2. The architect must have managed, at a minimum, five buildings that are
either: (1) complete and LEED-certified, or (2) in the construction process
and pursuing LEED certification.
3. Project team members must have related project experience, and shall be
available for the duration of the project (including project closeout and
commissioning).
B. Favorable recommendations from referenced clients who sought similar or
like services.
Qualification Questionnaire
1. FIRM NAME(s)/ BUSINESS ADDRESS(es):
2. TELEPHONE NUMBER(s):
3. FEDERAL I.D. NUMBER(s):
4. OWNERSHIP: (identify type of organization for the firm/team)

Parent Company: (Name and Location) _________________________________
Branch Office: (Name and Location) ____________________________________
Corporation: (Name and Location) _____________________________________
Partnership: (Name and Location) ______________________________________
Individual: (Name and Location) _______________________________________
Is the Firm a Minority Business Enterprise (MBE)? YES _____ NO _____
Is the Firm a Women’s Business Enterprise (WBE)? YES _____ NO _____
5. State the year(s) in which the firm(s) was/were established:
6. State the name, title, and telephone number of the contact person:
7. Does your firm/team have an Affirmative Action Plan or plans approved by

the State Department of Civil Rights? YES _____ NO _____
8. Organization
a. Number of permanent employees: __________________________________
b. Number of employees permanently assigned to architectural services:
__________
c. List in-house personnel in the following categories for the office or divi-
sion responsible for the project:
Architects: ______________________________________________________
Project Administrators or Managers: ________________________________
Designers: ______________________________________________________
Engineers: ______________________________________________________
Support or Administrative Persons: _________________________________
Principals or Officers: _____________________________________________
Other (specify): __________________________________________________
556 Chapter 13
d. Number of permanent employees hired in the past two years: ___________

e. What has been your number turnover (layoffs or replacements) for project
managers throughout the past two years? ___________________________
f. Designate the technical level of all in-house personnel by category:
Registered/ Degree,
Licensed Non-Registered Non-Degree
Architects: __________ __________ __________
Engineers, Civil: __________ __________ __________
Engineers, Mechanical: __________ __________ __________
Engineers, Electrical: __________ __________ __________
Value Managers: __________ __________ __________
Planners: __________ __________ __________
Estimators: __________ __________ __________
Attorneys: __________ __________ __________
Business Administration: __________ __________ __________
Computer Science: __________ __________ __________
All Other: __________ __________ __________
g. List the professional and trade associations represented by in-house per-

sonnel memberships:
________________________________________________________________
________________________________________________________________
________________________________________________________________
h. What portion of your work would you self-perform, either by yourself or

by wholly-owned subsidiaries?
________________________________________________________________
________________________________________________________________
9. Experience/References:
a. List projects for which your firm has provided/is providing AE services
most similar to those required by private clubs. In determining which
projects are most similar, consider size and complexity, how many mem-
bers of the proposed team work on the project, and how recently the
project was completed. List the projects in priority order, with the most-
related project first. Indicate the LEED certification level, if applicable.
b. For each of the listed projects, provide the following information: con-
struction cost (original and final); current phase of development; esti-
mated (or past) completion date; owner; name, e-mail address, and tele-
phone number of the owner’s representative at the time the applicant’s
service was provided, in addition to the current owner’s representative.
10. Applicant’s Personnel (provide this information on a separate sheet):

a. Name the project executive, project manager, and project designer who
will be part of the team for this project. Describe in detail the experience
and expertise of each team member. (Note: key personnel must be com-
mitted to this project from the time of award through duration, unless
excused in writing by the owner.)
b. For each project listed in response to question 9, fill out a matrix listing
the proposed project team and the members who worked on each listed
project.
Sample Matrix:
Team credentials and chemistry are of utmost importance. Briefly pro-
vide assurance that the project team members you have proposed will
remain assigned to the project until its completion.
11. Describe how your firm ensures document quality, as well as how it manages
change orders.
12. Briefly describe your ability to work in a team environment that focuses on
the club’s goals and objectives.
13. Provide reference information for the following: (1) the team’s most recent
country club project; (2) the project manager’s last two country club projects;
and (3) one project the team would like to showcase. This does not preclude
Country Club of Pleasantville from contacting other clients with whom the
team has worked.
14. Submit additional information, not addressed in this questionnaire, that

might be important for Country Club of Pleasantville to consider when evalu-
ating your firm/team (limit to one page).
558 Chapter 13
SHARED TEAM EXPERIENCE

Country Hospitality LEED Delivery: Name: Name: Name: Other
club or certification GC/CM/ PM Designer PE
comparable level DB
project
Team
member
name:
Project
name:
Sample Yes Yes Silver GC
Signature: __________________________________________________
Title: ___________________________________________
Date: ____________________
Determining the Entertainment Needs of 1. Identify ways to determine the
Club Members entertainment needs of a club’s
Auditioning and Interviewing members, summarize the importance
Club Members Who Book Their Own of auditioning and/or interviewing
Entertainment entertainment acts, and discuss issues
Themed Events that might arise when club members
Musical Entertainment book their own entertainment.
Strolling Entertainment (pp. 561–565)
Event Bands 2. List common types of entertainment
The Business of Purchasing Entertainment available for a club. (pp. 565–569)
Talent Agencies
Purchasing Pointers 3. Describe the important factors of
Event Producers/Planners purchasing entertainment for the club.
Other Entertainment Resources (pp. 569–573)
Entertainment Contract Negotiations 4. Identify the essential factors of
Licensing contract negotiations and licensing.
Public Performance or Performance (pp. 573–575)
Rights
Blanket License
Conclusion
14
Managing Entertainment
in Clubs
This chapter was written and contributed by Kathleen S. Nelson, Ph.D.,
CSEP, CMP; and Daniel E. Nelson, CSEP, CMP.
It is 4:30 in the afternoon on the best-attended member-guest tournament week-

end in the history of the club. Members of the kitchen staff are working themselves
to death and you are managing the event staff and volunteers, overseeing every-
thing from posting the incoming team scores to setting the tables for the overflow
dinner crowd. The stage is set for the band and—wait a minute! Where, exactly,
is the band? The band members were supposed to have arrived for set-up thirty
minutes ago. You bolt for your office to grab the contract and find the telephone
number of the band leader, so you can call to find out where they are and when
they will arrive, not to mention whether they will be ready to play for the cocktail
reception before dinner. Your cell phone rings before you can place the call. The
leader says there is a florist truck blocking the loading dock and asks you to find
someone to move it so they can load in. Whew! Dodged another bullet! Back to
dressing the tables!
Providing outstanding entertainment opportunities for members should be
at the heart of a private club’s mission, because a successful entertainment pro-
gram will increase member participation in the club, increase member satisfaction
with the club, add perceived value to a club membership, and ultimately help to
improve the financial position of the club.
Many types of events and entertainment take place at a club. Sports-related
entertainment, such as golf or tennis tournaments, as well as various parties and
other social events are planned by the club’s general manager, entertainment com-
mittee, or social/house committee. These events are placed on the club’s yearly
entertainment calendar and include holiday parties, dances, and so on.
In this chapter we will focus on the special events that are part of the club’s
entertainment calendar, whether planned by the club’s general manager, club
committees, or outside producers/planners. More specifically, we will discuss how
club managers can assess a club’s entertainment needs, and acquire and manage
entertainment for special events held at the club.
561
562 Chapter 14
Determining the Entertainment Needs of Club Members

Few things are as satisfying as throwing good parties for friends, which is essen-
tially what a club’s entertainment committee does. The club’s entertainment com-
mittee can help the general manager understand the entertainment needs of mem-
bers. Members of the entertainment committee represent the general membership
and are often creative, resourceful, and hard-working. They bring to the commit-
tee their own ideas about what types of entertainment would be well-received at
the club, but they also listen to ideas and suggestions from other club members.
While the entertainment committee can be one of the most challenging club com-
mittees to serve on, it also has great potential for providing committee members
with a strong sense of fulfillment.
An event’s theme will dictate the entertainment. Sometimes the entertain-
ment committee will know what entertainer it wants for a particular special event.
Sometimes it is a club’s tradition to choose a particular entertainer to perform at
a certain event. For example, a popular local band might always play at the Presi-
dent’s Ball. However, at other times the committee might only have a general idea
of what type of entertainment it wants, or may not even have it narrowed down
that far. At such times the committee looks to the club’s general manager for guid-
ance and suggestions.
If it is up to the general manager to suggest an entertainer or entertainment
act for a special event, the manager should first have conducted a basic needs
assessment. Dr. Joe Goldblatt, CSEP, suggests utilizing a Five W’s model to accom-
plish this goal:1
1. Why? Why must this event be held? What is the compelling reason for it?
2. Who? Who will benefit from the event and who will they want to attend?
3. When? When will the event be held, and are the date and time flexible?
4. Where? Where is the best location?
5. What? What resources are required to satisfy the needs identified in the first
four questions?
Once these questions have been answered, you can move on to the “how.” How
do you effectively research, design, plan, coordinate, and evaluate the event?
Auditioning and Interviewing

Ideally, a general manager who is considering booking an entertainment act
should see the act perform in front of a live audience whenever possible. Unless
the manager already knows about the entertainer (either because the entertainer is
well-known or is a local entertainer whom the manager has seen perform before),
the manager should audition (either in person, by DVD, or streaming video on a
website) the entertainment before booking the act. There is too much at stake to
take a chance on an unknown entity.
If the entertainment act is not local, the manager should always request to see
the entertainer’s promotional packet. A promotional packet should include the
following:
Managing Entertainment in Clubs 563
Insider Insights
Dr. Cathy Gustafson, CCM
Associate Professor, University of South Carolina
Former General Manager of The Faculty House of Carolina,
Columbia, South Carolina
“Entertainment” can be defined as anything over and above what a club member
comes to expect. For example, it can be something as simple, yet memorable, as giv-
ing roses to women who come to the club on Valentine’s Day. Entertainment covers
a wide range of activities. It can be interactive for members (such as a gaming night)
or passive (such as listening to live music during dinner).
Most clubs have a house committee that oversees club entertainment as part of
its duties; some large clubs have an entertainment or social committee set up just for
entertainment. Whichever committee is in charge of entertainment, it is the commit-
tee’s job to create member enthusiasm and be the driving force behind the special
events held at the club. Committee members should represent a cross-section of the
membership. Ideally, you should have some older, some younger, some retired, and
some professional members on the committee. The committee either generates or
(more typically) approves the general manager’s ideas for special events. Especially
at clubs where the general manager has been employed for many years, the commit-
tee usually merely reviews and approves a detailed calendar of club special events
that the general manager puts together.
Over time, the manager learns what types of events the members enjoy and sup-
port. When there’s a new general manager, the committee will take more leadership
in planning special events.
As a club manager, you want your members to feel that their club member-
ship is a valuable asset. Special events are very visible ways a club can demonstrate
to members that their membership is valuable. They couldn’t participate in these
events if they were not a member. It builds a cohesive group. A significant amount
of a club’s budget is set aside to offset the costs of special events. Members usually
pay something to attend, but such fees rarely cover the event’s cost. A special-event
fee is usually well below market value, sometimes half the cost. In addition, there are
usually a few special events that are completely complimentary to members. Special
events encourage members to visit the club. It’s been shown that once you get mem-
bers accustomed to using the club, they’ll choose to use it more often. If you can’t get
them to use it, they won’t form the habit and eventually they’ll cease to see the value
of their membership.
Once an event’s theme is developed, the manager should book the event’s enter-
tainment. General managers should never book entertainers until they’ve seen them
perform; this is true whether the entertainment is a band, a musician, a strolling
artist, Santa in costume, a balloon artist, whomever. The entertainer’s brochures and
glossy photos can’t tell you whether the entertainer is a good fit for your member-
ship. If you have a conservative membership, an entertainer can’t be too casual or
tell inappropriate jokes. The amount of time entertainers need to set up and break
(continued)
564 Chapter 14
down their equipment, props, and so on should be stated in their contract with the
club. A general manager must know this information in order to properly schedule
an event. The manager also needs to know the entertainer’s equipment and electri-
cal needs; these needs may exceed what’s available at the club. It’s great if clubs can
appeal to both children and adults at the same special event. Clowns, face painters,
and balloon-animal makers are usually hits with children. If you can keep the kids
happy, you keep the parents happy, too. Some special events are planned especially
for a single age group. For example, some clubs have teen nights in which teens can
come to the club unchaperoned.
There’s a fun element to planning entertainment. One club had a fifties prom
night for parents on the night of the high school prom. There was a classic fifties car
out front, all sorts of fifties memorabilia, and members came dressed in poodle skirts,
leather jackets, and other appropriate fifties attire. Where do general managers get
ideas for special events? Talking to other club managers is one of the best ways. Also,
the Club Managers Association of America’s annual Idea Fair has a special-event/
theme-party section that many clubs submit entries to. There are many unique ideas
there that club managers can take back to their clubs.
•• Photos
•• Biographies
•• Press write-ups
•• DVDs
•• CDs
•• Letters of recommendation
•• Website address
Additionally, general managers should ask entertainers for references from
other clubs where they have performed. If possible, the general manager should
call the managers of the clubs on the reference list to get their impressions. The
general manager should ask these managers not only about performance quality,
but also about the performers’ set-up and break-down practices and their treat-
ment of club facilities.
General managers should develop a standard list of questions to be answered
when selecting entertainment for a club special event. Although the majority of
the questions will be the same for each event, there should also be a section on the
questionnaire to allow the general manager to write in questions addressing any
unique elements or requirements a particular special event might have.
When selecting special event entertainment, club general managers should
keep the following guidelines in mind:
1. Never choose entertainment based solely on your personal taste. Many club
members might enjoy an entertainer or type of entertainment you don’t care
for, and vice versa.
2. Choose music that suits the demographics of the expected attendees of the
event.
3. Choose entertainers or entertainment acts with an image that fits your club.
4. Choose acts that will work with you—in other words, acts that are flexible
regarding set-up, volume, size of equipment, and so on.
5. Choose self-contained acts; they are usually a better value. Self-contained
acts supply their own lights and sound.
6. When you purchase entertainment, keep in mind that it is the entertainment
value you should be buying, not the number of bodies on stage. In other
words, club members probably will be more impressed and happy with a
small act featuring two people who are truly entertaining than an extrava-
ganza featuring fifty people who aren’t.
Club Members Who Book Their Own Entertainment

When club members want to plan their own club parties and book the entertain-
ment for the parties themselves, the club’s general manager can provide them with
a member-event worksheet to help them gather basic information helpful in plan-
ning the event. A member-event worksheet could also be incorporated into the
club’s existing banquet event order form.
Club managers should also provide a written set of guidelines to club mem-
bers planning their own entertainment. Such guidelines might read as follows:
•• You are welcome to consult with the club’s entertainment committee and gen-
eral manager concerning entertainment acts, booking agents, event produc-
ers, and themes that have worked well for the club in the past.
•• Feel free to talk with entertainment committee members and the general man-
ager about challenges they have faced when booking entertainment; it may
save you time and grief.
•• Be sure to preview the entertainer or act.
•• Have the general manager review the contract you have with your entertainer
before you sign it.
•• Check with the general manager to make sure that the club’s liability cover-
age and music licenses transfer to you.
•• Ask the general manager about in-house supplies that you might be able to
use at your event, such as centerpieces, lighting systems, sound systems, etc.
•• Please clear all staging, props, centerpieces, and so on with the general man-
ager to ensure that they meet all of the club’s fire codes and other safety
requirements.
Themed Events
Themed events can provide club members with some of their most treasured club
memories. A themed event is simply a party planned around a central theme or
idea. Exhibit 1 contains a list of themes used by a country club in Texas.
566 Chapter 14
Exhibit 1 Sample Country Club Party Themes
Tropical Country/Western
Hawaiian Luau Texas Barbecue
Calypso Party Hayride and Square Dance
Margaritaville South-of-the-Border Party
Gambling Decades
Roaring 20s
Las Vegas Night
50s Night
Atlantic City Showdown
Fabulous 40s
Riverboat Gambling Party
Fun/Miscellaneous
Seasonal
Murder Mystery
Oktoberfest Disco Night
Winter Fantasy Shakespearean Festival
Spring Fling Comedy Showcase
Cities Beatlemania
Streets of San Francisco Evening at the Opera
I Love New York Sports
Boston Sea Party World Series
Holidays Super Bowl
Around the World
St. Patrick’s Day Irish Bash
African Safari
Christmas Around the World
Evening in Paris
Stars and Stripes Party
Ride on the Orient Express
Seafood
Wine Tasting
Lobster Bake Chateau Country
Seafood Jamboree Sonoma County
Ports-of-Call Party Italy’s Finest
Source: William Schulz, Houston Country Club, Houston, Texas.
Advantages of using a theme include the following:

•• It unifies the team. When the goal is clear and the design is clearly laid out,
it leaves less room for critique. Decisions are made, plans are laid, and the
group moves forward. The stakeholders in your club, from staff through vol-
unteers, have a clear goal in sight.
•• It communicates strong vision. A strong vision is always important for a new
event; however, legacy/perennial events need focus as well. Themes, whether
dictated by holidays or benchmark social/lifetime events, give direction and
purpose to the participants.
•• It drives the buy-in process. In a first-time attempt at a themed event, you are
open to more random ideas and well-intentioned criticism. The more distinct
the purpose and theme, the smoother the path to success will be. Someday,
your first attempt may turn into a club legacy and repeatable celebration.
Musical Entertainment
In order to mitigate challenges that often occur when dealing with live performers,
clubs should create a handout that includes rules and guidelines to ensure a win-
win experience for all involved. This handout should be very specific and given
to the entertainers well in advance of the performance. Below are some industry
standards pertaining to the “care and feeding” of performers.
Performance Time. The standard in the entertainment industry is for a band to
perform for forty-five minutes and then take a break. A band sitting on stage play-
ing “chaser music” (providing music while speakers are placed on or removed
from the stage, for example) is still considered to be working. If the band is on
stage, it is working.
Break Time. The standard for break time in the entertainment industry is fifteen
minutes for every forty-five minutes of playing time. If a club’s membership likes
to interact and socialize with the band, it is fine to have band members milling
about, relaxing next to the stage, or joining guests at their tables if invited. If you
would prefer they not “hang with the members,” be specific about the area you
wish them to inhabit. If you don’t have room for a separate break area, set up a
“band table” in an out-of-the-way location.
Set-Up Time. Make sure that the special event’s production schedule allows ade-
quate time for load-in, set-up, and sound check for all entertainers. Be advised that
bands and most entertainers come with road cases for their equipment and will
be using several carts. If you don’t want them visible, you will need to provide
a secure area to store these carts and cases that is removed from your attendees’
view.
Beverages. Clubs can set guidelines for beverages consumed by musicians while
performing. For example, a club can stipulate that no alcoholic beverages be con-
sumed. The club must provide beverages of some type for the performers and
should clearly define the method by which the band members receive the bever-
ages. For example, is it permissible for the band to go to the bar for water, soda,
and juice? What is the policy if a guest invites a band member to sit at his or her
table to have a drink?
Food. Clubs should provide food for the band. Generally, clubs provide a cheese
and sandwich tray or similar food items backstage. If there is a band table, some
clubs invite the band to eat from the buffet during a break and after the club mem-
bers have been served.
Smoking. Band members should follow the club’s smoking guidelines.
Crew. Crew members should remain in the backstage area when not performing
duties. Crew members must adhere to all rules set for the band. Many times there
568 Chapter 14
is no “backstage area,” it is just a stage against the wall in your ballroom. You
either pipe and drape an area next to the stage and create a break room, or give
crew members some other place to go when not actively working.
Entourage. Club managers shouldn’t have to deal with girlfriends, boyfriends,
and wives or husbands if they are booking local acts. Our advice is to prohibit the
entertainers from bringing ancillary people. The exception might be a traveling
group or big-name entertainer traveling with family, friends, crew, road manag-
ers, bus drivers, and the like. Club managers will need to find space for these
extra people and be sure they are provided with a list of the same rules set for the
entertainers.
Security. Make sure the club’s security department has been alerted about the
band. Give security a copy of the special event’s production schedule and a list of
all band, entourage, and crew members.
Parking. Advise parking attendants and band members where to park band
vehicles.
Loading/Unloading. Advise security, parking attendants, and band members
where to load into your venue. Consider supplying a site map with these areas
clearly marked.
Strolling Entertainment
When people are standing at a welcome reception, having an intermission from
a larger non-entertainment program, or attending an event scattered over a large
area or in multiple rooms, you will most likely see strolling entertainers. This tech-
nique takes the entertainment to the attendee and rotates the performers, offer-
ing an ever-changing variety show. For attendees who like to walk about as they
mingle, small interactive stations offering a wide range of talent keep your group
amazed and amused.
A popular form of entertainment—strolling or otherwise—is magic. A good
strolling magician will be adept at mingling with the crowd and performing short
sets of close-up magic for small groups of people, usually three to ten at a time,
and moving on to another part of the room. Strolling magicians will work out of
their pockets with a likely emphasis on cards and coins. Some magicians will con-
centrate on impromptu props as well, such as spectators’ rings, napkins, rubber
bands, or paper money.
Though magic is a reliable staple of the strolling and variety market, the range
of strolling performers has expanded over the past ten years to include every-
thing from cirque-style ball walkers and jugglers to fire-eaters. The following list
of strolling entertainers includes the tried and true and a few of the quirky (shop
around; you may be surprised):
•• Attitude girls. These performers are dressed in colorful costumes to pose for
photographs and ignore (yes, ignore) your guests. They are so vain that they
scramble to pose and be photographed when opportunity arises.
•• Caricaturists. These talented, costumed artists provide a wonderful souvenir
for members.
•• Masked characters. These beautifully garbed and masked commedia dell’arte
characters enchant and encourage guests to revelry, recreating the Italian
street theatre of the Renaissance.
•• Mechanical men. These costumed characters will “freeze pose” and perform
an occasional movement to intrigue and greet guests. They provide a great
photo opportunity.
•• Face painters. Costumed artists paint guests’ faces with event-pertinent art-
work, such as free-hand designs, flowers, hearts, fish, palm trees, music-
related art, shells, biker art, etc.
•• Fire eaters. These entertainers eat fire, touch flames to their bodies, juggle fire,
and may even blow flames six to ten feet from their mouths! (Check your ceil-
ing heights and open-flame permits before allowing fire eaters inside the club,
or keep them outside.)
•• Flair bartenders. These performers include male and female bartenders who
spin, toss, juggle, and manipulate bottles, and mix drinks too! Many providers
of this service are able to set up a champagne fountain and perform around it
as it is filled. (A champagne fountain consists of champagne glasses stacked
in a pyramid shape and filled from the top, creating a cascade of champagne.)
•• String quartets. A string quartet typically includes two violins, a viola, and a
cello to play a selection of classical Old-World type background music. It may
include fancy Old-World costuming, but themed costumes usually cost extra.
A generic quartet most often includes classy, black evening attire.
Remember that in order to be enjoyed, the strolling performer will need to be

heard and seen. That means soft background music will work best in conjunction
with strolling magicians and mentalists (loud music could restrict your perform-
ers’ audience size to only one or two people at a time). Lights can be low for ambi-
ence, but should not be so low that the performers’ effects cannot be clearly seen.
Event Bands
When choosing a band, a popular option is to bring in a band from outside your
area that makes its living exclusively playing for corporate and high-end private
special events. Most of these highly rehearsed event bands have various costumes
and choreographed shows, and are top-notch cover bands, playing the best in
party/dance music. Booking an event band is usually a more costly option, but, if
the band carries its own sound and lights, the band’s cost might be comparable to
an upper-tier local act that requires you to provide production. If it is your biggest,
most important party of the year, an event band could be worth the extra money.
The Business of Purchasing Entertainment

One of the decisions club general managers face when looking for special event
entertainment is whether to search for entertainment on their own, utilize a talent
agency, or avail themselves of the services provided by an event planner/producer.
570 Chapter 14
Spotlight: A Club Entertainment Specialist

In an interview with the authors, talent agent Larry Weaver was asked how he began
to include a focus on private clubs in his business plan. He responded by telling of his
sixteen years’ experience in the business of entertainment and how often he found
himself providing services to clubs. He went on to say he felt this was an underserved
part of the industry (there are more than 200 clubs in his North Carolina region). He
commented that he felt he had experience that would be beneficial to club managers
and event planners/producers that provide services for clubs.
Weaver’s website (www.larryweaver.
com) has video and audio samples of
songs for bands and performances
from other entertainers to help man-
agers begin the selection process
right on the website. The following
is an excerpt from the site, giving
introductory information and a form to
initiate the search, pricing, and con-
tracting process with his company.
I need entertainment! Where do
I begin?
You’re in the right place. On this web-
site, you’ll find everything you need to
make a confident, informed booking
decision. We provide bios, sound
clips, references, reviews, photos, and
promotional materials. Anything that
you need is just a mouse click away.
In addition, we’re happy to answer
your questions and make recom-
mendations via e-mail. Once you’ve
chosen your entertainment, we’ll
negotiate the best price and issue
the contracts. You’ll sign and return
the contracts along with a deposit
to hold the date. Once the artist has
returned the contracts, we’ll mail you
a completed copy to finalize the book-
ing process.
Will I need to provide sound/
staging/lighting?
Many of our acts can provide their
own sound system and lighting for
most small to medium-size venues.
In this case, we will provide pric-
ing quotes for you which include all
necessary production. For events
that require a more elaborate setup,
we can recommend many excellent
production companies.
Talent Agencies
Talent agencies are regulated by state laws. These laws often include the type of
business license required as well as parameters for collecting commissions from
the acts they represent. Regional talent agencies represent talent within a relatively
small geographic area, while national talent agencies such as William Morris, Cre-
ative Artists Agency, and International Creative Management represent name tal-
ent from across the country. (“Name talent” refers to nationally recognized acts.)
Agencies earn their money by collecting commissions from the entertainers or acts
they book. For example, the standard commission for booking bands that perform
in clubs on a weekly basis is 15 percent. The commission an agency receives for
booking a special event is often much higher (20–25 percent). When an entertainer
or entertainment act signs an exclusive agreement with an agency, the entertainer
or act must pay the agency a commission on any job worked. Many agents special-
ize in certain categories of entertainers, such as singers, dancers, musicians, look-
a-likes, specialty acts, DJs, or name entertainers.
Some of the advantages of working with a talent agency include the following:
•• The agency acts as a liaison between the club and the entertainer.
•• One source can provide the club with many performers.
•• The agency will have promotional materials for its entertainers (video- and
audiotapes, biographies, press write-ups, publicity pictures, and so on) avail-
able for review.
•• The agency will be familiar with the acts it represents and should be able to
help general managers select only those acts that are appropriate for their
clubs.
•• If an entertainer becomes ill prior to an event, the agency should be able to
provide a replacement.
The biggest disadvantage of booking entertainment through a talent agency is that
an agent will give first priority to acts contractually bound to his/her agency. At
times, this limits the club’s entertainment choices.
Purchasing Pointers
What follows are some pointers for purchasing entertainment:
•• Contracts. It is not always enough to place an order and pay an invoice when
booking entertainment. Clubs have to address issues like performance times,
set-up time, overtime, liability, insurance, mode of dress, inclement weather if
outdoors (contingency plans are a must), sickness, no-shows, method of pay-
ment, and a myriad other details, especially if the talent is a name act.
•• Cost. It is said that the difference between a $1,000 band and a $5,000 band is
someone willing to pay $5,000 for a band. Managers have to do their home-
work to be sure the club is not paying too much.
•• Trust. If you have been burned in the past, it may be difficult to trust an
agent or bandleader ever again. You should move on and again do your
572 Chapter 14
homework, get some referrals, see some acts yourself, and ask the few you
like how much they charge. There may be an agency in a larger metropolitan
area with multiple agents who handle different specialties. It is easy to find
out about agencies and agents simply by asking around the entertainment
community. Those feeling they were wronged are quick to divulge the gory
details.
•• Negotiation. It takes some experience to know when it is okay to try to negoti-
ate a better deal and when it isn’t, but it usually doesn’t hurt to ask.
Event Producers/Planners
Club managers may also use an event producer/planner to acquire entertainment.
An event producer is an individual or company that provides everything needed
for an event, including the technical production elements. Event planners, simi-
lar to meeting planners, coordinate the elements of an event. The closest thing to
turnkey service is to utilize event producers/planners. Both event producers and
planners can provide you with everything from décor to big-name entertainment.
If they are experienced, event planners/producers can be a tremendous help to
club managers. Depending on the depth of their skills, they can be of assistance in
designing a site plan, deciding on and executing a theme, acquiring entertainment,
providing staffing, and facilitating on-site management of the myriad details that
comprise a terrific special event. As an added bonus, they usually carry $2 million
worth of liability insurance.
Of course it will cost more money to employ a planner or producer, because
you are adding another layer to the financial mix. The services you can book your-
self are now being booked and managed by an event professional. Event plan-
ning and production companies make their profit by marking up the services they
provide. If the company owns its own décor, sound, lights, etc., it can be cost-
competitive, but you will need to ask about the depth of its in-house stock and
capabilities. In short, is it brokering other companies’ services or is it providing
you with things it owns?
Other Entertainment Resources

Besides talent agencies and event producers/planners, other sources for special
event music and entertainment for clubs include the following:
•• American Federation of Musicians (a union for musicians)
•• Bars, nightclubs, restaurants, and taverns
•• Club members (as entertainers or as leads to find entertainers)
•• Fraternal organizations
•• Theater groups
•• Colleges and universities
•• Churches
•• Dance conservatories
•• Industry publications such as Billboard, Variety, Pollstar, Special Events, and
Event Solutions
•• Local nightclub listings
•• Entertainment websites
Entertainment Contract Negotiations

Once an entertainer is chosen, the club must sign a contract with him or her. If
the general manager isn’t experienced with entertainment contracts and contract
riders, he or she should ask the club’s legal counsel to review all entertainment
contracts before anyone signs them.
An entertainment contract should include:
•• The club’s name, address, phone number, fax number, and the club manag-
er’s cell phone number.
•• The name of the entertainer or entertainment act and all contact information,
including the band leader or agent’s cell phone number.
•• The type of act (band, magician, dancers, etc.,) and the number of performers.
•• Transportation and lodging expenses (if the entertainer or act is from out of
town).
•• The room, tent, patio, parking lot, or bar where the entertainment will take
place. (Be specific. If it is a room, give the name of the room.)
•• Performance times (date, time, and length of performances)—for example,
“on June 10, 20XX, from 8:00 p.m. to 11:00 p.m.”
•• The set-up time and sound-check window. (When must they stop checking?)
•• Payment procedures and overtime policies. Most entertainment contracted
for a single performance is paid on the day of the performance at the comple-
tion of that performance, in cash or by company check. Some entertainers
require a 50 percent deposit, with the balance paid as stipulated above. Over-
time pay is usually a prorated amount based on the initial agreed-upon fee.
For example, assume that a band contracted for three hours and paid $600 for
those three hours is asked to perform longer. If the band plays for more than
one-quarter-hour extra, the extra billing is for one full hour, which in this case
would mean $200 for the extra hour.
•• A cancellation clause. Under what conditions and with what notice can the
performance be canceled? (Clubs should have event insurance. Club manag-
ers should contact their insurance agent if theirs doesn’t.)
•• An indemnification clause. (Club managers should consult with the club’s
attorney about the indemnification clause and hold-harmless clause.)
•• Rider requirements.
Clubs that book name entertainment should pay very close attention to the
rider attached to the contract. A rider is the part of the contract agreement that lists
574 Chapter 14
additional terms and conditions. A rider usually includes support elements that
are important to the entertainer, such as sound, stage, and lighting requirements.
It also includes all backstage amenities for the entertainer. These can get very spe-
cific and somewhat strange. For example, one rock band insists that its backstage
M&M candy be free of brown M&Ms; another entertainer requires at least one
World Wrestling Federation action figure in his dressing room. Entertainers say
that they include these types of requests in their riders as an easy way for them to
check whether the purchaser has read every line of the contract.
It is important to note that an act’s rider requirements can sometimes cost
more than the performance fee itself. Club general managers must keep this in
mind when selecting entertainment, especially big-name entertainment. When a
booking agent quotes a price for name entertainment, it is a “performance price”
and does not include the cost of the rider requirements. Therefore, a club should
have the booking agent or entertainer (if independent) fax over a copy of the rider,
and someone at the club should cost out the rider requirements before the club
makes a formal offer.
Although musician unions used to be a fairly important part of negotiating
an entertainment contract, today their influence varies depending on the location
of the club and the strength of the union in that area. The musicians who are most
likely to use American Federation of Musicians (AFM) contracts are musicians
who play for symphony orchestras. To be on the safe side, however, club managers
should check on the strength of the AFM in their area before booking musicians.
Licensing
Clubs must be careful about licensing issues when using music. Copyrighted
music should not be performed or broadcast in public without the permission of
the copyright owner. A “public performance of music” is defined as music played
for third parties by almost any means, including compact discs, cassettes, records,
videos, live musicians, telephone hold music, jukeboxes, and radio or television
music played over a commercial system.
Under U.S. copyright law, protected material can be used only after permis-
sion is obtained from the copyright owner. In the case of copyrighted music, the
permission is customarily given by the granting of a license. Music licensing agen-
cies such as the American Society of Composers, Authors and Publishers (ASCAP)
and Broadcast Music, Inc. (BMI) collect performance royalties from people who
use music in a public setting, and pass the royalties on to the composers, song-
writers, lyricists, and publishers of the songs that are used. ASCAP and BMI also
distribute awards, lobby Congress, sue infringers, and promote music scholar-
ships. As businesses that often have recorded or live music for special events, clubs
should obtain license agreements with music licensing agencies. Clubs can contact
ASCAP via the Internet at www.ascap.com; BMI’s Licensing Department can be
contacted via the Internet at www.bmi.com.
Public Performance or Performance Rights

A public performance is one that occurs “in a place open to the public or at any
place where a substantial number of persons outside of a normal circle of a family
and its social acquaintances is gathered.” A public performance also occurs when
the performance is transmitted by means of any device or process (for example,
via broadcast, telephone wire, or other means) to the public. In order to perform
a copyrighted work publicly, the user must obtain performance rights from the
copyright owner or his representative.
Blanket License
A blanket license is a license that allows the music user to perform any or all of
the eight million musical works in ASCAP’s repertory as much or as little as they
like. Licensees pay an annual fee for the license. The blanket license saves music
users the paperwork, trouble, and expense of finding and negotiating licenses
with all of the copyright owners of the works that might be used during a year
and helps prevent the user from even inadvertently infringing on the copyrights
of ASCAP’s members and the many foreign writers whose music is licensed by
ASCAP in the United States.
You do not need to be a licensing expert, but you should check on the license
held by your club. If you do not have one, contact your ASCAP regional represen-
tative to find out what is prudent for your club.
Conclusion
A club’s general manager needs to be the “club pro” in the entertainment and
events area to ensure safe, successful events, while respecting input from valu-
able in-house and outside resources. The entertainment/event element of a club
manager’s job can be especially fulfilling, because when he or she has put together
or helped put together a special event and the event is successful, the result is
unmistakable and the gratification immediate. There is much to learn, but if club
managers can remain focused, stay calm, and plan well, their clubs will have many
years of successful celebrations.
Endnote
1. Joe Goldblatt, Special Events: Event Leadership for a New World, 4th ed. (Hoboken, N.J.:
Wiley, 2005).
Key Terms
blanket license—A license that allows a music user such as a club to perform all of
the musical works that the American Society of Composers, Authors, & Publishers
(ASCAP) holds.
entertainment committee—A group of volunteers from the club’s general mem-
bership that brings its ideas and expertise to club entertainment planning.
self-contained acts—Entertainment acts that provide all of their own costumes,
lighting, sound, and other elements necessary for their acts.
talent agency—A business that represents entertainers by booking them and han-
dling contracts and payment.
576 Chapter 14
Review Questions
1. Where can a club’s general manager turn to for advice about types of enter-
tainment that would be well-received at the club?
2. What questions are asked in a basic entertainment needs assessment?
3. How should a club manager proceed with an entertainment group or act that
he or she is unfamiliar with?
4. What type of guidelines might help club members who book their own enter-
tainment?
5. What are the advantages to using themes for parties?
6. What are the industry standards for the “care and feeding” of performers?
7. What are some common forms of strolling entertainment?
8. What are some professional sources a general manager can turn to when pur-
chasing entertainment?
9. What elements should an entertainment contract contain?
10. What licenses need to be secured for musical performances?
Internet Sites
American Society of Composers, Authors and Publishers
www.ascap.com
Broadcast Music, Incorporated
www.bmi.com
Dan Nelson Productions: Special Events and Entertainment
www.dannelsonproductions.com
Applause Productions
www.applauseproductions.com
Entertainment Agencies for Weddings
www.allweddingcompanies.com/entertainment/agencies/index.html
Party Directory
www.partydirectory.com/guide/ptytheme.htm
Party Planner Online
www.partyplanneronline.comAppendix A:
Appendix A:
Sample Name Artist Performance Contract

CAA
COUNTRY ARTISTS AGENCY, INC.
NASHVILLE, TN
(555) 123-4567
AGREEMENT made this _____________ day of [month], [year] between “Name”

Country Artist hereinafter referred to as “ARTIST,” and Ben Malcom
Productions hereinafter referred to as “PURCHASER.”
It is mutually agreed upon between the parties as follows: The PURCHASER

hereby engages the ARTIST and the ARTIST hereby agrees to furnish the enter-
tainment presentation hereinafter described, upon all the terms and conditions
herein set forth:
1. Name and Address of Place of Engagement: Old Fashioned Hoedown at the
ABC Club.
2. Date(s), Starting and Finishing Time of Engagement: Thursday, August 20,

20XX—Show starts at 6:30 p.m. and ends at 9:00 p.m.—Artist to perform one
complete show.
3. Type of Engagement: Open Air Concert–No Admission Fee.
4. Additional Provisions: Artist to receive 100% Top Headline Billing and close
show. Purchaser is to provide and pay for first-class sound and lights per Art-
ist specifications. Purchaser is to provide and pay for support talent, subject
to Artist’s approval. Artist is to be paid in full in event of inclement weather.
Purchaser to pay and provide for backline equipment, local ground transpor-
tation, and 12 hotel rooms for 2 days.
5. Compensation Agreed Upon: $20,000.00 FLAT GUARANTEE.
6. Purchaser Will Make Payments As Follows: All payments shall be paid by

Certified Check, Money Order, Bank Draft, or Cash. DEPOSITS: $10,000.00
shall be paid by PURCHASER to COUNTRY ARTISTS AGENCY, INC., as
agents, not later than July 20, 20XX. BALANCE of Guarantee to be paid in
United States Currency by Purchaser to Artist no later than the end of the
performance, on the evening of engagement. All payments shall be made in
full without any deductions whatsoever.
7. Riders Attached Hereto Are Hereby Made a Part Hereof.
8. If Artist is Headlining this Engagement: “All Support Talent is Subject to Art-

ist’s Approval.”
578 Chapter 14
9. If Artist is the “Supporting Act” of this Engagement: “Artist’s Performance is

Subject to the Appearance and Approval of the Headliner.”
10. No performance on the engagement shall be recorded, reproduced, or trans-
mitted from the place of performance, in any manner or by any means what-
soever, in the absence of a specific written agreement.
11. The agreement of the musicians to perform is subject to proven detention by
sickness, accidents, riots, strikes, epidemics, acts of God, or any other legiti-
mate conditions beyond their control.
“Name” Artist (ARTIST)

By: __________________________________ Date: ___________________

Ben Malcom Productions (PURCHASER)

By: __________________________________ Date: __________________
Address: 1234 Street Name

City, State 12345
Phone: (555) 987-6543
Appendix B:
Sample Production Schedule
.MASTER PRODUCTION SCHEDULE
Start Person Phone
Date Time End Time Task Location Responsible Number Notes
Setup 555-5555
Stage, Mike
Draping TMC Newcomb
and hang Arena and Kevin
9/13/2005 8:00 AM 10:00 AM UNLV sign Floor Coburn
555-5555 Pending
approval
from TMC
staff.
China, Delivery in
Glassware, tunnel
10:30 Flatware Carol behind
9/13/2005 AM 11:30 AM Delivery TMC Newman stage.
TMC Show Biz 555-5555
Arena Lighting-
9/14/2005 8:00 AM 12:00 PM Lighting Floor Dale Meeker
Hang 2 TMC Trade Show 555-5555
Screens & Arena Technical-
9/14/2005 8:00 AM 4:00 PM 2 projectors Floor Jason Hinck
Mirror for Room 555-5555
Sheena's 1012, Hollywood
dressing Star Props,
room Dressing Stephanie is
9/14/2005 9:00 AM 10:00 AM arrives Room contact
Event 555-5555
TMC Designs-Stage
Stage Arena Décor- Ken
9/14/2005 9:30 AM 11:30 AM Décor Floor Hurdle
TMC New World 555-5555
11:00 Sound Arena Audio-Sonny
9/14/2005 AM 1:00 PM setup Floor Maupin
Posh 555-5555
Potties Cox
11:00 Delivery/Se Pavilion
9/14/2005 AM 12:00 PM tup Tunnel Brannen
Delivery - 555-5555
Setup TMC
12:00 Tables, Arena RSVP Party
9/14/2005 PM 2:00 PM Chairs Floor Rentals
TMC 555-5555
Arena Sodexho
9/14/2005 2:00 PM 4:00 PM Set tables Floor Team
Advanced 555-5555
Permit for Entertainment
Fire TMC Services-
Marshall, Arena Pyro- Tom
9/14/2005 2:00 PM 2:30 PM Fireworks Floor Gittens
Furniture 555-5555
Rental for Room
Dressing 1012 Somers, Patsy
9/14/2005 2:00 PM 3:00 PM Rooms &1014 is contact
Source: Dan Nelson Productions.

Part IV
Club Sports
History of Golf 1. Describe the origins of golf and the
Golf Organizations organizations that govern it.
Rules of Golf (pp. 583–586)
Golf Facilities 2. List and describe golf facilities
Golf Course typically found at clubs. (pp. 586–590)
Practice Facility
Golf Shop 3. Identify common programs and
Bag Room services offered at club golf courses.
Golf Car Storage Facility (pp. 590–601)
Maintenance of Golf Facilities 4. Summarize the duties and
Golf Programs and Services responsibilities of golf professionals
Golf Standards and other golf staff members.
Tee Sheet Management (pp. 601–608)
Handicap Systems
Tournaments
Instructional Programs
Caddie Programs
Golf Car Rentals
Golf Staff
Golf Professionals
Other Golf Staff Positions
15
Golf Operations in Clubs
Ph.D., Associate Professor, Georgia State University, Atlanta, Georgia;
with additional contributions for this edition by Blane Merritt,
PGA Professional, Senior General Manager, TPC Southwind, Memphis,
Tennessee; and Michael Leemhuis, CCM, PGA Professional, Chief
Operating Officer, Congressional Country Club, Bethesda, Maryland.
Sports and recreation are driving forces for the existence and success of private
clubs. Foremost among the sports available at many clubs is golf. The golf course
provides rest and relaxation for club members, promotes membership camarade-
rie, and provides competitive interests and spirit within the club. Any manager in
the industry needs to understand the basics of golf operations—even those who
are currently at clubs without a golf course. It is because of the importance of
golf that the Club Managers Association of America has fostered close relation-
ships with the PGA of America and the Golf Course Superintendents Association
of America.
History of Golf
Golf is a very old game. Some trace its ancestry back to the Roman Empire, where
a similar game was called paganica. It was first recorded in 30 b.c. as a generic ball
game; when Roman invaders arrived in Scotland, they were playing the game by
hitting feather-filled leather balls with a curved stick. The goal was to hit a target
using the least number of strokes. Centuries later, the Scots would formalize it,
turning it into the game that people recognize today.
There are also records that a game similar to golf was being played in China
during the Ming Dynasty under the name of suigan. A book of records covering
the time period from a.d. 960–1279 contains a description of the game—played
with jewel-encrusted sticks—as well as sketches. However, the origins of the game
might be even wider than that. England had cambuca, the French had Jeu de mail,
Celts played shinty, Laos had khi, and Belgium had chle. In 1296, the Dutch were
playing a game called “colf,” a word which meant “club.” It is from this word that
the modern name of golf evolved.
In Scotland, golf became so popular that King James II banned both it and
soccer in 1457 because people were playing those two games and neglecting their
preparation and training for war against the English. It was a ban that remained in
place until 1502 when King James IV took up golf. The royal interest in the game
helped it spread, with Mary Queen of Scots introducing golf to France. Legend has
it that the word “caddies” came from her helpers—French military cadets.
583
584 Chapter 15
Exhibit 1 Golf Trade and Professional Associations
American Junior Golf Association National Retail Federation

(AJGA) www.nrf.com
www.ajga.org
National Sporting Goods Association
Association of Golf Merchandisers (NSGA)
www.agmgolf.org www.nsga.org
First Tee Professional Golfers’ Association of

America (PGA)
www.thefirsttee.org
www.pga.com
Hook a Kid on Golf
PGA Tour
www.hookakidongolf.org www.pgatour.com
Ladies Professional Golf Association Sporting Goods Manufacturers
(LPGA) Association (SGMA)
www.lpga.com www.sgma.com
National Golf Foundation (NGF) United States Golf Association (USGA)
www.ngf.org www.usga.org
In 1744, written rules for the game were established by the Gentleman Golfers
of Leith, a club formed to promote an annual competition. The number of holes
were still in flux, with the Society of St. Andrews Golfers taking the course from
anywhere as low as two holes to today’s standard of eighteen in 1764.
The British Empire was also instrumental in the spread of golf, with the first
golf club outside of the United Kingdom being established in Bangalore, India, in
1820 and the Royal Calcutta golf club established in 1834 (evolving from a club
which began in 1829).
Golf Organizations
Exhibit 1 lists some of the major golf trade and professional associations. The three
largest golf organizations that can assist private clubs are the Professional Golfers’
Association of America (PGA), United States Golf Association (USGA), and the
National Golf Foundation (NGF). The PGA Tour is the association for the top male
touring professionals. The Ladies Professional Golf Association is the association
for the top female golf players who play on the professional circuit.
United States Golf Association. In 1894, the United States Golf Association
(USGA) was formed. It oversaw the game in the United States and Mexico, estab-
lishing rules, handicaps, and conducting turf-grass research. The USGA is the gov-
erning body of golf in the United States. This organization develops and modifies
most of the rules and regulations that govern golf play and golf tournaments in
the United States. It also serves as a major sponsor of turf-grass and golf course–
maintenance research.
Golf Operations in Clubs 585
Professional Golfers’ Association of America. In 1916, the Professional Golfers’
Association (PGA) of America was founded. It is now the world’s largest work-
ing sports organization with over 28,000 members. More than 10,000 facilities
throughout the country employ PGA members. It sponsors four premier tourna-
ments each year:
•• Ryder Cup Matches
•• PGA Championship
•• Senior PGA Championship
•• PGA Grand Slam of Golf
The PGA is the primary association for golf professionals who run the busi-
ness side of golf. PGA professionals are experts in areas such as teaching, mer-
chandising, tournament management, and the rules of golf. A primary focus of the
PGA is educating its members and apprentices. The education program for PGA
apprentices is called the Professional Golf Management (PGM) Program. This
program is a three-level program made up of seminars, simulation exercises, self-
study courses, and testing. The PGA also offers a certification program to ensure
that certified golf professionals are not only skilled players but are also well-versed
in the basics of running a successful golf operation. Head and assistant golf profes-
sionals must complete the PGA’s PGM program before becoming PGA members.
There is also the PGA Master Professional certification, which is achieved by golf
professionals with outstanding credentials.
The PGA certifies golf professionals and encourages their professional
development. Its basic certification for golf professionals is achieved through
the Certified Professional Program (CPP), which includes the mastery of general
management competencies (see Exhibit 2) as well as subjects such as golf instruction,
retail sales, golf operations, ownership/leasing, and executive management. The
PGA also has a Master Professional (MP) program.
The PGA has many different member classifications, several of which apply to
private club managers. A1 is a golf professional, A4 is a head golf professional or
director of golf, A8 is an assistant professional, A13 is a general manager, and A16
is a director of instruction.
The National Sporting Goods Association and Sporting Goods Manufacturers
Association. These organizations specialize in the merchandising and manufac-
turing of sporting goods. Both organizations carry a great deal of information
about golf products.
Golf 20/20. In 1994, the World Golf Association was formed to oversee the World
Golf Hall of Fame. In 1999, it initiated the Golf 20/20 program, which brings
together many golf associations and organizations to help advocate and promote
the sport. According to the Golf 20/20 website, its mission is “to align the global
golf community behind initiatives that address the future of golf in a strategic
manner, with an emphasis on accelerating growth in participation and interest,
creating new avenues of access into the game.” It does this through research and
the publication of reports, the sponsoring of programs, and the publication of best
practices and other information.
586 Chapter 15
Exhibit 2 PGA Certified Professional Program General Management Competencies
•• Golf operations •• Managing difficult interactions

•• Assessing performance •• Managing your time
•• Becoming a manager •• Marketing essentials
•• Capitalizing on change •• Negotiating
•• Excel 2000 •• PowerPoint 2000
•• Finance essentials •• Preventing sexual harassment for
•• Giving and receiving feedback leaders
•• Intercultural business etiquette •• Project management
•• Leading and motivating •• Running a meeting
•• Leading a team •• Solving business problems
•• Making a presentation •• Understanding and using contracts
•• Managing crisis •• Word 2000
Rules of Golf
The modern rules of golf are moderated jointly by the USGA and the Royal and
Ancient Golf Club of St. Andrews, Scotland. There are thirty-four actual rules of
golf, recorded in 155 pages. However, the collected decisions on the rules of golf
take up more than 600 pages.
The USGA also publishes the rules in brief on their website, www.usga.org.
Both the USGA and the Royal and Ancient Golf Club of St. Andrews offer three-
day “rules of golf” seminars (as well as advanced seminars), which can help
private club managers gain respect from their members and golf knowledge for
themselves. It also helps them to become a rules expert at the club.
Golf Facilities
The golf facilities at a private club account for approximately 12 percent of a club’s
income.1 Club golf facilities typically include a golf course (or several golf courses),
a practice facility, a golf shop, a “bag room” or golf bag storage area, and a golf
car facility.
Golf Course
Golf courses at private clubs are usually nine or eighteen holes in length, with
eighteen holes being the most common. Each hole on a golf course has a tee box
(the starting or tee-off area), a fairway (the strip of mowed grass between the tee
box and green), the rough (tall grass, weeds, trees, etc. on either side of the fair-
way), and a green (a putting surface with a cup). Some holes have obstacles to
challenge the golfer, such as bunkers (sand traps) and water hazards.
The golf courses at private clubs are used in a variety of ways by club mem-
bers. Some members prefer to play golf just a few times a month for recreational
purposes, while others enjoy the competitive nature of the sport and participate
in the club’s tournaments and other structured golf activities. Parents may enroll
their children for golf lessons. Members may also play rounds of golf with busi-
ness associates. The average club golf course supports 25,768 rounds of golf per
year.2
The first tee times of the day will start at approximately one hour after sunrise
at most clubs. On some days the starting times may be pushed back to allow the
grounds crew to complete its regular maintenance duties. The crew needs time
to mow the tee boxes, fairways, and greens; rake the bunkers; and perform other
maintenance duties before members play. The crew can usually stay ahead of the
players if it is given time to complete maintenance on the first three or four holes
before the first players are allowed to start. Many clubs do not allow play on Mon-
days so that the grounds crew can perform major maintenance duties.
Clubs usually restrict the times that guests of members can play golf, limit the
number of times guests can play per month or per year, and stipulate who is to be
considered an out-of-town or in-town guest when golf course usage is restricted to
in-town guests. At the time of check-in at the golf shop, members should register
their guests and sign the charge slip for the guest fee.
During the week, many clubs designate time periods when the course is open
for play only to organized club groups. For example, the club’s juniors may have
an organized activity on a weekday right after school.
Practice Facility
The practice facility or practice range is an area designated for members to prac-
tice hitting a variety of golf shots. The practice facility should be located near the
first tee so that it is easy for members to move to the golf course after practicing.
The practice facility should be situated so that no stray balls are hit onto the golf
course or into other areas where members and guests may be. The club should
install protective netting if there is a possibility of an errant shot striking someone.
A club may have a practice putting green and bunker near the practice facility for
members to practice their putting and sand game.
The practice facility is a very important part of the overall golf experience and
should never be just an afterthought. There are some members who will use the
practice facility more than they will the golf course. The practice facility, therefore,
deserves the same attention that is given to the regular course. At a minimum, the
practice facility should have bag stands, divot sand, water coolers, club cleaning
equipment, and guide ropes.
The practice facility staff should set up all practice equipment at the begin-
ning of the day and store it at the end. Collecting and washing the range balls
should be performed at the end of the day, or during the day when there is heavy
usage. A quantity of range balls should be bagged or bucketed ahead of time so
that members do not have to wait for them. Range balls should be replaced often.
The practice facility may have mats made of artificial turf or some other synthetic
material for members to tee off from during inclement weather. Bag stands in the
588 Chapter 15
Exhibit 3 Recommended Percentage of Golf Apparel in the Golf Shop
Men Women Junior

Shirts 43% Blouses 31% Shirts 65%
Sweaters 25% Sweaters 25% Shorts 20%
Slacks and shorts 20% Slacks, shorts, Sweaters 15%
Socks 5% and skirts 20%
Outerwear 5% Accessories 10%
Miscellaneous 2% Outerwear 3%
Socks or PEDS 2%
practice area allow members to stand their bags up while practicing. Benches
allow members to rest while waiting for partners.
Golf Shop
Merchandise in the club’s golf shop can be owned by the head golf professional or
the club; there are almost as many arrangements and contractual agreements as
there are private clubs. In many clubs, the head golf professional owns the mer-
chandise and pays rent for the shop space. In some clubs, instead of rent, the golf
professional pays the club a percentage of the profits from the golf shop. The num-
ber of golf professionals who own the shop inventory is declining.
Golf professionals who own their merchandise usually must secure credit to
purchase their inventory, fixtures, and displays. When the golf professional owns
the golf shop merchandise, the club should require him or her to carry liability and
property insurance.
The golf shop should be well-stocked with items that the members want.
These typically include golf clubs and head covers, golf bags, golf balls, golf
gloves, assorted apparel (men’s, women’s, and junior), golf shoes and hats, and
miscellaneous golf-related items (videos, books, glassware and other souvenirs
with a golfing theme, and so on). Exhibit 3 lists golf-apparel guidelines provided
by the PGA. Golf-related services include repairing, regripping, reshafting, and
refinishing golf clubs. These services are sometimes contracted out to third parties.
The items carried in a club’s golf shop should be of high quality. Because the
golf shop deals with a relatively unchanging clientele, displays should be changed
regularly (as often as every two to four weeks).
Some golf shops have a cost-plus program, whereby a member pays a fee to
join the program and then pays only the golf shop’s cost for merchandise plus a
set percentage. One example of a cost-plus program is referred to as the Mill River
Plan; under this plan, a member can purchase merchandise at cost plus 10 percent
after paying a once-a-year fee of $100. Among club golf shops, approximately 20
percent operate under this plan.3
Instead of receiving prizes or trophies in tournaments, winning golfers may
receive a line of credit at the golf shop. This helps to move merchandise and
increase sales. Other ways to increase sales include having a strong club-demo
program (in which members can try out golf clubs before buying them) and mak-
ing sure that the golf professionals use only club models that are carried in the golf
shop while playing at the club. Custom-fitting golf clubs is a special service that
the golf shop can provide to members that will also help increase sales.
A good source for information on merchandising items in golf shops is the
AGM Merchandising Manual. This manual covers sales analysis, merchandise-
buying programs, inventory-control procedures, and sales techniques.
Bag Room
Members typically have the option of storing their golf bags at the club. The bag
room, where the golf bags are stored, is usually located close to both the golf shop
and the area where members pick up their golf cars. The bags and racks need to
be well-organized and numbered. Any club staff member, including the general
manager, should easily be able to find any bag. Rolling racks are available that
allow clubs to store more bags in a more organized fashion.
Golf professionals should train golf staff in the bag room to greet golfers as
they arrive and as they leave. It is crucial that these staff members display enthusi-
asm, excitement, and personality. They have the opportunity to make key first and
last impressions. Members who store their bags at the club should have their bags
placed on golf cars approximately one hour before their scheduled tee times. The
bag room staff should notify the golf shop concerning which car each member’s
bag was placed on. Golf staff members (usually bag room attendants or caddies)
should monitor the bag pickup area near the parking lot so that when members
who do not store their clubs arrive or when their guests arrive with clubs, staff
members can carry the golf bags from the automobiles.
After members finish play, staff members should take the golf bags to the
members’ cars or to the bag-storage room if the bags are stored at the club. If a
member’s bag is stored at the club, bag room attendants should clean and dry the
bag, club heads, grips, and shafts before returning the bag to its storage area. All
bags should be tagged with the member’s name and identification number. If the
staff member cleaning a member’s clubs notices that a repair is needed, a note
should be left on the club or bag recommending the repair and advising that the
pro shop can perform it for the member. All bags should be entered into an inven-
tory system. The club’s general insurance policy should be checked to ensure that
it covers any damage to or loss of member items stored in the bag room. One item
to note here is the importance of proper documentation in the bag room for billing
purposes. The golf shop and the accounting department should do periodic audits
to ensure that all the users of the bag room are getting charged.
Golf Car Storage Facility

The golf car storage facility is where the club’s golf cars are stored and recharged
(if they are battery-operated) or refueled (if they are gas-operated). Golf profes-
sionals and other club staff need to attend to the care and cleaning of the facility
and ensure that the club’s golf cars are presented neatly. Many clubs will use a
daily standards board to make sure the golf cars stay well organized, parked in
rows, and easy to get to. Many clubs will also have a dedicated area for detailing
590 Chapter 15
and preparing cars. Such organizations as Club Car can help clubs design their
golf car storage facilities.
For battery-powered cars, the golf car storage facility should have a fan
installed at the highest point in the ceiling; the fan must be capable of changing
the air in the building at least five times per hour. This is a safety issue; recharging
batteries produce hydrogen gas, which can become explosive if it is allowed to
accumulate in concentrations of more than two percent. Hydrogen gas is lighter
than air and will rise to the highest point in a building. The golf car storage facili-
ty’s wiring should be sufficient to handle peak power requirements when all of the
chargers are being used. Every charger should have an individual circuit breaker
or fuse of at least 15 to 20 amperes.
Clubs that use gasoline-powered cars should make sure that their gasoline
storage meets all Occupational Safety and Health Administration standards and
local building and fire codes. Gasoline must be stored in an approved storage tank
that is ventilated properly and located at a safe distance from the storage facility.
The golf car storage facility, just like the club’s other buildings, should have
an alarm system to protect it and its contents from vandals and thieves. Lastly,
there should be a cart rotation schedule to assure uniformity of wear and tear on
the golf cars.
Maintenance of Golf Facilities

The practice facility, golf car storage area, and grounds around the golf shop
should be as clean and tasteful as the rest of the club’s facilities. These areas are
often maintained by the golf course grounds crew or the club’s gardeners. The
head golf professional should work cooperatively with these individuals to main-
tain the grass, flowers, plants, trees, benches, chairs, trash cans, and so on in these
areas.
Decorating and cleaning the inside of the golf shop usually is the responsibil-
ity of the golf staff. Repairs and other large maintenance items are the responsibil-
ity of the club’s maintenance staff.
Golf Programs and Services

The most common types of golf programs offered at private clubs are activities
organized for the club’s men and women golfers, member-guest tournaments,
junior golf events, and club championships. The biggest concern in conducting
any organized event on the golf course is that the entire course or portions of it
will be unavailable for use by the general membership. The golf committee and the
head golf professional must ensure that the dates, times, and number of holes used
for an organized event is in the best interest of the general membership. If possible,
a few tee times should always be open during an organized event for members
who are not participating in the event.
Golf Standards
Every club establishes its own golf standards to meet the needs of its golfers. These
standards are typically recorded in an SOP (standards of performance) manual
and/or photo boards. The golf standard for any given club must fit the property
and the membership. Typical golf standards include the following:
•• Fast, smooth greens (1/8" to 4/32")

•• Firm, fair bunkers (settled depth at 4" to 6")
•• Consistent roughs (2" to 4"), intermediate cut (6' at 1 1/2")
•• Consistent firm fairways (3/8" to 3/4")
•• Firm, neat tee boxes (3/8" to 1/2")
•• Overall concept of neatness and a 4-hour round
General managers can help their head golf professionals meet these standards
in a number of ways. First, they can foster a close working relationship between
the head golf professional and the golf course superintendent. They should share
information through weekly staff meetings on course preparation, mowing, setup,
watering, spraying, etc. They should give regular, formal performance evaluations
to the head golf professional. It can also help to play, walk, or ride at least nine
holes every week with the head golf professional or golf course superintendent,
and to attend the annual PGA Merchandise Show.
Tee Sheet Management

Tee sheet management can be the lifeblood of the club’s golf operation. Golf pro-
fessionals and general managers alike need to study tee sheets to know who is
playing and who is not playing. When do individual golfers play? Which days?
Are there patterns?
Tee sheets are a valuable daily tool that can be used to anticipate trends, con-
duct forecasting, and develop budgets. Tee sheets should include the weather,
the rounds played (paid vs. complimentary), competitions or tournaments being
played, and whether there were any complaints.
Many clubs today have gone to an electronic tee sheet system that members
can access from the Internet. Members can post and review scores online, sign
up for events, book golf lessons, and easily schedule tee times. The system also
provides the club with instant course statistics that can be sorted in many different
ways. Exhibit 4 shows an example of an online tee time sheet.
Handicap Systems
A handicap system allows club members with different abilities to play golf
together and compete on an equal basis. Members must play regularly and report
their scores after each round so that accurate handicaps can be determined.
Handicaps should be updated regularly and posted on a bulletin board. Clubs
can implement a computerized handicapping system by purchasing the software
themselves, paying a fee to another club to process their handicaps for them, or
forming a group of clubs to purchase the software and share it.
592 Chapter 15
Tournaments
Most private clubs conduct a regular schedule of golf tournaments each season that
includes a club championship, invitational tournaments, events for the club’s men
golfers, events for the club’s women golfers, member-guest tournaments, men-
women events, junior events, and so on. Tournament types and frequency vary
from club to club. A tournament can be as complex as a nationally televised event
or as simple as a weekly member outing. Tournaments will vary in complexity from
extensive and highly detailed to fairly routine. For clubs seeking more members,
one of the many purposes of member-guest events is to introduce prospective
members to the club and its services.
Some clubs limit tournament play to member-only events. Other clubs will
elect to do member-sponsored golf outings as a significant revenue stream. Some
clubs host up to 200 tournaments a year, while others focus on one or two a
season. A balance must be attained between maximizing potential golf tournament
revenue and the disruption of regular member play.
A club should promote every golf event in order to foster interest and partici-
pation. Signs should be posted throughout the club and notices placed in the club
newsletter and on the club’s website informing members of when the golf course
will not be available because of scheduled events. A few weeks prior to an event,
telephone calls should be made or e-mails sent to those who have signed up to
remind them of the event. Members who regularly participate but have not signed
up should be called to fill up any open spots in a tournament. The fees members
and others pay for an event should cover the direct costs of the event: food and
beverages served, prizes, golf shop certificates, and so on. When scheduling an
event, the organizer should make sure that it does not conflict with other club
events. Each major golf tournament held at the club should have a tournament
chair who assists the golf course staff in planning, promoting, and conducting the
event. Exhibit 5 lists key elements to a great tournament, while Exhibit 6 shows a
tournament planning guide from Farmington Country Club.
Golf tournaments can be a plus for club operations in several ways:
•• Tournaments help to create camaraderie within the membership.
•• Tournaments are challenging and allow club staff members to expand their
talents.
•• The club is showcased, which can be very beneficial in promoting new
memberships.
•• Golf tournaments can be profitable. Often, outside tournaments or outings
can generate additional revenue.
•• Tournaments promote club use.
•• Major tournaments can bring notability to the club.
Each golf event can be made more special by putting player names on the golf
cars’ sign holders, providing entry gifts, preparing scorecards with player names
typed on them, and so on. Golf staff should place yardage markers, mark all out-
of-bounds areas, and place attractive signs at holes that have special activities or
Exhibit 4 Online Tee Time Sheet
594 Chapter 15
Exhibit 5 Key Elements to a Great Golf Tournament
•• A great course layout in great condition

•• Outstanding organization
•• Fantastic food and beverages
•• Great competition
•• Quality prizes and giveaways
contests associated with them: closest-to-the-pin contests, longest-drive contests,

prizes for a hole in one, and so on. Tournament results should be posted on a
scoreboard near the golf shop in an outside area that gives players enough room
to socialize. The results should be announced and prizes awarded as soon as pos-
sible after the event or during the post-event banquet (if one is planned). There are
many golf event formats, some of which have unique titles such as Bingle-Bangle-
Bungle, Crier’s Tourney, and so on. Some basic golf-event formats are listed in
Exhibit 7.
Outside Golf Tournaments. Outside golf tournaments are conducted at many pri-
vate clubs. An outside tournament is a tournament that is not organized primarily
for members and invited guests. Some clubs do not allow any outside tourna-
ments, others only allow a few outside tournaments a year, and clubs that are
seeking additional revenue may aggressively pursue outside tournaments. An
outside tournament may be organized by a company or organization that wants
to host a golf tournament and banquet for a special event, such as a charity fund-
raiser or a corporate outing. Clubs usually host these events on Mondays so as not
to inconvenience members (most country clubs are closed on Mondays). Organiz-
ers of outside events usually must pay a green fee for each participant, rent the
club’s golf cars, pay a set fee for use of the practice facility, host a lunch or dinner
at the club, and pay for the food and beverages consumed on the golf course.
Typically, food and beverage service is provided for outside tournaments.
Although clubs prefer to cater these events themselves, some organizations may
want to bring their own food and beverages. Club managers should check with the
local liquor commission before allowing anyone to bring alcohol onto club prop-
erty (such an action might be in violation of the club’s liquor license).
Instructional Programs
Golf instruction is the foundation of a private club’s overall golf program. Instruc-
tion is a key to getting members to use the golf course and visit the club more
often. The club’s instructional programs are good feeders into other golf activities
at the club. Instructional programs are not just for beginners; clubs offer programs
to teach intermediate and advanced golf skills, too.
Members usually pay an additional fee for golf lessons. Golf lessons can be
in the form of private lessons, group lessons, or clinics. Group lessons or clin-
ics are usually organized by age group (adult or junior), gender, skill level, and
Exhibit 6 Tournament Planning Guide
Farmington Country Club, Charlottesville, Virginia
Tournament Name
Date
Staff Liaison
Committee
Liaison Phone Number
Email Address
Budget
Pre Tournament
Task Staff Due Date Task Staff Due Date
Mark Tee Sheet Prepare Hole Locations
Meet with F & B Inform Scott of Hole Locations
Order Tents and Awnings Prepare Proximity Markers
Order Prizes Beat the Pro Preparations
Order Favors Handicaps
Performance Pairings
Post Sign-up Sheet Score Cards
Receive Prizes Cart Signs
Prepare Favors Rules Sheet
Mark G.U.R. Roster
Day Of
Task Staff Time Task Staff Time
Range Set-up Check On-Course F & B
Registration Table Set-up Photos
Tee Marker Set-Up Lunch
Proximity Prize Set-up Dinner
Beat the Pro Set-Up Cocktail Party
Putting Contest Set-Up Scoring
Score Board Awards Presentation Set-Up
Post Tournament
Task Staff Time Task Staff Time
Charge Entry Fees Re-Set Tee Markers
Charge Cart Fees Prepare Tournament Summary
Awards Presentation Post Tournament Summary
Clean up Beat the Pro Email Summary to Michelle
Clean up Putting Contest Pro Forma
Post Member Credit in Books
Source: Club Operations Manual, Premier Club Services, Club Managers Association of
America.
topic (rules, stroke improvement, playing strategy, and so on). Private lessons give
members the individual attention that some desire, but at a higher cost. Group
lessons and clinics are less expensive and allow members to socialize with other
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Exhibit 7 Basic Golf-Event Formats at Private Clubs
NAME DESCRIPTION
Best Ball The lowest score among partners or team members on

each hole is used to calculate the team’s score for 18
holes.
Bingle-Bangle-Bungle Each hole counts three points. One point goes to the
player whose ball first comes to rest on the surface of the
green; a second point goes to the player whose ball is
nearest the cup after all the players are on the green; the
third point goes to the player who first sinks a putt. The
winner is the player with the most points at the end of the
round.
Crier’s Tourney Each player gets to pick out his two (or three) worst holes
and revert his or her score on these back to par.
Four Ball There are two partners on a team, each partner playing
his or her own ball. The low ball of each team counts on
each hole, and the team with the lowest score wins the
hole. The winning team is the team with more holes won
than there are holes left to play.
Foursomes Players use one ball, with partners stroking alternately

between the tee box and the green.
Handicap Stroke Play Players play 18 holes, adjusting their score at each hole
for their handicap.
Match Play Lowest score wins the hole; the winning individual has
more holes won than there are holes left to play.
Nassau Winners for an 18-hole round of golf are determined in

three ways: best score for the first 9 holes, best score for
the second 9 holes, and best score for all 18 holes.
Scramble All teammates tee off. The best shot among the team-
mates is selected and all teammates hit their second shot
from that location. After all have hit their second shot, they
again decide which shot is best and all hit their third shot
from that location. This is continued until the ball is in the
cup.
Shotgun Eighteen teams of foursomes all start play at the same

time. A team is assigned to begin at each hole on the golf
course and all teams start at the sound of a gun or horn.
For example, players starting at the 17th hole will play the
18th hole second, the 1st hole third, and so on.
members while improving their skills. A club should rarely allow the entire prac-
tice range and other practice areas to be used solely for lessons, especially during
peak hours.
The golf professionals who give lessons may receive all of the instruction fees
or a certain percentage of them; payment policies are set annually by the club’s
golf committee or board of directors, with input from the head golf professional
and the general manager. Often the head golf professional receives a percentage
of the revenue from lessons taught by the assistant golf professionals, based on
the experience of the assistant; the more experienced the assistant, the smaller the
percentage received by the head golf professional.
A good golf instructor is a compassionate and caring individual who is an
excellent communicator. All instructors at a club should develop a consistent
teaching philosophy, with the head professional checking all lesson plans. Mem-
ber satisfaction and game improvement are the top goals of teaching.
Junior Golf Program. Developing young golfers should be a primary focus at
all clubs. Junior golfers represent future members. A club’s junior golf program
typically consists of group lessons, tournaments, clinics, regular or modified golf
games, and supervision of juniors on the golf course. At some clubs, there is a
junior subcommittee within the golf committee that assists the committee in plan-
ning, promoting, and implementing the junior golf program. The junior program
should promote its activities through e-mails, phone calls, personal contacts, the
club’s website, and notices on the club bulletin board and in the club newsletter.
Educational activities for juniors include instruction on the rules of golf, proper
etiquette, the club’s course rules, and the history of the game. Other types of junior
golf programs are junior member-guest events and parent-child events. For junior
programs to be successful, all junior events should combine fun, instruction, and
social interaction.
During the summer, many clubs have golf clinics and camps for children.
During the school year, programs can be run immediately after school for juniors.
Children should be grouped together based on age and ability. The golf shop
should carry junior-size clubs; the right equipment will increase the success of any
junior program.
Clubs need a dedicated person for junior golf who is good with and enjoys
being with children. A club needs to schedule access times to golf courses for the
junior program if it is to succeed; the club then needs to develop age-appropriate
programs and instruction. The junior golf instructor should have an understand-
ing of the subtle differences between teaching, coaching, and playing. He or she
should also understand that keeping the children happy keeps the parents happy.
For information on junior golf programs, clubs can contact their PGA sections or
PGA national headquarters.
Caddie Programs
Caddie programs experienced a decline for much of the 1990s, but have started to
see a resurgence. A caddie master is essential to having a trained and competent
caddie work force. The caddie master recruits caddies from a number of sources,
including high school golf players, applicants referred by current employees,
598 Chapter 15
children of current employees, and caddies who have worked at the club in prior
years. Clubs use various incentives to recruit and retain caddies: caddie scholar-
ships, bonuses for not missing days of work, a comfortable caddie waiting area,
free meals, attractive uniforms, and so on. The caddie master trains the caddies
each season to ensure that they conduct themselves properly on the golf course
and possess adequate skills.
The duties of a caddie include retrieving the player’s bag and proceeding to
the first hole, standing to the side or slightly behind the player and being still and
quiet during the player’s shot, watching where the ball lands on each shot, collect-
ing the club from the player after each shot and cleaning the club head, and walk-
ing to where the ball landed with the player’s bag and waiting for the player. The
caddie whose player lands his or her golf ball on the green first should tend the
flag; another caddie should take this caddie’s bag along with his or her own over to
the next tee area. When the landing area for a tee shot is difficult to see, one of the
caddies should move down the fairway and stand in the rough to see where the
tee shots land. Additional duties include helping other caddies find their players’
golf balls if necessary, never placing the bag on the green, never touching the ball
until the player has holed out, raking out sand traps the player enters, replacing
all divots, repairing green marks, and periodically washing the player’s golf ball.
The average caddie fee is around $36 per bag.4
Typically there are one of three types of caddie programs in a private club:
•• Professional caddie. The professional caddie is an individual who earns a live-
lihood from caddying. This is usually an individual who is either on retainer
and works for selected individuals, or is a person who literally “hangs out” at
the club waiting for a round. This type of caddie is rapidly disappearing from
the club scene with the increased use of golf cars.
•• Student caddie. In clubs that operate heavily during the summer months, the
student caddie is extremely popular. These individuals are either high school
or college students and often work several seasons as they progress through
school. With this type of operation, the club usually hires a caddie master to
train the caddies and administer the program. One benefit for students is the
possibility of earning a scholarship through the Evans Scholars Foundation.
The Evans Scholarship Program is a sanctioned program that provides full
college scholarships to qualified individuals. The funds for the scholarship
are generated through club golf associations and other golf entities.
•• Outsourced caddies. These are caddies who work directly for a company that
manages caddie programs. The club hires the company and the company
supplies caddies upon request. The benefit of this program is that by hiring
the company in lieu of employing the caddie directly, it alleviates any inde-
pendent contractor issues for the club.
Golf Car Rentals

Almost all clubs rent golf cars for member usage. Some clubs allow members to
use golf cars that they (the members) personally own. Usually a usage fee or trail
fee is charged to members who use their own cars; this is collected to help pay for
maintenance and repairs to the golf car paths. At a small number of clubs, mem-
bers are also allowed to store their golf cars at the club for a fee. The trend for most
clubs that currently allow members to use privately owned golf cars is to slowly
phase these cars out by not allowing any member who uses a private car to replace
that car with a new one, and not allowing other members to start using a privately
owned car. Clubs that allow privately owned cars should specify their color and
size so that there are no “eyesores” at the club. Passengers on privately owned
cars often have to pay the club’s single-rider rental rate. Clubs that allow members
to use their own cars should make sure that the members have adequate liability
insurance to cover accidents involving their vehicles and that the club is named on
their insurance policies as an additional insured.
Golf car rentals are administered through the golf shop. When a member reg-
isters to tee off and requests a car, a key for the assigned car is issued to the mem-
ber and he or she is notified of the car’s number and location. If the member stores
his or her bag at the club, often the staff will have the member’s bag already on the
back of the car, if the car was reserved ahead of time. There should be a designated
area to which members can conveniently return cars after a round of golf.
It’s common for clubs to have a policy requiring golf cars to be used during
peak golf course usage times, such as Saturday mornings. This increases club rev-
enues through rentals and promotes faster play. Compulsory car usage is strongly
opposed by avid walkers, however. These individuals either prefer to walk for the
exercise or believe that golf cars damage the course. A club should revisit its walk-
ing policy often to make sure it is satisfying the majority of its members.
The car rental fee can be based on many factors, including a set price for eigh-
teen holes or nine holes played, weekday and weekend rates, and prices for one
rider versus two riders. Some clubs have one pricing structure, others include
combinations of these factors to determine price. Golf car rental fees average $22
for eighteen holes and $13 for nine holes.5
Discount programs can increase golf car usage. Examples of such programs
include books of coupons for car rentals that are sold at a reduced price; frequent
rider programs, where members get a free rental after renting golf cars for a cer-
tain number of times; unlimited monthly golf car rentals at a set fee; and so on.
The number of golf cars a club should have is based on the demand for car
rentals. Some clubs estimate that number by calculating one golf car for every
eight playing members. The fleet size is considered adequate if only 75 percent of
the cars are rented on an average day. The club should have 25 percent more golf
cars than its daily average rental to handle peak-demand periods and allow for
cars taken out of service for repairs. According to the Club Managers Association
of America, the average number of golf cars for clubs is sixty-four.6
A club should have an insurance package to cover its fleet of golf cars. The
policy should provide for both liability and property damage.
Golf Car Maintenance. The head mechanic or golf car–maintenance supervisor
should keep all golf cars in proper working order and service them according to
the manufacturer’s specifications. Golf cars should be cleaned and serviced after
every use. Few things are worse in a member’s eyes than a golf car that is dirty,
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runs poorly, or stops running in the middle of a round of golf. The PGA’s Golf Car
Fleet Maintenance Handbook is a good resource for information on how to main-
tain a golf car fleet.
Golf car batteries should be checked for complete charges or gas tanks checked
to make sure they have adequate fuel before the cars are delivered to the pickup
area. Service should include checking the battery charge levels, battery terminals,
battery water level, tire pressure, brake operation, steering action, cleanliness, and
so on. At the end of the day, the staff should clean the interior of the car, replace
pencils and scorecards, and wash the exterior. The car should be parked in the golf
car storage facility. If the golf car is electric, the charger should be plugged in and
turned on; if the car is gasoline-powered, the tank should be refilled. Before leaving
at the end of the day, the staff should secure the golf car storage facility and make
sure that the fan is turned on. A rotation system should be in place so that the same
cars are not used day in and day out when play is slow and all cars are not used.
All daily, weekly, monthly, and seasonal maintenance as well as repairs should be
recorded and the records stored in an easily accessible place for all staff members.
Clubs should replace their golf cars every three to five years. (According to
the Club Managers Association of America, the typical golf car is replaced every
four years.7) A fleet of cars can be replaced entirely at one time or a portion at a
time. Clubs with concerns about their cash flow may replace a quarter or a third of
their golf cars every year.
Leasing versus Purchasing Golf Cars. The question of whether a club should
lease or purchase its fleet of golf cars has been bantered around for years. Thirty-
four percent of golf clubs own their cars, while 40 percent of country clubs own
their cars. Forty-nine percent of both golf clubs and country clubs lease their cars.
Seven percent of golf clubs have members who own their cars; this number falls to
five percent among country clubs.8
Many variables affect a club’s decision. Proponents of ownership argue that
non-equity (for-profit) clubs that are well capitalized, have a healthy debt-equity
ratio, and have the staff to properly service the golf cars will benefit from the
depreciation expenses that they can deduct if they own the cars, whereas an equity
(nonprofit) club will not benefit from the depreciation factor.
Advantages of leasing are that no large cash outlay is required and the club’s
maintenance responsibilities are less than if it owned the golf cars. On the other
hand, club-owned cars tend to be treated better than leased cars. Disadvantages of
purchasing golf cars include the large cash outlay, high maintenance responsibili-
ties, and low return on investment.9
Electric versus Gasoline-Powered Golf Cars. Another common question asked
about golf cars is whether they should be electric-powered or gasoline-powered.
According to the Club Managers Association of America, the vast majority of clubs
(approximately 76 percent of golf clubs and 84 percent of country clubs—down
from previous highs of 88 percent and 90 percent) use electric golf cars.10
Electric golf cars require less maintenance than gasoline-powered cars; they
create less noise and don’t produce fumes or smoke. They are also less expensive
than gasoline-powered cars. Disadvantages of electric-powered golf cars include
the fact that electricity is more expensive than gasoline, golf car batteries must be
replaced every two to three years, the cars are only good for two to four rounds
of golf per charge, and electric golf cars are heavier and harder on the turf than
gasoline-powered cars.
Gasoline-powered golf cars do not need expensive charging equipment and
have unlimited turnarounds; they can be used all day. However, they require more
day-to-day maintenance than electric golf cars and create more noise, fumes, and
smoke. As alluded to earlier, gasoline-powered golf cars cost more per car than
electric-powered cars.11
Golf Staff
If the club is small, all of the duties involved in the golf program (except for golf
course maintenance)—teaching, pro shop management, golf car rental and main-
tenance, and practice facility administration—may be performed by the head golf
professional and the assistant golf professionals. Larger clubs may have additional
staff members working in the pro shop to handle tee times and sign-ups for orga-
nized functions, sell products, and carry out other duties. If a club’s golf program
has many participants, the golf staff will include additional employees to maintain
the golf cars, store golf bags, and administer the practice facility. These employ-
ees will also perform the daily, weekly, and monthly non-golf-course maintenance
that is necessary. The golf operation may also have starters and marshals during
peak periods on the course to control the flow of golfers and maintain an appropri-
ate speed of play.
All golf staff members should be well dressed and groomed. The pro shop
staff and golf professionals should be encouraged to wear pro shop apparel to pro-
mote its sale. This can be done by offering staff members a discount or by issuing
apparel for them to wear while on duty.
Golf Professionals
Professional golfers are those individuals who earn their living by their ability
to play the game of golf, which includes prize monies, appearance money, and
product endorsements. Golf professionals, on the other hand, are those individu-
als who make their living by promoting the game of golf, which includes teaching,
working in a management position at a club, selling merchandise, and managing
tournaments. These individuals have a more than competent ability to play, but do
not rely on this for their remuneration.
Golf professionals need to possess a wide range of talents and skills. They
need such managerial skills as:
•• A dedication to the tasks at hand
•• Ability to communicate clearly
•• Ability to set priorities for work
•• Ability to analyze and process verbal and written information
•• Confidence in decision-making ability
•• Compassion for others, members and staff alike
602 Chapter 15
•• Strong moral character that sets an example and provides leadership

•• An extraordinary work ethic that encompasses long hours
•• A total commitment to excellence
They need such technical skills as:
•• Ability to understand and teach the game of golf
•• Ability to understand and teach the rules of golf
•• Excellent understanding of quality merchandising
•• Clear ability to express thoughts in writing
•• Overall understanding of the budget process
•• Expertise in public relations
•• Adequate playing ability
•• Experience in the management of club golf events
•• Thorough understanding in all golf equipment
•• Ability to plan, direct, and lead staff
All of these skills can be generally categorized as member relations, tourna-
ment management, teaching, and administration.
The golf professionals at a club are the head golf professional and assistant
golf professionals.
Head Golf Professional. The head golf professional should be a member of the
PGA and should have years of experience as an assistant golf professional. The
head golf professional should also have good administrative and supervisory
skills.
The head golf professional is responsible for promoting and administering
the club’s complete golf program. This involves organizing golf tournaments,
administering lessons and clinics, reserving tee times, collecting guest fees, enforc-
ing guest policies, and administering the practice facility. In addition, the head golf
professional is responsible for golf shop sales (merchandising, inventory order-
ing, and control procedures) and for golf car administrative activities (reservation,
rental-fee collection, maintenance, and storage). The head professional prepares
and monitors golf department budgets and is responsible for the fiscal soundness
of the golf program. He or she hires, supervises, trains, and evaluates golf staff
members. The head golf professional must work in close cooperation with the golf
course superintendent so that appropriate decisions can be made on when the
course is in playable condition and when golf cars can be allowed on the course or
should be limited to the golf car paths only. See Exhibit 8 for a listing of a head golf
professional’s principle duties.
The assistant golf professionals and other golf staff members report to the
head golf professional. When the head golf professional is not at the club, the
senior assistant golf professional assumes his or her responsibilities. The head golf
professional generally reports to the club’s general manager, though in some clubs
Exhibit 8 Principle Duties of a Head Golf Professional
•• Meet and greet, know when to be seen

•• Schedule employees effectively
•• Establish and maintain the daily pace-of-play standard
•• Maintain a high profile with members and staff
•• Manage all merchandise, ensuring profitability
•• Establish and administer the club tournament program
•• Direct the club instruction/teaching program
•• Assist the general manager with the development of annual operational budgets
•• Control general expenses for the entire golf operation
•• Hire, train, and review all golf operation employees
•• Project a positive, favorable image for the club
•• Have great product knowledge
•• Be a rules expert
they might report to the chairperson of the golf committee. The head golf profes-
sional also communicates with the chairperson of the golf committee and other
golf committee members. The general manager should be informed of any official
communication between the head golf professional and golf committee members.
The head golf professional receives a salary, plus all or some of the following
in compensation, depending on his or her contract with the club:
•• Ownership rights to the pro shop merchandise or a percentage of the gross
sales or net profit
•• Income from lessons
•• Percentage of the income from the practice facility
•• Percentage of golf car rental income
•• Percentage of guest fees for rounds of golf
•• Percentage of the profits from tournaments (or a set fee)
•• Percentage of the income from bag storage
•• Income from regripping and repairing clubs
•• A benefits package (insurance, vacation, sick days, retirement, and so on)
•• Bonuses on meeting operational goals
•• Professional expenses such as dues, subscriptions, and tuition
•• Club privileges and meals
•• Housing or automobile allowance
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“Building Bridges: Working with the Golf Management Team”

Master Club Monograph, Joe Basso, MCM
For much of the history of private golf and country club management, the predomi-
nate managerial structure among the boards of member-owned clubs has been the
triad style of management. Under this organizational structure, each member of the
golf management team reports to a committee chairperson. As the management
model shifted to that of a chief operating officer with one person ultimately respon-
sible for the entire operation, dissension sometimes developed among specific
members of the management team; the golf professional, the course superintendent,
and the general manager.
Poor implementation of what was then known as the general manager concept
has at times caused tensions created by two key misconceptions: (1) the prevailing
belief that the general manager must come from the food and beverage/administra-
tive discipline of the club (this sometimes fostered unnecessary animosity among
other members of the golf management team), and (2) the occasional and unfortu-
nate assumption that general managers needed to know everything possible about
the golf side of the operation.
The members of golf management teams today do not generally share these
misconceptions. Modern professionals tend to have a better understanding of organi-
zational structure and are generally more secure about their own roles and abilities.
All three professional groups are better educated, and individuals from the golf and
agronomy disciplines are now entering the field of general management.
A survey of club managers, golf professionals, and golf superintendents con-
firmed the historical view of these issues and explained the current nature of their
professional interactions and relationships. Veterans from all three specializations
substantiated similar experiences in their own past professional relationships, and
they revealed key elements in present-day interactions that are cornerstones for suc-
cessful and productive relationships.
When asked the best course of action to improve poor interpersonal relation-
ships, all three groups cited several critical factors. First, the importance of open
and honest communication was noted to be the most significant factor in fostering a
healthy and productive management team. Survey respondents consistently reported
that communication and the ability to listen with an open mind are essential for build-
ing and strengthening these relationships.
Mutual trust, a second key ingredient cited by survey participants, allows the
team to function at its peak level of performance without the fear of hidden agendas
or back stabbing. With mutual trust present, issues can be discussed among mem-
bers of the management team without the concern that they will be used for any form
of political maneuvering.
Mutual appreciation based on respect and an understanding of each team mem-
ber’s contribution was noted to be a third essential component to building an ongoing
rapport. Each professional must understand what the other members bring to the
operation in the form of expertise. While continuing education in areas of deficiency
will help to broaden the general manager’s knowledge base, a shared respect for the
career accomplishments and industry expertise of each member will help to solidify
these three professions into an effective team.
Having talented managers for the golf and course operations allows the general
manager to focus on broader issues affecting the club’s future. Sharing a common
vision supported by the management team is a fourth essential element in an effec-
tive relationship. A common vision provides a solid foundation upon which to make
decisions that are in the club’s best interest.
Support of each other in the mutual quest for success is a fifth key to winning
relationships. There is a critical need in club operations for an aligned management
team that will display a common face to club members. In the face of adversity, this
support becomes particularly vital to the overall health and welfare of the manage-
ment team.
The benefits of a positive relationship among these club professionals extend
from individual accomplishments to an overall enhancement of the club environment
in which they work. Often, longstanding friendships, both personal and professional,
are formed.
When problems within the team become evident, respondents agreed unani-
mously that stepping back and reevaluating the key elements of their relationships
was the best remedy and stood the best chance of solidifying the team. However,
all three groups were likewise unified in their response that when these attempts
failed, they would not allow another member of the team to undermine the vision and
goals for the team. It would then be necessary for the non-contributing member to be
removed from the group.
Research Results: Focus on Team Relationships
General Golf
Current Relationships Superintendent
Manager Professional
Golf Professional / Club Team 4.3 4.6 **
Superintendent / Club Team 4.4 ** 4.2
General Manager / Club Team 4.4 ** **
General Manager /
4.6 4.4 4.2
Superintendent
General Manager /
4.3 4.5 3.9
Golf Professional
(1= poor, 2=fair, 3=average, 4=good, 5=excellent)
Ability to Listen and Relate to Non-Golf Issues
Rated General Golf

Superintendent
Raters Manager Professional
General Managers Did Not Rate 3.9 4.2
Golf Professionals 4.3 4.5 4.1
Superintendents 4.0 3.7 4.2
In their ability to listen and relate to non-golf issues of the club, golf professionals
rated themselves the highest, while superintendents and general managers had a
(continued)
606 Chapter 15
slightly lower view of the golf professional’s abilities. Golf professionals, superin-
tendents and general managers all rated above 4.0 on a scale of 5 in their ability to
listen and relate.
Participation in Problem-Solving of Non-Golfing Issues
Rated General Golf

Superintendent
Raters Manager Professional
General Managers Did Not Rate 3.7 3.9
Golf Professionals 4.4 4.3 3.9
Superintendents 4.2 3.6 4.0
Problem-solving of these same issues ranked in similar fashion. Both superinten-

dents and golf professionals had a better view of their own contributions over those
of their fellow club department managers, but viewed their general manager’s ability
to resolve these issues on a higher scale. Golf professionals rated their own abil-
ity to compromise for the betterment of the club significantly higher than that of the
other members of their team, while also giving managers the highest rating of all
three groups. Conversely, superintendents and general managers gave their golf
professionals the lowest compromise ratings. The ability of the non-golf members of
the management team to compromise for the benefit of the club rated consistently
among all three groups.
Source: Master Club Monograph by Joe Basso, MCM.
Although the club will not pay this portion, the head golf professional (and
other golf professionals) also should be given the opportunity to win prize money
in local golf tournaments.
It is important that a positive working relationship be maintained between
the head golf professional and the club manager. The club manager relies upon the
head golf professional to encourage support of the club’s operation to the member-
ship. The head golf professional usually maintains a friendly personal relationship
with club members and can influence them easily. In turn, the club manager sup-
ports the golf operation by lending assistance to projects, promoting tournaments,
and providing input for administrative decisions. Club managers should welcome
input from the head golf professional as he or she is the expert in the golf opera-
tion. A successful relationship between the club manager and the head golf profes-
sional is an amiable relationship of mutual respect and cooperation. This type of
relationship benefits the entire club and accomplishes the common goal of member
satisfaction. See the chapter appendix for a sample job description for a head golf
professional and other golf staff positions.
Employee or independent contractor? While the courts have yet to determine
clearly whether head golf professionals (and other golf professionals) working at
a private club are truly independent contractors, it appears most likely that a head
golf professional is not an independent contractor if one or more of the following
conditions apply at the club:
•• The head golf professional has signed an employment agreement with the club.
•• The hours that the head golf professional works are specified by the club.
•• The club provides the head golf professional with pro shop space, utilities,
telephone service, and meals at no charge.
•• The club bills members, collects from members, and pays the revenue due to
the head golf professional.
These items have been clearly interpreted by the Internal Revenue Service to dem-
onstrate that the club has an employer relationship with its head golf professional.
Should any wage disputes arise involving the head golf professional or assistant
golf professionals, it’s likely that the U.S. Department of Labor will consider these
professionals to be employees of the club.
Assistant Golf Professionals. Qualifications for assistant golf professionals
include PGA membership or registration in the PGA Apprentice Program (or the
expectation to register), good golf skills, some competitive golf experience, and
preferably some teaching and work experience at a golf facility. Assistant golf pro-
fessionals should be good communicators and be patient, friendly, and outgoing.
The Golf Professionals’ Role in Marketing. The entire golf staff has a role to
play in the recruitment of new members into the club. The club’s golf profession-
als should always be introduced to a prospective new member. In some cases, a
member of the golf staff may be asked to play golf with a prospect or at least give
the prospect a tour of the golf course. A member of the golf staff should also be
available to answer questions about the various golf programs offered at the club.
Tournament schedules, lesson rates, and tee time procedures are examples of valu-
able information for prospective members.
Once a prospect has joined the club, the golf staff has the opportunity to help
make the new-member transition a successful one. A welcome letter from the golf
staff might include a complimentary golf lesson. A phone call from one of the
club’s golf professionals is another way to connect with someone who has just
joined the club. It is a good idea for clubs to include the head golf professional in
their new-member orientation programs. Once again, covering tournament dates,
how to book lessons, and information on the club’s junior program are just a few
of the items that new members will need to be made aware of.
Oftentimes the golf staff will play a key role in helping a new member fit into
the club. For example, recommending a golf group would be invaluable to some-
one who has just joined the club and is new to the community. Encouraging a new
member to play in member golf events is oftentimes the most effective way to help
someone to feel a part of the membership in the early stages.
Regardless of the tactics used, the club’s head golf professional and other golf
professionals should play a key role in the recruitment and retention of members
at the club.
Other Golf Staff Positions

Other typical golf staff positions in clubs include golf shop employees, bag room
and practice facility staff, starters and marshalls, and head mechanics.
608 Chapter 15
Golf Shop Employees. The employees who work in the golf shop should be
knowledgeable about golf. They should also be trustworthy and organized, pos-
sess good phone-etiquette skills, be good communicators, and be friendly and
outgoing.
Although specific duties vary from club to club, golf shop employees sell golf
shop merchandise and usually book lessons, keep track of tee-time reservations,
sign members up for tournaments, and keep track of member handicaps, under
the supervision of the club’s golf professionals.
As part of the head golf professional’s negotiated contract, the salaries of the
golf shop staff may be paid partially or in full by the club. This is because part
of their duties are club-related—taking tee-time reservations, answering the golf
shop telephone, registering members for organized golf events, and so on.
Bag Room and Practice Facility Staff. Bag room and practice facility staff members
should also have a knowledge of golf and should have the dexterity and strength
to perform the manual tasks required to maintain the bags, clubs, buckets, and
practice balls (that is, lift heavy golf bags, operate machinery, and so on).
Starters and Marshals. Starters and marshals should be experienced golfers who
are familiar with the rules of golf and with the club’s policies and regulations. The
starter and marshals work at tournaments to promote efficient play among the
members and guests. The number of starters and marshals that a club employs
depends on the number of golf rounds members and guests play at the club and
the degree of concern the club has over speed of play and violations of golf course
regulations.
The starter is stationed near the first tee to ensure an orderly flow of play
based on reserved tee times. A good starter can have a positive impact on the pace
of play and player satisfaction. If players are late, the starter will ask a group that
is ready to play to tee off, so as to stay on schedule. The starter will place play-
ers with no partners into groups or will match twosomes together. The starter
will cover tournament and club rules and remind players of commonly committed
errors to avoid. The starter should record the names of members and guests and
the exact times they begin, in addition to issuing scorecards and pencils to players
who do not have them. Other duties that starters at some clubs may perform are
listed in the starter job description in the chapter appendix.
The main task of a marshal is to monitor the pace of play on the golf course. A
marshal will ask slow groups to allow faster players behind them to play through.
If the group in front of the slow group is more than one hole ahead, a marshal may
ask the slow group to pick up their golf balls and immediately move ahead to the
next hole to tee off.
Head Mechanic. Clubs with a large fleet of golf cars should have a head mechanic
to maintain the golf cars and their storage facility. The mechanic should have expe-
rience in maintaining golf cars and performing a variety of mechanical repairs.
This individual will also supervise any staff members who are assigned to the golf
car storage facility to assist in the maintenance and servicing of the cars.
Endnotes
1. Club Managers Association of America, Club Operations and Financial Data Report
(Alexandria, Virginia: CMAA, 2004), p. 15.
2. Ibid., p. 36
3. Ibid., p. 41
4. Ibid., p. 40.
5. Ibid., p. 38.
6. Ibid.
7. Ibid.
8. Ibid.
9. Golf Car Fleet Management Handbook (Palm Beach Gardens, Florida: PGA, 1989).
10. Club Operations and Financial Data Report, p. 38.
11. The advantages and disadvantages of electric-powered cars discussed in this section
were adapted from Golf Car Fleet Management Handbook (Palm Beach Gardens, Florida:
PGA, 1989).
Key Terms
caddie master—An experienced caddie who recruits, trains, and supervises other
caddies.
club-demo program—A golf shop program designed to increase the sales of golf
clubs, in which members can try out the clubs before buying them.
cost-plus program—A golf shop program in which club members pay a fee and
are then able to purchase golf shop merchandise at cost plus a fixed percentage
(typically ten percent).
handicap system—A system in which a golfer is either awarded strokes or has
strokes taken away, based on his or her ability to make par; this system allows
golfers with different playing abilities to play golf together and compete on an
equal basis.
junior golf program—A number of organized golf activities—lessons, tourna-
ments, clinics, camps, modified golf games, and so on—designed for the children
of club members.
marshal—An individual who monitors the pace of play on the golf course and
enforces club rules.
member-guest event—An organized golf event at a club in which guests are
allowed to participate with members; such an event is often used by clubs to
recruit new members.
outside tournament—A golf tournament held at the club that is not organized
primarily for members and invited guests.
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practice facility—An area designated for members to practice hitting a variety of

golf shots. Also called a practice range or driving range.
starter—An individual who is stationed near the first tee to ensure an orderly flow
of play based on reserved tee times.
Review Questions
1. What are some of the golf facilities commonly found at clubs?
2. What is a handicap system?
3. What are some of the golf instructional programs typically offered at clubs,
and why are they important to clubs?
4. What are some typical golf car–rental policies at clubs?
5. How is a head golf professional compensated at a club?
6. What are the duties of an assistant golf professional?
7. What are a starter’s responsibilities on the golf course? a marshal’s?
8. What are some of the major golf associations?
Additional Reading
Beard, J. B. Turf Management for Golf Courses. New York: MacMillan, 1982.
Cayce, K. PGA Book of Golf Shop Policies and Procedures. Palm Beach Gardens,
Florida: PGA, 1984.
Gammon & Grange, P.C. “Will the Real Independent Contractor Please Stand
Up?” Club Director, August 1992.
Golf Course Superintendents Association of America, “Selecting a Professional
Superintendent.” Lawrence, Kansas: Golf Course Superintendents Associa-
tion of America, no date.
“The Greening of a Great Committee Chair.” Club Director, October 1994.
Gustafson, Cathy, and Bridgette Redman, Assistant Manager in Development Pro-
gram: Recreation and Sport Management, Alexandria, VA: Club Managers
Jobbe, F. W., L. A. Yocum, R. E. Mottram, and M. M. Pink. Exercise to Better Golf.
Champaign, Ill.: Human Kinetics, 1995.
Lowes, R. “The Successful Tournament.” Club Management, January 1992.
Professional Golfers’ Association of America. Golf Car Fleet Maintenance Hand-
book. Palm Beach Gardens, Florida: PGA, 1982.
———. Golf Car Fleet Management Handbook. Palm Beach Gardens, Florida: PGA,
1989.
———. How to Hire a Golf Professional. Palm Beach Gardens, Florida: PGA, 1991.
———. Marketing the Public Golf Course. Palm Beach Gardens, Florida: PGA, 1990.
———. The PGA Merchandising Manual. Palm Beach Gardens, Florida: PGA, 1991.
White, T. E., and L. C. Gerstner. Club Operations and Management, Second Edition.
New York: VNR, 1991.
Wiren, G. The PGA Manual of Golf: The Professional’s Way to Play Better Golf. New
York: MacMillan, 1991.
Internet Sites
Golf Channel National Golf Course Owners

www.golfchannel.com Association
www.golf.com/tour/assoc/ngcoa
Golf Course Builders Association of
America PGA Tour
www.gcbaa.org www.pgatour.com
Golf Course Superintendents Associa- Professional Golfers’ Association of
tion of America America
www.gcsaa.org www.pga.com
Ladies Professional Golf Association United States Golf Association
www.lpga.com www.usga.org
Case Study
Comfortville Country Club is celebrating its fortieth anniversary this year. The
club was the first private club in the region and it has a lot of traditions. The club
has approximately 450 members, 300 of which have golfing memberships. Many
of the members own houses with backyards on the golf course.
The club has allowed members to use privately owned golf cars for years.
Approximately fifty members presently use their own golf cars at the club. Mem-
bers with private cars pay $25 per month as a trail fee. The club also rents golf cars.
Its fleet size of fifty is adequate for its current usage on most days except for the
busiest Saturdays and holidays. The club is leasing the fleet of electric-powered
cars; the fleet is about two years old. Car-rental fees for eighteen holes are $20 for
two riders and $10 for one rider. Feedback on member surveys indicate that mem-
bers are happy with the club’s golf cars. They like their quality, the way they are
maintained, and the prices charged for their use.
However, there were a number of written comments on the survey about the
club’s policy of allowing privately owned golf cars on the course. Some of the
members complained about the color and appearance of some of the private cars.
612 Chapter 15
Others said that some of the members who owned their own golf cars were enter-
ing the course at the hole nearest their home without checking in with the starter.
At the last board of directors meeting, there was much discussion about these
comments on the survey, some of it heated. At one point a motion was made to
ban private golf car usage, but it was withdrawn. The board appointed a special
committee to investigate the problems associated with private golf car usage at the
club and make recommendations for action at the next board meeting.
Discussion Question
1. What are the different potential courses of action? What are some of the
impacts these actions might have?
Chapter Appendix:
What follows are sample job descriptions for a head golf professional, assistant
golf professional, golf shop manager, bag room attendant, and starter. These job
descriptions are courtesy of Joe Perdue and Jack Ninemeier, Job Descriptions for the
Private Club Industry, Seventh Edition.
Head Golf Professional

Position
Head Golf Professional
Related Titles
Golf Pro; Director of Golf; Golf Professional; PGA Head Golf Professional
Reports to: Director of Golf
Supervises: Golf Shop Manager; Starter; Ranger; Caddie Master; Outside Services Man-
ager; Car Shop Maintenance Mechanic; Bag; Range; and Car Attendant.
•• College degree preferred with a bachelor’s degree in a business-related major or
Sports Management.
•• Five years work experience as a Golf Professional or equivalent work experience as
an Assistant Golf Professional at a private club.
•• Managing golf operations.
•• Interpersonal/customer service.
•• Staff training and development.
•• Business management.
•• Golf instruction.
•• Tournament operation.
•• Merchandising.
•• Playing ability.
•• Knowledge of the rules of golf.
•• Patience in coaching novice golfers and ability to offer constructive criticism tactfully
and praising their efforts as their swing improves.
Manages all golf and golf-related activities and businesses, including managing the golf
shop and driving range, supervising professional staff, enforcing club rules and regula-
tions, overseeing the club’s handicap system, providing competent golf instruction for all
levels of players, supervising the rental and maintenance of golf cars, and reporting activi-
ties of the department to the Golf Committee.
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Job Tasks/Duties
•• Plans, promotes, and directs all golf activities including daily management responsi-
bilities.
•• Prepares annual and monthly budgets for golf operations; takes corrective actions as
necessary to help assure that budget goals are attained.
•• Orders merchandise for golf shop and provides the best selection possible within the
constraints of inventory and quality limits set by board policy.
•• Orders supplies associated with golf activities.
•• Maintains attractive, orderly appearance in Golf Pro Shop.
•• Selects, supervises, trains, and evaluates golf cart maintenance personnel and Golf
Pro Shop, locker room, golf range, golf bag and club storage employees and on-
course personnel.
•• Provides golf lessons to members and guests.
•• Plays golf with members of all skill-levels to generate enthusiasm.
•• Designs and conducts golf clinics.
•• Plans professional development and training activities for subordinates.
•• Designs and conducts junior golf clinics and training programs.
•• Collects charges and fees for all golf-related activities.
•• Organizes and conducts club tournaments and related events.
•• Interprets and enforces golf rules and regulations.
•• Interprets and enforces club policies, rules and regulations.
•• Consults with the General Manager about golf course and practice range operations,
maintenance and rules.
•• Cooperates with the grounds superintendent about maintenance issues that affect the
playability of the golf course.
•• Under the direction of the golf committee, implements and administers a system gov-
erning the start of play and the handicap system.
•• Represents the club in area professional events including local, state or national
events with the approval of the Golf Committee.
•• Attends all staff, management, golf committee, and other applicable meetings.
•• Maintains records relating to player and guest rounds and other statistics.
•• Provides marshals for tournaments and at other times as determined by Golf Commit-
tee; supervises marshals to help ensure that expected performance is delivered.
•• Plans social evenings and events to promote golf and fellowship among members
and guests.
•• Adheres to all federal, state and local laws regarding health, safety and employment.
•• Schedules staff hours to assure that members are fully served and that labor costs
are maintained; periodically checks timecards for adherence to posted schedules.
•• Assists in the development of short- and long-range plans for improvements to the
club facilities and courses.
•• Attends national and sectional conferences and meetings, merchandise shows, edu-
cational and professional shows to encourage development and to enhance quality
and image of the club.
•• Assists in supervising and inspecting design improvements and capital outlays to golf
courses and golf facilities.
•• Interacts with food and beverage director about food and beverage needs for events.
•• Maintains visible presence on the course during peak times of play.
•• Supervises the work of the Assistant Golf Professional.
•• Supervises golf play of members and guests from the first tee and maintains starting
times according to the club’s rules and regulations.
•• Provides golf-related information for the club’s newsletter.
•• Provides for the collection and issuance of all prizes associated with all competitions.
•• Implements an overall safety program that conforms to OSHA standards for the Golf
Department.
•• Manages new golf member orientation program.
•• Performs other appropriate tasks assigned by the General Manager.
•• Holds Class A Certification through the PGA of America.
•• Has met PGA criteria for Head Professional.
•• Regularly exposed to moving mechanical parts and outside weather conditions.
•• Frequently exposed to fumes or airborne particles and toxic or caustic chemicals.
•• Occasionally exposed to wet and/or humid conditions; high, precarious places;
extreme cold; extreme heat; risk of electrical shock; and vibration. The noise level in
the work environment is usually moderate to loud.
•• Able to meet and perform the physical requirements and to work effectively in an
environment which is typical of this position.
•• Frequent lifting, bending, climbing, stooping and pulling.
•• Frequent repetitive motions.
•• Continuous standing and walking.
Assistant Golf Professional

Position
Assistant Golf Professional
Related Title: Assistant Golf Pro
Reports to: Golf Professional
Supervises: May supervise Golf Shop Manager
•• Associate’s degree or one to two years related experience and/or training, or equiva-
lent combination of education and experience.
•• Knowledge and understanding of typical golf course procedures.
•• Fully knowledgeable of all opening and closeout procedures of the Golf Pro Shop.
616 Chapter 15
•• Familiar with all aspects of tournament set-up, including scorecards, golf car tags,
proximities, staging area set-up, and billing charges.
•• Keeps Golf Pro Shop counter and club repair area neat, clean, and organized at all
times.
•• Maintains complete knowledge of the handicapping system and all pertinent handicap
information.
•• Stays updated and current on all upcoming club events.
•• Maintains playing ability and works to stay competent in all areas of the game.
•• Responsible for maintaining a clean, safe working environment, with emphasis on
promoting employee health and safety.
Assist Golf Professional with numerous activities relating to the management and opera-
tion of the club’s golf program.
Job Tasks/Duties
•• Assists Golf Professional in instructing and with merchandising, on-course, golf car,
and personnel management responsibilities.
•• Maintains Golf Pro Shop inventory control system.
•• Assists members by providing and interpreting golf policies, rules, and regulations.
•• Conducts golf clinics.
•• Maintains handicap records.
•• Operates Pro Shop in absence of Golf Pro Shop Manager.
•• Oversees Pro Shop inventory and periodically conducts physical counts of merchan-
dise, including scorecards, tees, matches, pencils, ball marks, golf car tags, and tee
sheets.
•• Maintains and inventories all stock items necessary for in-house club repair work.
•• Documents and keeps accurate records of all in-house and outside club repair work.
•• Updates all charges and credits for club repair work.
•• Assumes Golf Professional’s duties in his or her absence.
•• Manages the daily opening and closing of golf operations.
•• Selects, trains, supervises, schedules and evaluates the Golf Pro Shop Manager,
starters, rangers, caddie master, golf car shop maintenance mechanics and bag,
range and golf car attendants.
•• Assists in the coordination of tournaments and special events.
•• Ensures all tournament winners are properly entered into the credit book with correct
dates and description of event.
•• Makes copies of tournament results and enters into the correct files.
•• Coordinates junior golf activities.
•• Assists in all daily scheduling of lessons for all teaching assistants.
•• Provides golf instruction.
•• Keeps up-date on times needed for golf clinics and group lessons.
•• Makes copies of all lesson fees.
•• Performs starter or marshal duties as needed.
•• Managers USGA handicap system for members.
•• Ensures course is properly marked.
•• Attends staff meetings.
•• Performs other appropriate tasks assigned by the Golf Professional.
•• Must be a member of the PGA or PGA Apprentice working to attain PGA Professional
status.
•• Sufficient stamina to tolerate hot, cold, humid, and rainy outdoor weather for several
consecutive hours.
Golf Shop Manager

Position
Golf Shop Manager
Related Titles
Golf Retail Manager; Merchandise Coordinator; Pro Shop Manager; Golf Pro Shop Man-
ager
Supervises: Golf Shop Salesperson
•• High School diploma or GED required.
•• Basic computer skills, including proficiency in Microsoft Office and POS system.
•• Able to manage all aspects of golf pro shop.
•• Supervises and trains salespersons.
Responsible for the overall retail operation of the Golf Pro Shop. Creates merchandising
displays to maximize sales and product turnover. Provides superior customer service.
Observes club’s safety rules and regulations.
Job Tasks/Duties
•• Answers questions concerning club services.
•• Controls and manages play, ensures that all members and guests are checked in and
billed properly.
618 Chapter 15
•• Reminds all golf-playing members of rules and regulations governing golf course
usage.
•• Maintains billing charges of members and guests; submits billing charges to account-
ing department in a timely manner.
•• Develops open-to-buy procedures for each category.
•• Promotes daily Golf Pro Shop sales and superior customer relations.
•• Plans, promotes, merchandises, and markets special events and sales.
•• Develops and maintains shop displays.
•• Monitors the receiving and checking-in of all merchandise.
•• Processes all paperwork and coding on invoices.
•• Assists Assistant Golf Professional with yearly budgets and merchandise goals and
strategies.
•• Coordinates inventories and provides monthly inventory reports.
•• Maintains all inventory SKU controls for all items in inventory and pricing.
•• Monitors procedures for special orders and returns.
•• Signs for and accepts full responsibility for a cash bank to be used for operational
needs and cashing member checks.
•• Assists customers with merchandise selections; works at sales counter as necessary.
•• Selects, trains, supervises, schedules, and evaluates golf shop salespersons.
•• Creates and maintains an approved vendor list.
•• Supervises and maintains the point-of-sale (POS) system.
•• Works with Golf Professional to select and purchase products for tournaments.
•• Orders special order merchandise for members.
•• Charges members and guests for golf car usage.
•• Works closely with the Gate Attendant to alert staff of incoming guests and requests
from members.
•• Coordinates shop changeovers for special events and seasons.
•• Completes other tasks as assigned by the Assistant Golf Professional.
Bag Room Attendant

Position
Bag, Range and Golf Car Attendant
Related Titles
Bag Room Attendant (Specialist); Golf Car Runner (Attendant); Range Attendant; Member
Services Attendant; Golf and Range Attendant
Supervises: No supervisory duties are included in this position
•• High School diploma or GED equivalent.
•• Knowledgeable about the game of golf and its rules.
Provide bag, golf car and range services to members and guests.
Job Tasks/Duties
•• Brings golf cars from car shelter to car staging area outside Golf Pro Shop; checks
golf cars for tire pressure, brake operation and other safety considerations.
•• Loads bags from bag storage room onto golf cars.
•• Transports range balls to each end of range and fills appropriate containers.
•• Places baskets of balls at evenly spaced intervals on range.
•• Operates tractor and ball picker on range to retrieve balls.
•• Washes all range balls daily.
•• Removes bags from golf cars and returns bags to assigned rack in bag storage room.
•• Returns golf cars to car shelter; removes towels, pencils, score cards, tees, drink
cans, etc., from golf cars and saves reusable items; checks cars for damage; washes
golf car with pressure cleaner; parks car in shelter and connects charger cable.
•• Advises Pro Shop of clubs found on the course and destined for the lost and found.
•• Cleans all clubs for members and guests; cleans and maintains the club’s rental
equipment.
•• Maintains cleanliness of and order in Bag Storage Room.
•• Performs other appropriate tasks as assigned by the Assistant Golf Professional.
•• Valid driver’s license.
620 Chapter 15
Starter
Position
Starter
Related Title: Tee Time Attendant
•• Knowledgeable about the game of golf and its rules.
•• Must be friendly, tactful, courteous, and possess excellent communication skills.
Control pace of play on golf course by directing players to the first tee at appropriate
times.
Job Tasks/Duties
•• Provides information regarding course, play times, and other golf-related issues.
•• Verifies that all revenues have been properly recorded by inspecting receipts for all
players before they depart for course, practice tee, or range.
•• Dispenses range balls in accordance with club policies.
•• Keeps Assistant Golf Professional informed about rate of course play.
•• Determines rate of course play.
•• Maintains clean and orderly appearance of starter’s booth at all times.
•• Cleans sporting equipment and vehicles.
•• Arranges players in proper starting order and assigns appropriate tees.
•• Assigns golf cars.
Starter may also perform the following duties:
•• Ensures that members’ and guests’ bags are appropriately placed in golf cars;
•• Assigns caddies;
•• Trains and instructs caddies in proper duties and etiquette; and
•• Assists golf professional in running tournaments, clinics and other special events.
•• Supplies players with score cards, pencils, and rules of play.
•• Advises players and caddies about course conditions.
•• Performs standard opening and closing procedures.
•• Performs other appropriate tasks assigned by Assistant Golf Professional.
Greens and Grounds Department 1. Describe the purpose and functions of
Golf Course Superintendent the greens and grounds department.
Assistant Golf Course Superintendent (pp. 623–625)
Golf Course Maintenance Foreman 2. List positions commonly found in the
Equipment Mechanic greens and grounds department and
Equipment Operator describe their functions. (pp. 625–631)
Groundsperson
Laborer 3. Identify the greens and grounds
Budget department’s budgetary concerns and
Equipment equipment needs. (pp. 631–634)
Turfgrass Management and Maintenance 4. Identify turfgrass species and describe
Turfgrass Species their use on golf courses, and identify
Golf Course Sections golf course sections. (pp. 634–639)
Turfgrass Management Practices
Environmental Concerns 5. Describe basic turfgrass management
Water practices. (pp. 639–649)
Chemicals 6. Explain how environmental concerns
Wildlife such as water, chemicals, and wildlife
Audubon Cooperative Sanctuary affect golf course management
Program practices. (pp. 649–655)
16
Golf Course Maintenance
This chapter was written and contributed by Kevin Frank, Ph.D., Turf
Extension Specialist, Michigan State University, East Lansing, Michigan.
For many clubs, the golf course ranks among the members’ top concerns. The
course may be the reason that they joined the club and maintain their member-
ship. A golf course must be properly maintained or else many members will be
unhappy and the general manager/chief operating officer (GM/COO) will hear
about it. The golf course maintenance budget is often one of the higher expenses
at a club.
The care and feeding of the golf course falls to the greens and grounds depart-
ment, usually headed up by a golf course superintendent. It is this department that
plants, fertilizes, waters, and cuts the grass, laboring to keep it healthy and a fine
playing surface. The skills needed within this department range from a thorough
understanding of turfgrass to budgeting to equipment maintenance and repair to
a commitment to environmental protection.
Greens and Grounds Department

The GM/COO will need to have good communication with the golf course super-
intendent. This can be difficult, because the superintendent generally works in
a remote location separate from the clubhouse. The manager should be aware of
what occurs on the golf course, as members will often comment on or question an
activity. The manager should have a working knowledge of what has transpired or
will be transpiring, in order to be able to answer questions intelligently. Together,
the club manager and the golf course superintendent should ensure that mem-
bers are kept informed of changing golf course conditions via postings on bulletin
boards, e-mails, or the club’s newsletter. The club manager should help the golf
course superintendent in the administration area. In addition, the manager must
ensure the superintendent is in compliance with Occupational Safety and Health
Administration (OSHA) laws and other environmental regulations.
While it is the golf course superintendent who cares for and maintains the
golf course, the GM/COO must be able to work closely and cooperatively with
him or her. Mutual respect should develop between the club manager and the
superintendent. The GM/COO needs to support the superintendent and have an
understanding of many issues affecting the course. These include:
•• Water. The superintendent must have a sound water management program.
Water hazards and lakes require maintenance, and the grass must be watered
to ensure that it stays healthy and green. To reduce the potential for water
623
624 Chapter 16
The members of a greens and grounds department work on the course’s water manage-
ment program. (Courtesy of Kevin Frank)
contamination, golf course superintendents must wisely manage the chemi-

cals they use on the course. In many areas of the country, water conservation
is also an issue. Clubs need to examine irrigation amounts and intervals, and
the use of effluent water and wetting agents on the greens.
•• Pesticides. Few, if any, courses could provide the quality of greens that mem-
bers desire and have come to expect without the use of some pesticides and
fertilizers. Primary concerns of the club manager include ensuring that pesti-
cides are stored safely and applied according to label directions. Clubs should
install concrete floors in their storage sheds and make sure there is good ven-
tilation and that pesticides are separated by group. Other things the GM/COO
can do to help the superintendent manage pesticides safely include inspect-
ing pesticide containers often and making sure the superintendent has a spill
cleanup procedure in place.
•• Recycling and waste disposal. The most common waste products that super-
intendents must decide whether to recycle or dispose of include grass clip-
pings, pesticide rinsate, batteries, motor oil, and solvents. Grass clippings can
be “recycled” by spreading them along roughs and around trees. Batteries
can be turned over to a company that recycles them. Pesticide rinsate can be
recycled in the field, but only if done in the proper doses.
Golf Course Maintenance 625
•• Wetlands. Proper golf course management can help protect and sustain exist-
ing wetlands. Golf courses provide large recharge areas that help supply
wetlands with water and filter the water to help purify it before it enters wet-
land areas. Also, golf courses help erosion control and serve as buffer zones
between urban environments and wetland areas.
•• Equipment. The equipment that the grounds crew has will often determine
how well the course is kept up. Some basic utility vehicles include off-road
vehicles, all-terrain vehicles, and on-road vehicles. Two other major pieces of
equipment are mowers and tractors.
Golf Course Superintendent

The way a golf course plays is at the very core of the game of golf, and the golf
course superintendent is the person primarily responsible for the playing condi-
tions. This individual may carry the title of golf course superintendent, greens
superintendent, golf course manager, or director of golf operations. Superinten-
dents manage all golf playing areas and the surrounding grounds, manage equip-
ment and facilities used in the golf course operation, supervise the maintenance
staff, and budget and oversee expenditures related to maintaining and improving
the golf course. See Chapter Appendix A for a sample job description for a golf
course superintendent.
The superintendent usually has a good working relationship with the golf
professional and often will work closely with the chairperson of the club’s greens
and grounds committee. The greens and grounds committee oversees golf course
conditions and works with the superintendent on golf course landscaping, beauti-
fication matters, and special projects. The greens and grounds committee is often
involved in the budgeting process as well.
In most clubs today, the golf course superintendent will report to the GM/
COO. However, there are still a few clubs where superintendents work in a tri-
umvirate relationship with the clubhouse manager and golf professional. Regard-
less of the organization, the golf course superintendent is the golf course and turf
expert.
Typical Functions. The golf course superintendent assumes responsibility for
managing and maintaining the club’s golf course(s) and other club properties and
assets, which may include:
•• Maintenance equipment.
•• The golf cart fleet.
•• Clubhouse grounds and landscaping.
•• Tennis courts, the swimming pool, and other outdoor recreational facilities.
•• Open spaces, wooded areas, unused acreage, and areas alongside the club’s
perimeter fence.
•• A sod farm and nursery.
•• Other properties.
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In addition, the golf course superintendent typically assumes the following

responsibilities:
•• Construction, renovation, and/or reconstruction of the club’s golf courses and

other outdoor areas, whether performed by maintenance staff or outside con-
tractors. In private club organizations, the superintendent submits written
plans for course construction, reconstruction, or renovation projects to the
greens and grounds committee. Projects approved by the committee are for-
warded to the board of directors for final approval.
•• Prepares the annual budgets for the maintenance and capital improvement of
the club’s golf course(s). The superintendent formulates the annual mainte-
nance and capital budgets in line with the greens and grounds department’s
long-range plan and defined maintenance standards.
•• Interviews, hires, trains, directs, and supervises a staff of employees for the
purpose of maintaining the club’s properties. The superintendent has the
authority to terminate the employment of subordinates.
•• Plans all maintenance and project work, applying his or her agronomic and
administrative expertise to achieve the department’s maintenance standards
and long-range goals.
•• Oversees the scheduling and routing of personnel and equipment to accom-
plish the work. The superintendent frequently inspects the golf course(s) and
related areas to evaluate how well management standards are being achieved
and to implement changes in management programs.
•• Acquires equipment and purchases necessary supplies to maintain the golf
course(s) and other properties. The superintendent is responsible for inven-
tory control and oversees the equipment maintenance programs. The super-
intendent approves all expenditures and exercises cost-control measures
to keep, as nearly as possible, operating and capital expenses in line with
approved budgets.
•• Keeps accurate and complete records on payroll, inventory, weather data,
maintenance procedures, pesticide applications, etc.
•• Communicates regularly with other members of the club’s top management
group to discuss activities, goals, plans, and member/customer feedback. The
superintendent also plays golf regularly with these individuals. In a private
club organization, the superintendent attends all greens and grounds com-
mittee meetings and possibly board meetings.
Certification and Education. The Golf Course Superintendents Association of
America (GCSAA) sets the standards for golf course superintendents. It is also the
certifying body of the industry. In 2003, the GCSAA raised its standards for both
membership and certification. “Today’s golf course superintendents are being
challenged by golfers and employers to produce at unprecedented levels,” the
association wrote, “and there is no reason to believe those demands will wane in
the future.”
Attributes of a Golf Course Superintendent

The Golf Course Superintendents of America released the following statement about
what a golf course superintendent must be:
•• Scientist—The golf course superintendent directs an agronomically sophisti-
cated turfgrass management program designed to provide a playing surface
that meets the facility’s aesthetic and playing standards, while preserving the
layout’s environmental integrity. In addition to agronomy, the superintendent
also needs to know about entomology, soils, meteorology, chemistry, physics,
mechanics and more.
•• Environmentalist—The golf course superintendent must understand the com-
plexities of the specialized golf course ecosystem and its interrelationships with
the surrounding environment.
•• Golf strategist—A golf course superintendent must understand the rules and
strategies of the game to provide a course that is fair and delivers the right
mixture of challenge and entertainment.
•• Resource manager—The golf course superintendent masterminds the alloca-
tion of the facility’s resources—including labor, equipment, and supplies—and
serves as the project organizer and leader.
•• Administrator—The golf course superintendent’s administrative functions include
budget development, purchasing, cost control, inventory control, and payroll—
plus keeping records of weather, course conditions, and management practices.
In addition, the superintendent is responsible for achieving and documenting
compliance with federal, state, and local laws and regulations.
•• Communicator/educator—The golf course superintendent communicates with
the course maintenance staff, other management team members, board of
directors, golfers, vendors, suppliers, professional colleagues and sometimes
golf course architects and builders. More and more, superintendents are being
called upon to educate community groups and media about golf course and
turfgrass management in today’s changing world.
In order to become a Class A member of the association, golf course super-

intendents have to complete entry-level and ongoing requirements for continu-
ing education and service, earn tenure as a superintendent, and possess pesticide
application credentials. The continuing education program has been developed
around the core competencies of:
•• Communications. Superintendents must be able to communicate with stake-
holders, facilitate information flow, manage conflict, network, and promote
awareness of the profession.
•• Leadership. Superintendents must be able to create a vision, determine expec-
tations, empower staff, engage in continuous learning, establish a productive
work climate, manage time, promote ethics and values, solve problems, and
make decisions.
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•• Operations management. Superintendents must be able to conduct a safe oper-

ation, develop a crisis management plan, develop a long-range master plan,
manage ongoing programs, develop and manage projects, document regula-
tory compliance, manage finances, manage administrative duties, and man-
age inventory and purchasing duties.
•• Personal skills. Superintendents must be able to balance work and family life,
manage personal finances, manage stress, and plan career development.
•• Resource use. Superintendents must be able to anticipate staffing needs, con-
struct and renovate golf course areas, handle hazardous materials, hire and
fire staff, maintain the golf course and grounds, manage equipment, manage
horticulture, manage soil, manage staff, manage the course to accommodate
the rules of golf, manage turf, manage the irrigation system, operate com-
puter systems, train staff, use fertilizers and plant protectants, and use water
resources.
The certification requirements for golf course superintendents are more exten-
sive than those for Class A membership. Members first must be found eligible for
certification, which means that they have:
•• Attained Class A membership status and maintained it for three years.
•• Earned five additional education points after attaining Class A.
•• Self-assessed their competencies.
•• Created a developmental action plan.
Certified superintendents must submit a portfolio of work samples, skill
statements, and case studies; pass a six-hour exam; and have their golf courses
evaluated by two other certified golf course superintendents.
Assistant Golf Course Superintendent

The assistant golf course superintendent is under the general supervision of the
golf course superintendent. Typical tasks of an assistant golf course superinten-
dent include the following:
•• Assisting the golf course superintendent in planning, laying out, and super-
vising the construction and maintenance of golf course greens, tees, fairways,
and paths.
•• Laying out work and supervising personnel and the use of equipment and
material in building greens, fairways, roads, and paths.
•• Directing construction work involving the use of equipment.
•• Supervising the repair and maintenance of all mechanical and motorized
equipment used on the golf course.
•• Instructing equipment operators in the operation and care of mowing and
other equipment.
•• Supervising and participating in the operation and maintenance of pumps
and in the maintenance of irrigation and drainage systems.
Assistant golf course superintendents need to have a working knowledge of
the construction and maintenance of golf course tees, fairways, and greens. They
also need to understand seeding and know how to maintain the types of turf used
on golf courses, as well as be knowledgeable about the planting, cultivating, prun-
ing, and care of plants, shrubs, and trees. Increasingly important is familiarity with
environmental matters and the ability to properly apply fertilizers and pesticides.
Assistant golf course superintendents are also often called upon to work with the
course’s irrigation and drainage systems.
Golf Course Maintenance Foreman

The golf course maintenance foreman is under the supervision of the golf course
superintendent or the assistant superintendent. The foreman assists in directing
and participating in the construction and maintenance of the golf course and over-
seeing its watering program. Other common tasks include:
•• Scheduling, maintaining, and performing minor repairs on complex (auto-
matic) irrigation systems.
•• Operating and maintaining well-pumping equipment.
•• Directing the work of golf course personnel as necessary.
Chapter Appendix A shows a sample job description for a golf course main-
tenance foreman.
Equipment Mechanic
At a typical golf club, the greens and grounds department is responsible for sev-
eral hundred thousand dollars in equipment inventory. In this regard, one of the
most important positions within the superintendent’s staff is the mechanic who
maintains all golf course equipment. The mechanic’s ability to maintain the equip-
ment in good repair will be directly related to the length of service obtained from
the equipment. Typical tasks for the equipment mechanic include:
•• Inspecting, diagnosing, and repairing mechanical defects in automobiles,
trucks, sweepers, rollers, mowers, and other mechanical equipment used in
road and utility work.
•• Tearing down motors and performing general overhauling.
•• Grinding valves.
•• Repairing transmissions, differentials, carburetors, distributors, fuel pumps,
steering systems, starters, generators, universal joints, sirens, hydraulic sys-
tems, and high-pressure pumps and valves.
•• Installing and adjusting brakes.
•• Installing batteries, tires, wiring, and glass.
•• Making fittings used in automotive equipment (requires machining or weld-
ing work).
•• Painting vehicles and other equipment as needed.
630 Chapter 16
•• Maintaining records of repairs made, orders, and time worked.

•• Making occasional emergency repairs outside the shop.
Chapter Appendix A shows a sample job description for an equipment mechanic.
Equipment Operator
Equipment operators work the light motorized equipment and trucks on the
golf course. This can include gang mowers, tractor-drawn mowers, loaders,
dump trucks, and portable pumps. Equipment operators need to understand the
mechanical operation of trucks and other motorized equipment as well as know
how to use common construction and maintenance tools. Chapter Appendix A
shows a sample job description for an equipment operator.
Groundsperson
The groundsperson is responsible for the care and maintenance of several des-
ignated holes on a golf course. Each groundsperson is typically assigned a spe-
cific set of holes to be responsible for. On their designated areas of the course,
groundspeople:
•• Operate powered mowing equipment in trimming golf course greens, aprons,
and tees.
•• Water and fertilize tees, greens, and fairways.
•• Grade and prepare base, lay sod, and seed tees, greens, and fairways.
•• Change pins and tee markers.
•• Maintain ball washers, sand traps, and water hazards.
•• Repair and replace pipe on sprinkling systems.
•• Install forms and lay walks, using gravel and asphalt mixes.
•• Spray chemicals on greens.
•• Rake and maintain sand traps.
•• Assist in the construction of new greens, tees, and fairways by grading, pre-
paring base, and planting turf.
•• Operate dump trucks and other light equipment in hauling materials and
removing debris.
•• Trim trees, and prune shrubbery and flowers.
•• Cultivate shrubs and flowers.
Chapter Appendix A shows a sample job description for a groundsperson.
Laborer
Clubs will also employ a number of laborers, depending on the season and the
demands of the course. These laborers will do everything from cleaning chores
to cutting weeds to replacing sprinkling systems. They’ll work closely with the
golf course maintenance staff to do any of the numerous tasks needed to keep the
course healthy and thriving.
Budget
The greens and grounds department has immense fiscal responsibility to the rest
of the club. The average maintenance cost per hole of golf is $68,208, according to
the CMAA 2011 Finance and Operations Report. The average golf course mainte-
nance expense as a percentage of dues revenue is 42.4 percent.1
The first step in forming a golf course budget is to develop a standards policy.
(Exhibit 1 shows a portion of a standards policy from Willoughby Golf Club.) The
standards policy includes how the golf course will be maintained. Is the club striv-
ing to be the best country club course in the region? The country? The world? The
standards policy should include input from the club’s GM/COO, golf professional,
golf course superintendent, and greens and grounds committee chairperson.
Step two is to develop the maintenance plan, including addressing such
items as:
•• What is the desired green speed?
•• How often will cups be changed?
•• How will pests be controlled? (This can be very specific with respect to indi-
vidual weeds, insects, and diseases.)
•• How often will fairways be mowed?
Formulating the maintenance plan will include an understanding of turf qual-
ity conditions. For example, will a certain level of disease incidence be acceptable
or will it be expected that no turf be lost from disease activity?
Once the maintenance plan is in place, the actual budgeting process begins.
The budget consists of:
•• A written maintenance plan based on the standards policy.
•• A maintenance department organization chart, including the chain of com-
mand and who reports to whom.
•• A staffing chart with job descriptions, including how many staff members are
needed to conduct maintenance activities and how many hours they typically
will work.
•• Descriptions of each category in the budget.
•• A spreadsheet chart with category items down the x axis and months down
the y axis.
•• Capital equipment purchases and repairs (see Exhibit 2).
•• Capital or special improvement projects.
Hand labor may be necessary for some golf course management practices. For
example, hand labor might be used to fight annual bluegrass infestations or to cre-
ate a barrier between a putting green turf and the surrounding turf.
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Exhibit 1 Standards of Playability Policy
The Willoughby Green Committee, including the Golf Course Superintendent, Golf
Professional and General Manager, has developed specific Standards of Playability
for our golf course. These standards have been reviewed by a cross-section of the
membership at large, and we are grateful for their contributions to the final product.
The Standards reflect the Willoughby membership’s expectations as to the mainte-
nance and conditioning of our golf course. Our over-riding objective is to properly
care for and enhance our most valuable asset and to provide Members and guests
with excellent playing conditions on a continual basis within an appropriate budget.
The Board of Directors has adopted these Standards as a guideline for the perfor-
mance expectations of the Golf Maintenance Department.
The Standards of Playability set forth herein become the basis upon which the Golf
Course Superintendent will establish or re-establish written guidelines for daily,
weekly and monthly course maintenance procedures. These Standards and mainte-
nance guidelines will be used to develop the annual Operating and Capital budgets.
The following Standards of Playability include an overview of key maintenance
procedures used to achieve the Standards:
TEES
•• Cut to a height of between ¹∕³ and ½ inch three to five days per week depending
on growing conditions.
•• Have a dense turf stand and smooth surfaces.
•• Weed free.
•• Divots filled by the maintenance staff three to four days per week.
•• Tee markers are moved daily, to create interesting and challenging holes, and
are to be placed in a location that is perpendicular to the target.
•• Members are expected to dispose of whole and broken tees to prevent damage
to mower blades.
•• Trash containers are emptied daily and ball washers cleaned once per week.
•• Hole-marker areas are trimmed monthly.
•• Verticut and hollow-tine aerified three times during the summer months.
•• Over-seeded during winter months with Poa trivialis.
•• Fertilized approximately every two months.
Source: Club Operations and Performance Review, Premier Club Services, Club Managers
Association of America.
There are dangers in comparing the golf course budgets of different clubs, as
there are many factors that will affect the budget:
•• The number of golf rounds will affect the budget. More players results in
more wear and tear on the golf course. It may be necessary to core aerate more
often. Other courses may need to reseed tee boxes more often.
Exhibit 2 Sample Budget for Replacement of Golf Course Maintenance
Equipment
Golf Course Maintenance
Utility Cart $ 16,000 $ 16,000 Replacement

Walk mowers (4) $ 31,200 $ 31,200 Replacement
Elec. Utility Carts (2) $ 16,500 $ 16,500 Replacement
Bunker Rake $ 9,500 $ 9,500 Replacement
Metal Bldg 20' × 20' $ 25,000 $ 25,000 To house fertilizer (currently
in equip. storage area)
TOTAL $ 98,200 $ 25,000 $ 73,200
Source: The Moorings Club, Vero Beach Florida, Club Operations Manual.
•• Environmental concerns will affect the budget. A club may be in a climate

where it will have to spray for disease more often.
•• Design elements may require certain maintenance practices such as fly
mowing.
The amount of money available to maintain the golf course will affect the turf
conditioning and the product that the club presents.
Equipment
Efficient, properly maintained equipment is an important component in modern
golf course maintenance. To properly groom and maintain a golf course at an
acceptable level, a variety of equipment is required. Often, equipment inventories
will include makes and models of equipment spanning many years and very high
dollar amounts. According to the CMAA 2011 Finance and Operations Report, the
average annual expenditure for golf course equipment is $100,000.2 A well-run
golf course maintenance operation will have planned replacement schedules for
its equipment. Types of equipment includes:
•• Mowing equipment, including multiple riding mowers for fairways or greens,
various types of walking mowers, and special rough or trimming mowers.
•• Tractors and trucks, including utility trucks (often with trailer attachments),
pickup trucks, backhoes, dump trucks, and jeeps or trucks for snow plowing.
•• Sprayers and spreaders, including high-volume tractor-mounted sprayers,
drop spreaders, mist sprayers, and foggers.
•• Hand tools, including shovels, spades, post hole diggers, rakes, edgers, weed-
eaters, shears, sickles, and brooms.
•• General maintenance equipment, including verticutters, rotary tillers, pumps,
aerators, blowers, power leaf sweepers, snowplows, power rakes, and top-
dressing machines.
634 Chapter 16
The golf course superintendent is responsible for a wide array of turf care equipment
that the department depends upon to maintain a healthy course. (Courtesy of Kevin Frank)
•• Accessories, including hole cutters, cup setters, tee markers, and flagsticks.
•• Shop equipment, including plumbing tools, mechanic tools, and woodworking
equipment.
•• Communications equipment, including walkie-talkies, beepers, pagers, and
cellular telephones.
Turfgrass Management and Maintenance

The goal of golf course maintenance is to produce the highest quality turfgrass
conditions for playing the game of golf. Not only do members demand it, but
the elevated professionalism of golf superintendents demands it. Even the most
dedicated superintendent is unlikely to be able to produce perfect turfgrass all the
time—there are too many conditions that work against that, whether it is disease,
weather, or nearby trees. Other factors can include the number of rounds of golf,
the experience and knowledge of the golf course superintendent, and budgets.
However, there are many things that the golf course superintendent can
do to produce high-quality playing conditions for the majority of the time. This
includes selecting the right type of grass and practicing sound turfgrass manage-
ment principles.
Turfgrass Species
There are many different types of grasses. Wheat, corn, rice, barley, and bam-
boo are all classified as grasses. What makes turfgrasses different from regular
grasses? There are three criteria that set turfgrass apart from other grasses. First,
turfgrass tolerates frequent, close mowing. If you mow corn, for example, it will
not regrow—it’s done. On putting greens it is now possible to mow turfgrass at
cutting heights as low as ⅛ of an inch or less. Mowing turfgrasses at these low cut-
ting heights creates a very smooth, fast surface. Often, people that are not familiar
with golf will not believe that putting greens are actually living plants and not
artificial turf.
Secondly, turfgrass forms a contiguous or dense surface. This density allows
golfers to play the game of golf from the tees and fairways and to have putts roll
smoothly on greens.
Finally, turfgrass can withstand a great deal of traffic. This might be the most
important property of turfgrass. If it did not possess this characteristic, it would
be only a matter of time before golf courses would have to be closed and reestab-
lished. Turfgrass has the ability to creep and regrow over damage from divots in
fairways, ball marks on greens, and cart traffic all over the golf course.
Grasses are typically divided into two categories: cool season grasses and
warm season grasses. It is a classification based on photosynthetic pathways—
that is, how the plant makes food. Cool season grasses thrive at air temperatures
of 65°F to 75°F (16°C to 24°C), while warm season grasses prefer 80°F to 95°F (27°C
to 35°C). Exhibit 3 shows the climactic zones in the United States where different
grasses do best.
Both cool and warm season grasses will grow outside of these temperature
ranges, but these are the temperatures where they grow best. In the north, cool
season grasses grow best in the spring and fall. Warm season grasses will grow
vigorously during the hottest portions of the summer in the south. Warm season
grasses will not survive in the north due to cold weather.
In what is known as the transition zone, it is possible to grow both cool and
warm season grasses. In these areas, the type of grass that is grown will likely be
determined by the position in the transition zone. The northern edge will probably
have cool season grasses while the southern edge will have warm season grasses.
Cool Season Grasses. Cool season grasses grow rapidly in the spring. They are
somewhat intolerant of summer stresses and often enter dormancy when water
becomes deficient. Their growth increases again in the fall, and they may even
stay green throughout the winter. Common cool season turfgrasses include
Kentucky bluegrass, creeping bentgrass, Poa annua (annual bluegrass), tall fes-
cue, fine fescue, and perennial ryegrass.
Kentucky bluegrass is a widely used cool season turfgrass. It has been used
on fairways in dry, northern climates and with new cultivars that are called low-
mowing tolerant or dwarf varieties. It can tolerate low mowing, with mowing
height usually set at from ½ inch to an inch. About twenty years ago, it was used
extensively on fairways and roughs but it fell out of favor because of persistent
disease problems and invasion by annual bluegrass. It’s only been in recent years
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Exhibit 3 Turfgrass Climactic Zones
Cool/
Humid Cool/
Humid
Cool/
Arid
Transition Zone
Warm/
Arid
Warm/
Humid
that the breeding of dwarf and low-mowing varieties with improved disease resis-
tance has revived its popularity. It may be used on fairways in northern, arid cli-
mates and is widely used throughout the northern United States as a rough grass.
Creeping bentgrass is considered a superior-quality playing surface. It is
used on greens, tees, and fairways. It can tolerate very low mowing heights on
greens (less than ⅛ of an inch) and fairways (less than ¼ inch). Golfers particularly
like this grass, as it can make putting like rolling a ball across the surface of a table.
Its putting green qualities in terms of speed and smoothness of ball roll are very
appealing to golfers. These playing characteristics have caused many golf courses
in the southern United States to try to grow bentgrass greens because they are
perceived to be a higher-quality putting green surface than bermudagrass greens.
One of the common problems with creeping bentgrass is its tendency to
become infected with annual bluegrass (Poa annua). Annual bluegrass dominates
older golf courses in northern regions where moisture is plentiful and tempera-
tures are cool. Many golf course superintendents work hard to eliminate annual
bluegrass because it produces seedheads—even under the mowing height—that
can influence putting green smoothness and may reduce turfgrass quality.
However, many golf course superintendents throughout the country have
learned how to effectively manage annual bluegrass. There have even been major
championships played on annual bluegrass. For annual bluegrass to achieve high
quality, it may require frequent irrigation and greater attention to preventive dis-
ease management and turf fertilization.
When annual bluegrass invades bentgrass, it starts a problem that is challeng-
ing to address; annual bluegrass may become a serious contamination problem
in bentgrass five to ten years after the bentgrass has been planted. Clubs that can
afford a great deal of labor may send out grounds staff to hand-pick annual blue-
grass out of creeping bentgrass on a weekly basis. Plant growth regulators can
suppress seedheads. New herbicides are being developed to selectively remove
annual bluegrass from creeping bentgrass. One such herbicide is Velocity, which
has shown great promise in selectively controlling annual bluegrass in bentgrass.
Warm Season Grasses. Warm season grasses typically grow more vigorously than
cool season grasses, as they are deeper-rooted. They are more tolerant than cool
season grasses to drought, heat, and wear. While most cool season grasses are
seeded, warm season grasses tend to be established vegetatively through sod or
sprigging. When the temperatures get low, warm season grasses aren’t as hardy
and tend to discolor. Common warm season grasses include bermudagrass, zoy-
siagrass, centipedegrass, St. Augustinegrass, seashore paspalum, and kikuyugrass.
Bermudagrass is a very aggressive turfgrass and the most common one in
the warm zones. It can be mowed from greens height (⅛ inch) to rough height
(3 inches) and has excellent drought and wear tolerance. Its growth stops when
temperatures drop below 60°F (16°C). During this dormant phase, it shouldn’t be
watered lest the course turn into a bog. Discoloration occurs when temperatures
drop below 50°F (10°C). It doesn’t tolerate shade well.
In warm climates that have cool winters, bermudagrass will go dormant.
Many golf courses will overseed with cool season grasses in the winter. Over-
seeding provides winter color, improves winter and spring playing conditions,
and attracts golfers to the course (especially from northern regions where snow is
preventing play). Concerns with overseeding include:
•• Costs.
•• Uniform establishment problems.
•• Broadleaf weeds, ryegrass, and Poa annua.
•• Spring transition problems.
•• Disruption of play.
•• The necessity for a good irrigation system.
Weather is unpredictable, which makes it difficult to schedule overseeding
times.
Zoysiagrass is often used in the northern parts of the warm zone. Due to
recent breeding efforts, it is now producing outstanding turfgrass quality. It has a
very low cutting height and forms an excellent playing surface because of its finer
texture. It adapts well to a variety of soil and climate conditions and tolerates cold
temperature, shade, and salt spray fairly well. It is a turfgrass that grows slowly
but is extremely dense and chokes out weeds.
Transition Zone. The transition zone is the area of the country where it is espe-
cially challenging to grow turfgrass, as extremes in both high and low tempera-
tures may be experienced in one year. Characteristics of the transition zone include
638 Chapter 16
high humidity and high temperatures. This zone extends through the central part
of the country and includes parts of the warm and cool zones. It is the most dif-
ficult region in which to grow turfgrass.
Every grass, including both cool and warm season turfgrasses, will grow in
this region, but none will survive indefinitely due to the extremes in climate. Dis-
ease pressure can be intense in this zone due to the high humidity and tempera-
tures during the summer.
Golf Course Sections

Every section of the golf course has different cutting and treatment needs that are
dictated by the necessities of the golf game. Many courses will even have different
species of grass for different areas of the course. Each golf course is made up of:
•• Greens
•• Fairways
•• Tees
•• Rough
•• Bunkers
Note: Some of the following definitions were provided by the Golf Course Superinten-
dents Association of America.
Greens. The greens are the portion of the course where the hole, flagstick, and
cup are located. As it is the spot where golfers putt to the hole, it is also often the
part they care the most about and will be most demanding about. Greens require
frequent mowing and golfers generally want them to be very smooth and fast.
Fairways. While the rules of golf contain no precise definition of fairways, they
are usually deemed to be the area between the tee and putting green. In terms
of maintenance, fairways are those areas of the course that are mowed at heights
between ½ and 1 ¼ inches, depending on the grass species and the cultural inten-
sity desired. Fairways normally are about fifty yards wide but vary from about
thirty-three yards to more than sixty yards, depending on the caliber of the golf
course involved and limitations imposed by architecture or terrain.
Tees. The tee, or teeing ground, is the starting place for the hole to be played. It is
a rectangular area two club lengths in depth, the front and the sides of which are
defined by the outside limits of two tee markers.
Rough. The rough includes those areas outside the fairways where the grass is not
cut as low. Some courses will have naturalized roughs where they mow very little
or not at all. Many courses will have a first and second cut of rough where the first
cut is higher than the fairway, but lower than the second cut. The rough generally
requires far less maintenance than the other areas of the course.
Bunkers. Bunkers on golf courses were originally places where livestock found
shelter from the weather. They’ve become a hot topic among golfers. Many golfers
complain that the sand in bunkers is too hard or too soft, too wet or too dry, and/
or that the bunkers are inconsistent.
Bunkers, though, are defined and designed as hazards—they are places where
the golfer doesn’t want to be. The answer to many golfers’ complaints about bun-
kers may be to refer them to the golf pro, who can teach them how to play bunker
shots or, better yet, stay out of bunkers.
That said, there are several maintenance challenges when it comes to bunkers.
Choosing the correct sand is not easy. Norm Hummel, a soil tester, says that “prob-
ably only a half dozen sands in the U.S. meet the criteria for an excellent bunker
sand.... [O]f all the sands we test, we probably approve only about five percent,
and some of those are marginal.”
Golf course design often dictates additional bunker maintenance. Sod-faced
pot bunkers are unique and often require rebuilding, as the sod wall will erode
and collapse over time. Golf course design can create problems if traffic patterns
are directed over the edge of a bunker. There are some designs that dictate the
golfers walk near the lip of a bunker; this will cause erosion and throw sand onto
the turfgrass bank, which can burn the turf on a hot summer day. Also, rainfall can
wash out bunkers that have poor drainage.
Turfgrass Management Practices

The golf course superintendent’s job centers on the care of the course. In this task,
he or she is laboring on behalf of a very demanding clientele—golfers who love
the game and come in with very high expectations concerning the condition of the
course.
One of the superintendent’s main jobs is to keep the grass alive. What kills
grass? The following are the main culprits:
•• Traffic from golfers
•• Conditioning and environment
•• Budgets
•• Weather stresses
There are many things that the golf course superintendent can do to respond
to these pressures. Golf course maintenance tasks tend to revolve around mowing,
planting, irrigation, drainage, cultivation, top-dressing, and fertilizing. Superin-
tendents are also under increasing amounts of pressure to speed up their greens.
Balancing the needs of the course’s trees and turf is also a responsibility that super-
intendents must keep in mind as they fight to keep the grass as healthy and green
as possible.
Mowing. Mowing is necessary to keep turfgrass attractive and healthy. The mow-
er’s blades should be sharp so that grass blades are cut cleanly, not ripped. Ripped,
frayed grass blades invite disease.
Cutting height refers to the distance above the soil line that grasses are clipped.
A bench setting is the height at which the bedknife is set above a firm, level sur-
face. This is generally the accepted measure for determining cutting height. Effec-
tive cutting height is the actual height at which grasses are cut. It varies from
bench setting, depending on the degree of thatch and floatation of the cutting unit.
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This grounds crew member uses a fly mower to cut the turf to its proper height. (Courtesy
of Kevin Frank)
Planting. Seeding, sodding, and sprigging—these terms refer to the way that grass
is introduced and grown. Different varieties of grass require different methods. A
seedling is a plant grown from seed and usually refers to a young plant. They are
planted in seed beds, an area of soil prepared for seeding. Sodding is the process
of laying down sod—already grown grasses that are rolled out with their root sys-
tems like carpet. Sprigging is the process of planting runners, rhizomes, stolons,
or vegetative segments of plants.
Irrigation and Drainage. The ability to deliver and remove water from golf courses
is crucial to producing excellent turfgrass conditions. The living plants that make
up a golf course require the appropriate balance of water, sunlight, and food to
flourish. Obviously, weather conditions affect these greatly. The amount of water
supplied to the course through irrigation systems varies based on the weather;
therefore, all golf course superintendents are keenly aware of the weather so they
can effectively manage their irrigation systems. Extensive weather tracking devices
often adorn their offices. Elaborate irrigation systems, often computer-operated,
are also becoming standard operating equipment. Irrigation is especially critical in
arid climates that are prone to droughts. In northern climates, freeze/thaw cycles
during the winter can result in burst irrigation lines and increased repair costs.
As a result of computerized irrigation systems and improved turfgrass variet-
ies, golf courses can now use less water more efficiently to achieve the same level
of conditioning. Continuing research will provide even more low-water turfgrass
varieties in the future. The GCSAA has identified several simple water conserva-
tion efforts, including the following:
•• Reading water meters monthly to monitor the success of water conservation
efforts. Golf course superintendents can compare usage to the same period
from the previous year. (They will, though, have to take into account weather
variances that can greatly affect the results of such comparisons.)
•• Watering at night or in the early morning when wind and evaporation are
lowest.
•• Washing all equipment and machinery by using a hose with a shutoff nozzle,
and soap and water from a bucket.
•• Checking for plumbing leaks and malfunctions and turning off any unneces-
sary water flows.
Managing the irrigation system can be one of the most important parts of the
golf course superintendent’s job. Water is crucial to the grass’s survival. If an irri-
gation system is not in good working condition, it will be impossible to maintain
a healthy, green course. Many clubs hire an irrigation specialist to manage the
irrigation system. (See Chapter Appendix A for a sample job description for an
irrigation specialist.)
All irrigation systems must take the following elements into account:
•• Rate of water loss through evaporation
•• Rate of water infiltration into the soil
•• Water-absorption capacity of the soil to which the water is applied
•• Depth of infiltration (usually related to depth of the topsoil)
•• Depth of plant roots
The supply or source of water can be one of the following:

•• The treated, potable water system of the club
•• A stored supply, such as in a lake or underground tank
•• A nearby stream or river
•• Effluent (gray/recycled) water
A typical irrigation system consists of sprinkler heads or mist applicators.
Sprinkler heads are located at the terminals of a piping system. When the water
pressure reaches a certain point, the heads begin to spray water. Sprinkler heads
are, in general, pressure dependent; the greater the pressure, the greater the flow
of water and the greater the area of coverage. Three common types of sprinkler
heads are fixed, pop-up, and pulsating.
Mist applicators are similar to the other types of sprinkler heads, except that
the nozzle is designed to create a fine mist. Because the discharge nozzles of mist
applicators are smaller in diameter, they are easier to clog and thus require more
maintenance.
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Syringing the turf can help keep the turf healthy during hot, dry days. (Courtesy of Kevin
Frank)
When courses get especially hot, many courses will use syringing to help
cool the turf during the hottest times of day. Syringing is the process of applying
small amounts of water to help the turf avoid heat stress. It is sometimes as simple
as dragging out a hose and sprinkling the grass. The sprinkling is light enough so
that water is applied only to the leaves, not to the soil.
The flipside of water management is drainage. Golfers don’t want to play
on a flooded, wet course. Drainage is critical to golf courses in all regions, but
especially in those that receive heavy rainfall. Golf course superintendents have
to manage such things as tiles, culverts, and catch basins to remove excess water.
Often new drainlines are installed shortly after course construction when it is real-
ized that certain turf areas are not draining well.
Excess water and moisture on greens can lead to black layers, while dry areas
often occur on elevated areas of greens and can form what is called localized dry spot.
Irrigation and drainage systems should be observed daily when in use and
inspected monthly. Observers should make note of any sprinkler units that do not
seem to deliver the correct quantity of water (either too much or too little). If too
little water is delivered it can be a sign of clogged pipes or nozzles, partially closed
valves, inadequate water pressure, or other problems.
As part of preventive maintenance, the following should be looked for each day:
This turf is suffering from irrigation issues. Water has pooled under the turf and has
damaged the surface. (Courtesy of Kevin Frank)
•• Pump problems
•• Leaks in the distribution system
•• Sprinkler heads not functioning
All control valves in the irrigation and draining systems should be exercised
semi-annually. Valves and control devices should be marked with an identifiable
code and special paint color. Their location should be documented for easy access.
Irrigation systems located in cold climates must be protected against freezing. To
winterize the system, it is usually necessary to remove the water.
Cultivation. Cultivation becomes an important part of turfgrass management
because the more a course is played, the more compacted the soil becomes. Com-
paction is the compression of soil particles resulting in loss of pore space in the soil
profile, resulting in a decrease in soil aeration. Compaction happens when golfers
walk the same path day in and day out. It also happens from cart traffic.
There are three layers of turfgrass—the grass itself, thatch, and soil. The
thatch is living and dead plant material. A healthy course will have a very small
amount of thatch.
There are many things that golf course superintendents and their staff can
do to cultivate the course and reduce compaction and thatch. One example is
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This photo shows a core aerator in action. Core aerators help fix soil layering problems
and leaves temporary holes in the turf. (Courtesy of Kevin Frank)
core aeration. Core aeration corrects soil layering problems by removing cores
of turf and soil. It’s a mechanical process that creates more air space in the soil
and promotes deeper roots. Core sizes are usually ¼ inch to one inch in diam-
eter and are two to eight inches long. The process cuts cores of soil from the
turf and then replaces it with sand. It helps to dilute the thatch. Aeration can be
accomplished by:
•• Hollow-tine coring and tine sizing
•• Shatter core aeration
•• Hydroject
•• Vertidrain
•• Verticutter
•• Spiker
Golfers hate core aeration because it makes for a short-term disruption in play
with a very bumpy course. However, it is essential for the health of the turf. Clubs
can help ease the pain of aeration for their members by making sure they com-
municate the benefits of aeration and give members plenty of advance warning
through e-mails, newsletters, and bulletin board notices about when it will be tak-
ing place.
Topdressing. Topdressing is a prepared root zone mix (usually sand) added to a

turf surface and worked in by brushing or irrigation. Topdressing promotes better
thatch control, improved putting quality, and soil modification. It is a method of
getting rid of soil layers. The drawbacks to topdressing are the disruption of play,
the cost, leaf abrasion, and finding the right material. Many older golf courses
may have a deep layer of sand topdressing that has been built up over years. Their
greens may perform similar to sand-based putting greens.
Fertilization. Fertilization maintains the healthy appearance members have come

to expect from landscaped grounds and golf courses. Exhibit 4 shows a sample
pesticide/fertilization application record. Commercial fertilizers usually contain
nitrogen, phosphorus, and potassium.
Nitrogen is the most widely used nutrient on golf courses. It helps control
growth by affecting shoot growth, density, and color; root growth; disease suscep-
tibility; stress tolerance; recuperative potential/rate; and turf compositions. Exhibit
5 shows a sample nitrogen application strategy.
There are also some organic fertilizers that are lower in nitrogen and less
likely to burn the grass. One popular organic fertilizer is Milorganite, which is
made from Milwaukee sewage sludge. Some golfers might complain about the
odor of natural organic fertilizers. Golf course superintendents may have to get
creative about when they fertilize with organic fertilizers in order to limit golfers’
exposure to the smell.
Overall, independent university research supports the fact that modern pes-
ticides and fertilizers used to maintain healthy golf course turf have been thor-
oughly tested and are considered safe when used according to label directions.
Green Speed. Green speed is a topic that almost all golfers care about. Golfers
rank the speed of the greens as one of the most important things to know about a
course. Why is it such an issue? Television announcers love to discuss green speed
during tournaments. Also, a club member may have just played in a tournament at
another golf course where the greens were speeded up for the two-day event. He
or she then wants to know why the home club’s greens aren’t like that every day.
“Green speed” is something of a misnomer, as green speed actually has little
to do with speed but instead indicates the distance a golf ball rolls on a green
as measured by a stimpmeter. The stimpmeter was introduced in 1937 by Eddie
Stimpson. A stimpmeter is a tool for greenskeepers who want to measure the
speed and uniformity of their greens.
A stimpmeter is a 36-inch-long piece of metal with a notched end to hold the
golf ball and a V-shaped groove for the ball to roll down. The ball begins rolling
down the stimpmeter when it reaches a 20-degree angle. The person using the
stimpmeter will roll three golf balls in one direction, and then go to the spot where
those balls finished and roll three more golf balls back to the spot where he or she
previously rolled. He or she then takes the average of all measurements to deter-
mine the green speed in feet and inches.
There are many factors that affect green speed, including:
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Exhibit 4 Pesticide / Fertilizer Application Record
Pesticide / Fertilizer Application Record

Plant Type: (circle one)
Turf Ornamentals Annuals Hardscape
Other: ________________
Chemical Group: (circle one)

Herbicide Insecticide Fertilizer Roundup Animal Repellent
Read Label: (___) Yes (___) No
Completely fill in:
Date and time (and duration) of

application:
Area or target treated and pest:
(Ex: Target—daylilies, Pest—deer)
Equipment and setting:
(Ex.: RTU shaker can, or Solo
backpack fungicide sprayer)
Formulation, lot number, and rate
(per acre, per 100 gal, etc.):
Total formulation added to hopper
or tank:
(Ex: Roundup, 2% solution, 8 oz
per 3 gal tank)
Amount of mixture used:
(Ex: canisters of deer away or 3
gal. 3 1-lb of Roundup)
Amount treated and location:
(Ex: 13 tee—all daylilies) use
back of form if needed
Applicator Name:
Temperature, wind, etc.:
Infestation severity:
(Ex: all daylilies on top of bank
eaten to ground)
(continued)
Protective clothing: (circle what used)

Gloves Long sleeves Long pants Goggles Dust mask
Coveralls Shoes + Socks Respirator Face shield Tyvak suit
Boots Hat Hood
Other: _____________________________
Cleanup: (how, what used, etc.)

__________________________________________________________
Application is: (circle one)

Completed Incomplete—Schedule another time to complete
Office Use: ___________________

Record in File: ________________
3/2/05 Grounds Maintenance Department
Source: Farmington Country Club, Charlottesville, Virginia, Club Operations Manual, Pre-
mier Club Services, Club Managers Association of America.
•• Mowing height
•• Rolling
•• Fertilization
•• Irrigation
•• Weather
The Golf Course Superintendents Association of America has pointed out that
the quest for fast greens has serious consequences in terms of cost, environmental
quality, and the long-term health of the green:
A healthy, vigorous green can be maintained at a very short cutting
height (as low as ⅛-inch) for short periods of time without serious conse-
quences if it’s been prepared properly and weather conditions are accept-
able. Courses hosting tournaments often take months (and spend signifi-
cant extra money) to bring greens up to an ultrafast speed for PGA Tour
players…. However, fast greens are extremely fragile. If you compared
them with human beings, it would be fair to say that their immune sys-
tems can be very weak. They become susceptible to diseases and pests,
and therefore may require more chemical treatments. Weather can also
quickly destroy the health of an ultrafast green. High temperatures and
lack of moisture in the air are deadly to greens that are maintained at
very short cutting heights for any length of time.3
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Exhibit 5 Strategies for Nitrogen Fertilization
•• Cool-season grasses:
Fall fertilization: Two-thirds of total N for the year in the fall
Spring fertilization: Avoid excess N, especially in late spring. At that time, stimu-
late color, not growth.
•• Warm-season grasses:
Spring fertilization: N sources tied to environmental conditions.
Summer fertilization: Control N availability for sustained growth without leaching
or run-off losses.
•• Cool-season grasses:
Summer fertilization: Three possible strategies for N:
1. Apply small amounts (0.125 to 0.25 lbs./M) of N from a quick-release
source during the summer when necessary.
2. Apply a slow-release fertilizer (1 to 2 lbs. N/M) early in the summer.
3. Moderately apply a slow-release source at the beginning of the summer,
then supplement with quick-release as needed.
Source: Mike Reese, North Carolina State University, Advanced Turfgrass Management
course.
The GCSAA points out that, while golfing associations and organizations are
investing millions of dollars in research to develop new grasses that are tolerant of
fast speeds, golfers need to scale back their demands. “Golfers should understand
and accept the limitations of these living systems we call greens. Golfers should
also heed the advice of superintendents who manage, nurture, and protect these
ecosystems. And finally, golfers must change their attitudes about the competitive
aspect of green speeds. They should, in the footsteps of Mr. Stimpson, strive for
fairness, not fastness.”
Communication with golfers about green speed can be the key to success for
clubs.
Trees versus Turf. One of the more unpopular actions golf course superinten-
dents take is the removal of trees. Most members see trees as boosts to the aes-
thetic appearance of the course, filters of dust that lower temperatures by creating
shade, and providers of wildlife habitats. However, golf course superintendents
also know that trees compete with turf for oxygen, water, nutrients, and sunlight.
Many warm weather grasses have low tolerance for shade. Trees and grasses have
competing root systems. Falling tree limbs pose a risk to golfers. Trees can also
limit air circulation or movement around greens, which can lead to increased turf
disease. (Some golf course superintendents will place large fans on the course to
help aid air circulation blocked by trees, but that’s generally a short-term solution.)
Trees and turf in balance can create a beautiful golf course. Sometimes, how-
ever, trees are located in places where they shouldn’t be. Sometimes trees should
just be removed, for both aesthetic and safety reasons. Root encroachment into
greens can kill putting green turf. Shade can inhibit turf growth.
Tree removal can often inflict an emotional toll on a club. Members may have
sentimental attachments to particular trees that may have been planted by a par-
ticular group or act as a memorial for someone. The GCSAA says that “the most
important part of a tree maintenance program may be communicating the reasons
why such action is necessary.”
Environmental Concerns
Clubs with golf courses must be concerned about many issues affecting the envi-
ronment. The club is the caretaker of a large amount of land and the environmen-
tal decisions it makes affects the club, its neighbors, and the entire community.
The use of pesticides, the impact on water and soil quality, and irrigation
water usage are often cited as public concerns about the golf industry. GCSAA is
leading the golf community in working to correct public misconceptions through a
comprehensive effort combining research, education, and communication. Inaccu-
racies about the environmental policies of golf courses could pose a serious threat
to the vitality and integrity of the game of golf if not corrected.
Golf course superintendents strive to implement sound environmental prac-
tices on their courses. The GCSAA cites several of these:
•• University and government studies indicate that, when properly applied, pes-
ticides and fertilizers do not leach into groundwater in appreciable amounts.
•• Modern turfgrass management practices greatly reduce the potential for
leaching or runoff into water supplies.
•• Pesticides and fertilizers are used only on certain portions of the golf course.
The rest of the property often consists of natural areas not maintained with
turf care products. These areas can provide a home for wildlife and include a
diverse variety of native plants and trees.
•• Golf course superintendents are among the best-educated and most consci-
entious users of chemical management tools. Today, most superintendents
have two- or four-year university degrees in agronomy, horticulture, or other
related fields.
•• Many superintendents enter the profession because of a love of nature and
the outdoors, and are strongly committed to conservation. A recent survey
shows superintendents give extremely high priority to maintenance practices
that do not have a negative effect on the environment.
•• Most golf courses compost grass clippings and leaves, which reduces the
amount of waste in landfills. Composting is a growing and recommended
practice for golf course operations.
Properly maintained turfgrass provides numerous environmental benefits.
It can:
•• Produce oxygen (carbon dioxide exchange) and cool the atmosphere.
650 Chapter 16
•• Prevent soil erosion.

•• Filter natural and synthetic contaminants from rainfall and irrigation.
•• Recharge critical groundwater supplies.
•• Provide crucial “green space” in urban settings.
In addition to turf-related benefits, courses provide other important ecologi-
cal and community assets. Golf courses are key sanctuaries for birds and other
wildlife. They are disposal and treatment sites for wastewater. They are attractive
and environmentally sound “covers” for closed landfills and other ecologically
damaged sites. Likewise, many courses are official wetlands preservation areas.
On golf’s behalf, GCSAA has built strong and cooperative relationships with
the U.S. Environmental Protection Agency and other major regulatory groups.
Through governmental affairs initiatives, professional education, and public
information, the association strives to make environmental responsibility a basic
precept for its members.
Many of the nation’s golf course architects now design courses that reduce
the need for water, pesticides, and costly maintenance practices while preserving
habitat and environmental quality. Still, some of the main environmental issues
that managers of golf courses must address include water and chemicals. Wildlife
is another important environmental consideration.
Water
The health of all courses depends on the ability to get water to the grass. Two of
the primary water-related environmental concerns are the use of effluent water,
and wetlands.
Effluent Water. Water is the most precious resource on Earth. Despite the amazing
ability of turfgrass to use water efficiently, concerns about conservation have led
golf courses to increasingly turn to effluent water for irrigation.
Sometimes called “gray water,” effluent water is essentially partially treated
wastewater from community sewage or industry. It usually is cleansed of major
pollutants, but still contains enough trace amounts of salt, minerals, and bacteria
to render it undrinkable.
In the past, communities often simply dumped effluent water back into lakes
and rivers. But today, golf courses are being viewed as environmentally desirable
disposal sites for effluent water. In fact, golf courses can serve as highly effective
wastewater treatment facilities for this partially polluted water.
Dense, well-managed turfgrass areas are among the best filtration systems
available for polluted water. Thatch traps and holds particle pollutants in the water
and allows them to degrade naturally. The effluent water that goes on the course
as irrigation is actually cleansed and returned to lakes, streams, and groundwater
supplies.
Although the use of effluent water on golf courses poses challenges for super-
intendents who must cope with high salinity and other pollutants, golfers should
not notice any differences (other than an occasional early morning odor). However,
because some wastewater still contains E. coli and other bacteria, golfers should
An increasing number of golf courses are using effluent water, a sound environmental
choice that brings with it its own management concerns. (Courtesy of Kevin Frank)
pay heed to posted warnings about contact with effluent water that is being stored
in ponds or sprayed through sprinklers.
Wetlands. Many golf courses have been built on wetlands. They contribute to the
diversity of landscapes that make a golf course unique and interesting to golfers.
However, many wetlands are also regulated and bring special challenges to a club.
Many clubs will call in a wetland consultant whenever they are doing a
golf course construction or renovation project that might affect a wetland. These
experts can help determine exactly where the wetlands begin and end—a bound-
ary that may change from year to year. They use site surveys, aerial photography,
GIS maps, soil surveys, and national wetland inventory maps.
The three primary ingredients of a wetland survey are:
•• Vegetation. What types of plants are growing on the site? Are they the plants
typically found in wetlands?
•• Soils. Consultants will take soil samples and look for conditions in which soil
oxygen was limited by the presence of water for long periods of the growing
season.
•• Hydrology. This part of the survey measures the depth of surface water, drain-
age patterns, water marks on vegetation, drift lines, and soil deposits.
652 Chapter 16
Special United States Army Corps of Engineers permits are required when-
ever doing any of the following to a wetland:
• Utility installations
•• Stream relocations
•• Site development fills
•• Construction of revetments, groins, breakwaters, levees, dams, dikes, and weirs
•• Placement of riprap and road fills
Chemicals
Chemicals often hold negative connotations, yet without them, golf courses would
be far less attractive. The golf course superintendent and his or her staff must
become highly educated in appropriate chemical use and precautions. The Envi-
ronmental Protection Agency (EPA) and OSHA regulate the application of chemi-
cals. It is critical to the safety and well-being of the golf course staff that chemicals
be used correctly. In addition, one can lose or burn a golf course through inappro-
priate use or incorrectly diluting a chemical for application.
According to the GCSAA, pesticide production is one of the most highly reg-
ulated industries in the United States. Before a product is registered by the EPA, it
must be rigorously tested for potential human health and environmental effects.
This process can take up to ten years and involve more than 120 different tests and
studies. Today, manufacturers often invest up to $50 million in product safety and
testing before a new pesticide ever comes to the market.
The GCSAA notes that pesticides help limit the damage that can be caused
by insects, weeds, and plant diseases. Insecticides, herbicides, and fungicides are
used very selectively to protect the health of turf, trees, and other living things on
the course. Fertilizers provide much-needed nutrition for the course’s plant life.
It is very important to note that pesticides and fertilizers are not used primarily
for aesthetic reasons. First and foremost, they are tools that help ensure a healthy
playing surface for the game. Furthermore, they help protect a valuable and eco-
logically important piece of land.
Virtually all golf courses employ at least one state-licensed pesticide applica-
tor who is trained in environmentally sound pesticide use. See Chapter Appendix
A for a sample job description for a pesticide applicator.
Wildlife
Other factors affecting the golf course are insects and animals. Both hold the poten-
tial to damage the turf either by feeding off the grass and roots or by affecting
the sod underneath the course. Common pests that negatively affect golf courses
include grubs, sod webworms, cinch bugs, earthworms, gophers, ants, mole crick-
ets, and crayfish.
Environmental concerns about pesticide use has led to new methods of pest
management. Integrated pest management (IPM) is a method of managing pests
that uses multiple management approaches, including cultural practices, pesti-
cides, biological control, and pest scouting. The objectives of IPM are to:
•• Preserve natural resources.
•• Protect endangered species.
•• Always be aware of actions and how they affect the environment.
•• Properly use pesticides and fertilizers.
•• Be aware of possible ground water contamination.
•• Enforce licensing of pesticide applicators.
•• Time chemical treatments more precisely at vulnerable pest stages and
thereby more effectively and economically control pests.
Audubon International encourages golf courses to determine a threshold level
for the insect and disease problems that occur on a course. This is done by decid-
ing how much damage can be tolerated and how large the pest population can
grow before it causes that level of damage. The superintendent can then establish
treatment methods that keep the pest population small enough so that it doesn’t
cause an unacceptable level of damage. Part of establishing threshold levels also
involves monitoring regularly for insect and disease pressures as well as keeping
an eye on weather conditions that favor the growth of problems.
Golf courses are also increasingly nurturing their role as a wildlife habitat and
active participants in wildlife conservation. This role can range from providing
safe passages for birds to naturalizing areas of the golf course. Naturalization—in
particular of golf course roughs—can help the environment in many ways. It helps
to maintain diversity in plants and animals while protecting ecosystems and eco-
logical communities. It can improve water quality and minimize erosion. It also
maintains the gene pool of the wildlife and plant species in the area, promotes
stewardship of the environment, contributes to the conservation of local wildlife
species, and supports an aesthetic appreciation of natural beauty. While these ben-
efits may be a hard sell to some golf committees, there are also financial and labor
savings, including:
•• Lower maintenance costs.
•• Reduced equipment wear and tear.
•• Reduced need for gasoline, pesticides, fertilizers, and water.
•• Increased ability for staff to concentrate where it really counts—the playing
surfaces.
There are several environmental practices that enhance wildlife and habi-
tat management. Golf course superintendents take into account the golf course
location, size, layout, and any wildlife species and habitat considerations when
planning how to promote wildlife and biodiversity conservation.
According to Audubon International, the following tasks can help superin-
tendents make wildlife-related decisions:
•• Identify core habitats, such as mature woodlands, wetlands, or stream corri-
dors, and special habitat concerns, such as endangered or threatened species,
on the property.
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•• Train the staff to understand that management practices may positively

enhance or adversely affect wildlife species and habitats on the property.
•• Identify the dominant native plant community and ecological region in which
the golf course is located.
•• Maintain an ongoing written inventory of bird and mammal species to docu-
ment and track wildlife use of the course.
•• Maintain natural wildlife habitat in at least 50 percent of all minimally used
portions of the property.
•• Connect small and large natural areas as much as possible to improve wildlife
movement throughout the golf course and from the course to neighboring
natural areas.
•• Maintain or plant varying heights and types of plants, from ground cover to
shrub and tree layers.
•• Maintain a water source for wildlife with aquatic plants and shrubbery or
native landscaping along the shoreline.
•• Naturalize at least 50 percent of out-of-play shorelines with emergent-aquatic
and shoreline plants.
•• Choose flowers or container plants that will provide nectar for hummingbirds
or butterflies.
•• Maintain nesting boxes or other structures, when appropriate, to enhance
nesting sites for birds or bats.
•• Protect wildlife habitats and any endangered or threatened wildlife or plant
species from golfer disturbance. Use buffers, signs, or fencing as needed.
•• Establish and maintain at least 80 percent of the landscaped trees, shrubs,
and flowers, excluding turfgrass, with plants that are indigenous to the native
plant community of the ecological region of the property.
•• Purchase landscape plants from locally grown sources to support the genetic
integrity of local native plant communities.
•• Avoid disturbing known bird nests or den sites until after young have dis-
persed. Stake or flag such areas when needed.
•• Restore degraded habitats, such as eroded slopes, compacted soils, polluted
water sources, or areas overrun with invasive exotic species.
•• Confine roads, cart paths, trails, and necessary vegetation removal to the
edges of existing habitats to minimize habitat disturbance and fragmentation.
Audubon Cooperative Sanctuary Program

Audubon International grants certificates of achievement for conservation proj-
ects that golf courses undertake. The Audubon Cooperative Sanctuary Program
(ACSP) helps golf courses—including private clubs, public and municipal courses,
PGA sites, nine-hole facilities, resort courses, and golf residential communities—
to protect the environment.
Audubon International will provide a site assessment and environmental
planning form to help a club take stock of its environmental resources and poten-
tial liabilities. The assessment is then used to help develop an environmental plan
that fits the course’s unique setting, goals, staff, budget, and time. Audubon will
provide a site-specific report and help the course implement its plan.
Audubon will designate a golf course as a Certified Audubon Cooperative
Sanctuary after it meets standards in the following five areas:
•• Wildlife and habitat management
•• Chemical use reduction and safety
•• Water conservation
•• Water quality management
•• Outreach and education
Since the program began in 1991, more than 2,300 golf courses have become
certified as cooperative sanctuaries.
Endnotes
1. CMAA 2011 Finance and Operations Report, p. 86.
3. Golf Course Superintendents Association of America, “The Truth & Consequences of
Green Speed,” available on-line at www.gcsaa.org/solutions/facts/gspeed.aspx.
Key Terms
bench setting—The height at which the bedknife on a mower is set above a firm,
level surface.
bermudagrass—An aggressive, commonly used warm season turfgrass that origi-
nated in Africa.
bunker—According to the Rules of Golf, a bunker is a hazard consisting of a pre-
pared area of ground, often a hollow, from which turf or soil has been removed
and replaced with sand or the like.
compaction—The compression of soil particles resulting in loss of pore space in
the soil profile.
cool season grasses—Turfgrasses that grow best during cool weather and may
enter dormancy during hot, dry weather. Common cool season turfgrasses are
Kentucky bluegrass, creeping bentgrass, and perennial ryegrass.
core aeration—A process that corrects soil layering problems by removing cores of
turf and soil. It creates more air and space in the soil and promotes deeper roots.
creeping bentgrass—A cool season turfgrass that produces a superior quality
playing surface for greens, tees, and fairways.
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cutting height—The distance above the soil line that grasses are clipped.
drainage—The process of removing water from a golf course.
effective cutting height—The actual height at which grasses are cut.
effluent water—Partially treated wastewater from community sewage or indus-
try; it is cleansed of major pollutants but still contains enough trace amounts of
salt, minerals, and bacteria to render it undrinkable. Also known as gray water.
fertilization—Feeding the grass with supplements that help maintain the grass’s
healthy appearance.
golf course superintendent—The manager in charge of the maintenance of the
golf course. He or she is responsible for the playing conditions.
Golf Course Superintendents Association of America—The association in charge
of setting standards for golf superintendents. It is the certifying body of the industry.
green speed—Commonly thought of as how fast a golf ball will travel on a green,
but it is actually the distance a golf ball rolls on a green using a stimpmeter.
greens—The portion of the golf course where the holes, flagsticks, and cups are
located.
irrigation—The application of water to a golf course.
Kentucky bluegrass—A common cool season turfgrass used in golf course roughs
and in some regions on fairways.
mist applicators—A sprinkler head with a nozzle that is designed to create a fine
mist.
overseeding—Seeding into an existing turf.
Poa annua—A cool season turfgrass that is commonly referred to as annual blue-
grass. Poa annua is prone to seeding, especially in the spring.
rough—Those areas of a golf course that are outside the fairways where the grass
is not cut as low.
seed beds—An area of soil prepared for seeding.
sodding—The process of laying down sod.
sprigging—The process of planting runners, rhizomes, or vegetative segments of
plants.
sprinkler heads—Hardware located at the terminals of a piping system.
stimpmeter—A tool for greenskeepers who want to measure the speed and uni-
formity of their greens. The stimpmeter was invented by Eddie Stimpson.
syringing—The process of applying small amounts of water to help the turf avoid
heat stress.
tee—The starting place on the golf course for a golf hole to be played.
thatch—Living and dead plant material that is the middle layer of turfgrass
between the grass and soil.
topdressing—A prepared root zone mix added to a turf surface and worked in by
brushing or irrigation.
turfgrasses—Grass covering a course that can tolerate frequent, close mowing,
that forms a contiguous or dense surface and can withstand a great deal of traffic.
warm season grasses—Turfgrasses that grow best during warm weather and may
enter dormancy or be killed by cold weather. Common warm season turfgrasses
are bermudagrass, zoysiagrass, and seashore paspalum.
zoysiagrass—A warm season turfgrass that originated in Asia, used on fairways
or tees.
Review Questions
1. What club manager is generally responsible for the playing conditions of the
golf course and its general upkeep?
2. What are some of the key staff positions in the greens and grounds department?
3. What are some of the major factors that affect the greens and grounds
department’s budgets?
4. What are the differences between warm season grasses and cool season
grasses? What are some of the major types and characteristics of both?
5. What are the different sections of a golf course?
6. What types of turfgrass management practices are important for a healthy
golf course?
7. What type of environmental concerns must be managed when it comes to
water, chemicals, and wildlife?
Additional Reading
Christians, Nick, Fundamentals of Turfgrass Management, Second Edition (Hobo-
ken, N.J.: John Wiley & Sons, 2003).
Golf Course Management Magazine, Golf Course Superintendents of America.
Grigg, Gary. “An Educated Response: Preparation Is the Key in Creating a
Program-Based Budget.” Golf Course Management, March 2003.
Gustafson, Catherine and Bridgette Redman, Assistant Manager in Development:
Recreation and Sports Management (Alexandria, Va.: Club Managers Associa-
tion of America, 2000).
Ross, K. “Bunker Quality Factors: Highly Manicured Bunkers with Great Sand
Quality Are Becoming Almost as Important as Greens Management.” Golf
Course News, 2004.
Stipanuk, David M., Hospitality Facilities Maintenance and Design, Third Edition
(Lansing, Mich.: American Hotel & Lodging Educational Institute, 2006).
658 Chapter 16
Witteveen, Gordon, and Michael Bavier, Practical Golf Course Maintenance: The
Magic of Greenkeeping, Second Edition (Hoboken, N.J.: John Wiley & Sons,
2005).
Internet Sites
For more information, visit the following Internet site. Remember that Internet
The First Tee Turfgrass Management at Penn State

www.thefirsttee.org http://turfgrassmanagement.psu.edu
Golf Course Maintenance Directory Turfgrass Management and Use
www.golfcoursemaintenance.com/ http://plantanswers.tamu.edu/turf/
index.htm turf.html
Golf Course News Turfgrass Science
www.golfcoursenews.com www.turf.msu.edu
Golf Course Superintendents Turfgrass Weed ID
Association of America www.msuturfweeds.net
www.gcsaa.org
World Golf Foundation
MSU GDD Tracker (Growing Degree www.wgv.com/hof/foundation.php
Days)
www.gddtracker.net
Appendix A:
What follows are sample job descriptions for a golf course superintendent,
golf course maintenance foreman, equipment mechanic, equipment operator,
groundsperson, irrigation specialist, and pesticides application specialist. These
job descriptions are courtesy of Joe Perdue and Jack Ninemeier, Job Descriptions
for the Private Club Industry, Seventh Edition.
Golf Course Superintendent

Position
Golf Course Director
Related Titles: Greenskeeper; Greens Superintendent; Grounds and Greens Superinten-
dent; Director of Golf Course Maintenance Operations; Golf Course Superintendent
Supervises: Golf Course Maintenance Foreman; Amenities Supervisor (HOA), Pesticides
Application Specialist; Irrigation Specialist; Equipment Operator; Equipment Mechanic
•• Bachelor’s degree in Agronomy, Horticulture, or Plant Science.
•• An associate’s degree from an intensive two-year turf grass management program.
•• Additional training in mechanics, design, surveying and ecology.
•• Previous work as an assistant to an experienced Golf Course Superintendent.
•• Previous supervisory experience in a club or golf course setting.
•• Understands the rules of golf and is up-to-date on federal, state and local laws on golf
course operations.
•• Administrative and executive ability, especially critical in problem-solving and decision-
making.
•• Knowledge of ability to perform required role in emergency situations.
Manage and maintain golf course properties including golf course, clubhouse grounds and
landscaping, open spaces and the equipment used to maintain these areas.
Job Tasks/Duties
•• Maintains all grounds and course maintenance equipment according to the club’s turf
management program.
•• Schedules, trains, supervises, and evaluates all personnel assigned to department.
•• Maintains accurate work records for all personnel in the department.
•• Supervises all planting, fertilizing, care and removal of turf, plants, shrubs, trees and
other facilities on the golf course.
•• Maintains course in proper playing condition.
660 Chapter 16
•• Inspects course regularly to evaluate and recommend improvements.
•• Oversees all construction, maintenance and renovations on the golf course.
•• Oversees repairs of broken water lines or valves and may perform necessary repairs
in an emergency.
•• Records all maintenance on course.
•• Supervises operation of the Equipment Repair Shop.
•• Prepares annual budget for department; takes corrective action as necessary to help
assure that budget goals are met.
•• Prepares and revises grounds manual.
•• Establishes short- and long-range plans for the golf course.
•• Selects and prepares proper fertilizers and nutrients for all flora and fauna.
•• Develops and maintains drainage, irrigation, and watering systems.
•• Implements and enforces comprehensive safety program for employees, members,
and guests on course in compliance with local, state and federal laws; implements
and manages the club’s hazard communication (HAZCOM) program.
•• Ensures that chemicals, petroleum, and other controlled products are used, stored,
and disposed of in accordance with local, state and federal regulations; maintains
required records and strives to minimize the use of chemicals and petroleum products.
•• Communicates as necessary with Director of Golf and Golf Professional to discuss
conditions of facilities, maintenance plans, scheduled events, and the number of
rounds played.
•• Communicates as necessary with Grounds, Golf or House committees or other appli-
cable committees.
•• Attends staff and management meetings.
•• Keeps members informed about current and future maintenance activities.
•• Conducts daily facility security checks ensuring accurate inventory of equipment and
keys.
•• Assists with snow removal planning.
•• Plans professional development and training activities for subordinates including
safety training for equipment use and proper handling of fertilizers, herbicides, and
all other chemicals used on course; assures that MSDSs are available in convenient
location.
•• Makes recommendations for capital improvement and purchases.
•• Supervises road and roadside maintenance within the club’s grounds.
•• Ensures proper landscaping for property outside of golf course including the club-
house and surrounding areas.
•• Coordinates applicable work with outside contractors.
•• Determines when course should be closed due to weather conditions that may dam-
age the course if play continues.
•• Conducts other appropriate tasks assigned by the General Manager.
•• Certified Golf Course Superintendent (CGCS).
•• Pesticide Application certification.
•• Frequent lifting, bending, climbing, stooping, and pulling.

Position
Related Titles
Foreman; Golf Course Maintenance Supervisor; Equipment Operator Foreman; Equip-
ment Manager
Reports to: Golf Course Director
Supervises: Groundspersons
•• Three years of experience in the maintenance, operation, or management of a golf
course and related facilities and equipment, including one year of supervisory experi-
ence.
•• Undergraduate college study in turf agronomy or golf course maintenance desireable.
•• Knowledge of tools, methods, and materials used in grounds and golf course
construction, landscaped area maintenance work, and building maintenance and
improvement.
•• Operates trucks and light motorized equipment.
•• Knowledge of agronomy, turf grass science, and the rules of golf.
•• Working knowledge of basic electricity and hydraulics related to an irrigation system,
including automatic valves and controllers and various types of pumps and pumping
systems.
Supervise daily course maintenance and inspect course conditions.
Job Tasks/Duties
•• Oversees and performs on-going course maintenance activities.
•• Completes minor repair on equipment.
•• Operates and maintains equipment.
•• Maintains equipment inventory.
•• Trains personnel in on-going course maintenance activities.
662 Chapter 16
•• Selects, trains, supervises, schedules, and evaluates assigned personnel.
•• Maintains parts and supplies inventory.
•• Assists in the development of equipment purchase specifications.
•• Performs safety orientation and on-going safety training for all department staff.
•• Supervises Maintenance Shop and runs operations in the absence of Golf Course
Director.
•• Performs other appropriate tasks assigned by the Golf Course Director.
•• Pesticide applicator’s certificate.
Physical Demands and Work Experience
•• Frequent lifting, bending, climbing, stooping, and pulling.
Equipment Mechanic
Position
Equipment Mechanic
Related Titles: Maintenance Mechanic; Golf Course Mechanic; Mechanic
Reports to:
Golf Course Director
•• Must be 18 years of age or older.
•• Graduate of a vocational technical school or post-secondary training in small engine
repair or mechanics.
•• Four to six years of experience as a mechanic.
•• Golf repair equipment experience.
•• Able to repair and maintain all golf course equipment.
•• Knowledge of an ability to perform required role in emergency situations.
Repairs and provides all required preventive maintenance on all equipment associated
with Course Maintenance Department.
Job Tasks/Duties
•• Lubricates and services all course maintenance equipment.
•• Inspects equipment for operating deficiencies.
•• Repairs and adjusts equipment.
•• Maintains repair records on all equipment.
•• Establishes and maintains safety procedures for using equipment.
•• Maintains safety records.
•• Interviews and recommends applicants for maintenance staff positions.
•• Performs general overhaul and other preventive maintenance on all equipment.
•• Maintains blades of reel mowers.
•• Maintains inventory of common equipment maintenance and repair parts.
•• Performs emergency repair work out of shop.
•• Undertakes body and fender work, fabrication, welding, troubleshooting and repairs to
hydraulic and electrical systems.
•• Communicates and reports any needs or problems relating to course equipment.
Licenses and Special Requirements:
•• May need to use some protective equipment, such as a respirator, gloves, earplugs,
eye guards/visors, boots, and hat.
Equipment Operator
Position
Equipment Operator
Related Titles
Golf Course Laborer; Course Maintenance Equipment Operator
664 Chapter 16
•• High school diploma or GED required.
•• Mechanical aptitude.
•• Ability to safely operate trucks and light motorized equipment.
•• Knowledge of the principles of operation of gasoline engines.
•• Knowledge of maintenance tools.
•• Working knowledge of and ability to use hand and power tools and other equipment.
•• Ability to comprehend and learn tasks associated with golf course construction/
maintenance.
Operate and care for course maintenance equipment and performs related work, as
needed, for golf course maintenance.
Job Tasks/Duties
•• Mows greens, tees, collars, approaches, rough and fairways.
•• Aerates greens.
•• Operates turf vac, loader-backhoe, fairway and rough aerifier.
•• Verticuts tees and greens.
•• Spikes greens.
•• Assists in daily course set -up. Moves tee markers and change cups; maintains ball
washers; replaces tee towels and flags, and cleans course hardware when needed.
•• Maintains gasoline, oil and other equipment fluid levels daily; reports equipment prob-
lems and failures to mechanic or supervisors immediately.
•• Maintains maintenance and fluid-use logs (gas and oil) on equipment.
•• Ensures that all equipment receives visual pre-operation check list inspection as
directed by the Equipment Manager.
•• Performs basic preventive maintenance on equipment as directed and returns equip-
ment to designated location at the shop.
•• Cleans machinery after each use.
•• Inspects machinery after each use.
•• Utilizes loaders to remove dirt, debris, and other materials.
•• Drives a tractor and trailer to haul materials and refuse.
•• Operates portable pumps.
•• Loads and unloads materials.
•• Trims trees and removes cuttings.
•• Collects and empties litter cans.
•• Cleans gutters, drains, and culverts.
•• Waters plants.
•• Cuts grass, weeds, and bushes.
•• Rakes leaves.
•• Performs other appropriate tasks assigned by supervisor.
eye guards/visors, boots and hat.
Groundsperson
Position
Groundsperson
Related Titles
Landscaper, Golf Course Laborer; Practice Area Attendant; Groundskeeper; Landscape
Gardener; Course Utility Worker; Section Person
Reports to: Golf Course Maintenance Foreman
•• Some High School.
•• Six months of experience in golf course grounds maintenance or greenskeeping.
•• Knowledge of golf course operations.
•• Knowledge of irrigation systems.
Maintain golf course and landscaping around the course, clubhouse and other club facili-
ties, including parking lots.
Job Tasks/Duties
•• Plants and maintains ornamental shrubs and trees.
•• Trims and feeds shrubs and trees; removes cuttings.
•• Maintains landscape beds around clubhouse and club grounds.
•• Rakes and blows leaves.
•• Mows greens and fairways by operating walk-behind turf equipment.
666 Chapter 16
•• Prepares and lays sod.
•• Prepares soil plant beds, and establishes plantings by seed or transplants.
•• Maintains annual and perennial flowers in aesthetic arrangements.
•• Rakes bunkers.
•• Loads and unloads materials.
•• Repairs and maintains driving range tees.
•• Cleans equipment used in practice area.
•• Aerifies and spikes greens.
•• Digs holes and trenches to maintain or construct irrigation and drainage lines.
•• Installs pipe and backfills excavations.
•• Empties garbage cans.
•• Performs other appropriate tasks assigned by the Golf Course Maintenance Foreman.
•• Pesticide Applicator certificate.
Irrigation Specialist
Position
Irrigation Specialist
Related Title: Irrigation Technician
Reports to: Golf Course Superintendent
•• High School diploma and GED required.
•• Some experience working for a landscaping service or grounds crew.
•• Working knowledge of basic electricity and hydraulics related to an irrigation system,
including automatic valves and controllers, and various types of pumps and pumping
systems.
•• Knowledge of principles and practices of turf grass management.
•• Knowledge of pump station maintenance and repair.
•• Knowledge of disease and insect identification.
•• Knowledge of tools, methods, and materials used in grounds maintenance work.
•• Ability to operate all golf course equipment.
Responsible for the operation and maintenance of all irrigation and drainage systems on
the club’s golf course and grounds.
Job Tasks/Duties
•• Waters greens, tees, fairways, rough, lawns, and other areas as needed or sched-
uled.
•• Monitors daily water usage and informs Golf Course Superintendent of any needed
adjustments to the irrigation computer settings.
•• Operates irrigation heads in dry areas needing additional water.
•• Designs, implements, and maintains mechanical and electrical components of course
irrigation system.
•• Repairs equipment associated with irrigation (i.e., irrigation pipes and irrigation
heads).
•• Performs preventive maintenance on all equipment associated with irrigation.
•• Maintains complete records on all equipment maintenance associated with irrigation.
•• Controls expenses associated with irrigation equipment and activities.
•• Maintains inventory of parts needed for irrigation equipment.
•• Identifies turf diseases and insects.
•• Performs all record-keeping relative to irrigation system including weather and rainfall
data; assists in recording fertilizer and pesticide applications.
•• Performs monthly well and pump water usage reports.
•• Helps in grading and preparing soil base, laying sod and seeding greens, tees, and
fairways.
•• Assists in repairing greens with seeds or plugs of new grass when needed.
•• Helps apply pesticides and fertilizers under the supervision of the Pesticides Applica-
tion Specialist.
•• Operates dump trucks and other light equipment in hauling materials and removing
debris.
•• May occasionally supervise crews for special projects.
•• Performs other appropriate tasks assigned by the Golf Course superintendent.
668 Chapter 16
Pesticides Application Specialist

Position
Pesticides Application Specialist
Related Titles
Chemical Technician; Chemical Application Specialist; Spray Technician
•• Complete knowledge of chemical application equipment.
•• Knowledge in the safe mechanical operation and calibration of the following types of
equipment:
•• Mechanically pressurized spray equipment
•• Hand-operated spray equipment
•• Hand-operated rotary spreaders
•• Hand-operated drop spreaders
•• Utility tractors
•• Knowledge of the rules of golf and/or ability to play golf desirable.
Selects and appropriately applies all pesticides, herbicides and fertilizers associated with
grounds and golf course maintenance.
Job Tasks/Duties
•• Inspects turf, shrubs, lakes and other outdoor areas to determine pesticide, herbicide
and fertilizer needs.
•• Applies pesticides, herbicides and fertilizers at appropriate times to maintain excellent
condition of grounds and golf course; documents all applications.
•• Compiles reports of pesticide, herbicide and fertilizer use on the golf course and cal-
culates use rates for all products applied on the property.
•• Selects suppliers, products and equipment for such application and maintenance.
•• Purchases products and equipment as needed within budget limitations.
•• Maintains proper inventory of products.
•• Performs preventive maintenance on and keeps accurate records for all equipment.
•• Maintains safety records; performs routine safety training and emergency drills.
•• Selects, trains, supervises, schedules and evaluates assigned personnel.
•• Selects, trains, supervises, and evaluates assigned personnel.
•• Responsible for the safety and direction of chemical handlers and/or helpers.
•• Participates in all aspects of golf course maintenance.
•• Maintains chemical storage and mixing areas in compliance with county, state and
federal regulations. Keeps chemical room clean and orderly; secures under lock when
not present.
•• Maintains direct communication with Golf Professional and Golf Course Director.
•• Attends applicable training seminars, classes and trade shows to maintain current
knowledge.
•• Assists Golf Course Director with duties when necessary.
•• Responsible for reading, understanding, and keeping current with the Material Safety
Data Sheets (MSDSs) and maintaining them in a convenient location.
•• Understands and complies with all policies set forth in the club’s Employee Hand-
book.
•• Current state certification or licensing as a pesticide applicator.
670 Chapter 16
Appendix B:
Preparing the Course for a Tournament
When a club hosts a tournament, the golf course must undergo special preparations.
Some tournaments have specific requirements that the superintendent will need to
meet, but all tournaments will require the course to be in top condition.
Jonathon L. Scott, CGCS, director of agronomy for the PGA Tour, offered these
tips to help clubs prepare for a major professional tournament:
First steps
•• Serious and frank inventory of the golf course and its operational capabilities
•• Regular series of meetings with key club and tournament personnel
•• Contact with the tournament agronomist
Preparing your resources

•• Evaluate the maintenance staff and ensure there are sufficient numbers of
people
•• Evaluate the maintenance equipment, get loaners or lease equipment as
needed
•• Inspect the facility’s maintenance and repair center
Course preparations
•• Bunkers: Must be firm, well drained, free of stones and other debris, and
promote fair lies away from the edges
•• Car and service paths: Should be at least 8-feet wide and composed of a
weatherproof surface capable of handling heavy loads under any conditions
•• Tees: Tee decks need to be evaluated for potential wear; Par 3s are especially
vulnerable; should be checked for excessive thatch that can lead to puffiness
and soft footing; institute a regular program of core aerification, verticutting, and
topdressing at least two months before the tournament
•• Fairways: Need to be relatively tight, firm fairways that maximize ball roll and
spin control; regular and frequent core aerification and verticutting should begin
as early as possible; fairway drainage also plays a major role in course quality
during wet tournaments; soil settlement needs to be systematically addressed
•• Roughs: Need to be inspected for problem areas that could affect play or spec-
tator safety; thin turf should be overseeded and fertilized to increase density;
any potholes or depressions that could result in poor footing must be filled and
covered with turf; good rough will have a uniform height and density that will
allow a ball to nestle, but not disappear, into the turf
•• Greens: Inspect carefully and thoroughly to ensure they will produce a profes-
sional standard of smoothness and pace and also survive tremendous stress;
the greens’ root zone should show a clean, consistent profile with deep root
penetration; use aggressive corrective cultivation techniques; initiate or continue
an alternative spike policy on the putting greens right up to the beginning of the
tournament
•• Fertilization: Fertilizer programs are geared toward gradually achieving the

desired turf density and consistency about one month before the tournament
•• Pest control: Pesticides will be part of the preparation, but they will not replace
sound integrated turf management strategies
•• Course distances: Need to have accurate distance measurements around the
golf course
Final preparations
•• Greens speed: Take a series of Stimpmeter readings on all greens to determine
quickness and consistency; begin the process of greens preparation several
months prior to the event; may need mechanic to perform special grinding on
the bedknife of the mower and to maintain sharp reel blades
•• Irrigation: Examine irrigation practices in the final phase of tournament prepara-
tions; must have regular examination of the soil moisture levels
•• Rough mowing: Maintain tournament-height roughs without losing control; stop
mowing the week before the event then top the rough with rotary-type mowers
•• Striping: Mow stripe patterns into the golf course landscape; mow them either
crosswise or diagonally in alternate passes through the fairway to avoid nega-
tive ball-roll effects
•• Bunker grooming: Give special attention to bunkers the week before the tourna-
ment to ensure they are fair, consistent, and attractive accents to the design
features; perform handwork to firm up perimeters, smooth the surface contours
and remove stones and other debris
•• Divots: Make daily repairs to turf; go over each hole and dress divots with a
good, screened topsoil in the fairways and a sand-peat mixture on greens and
tees, along with a matching seed mixture
•• Rolling: Turf rolling is a standard practice during tournaments to smooth the sur-
face of the greens for a more consistent ball roll; because it can create grain it is
best to hold off on rolling until the turf has reached tournament-mowing height
•• Cup cutting: One of the most important assignments just before and during
the tournament is cup placement; reserve space for tournament pin settings to
avoid wear and old plugs near the cup; repair ball marks daily and set previous
cup plugs flush to the surface with no scalping or settling; paint the cup rim
People skills
There will be numerous people that the club must work harmoniously with:
•• Tournament personnel: Advance teams for a tournament’s governing body,
various office trailers and officials, volunteers
•• Television crews
•• Outside personnel: Subcontractors, corporate tents, vendor areas, portable
toilets, scoreboards
•• Spectators: Place perimeter fencing and gallery roping on the course
(continued)
672 Chapter 16
(continued)
Tournament maintenance routine

•• If someone connected with the event suggests a change in the maintenance
procedures, discuss it thoroughly with the tournament agronomist and the rules
official before making the change.
•• Drag a hose on fairways to remove dew in the morning. Fill the hose with sand
or water to avoid the appearance of ripples.
•• Be prepared to syringe the course if there is frost.
•• Be prepared for storms by having adequate equipment (pumps, squeegees, for
example) on hand.
•• Keep adequate staff on hand.
Source: Jonathon L. Scott, “The Big Show,” Golf Course Management, July 1998.
Fitness Operations 1. Describe a club fitness operation,
Fitness Center including the form, function, typical
Fitness Center Staff employees, and common programs of
Fitness Programs a club fitness center. (pp. 675–684)
Risk Management and Liability Issues 2. Describe the nature of spa operations
Payment Policies in clubs, including payment and
Spa Operations staffing issues. (pp. 684–688)
Spa Facilities
Spa Staff Compensation 3. Explain how typical club aquatics
Aquatics Operations operations work and what they
Aquatics Programs involve. (pp. 688–697)
Special Events 4. Identify and discuss the elements of
Aquatics Staff typical tennis operations in clubs.
Safety Policies (pp. 697–704)
Pool Operation and Maintenance
Tennis Operations
Tennis Programs
Tennis Staff
Pro Shop
Maintenance
Tennis Associations
17
Club Fitness, Spa, Aquatics,
and Tennis Operations
Ph.D., Associate Professor, Georgia State University, Atlanta,
Georgia; and Paul J. Wiener, Ph.D., Assistant Professor, Northern
Arizona University, Flagstaff, Arizona; additional chapter contributions
for this edition were made by Lee S. Paine, Athletic Director,
Chattahoochee Country Club, Gainesville, Georgia; and Ross R.
dePencier, Director of Family, Swim and Fitness, Cherokee Town and
Country Club, Atlanta, Georgia.
CLUB MEMBERS USE fitness facilities for a variety of reasons, including to improve
personal health, engage in recreational, social, and family activities, and entertain
business clients. These facilities are a major reason existing members remain in
their clubs and new members join. Therefore, it is important that club managers
ensure that their clubs have the facilities and offer the programs that will satisfy
members and help keep membership levels high. As one of the fastest-growing
areas of private club use, the fitness center often sets the pace for daily club usage
numbers. More members using the fitness center leads to more meals, meetings,
and member spending throughout the club.
Every club has different needs, priorities, and resources available, so the type,
scale, and complexity of fitness facilities and programs will vary. Members in
many clubs desire an expansion or renovation of their fitness, aquatics, and sports
areas, and a frequent comment following an expansion/renovation of these areas
is, “We should have built it bigger.”
Clubs with exercise and fitness facilities may offer membership categories
with various combinations of privileges. Typically, a club’s full or regular mem-
bership category (the category with the highest initiation fee and dues) allows
members access to all facilities and services, including fitness areas and programs.
Some country clubs offer athletic memberships that allow members access to all
services and amenities except the golf course. Fitness memberships generally limit
members to the fitness facilities and programs. There are numerous possible mem-
bership categories, and each club determines those which are most useful based
on the needs and demands of its members.
A club’s fitness operations can be divided into four major areas: athletic, spa,
aquatics, and tennis. The directors of these areas communicate with the appropri-
ate club committees; for example, the fitness director would communicate with the
club’s fitness/exercise committee, the aquatics director with the aquatics or swim
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committee, and so on. Some clubs do not have a separate committee for each area,
and developer-owned clubs may not have a committee structure at all. In some
clubs, the athletic committee is responsible for the fitness center and the club’s
swimming areas and programs, so the fitness director and aquatics director both
work with the athletic committee. In other clubs, the fitness, spa, aquatics, and ten-
nis directors may report to the club’s athletic director or other manager.
Traditional health spa operations have been available in numerous clubs for
many years, offering services like whirlpool and basic massage. However, some
clubs have expanded their spa services to include facials, manicures, pedicures,
multiple styles of massage, and aroma therapy. These services can be staffed in-
house or may be contracted to bring in brand name recognition and credibility.
Fitness Operations
In this section we will discuss fitness centers, club staff members who work in fit-
ness centers, fitness programs, risk management and liability issues, and payment
policies.
Fitness Center
A club’s fitness operations are conducted in an area commonly called a fitness
center or athletic center, and they are diverse in both size and offerings. While a
few clubs have separate fitness areas for men and women, most now have coed
facilities because of space and financial considerations.
The American College of Sports Medicine’s ACSM’s Health/Fitness Facility
Standards and Guidelines recommends the following standards for a fitness facility:1
1. A facility must be able to respond in a timely manner to any reasonably fore-
seeable emergency event that threatens the health and safety of facility users.
Toward this end, a facility must have an appropriate emergency plan that can
be executed by qualified personnel in a timely manner.
2. A facility must offer each adult member a pre-activity screening that is appro-
priate to the physical activities to be performed by the member.
3. Each person who has supervisory responsibility for a physical activity pro-
gram or area at a facility must have demonstrable professional competence in
that physical activity program or area.
4. A facility must post appropriate signs alerting users to the risks involved in
their use of those areas of a facility that present potential increased risk(s).
5. A facility that offers youth services or programs must provide appropriate
supervision.
6. A facility must conform to all relevant laws, regulations, and published stan-
dards.
A club’s fitness center generally comprises the following areas:
•• Cardiovascular area
•• Machine weight area
Club Fitness, Spa, Aquatics, and Tennis Operations 677
•• Free weight area
•• Stretching area
•• Exercise classroom
•• Testing and assessment area
•• Sports areas
Some of these areas are commonly grouped together, but they may also be sepa-
rated, especially in clubs with fitness rooms that were not originally planned to
be part of a fitness center. In many clubs, the cardiovascular and weight machines
are in a main exercise room and separate areas are used for free weights and
classrooms.
Cardiovascular Area. The cardiovascular area contains cardiovascular exercise
machines such as treadmills, elliptical cross-trainers, ascent trainers, upright and
recumbent bikes, stair-climbers, rowers, adaptive motion cross-trainers, skiers,
and upper body ergometers (UBEs). This area is usually the most used in the fit-
ness center. Cardiovascular conditioning strengthens the cardiovascular and pul-
monary systems by working large muscle groups and elevating the heart rate in a
consistent manner for a minimum of twenty minutes.
Member preferences and usage patterns dictate how many pieces of each type
of equipment are needed. Members do not want to wait a long time to use a piece
of equipment even when the area is busy. If there is high demand for an equipment
item, a time limit (usually twenty minutes) should be instituted for peak usage
periods. Signs stating this policy should be posted; a sign-up sheet on a clipboard
can be attached to the equipment or placed nearby.
Since it is desirable for a cardiovascular workout to be at least twenty minutes
long, many members will remain on a single piece of cardiovascular equipment for
twenty or more minutes. Most want to be entertained while they exercise. In order
to help alleviate boredom, many clubs purchase cardiovascular equipment that
either has a TV included in the machine’s console or attached above the console.
Both in-console and above-console models have their pros and cons. Some cardio-
vascular machines are iPod (or other personal entertainment device) compatible.
This allows the devices’ menu and entertainment options to be heard through the
machine’s headphone jack and/or displayed on the console. (The iPods or other
devices may also be recharged while they are plugged in.) Some cardiovascular
machines can display high-definition movies taken in scenic locations such as
national parks; this allows users to imagine they are exercising in those locales.
Some machines may also allow users to record their workout data and transfer it
to a separate computer for exercise evaluation.
Some clubs chose an older and less-expensive style of entertainment by install-
ing multiple televisions in the cardiovascular area. These televisions are usually
placed above the cardiovascular machines, but care should be taken in their place-
ment: too low and users may not be able to see them over other exercisers; too
high and users may injure their necks in an attempt to see the TVs. It is common to
attach a DVD or VCR player to one or more of the TVs, so users can watch personal
videos. With multiple TVs, care should be taken in managing the audio portion of
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the programs. Naturally, the fitness center can’t have the sound going full blast on
all of the TVs at once, so there are different options available that allow users to
listen just to the TV they are interested in. Some audio options allow a hard-wired
series of headphone jacks to be placed on each cardio machine. Another audio
option features miniature FM radio transmitters, one dedicated to each TV, that
allow members to use any FM radio (provided by the club or supplied by the user)
to tune in to the frequency posted for a particular TV and hear the audio portion of
that TV’s broadcast. Clubs can offer to provide headphones and/or radios to their
members or can sell them as a service. All cardiovascular machines should have
reading and water bottle racks attached to their consoles. Most club members want
to be entertained while they exercise, and frequent exercisers especially expect
entertainment features to be provided along with the cardio equipment.
Machine Weight Area. Clubs typically have commercial-quality weight machines.
Sometimes called “selectorized” or “progressive resistance” machines, these
machines are similar to free weights in their purpose but are generally safer to
use and can be seen as less threatening by members with little exercise experience.
Instructional signs are easily displayed on these machines and, since the weights
are easier to change, workouts are quicker than similar workouts utilizing free
weights. Some machines have multiple adjustments that restrict the exerciser’s
range of motion to fulfill therapeutic requirements.
Weight machines intentionally limit the muscle group(s) used so as to exer-
cise only the desired body area. Some machines allow the weight to automatically
increase or decrease based on the biomechanical advantage or disadvantage of the
body. Take, for example, an exerciser’s arms during a classic bench/chest press.
At the start of the exercise, the elbows are bent at approximately 45 degrees and
the arms are at a mechanical disadvantage. The user really notices how heavy the
weight feels. As the user pushes the weight upward and the arms extend upward
and straighten toward 180 degrees, the elbows become structurally stronger and
the user feels like the weight has been reduced. Some weight machines employ
cams or levers so that the weight resistance gradually increases as the user pushes
the weight upward, so that the weight feels just as heavy at 180 degrees as it felt
at 45 degrees.
Weight machines are commonly grouped in a line or circuit that encourages
users to begin with the first machine in line. This first machine should work the
largest muscle group. The line should continue working out the remaining muscle
groups in descending order, ending with the smallest. Since circuits maximize
user flow, clubs can take advantage of this efficiency to allow more members to
exercise during busy times.
A properly supplied machine weight area typically includes leg press, leg
extension, leg curl (seated preferably), calf raise, and hip abduction and adduction
equipment. Other common machines include those for abdominal, low back, torso
rotation, lat pull, seated row, chest fly, chest press, rear deltoid, bicep curl, tricep
extension, overhead press, dip/chin assist, and deltoid fly work. Weight machines
are generally designed to exercise a single muscle group or groups, but some can
serve as two separate machines (the hip abduction/adduction machine is an exam-
ple of this). There are also weight machines that can be adjusted so that users can
perform on one machine many of the exercises typically performed on many sepa-
rate machines. By using these types of weight machines, clubs with space and/or
financial limitations can offer more exercise options to their members.
Free Weight Area. Similar to machine weight areas in purpose, free weight areas
have found a home in many clubs and benefit both the clubs and their members
if correctly promoted and properly supervised. Free weights include dumbbells,
weight plates, bars, benches, etc., that—when used correctly—can offer the user
the best weight training experience. Free weights require more training and it is
much easier to be injured using them. They take longer to use in part because
weight plates must constantly be added and taken off bars for many exercises.
Fitness center staff should constantly monitor the floor for loose weight plates, as
a floor littered with these plates is unsightly, increases the risk that members may
trip and fall, and makes it less convenient for users to find the specific weight they
are looking for.
Users should wear a wide weight-training belt when lifting heavier weights
to prevent back injury and herniation of the abdominal muscle. Large mirrors
should be installed in free weight areas because users of free weights use their
reflection to perfect technique and maintain proper form, thereby reducing the
chance of injury.
Free weights allow users the most flexibility in their weight training. Sim-
ply holding the weight in a slightly different manner works a slightly different
body area, so users can easily concentrate on a specific part of the body. This is
why weight training with free weights is sometimes called “body sculpting.”
Free weights are less expensive than weight machines, but they require more
space to allow users to perform the same exercises. A good free weight area can
include the following equipment: an Olympic flat bench and incline or decline
bench, leg presses, squat rack, leg sled, and knee raise/dip bench. Other equip-
ment might include a calf raise machine, smith machine, preacher curl rack, hyper
back machine, adjustable abdominal bench, and adjustable utility benches. Clubs
should provide dumbbells ranging from 3–80+ pounds, with multiple pairs of the
smaller dumbbells, along with dumbbell racks and a sufficient number of straight
bars, EZ (easy) curl bars, weight trees, and weight plates.
Stretching Area. The fitness area’s stretching space is where members warm-
up and stretch before and after exercise to minimize the chance of injury and to
increase flexibility. This area is extremely important, but it is often overlooked
when a fitness center is planned. The stretching area should contain four to six
nonabsorbent mats that members can lie on to stretch, and a seated stretching
machine for those members with physical limitations that make it difficult for
them to get on and off the floor. The area should have antistatic carpet treated
with antifungal and antibacterial agents. While the stretching area need not be in
a room separate from the other parts of the fitness area, it should be designated as
the stretching area and not used for other purposes.
Exercise Classroom. The fitness center’s exercise classroom is usually separate
from the fitness floor and is used to hold a variety of classes targeting a variety of
fitness levels, from advanced exercisers to beginners. The number of classes offered
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is limited only by the equipment and availability of certified instructors. Classes

frequently include low-, mid-, and high-impact aerobics, step or bench aerobics,
guided stretching, social dance, martial arts, Yoga, Pilates, Spin, Kettle Bells, weight
bar, dumbbell, and other activities. The classroom should provide at least 40 to 45
square feet of space per participant at peak periods. Classes should have a maxi-
mum of 30 participants. The room should have mirrors on at least two of the four
walls so that members can check to make sure they are using correct form.
Proper flooring in this room is critical. Wood or a comparable low-impact
flooring material is recommended to minimize drag, tripping, and the chance of
ankle or knee injuries. The subfloor should allow the floor to flex or give a bit with
each foot contact to help members avoid many common impact injuries associated
with certain types of exercise. The subfloor may consist of springs, rubber pads or
disks, wooden furring strips, or a combination of these.
The exercise classroom should have a sound system for music and a public
address system for the instructor. Operators should take care to limit the volume/
output of the system to acceptable and safe levels; generally speaking, the higher
the volume of the low frequency (bass) sounds, the more harmful the sound can
be to the inner ear. Other equipment typically found in an exercise classroom
includes exercise and yoga mats, benches or steps, slide mats and booties, large-
and small-weighted exercise balls, weighted bars and weighted/handled balls, and
small hand-dumbbells. Classes can be scheduled and promoted to members with
schedules posted near the entrance to the room, throughout the fitness center, in
the club’s newsletters, and on its website and Facebook page. Members should be
informed of the risks, limitations, and benefits of each class.
Before participating in a class, members should be encouraged to have a
fitness center employee create an individualized exercise program. An exercise
program is a program of recommended exercises and intensity levels developed
for an individual by a trained fitness professional. An exercise program is usually
developed after the member receives an overall health-risk appraisal addressing
strength, endurance, flexibility, cardiovascular health and, not to be overlooked,
personal goals, time availability, and attitudes toward exercise.
Testing and Assessment Area. This private area is used for fitness testing and
assessments of the members to help staff create specialized programs for members
based on objective measurements of their fitness levels. Two qualified staff mem-
bers should be present during these assessments, to protect the members and the
staff from any inappropriate activity or accusations. Basic tests generally include
percent of body fat, weight, physical dimensions, flexibility, exercising and resting
heart rate, and blood pressure. More detailed tests can be administered by more
certified staff using more sophisticated equipment. If a member’s test data sug-
gests a serious illness or condition, the staff should recommend that the member
seek medical advice before continuing with the exercise program.
The staff should record all test data for future reference and secure it to ensure
the members’ privacy. A proper assessment should also include the members’ atti-
tudes toward exercise and their level of familiarity with it. Basically, the staff should
ask, “Is this what you were looking for?” and “Do you like it?” This confirmation is
important to help ensure that the members will stick with their exercise programs.
Sports Areas. In addition to the areas just described, a club fitness center will often
have one or more sports areas. Common sports areas include gymnasiums and
indoor courts. A club’s gymnasium is a large multi-purpose area where members
may participate in a variety of sports such as basketball, volleyball, badminton,
gymnastics, indoor soccer, and children’s sports. In addition to offering scheduled
time for classes, leagues, tournaments, and sports camps, the club should have
open time for members to play “pickup” games or otherwise use the area at their
convenience. A schedule of activities should be posted near the gym’s entrance
and promoted in the club’s newsletter, e-mails, website, and through social media
such as Facebook and Twitter.
Basketball is a popular activity among many club members. The walls behind
the backboards, and any other walls or obstacles that a player might run into,
should be padded. Backboards made of glass should have breakaway rims to
reduce the chance of someone shattering the backboard.
All gymnasium equipment should be placed in storage areas when not in use.
If equipment such as volleyball stands or gymnastic equipment must be stored
on the gymnasium floor, it should be wrapped in padding. All equipment should
be cleaned, inspected, and maintained on a regular basis. Defective equipment
should be removed from service until it can be repaired or replaced.
Common indoor-court sports in clubs include racquetball, squash, handball,
and volleyball. In addition to scheduled classes, leagues, and tournaments, a club’s
indoor courts should have unscheduled times available so that members can book
the courts or use them on a drop-in basis. The schedule of indoor-court activities
should be posted near the courts and promoted to members. Leagues and tourna-
ments are typically organized by skill or experience level (novice to advanced),
gender (men only, women only, mixed, or open), number of participants (singles,
doubles, etc.), and age range (youth, teens, adults, over forty, seniors, and so on).
Protective eyewear and appropriate footwear should be required of all mem
bers playing on indoor courts. A sign indicating these requirements can be posted
on each court door. All door windows and court walls made of glass should be
shatterproof. Court doors should open out from the court, and the inside handles
and hinges should be recessed to minimize injuries and ball deflections. Court
floors are typically made of a cushioned hardwood; court walls are constructed of
either laminated composition panels or plaster/concrete. Many clubs have a glass
back wall or side wall on one or more indoor courts for spectator viewing.
Exhibit 1 indicates the court dimensions recommended by the national gov
erning organization for each indoor-court sport. Avid squash players prefer courts
built according to the singles-international dimensions, and many of these players
are demanding that their clubs convert their older singles-American squash courts
to these dimensions.
Fitness Center Staff

Typical fitness center staff positions include a fitness (or athletic) director, assistant
fitness director, fitness instructor, class instructor, personal trainer, floor leader,
and support staff positions, including a locker-room attendant and front desk staff
member. The fitness director usually reports to the general manager or clubhouse
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Exhibit 1 Court Dimensions for Court Sports

Court Sports Dimensions
Racquetball/Handball/Walleyball 20' W × 40' L × 20' H

Squash (Singles American) 18'6" W × 32' L × 16' H
Squash Singles International 21' W × 32' L × 16' H
Squash (Doubles) 25' W × 45' L × 16' H
manager. A club with dedicated spa facilities may include the fitness operation in
the spa, and the fitness director would be one of the supervisors in the spa. Many
clubs have staff that serve in multiple roles:
•• Fitness directors and assistant fitness directors are generally responsible for
managing the fitness center and staff but may be required to work many dif-
ferent areas.
•• Fitness instructors typically offer workout suggestions to members and teach
them how to use fitness equipment safely.
•• Class instructors teach the various fitness classes.
•• Personal trainers provide one-on-one training sessions.
•• Floor leaders help members use fitness facilities and equipment and monitor
member usage.
•• Support staff attend to administrative and maintenance tasks in the fitness
center—for example, cleaning locker rooms and taking court reservations.
The size and composition of the fitness center staff depend on club size. Some
fitness center positions may be combined with other club athletic positions. For
example, in some clubs the same person handles the fitness director’s duties and
the aquatics director’s duties. Many staff positions in the fitness center require spe-
cial qualifications and certifications. The club’s fitness director and assistant fitness
director should each have at least an undergraduate degree in a health, fitness, or
recreation-related field. They should have experience and knowledge in fitness
operations, program development, supervision, and exercise physiology. They
should also have current certifications in cardiopulmonary resuscitation (CPR),
Automated External Defibrillation (AED), and first aid as well as advanced fitness/
exercise certifications from nationally recognized organizations in the health and
fitness industry, such as the American College of Sports Medicine (ACSM), Ameri-
can Council on Exercise (ACE), and National Strength and Conditioning Asso-
ciation (NSCA). (Chapter Appendix A contains information about ACSM’s health
fitness certification program.)
The fitness instructors, personal trainers, and floor leaders who work directly
with members should each have, or be working toward, an undergraduate degree
in a health, fitness, or recreation-related field, and should possess experience
and knowledge in fitness and exercise programs. They should have basic fitness/
exercise certifications from nationally recognized and accredited organizations in
the health and fitness industry, along with current certifications in CPR and AED.
The fitness center’s support staff should be certified in CPR and AED as well.
Non-staff contractors hired to teach classes in the fitness center should have
appropriate certifications or degrees as well as insurance. Copies of these doc-
uments should be kept on file in the club’s human resources department. Rac
quetball, squash, and handball instructors should have teaching experience and
be ranked players in their sport’s local organization.
Fitness Programs
Instructional fitness programs may include individual lessons, group lessons, and
clinics. One-on-one personal trainers are very popular. While most clubs offer
inclusive fitness assessment, program design, and fitness instruction to their mem-
bers, club members usually pay an extra fee for classes and personal training. The
percentage received by the instructors and trainers is negotiated with the club, but
typically runs from 50 to 80 percent of the fees charged.
Exercise or sports camps at clubs are popular with children during the sum-
mer, on weekends, and on teachers’ work days during the school year. These camps
usually include instructional sports programs, recreational activities, and food
and beverages, and may even include instruction in a cognitive learning area such
as computers or a foreign language. Some camp activities may require children to
travel outside the club, such as activities or field trips associated with climbing and
rapelling, zip lines, water parks, zoos, and aquariums.
A club may also offer wellness programs to its members, since individuals
who are interested in exercise are often concerned about their health in general.
Program topics might include weight management, nutrition, stress management,
and smoking cessation. These classes can meet in a private meeting room or in a
section of a large dining room. Nutrition and weight-management programs can
be coordinated with the club’s food and beverage department, which might offer
“heart-healthy” menu items or weekly specials prepared specifically to coordinate
with program goals. Experts in each subject can be contracted to offer these classes.
Risk Management and Liability Issues

Exercising individuals are at a higher risk for a cardiovascular incident or death
than when they are not exercising. For this reason, clubs should screen mem-
bers to detect coronary or other medical risk factors. The trade-off club managers
must consider is their members’ willingness to cooperate with screening versus
the desire on the part of the club’s insurer and attorney to protect the club from
liability. There are numerous screening instruments available. The PAR-Q and
You, produced by the British Columbia Ministry of Health, and the Health History
Questionnaire, produced by Fitcorp Healthcare and Koeberle, are two commonly
used instruments. The club’s fitness assessment should follow the protocol estab-
lished by the American College of Sports Medicine. If a fitness center staff person
identifies a member as high-risk, the staff person should advise the member to
see a doctor before beginning an exercise program. Ideally, all members should
undergo a thorough fitness assessment at their doctor’s office in addition to the
basic assessment performed in the fitness center. This assessment can identify each
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member’s fitness level and physical limitations, if any, so that fitness staff can rec-
ommend an appropriate exercise program.
Members who participate in an organized exercise activity for which they
register should be required to sign an informed consent form. This form lists all
of the risks associated with the activity, advises members that their participation
is voluntary, and states that, by signing the form, they assume the risks identified.
In addition, the club should have signs posted to inform members of fitness center
safety policies and procedures; these signs are usually required by local health and
safety codes.
Clubs should have a written emergency and evacuation plan for the fitness
center that is integrated with the overall club emergency plan and procedures.
The fitness center’s control desk should be the control center for the fitness areas
during an emergency or evacuation. Depending on the size of the fitness center,
the control desk and the other areas in the fitness center, including the locker room
and fitness floor, should each have a first aid kit, oxygen equipment, and an AED.
The fitness center’s staff should undergo regular training and drills on dealing
with emergencies and evacuations.
The emergency plan should indicate who is responsible for treating an injured
person, who will notify the club manager on duty, who will call the emergency
medical service (and what number should be called—usually 911), who will meet
the emergency medical team at the club’s entrance, and who will complete the
appropriate report.
The club’s fitness director should ensure that the following documentation
is kept at the fitness center: emergency and evacuation plans, accident and injury
reports on both members and staff, copies of the staff members’ certifications,
reports on the emergency training and drill sessions the staff participates in, and
verification of the restocking and updating of first aid kits.
Payment Policies
A club must decide which fitness activities will require members to pay a user fee.
Members are generally not charged a user fee for participation in unorganized activ-
ities in the fitness center. Many clubs do not charge their members for fitness assess-
ments, program design, or instruction; these are seen as inclusive of membership.
Most clubs do charge user fees for the following fitness center activities and services:
•• Personal trainers—hourly and half-hourly rates
•• Lessons (group or individual)—hourly and half-hourly rates
•• Classes
•• Sports camps, leagues, or tournaments
•• Indoor-court usage during peak hours—hourly rate
Spa Operations
Club spas are usually housed in the locker room area and traditionally have
been considered part of either the locker room or fitness operation. However,
the explosive growth in spa operations around the world is leading to a change
in the scale and style of spa operations in clubs. A traditional club spa had a mas-
sage room, sauna, steam room, and whirlpool (Jacuzzi). These amenities were
designed to complement the members’ physical activities in the fitness center
with soothing, relaxing experiences and, hopefully, provide an additional revenue
source. New, purpose-designed spas can be stand-alone facilities that may include
different treatment rooms, areas for beauty- and health-oriented treatments and
services, and a variety of food and beverage options, classrooms, and other facili-
ties. According to Karen Sullivan, the fitness and wellness director at the Kansas
City Country Club, speaking at the 2012 World Conference on Club Management,
66 percent of private clubs are planning an extension of their spa/fitness centers in
the next one to two years, and 58 percent of private clubs that do not already have
a spa/fitness center are considering adding one in the next five years.
A major challenge for club managers and members may be to find a design
compromise that provides desired spa facilities and services but does not duplicate
existing facilities. For example, the existing club may have a fitness center, whirl-
pools, and steam rooms in both the men’s and women’s locker rooms, another whirl-
pool by the pool, and a massage room adjacent to the fitness center or in each room.
Is the members’ desire for a full-service spa sufficient to justify the cost of duplicat-
ing existing facilities in a coordinated spa building or area, or will dispersed facilities
provide the experience and services the members want? Other clubs, without tradi-
tional spas, may decide to add a spa service, such as massage, in small rooms that
may be away from their locker rooms. This may pose an issue as members, dressed
in their robes, travel between the locker rooms and massage rooms.
The number and type of spa treatments available seem limited only by the
creativity and imagination of operators and customers. Most spa treatments are
various types of massage, facials, and pedicures. A host of specialized treatments
are offered by different spas. Some are variations of massage that require a trained
operator and minimal additional equipment. Other treatments require specially
designed and equipped rooms with heat, moisture, sound, and other built-in
equipment. The cost of specialized treatment rooms is high, so it is critical to know
the members’ demand for and willingness to spend on facilities before commis-
sioning them.
Spas can generate significant revenue from retail sales of health and beauty
products, clothing, and equipment. A large spa may have a separate retail shop
with its own employees; smaller operations may have just a cabinet or shelf where
products are displayed, with sales handled by spa staff. Spa services and classes
that require operator services are charged on a fee-for-service basis. Use of facili-
ties such as whirlpools, saunas, or steam rooms is not usually subject to a separate
fee.
Spa food and beverage varies from a vending machine that offers healthy
alternatives to traditional soft drinks and snacks, to juice and health food bars,
to full-service spa cuisine restaurants. Some spas emphasize “life in balance” and
offer a full array of classes in topics such as meditation, mindfulness, healthy cook-
ing, and other subjects designed to impact a members’ life and lifestyle.
The Club Spa and Fitness Association (www.csfassociation.com) provides
helpful information regarding spa operations unique to clubs.
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Spa Facilities
Spa facilities vary with the size and nature of the operation and the services and
activities offered. A large, dedicated spa may have a reception area, a retail shop,
food and beverage outlets, specialized treatment rooms, changing areas, saunas,
steam rooms, whirlpools, plunge pools, and even a dedicated swimming pool. All
facilities should be large enough to meet demand but should not be sized for abso-
lute peak demand, as the cost would be excessive and the facilities under-utilized
most of the time.
Massage Rooms and Treatment Rooms. Massage and treatment rooms should be
located away from noise and vibration and should be private, with a quiet, restful
atmosphere. They should be furnished with appropriate treatment equipment and
fixtures, including, as appropriate, massage tables that are adjustable in height
with a face cradle and double padding. Massage-table sheets and towels should
be changed after each massage. The room’s lighting should be adjustable to pro-
vide high illumination before and after a massage and low illumination during it.
The room should have a sink to allow the masseur or masseuse to wash up after
a massage.
The room should have a minimum of 120 square feet. The temperature should
be 72°F with a relative humidity of 60 percent or less and an air exchange of 6–10
times per hour. Room location in relation to the locker rooms is a concern. In clubs
with sufficient space, each gender should have its own changing areas. In clubs
with limited space, the locker rooms can be used to change. In such a case, it would
be wise to place the massage room where persons can enter it without the need to
leave their locker room.
There are various types of massage to meet members’ needs, including Swed-
ish, sports, reflexology, executive, and Rolfing. The massage therapist should have
a degree from a board-certified school, and many states require massage ther
apists to be licensed. Club managers should check with their local departments of
public health for the applicable regulations. If the massage therapist is considered
an independent contractor, he or she must have professional liability insurance.
The Wet Areas. The spa’s wet areas (steam room and whirlpool) are high-risk
areas because of their extreme heat and humidity. Saunas are equally dangerous
because of their dry heat. The intense heat in these areas may pose a health risk
to members who have cardiovascular disease, high blood pressure, or diabetes, as
well as to members who are taking certain medications, under the influence of alco-
hol, pregnant, or dehydrated by exercise. The humid environment of these areas
is a haven for infectious diseases. The club must safeguard its members by posting
warning signs and following local health-board sanitation guidelines. Some local
and state health departments require that a club follow whirlpool regulations that
are similar to those applicable to a small swimming pool, and may require that a
whirlpool be supervised by a staff member who is a Certified Pool Operator (CPO)
by the National Swimming Pool Foundation (http://nspf.org/en/home.aspx).
Signs in wet areas should clearly outline the risks associated with using these
areas and explain the club’s policies on using them. Signage is often dictated by
local health boards. Clocks in the wet areas help members monitor their usage
Exhibit 2 General Wet-Area Guidelines
Spa Water Chemistry Minimum Ideal Maximum

Free Chlorine, ppm 3.0 3.0–5.0 10.0
Combined Chlorine, ppm None None 0.2
Bromine, ppm 2.0 4.0–6.0 10.0
pH 7.2 7.4–7.6 7.8
Total Alkalinity, ppm 60 80–100 180
Calcium Hardness 150 200–400 500–1000+
Cynauric Acid (if used) 10 30–50 100
Total Dissolved Solids 300 1000–2000 3000
Copper 1.0
Heavy Metals, ppm None None
Silver 0.1
Temperature 102–104°F 105°F
Gallons 500
50 ft
Lighting
candles
Sauna Steam
Humidity 5% 100%
Temperature 170–180°F 100–110°F
Lighting 50 ft candles 50 ft candles
and stay within recommended time limits. Thermometers should be installed in

each of the areas and checked regularly by staff members. The wet areas should be
cleaned and disinfected according to local health codes.
Whirlpool chemical levels should be monitored and recorded as often as local
regulations require, which may be as often as every thirty minutes. Exhibit 2 indi-
cates acceptable water-chemistry ranges and appropriate temperature and humid-
ity levels for the wet areas. (These are general guidelines only; clubs should strictly
comply with the requirements of their local health boards.)
Spa Staff Compensation

Spa compensation is controversial in clubs. The question of whether spa staff are
independent contractors or club employees is a legal one with respect to liabilities
and taxes. Managers should consult the club attorney for liability questions. Most
managers would probably prefer that spa staff be treated as independent contrac-
tors, but member expectations and club by-laws regarding payments at the club
may make it difficult to sustain independent contractor status. (Note: a minimal
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spa operation may use outside contractors who communicate directly with club
members to provide services for them. The service provider usually pays the club
either a fixed fee or rental for the facility or a portion of the fee for the service. A
fitness attendant or locker room manager may keep a schedule for reserving the
facility and have responsibility for cleaning and restocking the room between uses.)
If spa staff are paid as outside contractors, the most common procedure is to
pay the service provider a portion of the fees charged to the member. Members
charge the spa service fee to their account, and it is billed as any other purchase at
the club. The club’s accounting department splits the member charge, recognizing
the portion charged the service provider as “spa commission” or similar revenue,
and generates a check request or accounts payable posting for the portion paid to
the service provider.
If spa staff are paid as employees, then questions can arise about their com-
pensation. Options are a fixed hourly rate or salary, a straight commission on ser-
vices provided, or some mix of the two. A major problem with fixed pay is that
spa activity varies considerably by time of day, day of the week, and season. Pay-
ing full-time rates is expensive and requires a high level of member spa activ-
ity to justify the cost. A major problem with paying straight commission is that
affected employees may have to develop outside clientele to maintain their income
in slower periods at the club. This, in turn, leads to scheduling problems and pos-
sible conflicts in prioritizing their club and non-club clientele. Another issue with
respect to straight commission is the number of preparatory and support tasks
that have to be done to keep a spa running. An employee who is paid only for pro-
viding services is unlikely to have much interest in doing unpaid but important
work such as cleaning, organizing, stocking, and checking reservations.
The challenge with paying a combination of salary or hourly rate with a com
mission for charged services is to find a successful mix. Club managers must ana-
lyze their club and membership to develop a workable mix. They must also con-
sider the competitive environment, member demand for specialized spa services,
seasonal issues, and member price-sensitivity. A manager is likely to be squeezed
between members’ desire to have services available whenever they want them,
and the cost of having specialized employees available at times when they aren’t
generating much revenue.
Aquatics Operations
Aquatics facilities at older clubs usually consist of a main pool and a separate,
smaller “baby pool” for infants and toddlers. However, many clubs have addi-
tional water slides and interactive water features. Some clubs may have a separate
pool for adults for lap swimming; there may also be a separate diving pool or a
diving well in the main pool, separated from the rest of the pool by a cord with
buoys. When children and adults share the main pool, ten or fifteen minutes of
every hour is sometimes designated as adults-only. (Some clubs allow children in
the pool during the adult swim period if a parent or guardian is in the water with
them and within close proximity.)
The pool should have lifeguards present at all times. Members who use
the aquatics facilities for physical conditioning may require equipment such as
Exhibit 3 American Red Cross Instruction
Programs in Aquatics
Swimming Level One: Water Exploration
Swimming Level Two: Primary Skills
Swimming Level Three: Stroke Readiness
Swimming Level Four: Stroke Development
Swimming Level Five: Stroke Refinement
Swimming Level Six: Skill Proficiency
Water Safety Instructor
Basic Water Rescue
Lifeguarding
Lifeguard Management
Swim Coach Safety Training
CPR/AED Professional
goggles, kickboards, pull buoys, leg floats, hand paddles, hand (water exercise)
dumbbells, fins, pace clocks, drag devices, underwater benches, buoyancy jackets,
swim bars, and weights. Recent national regulations have added the requirement
for some clubs to install lifts and ramps to accommodate disabled individuals per
the Americans with Disabilities Act.
Aquatics Programs
Clubs typically offer a wide variety of aquatics programs to meet members’ inter-
ests. Club members with children are especially interested in aquatics because of
the instructional programs that are offered. Swim lessons are very popular during
the summer months, and instruction can include private and semi-private lessons,
group classes, and clinics. Clinics offer advanced instruction in specific areas such
as fitness and competitive swimming. Instruction levels range from infant to adult.
(Note: if adults are learning to swim, it is advised that they be allowed to learn in
a private setting.)
The American Red Cross and the YMCA pioneered swim instruction in the
United States. Both organizations offer detailed guidelines on implementing swim
instruction programs. Exhibit 3 lists the Red Cross’s aquatic instruction programs.
Adult exercise classes in the pool include water aerobics, hydro-robics, “swimnas-
tics” (water exercises), water walking (walking in water with a buoyancy jacket),
and adult swim-stroke improvement. In addition, other classes such as skin div-
ing, snorkeling, scuba diving, canoeing, and kayaking are popular and can be
offered in the pool.
Staff members running summer camps for children usually use the aquat-
ics facilities for some of their instructional and recreational activities. Members
normally pay a user fee for swim lessons. The swim instructors receive a percent-
age of the fees, which are established at the beginning of the swim season by the
club’s general manager, aquatics director, and aquatics committee. Since he or she
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supervises the instructional program, the aquatics director may receive a percent-
age of fees for all swim lessons.
Swim Teams. Many clubs organize swim teams, usually composed of children
under the age of eighteen, divided by gender and age groups. Races are held for
specific swim strokes such as freestyle, butterfly, breaststroke, and backstroke.
Swim team events include single strokes, relays of different swimmers in a single
stroke, a medley or combination of strokes performed by a single swimmer, and
relay medleys. Some clubs have diving events.
Club swim teams are usually closely supervised by the club’s aquatics com
mittee, which may consist of members who have children on a swim team or who
have a strong interest in the aquatics area. As with other club committees, a mem
ber of the board of directors usually serves on the aquatics committee to keep the
board abreast of aquatics activities. Along with the swim team coach, the aquat-
ics committee is usually responsible for recruiting swim team parents to perform
tasks associated with swim team management. Typical volunteer activities include
transporting team members to off-site meets and serving as timers, judges, and
event organizers. These volunteers should be trained in their responsibilities and
scheduled much like employees.
Swim team practice sessions are usually held early in the morning or late in
the afternoon to limit the swim team’s interference with normal pool operations
and programs. Clubs with very competitive swim team programs may have two
practice sessions a day. Many clubs are members of a league comprised of teams
from several clubs. If a club league does not exist, a club’s swim teams can usually
find comparable club or public swim teams to compete with.
Promoting the club’s swim teams is done by word of mouth, notice or reader
boards in the club, special event signs placed near the pool or in fitness areas, the
club website, social media, e-mails, and the club newsletter. Having a swim team
bulletin board near the aquatics facilities helps promote swim team events, keeps
club members informed of swim team activities, and alerts swimmers as to when
the pool will be used for team practices or home swim meets. A swim team news
letter or a special section in the club newsletter can promote the club’s teams and
praise individual participants.
Special Events
Clubs should offer special aquatics events based on members’ interest. Events that
involve member families and friends are popular, especially on major summer
holidays. Special aquatics events include diving competitions, water volleyball
tournaments, coin searches in the pool, team relay races involving rafts or inner
tubes, water polo matches, inner-tube water polo, underwater hockey, and kick-
board games. Evening events around the pool are also popular with barbecues or
Hawaiian luaus. Teen nights at poolside with music and casual dining are also very
popular. Night swimming should only be allowed if the club’s pool has adequate
underwater and deck lighting. Any evening activity at the pool should be closely
monitored by club lifeguards because of the decreased visibility and, at adult par-
ties, the consumption of alcoholic beverages. As during the day, no glass or china
should be allowed in the immediate pool area during these evening parties.
Aquatics Staff
The swimming pool may be the busiest area of the club during the summer, and it
can be the club’s best tool for keeping existing members and recruiting new mem-
bers. It is also the club’s area of highest liability. Most of the aquatics staff is usu-
ally teenage and seasonal. Employees must be selected wisely and compensated
appropriately. Successful clubs have staff members return for multiple summers,
which helps provide consistency in operations.
Some clubs hire outside providers to supply their aquatics staff needs. The con-
tracted provider staffs the pool, runs the swim lessons and swim teams, and takes
care of the pool’s chemistry and maintenance issues. Hiring an outside provider can
be helpful for clubs without a certified aquatics director or other staff on hand to
adequately manage the pool. However, when contracting with outside providers,
the club does not always have sufficient control over the quality of the staff. Clubs
considering this alternative should carefully consider the provider’s certifications,
experience, and ability to consistently meet club members’ expectations.
Typical aquatics staff positions include aquatics director, assistant aquat-
ics director or head lifeguard, swim instructor, swim team coach and assistant
coaches, and lifeguards. Some positions might overlap; for example, swim instruc-
tors might also serve as lifeguards, and the aquatics director, the assistant aquatics
director, or a swim instructor might also serve as the swim team coach. At some
clubs, the aquatics director is considered the assistant fitness director and per-
forms the responsibilities of both positions.
The positions in the aquatics area require special qualifications and cer
tifications. A club’s aquatics director should have a pool operator certification (the
club’s maintenance director should have this certification as well) in addition to
lifeguard, CPR, AED, standard or advanced first-aid, and water-safety instructor
certifications. The aquatics director should also have experience as an assistant
aquatics director, swim instructor, and lifeguard, and possess administrative and
supervisory skills.
An assistant aquatics director should have the same certifications as the
aquatics director, but he or she typically has less on-the-job experience than an
aquatics director (prior experience as a swim instructor and lifeguard is highly
recommended).
Qualifications for a swim instructor include lifeguard, CPR, AED, standard
first-aid, and water safety instructor certifications. A swim instructor should also
have good communication skills and be patient, friendly, and outgoing.
The qualifications for a swim team coach are usually the same as those for a
swim instructor, with the addition of American Red Cross certification in safety
training for swim coaches and experience as a swim team competitor. Experience
as an assistant coach with a variety of age groups, an understanding of the bio-
mechanics of competitive swim strokes, and group organizational skills is also
important. The swim team coach is often the aquatics director or assistant aquatics
director or, at least, has some additional responsibilities in the aquatics program.
Lifeguards should have lifeguard, CPR, AED, and standard first-aid
certifications. The lifeguards, swim instructors, swim coach, and assistant aquat-
ics director report to the aquatics director. When the aquatics director is not at
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the club, the assistant aquatics director or head lifeguard assumes the director’s
responsibilities. The aquatics director at a club normally reports to the athletic
director, general manager, or clubhouse manager. The aquatics director will also
communicate with the chairperson of the aquatics committee and other aquatics
committee members about aquatics programs and facilities. The general or club-
house manager should be informed of any official communication between aquat-
ics committee members and the aquatics director.
Generally, lifeguards are paid on an hourly basis, while swim instructors
receive a percentage of the fees generated from lessons. The aquatics director,
assistant director, and swim coach typically receive salaries. The aquatics director
may also receive fees directly from lessons and classes he or she teaches, a percent-
age of the fees from all aquatics lessons and classes, a percentage from summer
camp fees or fees from special swim activities that generate revenue, and the pro-
ceeds or a percentage of the proceeds from the sale of aquatic products, depending
on whether the inventory is owned by the director or the club. The swim coach
may also receive a percentage of swim team registration fees.
Staff Duties. Typical lifeguard duties include conducting pool and pool-deck area
surveillance; enforcing swimming pool rules and regulations; and performing res-
cue, safety, and emergency procedures when needed. Lifeguards also test the pool
water chemistry at regular intervals and adjust it as instructed by the aquatics
director. They set up aquatics and rescue equipment and perform daily opening,
closing, preventive maintenance, and trash collection duties in the pool area. They
may be asked to staff the pool’s reception area and manage games and activities.
Lifeguards should be dressed in a standard lifeguard swimsuit and shirt to be eas-
ily identifiable.
Swim instructors meet with students in classes, private lessons, and clinics
when scheduled, and they may do their own scheduling. They should wear swim
attire so that they can enter the water for demonstrations. Swim instructors gener-
ally take class attendance and are responsible for ensuring that input to the billing
system is correct and that the proper certification cards are issued to participants
at a course’s completion.
The swim coach is responsible for all the components of swim team organiza
tion, which includes recruiting team members, leading team practices, organizing
swim team competitions, and interacting with the swim team committee (which
may be a separate club committee or a subcommittee of the aquatics committee).
He or she also meets with the local swim league and plans social events for team
participants.
The swim team coach needs to be a motivator as well as a teacher and adminis-
trator. Keeping children motivated to attend practices and compete throughout the
swim season are major goals. The swim coach must interact well with the swim team
children’s parents, who typically are asked to volunteer in a number of capacities.
The aquatics director and assistant aquatics director perform all administra
tive, supervisory, and training functions for the aquatics facilities. Administrative
duties include purchasing equipment, supplies, and chemicals; hiring aquatics
staff; and completing all reports (which address accidents, pool chemicals, inven-
tory, maintenance activities, and other concerns). These directors also develop
rules, operating manuals, and emergency and evacuation procedures for the
aquatics area; ensure that signage is properly placed; and complete and submit
payroll forms. Their supervisory duties include evaluating lifeguard surveillance
techniques, ensuring consistency in rules and policies, enforcing the staff dress
code, and evaluating the performance of staff members. Staff training includes
conducting emergency and evacuation drills as well as reviewing aquatics-area
policies and procedures. Aquatics directors also monitor instructional programs
and sometimes teach classes themselves.
Aquatics directors interact with local boards of health to ensure that their
clubs’ aquatics facilities meet all local code and inspection requirements. They
also interact with and support the club’s swim teams and coach (if they are not
the coach themselves). Directors promote aquatics activities by conceptualizing,
planning, and posting notices of upcoming activities, writing articles for the club
newsletter, sending e-mails, posting to social media, and calling members about
upcoming events.
Many club pools are open only part of the year. Aquatics directors may per
form seasonal opening and closing activities or may supervise the club’s main
tenance staff. Aquatics directors may also have the responsibility of monitoring
and maintaining the pool during the off season.
Safety Policies
Because of the potentially life-threatening situations that can occur in the pool area,
aquatics staff members must have the authority and the personality to deal force-
fully with persons when dangerous or emergency situations occur. They should
also have a plan that covers emergencies that might arise. As with the club’s fitness
center staff, all aquatics staff should know who is responsible for treating injured
parties, who ensures the emergency or accident scene is safe, who monitors the
pool during the emergency, and who calls the emergency medical service (EMS) if
the problem is life-threatening (and what number should be called—usually 911).
They must also know who meets the EMS personnel at the club’s entrance, who
notifies the club manager on duty, and who completes the accident report. An
emergency flowchart that outlines these jobs and responsibilities in an emergency
should be posted in the pool office.
Lifeguards on duty should constantly monitor the pool and surrounding deck
for swimmers who need assistance or who may be engaging in dangerous activi
ties. Lifeguards should sit in elevated chairs equipped with umbrellas and appro-
priate lifesaving equipment. When in a chair, a lifeguard should not be talking to
members or staff or performing any other activity. Lifeguards should rotate their
positions or duties every twenty to thirty minutes to ensure peak attention. They
should also take regular breaks to get out of the heat and sun.
Local or state health departments may have standard pool regulations that
must be enforced so the pool can be permitted to open, and clubs must comply
with these regulations.
Pool safety equipment includes rescue tubes or ring buoys with lifelines or
throw bags, shepherd’s crooks or reach poles, a backboard with straps and cervi-
cal collars, resuscitation and oxygen equipment, personal (rescuer) protection kits,
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first aid kits and AEDs, a weather alert radio, and a phone or communication sys-
tem to contact EMS and coordinate with other club staff in an emergency.
All pool rules should be clearly posted and can include the following examples:
•• No one may enter the pool facility unless a lifeguard and pool personnel are
on duty.
•• Pool staff members have the authority to maintain conduct, enforce rules, and
limit privileges for anyone violating the rules.
•• Bathers must take a shower before entering the pool.
•• Children under the age of eight years must be supervised by a parent or by a
responsible guardian fourteen years or older.
•• Non-swimmers using personal flotation devices must be supervised at all
times.
•• Floats and rafts must be small enough for a lifeguard to see under them.
•• Untrained children must wear swim pants made specifically for pool use.
•• Bathing attire must be suitable for a family environment.
•• Persons with infectious diseases or that are sick are not permitted in the pool.
•• In the event of thunder, the pool will be closed and will remain so until thirty
minutes has elapsed between claps of thunder. In the event of lightning, the
pool, the deck areas, and the field adjacent to the pool will be closed and will
remain closed until the last sighting of lightning.
•• Glass and other breakable containers are not permitted in the pool area.
•• Smoking in or around the pool is not permitted.
•• Diving board rules must be observed at all times and are available from the
staff.
•• Swimming is not allowed in the diving area while the diving boards are in
use.
•• No running, pushing, dunking, or other unruly conduct is allowed.
•• Only one person is allowed on a diving board at a time. Do not step on the
board until the diver in front of you has left it.
•• Persons diving must first wait for the diver in front of them to surface, swim
to, and touch their side of the pool wall.
•• You may not run down the length of the board.
•• You may not perform twisting, spinning, or spiraling dives unless you are
trained in or involved in competitive diving.
•• You may not sit, kneel, or lay down on the boards.
•• You may not perform handstands or any similar non-competitive dives.
•• No double bounces are permitted.
•• You must dive straight out and never to the side.
•• All dives and jumps should be performed so you land in the deepest part of
the pool. Do not dive out horizontally.
•• Only one person may go down the water slide at a time. No doubles unless it
is a parent with a non-swimming child.
•• Swim away from the slide as you exit.
•• Do not swim at, near, or underneath the end of the slide.
•• Floats are not allowed on the slide.
Pool Operation and Maintenance

The swimming pool’s basic system consists of a structure holding water, a filtration
system, a sanitation system, and possibly other devices such as a heater. The water
should go through the filtration system and be returned to the pool (called “turn-
over”) on a regular basis regulated by the local health department. Common turn-
over rates for different pools are as follows:
•• Swimming pools—every six hours
•• Dual-use pools(with a water feature)—every four hours
•• Interactive wading and play pools—every sixty minutes
•• Children’s wading pools—every thirty minutes
•• Spas and hot tubs—every thirty minutes
Water is removed from the pool for filtration through the main drains at
the bottom of the pool and the skimmers or gutters at the water’s surface. There
should be a minimum of two floor drains with covers that comply with the Vir-
ginia Graeme Baker Pool & Spa Safety Act (VGB Act). Skimmers should also be
VGB Act complaint. A pump draws the water through these openings to the filter
system. Strainers at the surface and in front of the pump collect debris, hair, and
other large particles to prevent serious damage to the pump’s impeller. Strainers
should be regularly cleaned.
Pool water is pumped through the filter or filters. Common filtering materi-
als are sand, diatomaceous earth (DE), paper cartridges, and regenerative media
(RMF). After filtration, the water is returned to the pool via return lines that are
usually spaced evenly around the pool’s floor and along the walls a few feet below
the water’s surface. Chemical feeders typically are attached to the main return
line; there may be one or a number of chemical feeders that add a variety of chemi-
cals. The pool may have an automated system that tests the water and adds the
appropriate chemicals. If there is no automated system, staff members must peri-
odically check the water chemistry and either turn on the chemical feeders or add
chemicals manually. Exhibit 4 indicates acceptable pool-water chemistry and the
chemicals used to maintain it.
Because of its low cost and ease of use, chlorine is the most common form of
swimming pool sanitizer, but other disinfectants such as salt and ozone can also
be used. Chlorine comes in four forms: gas, liquid (sodium hypochlorite), powder
(calcium hypochlorite), and solid sticks (di/trichloroisocynaruate). Any chlorine
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Exhibit 4 General Pool Water Guidelines
Water Chemistry Minimum Ideal Maximum

Free Chlorine pool 1.0 ppm 1.5–3.0 ppm 5.0 ppm
Free Chlorine wading pool 3.0 ppm 3.0–5.0 ppm 10.0 ppm
Free Chlorine water course 2.0 ppm 2.0–5.0 ppm 5.0 ppm
Free Chlorine dual use 2.0 ppm 2.0–5.0 ppm 5.0 ppm
Free Chlorine wading 3.0 ppm 3.0–5.0 ppm 10.0 ppm
Free Chlorine, water attraction 3.0 ppm 3.0–5.0 ppm 10.0 ppm
Free Chlorine, zero depth 3.0 ppm 3.0–5.0 ppm 10.0 ppm
Combined Chlorine None None 0.2
Bromine 2.0 ppm 4.0–6.0 ppm 10.0 ppm
pH 7.2 7.4–7.6 7.8
Total Alkalinity, ppm 60 80–100 180
Calcium Hardness 150 200–400 500–1000+
Cynauric Acid (if used) 10 ppm 30–50 ppm 100 ppm
Total Dissolved Solids 300 1000–2000 3000
Copper 1.0
Heavy Metal None None
Silver 0.1
Adjusting Chemicals
Chemical To increase To decrease

Soduim carbonate (light) Muriatic acid
pH Sodium bicarbonate Sodium bisulfate
Sodium hydroxide Sulfuric acid
Total Alkalinity Sodium bicarbonate Muriatic acid
Calcium Hardness Calcium chloride dihyrate
vapor can be dangerous or even fatal. Chlorine gas, at 100 percent chlorine, is the
most economical, but it is also the most dangerous and is not allowed by health
departments for most swimming pools. Liquid chlorine, at 5–15 percent chlorine,
is not as dangerous, but it is unstable and loses its effectiveness over long periods
of time. Powdered chlorine, at 56–70 percent, is safer than gas but the powder is
easily inhaled. Care must be taken that other liquids do not find their way into the
storage canister. If they do, and the lid is then closed, the powder and liquid mix-
ture can cause the release of chlorine gas, creating the potential for an explosion.
Bromine, which is more expensive than chlorine, is often used as a whirlpool
sanitizer because it is more stable than chlorine at high temperatures and has less
odor; however, it is also a dangerous gas.
The swimming pool’s surface should be skimmed of debris and its deep end
well-cleaned on a daily basis. The entire pool generally needs to be vacuumed
at least once a week—more often if there are trees around the pool, if the pool is
heavily used, or if there is a great deal of air pollution in the area. This can be done
manually with a long pole and hose attached to the pumping/filtration system, or
by a commercial automated vacuum that roams the bottom and sides of the pool
at night or when the pool is closed.
The pool’s filter system must be cleaned (“backwashed”) when too much
debris accumulates on the filters; this is usually indicated by pressure gauges on
the influent (incoming) lines to the filters and the effluent (outgoing) lines. As
the filters get dirty, the water coming into the filters will slow down, causing an
increase in the influent pressure, and the water returning to the pool will slow
down, causing a decrease in the effluent pressure. To backwash the filters, the
pump is turned off, the valves are adjusted to reverse the water flow through the
filters, and the dirty water is diverted to the sewer. Five to ten minutes of back-
washing is usually sufficient to clean the filters.
Tennis Operations
Club members who are interested in tennis vary in their expectations of their club’s
tennis operations. Some may play tennis only for recreational purposes a few
times a month; others may enjoy the competitive nature of the sport and play more
often in leagues and tournaments. Parents may want the club to have instructional
tennis programs for their children. Businesspersons may want to have “business
tennis matches” at the club with clients who enjoy tennis. Offering a variety of
tennis programs to meet these and other member needs will help make the club’s
tennis operations successful. According to the CMAA 2011 Finance and Operations
Report, 91 percent of country clubs and 29 percent of golf clubs have outdoor ten-
nis courts. Fourteen percent of all country clubs have indoor tennis courts.2
Tennis Programs
Competitions. Some of the most common tennis programs at clubs are competi
tions: ladders or pyramids, round-robin mixers, leagues, and other tournaments.
The biggest concern is the number of courts that will be used and, therefore,
unavailable to other members. If possible, a few courts should always be left open
for free play.
A ladder or pyramid is an ongoing competition among club members. In this
competition, the names of participating club members are arranged in a ladder or
pyramid and then posted. At first the members are placed in the ladder or pyramid
randomly; the order changes as the members play each other and their standing
within the group changes. Players challenge others who are above them; the ulti-
mate goal is to get to the top of the ladder or pyramid. If the challenger wins, he or
she moves up the ladder, while the loser moves down to the challenger’s position
698 Chapter 17
(or one position down). The players schedule their own matches and report the
results to the tennis staff. There are many variations on the ladder or pyramid con-
cept. Changing the format from time to time keeps the event exciting.
Round-robin mixers allow members to play tennis with a large number of
other members with similar abilities. These competitions are normally played on
one day, over a weekend, or over the course of a week. The number of matches
scheduled should never exceed the number of courts, to ensure that participants
will not have to wait for an open court. If there are many participants, they can be
organized into groups (flights) that are scheduled to play at different times. If the
round-robin is to be played in a single day or weekend, each match may consist of
only one set or have a time limit. Shortened matches allow participants to play a
larger number of individuals without getting tired or losing interest. As with lad-
der competitions, there are many variations of the round-robin mixer, and variety
will ensure continuing member interest and enjoyment.
There are many types of club tennis leagues. A club may have a tennis team in
a competitive league and play other club or city teams in home and away matches.
There are also less competitive, more “fun-oriented” leagues, with matches played
only among a club’s own teams. Leagues are usually structured by skill level, gen-
der, and type of play (singles, doubles, or mixed doubles). Club teams should have
enough players to make up for no-shows at scheduled matches. League competi-
tions usually last a number of weeks.
A club may provide food and beverage service (for a separate fee or a fee
included in tournament fees) for league matches at the club. Few clubs allow
members or their opponents to provide their own refreshments. The club’s general
manager should check with the local alcohol and beverage authority before allow-
ing anyone to bring alcohol onto club property, since this usually is a violation of
the club’s liquor license.
The overall club tennis team comprises a number of teams: men’s teams, wom-
en’s teams, and teams for various age groups among the junior participants. The
tennis director or an assistant tennis professional often assumes the responsibility
of tennis team coach. Club members may act as team captains to assist in recruit-
ing players, purchasing team attire, assigning players to teams and positions (first
singles, second singles, and so on), and organizing practice sessions, matches, and
transportation. The team captains are often members of the club’s tennis committee.
Most clubs conduct at least a few tennis tournaments each season as well as a
club championship tournament or a member-guest tournament. A standard tour
nament allows participants to lose only once or twice before they are eliminated;
the major types of competition are single elimination (one loss allowed), double
elimination (two losses allowed), and consolation (losers play in a separate single-
elimination tournament). As in league play, tournament participants usually are
divided into groups based on skill level, gender, and type of play.
One of the primary purposes of a member-guest event is to introduce pro-
spective members to the club and its services. The tennis director should interact
with guests and members during member-guest tennis events to show guests the
type of personal services that members receive.
Food and beverages should be served at organized tennis tournaments. There
should be ample promotion of each tournament to foster member interest and
participation. Notices in the club newsletter, social media, e-mails, and posted
signs should alert members to limited court availability during organized tourna-
ments. Tournament fees should cover direct costs, including food and beverage
service, prizes, pro-shop certificates, and tennis balls. When scheduling a tourna-
ment, the organizer must make sure that it does not conflict with other club events.
Lessons. Tennis instruction is the foundation of a club’s overall tennis program.
Instruction is the key to getting members to use the tennis courts and visit the club
more often. Moreover, the instructional program increases participation in other
tennis activities such as leagues, round-robin mixers, and tournaments. Instruc
tional programs should cover beginning, intermediate, and advanced skill levels.
The key to keeping members enrolled in tennis lessons is to make them interest
ing, challenging, and fun.
Tennis lessons can be in the form of private lessons, group lessons, or clinics.
Group lessons and clinics are divided by age group (adult and junior), gender, skill
level, and topic such as stroke improvement, strategy, and conditioning. Offering a
variety of lessons will attract the most participants. Private lessons allow members
to receive individual attention while group lessons and clinics allow members to
interact with other members while improving their skills. Group lessons use court
time more efficiently, which may be important if facilities are limited. The club
should never allow all of the courts to be used at the same time for lessons, espe-
cially during peak hours.
Club members generally pay a fee for lessons. Tennis instructors—the tennis
director and assistant tennis professionals—may keep all or a certain percentage
of the fee. Policies are established annually by the club’s board with input from
the tennis committee, the club manager, and the tennis director. Often, the tennis
director receives a percentage of the revenue from lessons taught by assistant ten-
nis professionals. The percentage, which may be as high as 50 percent, is usually
based on the experience of the assistant tennis professional—the more experienced
he or she is, the smaller the percentage received by the director.
Some clubs offer a new member or new player one free private lesson. This
can help the staff assess the member’s skills and place him or her in the correct
level for group lessons or league or tournament play.
Junior Programs. Tennis clinics and camps for children are popular during the
summer, and the club usually has plenty of courts available during the day on
weekdays. During the school year, junior programs can be scheduled immediately
after school. Junior programs may include group lessons, clinics, round-robins,
tournaments, group games, member-guest events, and parent-child events. Junior
tennis players should be grouped by age and ability for each event. The pro shop
should carry junior-size racquets to accommodate program participants. Success-
ful tennis events for juniors combine fun, instruction, and social interaction.
Tennis Staff
Typical tennis staff positions include tennis director (or tennis professional), assis-
tant tennis professional, tennis instructor, pro shop employee, and maintenance
staff member. In a small club, all of the duties involved in the tennis program—
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teaching, pro-shop management, and maintenance—may be performed by the

tennis director and assistant tennis professionals. Larger clubs may have addi-
tional staff members who sell pro shop items, handle court reservations and sign-
ups for organized tennis events, and perform other duties. Large clubs may also
employ someone to perform daily and weekly court maintenance.
The tennis director (or tennis professional) is responsible for administering
the overall tennis program. This involves organizing tennis programs; administer-
ing lessons, exhibitions, and court reservations; collecting guest fees and enforcing
the club’s guest policies; overseeing the club’s tennis teams; and overseeing court
maintenance. The tennis director is also in charge of the pro shop’s administra-
tion—sales, merchandising, purchasing, and control procedures—and the ball
machines—reservations, rental fee collection, and machine maintenance and stor-
age. The tennis director is responsible for the fiscal success of the tennis program
and the preparation and maintenance of its budget. The director hires, supervises,
trains, and evaluates the tennis staff.
The tennis director may receive any of the following as part of a compensa
tion package: a salary; ownership rights to the pro shop merchandise or a percent
age of the revenue; income from lessons and/or ball machine rentals; a benefits
package that includes insurance, vacation time, and a retirement plan; a bonus for
meeting operational goals; reimbursement for professional expenses such as asso
ciation dues and continuing education; comp time to play in tennis tournaments;
and club usage privileges and free meals, according to terms agreed upon between
the club and the tennis director.
The assistant tennis professionals and pro shop staff report to the tennis direc
tor. When the director is not at the club, the senior assistant tennis professional
assumes the director’s responsibilities. The tennis director normally reports to the
club’s general manager, unless the size of a club’s sports operation is such that there
is an assistant manager with responsibility for all sports and athletic operations.
In equity clubs, the director also communicates with the chairperson of the tennis
committee and with other tennis committee members about tennis programs and
facilities. The general manager should be informed of any official communication
between tennis committee members and the director.
Qualifications for a tennis director, assistant tennis professional, or a ten-
nis instructor include United States Professional Tennis Association (USPTA)
or United States Professional Tennis Registry (USPTR) tennis-professional
certification. Qualifications should also include competitive tennis experience and
skill and preferably some teaching and work experience at a tennis facility. The
tennis director should be a good communicator; be patient, friendly, and outgoing;
have a sense of humor; and work well with children. Tennis directors should also
have good administrative and supervisory skills.
Tennis professionals should be highly visible to club members; they should
be seen both teaching and playing on the club’s courts. They must be careful, how
ever, to avoid being perceived as playing too much or playing with only a few
members. A frequent complaint among club members is that some tennis pros
“play favorites” when choosing members with whom to play tennis. Tennis pro-
fessionals should also be given opportunities to win prize money in local tennis
tournaments.
While courts of law have yet to determine clearly whether tennis profession
als working at a club are truly independent contractors, IRS Publications 1779
and 15-A, and Form SS-8, Determination of Worker Status for Purposes of Federal
Employment Taxes and Income Tax Withholding, provide helpful information. The
trend is clearly toward employee status. A tennis pro is likely to be considered
a club employee if one or more of the following conditions apply under normal
circumstances:
•• The tennis professional has signed an employment agreement with the club.
•• The tennis facility’s hours of operation are specified by the club.
•• The club provides the professional with pro shop space, utilities, telephone
service, and meals at no charge.
•• The club bills members for tennis services, collects revenue from members,
and pays the revenue due to the professional.
These conditions, which exist at many clubs, have been interpreted by the IRS to
demonstrate employer control over a tennis professional. In the event of a wage
dispute, the Department of Labor will likely consider all tennis staff members,
including the director and assistant professionals, to be employees of the club. Club
managers should consult an attorney for specific details applicable to their club.
Pro shop employees should be knowledgeable about tennis and possess the
same social and communication skills as the other members of the tennis staff.
Although many of their duties relate to the pro shop, the employees are usually
paid by the club, either in part or in full. This is because some of their duties are
club-related, such as taking court reservations and registering club members for
organized tennis activities.
Tennis maintenance employees should have a knowledge of tennis along with
the dexterity and strength to perform the manual tasks required to maintain the
courts, such as operating machinery and lifting large bags of chemicals. Clubs
with soft-surface tennis courts should employ a technician or head maintenance
person with experience in maintaining these courts. In some clubs, the tennis
maintenance employees may be part of the golf course grounds crew, performing
tennis court maintenance guided by the tennis director.
All tennis staff members should be appropriately dressed and groomed.
Tennis pros and pro shop staff members should be encouraged to wear pro shop
apparel to promote its sale. This can be done by offering a staff discount or by
providing pro shop apparel for them to wear while on duty. Name tags give a
professional finish to their attire.
Pro Shop
Products and services offered for sale in a typical tennis pro shop include racquets
(including demonstration models), balls, apparel, shoes, and racquet stringing and
re-gripping. The pro shop’s merchandise should be of high quality and include
items that are not available in local sporting-goods stores and retail tennis shops.
Moreover, because the pro shop deals with a limited clientele, displays should be
changed frequently.
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The pro shop usually offers a discount on uniforms and supplies to members
in a tennis league. The pro shop may sell to club members via a cost-plus program:
members pay a fee to join the program and then can purchase merchandise for
cost plus a set percentage (usually ten percent). The club may award credit at the
pro shop as a tournament prize, which helps to move merchandise and increase
sales. A racquet “demo” program, whereby members can try out racquets before
buying them, will increase racquet sales, as will requiring the club’s tennis profes
sionals to use only racquets that are carried in the pro shop.
The merchandise in the tennis pro shop may be owned by the tennis direc-
tor or by the club; there are almost as many arrangements and contractual agree-
ments as there are clubs. For example, some tennis directors may negotiate only
for the pro shop’s racquet-stringing operation, as this is a very profitable enter-
prise. According to the CMAA 2011 Finance and Operations Report, in clubs with
one to five tennis courts, 25 percent of the tennis shops in these clubs are owned
by the club’s tennis professional; in clubs with six to eleven courts, 57 percent of
the pro shops are owned by the tennis professional; and in clubs with twelve or
more courts, 25 percent of the pro shops are owned by the tennis professional.3
Tennis directors who own the pro shop’s merchandise usually must secure their
own credit to purchase inventory, fixtures, and displays. In many clubs, the tennis
director owns the pro shop’s merchandise but does not pay rent for the space. In
some clubs, the club receives a percentage of the profits from the pro shop in lieu
of rent. Again, much as in the club’s golf operations, the trend is toward employee
status for the tennis director and for the pro shop to be a retail outlet of the club.
Inventory is purchased by the club and revenue is club revenue, though the tennis
pro may include supervising the pro shop and its staff among his or her responsi-
bilities. In a small number of cases, the pro shop may be leased out to a third party
in return for rent or a percentage of total sales or net income; this lease arrange-
ment may be managed either by the tennis director or the club. The club should
require the tennis director to carry liability insurance and property insurance if the
director owns the pro shop merchandise and operation.
Maintenance
The tennis courts, pro shop, and grounds in the tennis area should be as clean and
as aesthetically pleasing as the rest of the club’s facilities. The grounds around the
tennis courts, including grass areas, landscaped terrain, and sitting areas, often are
maintained by the club’s grounds crew or gardeners. The tennis director should
work cooperatively with these individuals to help them maintain the tennis area’s
grass, flowers, plants, trees, benches, chairs, tables, trash cans, water fountains,
and windscreens.
Decorating and cleaning the pro shop usually falls to pro shop employees,
while repairs and other major pro shop maintenance are generally the responsibil
ity of the club’s maintenance staff.
Hard-surface tennis courts are relatively easy to maintain. They should be
dried with a squeegee if play is to resume immediately after it rains. If leaves,
debris, or dirt are on the courts after a storm, the courts should be swept or cleaned
with an air blower after the items have dried. As hard courts age, small cracks
Exhibit 5 Maintenance Activities for Synthetic-Clay Tennis Courts
Period Maintenance
Spring—Open Scrape off clumps, debris, and old clay material.
Add new material to the court surface.
Clean old tape lines or replace, if applicable.
Check sprinkler system for operation, if applicable.
Repair or replace windscreens.
Monthly Fill in low spots with clay material.
Apply calcium chloride during the hot season to retain moisture.
Weekly Roll courts two or three times per week to ensure proper hardness
and compaction.
Rake out divots.
Daily Ensure that courts receive the appropriate amount of water during hot
stretches; water at night and during the midday.
Sweep the tape lines or relime the court lines.
Roll the courts if needed.
Brush the courts.
Fall—Close Blow out the sprinklers if freeze conditions are possible.
Remove the tape lines if it is desirable to try to save the lines for
another year of use.
Source: United States Professional Tennis Association, Inc., The USPTA Guide to Country
Club Tennis Operations (Houston, Texas: USPTA, 1989), pp. 97–98.
begin to develop. Filling in these cracks and resurfacing the courts on an annual
basis will increase the life of the courts.
Soft-surface courts, such as those made of red clay or synthetic clay (Har-Tru,
Rubico, Fast-Dri, Teniko), are harder to maintain than hard-surface courts. Exhibit
5 lists periodic maintenance activities for synthetic-clay tennis courts. There are
very few soft-surface courts in the United States with grass or red clay surfaces; the
majority of soft-surface courts are synthetic clay. Most tennis players, especially
older players, prefer soft-surface courts over hard courts because they are easier
on the lower body; the feet slide or give on the soft surfaces much more than on
hard surfaces. In addition, the ball travels slower on soft surfaces, which helps
players return more shots.
Tennis Associations
The two largest U.S. tennis associations that assist clubs are the United States Pro-
fessional Tennis Association (USPTA) and the United States Tennis Association
(USTA). The Association of Tennis Professionals (ATP) is the association for the
nation’s top male professional tennis players; the Women’s Tennis Association
(WTA) is the corresponding association for female professional players. The ATP
has recently instituted an instructional program that prepares retiring tennis play-
ers to teach.
The USPTA is the primary association for tennis professionals who teach. It offers
a variety of services and programs, with the focus on educating tennis professionals
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through classes, conferences, seminars, and publications. The association also offers a
certification program to ensure that certified tennis professionals are educated on the
basics of running a successful tennis operation and are skilled players.
The USPTA offers three standard levels of certification—Professional 1 (the
highest rating), Professional 2, and Professional 3—based on certification test
scores. USTPA also has a Master’s Professional level whereby masters can test and
certify lower levels. The USPTA’s Master Professional certification is awarded to
tennis professionals with outstanding credentials. New USPTA members who are
working toward certification are designated as Associate Members.
The USTA is the governing body of tennis in the United States. This organi
zation develops and modifies most of the rules that govern U.S. tennis play and
tournaments. The USTA is a member of the International Tennis Federation, the
worldwide tennis governing board.
The Tennis Industry Association specializes in the merchandising of tennis
products and is an arm of the Sporting Goods Manufacturers Association. The
United States Professional Tennis Registry has goals similar to those of the USPTA
(education and certification of teaching tennis professionals).
Endnotes
1. Stephen J. Tharrett, Kyle J. McInnis, and James A. Petersen, eds., ACSM’s Health/Fit-
ness Facility Standards and Guidelines, Third Edition (Champaign, Ill.: Human Kinetics,
2006).
Key Terms
circuit—A group of progressive-resistance training machines that together work
all of the body’s major muscle groups.
clinic—Advanced instruction in a specific area of a sport, such as competitive
starts in swimming or competition strategy in tennis.
cost-plus program—A pro shop program in which club members pay a fee and
are then able to purchase pro shop merchandise at cost plus a fixed percentage
(typically ten percent).
exercise program—A program of recommended exercises and intensity levels,
developed for an individual by a trained fitness professional.
fitness assessment—An assessment of an individual’s overall level of fitness;
fitness assessments are often used by clubs to determine appropriate exercise pro
grams and intensity levels for members.
fitness center—The area of a club devoted to physical fitness, usually comprising
a fitness floor, an exercise classroom, sports areas, and spa areas.
flight—A group of competitors in a tournament; tournament participants are
divided into flights for scheduling purposes.
informed consent form—A form for club members that lists all of the risks associ
ated with a physical activity, advises members that their participation is voluntary,
and states that a member, by signing the form, assumes the risks identified.
ladder (pyramid)—An ongoing tennis, racquetball, squash, or other racquet-sport
competition among a group of club members in which the participants challenge
each other to matches in order to improve their standing within the group.
member-guest event—An organized athletic event at a club in which guests are
allowed to participate with members; such an event is often used by clubs to
recruit new members.
personal trainer—A fitness center staff member who provides club members with
one-on-one instruction, advice, and motivation—usually in cardiovascular or
weight-training exercises.
round-robin mixer—A club tournament, normally played in a short amount of
time (a day, weekend, or week), during which members play many opponents of
similar ability.
user fee—A fee charged to club members for certain fitness activities.
wellness program—An instructional program in a health-related area such as
nutrition or stress management.
Review Questions
1. What are the major areas of a typical club fitness center?
2. A club spa’s wet areas present what types of special risks/concerns?
3. What qualifications and characteristics should a fitness director possess? an
aquatics director? a tennis director?
4. What are the duties of a club’s fitness director? aquatics director? tennis direc-
tor?
5. What types of instructional programs might a club offer in fitness/exercise,
aquatics, and tennis?
6. What types of special events can a club host at its aquatics facilities?
7. What are some typical pool operation and maintenance issues?
8. What are some typical tennis programs offered at clubs?
9. How are a club’s tennis facilities maintained?
Additional Reading
American College of Sports Medicine. ACSM’s Guidelines for Exercise Testing and
Prescription, 7th ed. Philadelphia: Lippincott Williams & Wilkins, 2005.
American College of Sports Medicine. ACSM’s Health/Fitness Facility Standards
and Guidelines, 3d ed. Champaign, Ill.: Human Kinetics Publishers, 2006.
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American National Standards Institute/National Spa and Pool Institute. American

National Standard for Public Swimming Pools. Alexandria, Va.: ANSI/NSPA,
2003.
Mood, D., F. F. Musker, and J. E. Rink. Sports and Recreational Activities for Men
and Women, 13th ed. New York: McGraw-Hill, 2003.
National Swimming Pool Foundation. Certified Pool-Spa Operator Handbook. San
Antonio, Tex.: NSPF, 2006.
United States Professional Tennis Association, Inc. Hiring a Tennis Professional.
Houston, Tex.: USPTA, 2004.
United States Tennis Association. Coaching Tennis Successfully, 2d ed. Champaign,
Ill.: Human Kinetics Publishers, 2004.
YMCA of the USA. On the Guard II: The YMCA Lifeguard Manual, 4th ed. Cham
paign, Ill.: Human Kinetics Publishers, 2001.
———. YMCA Pool Operations Manual, 3d ed. Champaign, Ill.: Human Kinetics
Publishers, 2006.
Case Study
The Pleasantville Country Club has decided to add a fitness center, based on
numerous member requests, feedback on annual member surveys, and the rec
ommendation of the long-range planning committee. The club’s membership
has approved the addition of the fitness center and the financing of it through an
assessment over the next three years. The club’s board of directors, membership,
and management are excited about the addition of the fitness center.
The club’s aquatics committee would be responsible for managing the fitness
center. The committee chairperson has been the driving force behind the develop
ment of the plan to add the fitness center and has been instrumental in gaining
the approval of the board and the membership. This individual has been a club
member for ten years and a board member for four years; he has two more years
to serve on the board and has expressed an interest in running for board president
next year.
The chairperson has given a lot of credit for his ideas on the fitness center to
a friend of his who is an avid exerciser, a former star athlete in high school and
college, and a former semiprofessional baseball player. The friend has a degree in
business and is a salesperson at a local sporting-goods store. He has never worked
in a club or at a fitness center. The chairperson has indicated to the club’s general
manager that his friend would be an ideal candidate for the new fitness director
position at the club. The chairperson is aggressively promoting this idea to other
board members and the club’s staff.
Discussion Question
1. Should the club’s general manager hire the chairperson’s friend as the fitness
director for the club’s new fitness center? Why or why not?
Appendix A:
American College of Sports Medicine (ACSM)
Certifications
The American College of Sports Medicine was the first organization to certify
health fitness professionals. It is the largest sports medicine and exercise science
organization in the world, and continues to set the standards in the fitness indus-
try. All ACSM certifications are NCAA-accredited, and ACSM establishes the exer-
cise guidelines that all other certifications use for training and certification. ACSM
has certified more than 25,000 health fitness professionals in forty-four countries.
ACSM’s certification program includes the following:
•• Health fitness certifications: Group Exercise Instructor, Personal Trainer, and
Health Fitness Specialist.
•• Clinical certifications: Certified Clinical Exercise Specialist, and Registered
Clinical Exercise Physiologist.
•• Specialty certifications: ACSM/ACS Certified Cancer Exercise Trainer, ACSM/
NCPAD Certified Inclusive Fitness Trainer, and ACSM/NSPAPPH Certified
Physical Activity in Public Health Specialist.
More details on certification requirements can be found on ACSM’s website:
http://certification.acsm.org/get-certified.
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Appendix B:
What follows are sample job descriptions for an athletic director, health and fit-
ness director, health and fitness assistant, locker room manager, locker room atten-
dant, swimming pool manager, swimming instructor, swim team coach, lifeguard,
tennis professional, assistant tennis professional, tennis salesperson, and tennis
maintenance person. These job descriptions are courtesy of Joe Perdue and Jack
Ninemeier, Job Descriptions for the Private Club Industry, Seventh Edition.
Athletic Director
Position
Athletic Director
Related Titles: Director of Athletics
Supervises: Swimming Pool Manager, Fitness and Spa Assistant Director, Bowling Man-
ager, and Locker Room Manager
•• Bachelor’s degree in Physical Education, Sports, or Recreational Management or
Sports Marketing preferred.
•• Minimum three years of private club experience as spa and/or health and fitness
manager.
•• Proficient in large recreation operation including budgeting, planning, and gover-
nance.
•• Comprehensive knowledge of spa treatments and services.
•• Familiarity with fitness facility operations.
•• Able to conduct fitness assessments.
Manages all club athletic facilities and management-level personnel. Promotes an excep-
tional club member sports experience and provides creative services and programs for all
members and guests.
Job Tasks/Duties
•• Responsible for fitness testing and health screening to properly assess the health
status of guests.
•• Initiates community-wide presentations about fitness, wellness and health-related
topics.
•• Accounts for member charges, locker rental records, payroll information, maintenance
and engineering work.
•• Selects, trains, supervises, schedules, and evaluates management staff in the athletic
department.
•• Oversees the retail sales operation of the Athletic Department.
•• Coordinates the purchase of departmental supplies and merchandise for resale.
•• Oversees facilities and equipment to ensure safety, cleanliness and good working
order.
•• Ensures that all applicable daily reports are completed correctly, and approves/
reviews outgoing communications and contracts when necessary.
•• Inspects locker areas and maintains supply of towels.
•• Contributes articles for club’s newsletter and website.
•• Assists departmental management staff in implementing club policies, goals, operat-
ing procedures and standards.
•• Oversees all operational policies, procedures, controls and fee structures to ensure
the safekeeping of assets, inventory and resources.
•• Attends management meetings; conducts staff meetings.
•• Plans all programs according to monthly and yearly calendar.
•• Pursues continuous development and education for himself or herself and for subordi-
nates to enhance image, quality and offerings of the department.
•• Prepares and monitors operating and capital budgets; takes corrective action as nec-
essary to help assure that budget goals are attained.
•• Completes appropriate assignments made by the General Manager.
•• Membership in or certification from the National Association of Club Athletic Directors
(NACAD).
•• Membership in The American College of Sports Medicine (ACSM) or the National
Academy of Sports Medicine (NASM) and/or National Strength and Conditioning
Association (NSCA) desirable but not mandatory.
•• Ability to bend, stretch, twist or reach, walk, stand, stoop, climb stairs, balance, and/
or crouch.
•• Physical exertion over long periods of time.
•• Work in hot and humid environment.
•• Push, pull, and lift 50 pounds.
Heath and Fitness Director

Position
Health and Fitness Director
Related Titles
Health and Fitness Professional; Spa and Fitness Director, Health, Nutrition and Fitness
Director
Reports to: Fitness and Spa Assistant Director
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Supervises: Health and Fitness Assistant, Group Fitness Instructor, Personal Trainer and
Fitness Center Attendant
•• Bachelor’s and/or Master’s degree in Exercise Physiology, Exercise Science, or
related discipline.
•• Five years’ experience in a health and fitness facility.
•• Two years of fitness facility or program management experience.
•• Able to conduct fitness assessments.
•• Competence in fitness design and implementation.
•• Comprehensive knowledge of fitness and exercise principles.
•• Able to conduct classes or instruction in cardiovascular exercises, resistance training
and the mind-body connection.
•• Knowledge of first aid, performing CPR, using an AED, and blood-borne pathogens.
•• Knowledge of major health factors and weight-reduction strategies.
Develops, organizes, and maintains an athletic, fitness, and spa program for members
in an effective, efficient, and professional manner. Advises members on issues related to
fitness using knowledge of fitness, exercise principles, and major health risk factors. Man-
ages all fitness staff and facilities as well as the merchandising and sale of boutique items.
Keeps current on fitness industry trends. Promotes use of the facilities to members and
their families.
Job Tasks/Duties
•• Teaches fitness classes and performs personal training, as needed.
•• Performs fitness evaluations for the membership.
•• Conducts and organizes member surveys for the department.
•• Monitors and reports on classes and programs; makes recommendations to meet
changing needs.
•• Responsible for correct and accurate billing procedures according to club policies and
timelines.
•• Provides appropriate reports regarding payroll, scheduling, job changes, shift reports,
overtime authorizations, and event costing.
•• Receives and handles complaints regarding the Fitness Department and advises the
Athletic Director about appropriate action taken.
•• Informs and follows-through with the Housekeeping and Engineering departments
about problems or deficiencies as they arise; ensures that the fitness areas are clean
and functioning properly.
•• Attends and actively participates in monthly management staff meetings.
•• Attends Athletic Committee meetings when requested, and provides necessary assis-
tance and guidance.
•• Interacts with other departments for improving member services.
•• Trains all staff to work according to established safety procedures; makes recom-
mendations to improve the safety of the work environment for both employees and
members.
•• Provides training and professional development opportunities for fitness staff and
ensures that staff maintains all recommended industry certifications.
•• Maintains an inventory of boutique merchandise according to club procedures; over-
sees sale of products.
•• Writes regular article in the club’s newsletter according to the directives of the Athletic
and Newsletter committees.
•• Maintains bulletin boards with appropriate information.
•• Promotes and markets the Fitness Department and its services to the membership.
•• Implements family and children’s fitness programs.
•• Suggests new athletic equipment and provides information and specifications regard-
ing purchase.
•• Enforces club rules and policies, especially those pertaining to safety and conduct in
the athletic areas.
•• Manages locker rentals and assures accuracy, fairness and efficiency in the rental
process.
•• Completes other appropriate duties assigned by the Athletic Director.
•• Memberships and/or certifications from the American College of Sports Medicine
(ACSM), and/or the National Strength and Conditioning Association (NSCA), and/or
the National Academy of Sports Medicine (NASM).
or crouch.
•• Regular fitness conditioning and swimming.
•• Must often work in a wet, humid and noisy environment.
Health and Fitness Assistant

Position
Fitness Center Attendant
Related Titles: Fitness Attendant
Reports to: Health and Fitness Manager
•• High School Graduate or GED equivalent.
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•• Develops and maintains awareness of occupational hazards and safety precautions;
skilled in following safety practices and recognizing hazards.
•• Ability to clean and maintain the fitness center to required cleanliness standards.
Ensures that the Fitness Center is an inviting place that is well-stocked, clean, and orga-
nized for members’ enjoyment as well as the overall operation of the facility.
Job Tasks/Duties
•• Cleans the fitness center area and wipes down fitness equipment at least once daily
or as often as needed.
•• Greets users of the fitness center; has them sign in; answers telephones, and main-
tain files of program cards, testing and other information.
•• Records member information for seminars and presentations.
•• Assists the Health and Fitness Manager in initial and continued development of ser-
vices within the Athletic Department.
•• Attends all training sessions and regular staff meetings; researches assigned projects
and topics; provides continuing education services to other staff members.
•• Keeps conditioning room neat and clean.
•• Cleans bathrooms when immediate attention is required.
•• Monitors attendance and bills attendees.
•• Sets-up and monitors exercise equipment.
•• Promotes private lessons and massage/spa services.
•• Assists with special events in other club departments when necessary.
•• Completes other appropriate assignments made by the Health and Fitness Manager.
Licenses and/or Special Requirements
•• Must be 18 years of age or older.
•• CPR, AED and First Aid certification preferred or will obtain within 90 days of employ-
ment.
•• Locker rooms are gender-specific.
environment, which is typical of this position.
•• Frequent repetitive motions (e.g., shoe shining).
•• The environment of the fitness center is warm and humid.
•• Able to lift, pull, or push 30 pounds.
Locker Room Manager

Position
Locker Room Manager
Related Titles: None
Reports to: Athletic Director
Supervises: Locker Room Attendant
•• High School diploma and/or degree from a two-year community college.
•• On-going education from the Locker Room Managers Association.
•• Three years of experience at a high-end private golf and /or country club as a Locker
Room Manager.
•• Ability to manage all aspects of the locker room including supervision of locker room
attendants.
Manages the service of members and guests in the locker rooms. Responsible for caring
for member footwear, amenities in the club’s locker room wet areas, and tracking locker
rentals and cancellations. Supervises locker room staff. Maintains order and cleanliness.
Greets members and guests and ensures that member satisfaction standards are consis-
tently attained.
Job Tasks/Duties
•• Performs duties of locker room staff as needed.
•• Ensures the safety and security of all members’ and guests’ personal property.
•• Issues lockers, keys, towels, etc. to members and guests as needed.
•• Maintains a list of occupied lockers; provides a billing list to the accounting office.
•• Maintains an inventory of supplies including shampoo, body wash, shaving razors,
mouthwash, and linens.
•• Interacts with purchasing department to purchase locker-room linens and supplies as
needed.
•• Receives and greets members and guests.
•• Inspects locker area to ensure proper appearance, maintenance, cleanliness and
safety.
•• Resolves member and guest complaints.
•• Prepares and presents bills to members
•• Assures that tasks are assigned and completed as required.
•• Selects, trains, supervises schedules, and evaluates locker room staff.
•• Enforces established rules, regulations and policies.
•• Assures that all safety, accident and emergency policies and procedures are in place
and consistently followed.
•• Assigns lockers for guests during tournaments.
•• Assists in the annual planning and budgeting process; operates within budget limita-
tions.
•• Makes recommendations about capital budget requirements.
714 Chapter 17
•• Completes other appropriate assignments made by the Athletic Director.
•• Certification from the Locker Room Managers Association.
•• Locker rooms are gender specific.
Locker Room Attendant

Position
Locker Room Attendant
Reports to: Locker Room Manager
•• High school education or GED preferred.
•• Able to maintain cleanliness and orderliness in locker room.
•• Experience in cleaning, caring for, and restoring athletic shoes and golf shoes.
Attends to locker room needs of club members and guests.
Job Tasks/Duties
•• Washes restroom floor; wipes mirrors and walls; cleans basins, lavatories, and show-
ers.
•• Restocks supplies including tissue, toilet paper, towels, soap, shampoo, razors, and
after shave lotion.
•• Performs personal services including shining shoes, brushing clothes, and adjusting
golf shoe spikes.
•• Provides for the safety and security of all members’ and guests’ personal property.
•• Maintains inventory of supplies.
•• Transports towels to and from laundry area.
•• Issues lockers, keys, towels, etc., to members and guests as needed.
•• Maintains a list of occupied lockers; provides a billing list to the Accounting Depart-
ment.
•• Serves beverages and food to members and guests.
•• Cleans and empties garbage cans and baskets.
•• Takes and delivers phone messages for members and guests.
•• Changes light bulbs.
•• Cleans and maintains hot tub, sauna area, and other special facilities and equipment
in locker room.
•• Maintains coffee and beverages and supplies; makes coffee; cleans beverage area
as needed.
•• Completes other assignments made by the Locker Room Manager.
•• Locker rooms are gender-specific.
•• Able to lift, pull, or push 30 pounds.
Swimming Pool Manager

Position
Swimming Pool Manager
Related Titles
Swimming Pool Director; Swim Center Manager; Director of Aquatics; Aquatics Director;
Director of Youth and Aquatics
Reports to: Athletic Director
Supervises: Swimming Instructor; Lifeguard; Swim Team Coach
•• Bachelor’s degree in Education, Physical Education, Recreation Management, or
Health Sciences.
•• Maintains all proper certifications and training for oneself and the pool staff.
•• Three years of experience as an Assistant Pool Manager at a club of comparable size
and stature.
•• Competitive swimming experience as either a coach or athlete preferred but not
essential.
•• Lifeguard training and experience teaching swim lesson required.
•• Private club experience preferred.
•• Broad knowledge and experience in pool chemistry, operation, and management.
716 Chapter 17
•• Monitors and coordinates pool safety programs and risk management.
•• Employs only those methods and teaching techniques outlined and approved by the
American Red Cross.
•• Thoroughly understands specific state and local laws and statutes regarding pool
safety and inspections.
•• Knowledge of and ability to perform personal role in emergency situations.
Responsible for the entire pool operation, including the safe and effective use of chemi-
cals, swimming instruction, the club’s swim team, and the summer camp operation. Super-
vises safe, clean, well-maintained and appealing club swimming facilities.
Job Tasks/Duties
•• Hires, trains, supervises and evaluates staff.
•• Formulates weekly work schedules and rotation schedules for all pool employees.
•• Purchases pool chemicals.
•• Maintains proper chemical balance in pools and maintains mechanical equipment in
coordination with the club’s maintenance department.
•• Maintains correct payroll records.
•• Registers members at pool and charges for all guests, lessons, etc.
•• Provides necessary orientation and training for pool staff.
•• Enforces club rules of safety and conduct.
•• Assists in rendering First Aid according to the standards established by the American
Red Cross and American Heart Association.
•• Plans and directs special events.
•• Writes correspondence to club members about swim lesson dates, class times and
fees; writes post-season letter to members to encourage the continuation of building
their children’s aquatic skills through lessons.
•• Arranges a program of and schedule for private and group swim and diving lessons.
•• Represents the club in activities as required.
•• Develops an annual operating and staffing budget to be approved by the Athletic Direc-
tor; takes corrective actions as necessary to assure that budget goals are attained.
•• Orders and sells swim suits, suntan oil, sunglasses and other pool accessories; keeps
accurate accounting records of sales.
•• Maintains and keeps all necessary records concerning pool attendance, pool chemi-
cals, accident reports, problem-member reports, lifeguard and instructor schedules, etc.
•• Develops and implements pool safety program, and schedules staff to provide
adequate protection for members and their guests.
•• Assists in pool opening and closing at the beginning and end of season.
•• Interacts with outside contractors to maintain and upgrade pool areas.
•• Provides aquatics-related information for club newsletter.
•• Manages pool area lost and found articles.
•• Manages pool area, including lockers and changing rooms for cleanliness.
•• Oversees pool snack bar.
•• Maintains presence during special pool events.
•• Coaches swim and dive teams.
•• Keeps attendance records of members and children attending lessons.
•• Reads line-ups during swim meets.
•• Organizes bus transportation to and from swim lessons.
•• Helps coordinate swim camp banquet and awards program.
•• Operates pool and surrounding area in compliance with OSHA requirements; main-
tains all necessary MSDSs.
•• Attends and participates in Swimming Pool Committee meetings.
•• Performs other appropriate tasks assigned by the Athletic Director.
•• Must have current Red Cross Lifeguard Certificate.
•• Red Cross progressive Swimming Instructor Certificate Desirable.
•• American Red Cross Basic First Aid required, training on AED units, and possession
of a current Red Cross CPR card.
•• Pool Operator certification (if required by state or local jurisdiction).
•• Certified Pool/Spa Operator (CPO) offered by the National Swimming Pool Founda-
tion desirable.
•• The Aquatic Facility Operator (AFO) offered by the National Recreation and Park
Association.
•• Lifeguard certification offered by the American Red Cross strongly recommended.
•• Working conditions are often, hot, humid slippery and wet.
•• Able to work in a busy, noisy environment.
•• Able to tolerate the smell of chlorine and frequent exposure to cleaning agents.
Swimming Instructor
Position
Swimming Instructor
Reports to: Swimming Pool Manager
Conducts swimming classes and individual swimming lessons in a safe and responsible
manner.
718 Chapter 17
•• Some High School required.
•• Competitive swimming experience as coach or athlete preferred.
•• Lifeguard training and some experience teaching swim lessons required.
•• Adequate knowledge of and experience in pool chemistry, operation, and manage-
ment.
•• Training in rescue and surveillance techniques and blood-borne pathogens.
•• Participates in pool safety programs and risk management.
American Red Cross.
•• Has knowledge of specific state and local laws and statutes regarding pool safety and
inspections.
Job Tasks/Duties
•• Reports all complaints, emergencies, hazards or faulty equipment to the Swimming
Pool Manager.
•• Maintains all necessary class records as determined by the Swimming Pool Manager.
Red Cross.
•• Assists in rendering First Aid according to the standards established by the American
Red Cross and American Heart Association.
•• Serves as a lifeguard when instructed by the Swimming Pool Manager.
•• Reads line-ups during swimming meets.
•• Assists Swimming Pool Manager in writing seasonal swim letter to members about
lesson dates, class times and costs.
•• Maintains attendance records of members and children attending lessons.
•• Charges members for all lessons.
•• Maintains a courteous, polite and helpful relationship with all members and guests.
•• Performs other appropriate tasks assigned by the Swimming Pool Manager.
•• Red Cross progressive Swimming Instructor Certificate Desirable.
•• Working conditions are often, hot, humid, slippery, and wet.
Swim Team Coach

Position
Swim Team Coach
Related Titles: Pool Coach; Swim Team Coordinator (Coach)
•• Associate’s-level college degree in Physical Education, Sports Management, or
related major.
•• Experience as a competitive swimmer on the High School and College levels.
•• Experience as an Assistant Swim and Dive Team Coach.
•• Ability to plan, organize, schedule, and manage all phases of the club’s swim team
program.
•• Knowledge of and ability to perform all required duties in emergency situations.
Coachs club’s swim and dive team. Schedules and coordinates swim meets.
Job Tasks/Duties
•• Schedules and attends practice sessions for the swim team.
•• Organizes all aspects of swim meets including scheduling individual race participants,
recording and posting start times, and distributing race ribbons.
•• Attends and participates in the club’s coaches’ meetings.
•• Maintains presence during swim team events.
•• Maintains swim team and event equipment.
•• Organizes swim meet volunteers.
•• Performs other tasks as required by Swimming Pool Manager.
•• USA Swimming coach in good standing.
•• American Swimming Coaches Association (ASCA) Level 2 or above certification.
•• American Red Cross Basic First Aid required, training on AED units and possession
•• Able to tolerate the smell of chlorine.
720 Chapter 17
•• Ability to project voice and articulate instructions to swimmers.
Lifeguard
Position
Lifeguard
Related Titles: Pool Attendant; Head Lifeguard
•• Some High School required.
•• Ability to swim laps and dive to the bottom of the pool.
Job Knowledge and Experience
•• Adequate knowledge of and training in pool chemistry, rescue, and surveillance tech-
niques, CPR/AED, and blood-borne pathogens.
•• Participates in pool safety programs and risk management.
American Red Cross.
Implements all water safety policies and procedures. Supervises members and guests in
and around the swimming pool.
Job Tasks/Duties
•• Vacuums pool bottom; empties automatic skimmer; skims bugs and other debris from
surface to prepare pool for daily use.
•• Supervises and observes swimmers at all times to ensure their safety.
•• Administers care to swimmers’ minor injuries such as small cuts and bruises.
•• Maintains amenities in and cleanliness of changing rooms, bathrooms and showers.
•• Assists in organizing clinics and private swimming lessons for members as directed
by the Swimming Pool Manager or instructors.
•• Enforces rules of conduct at the pool.
•• Checks first aid supplies and reports needed items.
•• Organizes and monitors pool games at all times; suggests pool-side games.
•• Places rescue tube and ring buoy on the lifeguard chair in the morning; returns these
and all swimming aids and pool toys to the lifeguard locker when the pool closes.
•• Straightens the pool and cabana areas at the end of the day.
•• Maintains all necessary records determined by the Swimming Pool Manager.
•• Attends all meetings as directed by the Swimming Pool Manager.
•• Implements all pool safety equipment.
•• Performs required pool pre-opening duties.
•• Informs swimming pool manager about unresolved member or guest disruptions that
could cause a safety problem.
•• Performs other appropriate tasks assigned by the Swimming Pool Manager.
or crouch.
Tennis Professional
Position
Tennis Professional
Related Titles
Tennis Director; Director of Tennis; Tennis Pro; Head (Tennis) Racquets Professional
Supervises: Assistant Tennis Professional, Tennis Maintenance Person
•• Undergraduate major in Physical Education or Sports Management desirable.
•• Collegiate team experience desirable, preferably with a 4.5 or above rating.
•• Two to three year competitive playing experience and/or tennis supervisory experi-
ence.
•• Experience running junior development programs.
•• Knowledge of court maintenance.
•• At least four years of experience in retail sales of sporting goods.
•• Able to promote and teach private and group lessons to juniors and adults on indoor
and outdoor with soft or hard surfaces.
•• Plays or represents the club in Pro-Ams.
722 Chapter 17
•• Ability to re-string, re-grip and repair rackets.
Organizes and directs all club tennis activities, events, exhibitions, tournaments and lessons.
Job Tasks/Duties
•• Plans and directs instructional programs.
•• Provides lessons and clinics for members and guests relating to the techniques and
strategies of tennis.
•• Organizes, administers, and officiates at tournaments, exhibitions, and inter- and
intra-club social events.
•• Administers and enforces club tennis policies and procedures regarding play on club
courts.
•• Strings rackets and performs other light equipment repairs.
•• Purchases and maintains adequate beverage inventory.
•• Coordinates maintenance, repair, and cleaning of courts with Grounds and Mainte-
nance departments.
•• Writes and edits tennis-related news for the club’s newsletter.
•• Selects, trains, supervises, schedules, and evaluates the Assistant Tennis Profes-
sional and other tennis staff.
•• Manages the tennis shop.
•• Establishes and implements an accurate inventory control system and reports results
accordingly.
•• Transfers all charges from the tennis shop to the accounting department.
•• Develops the budget for the tennis profit center; takes corrective action as necessary
to help assure that budget goals are met.
•• Ensures that all club members and guests receive courteous, promp,t and profes-
sional attention to all their tennis needs.
•• Markets tennis facilities to members and guests.
•• Develops a detailed annual calendar of tennis activities and applicable promotion
campaigns during the tennis season.
•• Maintains a close working relationship with other club professionals.
•• Maintains accurate records of all lessons and clinics given; provides monthly written
reports.
•• Inspects and maintains all physical areas constantly.
•• Participates on all committees related to the tennis operation.
•• Represents the club in area professional tennis activities and at state or national ten-
nis events with approval from the club.
•• Assists Food and Beverage Director, Executive Chef, Banquet and Catering Manager
to coordinate food and beverage service support for tennis events.
•• Ensures that all employees consistently comply with club’s employee manual and with
all applicable federal and state employment laws.
•• Is visibly present on the courts during peak periods of play.
•• Attends all staff and management meetings.
•• Completes other appropriate assignments made by the General Manager.
•• Certification with either U.S. Professional Tennis Association (USPTA) or Professional
Tennis Registry (PTR).
•• USPTA required P1 rating.
•• Player ability equal to NCAA Division 1 level.
•• Ability to control natural swing speed during instruction or matches with inexperienced
players.
•• Sufficient stamina to tolerate hot and humid outdoor weather for several consecutive
hours.
•• Continuous standing, walking, running, bending, stooping and repetitive actions.
•• Frequent use of light machinery and hand-held tools.
•• Frequent lifting and moving of objects.
Assistant Tennis Professional

Position
Assistant Tennis Professional
Related Titles: Tennis Coach; Assistant Tennis Pro; Racquets Assistant
Reports to: Tennis Professional
Supervises: Tennis Shop Salesperson
Education and Experience
•• College degree preferred but not required.
•• Undergraduate major in Physical Education or Sports Management desirable.
•• Collegiate team experience desirable, preferably with a 4.5 or above rating.
•• Two to three year competitive playing experience and/or tennis supervisory experience.
•• Experience running junior development programs.
•• Knowledge of court maintenance.
•• At least two years of experience in retail sales of sporting goods.
•• Able to promote and teach private and group lessons to juniors and adults on indoor
and outdoor with soft or hard surfaces.
•• Plays or represents the club in Pro-Ams.
•• Ability to re-string, re-grip and repair rackets.
Assist Tennis Professional in management of all facilities and activities related to tennis.
Job Tasks/Duties
•• Provides group and individual tennis lessons as assigned by Tennis Professional.
•• Promotes and coordinates adult in-house leagues and tennis socials.
724 Chapter 17
•• Communicates with Head Tennis Pro to schedule and publicize club tennis events.
•• Assists with special tennis events and tournaments.
•• Purchases trophies for special events.
•• Records court reservations and lesson appointments.
•• Answers phones in the Tennis Shop, books courts and lessons, and invoices mem-
bers for purchases.
•• Supervises other tennis staff including Tennis Shop salesperson.
•• Supervises adult mixers and events.
•• Occasionally writes tennis articles for the club newsletter and website.
•• Manages Tennis Shop in Tennis Professional’s absence.
•• Helps keep tennis facility clean and in proper order.
•• Manages inventory of Tennis Shop; interacts with purchase personnel to acquire
merchandise for resale.
•• Assists Tennis Professional, and completes other appropriate tasks assigned by the
Tennis Professional.
•• Certification with either U.S. Professional Tennis Association (USPTA) or Professional
Tennis Registry (PTR).
•• USPTA required P1 rating.
•• Player ability equal to NCAA Division 1 level.
•• Ability to control natural swing speed during instruction or matches with inexperienced
players.
•• Sufficient stamina to tolerate hot and humid outdoor weather for several consecutive
hours.
•• Continuous standing, walking, running, bending, stooping and repetitive actions.
Tennis Salesperson
Position
Tennis Shop Salesperson
Related Titles: Tennis Shop Sales Clerk (Attendant); Tennis Shop Assistant
Reports to: Assistant Tennis Professional
•• High School diploma or GED equivalent required.
•• Background in retail, sporting goods preferred.
•• Familiarity with POS software.
•• Able to operate a point-of-sale (POS) system.
•• Outstanding customer service skills.
•• Enthusiastically promote the game of tennis.
Sells tennis merchandise in the Tennis Shop. Maintains the Tennis Shop and sells tennis
court time.
Job Tasks/Duties
•• Supplies towels, cups and ice to members and guests.
•• Records all charge tickets.
•• Charges guest fees.
•• Responsible for demonstrator tennis rackets loaned to members and their guests.
•• Builds creative and appealing displays and rotates merchandise periodically.
•• Restocks merchandise when necessary.
•• Inventories and prices in-coming merchandise.
•• Ensures that tennis accessories are properly inventoried and maintained.
•• Contacts vendors regarding defective merchandise and warranty replacements.
•• Takes and records court reservations and assists in finding cooperative partners for
players.
•• Updates sign-up sheets for court reservations.
•• Informs members about club programs and tournaments.
•• Directs members and guests to their courts.
•• Promotes and sells Tennis Shop merchandise.
•• Assists members and guests with Tennis Shop merchandise selections and purchases.
•• Fills special orders for members.
•• Responsible for generating monthly reports.
•• Empties trash on each court and cleans courts.
•• Maintains Tennis Shop and keeps storage area tidy.
•• Vacuums and dusts tennis shop daily.
•• Takes towels to and from laundry area.
•• Reports any complaints, feedback, or concerns from membership to Assistant Tennis
Professional.
•• Completes other appropriate assignments made by the Assistant Tennis Professional.
726 Chapter 17
Tennis Maintenance Person

Position
Tennis Maintenance Person
Related Titles: Tennis Court Laborer; Court Attendant; Court Superintendent; Tennis
Center Maintenance Coordinator
Reports to: Tennis Professional
Supervises: No supervisory duties included in this position
Classification: Non-Exempt
•• High school diploma preferred.
•• Requires at least two years of experience performing custodial or maintenance work
in a club, hotel, resort, or recreational center setting.
•• Familiarity with tennis court surface materials, cleaning agents, and solvents.
•• Work in compliance of OSHA regulations (specifically Section 28) and club’s health
and safety policies and procedures. Handle hazardous substances according to the
WHMIS regulations.
•• Familiarity with the game and rules of tennis an asset.
Performs daily cleaning and maintenance of courts and areas adjacent to courts. Main-
tains and repairs tennis maintenance machines and equipment.
Job Tasks/Duties
•• Prepares tennis facilities for members every morning and afternoon using the facility
checklist.
•• Waters, rolls, drags surface, and sweeps lines of clay courts.
•• Blows debris and dust from surface of hard courts.
•• Builds-up low spots, shaves high spots, dusts, (plugs or feathers material) on all clay
courts.
•• Keeps court tapes, nets, fences, and gates in good condition.
•• Applies calcium chloride on clay courts.
•• Keeps algae and moss from forming through chemical and manual agitation.
•• Blows sidewalks; empties trash from court, and facility receptacles.
•• Maintains court coolers, ice chest, and tennis shoe cleaners.
•• Cleans Tennis Shop windows.
•• Blows and cleans terrace areas; puts chairs in neat order and empties ashtrays.
•• Replenishes supplies such as ice, towels and cups.
•• Trims grass at court edges and prevents weed growth at court edges.
•• Cleans court drainage gutters, drains, and catch basins.
•• Installs, removes and repairs court wind screen and keeps them neat and tight on the
fences.
•• Keeps desk personnel informed as to court conditions.
•• Performs any additional tasks needed to keep tennis courts and surrounding areas in
good order.
•• Operates roller, court sweeps, blower, and other equipment needed to maintain
courts.
•• Orders and tracks all supplies and equipment needed to maintain tennis facility.
•• Tunes, changes oil in, greases and fuels maintenance machines and equipment.
•• Repairs machines and replaces defective or worn parts of all maintenance machines.
•• Helps obtain quotes for equipment needs and projects.
•• Arranges for any special machine maintenance or repair that requires outside
resources.
•• Orders and picks up maintenance machine parts and fuel.
•• Delivers machines to repair shops for overhauls and retrieves machines when ready.
•• Performs up-keep of all interior and outdoor lighting for tennis courts, changing all
lights within reach by hand or by ladder.
•• Ensures proper quantity and quality of towels at all times and takes dirty towels to the
laundry.
•• Orders and picks up facility supplies such as ice, towels and cups.
•• Performs other appropriate tasks assigned by the Tennis Professional.
•• Continuous standing, walking, bending, lifting, pulling, pushing and squatting.
Index
A Assets, 448, 449–450 Budget maximization strategy,

Assistant 169
À la carte menu, 391 aquatics director, 691, 692 Budgeting, 170–171, 469–479
Absentee membership, 13 fitness directors, 682 Building
Accounts receivable turnover, general manager, 25, maintenance, 531–532
464 39–41 projects, 539–548
ACSM’s Health/Fitness Facility golf course Bullitt, John C., 3
Standards and Guidelines, 676 superintendent, Bunkers, 638–639
Action plans, 172 628–629 Burning platform, 158
Active golf professional, 607 Burns, James, 82
listening, 206–208 tennis professionals, 700 Business communication, 192
voice, 212 Athletic Business Management
Activity ratios, 463, 465–466 clubs, 10 Institute, 66–70, 359, 382
Ad hoc committee, 18 committee, 21 Buy classes, 241–242
ADA Amendments Act of 2008, Attitude girls, 568 Buying centers, 240–241
317 Audubon Cooperative Bylaws, 20, 53–55
Adragogy, 378 Sanctuary Program, 654–655
Adult learning, 378–379 Average food service check,
Advertising, 248 409, 467 C
Age Discrimination in
Employment Act of 1967, 313 Caddie
Alternative ranking, 335 B master, 597
American College of Sports programs, 597–598
Medicine, 676, 683, 707 Baby boomers, 272 Capital assessment drives, 477
American Hotel & Lodging Back-of-the-house, 397 Capital
Educational Institute, 71 Bag room, 589, 608 budgets, 170, 469,
American Management Balance sheet. See Statement of 473–478, 538
Association, 71 financial position projects, 476–478
American Society of Banquet Capital City Club, 356
Composers, Authors and facilities, 396 Cardiovascular fitness areas,
Publishers, 574 manager, 26 677–678
Americans with Disabilities software, 497 Caricaturists, 568
Act, 316–318 Bar areas, 396 Cash
Appeal mechanisms (employee Behaviorally anchored rating budget, 469, 478–479
discipline), 340–341 scale, 336, 337 flows from non-operating
Application Bench setting, 639 activities, 462
blanks, 322–324 Bermudagrass, 637 flows from operating
service provider contract, Bid bonds, 547 activities, 460–461
514 Blake, Robert, 86 Casual dining rooms, 396
software, 491–492 Blanchard, Kenneth, 87 Catering
Aquatics Blanket license (music), 575 facilities, 396
director, 25, 691, 692, 693 BMI, 574 software, 497
operations, 688–697 Board of directors, 16–17, 43, Central processing units, 490
Armchair leadership theories, 44–53, 169–170, 468–469, 472 Central-tendency error, 333
84–85 Body language, 208–210 Certified Club Manager, 382
Articles of incorporation, 53, 55 Bookmarking, 516–517 Chait, Richard, 64
ASCAP, 574 Briar’s Creek Golf Club, 356 City clubs, 5, 8
Asset turnover ratio, 466 Broadcast Music, Inc., 574 Clergy membership, 13
729
730 Index
Closeout, 548 Club Corporation of America, Cool season grasses, 635–637
Club 10 Core aeration, 644
accounting software, Club Managers Association Corporate clubs, 10–11
494–497 of America, 66–71, 359–360, Cost of
committees, 18–19, 50, 382–383 food sold percentage,
471, 561, 675–676 Club Supervisors University, 407, 468
evaluations, 118–120 383 labor percentage, 468
managers Club Spa and Fitness sports activities, 456
budgets and, 458 Association, 685 Cost-plus programs, 588
communication ClubCorp, 10 Country Club, Brookline,
and, 191–225 Club-demo programs, 588–589 Massachusetts, 5
delegation and, Clubhouse operating income Country clubs, 6–8
122–123 (loss), 456 Craft guilds, 5
employee discipline ClubNet, 517 Credit reference checks, 328
and, 338–345 Clubs. See Private clubs Creeping bentgrass, 636
employee job CMAA chapters, 70 Critical incidents, 336–338
interviews and, CMAA’s Assistant Manager’s Current
327–328 Conference, 70 liabilities, 450
employee references CMAA’s Leadership/ ratio, 464
and, 328 Legislative Conference, 70 Cutting height, 639
financial ratios and, Coercive power, 94
464 Coffeehouses, 5
formal presentations Commercial Club, 5 D
and, 200–202 Commercial food service
leadership styles of, operations, 392–393 Dashboards, 183–185
130–131 Commissioning, 547 Data collection methods, 366
lifelong learning Communication Database software, 494
and, 357–358 barriers, 196–197 Databases, 291–292
listening skills and, myths, 192–195 Debt-equity ratio, 465
202–208 technology, 221–223 Dedman, Robert H., 10
marketing research Community Associations Department
and, 259–260 Institute, 11 evaluations, 118–120
meetings and, Compaction, 643 managers, 25–26
123–125 Competitive analysis, 150–151 Departmental
member relations Computer expenses, 407
and, 311 hardware, 489–491 income (loss), 407–409
negotiating and, system interfacing, Depreciation, 458–460
224–225, 512–513 505–508 Design build method, 546
paperwork and, system upgrades, 508–514 Design process (building
125–126 Conclusive research, 261 projects), 540–543
personal leadership Confidential interviews, 143 Desktop publishing, 492–493
and, 126–135 Construction Developer-owned clubs, 11
professional manager method, 546 Devil’s horns, 326
development of, project management, Differentiation, 157
380–383 544–545 Diner profiles, 413
speaking skills and, Consumer trends, 411–412 Direct mail, 246
198–202 Consumer-buyer behavior, 236 Discharge (employee), 341–345
technology and, 487 Consumer-purchase-decision Discipline, 338–345
time management process, 236–239 Dispatchers, 502
and, 120–126 Contingency theory, 90–92 Diversification growth strategy,
topping out and, 135 Contract error, 326 234
writing skills and, Contrast effect, 198 Downward communication,
126, 211–218 Control points (food and 192, 193
members. See Members beverage), 403 Drug Free Workplace Act of
professionals, 24–26 Controller, 25 1988, 316
surveys, 147–151 Convenience goods, 242–243 DuPont Country Club, 11
Index 731
E Enhancing Financial
differentiation strategy, documents, 56
Educational Foundation of 166 ratios, 463–469, 470
the National Restaurant superiority strategy, reporting software, 498
Association, 71 166–167 review, 143
Effective cutting height, 639 Entertainment statements, 447–480
Effluent water, 650–651 committee, 21, 561 Fire eaters, 569
Elasticity of demand, 256 contracts, 573–574 First-impression error, 326
Electronic data processing, Environmental Protection Fitness
488–489 Agency, 533 centers, 676–681
Elevator test, 177 Environmental scan, 144 directors, 681–682, 684
E-mail, 126, 217–218, 514–516 Equal Pay Act of 1963, 313 instructors, 682
Emotional pricing, 258–259 Equipment operations, 675–684
Employee Polygraph Protection mechanics, 629–630 programs, 683
Act of 1988, 315–316 operators, 630 Fixed charges, 455, 456–457
Employees Equity Flair bartenders, 569
absenteeism and, 361 clubs, 4–6, 16, 395 Flights (tennis), 698
initiation fees, 281 Floor leaders, 682
assets to club, 451
Esteem needs, 106 Focus groups, 146–147
changing values of, 360
Event Focused
compensation of, 406
bands, 569 differentiation, 157
dining facilities for, 397
management software, low-cost leadership, 157
discharge of, 341–345
Follower theory, 84
discipline and, 338–345 497, 503–504
Food and beverage
employment expectations producers/planners, 572
minimums, 407, 410
of, 360 Executive
operations, 391–416
evaluations of, 117–118 chef, 25–26
pocket card, 445
facility issues and, committee, 17–18
Food
527–528 Exercise classrooms, 679–680
cost percentages, 409
food and beverage, Expectancy theory, 101–103
trends, 415
404–406 Expediters, 502
Forced distribution, 335–336
job interviews and, Expert power, 94 Forecasting
325–328 External analysis, 278 expenses, 472–473
lifelong learning and, results of operations, 473
357–358 revenue, 472
mentoring of, 371–372 F Formal dining rooms, 395–396
orientation of, 328–331, Founder membership, 13
368–370, 404 Face painters, 569
4 P’s of marketing, 275–277
performance appraisals Facility
Four-step training method,
and, 331–338 condition evaluation, 373–377
recruitment of, 319–320, 535–536 Free weight areas, 679
321–322, 404 function evaluation, Fresh water resource
reference checks and, 328 536–537 management, 534
selection of, 320–328, 404 quality assessment, Front-of-the-house, 397
social networking sites 538–539, 535–539 Full or partial cost recovery
and, 325 Fairways, 638 strategy, 168–169
socialization of, 370–372 Family and Medical Leave Act, Full-cost pricing, 257
training of, 372–380 318–319
turnover of, 361–362, 395 Family life cycle, 236, 237
versus independent Faulty listening/memory error, G
contractors, 312, 326
606–607, 687–688, 701 Fertilization, 645 Gatekeepers, 240
Employment Fiedler, Fred, 90 General
at will, 343–345 The Fifth Discipline: The Art contracting method,
interviews, 325–328 and Practice of the Learning 545–546
Energy conservation, 534 Organization, 357 ledger accounting
English city clubs, 5 Finance committee, 19–20 software, 498
732 Index
General manager/chief course trees, 648–649 House, R. J., 103
operating officer course wildlife, 652–655 How to Help Your Board Govern
budgets and, 407, 458 history of, 583–584 More and Manage Less, 64
chief operating officer instructional programs, Human resource software, 498
model and, 59–60, 594–597 HyperText Transfer Protocol,
62–63 professionals, 24, 588, 516
club boards and, 63–65 589, 597, 601–607
club grand strategy and, shops, 588–589, 608
173 standards, 590–591 I
construction projects and, sustainability and, 531,
544 649–655 Immigration Reform and
entertainers and, 562–565, tournaments, 592–594, Control Act of 1986, 315
574, 575 670–672 Income statement. See
financial ratios and, 464 Golf Course Superintendents Statement of activities
golf course Association of America, 626 Individual lifestyle trends
superintendents and, Golf 20/20, 585 (food and beverage) 414
623 Goods versus services, 253–254 Inferential research, 261
job description of, 36–39 Graphic rating scale, 336, 337 Influence power, 94
long-term success of, Great man theory, 84 Informed consent forms, 684
65–66 Green speed, 645–648 Initiation fees, 280–281
management functions Greens, 638 Innovating strategy, 167
and, 114–120 committee, 21–22 Input/output (I/O) units,
new jobs of, 60–61 and grounds department, 489–490
operations budgets and, 623–631 Integrated
471, 473 Grid model, 85–86 pricing, 258
performance reviews of, Grosse Pointe Yacht Club, 356 software, 495
67–69 Gross-profit pricing, 257 Internal
professional development Grounds committee, 21–22 analysis, 277
of, 66–71 Groundspersons, 630 marketing, 235
responsibilities of, 22 Group training, 373 protocols, 519–520
salary of, 22–24 The Internet, 291, 514
training value and, 359 Intranets, 520–522
Generation X-ers, 272 H Inventory turnover ratio, 465
Generic software, 491–494 Inverted pyramid, 213
Genius theory, 84 Halo effect, 198, 326, 332
Gentleman Golfers of Leith, 584 Handicap systems, 591
Goal management, 109–111 Hard keys, 503 J–L
Goals, 114–116 Hard-surface tennis courts,
Golf 702–703 Job
cars, 589–590, 598–601 Hardware configurations, 490 breakdowns, 378
course budgets, 631–633 Hazardous materials, 532–533 descriptions, 378
course committee, 21–22 Head Junior
course environmental golf professional, 602–607 golf programs, 597
concerns, 649–655 mechanics, 608 membership, 12, 282
course irrigation/ Health History Questionnaire, 683 tennis programs, 699
drainage, 640–643 Hersey, Paul, 87 Kentucky bluegrass, 635–636
course maintenance Herzberg’s two-factor theory, Knowles, Malcolm, 378
equipment, 633–634 106–109 Laborers (golf course), 630–631
course maintenance Hierarchical appeal system, 341 Ladders (tennis), 697–698
foreman, 629 Historical cost, 451 Lateral communication, 192,
course management Homepages, 516 193–194
software, 504–505 Honorary membership, 13 Leadership
course sections, 638–639 Horizontal analysis, 462 art versus science, 99
course superintendent, Hot-stove approach, 339–340 definition of, 81–82
24–25, 623, 625––628, House committee, 20–21, 561, effectiveness and, 98
649 563 followers and, 83
Index 733
frameworks, 82–84 Manager in Development evaluations of staff and,
group behavior and, 95 Program, 70–71, 383 334
philosophies/styles of, Managerial grid, 86–87 facility issues and, 527
96–97 Managing the HOA-Residential fitness facilities and, 675
power and, 92–94 Golf Community, 11 food and beverage usage
process for, 114–120 Market and, 412–413
reporting function and, development growth golf cars and, 598–599
116, 118–120, 181–183 strategy, 234 golf instructional
service analysis and, penetration growth programs and, 594–597
111–114 strategy, 234 input of, 146–150
skills associated with, segments, 230 orientations for, 285,
98–100 Marketing 286–288
success and, 98 definition of, 229 recruitment of, 498–501
theories of, 84–92 ethics, 262 referrals and, 284–285
time lags and, 95–96 golf, 607 selection of, 14–15
time management and, mix, 242–259 technology and, 487
120–126 orientation, 232 tennis lessons and, 699
versus management, research, 259–261 weight lifting areas and,
81–82 strategies, 230–232 678–679
Leadership, 82 Mark-up pricing, 257 Membership
Least-preferred co-worker Marshalls, 608 categories, 11–13, 282–283
scale, 90–91 Masked characters, 569 committee, 20, 288–289
Legacy memberships, 282 Maslow, Abraham, 239 directors, 290–291
Leniency error, 332–333 Maslow’s hierarchy of needs marketing, 269–292, 500
Leniency/severity effect, 198 theory, 105–106 nominations, 14–15
Liabilities, 448 Massage rooms, 686 Memos, 214–216
Liabilities and net assets, 450 Mentoring, 371–372
Master Club Manager, 382–383
Licensing (music), 574–575 Menus, 248, 249, 399–404,
McMahon Group, 392
Lifeguards, 691–692 492–493
Mechanical men, 569
Lifelong learning, 357–358 Military clubs, 8–10
Meeting
Likert, Rensis, 95 Mirroring, 206
agendas, 56–59
Liquidity ratios, 463, 464–465 Mission statements, 159, 404
minutes review, 56, 143
Listening skills, 202–208 Mist applicators, 641
Meetings, 123–125
Lobby food services, 397 Modified-rebuy buying
Member
Local area networks, 490–491, situation, 241
satisfaction maximization
521 Modular software, 494–495
strategy, 169
Lodging operations software, Motivating factors, 107–109
tracking software, 497
497–498 Motivational theories, 100–109
Member-guest events, 285–288, Moulton, Jane, 86
Long-range planning
committee, 19 592, 698 Mowing, 639
Long-term debt, 450 Members Multi-unit clubs, 254–255
Lounges, 396 aging of, 272 Multi-vendor contracts,
Love and belonging needs, 106 attracting new, 279–290 513–514
Low-cost leadership, 156 cardiovascular fitness Music licensing, 574–575
areas and, 677–678 Musical entertainment, 567–568
club food and beverage
M operations and,
391–392 N
Machine weight areas, 678 declining numbers of,
Magic entertainment, 568 269–272 Narrative essays, 336
Maintenance factors, 109 discipline of, 15 National Club Association, 71
Management entertainment booking National Restaurant
by objectives, 338 and, 565 Association, 411, 413
to leadership model, entertainment needs of, Needs assessment, 143–144,
62–63 562, 565 364–365
versus leadership, 81–82 equity, 448, 449 Negotiating, 224–225
734 Index
Net present value approach, Outsourcing (training), 383–385 Primary data, 261
474–476 Overseeding, 637 Private clubs
New sponsorship policies, 280 Overweighting negative aquatics operations and,
Newsletters, 246–247 information error, 326 688–697
New-task buying situation, 241 banquets and, 534
Nominating committee, 20 budgeting and, 170–171,
Non-commercial food service P 469–479
operations, 392–393 building maintenance
Non-discriminatory policies, Pacific Club, 5 and, 531–532
281–282 Pacific-Union Club, 5 building projects and,
Non-equity clubs, 6, 26 Paid occupancy percentage 539–548
Non-golfing memberships, 282 ratio, 466 change and, 182–183
Nonresident membership, 12 Paired comparison, 335 city, 5
Nonverbal communication, Paperwork, 125–126 competitors and, 271–272,
208–210 Paraphrasing, 206 392
Number of times interest PAR-Q and You, 683 country, 6–8
earned ratio, 465 Passive voice, 212 creditors of, 464
Past-anchoring error, 332 decision-making within,
Path-goal theory, 103–105
145–146
O Payback approach, 474
definition of, 3–4
Payment bonds, 547
economic downturns
Objective measures, 114 Peer review appeal system, 341
and, 270–271
Occupational Safety and Performance
employees of, 26
Health Act of 1970, 313–314 appraisals, 331–338
energy conservation and,
Off-the-job training, 373 bonds, 547
534
Olympic Club, 5 reviews, 117–118
events and, 534
Ombudsman appeal system, Personal
events at, 503–504,
341 leadership, 126–135
561–569
One-on-one training, 372 power, 94
facility management and,
Online selling, 245–246
527–548
management closing trainers, 681, 682
report, 433–435 Pesticides, 624, 652 family-friendly services
training, 379–380 PGA. See Professional Golfers’ and, 284
On-the-job training, 373 Association of America federal income taxes and,
Open-door policy, 341 Philadelphia Country Club, 3 479–480, 518–519
Open-ended questions, 207 Physiological needs, 105–106 financial ratios and,
Operating Pitchfork effect, 198 463–469
cash flows to current Place, 276–277 financial statements of,
liabilities ratio, 465 Place/distribution concepts, 447–480
efficiency ratio, 467 253–255 fitness operations and,
expenses, 455 Playability policies, 632 675–684
ratios, 463, 467–468 Pocket card, 445 food and beverage
Operational audit, 143–144 Point-of-sale software operations of, 391–416
Operations budget, 170–171, applications, 497, 501–503 fresh water resource
469, 471–473 Pool management and, 534
Organizational-buyer behavior, operation/maintenance, goals of, 160–161
239–242 695–697 golf course maintenance
Orientation, 328–331, 368–370, safety policies, 693–695 and, 623–655
404 POS systems, 500–503 golf operations in,
Other Positive discipline, 340 583–608
activities, 455 Practice facilities (golf), governance of, 46, 49,
equipment manufacturer 587–588, 608 50, 65
contract, 514 Pre-employment tests, 324325\ grounds/site maintenance
revenue, 407 Pregnancy Discrimination Act and, 532
Outside golf tournaments, 594, of 1978, 314–315 hazardous materials and,
670–672 Price concepts, 255–259, 276 532–533
Index 735
housekeeping/sanitation technology and, 487–522 Reciprocity (membership), 13
issues and, 532 temporary price Recruitment, 319–320, 321–322,
human resources issues reductions and, 323–324, 404
and, 311–345 280–281 Reference checks, 328
increased competition tennis operations and, Referent power, 94
and, 271–272 697–704 Refundable initiation fees, 281
initiation fees and, traditions of, 61, 369–370 Regular membership, 12
280–281 types of, 6–11 Representation power, 93
Internet and, 291, 514 vision of, 152–159 Request for
IRS and, 279, 312, waste management and, proposals, 509, 510, 511
479–480, 518–519, 701 532–533, 624 qualifications, 539–540,
local, state, and federal websites of, 250 552–558
laws and, 319, 535 websites of, 500–501, Resource Conservation and
location of, 272–273 514–520 Recovery Act, 533
marketing of, 229–262, written records of, 53–59 Return on members’ equity
273–275, 498–501 PRM software, 499–500 ratio, 467
member-guest events Product, 276 Revenue, 455
and, 285–288 classifications, 242–243 Revolution strategy, 168
membership marketing development growth Reward power, 94
and, 269–292 strategy, 234 Risk management/liability
memberships of, 11–15 differentiation, 243 issues (fitness), 683–684
menus and, 399–404, life cycles, 244
Rochester Club, 5
492–493 orientation, 231
Rock Barn Club and Spa, 356
multi-unit, 254–255 positioning, 243
Roman baths, 5
non-discriminatory Production orientation, 231
Rough (golf course), 638
policies and, 281–282 Professional Golfers’
Round-robin mixers, 698
non-equity, 6, 26 Association of America, 585
Roving refreshment carts, 396
objectives of, 162 Profit margin ratio, 466
oldest U.S., 5 Royal and Ancient Golf Club of
Profitability ratios, 463, 466–467
organization charts of, 7, St. Andrews, 5, 586
Progressive-discipline
9, 398, 399, 400, 401 Rules, 56
approach, 339–340
organization of, 16–26 Promotion, 244–253, 277 Runners, 502
origins of, 5 Promotional mix, 245–253
overbuilding of, 271 Prospect lists, 289–290
ownership of, 4–6, 464 Provision for income taxes, 455
S
playability policies and, Public
Safety
632 performance, 574–575
professionals in, 24–26 concerns (building
relations, 249–250
prospect lists and, projects), 543–544
Publicity, 249
289–290 needs, 106
Punch list, 548
quality service and, Sales promotions, 248
Purchase specifications, 403
355–359 Sample job descriptions, 36–41,
Purpose power, 93
significant-other policies Pyramids (tennis) 697–698 298–300, 420–432, 613–621,
and, 283–284 659–669, 708– 727
spa operations and, Scott, Jonathon L., 670
684–688 Q–R Scripted product
staff training and, demonstrations, 511–512
355–385, 405–406 Qualitative research, 260 Search engines, 517
state and local laws and, Quality service, 355–359 Secondary data, 261
319, 535 Quantitative research, 260–261 Seed beds, 640
strategic planning and, Questioning/clarifying, 207 Selection, 320–328, 404
139–186 Quick-service dining outlets, Self-actualization needs, 106
surveys and, 147–151 396 Self-disclosure, 206
sustainability issues and, Reasonable accommodation, Selling orientation, 231–232
529–531, 543, 649–655 317–318 Semistructured job interviews,
tax-exempt status of, 279 Recency error, 326, 332 327
736 Index
Sender-receiver communication Stimpmeters, 645 Themed events, 565–567
model, 192, 194 Stimpson, Eddie, 645 Theory X, 96
Senge, Peter, 357 Straight ranking, 335 Theory Y, 96–97
Senior memberships, 12–13, Straight-rebuy buying Theory Z, 97
282–283 situation, 242 360-degree evaluation, 334
Service Strategic Time management, 120–126
analysis, 111–114 implementation analysis, Title VII of the Civil Rights Act
marketing, 235 173–186 of 1964, 313, 324
Severity error, 333 planning committee, 19 Topdressing, 645
Shopping goods, 243 planning pyramid, 141 Topic sentence, 213
Significant-other policies, planning, 139–186 Topping out, 135
283–284 Stretching areas, 679 Traditional employee
Similarity error, 326 String quartets, 569 discipline, 339
Single-vendor contracts, 513 Strolling entertainment, 568–569 Trainers, 377–378
Site surveys, 510 Structured job interviews, 327 Training (employee), 355–385,
Situation analysis, 162–165, Summarizing, 206 405–406
180, 232–235 Supervisors, 380–382 Transition zone (turfgrass),
Situational leadership theory, Surplus maximization strategy, 637–638
87–90 168 Treatment rooms, 686
SMART goals, 109–111 Surviving-spouse membership, Trial
Social 13 memberships, 283
committee, 21, 561 Sustainability, 529–531, 543, performances, 376
membership, 12 649–655 Turfgrass management, 634–649
networking sites, 325 Swim
Socialization (employee), instructor, 691, 692
370–372 team coach, 691, 692 U
Societal teams, 690
orientation, 232 SWOT analysis, 162–165, 180, Undistributed operating
trends (food and 232–235 expenses, 456
beverage), 414 Syringing, 642 Uniform resource locator, 516
Sodding, 640 Uniform System of Financial
Soft keys, 503 Reporting for Clubs, 448, 449,
Soft-surface tennis courts, 703 T 452, 460
Software, 491–494 Union Leagues clubs, 5
Solvency ratios, 463, 465 Take-out food services, 397 United States Golf Association,
Somerset Club, 5 Talent 584, 586
Spa operations, 684–688 agencies, 571 University clubs, 10
Speaking skills, 198–202 management, 358 Unrestricted net assets, 450
Special-events Task list, 378 Unstructured job interviews,
committee, 21 Team development, 124–125 327
matrix, 436–437 Tee sheet management, 591 Unused minimum, 407
Specialty goods, 243 Tees, 638 Upscale-casual dining rooms,
Specific job orientations, 329 Temporary memberships, 283 396
Sports areas, 681 Tennis Upward communication, 192,
Spreadsheet software, 493–494 associations, 703–704 193
Sprigging, 640 clubs, 10 Usage or targeted
Sprinkler heads, 641 competitions, 697–699 maximization strategy, 168
Standing committee, 18, 19–22 court maintenance, User fees, 684
Starters, 608 702–703 USFRC. See Uniform System of
Statement of director, 700 Financial Reporting for Clubs
activities, 447, 448, lessons, 699
451–460, 459 operations, 697–704
cash flows, 447, 448, pro shop, 701–702 V–Z
460–462 professional, 24, 700
financial position, 447, Testing/assessment areas, 680 Vending machines, 397
448–451 Thatch, 643 Vertical analysis, 463
Index 737
Virginia Graeme Baker Pool & Weaver, Larry, 570 Word processing software,
Spa Safety (VGB) Act, 695 Web browser, 516 492–493
Virtual private networks, 518 Web-based communications, Workplace antidiscrimination
Vocational Rehabilitation Act 250–253 laws, 312–319
of 1973, 314 Websites, 500–501, 514–520 World Conference on Club
Warm season grasses, 637 Wedding checklist, 439–444 Management, 70
Waste Wellness programs, 683 World Wide Web, 516
management, 532–533, Wet areas (spa), 686–687 Writing skills, 211–218
624 Wetlands, 625, 651–652 Wrongful discharge, 342
minimization, 533, 624 WIFM, 379 Yacht clubs, 10
transformation, 533 Wilmington Club, 5 Zoysiagrass, 637

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About the American Hotel & Lodging Association (AH&LA)

About the American Hotel & Lodging Educational Institute (EI)

About the American Hotel & Lodging Educational Foundation

Edited by Joe Perdue, CCM, CHE,

and the CLUB MANAGERS ASSOCIATION of AMERICA

The American Hotel & Lodging

All rights reserved. No part of this

Printed in the United States of America

Editor: Jim Purvis

Cover Photos: Courtesy of Ocean Reef Club, Key Largo, Florida.

Part I: General Club Management..................................................... 1

2 The Board of Directors and the General Manager/

3 Leading Clubs Effectively........................................................ 81

4 Strategic Planning and Management....................................... 139

Communication Challenges................................................................... 192

Speaking Skills......................................................................................... 198

Listening Skills......................................................................................... 202

Nonverbal Communication: Body Language...................................... 208

Writing Skills............................................................................................ 211

Important Workplace Communication Issues..................................... 218

Key Terms, Review Questions, Internet Sites...................................... 225

6 Club Marketing....................................................................... 229

Understanding Buyer Behavior............................................................. 235

The Marketing Mix.................................................................................. 242

Marketing Research................................................................................. 259

7 Membership Marketing........................................................... 269

8 Managing Human Resources in Clubs..................................... 311

9 Training and Professional Development in Clubs.................... 355

Part III: Club Operations..................................................................... 389

The Future of Club Food and Beverage Operations........................... 410

Endnotes, Key Terms, Review Questions, Internet Sites, ................. 416

11 Club Financial Management................................................... 447

Analyzing Financial Statements............................................................ 462

Federal Income Taxes and Clubs........................................................... 479

12 Club Technology...................................................................... 487

Generic Software...................................................................................... 491

Accounting Systems................................................................................ 494

13 Club Facility Management...................................................... 527

14 Managing Entertainment in Clubs........................................... 561

The Business of Purchasing Entertainment......................................... 569

Entertainment Contract Negotiations................................................... 573

Part IV: Club Sports............................................................................. 581

15 Golf Operations in Clubs........................................................ 583

Golf Facilities............................................................................................ 586

Golf Programs and Services................................................................... 590

Golf Staff................................................................................................... 601

Endnotes, Key Terms, Review Questions, Additional Reading,

17 Club Fitness, Spa, Aquatics, and Tennis Operations................. 675

Index .................................................................................................... 729

Joe Perdue, CCM, CHE,

The Origins of Private Clubs

Clubs in the United States

Other Types of Clubs

directed to combat-related activities, military clubs must now operate on a profit-

Developer-Owned. As mentioned earlier, many private clubs are built by devel-

Regular. A regular membership, also referred to as a full, resident, or stock mem-

Social. A social membership, also called a house membership, gives a member

Nonresident. The nonresident membership category is for members who live a

Junior. A junior membership is for individuals, usually the children of regular

Senior. A senior membership, sometimes called a life membership, is for club

Exhibit 3 Sample Nomination for Membership Checklist

Proposer and Seconder Checklist

•• Conduct unbecoming a member of the club