TOURISM MANAGEMENT

LECTURE 10
«Management Methods»
 Management methods represent the specific
means of management, thus the way it manages
the organization, resources and its processes
managed. Management methods therefore
significantly affect planning, organizing and the
performance of other managerial functions. They
affect the management of either the whole
organization (business) or its specific part (e.g. in an
organizational unit).
 Unlike disposable analytical
techniques that solve a problem or
situation, management methods
are used continuously,
respectively over a longer period
of time.
 “Management is thus what
tradition used to call a ‘liberal art’:
‘liberal’ because it deals with the
fundamentals of knowledge, self-
knowledge, wisdom, and
leadership; ‘art’ because it is
practice and application.
Managers draw on all the
knowledge and insights of the
humanities and the social science
– on psychology and philosophy,
on economics and on history, on
the physical sciences and on
ethics.”
Peter F. Drucker
 Peter Ferdinand Drucker was
an Austrian-American management
consultant, educator, and author,
whose writings contributed to the
philosophical and practical
foundations of the modern business
corporation. He was also a leader in
the development of management
education, he invented the concept
known as management by objectives
and self-control, and he has been
described as "the founder of modern
management".
Drucker's books and articles,
both scholarly and popular,
explored how humans are
organized across the
business, government, and
nonprofit sectors of society.
He is one of the best-known
and most widely influential
thinkers and writers on the
subject of management
theory and practice.
 His writings have predicted many of
the major developments of the late
twentieth century, including
privatization and decentralization;
the rise of Japan to economic world
power; the decisive importance of
marketing; and the emergence of the
information society with its necessity
of lifelong learning. In 1959, Drucker
coined the term "knowledge
worker", and later in his life
considered knowledge-worker
productivity to be the next frontier of
management.
 Project management is the
management of time-bound and
comprehensive set of activities
and processes aimed at
introducing, creating or
changing something specific.
As a discipline, project management developed
from several fields of application including civil
construction, engineering, and heavy defense
activity. Two forefathers of project
management are Henry Gantt, called the
father of planning and control techniques, who
is famous for his use of the Gantt chart as a
project management tool; and Henri Fayol
for his creation of the five management
functions that form the foundation of the body
of knowledge associated with project and
program management.
Both Gantt and Fayol were students
of Frederick Winslow Taylor's
theories of scientific management.
His work is the forerunner to
modern project management tools
including work breakdown structure
(WBS) and resource allocation
Project management methods are described
and validated procedures, organized effort solving
the complexity of realization and management of
defined set of activities. The purpose of project
management is to ensure effective management of
this set of activities to bring the expected results
and benefits. The subject of project
management is a project. Project
management is thus an application of knowledge,
skills, activities, tools and techniques to the
project so that the project will meet the
requirements imposed on it to reach its goals.
Passionate to the point of obsessive about
design, Steve Jobs insisted that his
computers look perfect inside and out
According to ISO 9001:2015
«Quality management systems —
Requirements», quality is “the
degree to which a set of inherent
characteristics of an object fulfill
requirements.”
The 1980s brought the rise of total
quality management (TQM) as a
methodology to ensure quality through
the coordination of all the processes in a
company. As the movement matured and
improved, it developed into what we now
know as quality management.
Quality Control
This is defined as the process of identifying which
products/services do not meet the
organisation’s standards. Whilst quality assurance
is about prevention, quality control is about
identification of low quality products which have
escaped quality assurance. Either all products will be
tested or a sample will be taken from each batch.
Quality control could also involve unplanned spot
checks where a random product or service is tested.
Once identified products and services below standard
will be removed from the production line, adapted to
meet quality standards or discontinued from future
production.
Quality control is the most basic
level of quality management. It
includes all activities of inspecting,
testing, or checking a product to ensure
it meets the requirements. The intent of
QC is to identify any issues—and either
fix them or eliminate them—to make
sure the end result is as expected. QC is
typically conducted reactively, at the end
of the process.
Total Quality Management is an extensive and
structured organization management
approach that focuses on continuous
quality improvement of products and
services by using continuous feedback.
Joseph Juran was
one of the founders
of total quality
management just like
William E.
Deming.
TQM Components

TQM has four basic components

1. Put customers first
2. Make Continuous Improvement
3. Aim for zero defects
4. Training and development
Put Customers First

A quality product or service satisfies

customer’s needs and expectations. Whether
a product or service is of high or low quality,
will be decided by how it made the consumer
feel and whether consumer expectations were
satisfied or exceeded. If customers are not put
first, then customer expectations will be
difficult to satisfy and consequently quality
will not be achieved.
Putting Customers First Examples

Customers can be put first through a

variety of initiatives including:

Undertaking market research to discover

consumer needs so that the organisation
can develop products and services that
exceed their consumer’s needs.
Looking after all customers whether
internal or external. Internal customers
are employees of the organisation and are
known as customers when they approach
each other for a service. External
customers are all non-employees (of the
organisation) that approach the
organisation in connection with a service
or product.
Effective customer care systems are
all systems that support customer service;
they include customer advice, after sales
support, product warranties and in store
facilities such as parent and baby rooms,
shoe fitting services and waiting rooms.
Ensuring that all service standards
are met If you are an organisation that
meets its service standards customers
know that they can rely on you especially
when it matters. There is little value in
setting service standards if you do not
meet them. This creates a bad impression
and says to customers that you do not
value them enough.
Listening to customer views and
opinions Responding to customer views
including resolving customer complaints
in a manner that satisfies their
expectations. Once customer complaints
are resolved they should be analysed to
prevent future recurrence.
Make Continuous Improvement

The Japanese term “kaizen” has contributed to this

component. Kaizen believes that there are no
limits to continuous improvement. This means
that a TQM organisation will continuously strive to
improve their product/service and increase the quality
standards. A TQM organisation will also view change
positively whether the change involves a process change
or a change in customer needs and expectations. This is
because changes will enable the organisation to develop
and explore quality.
Kaizen (改善) is the Sino-Japanese word for
"improvement". In business, kaizen refers to
activities that continuously improve all
functions and involve all employees from the
CEO to the assembly line workers. It also
applies to processes, such as purchasing and
logistics, that cross organizational boundaries
into the supply chain. It has been applied in
healthcare, psychotherapy, life coaching,
government, and banking.
By improving standardized programmes and
processes, kaizen aims to eliminate waste.
Kaizen was first practiced in Japanese
businesses after World War II,
influenced in part by American business
and quality-management teachers, and
most notably as part of The Toyota Way.
It has since spread throughout the world and
has been applied to environments outside
business and productivity.
Kaizen is the philosophy of
continuous improvement. Translated
from Japanese, the word “kaizen”
translates to “changing something for
the better.” With kaizen, manufacturers
continuously improve standardized
processes, equipment, and other daily
production procedures by eliminating
waste.