NAME: ELIJAHMWITI MUTEGI
REG. NO.: MHM/2019/49198
DEPARTMENT: HOSPITALITY AND TOURISM MANAGEMENT
PROGRAMME: MASTERS OF SCIENCE IN HOSPITALITY AND TOURISM MANAGEMENT
COURSE UNIT: STRATEGIC FOOD AND BEVERAGE MANAGEMENT
COURSE CODE: MHT5102
INSTRUCTOR: DR. MIRICHO
TASK: ASSIGNMENT
QUESTION ONE
Identify the five resource areas that a hotel or a restaurant should not only pay attention to but analyses to determine internal sources of competitive advantage.
Introduction.
Organizations’ internal resources are the organization’s strengths which enable the firm to compete within the market place. Organizations strengths give the hotel a competitive advantage over their competitors. The sources of these resources, therefore, ought to be managed well to ensure that the competitive edge is maintained (Olsen, 2011). The internal sources of competitive advantage to a hotel set up include;
Financial resource.
Technology
Human resource
Brand reputation
Financial resource
The hotel requires finances in the form of working capital to operate effectively. implementation of strategic plans requires that the hotel has the financial capacity to fund the implementation process. Inadequate financial resource acts as a hindrance to the growth and expansion of the hotel or restaurant.
The hotel premise requires financial resource for various functions which include; employees remuneration, firms’ development, purchases of raw material, firms’ insurance among other functions. A hotel which enjoys a strong financial base has a competitive advantage as opposed to a firm with limited resources. The hotel, for instance, will have enough resources to fund expansion projects. The hotel can invest its finances to create a chain of hotels and increase its market share.
The financial strength also dictates the marketing strategy the hotel implements to survive in the market place. A restaurant with a strong financial base can employ low-cost leadership approach to ensure it improves its market share. A hotel can engage in brand franchising if it has the financial muscle to fund the franchising practice.
The financial resource of the hotel, therefore, ought to be well managed to ensure that the firm retains its competitive advantage. Mismanagement of this valuable resource will not only affect the financial aspect of the hotel but the running of the as a whole will suffer.
Human resource.
Human resource is the organization most valuable resource. Organizations strategic objectives are set in line with the organization’s human resource capacity. Managers, therefore, work to meet these objectives through people. Proper human resource management practices affect human behaviour within the organization and thus affecting the overall employee productivity.
A hotel benefits a lot from a loyal skilled employee. To achieve employee loyalty, therefore, the hotel must invest in improving job satisfaction on the part of the employee.
Job satisfaction can be improved through various approaches such as; employee training, employee motivation and proper job designing. Among the benefits that the firm enjoys due to proper human resource management include;
Reduced employee turnover.
Employee turnover is very costly for a hotel as it will need to fill the vacant position with qualified personnel to ensure that quality standards are maintained. When an employee leaves a facility the firm losses on the investment made during employee development such as training. The hotel will have to invest further on a new employee to ensure that their performance matches the hotel quality standards. These unnecessary costs can be avoided if proper HR management practices were implemented to reduce employee turnover.
Increased customer satisfaction due to a good employee-customer relationship.
The employees-customer relationship is very essential as far as the organizations’ objectives are concerned. Satisfied employees engage in the internal marketing of the hotel services through their service delivery as well as their interaction with the customers. Dissatisfied customers, on the other hand, will interact poorly with the customer leading to customer dissatisfaction. The hotel management must ensure that the employees are satisfied with their job since it will directly affect customers satisfaction.
High employee productivity.
Proper human resource management leads to increased employee productivity. Through employee development, for instance, the employees will undergo training on job performance. Due to the training, the employees will receive the necessary skills which will improve their productivity.
Good human resource practices also entail proper job designing. Through job designing the performance, hindrances are eliminated from the production process thus ensuring employee productivity is enhanced.
Proper job designing also help reduce time wastage during the production process and thus promoting production efficiency.
Another function of the human resource department is catering to employees’ welfare. Through this, the management seeks to create an enabling environment for the employee to carry out their duties. Through the creation of such an environment, the employees are motivated to perform better thus enabling the hotel facility to meet its operational objectives.
Technology
The world has become a global village due to the advancement of the technology which links global producers to the global market. Any firm wishing to remain competitively relevant ought to invest in the right technology else it will be left out. A firm technological resource is a competitive strength which boosts the firms’ competitive position.
In the hospitality industry technology has been had been adopted to aid in various facets from production to distribution of goods and services offered. A hotel must work to protect its technology base to ensure that it remains up to date. In the distribution sector, for instance, many hotels have linked with the Global distribution system and the Central reservation system to boost the sale of hotel services. Any hotel which fails to adjust to the current trend will end up losing out on business and this might trigger a business failure (Olsen, 2011).
Through innovations, many hotels have come up with new approaches to handling operational challenges in the hospitality sector. The innovation in return gives the hotel a competitive advantage over the competitors. Hotel with a strong financial base has been able to invest in Property Management System (PMS) which promotes flawless operations within the hotel facility.
Adopting a technology which the competitor has not invested in or cannot achieve will help a hotel facility improve on guest experience which in return boost the guest’s satisfaction. The firm must, therefore, ensure the technological idea is protected to retain the competitive advantage.
Technology adoption in the hotel has several benefits which includes;
Increased efficiency
Improved guest experience.
Improved recruitment
Reduced operational overheads.
Increased efficiency and improved guest experience.
Through the adoption technology, the operation process is redesigned to a more efficient process. the operational barriers encountered when using the manual process are also reduced. When a given hotel has adopted such technology it ought to protect the idea from its competitor to ensure that it retains the competitive advantage. Operating an integrated PMS system, for instance, improves the operational efficiency and thus the technology behind the integration ought to be maintained up to date.
Through PMS the guest experience in the facility is enhanced. The technology ensures a flawless flow of operations from check-in to check out thus boosting the guest experience while at the facility. When the guest experience surpasses or matches the guest expectation then guest satisfaction is enhanced. Any technology which enhances customer satisfaction in the hotel must be protected for the sake of the hotels’ success.
Brand reputation.
Good brand reputation is a must-have intangible asset for any firm which wishes to realize its operational objectives. Brand reputation enhances brand positioning since it affects the brand image. A reputation can be based on the quality of goods and services offered by a firm or the philanthropic practices of the firm among other factors.
Brand reputation is a combination of several issues which come into play during service encounter, especially in the hospitality sector. A firm must ensure that the operations run flawlessly to ensure the brand image doesn’t get distorted at any given point. A visitor, for instance, can check-in into a facility, enjoy flawless operations during the stay but the checkout process becomes hectic. The inconvenient check out process will affect the hotel’s image thus harming the firm’s reputation. Poor brand reputation can lead to business failure.
Many benefits accrue to firm with good brand reputation. These benefits include;
Customer loyalty.
Good brand reputation makes the customer trust the firm’s capabilities as far as their delivery promises are concerned. Due to the image created on the customer mind during the first purchase of the firms’ product. The initial purchase creates a foundation upon which customer expectations will be based during future purchase.
Through customer loyalty, a hotel has a guaranteed market share which boosts its competition in the market. Brand reputation, therefore, is a vital resource which ought to be maintained effectively since it guarantees repeat business.
Employee retention.
Employees like being associated with brands whose reputation is good. Having a good reputation, therefore, will enable the firm to save on recruitment cost by promoting employee retention. Through retention, therefore, the quality of service delivered is also maintained.
QUESTION 1. (b)
- b) Identify 2 management styles that managers use and comment on their advantages and disadvantages.
INTRODUCTION
Management as well defined by Taylor is an art of knowing what do to, when to do it, and see it is done in the best and cheapest way (Taylor,2004). usually, it involves a problem-solving process that is achieved through the effective achievement of the organizational objectives and efficient use of the scarce the resources in a continually changing environment.
There are three management styles. These are discussed below;
Autocratic style
Under this we have the following;
Authoritative style
Persuasive style
Democratic style
Under this style we have the following;
Consultative style
Participative style
Collaborative style
Laissez-faire
Under this we have the following;
Delegative style
Autocratic style.
Autocratic is one of the most controlling style and mostly used all management styles. Here the top managers make all the decisions in the workplace and the communication is done in a top-down way to the employees. The workers’ contribution or the concern towards the work is no longer paid attention to or considered. The roles and the task of every employee are drawn down and they are expected to follow then without any question as they are continuously supervised so that to ensure all is per the order. Particularly this type of style is used in cases where the hierarchical structure of management is used which involve making of decision depending on the position that you are in the hierarchy (Hersey, Blanchard, & Johnson, 2007).
Advantages of autocratic style
The decisions making is faster.
Since the opinion of the worker is no longer put int consideration the way forward needs less consideration hence faster to decide what to do. For example, the emergence of another similar product with the same as their they won’t involve the production team to change on the product design but they will consider what is best for them, hence faster decision.
Leadership gives strong motivation and satisfaction to the manager who dictates terms
The managers feel satisfied whenever they are giving order to the subordinate who are required to follow them. One may feel key and also respected especially when it comes to commands.
The role of every employee is clearly defined
What the employee is expected to do is clearly written down and also informed on how to it and the result expected from it.
The employees are also given clear direction towards any given task.
There is no misinterpretation of the information since the given order is from the superior and there is no input from the subordinate is required.
There is confidential matter and records are kept in private.
Since there is no involvement of the subordinate in any of the decision then you find that there will be keeping of confidential matters by the managers or the concerned team alone hence no disclosure of the information.
Disadvantages of autocratic style
There is low morale.
The employees usually feel useless and devalued when their opinions toward the organization are not considered.
There is inadequate of employees’ development.
Where the is lack of employees’ involvement in decision making, then the workers are not able to develop some of the leadership skills and still fail to work well under no supervision.
A poor relationship between management and staff.
In this case, the employees are expected to follow orders from the superior without any question so the interaction of the employees with the managers to give their input is minimized. The basic
Subordinates are not informed about why they are asked to do a particular work
The purpose of each entitled job to the workers is not given by the management but only follow what they are authorized to do.
Organizational continuity is threatened.
Where the leader may not be available to supervise and do the other management issues you find that the product will affect not only the quality but also the quantity since the freedom to the employees will now be enhanced hence poor performance.
There are also some of the styles which are under autocratic style. These are also discussed below
Authoritative style
This is the style of management where the manager dictates the policies and procedures then decides on what objectives or the goals are to be achieved and then give the direction while controlling all the activities without any attention to participation by the subordinate. There is little trust and confidence with the employees under this style of management since they are unskilled and requires continuous supervision to avoid minor mistakes.
Advantages of the authoritative style of management
There is faster in making the anti-crisis decisions
The managers have absolute responsibility in every task being done.
The manager has also clear and well-defined criteria to reach their goal
The leaders have also an accurate vision of the overall state of the affair
Always success is on the current task assigned
Disadvantages of the authoritative style of management
Management under this style usually does not guarantee a large scale result in the long run.
There is also a continuous decline in labourers initiatives.
Since no worker is qualified in the field that he does operate, then there is dissatisfaction of these workers.
Sometimes there is an unhealthy psychological climate in the team.
Since the decisions made are faster, you find that there is an increase in wrong decisions.
Persuasive style
This is the style of management where the managers make all the decisions for the workers need then convince them that the decisions were made in the best interest of the team. It establishes a high level of trust between the management and the staff. It is most applicable when one knows more about the subject matter than the employees or the team that you are leading and one (leader) can communicate his or her thought effectively and give out why it is important to them.
Advantages of persuasive style
One can make quick decision hence increase in productivity.
There will be no misleading confusion to the corporate hierarchy
There is also an increase in creativity and hence professional freedom is enhanced.
This is a better reaction someone can get since it is based on one’s thought hence less questionable.
It also works better with the passionate team who know well what they are doing and the product they expect back.
Disadvantages of the persuasive style of management.
Even if the team support you or the plan was flawed if the result does not fully satisfy the management, the blame will always be on you.
Since one is expert in his thought, then you are expected to make the decision and also plan on the subject matter which requires a lot of attention if one is no longer helped.
Without building the relationship with the team on the foundation then you find that the success will not be easy to achieve hence the style won’t be effective.
Persuasive is not a style for everyone and for every situation that occurs. It requires someone passionate, knowledgeable and also trustworthy for one to succeed.
Democratic style of management
This is the style of management where the management receives all the input from the employees and the be responsible for the final decision. All the ideas and contribution from the employees are encouraged and communication involved in management style is from both sides. (this means from top to bottom and from bottom to the top
Employee ideas and contributions are encouraged, but not necessary. Communication is both top-down and bottom-up and makes for a cohesive team.
This type of style is versatile with the advantages of being more diverse perspectives involved in decision making. As employees are being taken into account before the manager makes decisions, the employees feel valued which increases motivation and productivity.
Disadvantages of the democratic management style are the time it takes to decide due to the gathering of ideas and opinions. There is also the potential conflict of different viewpoints playing a role in the decision making and as a result, employees can feel less valued if their input is not taken, leading to decreased morale and productivity.[1]
Consultative style
This is the type of management style where trust and confidence are placed in the employees and management actively seeks out their opinions.
Advantages of Consultative style of management Consultative Strengths
A greater pool of ideas.
Through this approach, a pool of ideas is created from which the decision will be made. The decision made based on this approach are hybrid as it incorporates ideas from a variety of sources.
Higher job morale.
The employee feels appreciated and recognized by the firm. Due to this, therefore, their job morale is increased leading to job satisfaction.
It enhances on-job training.
Every employee in the firm is exposed to training on management role indirectly. Through the avenue provided employees to gain the courage to handle a future management role.
Disadvantages of the consultative style of management
Time-consuming
When the approach is used in management a lot of time is consumed before the final decision can be made. Due to this challenge, therefore, the approach cannot be employed in times of crisis. Interdepartmental conflict can also limit the applicability of the approach especially when there arises superiority battle
Can be a source of conflict.
Not all suggestions are considered during decision making even though many of the suggestions are given on open platforms.
Due to this, therefore, a conflict can arise when one party idea is incorporated while their colleagues’ ideas are left out. The affected employee will feel ignored and may not give any opinion in the future when required to thus affecting the future implementation of the approach.
Employees opinions may not be necessarily based on knowledge.
The decisions made based on this approach may turn out to be ineffective. This is because the idea given may not effectively tackle the problem at hand.
References
Hersey, P., Blanchard, K. H., & Johnson, D. E. (2007). Management of organizational behaviour (Vol. 9). Upper Saddle River, NJ: Prentice-Hall.
Olsen, E. (2011). Strategic planning kit for dummies. John Wiley & Sons. Kanigel, R. (2005).
Taylor, F. W. (2004). Scientific management. Routledge.