Hospitality, Lodging and Food Services Operations John R. Walker Leadership and Management Chapter 14 Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 1 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Learning Objectives 1 2 3 4 5 6 The Importance of leadership in management Define management-related terms such as effectiveness, efficiency, authority, responsibility, and span of control. Describe the roles and functions of managers. Differentiate among technical, human, and conceptual skills. Draw an organizational chart for an organization. Sustainable management and trends in management Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 2 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Leadership • Leaders can and do make a difference when measuring a company’s success. • Few groups can accomplish much without an individual who acts as an effective leader • The leader can and often does have a significant influence on the group and its direction Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 3 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Leadership Traits • • • • • • • Courage Decisiveness Dependability Endurance (strength) Enthusiasm Initiative Integrity Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker • • • • • • Judgment Justice Knowledge Loyalty Tact (polite) Unselfishness (sacrifice) © 2013 by Pearson Higher Education, 4 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Identifiable Practices - Common to Leaders • • • • • Challenge the process Inspire a shared vision Enable others to act Model the way Encourage the heart Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 5 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Definitions of Leadership • “Leading is the process by which a person with vision is able to influence the activities and outcomes of others in a desired way.” • Leaders know what they want and why they want it - and they are able to communicate those desires to others to gain their cooperation and support Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 6 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Transactional Leadership • Process by which a leader is able to bring about desired actions from others by using certain behaviors, rewards, or incentives • In essence, an exchange or transaction takes place between leader and follower – A hotel general manager who pressures the food and beverage director to achieve certain goals in exchange for a bonus is an example of someone practicing transactional leadership Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 7 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Figure - Transactional Leadership Model Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 8 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Transformational Leadership • Eliciting performance above normal expectations • Three important factors: – Charisma – Individual consideration – Intellectual stimulation Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 9 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Demands Placed on Leaders • Includes those made by owners, the corporate office, guests, employees, regulatory agencies, and competitors • Figure 14-2: Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 10 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Common Traits Among Leaders Include: • • • • • • • High ego strength Strategic thinking ability Orientation towards the future Belief in principles of human behavior Strong connections Politically astute (smart) Know how to use power Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 11 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Approaches to Becoming a Hotel Leader • • • • • Be decisive Follow through Select the best Empower employees Enhance career development Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 12 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Hospitality Management • Managers plan, organize, make decisions, communicate, motivate, control the efforts of a group to accomplish predetermined goals, and establish direction • Managers focus most of their time on strategic planning and the organization’s mission – Most top managers do not get involved in the day-to-day aspects of the operation Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 13 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Hospitality Management • Management is simply what managers do: Plan, organize, make decisions, communicate, motivate, and control • Management is defined as “the process of working with and through others to accomplish organizational goals in an efficient and effective way” Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 14 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Managerial Efficiency and Effectiveness Authority Accountability Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker Responsibility © 2013 by Pearson Higher Education, 15 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management requires coordination of human and material resources while maintaining concern for morals, ethics, and ideals. • A manager’s job is unpredictable and full of challenges, but it is also filled with opportunities to make a difference. – Authority, responsibility, and accountability are concepts important to the process of management. – Authority is delegated from the top level to lower levels of management and is the right of a manager to direct others and take actions because of his or her position in the organization. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 16 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved • Responsibility is the obligation to perform an assigned activity or see that someone else performs it. • Because responsibility is an obligation a person accepts, it cannot be delegated or passed to another; essentially, the obligation remains with the person who accepted the responsibility . Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 17 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved • Accountability is the state of being responsible to one’s self, to some organization, or even to the public. – In the systems context, management was described as a process for accomplishment of objectives, implying, therefore, that accountability is an integral aspect of the managerial role. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 18 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved • Managers must show results in an era when scarce resources are an increasing concern. – Efficient and effective use of these resources to produce desired results is a requisite for a viable organization. • Efficiency is “doing things right” and is getting the most done with the fewest number of inputs • Effectiveness is “doing the right things” As an example, cooks do the right thing when they cook the food correctly according to the recipe and have it ready when needed. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 19 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Roles of Managers Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 20 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Roles of Managers The formal authority of a manager gives rise to interpersonal, informational, and decisional roles. • Interpersonal Roles. Interpersonal roles of figurehead, leader, and liaison (connect) focus on relationships. – The figurehead role has been described by some management experts as the representational responsibility of management. • By virtue of a manager’s role as head of an organization or unit, ceremonial duties must be performed and may involve a written proclamation (anouncement) or an appearance at an important function. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 21 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Roles of Managers • The manager in charge of an organization or unit also is responsible for the work of the staff; this constitutes the leader role. – Functions of this role range from hiring and training employees to creating an environment that will motivate the staff. • The manager also must assume the interpersonal role of liaison by dealing with people both inside and outside the organization. – Managers must relate effectively to peers in other departments of the organization and to suppliers and clients. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 22 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Roles of Managers – In the disseminator role, the manager transmits information to subordinates who otherwise would probably have no access to this information. • An important aspect of this role is to make decisions concerning the information needs of staff members. – The spokesperson role of the manager is closely akin to the figurehead role. • In the spokesperson role, the manager transmits information to people inside and outside the organization or unit. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 23 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Roles of Managers • Informational Roles. The informational roles of a manager are those of monitor, disseminator, and spokesperson. – As monitor, the manager constantly searches for information to use to become more effective. • The manager queries liaison contacts and subordinates and must be alert to unsolicited information that may result from the network of contacts previously developed. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 24 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Roles of Managers • Decisional Roles. The decisional roles include those of entrepreneur, disturbance handler, resource allocator, and negotiator. – As entrepreneur, the manager is the voluntary initiator of change. • The entrepreneur role may involve, for example, a decision to change the menu after networking with other restaurateurs or customers. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 25 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Roles of Managers • In the role of disturbance handler, the manager responds to situations that are beyond his or her control. – In this role, the manager must act because the pressures of the situation are too severe to be ignored; for example, a strike looms, or a supplier fails to provide goods or services. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 26 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Roles of Managers • As resource allocator, the manager decides how and to whom the resources of the organization will be distributed. –In authorizing important decisions, the manager must be mindful of the needs of the unit while considering priorities of the overall operation. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 27 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Roles of Managers • In the negotiator role, the manager participates in a process of give-and-take until a satisfactory compromise is reached. – Managers have this responsibility because only they have the requisite information and authority to develop complex contracts with suppliers or less formal negotiations within the organization. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 28 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management Skills Skills Technical Human Conceptual Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 29 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management Skills Managers need three basic skills – technical, human and conceptual. • A skill as an ability that can be developed and that is manifested in performance. – Technical Skill. A technical skill involves an understanding of, and proficiency in, a specific kind of activity, particularly one involving methods or techniques. • Such skill requires specialized knowledge, analytical ability, and expertise in the use of tools and procedures. • Managers need to have the technical skills required to understand and use modern techniques, methods, equipment, and procedures Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 30 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management Skills • Human Skill. Human or interpersonal, skill concerns working with people and understanding their behavior. – Human skill, which requires effective communication, is vital to all the manager’s activities and must be consistently demonstrated in actions. – Managers need to lead, influence, communicate, supervise, coach, and evaluate employees’ performances Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 31 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Who Are Managers? • Managers are often classified into three levels: – Front-line managers are the lowest-level managers—they manage the work of line employees; they may also be called supervisors – Middle managers are akin to department headsthey fall between front-line managers and top management; they are responsible for short- to medium-range plans, they establish goals and objectives, and manage front-line managers – Top managers are responsible for making medium- to long-range plans and for establishing goals and strategies Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 32 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management Skills • Conceptual Skill. Conceptual skill is the ability to view the organization as a whole, recognizing how various parts depend on one another and how changes in one part affect other parts. – Conceptual skill also involves the ability to understand the organization within the environmental context; a good example is the relationship of the organization to other similar organizations and to suppliers within the community. – enables top managers to view the corporation as a complete entity and understand how it is split into departments to achieve specific goals Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 33 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management Functions Planning Organizing Directing Decision Making Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker Staffing Controlling © 2013 by Pearson Higher Education, 34 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management Functions The five management functions are planning, organizing, staffing, directing, and controlling. • Managers perform these functions in the process of coordinating activities of the subsystems of the organization. – Planning. Plans establish organizational objectives and set up procedures for reaching them. involves setting the company’s goals and developing plans to meet or exceed those goals Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 35 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management Functions – Organizing. Organizing is the process of grouping activities, delegating authority to accomplish activities, providing for coordination of relationships, and facilitating decision-making and is the process of deciding what needs to be done, who will do it, how the tasks will be grouped, who reports to whom, and who makes decisions Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 36 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management Functions • Staffing, Human resources and motivating involves attracting and retaining the best employees and keeping morale high. • Among the most critical tasks of a manager is staffing, the recruitment, selection, training, and development of people who will be most effective in helping the organization meet its goals. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 37 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Staffing Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 38 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management Functions • Decision making includes determining the vision, mission, goals, and objectives of the company • Controlling is the final management function which includes the setting of standards and comparing actual results with those standards • Controlling is the process of ensuring that plans are being followed. – It involves comparing what should be done with what was done and then taking corrective action, if necessary. – Controlling must be a continuous process that affects and is affected by each of the other managerial functions. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 39 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Management Functions Leading to Goal Accomplishment Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 40 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Organizational Structure Traditional Organizations Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker Innovative © 2013 by Pearson Higher Education, 41 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Organizational Structure An organization is defined as a group of people working together in some form of coordinated effort to attain objectives. • An ideal organization results in the most efficient use of resources. • The organization structure is based on the objectives that management has established and on plans and programs to achieve these objectives; different types of structures will be required for traditional and new organizations, each with different objectives. – The Traditional Organization – The Innovative Organization © 2013 by Pearson Higher Education, Inc Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker 42 Upper Saddle River, New Jersey 07458 • All Rights Reserved The Traditional Organization Organization chart and job descriptions or position guide Differentiation or departmentalization Integration Delegation of authority Administrative systems Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 43 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved The Traditional Organization One of the primary reasons for organizing in the traditional organization is to establish lines of authority, which create order. • The traditional organization frequently is defined in terms of the following: • Organization chart and job descriptions or position guides - pattern of formal relationships and duties. • Differentiation or departmentalization - assignment of various activities or tasks to different units or people of the organization. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 44 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved The Innovative Organization Empowered Decision Making Self-Fulfillment Sociability Flat Hierarchy New Bases of Management Power Emphasis on Vision & Values Personal Consideration Managers as Change Agents Team-Based with Group Recognition Technologically Savvy Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 45 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved The Traditional Organization • Integration—coordination of separate activities or tasks. • Delegation of authority - power, status, and hierarchical relationships within the organization. • Administrative systems - guidance of activities and relationships of people in the organization through planned and formalized policies, procedures, and controls. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 46 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved The Innovative Organization In innovative organizations, employers are challenged to improve the quality of work life and to develop a corporate, or organizational, culture. • Innovative organizations are characterized by several general precepts: – Empowered Decision Making: Employees, not just managers, are involved in decision-making. – Sociability: A sense of belonging to the organization is created for all members. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 47 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved The Innovative Organization – New bases of management power: A shift has occurred from use of only downward authority to inclusion of upward and lateral lines of authority and input. – Personal consideration: Greater recognition is given to the importance of individual employees, not just the job they perform. – Team-based with group recognition: Formation of teams of employees and/or managers working together to accomplish goals with more emphasis on team rather than individual recognition. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 48 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved The Innovative Organization • Flat hierarchy: The number of managerial levels has been reduced. • Self-fulfillment: Employee job satisfaction and sense of accomplishment is more valued. • Emphasis on vision and values: Companies are finding it more important to formulate clear visions and values to which employees can commit themselves. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 49 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved The Innovative Organization • Managers as change agents: Change is viewed as a critical component in organization success, and managers are expected to stimulate and facilitate change. • Technologically savvy (insight): Effective use of all forms of technology and a presence on the Internet are necessary components of organizations. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 50 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Corporate Culture Integrity Bottom-up Style of Management Having Fun Community Involvement Emphasis on Physical Heath & Fitness Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 51 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Corporate Culture Corporate culture, or organizational culture, is defined as the shared philosophies, values, assumptions, beliefs, expectations, attitudes, and norms that knit an organization together. • Positive cultures have the following qualities in common: – Integrity: Building trust between people in the organization – Bottom-up style of management: Involving employees as part of the team Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 52 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Corporate Culture – Having fun: Finding ways both at work and outside of work for fun – Community involvement: Participating in community service programs – Emphasis on physical health and fitness: Practicing a belief that a sound mind goes along with a sound body. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 53 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Sustainable Leadership • Many business leaders, including hospitality ones, are becoming increasingly more concerned about sustainability. Not only are they concerned about the environment but also social responsibility • Leaders and managers need to steer the organization on a path of sustainability for all associates to follow Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 54 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Sociocultural Differences • The sociocultural environment includes the culture and values that exist in each country; many differences can exist. – Assertiveness: The degree to which assertiveness and toughness versus caring and tenderness is valued. – Future orientation: The extent to which future oriented behaviors such as planning and delayed gratification are valued. – Gender differences: The amount of status and decision making responsibility given to females. – Humane orientation: The extent to which altruistic, generous, caring, and kind behaviors are valued and rewarded. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Sociocultural Differences • Individualism vs collectivism: The degree to which ties between individuals are loose or close. – In some countries the expectation is that each looks out for oneself (individualism) – In other countries, the expectation is that each looks out for many others (collectivism). • In-group collectivism: The extent to which membership in groups such as family, friends, and employing organizations are valued. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Sociocultural Differences • Performance orientation: The degree to which group members are encouraged and rewarded for performance improvement and excellence. • Power distance: The extent to which less powerful members of an institution expect and accept that power will be unequally distributed. • Uncertainty avoidance: The degree to which people are comfortable with the unknown and having unexpected things happen. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Distinction Between Leadership and Management • Managers – Working in the system – React – Control risks – Enforce organizational rules – Seek and then follow direction – Control people by pushing them in the right direction – Coordinate effort Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker • Leaders – Working on the system – Create opportunities – Seek opportunities – Change organizational rules – Provide a vision to believe in and strategic alignment – Motivate people by satisfying basic human needs – Inspire achievement and energize people © 2013 by Pearson Higher Education, 58 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Ethics • A set of moral principles and values that people use to answer questions about right and wrong • Ethics and morals have become an integral part of hospitality decisions, from employment (equal opportunity and affirmative action) to truth in menus • Many corporations and businesses have developed a code of ethics that all employees use to make decisions Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 59 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Trends • Leading a more diverse group of associates • Many entry-level employees do not have basic job skills • An increasing need for training • The need to create leaders out of line managers • Managing sales revenue all the way to the bottom line • Establishing independent business units to make their own profit, or subcontracting out that department Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 60 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Trends • Instead of keeping a person on payroll for a function that is only needed occasionally, outsourcing that service to specialists • Cutting down on full-time employees and hiring more part-time employees to avoid paying benefits • An increasing challenge to keep up with technological advances and their benefits • Social and environmental issues continuing to increase in importance • A greater emphasis placed on ethics Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 61 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved End of Chapter Slides Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, 62 Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved