Operation Management - Research Paper Example

? Operation management BY YOU YOUR SCHOOL INFO HERE HERE Executive Summary The hotel in the case study can take advantage of many benchmarking activities related to improving employee relations, launching eco-friendly technology initiatives and programmes and also providing training to employees regarding customer culture and attitude. It was identified through research that there are elements of quality related to food services as well as procurement that are directly related to budgeting and operational structure in shop-floor control methodology. It was determined that the most effective method for the hotel to gain competitive advantage and improve its outputs is to secure benchmarking of other large-scale organisations and remain dedicated to employee and customer service initiatives. Operation management 1. Introduction The five star hotel described in the case study must consider a variety of factors when considering new and existing operational strategy. The hotel is large-scale in that it offers 250 bedrooms which must be regularly serviced and monitored for cleanliness and relevance to fulfilling the customer needs. This requires a labour-intensive focus to ensure that all elements of the guest experience are fulfilled, thus the need for a structured and regulated cleaning and maintenance crew must be established and managed appropriately. The hotel’s three kitchens will require more demands, especially in relation to quality and management, as it is designed to cater and service walk-in patrons from the external environment and guests as well. All of these facilities require an operational approach that takes into consideration design, the supply chain, planning, technology, and control from the management perspective, along with human resources, each with its own focus on input considerations and outcome demands. 2. Methodology of research The data gleaned for this report involved secondary desk research with consultation with various texts related to operations management, human behaviour, psychology and marketing. Because the role of employees is integral to the service encounter and maintaining a positive brand image, various journals regarding the role of human resources was not dismissed as part of operational and management strategy. The research identified case studies within a real-time hotel environment regarding environmental initiatives and human resources strategy as it relates to operations management in order to benchmark recommendations regarding what constitutes a quality contemporary operations strategy. Data was analysed by comparing the literature to the case study to identify correlations between concepts and operational strategy in order to gain an understanding of what operational components must be in place in a large-scale, five star hotel environment. 3. Additional hotel features bearing on analysis One of the main themes associated with hotel environments and the hospitality industry as a whole is the human relations element related to employee motivation, worker role in marketing reputation, and general employee satisfaction. Though not described in the case study, the role of the service employee is vital to sustaining a quality reputation with customers and fulfilling their customer service expectations. Therefore, it was necessary to consult with literature describing the employee experience as well since their psychological and sociological attitudes will have a direct impact on their output results and interactions with diverse, international customers. The elements also associated with culture, both employee related and customer related, were also considered since most of the facility operational components maintain a high level of service interaction and will play directly on whether or not the customers remain loyal to the hotel brand. These are important inputs when considering restaurant quality, cocktail environments where socialization between staff and customers is routine and the organisational structure that guides the hotel environment. “Human beings in the role of service employees are essential to service production. They are sensitive and do reflect on what they experience, thus responding to their inner feelings and individual interpretations” (Sandoff, 2005, p.531). 4. Hotel general analysis The techniques of job design require employees to interact with customers regularly, especially in this highly service-oriented environment. This will include server staff, kitchen staff, management and the maintenance crew assigned for room controls, as well as the specialized staff offering service assistance in the recreational and relaxation facilities provided by the hotel. Therefore, design is a critical component regarding how the hotel staff is structured at the management level. It is logical to assume that this hotel requires a centralized management hierarchy where decision-making is made at the higher-level layers of the business and then trickled downward. There are too many operational facilities in ongoing operation to maintain a decentralized environment where employees are given too much autonomy in their job roles. This would characterize, in the long-term, a breakdown of structure and control amid an environment sustaining multiple activities and services. Management must, as an input aspect, have a specific structure and set of expectations for performance that dictate their daily activities related to providing quality of service and quality of interaction with clients. The hotel must form natural and formal work units with mid-tier management having tighter controls over activities in order to guarantee quality inputs and outputs related to service provision. Supply is a significant factor for the hotel, since the three kitchens and room maintenance teams must have fully stocked soaps, towels and other guest service items. Because the menu offerings are so significantly diverse, a lean methodology is inappropriate for the hotel as it would be difficult to predict customer ratios when nearly all of the food service facilities are open to the general walk-in public. The kitchen and bar management must take into consideration food needs, alcohol and other beverage needs, as well as ensuring elements of quality related to food preparation as required by local legislation. Cost factors when dealing with a highly advanced supply chain system must be considered as well as time for delivery, the ability to procure product in the event of a shortage at a rapid speed to fulfil customer needs, and also the technologies necessary for ordering and communications with multiple vendors. A formal supply schedule and checklist must be developed to ensure that quality, cost and delivery are considered in an environment where catering and high-volume food service is part of the organisational design. This is part of the planning process for managers at the hotel, a large factor of consideration, as forecasting based on pre-existing customer volume must be a routine function of the operational management model. Planning, in this case, also involves structuring the independent and team-based workers in terms of identifying job role and responsibilities to ensure quality inputs and outputs. “Organisations are investing in complex technological innovations such as enterprise information systems with the aim of improving the operations of the business and gaining competitive advantage” (Santa, Ferrer, Bretherton & Hyland, 2009, p.156). Technology is a significant component for the organisation in areas of the supply chain, communications technology for maintenance crews, potentially an RFID or GPS system to locate employees throughout the facility in the event of a need for their expertise in a different business sub-unit, and ensuring that there are adequate tools for procurement and customer relationship management databases. Competitive advantage is borne from these technologies as it improves response times in the event of client needs and also allows managers to maintain control over costs in multiple areas of the business. In this large-scale environment where employee interactions are critical to revenue production and reputation, technology implementation incorporates a great deal of the input strategy for the operational structure and process expectations. Quality is a significant factor, not only related to meeting regulatory demands, but in terms of satisfying clients who have different psychological motivations and expectations related to their service experience. Since this hotel caters to many individuals from foreign nations with different cultural backgrounds, understanding what drives customer attitudes in their desired market segments must be considered as part of operational strategy. For example, there are going to be customers from individualistic societies and collectivist societies where values and beliefs are radically different. Under Hofstede’s Cultural Dimensions Model, individualists value their independence and self-expression whilst collectivists value group models and have high respect for their cultural traditions (Blodgett, Bakir & Rose, 2008). Though these cultural factors might seem to have more to do with human resources than operations, it is the need of the management and service teams alike to understand these cultural differences and assess how best to approach and interact with their clients in a variety of service encounters. For example, an Asian consumer with high traditionalist values would appreciate a no-nonsense service team that is respectful and courteous, whilst an American traveller might appreciate a more in-depth discussion with their service staff and value their familiar communications in these encounters. Training, as part of input strategy, must be considered by the operational management team to ensure that all cultural aspects of client relationships are understood to assist in fulfilling these cultural values when dealing with diverse clients. The reputation of the business might depend on this knowledge when dealing with customers from multinational locations. Quality is imperative to sustaining a five star reputation, therefore all issues related to food quality and presentation must be considered. The visual presentational elements of catered food will impact the customers’ decision to return to the hotel or continue to indulge in their restaurant options. Cost is another factor of quality when dealing with food service. There is a trend in the international consumer audience for calorie-counting and leaner eating habits that will drive the menu decision-making of diverse customers. As part of a benchmarking effort, the hotel can take a lesson from other hotels that have changed their menu offerings to meet this demand for healthier eating. One hotel restaurant in the United States decided to make changes to their menu as a means of cost reduction and satisfying customers. Rather than offering high-volume meals, the business began incorporating smaller plate options at a fraction of the original cost, that included authentic appetizer-style entrees such as roasted figs, toasted cauliflower and gorgonzola-stuffed olives (as three examples) as a means to satisfy the light eater (Rowe, 2010). This is not only a marketing method and cost-savings effort, it is also providing upscale food dishes in lighter volumes for customers that demand both diversity in menu provision but also the types of quality foods they demand from five star hotel restaurants. Operational strategy in terms of this type of quality involves examining the supply chain and kitchen preparation activities to ensure that these menus can be served regularly without burdening the hotel or divisional budgets. One other methodology in relation to operations strategy is the implementation of green initiatives as a means to reduce the business’ carbon footprint and also satisfy customers who make decisions based on environmentalism at the hotel. The technological aspect of green operations will be discussed in the next section. 5. Analysis of technological implementation In an effort to improve the environmental awareness and sustainability of the hotel, benchmarking the greener activities of other organisations would benefit the firm especially during a period where consumers are making decisions about what organisation to patron based on these factors. The hotel must sustain multiple technological systems to guarantee a better service experience and ensure supply, as mentioned previously. The hotel can benchmark the activities of ConEdison, a major power provider, who has built server farms that share computer assets, thus building a green centre that is eco-friendly. ConEdison implemented “water-cooled server cabinets that reduced the need for HVAC (heating, ventilation and cooling) at the facility” and gave operational managers the ability to redirect airflow in their many data centres to improve operational efficiency (conedison.com, 2009, p.2). All of their servers were combined together on new technologically efficient server systems which reduced their carbon footprint significantly. The hotel can use similar methodology to save space rather than sustaining multiple server systems and then use this as a marketing tool for customers to reinforce their commitment to greener operational improvements and processes. Cisco, a multinational firm, also implemented power-saving units that distribute power more efficiently. These systems shut down different machines throughout their facilities when not in use and maintain the ability for a rapid return on cost investment with utilities cost-savings efforts (Gottlieb, 2010). The hotel can benchmark these activities and, again, use this as a marketing tactic to satisfy diverse customer demands related to the carbon footprint. Perry (2007) identifies that there are other technological innovations related to waste reduction such as implementing water-saving devices on hotel faucets and kitchen products, thereby saving costs in water usage and consumption. It is the output expectations of operational managers to streamline the budget and this is one effort where new technologies related to water waste can be utilised in this effort and also market to customers to satisfy these greener demands for responsible business management. This is also associated with establishing a green laundry system that allows customers the ability to opt out of daily towel washing services if they wish to be more interactive in helping the hotel with their environmental initiatives (Heney, 2009). Using low-cost print materials in the many rooms available will allow customers to be engaged and therefore build a more positive brand reputation in the process as an output of new operations related to technology and green business practices. Also related to technology is the development of an HRIS system, human resource information system, to assist in managing people and their needs. These systems are “composites of databases, applications and hardware necessary to deliver, collect, store and manipulate HR data” (Ngai & Wat, 2006, p.299). Sixty percent of Fortune 500 companies use HRIS systems as a means of improving employee relations, such as implementing a self-service, intranet-based system whereby employees can use technology to request time off, change their benefits options, or any other activity that saves operations management time and reduces the cost of extending human resources functions. This is a benchmark that the hotel can utilise since it maintains such a high volume of specialized staff that likely have benefits packages and HR needs ranging from family issues to training. Such programmes include HRSource and HRnetsource packages. The hotel can also utilise cloud computing, another cost-saving effort that allows needed software to be stored on the service providers mainframe and can be accessed via the Internet (Burns, 2010). Rather than purchasing new technologies outright, it is accessible by managers and employees without incorporating costly special project IT teams; another benchmark to follow. According to Aziz & Yasin (2004) the Internet now represents a revolution in how business is conducted and can lead to competitive advantage in multiple areas from budgeting to the customer interaction and marketing. 6. Potential barriers The only barrier to launching IT special projects is the human-related risks such as having a weak project manager, little stakeholder involvement, and weak commitment (Kappelman, McKeeman & Zhang, 2009). These are HR-related situations that can be overcome with appropriate training and resource development that involves employee feedback as part of special IT project inputs. All other benchmarks have proven track records when implemented, especially green initiatives and design structures for better employee controls. 7. Key findings summary The key findings indicate that the hotel can better manage its operations and save costs if it chooses to benchmark the activities of similarly-large firms. The customer experience and attitude related to the hotel’s reputation relies on efficiency and an organisational design where controls and technology are used to position employees effectively. Benchmarking is the most appropriate method of guaranteeing new operational results over other operations management functions. 8. References Aziz, N. & Yasin, N. (2004). The influence of market orientation on marketing competency and the effect of internet-marketing integration, Asia Pacific Journal of Marketing and Logistics. 16(2), p.3. Blodgett, J., Bakir, A. & Rose, G. (2008). A test of the validity of Hofstede’s cultural framework, The Journal of Consumer Marketing. 25(6), p.339. Burns, M. (2010). CRM survey 2010, CA Magazine. 143(3), p.11. Conedison.com. (2009) [internet] Reducing emissions associated with information technology. [accessed 3.7.2011 at http://www.conedison.com/ehs/annualreport/climate_change/reducing_carbon_footprint_coned/IT_emissions.asp] Gottlieb, D. (2010). Purchasing counts the carbons, Purchasing. 139(2), p.52. Heney, P.J. (2009). When green works and when it doesn’t, Hotel and Motel Management. 224(13), p.6. Kappelman, L., McKeeman, R. & Zhang, L. (2009). Early warning signs of IT project failure: the dangerous dozen, EDPACS. 40(6), p.17. Ngai, E. & Wat, F. (2006). Human resource information systems: a review and empirical analysis, Personnel Review. 35(3), pp.297-315. Perry, S. (2007). How big is yours?, The Safety & Health Practitioner. 25(10), pp.52-56. Rowe, M. (2010). Small price, big impact, Restaurant Hospitality. 94(1), p.24. Sandoff, M. (2005). Customization and standardization in hotels – a paradox or not?, International Journal of Contemporary Hospitality Management. 17(6/7), pp.529-536. Santa, R., Ferrer, M., Bretherton, P. & Hyland, P. (2009). The necessary alignment between technology innovation effectiveness and operational effectiveness, Journal of Management and Organization. 15(2), pp.155-170. 9. 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