CHAPTER 2: MANAGEMENT PRACTICE, EVOLUTION AND ETHICSARRUEJO, DOMINGO, EVANGELIO, KEYSER, LUBERIANO, NICOMEDES

Management Practice

• Management Universality is the premise that management is an art and a science that has applications across all industrial boundaries.

• Organizational Behavior is the study of individual and group behaviors within organizations.

Management Evolution

• History of Management• It contains the big picture of all aspects related to

implementing, conceptual, influence and technical skills• Management and Psychology are relatively young

sciences• Early 1900s• Started as a very narrow science and has developed into

a broad interdisciplinary field of study

Categories

1900s-40s 1940s 1950s-70s 1980s 1990s-2000s

Scientific management

Hawthome studies

Management science

Human Relations

Leadership

Human resource management

Situational leadership

Systems management

Classical Approach

(Scientific Management)

• Focus exclusively on line supervision as opposed to the overall organization

• Goals

- to find the one best way to do work

- to determine the most efficient methods for

performing tasks, duties and responsibilities

• Efficiency

- results when outputs are achieved using fewer

inputs

- is a process of doing things right• Effectiveness

- is the process of enhancing the quality and/or quantity of produced

outputs

- doing things right

Frederick Taylor• Father of Scientific Management• Engineer by training• Time and Motion Studies• Peace-rate compensation provides pay per unit of work

produced (outputs)

Frank and Lillian Gilbeth• Husband-and-wife team of scientific management

researchers• The one best way to one best way to do work • Movie about their life and work called Cheaper by the

Dozen

Henry Gantt• Gantt charts• Established a Comprehensive View of management in

organizations• Established Fayol’s Fourteen Points (popular

management edict)

Max Weber• Father of Administrative Management• Functional Organizational Structure in which departments

and reporting relationships are categorized by functions (accounting, operating, marketing, etc.)

• First movement to contribute to the development of management in organizations

• Limitation: Purely efficiency-based; focused solely on front-line supervision

• One best way to do work• Classical Management approaches: Scientific

Management, Administrative Management and the Comprehensive

Early Behavioral Studies

Elton Mayo• First to discover that human factors influence production• “Hawthorne Studies”

- 1924-1932

- First attempt to view the behavioral aspects of

management

A. Work Performance and the lighting

B. Individual pay incentives were offered to

workers to increase personal production

Human Relations Movement

• First school of thought in the behavioral science approach to management

• Human Resource Movement of today• Human Interactions and and its impact on organizational

success

• Abraham Maslow

- popularized humanistic psychology; prominent

in 1954• Journal of Humanistic Psychology in 1958• American Association for Humanistic Psychology in 1964• Personal growth and potentiality (psychoanalysis and

behavioralism)• Self actualization

- experience

- reflective practice

Management Science

• Uses the scientific method and mathematics to improve organization performance

• Used in large organizations• Operations Research (OR)

– type of research employed in the decision

making process• Action Research – form of Management Science, used by

Service enterprise managers especially those in complex environments like hospitality

Contingency Approach

(Situational Leadership)

• Considers leaders, followers and the environment as variables for making management decisions

• Situation (environment) influences management behavior

Systems Management

• Systems Management

- Views the organization as an entity that

consists of interdependent relationships with

internal and external sub-systems

- wholeness; big picture• New Science Management

- an approach; a small number of scholars have

applied quantum theories to organizational

systems thinking

Management Skills

Functions

Conceptual

Human Relations

Technical

Planning

Organizing

Control

Human Resourc

es

Influence

Scientific Management

Efficiency Effectiveness

Transformation

Management Science

Management Practice

Managing Individual Performance

Job Design, Responsibility and Authority

• Authority – is the right to perform or delegate tasks, dutiesand responsibilities

• Job Description

– document wherein general and specific task duties

are outlined

- describes work environment, levels of legal

accommodation and should include

specifically how performance will be measured

- Evolves from an activity called Job Analysis• Job Analysis

– part of the job design process

- identifies tasks, duties and responsibilities, work environment and confidentiality requirements associated with a position of employment

Procedures

Strategies

Policies

Standards

Objectives

Job Design

Job

Ana

lysi

s

Job Specificati

on

Job Descriptio

nPerforman

ce Managem

ent

Job design drivers

• Managers Handbook

– document wherein managers refer to

articulating management responsibilities as

responsibility reference guides

• Line Authority

- is the right to direct operational activities that generate products or services or revenue

• Staff Authority

- is the right to advise members of the organization

• Accountability

- Measures the performance with regards to use of authority and living up to levels of responsibility

• Performance Appraisal

- a control mechanism when the manager is held accountable for his/her performance

• Delegation

- is the process assigning both authority and responsibility to individuals within the organization

Managing Group Performance

• Group Dynamics – aspect of behavior; group interaction brings about an added dimension to those aspects already discussed concerning individual behavior

Two types of groups of Organizations

1. Formal Groups

– established by the organization (departments, divisions, stores, quality teams, etc.)

2. Informal Groups

– groups that naturally develop without organization design (social groups, bowling leagues, coffee clutches, etc.)

* Both evolve through membership of organization

• Committee

– a task group that is formed to make decisionsconcerning policy issues• Groupthink

– A phenomenon; when a group begins believe

it as invisible and members stop questioning

processes and decisions• Team

– a group of individuals who orchestrate activities in a manner that yields outcomes greater than the sum of the parts• Synergy

– a team consisting of four members will achieve

more with less than a similar group

Stages in the Development of formal groups

1. Acceptance Stage

2. Communication Stage

3. Solidarity Stage

4. Control Stage

Stages of Team Development

2. Forming Stage

2. Storming Stage

3. Norming Stage

4. Adjourning Stage

Managing Group Performance

• Corporate Culture

– amazing phenomenon in organizations

- is the shared values, attitudes and beliefs

within the organization

- not written, understood and agreed to in a

subconscious manner

- developed and maintained by history and traditions

of organizations

- the older the organization, the more established its

culture

• Symbols

– one symptom of corporate culture

– ex. Pins, plaques, trophies, certificates,

banners, posters, etc.• Status symbols

– are those related to position within the

organization

- ex. Office layout and furniture, preferred

parking spaces, etc.

• Clues

– location, layout, neatness furnishing, signage, etc.• One would want a culture that would not clash with

values, attitudes and beliefs

Values – core philosophies, who we are, childhood and adolescent development

Beliefs – are those convictions that arise from past experiences compared with our value system; changeable

Attitudes – directly related to current experiences and re subject o change

* Another approach to attitude adjustment is training.

Managing Behaviors

Behavior begins with…

Thought/ instinct Intentionality Behavior

Intention

- The gap that causes action = behavior

Attitude surveys are conducted by human resource practitioners to gauge employee morale.

2 DangersMany surveys are not statistically valid and reliable If we ask questions, we must address the issues of

concern according to the responses

Symptoms of poor morale run in stages:

distrust, discontent, fear, anger, sabotage (of corporate property) and finally apathy

Management Ethics

Managers are responsible and accountable to four distinct stakeholder groups

ShareholdersCustomersEmployeesCommunity

STAKEHOLDERS

“When we fail to govern our freedom wisely, we lose our liberties.”

- Patrick Henry

Managers enhance their own status and prosperity

“What goes around, comes around.”

“Live by the sword, die for the sword.”

Awareness and Paradigm Shifts

• Paradigm

- model of a principle; managers enact shifts in

their own management • Paradigm Shifts

- an awareness of the first paradigm is required before the second one may be realized

Awareness – consists of who we are today

Shift – consists of who we want to be tomorrow

• Code of Ethics

– are formal statements providing guidelines for

ethical behavior on the part of managers and

other professionals

• Ethics Committees

– are composed of employees from multiple

departments who create and maintain the

codes of ethics for organizations

Social Responsibility

• Corporate Social Responsibility

– is defined as the management obligation to

take action to protect and improve the welfare

of society, as well as the interests of the

organization

• Social Responsibility

– our duty to the community stakeholder group, which includes suppliers, neighbors, our industry and society at large

Legal Creation View

• corporation is created by the state (government)

• serve the needs of society

• republican

Legal Recognition View

• corporation is a free entity • the state (government)

merely registers the corporation

• not to serve the needs of society

• capitalism

Two Legal Views of Corporations

• Simple to complex• Either legal or illegal• Interpret whether a person’s behaviors have violated and

existing code of ethics

Two Means of evaluating Management Decisions

1. Consequentialist philosophers – are concerned with the consequences of an action

2. Formalist philosophers – are NOT concerned with the consequences of an action

Testing Behaviors and Decisions

• Moral Audit – reviews the internal decision- making behaviors od managers and supervisors within the organization and compares those with existing ethical codes

• Social Audit – reviews the morality and ethics of dealing with external stakeholder groups in the course of doing business

• Is the number one skill for all practicing managers

Four vital competencies that organizations seek in managers:

Computation (math) skillsComputer skillsWritten and verbal communication skills

Managerial Communications

• Communication

– is defined as sharing information and

meaning with other individuals

– symbols: words, gestures, facial expressions,

tonality

• Macrobarriers

– refer to those barriers outside of the

communication model that influence

effectiveness

– communication model: attitude, perception,

mood, noise and semantics• Communication Feedback

– is achieved through verbal and non-verbal

cues

• Organization Communication

– is the practice of communicating throughout

the organization• Informal Communications

– occur among individuals outside the business

purpose

Grapevine – common form of informalcommunications; rumor mill

• Organization Development (OD)

– is a process of systematic change aimed at continuous organization renewal (adaptation)

– OD practitioner is a change agent

Internal change agents – are those who work as managers in a company

External change agents – are brought in from outside the organization (consultants)

Organizational Change

• The word stress is better state as distress

• Distress – is when a person reacts adversely to variables in the environment that the person considers to be stressors

• Eustress – is stills stress – reaction is positive in terms of enhanced performance

Managing Workplace Stress

13 Best Practices for Hospitality Training Managers & Directors - By John Hogan

December, 3 2010

• The forecasts of recovery for the hospitality industry range from 'next quarter to next year' depending on where one is located in the world. For those of us who have been in the industry for more than 15 years, we have come to realize that the cycle will reverse itself and we need to be ready to greet guests, serve them efficiently and exceed their exceptions.

• The responsibility for ensuring that all associated receive initial and ongoing training to provide that excellent and consistent service varies by type of hospitality business.  Larger hotels and companies have internal training staffs.  Many branded hotels have access to their brand’s general training offerings for a fee and online learning continues to grow.

• Late last year, I authored a column titled "A Baker’s Dozen" of Strategies for Hospitality Human Resource Managers” that offered specific recommendations that included an overview on training.  With the continuing turbulence facing our industry and shaky global economies still identified each month, the responsibility to find the time and resources to train becomes more critical. Like politics, business is often “local” and we must be ready to greet those

• guests when our local conditions present themselves positively. We need to remember to foundations of our successes and not accept the negativity of the naysayers.

We learn by example and by direct experience because there are real limits to the adequacy of verbal instruction.”  

Malcolm Gladwell, Blink: The Power of Thinking Without Thinking, 2005

• This column addresses the very core of all hotels: the one-on-one interaction of associates and guests.  Without the proper planning and implementation of staffing and service, a hospitality business that interacts with guests 24 hours a day for 365 days a year has little chance for ongoing success.

• Smaller hotels likely do not always have staff dedicated only to training, but the responsibility remains the same regardless of hotel or staff size.  Today’s hospitality training team must be effective communicators who can share best practices and examples of “how to” because there always seem to be crises.  Those crises might be anything from technology problems to staffing shortages, but thriving in a multiple priority environment is often a requirement

•  

"A Baker’s Dozen" of Strategies for

Hospitality Training Managers & Directors• Training differs somewhat from HR roles, in that it often

tends to be two fold and more action oriented.

Planning

Plan, produce and monitor the annual training budget.  Successful training efforts do not just happen.  A team leader must work with HR and department heads to identify probable needs and create a viable plan to help operations meet those needs.

• Formulate all learning & professional development related policies and procedures and update routinely.   As with business forecasts, training needs to be anticipated and evaluated at least quarterly.

• Prepare appropriate training needs analyses and career development plans.    This is as much for the individual participating in training as it is for the organization.  We all like to know “what’s in it for me” and having career path potentials can assist both department heads and associates “think ahead.”

• Plan, produce and monitor the annual learning & professional development master schedule.   Training needs to be ingoing.  When one steps back and recognizes the changes in technology, the green movement, online learning and more, it becomes obvious that as in #2 above, there is a logical need for a longer term plan with the requirement for updates.

• Delivery and Evaluation• Support the timely scheduling and posting of the

following month's Training Calendar, incorporating security and safety training sessions to all Department Heads and Executive Committee Members monthly.   With the increasing potential of terrorism in hotels and hospitality businesses, the need to regularly review updates and the property’s plans are essential.

• Assist the Quality Assurance or other managers in monitoring and consolidating month-end training activity reports from all departments. Some properties have limited training staff, but all information relating to professional development and training activities should be recapped in monthly training activity recaps. We all recall the expression, “what gets measured, gets done!”

• Assess changes in guest needs, the hotel's guest mix, and industry and competitive trends.  Markets change, products and services evolve and having someone who interacts with the front line regularly is an excellent resource to recommend appropriate product, service and operational changes that might improve the guest experience and associate satisfaction. Properties that set our to establish and  maintain market domination frequently enjoy outstanding financial results.

• Monitor and ensure that all training and development programs are carried out within the allocated budget. Budgets should be regularly reviewed and adjusted as needed, but not overlooked.  Training is not the place for major savings, unless perhaps one is

• considering delaying a major new initiative for a short period of time such as one quarter.

• Identify and make available external instructors as necessary to fulfill training objectives.   This column has focused on internal trainers, but there are times when external resources are essential.

• Conduct New Hire Orientation program for all new employees using current property, brand and/or corporate standards.  The expression about making the right first impression remains essential.

• Lead New Manager Orientation, clearly reviewing associate handbook information, brand, corporate and property standards.  New managers must understand the organizational values and operating procedures from day one.

• Oversee and/or conduct compliance courses. As in #5 that discussed safety and security, the need for attention to reasonable care continues to grow.  Programs that address product safety and potential liability, such as TIPS and Food Handler, and others involving Safety and/or Security should be addressed, monitored and measured. Some may be mandated by local, provincial/state and/or national  government agencies, but attention must be ramped up here.  Part of my work includes expert witness and/or consulting on legal issues and there needs to be specific attention paid to these issues by the major brands, as well as individual hotel owners, managers and franchisees.

• Lead by example. I have personally been an advocate in my career in ongoing learning. Professional certifications in a wide range of specialties in learning and operations are extremely beneficial because everyone benefits. Trainers need positive  leadership and interpersonal skills, yet must also maintain a sense of perspective for those learning.

• Please feel free to share your ideas and examples that can be highlighted in future articles.

• Keys to Success Hospitality Tip of the Week:

Remember – It’s the Size of Your Idea, not your Budget[1]• The Economy is a Temporary Environment.• When we take the time to analyze why we fail or fall short,

we can determine what to do about it .

Source/s:

http://www.hotelnewsresource.com/article50634.html