Chapter 7 Improving productivity: management by objectives
7.7 Major results areas: restaurant service
• Personnel objectives in recruitment, organization and development. Examples include development of a training program to provide career advancement opportunities for key personnel, and lower labor turnover.
• Community and company relations objectives relating to community involvement.
Examples include improving the local image and local acceptance of the hotel.
• Research, development, and technical objectives in the areas of product, services, and process improvement, new product and new service development, and preventive maintenance. Examples include conducting market research of the community, investigating and reporting on national and international tourism trends, and developing and implementing a program of preventive maintenance.
Remember that employees will relate to objectives involving guest satisfaction much more than to financial objectives. Employees also will be more dedicated to achieving those objectives if they are involved in setting them.
Setting objectives
Once the major results areas are understood, objectives can be set and employees involved in the process.
First, the general manager prepares guest and financial goals for the hotel. These goals are distributed to department managers and supervisors.
Next, supervisors and department managers are asked to list the hotel goals and performance indicators that apply to their department and then list proposed departmental goals, preparing a worksheet for each. (Examples of key performance indicators and a worksheet for departmental goals are given in Exhibit 20 and Exhibit 21.)
The entire group then divides into smaller study groups consisting of people from one department or related departments. One person is elected to speak for each
subgroup. Through discussion, a consensus is reached about the hotel goals that relate to that department and the best performance indicators that apply. The two departmental goals that the subgroup considers the most productive are selected.
Finally, the results of all subgroup discussions are reported back to the entire group.
The procedural dimension
In Quality Service: The Restaurant Manager's Bible, William Martin identified seven facets of the procedural dimension of service. These were defined earlier in this chapter as:
• Flow of service: This refers to making sure there are no bottlenecks in one part of the restaurant that would slow down overall service.
• Timeliness: This means giving service when the customer is ready for it.
• Accommodation: This means designing procedures for the convenience of the customer rather than the restaurant.
• Anticipation: This refers to providing service before the customer has to ask for it.
• Communication: This means ensuring that communication among employees, customers, and management is accurate, thorough, and timely.
• Customer feedback: This refers to actively seeking comments from the customers.
• Supervision: This means coordinating the service to ensure customer satisfaction.
• Quality of service. Methods of measurement include inspections, responses to guest questionnaires, and studies of complaint files and complimentary files.
• House profit before repairs and maintenance
• Operating results compared to forecasts
• Departmental results compared to previous year
• Number of rooms occupied
• Percentage of rooms occupied
• Percentage of double occupancy
• Average daily rate per room
• Number of times average room rate earned
• Total covers served
• Covers served per paying overnight guest per outlet
• Covers or rooms serviced per employee day
• Average check per cover, by outlet, or per meal period
• Comparisons of operating results with economic indicators, price level, or currency exchange; adjusted indices for the country and the city.
• Sales growth by category. Rooms sales, in total and subdivided by category; conferences, food and beverage, outside catering, garage, casino, shops, swimming pool, etc.
• Sales growth by category compared to total sales
• Sales by category or department compared to room sales
• Contract sales by category: airlines, local companies, etc.
• Sales per outlet or on basis of average employee per day
• Ratio of accounts receivable to total credit revenue
• Average collection period
• Accounts written off as bad debts compared to sales charges
• Effectiveness of manpower productivity control system
• House profit before repairs and maintenance per employee-day
• Payroll percentage for the entire hotel and for each department. For operating departments, compare to each department's sales; for non-operating departments, compare to total hotel sales.
• Number of employees (employee-day basis), in total and by department
• Waiting time at outlets for service
• Number of guest questionnaires received per thousand guests
• Total value of inventories
• Inventory turnover and trends in increases or decreases
• Heat, light, and power costs per occupied room
• Maintenance and security of property and equipment using standardized checklists
Table 7.1: Exhibit 20: Key indicators of performance in hotels.
Source: "Participative Management Training," Lodging reprint,
American Hotel and Motel Association, updated, 32, courtesy of Inter-Continental Hotels.
• Testing, evaluating, and reporting on new products, services, facilities, and techniques
• Effects on guests and staff of internal and external building and rehabilitation programs as measured by sales, covers, productivity, guest questionnaires, and letters
• Return on assets utilized
• Improvement in scores in annual executive evaluations of department heads
• Promotion records
• For chain operations, evaluation of marketing cooperation and records of guest referrals
• Number of employees completing manpower development and training programs
• Extent of staff involvement in professional and trade associations and charitable and civic groups
Table 7.1: Exhibit 20: Key indicators of performance in hotels.
Source: "Participative Management Training," Lodging reprint,
American Hotel and Motel Association, updated, 32, courtesy of Inter-Continental Hotels.
1
1.
2.
3.
4.
5.
6.
2
Key performance indicators that apply to my department:
1.
2.
3.
4.
5.
6.
7.
8.
Table 7.2: Exhibit 21: Worksheet for departmental goals. Source: "Participative Management Training," Lodging reprint, American Hotel and Motel Association, undated, 35, courtesy of Inter-Continental Hotels.
3
1.
2.
3.
4.
5.
6.
4
Specifics for accomplishing each proposed department goal:
Goal No. Statement
Key indicators of performance for this goal Who is responsible
What must be done How it will be done When (schedule) Indicated costs Indicated savings
Table 7.2: Exhibit 21: Worksheet for departmental goals. Source: "Participative Management Training," Lodging reprint, American Hotel and Motel Association, undated, 35, courtesy of Inter-Continental Hotels.
The convivial dimension
Martin identified the nine parts of the convivial dimension of service as:
• Attitude: This refers to the way the server communicates through behavior and words.
• Body language: This refers to the use of facial expressions and body movements to express attitude.
• Tone of voice: This refers to the manner in which words are used .
• Tact: This means knowing what to say under different circumstances .
• Naming names: This means calling the customer by name.
• Attentiveness: This means being tuned in to the needs of customers.
• Guidance: This means exhibiting a thorough knowledge of the menu by offering assistance to indecisive customers.
• Suggestive selling: This means describing menu items in such a way that the appeal is enhanced .
• Problem solving: This means gratefully acknowledging a complaint and dealing with it in a way that will ensure its resolution.
It is certainly possible to involve employees at this stage by having them assist in defining the areas that result in excellent service. However, if management feels that it is its prerogative to set the areas of prime concern, employees can be actively involved in the next stage, the setting of objectives.
Setting objectives
In Exhibit 22, the dimensions of service are listed, together with sample behavioral objectives. In all likelihood, management will find that employees who are involved in setting objectives will impose higher standards than if management set the standards itself. Additionally, employees are more likely to accept and meet these objectives if they have been part of the process in setting them.