Managerial Challenges in Hospitality Sector

Consultancy Project for
Hospitality Management

Table of Contents
INTRODUCTION...............................................................................................................1
LO 1...................................................................................................................................1
Managerial Challenges within Hospitality Sector...........................................................1
LO 2...................................................................................................................................5
Management Theory and Industry specific Managerial Problems and issues..............5
LO 3...................................................................................................................................8
Decisions and proposed actions to deal with Managerial Problems.............................8
LO4..................................................................................................................................12
Professional Competencies.........................................................................................12
LO5..................................................................................................................................15
Strategic Plan...............................................................................................................15
CONCLUSION...................................................................................................................1
REFERENCES..................................................................................................................2

INTRODUCTION
Hospitality management is basically a major function of the hospitality industry or
sector. To perfectly manage a hotel, the manger need all knowledge about hospitality
management. Many universities and colleges are providing specific courses also for
hospitality management and hotel management. People which have interest to make
career in the hospitality industry, then need to first complete their hospitality
management degree and diploma. From all top hotels to the small restaurant, these all
businesses are comes under the hospitality industry. Proper knowledge of the
hospitality management is very necessary for the hotels, travel and tourism, cafeterias,
restaurants businesses to perfectly run their business activities in the market.
Many of the successful hotels in the world are always giving lots of training
sessions to their employees to aware them about latest and modern techniques in the
hospitality industry. It includes administrative tasks, like; make hotel warm, familiar,
welcoming, safe, and caring for the customers. The hospitality management is too much
important in provide best of the best services to the customers. With the help this, many
hotel businesses currently built their big hotel empire in all over the world. These are
discusses the hospitality management of the Family Cafe, London. Currently this cafe
facing some managerial challenges in their daily operations.
LO 1
Managerial Challenges within Hospitality Sector
Challenges that are being faced by Family Cafe, London are difficulty in recruitment and
retention of skilled employees and absenteeism of employees (D’Annunzio-Green,
2018). This is the main problem of Family Cafe, London. This challenge and problem
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have been caused by various issues and direct effect of these managerial challenges is
visible from increasing operating cost and shortage of labour.
These problems were carefully analysed and causes behind these challenges were
identified to be,
Compensation and Benefits- Most important reason that encourage individual to work
and work for someone else is compensation and benefits that they get. This is why
these are required to be adequate. Family Cafe, London is facing problem of high
employee turnover as it is not able to provide adequate compensation and benefits.
This also reduce motivation of the employees that they are not being paid which is
worth their efforts.
Training- Training is another important cause for employee turnover. Employees when
lack training it becomes difficult for them to perform their work effectively. This also
create task and job ambiguity. This affect job satisfaction of employees and reduce their
motivation as they do not understand clearly what they are required to do. Training
equip employees with right kind of knowledge and skills for their work result in
increasing their efficiency. Inadequate training lead to increase in cost and decrease
efficiency of Family Cafe, London.
Image of the Industry- this is an important factor that attract qualified and skilled
employees to work in a organisation. Effective employees do not prefer to work in a
organisation whose image is not god or bad. There are various actors that affect image
of an organisation these factors are, culture of an organisation, compensation and
benefits of organisation, development of employees in an organisation (Lederer, Van
Niekerk and Okumus, 2017). All these factors affect image of an organisation and when
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these factors are negative and not as good as they should be, restrain competent
employees and candidates to apply and work in a organisation. Effect of these factors is
that company faces difficulty in hiring competent employees who can add value to the
company. This also encourage and instigate current employees to leave the Family
Cafe, London.
Long Working Hours- This is another cause that creates challenge for manager at
Family Cafe, London. Long working hours affect work life balance of the employees and
create dissatisfaction from and also demotivate employees. This is a reason that
employees leave the organisation after a short time of joining, this increase employee
turnover and increase cost of the company as well. This problem when analysed
thoroughly suggest that cause behind this long working hours is lack of employees or
shortage of workers. It seems that both the problems causes behind each other.
Hard Work and Average Pay- This is a major reason and also an valid reason that
created challenges for managers. Employees work hard and then paid average is not
an ideal situation. Family Cafe, London definitely needs to pay their workers according
to their hard work so it does not build frustration and dissatisfaction from job for the
employees. In such cases this is very obvious that employees leave the organisation
(Martin-Rios and Ciobanu, 2019). This not just create dissatisfaction but also develop
feelings in employees that they are not being valued in the company and are treated as
resources rather than assets.
Organisational Culture- The tendency of organisation that includes inadequate
training, less pay and high employee turnover affect culture of an organisation. Though
culture is made up of values and beliefs and policies that management but employees
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are major factor that affect culture of an organisation. The manner in which employees
leave organisation creates instability in culture of organisation. This affect mindset of
those who are working their and image of the organisation. Organisation culture is an
important factor that affect performance of employees and their perception about the
organisation. Healthy and effective culture of the organisation attracts employees who
are competent and contribute in retention of current employees of the organisation.
These are the various causes along with their effect for managerial challenges.
Effects of the challenges can be separately identifies which are as follows-
High Employee Turnover- various challenges that have been caused by less pay, hard
work, long working hours and inadequate training. Effect of all these causes is that
employee turn over of the company have increased to a very high rate. All this causes
and their effect is managerial challenges at Family Cafe, London.
Reduced Motivation- A situation that employees are required to work hard for long
hours, and then they are not paid which is worth their efforts and hard work. This
situation clearly indicates that reduction in motivation of employees is not unnatural or
something unexpected.
Increased Competition- This is an outside force and what company can do about is to
prepare itself to compete with competitors. In case of Family Cafe, London. To compete
in market most important resource and factor is employees and human capital of the
company (Tan and et.al., 2016). Family Cafe, London which is facing issues like
recruitment of competent employees and their retention. This may decrease its capacity
to stand aside and stay ahead in competition. This challenge has been caused because
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