An Empirical Analysis of Performance Impacts Resulting From Conversion to Franchise Operations

Franchising is an important form of organizational control. Possible benefits of franchising include its ability to reduce agency costs that increase with costly monitoring, and provide incentives for the use of local information by onsite managers. However, these benefits may come at a cost, as franchisees may reduce quality by choosing to free ride. While many studies have investigated the reasons for franchising, few studies have documented the impacts of franchising on unit level operating performance. Using time-series data from a number of lodging properties that were converted to franchisee control from company control, this study documents the performance impacts of franchising. The analysis reveals that conversion results in a modest decline in financial performance and an immediate sharp decline in quality.

Give and You Shall Receive: Investing in the Careers of Women Professionals

Purpose – The purpose of this paper is to explore what organizations can do to facilitate the retention and advancement of women professionals into top leadership positions. A social exchange framework is applied to examine ways organizations can signal support for and investment in the careers of women professionals, and ultimately the long-term work relationship. Design/methodology/approach – This paper employed a qualitative methodology; specifically, semi-structured interviews with 20 women executives, in primarily the US hospitality industry, were conducted. The interviews were recorded, transcribed, and content analyzed. Findings – Organizations are likely to strengthen the retention of their female professionals if they signal support through purposeful, long-term career development that provides a sightline to the top, and ultimately creates more female role models in senior-level positions. Organizations can also signal support through offering autonomy over how work is completed, and designing infrastructures of support to sustain professionals during mid-career stages. Findings are used to present a work-exchange model of career development. Research limitations/implications – This research is an exploratory study that is limited in its scope and generalizability. Practical implications – The proposed work-exchange model can be used to comprehensively structures initiatives that would signal organizational support to – and long-term investment in – female professionals and enable them to develop their career paths within their organizations. Originality/value – Through offering a work-exchange model of career development, this paper identifies components of organizational support from a careers perspective, and highlights the factors that could potentially contribute to long-term growth and retention of women professional

Highlights from the 2016 Sustainable and Social Entrepreneurship Enterprises Roundtable

The April 2016 Sustainable and Social Entrepreneurship Enterprises roundtable brought together over 20 faculty, students, and leaders and entrepreneurs from a wide variety of mission-driven enterprises that focus on sustainability or social welfare. Jeanne Varney, lecturer at the School of Hotel Administration, opened the day by inviting attendees to speak to and even test some of their innovative ideas on fellow participants during the day. Varney noted: “One of our goals for the roundtable was to have a really diverse set of attendees and to hear a lot of different perspectives.”

Innovations in Hospitality Human Resources: Cases from the U.S. Lodging Industry

[Excerpt] Today’s hospitality and tourism companies face complex, dramatically shifting challenges, most notably the need to compete for increasingly sophisticated customers in a global, fluid marketplace. To attract and retain the loyal cadre of customers that will ensure the organization’s success, service companies such as hospitality organizations must employ technologically advanced, yet margin sensitive, product and pricing strategies and practices that will differentiate themselves to their intended market. Even more importantly, these service organizations need to devise strategies that will capture and retain the most important yet, from a financial perspective, unrecognized asset on the balance sheet: the employees that design and deliver the service to the customer base. Human resource strategists (i.e. Becker & Gerhart, 1996; Cappelli & Crocker-Hefter, 1996; O’Reilly & Pfeffer, 2000; Pfeffer, 1998; Ulrich, 1997), including those who take a hospitality perspective (i.e. Baumann, 2000; Hume, 2000; Worcester, 1999) advocate a renewed attention to the investment in employees or “human capital” as a source of strategic competitive advantage.

Unifying Services Marketing and Operations with Service Experience Management

One of the pioneer firms in the leisure cruise industry embarked on a bold idea in 2000 to offer an unregimented experience unlike most cruises. Despite the appeal of the concept from a marketing perspective, the service innovation posed operational challenges, many of which continue to undermine the firm’s competitive position. Using a multi-method empirical approach and interdisciplinary views that draw on research from marketing and operations management, the authors analyze this business case to identify challenges that service firms face when services are developed and managed from siloed functional perspectives. Based on their research findings and guided by the literature, the authors derive a service-systems model to aid service planning and management. The authors further highlight a new organizational form and function for services under the domain of service experience management that is positioned as a means to unify service operations and marketing for delivering on service promises. The authors offer direction for further research on service operations systems and service experience management.

Shift Scheduling in Services When Employees Have Limited Availability: An L. P. Approach

This paper compares two linear programming (LP) models for shift scheduling in services where homogeneously-skilled employees are available at limited times. Although both models are based on set covering approaches, one explicitly matches employees to shifts, while the other imposes this matching implicitly. Each model is used in three forms—one with complete, another with very limited meal break placement flexibility, and a third without meal breaks—to provide initial schedules to a completion/improvement heuristic. The term completion/improvement heuristic is used to describe a construction/ improvement heuristic operating on a starting schedule. On 80 test problems varying widely in scheduling flexibility, employee staffing requirements, and employee availability characteristics, all six LP-based procedures generated lower cost schedules than a comparison from-scratch construction/improvement heuristic. This heuristic, which perpetually maintains an explicit matching of employees to shifts, consists of three phases which add, drop, and modify shifts. In terms of schedule cost, schedule generation time, and model size, the procedures based on the implicit model performed better, as a group, than those based on the explicit model. The LP model with complete break placement flexibility and implicitly matching employees to shifts generated schedules costing 6.7% less than those developed by the from-scratch heuristic.