Management Structures And Organization Of Hotels

This module introduces the basic concepts of hotel operations. It will help students to acquire the basic knowledge about the hotel business and its operations prior to acquiring more knowledge in the field The learner should read the ATHE resources, study the recommended text book on this unit and also do their own research.

Learning Outcomes and Assessment Criteria

Centres are free to offer this the qualifications using any mode of delivery that meets the needs of their learners. This may be through traditional classroom teaching, open learning, distance learning or a combination of these. Whatever mode of delivery is used, centres must ensure that learners have appropriate access to the resources identified in the specifications and to the subject specialists delivering

the units. This is particularly important for learners studying for the qualification through open

or distance learning. The lecture and seminar notes provided below are for guidance and it is up to the centre whether they use these or alternative ones. The questions at the end of each unit will form the evidence of understanding.

Learning Outcomes and Assessment Criteria

1. Understand how to categorise the different levels of management.

1.1 Explain how the first line management level differs from middle management level.

1.2 Differentiate the variety of functions of someone who works at top management level.

2. Understand management structures and the way in which the hotel is organised.

2.1 Explain the nature and necessity of management structure in a large hotel.

2.2 Describe and illustrate an organisational structure suitable for a medium sized hotel in a city centre.

3. Understand the importance of maintaining different types of food services within a hotel.

3.1 Examine the different types of room service available for food and beverage.

3.2 Analyse the management of food service in a large hotel.

4. Understand how to appraise the various control systems within a major international hotel.

4.1 Formulate different ways of creating and storing information in a hotel.

4.2 Understand the various ways of financial control systems in a specific hotel.

Introduction to Hotel Management – Suggested Lesson Plan

1. Understand how to categorise the different levels of management.

1.1 Explain how the first line management level differs from middle management level.

Seminar

In this seminar the lecturer should discuss with the students about two different line managers as an example quality of first line management and middle line management

Lecture

This lecture should focus on front line staff should be highly skilled.

Group discussion

The lecturer should ask the students to pick the work schedule of a Laundry Manager, where teamwork was working and was disrupted by different factors, then facilitate a discussion around this.

1.2 Differentiate the variety of functions of someone who works at top management level.

Lecture

Explain the variety of functions in a large hotel and identify the top management ones.

Seminar: Discuss the paragraph below

A manager may be responsible for one functional area, but the general manager is responsible for all areas. Most commonly, the term general manager refers to any executive who has overall responsibility for managing both the revenue and cost elements of a company’s income statement. This is often referred to as profit & loss (P&L) responsibility. This means that a general manager usually oversees most or all of the hotel’s marketing and sales functions as well as the day-to-day operations of the hotel. Frequently, the general manager is also responsible for leading or coordinating the strategic planning functions of the company.

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In many cases, the general manager of a hotel is given a different formal title or titles. Most corporate managers holding the titles of chief executive officer (CEO) or president, for example, are the general managers of their respective businesses

Seminar

Discuss the duties of a general manager

In hotels, the General Manager is the executive manager responsible for the overall operation of a hotel establishment. The General Manager holds ultimate authority over the hotel operation and usually reports directly to a corporate office or hotel owner. Common duties of a General Manager include hiring and management of a management team, overall management of hotel staff, budgeting and financial management, creating and enforcing business objectives and goals, managing projects and renovations, management of emergencies and other major issues involving guests, employees, or the facility, public relations with the media, local governments, and other businesses, and many additional duties. The extent of duties of a hotel General Manager vary significantly depending on the size of the hotel and company; for example, General Managers of smaller hotels may have additional duties such as accounting, human resources, payroll, purchasing, and other duties that would usually be handled by other managers or departments in a larger hotel.

Group Discussion

Discuss issues brought up at the lecture and how will this differ with smaller hotels.

2. Understand management structures and the way in which the hotel is organised.

2.1 Explain the nature and necessity of management structure in a large hotel

Lecture

Lecturer will use the following structure and explain to students.

A typical organizational chart for a mid-scale to large hotel:

General Manager

Assistant Manager or Operations Manager

Director of Room Operations

Front Office Manager

Guest Relations Manager(s)

Concierge Manager

Front Desk Manager

PBX Supervisor

Reservations Manager

Bell Services Manager

Executive Housekeeper

Housekeeping Manager(s)

Director of Sales & Marketing

Senior Sales Manager

Sales Manager(s)

Sales Coordinator

Catering Manager

Revenue Manager

Convention Services Manager(s)

Director of Food & Beverage

Restaurant Manager(s)

Room Service Manager

Bar Manager

Banquet Manager

Chief Engineer

Director of Human Resources

Director of Security

Spa & Recreation Manager

Accounting Manager / Controller

Group Discussion

Discuss issues brought up at the lecture and how this structure will differ with smaller hotels.

2.2 Describe and illustrate an organisational structure suitable for a medium sized hotel in a city centre

Seminar

Students will use the organisational chart shown above and then design a flow chart for a smaller hotel.

3. Understand the importance of maintaining different types of food services within a hotel.

3.1 Examine the different types of food service available for food and beverage.

Lecture

Teacher should explain the different types of food services available and students should then write down examples and the type of person who uses them, e.g. business lunch or quick snack. Students can use notes below.

There are various types of food services. Restaurants fall into several industry classification based upon menu style, preparation methods and pricing. Additionally, how the food is served to the customer helps to determine the classification.

Historically, restaurant referred only to places that provided tables where one sat down to eat the meal, typically served by a waiter. Following the rise of fast food and take-out restaurants, a retronym for the older “standard” restaurant was created, sit-down restaurant. Most commonly, “sit-down restaurant” refers to a casual dining restaurant with table service rather than a fast-food restaurant where one orders food at a counter. Sit-down restaurants are often further categorized as “family-style” or “formal”.

In British English, the term restaurant almost always means an eating establishment with table service, so the “sit-down” qualification is not usually necessary. Fast food and takeaway (takeout) outlets with counter service are not normally referred to as restaurants. Outside of North-America the terms Fast casual-dining restaurants, Family style, and Casual dining are not used. Junk food establishments would also not often be referred to as a ‘restaurant’.

Group discussion

After both the Seminar and Lecture the tutor/lecturer should ask the students to write down any questions they have and partake in researching those questions. The students should then bring those questions and research they have undertaken to a smaller group where debate and questioning should be encouraged

3.2 Analyse the function of food and beverage service in a large hotel.

Lecture

Examine the roles of the Food and Beverage department for a hotel business.

The Food and Beverage (“F&B”) department in a hotel is responsible for the operation and maintenance of the dining rooms, restaurants. room service (if available), and the needs of any other function such as a meeting or party that might desire food and beverages.

SeminarWhat is the difference in the management of food and beverage services offered by a large hotel compared to a budget hotel.

4. Understand how to appraise the various control systems within a major international hotel.

4.1 Formulate different ways of creating and storing information in a hotel.

Seminar

Discuss how the information hotels get from guests including personal and bank cards and how they are stored in a secure way

4.2 Understand the various ways of management control systems in a specific hotel.

Lecture 2 The lecture can be based on definition and examples of management control.

Management controls, in the broadest sense, include the plan of organization, methods and procedures adopted by management to ensure that its goals are met. Management controls include processes for planning, organizing, directing, and controlling programme operations. A subset of management controls are the internal controls used to assure that there is prevention or timely detection of unauthorized acquisition, use, or disposition of the entity’s assets.Simons (1994) defined MCS as “the formal, information-based routines and procedures managers use to maintain or alter patterns in organizational activities”.

Seminar

In this seminar the lecturer should discuss with the students utensils Inventory control of every department.

Unit 2-Hotel staff Management

This unit is to help students understand the importance of staffing in a hotel.

Learning Outcomes and Assessment Criteria

Importance of briefing of hotel staff

Regular coaching gives staff development

Appraisal and training gives motivation to staff

Staff co-ordination keeps good team work within the industry

Hotel staff require speaking skills

Explain GM’s working process of a hotel

Explain all departmental heads duty rosta

1. Understand effective methods of communication for hotel managers when managing staff.

1.1 Examine the different methods of communicating with staff in a large hotel.

1.2 Analyse the importance of the management of staff coordination within a large hotel.

2. Understand hotel organisational charts

2.3 Explain why lines of authority are particularly important in a large metropolitan hotel.

2.4 Evaluate the importance of two organisational rules and regulations.

3. Understand how to review and comment on the management organisational structure of different types of hotels.

3.1 Illustrate the chain of command in a small hotel by using a Management Organisational Chart.

3.2 Explain the nature and necessity of a complex structure in a large hotel.

4. Understand progression opportunities within the hotel industry.

4.1 Analyse the career path within one department of a large hotel.

4.2 Illustrate using a diagram the place of the hotel industry as one of the components of the Tourist industry.

Hotel Staff Management-Suggested lesson plan

1. Understand effective methods of communication for hotel managers when managing staff.

1.1 Examine the different methods of communicating with staff in a large hotel.

Lecture

The lecturer should select a large hotel and discuss the different methods of communication available for both guests and staff. This would depend on the size of the hotel. The students should then be given an assignment where they would imagine a large hotel in a city where many of the staff and guests have lesser knowledge of English and how to communicate messages.

Group discussion

Continue from lecture and discuss.

1.2 Analyse the importance of the management of staff within a large hotel.

Lecture can be based on following notes

Small- and medium-sized firms’ employers realise the value of their staff in driving forward business success according to a recent survey based on a telephone interviews with 500 SMEs. However, too few SMEs focus on the need to motivate staff other than by financial incentives.83% of the SME directors/senior managers surveyed see employees as their business’s most important asset, while 63% believe that attracting and retaining staff is as important to an enterprise’s success as providing good customer service.However, the report, People Management in Growing Companies, commissioned from MORI by gusinessHR, a SME human resource advisory specialist, also examines SMEs behaviour in terms of expenditure and policies in the light of these opinions. It reveals that SMEs are not necessarily reflecting their views in their actions.A key finding is that SMEs are concerned with their employees’ job satisfaction and staff motivation, but as many as 86% feel that financial incentives – salary and benefits – will do the trick in attracting and retaining staff. Only 28% cited good training and development opportunities for employees as important, with just 25% viewing achieving a good balance between work and home life as significant. An overview of SME human resource policies illustrated that they tended more towards protecting the employer than nurturing the employee. 96% have formal employment contracts, 93% have disciplinary/dismissal procedures, and 88% have health and safety assessment audits and grievance procedures. Only about three-quarters have staff training and development plans and less than two-thirds have a formal appraisal system in place.Businesshr managing director Ian Stobie commented, “Skills shortages and the rising costs of recruiting staff mean that it is vital for SMEs to retain key staff if companies wish to grow.

Throwing money at someone who is bored will not buy their commitment or ensure consistent, outstanding performance.”

Interestingly, the larger SMEs (those with over 100 employees) tended to be more concerned about motivating and retaining staff, and their productivity, and placed more value than smaller companies on training and self-development, as well as having more systems and policies in place which motivate and support employees. 91% of larger SMEs have staff handbooks, 85% training and development plans and 80% have an appraisal system.Manager of Advisory Services at businesshr, Tom O’Reilly, explained, “you can think like a corporate but on a smaller scale. SMEs need to get to the root of the issues that affect their employees [rather than just increasing their salaries, for example].”There are a variety of sources to tap about human resources issues, but a useful starting point for smaller businesses, is the Small Business Advice Service, managed by the Department of Trade and Industry. Its website is at www.businessonline.org .

For a copy of the report, visit www.businesshr.net/businesshr_27cApril.pdf .With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com© 2010 Association of Tourism & Hospitality Executives

Group discussion

Discuss and answer questions on case study.

2.Understand hotel organisational charts

2.1 Explain why lines of authority are particularly important in a large metropolitan hotel.

Lecture

Organizational structure involves, in addition to task organizational boundary considerations, the designation of jobs within an organization and the relationships among those jobs. There are numerous ways to structure jobs within an organization, but two of the most basic forms include simple line structures and line-and-staff structures.

In a line organization, top management has complete control, and the chain of command is clear and simple. Examples of line organizations are small businesses in which the top manager, often the owner, is positioned at the top of the organizational structure and has clear “lines” of distinction between him and his subordinates.

The line-and-staff organization combines the line organization with staff departments that support and advise line departments. Most medium and large-sized firms exhibit line-and-staff organizational structures. The distinguishing characteristic between simple line organizations and line-and-staff organizations is the multiple layers of management within line-and-staff organizations. The following sections refer primarily to line-and-staff structures, although the advantages and disadvantages discussed apply to both types of organizational structures.

Several advantages and disadvantages are present within a line-and-staff organization. An advantage of a line-and-staff organization is the availability of technical specialists. Staff experts in specific areas are incorporated into the formal chain of command. A disadvantage of a line-and-staff organization is conflict between line and staff personnel.

Group discussion

Questions and discussion relating to case study.

2.2 Evaluate the importance of two organisational rules and regulations.

Seminar In this seminar the lecturer should discuss different organisational rules and regulations.

Group discussion After both the Seminar and Lecture the tutor/lecturer should ask the students to write down any questions they have and partake in researching those questions. The students should then bring those questions and research they have undertaken to a smaller group where debate and questioning should be encouraged

3. Understand how to review and comment on the management organisational structure of different types of hotels.

3.1 Illustrate the chain of command in a small hotel by using a Management Organisational Chart.

Lecture

This lecture should focus on General Manager’s working process of a hotel increase business

Seminar

In this seminar the lecturer should discuss about duty rosta of departmental heads

3.2 Explain the nature and necessity of a complex structure in a large hotel.

Lecture

This lecture should focus on explain types of chain association and classify types of chain association

Seminar

In this seminar the lecturer should discuss explain the management contract in a large hotel.

4 Understand progression opportunities within the hotel industry.

4.1 Analyse the career path within one department of a large hotel

Lecture

This can be based as below.

Career in the Hotel Industry

Overview

There are numerous job opportunities available within the hotel industry due to the many different departments that contribute to the smooth running of an establishment. These include both front and back of house operations such as housekeeping, maintenance, reception, and food and beverage. Additionally, all hotels need a manager and some have individual department managers reporting to a general manager, thus providing opportunities for promotion. Also, the larger chains will often employ area managers who are responsible for the management of a network of hotels.

No matter what position you undertake within a hotel, the primary focus of the role will be to ensure that optimum service standards are delivered to guests and visitors to the premises. On the reception desk, you are the first point of contact for guests checking in and out of the hotel, and will therefore have to deal with enquiries and complaints on a daily basis. In the restaurant and bar areas, you are responsible for the quality of food and beverages served to the guests. As a housekeeper, you are accountable for the condition of the bedrooms and the public areas of the hotel. Hotel managers are accountable for all hotel functions as well as the administrative and accounting duties associated with the management of the premises. Additionally, hotels with bars must be compliant with statutory licensing regulations and it is the responsibility of the manager to ensure that this is maintained.

Due to the nature of the business, working in a hotel involves unsociable hours with many hotels often busier at weekends and on public holidays. It is essential to be passionate about customer service and all customer-facing roles require excellent communication and interpersonal skills. Hotel managers need to have strong business acumen and the ability to implement effective marketing strategies to enable the hotel to remain profitable in what is a highly competitive industry sector. There will always be complaints received from guests and customers so a professional approach is important as is the ability to deal diplomatically and tactfully with any incidents that occur.

Entry requirements

The hotel industry is one that benefits more from the personality traits of its staff rather than their standard of education, although for progression to management level it is possible to undertake HNC, HND and degree qualifications in Hotel and Hospitality Management. Most of the larger hotel chains, including Marriott, Travelodge, Ramada and Best Western, offer training courses leading to the achievement of NVQs or SVQs in Hospitality Service, Hospitality Supervision and Hospitality Management.

Progression opportunities

At entry level, the hotel industry is not necessarily one that pays particularly well although this does improve with progression to management level. Some of the larger hotel chains also have establishments in other countries so if you have a desire to work overseas, the hotel industry can offer excellent opportunities to those willing to learn a foreign language.

Seminar

In this seminar the lecturer should discuss a career in a specific department e.g. housekeeping.

4.2 Illustrate, using a diagram, the place of the hotel industry as one of the components of the Tourist industry.

Lecture

This can be based on following case study In the modern times, the way people spend their vacations has undergone a great change. People like to spend good times with family and friend while at the same time exploring various tourist places across the globe. As a result the tourism industry across the globe has seen an unprecedented growth which in turn has also resulted in tremendous growth in the hotel and accommodation facilities.

Comfortable hotels and accommodation facilities play a very important role in popularizing any tourist destination. If a person, who is quite far away from home, gets to enjoy the same facilities and comforts as he enjoys at his home, then he is bound to become attached to the place. On the other hand if the tourist ends up at a place where the hotels and accommodation facilities are not satisfactory, it is quite likely that he might never return to that place.

Perhaps that is why, hotels and accommodation facilities being made available at different tourists spots, have shifted the focus to providing maximum comfort to tourists at reasonable rates. It is also vital to provide comfortable accommodation to people from diverse economical backgrounds. While five star hotels can cater to the needs of affluent visitors, small and medium range hotels and lodging houses are available for use by a middle class traveler.

Blog reviews are also vital in that information about all the hotels and accommodation facilities available in a particular tourism spot are available to people quite easily. For this there can be no better option than internet, as most tourist gain information about the hotels and accommodation facilities through this medium only. The other ways are by making booklets containing information about the hotels and accommodation facilities available at train and bus stations.

The information provided to the tourists should be detailed and correct. It should contain the information related to room rentals, types of rooms, catering services, check out times, pick and drop facilities etc. Additional information about the significant tourist spots in the area can also be provided both on the net as well as the booklets, to promote not only the hotel but the tourist spot as well.

There are many websites available on the internet which are based on travel and tourism. You can get information regarding hotel accommodations, tourists place, and business blog reviews sight scenes. You should search these websites to make your travel easy and plan things accordingly. Through blog reviews you can get the link of such websites that are truly genuine and will provide you with travel packages into many countries. Read these blog reviews and you will know better.

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Seminar

In this seminar the lecturer should discuss relation between hotel and tourism and how hotels are an integral part of the tourism industry.

Unit 3-Marketing of Accommodation

Explain pricing strategy

Understanding Client behaviour

Knowledge of Market Research and Planning

Marketing to organize

Manage the retail marketing mix

Analyse SWOT

1. Understand how marketing principles apply to different types of hotels.

1.1 Examine the components of the marketing mix as applied to the hotel industry.

1.2 Analyse the benefits of segmentation for a large hotel.

2. Understand the marketing strategies and communication strategies of hotels.

2.1 Analyse the advantages of branding in relation the hotel industry.

2.2 Prepare a detailed SWOT analysis for a large chain of hotels.

3. Understand how two sales promotion packages are used to promote hotel services.

3.1 Evaluate two external influences which may affect the promotion of hotels.

3.2 Analyse three marketing objectives to be used in the planning of a promotional campaign.

4. Understand the part which market research has in the selling of accommodation and services

4.1Compare and contrast the advantages and disadvantages of both primary and secondary research.

4.2 Illustrate how two internal and two external sources of information can be used by a hotel when promoting holidays.

Marketing of Accommodation-suggested lesson plan

Do the case study on Riverview and ask questions.

1. Understand how marketing principles apply to different types of hotels.

1.1 Examine the components of the marketing mix as applied to the hotel industry.

Lecture: Explain how the marketing mix is directly responsible for maximizing room sales and revenues in a hotel.

Seminar

In this seminar the lecturer should explain pricing strategy

1.2 Analyse the benefits of segmentation for a large hotel.

The tutor will need to explain what segmentation is and then discuss the list below and whether all of these would apply to a hotel marketing.

Companies who segment their markets match their strengths and offerings to the groups of customers most likely to respond to them. Points for discussion.

• Differentiate products and services to meet customer needs and desires.

• Design or redesign new products and services to meet market needs.

• Find hidden needs and make improvements to existing products.

• By selecting and focusing on the most responsive segments to the exclusion of others, marketing can be created to more effectively fit consumers needs. Finding, understanding and focusing on the needs of the best customers can make a market leader.

• Target marketing mix to the customers most likely to want the products or services

• Identify behaviours and buying motives for products.

• Identify most and least profitable customers.

• Help.

• Avoid unprofitable markets.

• Increase brand loyalty and decrease brand switching.

2. Understand the marketing strategies and communication strategies of hotels.

2.1 Analyse the advantages of branding in relation the hotel industry.

Lecture

In this lecture the lecturer should discuss with the students branding systems in International Marketing

Group discussion

Srudents should have had photographic evidence of branding of major hotel chains and discuss usefulness in marketing on a global scale.

2.2 Prepare a detailed SWOT analysis for a large chain of hotels.

Lecture

Provide an explanation of the case study below and advise the students on what they should do.

Case study

Riverview Hotel

The Hotel

The Riverview Hotel, Notown USA, is representative of the five star brand within the ‘Exclusive Business Hotels of the World’ group. All Riverview Hotels are boutique properties, offering between 25 and 35 exclusive rooms.

Mission

The Riverview Hotel is dedicated to providing its guests with the highest quality of service and standards. We seek to deliver on our promise of value and quality above all else. We value our place in the community and will work to develop those relationships and to respect and protect our environment.

We will continue to strive to create value for both owners and shareholders whilst honoring our brand values and encouraging our personnel to develop themselves in an environment of trust, loyalty and encouragement.

Service Offering

Service: high-quality facilities accompanied by exemplary personal service, differentiated from competition in line with the overall brand strategy, has proven to be a successful approach generating high levels of repeat business.

Positioning

The Riverview Hotel is positioned as a five star plus, business travellers hotel, strategically located and offering a high level of personal service. Our focus is on offe