19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Control

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Control defined: Management function that provides information on the degree to which goals and objectives are being accomplished Monitoring of activities Taking corrective action

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Importance of Controlling Final line –Planning –Organizing –leading

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Control process Setting standards Measuring actual performance Comparing actual performance against the standard Taking managerial action to correct deviations or inadequate performances

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Setting standards Quality Quantity Finances Time

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Measuring Personal observation Statistical reports Oral reports Written reports

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker MBWA “Management by Walking Around” Personal observation Direct interaction with employees Exchanging information

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Results we measure Guest satisfaction Labor costs Food and beverage costs Employee satisfaction rooms Room rates Bed sheets Energy costs Insurance Labor turnover Etc…

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Taking Managerial Action Correct actual performance Immediate corrective action Basic corrective action

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Types of control Feedforward control Concurrent control Feedback control

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Operational Financial Controls Budgets Income statements Zero based budgeting

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Qualities of an Effective Control System Accuracy Timeliness Economy Flexibility Understandability Reasonable criteria Strategic placement Emphasis on exceptions Multiple criteria Corrective action

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Contingency Factors in Control Size of the organization Operational complexity Degree of decentralization Importance of the activity

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Adjusting Controls for Cultural Differences Foreign operators tend to: –Be less controlled directly by the home office –Have a tendency to formalize controls –Generate extensive formal reports –Rely on the power of Information Technology

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Contemporary Issues Workplace privacy Employee theft Workplace Violence

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Workplace Violence Contributors Employee work driven by time, numbers and crises Rapid and unpredictable change Destructive communication style Authoritarian leadership Double standards Unresolved grievances

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Contributors cont… Emotionally troubled employees Repetitive boring work Faulty or unsafe equipment Hazardous work environment Culture of violence

19 CHAPTERCHAPTER CHAPTERCHAPTER ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Trends in Control Use of technology Generation of quicker results Hand-held inventory devices