Hotel_Management_and_Operations_by_Denney_G_Rutherford,_Michael

431Section 9.3 ᭿ The Causes and Consequences of Turnover in the Hospitality Industry

ipated future performance. The problem with versus process, let us turn our attention to the
both of these philosophies, as we show later in causes of turnover.
this article, is that they are limited. They view
turnover as an event or phenomenon rather ᭤ THE CAUSES OF
than a process. Thus, it is the event that man- TURNOVER
agers must control rather than the process. A
more expansive and probably a more effec- Many researchers (March and Simon, 1958;
tive approach does not focus on the turnover
event per se; rather, it comes from a process Porter and Steers, 1973; Price, 1977; McFillin,
perspective that views turnover as but one Riegel, and Enz, 1986) believe that turnover
outcome of a sequential chain of events. Be- occurs as a result of a complex series of
fore we discuss this notion of phenomenon

Figure 9.2 Model of Turnover

Job Higher Intention to Short-term Retention
Satisfaction Organizational Stay Impact Turnover
Commitment (positive job
Intention to attitudes, etc.)
Job Leave
Events Short-term
Impact
Job Lower (negative job
Dissatisfaction Organizational attitudes, etc.)
Commitment

Personal The model suggests that intent to leave a job is a function of two Ability to
Characteristics interrelated factors: the level of job satisfaction and the degree of Leave
personal commitment to the organization. Intent to leave is used as
a substitute for turnover, because the ability to leave often influences
whether an individual actually leaves a job.

Source: Adapted from McFillin, Riegel, and Enz, 1986.

432 Chapter 9 ᭿ Human Resources Policy Management

factors that influence employee attitudes and model views turnover not as an isolated event
eventually affect employee behavior. Models but as a process. This process views turnover
sometimes oversimplify the processes they as a series of related events, and each of these
represent; however, a model is useful to events can have negative consequences for
provide a reasonable approximation of employees as well as for organizations. A
reality and is, therefore, useful in assisting our closer look at Figure 9.2 demonstrates this.
understanding and predicting outcomes. According to the diagram, turnover results
from negative attitudes toward the organiza-
The model shown in Figure 9.2 uses “in- tion and occurs only if an employee has the
tent to leave” as a measure for actual depar- ability to leave. This means that he or she
ture. Intent to leave is a surrogate or stand-in must have other job options, not need to
measure; however, it has been well substanti- work, or not care to work. If employees have
ated in previous research as a proxy for actual limited or unacceptable options and do not
departure. As the model suggests, intent to re- have the ability to leave the organization,
main in or leave an organization is a function they may adopt other withdrawal behaviors
of two related factors: the level of job satis- such as complaining, absenteeism, poor per-
faction and the degree of an employee’s com- formance, or unacceptable customer service
mitment to the organization. Job satisfaction behavior. This implies that turnover is only
is also influenced by individual personality one choice of a variety of withdrawal behav-
traits and specific job events. If the level of iors available to disaffected employees, and
job satisfaction is high, then the employee’s disaffected employees can act out these be-
commitment to the organization tends to be haviors either as isolated occurrences or as a
strong and he or she will hold positive job at- set of behaviors. Furthermore, the individual
titudes and can be expected to stay on the job. choice of withdrawal behavior depends on a
On the other hand, if the level of job satisfac- variety of other factors such as degree of un-
tion is low, commitment decreases, job atti- happiness, perception of self-worth, and, most
tudes decline, and the employee, if given the importantly, the ability to find acceptable al-
opportunity, leaves the organization. This ternative employment.
gives rise to new areas of concern.
Given this view of turnover, companies
᭤ NEW AREAS OF with high rates of turnover are likely to expe-
CONCERN rience a variety of negative outcomes. One
way to categorize these outcomes is to look at
We previously explored two of the tradi- how they affect individual employees as well
as how they affect the organization in both
tional philosophies that describe how hospi- the short and the long term. Figure 9.3 indi-
tality organizations view turnover. While cates that both organizations and individual
these philosophies point out reasons for or- employees suffer from the effects of high
ganizations to control or reduce turnover, rates of turnover including attendance prob-
they offer a limited perspective of the poten- lems, decreased cooperation, decreased work
tial damage excessive turnover can have. As performance, and even sabotage. In the
we discussed earlier, a more comprehensive longer term, however, the effects are more
systemic and potentially more devastating.

433Section 9.3 ᭿ The Causes and Consequences of Turnover in the Hospitality Industry

For example, high rates of turnover can importance for firms with high turnover rates
worsen existing turnover rates, contribute to is not only who leaves but also who stays. In
system problems such as poor customer rela- some cases, it may be that employees who
tions, and even eventually limit a firm’s ability stay with an organization are not necessarily
to develop and implement strategy. The po- the ones the organization wants to keep and
tential dollar cost of this is incalculable but those who do leave are not necessarily the
potentially enormous. A question of major ones the organization wants to see go. In

Figure 9.3 Effects of Turnover on Hospitality Organizations

INDIVIDUAL IMMEDIATE LONG-TERM
EFFECTS ORGANIZATIONAL EFFECTS ORGANIZATIONAL EFFECTS

Prewithdrawal Withdrawal System Management System Diminished
Attitudes Behaviors Effects Constraints Effects Strategic
Capacity
Decreased job Intentional Increased Increased Who stays?
satisfaction pressure on selection ratio Management
Attendance co-workers to increases Who goes? development
Decreased problems pick up slack turnover
organizational Decreased pool Strategy as
commitment Tardiness Social learning Decreased of promotable environmental
of negative ability to managers enactment
Intent to leave Decreased attitudes develop
cooperation managers Socialization Limited range
Contributes to problems of strategic
Decreased routine system options
work performance problems Norms and goals
Operations
Complaints to Dependence on fixation
co-workers survivors
Managerial
Unintentional Dependence on succession
crossovers problems
Stress and/or
stress-related illness Portable Substitute for
commitment management
Preoccupation with
causes of Culture of Technology
dissatisfaction turnover problems

Inattention Other cultural Operational
influence bureaucracy
Safety problems

434 Chapter 9 ᭿ Human Resources Policy Management

some cases, outstanding employees find the create new customers. The costs associated
organizational environment so dissatisfying with advertising, promotion, and other mar-
they opt to separate from the company, and keting efforts are staggering. Thus it is wiser to
those who remain are those who can adapt to try to retain existing guests than to create new
a dysfunctional environment or those who ones. Furthermore, the longer customers stay
have no choice but to stay. with a company, the more they are worth.
Generally, they buy more, buy more fre-
In addition, there is evidence that exces- quently, and are less price-sensitive. In fact,
sive turnover rates can have a substantial and one management writer (Reichheld, 1996)
negative impact on profitability. Recently, a suggested that decreasing customer defections
great deal of discussion has centered on cus- by as little as 5 points can double profits. With
tomer loyalty and the importance of avoiding respect to the monetary value of customer or
customer defections. Simply put, the argument guest loyalty, several researchers (Heskett
goes something like this. It costs a great deal to et al., 1984) suggested a strong relationship be-
tween employee satisfaction, customer loyalty,
Figure 9.4 The Service-Profit Chain and profitability. They call this concept the
service-profit chain. As Figure 9.4 illustrates,
Increased Profitability & Growth employee retention is a key driver in creating
customer retention and is therefore a critical
Customer Loyalty factor in determining profitability.

Customer Satisfaction The new concerns about turnover dis-
cussed in this section strongly indicate that
the conventional thinking about turnover
may capture just a small portion of its devas-
tating effects. Now let’s look at ways of reduc-
ing turnover.

Perceived Service Value ᭤ WHAT CAN BE DONE?
Employee Retention & Productivity
A study of turnover in the hospitality indus-
Employee Satisfaction
Internal Work Quality try (McFillen, Riegel, and Enz, 1986) found
that hospitality employees in one organiza-
Source: Adapted from Heskett et al., 1994. tion ranked these reasons as the most likely
causes for high turnover rates:

1. Treatment by superiors
2. Amount of work hours
3. Job pressure
4. Scheduling
5. Training

435Section 9.3 ᭿ The Causes and Consequences of Turnover in the Hospitality Industry

6. Fringe benefit packages tention to providing opportunities for ad-
vancement, challenging work, and so forth.
7. Better opportunities elsewhere
In addition to attending to environmental
8. Physical demands of the job factors in the organization, paying attention
to the selection of employees in the first place
A short-term strategy would be for man- goes a long way toward quelling dissatisfac-
agers to focus on these reasons—in other tion and, therefore, diminishing turnover. An
words, working on fair treatment of employees, axiom in the human resource field is that the
creating fair and reasonable schedules, and so goal of selection is not to hire the best-quali-
forth. However, these strategies do not neces- fied employee but rather to hire the best em-
sarily address the causes of excessive turnover ployee for the particular job, the point being
and are likely to have limited effectiveness and that it is important to match prospective em-
to be short-lived. A longer-term solution would ployees to the organization and the position.
take into account the causes of worker dissatis- Similarly, efforts to select employees who will
faction and attempt to deal with these in a com- be successful in a particular job as well as suc-
prehensive and continuous manner. cessful in the organizational culture enhance
the likelihood of their retention. Selection is
Frederick Herzberg (1976) suggests that an important human resource function that is
dissatisfaction occurs as a result of a lack of worthy of substantial effort and care.
what he calls “hygiene factors” and that satis-
faction occurs as a result of what he calls “mo- ᭤ SUMMARY
tivators.” While there is not necessarily any
linkage in the organizational behavior litera- Turnover is a problem of longstanding signif-
ture between job satisfaction and job per-
formance, a substantial body of theory does icance for the hospitality industry. The effects
suggest that satisfied employees adopt pro- of high turnover rates on hospitality busi-
social and, therefore, committed behaviors to- nesses are substantially greater than many ex-
ward the organization. Herzberg says hygiene isting philosophies suggest, and dealing with
factors that can cause dissatisfaction among turnover as an isolated event fails to acknowl-
employees include salary, working conditions, edge its causes and, therefore, is likely to have
fringe benefits, and job security. While paying limited impact as a turnover control strategy.
a fair salary or providing job security de- Comprehensive approaches that attempt, on
creases dissatisfaction, it does not necessarily the one hand, to eliminate sources of dissatis-
create satisfaction in employees. Motivators faction and, on the other hand, to promote
or satisfiers recognized by Herzberg include employee satisfaction and retention have
achievement, recognition, challenging work, greater potential to strengthen commitment
responsibility, and advancement. These fac- and, therefore, encourage a wide variety of
tors, if provided for by the organization, cre- pro-social behaviors that will strengthen or-
ate satisfaction and therefore commitment. ganizational effectiveness, eliminate with-
Thus, hospitality managers who are con- drawal behaviors (of which turnover is one),
cerned about turnover as an insidious disease and, ultimately, contribute to guest loyalty
process should not only take care of the ex- and profitability.
trinsic job factors, such as job security and
salary, they also must pay a great deal of at-

436 Chapter 9 ᭿ Human Resources Policy Management

9.4 C U R R E N T I S S U E S I N H O S P I TA L I T Y
EMPLOYMENT LAW

Suzanne K. Murrmann and Cherylynn Becker

Fairness in the workplace is a significant issue Continual changes occur in laws and regula-
affecting the productivity, loyalty, and com- tions due to amendments to existing laws, en-
mitment employees have to their organiza- actment of new laws, and interpretations
tions. The treatment an employee receives made by courts and regulatory agencies. It is
from his or her supervisor affects the worker’s mandatory for managers to keep up to date
motivation to provide excellent service to with the status of laws that affect their HR ac-
customers, ultimately affecting the bottom- tivities. Even with appropriate legal counsel,
line profits of the organization. Many factors day-to-day activities of supervisors and man-
influence workplace justice. These include the agers are often where organizations run into
voluntary human resource management poli- legal problems. Therefore, it is necessary that
cies that organizations put into place to pro- managers be aware of their legal obligations.
vide fair and equal employee treatment. In
addition, a significant number of federal and Because space does not permit a full dis-
state laws and regulations protect employees cussion of all relevant employment laws, the
from various forms of discrimination, provide following text concentrates on federal laws
employees with certain rights, and specify ac- that have seen significant changes in the last
tions employers must take when hiring and decade as well as those that are forecasted to
managing their workforce. Such laws may change significantly in the next several years
vary in their wording and coverage from state (Flynn, 2000; Goldberg, 1998). They include
to state. However, they generally mirror law sexual harassment and employer liability un-
at the federal level. These laws, which signifi- der Title VII of the Civil Rights Act, the
cantly affect the human resource function in Americans with Disabilities Act, the Family
hospitality organizations, fall under four gen- and Medical Leave Act, and the Immigration
eral categories: Reform and Control Act. A discussion of
these laws and implications for hospitality
• Those governing equal employment and managers follows.
opportunity and nondiscrimination
᭤ SEXUAL HARASSMENT
• Those governing compensation and
working hours In general, sexual harassment is defined as un-

• Those governing the health and safety of welcome sexual conduct in the workplace
workers that is a term or condition of employment.
Complaints of sexual harassment fall under
• Those governing labor relations and col- two categories: quid pro quo and hostile work
lective bargaining (Jackson and Schuler, environment. Quid pro quo harassment is
2000)

The judicial process is a dynamic one.

437Section 9.4 ᭿ Current Issues in Hospitality Employment Law

said to occur when submission to or rejection tinues to be an important discrimination is-
of unwelcome sexual conduct by an individ- sue, particularly with recent Supreme Court
ual is used as a basis for employment deci- rulings (Goldberg, 1998). Two of particular
sions affecting an employee. In other words, note, Burlington Industries v. Ellerth and
when a supervisor demands sexual favors Faragher v. Boca Raton,1 have significantly
from his or her subordinate and either prom- shaped the obligations of hospitality man-
ises an employment benefit, such as a raise or agers. In them, the Court clearly articulated
promotion, or threatens the employee with the liability of employers for the actions of
loss of such benefits, quid pro quo harassment their harassing supervisors. First, in cases in
exists. Such activities may be subtle or overt, which an employee has suffered tangible,
and the employee must show that he or she detrimental employment actions, such as de-
belongs to a protected group, was subject to motion, termination, or loss of benefits, the
unwelcome harassment that was based on his employer is strictly liable regardless of fault.
or her gender, and that acceptance or refusal Strict liability is premised on the fact that the
resulted or could result in tangible changes to supervisors are acting for the employer (com-
the working conditions. pany), and regardless of whether or not the
employer can show it has an antidiscrimina-
While quid pro quo harassment implies tion policy, final responsibility rests with the
an exchange of sexual favors for work bene- company. In cases, however, where the em-
fits, hostile work environment harassment ployee has suffered no loss of tangible job
refers to the overall working environment in benefits, the employer can avoid liability by
which employees function. Hostile work envi- showing that reasonable care was taken to
ronment harassment is conduct that unrea- prevent and promptly correct any sexually
sonably interferes with the ability of an harassing behavior. Documentation that the
employee to perform his or her job properly harassed employee subsequently failed to
or creates an intimidating, hostile, or offen- take advantage of any preventive or correc-
sive working environment. This may be so tive opportunities provided by the employer
even if it does not lead to tangible or eco- further minimizes the likelihood of employer
nomic job consequences. As in quid pro quo liability for harassment charges.
harassment, the activities or conduct in ques-
tion are unwelcome by the employee and are For hospitality managers to protect them-
based on gender. The employee must also selves against charges of sexual harassment,
show that they are sufficiently pervasive and they need to focus on three major areas: (1)
severe as to have caused an abusive working implementation and dissemination of anti-
environment and that the employer is liable harassment and complaint policies, (2) training
for these activities. Typical examples of this of personnel, and (3) complaint investigation.
type of harassment include unwelcome physi-
cal touching; whistling, leering, improper Though the Court has not specifically
gestures, or offensive remarks; unwelcome ruled that companies must have policies
comments about appearance; sexual jokes; specifically targeted to sexual harassment,
and the use of sexually explicit derogatory or many human resource management profes-
otherwise offensive language. sionals feel employers can more easily
demonstrate their “reasonable duty of care”
Sexual harassment in the workplace con- by developing separate antiharassment

438 Chapter 9 ᭿ Human Resources Policy Management

policies. Such policies should explicitly define fense of the employer against liability in court.
sexual harassment, both in terms of quid pro The purpose of such training is to make su-
quo and hostile environment harassment, and pervisors and employees aware of conduct
give specific examples of inappropriate con- that constitutes harassment and provide them
duct. Though this point seems obvious, the with mechanisms for effectively dealing with
policy should also unambiguously prohibit it. Training must be tailored to the individual
such conduct. It should also indicate protec- workplace and take into account the diversity
tion for employees from retaliation for re- of the workforce; however, a number of key
porting harassment. Numerous studies have components should be common to training in
shown that employees are often afraid to re- this area. Though all employees should attend
port inappropriate activities because of fear training, separate sessions should be held for
of retaliation by their supervisors. Managers supervisors and managers to instruct them in
should develop and include in their policy their obligations to subordinates and their re-
multiple avenues for filing harassment com- sponsibilities for investigating harassment
plaints. One such avenue would be to start complaints. The language and the customs of
with the employee’s immediate supervisor; employees should always be taken into ac-
however, an additional route would be to by- count when developing training materials, par-
pass the supervisor and complain to an indi- ticularly when such activities as role-playing
vidual outside of the supervisor’s direct chain are used. Training in the hospitality industry
of command. Assurance of prompt and thor- should take into account the interaction of
ough investigations and privacy are equally employees with third parties such as cus-
important components of an antiharassment tomers and outside vendors. Managers must
policy. be aware that the employer has an additional
duty of care in the area of customer harass-
As necessary as a well-developed and ment of employees, and they should be trained
well-written policy is, it is also important that to delicately but effectively deal with such sit-
the policy be disseminated in such a way that uations. Finally, care must be taken to select an
all personnel in the hospitality organization appropriate resource for carrying out training.
are aware of it. Merely including it in an em- This may be an in-house trainer or an outside
ployee handbook may not be sufficient. Anti- individual or firm. In any case, the individual
harassment policies should be posted in selected should have recognized expertise in
locations regularly visited by employees as the area of sexual harassment.
well as discussed with new employees. This is
especially important in an industry where a The final area of concern for managers is
significant part of the labor pool is composed prompt investigation of harassment com-
of employees who do not read and speak plaints. The employer who fails to document
English as their primary language. The com- fair investigation of employee complaints will
pany should also attempt to keep written more than likely be found liable for harass-
acknowledgment that each employee under- ment. All complaints should be investigated
stands the policy. as swiftly as possible by an unbiased investi-
gator who is sensitive to the privacy concerns
Periodic training in what constitutes sex- of the complainant. If, during the course of
ual harassment is essential for the prevention the investigation, there is sufficient reason to
of misconduct in the workplace and the de-

439Section 9.4 ᭿ Current Issues in Hospitality Employment Law

believe the complainant and the accused conditions, and privileges of employment.”
should be separated, the complainant should The Act has undergone almost a decade of in-
not be assigned to a lesser job. Such action terpretation by the courts, which continue to
could be seen as retaliation for filing a com- refine and define its coverage and the respon-
plaint. Relevant material and information sibilities of hospitality managers. As noted by
should be obtained, in private, from the ac- many professionals in human resource man-
cused and additional witnesses. Based on this, agement, these rulings at times leave as many
immediate and appropriate corrective action unresolved questions as they answer concern-
should be taken by doing whatever is neces- ing employer responsibilities.
sary to end the harassment, to make the em-
ployee whole by restoring lost employment Under the ADA, a qualified individual is
benefits or opportunities, and to prevent the defined as “an individual with a disability
misconduct from recurring. If appropriate, who, with or without reasonable accommoda-
disciplinary action should be taken against tion, can perform the essential function of the
the offending supervisor or employee, rang- employment position that such individual
ing from reprimand to discharge. Generally, holds or desires.”2 There are two questions
the corrective action should reflect the sever- the manager must ask when determining
ity of the conduct. Document the findings and whether an individual is qualified. First, does
subsequent steps taken, if any, and place this the individual satisfy the prerequisites for the
documentation in a confidential investigation position, such as the appropriate educational
file. The Equal Employment Opportunity background, employment experience, skills,
Commission policy guidance on sexual ha- or licenses? Second, can he or she perform
rassment suggests that follow-up inquiries be the “essential functions” of the position with
made to ensure that harassment is not re- or without reasonable accommodation? The
sumed and that the employee does not suffer former is answered by comparing the qualifi-
retaliation. Finally, use what was learned from cations of the individual to job-related re-
these investigations to streamline or cus- quirements and production standards
tomize future training and policy restate- traditional to the industry—for example,
ments in this area to more closely align with number of rooms cleaned per day. When iden-
specific company needs. tifying requirements, employers should use
those used for other employees in the posi-
᭤ AMERICANS WITH tion and not those selected to intentionally
DISABILITIES ACT exclude the disabled person. The latter ques-
tion may be answered by defining the funda-
The Americans with Disabilities Act of 1990 mental job duties of a position in a
well-constructed written job description. Fac-
(ADA) prohibits an employer from discrimi- tors suggested for identifying essential func-
nating against a qualified individual with a tions include the amount of time spent
disability with respect to job application pro- performing the function, the number of em-
cedures, hiring, advancement, discharge, com- ployees available to perform the task, the
pensation, training, and other “terms, work experience of past incumbents and pres-
ent employees in the position, and the conse-
quence of not performing the function. For

440 Chapter 9 ᭿ Human Resources Policy Management

instance, several courts have found atten- like. In other words, the ADA mirrors, to a
dance to be an essential function of the job great extent, the rights of protected groups
because the inability to maintain regular at- under Title VII of the Civil Rights Act. Hos-
tendance creates an undue hardship upon an pitality managers should be aware of a num-
employer.3 ber of issues unique to disability law. An
employer risks violating the ADA by asking
A disability is defined under the Act as about medical conditions and disabilities in a
(1) “a physical or mental impairment that preemployment situation. Questions at this
substantially limits one or more of the major point should be job-related, with inquiry lim-
life activities of such individual,” (2) “a record ited to the applicant’s ability to perform the
of such an impairment,” or (3) “being re- essential functions of the job as described in
garded as having such an impairment.”4 the written job description. Preemployment
Impairments may include physiological disor- medical examinations and tests, with the ex-
ders or conditions, cosmetic disfigurements, ception of testing for illegal drug use, are also
and anatomical loss affecting one or more seen as discriminatory in the hospitality in-
major body systems. Before 1998, it was gen- dustry. The ADA also prohibits disparate
erally accepted that for an impairment to be treatment discrimination—that is, limiting
covered under the definition of a disability, it and segregating employees in a way that af-
needed to be a permanent condition that, if fects their opportunities because of a disabil-
uncorrected, substantially limited a major life ity. A hospitality employer that demonstrated
activity such as walking, seeing, hearing, or a pattern of hiring disabled job applicants for
speaking. Several Supreme Court rulings back-of-the-house, non-customer contact po-
have limited this definition, stating that “an sitions, though such applicants were able to
individual’s corrections, medications, and perform effectively in customer contact posi-
even subconscious mechanisms for coping tions, would be demonstrating potentially dis-
with an impairment are to be considered criminatory behavior. The use of employment
when assessing whether that individual is dis- tests or other selection criteria that are not
abled” and covered under the ADA (Sher- job-related to screen out disabled applicants
wyn, Eigen, and Klausner, 2000). These is prohibited under the ADA. For example, if
rulings, though limiting the definition of a dis- an employer requires an interview that is job-
ability in one respect, in no way clarify the is- related and consistent with business necessity
sue of what is considered a disability, nor may as part of the application process, it would not
they actually limit the number of individuals be legal to reject a hearing-impaired appli-
claiming discrimination if managers continue cant solely because he or she could not be in-
to perceive individuals impaired even with terviewed.5 Finally, failure to reasonably
corrective devices. accommodate disabilities of either job appli-
cants or employees constitutes discrimination
Traditional human resource functions and under the ADA.
employment decisions can be considered dis-
criminatory under the ADA. These include Accommodation for individuals with dis-
such activities as recruiting, advertising, and abilities is at the core of the ADA. By law, rea-
the processing of applications for employ- sonable accommodation mandates employers
ment, hiring, updating, promotion, termina- to accommodate qualified individuals who
tion, compensation, job assignment, and the

441Section 9.4 ᭿ Current Issues in Hospitality Employment Law

can perform the essential functions of a job, commodation by a qualified individual
unless this causes significant difficulty or ex- with a disability.
pense—that is, undue hardship.6 Accommo-
dations can be modifications or adjustments 3. Analyze the particular job to determine
(1) in the job application or testing process its purpose and essential functions. Com-
that allow a qualified applicant with a disabil- municate to the employee your under-
ity to be considered for a position equally standing of the essential functions of the
with other applicants; (2) in the workplace or job and the abilities needed to perform
in the manner or method in which the job is them.
performed that allow the employee to per-
form the job; or (3) that enable the disabled 4. Consult with the disabled individual to as-
employee to enjoy the benefits and privileges certain the precise job-related limitations
of the job equally to those without disabilities. imposed by the disability and how those
Types of accommodations may include but limitations can be overcome.
are not necessarily limited to the following:
5. With the disabled individual’s assistance,
1. Modifications of existing facilities (ramps identify potential accommodations and
and entrances, bathroom facilities, work- assess the effectiveness of each in en-
stations, etc.) abling the individual to perform the es-
sential functions of the job.
2. Job restructuring
6. Consider the disabled individual’s accom-
3. Modified work schedules modation preferences and select and
implement the accommodation most ap-
4. Reassignment to vacant positions propriate for both the employee and em-
ployer. This is a final decision that should
5. Acquisition and modification of equip- be made by the manager.
ment or devices
Given the relative youth of the ADA, it is
6. Adjustment or modification of examina- anticipated that interpretation of even the
tions or training materials most basic areas of the law—for example, the
definition of a disability—will continue to
7. Provision of qualified readers and inter- evolve. There are, however, certain steps that
preters (for preemployment activities, many feel to be appropriate for managers
etc.) (Sovereign, 1999). Facilities should be made
as accessible as possible. This is particularly
The EEOC has issued guidelines for em- true of the hospitality industry, given its pub-
ployers to follow for compliance. Hospitality lic accommodation requirement. Because the
managers should follow these procedures. concept of reasonable accommodation is
Using the interactive process outlined in the based on a clear understanding of the essen-
following guidelines should increase the like- tial functions of the job, well-written job de-
lihood of employees viewing a manager as scriptions are extremely important in
reasonable and concerned about their needs. managing liability associated with the ADA.
With the exception of drug testing, all preem-
1. Notify employees and job applicants of ployment medical inquiries and examinations
the employer’s obligation under the Act
to make reasonable accommodations.

2. Wait for a request for a reasonable ac-

442 Chapter 9 ᭿ Human Resources Policy Management

should be eliminated. Always attempt to ac- for leave, he or she must have worked at least
commodate a qualified disabled individual. A 1,250 hours for the employer. An eligible em-
case of undue hardship can be made after ac- ployee may take unpaid leave for the follow-
commodation is researched. Finally, in orga- ing reasons;
nizations that are large enough to support
service staff, an individual should be desig- • The birth of a child
nated as the ADA resource for other man-
agers and used when accommodations are • The placement of a child with the em-
requested. ployee for adoption or foster care

᭤ FAMILY AND MEDICAL • A serious health condition of a spouse,
LEAVE ACT OF 1993 child, or parent

All hospitality employers with 50 or more • The employee’s own serious health condi-
tion
employees are covered by the Family and
Medical Leave Act of 1993 (FMLA). The The DOL regulations define serious
FMLA was passed in an attempt to balance health condition as any illness, injury, impair-
the demands of the workplace with the family ment, or physical or mental condition that
and medical needs of employees. Employers involves:
both in and outside of the hospitality industry
expressed grave concerns over the impact of • Any period of incapacity or treatment in-
the law on workplace productivity and em- volving inpatient care in a hospital, hos-
ployer compliance. Many of these fears pice, or residential mental care facility
proved unfounded; many, however, were not.
Compliance with the law has proved cumber- • Any period of incapacity requiring ab-
some, given its technical recordkeeping na- sences from work, school, or other regular
ture. Since the enactment of this act, the daily activities of more than three calen-
Department of Labor (DOL), which oversees dar days that also involves continuing
the FMLA, has seen thousands of complaints treatment by a health care provider.
filed and has changed the guidelines and di- (Continuing treatment means either treat-
rectives to comply with dozens of court ment two or more times by a health care
rulings. provider or one treatment that results in a
regimen of continuing treatment. A regi-
The FMLA allows employees up to 12 men of continuing treatment includes only
weeks of unpaid leave during any 12-month those treatments that cannot be initiated
period to deal with family and medical issues. without a visit to a health care provider,
Companies that employ 50 or more people such as taking prescription drugs. It does
(within a 75-mile radius), including part-time not include taking over-the-counter med-
and temporary workers, during each of 20 or ication, nor does it include therapy such
more calendar workweeks in a year are cov- as bed rest, drinking fluids, and exercise.)
ered. In order for an employee to be eligible
• Continuing treatment by a health care
provider for any period of incapacity due
to pregnancy or for prenatal care, or for a
chronic or long-term health condition
that is incurable or so serious that, if not

443Section 9.4 ᭿ Current Issues in Hospitality Employment Law

treated, would likely result in a period of placed in a position equivalent in pay, bene-
incapacity of more than three calendar fits, and other terms and conditions of em-
days ployment. Based on rulings to date,
“equivalent” appears to be construed as
As a general rule, ailments such as the “identical” by the DOL.
common cold, the flu, earaches, upset stom-
ach, minor ulcers, headaches other than A number of significant compliance is-
migraine, routine dental or orthodontia prob- sues cause difficulty for human resource pro-
lems, and periodontal diseases are not seri- fessionals and employment law attorneys.
ous health conditions unless complications Due to their technical nature, they are not dis-
arise. cussed here. However, several issues are wor-
thy of note because they affect hospitality
Employers covered by the FMLA must managers and supervisors in general.
post notice of the Act and their obligations as
well as provide additional information to em- While attendance has been successfully
ployees concerning their entitlements and ob- defended by several employers under the
ligations through standard mechanisms such ADA as an essential function of a job, FMLA
as employee handbooks and manuals. An em- leave absences cannot be used in discipline
ployee requesting leave is required to give 30 and termination decisions. Therefore, it is par-
days notice to his or her employer, if possible. ticularly important in intermittent leave situ-
If such notice is not possible, the employee ations to record the reasons for absences.
must provide “such notice as is practical” so Supervisors should be encouraged to docu-
that the employer has an opportunity to plan ment “verbatim reasons” for absences. This
for the employee’s absence. As little as one to information allows a manager to conduct an
two days’ notice (or less) may be sufficient in “FMLA audit” of employees who may be un-
emergency situations. Employers may require dergoing disciplinary action for excessive
a medical certification, such as a doctor’s absenteeism.
statement, from a health care provider to sup-
port leave requests. Additional opinions con- Though the FMLA does allow for man-
cerning the employee’s condition and agers to require medical certification from
periodic reports from the employee on leave employers for leave purposes, as well as sec-
regarding his or her status and intent to re- ond opinions, overuse of such information
turn may also be required. During the time of could open up liability under the ADA (Shea,
the leave, the employer must continue exist- 2000). Managers must be wary of asking for
ing health care benefits. more medical information than is necessary
for the purposes of granting FMLA leave.
Leave can be taken intermittently or on a Medical certification is a useful tool to em-
schedule that reduces the typical number of ploy if there is doubt about the existence or
hours per workday or workweek when med- extent of an employee’s health condition.
ically necessary. Incremental leave may be However, it is not necessary as long as the ab-
taken in increments as short as one hour. sence has been noted as FMLA leave.

Under the FMLA, the employer is obli- A “serious” health condition under the
gated to place the employee, once returned Act may include many “minor” illnesses
from leave, in the same position he or she left. and conditions of short duration. Absences of
If this is not possible, the employee must be less than three days may also be considered

444 Chapter 9 ᭿ Human Resources Policy Management

legitimate reasons for leave. This is due to the pattern of discriminating against individuals
interpretation of the FMLA-specific wording. based on physical appearance or accent exists
Indeed, many experts in the area agree that (Phillips and Massey, 1999). Such discrimina-
regulations have gone beyond the intent of tion includes the denial of jobs as well as pay-
the legislation in terms of interpreting what a ing lower wages to undocumented workers.
serious illness should be. Managers should be This decrease in pay, below legal minimum, is
aware that, at this point, a liberal interpreta- thought to take place to compensate for the
tion must be placed on this definition. risk involved in being sanctioned under the
Act.
᭤ IMMIGRATION REFORM
AND CONTROL ACT The IRCA requires employers to verify
OF 1986 the employment eligibility of all employees
hired by and working for the organization and
In 1986, Congress enacted the Immigration to complete and maintain eligibility paper-
work. This paperwork, commonly referred to
Reform and Control Act (IRCA) in response as I-9 forms, must be maintained on all em-
to significant increases in undocumented im- ployees, U.S. citizens as well as aliens author-
migration and vocal concerns from unhappy ized to work in the country. The Immigration
voters. This law was an attempt to control un- and Naturalization Service (INS) is charged
documented immigration in a number of with enforcing the IRCA. However, any num-
ways, including the imposition of sanctions ber of other federal agencies, including the
on employers for knowingly hiring un- EEOC, the Justice Department, and the De-
documented workers. In addition, the law partment of Labor, may request a review of
provided for amnesty for undocumented im- the eligibility documentation records of a com-
migrants who could demonstrate a record pany. Employers must verify an employee’s or
of continuous residence in the United States applicant’s identity and eligibility to work by
for a designated period. These regulations, requesting proof of both within three days of
along with increased support for border pa- hire. Documents that can be used to verify
trol activities, were thought to significantly di- identity include a state driver’s license, state
minish the attractiveness of U.S. jobs for or school I.D. card, and a voter’s registration
undocumented workers, thereby protecting card. Eligibility to work may be established
jobs and wages for legal workers in the using a number of documents including a So-
United States. cial Security card, birth certificate issued by a
U.S. state, county, or municipal authority, or
Critics of the IRCA argued that it would an unexpired INS employment authorization.
encourage employers to engage in greater Some documents, such as a U.S. passport, es-
discrimination against U.S. citizens and legal tablish both identity and work eligibility. A
aliens based on their appearance and cultural complete list of all appropriate documents is
background, and safeguards against such dis- provided on the back page of the I-9 form.
crimination were included in its content.
However, several studies to date have shown As mentioned earlier, the Act contains
that even with these safeguards in place, a antidiscrimination provisions that are in addi-
tion to and do not change discrimination un-
der Title VII of the Civil Rights Act. The

445Section 9.4 ᭿ Current Issues in Hospitality Employment Law

IRCA bans discrimination against legal aliens 5. Employers are responsible for reviewing
or people intending to become U.S. citizens. and ensuring that the employees fully and
An alien has employment rights equal to a properly complete Section 1 of the em-
U.S. citizen, unless citizenship is a bona fide ployment verification I-9. Applicants who
occupational qualification. If an alien is au- do not fully complete this section should
thorized to work in the United States, an em- not be hired.
ployer cannot give preference to a U.S. citizen
who is less qualified. 6. Employers must examine the original
documents(s) (the only exception is a cer-
Employers have several responsibilities tified copy of a birth certificate) pre-
under the law: sented by the employee and then fully
complete Section 2 of the employment
1. Employers cannot request more or differ- verification I-9.
ent documents than are required under
the provisions of the law. Though it is of- 7. Employers must keep the employment
ten easier for managers to require spe- verification I-9 for three years after the
cific, approved documentation such as a date employment begins or one year after
driver’s license or Social Security card, the person’s employment is terminated,
they must accept any qualified document whichever is later.
from the I-9 list if it appears to be valid.
In order to avoid penalties under the
2. Employers cannot knowingly use, at- IRCA, hospitality managers should use the
tempt to use, possess, obtain, accept, or re- following checklist:
ceive any forged, counterfeit, altered, or
falsely made documents. It is often ex- • Verify employment status of every person
tremely difficult to identify counterfeit hired.
documents. However, managers should
closely scrutinize the documentation of • Employ only U.S. citizens and aliens au-
all applicants for obvious falsification— thorized to work in the United States.
for example, multiple individuals with the
same or similar Social Security numbers. • Verify employees’ status within three
days of their being hired to work.
3. Employers cannot backdate or otherwise
falsely make I-9 forms appear as if they • Inform each new job applicant, either
are or have been in compliance with the orally or in writing, that you hire only U.S.
IRCA. Individuals responsible for hiring citizens and aliens lawfully authorized to
on an ongoing basis should perform eligi- work in the United States and that you re-
bility verification. Paperwork should be quire all new employees to complete the
kept up to date. designated verification for I-9.

4. Employers must have new employees • Examine documentation presented by
complete Section 1 of the employment new employees, record the information
verification I-9 at the time of the hire by on the I-9, and sign. Retain these docu-
filling in the correct information, signing, ments for three years.
and dating the form.
• Do not ask for proof of citizenship or au-
thorization to work before deciding to
hire the applicant.

446 Chapter 9 ᭿ Human Resources Policy Management

• Do not refuse to offer employment to consider that the 535 members of Congress
anyone on the basis of foreign accent or and the members of 50 state legislatures are
appearance. constantly proposing laws that result in regu-
lation, it is easy to see why HR managers can
• Do not discharge present employees face daunting tasks in assisting the organiza-
based on foreign appearance or language. tion and its managers in staying out of legal
trouble.
The above discussion of these key issues
only scratches the surface of the legal chal-
lenges facing hotel HR managers. When you

CHAPTER 9 ᭿ ENDNOTES

1. Burlington Industries v. Ellerth: 524 U.S. 742; nature and cost of the accommodations
118 S. Crt. 2257 (1998); Faragher v. Boca Ra- needed; the financial resources of the em-
ton: 524 U.S. 775, 118 S. Crt. 2275 (1998). ployer; the size of the company and the num-
ber of its facilities; the financial resources of
2. 42 U.S.C. §1211(8). the facility itself; and the effect of the accom-
3. Tyndall v. National Education Centers: 31 F. modation on the expenses or operations of the
facility, on other employees’ ability to do their
3rd 209 (4th Cir. 1994); Earl v. Mervyns Inc.: jobs, and on the facility’s ability to conduct
No. 99-4264 (11th Cir. 2000). business (ADA Sec. 101[10], 42 U.S.C.
4. 42 U.S.C. §12102(2). 12111[10]; EEOC Sec. 1630.2[p]).
5. 29 CFR Part 1630, Appendix § 1630.15(a).
6. Undue hardship is assessed by reviewing the

9.5 T H E S T R AT E G I C A N D O P E R AT I O N A L
ROLES OF HUMAN RESOURCES—AN
EMERGING MODEL

J. Bruce Tracey and Arthur E. Nathan

Effective human-resources management is concern with human resources, however, the
one of the most important considerations in HR function is oddly disconnected from the
creating and maintaining a competitive ad- line function. That disconnect is evident on
vantage for a hotel (or, for that matter, any two primary levels. First, we argue that many
hospitality organization). Indeed, human- business leaders fail to fully consider HR in-
capital considerations top the list of current fluences when making long-term plans. While
managerial concerns in the hospitality indus- most executives acknowledge the importance
try (Enz, 2001, 38–45). Despite the industry’s of HR for implementing strategic plans—

447Section 9.5 ᭿ The Strategic and Operational Roles of Human Resources—An Emerging Model

“making it happen”—we have seen few who side of the business; HR is a cost center since
formally incorporate HR concerns when de- it does not generate revenue; HR serves as an
veloping a strategic direction. While the pre- administrative-support office and organizes
dominant framework requires consideration the company picnic; and HR is responsible for
of HR strengths and weaknesses during the implementing strategy, not developing strat-
strategy-formulation process, HR is primarily egy. We could go on, but the point is made: hu-
viewed as an “enabling” function, responsible man resources gets much lip service but no
for implementing “the plan,” and thus largely respect.
ignored during the initial planning stages.
One of the reasons for this negative im-
Second, we argue that many HR depart- age may be the narrow application of the
ments fail to execute even the most basic strategic-planning process taken by many
functions effectively. Many firms’ policies and business leaders. Too often, the human-
practices are archaic, inflexible, and do not di- resources function is left out of key planning
rectly benefit those who are most keenly af- steps. The following comment illustrates our
fected by HR actions. Based on those point. A successful hospitality executive and
concerns, we advocate the need for a new colleague of ours maintains that his primary
model of HR—one that should be used as a function is to determine the vision and direc-
guide for developing vision, values, and goals, tion of the firm, and then it’s up to HR and
and one that creates a more effective and ef- other departments to “make it happen.” This
ficient function for attracting, developing, and statement summarizes his views:
retaining quality employees.
HR as a function does not per se have a dedi-
To explain our model, we will first discuss cated role in the strategic-planning process.
the manner in which HR can contribute to the Corporate strategic planning begins with an ex-
strategic-planning process. We then present ternal assessment of opportunities and threats
data that demonstrate the link between HR and an internal assessment of firm strengths
practices and systems on important business and weaknesses. This process is not driven by a
objectives. Finally, we offer some ideas that function or discipline formula, but rather by an
may change the prevailing paradigm and evaluation designed to determine the relative
the operational role of HR in hospitality importance and veracity of assumptions man-
organizations. agement has made about the industry and the
firm. Management combines its fact-based
᭤ HR AND STRATEGIC knowledge with its assumptions and beliefs
PLANNING about the business it is evaluating. Strategic
planning, at its core, is the process by which the
Our observations are that HR suffers from a veracity of these assumptions and the relative
importance each has to the overall outcome are
negative image in many hospitality organiza- revealed. Functional executives confound and
tions and that, sadly, it has earned that nega- corrupt the initial stages of the planning process
tive image. The following views of HR may by becoming caught up in interdisciplinary is-
be familiar: HR is basically an employee- sues that should be subservient to the strategy
advocate function and represents the “soft” process they aspire to influence. As such, the

448 Chapter 9 ᭿ Human Resources Policy Management

CEO is forced to pull the process of formulat- rarity is associated with the scarcity of such
ing strategy away from these executives and resources in the external environment; im-
rely more heavily on his or her own judgment itability is based on the ability of competitors
or a formal strategy group of executives with- to acquire, duplicate, or substitute valued re-
out discipline responsibilities.1 sources; and organization is associated with
the firm’s structure and systems that are used
In this leader’s view, HR plays a sub- to extract the greatest degree of value from a
servient and reactionary role in the business- given resource.
planning process. While this is only one
individual’s perspective, we’ve encountered These and other models (e.g., portfolio
many who share similar views. We contend assessments, competitor ranking) that can be
that HR considerations must be taken into ac- used to analyze strategic positions and develop
count not only during strategy implementa- plans have at least one thing in common: the
tion, but also during the process of developing human element is central to an analysis of in-
that strategy. Indeed, the prevailing models of ternal strengths, resources, and capabilities.
business planning support this contention. Technology, in contrast, is quite imitable and
thus should not be considered as a source of
Several approaches can be used to predict competitive advantage. Human capabilities,
a firm’s competitive position and develop and the social context in which such capabili-
strategic plans. The traditional SWOT model ties are applied, are difficult and perhaps im-
(i.e., strength, weakness, opportunity, and possible to copy or transfer to settings outside
threat) is based on a matching process such the focal context. While access to capital, rela-
that a firm’s strategic direction is based on the tive market share, brand image, and service
fit between external conditions (i.e., opportu- quality are all essential to a hospitality busi-
nities and threats) and internal capabilities ness, such concerns would be largely irrelevant
(i.e., strengths and weaknesses). Based on this if the appropriate human resources were un-
assessment of fit, leaders can then take ac- available. Therefore, while HR may not be the
tions intended to achieve a sustained level of most important consideration during the
competitiveness—for instance, by using inter- strategic-planning process, this factor cannot
nal strengths to exploit external opportunities be ignored when developing long-range plans.
and taking advantage of opportunities to mo-
tivate change and fix internal weaknesses. An- ᭤ EVIDENCE FOR THE
other popular framework, VRIO analysis, STRATEGIC IMPORTANCE
extends the SWOT model and maintains that OF HR
competitive advantage is gained by identify-
ing and exploiting the rare, distinctive compe- Despite HR’s apparent image problem, it re-
tencies of the firm (Barney, 1997). The VRIO
explanation considers a firm’s resources—un- mains an essential function. Much has been
derstood in terms of value, rarity, imitability, written about the critical role of HR for
and organization—as keys to long-term effec- achieving business goals and objectives, and
tiveness. In simplified terms, value is charac- there is a growing literature that shows HR
terized by the firm’s internal resources that policies, practices, and systems are related to a
can be used to respond to external threats;

449Section 9.5 ᭿ The Strategic and Operational Roles of Human Resources—An Emerging Model

variety of financial and operational success Table 9.1 Analysis of the Relationship
indicators.2 Indeed, there is some rather com- Between Compensation Level and Total
pelling evidence that the proper alignment Annual Employee Turnover
between HR systems and business strategy
will enhance a firm’s performance.3 We will Position NX
complement this literature by presenting two
hospitality-specific examples that support the General manager 363 Ϫ0.24
strategic importance of HR for not only im-
plementing long-range plans, but also devel- Director of sales and marketing 172 Ϫ0.20
oping such plans.
Sales manager 145 Ϫ0.19
Example 1: Compensation and turnover.
The 2000 Lodging Compensation and Bene- Reservations manager 94 Ϫ0.19
fits Survey, conducted by Realtime Hotel Re-
ports (now part of Smith Travel Research) Controller 125 Ϫ0.19
and sponsored by the American Hotel Foun-
dation, provides direct evidence for the Front-office manager 220 Ϫ0.17
need to consider HR factors throughout the
strategic-planning process. In addition to Restaurant manager 109 Ϫ0.17
compensation levels and benefits offered by
over 2000 hotels, the survey also gathered Chief engineer 252 Ϫ0.11
information about employee turnover.
Turnover is a key concern to many hospitality Executive housekeeper 311 Ϫ0.10
employers. It can be quite costly (Hinkin and
Tracey, 2000, 14–21) and has been shown to be Example 2: Training, turnover, and sales.
related to many important outcomes, includ- The second example is based on an analysis of
ing profitability (Simons and Hinkin, 2001, training, employee turnover, and sales data
65–69). As such, understanding HR policies gathered from a privately held restaurant
and practices that can contribute to turnover company that currently owns and operates
can lead to more insightful strategic and op- approximately 115 restaurants and franchises
erational decision-making. an additional 70 throughout the United
States. Complete data for 96 corporate-owned
An analysis of the relationship between stores were gathered over a 12-month period
compensation level and total annual em- beginning in January 2001. The primary
ployee turnover (Table 9.1) yielded statisti- proposition was that investments in training
cally significant results for the following and employee turnover would be significant
positions.4 predictors of net sales. The training variable
was expressed as the number of hours per
While the magnitude of the correlations month dedicated to skill-based programs (e.g.,
demonstrates that a great deal of variance in new employee training) and development-
the compensation-turnover relationship re- based programs (e.g., interpersonal customer
mains unexplained, the data suggest that com- service) for line staff. Employee turnover was
pensation does have an effect on intentions to also measured on a monthly basis (i.e., num-
stay or leave—a finding supported by related ber of new hires divided by the total number
research (Simons and Enz, 1995, 20–27). of employees at the end of the month), as was
net sales.

After accounting for store-specific effects
(e.g., location, size) and time effects, the re-
sults from regression analyses of the panel

450 Chapter 9 ᭿ Human Resources Policy Management

data showed that both training and turnover views and concerns. Over the years, personnel
accounted for significant variance in store was renamed human resources, and its role in
sales.5 These results suggest that if sales are the organization (in addition to its existing
influenced by training and employee functions) became one of integrating people,
turnover, then long-range plans for growth policies, and cultures. To meet the needs of
must consider the consequences of HR deci- this role, HR practitioners’ responsibilities
sions regarding employee development and were expanded to include communications,
retention. training, safety, employee relations, and
recognition and reward programs. Along with
These two examples demonstrate the ef- those additional responsibilities the HR
fects that HR can have on strategic and oper- department became responsible for the orga-
ational goals. Although researchers and nization’s legal compliance in the ever-
practitioners have yet to fully understand the expanding area of employment law.
process by which the various HR policies,
practices, and systems might influence long- The expansion of the HR function re-
range effectiveness, the data presented here sulted from changes in the way businesses
reinforce the need to consider HR through- were managed. One such change was the ex-
out the planning process. However, it’s not plosion of mergers and acquisitions in the ho-
enough simply to incorporate HR influences tel and restaurant industry. In the past 20
more broadly—the HR function must also be years mergers and acquisitions have tested
reconsidered. We contend that a holistic and HR practitioners’ ability to be flexible, detail
collaborative approach to HR is required, one oriented, and expeditious in both their sup-
in which the HR function is closely integrated port of other business functions and in the de-
within the strategic and operational elements cisions they make related to HR issues. These
of the firm. Thus, HR plays a critical role in increases in responsibility, occurring along-
designing structures, facilitating change, and side changes in the business, transformed HR
evaluating progress. This objective requires professionals from generalists to specialists.
that firms embrace a new model of HR to This metamorphosis also fostered the percep-
achieve and sustain a competitive advantage. tion—often promoted by HR—that only
“specialists” could handle such complicated
᭤ A NEW MODEL FOR issues. The HR model that emerged was one
HUMAN RESOURCES based on the centralization of knowledge, re-
sponsibility, authority, accountability, and
The traditional role of HR is more appropri- control within the HR department.

ately termed “personnel.” In this role, person- Even as all this was taking place, however,
nel professionals were responsible for business practices were changing. As a col-
recruiting and hiring, compensation- and league of ours succinctly put it:
benefit-program design, negotiating and ad-
ministering collective-bargaining agreements, As organizations began to realize that different
policy development, personnel recordkeep- businesses needed and could afford different
ing, and serving as a conduit for employee types of HR programs and benefits, even within
the same corporation, HR began to decentral-
ize, replicating the centralized HR structure at

451Section 9.5 ᭿ The Strategic and Operational Roles of Human Resources—An Emerging Model

division and even business-unit levels. This had the source that these decisions are actually
the advantage of supporting differentiated HR made, the less likely it is that real-time and
for each business, but its redundancies cost a lot relevant information about the decision and
of money and the specialist jobs got smaller its outcome will be available for the decision
(i.e., they supported smaller groups of employ- maker. It is also important to note that the
ees) and thus attracted less capable or experi- time it takes to complete the decision-making
enced people.6 process is extended in direct proportion to the
distance it has to travel through an organiza-
Added to the complexity of this decen- tion’s bureaucracy.
tralized approach is the fact that business
leaders are under extreme pressure to reduce One key construct in our proposed HR
expenses, increase productivity and revenues, model is that HR practitioners will no longer
and realign their organizations to become fo- make operational decisions, but rather act as
cused on core issues. In the last five years, consultants to other business functions by de-
these changes have led to enormous pressures signing, developing, and delivering programs
being placed on businesses to reevaluate the that give line managers the tools and training
HR function, its role and responsibilities, and they need to effectively perform their respon-
how these integrate with the rest of the or- sibilities. The following scenarios represent
ganization. High-performing organizations common decisions made by HR practitioners.
today are looking for ways to transfer author-
ity, responsibility, and accountability for HR- Scenario 1: An employee resigns and the
related transactions and decisions to line manager needs to fill the vacancy. The process
managers and, in some instances, employees. will probably include deciding whether the
The ramifications of this are enormous. Ironi- open position can and should be filled, locat-
cally, we see the most resistance to this change ing and interviewing applicants, determining
often coming from HR itself. whom to hire and how much to pay that per-
son, assigning a start date, conducting train-
᭤ A DECENTRALIZED ing, and determining whether to retain the
FOUNDATION new employee. In the real world the immedi-
ate supervisor will know the most about
The underlying premise of our model is that everything relating to those issues and be in
the best position to make the most appropri-
all decision-making authority, responsibility, ate and timely decisions. The need for direct
and accountability should be vested in the HR intervention should be minimal.
person who supervises the employee. Thus,
decisions related to hiring, promotion or de- Scenario 2: A service employee is not per-
motion, training, work actions,7 pay, and forming up to expectations in spite of being
scheduling can and should be made by the im- trained and supervised. The organization has
mediate supervisor of the affected employee. documented policies and practices relating to
In many cases actions of this kind do require progressive discipline and the issuance of no-
additional approvals from the company’s up- tification to the employee. The supervisor
per echelons. However, the farther away from should have full authority to determine the
need, timing, wording, and level of notice to
be given. While it’s practical to assume that
this type of decision might require some

452 Chapter 9 ᭿ Human Resources Policy Management

additional approvals, the managers directly The responsibilities identified in Table 9.2
related to the employee’s performance are follow the functions that are traditionally
best suited to understanding the issues and found in HR departments. Organizations with
nuances involved. centralized HR functions adopt these “tradi-
tional practices” on the theory that they are
In these situations, usually there are poli- specialized and should only be conducted by
cies and processes that require the involve- those who are trained and skilled. That ap-
ment of the HR department. Yet in most proach presupposes that being in HR is the
organizations these decisions are best made only way to gain that expertise, and further,
in a timely manner by the individuals who that this expertise is more important than un-
know the most about the issues. HR special- derstanding the operational nuances that ex-
ists should be involved in this decision- ist at the line level. We suggest that HR
making process, but final decisions would expertise can be gained by those at the line
ultimately be made by individuals outside of level more easily than can the nuances of de-
the HR function. partmental activity be understood by those in
HR. The key to transferring these responsibil-
Our model has drawbacks, perhaps, but ities to the line level is training the supervi-
some of that relates to the fact that HR infor- sors in how best to perform these duties,
mation is not always shared with line man- providing them with the tools and technology
agers. One drawback is line managers’ to effectively and efficiently carry out these
potential ignorance of the fine points of HR responsibilities, supporting them with advice,
practice and law. The centralization of the HR and monitoring their performance. This
function occurred in part because there was a means that the role of HR changes from gate-
belief that the legal and organizational issues keeper and decision maker to trainer and
involved in making HR decisions were so supporter.
complicated that it would not be prudent to
trust non-HR supervisors to make them. Additionally, management should put in
place strategies that reinforce the perfor-
Moreover, the decentralized model’s re- mance of managers who adopt and success-
dundancies could be costly. Under the new fully handle these duties. Indeed, that should
HR model the power to make decisions is en- be tied to their reviews and total compensa-
trusted to line managers. In this model it is the tion. This is consistent with the goals of (a) the
role of the HR practitioners to assist compa- organization to have better-trained and -per-
nies in training managers how to make and forming managers, and (b) most HR profes-
implement business decisions and then en- sionals to be more of an internal consultant
trust them with the authority to do so. If such and strategic partner than mere arbiters of
decision-making power is not distributed to proper practice. This new construct allows the
line managers, they will not gain the necessary line managers to achieve new competencies
skills to be able to effectively perform their and control, while giving HR professionals
duties. In contrast, if line managers are sup- the chance to become more of what they
ported in the HR function, the necessary in- want to be—and should be. The organization
formation will be spread throughout the benefits from using this new model, be-
organization. cause decisions are made more quickly and
appropriately, allowing the business to be
The examples in Table 9.2 illustrate how
HR practitioners can use the constructs of
this new model.

453Section 9.5 ᭿ The Strategic and Operational Roles of Human Resources—An Emerging Model

Table 9.2 Examples of the New HR Model in Operation

Traditional Practice Suggested Practice Under the New Model

Recruitment As part of the strategic planning and budgeting process, departments should be
HR departments have responsible for determining and justifying staffing levels. Once identified, decisions
become gatekeepers for on whether to fill positions, and with whom, should be left to the department. The
whom and how many to hire. role of HR should be to establish suggested sources for obtaining applicants (both
internal and external), designing methods for communicating with applicants using
Compensation those sources, and developing an applicant tracking system. HR should also assist
HR departments control line managers in developing appropriate interviewing methods and materials, train
both the design and the managers to use them, and monitor the process for legal and policy compliance.
administration of the Information technology now exists to provide managers with self-service capabilities
compensation program. to find and track applicants. At Bellagio, for example, HR designed a self-service
system for applicants, which eliminated the need for data input by HR staff and
Job Training allowed applicants (both internal and external) to update and monitor their
New hires attend an application information and status. These systems are always available and can help
orientation conducted by reduce the workload of the HR staff.
HR, and then they are
given some form of Salary administration can be managed by line departments through technology,
on-the-job training. such as the web-based models developed by Melon’s HR Solutions group, that
provides managers with the data and analytical tools that they need. This gives the
responsibility and accountability for these decisions to the departments; HR’s role is
to provide advice and establish proper control mechanisms to prevent the inexpert
(non-specialist) manager from making inappropriate decisions. In this role, HR
facilitates the gathering of competitive data and then provides it directly to line
managers so they can do their own payroll modeling.

All new employees attend a general company orientation that is designed by HR
and presented by fellow employees. This will give the new hires a peer perspective
and help them to develop relationships with other employees. Department and job
training should be conducted by a trained trainer from the new employee’s
department or job. This trainer should have the added responsibility of evaluating
the new employee’s performance and conducting any retraining that may be
required. HR’s role should be helping to create the training materials, training the
trainers, and implementing a tracking system to allow managers to monitor course
attendance and related performance. Park Place Entertainment, for instance, has
developed this type of employee development system. The HR department has
developed scripts and protocols that serve as templates for all training and
development efforts. Line managers are primarily responsible for content, giving
them more control over the job- and department-specific training needs. An
example of this decentralized approach to development is PricewaterhouseCoopers,
which has developed online knowledge management systems that give consultants
access to problem solutions that have been identified from prior projects and that
may have relevance for current client needs. This type of real-time learning
enhances the quality and efficiency of project work.

Table 9.2 (Continued)

Traditional Practice Suggested Practice Under the New Model

Record Maintenance Using self-service technology, managers and employees fill out and submit
Managers fill out work- transaction data directly to HR or the database, where they are ultimately stored
action documents (e.g., wage and used. Starwood’s online “executive dashboard,” for example, provides the
and job changes, disciplinary corporate office with continuous information about a wide range of property-level
notices, and performance data that are directly related to strategic goals—from employee and guest
reviews) and submit them to satisfaction data to occupancy and rate information. In addition, operations
HR. These are then checked managers have direct access to the data, thus freeing HR from the responsibility of
for accuracy and keyed into facilitating access requests and generating reports. HR should learn about
a database, and the originals technology and actively participate in the development of these self-service tools,
are placed in file folders. and then train managers how to use them. Many organizations today are
Employees also submit outsourcing HR, payroll, and benefits administration, and are using Internet
information that initiates connectivity to facilitate transactions and maintain access to their data. Many are
actions such as vacation also adopting shared-service approaches that are designed to bring more
requests, address changes, functionality and service capabilities to line managers and employees.
and other general requests.
These are routed through Replace companywide rules with concepts that are consistent with local and
MR in a similar manner as departmental concerns. Involve line managers in the process of determining these
the management documents. concepts to ensure that they are applicable to the department’s needs and concerns.
Base the concepts on values and principles rather than rules. Policies and practices
Management Policies should focus on being fair rather than merely consistent. Workers in the 21st
Most companies have century expect to be treated as individuals, and when presented properly these
handbooks and policy practices have greater acceptance than those that treat everyone identically in every
manuals that strictly define circumstance. Practices of this kind will be easiest for managers to understand, use,
legal concerns and consistent defend, and enforce. For example, Le Parker Meridien in New York City has a long
policies and processes. These history of focusing on values—from “frank and fearless feedback” to “happy but
materials are often printed never satisfied”—which are the primary drivers for individual behavior and set
and distributed in hopes that standards for accountability and performance. HR should also monitor competitive
employees will keep them in practices and provide this information to managers. In some cases, this
an accessible place and read benchmarking information is also available online.
them when needed. They
seek to cover every Companies such as Winegardner & Hammons are flattening their organizational
conceivable circumstance structures and giving line managers the flexibility and authority to make decisions.
with carefully written rules, In other organizations, such as The Boulders in Carefree, Arizona, self-managed
policies, and practices. work teams are obviating the need for supervisory interventions and allowing
trained employees to set the tone and monitor the behavior of their teams. Within
Organizational Structure both structures, decisions are made in context, with a focus on what is most relevant
Most companies have a and important to those involved.
hierarchical design in which
decisions are made at the
top and then implemented at
the bottom of the
supervisory structure. While
empowerment as a practice
has been widely debated,
most organizations still
maintain practices where
authority is vested at the
highest levels of this
hierarchy.

455Section 9.5 ᭿ The Strategic and Operational Roles of Human Resources—An Emerging Model

more focused on its core responsibilities of quiring the information they need. The effective
production and service. sharing, distillation, and analysis of information
among such an array of departments—cus-
᭤ ENABLING tomer relationship, sales, product planning,
TECHNOLOGY marketing, and finance, for example—coalesces
into an enterprise-wide intelligence that is
Public and private companies alike are greater than the sum of its informational parts
(Liautaud and Hammond, 2001, 5).
driven to make effective decisions and to im-
prove performance through expense control As these practices become perfected, or-
and revenue improvement. Over the past 20 ganizations will look for additional ways to
years, tools have been developed to help or- improve performance, and we suggest that
ganizations achieve these goals. This trend be- HR is the next area to which these might be
gan when financial departments discovered applied. Adding employee-activity data to the
online analytical processing (OLAP) tools practice of interactive and multidimensional
that allowed them to collate and query infor- analyses will help organizations to truly get
mation from all of the disparate files in their the most out of their human resources. To
databases and develop queries therefrom. gain this capability, human-resources depart-
This ad hoc interactive querying capability al- ments in highly successful organizations “will
lowed them to conduct complex multidimen- understand how to use systems and software
sional analyses and more rapidly discern to solve business problems and will exploit
issues that needed to be addressed. This prac- technologies to achieve their business goals”
tice provided a means for organizations to (Boyett, Boyett, Henson, and Spirgi-Hebert,
control expenses more effectively and thus 2001, 28). The decision makers in this instance
improve their bottom lines. are the line managers, and the decisions are
related to the management of their employ-
The next challenge involved improving ees; giving line managers the use of a system
revenues beyond the normal realm of sales like this will increase their access to data and
and marketing. Those same OLAP tools, give them the ability to make better decisions.
when applied to complex and disparate cus- This technology will assist them in converting
tomer databases, allowed companies to tar- those data into intelligence. It is expensive to
get their efforts and dollars in ways that store and maintain all of these data, and “un-
maximized revenue opportunities. Today, til it is put in the hands of business users and
customer-relationship-management (CRM) brings real value to these business users, the
systems are helping these companies to better value obtained from that information does
use their resources to satisfy their customers not compensate for the cost of maintaining
and increase revenues. Much has been written that data” (Liautaud and Hammond, 2001,
about these practices. For example: 38). While the initial capital investments re-
quired to develop and implement decision-
The new cross-departmental imperative for support technology may be high, the
companies in virtually all industries is to em- operational savings8 and improved decision
power decision makers to obtain quick answers quality more than justify the investment.
to their business questions by immediately ac-

456 Chapter 9 ᭿ Human Resources Policy Management

The appropriate use of technology is crit- trained to use the most effective tools avail-
ical to the successful transfer of responsibility able will ensure the organization’s capacity to
from HR to the line managers and depart- meet its needs. This enlightened division of re-
ments. The use of business-intelligence tech- sponsibilities will result in the most orderly
nology and tools will enhance line managers’ and informed execution of each group’s tasks,
skills and decision-making capabilities by giv- and promote teamwork.
ing them the same view that was once re-
served for HR staff. Again, the key to this will It seems to us that the best part of a line
be the training and support provided by the manager’s job is having the ability to make
HR staff. decisions that are most critical for a depart-
ment’s success. Conversely, the things that
᭤ SOME ADDITIONAL managers dislike have to do with the HR de-
THOUGHTS partment’s always telling them what to do. In
truth, there are probably times when it would
We would be remiss if we didn’t offer some be convenient to pass certain responsibilities
to HR, so that line managers don’t have to
thoughts related to the tragic events of Sep- make those decisions or would at least have
tember 11, 2001, which occurred during the someone to point to as the culprits. In the end,
conceptualization and writing of early drafts however, the role of a manager is about re-
of this manuscript. The pressure on manage- sponsibility and accountability, and the adage
ment to react to the terrorist acts and their ef- that “the buck stops here” seems to have been
fect on the hospitality industry has been written with that in mind. The following re-
intense. The range of responses to the plunge quirements will help line managers feel most
in business levels was varied and is not ger- comfortable in this role:
mane to our discussion. What is important to
note is that swift, intelligent, and decisive ac- a. They have some say in the development
tions were required in the wake of the attack. of a company’s policies and practices;
That supports the need to adopt new roles for
HR and line managers. b. The company provides them with the
tools and training to perform at this level;
A company’s ability to adapt to changing
conditions depends not only on its policies, c. There is a clear definition of HR’s and
but also on the tools that it provides to those line managers’ responsibilities;
responsible for deciding and implementing its
strategies. HR departments worked with their d. They are recognized and rewarded for
management teams to define the strategies to good performance relative to these issues;
address issues relevant to the attacks and then and
helped to implement them. Line managers
needed accurate information about business e. There are programs in place to help when
and staffing levels, staff skills and abilities, and mistakes are made.
financial-modeling capabilities. Having HR
and line managers in possession of and If it is true that our future success both at
the business level and as HR practitioners lies
in the adoption of new ideas and technolo-
gies, and that leaner, more focused organiza-
tions are the ones that succeed, it is
imperative that this transition to a new HR

457Section 9.5 ᭿ The Strategic and Operational Roles of Human Resources—An Emerging Model

model occur. To assure that the transition is need the steadfast support of the organization
smooth, we will need to learn from others’ er- in maintaining this new set of roles and
rors as well as our own mistakes, and we will responsibilities.

CHAPTER 9 ᭿ ENDNOTES

1. Statement made by the CEO and chairman of of HR systems and overall business strategy.
a medium-size management company of mid- See: M.A. Youndt, S.A. Snell, J.W. Dean, and
price hotels. D.P. Lepak, “Human-Resources Management,
Manufacturing Strategy, and Firm Perfor-
2. For example, Paauwe and Richardson re- mance,” Academy of Management Journal,
viewed nine studies that yielded 22 significant Vol. 39, No. 4, pp. 836–866.
empirical relationships between various HR 4. All significant at p Ͻ .05.
policies, practices, and procedures, and several 5. Overall F ϭ 44.32, df1 ϭ 123, df2 ϭ 1085;
measures of firm performance. See: J. Paauwe R2 ϭ 0.82, p Ͻ .01; standardized beta weights
and R. Richardson, “Strategic Human Re- for training and turnover were 0.031 and
source Management and Performance,” In- 0.032, respectively, p Ͻ .01. These and related
ternational Journal of Human Resource results were presented by J. Bruce Tracey and
Management, Introduction to the Special Is- Michael J. Tews at the 2002 Meeting of the So-
sue, Vol. 8, No. 3, pp. 257–262. ciety for Industrial and Organizational Psy-
chology, Toronto, Canada.
3. Youndt, Snell, Dean, and Lepak, for instance, 6. As related by Andrew Geller, principal, orga-
found that different types of organizational nizational development, Unifi Network, a for-
strategy moderated the relationship between mer subsidiary of PricewaterhouseCoopers
two types of HR systems and firm perfor- LLP, Teaneck, New Jersey, April 26, 2001.
mance. Specifically, Youndt et al. found that a 7. These are defined as disciplinary actions, com-
“human capital enhancing” HR system (e.g., mendations, granting of leaves, and the com-
selectivity in hiring) was most effective in or- pletion of related paperwork.
ganizations that incorporated a quality-based 8. Alanna Klaussen, senior analyst with Radiant
strategy (versus other strategies). They also Systems, Inc., has demonstrated that a 2-per-
found that an “administrative” HR system cent to 10-percent savings in payroll expenses
(e.g., policies and procedures training) was can be realized by adopting decision-support
most effective in organizations that employed technology.
a cost-based strategy. Thus, this study provided
convincing evidence that organizational effec-
tiveness is contingent on the proper alignment

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Woods, Robert H. 1999. “Predicting Is Difficult,
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443–456.

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SUGGESTED READINGS

Books Articles

Jerris, L.A. 1999. Human Resource Management Knicely, H.V. 1997. “The Future of Human Re-
for Hospitality. Upper Saddle River, NJ: sources: Superhuman Resource Leadership in
Prentice-Hall. the Twenty-first Century.” In Tomorrow’s HR
Management, D. Ulrich, M.R. Losey, and
Sovereign, K.L. 1999. Personnel Law, 4th ed. Up- G. Lake (eds.). New York: John Wiley and
per Saddle River, NJ: Prentice-Hall. Sons, pp. 111–118.

Tanke, Mary L. 2000. Resources Management for Sherwyn, D., Z.J. Eigen, and A.A. Klausner. 2000.
the Hospitality Industry, 2nd ed. Albany, NY: “Interpreting the ADA and Civil Rights Law.”
Delmar. Cornell Hotel and Restaurant Administration
Quarterly 41(1):85–93.
Ulrich, D., M.R. Losey, and G. Lake (eds). 1997. To-
morrow’s HR Management. New York: John Woods, R.H. 2000. “Predicting Is Difficult, Espe-
Wiley and Sons. cially About the Future: The Future of Human
Resources in Hospitality Management.” In
Woods, Robert H. 1992. Managing Hospitality Hu- Hotel Management and Operations, Denney
man Resources. East Lansing, MI: Educational G. Rutherford (ed.). New York: John Wiley
Institute of American Hotel and Motel and Sons, pp 459–469.
Association.

SOURCE NOTES

Chapter 9.2, “Driving Hospitality Into the Future,” Chapter 9.5, “The Strategic and Operational Roles
by Christian Hardigree, Ellis Norman, Gail of Human Resources—An Emerging Model,”
Sammons, Vince Eade, William Werner, by J. Bruce Tracey and Arthur E. Nathan, is
Robert H. Woods, and Cheri Young. reprinted from the August 2002 issue of Cor-
nell Hotel and Restaurant Administration
Chapter 9.3, “The Causes and Consequences of Quarterly. © Cornell University. Used by per-
Turnover in the Hospitality Industry,” by Carl mission. All rights reserved.
D. Riegel.

Chapter 9.4, “Current Issues in Hospitality Em-
ployment Law,” by Suzanne K. Murrmann and
Cherylynn Becker.



INDEX

Access control, 221, 223 Alcohol. See also Food and beverage Assaulted Staff Action Program
Accessibility, 441 department (ASAP), 230
Accor brands:
blood levels, 297 Assimilation, 421
business structure of, 18 legal issues involving, 209 Assistant banquet manager, 283
cost savings figures of, 28 management, 224 Assistant catering director, 282
Accounting, 80–81. See also Chief Prohibition, 235 Associates, employees as, 86–88
ALHI, business structure of, 18 Association rules (in data mining),
financial executive; Financial Aliens, employment rights of, 445
control Alliances, strategic, see Strategic 401
Active design concepts, 223 Associations, national meetings of,
ADA, see Americans with Disabilities alliances
Act Allie’s American Grill, 279 354–355
Administrative law, 206 Alternative Cuisine, 259–260 Attitude of customers, 321–322, 329
ADR (average daily rate), 306 Alternative medicine, 52–54, 56 Attractive nuisance doctrine, 209
The Advanced Seafood Handbook, Amenity spas, see Resort spas Attribute evaluations, 329
398 Americans with Disabilities Act Authoritative management style, 170
Advertising: Authority:
and attribute evaluations, 329 (ADA) of 1990:
complimentary, 358 legal issues involving the, 212, of chief financial executive, 374,
and selling, 349 375
Affiliation and budgeting, 384, 385. 439–442
See also Chains; Independent signage compliance with the, 22, 25 in organizations, 74
hotel(s) Anglo-Saxon motivation model, 421 Average check, 247
Affiliative management style, 170, Anti-aging treatments, 63 Average daily rate (ADR), 306
171 Application service provider (ASP) Average length of stay, 136, 137
Affinium software, 402 Average room-night contribution,
Age Discrimination Act of 1967, 212 model, 42
Airport properties, foodservice at, Architects, select of, 8 16–17
242 ASAP (Assaulted Staff Action Awareness, creating, 311–314

Program), 230 Baby boomers:
ASP (application service provider) impact of, 1–2, 423–424
and spas, 58
model, 42
461

462 Index

Bacteria in food, 208 overview of, 292–294 Branding:
Banks, Robert, 220 and personnel management, 296, in food and beverage service, 248
Banks v. Hyatt Corporation, 220 increasing importance of, 16
Banquet business, 240 297 and reservations organizations, 17
Banquet manager, 282–283 trends in, 248–249, 296–297 and spas, 51–52
Banquet set-up manager, 283 Beverly Hilton, 268
BAR (best available rates), 342 BFOQ (bona fide occupational Brand loyalty, 36, 41, 47
Bar manager, see Beverage manager The Breakers Hotel:
Bar operations, trends in, 248–249 qualification), 212
Bartenders: Bice Ristorante, 266, 269 best-practices at, 253–255, 262
Birth certificate, 444, 445 cross-training at, 243
role of, 283 Bishop v. Fair Lanes Georgia food and beverage trends at, 248
turnover ratio of, 297 restaurant design at, 260–261
Bass brands, 18 Bowling, 219 Breakfast (free), 240
Bearman v. University of Notre Dame, Black, Morgan, 297–298 Bristol Bar and Grill, 271, 274
Blimpies, 266 Bristol Hotel Company:
219 Blood alcohol levels, 297 and contractual relationship, 278
Beckert, John, 270, 274 Bloodborne pathogens, 187 and finance, 280–281
Bellagio, 453 Blueprints (architectural), 21–22 and Good Eats Grill, 267–275,
Bell stand/staff: Boca Raton Resort and Club, 383
Bona fide occupational qualification 278
in front office operations, 150–152 marketing of, 278–279
function of, 78 (BFOQ), 212 operating strategies of, 270, 274
and guest information, 150 Booking: and operations, 279–280
Benchstrength Management System, own restaurant brands, 270, 271
by director of catering, 288 profit-loss comparison for, 280
111 group, 138–139 in strategic alliance, 267–275
Benihana, 266, 269 Internet, 339 Bristol Suites, 268
Bennigans, 279 and overbooking, 210 British Columbia Telecom, 403
Bergen, Victor, 266 The Bottomline, 367 Budget(s):
Best available rates (BAR), 342 Boudouris, Inger, 145, 147–148 chief financial executive and, 389
Best practices (for food and The Boulders: director of catering and, 290
best-practices at, 253–255, 258 engineering department and, 203,
beverage), 253–264 food forager at, 243, 262
cases/descriptions/implementation HR at, 454 204
Brand(s). See also Franchise(s) for OS&E, 23
of, 255–258 composition of major U.S., 44 pre-opening, 23
champions in, 254, 264 consolidation of major, 14 reliable data for, 382
and controlling costs, 261–262 and CRM, 42, 46, 48, 50 Budgeting and forecasting, 377–387
and focus on product quality, examples of, 18 actual vs. budgeted costs, 380, 381
growth of global, 14 budgetary control in, 380, 381
258–260 and independent hotels, 15–16 difference between, 377–378
in restaurant and Internet competition, 339 effects of affiliation, sales, and
and marketing, 319
design/conceptualization, on-line reservations at top profitability in, 384–386
260–261 forecasting techniques in, 381, 384,
success of, 262–264 international, 29–36
Best Western: portfolio composition of U.S., 44 386
business structure of, 18 selection of, 7 goal setting in, 379
focus of, 19 specific belief ratings for, 329 literature review for, 382–383
Beverage clerk, 395–396 as stake holders, 43 Building operations, director of, see
Beverage manager: strategic alliances between,
and employee relations, 296, 297 Chief engineer(s)
roles/responsibilities of, 236–237, 265–267 Building superintendent, see Chief
294–295 Branded distribution company:
Beverage operations: engineer(s)
history of, 291–292 benefits of using a, 19–20 Burlington Industries v. Ellerth, 437
marketing/merchandising of, 295 characteristics of, 17–19 Business maintainer, GM as, 97–100
organization/management of, competitive advantage of, 20–21 Business problem analysis (for Spa
291–298 drawbacks of using a, 20
Mystique), 65–67

Index 463

Business structure(s). See also Catering, executive director of, Chief financial executive (controller),
Franchise(s); Management 287–291 365–366, 368–377
contracts
Catering department, 282–300 and accounting, 388, 390
benefits of branded distribution future issues for, 286–287 authority of, 374–376
company, 19–20 organization of, 282–284 and budgets, 389
sales/service process for, 284–286 certification of, 371
choice of, 7 as subunit, 80 committee involvement of, 376
new, 15 demographics of, 369–371
types of, 18 Catering director (assistant), 282 roles/responsibilities of, 374–376,
Buzz, cost savings of, 28 Catering sales manager, 282
ByRequest initiative (Wyndham CBD (central business district), 2 387–391
Celebrity chef, 243 skills/knowledge of, 372–374
International), 48, 49 Cendant Corporation: Child labor laws, 213–214
Children and swimming pools, 209
Canyon Ranch, 51, 54 business structure of, 18 Chili’s, 269
Capitol Hilton, 148 portfolio composition of, 44 Choice, optimization of, 322
Captain, 283 Central business district (CBD), 2 Choice brands:
Capture rate, 240 Central reservations service (CRS): business structure of, 18
Career development, 103 brands’ usage of, 31 Choice Hotels:
Carlson, 259 in online pricing study, 30, 31 strategic alliances of, 266
Carlson brands: rates available on, 32–34 Choice Hotels International:
Certified Hospitality Accountant competency models at, 102, 111
business structure of, 18 CHTP (Certified Hospitality
strategic alliances of, 266 Executive (CHAE), 368–369,
Carlson Hospitality Worldwide, 269 371 Technology Professional), 368
Case-based reasoning (in data Certified Hospitality Technology Church’s, 269
Professional (CHTP), 368 Citizenship, 445
mining), 401 CHAE, see Certified Hospitality City Development Commission (in
Case law, 205 Accountant Executive
Case studies: Chains. See also Franchise(s) Pacific Northwest), 11–13
affiliation with, 385 Civil liability of landowners,
Coug Inn front desk, 162–163 competition of independent hotels
CRM at Wyndham International, and, 16 218–221
influence of, 42 Civil suits, 206–207
49 and marketing, 319 CK’s, 279
Disney Orlando resort hotels, and revenue management, 316 Clarion Suites, 268
Chain of command, 76 Clerk, 283
139–141 Chalmers, Irena, 398 Club spas, 57
extended-stay hotel development, Champions (food and beverage): Coaching:
best-practice, 254
11–13 insights from, 264 and competency models, 103
food court crisis, 298–299 and profit, 264 management style, 171
interdisciplinary security plan, Change management, 103 Coercive management style, 170
Check-in/check-out procedures, 126, Coffee:
230–231 152–156 hot, 208
market research department Chef(s): shop, 249, 292
celebrity, 243 Colombo, Patrick, 257
revamping, 360–361 changing role of, 237 Comastro v. Village of Rosemont,
new FOM, 161 in classic hotel organization, 69
Seattle Sheraton Hotel and Towers, education of, 244 219
executive, 243, 393 Comfort Inn Suites, 230
353–360 Chief engineer(s), 169–171, 193–195 Command in organizations, 76–77
Spa Mystique business problem characteristics of typical, 200–202 Committees:
demographics of, 194
analysis, 65–67 evolving job of, 199 and chief financial executives, 376
SunRise Hospitality outside the Executive Operating Committee,

box thinking, 299–300 83–85
Sunset Hotels and Suites, 118 and hotel organization, 83–85
Casinos: Common law, 205, 206
card-dealer training in, 422
food and beverage operations at,

244–245
Native American, 419–420
Riviera Hotel and Casino, 242, 248

464 Index

Communication and communication elimination-by-aspects decision trends in marketing, 306
skills: rule, 327–328 of turnover, 430
Counseling, 103
as a competency factor, 108, 109 exercise for, 331–334 Country Inns and Suites:
and FOMs, 121–122, 125, 127, 151, lexicographic decision rules, best-practices at, 253–255, 259, 263
food and beverage trends at, 248
152 326–327 Country Kitchen, 266, 269
and GMs, 95, 100–101 marketing implications of, 328–331 Courage, 113
and purchasing, 399 noncompensatory decision rules, Courtyard by Marriott:
skills needed for promotions, 314 foodservice at, 242
tips for, 312 325–328 as middle market brand, 268
Community involvement, 117 Consumer market (global), 14 portfolio composition of, 44, 45
Compensation: Continuing treatment, 442–443 CPTED, see Crime Prevention
of financial executives, 371, 372 Contract(s):
of salespeople, 312 through Environmental Design
suggested HR practices for, 453 franchise, 15 Creativity in pricing, 340
and turnover, 449 management, 15, 50, 278 Crime:
Compensatory damages, 206, 208 negotiations, 406
Compensatory decision rule, 323–325 to protect against losses, 226 and alcohol management, 224
Competency model(s), 101–111 and strategic alliances, 278 crime-prevention program, 220
description of, 101–102 terms, 19 and criminal prosecution, 207
developing a lodging specific, 101, Controller, see Chief financial and environmental design, 221–224
interdisciplinary security plan case
110–111 executive
key competencies, 108–110 Convenience Courts, 266 study, 230–231
using, 102–103 Conventions, 80 key control and, 214
Competition: Convention service, 282 and parking facilities, 214, 217–218
and the engineering department, Coordination of activities: and security, 214
Crime Prevention through
192 and meetings, 82–86
between independent hotels and in organizations, 75 Environmental Design
Core values, 115–116 (CPTED), 221–224, 226
chains, 16 Cornell University, 297 Crisis management theory, 228
and the Internet, 339 Corporate accounts, 339, 342 Critical thinking, 108, 109
in pricing, 334 Corporate headquarters (HQ), 336, CRM, see Customer relationship
Computer technology. See also management
341 Cross-training of staff:
Internet Corporate-level purchasing function, and the chief financial executive,
in bell stand, 150–151 389–390
engineering management of, 197 398 and foodservice, 243
and financial information, 203 Corporate pricing structure, 341–343 Crowd management, 225
Concern for community, 110 Cosponsorship of events, 359–360 Crowne Plaza, 44, 45
Concierge, 123, 143–150 Cost(s): CRS, see Central reservations service
Concorde, 18 CST, see Customer service training
Conference services, 316 of acquiring new customers, 38, Culinary arts degree, 244
Conjunctive decision rules, 328 319 Cultural diversity, see Diversity
Consistency in service delivery, 157 Culture of the workforce. See also
Constitutional law, 206 actual vs. budgeted, 380, 381 Diversity
Construction financing, 9, 12–13 best practices for controlling, and executive housekeeper,
Consumer(s). See also Guest(s) 189–190
implications of decisions by, 261–262 as HR issue, 420–423, 426
of branded distribution company, information on, 286
328–331 Native American, 422
online purchases by, 26–27 19 Customer(s):
web site visits of, 29 energy, 199 attitude of, 321–322, 329
Consumer decision rules, 321–334 and engineering department, 203, costs of acquiring, 38, 319
compensatory decision rule,
204
323–325 food cost percentage, 247
conjunctive decision rules, 328 of general contractor, 9
labor cost percentage, 247
marketing, 306
in pricing, 310, 334
savings of, 28
of spa construction, 61

Index 465

determining the best, 131 Data sharing, 46 Direct marketing, 313
incentives for, 403 Data warehousing, 41 Director of building operations, see
and incidents, 157–158 Dates (for group bookings), 138
loyalty of, 38, 434 David Green, 18 Chief engineer(s)
preferences of, 38, 39 Davis, Pam, 149 Director of catering, see Catering,
requests of, 157 Days Inns, 44, 259, 268
retaining, 317 Day spas, 56, 62, 64 executive director of
specific preferences of, 156–157 Decentralization of HR, 451–455 Director of engineering, see Chief
targeting the wrong, 132 Decision rules, see Consumer
Customer relationship management engineer(s)
decision rules Director of food and beverage, see
(CRM), 36–50 Decision trees (in data mining), 401,
basics of, 37–40 Food and beverage, director of
brand loyalty vs., 41 408 Director of housekeeping, see
changes needed to implement, 48, Delegation:
Housekeeping, director of
50 to EOC, 83 Director of purchasing, see
”data-ownership dilemma” in, 37, and executive housekeeper, 177,
Purchasing director
46–48 178 Director of rooms, see Rooms,
at Hilton Hotel Corporation, in housekeeping, 183
in organizations, 77 director of
113–114 Del Frisco’s, 269 Director of services, 167. See also
and HR, 455 Delivery (of OS&E), 24–25
the potential of, 40–42 Delucchi, Annie, 144 Executive housekeeper
and structure of the lodging Demand: Direct selling, 311
and length-of-stay, 136, 137, 140 Disabilities:
industry, 42–46 in pricing, 334
at Wyndham International, 49 and promotions, 313, 314 the ADA, 22, 25, 212, 439–442
Customer satisfaction: psychological determinants of, 411 and discrimination, 212
and CRM, 38, 40 for spas, 51–52, 58, 63 as HR issue, 426
and marketing, 316–318, 337 stimulating, 311–314 Discrimination:
and pricing, 337–338 Democratic management style, 170 as HR issue, 425–426
rising, 319 Demographics: legal issues for, 211–213
Customer service training (CST), for data mining, 407 and preemployment medical tests,
effects of, 1–2
59–60 of spa demand, 51, 58, 63 440
Denny’s, 266 Distribution channels:
Daily life: Departmentalization in organizations,
of director of rooms, 173–174 central reservations service, 30–34
of executive director of catering, 74 Expedia, 30–34, 36, 314, 339
287–291 Department of Labor (DOL), 442 Global Distribution Systems, 16,
of the FOM, 127–131, 158–161 Department Staffing Guide for
of the GM, 111–117 26, 30, 314
of the purchasing manager, 397 housekeeping, 181–182 hotel companies’ web sites, 32–36
of revenue manager, 345–348 Descriptive statistics (in data Internet/online, 26–36, 314, 343,

Damon’s, 266, 269 mining), 401 344. See also Internet
Data mining, 399–412 Destination spas, 54, 55, 64 managing, 314–315
Developer(s): rates offered on electronic, 31–34
boundaries/limitations of, 410–411 and reservation affiliations, 16
examples of marketing use of, 402 for extended-stay hotel reservation cost by, 28
guidelines for, 404–410 development project, 11–13 and revenue manager, 347
at Harrah’s, 402–403 Travelocity, 30–34, 36, 314
industry applications for, 403–404 and offering solicitation document, Travelweb, 30–34
managerial implications of, 411–412 10 types of electronic, 30
statistical modeling vs., 400–402 WorldRes, 30–34
toolkit for, 401 at risk dollars of, 11 Diversification and price setting,
”Data-ownership dilemma” (in role of, 6
Development agreement, 8 340–341
CRM), 37, 46–48 Differentiation, strategy of, 329–330, Diversity. See also Culture of the

345 workforce
as HR issue, 421, 422, 425
management of, 189–190
role played by cultural, 3–4
Dobscha, Susan, 403

466 Index

Documentation (and sexual hourly, 184–187 Equity investment funds, 9–10
harassment), 437–439 and increased profits, 132 European hotels, 16
relations with, 296, 297 Events, 359–360
Doi, Mike, 146 satisfaction of, 430 Executive chef, 243, 393
DOL (Department of Labor), 442 spa, 60 Executive director of catering, see
Donations (charitable), 353–360 Employment-at-will doctrine, 211
Doubletree: Employment law, 436–446 Catering, executive director of
Age Discrimination Act, 212 Executive housekeeper, 183
food and beverage trends at, 248 Americans with Disabilities Act,
portfolio composition of, 44, 45 organizational position of, 177, 178
strategic alliances of, 266 22, 25, 212, 439–442 personal account of, 188–191
Downsizing, 70 Family and Medical Leave Act, reporting of, 425
Dram shop laws, 209 role of the, 176–177
Driving under the influence (DUI), 442–444 Executive Operating Committee
Federal Labor Standards Act,
297 (EOC), 83–85
Drucker, Peter, 307, 310 213–214 Exempt employees, 213
DUI (driving under the influence), Immigration Reform and Control Expedia, 314

297 Act, 444–446 and brand loyalty, 36
Pregnancy Discrimination Act, 212 brands’ usage of, 30, 31
E. coli, 208 sexual harassment, 212–213, and controlling of rates, 339
Eade, Vince, 418, 419, 425, 426, 428 as distribution channel, 30
EasyJet, 28 436–439 rates available on, 31–34
e-commerce technology: Empowerment (of employees), 60, Express check-out, 155–156
Extended-stay hotel development
and branded distribution company, 87, 126–127, 425
19 The Encyclopedia of Fish Cookery, case study, 11–13

consumer use of, 26–27 398 Fairfield Inn, 44, 45
and distribution channels, 16 Energy, 192–193, 198, 199 Fairmont Hotels and Resorts, 336,
Economy: Engineering, director of, see Chief
local, 6–7 339, 342, 344
national, 2, 3 engineer(s) Fairness in the workplace, 436
Economy properties: Engineering department, 169–171, Family and Medical Leave Act
brand examples of, 268
foodservice at, 242 191–205 (FMLA) of 1993, 442–444
Education. See also Training chief engineer, 169–171, 193–195, Faragher v. Boca Raton, 437
in beverage management, 297 Farrell, Scott, 336, 344
of financial executives, 369–371 199–202 FDA (Food and Drug
EEOC, see Equal Employment and financial information, 199–205
function of, 79 Administration), 208
Opportunity Commission history of, 191–192 Feasibility study:
Eisenberg, David, 53 interdisciplinary security plan case
Elasticity (price), 344–345 in extended-stay hotel
Eldercare, 424 study, 230–231 development project case study,
Electrical systems, 196–197 issues in, 197–199 11
Elevators: legal issues for, 209
organization chart for, 194 and franchise selection, 8
design of, 223 personnel in, 193–197 for hotel development, 6–7
systems, 197 as staff function, 72 Federal Labor Standards Act
Elimination-by-aspects decision rule, stimulus for change in, 192–193
”English-only” cases, 421 (FLSA), 213–214
327–328 Entrepreneurs, GM as, 98, 100 Fee(s):
Ellis, Susan, 64 Environmental design, 221–224
Embassy Suites, 44, 45, 268 EOC, see Executive Operating architects, 8
Employee(s): franchise, 8
Committee management companies, 10
as associates, 86–88 E.piphany E.4 software, 402 Feldott, Mike, 267
empowerment of, 60, 87, 126–127, Equal Employment Opportunity Ferguson, Gray, 255
FF&E (furniture, fixtures, and
425 Commission (EEOC), 229, 439,
exempt, 213 441 equipment), 23
Equal-pay-for-equal work, 213 Financial control, 365–399
Equipment, 197–199
and budgeting/forecasting, 377–387

Index 467

and the chief financial executive, historical background for, 235–236, Franchise(s). See also Chains
365–366, 368–377, 387–391 291–292 for extended-stay hotel
development project, 12
effects of and interactions with other and hotel/restaurant relationships,
affiliation/sales/profitability on departments, 244–246 278
budgeting, 384–386 and independent hotels, 15
legal environment for, 207–209 management contract vs., 15
and the purchasing function, legal issues in, 207–209 and management services, 10
391–399 as line operation, 71 and marketing, 319
managing operations for, 239–250 selection for hotel development, 8
Financial executive, see Chief mission/goals of, 239–241
financial executive and operating ratios, 246–247 Francis, Connie, 214
organizational considerations, Free breakfast, 240
Financial information: Frequency of interaction, 74
and computer technology, 203 241–242 Frequent-stay programs, 153–154, 317
and engineering department, and organization/management of Fresh Produce Manual, 398
199–205 Front desk:
importance of, to engineering beverage operations, 291–298
department, 202 personnel for, 243–244 Coug Inn case study, 162–163
profits in, 264 in front office operations, 152–156
Financing: and restaurant in rooms department, 176
and brands, 16 Front office. See also Rooms
of hotel development, 9 design/conceptualization,
260–261 operations/department
Fishbein linear compensatory model, successes in, 262–264 function of, 78
see Multi-attribute attitude SunRise Hospitality outside the legal issues for, 210–211
model box thinking case study, 299–300 in rooms department, 176
trends in, 247–250 Front office manager (FOM):
Flinn, Joanne, 409 in typical hotel organization, 70 daily life of the, 127–131, 158–161
Floor supervisor, 185 and Walt Disney World awards, 263 new manager case study, 161
FLSA, see Federal Labor Standards Food and beverage manager, 245 roles/responsibilities of, 124–127
Food and beverage occupancy, 246 Front Row Sports Grille, 269
Act Food and beverage sales per Functional organizational design,
FMLA, see Family and Medical available room, 246
Food and Drug Administration 77–82
Leave Act (FDA), 208 Fund-raisers, 355–356
Follow-the-Leader pricing method, Food cost percentage, 247 Furniture, fixtures, and equipment
Food court crisis case study, 298–299
335 Food forager, 243, 262 (FF&E), 23
FOM, see Front office manager Food production equipment, 197
Food and beverage, director of: The Food Professionals Guide, 398 Game for revenue management,
Food servers, 283 141–143
and purchasing, 393 Forecasting. See also Budgeting and
roles/responsibilities of, 251–253 forecasting Garages, see Parking facilities
Food and beverage cashiers, 81 and data mining, 404–405 GDS, see Global Distribution
Food and beverage controller, 81 and revenue management, 315
Food and beverage department, by revenue manager, 346–347 Systems
Foreseeability, 219–221, 227 Geddes, Jack, 27
235–300. See also Strategic Four Points, 44 General contractor(s):
alliances Four Seasons Hotels and Resorts, 268
best practices for, 253–264 best-practices at, 253, 254, 256, for extended-stay hotel
beverage manager, 236–237, 259 development project, 12–13
294–297 business structure of, 18
catering department, 282–300 director of rooms at, 172–173 selection of, for hotel development,
controlling costs in, 261–262 food and beverage trends at, 248 9
and director of food and beverage, goals of, 240
251–253 strategic alliances of, 266 General manager(s) (GM), 89–118.
equipment/supplies required for, See also Leadership-competency
23–24 model
focus on product quality in,
258–260 as business maintainer, 98–100
food court crisis case study, as central management figure, 90
298–299 and chain of command, 76
functional organization of, 79–80

468 Index

General manager(s) (GM) Grace Services, 266 HFTP, see Hospitality Financial and
(Continued) Grand Cargo Cafe, 273 Technology Professionals
The Greenbrier, 264
contextual framework for the job Hiding places, 223
of, 91–101 apprentice program at, 243 Hilton:
best-practices at, 253, 254, 256, 260,
and courage, 113 Capitol Hilton, 148
daily life of, 111–117 263 as middle market brand, 268
and EOC, 83 The Greenbrier Cookbook, 260 Hilton brands:
and job demands, 93–95, 97 Group business, 134, 138–139 business structure of, 18
as leader of marketing, 320 Growth goals, 17 portfolio composition of, 45
leadership of, 98, 99, 111–112 Guarantees for reservations, 154 Hilton Corporation:
managerial work roles of, 96–100 Guest(s). See also Consumer(s) data mining at, 402, 405, 409
as operational controller, 98–99 Hilton HHonors database, 405
as organizational developer, 98–100 and increased profits, 132 Hilton Hotel Corporation:
and pricing, 310 stays, 126 customer relationship management
and purchasing, 393 surveys, 247, 317–318
and relationship issues, 93 Guest information: at, 113–114
and respect, 112 and bell staff, 150 Hilton Hotels Corporation:
in reverse organizational chart, 87 sources of, 124–125
skills/characteristics of, 111–113 Guest Quarters, 268 portfolio composition of, 44
Sunset Hotels and Suites case Guest relations: Vacation Station program at,
and bell staff, 151
study, 118 and director of food and beverage, 247–248
as top of field, 89 Hilton Inns/Hotels:
in typical hotel organization, 70 252–253
Generation X, 422 in front office operations, portfolio composition of, 44, 45
Genetic algorithms (in data mining), Hinton/Grusich, 18
156–158 Hiring, 102
401, 408–409 and room attendants, 189 Historic Hotels, 18
Gift card sales, 63 Guest room attendant (GRA), 184 Hit or Miss pricing method, 335
Global Distribution Systems (GDS), Guest service cycle, 125–126 HIV/AIDS, 187
Holiday card program, 356
314 Habits (wasteful), 193 Holiday Inn Express, 44
and competitive advantage, 16 Halekulani Hotel, 146 Holiday Inn Hotels, 268
hotels’ use of, 26 Hampton Inns, 268
as type of distribution channel, 30 food and beverage trends at, 248
Global industry, 64 foodservice at, 242 and Good Eats Grill, 267
Global market: portfolio composition of, 44, 45 portfolio composition of, 44, 45
and branded distribution Hannig, Dieter, 257, 261 Holiday Inn Intercontinental, 272,
Hardigree, Christian, 420, 421,
companies, 21 273, 278–281
for hospitality, 14–15 423–427 Holiday Inn Worldwide:
GM, see General manager(s) Hard Rock Café, 269
GoConcierge software program, 146 Harrah College of Hotel strategic alliances of, 266
Golden Tulip, 18 Holzer, Charles, 147
Good Eats Grill, 269 Administration, 244, 297 Homewood Suites, 44, 45, 268
contractual relationship with, 278 Harrah’s, 402–403 Homicide, 228
and finance, 280–281 HBV (Hepatitis B virus), 187 Honor bar, 238
menu for, 272 Head houseman, see Senior Hospitality, definition of, 175
operating strategies of, 274 Hospitality Financial and Technology
and operations, 279–280 housekeeping aid
profit-loss comparison for, 280 Health care, 417–419 Professionals (HFTP), 368–369
selection process for, 276, 278 Health condition (serious), 442 Hostile work environment
and strategic alliance with Bristol Heating, ventilating, and air
harassment, 212, 436–438
Hotel, 267–275 conditioning (HVAC), 196 Hotel administration degree, 244
Gouge ‘Em pricing method, 335 Helms Brisco, 18 Hotel choice, 321–334
GRA (guest room attendant), 184 Hepatitis B virus (HBV), 187 Hotel company web sites, 30–36
Herzberg, Frederick, 435 Hotel design, 7
Heterogeneity, 350 Hotel development process, 5–13
Heuristics, 322
and architect selection, 8
and the development agreement, 8

Index 469

and equity investment funds, 9–10 and discrimination, 425–426 conflicts of owners of, 20
extended-stay case study, 11–13 and diversity, 421, 422, 425 ensuring competitive advantage of,
and the feasibility study, 6–7 and employment law, 436–446
and financing the project, 9 functional organization of, 80 20–21
and franchise selection, 8 future trends in, 417–428 and franchise contracts, 15
and general contractor selection, 9 and gender issues, 425, 426 and management companies, 15
and management company legal issues for, 211–214 and marketing, 319, 320
a new model for, 450–455 new market model for, 14–15
selection, 10 and older workers, 423–424 and reservation affiliations,
and ownership entity creation, 7–8 and opening a hotel, 26
role of the developer in the, 6 and outsourcing, 419, 426–428 16–17
The Hotel Industry Switching role of, in pricing, 340–341 and technological change, 15
and September 11, 2001 terrorists Industry consortium, 50
Company (THISCO), 31 Industry knowledge, 108, 109
Hotel market, 7 attacks, 456 Information management and
Hotel Reservation Network (HRN), and sexual orientation, 426
strategic importance/function of, technology, 365–366. See also
339 Technology
Hound Doggies, 248 415, 416, 447–450 and data mining, 399–412
Hourly employees, 184–187 and technology, 455–456 developments in, 367
Housekeeping, 167–169, 175–188 and turnover, 429–435 and director of systems, 81
and unions, 417–419, 422 and purchasing, 399
and bloodborne pathogens, 187 HVAC (heating, ventilating, and air and swift developments, 367
equipment/supplies required for, 23 Injuries, 209
and the executive housekeeper, conditioning), 196 In-room bar, 238
Hyatt, 268, 279 INS (Immigration and Naturalization
176–178, 183, 188–191, 425 Hyatt Arlington Hotel: Service), 444
formula for computing staff for, Inspection/repair, 209
best-practices at, 253, 254, 256, 262 Inspectress (inspector), see Floor
180 restaurant design at, 261 supervisor
function of, 78–79 Hyatt brands: Installations (of OS&E), 25
interdisciplinary security plan case business structure of, 18 Intangibility, 350
Hyatt Corporation: Intention to leave, 431, 432
study, 230–231 Banks v. Hyatt Corporation, 220 Interdependence:
legal issues for, 209–210 Hyatt Hotel Corporation: and cooperation, 83
organization of, 177–183 portfolio composition of, 44 in food and beverage operations,
origins of, 175–176 Hyatt Hotels and Resorts: 244–246
personnel/jobs in, 183–187 portfolio composition of, 44 pooled, 75
and the rooms department, 176 ”Hygiene factors,” 435 reciprocal, 75–76
in rooms department, 176 sequential, 75
and safety, 187 I-9 forms, 444, 445 between subunits of rooms
staffing/scheduling concerns for, IBM PC, 203 department, 79
Immigrants, 419 Interdisciplinary security plan case
180–183 Immigration and Naturalization study, 230–231
women in, 425 Interior graphics package, 25
Housekeeping, director of, 393, 396 Service (INS), 444 Intermediate run job demands (on
Housekeeping manager, 178, 183–184 Immigration Reform and Control Act GM), 94–95, 97
Housemen, 283 International hotel industry, 42, 43
Howard Johnson, 44 (IRCA) of 1986, 444–446 International law, 207
HQ, see Corporate headquarters Impact study, 8 Internet. See also Web sites
HR, see Human resources Implementation, 108, 109 consumer adoption of the, 26–27
HRN (Hotel Reservation Network), Incentives, 315–316 as distribution channel, 26–36, 314,
Incident reports (guest), 157–158 343, 344
339 Independent hotel(s): e-commerce, 16, 19, 26–27
Hubsch, Allen, 236 effects of, 15
Human capital, 424–425, 427 and brand development, 15–16
Human resources (HR): and branded distribution

and beverage operations, 296 companies, 17–21
and competency models, 102–103 and competition with chains, 14–21
and culture of the workforce,

420–423, 426

470 Index

Internet (Continued) Labor cost percentage, 247 Immigration Reform and Control
and marketing, 313, 319, 339–340, Landowners, 218–221 Act, 444–446
343, 344 Languages (spoken by workforce),
online-pricing analysis, 26–36 and the lodging industry, 207–214
and pricing, 26–36, 338–340, 420–421 Pregnancy Discrimination Act, 212
343–344 La Quinta, 268 and sales, 211
and rates by market segment, 32, Larson, Bruce, Jr., 227 and security, 214
33 Laundry department, 78, 178, 179 and sexual harassment, 212–213,
and reservations organizations, 17 Laundry manager, 184
training with the, 428 Laundry supervisor, 186 436–439
Law(s). See also Employment law; and sources of law, 205–206
Interpersonal skills: Leisure market, 15
as a competency factor, 108, 109 Legal issues Lending institution, 9
of GMs, 112 child labor, 213–214 Length of stay, 153
classifications of, 206–207 Le Parker Meridien, 454
Interviews, 25 dram shop, 209 Les Clefs d’Or (LCD) USA, 146–149
Intuition, 336–337 sources of, 205–206 Lettuce Entertain You, 269
Investigation of sexual harassment, LCD USA, see Les Clefs d’Or USA Level of Service (LOS) approach, 222
Leach, Robin, 145 Lexicographic decision rules, 326–327
438–439 Leadership: Lexington, 18
Investment: of chief financial executive, 373, Liability:
and overbooking, 210
effects of new, 2–3 374 premise, 218–221
sources of capital for, 10 as a competency factor, 105, 109 record of general contractor, 9
Investors, 132 of GMs, 98, 99, 111–112 for sexual harassment, 437
IRCA, see Immigration Reform and Leadership-competency model, and stolen property, 210
for workplace violence, 227
Control Act 101–111 Liebeck, Stella, 208
Isrow, Adam, 146 background for, 101–103 Lighting, 214, 222
Issuing (product), 393 developing an industry-specific, Line functions, 71
Italianis, 259, 269 Line managers/executives:
104–111 authority of, 74
Job demands (on GMs), 93–95, 97 and guidance for HR, 102–103 and HR functions, 451, 452, 455
Job descriptions, 394–396 and key competencies, 108–110 Linen room supervisor, 186
Job satisfaction, 432 lodging competencies list for, Little Caesars, 266
Jockey boxes, 294 Loans:
Johnson, Andre, 118 105–107, 109 in extended-stay hotel
Jordan, Andrew, 49 using industry-wide, 110–111
Jucha, Mitch, 65 Leading Hotels of the World, 18 development project, 12–13
Jupiter Media Metrix: Le Chatton, Christophe, 257 for hotel construction, 9, 10
Legal issues, 205–214 Local economy, 6–7
on on-line travels sales, 27 Age Discrimination Act, 212 Lodging industry, structure of, 42–46
on web site visits, 29 Americans with Disabilities Act, Logos, 20
Long run job demands (on GM), 94,
Kem’s Cafe, 248 22, 25, 212, 439–442
Kettle Restaurant, 279 and civil liability of landowners, 95, 97
Key control: LOS (Level of Service) approach, 222
218–221 Lost/stolen guest property, 209–210
and crime, 214 and classifications of law, Loyalty:
legal issues and, 210–211
KFC, 269 206–207 brand, 36, 41, 47
Khan, Shujaat, 148 and employment law, 436–446 customer, 38, 434
Kirwin, Paul, 255 Family and Medical Leave Act, and frequent-stay programs, 317
Kitchen, 24 as HR issue, 422–423
Klampfer, Franz, 257 442–444 program at Harrahs, 402–403
Knights Inn, 44 Federal Labor Standards Act, rewards for, 339
Konrad, Alfons, 256 and room selection, 153–154
Kotschevar, Lendal H., 398 213–214
Krisam, 18 for food and beverage, 207–209
for housekeeping/maintenance,

209–210
how the law works, 205–207
for human resources, 211–214

Index 471

”Total Rewards” loyalty program, leisure, 15 and speed of Internet, 344
402–403 target, 309 and strategic alliances, 278–279
Market-driven pricing, 336 tips for, 309, 312
and turnovers, 434 Marketing, 304–348, 353–361. See also Market research department
Luggage, 151
Luxury properties, 268 Pricing; Sales revamping case study, 360–361
of beverage operations, 295 Market segments (segmentation):
Maid, see Guest room attendant and branded distribution company,
Maintenance and repair, see and data mining, 404, 406–407, 411
19 effects of, 2
Engineering department the Bristol Hotel Company, hotel-guest, 407
Maîte d’hôtel, 243 marketing programs for, 317
278–279 and new hotel development, 7
and catering, 283 centralized function for, 319 online rates broken out by, 32, 33
in classic hotel organization, 69 as circular process, 318, 320–321 and positioning, 311
Management: and consumer decision rules, and pricing, 342, 343
and data mining, 411–412 and reservations organizations, 17
and increased profits, 132 321–334 for spas, 55–57
policies, 454 costs, 306 Market share, 319
relations and engineering, creating awareness/stimulating Marriott:
associates opinions of, 88
197–198 demand in, 311–314 competency models at, 111
of stress, 63 and customer satisfaction, 316–318, core belief at, 86
styles of, 170–171 focus of, 19
Management company(-ies): 337 guest relations at, 156
and CRM, 46–47 and data mining, 402, 410–411 portfolio composition of, 45
examples of, 18 and defining identity, 308–309 and separation of
for extended-stay hotel definition of, 305–307
direct, 313 ownership/operations, 20
development project case study, and evaluating performance, Marriott, J. W. “Bill,” 133
12 Marriott brands:
and independent hotels, 15 317–318
portfolio composition of, 45 functional organization of, 80 business structure of, 18
selection of, for hotel development, and GM, 320 restaurant brands at, 278–279
10 in the guest service cycle, 126 Marriott Corporation:
as stake holders, 43 historical background for, 304 early yield management at, 133
Management contracts: implications of consumer decisions, and food and beverage operations,
and CRM, 50
franchise vs., 15 328–331 266
and hotel/restaurant relationships, independent hotels, 319, 320 restaurant brands at, 269
278 individual properties, 320 Marriott Hotels:
proliferation of, 15 and the Internet, 313, 319, 339–340, portfolio composition of, 44, 45
Managerial work roles (of GMs), strategic alliances of, 266
96–100 343, 344 Marriott International:
Managing: management of, 319 portfolio composition of, 44
distribution channels, 314–315 and managing distribution Marriott International, Inc.:
food and beverage operations, management services of, 10
239–250 channels, 314–315 Marriott Marquis, 268
marketing, 319 managing revenue, 315–316 Marriott Suites, 268
revenue, 315–316 market research department Massage, 62, 63
workplace violence, 228–229 Massagli, Don, 148
Managing Hotels Effectively, 72 revamping case study, 360–361 Mass hire, 25
Mandarin, 18 measures of, 318–319 McClane, A. J., 398
Marital status, 213 and nonprofit organizations, McClelland, David, 101
Market(s): McDonald’s, 269
global, 14–15, 21 353–360 lawsuit against, 208
hotel, 7 and pricing, 310, 334–345 marketing of, 348
as problem-solving tool, 320–321
as process, 305–321
and the revenue manager, 345–348
sales vs., 303, 313, 348–249, 353
Seattle Sheraton Hotel and Towers

case study, 353–360
situation, 309

472 Index

McKeever, David, 242 National Association of Catering Opening a hotel, 21–26
The Meat Buyers Guide, 398 Executives (NACE), 290 and architectural blueprints, 21–22
Media, 359–360 and human resources, 26
Medical certification, 443 National Association of Meat and interior graphics package, 25
Medical leave, 442–444 Purveyors, 398 and the model room, 22
Medical spas, 56–57, 62, 64 and opening day, 26
Medical tests, 440–442 National economy: and operational supplies and
Meetings: cyclical nature of, 3 equipment, 23–25
effects of, 2 pre-opening budget, 23
and coordination of hotel activities, and pre-opening staff plan, 22–23
82–86 National Executive Housekeeper’s and third-party vendors, 25
Association (NEHA), 187
example of regular, 251 Operating ratios, 246–247
of national associations, 354–355 Native American: Operational controller (GM as), 93,
pre-shift, 127–128 casinos, 419–420
typical structure of, 85 culture, 422 94, 97–99
Melon’s HR Solutions group, 453 Operational supplies and equipment
Mentoring: Natural surveillance, 221, 222–223
and the chief financial executive, Nebel, Eddystone C., III, 72 (OS&E):
Negligence: during opening of a hotel, 23–25
388–390 purchasing/warehousing/
and competency models, 103 and alcohol service, 209
by director of catering, 290–291 in civil lawsuits, 206–207 delivery/installation of, 24–25
Menu(s): and key control, 210–211 and the role of the OPM, 21
creation of, 289 NEHA (National Executive Operations. See also Engineering
wireless electronic, 248
Mergers of unions, 416, 417 Housekeeper’s Association), 187 department; Food and beverage
Middle market properties, 268 Neural networks (in data mining), department; Housekeeping;
Mineral springs spas, 57 Rooms operations/department
Mini-bar, 238 401, 408, 409 at Bristol Hotel Company,
Minimum wage, 213 New York Restaurant Group, 266, 279–280
Miraval’s Life-in-Balance, 54 food and beverage, 71, 239–250,
Mission statements: 269 291–298
and GMs, 115–116 Night supervisor, 185–186 front office, 152–156
Rancho Bernardo Inn, 115 Nishi, Dave, 146, 147 GM as operational controller,
Mississippi Region Affiliated Resorts Nonalcoholic beverages, 292 98–99
Noncompensatory decision rules, managing food and beverage,
(MRAS), 360 239–250
MOA Hospitality, 227 325–328 sales link to, 349–350
Mobil Travel Guide, 148 Nonprofit organizations, 353–360 separation of
Model of turnover, 431, 432 ownership/operations, 20
Model room, 22 classification of, 357 spa, 57–61
Modifications for disability, 441 control of donations to, 356–357 and strategic alliances, 279–280
Morris, Anna, 146 Nonsmoking rooms, 340 trends in bar, 248–249
Motel 6, 268 Norman, Ellis, 418–425 Operations project manager (OPM),
Motivation, 421, 422 21–26
”Motivators,” 435 OLAP (online analytical processing) OPM, see Operations project
MRAS (Mississippi Region Affiliated tools, 455 manager
Orchard Inn, 227
Resorts), 360 Older workers, 423–424 Organization(s), 69–88
Mrs. Fields, 266 Olive Garden, 266, 269 authority in, 74
Mrs. Parks Café, 266, 269 On-call personnel, 428 of beverage operations, 291–298
Multi-attribute attitude model, Online analytical processing (OLAP) of catering department, 282–284
charts for, 70, 78, 86–88, 178, 194,
323–325 tools, 455 293, 352
Online monitoring of room inventory, classic, 69–72
NACE (National Association of command in, 76–77
Catering Executives), 290 338
Online-pricing analysis, 26–36

of available rates, 31–34
methodology/limitations of, 29–30
recommendations based on,

34–36
and results of previous studies,

27–29
summary of findings of, 30–31

Index 473

committees and hotel, 83–85 Pacesetting management style, 171 Planning, strategic, see Strategic
delegation in, 77 The Packer 1990, 398 planning
for food and beverage, 241–242 The Palm, 248
hotel, 177–178 Palm Restaurant, 269 Plumbing system, 196
modern, 72–73 Paris Convention of 1883, 207 Policy (well-written), 438
for purchasing, 393 Park Avenue Café, 266 Pooled interdependence, 75
and reverse organizational chart, Parking facilities: Portable bars, 238
Porters, 283
86–88 and civil liability, 218–221 Positioning, 108, 109, 311
and rooms operations, 70, 77–79 and crime, 214, 217–218 Post-traumatic stress disorder
sales, 351–353 and environmental design,
structure of, 73–76, 86–88 (PTSD), 230
Organizational design, 73–86 221–224 Preemployment medical tests,
functional, 77–82 restrooms in, 223
and meetings, 82–86 risk management solutions for, 440–442
and organizational structure, 73–76 Preferences (customer), 38, 39
static principles of, 76–77 217–227 Preferred Hotels and Resorts
Organizational developer (GM as), security of, 217–218, 220, 226
and signs, 225–226 Worldwide, 18
97–100 Park Place Entertainment, 453 Pregnancy, 212
Organizational stability, 95, 99 Part-time workers, 428 Pregnancy Discrimination Act of
Organizational structure, 73–76, 454 Passport, U.S., 444
Organization chart(s): Payment for rooms, 154–155 1978, 212
Peacock Alley, 248 Premise liability, 218–221
for beverage department, 293 Pegasus/Rezsolutions, 18 Priceline.com, 30, 314
for engineering department, 194 Percentage Increase pricing method, Pricing, 334–345
hotel, 70, 78, 178
reverse, 86–88 335 as art, science and intuition,
of a sales department, 352 Performance: 336–337
OS&E, see Operational supplies and
appraisals, 103 comparison of online rates, 29, 31–34
equipment evaluating, 317–318 consistent, 35, 36
OSHA standards, 187 as HR issue, 425, 427 creativity in, 340
Outrigger Hotel, 146 Perishability, 349–350 current criteria for, 336
Outside the box thinking, 299–300 Personalization: and diversification, 341
Outsourcing: and CRM, 41 elasticity in, 344–345
in CRM, 40 human resources in, 340–341
and food service, 237 at Wyndham International, 49 Internet, 26–36, 338–340, 343–344
of HR function, 426–428 Personnel: market-driven, 336
as HR issue, 419 in beverage operations, 296, 297 online, analysis of, 26–36
Overbooking: in engineering, 193–197 ownership of, 336
legal issues and, 210 food and beverage, 243–244 and quality, 343–344
and legal liability, 210 in housekeeping, 183–187 role of technology in, 338–339
Overtime wages, 213 management, 296, 297 setting, 310
Owners: Personnel department, see Human supporting/protecting, 341–343
and CRM, 47 three forces of, 334
as stake holders, 43 resources traditional approach to, 334–336
Ownership: Phillips, Gregg P., 230 and yield management, 337, 344,
and branded distribution Physical dispersion, 75
Picks Food Courts, 266 345
companies, 17, 19 Pied Piper pricing method, 335 Privacy, 209
and CRM, 48 The Pierre: Private placement memorandum, 12
and REITs, 43 Problem-solving tool, 320–321
Ownership entity: best-practices at, 253, 254, 257, Produce Marketing Association, 398
creation, 7–8 263–264 Product brandings, 268, 269, 277. See
for extended-stay hotel
controlling costs at, 261–262 also Branding
development project case study, purchasing at, 243 Productivity:
12 Pizza Hut, 266, 269, 279
Planet Hollywood, 269 distribution, 315
sales, 312
tips for marketing, 316

474 Index

Product quality, 258–260 Quality: Recruitment:
Profits: in food and beverage department, and competency models, 102
258–260 suggested new HR practice for,
benefits of enhanced, 132 in food and beverage operations, 453
and food and beverage best 245
of lighting, 222 Red Lobster, 269
practices, 264 and pricing, 343–344 Reengineering, 70, 71
service-profit chain, 434 record of general contractor, 9 Refrigeration, 197
Profitability: standards, 20 Regent Hotels and Resorts, 253, 254
and budgeting, 384–386 of water service, 196 Regional organizations, 360
changing expectations of, 391 Registration, 126
and employee satisfaction, 430 Quality assurance training, 126–127 Regression-type models (in data
of hotel/restaurant strategic Quantity Food Purchasing, 398
Query tools (in data mining), 401 mining), 401
alliances, 280–281 Quid pro quo sexual harassment, 212, REITs (Real Estate Investment
of spas, 57
and turnover, 434 436–438 Trusts), 43
Profit centers, 131 Quinn, Dennis, 141 Relais and Chateaux, 18
Prohibition, 235 Quintessentially, 145 Relationship building, 128, 130
Projection (ten-year), 7, 9 Relationship issues, 93–95, 97
Project Management Institute, 345 Radio station, 359–360 Relationship management, customer,
Promotions: Radisson, 268
and demand, 313, 314 Radisson Hospitality Worldwide: see Customer relationship
nonprofit, 359–360 management
and selling, 349 strategic alliances of, 266 Remmington’s, 271, 273, 274
Promus Corporation, 266 Radisson Hotels Worldwide, 269 Renaissance:
Protea, 344 portfolio composition of, 44, 45
Psychological determinants of food and beverage trends at, 248 Renaissance Sea World Resort:
Jack Geddes, 27 foodservice at, 242
demand, 411 Ramada Inn, 268 Request for Proposal (RFP), 284
PTSD (post-traumatic stress foodservice at, 242 Requests (customer), 157
portfolio composition of, 44 Reservation(s):
disorder), 230 Rancho Bernardo Inn, 115–116 affiliations, 16–17
Public accommodation, 212 Randall, John, 266 analysis of online, 26–36
Public relations: Rate(s) (room): and available rates, 31–34
active management of, 35 function of, 78
and GMs, 117 average daily rate, 306 guarantees for, 154
and nonprofit organizations, best available rates, 342 in the guest service cycle, 126
category controls for, 134–136 legal issues and, 210
353–360 clustering, 133–134 and legal liability, 210
and selling, 349 and group bookings, 138 and revenue manager, 347
Punitive damage, 206 length-of-stay controls for, Residence Inn, 44, 45, 268
Purchasing: Resort spas, 55–56, 61–62, 64
and corporate 136–137, 140, 141 Resource allocator (GM as), 98, 99
methods of setting, 335 Respect, 112
direction/interaction, 397, 398 online, 29, 31–34 Respondeat superior, 207
the function of, 391–399 and room selection, 153 Restaurant:
independent consultant for, 243 verifying at check-in, 153 brands, 269
and interdepartmental Ratio of beverage sales to food sales, design/conceptualization,
260–261
relationships, 393, 396 247 increasing revenues at, 131–132
organization of, 393 Real Estate Investment Trusts Restrooms, 223
of OS&E, 24–25 Retaliation:
sample job descriptions for, (REITs), 43 fear of, 438
Reasonable accommodation, 439–442 and sexual harassment, 439
394–396 ”Reasonable duty of care,” 437–438 Retention rates, 319
sources for, 397, 398 Receiving, categories of, 393 Retirement, 424
Purchasing director, 366–367 Reciprocal interdependence, 75–76
Purchasing manager, 391 Record maintenance, 454
and criteria for decisions, 396 Recreation supervisor, 186–187
daily life of, 397
knowledge of the, 366
sample job description for the, 394

Index 475

Return on investment: Rooms, director of, 173–174 and link with operations, 349–350
attention focused on, 2, 3 Room service: management of, 351
and engineering department, 192 marketing vs, 303, 313, 348–249, 353
and food service, 236 and Good Eats Grill, 279–280 online, 27
as subunit, 80 organization, 351–353
Revenues: trends in, 249–250 productivity tips, 312
from food and beverage sales, Rooms operations/department, and room models, 22
245–246 skills for, 311, 312, 314
increasing restaurant, 131–132 121–163, 176–177 and support staff, 349
managing, 315–316 bell stand’s role in, 150–152 training/turnover/sales analysis,
maximizing customer, 37 concierge’s role in, 143–149
revenue management game, Coug Inn front desk case study, 449–450
141–143 Sales per available seat, 247
rising room, 319 162–163 Salmonella, 208
spa, 50–51 daily life of the FOM, 127–131 Sammons, Gail, 419–420, 426–428
of spas, 57–59 director of rooms, 173–174 Sara Lee, 266
spa treatment type vs., 62–63 Disney Orlando resort hotels case Savoy group, 41
Scheduling:
Revenue management, 337 study, 139–141
Revenue manager, 345–348 and engineering, 72 concerns for housekeeping,
Reverse organizational chart, 86–88 front desk’s role in, 152–156 180–183
Reward systems, 103 functional organization of, 77–79
RFP (Request for Proposal), 284 and group bookings, 138–139 of meetings, 83–86
Risk management: guest relations, 156–158 Schultz, Joanne, 255
legal issues for, 210–211 Scoops Diner, 271, 273, 274
additional strategies for, 224–227 and length-of-stay controls, Seafood Business Magazine, 398
and alcohol management, 224 Seattle Sheraton Hotel and Towers
and civil liability, 218–221 136–137, 140, 141
and contractual provisions against as line operation, 71 case study, 353–360
new FOM case study, 161 Seattle Symphony, 359
loss, 226 personal experience in, 149–161 Section housekeeper, see Guest room
and crime-prevention program, 220 and rate category controls, 134–136
and environmental design, 221–224 roles/responsibilities of the FOM, attendant
for public safety, 217–227 Section housekeeping aid, 184–185
and security audit, 226 124–127 Security, 171–173
Risks of hotel developer, 13 the rooms department, 176–177
Ritz-Carlton, 268 in typical hotel organization, 70 audit for, 226
advertising at, 349 and yield management, 131–143 function of, 79
guest-histories at, 41 Roquefort, Guy de, 143–144 interdisciplinary security plan case
Riviera Hotel and Casino (Las Ruth’s Chris Steakhouses, 266, 269
RyanAir, 28 study, 230–231
Vegas): legal issues and, 214
food and beverage trends at, 248 Safes (hotel), 210 location of personnel for, 223
foodservice at, 242 Safety: patrols, 224–225
Roman Catholic Church, 72 risk in parking facilities, 217–218,
Ronald McDonald, 348 additional strategies for, 224–227
Room(s): and environmental design, 221–224 220, 226
nonsmoking, 340 in housekeeping, 187 Security manager, 172
selection of, 153–154 in parking facilities, 217–218 Segments, see Market segments
Room attendants, 283 and violence in the workplace,
guest contact skills of, 189 (segmentation)
number needed, 180 227–231 Self-management, 104, 105, 108–109
standard for number of rooms Sales, 348–253 Senior housekeeper, see Floor

cleaned by, 180 and budgeting, 384, 385 supervisor
standard operating procedures for, for catering department, 284–286 Senior housekeeping aid, 185
compensation for, 312 September 11, 2001 terrorist attacks,
184 from food and beverages, 245–246
Room availability, 314–315 of food and beverages, 245, 296 391
Room rates, see Rate(s) (room) foodservice, 241 effects of, 3, 13, 456
functional organization of, 80 and HR, 456
legal issues for, 211 Sequential interdependence, 75
Serious health condition, 442
Service business, 349–350

476 Index and revenue vs. treatment type, Strategic alliances, 265–281
62–63 Bristol Hotel/Good Eats Grill
Service expectations, 116 example of, 267–275, 278–281
Service process (for catering), segments in, 55–57 and contract relationships, 278
Spa Mystique business problem critical elements to consider for,
284–286 277
Service-profit chain, 434 analysis, 65–67 and finance, 280–281
Service vision (strategic), 95 trends in, 63–64 and marketing, 278–279
Sexual harassment, 212–213, Space (and group bookings), 138 and operations, 279–280
Spa Mystique business problem and product brandings, 268, 269
436–439 and profit centers, 131
Sexual orientation, 213, 426 analysis, 65–67 selection process for, 275–278
Shareholders, 132 Span of control, 74–75 table of, 266
Sheraton, 268, 279, 336, 342 Specialization of jobs, 73–74, 81, 82 value of, 265–267
Speed racks, 294–295
food and beverage trends at, 248 Spirituality, 426 Strategic planning:
portfolio composition of, 44, 45 SRS Hotels, 18 by HR, 447–448
Sheraton Hotels: Stability (organizational), see and long-range budgeting, 378
foodservice sales at, 241
Shin, Caroline, 336, 337, 339–342 Organizational stability Strategic positioning, 108, 109
Short run job demands (on GM), Staff functions, 74, 194 Strategic service vision, 95
Staffing: Street, Gene, 267
93–94, 97 Strength, weakness, opportunity, and
Shula’s Steak House, 248 of beverage operations, 297
Sight lines, 218 concerns for housekeeping, threat (SWOT) model, 445
Signage: Stress management, 63
180–183 Structure:
importance of in public safety, formula for computing, 180
225–226 Staff plan (pre-opening), 22–23 business, 7, 15, 18, 19–20
Stair towers, 223 of lodging industry, 42–46
and interior graphics package, Standardized information systems, 46, organizational, 73–76, 454
25 Studebakers, 266
48 Study. See also Case studies
and opening a hotel, 22 Standard operating procedures of budgeting/forecasting, 378,
at swimming pools, 186
Simultaneity, 350 (SOPs), 184 384–387
Site for new hotel, 6 Starwood brands, 339 of turnover, 434–435
Six Continents, 44, 45 Subcontracting, 286–287, 428
Sizing of spas, 61–63 business structure of, 18 Succession planning, 103
Sleep Inn, 268 food and beverage trends at, 249 Suites, 268
Small Luxury Hotels, 18 portfolio composition of, 45 Summerfield Suites by Wyndham,
Smith, Mary S., 222 Starwood Corporation:
Social events, 355–356 data mining at, 402 44
Social Security card, 444, 445 Starwood Hotels and Resorts Summit, 18
Software: SunRise Hospitality outside the box
Affinium, 402 Worldwide, 336
data mining, 402, 406 portfolio composition of, 44 thinking case study, 299–300
E.piphany E.4, 402 Starwood W Hotels, 336 Sunset Hotels and Suites case study,
GoConcierge, 146 guest relations at, 156
for yield management, 338 lifestyle focus of, 309 118
Sold-out dates, 134–136 and positioning, 311 Super 8, 44
Sommelier, 283 State decisis, 205 Supply-chain management, 399
SOPs (standard operating Statistical modeling, 400–402 Supranational, 18
Statutory law, 206 Survey(s):
procedures), 184 Steigenberger, 18
Spa(s), 50–67 Sterling, 18 of engineering department,
Stewards, 283–284 199–205
classification of, 54–57 Stock prices, 3
demand for, 51–52, 58, 63 Stolen property, 210 of financial/technology
determining size of, 61–63 Stoner, Rod, 256, 264 professionals, 368–377
and the importance of health Storeroom clerk, 395–396
Storeroom supervisor, 394–395 guest, 247, 317–318
issues, 52–54 of lodging competencies, 106–107
operations, 57–61

Index 477

Swimming pool(s): for distribution productivity, 315 in marketing costs, 306
attendants, 186–187 for marketing, 309, 316 in spas, 63–64
and civil suits, 209 for pricing, 310 TRUST, 18
for sales productivity, 312 Turnover, 429–435
SWOT (strength, weakness, Title VII of the Civil Rights Act of of beverage operations, 297
opportunity, and threat) model, causes of, 431, 432, 434–435
445 1964, 212 and compensation, 449
Tomes, Denise, 230–231 effects of, 433
Systems, director of, 81 ”Total Rewards” loyalty program, as HR challenge, 416
negative outcomes of, 432–433
Taco Bell, 269 402–403 training/turnover/sales analysis,
Taco John’s, 266 Trademark protection, 207
Target markets, 309 Trader Vic’s, 266, 269 449–450
Task certainty, 74 Training. See also Education
Task integration, 74–75 UCC (Uniform Commercial Code),
Task similarity, 74 for bell staff, 151 208
Technical specialists, 196–197 for beverage operations, 297
Technology. See also Data mining; card-dealer, 422 Unemployment, 429
and competency models, 102 Unica Corp., 402
Information management and cross-training, 243, 389–390 Uniforms, 24
technology customer service, for spas, 59–60 Uniform Commercial Code (UCC),
in bell stand, 150–151 and data mining, 409
and budgeting, 383 for front desk, 155, 156 208
and changes in the global market, Internet, 428 Unions, 417–419, 422
14–15 at Marriott, 87 Unity of command, 76–77
and chief financial executives, for new hotel hires, 25 University of Nevada, 244, 297
376 outsourcing of, 426–428 Utell Flag International, 18
and the concierge, 146 and quality assurance, 126–127
and CRM, 39–42, 46 and sexual harassment, 437, 438 Vacation resorts, 2
e-commerce, 16, 19, 26–27 and span of control, 74 Vacation Station program, 247–248
effects of, 2 suggested new HR practice for, Value of spas, 61
and engineering department, 203, Variance analysis, 203
204 453 Video conferencing, 146
engineering management of, 197 training/turnover/sales analysis, Villager Lodge, 44
and financial information, 203 Violence in the workplace, 227–231
and HR, 455–456 449–450 VIP levels, 154
role of, in pricing, 338–339 and workplace violence, 228, 229 Visualization tools (in data mining),
video conferencing, 146 Transient rate categories, 134
Telephone, 150 Travel Industry Association of 401
Tenure/performance philosophy, Vizer, George, 256
431 America (TIAA), 27 Voice distribution channels, see
Testing of products, 396 Travelocity, 314
Texas Instruments (TI), 348 Central reservations service
T.G.I. Friday’s, 259, 266, 269, 279 and brand loyalty, 36 VRIO analysis, 445
Third-party vendors, 25 brands’ usage of, 30, 31
THISCO (The Hotel Industry as distribution channel, 30 Wages, 213–214
Switching Company), 31 rates available on, 32–34 Waldorf-Astoria:
360-degree feedback, 103 Travelodge, 44, 268
Thurston, Robert, 144 Travel patterns, 2 best-practices at, 253, 254, 257,
TI (Texas Instruments), 348 Travelweb: 264
TIAA (Travel Industry Association brands’ usage of, 30, 31
of America), 27 as distribution channel, 30 controlling costs at, 262
Tips: rates available on, 32–34 food and beverage trends at, 248
for communication/promotion, Treatment type (spa), 62–63 quality assurance training at,
312 Trends:
in bar operations, 248–249 126–127
in beverage operations, 295–296 Wall Street, 3
in catering, 286–287 Wal-Mart, 225
in HR, 417–428 Walt Disney Orlando resort hotels

case study, 139–141

478 Index

Walt Disney World Marathon, 140 Westin Century Plaza: Wyndham:
Walt Disney World Resorts and Spa Mystique business problem best-practices at, 253, 254, 257–259,
analysis, 65–67 262
Theme Parks: business structure of, 18
best-practices at, 253, 254, 257, Westin Santa Carra: portfolio composition of, 45
video conferencing at, 146
263 Wyndham Hotels and Resorts, 44
food and beverage awards at, Wilbert v. Metro Park Dist. of Wyndham International, 44, 48, 49
Tacoma, 227 Wyndham Luxury Resorts, 44
263
restaurant design at, 261 Wilson, Kemmons, 248 Yates, Sally, 146–147
Wasteful habits, 193 Winegardner & Hammons, 454 Yield management, 131–143
Water service, 196 Wine steward, 283
Web sites. See also Internet WINet system, 402–403 concepts of, 133
for catering information, 287 Wireless electronic menus, 248 Disney Orlando resort hotels case
consumer visits to, 29 Wisniewski, Sandra, 230
hotel company, 30–36 Witnesses, 226 study, 139–141
Weighted additive model, see Multi- Women: and financial health, 315
goal of, 133–134
attribute attitude model as HR issue, 425, 426 and group bookings, 134, 138–139
Wellness, 51–53, 55 and spas, 51 history of, 133
Wentzell, Lloyd, 242 Woods, Robert H., 419–427 and length-of-stay controls,
Werner, William, 417–419, 421, 424, Work performance, 425
Workplace violence, 227–231 136–137, 140, 141
426, 428 Work roles, 96–99 obstacles to implementing, 132
Western Hotels, 266 Workstations, 152 and pricing, 337, 344, 345
Westin, 268 WorldRes: and rate category controls, 134–136
brands’ usage of, 30–31 and revenue management game,
focus of, 19 as distribution channel, 30
food and beverage trends at, 248 rates available on, 31–34 141–143
guest relations at, 156 Wrongful discharge, 211 software packages for, 338
portfolio composition of, 44, 45 Young, Cheri, 418–428
Trader Vic’s, 266