Integrative Learning: Marriott International - Research Paper Example

?Integrative Learning: Marriott International By Table of Contents 3 Introduction and Background 4 LeanManagement 4 Resource Scheduling 7 Benchmarking 8 Brainstorming 10 Balanced Scorecard 11 Controlling Service Quality 13 Global Trends 14 Innovativeness 16 Conclusion 18 Bibliography 19 Abstract Marriott International is a property services firm with a global presence and a long history of delivering exemplary services. However, given the growth in globalization, the recent economic uncertainties globally, and the growth in competition, this research report examines a number of quality management concepts that can be applied to Marriott International with a view to meeting the current challenges and ensuring that Marriott meets its core value of becoming a leader in the hospitality industry and remaining competitive. These tools are particularly important given that the current economic downturn is particularly difficult for the hospitality industry. During economic uncertainties, travel and travel-related services such as those offered by Marriott International are usually put off until the economy improves. This means that competition is increased for those involved in the hospitality industry. Therefore the quality management concepts discussed in this report and especially important for Marriott International. Introduction and Background Marriott International Inc. is among the world’s top lodging companies and consists of 3,400 properties located in 68 countries around the world. The company operates under the trade name Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, Bulgari, Courtyard, Springhill Suites, Marriott and JW Marriott. Marriott International also operates time-sharing in the Marriott Vacation Club, the Ritz-Carlton Destination Club, and Grand Residences. Marriott International also operates residential ownership, furnished corporate accommodations and a number of conference centers. The company’s headquarters is located in Bethesda, Maryland in the US and employs over 137,000 workers (Marriott, 1996-2013). Marriott International is ranked 64 out of Fortunes top 100 companies to work for. One of the reasons cited is the fact that 10% of the company’s employees have worked for the organizations for at least 20 years. The most popular salaried job is Event Manager at US$53,549 annually and the most popular hourly job is housekeeper with an annual salary of US$29,587. Job benefits include an onsite child care facility, onsite fitness center, job sharing programs, telecommuting and compressed workweeks. Training is also available for all employees (CNN Money, 2013). This project identifies 8 key organizational concepts and describes how each concept can be applied to and benefit Marriott International. Lean Management Marriott International’s core values include “putting people first, pursuing excellence, embracing change, acting with integrity and serving our world” (Marriott, 1999-2013). In meeting these core values at a time when there is economic uncertainty globally, embracing these changes and while at the same time pursuing excellence can be accomplished via the implementation of lean management methodologies. Lean management was first introduced by Toyota and as such has been typically associated with manufacturing businesses. However, lean management is suitable for any sector and is especially useful for continuous improvement by reducing costs and obtaining optimum value (Arlbjorn, Freytag, & de Haas, 2011). In particular, lean management accomplishes continuous improvement via cost reduction and optimum value by directing resources toward improving quality, empowering employees, and improved production as a means of delivering “customer-valued products and services” (Plenkiewicz, 2010, p. 54). By implementing lean management methods, companies can rapidly improve economics and enhance their ability to achieve the business objectives (Plenkiewicz, 2010). Lean management is derived from “lean thinking’ which is designed to eliminate wasteful measures and at the same time speed up production or services (Martinez & Lu, 2013, p. 110). Ultimately lean thinking enables methodologies in management systems that: …enable any enterprise…to run at maximum efficiency…and produce top-quality products at the lowest cost (Martinez & Lu, 2013, p. 111). In the hotel industry, one demonstratively successful lean management method is the use of seven value mapping streams including “process activity,” “supply chain response matrix, production variety channel, quality filter,” demand maximization, “decision point analysis and physical structure including guest reservation and reception” (Martinez & Lu, 2013, p. 111). Quality filter mapping is particularly important for Marriott International as it operates globally and responds to the needs and expectations of a diverse mix of customers. Quality filter mapping is a method by which impairments in service or product are identified and earmarked for improvement (Rocha-Lona, Garza-Reyes, & Kumar, 2013). Identifying quality impairments originates from the customers. It is therefore important to provide feedback channels for customers whether by virtue of a complaints or suggestion box at each hotel and/or via a template at the company’s website. Quality filter mapping will also accommodate the supply chain response matrix which provides customer-based information to organizations for identifying customer demands and how the organization is meeting those demands and what steps can be taken to improve responses to customer demands (Vaagen & Wallace, 2010). For example, customer feedback may indicate a flaw in reservations or room service wait times. Supply chain response matrix will aid Marriot International in identifying areas for improving responses to customer demand. Perhaps the most important value mapping stream is physical structure including guest reservations and reception. Guest reservation usually provides the first point of contact between the customer and the hotel. At reception, which is usually in hotel lobby, there is initial and ongoing contact between the hotel and hotel guests up to the time of the guest departure. As a result, reception observes and receives input from guests on an ongoing basis (O’Fallon & Rutherford, 2011). Therefore, guest reservation and reception are valuable sources of customer information for identifying quality deficits for improvement of services and eliminating impairments/waste. Process activity streaming also involves identifying through observations and input from customers, areas of waste in the delivery of services (Fliedner, 2011). In the hotel industry there are several processes that require observations. This will include check-in, housekeeping, parking, transportation, room-services, security and so on. Process activity streaming will be valuable for Marriott in identifying steps in each process that are unnecessary so that those steps can be eliminated and resources transferred to other areas to allow for optimum output in terms of the delivery of service. Lean management with the emphasis on eliminating waste is consistent with the Bible’s teaching on eliminating waste. Specifically, at John 6:12, after eating with his disciples, Jesus said to them, “Gather up the leftover fragments, that nothing may be lost” (John 6:12). The obvious message in the Bible is that we should never waste resources and should ensure that all resources are used productively. This is exactly what lean management has as its primary objective. Resource Scheduling Resource scheduling is particularly important during these times of economic uncertainty, particularly in light of the fact that Marriott wants to be a standard bearer of quality services. Resource scheduling is a tool for organizations to maximize output with input is constrained by limited resources (Orji & Wei, 2013). The goal of resource scheduling is to allocate and prioritise resources so that constraints and costs are minimized(Orji & Wei, 2013). Resource scheduling is a method for identifying customer needs/demand and organizational capabilities to deliver customer needs satisfactorily. Resource scheduling aids in the identification of supply and demand and helps in closing the gap between demand and supply. In a typical case, the customer’s demands are allocated throughout the organization in various departments. Each of these departments are responsible for delivering services that meet specific demands. Resource scheduling however, helps organizations to coordinate and prioritize resources for the fair distribution by eliminating waste and ensuring that resources are used for optimal output (Mahadevan, 2010). According to Eliyahu Goldratt’s theory of constraints, successful and quality management requires emphasizing the resources needed for accomplishing a business objective (Mahadevan, 2010). What management wants to do is to identify resource required and the resources available and to eliminate or narrow that gap between the two. By taking this approach, resources will not be put to waste and business tasks that are critical and lacking in resources will be able to benefit from the transfer of resources from an area where it goes into waste categories. For example in the hotel services, during a resource scheduling exercise, it might be discovered that the delivery of towels to guests using the pool facilities has an unnecessary wait time. Scheduling resources will require that management evaluate the operations system for the delivery of towels to identify the source of delayed wait time. It might be discovered that there is a predetermined schedule for collecting used towels and distributing them for the pool service. However, at this particular time an unusual number of guests are using the pool so that the towels are not available at some times. In the meantime, employees assigned to towel services, who are hourly wage workers are available, but are practically idle in between the towel scheduling services. Scheduling resources activities at the Marriot would enable management to put human capital resources to productive use by scheduling more towel collection and delivery services than they currently use. Scheduling resources is not only about eliminating tangible wastes but also about eliminating intangible wastes. In this regard, the hotel is not wasting money paying staff for idle time and the staff is more productive so that customer demands are met by adequate supplies. In this regard, the Bible cautions us against idleness at work. Specifically, Proverbs 18:9 states that “whoever is slack in his work is a brother to him who destroys” (Proverbs 18:9). In other words, anytime an employee is idle at work this only holds the organization down and those who are effected by organizational output. Benchmarking Benchmarking is especially helpful for organizations wishing to remain competitive. Benchmarking provides a tool for organizations to identify how other similar organizations are operating and what are the best practices out there for delivering the services that their organizations are involved in. The idea is to put the organization in a position to either keep up with best practices and the competition or to go beyond both (Oakland, 2012). Thus benchmarking is a key tool for total quality management as it allows for assessing the external environment and making adjustments to the internal environment as necessary. In this regard, benchmarking involves four significant steps: assessing the competitive environment; assessing best practices; assessing internal operations; assessing the non-competitive environment (Oakland, 2012). Internal benchmarking involves collecting information and data within the organization and comparing it relative to practices and comparing those practices with other departments within the same organization. This helps to establish parameters for change and consistency in business practice and also helps in improving internal communication channels and improves trusts (Oakland, 2012). Competitive benchmarking requires gathering information about what and how competitors are delivering services. This can be accomplished via research through reports or sector surveys (Oakland, 2012). Non-competitive benchmarking requires gathering data and information on how a particular service is delivered by an organization that is not in the same sector (Oakland, 2012). For example, Marriot is a lodging business and in providing this kind of service, it also delivers other complimentary services such as food services. In order to ensure that best practices are incorporated at Marriot, the company might want to gain access to data on how restaurants are managing food and or food service quality. Best practices benchmarking means ascertaining what the leaders in the hotel industry are doing in terms of delivering services and ensuring that Marriott is keeping pace with these services (Oakland, 2012). Benchmarking is therefore a tool for Marriott to remain competitive. This is consistent with the Bible’s commentary on competition. For example in 1 Corinthians 9:24 it is written: “Do you know that in a race all the runners run, but only one receives the prize? So run that you may obtain it” (1 Corinthians 9:24). In other words, the Bible encourages thriving to be the best which is the cornerstone of benchmarking. Brainstorming Brainstorming is a group activity derived from Alex Osborn’s brainstorming book in 1953 for helping teams come together to create innovative solutions to daily difficulties (Goldenberg & Wiley, 2011). Brainstorming is based on the assumption that, the “more ideas the better”; reserving judgment on ideas is better than criticizing them; “the wilder the idea, the better”; it is more productive to “refine and combine ideas in novel ways” (Goldenberg & Wiley, 2011, p. 97). Brainstorming is a tool that encourages input from all stakeholders including employees and customers. In an ideal situation, customer input is generated via feedback channels. Within the organization, brainstorming is conducted via teams in which those closest to the problem (field workers and management) convene to identify possible solutions. All ideas are considered and combined and refined to ensure that a practical and innovative solution is arrived at. According to Goldenberg and Wiley(2011), brainstorming is a unique total quality management tool in that while it helps organizations to come up with a creative solution to existing operational problems, it also provides a method for employee empowerment and is also customer-centered. Brainstorming is therefore a significant tool for the Marriott to use for employee empowerment which will only bode well for customer services. For example, a problem in housekeeping will not be solved by management meeting behind closed doors. Instead, the housekeeping department will meet with housekeepers and other staff who are closest to the problem. The entire group will be asked to submit their ideas for solving the problem. Since the ideas will not be criticized, but will be combined and refined, everyone will feel valued and needed. This will help to lift staff morale which will transfer over to improved customer service. Brainstorming is therefore a teamwork concept which is highly supportive by the teachings of the Bible. Proverbs 27:17 states that “iron sharpens iron, and one man sharpens another” (Proverbs 27:17). In other words, when mankind work together they improve each other’s capabilities. Similarly, 1 Corinthians 12: 20-25 states that “there are many parts, yet one body” (1 Corinthians 12:20-25). Thus everyone must work together to accomplish a common goal and everyone’s input is important for accomplishing a common goal. Balanced Scorecard The balanced scorecard approach was developed in 1996 by Kaplan and Norton as an alternative to performance measurement via conventional financial data (Young, 2010). As Young (2010) explains: The balanced scorecard approach “balances” customer, internal process, and learning and growth measures against traditional financial measures (p. 94). Accordingly, Young (2010) argues that financial data only provides a partial narrative of how an organization is performing. More instructive performance indicators are skills, “organizational culture, and customer relationships” (Young, 2010, p. 94). While financial indicators are not dismissed, other performance indicators are taken into account. In this regard there are three factors taking into account in the balance scorecard approach: customer value; internal processes; and learning/growth. Customer value is accomplished by focusing on what the organization offers its customers. This factor is determined by looking at retaining, satisfying and attracting new customers. It is assumed that if service is delivered satisfactorily, the organization will have repeat customers, attract new customers and see a growth in customers (Young, 2010). Internal processes are monitored for determining whether or not the organization delivers value to its customers. Thus an examination of the internal customer service delivery processes is examined and critiqued. Learning and growth focuses on employee skills and knowledge and organizational culture and training and or education is undertaken to ensure that the organization is prepared to satisfy standards of service delivery (Young, 2010). Taking the balance scorecard approach will therefore require that Marriott International provide a mechanism for determining whether or not the organization is satisfying its customers. This can be conducted via customer feedback channels including social networking, customer surveys or feedback templates on the company’s website. Market research can also help Marriot understand what customers need and/or desire and whether or not Marriott is poised to meet those needs and preferences. Marriott will also want to know if it is satisfying its employees and this will be observed through employee retention and can be ascertained via surveys. Financial data will help Marriott understand the extent to which it is satisfying its shareholders. Essentially, the balanced scorecard approach is a system of obtaining complete knowledge and acting on it for optimum outcomes. There is more to operational and performance knowledge than financial data. The more knowledge, the more prepared the organization is to meet business goals and to satisfy its customers. This approach is consistent with the Bible. According to Proverbs 3:13, “Blessed is the one who finds wisdom, and the one who gets understanding” (Proverbs 3:13). Thus with wisdom comes understanding and with wisdom and understanding, one can plan and prepare for effective action in all things in life. Controlling Service Quality Service quality is a particularly complex part of any operations as it is highly dependent on employees as opposed to product quality which can be measured at the manufacturer’s phase or at the storage stage and so on (Prakash & Mohanty, 2013). Therefore in controlling service quality, the emphasis must be on employees and their skills and employee satisfaction (Kaynak, 2011). Thus in product quality a number of internal and external factors can be directly identified and measured for assessing and controlling product quality. However, service quality, the focus is on internal drivers, many of which cannot be subjected to statistical descriptions (Prakasy & Mohanty, 2013). Complicating matters in controlling service quality, consumer demands must always take a focal point (Kaynak, 2011). Thus organizations can only control service quality if they know what quality customers expect and whether or not employees have the skills and the tools necessary for meeting customer expectations. Thus quality service control is a method by which the organization identifies customer needs and organizational capabilities in terms of delivering quality services expected by customers. In other words, organizational needs are dictated by the needs of the customers. Quality is therefore measured by reference to customer expectations and quality control is measured by reference to employee and organizational skills and resources (Prakasy & Mohanty, 2013). Thus an effective method for controlling service quality in the case of Marriott International is conducting surveys of consumers in each of the relevant markets. While hotels may be located in one market, they service various markets. For example a hotel in New York City will not be specific to New York as it will attract consumers from all over the world and will be less likely to have customers from New York City. While customers from New York may patronise the hotel’s bars and/or restaurants and shops, the hotel’s services are usually aimed at pleasing their hotel residents. Therefore surveys can be conducted by targeting market segments: a particular group of customers more likely to use the hotel services. This survey should be designed to determine what customer expect of hotel quality services. The results of these types of services can be used to compare to the quality of services that are delivered by Marriott and to determine whether or not Marriott’s various properties are qualified to deliver these services and what measures are required to ensure that Marriott is capable of delivering services consistent with customer expectations. This may require recruiting talent and/or improving talent by offering training and evaluations at intervals. It will also be necessary to ensure that staff delivering services are satisfied with their jobs so as to avoid the possibility of poor service delivery on the part of a disgruntled employees. Thus a rewards and/or recognition program should be implemented or maintained. Quality service control is therefore about obtaining full knowledge of customer expectation and organization ability to meet those expectations. In this regard, quality service control is about involving all employees. This is consistent with the teachings of the Bible about congeniality and group cohesion. For example, in Philippians 2:2, it is stated, “complete my joy by being of the same mind, having the same love, being in full accord and of one mind” (Philippians 2:2). The Bible expects us to share the same goals and to work together to accomplish those goals. Quality service control is consistent with this concept as it identifies customer needs and the paths toward meeting those needs via employee satisfaction and employee know how. Global Trends Marriott International has a global presence and also caters to a customer base that can be described as global. Therefore keeping pace with global trends is very important to Marriott International. Global trends refers to a broad spectrum of global developments. Knowledge of global trends alone will not be sufficient for organizational skills. Having the capabilities to innovate and develop services and tools for responding to global trends will dictate organizational success (Buhalis & Costa, 2013). Buhalis and Costa (2013) identified three global trends in the hospitality industry: customer satisfaction, “destination management and territory organization” (p. 4). In regards to customer satisfaction, the global trend is toward identifying customer bases and delivering services and products especially for each customer base (Buhalis & Costa, 2012). Organizations are therefore geared toward not merely meeting consumers’ needs, but “exceeding” those needs and are doing so in a more “one-on-one” basis (Buhalis & Costa, 2012, p. 4). Destination management refers to how each property is physically and holistically structured compared to other properties delivering the same services at that specific destination (Buhalis & Costa, 2012). Therefore Marriott International, with destinations in more than 60 countries has to keep track of a number of destination trends to ensure that planning and management is consistent with, or better than similar services delivered in each location. Territory organization means ensuring that Marriott International maintains an organizational culture that is consistently reflected in each of its destinations and at the same time is consistent with regional and country specific trends (Buhalis & Costa, 2012). Global trends therefore places organizations in the hospitality industry to keep abreast of infrastructure developments, best practices developments, customer services trends and country and regional specific trends in the hospitality industry. In order to remain competitive or to be a sector leader, consistent monitoring and controlling systems have to be developed for keeping pace with global trends and for ensuring that Marriot International has the capabilities to compete or to exceed the competition. Global trends can be humbling experience for organization as it requires following trends in order to be a trend setter. One cannot compete unless one knows what others are doing and what customers need. This knowledge is required for devising plans and performance strategies for either competing or surpassing the competition. This concept is consistent with biblical teachings. For example Mark 9:35 informs that Jesus told his disciples, “if anyone would be first, he must be last of all and servant to all” (Mark 9:35). In other words, we are all required to humble ourselves in order to obtain the knowledge and skills for success. Innovativeness Innovativeness is defined as the organization’s ability and willingness to change or abandon old ideas and ways of doing business or delivering services or products and to adopt new ideas and/or ways of doing business of delivering services. In this regard: …innovativeness is the notion of openness to new ideas as an aspect of a firm’s culture (Kraiczy, 2012, p. 57). Marriott International has innovativeness as a core value as it describes its organizational culture as constantly “evolving” and states that in order to “fulfil our vision to the #1 hospitality company in the world” the company “continually seeks innovative and creative ways to meet the needs of customers” (Marriott, 1999-2013). Therefore Marriott International is self-described as willing to meet new challenges and change current ideas in meeting these new challenges. The question however is whether or not Marriott International has in place the tools and techniques indicative of innovativeness. According to Kraiczy (2012) there are several “antecedents to innovativeness” (p. 57). The requisite antecedents to innovativeness include organizational character traits inclusive of “learning, participative decision making, support and collaboration, and power sharing” (Kraiczy, 2012, p. 57). Marriott International claims to have a persistent culture of inclusion in terms of cultural diversity and this includes hiring board members who are minorities and culturally diverse. However, the system of employee involvement is not revealed. However, since Marriott has been voted among the top best places in the world to work, it can be assumed that Marriot treats its employees fairly well. However, this does not mean that there is a high degree of employee participation. Regardless, in order to be or to remain innovative, it is recommended that Marriott International implement and maintain a system in which employees are invited to brainstorming meetings and to meetings for progress reports involving those areas in which the employee is directly involved. It must be remembered that although employees work for the organization, they too are consumers or closely connected to consumers in their daily lives and in their day-to-interactions with consumers. Therefore, employees are in a unique position to provide Marriott with ideas and creative solutions and thus can contribute to Marriott’s desire to be innovative. The Bible is strongly supportive of innovation. According to Mark 2:21-22: No one sews a piece of unshrunk cloth on an old garment. If he does, the patch tears away from it, the new from the old, and a worse tear is made. And no one puts new wine into old wineskins. If he does, the wine will burst the skins—and the wine is destroyed, and so are the skins. But new wine is for fresh wineskins (Mark 2:21-22). Therefore, it is a part of God’s plan that we continuously evolve and think about making adjustments to changes in our environment. Old ideas and old ways of doing things are not always consistent with new and changing conditions. Conclusion Marriott International has a long history of success and growth. Economic uncertainties in today’s economy, particularly in regards to the hospitality industry where travelling is effected, require that Marriott International take steps toward managing its assets and business goals with a view to remaining successful. At the same time, Marriott International is determined to not only remain successful, but also wants to exceed the competition. Giving the challenges poised by an economically uncertain market and the growth of globalization, Marriott International can benefit from the quality management concepts discussed in this report. These concepts are more appropriate for Marriott International as it is a member of the service sector and is a global entity with an operating presences in several locations. Bibliography Arlbjorn, J.S.; Freytag, P.V. and de Haas, H. (2011). “Service Supply Chain Management: A Survey of Lean Application in the Municipal Sector.” International Journal of Physical Distribution & Logistics Management, Vol. 41(3): 277-295. Buhalis, D. and Costa, C. (2012). Tourism Management Dynamics. Oxford: Elsevier Butterworth-Heinemann. CNN Money. (2013). “Fortune 100 Best Companies to Work For.” CNN. http://money.cnn.com/magazines/fortune/best-companies/2013/snapshots/64.html (Retrieved 10 November 2013). Fliedner, G. (2011). Leading and Managing the Lean Management Process. 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