HAT206 Journal 3

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International Journal of Contemporary Hospitality Management8/7 [1996] 63–74

© MCB University Press [ISSN 0959-6119]

Hospitality operations: patterns in management,service improvement and business performance

Richard TeareResearch Director (Europe) Worldwide Hospitality and Tourism Trends, University of Surrey, Guildford, UK

Provides an overview ofdevelopments in hospitalityoperations management asreflected by articles pub-lished in: International Jour-nal of Contemporary Hospital-ity Management, Interna-tional Journal of HospitalityManagement, InternationalJournal of Service IndustryManagement and ServiceIndustries Journal during1995 (business performance,customers and serviceimprovement, operations andthe curriculum, strategy anddevelopment) and during thesix-year period 1989-1994(structural relationships inhospitality and tourism,operations and businessdevelopment, strategy andsystems development, humanresource development andquality improvements).

Introduction

The aim of this article is to review emergingthemes and sub-themes as reflected by arti-cles published during 1995 in the Interna-tional Journal of Contemporary HospitalityManagement, International Journal of Hospi-tality Management, International Journal ofService Industry Management and the ServiceIndustries Journal. The second part of thearticle reflects on patterns of thinking anddevelopment by drawing on literature fromthe same journals published over a six-yearperiod (1989-1994). A summary of the issuesraised in the article is provided in the form oftwo thematic diagrams relating to 1995 and1989-1994 respectively.

A review of 1995

The commentary is derived from a thematicframework encompassing four themes:1 business performance;2 customers and service improvement;3 operations and the curriculum;4 strategy and development.

Theme 1: business performance

The notion of “excellence” introduced byPeters and Waterman in the early 1980s wasderived from a study of successful firms,some of whom were unable to sustain theirachievements in the longer term. Caruana etal.[1] evaluate the concept of business excel-lence using a modelling technique known asEXCEL and a sample of large UK servicefirms. While organizations strive for excel-lence, individual managers are often left tounravel the puzzle for themselves andPeacock[2] analyses the tensions betweendifferent notions of “success” as they relate tothe institutional settings in which hospitalitymanagers work. He concludes that there is noone “correct” definition of good job perfor-mance as the working environment, the typeof operation and the type of manager influ-ence how the job components are defined andthe criteria for successfully achieving them.

Managers depend on an array of tools togauge workplace success and it can be argued

that a balanced set of measurements areneeded. Brander Brown and McDonnell[3]investigate whether the balanced score-cardperformance measurement method providesa practical solution. They found that hotelgeneral managers saw benefits in preparing adetailed score-card for each of the areas ordepartments controlled by senior managerswithin an individual hotel, providing thescore-cards are reviewed and updated regu-larly. In this way, unit management teams canshare the responsibility for achieving goalsrelating to a set of critical success factors forthe unit as a whole. Yasin and Zimmerer[4]link the application of benchmarking to thehotel’s ability to achieve its goals in the areaof quality improvement. They present a prac-tical framework for this which defines boththe operating and service subsystems of thehotel and propose specific methods for qual-ity improvement in each.

Information technology provides a feasibleway of harnessing full operational capabilityand Donaghy et al.[5] review the applicationof yield management to profit maximization.A common use is to compute market sensitivepricing of fixed hotel room capacity for spe-cific market segments. The authors examinethis and provide a structured operationalframework for focusing on ten key areas inhospitality operations. The main challenge isto engage the full potential of informationtechnology and Crichton and Edgar[6] arguethat the key element in managing complexityis to seek a balance between supply anddemand-side technology. They foresee that astechnology develops further, the concept ofmanaging complexity as opposed to simplyminimizing or adapting to it will becomemore important (see Table I).

Theme 2: customers and serviceimprovement

The concept of mass customization hasemerged in part, from a decade of debatecentred on the mass production of inexpen-sive, commodity-like products or services(the assembly line approach) on the one handand premium-priced, individually-tailoredand highly differentiated offerings on the

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Richard TeareHospitality operations:patterns in management,service improvement andbusiness performance


other. Hart[7] observes that much of thepower of mass customization, like total qual-ity management before it, lies in its visionaryand strategic implications. Its applicationshould enable companies to produce afford-able, high-quality goods and services, butwith shorter cycle times and lower costs. Thekey dimensions of his diagnostic frameworkfor assessing the potential for masscustomization are: customer sensitivity,process amenability, competitive environ-ment and organizational readiness. Taylorand Lyon[8] discuss the application of masscustomization to food service operations andits likely adoption in a rapidly maturingmarketplace. A compatible step is for man-agement to create an appropriate form ofinternal customer orientation and Stauss[9]notes that a deliberate and sustained effort isneeded to create a climate that promotes acustomer’s viewpoint of work activities,processes and non-standardized supportservices. Customer orientation also implies areadiness to measure, and where necessaryimprove, the quality of service and support inkeeping with customer expectations. Lee andHing[10] assess the usefulness and applica-tion of the SERVQUAL technique in measur-ing service quality in the fine dining sector.They demonstrate how easily and inexpen-sively the technique can be used to identifythe strengths and weaknesses of individualrestaurants’ service dimensions. A periodic

audit of customer service deliverables mightalso be usefully conducted and Congram andEpelman[11] recommend the use of the struc-tured analysis and design technique (SADT).This enables service providers to review theprocesses in which they participate, identify,implement and review improvements in ser-vice delivery and rethink aspects of the ser-vice package.

The interpersonal aspects of service deliv-ery are potentially the most difficult to auditand improve. A useful starting point is toundertake a programme of job analysis forservice staff to identify the best fit betweentasks, behaviours and personal attributes.Papadopoulou et al.[12] identify the dimen-sions of a higher customer contact food andbeverage operative’s job as perceived by man-agers, supervisors and operatives and exam-ine within-source and between source-differ-ences in perceptions. Their study confirmsthe versatility of job analysis as an organiza-tional and diagnostic tool. Among other uses,it depicts the dimensions of a job, the relatedpersonal qualities and experience and thetraining implications. In most cases, it is alsohelpful to profile ideal combinations of ageand experience for different service roles,especially as the industry relies heavily onyounger workers[13].

Corporate level concern about servicequality issues has stimulated interest inemployee empowerment. In theory, empowered

Table IBusiness performance

Authors Focus Sub-theme

Caruana et al.[1] Evaluates the concept of business excellence using a Business excellencemodelling technique known as EXCEL and a sampleof large UK service firms

Peacock[2] Analyses the tensions between different notions of Job performance“success” as they relate to the institutional settingsin which hospitality managers work

Brander Brown Investigates whether the balanced score-card Performance measurementand McDonnell[3] performance measurement method provides a sufficiently

quick yet comprehensive view of unit performance

Yasin and Links the application of benchmarking to the Benchmarking and Zimmerer[4] hotel’s ability to achieve continuous quality improvement quality improvement

Defines both the operating and service subsystems of thehotel and proposes specific methods for quality improvementin each

Donaghy et al.[5] Reviews yield management – a profit maximization Yield managementstrategy – in relation to the market sensitive pricing of and profit performance fixed hotel room capacity relative to specific market segments.

Crichton and Argues that as technology develops further, the concept Information technologyEdgar[6] of managing complexity as opposed to simply minimizing and competitiveness

or adapting to it will become more widespread

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employees will be more committed to ensur-ing that service encounters satisfy customersas they have the necessary discretion andautonomy to “delight the customer”. Lash-ley[14] explores the implications of empower-ing employees and provides a framework forunderstanding managerial motives in select-ing different forms of empowerment andtheir consequences for achieving improve-ments in customer service quality. To supportempowerment and other customer-led initia-tives, training and development is needed.Clements and Josiam[15] outline a step-by-step procedure to evaluate both the costs andthe benefits of any training proposal. Theirapproach utilizes a financial analysis modelfor identifying the dollar value of both perfor-mance outcomes and training costs. Whileinterpersonal skills development and supportis needed for service staff, supervisors and

managers need to make appropriate deci-sions and Gore[16] examines some of thetheoretical models of decision makingderived from the field of psychology and con-siders the related implications for training indecision making (see Table II).

Theme 3: operations and thecurriculum

While industry and education necessarilycontextualize their own agendas for learningand development, they might be expected toconverge around the core skills and knowl-edge that operatives, supervisors and man-agers need in order to function effectively inthe workplace. Nebel et al.[17] traced thecareer paths of hotel general managers (GMs)in American mid-range, upscale and luxury

Table IICustomers and service improvement


Hart[7] Proposes that much of the power of mass customization, Concepts of masslike total quality management before it, lies in its customizationvisionary and strategic implications

Taylor and Lyon[8] Argues that “mass customization” is replacing Customization andstandardization in food service operations fast food

Stauss[9] Argues that internal customer orientation does not occur Customer orientationnaturally but from management decisions which bring about an appropriate setting

Lee and Hing[10] Assesses the usefulness and application of the SERVQUAL Measuring service qualityinstrument in measuring and comparing service quality inthe fine dining sector

Congram Recommends the use of the structured analysis and design Process evaluation andand Epelman[11] technique (SADT) to review service processes, achieve improvement

improvements in service delivery and design a service

Papadopoulou Identifies the dimensions of a higher customer contact food Service performanceet al.[12] and beverage operative’s job as perceived by managers,

supervisors and operatives and examines differences inperceptions

Lucas[13] Reports a study of age-related issues in hotel and catering Age and industryemployment and confirms high reliance on younger workers employment

Lashley[14] Provides a framework for understanding managerial motives Empowerment andin selecting different forms of empowerment – a concept that customer serviceis largely concerned with the improvement of customer improvementservice quality

Clements and Outlines a step-by-step procedure to evaluate both the costs Training and performance-Josiam[15] and the benefits of any training proposal. The approach utilizes related outcomes

a financial analysis model to identify the dollar value oftraining inputs

Gore[16] Examines some of the theoretical models of human decision Training and decision makingmaking derived from the field of psychology and considerssome of the important issues this raises for training indecision making

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hotels and found that the two main opera-tional departments, food and beverage (F & B)and rooms, account for three-quarters of theGM career paths, with F & B representing 45per cent. This relatively narrow focus reflectsa traditional emphasis on gaining practicalexperience in operations management andother studies such as the one conducted byHsu and Gregory[18], have sought to identifyan industry professional’s view of the compe-tences needed for entry-level hotel manage-ment.

In “New visions for hospitality operationsmanagement” (IJCHM, Vol. 7 No. 5) Johnsand Teare[19] outline some of the changesthat have occurred in the hospitality businessenvironment during the 1990s and reviewchanges in skills, attitudes and competencesthe industry now requires. It is evident that amore robust systems approach is needed inresponse to a dynamically changing industryand Jones and Lockwood[20] provide a con-ceptual framework for reconciling traditionalthinking about the hospitality operationsmanagement curriculum with a multi-levelview of operating systems, process and out-put analysis. Kirk[21] reviews the systemsapproach to problem solving and operationalmanagement, including the differentiationbetween hard and soft systems. He arguesthat given the occurrence in most problemsituations of both technical and humandimensions, a hybrid of scientific, hard sys-tems and soft systems methodologies willgive the best solution. In making systemswork, Edwards and Ingram[22] contend thatmany of the techniques more usually associ-ated with manufacturing industries such ascapacity, forecasting, managing demand andscheduling can be just as easily applied tohospitality operations. Harris[23] goes fur-ther and demonstrates the application ofaccounting techniques to management deci-sion making in operational settings andexplains how closer integration might beachieved in the hospitality operations cur-riculum. In sum, these contributions contendthat a broader-based view of operating sys-tems is needed and that a more holisticapproach to operations management is desir-able in responding to the challenges andopportunities brought about by a rapid paceof change. If new thinking is reflected in thecurriculum, then to some extent students onplacement (and later as new entrants) willstimulate dialogue between industry andeducation provided that the “old” problemsfaced by experienced managers are addressedtoo. Ford and LeBruto[24] illustrate howaspects of curriculum innovation might beevaluated in their study of perceptions of expe-riential learning requirements of students

and new entrants while Yu and Huat[25] use aperception study to examine and analysecultural differences in managing hotel opera-tions among experienced, expatriate profes-sionals (see Table III).

Theme 4: Strategy anddevelopment

The interplay between market conditions andthe characteristic properties of any givenmarket segment is difficult to assess unlessan observable change is occurring. Nield andPeacock[26] report on a transition in the UKbrewing industry brought about by a greaterdegree of concentration during the past fiveyears, mainly owin to regulatory interven-tion. They observe that if further interven-tion is imposed at a European level, the UKbrewing business is likely to be characterizedby single focus strategies and become a morebrand oriented, market-led industry at theexpense of competition and ultimately of theconsumer. The fastest-growing sector of thehospitality industry in the USA is gaming-related business and Atkinson andLeBruto[27] report on a study of the expecta-tions of the investment community that isunderpinning its expansion. Specifically, theysought to determine whether investorsacquiring stock at the initial offering priceearn large returns on their investment, andtheir findings support this hypothesis.

Industry strategy is widely reported in theliterature and there are several notable sub-themes. Becker and Olsen[28] assess theappropriateness of generic managementapproaches to managing hospitality organiza-tions and conclude that an over-reliance ongeneric strategy is likely to have a detrimen-tal effect on the distinctiveness that hospital-ity firms seek to create in competing for mar-ket share. Collier and Gregory[29] explore theexpanding role of strategic managementaccounting (SMA) in the hotel sector throughcase studies derived from six UK hotelgroups.

SMA is defined as: “the provision andanalysis of management accounting datarelating to business strategy: particularly therelative levels and trends in real costs andprices, volumes, market share, cash flow andthe demands on a firm’s total resources”.Their study shows that the accounting func-tion in hotel groups is becoming increasinglyinvolved in strategic management account-ing, both in planning and in ad hoc exerciseson the market conditions and competitoranalysis. The issue of internationalization isaddressed by Burgess et al.[30], who present acritical evaluation of the literature relating to

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the internationalization of hotel groups,previous “success studies” and prescriptivestrategic management models in relation tomultinational hotel groups. Finally, the rela-tionship between strategy formulation anddecision making is examined by Ogden[31]who uses in-depth case studies to study theprocess of strategic decision making arisingfrom the management of compulsory compet-itive tendering for catering and cleaningservices, following the 1988 Local Govern-ment Act.

The role of employees in organizations,especially in relation to development issues,is reflected in a number of areas. Royle[32]examines the human resource policy of theMcDonald’s Corporation via its operations inGermany and the UK. The study focuses onthe makeup of the workforce, levels of union-ization and worker participation. Theseissues are analysed in the context of thedebate about the convergence or divergenceof behaviour in organizations and theincreasing globalization or economic activity.Moutinho et al.[33] describe the findings of a

positivistic comparative study undertaken inthree different European countries to assessthe perceptions of British, Irish and Spanishhotel managers. The study sought to relatemanagers’ opinions on a number of keyissues to the future development of the hotelsector. All the participating managersexpressed concerns about the conservation ofcultural heritage, the protection of buildingsand the local countryside, as well as the needfor the global protection of the environment.This issue is explored in some detail byAyala[34] who reviews strategies adopted bythe international hotel industry for achievinggreater environmental sensitivity and sus-tainability (see Table IV).

A review of emerging patterns:1989 to 1994

Structural relationships in hospitality andtourismTourism is an attractive and important indus-try for many small and developing nations. In

Table IIIOperations and the curriculum


Nebel et al.[17] Reports on a study of the career paths of hotel general Hotel general managermanagers in American mid-range, up-scale and luxury hotels career paths

Hsu and Gregory[18] Investigates and identifies the competences needed for Entry-point competencesentry-level hotel managers from the industry professional’s for hotel managerspoint of view

Johns and Teare[19] Outlines the changes that have occurred in the hospitality Re-aligning the curriculumbusiness environment and reviews the changes in skills,attitudes and competences the industry now requires

Jones and Reconciles the traditional view of hospitality operations Operations and systemsLockwood[20] based on process analysis, by identifying four levels of design

hospitality operations management

Kirk[21] Reviews the development of a systems approach to The curriculum and systemproblem solving and operational management, including theorythe differentiation between hard and soft systems

Edwards and Argues that many of the techniques in operations Manufacturing principlesIngram[22] management normally associated with manufacturing and service operations

industries can be just as easily applied to thehospitality industry

Harris[23] Presents an approach to hospitality operations curriculum Managerial decisiondevelopment which relates to the hospitality product and makingthe management decision making involved in operationsmanagement

Ford and LeBruto[24] Investigates the optimum time that hotel management Experiential learningstudents should spend in an experiential learning or and the curriculum“hands on” environment

Yu and Huat[25] Examines and analyses the perceptions of six management Competences fordifficulty factors by expatriate hotel professionals working expatriate managersin China

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Singapore, for example, tourism has beenfound to promote cultural diversity, a sense ofcleanliness and a feeling of pride[35]. Coun-tries new to tourism, however, need to con-sider the primary needs of foreign visitors. Ina study by Olokesusi[36] in Abeokuta, Nige-ria, tourists are encouraged to visit thedensely populated town that is suffering fromnoise pollution, lack of telephones, unreliablewater and electricity supplies. Countrieswith developed tourist industries such asBali[37] and parts of Mexico[38] face widelydiffering challenges though, in essence,matching supply and demand and protectingtourism receipts from inflation are key prior-ities. Europe cannot afford to be complacentabout traditional tourism markets. AlthoughEuropean tourism policies provide co-ordina-tion and support on planning and other mat-ters, member states need to develop their own

strategies if they wish to maximize incomingtourism. This is partly because fellow ECmembers compete with each other fortourism revenue[39].

Commercial success depends on carefulmarketing planning so as to offer the interna-tional tourist an array of benefits and facili-ties which compare favourably with compet-ing tourism destinations. The prerequisitesfor attracting foreign visitors are: a trans-portation infrastructure; hotel and restau-rant facilities and a safe and secureenvironment.

Operations and business developmentWhile internal systems and procedures areimportant mechanisms, Kim and Olsen[40]advocate a balanced approach by monitoringevents occurring in the external domain andassessing the potential impact on business

Table IVStrategy and development


Nield and Because of regulatory intervention, the UK brewing industry Industry structure andPeacock[26] has become increasingly concentrated. Asserts that if further Government policy

intervention is imposed at a European level, the trend willcontinue

Atkinson and The fastest growing segment of the hospitality industry is Growth sectors andLeBruto[27] gaming-related business. Reports on a study to determine the investment community

whether investors acquiring stock at the initial offeringprice earn large returns

Becker and Explores the role of heterogeneity in the study of service Sector specific orOlsen[28] organizations and illustrates the ill effects that can result generic strategy?

when generic strategies are applied indiscriminately

Collier and Explores the use which is made of strategic management Strategic managementGregory[29] accounting in the hotel sector through case studies at six accounting

major UK hotel groups

Burgess et al.[30] Reviews the literature relating to the internationalization Internationalizationof hotel groups, prior “success studies” and prescriptive and successful growthtrategic management models in relation to multinationalhotel groups

Ogden[31] Examines the process of strategic decision making arising Strategy, structure andfrom the management of compulsory competitive tendering employee relations(CCT) for catering and cleaning services following the1988 Local Government Act

Royle[32] Examines the human resource policy of the McDonald’s Internationalization andCorporation via its operations in Germany and the UK. industrial relations strategyFocuses on the makeup of the workforce, levels of unionization and worker participation

Moutinho et al.[33] Describes the findings of a positivistic comparative study Perspectives on hotelundertaken in three different European countries to assess sector developmentthe perceptions of British, Irish and Spanish hotel managers

Ayala[34] Assesses hotel sector strategies for achieving greater Environmentally sensitiveenvironmental sensitivity and sustainability from three designperspectives: ecotechniques, environmental sponsorshipand econ-packaging

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and unit level operations. External awarenessis also influencing trends in facilities man-agement and design. Improvements in energyconservation and recycling mean that“green” marketing strategies will be morewidely adopted in the future, especially asnew design technologies enable hotels andresorts to use natural resources more effi-ciently[41]. The notion of an “intelligent bed-room” which uses new generation informa-tion technologies for global communicationsand to monitor and adjust energy usage, espe-cially when the room is not in use, will help toestablish a new design standard for construc-tion. Coupled with this, productivity andperformance improvements could be readilymade by wider adoption of yield managementsystems.

A growing body of evidence suggests thatservice firms are experimenting with a widearray of approaches and methods designed tonarrow the gap between the provider and theconsumer of services. Edvardsson[42] arguesthat it is not sufficient to focus on theencounter with the customer but that organi-zations should study all the critical incidentsin the production chain so as to derive adeeper understanding of how weaknessesaffect customer satisfaction with the endproduct.

The alignment between groups ofcustomers which constitute marketsegments, product specification and consis-tent service delivery reflects the productdifferentiation challenge. It seems likely thatbrands based on customized service packageswill be needed in the future so that marketingstrategy emphasizes service enhancement aswell as socially and ecological responsibleleisure and tourism experiences.

Strategy and systems developmentThe literature reveals that some interestingstrategic planning adaptations are currentlybeing tested. Among these, Armistead[43] haselaborated a framework for a service opera-tions strategy that emphasizes consistentservice delivery in keeping with the expecta-tions of customers. Contributions in otherareas include innovative approaches tostrategic marketing planning and the use ofcomputer modelling and simulation in loca-tional analysis and market segmentation.Overall, the broad-ranging nature of pub-lished work points to a lack of systematicplanning, especially in relation to externalanalysis and the application of decision-making models and techniques to planningtasks and activities. Evidence suggests thatmore collaborative research is needed inthese areas with the objective of enabling

hospitality firms to systemize their planningeffort and release more time for creativethinking and innovation. Yet, there are someindications that systematic financial analysisproduces a number of positive outcomes,especially in terms of organizational perfor-mance. While computer technology can assistfinancial analysis and decision making, aconsensus of opinion exists both in industryand education that hospitality managersneed to be able to interpret financial data inorder to derive benefits from investing infinancial information systems. In response,Harris[44] proposes an approach to financialplanning using computer-based spreadsheets.The spreadsheet models need not be large orcomplex to assist management decision mak-ing in an array of financial planning andcontrol situations.

The pace of change in the external businessenvironment means that systematic externalanalysis is an essential precursor to decisionmaking and strategy formulation. Evidenceshows that the principles of environmentalscanning have not been widely adopted andthat hospitality business executives are infact increasingly concerned about sources ofuncertainty and ways of assessing possibleimpacts more accurately in the future. Cou-pled with this, the strategic role of informa-tion systems has yet to be fully appreciated.

Human resource developmentIn general terms, rates of innovation in hospi-tality and tourism have been held back bytraditional methods and practices. This isparticularly the case in the human resourcesfield where low pay, low esteem jobs havecontributed to high rates of labour turnover.There are however, signs that differentapproaches to managing and deployinghuman resources are being tried. Severalwriters have reported encouraging resultsfrom studies of flexible working, and Luckockconcludes that job roles can be re-shaped in amore flexible way to suit both employees andemployers[45,46]. A more imaginativeapproach is needed, though, as a good dealmore could be done to make jobs more inter-esting, less stressful and less unsocial fromthe employee’s viewpoint. In the managerialdomain, while many experienced hospitalitymanagers have enjoyed successful careersand seem well suited to the nature of the workinvolved, there are some indications thatmanagerial roles are becoming more stress-ful. There are a number of key contributoryfactors and these include the breadth ofchoice available to consumers in maturemarkets, the pressure to “do more with fewerpeople” to preserve or enhance profit margins

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and the pace of change in business andcommerce as a whole. In response, someorganizations are seeking to build on theskills, talents and experience available tothem by establishing a “learning organiza-tion” culture, climate and approach to busi-ness and human resource development.

Evidence suggests that hospitality firmsare generally bound by traditional workingmethods and employment policy in compari-son with other service firms. A more open-minded approach is needed to maximize thepotential that exists in the industry’s skilledand unskilled workforce. The concept of life-long learning and the mechanisms for sup-porting this in hospitality organizations areyet to be firmly established. The impact ofnew technology, maturing markets, recessionand other agents of change means that man-agers, supervisors and operatives need toadapt and regularly update their skills andknowledge base. This calls for a closer part-nership between industry and education andmore flexible, work-based delivery mecha-nisms for education and training.

Quality improvementQuality management encompasses a broadrange of activity – from organization-widetotal quality efforts to perceptions of servicequality by customers experiencing service.Silvestro et al.[47] observe that many servicecompanies are developing their own systemsfor monitoring and measuring aspects ofservice quality. These include measures forinternal, external, “hard” and “soft” perfor-mance indicators and for tangible and intan-gible aspects of service. In hospitality andtourism services, it is an observable fact thata similar range of topics are being covered,especially in relation to: the role of quality inestablishing competitive advantage andsecuring market share; the cost of quality(and of non-conformance); the measurementof quality and systems for assuring quality.

If service standards are to improve, servicepersonnel need to be open to new and innova-tive ways of improving service delivery. Thekey implication here is that managers shouldseek to create an organizational atmospherewhich supports efforts to improve quality andenhances the nature of communicationsbetween employees and customers[48]. Inpart, the personalities of service staff deter-mine the extent to which employees are wellsuited to the role they perform. In this context,employee selection methods that draw onbiodata profiling and personality assessmenthave been shown to work effectively[49].

The diffusion and adoption of these andsimilar selection techniques may assist

efforts to reduce labour turnover andimprove customer satisfaction levels by defin-ing the job-person fit for different job roles.

The means by which excellent service isguaranteed to customers is a topical issueand there appears to be much scope for fur-ther research and innovation. The methodsused by industry to track customer satisfac-tion are typically incomplete or inadequatewith few exceptions, and more work isneeded, especially in relating customerexpectations of service performance. Further,organizational efforts to guarantee serviceexcellence requires a supportive infrastruc-ture that equips and empowers staff torespond to all customers in the supply chain,not just the external customer at the end ofthe line. The concept of continuous qualityimprovement (CQI) has yet to make a signifi-cant impact on the international hospitalitybusiness, yet it appears inevitable if organiza-tions wish to establish a quality-driven cul-ture. Cultural change will also mean a shift intraditional styles of management as team-working structures become better establishedwith the ultimate goal of a transition to self-managed work teams.

Summary observations

The review of 1995 identifies some of the prin-cipal contributions to development and debatein four areas (see also thematic diagram inFigure 1):• Business performance issues are explored

in relation to: notions of business excel-lence; job performance and performancemeasurement; benchmarking and qualityimprovement; yield management and profitperformance; information technology andcompetitiveness.

• Customers and service improvement issuesaddress: concepts of mass customization;customer orientation; service quality mea-surement; process evaluation and improve-ment; service performance, empowermentand training.

• Operations and the curriculum reviews:career paths and competences; operationsand systems design; managerial decisionmaking and notions of experiential learn-ing and the curriculum.

• Strategy and development considers: indus-try structure and development variables;strategic accounting; internationalizationand environmental sensitivity.

The review of 1989-1994 reflects broader-basedpatterns (see thematic diagram in Figure 2)as follows:

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• Structural relationships in hospitality and tourism (in the context of tourismdevelopment) can help to: promote cultural diversity; encourage improve-ments to transport and resourceinfrastructures; contribute to invisibleexports.

• Operations and business development(together with strategy and systems devel-opment) foresees greater interest in: envi-ronmental scanning; facilities manage-ment, communications and designtechnologies; energy conservation andperformance improvement.

Operations and thecurriculum

Career paths andcompetences

Hospitality operationsand systems theory

Managerial decision making

Broader, continuous career updatingis needed

“New” curriculum thinking needsto penetrate industry

A systems approach to hospitalityoperations management is needed

Product/service design, operations andmanagement decision making(as reflected by the curriculum)should be closely integrated

Customers andservice

improvement

Customization and customerorientation

Process evaluation andimprovement

Service performance,empowerment and training

Prioritize “customer responsiveness”

Use structured techniques toreview systems and processes

Define service performance “ideals”and empower employees to achievethem

Evaluate the performance-relatedoutcomes of training

Strategy anddevelopment

Industry structure anddevelopment

Strategy

Internationalization

Regulatory intervention has, in somesectors, influenced industry structureand European Union activities needto be monitored closely

The contribution of strategic accountingand the merits of generic approachesto strategy formulation are worthy offurther exploration

Business frameworks and cultural andcontextual frameworks require carefulpre-testing and specification

Businessperformance

Performance measurement

Benchmarking and qualityimprovement

Competitiveness

Customize generic measures tofit the organizational context

Adopt a balanced approach to CQIusing “hard” and “soft” measures

Use IT to manage complexityrather than minimize complexissues

Themes Sub-themes Proposed actions

Define operating and service sub-systems

Figure 1Review of 1995: summary of main themes and subthemes

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• Human resource development reports: agradual evolution in working methods andemployment policy characterized by a moreopen-minded approach; greater interest inthe concept of the life-long learning organi-zation and more flexible, work-basedschemes for education and training.

• Quality improvement observes that theconcept of continuous quality improvement(CQI) has not yet been widely adopted byindustry, though this, a team structure andself-managed work team activity are keyelements of a quality-driven organizationalculture.

Human resourcedevelopment

Traditional methods andpractices

Life-long learningorganizations

Flexible, work-based learning

Experiment with more flexibleapproaches to employee scheduling,training and personal development

Encourage continuous personaldevelopment by providing incentivesand support

Establish closer partnershipsbetween industry and education

Operations,business strategy

and systems

Structure and strategycoalignment

Communications andinformation technologies

Environmental scanning

Adopt a balanced approach tomonitoring internal and external events

Link physical and systems design tonew generation technologies andprovice for systems upgrades

Link environmental scanning to formaland informal information systemsmanagement, strategic planning anddecision making

Qualityimprovement

Service quality

Continuous qualityimprovement (CQI)

Teamworking structures

Develop relevant measures for internal,external “hard” and “soft”performance indicators and for tangibleand intangible aspects of service

Observe organizations with CQIexperience and seek to implant andadapt a CQI structure as the firsttowards establishing a quality-drivenculture

Gradually replace traditional styles ofmanagement with a teamworkingstructure with the aim of promotingself-managed work teams

Structuralrelationships

Tourism planning anddevelopment

Over-development(mass tourism destinations)

Competition among EuropeanUnion member countries

(tourism)

Promote cultural diversity

Regulate/restrict furtherdevelopment; re-distribute andredirect demand

Maintain and improve destinationattractiveness

Themes Sub-themes Proposed actions

Encourage improvements to transportand resource infrastuctures

Effective marketing planning

Fiˇˇˇˇ 2Review of 1989-1994: summary of main themes and subthemes

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References1 Caruana, A., Pitt, L. F. and Morris M. H., “Are

there excellent service firms, and do theyperform well?”, The Service Industries Journal,Vol. 15 No. 3, 1995, pp. 243-56.

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3 Brander Brown, J. and McDonnell, B., “Thebalanced score-card: short-term guest or long-term resident?”, International Journal ofContemporary Hospitality Management, Vol. 7No. 2/3, 1995, pp. 7-11.

4 Yasin, M. M. and Zimmerer, T. W. “The role ofbenchmarking in achieving continuous ser-vice quality”, International Journal of Contem-porary Hospitality Management, Vol. 7 No. 4,1995, pp. 27-32.

5 Donaghy, K., McMahon, U. and McDowell, D.,“Yield management: an overview”, Interna-tional Journal of Hospitality Management, Vol.14 No. 2, 1995, pp. 139-50.

6 Crichton, E. and Edgar, D. “Managing com-plexity for competitive advantage: an IT per-spective”, International Journal of Contempo-rary Hospitality Management, Vol. 7 No. 2/3,1995, pp. 12-18.

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9 Stauss, B., “Internal services: classificationand quality management”, International Jour-nal of Service Industry Management, Vol. 6 No.2, 1995, pp. 62-78.

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14 Lashley, C., “Towards an understanding ofemployee empowerment in hospitality ser-vices”, International Journal of ContemporaryHospitality Management, Vol. 7 No. 1, 1995, pp.27-32.

15 Clements, C. J. and Josiam, B. M., “Training:quantifying the financial benefits”, Interna-tional Journal of Contemporary HospitalityManagement, Vol. 7 No. 1, 1995, pp. 10-15.

16 Gore, J., “Hotel managers’ decision making:can psychology help?”, International Journalof Contemporary Hospitality Management, Vol.7 No. 2/3, 1995, pp. 19-23.

17 Nebel, E. C., Lee, J-S. and Vidakovic, B., “Hotelgeneral manager career paths in the UnitedStates”, International Journal of HospitalityManagement, Vol. 14 No. 3/4, 1995, pp. 245-60.

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Documents

HAT206 Journal 3