MBAAR

Table of Content

Introduction.............................................................................................................................................11

Body..........................................................................................................................................................12

1.1 Evaluate the interrelationship between the different processes and functions of Liberty...........12

1.2 Justify the methodology to be used to map processes to the organisation’s goals and objectives.

..................................................................................................................................................................15

1.3 Evaluate the output of the process and the quality gateways.........................................................19

2.1 Design plans which promote goals and objectives for your own area of responsibility................23

2.2 Write objectives, which are specific, measurable, achievable, realistic and time - based to align

people and other resources in an effective and efficient way................................................................27

2.3 Implement appropriate systems to achieve objectives in the most efficient way, on time, to

budget and meeting organisational standards of quality......................................................................30

2.4 Carry out work activities meeting the operational plan through effective monitoring and

control.......................................................................................................................................................32

Conclusion................................................................................................................................................33

References................................................................................................................................................34

MBAAR A1 QCF MAY 2014 UTE 10

Introduction

Liberty Hospitality Management Company is the company who is managing five hotels under

two brands include Liberty Central Hotel and Liberty Hotels with over 500 rooms in Saigon.

Every year, Liberty’s reputation is raised higher and higher because of offering comfortable

accommodation and reliable with competitive price compare to various competitors. “Looking

for a hotel in Ho Chi Minh City for your next business trip or vacation? Liberty Hospitality

Management Company operates some of the best 3 to 4 star hotels in Saigon. Whatever are your

interests, we make it easy to find hotels and amenities in Ho Chi Minh City that you are looking

for. You can book with us online, quickly and conveniently” (libertyhotels, nd). Liberty’s

directors have decided appoint a new general manager to identify the structure of management

and culture of hotel to improve the operational efficiency. Therefore, as the position of new

assistant general manager, this report will provide information to general manager about the

interrelationship of different processes and functions, output of process and quality gateways,

and the implementation of working activities meeting the operational plan through effective

monitoring and control.


Body

1.1 Evaluate the interrelationship between the different processes and functions of Liberty.

The structure of Liberty Hospitality Management Company (LHMC)

There are many types of organization structure such as matrix structure or functional

specialization and geography area or brands/ products. Therefore, according to the scenario,

Liberty is now following the functional structure and this structure will be showed in detail

below.

With the structure above, Liberty will have some advantages and disadvantages:

Advantages Disadvantages

Divide labor’s work more effectively.

Concentration on knowledge, appropriate and

necessary equipment in every single

department.

Better campaign on customers, reduce waste

of time, cut down the rate of accident to

minimum, more efforts on TQM, and enhance

quality of every functional staff.

Every department will have specific and clear

plan or project.

Poor communication and relationship because

the employees only focus on their own

functions of department and they cannot share

to employees from other department.

Employees from separate department do not

have enough perception about the objectives

and mission of enterprise.

Poor co – operation between department

when solve issues of company.


General manager

Human Resource

Marketing and sale

Room service Finance Purchasing Food/

drink Security

The inter – relationship between the different processes and functions of Liberty

Function Task

Human

resource

department

Managing and monitoring labor force, teaching and training employees to get used

to with new equipment or new knowledge.

Marketing and

sale department

Study and analyze new markets or new customers to know and understand it more

clearly. Introducing, distributing and promoting new products, and manage sales

channels. These two functions can combine together because marketing activities

assist and improve sales activities.

Room service

department

Cleaning the room when customers take it and serve them when they need or do not

understand about something.

Finance

department

Controlling all the cost which can be happen during forecasting and calculating

expenses to appropriate with the budgets of company.

Purchasing

department

Carrying about the expenses include equipment, facilities of hotel and extra service

for customers if they need.

Food/ drink

department

Undertake to provide delicious food such as restaurant, buffet or barbecue for

customers and drink like bar or pub.

Security

department

Responsible for the safety of customers and customers’ property.

Through the detail of process which have been showed above combine with structure of Liberty,

it is very easy to see the relationships of departments in the company is not good because the

communication and co – operation of functions are weak. Therefore, the exchange of

information of each departments will be lack lead to difficult to solve issues.

In fact, when map processes are set up, all of the functional department of company have an

overview about critical activities, then the core processes are the main point which need to carry

out to achieve objectives more effectively. In specific time, they can identify needed resources

and create relationships with different functions to support with each other and finish the target

together. However, the conflicts are also occur when these functions do not agree about the ways


to implement the tasks lead to the outcome and operation of company will be affected. At that

moment, they have to looking back to their common goal which means the goal of Liberty is the

most important and listen to every single person to understand more to find out suitable

solutions.

Therefore, all functional departments and processes of Liberty must running and support together

to have a close inter – relationship and mutual interaction. When all of Liberty’s departments and

processes running together, the hotel will run smoothly to serve customers with the best quality

and help Liberty avoid serious issues, conflict in communication and unnecessary tasks.


1.2 Justify the methodology to be used to map processes to the organisation’s goals and

objectives.

The methodology to be used to map processes to Liberty’s goals and functions are:

IPO method

To achieve objectives of Liberty, the first method for mapping process is IPO. This method is the

simplest method for business to process mapping, this is the transformation between inputs and

outputs of process. The input before the transformation take place include raw material, capital,

training staff, information and technical skills. The picture below will describe the IPO method:

(emeraldinsight, nd)

For example: there is the IPO of making food and drink service for customers such as meals,

breakfasts, buffet, etc of Liberty’s hotel.


SIPOC method


(modernanalyst, 2013)

The diagram above describe the operation of SIPOC method and this is a high level of process

mapping. This method will help Liberty to improve the problem and satisfy customers’

requirements better. The SIPOC method have 5 points such as supplier, inputs, process, outputs

and consumers. These points will be analyzed in detail to give more clearly:

Supplier: supplier provide materials to company, so the quality of product will depend on it. As

a result, Liberty need to concentrate on supplier if they want to have best quality product, “With

our national network of trusted supplier and vendors assembled over the past thirty years, Liberty

increases hotel profitability reducing expenses in operations and supplies.” (libertyg, nd).

Inputs: it is include materials and resources which are required by company to carry out its

process.

Process: take place with various departments of Liberty.

Human resource: take the responsibility of managing employees for different

departments. Moreover, it also can supervise and provide replaced employees if they do not go to

work because of sickness or private reasons to the need of departments.

Marketing and sales: is very important for Liberty to advertise their brand parallel with

increase reputation higher. Conduct the conferences to invite journalists, customers and publicity

to show the successful activities of company as the way raise the reputation and awareness of

people about the company’s brand.

Finance: make decisions for everything which is related to money and budgets of Liberty

like how much to spend and how much to gain. The department also appraisal about the

customers who rent rooms such as what type of customers they are, pay the bill by cash or visa,

master card and so on.

Security: responsible for the safety of employees in company and customers when

something go wrong and unexpected problem occur.

Outputs: include quality of service, quantity (on time delivery) when customers order and the

cost. Quality of service from Liberty will be consider at how much per cent customers satisfy,

deliver product to customers on time and cost suitable for customers’ money.


Consumers: the last point of the SIPOC is consumers, they are the people who receive the

output from company, outlets, distributions and so on. The consumers are involved in the service

and communication in this point. Liberty needs to invite consumers to the conferences to show

them about the development of company, apply modern equipment to serve customers better and

enhance the quality of service parallel with adjust the cost always in reasonable level. Through it,

consumers will know more about the company and choose Liberty instead of another brand.

For example: the table below will describe the booking process at a hotel and Liberty can follow

it to improve their process better.

Supplier Input Process Output Customer

Service

center.

Credit card

firm.

Transfer firm.

Food & Drink

Company.

Furniture

Company.

Information

of hotel.

Customers’

information.

Standard of

hotel.

Check type and

number of room.

Check and confirm

dates and duration

of visitors.

Check rooms which

are available for

customers.

Ensure service is

ready when

customers come in

the room.

Make sure

customers are clear

about the payments.

Rooms are

cleaned and

full service.

Other

departments

have

customers’

information.

Goodwill

for

customers

who come

again.

Tourist.

Companies.

Journalists.

Senior

officials of

companies

or

government.


1.3 Evaluate the output of the process and the quality gateways.

The ServQual is used as the measurement to evaluate the output of process:

(serviceperformance, 2008)

There 5 gaps in the ServQual:

Management perception of customers’ expectations and expected service (gap 1):

Liberty should aware the expectations from customers like what kind hotel they need,

how good the service they will receive when they hire a room in hotel, the cost is

reasonable or not, etc. As a result, does Liberty satisfy customers’ expectations or not.

There are some key factors for this gap such as insufficient marketing research, the

research do not concentrate on quality’s demand and not enough information about

customers’ expectations.


Service quality specifications and management perceptions of customer expectations

(gap 2): after manage the perception about customers’ expectation, the specification of

service quality will be conducted to adapt with the expectation, is the quality of service

match with expectation or not. Some factors in this gap include lack of management

commitment, not clear or uncertain about the design of service and the procedure about

planning is not enough.

Service delivery and service quality specification (gap 3): the reasons for the failure in

this gap are poor training for employees, do not have abilities or not ready to meet the

standard of service from company. The major reasons are the marketing of company is

not running well, failure to adapt with the demand and supply and lack of education and

training to staff.

External communication and service delivery (gap 4): the expectation of customers

are mainly affected by the statement on the behalf of company’s representation and

advertisement. The issues for this gap maybe the expectations of customers are not

fulfilled at the specific time of delivery service. Therefore, the different between real and

unreal service based on some reasons such as ensure too much on the external

communication campaign, cannot manage customers’ expectation and do not follow the

specification.

Expected service and perceived service (gap 5): this gap is easy to consider when the

customers are misunderstand about their expected service with the perceived one.

Furthermore, there are some determinants can create the impact on the appearance of gap:

Tangible: Facility have long life use without any unexpected problems such as elevator,

air conditioner, TV and so on to ensure customers will not complaint about the

implement in hotel.

Empathy: The attitude of staff also affect to the outcome of the process, if employees’

attitude are not good and they are not friendly to customers, customers will complaint and

give bad feedbacks about Liberty on Internet, magazine and media which means slow

down and decrease the reputation and quality of service.


Responses: group quickly respond to whatever requirement from customers such as

power outages, problem with elevator when customers inside, facilities are damaged and

so on.

Customer’s satisfaction: the purpose of Liberty when they running their business in

service industry is meet the demands and needs of every kind of customers, they will

achieve the satisfaction from customers. In fact, Liberty was achieve this success through

“until now, LHMC manage 4 hotel which are 3 and 4 star standard such as: Que Huong

Liberty 2, Que Huong Liberty 3, Que Huong Liberty 4 and Liberty Central. Total room of

4 hotels is 322 rooms.” (scenario).

Reliability of quality outputs: to Liberty is the quality of service that always meet

customers’ demands so the reliability of service from Liberty is high. Beside it, all the

employees in hotel will be trained carefully before they start to service customers to

ensure the quality.

Quantity of rejects: all the facilities of Liberty’s hotels are ensure to be manufactured

with high quality, but sometime defective products arise which annoy customers such as

air – conditioner, TV, fan and toilet. Therefore, managers of Liberty need to check to

make sure the facilities in the room are working well before customers come in and they

should call for manufacturer to fix or change the products if it is in warranty time.

Waste of electricity: to reduce the cost of electricity and water, Liberty’s hotel has set

the device that when customers leave the room, all the power of the room will be cut

down to save the cost and employees also noticed to turn off if in the room has some

device still running when they clean the room.

Impact on environment and community: Liberty must follow the rule when they

running their business in Vietnam such as they must put the garbage on right area to

avoid affecting to environment and community (odor, dirty). If they do not follow the

rule, they will be fined and reputation will be slow down.

Quality gateways are also contribute to ensure the output of Liberty’s process:

“The quality gateway is a quality control filter for all requirements” (Managing Business

Activities to Achieve Result Course Book, 2010, p.26). Basically, the fundamental of

quality gateway is very simple: before turn into the outputs, the inputs of process must


pass the gate. The basis to pass depend on the requirements of company to ensure about

the quality adapt with its. If the inputs are not suitable with requirements, the outputs will

be not good and vice versa.

(flylib, nd)

Quality gateway is very important for the company who running hotel business like

Liberty because this is the key step to identify the quality of outputs from suppliers. To

be more effectively, Liberty needs to divide the role of quality gateway to employees in

whole company to make them more aware about the quality of products which import to

hotels. Based on this quality gateway, customers will be attracted by high quality

facilities and furniture in the room which make them feel comfortable like they are in

their home. Through that, waste will be cut down and reliability will be increased.

For example: Liberty’s hotel has good quality gateways because the facilities and

furniture of its have a high quality follow the feedback of customers after they live in

hotel. “Nice hotel with good facilities”, “The rooms were reasonably basic but modern,

comfortable and clean” (tripadvisor, 2011).


2.1 Design plans which promote goals and objectives for your own area of responsibility.

First, board of director of Liberty need to study and analyze the company’s performance to

identify problem in 2013. Following the scenario, Liberty have one problem that the board of

director wonder is the functional structure right type of structure for the hotel.

After find the problem, employees and managers of Liberty will discuss the problem together to

make plan to set objective and goal as the solution. However, the objective need to be SMART

to make clear for employees to carry out the plan in right way. By applying the SMART, Liberty

will have more chance to achieve the objective.

Besides that, there some techniques which help Liberty design their plans to promote goals and

objectives such as project management, brainstorming and mind map.

Here are some definition about the techniques which are used to design plans that Liberty should

apply.

Project management

(efederalsystems, nd)


“As project managers our team understands that working across departmental, and business areas

is essential to the successful implementation and completion of a system; with the ultimate goal

of providing a successful product and/or application.” (efederalsystems, nd)

Brainstorming

(philmckinney, 2013)


“Brainstorming (what I sometimes refer to as ideation), the art of collaborative daydreaming, is

at the heart of innovation. In a brainstorming session, the creative gloves are off–anything is fair

game, and nothing is too crazy, silly, unreasonable, or outlandish to be put on the table for

consideration.” (philmckinney, 2013)

Mind map

(mindmapping, 2012)

“A mind map is a diagram for representing tasks, words, concepts, or items linked to and

arranged around a central concept or subject. A mind map uses a non-linear graphical layout that

allows the user to build an intuitive framework around a central concept. A mind map can turn

long list of monotonous information into a colorful, memorable and highly organized diagram

that works in line with your brain's natural way of doing things.” (mindmapping, 2012)


The table below is the list of the factor which affect to the implementation of the system

(scenario)

Task name Duration Resource

Delivery of the computer system 21 Supplier

Install the system 1 Supplier

Provide details to the purchasing department 2 PM

Approve the order 4 Purchasing depth

Train the department manager 4 Supplier

Explain plans to staff 3 PM, depth staff

Produce a rota 1 PM

Train the staff 4 Supplier

Enter room size and facilities onto computer 2 Supplier

Install electrical sockets 6 Maintenance depth

Finally check the system 1 Supplier

Enter room rate onto computer 1 Supplier

After using the technique, the plan will be:

Cod

e

Task name Duratio

n

Preceded by Resource

A Explain plans to staff 3 days - PM, depth staff

B Provide details to purchasing depth 2 days - PM

C Approve the order and get it to supplier 4 days B Purchasing depth

D Install electrical sockets and LAN 6 days C Maintenance depth

E Delivery of computer system 21 days C Supplier

F Install the system 1 day E Supplier

G Enter room sizes and facilities onto

system

2 days F Supplier

H Enter room rates onto system 1 day G Supplier

I Produce a rota 1 day E PM

J Finally check the system 1 day G Supplier


K Train the department managers 4 days J Supplier, depth manager

L Train the staff 4 days K Supplier, staff

2.2 Write objectives, which are specific, measurable, achievable, realistic and time - based

to align people and other resources in an effective and efficient way.

As we know, the objectives of company must be SMART to ensure these are possible and have

more chances to achieve the objectives.

SMART criteria include:

(accoungting-planning-confessions, 2011)

Specific: the objective of company must be clear to ensure the employees can understand

it to implement.

Measurable: the company can evaluate the objective by themselves when it has done. It

is important because it help company to evaluate by their own and give feedback to carry

out objective better.

Achievable: Liberty can achieve the objectives. The resource of company always limited,

so they need to set appropriate objectives that they can use the resource to achieve the

objectives.

Realistic: the objective should make sense and suitable with current situation of

company.

Time – bound: time to complete objectives. Any objective always have to have the

deadline to be done. From this, the pressure will be set on employees to motivate them to

work hard.


For example, here are some objectives follow the SMART criteria which are suggested to

Liberty (assumption and reality)

Objective 1: increase the number of customers who like booking room and payment online up to

100 customers per month in 3 months.

Specific: increase the number of customers who like booking room and payment online.

Measurable: when objective is completed, Liberty can evaluate the objective based on

the result (good or bad) and feedbacks (what happen during the process).

Achievable: it is possible for Liberty to achieve this objective.

Realistic: the objective related to the reputation and revenue of company because people

still afraid to book and pay online until they know the hotel very well and fit with the

context of service industry like Liberty’s hotels.

Time – bounded: 3 months.

Objective 2: in 2013, the company expects to continue signed management contracts for other

international four – star standards hotel in Vietnam. (scenario)

Specific: continue to sign management contracts with other international four – star

standards hotel

Measurable: Liberty can self – assess itself about the result and the process of working

with the contract for other international four – star standard hotel in Vietnam after done

the objective.

Achievable: the objective take place during a year, so Liberty can be able to achieve.

Realistic: the objective is about the continuation of signing contract for other

international four – star standard hotel and Liberty itself also running a hotel, so with the

context of company, the objective is important and suitable with Liberty.

Time – bounded: in 2013

Objective 3: push up the percent market dominant up to 20% compare with previous seasons

during 6 months.

Specific: push up the percent market dominant up to 20% compare with previous seasons


Measurable: based on the result and feedbacks of managers and employees after

complete the objective, Liberty can evaluate the objective to improve next objective

better.

Achievable: with 6 months, Liberty can implement to achieve the objective.

Realistic: occupy the percent market up to 20% which means important to Liberty

because they will have more customers and fit with the context of company running

service industry.

Time – bounded: 6 months


2.3 Implement appropriate systems to achieve objectives in the most efficient way, on time,

to budget and meeting organisational standards of quality.

Communication system: the information is very important for the input of any process of any

company (if not, the input of company will run wrong lead to fail process), so Liberty needs to

apply the communication systems include customer relationship system, managing information

system, etc. These systems will help employees to save their time more effectively and share

important information quickly between departments and screen to identify which information is

useful. Moreover, Liberty also should provide and apply some tools to support the

communication system process to make it take place better such as mail, fax, smartphone, tablet,

Internet, telecommunication and so on. These tools will help employees to manage the system

easy and more convenient.

Operation management system: Liberty also needs to use the quality management system

(QMS) because this system provide adequate information and data of resource of company for

senior – positions such as quality of product, labor force, employees’ performances, quality of

outputs and so on. Furthermore, the system itself set a quality standard and techniques which

force Liberty to carry out the objective to satisfy demand of customers. By applying this system,

managers of Liberty can control activities and evaluate the performance of work to make

adjustments to make it better.

Besides that, the output of process has to follow the standard of International Organization for

Standardization (ISO) (iso, nd). The ISO provide the standard requirement that any company

must follow to meet the demands of customers. For Liberty, the star of hotel is the deputation of

the standard of a hotel which make clear for customers when they choose Liberty to hire.



2.4 Carry out work activities meeting the operational plan through effective monitoring

and control.

The suggestion for Liberty to meet the operational plan through effective monitoring and control

is the tools such as network diagram (critical path and non – critical path) and Gantt chart.

Network diagram:

Gantt chart:


Conclusion

Through the report, Liberty Hospitality Management Company will be provided the knowledge

and information about the interrelationship between different processes and functions of them,

IPO and SIPOC methods which are used to map process Liberty’s goals and objectives.

Moreover, they also be received the pans to promote their own goals and objective, some

objective which are followed SMART criteria and carry work activities with network diagram.


References

account-planning-confessions, nd. ACCOUNT PLANNING METHODS. [Online] Available at: http://account-planning-confessions.blogspot.com/2011/01/two-kinds-of-communication-objectives.html[Accessed 10 6 2014].

Arlen, C., 2008. Gap 5 & Roswell. [Online] Available at: http://www.serviceperformance.com/gap-5-roswell/[Accessed 10 6 2014].

BPP Learning Media Ltd, 2010. Managing Business Activities to Achieve Results. 2nd ed. London: BPP Learning Media Ltd.

efederalsystems, nd. Project Management. [Online] Available at: http://www.efederalsystems.com/ProjectManagement.htm[Accessed 10 6 2014].

emeraldinsight, nd. MEASURING TEAM PERFORMANCE: REVIEW OF CURRENT METHODS AND CONSIDERATION OF FUTURE NEEDS. [Online] Available at: http://www.emeraldinsight.com/journals.htm?articleid=1762006&show=html[Accessed 10 6 2014].

flylib, nd. The Quality Gateway. [Online] Available at: http://flylib.com/books/en/4.445.1.26/1/[Accessed 6 10 2014].

libertyg, nd. libertyg. [Online] Available at: http://www.libertyg.com/hospitality-management.php[Accessed 10 6 2014].

mindmapping, nd. What is a Mind Map?. [Online] Available at: http://www.mindmapping.com/mind-map.php[Accessed 10 6 2014].

modernanalyst, 2013. Enhancing the 'A' in Business Analysis. [Online] Available at: http://www.modernanalyst.com/Resources/Articles/tabid/115/articleType/ArticleView/articleId/2687/Enhancing-the-A-in-Business-Analysis.aspx[Accessed 10 6 2014].

PHILMCKINNEY, 2013. Brainstorming for Fun and Profit – 5 Tips for Teams. [Online] Available at: http://philmckinney.com/archives/2013/05/brainstorming-for-fun-and-profit-5-tips-for-teams.html[Accessed 10 6 2014].

T, A., 2011. Good facilities and clean but staff make the holiday. [Online] Available at: http://www.tripadvisor.co.uk/ShowUserReviews-g609055-d499766-r118653072-


Liberty_Hotels_Hisaronu-Hisaronu_Mugla_Province_Turkish_Aegean_Coast.html[Accessed 10 6 2014].

wikipedia, nd. SERVQUAL. [Online] Available at: http://en.wikipedia.org/wiki/SERVQUAL[Accessed 10 6 2014].


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MBAAR