CALEBAG, JOHN JORDAN S.

OPERATIONS MANAGEMENT in HOSPITALITY INDUSTRY

Take Home Examination
August 24, 2019

I. DISCUSS THOROUGHLY BUT BRIEFLY THE FOLLOWING QUESTIONS:

1. Relate the background, history and economic impact of hospitality industry

to a country.

ANSWER:

During ancient times most of the travelers were usually military going to war,
diplomatic and political mission. These military travelers disdained using the
accommodation that were available along the route. Some of the villagers along the
route allow these military men to use the spare rooms of their homes. These military
men are also offered food and drinks. As time passes by the villagers noticed that some
of these military men overstayed and it means additional costs for their expenses.
Therefore, the government decided that there should be a rules or law regarding the
free accommodation that the villagers offered to these military men. The government
decided that these military men can stay for 3 days then after that they are oblige to go.
However, for some 3 days is not enough for the accommodation, that is why they offer
goods to the villagers in exchange for the days of extension of their stay and that’s the
start of the hospitality industry.

Tourism and Hospitality Industry has a huge impact to the economy of any
country. It can provide jobs for those unemployed citizens and it create opportunities for
the entrepreneurs of the country. Philippines is known for numerous tourist destinations
within its 7,101+ islands including the well-known tourist destinations and the exotic
spots where its serene and beauty is still slightly explored. Some of these exotic
destinations is situated to different far flung place where transportations are still not yet
developed. Though, it still attracts tourists like travelers, explorers and vloggers (video
bloggers). Just like the ancient times and dwellers or residents within the premises of
these exotic place can offer their houses as the accommodation for these travelers in
exchange of monetary amount. Provided that the government will train these residents
on how to accommodate tourists. Just to make sure that it will be uniform and
standardized and it will result a positive impact of the Tourism Industry of the
Philippines. With the innate hospitality characteristic of the Filipinos, I can see it as a
huge success and it will definitely attract more tourist in the future. More tourist
generates more jobs for the Filipinos and a better economy for the Philippines.
 2. Diagram and discuss the interrelationship of hotel departments from the
Front of the House to the Back of the House; what is the importance of
each department to hotel operation?

ANSWER:

FRONT OF THE HOUSE

FRONT DESK TRANSPORT

RESTAURANT SECURITY
BAR CONCIERGE
TRASPORT
SOUVENIR SHOPS
HOUSEKEEPING
ROOM SERVICE
REVENUE SUPPORT
CENTERS CENTERS
KITCHEN
STEWARDING
LAUNDRY BAKERY
HRM
ACCOUNTING
MAINTENANCE

BACK OF THE HOUSE

Hotel Operations is divided into 2 major categories, the FOH or Front of the
House and BOH or the Back of the House. Front of the house refers to all actions and
areas that a customer will be exposed to during their stay at a hotel. It includes the
employees that deals with the guests. These employees must be well trained when it
comes to customer service. Customer service skills entails knowledge not just limited to
product knowledge but with the entire facility of the hotel, nearby establishment and
available transportation within the vicinity, because customer service also includes
answering guests queries and handling customer complaints. A well oriented customer
service-related staff should be presentable from head to toe at all times. They are part
of the customer service setting and they must be a great representation of the company.
Most of the department which is part of FOH are income generating centers, except
Transport, Security and Concierge. On the other hand, the Back of the house
encompasses all the behind-the-scenes areas that customers are restricted and will not
see. Most of the department that falls under the Back of the House are not income
generating except the Laundry which is somehow income generating. Back of the
operations can be considered as the backbone of the operations. The front of the house
cannot offer anything to the guests in absence of the back of the house. That is why
back of the house same as the front house plays an essential part in the hotel
operations. For example, F&B cannot offer food without presence of the kitchen brigade
that provide and cooks the food for the guests. Same with the Front Desk, they cannot
accept guests if the room and linens are kept unclean by the laundry and housekeeping
department. Souvenir shop attendants cannot sell anything without the help of
purchasing department who purchase not only souvenirs but majority of the items that is
needed in the hotel operations. FOH and BOH goes hand in hand, both departments
are vital in hotel operations.

3. Cite some strategies for staff roster and the human resource recruitment,
development and monitoring.

Human Resources recruitment should start with job analysis. It allows the
organization to identify the exact job specifications and required competencies for each
job classification and type. Sources of recruitment can be internally or externally. Hiring
internally is one of the best practices of the human resources department because
hiring internal candidates has a number of advantages. Fist advantage is internal
candidates are known quantities. Meaning, the human resources department already
have the personal and performance records of the candidates. It would be easy for
them to choose which candidate/s is the best suited for the position available. Another
advantage of hiring internal candidates is that these internal candidates are already
experienced workers, they already have the knowledge about the ins and outs of
company and knowing the culture of the company is already been done. Hiring internal
candidates also mean there’s no need for advertising, because promotion is just done
when hiring external candidates.

Majority of the companies has their own way of developing and monitoring their
employees. Some of the companies, let their newly hired employee undergo series of
trainings in order for them to be more job ready before immersing them thoroughly to
their designated duties. It is very common to a company to put their newly hired
employees into probation. These newly hired employees will undergo series of
validation before they will be regularized. They will undergo performance appraisal
within the 3rd and 6th month of their probation. HR will decide weather they will be
regularized or not. Performance appraisal can still be used even after the probation of
the employee. It is used to monitor the performance of the employee. Some of the
company use it as their basis for the incentives given to the employees if they got the
mark meets the expectation or higher than that. Performance appraisal is also used to
know if a certain employee needs to be retrained if he or she incurred a low
performance appraisal result.
 4. Discuss the impact of artificial intelligence to hospitality industry. What is
IR 4.0?

The 4th industrial revolution is also known as the era of technology where the use
of automation and artificial intelligence is very common nowadays. It has a positive and
negative impact to the hospitality industry. With the help of technology, people can now
book hotels, airline and food delivery using their handheld devices know as the
smartphone. Restaurant and hotel reviews are readily available at the internet that helps
the customers gauge which establishment to choose. Communication as well is more
convenient than before. As of now, we can see and experience the benefits of the
technology, however, in future it is forecasted that some of the jobs might disappear due
to automation or artificial intelligence.

5. What is CRM, how will it affect the sustainability of hotel industry

operation?

Customer Relationship Management (CRM) is very essential in any hospitality-

related operations like hotel operations. CRM is the relationship between the company
and the customers. If we want a sustainable hotel industry operation, we should focus
on the benefits of giving quality service to the customers. Quality service will definitely
result to customer satisfaction and customer satisfaction may lead to repeat purchase
and referral to friends, also know as the word of mouth.

6. Cite and discuss at least twelve (12) managerial functions. How will it
relate to each of the functions?

There’s a saying that if you fail to plan, you plan to fail. That’s why every
Manager should come up with Operation Plan. It can be in a form of operations
checklist so that nothing will be missed out and just to make sure that everything is in
order. Part of the operation plan entails the Delegation Skill of a manager. Staff are
delegate according to their knowledge and skills. It is the duty of the manager to ensure
the right people are in the right roles. Some managers practice “Aces in their places.”
Means having the right people doing the right jobs. In order for organization to have the
right people, managers should also possess Human Resource Skill. Managers should
know how to screen and interview applicants and use his Decision-Making Skill when
choosing or hiring an applicant. Once applicant is hired, they may put them under
probation before they regularize them. During their probation, they are evaluated based
on their performance. As part of the Performance Evaluation Skill, managers should
not be bias and should not practice favoritism when evaluating employees. Everything
about the evaluation must be true, correct and accurate. The evaluation will help the
employee knows the areas where he or she needs to improve. Whatever the result of
the evaluation, managers should always motivate his or her staff. It is part of the
Motivational Skill of a manager to impart wisdom to his or her staff as their immediate
supervisor. Kind encouragement will boost employee’s morale and it will help them to
perform better during the operation and above all, motivating your employees makes
them feel valued. Motivating your employees is a form of Leadership Skill. By just
simply motivating them, you become a leader and good example to them. Nevertheless,
being a good leader also involves good Communication Skills. A manager should give
instructions clearly and in a respectful way to avoid any conflict. Speaking of conflict,
part of the Problem-Solving Skill of the manager is to solve the conflict under his
management. Great example is the conflict between employees. When dealing with this
kind of conflict, the manager should negotiate with diplomacy. Negotiating with
diplomacy helps everyone to calm when voicing out their concerns. It simply shows that
a manager as a Team Player of the organization only want a harmonious relationship
under his management. As a team player, it is his primary duty that everything must be
under his control. When everything is under control and when harmony is present within
the organization, they can also provide great Customer Relation. Customer Relation
Management should start with the demeanor of the manager. As the role mode of the
team, he should exemplary on his actions and the way he treated his staff. It will
definitely be echoed on how the staff treat their guests. Good customer relations also
mean good management and will definitely leads to customer satisfaction and repeat
customer.

7. Present a comprehensive financial statement (Profit & Loss Statement)

considering the following data:

Electricity P. 19,300
Telephone 5,600
Water 7,900
Advertising Cost 35,000
Material expense 78,000
Sales Income 650,000
Catering Income 220,000
Salaries 150,000
Ingredients 294,000
Income Tax 30%

7.1 How much is the net profit?

7.2 What profit percentage?
7.3 Any observation?
 GOOD LUCK!

ANSWER:

FINANCIAL STATEMENT (Profit and Loss Statement)

COMPUTATION
SALES: :
SALES INCOME 650,000
CATERING INCOME + 220,000
GROSS SALES = 870,000 GROSS SALES 870,000

30% x .30
INCOME TAX = 261,000

TAX: TOTAL SALES 870,000

INCOME TAX
INCOME TAX 30% 261,000 30% - 261,000
NET SALES = 609,000

EXPENSES:
ELECRICITY 19,300
TELEPHONE 5,600
WATER 7,900
ADVERTISING COST 35,000
SALARIES 150,000
INGREDIENTS 294,000 NET SALES 609,000
TOTAL
TOTAL EXPENSES 511,800 EXPENSES - 511,800
NET PROFIT = 97,200

7.1. 97,200 (Net Profit)

7.2. 15.96059 or 16% (Profit Percentage)

7.3. The ideal profit percentage should be a minimum 15 to 20 percent. The Profit
Percentage of the Financial Statement specified above is just 16%. It simply means that
the company is earning profit.