Internal Audit Analysis of Al Ain Rotana Hotel - Essay Example

Internal Audit Analysis of Al Ain Rotana Hotel Strategic Objectives Objectives Related Risk Related Process Related Control To facilitate good Impression. 1. Guests waiting in queues to check-in. Check-in process Formulated policies on check-in, delayed room, departure follow up and proper check- out system. 2. To enable effective management of guests feedback. 1. Poorly dealing with impatient customers. Handling a complaint process Formulated a company policy on complaint handling. 3. To ensure efficient recruitment, welfare, training and development process of the staff. 1. Check-in without taking proper identifications. 2. Revealing inside information to outsiders. Check-in process Selection and recruitment, orientation and performance management of staff is undertaken. 4. To maintain adequate controls on room occupancy. 1. Double check. Check-in process (Registration Identification) Procedures for rooms control, discrepancy rooms and out of order rooms were established. Operations Objectives 1. To establish proper handling of reservation enquiries. 1. Political risks. 2. Several phones ringing nonstop. Check-in process (Registration Identification) All enquiries to be received by confident with good know how personnel. 2. To minimize time wastage on room waiting and allocation. 1. Guests waiting in queues to check-in. Check-in process Introduced policies and procedures that surround the check-in system. 3. To handle guests requests efficiently. 1. Poorly dealing with impatient customers. Check-in process Established statement of policy and procedure for handling guests. 4. To practice professionalism in telephone reception. 1. Several phones ringing nonstop. Check-in process Established switch board guidelines for all calls. Reporting Objectives 1. To ensure full disclosure of all revenue from letting of accommodations. 1. Double check. 2. Wrong payment. Check-in process Procedures for room rates in check-in process and complimentary rooms report was introduced. 2. To serve as a communication and planning tool for all departments. 1. Interfacing with other staff. Check-in process Check-out process Established a forecasting policy for all departments. 3. To ensure maximum completed information for the hotel database. 1. Searching for lost documents and charts. Check-out process Registration cards are submitted to the Front Office Duty Manager for checking, it is then attached to the check-out reports and issued to accounts. 4. To communicate requests to other departments appropriately. 1. Interfacing with other staff. 2. Miscommunication. Check-in process Check-out process Established a procedure on maintenance and general requests. 5. To foster accuracy in employee attendance records. 1. Searching for lost documents and charts. Check-in process (Method of payment) Introduced attendance sheet and vacation plans. 6. To account for all guest cash deposits correctly. 1. Wrong payment. Check-in process (Method of payment) Posted immediately and receipt generated with guest signature. Compliance Objectives 1. To establish a uniform policy on check-in and check-out. 1. Guests waiting in queues to check-in. 2. Guests lined up in queues to check-out. Check-in process Check-out process Established uniform check-in time and check-out time for all Rotana hotels with similar policies. 2. To ensure follow up of policy during waiting to check-in. 1. Guests waiting in queues to check-in. Check-in process (Method of payment) Procedures have been established to avoid guests waiting. 3. To ensure that the staff have a clear knowledge of their duty pattern. 1. Interfacing with other staff. Check-in process Check-out process Preparation of rosters. 4. To make sure standard accounting practices are observed in the cashier`s audit. 1. Double check. 2. Wrong payment. Check-out process Audits checked for compliance by front office Duty Manager. Table 1: Rotana Operations and Objectives (Rotana, 2006). Internal Audit Analysis of Al Ain Rotana Hotel Introduction The objectives of Rotana Hotel’s management are outlined in the table above as well as the risks that affect the implementation of the objectives in the related process and the control measures implemented by the management. It is Rotana`s goal and objective to facilitate good customer impression to maintain a significant clientele but risks such as long unattended queues in the check-in process hinder this ability. Guests’ waiting in queues for a long period without being offered assistance since the hotel is understaffed or employees are busy attending to other matters is a bad sign to customers. Rotana hotel has managed to counter this risk by putting in place a qualified doorman to receive guests. It has also trained its staff on good interpersonal skills and speed reception. To ensure effective management of addressing of guests feedback, the hotel has to deal with the risk of poor service delivery to impatient customers when handling a complaint as customers differ from each other. Rotana Hotel has formulated a policy on complaint handling that involves all employees receiving complaint handling training, complaints to be addressed by the first individual to handle it, the staff should have knowledge of how to satisfy a complaining guest, a complaint log to be maintained in the front office and the general manager to be informed of all complaints. In regards, to ensuring efficient recruitment, welfare, training and development process of the staff, the risks involved in check-in process without the staff taking proper identifications mostly due to negligence or poor skilled in the check-in process and revealing inside information to outsiders which is dangerous and caused by irresponsibility of the staff. The hospital has managed to sponsor programs of proper selection and recruitment process, staff orientation and performance management so as to have reliable working force to propel the scales of the hotel. The objective of maintaining adequate controls on room occupancy is affected by the risk of double checking in the check-in process where a guest checks in and is not recorded in the system due to default in management. The hospital introduced room control measures that will not enable checking in without full complete of the registration process, guests to be contacted prior to their departure and vacant room accounts to be closed. Discrepancies on rooms to be viewed twice a day and any differences between room occupancy and housekeeping to be addressed. Establishing proper handling of reservation inquiries in the check-in process is affected by political risks since during difficult economic times the hotels do not have a good number of guests leading to few reservations. Several phones ringing nonstop at the check-in process also affect the handling of inquiries because not all potential guests will be served as other phone calls will be abandoned. The management decided that all outside inquiries to be received by a confident and well-trained personnel and not at the reception since the reception is coupled with other important activities. The objective of minimizing time wastage on room waiting has a high risk of guests waiting in queues to check-in due to poor procedures that were being followed before. The management decided to let the guest relations team to follow up with the room allocation process. A guest is also allowed to arrive earlier for easy arrangements. Handling guests’ requests efficiently is an objective that has been characterized by the risk of poorly dealing with impatient customers in the check-in process. These clients tend to be violent and in most cases they do not give the employee ample time to explain situations appropriately. In this case the management also viewed it necessary to train its workers on how to handle impatient customers and how to improve on their customer delivery. The practice of professionalism in telephone reception is an area threatened by several phones ringing nonstop in the check-in process. This situation confuses the operator and reduces his performance in work. Rotana Hotels created policies on the same that allowed for only three rings. No keeping of callers on hold for more than 20 minutes and offices to be free of noise pollution. To ensure full disclosure of all revenue and from letting of accommodations is affected by double checking in check-in processes since the correct information will not be the one in the systems. Wrong payments made in check-in process also reflect a false figure in the accumulation of the revenue indicated on the systems. All guests are to fill the registration cards and in case of a group the front desk is to ensure a rooming list is signed. The registration cards are to be checked by the front office duty manager after all updates have been made. Serving as a communication and planning tool for all departments is affected by interfacing of staff both in the check-in and check-out process. Rotana Hotels focused on forecasting in all departments activities so that it can have an overview of what to expect and hence how to plan for the future. Ensuring maximum completed information for the hotel database creation is also characterized by the risk of searching for lost documents and charts in the check-out process. This scenario has led to the registration cards being submitted to the front office manager for checkup and removal of any discrepancies. It is then attached with the check-out reports and issued to the accounts department. Communicating requests to other departments appropriately is faced by risks of interfacing with other staff since a conflict among staff automatically cuts down the communication process of a working place in check-in and check-out process. Miscommunication is also a threat because lack of proper information will cripple the communication process. All front-office staff of Rotana hotels should be given communication classes on taking responsibility of guest requests. Internal policies should also be made on maintenance requests and general requests. Fostering accuracy in employee attendance and ensuring that the staff is aware of their duty pattern is affected by searching for lost documents, charts and interfacing with other staff. It occurs in the check-in and check-out process. Lost documents will affect attendance records and poor interaction with other staff members will make employees go against the planned work schedule. There will need to introduce attendance sheets, vacation plans and rooster charts to nurture sustainable employee performance and decreased turnover. Accounting for all guest cash deposits correctly is affected by wrong payment in the check-in process. This situation is corrected by depositing the cash immediately and generating receipt that is signed by the guest and a copy retained by the hotel. To establish a uniform policy on check-in and check-out and ensuring the following up of the policies is affected by guests waiting in queues to check-in or check-out in both processes causing delays and poor service delivery. The hospital has managed to establish a uniform check-in time and check-out time for all Rotana Hotels and quick customer care measures have been placed to avoid long waiting in queues. Conclusion It is evident that Rotana Hotels are embracing the strategies of developing efficient/sustainable hotel keeping and importantly they stand out in credibility by adhering to accounting principles and policies of internal audit in all its hotel branches. References Rotana. (2006). Front Office Department – Al Ain Rotana Hotel. BBC10, August 2006. Read More