Management Company: Organizing for Mid-Range Service

Discussion Questions

1.  List some of the important organizational and service factors that the executives of ABC Management should consider before responding to the owners of the three mid-range service properties. Since the hotels are within the mid-range (350-500 rooms), a room director will be needed to supervise the departments that make up the rooms division, another director for the food and beverage department and supervisors in the subdivision under the food and beverage department. Other key members of the management team that should be included are a director of sales and marketing, a controller, and a director of human resources. Other hotel service and organizational factors should also include an executive housekeeper and director of catering as part of the management team. Some of these positions may be limited as some of them can be done by one person. I am a strong believer in department heads. Considering that they are taking in three hotels with a range in size of 350-450 rooms each, it would be best to consider department heads for more control and organization.
2.  Create an organization chart that ABC Management could use to identify management positions for the operation of a 450-room, mid-range service hotel. Aside from the organization chart, briefly describe each management position’s primary responsibilities.

The Primary Duties of each department head are listed below. However, they are not limited. There are just a few items listed. Position

1. Oversees
2. Responsibility
3. General Hotel Manager
4. All departments

• Responsible for maximizing revenues and flow through to GOP to meet or exceed budgeted EBITDA.
• Responsible for the preparation of property budgets and forecasts.
• Manages labor standards and property level expenses to achieve maximum flow through to the bottom line profit.
• Promotes 100% guest satisfaction throughout the property. Instills the 100% guest satisfaction objective to AGM and hourly associates.
• Ensures that all guest-related issues are resolved in a manner consistent with the company’s goals and objectives.
• Recruits qualified applicants. Trains employees in accordance with company standards.
• Motivates and gives direction to all employees.
• Communicates all policies and procedures to entire staff Rooms Division Manger

Front Desk, Uniform Services, Housekeeping

• Train hotel associates/administration
• Communicates all policies and procedures to entire staff Supervise continuous 7 day/week, 24-hour front office operation, night audit and housekeeping operations and assigned staff, including hiring, training, evaluating performance and scheduling work.
• Formulate budgets and prepare monthly revenue/expense forecasts.
• Maintain customer service/satisfaction standards; handle customer service issues.
• Maintain and operate all computer equipment.

Food and Beverage Manager

• Food Production, Restaurants, Banquets, Cocktail Lounge, Room Service
• Check budgets, payroll and food order invoices from suppliers
• Hire and schedules servers, bartenders and other food service employees, assign kitchen staff to cook and preparation tasks and determine service standards for personnel.
• Knowledge of American and ethnic cuisine, food preparation and the costs of purchasing items for particular dishes.
• Plan menus for restaurants and special events like banquets. Sales & Marketing Manager

Sales & Marketing

•  Develops and manages sales/marketing operating budgets.
• Plans and oversees advertising and promotion activities including print, online, electronic media, and direct mail.
• Develops and recommends product positioning, packaging, and pricing strategy to produce the highest possible long-term market share.
• Achieves satisfactory profit/loss ratio and market share in relation to preset standards and industry and economic trends. Controller

Hotel Finances

• Takes ownership for the production of monthly financial and management accounts, budgets and forecasts and to ensures strong financial controls and processes operate throughout the business.
• Manages a designated team, ensuring month-end accounts are prepared in a timely and accurate manner, producing statutory accounts, preparing business budgets and forecasts, managing cash flow and working cross-functionally in order to champion commercial initiatives. Accounting Manager

Payables & Receivables

•  Achieves accounting operational objectives by contributing accounting information and recommendations to strategic plans and reviews.
• Meets accounting financial objectives by forecasting requirements.
• Confirms financial status by monitoring revenue and expenses.
• Maintains accounting controls by establishing a chart of accounts.
• Guides other departments by researching and interpreting accounting policy; applying observations and recommendations to operational issues. Director of Human Resources

Human Resources Department

• Employee services and counseling.
• Employee safety, welfare, wellness, and health.
•  Charitable giving.
•  Organizational and space planning.
•  Performance management and improvement systems.
•  Employment and compliance to regulatory concerns.
• Policy development and community communication.
• Compensation and benefits administration.

 Create an organization chart that ABC Management could use to identify front office positions for the operation of a 450-room, mid-range service hotel. Aside from the organization chart, briefly describe each front office
position’s primary responsibilities.

• Position
• Oversees
• Responsibility
• Front Office Manager

Assistant Front Office Manager, Security Agent, and Reservations Supervisor 

• Is able to effectively interpret financial results in regards to revenues, payroll, costs, and expenses.
• Establish and monitor cost and expense control systems and procedures to achieve budgets.
• Take corrective measures and actions to ensure the highest possible profitability.
• Personally and frequently verify that guests are receiving the best possible service.
• Demanding on service standards as well as hygiene standards.
• Ensures speedy and accurate service at all times. Assistant Front Office Mgr

Front Office Supervisor AM/PM, Front Desk Agent

•  Responsible for employees to project professionalism and are well trained to provide friendly service.
• Periodically inspects rooms to ensure cleanliness and well-maintained rooms.
• Assists the Front Office manager
•  Aware of new market trends and activities of competitors. Security Agent Security of the hotel
• Check doors and stairwells to make sure the locks are secure and no danger is lurking
• Patrols outdoors as well as room hallways and activity areas.
• Response to complaints and calls for help.
• Purchases maintain and monitor security cameras, alarm systems, and other electronic surveillance equipment.
• Escort unruly patrons from the property.
• Administrative Duties.

Reservations Supervisor
Reservation Agent

•  Reserves rooms for guests.
•  Interacts with upper management to inform them of special events or local affairs.
•  Communicated with housekeeping and service staff to share customer concerns and propose resolutions.
• Communicated with the sales and marketing department to develop advertising and promotional campaigns.

Front Office Supervisor

Front Desk

• Reports to Assistant Front Office Manager.
• Overview of the Front Office Department.
• Checklist of all arrival and departures.
•  Handling complaints and issues about the service.
• Welcoming and greeting all guests and the VIP.
•  Bookings and Reservations.
• Supervise the Front Office Staff daily.
•  Schedule employees.

Reservation Agent
Guest Reservations

•  Register guests as they come into the hotel.
•  Inform guests on hotel happenings
• Works as a liaison between guests and maintenance personnel.

Front Office Agent
Guests

• Greets and welcomes guests.
•  Reservations.
•  Cash and Credit Card handling.
• Check guests in.

The above positions may even be trickled down to just a few positions as they can go under one position. For example, the Front Office Agent can do the same tasks as the Reservation Agent. I indicated these just in case ABC Management needed them in order to serve the guests better by splitting up the positions and responsibilities.

Reference

1. About.com. (2008). Retrieved February 2, 2013, from Job Descriptions:http://www.about.com/od/jobdescriptions. Balivet, Bittner, Johnson, Purvis, Raber (1998). Case Studies in Lodging Management.
2. Lansing, MI: Educational Institute of the American Hotel & LodgingAssociation.