Introduction to Hospitality Unit VII

Jantell

UnitVIIChapter15.pdf

Home >Human Resource Management homework help > Introduction to Hospitality Unit VII

Planning

Chapter 15

John R. Walker

Introduction to Hospitality, 6e and

Introduction to Hospitality Management, 4e

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

What is Planning?

• Planning involves selecting the various goals

that the organization wants to achieve and the

strategies (actions) to be taken to ensure that

those goals are accomplished.

• In organizations, executives determine where

the organization is and where it wants to go.

Goals are established for each of key operating

areas.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

What is Planning

• Key Operating Areas are:

– Guest satisfaction

– Employee satisfaction

– Productivity

• All managers do some form of planning,

whether informal or formal.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

What is Planning

• Informal planning is often done at the last

minute, and there is little or no sharing of goals

and strategies with others in the organization

• Formal planning occurs when specific goals

covering a period of up to several years are

identified and shared with all associates, and

strategies are developed stating how each goal

will be reached.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

What is Planning

• Planning can also help identify potential

opportunities and threats.

• Planning helps facilitate the other functions of

management—organization, decision making,

communication, motivation, and especially

control—because planning establishes what

needs to be done and how it is to be done, and

control looks at how well we have done

compared to how well we expected to do

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

The Purpose of Planning

• Planning gives direction not only to top

management but to all associates as they focus

on goal accomplishment.

• The purpose of planning is to determine the best

goals and strategies to achieve organizational

goals

• Top executives do most of the strategic planning

and first-line managers do most of the

operational planning.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

The Purpose of Planning

• Planning provides the road map of where the

organization is going.

• Planning also helps coordinate the efforts of

associates toward goal accomplishment.

• Planning assists in risk reduction by forcing

managers to look ahead and anticipate change

so they can plan scenarios to react to those

potential changes

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Hierarchy of Planning in Organizations

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Strategic Planning

and Strategic Management

• Strategic planning creates the long-range

plans that steer an organization toward its goals

in the accomplishment of its mission and vision.

• The strategic planning process involves top

management, who, in simple terms, identify

where the organization is and where it wants to

go.

• There is a strong link between strategic planning

and strategic management.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Strategic Planning

and Strategic Management

• There are three main strategic management

tasks:

– development of a vision and a mission statement

– translating the mission into strategic goals

– crafting a course of action to move the

organization to where it wants to be

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Strategic Planning

and Strategic Management

• The difference between strategic planning and

strategic management is that strategic

planning is a systematic process whereby the

top management of an organization charts the

future course of the enterprise.

• Strategic management is the process of

guiding the organizational strategic plan and

acquiring the necessary resources and

capabilities to ensure successful

implementation of the plan

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Strategic Planning

and Strategic Management

There are six steps to strategic planning:

1.Build your vision.

2.Understand your customers.

3.Examine your operating environment.

4.Determine the key issues.

5.Identify strategies for the future.

6.Create your action plan.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Strategic Management Process

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Strategic Planning Process

• Most of the strategic planning that takes place at

the top management level is called corporate-

level strategy

• It begins with identifying the organization’s

mission, goals, and objectives.

• It then goes on to analyze the environment and

the organization’s resources and to identify

strengths, weaknesses, opportunities, and

threats.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Corporate-Level Strategies

There are three corporate strategies:

1.Growth: market penetration, geographic

expansion, product development, and horizontal

integration

2.Strategic alliances and joint ventures

3.Diversification

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

SWOT Analysis

• SWOT analysis is used to assess the company’s

internal and external strengths and weaknesses,

seek out opportunities, and be aware of and

avoid threats.

• It is conducted in comparison with a company’s

main competitors.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Environmental Scanning

• Environmental scanning is the screening of large

amounts of information to anticipate and

interpret changes in the environment.

• Environmental scanning creates the basis for

forecasts.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Forecasting

• Forecasting is the prediction of future outcomes.

• Information gained through scanning is used to

form scenarios.

• These establish premises for forecasts, which

are prediction of future outcomes.

• The two main types of outcomes that managers

seek to forecast are future revenues and new

technology breakthroughs.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

How do Manager’s Plan?

• Operational plans are generally created for

periods of up to one year and fit in with the

strategic plan

• Most hotel, restaurant, and other hospitality

managers plan for periods from hourly, daily,

weekly, monthly, and up to 90 days

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

How do Manager’s Plan?

There are seven steps in operational planning:

1. Setting goals.

2. Analyzing and evaluating the environment.

3. Determining alternatives.

4. Evaluating alternatives.

5. Selecting the best solution.

6. Implementing the plan.

7. Controlling and evaluating results.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Operational Goal Setting

• Goal setting is the process of determining

outcomes for each area and associate.

• No one can work effectively without specific

goals and monthly evaluation reports to gauge

whether the effort is moving toward goal

accomplishment, or whether adjustments must

be made to change course.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Operational Goal Setting

• Another example of goals is productivity goals

that measure the amount of labor required to do

a task.

• Productivity is measured in labor costs, which

are expressed as a percentage of sales, for

each department

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Management Concepts

and Approaches

• Management by objectives (MBO) is a

managerial process that determines the goals of

the organization and then plans the objectives,

that is, the how-to’s of reaching the goals.

• With MBO, associates usually establish the

goals and objectives and review them with

management.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Management Concepts

and Approaches

• Total Quality Management (TQM) not only

involves planning but also touches on the other

functions of management, the idea of improving

efficiency and increasing productivity while

placing a larger emphasis on quality.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Management Concepts

and Approaches

• Benchmarking identifies the best way of doing

something and which companies excel in that

area (best practices companies).

• The best practice is noted and emulated or

improved on by other companies.

• Successful companies sometimes swap

information.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Policies, Procedures, and Rules

• Policies, procedures, and rules are examples of

standing plans.

– Policies set broad guidelines for associates to use

when making decisions.

– Procedures specify what to do in given situations.

– A rule is a very specific action guide that must be

followed.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Budgeting

• A budget is a plan allocating money to specific

activities.

• There are budgets for revenues (sales) and

costs (expenses) for capital equipment—

equipment that has an expected life of several

years

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Scheduling

• Scheduling associates is a planning activity that

involves taking the business forecast and

allocating an appropriate number of staff to give

the necessary level of service

• The hospitality industry, in order to keep costs

down and remain competitive, uses a large

number of part-time employees

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Project Management

• Project management is the task of getting the

project completed on time and within budget.

• Hospitality companies are using project

management because the approach fits well

with the need for flexibility and rapid response to

market opportunities

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Trends

• Planning needs to be done on time, yet

methodically to keep pace with rapid

environmental/global changes.

• Technology, especially the Internet, can be used

to overcome time and distance, allowing for

more people to have input into the planning

process.

• Associates can contribute to the planning

process online instead of going to meetings.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

The End