Participative Budgeting and Participant Motivation: A Review of the Literature

In their discussion - Participative Budgeting and Participant Motivation: A Review of the Literature - by Frederick J. Demicco, Assistant Professor, School of Hotel, Restaurant and Institutional Management, The Pennsylvania State University and Steven J. Dempsey, Fulton F. Galer, Martin Baker, Graduate Assistants, College of Business at Virginia Polytechnic Institute and State University, the authors initially observe: “In recent years behavioral literature has stressed the importance of participation In goal-setting by those most directly affected by those goals. The common postulate is that greater participation by employees in the various management functions, especially the planning function, will lead to improved motivation, performance, coordination, and functional behavior. The authors analyze this postulate as it relates to the budgeting process and discuss whether or not participative budgeting has a significant positive impact on the motivations of budget participants.” In defining the concept of budgeting, the authors offer: “Budgeting is usually viewed as encompassing the preparation and adoption of a detailed financial operating plan…” In furthering that statement they also furnish that budgeting’s focus is to influence, in a positive way, how managers plan and coordinate the activities of a property in a way that will enhance their own performance. In essence, framing an organization within its described boundaries, and realizing its established goals. The authors will have you know, to control budget is to control operations. What kind of parallels can be drawn between the technical methods and procedures of budgeting, and managerial behavior? “In an effort to answer this question, Ronen and Livingstone have suggested that a fourth objective of budgeting exists, that of motivation,” say the authors with attribution. “The managerial function of motivation is manipulative in nature.” Demicco, Dempsey, Galer, and Baker attempt to quantify motivation as a psychological premise using the expectancy theory, which encompasses empirical support, intuitive appeal, and ease of application to the budgetary process. They also present you with House's Path-Goal model; essentially a mathematics type formula designed to gauge motivation. You really need to see this. The views of Argyris are also explored in particular detail. Although, the Argyris study was primarily aimed at manufacturing firms, and the effects on line-supervisors of the manufacturing budgets which were used to control and evaluate their performance, its application is relevant to the hospitality industry. As the title suggests, other notables in the field of behavioral motivation theory, and participation are also referenced. “Behavioral theory has been moving away from models of purported general applicability toward contingency models that are suited for particular situations,” say the authors in closing. “It is conceivable that some time in the future, contingency models will make possible the tailoring of budget strategies to individual budget holder personalities.”

Interactive Video Instruction: A Training Tool Whose Time Has Come

Training employees in the hospitality industry to meet guests' expectations is a critical element to success. Unfortunately, this element is often ignored. This article explores an exciting training method (interactive video) and its advantages over other training approaches.

Drugs In the Workplace: A Manager's Guide

Drugs in the workplace is a growing problem that threatens a valuable human resource - the employee. Managers in the hospitality industry can take a proactive stance in meeting the problem head on. The authors discuss what managers can do.

Application of a PERT-Type System and "Crashing" in a Food Service Operation

A pert-type system, a combination of the program evaluation and review technique (PERT) and the critical path method (CPM), might be used by the hospitality industry to improve planning and control of complex functions. The author discusses this management science technique and how it can assist.

Casino Gaming in the U.S.: Past, Present, and Future

The casino segment of the hospitality industry is experiencing unprecedented growth. As a result, many academics and practitioners alike cannot stay abreast of developments in the field. The author addresses the situation by providing an overview of casino development in the United States from an historical perspective, a review of current developments, and some predictions about the future.

Freestyle Cruising: A Clear Alternative

The cruise industry is a highly complex, but under-research component of the hospitality industry. This article seeks to explore the paradoxical relationship between shipboard and shoreside operations using the McKinsey 7S Framework, thereby providing a foundation for further inquiry. Recommendations are made for practitioners, and ideas are provided for future research.

Shipboard vs. Shoreside Cruise Operations

The cruise industry is a highly complex, but under-researched component of the hospitality industry. This article seeks to explore the paradoxical relationship between shipboard and shore side operations using the McKinsey 7S Framework, thereby providing a foundation for further inquiry. Recommendations are made for practitioners, and ideas are provided for future research.

Front-of-the-House Computer Systems: A User's Guide

In a previous issue, DL Alan J. Parker presented a case for the smart utilization of microcomputers in the hospitality industry. But what should hotel managers of today look for when utilizing a full scale hotel computer system? This article attempts to aid the hotelier in compiling a series of functions which management should expect from any system chosen

File Control: The Heart Of Business Computer Management

In his study - File Control: The Heart Of Business Computer Management - William G. O'Brien, Assistant Professor, The School of Hospitality Management at Florida International University, initially informs you: “Even though computers are an everyday part of the hospitality industry, many managers lack the knowledge and experience to control and protect the files in these systems. The author offers guidelines which can minimize or prevent damage to the business as a whole.” Our author initially opens this study with some anecdotal instances illustrating the failure of hospitality managers to exercise due caution with regard to computer supported information systems inside their restaurants and hotels. “Of the three components that make up any business computer system (data files, programs, and hard-ware), it is files that are most important, perhaps irreplaceable, to the business,” O’Brien informs you. O’Brien breaks down the noun, files, into two distinct categories. They are, the files of extrinsic value, and its counterpart the files of intrinsic value. An example of extrinsic value files would be a restaurant’s wine inventory. “As sales are made and new shipments are received, the computer updates the file,” says O’Brien. “This information might come directly from a point-of-sale terminal or might be entered manually by an employee,” he further explains. On the intrinsic side of the equation, O’Brien wants you to know that the information itself is the valuable part of this type of file. Its value is over and above the file’s informational purpose as a pragmatic business tool, as it is in inventory control. “The information is money in the legal sense For instance, figures moved about in banking system computers do not represent dollars; they are dollars,” O’Brien explains. “If the record of a dollar amount is erased from all computer files, then that money ceases to exist,” he warns. This type of information can also be bought and sold, such as it is in customer lists to advertisers. Files must be protected O’Brien stresses. “File security requires a systematic approach,” he discloses. O’Brien goes on to explain important elements to consider when evaluating file information. File back-up is also an important factor to think about, along with file storage/safety concerns. “Sooner or later, every property will have its fire, flood, careless mistake, or disgruntled employee,” O’Brien closes. “…good file control can minimize or prevent damage to the business as a whole.”

Database System for Alumni Tracking

In their discussion - Database System for Alumni Tracking - by Steven Moll, Associate Professor and William O'Brien, Assistant Professor, School of Hospitality Management at Florida International University, Professors Moll and O’Brien initially state: “The authors describe a unique database program which was created to solve problems associated with tracking hospitality majors subsequent to graduation.” “…and please, whatever you do, keep in touch with your school; join an alum’ organization. It is a great way to engage the resources of your school to help further your career,” says Professor Claudia Castillo in addressing a group of students attending her Life after College seminar on 9/18/2009. This is a very good point and it is obviously germane to the article at hand. “One of the greatest strengths of a hospitality management school, a strength that grows with each passing year, is its body of alumni,” say the authors. “Whether in recruiting new students or placing graduates, whether in fund raising or finding scholarship recipients, whatever the task, the network of loyal alumni stands ready to help.” The caveat is the resources are only available if students and school, faculty and alumni can keep track of each other, say professors Moll and O’Brien. The authors want you to know that the practice is now considered essential to success, especially in the hospitality industry whereby the fluid nature of the industry makes networking de rigueur to accomplishment. “When the world was a smaller, slower place, it was fairly easy for graduates to keep track of each other; there weren't that many graduates and they didn't move that often,” say the authors. “Now the hospitality graduate enters an international job market and may move five times in the first four years of employment,” they expand that thought. In the contemporary atmosphere linking human resources from institution to marketplace is relatively easy to do. “How can an association keep track of its graduates? There are many techniques, but all of them depend upon adequate recordkeeping,” Moll and O’Brien answer their own query. “A few years ago that would have meant a group of secretaries; today it means a database system,” they say. Moll and O’Brien discuss the essentials of compiling/programming such a comprehensive data base; the body of information to include, guidelines on the problems encountered, and how to avoid the pitfalls. They use the Florida International University, Hospitality database as a template for their example.

E=MC3 Energy Equals Management's Continued Cost Concerns

E=MC³ Energy Equals Management's Continued Cost Concern, is an essay written by Fritz G. Hagenmeyer, Associate Professor, School of Hospitality Management at Florida International University. In the writing, Hagenmeyer initially tenders: “Energy problems in the hospitality industry can be contained or reduced, yielding elevated profits as a result of applied, quality management principles. The concepts, processes and procedures presented in this article are intended to aid present and future managers to become more effective with a sharpened focus on profitability.” This article is an overview of energy efficiency and the management of such. In an expanding energy consumption market with its escalating costs, energy management has become an ever increasing concern and component of responsible hospitality management, Hagenmeyer will have you know. “In endeavoring to "manage" on a day-to-day basis a functioning hospitality building's energy system, the person in charge must take on the role of Justice with her scales, attempting to balance the often varying comfort needs of guests and occupants with the invariable rising costs of energy utilized to generate and maintain such comfort conditions, since comfort is seen as an integral part of the "service," "product," or "price/value” perception of patrons,” says Hagenmeyer. In contrast to what was thought in the mid point of this century - that energy would be abundant and cheap - the reality has set-in that this is not the case; not by a long shot. The author wants you to be aware that energy costs in buildings are a force to be reckoned with; a major expense to be sure. “Since 1973, "energy-conscious design" has begun to become part of the repertoire of architects, design engineers, and construction companies,” Hagenmeyer states. “For instance, whereas office buildings of the early 1970s might have used 400,000 British Thermal Units (BTUs) per square foot year, new buildings are going up that use 55,000 to 65,000 BTUs per square foot year,” Hagenmeyer, like an incandescent bulb, illuminates you. Hagenmeyer references Robert E. Aulbach’s article - Energy Management – when informing you that the hospitality manager should not become complacent in addressing the energy cost issue, but should and must maintain a diligent focus on the problem. Hagenmeyer also makes reference to the Middle East War and to OPEC, and their influence on energy prices. In closing, Hagenmeyer suggests an - Energy Management Action Plan – which he outlines for you.

Human Capital Decisions and Employee Satisfaction at Selected Hotels in India

Understanding the role of human capital is one of the key considerations in delivering and sustaining competitiveness. Managing employees in the hospitality industry is particularly a challenging task as the industry is considered to be labor intensive. High turnover and increasing employee demands are among the problems that are identified as threats to maintaining a strong competitive position. Successful hotels attempt to retain their best employees in an effort to adapt to changing environments and increased competition. Effective hotel human resource systems can produce positive outcomes, through effective employee retention strategies that focus on work force motivation, attitudes and perception. The positive implementation of these strategies can influence and create employee satisfaction. This study aims to focus on the relationship between the mediating variables of motivation, attitudes, perception and their effect on employee satisfaction. These findings are based upon an extensive survey carried out between April 2009 and June 2009 in the small mountainous state of Uttarakhand, located within the Indian sub-continent. Although the area of study is confined to the Kumaon region of Uttarakhand, the authors contend that the findings and implications can be applied to other remote developing tourist destinations in other regions.

Protecting Your Assets: A Well-Defined Credit Policy Is The Key

In - Protecting Your Assets: A Well-Defined Credit Policy Is The Key – an essay by Steven V. Moll, Associate Professor, The School of Hospitality Management at Florida International University, Professor Moll observes at the outset: “Bad debts as a percentage of credit sales have climbed to record levels in the industry. The author offers suggestions on protecting assets and working with the law to better manage the business.” “Because of the nature of the hospitality industry and its traditional liberal credit policies, especially in hotels, bad debts as a percentage of credit sales have climbed to record levels,” our author says. “In 1977, hotels showing a net income maintained an average accounts receivable ratio to total sales of 3.4 percent. In 1983, the accounts receivable ratio to total sales increased to 4.1 percent in hotels showing a net income and 4.4 percent in hotels showing a net loss,” he further cites. As the professor implies, there are ways to mitigate the losses from bad credit or difficult to collect credit sales. In this article Professor Moll offers suggestions on how to do that. Moll would suggest that hotels and food & beverage operations initially tighten their credit extension policies, and on the following side, be more aggressive in their collection-of-debt pursuits. There is balance to consider here and bad credit in and of itself as a negative element is not the only reflection the profit/loss mirror would offer. “Credit managers must know what terms to offer in order to compete and afford the highest profit margin allowable,” Moll says. “They must know the risk involved with each guest account and be extremely alert to the rights and wrongs of good credit management,” he advocates. A sound profit policy can be the result of some marginal and additional credit risk on the part of the operation manager. “Reality has shown that high profits, not small credit losses, are the real indicator of good credit management,” the author reveals. “A low bad debt history may indicate that an establishment has an overly conservative credit management policy and is sacrificing potential sales and profits by turning away marginal accounts,” Moll would have you believe, and the science suggests there is no reason not to. Professor Moll does provide a fairly comprehensive list to illustrate when a manager would want to adopt a conservative credit policy. In the final analysis the design is to implement a policy which weighs an acceptable amount of credit risk against a potential profit ratio. In closing, Professor Moll does offer some collection strategies for loose credit accounts, with reference to computer and attorney participation, and brings cash and cash discounts into the discussion as well. Additionally, there is some very useful information about what debt collectors – can’t – do!

V-Commerce: Vending Machine Technology

A Popular auxiliary service provided by hospitality businesses is automatic merchandising, more commonly known as vending. Recent advancement in vending technology (v-commerce) has changed the way vending machines are monitored, replenished, maintained, and reconciled. As the hospitality industry searches to reduce its reliance on labor intensive processes, automatic merchandising represents and effective way to provide unattended points of sale and service. Smart machines featuring quality products with high levels of auditabile control may me more appealing to the hospitality industry. While a hospitality manager does not need to have knowleds of the vending distribution channel or machine maintenance, it is important to understand available technology and the opportunity it provides for operational efficiencies and revenue enhancement.

Selection Of Students For Hotel Schools: A Comparative Study

In the discussion - Selection Of Students For Hotel Schools: A Comparative Study - by William Morgan, Professor, School of Hospitality Management at Florida International University, Morgan’s initial observation is: “Standards for the selection of students into schools of hospitality management around the world vary considerably when it comes to measuring attitudes toward the industry. The author discusses current standards and recommends some changes.” In addition to intellectual ability, Professor Morgan wants you to know that an intangible element such as attitude is an equally important consideration to students seeking curriculum and careers in the hospitality field. “…breaches in behavior or problems in the tourist employee encounter are often caused by attitudinal conditions which pre exist the training and which were not able to be totally corrected by the unfreezing, movement, and refreezing processes required in attitudinal change,” says Morgan. “…other than for some requirements for level or grade completed or marks obtained, 26 of the 54 countries sampled (48.1 percent) had no pre-selection process at all. Of those having some form of a selection process (in addition to grades), 14 schools in 12 countries (22.2 percent) had a formal admissions examination,” Professor Morgan empirically provides. “It was impossible, however, to determine the scope of this admissions examination as it might relate to attitude.” The attitude intangible is a difficult one to quantify. With an apparent sameness in hotels, restaurants, and their facilities the significant distinctions are to be found in their employees. This makes the selection process for both schools and employers a high priority. Moreover, can a student, or a prospective employee, overcome stereotypes and prejudices to provide a high degree of service in the hospitality industry? This query is an important element of this article. “If utilized in the hotel, technical, or trade school or in the hiring process at the individual facility, this [hiring] process would provide an opportunity to determine if the prospective student or worker is receptive to the training to be received,” advises Professor Morgan. “Such a student or worker is realistic in his aims and aspirations, ready in his ability to receive training, and responsive to the needs of the guest, often someone very different from himself in language, dress, or degree of creature comforts desired,” your author further counsels. Professor Morgan looks to transactional analysis, role playing, languages, and cross cultural education as playing significant roles in producing well intentioned and knowledgeable employees. He expands upon these concepts in the article. Professor Morgan holds The International Center of Glion, Switzerland in high regard and cites that program’s efforts to maintain relationships and provide graduates with ongoing attitudinal enlightenment programs.