Management in the Hospitality

Industry

Reden C. Costa
MSHRM/MHR 502
What is Hospitality Management?

According to the Oxford English dictionary,

Hospitality means the reception and entertainment of
guests, visitors or strangers with liberality and good
will.
Management comprises planning, organizing,
staffing, leading, directing, facilitating and controlling
or manipulating an organization (a group of one or
more people or entities) or effort for the purpose of
accomplishing a goal.
What is Hospitality Management?

Simply defining as the practice of running a

hotel
managing a hotel
How to manage the hotel?

Basic functions of management:

1. Planning: Planning is the conscious
determination of future course of action. This
involves why in action, how to take action, and
when to take action .
How to manage the hotel?

2. Organizing: (Implementation) making

optimum use of the resources required to
enable the successful carrying out of plans.
How to manage the hotel?

3. Leading: Determining what needs to be

done in a situation and getting people to do
it.
How to manage the hotel?

4. Controlling: Monitoring, checking

progress against plans, which may need
modification based on feedback.
What is meant for Organization?

A structure through which individuals

cooperate systematically to conduct
business.
What is Organizing?

The work managers do to bring order to the

relations between people and work as well as
among the various people at work.
What is Authority in the hotel
management?

Authority in management is the formal or

legitimate authority specified in a charter
gives a project manager the authority to act
in the name of the sponsoring executive or
on behalf on the organization.
Power that is recognized as legitimate
What authority do you practice?

Are you like this?

Or like this?
Two bases of Authority

1. FORMAL ORGANIZATION- follows series

of steps, authority must be shared
- Top to bottom
Specifically involved Legal system that
commonly imply a communitys potential
use of force to maintain order.
I own this company, youll have
to do as I say
2. INFORMAL ORGANIZATION

-usually has a leader who is consciously or

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

Unified Tasks

Manager can be held responsible for results

only as far as his/her effective authority
extends.
What is Departmentalization?

Itchanges the institutional structure of the

program for the staff effectiveness
What is delegation?
Delegation is a very important aspect of
leadership skills as is human resource
management.
WHY?
WHY?

- Authority must be delegated

- it develops management talent in the
organization
- through assigning, it increased employees
responsibility
Span of Control

Refers to the number of people the manager

supervises directly
Refers to formal reporting relationships

Direct report- no other manager in between

the manager and employee
Wide span of control:
control
Ex. Lyn Wells-AVP of Academic Affairs at CLC
directly supervises 50 faculty
*Narrow span of Control- when a manager directly
supervises only a few subordinates

Ex. CLC College President- directly supervises 3

Senior VPs
General Rule: The narrower the span of control, the
more managers needed. Why?
If all managers have narrow span of control, then
the organization must be tall
Tall organizations have many layers and
have narrow spans of control
If managers have wide spans of control, then the
organization can be flat
wide span of control

Fewer managers needed but tend to have

decentralized decision making.

Note: Consultation and interaction extend

beyond the span of control.
Span of control in hotel is being reevaluated
Bases of Departmentalization

Departmentalization is the basis on which

work or individuals are grouped into
manageable units. There are five traditional
methods for grouping work activities.
Functional Departmentalization

Departmentalization by function organizes

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

Departmentalization by product assembles

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

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

Departmentalization by process groups

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

Departmentalization by customer groups

jobs on the basis of a common set of needs
or problems of specific customers.
Note:

No department represents the best means

of division. What important is that authority
and responsibility be divided in a way that
suits the particular needs of the market
Advantages and disadvantages of
COMMITTEES
Advantages
- Allow number different interest
to gain representation.
- Builds morale-when everyone is
consulted, no one is offended,
or so the arguments goes
- hearing many views
- regularize consultation
-Serve as motivational tool by
allowing all participants to e
involved
Disadvantages
-Tend to consume a great deal of
time.
- often avoid action rather than
take it
- avoid or shift responsibility for
unpopular or risky decisions.
- encourage compromise
BUREAUCRACY?

Weber's theory of bureaucracy (1958) is one

of the most popular themes of the studying of
organizations. He identified the legitimate of
power with authority. 'Power' means the
ability to ask people to accept the orders;
'Legitimation' means people regard this
power as legitimate so as to obey the orders.
What is Adhocracy?

Adhocracy is a term from the theory of

management of organizations. Adhocracy
refers to the opposite of bureaucracy, or the
absence of hierarchy.
Other definition of Bureaucracy:

Scott defines bureaucracy it as "the

existence of a specialized administrative
staff".
Wikipedia: A bureaucracy traditionally does
not create policy but, rather, enacts it .
What is Adhocracy?

Adhocracy is a term from the theory of

management of organizations. Adhocracy
refers to the opposite of bureaucracy, or the
absence of hierarchy.
Bureaucracy vs. Adhocracy

Bureaucracy Adhocracy
very structured in its experiences an organic
rules and hierarchy structure
everyone knows their hierarchy barely exists.
specific role, they democratic nature
specialize in that role, a complex and dynamic
and know nothing, or organizational form
very little, about the
roles of their coworkers.
Bureaucracy Adhocracy
-only truly effective when - adhocracy one of the
one thing is being future
mass-produced - little formalization of
-bureaucracy a thing of behavior
the past - high cost of
-Division of labor communication
-Hierarchy of authority
-Formal rules
Staffing?

Is the work that managers and supervisors

do to determine the specific personnel needs
of their operations to attract qualified
applicants and to choose the best-suited of
these for employment and training.
Human resources management?

Isthe planning, organizing, directing and

controlling of the procurement, development
compensation, integration, maintenance and
separation of human resources to the end
that individual organizational and social
objectives are accomplished.
Edwin B. Flippo
Hrs concern in considering/choosing
staff..

1.Personal service qualified employee

promotes success of the whole enterprise.

2. Significant cost (payroll costs)

What is job description?

A list of jobs duties, responsibilities,

reporting relationship, working conditions
and supervisory responsibilities.
Standards in choosing staff:
a. Physical requirement
b. emotional or attitudinal characteristics
c. Mental or intellectual abilities
Physical Requirement

Itinvolves the height, weight and even

disabilities.

Mental or Intellectual- may either language

proficiency, arithmetic skills..
Emotional Or Attitudinal Characteristics
employees must have good dispositons
Recruitment

The process of finding and attracting capable

applicants for employment.
Two (2) major sources:
a. Internal Sources- recommendations of
former employees(current)
b. External Sources- divided into two:
advertisements and employment agencies
Internal sources External sources
Recommendation of the Advertisements
current employees large number of
- recommendations of applicants
previous or former Mass recruiting
employees Time consuming

Employment agencies
operated with tax
revenues
STAFF PLANNING

TO HAVE SUFFICIENT STAFF IN THE

APPROPRIATE JOBS TO MEET THE
OPERATIONS NEEDS.
Part-time employees
taking part-time job in addition to their
main employment. There are
advantages and disadvantages:
Part-time employees

Advantage Disadvantage
cost advantage for May create special
they receive fewer problems as they are
fringe benefits outside establishments.
Like spouses vacation,
exams, sembreak or
graduation (students)
Fatigue (other
professionals)
Computerized Scheduling

Greathelp for the hotel managers to track

the whereabouts of his/her employee or
subordinates.
Meaning of Control and its Importance

Control is the work that managers and

supervisors do to measure performance
against standards, detect and analyze
variances from target performance and
initiate corrective action.
What is cybernetics?

-Cybernetics is closely related to control

theory and systems theory. (wikipedia)
Cybernetics began as the science of
communication and control in the animal,
machine, and society;
Control and Cybernetic Loop

1. management-presented information on the

progress of an organization
2. Takes corrective action on basis of
information
3. Process continuous- term loop used
4. Action constantly takes place
5. Information about action must constantly
pass through loop