Hospitality Contract and Event Management - Essay Example

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Hospitality Contract and Event Management Table of Contents Page No. The Scenario ............................................................................................ 3 External factors affecting planning and management ............................. 3 1.1 Main characteristics of the contract and event catering sectors ......... 3 1.2 External factors affecting planning and management ........................ 3 Operational issues affecting the success of event management ................ 4 2.1 Elements of project management ........................................................ 4 2.2 Type and level of service ..................................................................... 4 2.3 Health safety and hygiene problems .................................................... 6 2.4 Marketing, human resources, and quality control ................................ 6 Client and contractor relationship .............................................................. 7 3.1 The importance of good client and contractor relationship ................. 7 3.2 Factors that impact the success of the contractor and client rel. .......... 7 3.3 Different types of contract ................................................................... 8 Full-time and part-time contract ................................................................. 8 Agency staff ................................................................................................ 8 Freelancers, consultants and contractors .................................................... 9 Zero hour contracts ..................................................................................... 9 Employing family, young people and volunteers ...................................... 9 Financial Processes involved ..................................................................... 9 4.1 Process involved in drawing up contracts ............................................ 9 4.2 Financial issues affecting implementation of a contract ...................... 10 4.3 Process of business generation within contract and event management 11 4.4 Business success and achieving corporate targets ................................ 11 Conclusions ................................................................................................ 12 References .................................................................................................. 13 The Scenario Events have become important in our lives. Events refer to a happening called for a specific objective which is planned and managed like a project. An event is ‘an organized occasion such as a meeting, convention, exhibition, special event, gala dinner, and so forth’ (CIC, 2003 as cited in Bowdin et al., 2006, p. 14). Business events are happenings designed for conferences, exhibitions, incentive travel, and corporate events. They are categorized and referred with an acronym MICE, representing meetings, incentives, conventions and exhibitions/events. Events lead to value creation process when organisations create interactions among employees and events provide a unique experience. External factors affecting planning and management in the event and contract sectors 1.1 Main characteristics of the contract and event catering sectors The meetings industry is a large contributor to the gross domestic product of the United States and the United Kingdom (Craven & Golabowski 2001, p. 3). Planning, organization and management of the event should be considered as a project and that the events planner and the team in charge of the implementation should adopt a project management approach to planning and delivering their event (Conway 2004). This must be accompanied with a business plan along with a written plan and report. Contract and event catering have become parts of a growing industry. It is young and maturing at a rapid rate. Conferences are at the forefront of modern communications, whether this is for internal communications or as a vehicle for communication with key audiences. Conference is a generic term to describe a diverse mix of communications events. (Rogers 2003, p. 45) The event manager acts as the director of the event. He/she should have a staff or a team to carry on the objectives and implement the plans. The staff should compose of talented and expert deputies and assistants who must carry on and implement the objectives. 1.2 External factors affecting planning and management in the event and contract sectors As the entire project implementation is going on, some priorities will change focus and the manager or planner should be able to identify the changes. The planner and the team should be able to fit the components mentally or visualize the project before everything happens, so as to determine how the event will happen in the actual run. Planning includes predicting possible problems and identifying solutions right there and then. The event manager and the team should be able to reduce the number of problems. (O’Toole & Mikolaitis 2002) External factors include logistics. Logistics, in this sense, refers to business logistics which is a new science as the old one refers to military logistics. Event logistics gives the planner with his team a framework to manage the operations of the event. The logistics system emphasises ‘procuring and supply of customers, products and facilities’ (Bowdin et al. 2011, p. 557). The logistics system is the network of supplies and resources within the site, to include communication and other aspects of the event. When the event is concluded, logistics focuses on the breakdown of the built structures, cleaning and evacuation processes. Operational issues affecting the success of event management 2.1 The elements of project management which are necessary to ensure effective management of events Planning a project saves time and resources by making some basic and important decisions before starting the task. The project manager must provide calendars and milestones. The project relies on some calendars established for each project; resources are also important. The manager and the staff form a team. The team begins by opening the project calendar and use this to establish working and nonworking days and to set the number of work hours per day. Knowledge, teamworking and management have to go hand in hand. (Koch 2004) An event objective must have value to the company holding the event, those taking part in the event, and cross over from professional to personal benefits. Answering the 5Ws and 1H is the key to successful planning. The event planner should look at the event as a project. Project management offers the project manager a number of advantages which include establishing a systematic approach to all events, depersonalizing the event, facilitating clear communication, and so on. Operational plans have to be instituted to achieve the objectives. The plans laid should link to the organisation’s strategy. The operation plans include: action plan and schedules; the names and information of the members who will carry out the tasks; monitoring and control mechanisms, to include budget allocations and resources. (Bowdin et al., 2011) The key to a successful project management is the understanding of the knowledge and skills for a particular project, coupled with teamwork and close coordination with the staff and team as a whole. 2.2 Type and level of service associated with a variety of events Events are conducted or hosted by events organisations while there are events staged by special teams. With the increasing growth of the industry, firms or groups have formed the specialist suppliers which work for functions like staging, lighting, sound production, entertainment, and many other functions. They are suppliers with specialization and expertise which are an integral part of the industry. They assist professionals and functions in events. (Bowdin et al. 2011, p. 30) 2.3 Health, safety and hygiene problems which can affect the operational success of an event In large events, health, safety and hygiene matters, to include risks, are handled by safety and health manager. The participants and attendees must be protected from possible threats to their health and safety. If the event involves large crowds, then crowd management is essential and must be handled by expert crowd managers. Risk management refers to the process of preventing or reducing ‘potential costs, losses, or problems for the event, organization, partners and guests’ (Getz 2007, p. 291). Events might encounter threats from unruly fans, traffic, crowd, alcohol, terrorism and crime. The weather and other environmental forces can also threaten events. Other forces that might have drastic consequences for the event manager are the economy which might affect the turnout and sales; attracting the wrong people which can lead to trouble; or wrong policy decisions on the part of the event manager. 2.4 Marketing, human resources and quality control applied in the organisation and delivery of a successful event The event manager who is responsible for all decisions pertaining to the event appoints the staff and the responsible team. The team can be composed of a deputy event manager, local authority liaison, emergency services liaison, health and safety executive liaison, site planner, catering, personnel who is responsible for recruiting, scheduling, supervision, and work roster. The manager needs to describe the tasks of the personnel and specifications for each job. Staffing needs expertise and experience on the part of the manager. The event must be staffed with the right people who possess the right skills and appropriate training for the various roles associated with the event. The manager must be able to ‘produce a person specification, job description and training and equipment schedule for each job’ (Conway 2004, p. 191). The event planner should have knowledge of the politics within the organisation. There are things that the planner has to deal with, for example union employees, who may be opposed to the event or who may have something to say about the event. Every event in the corporation is meddled with some political connotations. The event manager should see to it that the event management does not fall into some corporate political traps. This can be clearly handled by identifying the real decision makers of the organisation, and any further decision should not be influenced by those meddlers. Client and contractor relationship 3.1 The importance of a good client and contractor relationship Contract and relationship management is an important aspect of client and contractor interaction. It refers to management of communication and relationship between client and contractor to ensure best value for the relationship. Contract and relationship management becomes successful when: client and contractor recognise the importance of culture, attitude and behaviour; there is open and good communication on both parties; contractor is motivated to perform well for the event; the right personnel and staff to manage the event are in place; the changes to the contract are controlled and manageable; advantages and benefits of the event are recorded and realised; contractor and client have good coordination; structures for proper liaising are in place; and, continuity of personnel is maintained. (London Fire & Emergency Planning Authority 2007, p. 12) 3.2 Factors that impact the success of the contractor and client relationship One of the factors is efficiency on the part of the contractor who should be able to provide the resources and all the important aspects of the event. Tangen (2005 as cited in Frodel, 2010, p. 382) says that efficiency ‘represents how well the resources of the transformation process are utilized.’ Transformation here represents the event in the company. Efficiency is associated with the utilisation of resources in a value creating process. Other factors include creativity and commitment. Contractor and client should cooperate with each other in providing creativity to the event. Commitment is also important. A well-focused and established management can provide a successful and memorable event. For example, a festival needs an effective events management with an expert staff who should focus on audio-video presentation, crowd control, lighting, and effective communication, among others. The client must also collaborate with the contractor and in cases where problems occur he/she should report and suggest possible solutions to the contractor. 3.3 The different types of contract Full-time and part-time contract – this particularly refers to employment wherein the employer provides a written statement of employment. Obligations, salaries, benefits are stated in the contract. In the case of an event, the payment mode on the part of the client and the services to be offered by the event producer are stated. The employer and employee obligations are also stated, like: the minimum wage, insurance, and other working conditions. Fixed-term contract – is contract for a specific period of time and fixed in advance. The contract specifies the end when the job is completed or when the event takes place. (Contract types and employer responsibilities n.d., para. 1) Agency staff – is a contract for temporary staff that are hired through agencies. The contract states that the employer will pay the agency, to include insurance and the Statutory Sick Pay (SSP). The agency is responsible for the salary and other benefits of the employees. It is also stipulated in the contract that the workers will acquire the same benefits, wage, and other working conditions as permanent employees after they have worked for 12 weeks. The workers will also have the same rights over the organisation’s facilities as permanent workers. Freelancers, consultants and contractors This type of contract refers to self-employed persons. It can also be a contract to employ employees of other firms. They pay for their own tax and National Insurance contributions and are not entitled to the same rights as ordinary workers. Zero hour contracts Zero hour contracts apply to ‘piece work’ or to persons who work ‘on call,’ for example interpreters, beauticians, etc. These individuals perform jobs which may be considered special skill. Employing family, young people and volunteers Family members and young people can be employed but are not given special treatment, like extra pay or immediate promotion. Their tax and insurance are paid and working time should be regulated. Financial processes involved in tendering for and implementation of events 4.1 Process involved in drawing up contracts The preparation has to involve meetings which have several important purposes, like: brainstorming, exchanging of vital information, planning strategies, making decisions, formulating training, solving problems, and drawing up of contracts. In drawing up contracts, the entire budgeting should be drawn including the itemized and overall budget. All agreed responsibilities and obligations for contractor and client should be put to writing in a language understood by both parties to avoid possible problems and legal issues of the contract. There have been many instances that contracts are made through verbal agreement. Although these situations are made possible due to the simplicity of the event, it is still necessary to write simple contracts. All contents or conditions in the contract must be read and well understood by both parties and by those designated to sign contracts. After the contracts have been signed, it is essential that both parties have copies of the contract. Contracts must be agreed upon in good faith. Good faith enhances honesty and the signees believe that they can do what the contract stipulates. Milestones and calendar deadlines should be properly noted by both parties, especially the event manager who is responsible for the many activities in the event. There are times that the manager needs third parties in fulfilling some conditions in the contract. The manager should ensure that such third parties can be trusted and are available on schedule. Valuable information should be shared with the staff and those who need to know; this can be very important to the event. (Eight steps to follow when drawing up contracts 2009, paras. 1-15) 4.2 Financial issues affecting implementation of a contract The proposed budget should be laid out in Excel spreadsheet as this will allow the manager to clearly see what items can be included and still keep within the budget. This will also provide a clear picture of where the money is going or spent and will enable the manager to look and provide alternate choices and see how they would work within the cost parameters. (Allen 2009) Direct costs for a meeting or event are stipulated in the contract. Direct costs refer travel, food, facility rental, and lodging expenses. Indirect costs refer to time spent and lost productivity. (Friedman 2003) 4.3 Process of business generation within contract and event management The event manager must pinpoint the target audience for the event. The corporate culture, to include values, heroes, and rituals, should be well positioned in the course of the event. A clear objective must be defined whether it is for the purpose of enhancing sales, production, or management of the corporation, or to foster good relationship with the external customer. The corporate culture information can be obtained through a careful but respectful studying of the client’s records pertaining to past events as well as records from the client’s sales/marketing personnel, managers, and human resources contacts. The manager can identify focus groups that may provide information about the expectations, needs, wants, and desires of the customers. Most of the information can be included in the goals of the event. (O’Toole & Mikolaitis 2002) As the entire project of event planning and implementation is going on, some priorities will change focus and the manager or planner and the team, as well as the client should be able to identify the business side of the project. The planner and the team will fit the components mentally or visualize the project that relates to the business of the organization. 4.4 Business success and achieving corporate targets in contract and event management Corporations and businesses consider events as part of marketing strategies and brand image and significant to attaining business success. Community groups, organisations and ordinary citizens consider events as important because they mirror their interests and passions. Corporations promote their corporate mission and objectives through events and events are promoted in newspapers, TV, and various media outlets. Events tradition has been with us for centuries. Events have become a growing industry because they promote the organisation and create business success. In public and private lives, people need to celebrate important occasions. In business, meetings and conferences are as important as pursuing corporate goals. Even in new high technology, the Internet and global media, when cultures seemed to have separated from religious beliefs and traditions, we still have to celebrate social events. Conclusion This paper was conceived for the purpose of giving a report to the Board regarding the events being held once every few months and the issues concerned were discussed in this paper. An event is an organized occasion which the company holds for special or ordinary purposes. For example, the company holds regular meetings, but special events are for conventions and exhibitions. These events are assigned an acronym, MICE, which refer to meetings, incentives, conventions and exhibitions/events. Events increase value creating for an organisation. This industry is a growing industry and contributes to the gross domestic product of the United States and the United Kingdom. The event manager, who acts as the director, is supported by a staff to carry out the operation and tasks of the event. Factors that have to be dealt with in events include logistics, which provide the planner and the team a framework to manage the operations. An important part of the activity is the planning which aims to save time and resources. The project manager has to provide the calendar and the milestones. The success of an event depends on the collaboration between the manager and his team and the client. References Allen, J 2009, The ultimate guide to successful meetings, corporate events, fundraising, galas, conferences and conventions, incentives and others, John Wiley & Sons Ltd., Canada. Bowdin, G, Allen, J, O’Toole, W, Harris, R, & McDonnell, I 2011, Events management (3rd edition), Elsevier Ltd., Great Britain. Contract types and employer responsibilities n.d. viewed 7 November 2013, . Conway, D 2004, The event manager’s bible: the complete guide to planning and organizing a voluntary or public event, How To Books Ltd., United Kingdom. Eight steps to follow when drawing up contracts 2009, viewed 7 November 2013, . Friedman, S 2003, Meeting & event planning for dummies, Wiley Publishing Inc., Indianapolis, Indiana. Frodel, M 2010, ‘Criteria for achieving efficient contractor-supplier relations’, Engineering Construction and Architectural Management, vol. 18, no. 4, pp. 381-393, viewed 7 November 2013, via ABI/INFORM Complete database, DOI 10.110810969981111145826. Getz, D 2007, Event studies: theory, research and policy for planned events, Elsevier Ltd., Oxford, UK. Koch, C 2004, ‘The tyranny of projects: teamworking, knowledge production and management in consulting engineering’, Economic and Industrial Democracy, vol. 25, pp. 277-290, viewed 7 November 2013, via ABI/INFORM Complete database. London Fire & Emergency Planning Authority 2007, ‘You and your contractor: a manual of best practice for contract and relationship management practitioners’, viewed 6 November 2013, . O’Toole, W & Mikolaitis, P 2002, The complete idiot’s guide to meeting and event planning, Alpha Books, Indiana. Rogers, T 2003, Conferences and conventions: a global industry, Butterworth-Heinemann, Burlington, Massachusetts. Read More