CHAPTER 4

HOTEL MANAGEMENT MEANING AND PRINCIPLES

Learning Objectives:

At the end of the discussion, you are expected to:

• Discuss and understand the meaning of management and hotel
management.
• Discuss the role of a hotel manager.
• Discuss the hotel management concepts, functions and principles.

Management is the act of getting people together to accomplish desired goals and
objectives using available resources efficiently and effectively.

Hotel management is the executive level of a hotel. This management position will
oversee all aspects of running a hotel. This will be in the form of the hotel, housekeeping,
restaurant, meetings, etc.

It also defined hotel management as running or managing a hotel. Hospitality managers are in
charge of everything from housekeeping and reservations to catering and concierge services.
Hotel management are also known as hospitality management. Hospitality management is
referring to hosting the guests. Though, hospitality management is a broad term because
hosting the guests or render the services to guests could be in many fields, i.e., hotels,
restaurants, cruise liners, air planes, clubs, tourism industry, event management industry and
nor in hospitals also, but generally in academics, hospitality management refers to hotel
management. Hospitality management or hotel management is managing hotel and/or
managing event at hotel.
 Hotel management or hospitality management is a part of service industry. In this
industry, the industry professional has to cater services to the guests and hence, they have to
communicate with the guests directly. Hotel management is therefore a service industry in
which personality development is the most important part of professional portfolio of an
individual.

According to some industry professionals, world's economy in 21st century will govern by mainly
three industries, i.e., telecommunication industry, Hospitality industry, and IT industry.
Hospitality industry is one of the fastest growing industries with lucrative career options
especially for energetic youth.

Hospitality Management Concepts

Any type of lodging accommodation, whether new or old, small or big, requires certain
methods, procedures and plans in place for its efficient functioning. For this to happen, they
must develop and implement hospitality management concepts which help them implement their
vision for the future of the organization and to run smoothly.
Hospitality management involves the planning, organizing, directing, controlling and staffing of
human and material resources within the lodging, restaurant, travel and tourism, institutional
management, recreational management and meeting and convention planning industries. All of
these separate yet related segments of the hospitality industry are interrelated to deliver kind
and generous services to guests.

The hospitality management concept is translated into functions lead to the creation of a
cohesive hotel organization. It is interesting to note that there is note that there is no hard and
fast rule to be followed in the application of these functions, as management is a real-time
decision-making system, any of these functions can be operational in conjunction with any other
and also as independent entities themselves.

Planning

Planning is the foundation pillar of hospitality management. It is the base upon which the all-
other areas of management are built. Planning requires administration to assess where the
hospitality industry presently is and where it would be in the upcoming years. From there, an
appropriate course of action is determined and implemented to attain the hospitality industry
goals and objectives.

Planning is an unending course of action. There may be sudden strategies, required to be

implemented during a crisis. There are external factors that constantly affect the hospitality
industry, both positively and negatively. Depending on the conditions, a hospitality industry may
have to alter its course of action regarding certain goals. This kind of preparation or
arrangement is known as strategic planning.

In strategic planning, management analyzes internal and external factors, that may
affect the hospitality industry, its objective and goals. One of the primary tools of strategic
planning is the use of SWOT Analysis, a technique that helps hospitality industry find their
strengths and weaknesses, identify areas of opportunity and take preventive measures against
threats arising from both internal and external environment factors.
The SWOT matrix can be understood by dividing its cell according to what they represent for the
hospitality industry.
Internal environment stands for the factors affecting performance within the hospitality industry
itself, this could be both positive or negative in nature
External environment is the outside world, factors beyond the control of the hospitality industry
which may affect it in positive or negative ways.

Strengths are the things that the hospitality industry does well, its core competency in
production, sales, innovation and so on.

Weaknesses are the areas which need improvement such as a high attrition rate.
Threats are the foreign variables that affect the hospitality industry such as government
regulations, entry of new competitors or even natural disasters

Organizing

The second function of the management is getting prepared and getting organized. The
hospitality management must organize all its resources beforehand, to follow the course of
action decided during the planning process. While determining the hierarchy of the hospitality
industry, hotel managers must look at the requirements of different divisions or departments.
They must also ensure the harmonization of staff, and try to find out the best way to handle the
important tasks and reduce unnecessary expenditure within the industry. Hospitality
Management determines the division of work according to its need. It also has to decide for
suitable departments to hand over authority and responsibilities.

Directing/Leading

Directing or leading is the third hospitality management function. Working under this function
helps the hospitality management control and supervise the actions of the staff. It also enables
them to render assistance to the employees by guiding them in the right direction, to achieve the
hospitality industry goals and also accomplish their personal or career goals, which can be
powered by motivation, communication, department dynamics, and department leadership.

Controlling

Controlling is the fourth function of hospitality management, includes establishing performance

standards, which are aligned to the hospitality industry objectives. It also involves evaluation
and reporting of actual job performance. When these points are studied by the hospitality
management, it is necessary to compare both these things. This study or comparison leads to
further corrective and preventive actions. The controlling function aims to check if the tasks
being allotted are performed on time and according to the standards set by the quality
department.

Staffing

Hospitality management include the function of staffing as an important hotel management

practice. Without human resources, no industry can get off the ground, let alone do business
and make profits. Even the most labor efficient business models like online marketing and
counseling require expertise in the form of knowledge individuals whose job it is to identify
trends, do research and provide business plans or solutions to problems.
Staffing is an important function because it puts the right man in the right job. It is an ongoing
activity as hotel employees to keep leaving and joining the hotel organization, they also retire
from time to time leaving empty places in various positions. Efficiency is a prime focus for,
leaves, payments, benefits, medical allowances, social security accounting and much more.

It is very important to maintain a productive working environment, build positive interpersonal

relationships and engage in problem solving. This can only be done effectively, with proper
communication. Understanding the communication process and working on areas that need
improvement, helps hotel managers become more effective planners.

The Role of a Hotel Manager

A hotel manager or hotelier is a person who holds a management position within a hotel, motel,
and vacant establishment. Management titles and duties vary by company. In some hotels the
title hotel manager or hotelier may solely be referred to the General Manager of the hotel. Small
hotels usually have a small management team consisting of three or fewer managers while
larger hotels may have a large management team consisting of managers of various
departments and divisions.

Hotel managers are responsible for making sure that all areas of a hotel environment run
smoothly and work together successfully. They also oversee advertising campaign and make
sure that the hotel is not going over budget. If the hotel is not sticking to the budget, they will be
responsible for introducing measures to scale back expenditure.

Hotels are extremely complex environment which require a lot of work to be performed behind
the scenes in order to maintain a front of home appearance which guarantees that the guests
enjoy a comfortable and relaxing stay. Different areas of the hotel will need to work together at
all times in order to maintain the high standards expected by members of the public who have
paid with their hand-earned cash. Hotel managers are responsible for ensuring that all areas of
the hotel are performing properly at all times and that the hotel enjoys a good reputation in the
local area.

Large hotels may have several a manager, who each take control of one specific department.
For instance, there may be a manager of housekeeping, a marketing manager, and catering a
manager. However, these includes will be expected to report to a general manager throughout
the working day.

Smaller hotels usually employ just one individual to perform the necessary managerial tasks.
Managers working in a general role in large hotels will spend a lot of time working behind the
scenes. They will often be expected to attend meetings and concentrate their efforts on
marketing Managers working in smaller hotels will have more contact with guests on a daily
basis.

Hotel Innovation of Principles of Management

1. Division of Work
Work should be divided among individuals and groups to ensure that effort and attention are
focused on special portions of the task. Henri Fayol presented work specialization as the best
way to use the human resources of the organization.

2. Authority and Responsibility

The concepts of authority and responsibility are closely related. Authority was defined by Fayol
as the right to give orders and the power to exact obedience. Responsibility involves being
accountable, and is therefore naturally associated with authority. Whoever assumes authority
also assumes responsibility.

3. Discipline
A successful organization requires the common effort of workers. Penalties should be applied
judiciously to encourage this common effort.

4. Unity of command
Workers should receive orders from only one manager.

5. Unity of Direction
The entire organization should be moving towards a common objective in a common direction.

6. Subordination of Individual Interests to the General Interests.

The interest of one person should not take priority over the interests of the organization as a
whole.

7. Renumeration
Many variables, such as cost of living supply of qualified personnel, general business
conditions, and success of the business, should be considered in determining a worker's rate of
pay.

8. Centralization
Fayol defined centralization as lowering the importance of the subordinate role decentralization
is increasing the importance. The degree to which centralization or decentralization should be
adopted depends on the specific organization in which the manager is working.

9. Scalar Chain
Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line
supervisor to the president, possesses certain amounts of authority. The president possesses
the most authority, the first line supervisor the least. Lower-level managers should always keep
upper-level managers informed of their work activities. The existence of a scalar chain and
adherence to it are necessary if the organization is to be successful.

10. Order
For the sake of efficiency and coordination, all materials and people related to a specific kind of
work should be treated as equally as possible.

11. Equality
All employees should be treated as equally as possible.

12. Stability of Tenure of Personnel

Retaining productive employees should always be a high priority of management. Recruiting
and Selection Costs, as well as increased product-reject rates are usually associated with hiring
new workers.

13. Initiative
Management should take steps to encourage worker initiative which is defined as new or
additional work activity undertaken through self-direction.
14. Espirit de Corps
Management should encourage harmony and general good feelings among employees.

It is argued that the principal object of hotel management should be securing the maximum
prosperity for the hotel employer, coupled with the maximum prosperity for each hotel
employee. The most important object of both hotel management and employee should be the
training and development of each individual in the hotel establishment, so that he can do the
highest class of work for which his natural abilities fit him. It is demonstrated that maximum
prosperity can exist only as a result of maximum productivity, both for the management and
individual, and rebuked the idea that the fundamental interest of employees and employers are
necessarily antagonistic.

It is described how most all hotel workers deliberately work slowly, or "soldier" to protect their
interests. According to Taylor, there were three reasons for the ineffiency:

First. The fallacy, which has from time memorial, been almost universal among women,
that a material increases in the output of each machine in the trade world result in the end in
flowing a large number of men out of work.

Second. The defective system of management which are in common use, and which
make it necessary for each workman to soldier.

Third. The inefficient rule-of-thumb methods, which are still almost universal in all trades,
and in practicing which our workmen waste a large part of their effort.

Taylor argued that the cheapening of any article in common use almost immediately
results in a largely increased demand for that article, creating additional work contradicting the
first belief.

As to the second cause, Taylor pointed to quotes form 'Shop Management to help explain how
current management styles caused workers to soldiers. He explained the natural tendency of
men to take it easy as distinct from systematic soldering due to thought and reasoning, and how
bringing men together at a standard rate of pay exacerbated this problem. He described how
under standard day, piece, or contact work it was in the workers' interest to work slowly and
hide how fast work can actually be done, and the antagonism between workers and
management must change.

For the third cost, Taylor noted the enormous saving of time and increase in output that could
be obtained by eliminating unnecessary movements and substituting faster movements, which
can only be realized after, emotion and time study by a competent man. While there are
perhaps "50,50 or a hundred ways of doing each act in each trade", "there is always one
method and one implement which is quicker and better that any of the best".

The Principles of Scientific Management

Taylor explained his principles of scientific management.

He starts by describing what he considered the best system of management in the

current use, the system of initiative and incentive" in this system management gives initiatives
for better work, and workers give their best effort. The form of payment is practically the whole
system, in contrast to scientific management.

Taylor's scientific management consisted of four principles:

First. They develop science for each element of a men's work, which replaces the old
rule-of-thumb method.

Second. They scientifically select and then train, teach, and develop the workman,
whereas in the past he chooses his own work and trained himself as best he could.

Third. They heartily cooperate with the men so as to ensure all of the work being done in
accordance with the principles of the science which has been developed.

Fourth. There is an almost equal division of the work and the responsibility between the
management and the workmen. The management take over all work for which they are better
fitted than the workmen, while in the past almost all of the work and the greater part of their
responsibility were thrown upon the men.

Under the management of initiative and incentive", the first three elements offend exist in some
form, but their importance is minor. However, upon scientific management, they "form the very
essence of the whole system".

Taylor summary of the fourth point is under the management of initiative and incentive"
practically the whole problem is "up to the workmen," while under scientific management fully
one-half of the problem is quote up to the management. "worker in this method, and keep
individuals records for incentive based.