Capacity control

Last Updated: 27 Jan 2021
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With the arrival of technology that is state-of-the-art, the hospitality organization experiences the loss of control on its records. The exclusive control of airline tickets, seats, rooms, rental, etc, which are all considered products of the hospitality industry, is no longer controlled by owners of these products. In its place, those who own and administrate global reservation systems operate these assets more and more. The challenge lies in the enterprises fighting back to win control over these things. Olsen and Cassee (1995) were able to point out several factors that affect the capacity to control.

Technological advancement is the most prevalent among these factors. Advances in technology have caused the growth of wireless and cable operated communication gadgets that enable individuals to set up establish straight links with the provider of hospitality products and services. Such a scenario offers bigger opportunities to take back control. Due to the magnitude and range of the hospitality industry, there is a requisite for systems and processes to be in a position that can incorporate both the needs and wants of those who consume the service.

Software developers who will be able to deal with the reservation process on far-reaching sources through the growth and expansion of useful and proficient software will have the chance to dominate the sale and dispersal of hospitality goods in the future. The role of that the government plays in setting regulations will also influence how products and services are controlled and distributed in the e-commerce setting; in addition to this, because the range and coverage of the hospitality industry is worldwide, the role of the government in regulating the process of transaction will establish the reliability of the system.

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Moreover, the intercontinental characteristic of the information highway will influence the actions of those who regulate further since they will attempt to guard their national interests in the face of no regulatory regulation over the open flow of global business. The accessibility of resources to supply in processes that nourish competitive leads for hospitality business has put pressure on these businesses in relation to how they allocate resources (Olsen et al. , 1998), particularly in the field of capacity control.

Due to this, outsourcing in areas that they do not specialize in is being done by enterprises. The benefits brought about using a global distribution may prove to be more advantageous as compared to owning and operating, in line with this hospitality businesses are thinking over their plans of action when it comes to owning and operating reservation systems of their own. Another influence that technology will have on the control of inventory in the hospital industry lies in the configuration of the travel dispersal system.

With the initiation of technology that brings the customer directly to the service provider, the role of travel agents, tour operators, and corporate travel offices is slowly losing ground. The turn out of this change within the infrastructure in providing services to the customer will result in efficiency in the transaction cost. Safety and Security A major influencing force in the consumption of the goods and services produced by the hospitality industry is safety and security. According to Olsen and Cassee (1998) macro and micro forces both have affect the hospitality industry.

While forces that are considered macro influence the general public as a whole, micro forces stem from the point of the society that concerns the individual and the business. For instance, a macro force that has been a major concern throughout time is terrorism. Terrorism beset cities like Paris and Cairo in 1995-96 and impacted the economies of these countries negatively. The growth of terrorism can be credited to factors such as the growing gap in terms of wealth between nations and inhabitants within countries.

In a circumstance like this responsibility of hospitality industries to provide a safe and secure setting for its clientele becomes an important role. One way to address this predicament is to investment in necessary resources that aid in addressing the issue of terrorism, at both the national and the local level. However, because of the lack of funds of governments to do this, private enterprises have started to take steps at the local level ensure the safety of their establishments.

While these investments made by private businesses to lessen the presence of terrorism have been important, the need to tackle this issue at higher levels has become compulsory. Hospitality industries will not only rely on the actions taken by governments to address such issues, but also the influence private establishments have to add to the efforts made at the macro level. While this is important to fight terrorism, another main force (micro) that affects the utilization of hospitality goods and services is personal health and safety.

The concerns over the proliferation of AIDS, tuberculosis, Hepatitis B, and other new viruses have affected the hospitality industry. The break out of epidemics such as SARS and bird flu have hampered the decision of business and leisure travelers to set foot on places where these have happened. The consequence that safety issues have on the selection of destination, especially for leisure travel, has become the worry of officials in both the private and public divisions. Assets and Capital

The fundamental building block in the discussion of the forces that drive change is the capacity to distribute resources to those investments that assist to mute the obstacles related to the unconstructive impact of the forces motivating change and grasp the lead of chance presented by them. In this situation, the issue that faces hospitality managers is the availability of capital to support those investments. The availability of funds for investing is growing scarce as a result of the international shift towards the market economy.

Likewise, the role played by technology in the employment of these funds has influenced investors. Mobilization of funds have become swift and efficient across the globe through technology has making it easier for investors, and as a result pressure to invest funds in value adding assets has increased. Another influence on capital availability is the capital allocation of the public and private finances needed to expand infrastructures throughout the world especially in nations that are developing. This will in due curse affect opportunities in these nations if the development of infrastructure cannot take place.

Since private capital investments happen through capital markets via personal dealings concerning brokerage businesses and investment bankers, the persuasion of these money managers on hospitality managers has been growing. Accordingly, there has been sharpening of skills among hospitality managers in order to manage the assets so that they afford noteworthy returns. Therefore, enterprises will need to add to their maintained profits to finance new investments, and for this reason, the output of their assets. Technology

The influence of technology on hospitality businesses is thought of to be one that will change hospitality operations globally in terms of procedures ,structure, design and systems. The speed of increase of technology has been major, as a effect of which new goods and services have come out that have not only improved customer satisfaction but also increased the competence and output of hospitality processes. Systems based on technology like property management systems, database marketing, and management accounting structures have increased the efficiency and effectiveness of operations in the hospitality sector.

Modern day technology has also allowed businesses to deal with issues on the subject of higher costs of labor and capital. Technology has been employed to raise the levels of service given to customers. Round the clock check-in and checkout services, concierge services, room climate controls and room and property security systems, are competitive methods brought about by technology that have end results of increased customer satisfaction. Administration will also change in the hospital industry without any doubt due to technology.

Due to technological advances the number of people required to work in the corporate and administrative areas have decreased. Furthermore the working from offices is no longer an existing condition for these employees. As a result of advancement in technology and the source of these impacts outsourcing has become significant on the cost that the enterprises entail. Technology will aid the firm in developing systems that make available a safe and secure environment to the people who make use of it and for employees as well.

For instance, new technology has lent a helping hand in improving the quality of water, providing better disposal systems for waste, and energy conservation with the use of high tech systems. To stay within the competitive area, hospitality firms will need to spend for these technology based methods in the future. New Management The first four driving forces discussed above will have some beating on the fifth force for change, to be exact; the running or management of hospitality businesses. The skill and aptitude of a hospitality manager to handle the changes in the setting will be raised.

In order to manage a intricate and unpredictable environment, hospitality managers will be obligated to study the setting and foresee the forces that will have an impact their businesses and integrate this into their framework for decision making on a constant base. In doing so, hospitality managers will be carrying out the role of “boundary pners” (Olsen, M. D. , Prakash ,C. and Sharma, A. 2001), the achievement of which will appeal for operational skills strategic management skills as well.

To take charge of the firm in an improved manner and to get by with the requirements of the investors, hospitality managers should have knowledge of the business environment that they participate in and at the same time be proficient about the working areas of management. This will facilitate the process of looking into the environment and measuring the influence of the environmental changes on the business. A hospitality manager’s role is not whole without putting emphasis on the leadership skills mandatory to manage a team.

New leadership skills will be required in managing employees as teams that leaders manage become more diverse and independent, and as the hierarchies which exist within organizations. As the teams that managers lead are becoming more independent and diverse, and as organizational hierarchies that exist within hospitality industries even out. Skills in human resource management will become essential when they identify the approach to centralizing/decentralizing power and responsibility.

Conceptual skills needed of managers will help to analyze the hospitality setting better while human resource skills will aid them in becoming competent leaders in handling those changes. Human resource management (HRM) practices coupled with motivational aspects of the initiatives being implemented by management contribute to the attainment of an organizations competitive advantage through the strategic implementation of a highly committed and competent workforce; by means of an integrated range of cultural, structural, and personnel techniques.

In addition to motivational initiatives accorded to organizations, effective HRM leads to an organizations’ success by producing employees who contribute to the delivery of products and services, bring customer satisfaction, business results, and shareholder value (Stone, 1998). The main purpose of HRM in blending with motivational initiatives is to improve the productive contribution of individuals wherein the employee’s voices are heard by the management and help the employees find new means enabling them to perform their jobs successfully (Ulrich, 1997).

The role played by human resource functions is best explained by determining the main objectives. That they seek to make parallel strategies, develop effective motivational policies, systems and activities which are significant to the firm’s overall success (Torrington, Hall & Taylor, 2002; Storey, 1995). Human resource management that functions with motivational concepts is critical in running an organization that is effective. Organizations need to have competitive HRM functions in order to uphold a competent workforce and attain business objectives.

Functions coupled with motivational concepts like planning, training and development, career development, performance appraisal, and employee relations help organizations to facilitate strategies that allow them to achieve efficiency and effectiveness (Stone, 1998). Prior researches have found support for the role of HRM practices in predicting organizational commitment (Davidson, 1998), job satisfaction (Bradley et al. , 2004), and procedural justice (Edgar & Geare, 2005). All of which, lead to job satisfaction.

Job satisfaction is a pleasurable emotional state resulting from the valuation of one’s work (Locke, 1976). Despite the fact that job satisfaction is a highly personal experience, there are a number of facets that seem to contribute the most attaining a sense of job satisfaction. It has been stated that mentally challenging work, adequate compensation pay, career opportunity, the ready availability of promotions, people that are friendly, considerate, or good-natured superiors contribute to job satisfaction (Johns & Saks, 2000).

For instance, a readily available promotion is positively related to job satisfaction. The presence of the promotion enhances the perception of the employees that they are valued enough by the organization (Garrido, Perez, & Anton, 2005). Previous studies have also shown that compensation (Bassett, 1994), opportunity for advancement (Schneider, 1994), psychological climate, and leadership style (Howell & Frost, 1989) are antecedents of job satisfaction. With the occurrence of job satisfaction, organizational trust is accorded to the organization.

Trust is an individual’s expectation, assumption, or belief about the likelihood that another’s future action will be beneficial, favorable, or at least not detrimental to one’s interests (Meyer, Davis, & Schoorman, 1995). Trust is considered to be an essential constituent in organizations since it is a consistent mechanism that sustains organizational change and development in an unpredictable environment as opposed to hierarchical power and direct surveillance (Kramer & Tyler, 1996). Several studies clearly point out that the formation of trust within workplace relationships is complex and elusive (Tzafrir, 2003).

Furthermore, trust in the workplace is a indispensable element for the development of competitive advantage by means of support, co-operation, and improvement of systems. Trust is viewed as a feature of the social foundation that sets in motion interactions among parties (Mayer & Davis, 1999). According to Kramer and Tyler (1996), there is a need for organizational trust to be encouraged within the organization for the reason that there are organizational needs that are not to be disclosed and one of the elements that addresses these requirements are employees that trusts their organization.

Currall and Judge (1995) defined trust as an individual’s reliance on another person under conditions of dependence and risk. Dependence means that one’s outcomes rely on the trustworthy or untrustworthy behavior of another. Additionally, risk means that one would experience negative outcomes from the other’s untrustworthy behavior (Kramer & Tyler, 1996). Previous studies have shown that psychological contract breach (Costa 2001), leadership style, motivational initiatives accorded to the employees and organizational communication are antecedents of organizational trust.

Organizational Citizenship Behavior (OCB’s) are behaviors that are discretionary, indirectly seen or recognized by the official compensation system, and as a whole encourages the effective functioning of an organization (Organ, 1998). It is also defined as an employee behavior that is above and beyond the call of duty and is therefore discretionary and not rewarded in the context of an organization’s formal reward structure (Konovsky & Pugh, 1994).

Service motivation generates and maintains an organizational culture which promotes others to offer services which are essential to extraordinary performance. It allows others to gain the skills and backing needed to perform well. Encounters in service can be a complicated issue not only because the social interaction required presents a great amount of expectation. There is a great demand for satisfaction for both sides. An employee who renders services needs to be satisfied with his performance as well as to justify the undertaking of such a career.

There is also the presence of having to satisfy the customers to whom they render their services. On the same lines the customers need satisfaction for their immediate reason for their dealings; they also desire to be acted towards in a courteous and suitable manner (Lee-Ross, D. 1990). Expanding understanding between the relationship of how customer satisfaction and productivity relate to one another is of significant value most especially in the light of the continued growth of the service industry in the market.

There are however, conflicting ideas about whether or not these two do work hand in hand or in contradiction to each other. A study by Eugene Anderson, Claes Fornell, and Roland Rust in 1997, investigates this issue. There are considerable differences in opinion with reference to the quality of the relationship of customer satisfaction and productivity (Huff, et. al. 1996). It is common to argue that the relationship that exists between the two is positive in the context of operations research and management.

An organization which is able to attain a cut above standard of customer satisfaction is able to assign less resources in handling matters such as rework, warranties, returns and complaint management thus lowering costs and increasing productivity (Cosby 1979, Derning, 1982 and Juran 1988). Reichheld and Sasser (1990) argue that in the context of services argue that reducing imperfections leads to greater and intensified loyalty which in turn leads to greater productivity and the lowering of productivity costs.

On the other hand, there is an similarly persuasive logic which suggests that the quest for customer satisfaction increases cost and consequently reduces productivity. In a step to resolve the contradictions between these two thoughts Juran (1988) suggests defining quality. His approach suggests that although quality may have many dimensions, these dimensions can be grouped into two individual categories: Quality which satisfies the needs of a customer and Quality that is uncontrolled from imperfections. A conceptual framework was formulated to resolve these contradicting viewpoints.

The model calculates that customer satisfaction and productivity will go together less when: 1. Customer satisfaction relies more on customization as opposed to standardization. 2. When the cost of producing both customization and standardization is too high. The findings for this study suggests that a foundation for the argument that trade-offs are more probable for services. Hence, the effort to simultaneously increase both customer satisfaction and productivity will prove to be more testing in such industries.

This does not mean however, that organizations in industries such as that of hospitality should not seek to find improvement is such fields; rather it should inspire more studies in the field of customer satisfaction and productivity. Many experts see eye to eye when it comes to the fact that organizations that are able to produce superior quality in both services and goods are organizations with employees who have a clear picture of the importance of these things.

Organizations who are able to motivate their employees in exemplifying such behaviors have a substantial advantage over their competitors (Albrecht and Zemke, 1985; Collier, 1994;Lovelock, 1994; Schmenner, 1995; Zeithaml et al. , 1990). An individual who is motivated enough will have the capability to reach a goal or an objective. To gain better understanding of motivation, certain concepts that are found to be in line with motivation such as rewards and incentives, intrinsic and extrinsic motivation, punishment, aggression, stress, secondary goals, coercion and self-control must be looked at.

Motivation can be defined in a number of ways depending on what field it is in and context within it is defined. According to Schermerhorn et al (2002) it can be defined as influences within an individual that explains the intensity, trend, and determination of effort applied to their work . Reward is a motivational concept that basically means being able to bestow a certain gift or incentive to an individual to acknowledge positive behavior and encourage the repitition of such behavior(s). This can be considered in two forms, intrinsic and extrinsic.

Intrinsic motivation refers to the rewards or satisfaction that a person gets internally while extrinsic motivation is the satisfaction brought about by external factors. This is evident in the actions that people have. Something that is driven by intrinsic motivation is done for the own sake of a person. It is done with the person’s free will for his own sake without any outside force pushing him to do so. On the other hand, extrinsic motivation is based on the punishments and or rewards that the actions may bring.

These rewards and punishments are more concrete, such as a promotion in the workplace, a new car and the like. For this reasons, motivation can be considered as in part under the jurisdiction of incentives. Behavior effects from choices which are made willfully among others whose function is to maximize pleasure and minimize pain according Victor Vroom’s expectancy theory. This theory states that the sets of goals of individuals vary and can be motivated if they accept as true that there is a positive association between efforts and performance.

To better understand the theory of Vroom the key elements Expectancy, Instrumentality, and Valence must be understood. Expectancy refers to the how strongly an individual believes he or she can achieve a particular job performance or not. Supposing that all other factors are equal, an employee will be motivated to attempt a task, if he or she deems that it possible. This expectancy of accomplishment may be contemplated upon of in stipulation of chances ranging from absolutely not being able to perform a task to having slight doubts.

Factors that can contribute how an employee views expectancy are: the of amount of confidence in the skills needed for the particular task; the quantity of reinforcement that may be anticipated from superiors and subordinates; the quality of the resources and equipment, the accessibility of relevant information; Success in the same task by predecessors also increases the degree of expectancy. Instrumentality: If an employee supposes that a high level of performance will be influential for the acquisition of results which may be satisfying, then the employee will put a high worth on performing well.

Vroom defines Instrumentality as a possibility belief putting together one outcome with another. Concretely, an excellent performance and a reward. The probability of instrumentality may be viewed in a way that the achieving the second outcome (reward) is dependent on the first outcome (excellent performance). Valence: Refers to the emotive orientations people posses with respect to outcomes (rewards). An outcome becomes positively valent if an employee would rather have it than not have it. An out come is negatively valent when an employee avoids certain circumstances despite the outcome it may bring.

Valences refer to the level of fulfillment people look forward to getting from the outcome rather than the actual fulfillment they get once the reward has been attained. Vroom proposes that an employee's beliefs about Expectancy, Instrumentality, and Valence work together mentally to produce a force that encourages so much so that the employee behaves in manners that bring pleasure and avoid pain. People choose to engage in levels of job performance that they suppose will make the most of their general interests.

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Capacity control. (2018, Jul 04). Retrieved from

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