Management: A New Way of Thinking

Regean U. Ellorimo
 Management and Supervision
• Students considering a career in hospitality
management naturally want to understand the
hospitality profession in general and the various kinds
of opportunities it offers.
• It is equally important for them to understand the
work that supervisors and managers do.
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• The word supervision is derived from two Latin words that, taken together,
mean “to oversee.” As such, supervision involves principally the direction
and leadership functions of management.
• They must plan, and they must understand the plans made by senior
management that they will follow in their operations. They must
understand and come to function effectively within a complex organization.
• One particularly important responsibility, staffing is at the heart of a
hospitality supervisor’s work. Additionally, the control function cannot be
carried out without supervisors becoming sources of information and of the
corrective action indicated by control systems.
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 Supervision vs Management
• There are some slight differences between supervision and management.
• The supervisor’s work occurs at the operating level; that is, he or she
works directly with the employees as they do their work. Management,
however, is concerned with the totality of the organization’s problems.
• Managers engaged in long-range planning may well discover a need—for
example, to redesign the organization structure or the control system.
Very often, especially in large organizations, managers direct the work of
supervisors, who, in turn, direct the actual tasks of employees.
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• From a student’s perspective, it is important to
remember that in the hospitality industry, nearly all
managers begin as supervisors, and able supervisors
usually advance through the ranks to senior positions.
• Even there, however, a manager’s work may have a
supervisory component—the actual direction of
employees in productive tasks.
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• As a practical matter, management and supervision are
so closely intertwined as to make distinguishing between
them a theoretical exercise with little practical value for
us. To be sure, we often refer to supervision and
management, but by itself, the term management
usually includes supervision and is the preferred term
when speaking in generalizations.
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THE MANAGERIAL REVOLUTION

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 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.
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What is Hospitality Management?

• Simply defining as “the practice of

running a hotel”
• “ managing a hotel”

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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 .

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

3. Leading: Determining what needs to be done in a situation and

getting people to do it.

4. Controlling: Monitoring, checking progress against plans,

which may need modification based on feedback.
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 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.

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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
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What authority do you practice?

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Or like this?

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 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 community’s potential
use of force to maintain order.
“ I own this company, you’ll have to do as I
say”
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 2. INFORMAL ORGANIZATION

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Authority and Responsibility:

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What is Departmentalization?
• It changes the institutional structure of
the program for the staff effectiveness
• What is delegation?
Delegation is a very important aspect
of leadership skills as is human
resource management.
• WHY?

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WHY?
• Authority must be delegated
• it develops management talent in
the organization
• through assigning, it increased
employees’ responsibility

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Human resources management?
• Is the planning, organizing, directing
and controlling of the procurement,
development compensation,
integration, maintenance and
separation of human resources to the
end that individual organizational and
social objectives are accomplished.
~ Edwin B. Flippo

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 What is job description?
• A list of job’s duties, responsibilities, reporting relationship,
working conditions and supervisory responsibilities.
• Standards in choosing staff:
– Physical requirement
– Emotional or attitudinal characteristics
– Mental or intellectual abilities

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• Physical Requirement
– It involves the height, weight and even disabilities.
• Mental or Intellectual-
– may either language proficiency, arithmetic skills..
• Emotional Or Attitudinal Characteristics
– employees must have good dispositions

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IMPLICATIONS FOR THE MODERN HOSPITALITY MANAGER

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 WHAT IS MANAGEMENT?
• In order to better understand the management function, one must
understand the nature of work and the organization. Let us look at the basic
work of a business (or any other organization, be it a hospital, nursing home,
or school cafeteria).
• Peter Drucker, the economist and management consultant, stated that the
basic purpose of business is to “create a customer,” that is, to determine
unfulfilled consumer needs and find a way to fill them.
• Drucker argued that the customer determines what a business is and that the
central functions of a business are innovation and marketing.
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 ORGANIZATIONAL CHANGE
• Change refers to any alteration that occurs in total work environment. Change may be
very simple just like to shift the location of an office or it may be a more complex
technological change which may even threaten the very existence of some people in the
organization.
• "The term change refers to any alteration which occurs work environment of an
organization."
• To quote another definition "When an organizational system is disturbed by some
internal or external force, change frequently occurs. Change, as a process, is simply
modification of the structure or process of a system. It may be good or bad, the concept
is descriptive only."
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 Forces for change
• There are a number of factors both internal and
external which affect organizational functioning.
• Any change in these factors necessitates change
in an organization.

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 The more important factors are as follows :
A. External Forces

• External environment affects the organizations both directly

and indirectly. The organizations do not have any control
over the variables in such an environment. Accordingly, the
organization cannot change the environment but must
change themselves to align with the environment.
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 A few of these factors are :
1. Technology : Technology is the major external force which calls for
change. The adoption of new technology such as computers,
telecommunication systems and flexible manufacturing operations have
profound impact on the organizations that adopt them.
2. Marketing Conditions : Marketing conditions are no more static.
They are in the process of rapid change as the needs, desires and
expectations of the customers change rapidly and frequently

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3. Social Changes : Social and cultural environment also suggest some changes that the
organizations have to adjust for. There are a lot of social changes due to spread of education,
knowledge and a lot of government efforts. Social equality, e.g., equal opportunities to
women, equal pay for equal work, has posed new challenges for the management. The
management has to follow certain social norms in shaping its employment, marketing and
other policies.

4. Political Forces : Political environment within and outside the country have an important
impact on business especially the transnational corporations. The interference of the
government in business has increased tremendously in most of the countries. The corporate
sector is regulated by a lot of laws and regulations. The organizations do not have any control
over the political and legal forces, but they have to adapt to meet the pressure of these forces.

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 B. Internal Forces
• Internal forces are too many and it is very difficult to list them
comprehensively.
• However, major internal causes are explained as follows :

1. Nature of the Work Force : The nature of work force has changed over a
passage of time. Different work values have been expressed by different
generations. Workers who are in the age group of 50 plus value loyalty to their
employers. Workers in their mid-thirties to mid-forties are loyal to themselves
only. The youngest generation of workers is loyal to their careers.
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2. Change in Managerial Personnel : Change in managerial personnel is another force which brings about
change in organization. Old managers are replaced by new managers which is necessitated because of
promotion, retirement, transfer or dismissal. Each manager brings his own ideas and way of working in
the organization. The informal relationships change because of changes in managerial personnel.
Sometimes, even though there is no change in personnel, but their attitudes change. As a result, the
organization has to change accordingly.

3. Deficiencies in Existing Management Structure : Sometimes change are necessary because of some
deficiencies in the existing organizational structure, arrangement and processes. These deficiencies may
be in the form of unmanageable span of management, larger number of managerial levels, lack of co-
ordination among various departments, obstacles in communication, multiplicity of committees, lack of
uniformity in policy decisions, lack of cooperation between line and staff and so on. However, the need
for change in such cases goes unrecognized until some major crisis occurs.
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4. To Avoid Developing Inertia : In many cases, organizational
changes take place just to avoid developing inertia or inflexibility.
Conscious managers take into account this view that organization
should be dynamic because any single method is not the best tool
of management every time. Thus, changes are incorporated so that
the personnel develop liking for change and there is no
unnecessary, resistance when major changes in the organization
are brought about.
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All the above factors are summarized in the following figure
Types of changes
• Organizational changes are of
two types :
1. Reactive changes and
2. Proactive changes (planned
changes).

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Reactive Changes
• Reactive changes occur when
forces compel organization to
implement change without delay.
In other words, when demands
made by the forces are complied
in a passive manner, such a
change is called reactive change.

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Proactive Changes
• Proactive changes occur when
some factors make realize
organization think over and finally
decide that implementation of a
particular change is necessary.
Then, the change is introduced in
a planned manner.

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 The difference between reactive and proactive changes
can made on the basis of behavioural angle
1. Reactive change involves a reflexive behaviour whereas proactive change
involves purposive behaviour.

2. Reactive change covers a limited part of the system but proactive change co-
ordinates the various parts of the system as a whole.

3. While reactive changes respond to immediate symptoms, proactive changes

address to underlying forces creating symptoms.
 Planned Changes
• When changes are effected after working out when and
how they will be carried out, planned changes occur.
• For initiating planned change, the manager needs to
constantly watch the changes taking place in the external
and internal environment of the business so that corrective
measures are taken accordingly and the changes could be
effected successfully.
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 Reasons for Changes
♦ Technological innovations have multiplied, products and knowhow are fast becoming
obsolete.
♦ Basic resources have progressively become more expensive.
♦ Competition has sharply increased.
♦ Environmental and consumer interest groups have become highly influential.
♦ The drive for social equity has gained momentum.
♦ The economic inter-dependence among countries has become more apparent.

• All the reasons for organizational change can be classified into two categories external
reasons and internal reasons.
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WHAT IS OUR BUSINESS?
• To answer this question, Drucker
posed a series of additional
questions:
– Who is the customer?
– What is value to the customer?
– What will our business be?
– What should our business be?
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 What is a Customer?
• In general terms, a customer is a person or
organization that a marketer believes will benefit
from the goods and services offered by the
marketer’s organization. As this definition suggests, a
customer is not necessarily someone who is currently
purchasing from the marketer.
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 In fact, customers may fall into one of three
customer groups:
• Existing Customers - Consists of customers who have purchased or otherwise used an organization’s
goods or services, typically within a designated period of time. For some organizations the time frame
may be short, for instance, a coffee shop may only consider someone to be an Existing Customer if they
have purchased within the last three months.

Other organizations may view someone as an Existing Customer even though they have not purchased in
the last few years (e.g., automobile manufacturer). Existing Customers are by far the most important of
the three customer groups since they have a current relationship with an organization and,
consequently, they give an organization a reason to remain in contact with them.

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Former Customers
• This group consists of those who have formerly had relations with the marketing
organization typically through a previous purchase. However, the marketer no longer
feels the customer is an Existing Customer either because they have not purchased from
the marketer within a certain time frame or through other indications (e.g., a Former
Customer just purchased a similar product from the marketer’s competitor).
• The value of this group to a marketer will depend on whether the customer’s previous
relationship was considered satisfactory to the customer or the marketer. For instance, a
Former Customer who felt they were not treated well by the marketer will be more
difficult to persuade to buy again compared to a Former Customer who liked the
marketer but decided to buy from someone else who had a similar product that was
priced lower.
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Potential Customers
• The third category of customers includes those who have yet to purchase but possess
what the marketer believes are the requirements to eventually become Existing
Customers.
• Locating Potential Customers is an ongoing process for two reasons. First, Existing
Customers may become Former Customers (e.g., decide to buy from a competitor) and,
thus, must be replaced by new customers. Second, while we noted above that Existing
Customers are the best source for future sales, it is new customers that are needed in
order for a business to significantly expand.
• For example, a company that sells only in its own country may see less room for sales
growth if a high percentage of people in the country are already Existing Customers. In
order to realize stronger growth the company may seek to sell their products in other
countries where Potential Customers may be quite high.
 Customers and the Organization
• For most organizations, understanding customers is
the key to success while not understanding them is a
recipe for failure. It is so important that the constant
drive to satisfy customers is not only a concern for
those responsible for carrying out marketing tasks, it
is a concern of everyone in the entire organization.
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• Whether someone’s job involves direct contact with customers (e.g.,
salespeople, delivery drivers, telephone customer service
representatives) or indirect contact (e.g., production workers, accounting
department), all members of an organization must appreciate the role
customers play in helping the organization meets its goals.
• To ensure everyone understands the customer’s role, many organizations
continually preach a “customer is most important” message in
department meetings, organizational communication (e.g., internal
emails), and corporate training programs.

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 WHAT IS VALUE TO THE CUSTOMER?
• Each customer has different values to be fulfilled. The guest at a
Holiday Inn values a standard level of product and service that is
conveniently located and priced within his or her means.
• Value to the guest in a community hotel is clean, comfortable
accommodations. Value to the local investors, however, results from
factors such as improved property values and a community that can
more readily attract other employers with new local job opportunities.

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