Managerial Challenges in Hospitality Sector

This report discusses the range of managerial challenges faced by the hospitality sector, including marketing issues, technology problems, recruitment challenges, and issues in keeping staff motivated. It also explores the application of Frederick Taylor's scientific management theory in solving these challenges. The report provides insights into the causes and effects of these challenges and offers suggestions for overcoming them.

HM601 Consultancy Project for
Hospitality Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Range of managerial challenges within hospitality sector, its causes and effects.......................3
Frederick Taylor's scientific management theory .......................................................................6
Taking responsibility of the outcome of the decision and its impact over real life situation......7
Strategic planning......................................................................................................................10
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Hospitality management refers to application of structured leadership and administration
concepts in areas of dining, accommodation and general consumer services. It also refers to
different professional and occupation practices associated with management of firms within
hospitality industry. In this sector, management is accountable for managing the overall
functions and activities of range of businesses. Hospitality sector is wide category of area within
service industry that includes Food & drink service, lodging, theme parks, event planning,
travelling, transportation and additional fields.
The present report is based on Cocoa Latte Coffee shop, established in Toronto and
specialist in serving tasty coffees along with breakfast and other services. Its warm and friendly
environment is suitable for every one at all occasions, they provide their services in events and
parties at home town.
This study explains different types of managerial challenges, its causes and effects within
hospitality industry, analyse management theory in context of variety of difficult industry
specific managerial issues or problems. Furthermore, it justifies outcomes of decision taken by
firm regarding current business problems, it also clarifies range of professional competencies in
development of management decision taking as well as strategic planning. Along with this, this
report define possible suggestions for business to overcome challenges.
TASK
Range of managerial challenges within hospitality sector, its causes and effects
Managerial challenges is one day management development experience in which
manager or leader of companies within hospitality industry practice developing their workers.
Cocoa latte cafe is one of the best restaurant in Toronto, England, they serve breakfast, lunch,
desserts and coffees to its consumer. But due to some managerial issues its business suffer a lot
that impact negatively on customer base and profit margin. There are some managerial
challenges-
Marketing issues is one of the challenge faced by firm while operating their business in
marketplace, it affects business practices and purchasing behaviour of consumers. Increased
guest sophistication, is the main cause of current business issue that effect business work. It is
regarded as one of marketing or sales issue which made huge differences in hospitality sector
(Increased Guest Sophistication, 2019). People have turned out to be sophisticated or

increasingly refined, thus so have sort of services and terms that they want. Some people want
additional services and products while visiting in cafe, for example, free Wi-Fi, park for children
where they can play and enjoy and other things. Consumers are charmed and attract by business
administration and services provided to them, they will be back and ready to spend more money
on attracted services experienced. Increasing aspiration of clients for good quality products or
services at low price from hospitality sector is considered as wide supporters of challenges being
faced by industry. The need not only limited in just increasing quantity of consumers company
draw in, but instead developing or improving visitors experience to urge them to come back,
regardless on whether it be on property, web or cross different touchpoint. Increased people
sophistication, impact marketing activities of business, it creates issue for marketing team to
promote their services according to consumer requirement and in way that help to attract visitors
rather than before.
Technology issue- Technology plays vital role in growth and success of every business
within hospitality sector, as it impact positively. Cocoa latte coffee shop is facing technology
problem due to adoption of current technological development in the world. Technology
development put high pressure on firm to adopt it, as it help to operate range of services and
facilities provided by shop to its consumers (Watson, 2018). Technology touches every facet of
people live as it always had, but with emergence of mobile devices and online ordering make of
impact than & one of places where seeing more and more technology is in restaurant and food
sector. Between arrival of online reservations, mobile application, online payment & food
ordering methods as well as social media platforms, technology infiltrated hospitality industry
like never before. Cocoa latter cafe is not able to adopt these types of technologies and keep up
to date with them because it is quite expensive. It creates difficulty for business to sustain within
market place and gain consumers attention. In recent time, people carry less amount in their
pocket, they prefer to pay through online methods and application, that make money transaction
easy and faster rather than before. It brings challenge for firm to keep up to date with all the
latest technologies available within market, in order to gain competitive advantages. In simple
words, it can be said that this coffee shop is facing technology problems because they cannot be
able to adopt the latest one, which is too expensive. Along with this, technological developments
also create challenges for business as to retain people with them for longer. It is very challenging
for Cocoa latte to keep up with current technological enhancements to stay competitive.

Issues in recruitment of skilled staff- Effective recruitment plan allow business to hire
skilled and able staff members within Cocoa latter coffee shop, who are able to contribute in
achievement of common goal (Bharwani and Butt, 2018). But due to lack of ineffective
recruitment plan, firm face issues related to it, that impact productivity and profitability of
business, without skilled labour they cannot be able to gain competitive benefits and sustain for
longer period in hospitality sector against large coffee shops existing in market where they
operate its own cafe. Wrong hire outcomes from ineffective selection and recruitment procedure
can hurt group work as well as productivity of good workers. Ineffective recruitment plan do not
permit firm to obtain talented people, it impacts negatively on existing workforce when
management hire wrong applicants. It considered as one of the managerial challenge faced by
Cocoa latter coffee shop within hospitality sector, that affect negatively on entire business
practices as they lose the position in market. Recruitment plan is strategy or procedure designed
to streamline hiring function and action as guideline for qualifying, sourcing and interviewing
job seekers. Without effective recruitment plan, the administration of coffee shop cannot find out
skilled candidates, due to that reason they face issue or challenge which is totally related to
recruitment of staff. Cocoa latte coffer shop, management cannot be able to identify which
recruitment methods is suitable for business, they do not take proper action regarding this issue,
all these happen because of lack of planning and managing recruitment procedure, that create
issue which is not appropriate for its business growth.
Challenge in keeping staff motivated- Motivation plays essential role in workers
satisfaction and eventually staff retention. Nothing works better than key motivation, it acts as a
accelerator to a person success. Cocoa latter coffee shop is also faced difficulty in keeping their
workers motivated, due to ineffective leadership and management that is considered as root
cause of current business issue. They do not used range of motivational sources and methods in
order to retain people with business for long term period. Staff motivation is very important in
context of business growth, mainly because it permits administration to meet firm goals, without
motivated work place, coffee shop could be placed in very unsafe position. Furthermore, poor
motivation in workplace is well attested: lower levels of engagement, diminished productivity,
higher employee turnover and poor communication are few of problems that may grow and lead
to work area become a toxic environment. Without keeping staff motivated, coffee shop will not
be able to increase profit margin and serve range of their consumers effectively. Along with this,

low and poor motivation means absence rates go up, which further decrease productivity, it also
creates further low morale, low esteem and feeding low energy as well. Ineffective leadership as
well as management, create negative environment at workplace, it decreases the power and
ability of existing workforce negatively, as they would not be able to contribution in process of
achieving business goals & objectives.
All above issues and challenges is related to management, faced by firm while operating
in hospitality sector.
Frederick Taylor's scientific management theory
The administration of Cocoa latte can apply, Frederick Taylor' s scientific management as
management theory in context of managerial problems, faced by them which affect its business
growth and productivity. This theory is also known as classical management theory, emphasizes
efficiency just like other management concepts (Kitana, 2016). Instead of scolding workers for
every tiny mistakes, employers in business will reward people for increased productivity. It
focused on notion that making staff work as hard as they would was not as effective as
optimizing way work as done.
Lack of motivation, recruitment, technology and marketing issues are faced by hospitality
sector that they want to reduce. With the help of adopting 4 principles of Frederick Taylor 's
management theory, the management of this industry can solve above problems effectively.
According to the first principle of this theory, administration hospitality sector will not get stuck
in fixed routine with some old methods of doing work, they will have to constantly
experimenting the new ones to develop new techniques which makes work easier, simpler and
faster. In order to motivate staff, administration can work with them, manager of business work
in collaboration, they guide each and every worker personally that help to enhance motivational
level of staff members (Schachter, 2018). Rather than assigning whole work to one person and
permit them to right time to make it done, manager will break down big tasks into smaller parts.
In context of technology issue, the manager consider the cause of this problem and take
appropriate action drive towards solving it.
Accordant to second principle, that is harmony, hospitality sector management create
positive atmosphere at workplace, by motivating staff throughout considering their performance
and rewarding all of them. It relies on believe that occurrence of mental revolution will end all
issues between two parties that will be beneficial to workers and administration. Training is the

best source of motivation, manager measure efficient way to do given work and then delegate
subtasks only to workers with right abilities and skills. Those staff members are then trained by
professionals. Training allow employees feel motivated and able to work effectively, it enhances
performance and improve current skills. Harmony means living together peacefully instead of
arguing or fighting with each other. Manager understands the specific requirement at workplace,
such as training, that help to motivate its staff and contribute to retain all of them in effective
manner.
This principles indicate towards cooperation not individualism, according to this
principle, the management and workers of hospitality sector, will jointly determine standards, it
helps to increase involvement and thus, in return increases responsibility. Manager and staff will
work together, workers can take participants in decision-making procedure as it help to enhance
motivational level and make management able to retain skilled work force effectively, in this
way firm can expect miraculous outcomes (Savino, 2016). Manager motivate staff to work in
group, it helps to complete task on time within effective results.
The fourth and last principle of this theory is drive towards development of workers to
their greatest prosperity and efficiency. In order to solve issues regarding recruitment of talented
and skilled workers, the management of industry will take care of right from worker selection.
They have to consider existing staff member as internal recruitment method. Manager will focus
on proper arrangement of every employee training, they can hire professional and specialist
person to do this job effectively. It will be taken care that each worker must be allotted work
according to their interest and work, such as caring attitude would develop sense of enthusiasm
among team and feeling of belongingness as well.
Manager assures each people below them is doing their job effectively, and when more
productive practices will discovered, employees are retrained to implement it in their own work.
Staff is motivated to deliver good quality of work because they financially rewarded and
appraised based on performance.
Taking responsibility of the outcome of the decision and its impact over real life situation
It is very important for company to use and implement all the latest changes within the
company. Thus, for Cocoa Latte coffee shop it is very necessary for the company to evaluate all
the latest changes and then try to analyse all its pros and cons and then implement the changes
within the company (Law, Chan and Wang, 2018). With the analysis there were mainly four

challenges which the café needs to analyse and prepare strategy for its improvement. These
challenges are adaption to latest technology, lack of motivation among the employees, some
challenges relating to ordering food and the challenge in recruiting capable staff. Hence, it is
very necessary for the café to manage all its challenge so that its performance can be managed
and improved. Thus, for managing all these challenges many decisions have been taken which
are being discussed in the following points connected below-
Decision for adaption to latest technology- in the current competitive and growing
business environment there are many advancements in the technological sector. It is very
important for the café to adapt to all these latest technologies because if they will not adapt to
these advancements then they will become obsolete and the café will not earn much. Thus, for
this the café is deciding to adapt to the system of digital POS that is Point of Sale. This is a
computerized system which will help the café in tracking all the business transaction and the
cash flow within the café. Thus, this decision of implementing the technology is very good. This
is majorly because of the reason that this will assist the manager of the café in managing and
administering all the task of the café in effective manner.
Hence, for implementing this the decision which need to be focused is that for the new technique
first the training need to be provided. This is majorly because of the reason that this is the new
technology and for this the employees need to learn it first and then only they will be able to
operate this technology. Thus, for this an expert or a professional who is having good knowledge
of use POS system in the café will be hired and training sessions will be arranged where the
expert will share their knowledge (Kandampully, Bilgihan and Zhang, 2016). The impact of this
decision will be positive over the working of café as if the employee will be able to learn to
operate the technology then the efficiency of the employee will increase and this will add to the
profitability of the café.
Decision regarding improving motivation of employees- this was also an important
challenge which hampered the working efficiency of the overall café. This is majorly because of
the reason that if the employees of the café will not be happy and satisfied then they will not be
able to work in proper manner (Sabri, Mutalib and Hasan, 2019). This was evident with help of
Herzberg two factor theory that the hygiene factors that is the factors which dissatisfies the
employees were more in the café. Thus, for meeting this challenge it is necessary that the
employees of Cocoa Latte café are provided with both financial and non- financial incentives.

All these incentives and benefits will encourage the employees to work in more effective
and efficient manner.
The financial benefits involve providing bonus, perks and other advantages involving money.
The non- financial incentives include recognition, promotion and other related advantages which
does not involve money into it. Thus, the impact of this decision in the real- life situation will be
good. This is majorly pertaining to the fact that if the employees will be motivated then they will
interact with the customers in polite and cordial manner. This will attract more of the consumers
and the sales of the café will increase and this will increase the overall performance and
profitability of the café.
Decision for managing challenges of food ordering- this was another challenge for
which the decision need to be taken for its mitigation. Thus, for this also a technology relating to
the online food ordering system is decided to be implemented within the café. This is an online
system through which the consumer can order the food from their home and the food will be
delivered to their place. Also, this system will can be used by the consumers in a way that they
can order their food before coming to the café and they can mention the time in which they will
reach the café. Thus, this system will save the waiting time of the consumers as when they will
arrive at the café their order will be ready.
Thus, for implementing this system it is very crucial for the café to make the consumer
understand all the facilities which are being provided in this online system. Thus, for
implementing this solution it is decided by the café that with the use of this system a user manual
for the assistance of the consumers need to be attached. This is necessary so that the consumer
know all the necessary requirements of using the online system of ordering (Kundu and
Chatterjee, 2018). The impact of this decision will be good over the sales of the company as the
consumers will like the fact that as they arrive at the café their order is ready and they do not
have to wait for long.
Decision relating to recruiting of capable staff- this is also an important challenge
because of the fact that if the employees will not be capable then they will not be able to handle
the consumers in effective manner. Thus, for meeting this requirement it is necessary for the café
to recruit the staff by properly assessing all their qualities and by testing them in proper manner.
For this the café decided to take the personal interview so that their communication skills can be
tested (Gibson, 2017). This is necessary because the employees need to communicate with the

consumers so it is necessary for them to have good and effective communication skills. The
impact of this decision in the real- life will be positive on the company because if the employees
will be capable enough to handle any situation and if they converse with the consumers in good
manner then the goodwill of the café will increase.
Those are the decisions which are taken by management of company inn respective
manner. Those are help to manage higher growth of company in proper and respective manner.
With the help of this company is easily able to over come all those challenges which are faced by
company as well as analysis the impact of those on real life working. As per the above analysis,
all the impact of decisions on employees are positive because company is organized training and
development program with these employees are learned all the changes easily and handle those
challenges which are faced by company and employees of Cocoa Latte coffee shop in effective
manner. With the help of this company got positive growth at market place.
Strategic planning.
As per the above analysis it is very important to take better decisions which are faced by
company at their workplace. The Cocoa Latte coffee shop is faces various problems and
challenges which can affect business in negative manner. For that management take decisions for
overcome those challenges which are faced by company at workplace. The main challenge which
is faced by company is adoption of technology for that management take decision to organize
training and development program for staff (Chernev, 2018). On the other side, in order to
motivate their employees management take support from Herzberg to two factors. As per that
management consider both the factors and encourage employees for work harder, but they will
cause them to become unmotivated they are not present.
On the other side, another challenge is food ordering challenge. This challenge is very
critical challenge is affect to company Cocoa Latte coffee shop. In respect of that company is
wanted to launch new food ordering system through that customers can order their food item.
But, the main problem is how to use by customers because that is online process. In respect of
that company is provide complete details on system site about using and order their food from
coffee shop. This is the best decision which is taken by management. Last, challenge is to
recruitment of capable employees. In that management take decision to take multiple test of
candidates who are come at workplace and check their ability to different customers for working
in Cocoa Latte coffee shop. Marketing is the another issues which is also faced by management

of Cocoa Latte coffee shop like increased guest sophisticated working. This marketing of product
and services at market place is very important and effective part which is helpful for managing
work more effectively (Chernev, 2018). For that management take better decision by taking
support of professional competencies which is client orientation and sharing knowledge and
information with client and customers about product and services.
Those are the decisions which are take by management to overcome those challenges in
effective manner. This creates more effectiveness for company as well as increase sales and
productivity by motivate employees. In order to develop management decision here if required
some professional competencies are as follows:
 Core competencies are help and provide foundation of describing behavioural
responsibilities by the staff members. In that management can develop the
communication ability of employees, team work, planning and organizing and achieving
higher results with making proper coordination with manager and senior managers. For
the positive working it is very important to build positive team working within the
company to manage and solve all those issues and challenges in effective manner. With
the help of those, company and team have positive options for solutions to creates
positive aspects of working conditions.
 Functional competencies are often and referred with job specific competencies (Coombs
and Holladay, 2018). The professional competencies for better development of decision-
making here is required leading and supervising or better analytical thinking in effective
manner, technical creditability and ability to handle change management process and
work. Those are another important strategy which are help to maintain proper and more
effectiveness for working. In this, employees are increase their technical ability to handle
all those changes which are come through technical management. This help to manage all
hirings and training for employees in effective manner.
Those are help to management for taking better decision-making process in effective
manner. Those competencies being used and support for recruitment like it is the integral part of
selection process, facilitating of assessment candidates to determine their suitability with job.
With the help of this, management is able to hire capable and eligible staff for company as well
as for vacant post. In that core and functional competencies are higher important and effective
for proper management goals. On the other side, for performance management and staff

development is establishment of performance standard against which the staff will be assessed
and identification of individual and staff development is on higher priorities. With the help of
those competencies company is able to hire and evaluate performance management of staff.
Through that they find out the mistake of employees under work and improve ability and
efficiency of employees towards positive working ability.
For that here is build and produce strategic management plan with some
recommendations for the clients and company management.
Strategic plan:
Strategic plan is an organization process which is help to define all the important and
effective strategy, direction and taking decision on allocating proper resources by pursuing this
strategy. This is also extent for controlling mechanisms for guiding the implementation of the
strategy. This creates more effectiveness for business by managing proper and effective working.
This includes proper and step by step process for implement and producing proper planning for
achieve goals and objectives of company (Dyer, 2019). The step by step process of strategic
planning are as follows:
Clarifying vision:
The main purpose of goals setting is to clarify the vision of business. This creates more
effectiveness for work. The main aim of this is to increase motivation of staff so that they are
perform well with proper information. As well as gain higher competitive advantage for business
is Cocoa Latte coffee shop.
 To enhance motivation of employees toward work.
 To hire capable and eligible candidates for working.
 To organize training and development program for train them about adoption of new
technology in the business.
 To increase sales and profit margin of company.
 To increase interest of customers by making large loyal customer base.
Gather and analysis information:
This is very important and effective for proper management of work to analyse all the
relevant information because collected information is shape to the next two stages. For that here
is make proper focus on understanding the needs of business as a sustainable entity (Formentini

and Taticchi, 2016). For that here is use SWOT analysis of company to know about the strength,
weakness, opportunities and threats of company Cocoa Latte coffee shop are as follows:
Strength Weakness
 Quality of product and services.
 Adoption of new technology.
 Provide ethical values and ethical
mission statement.
 Needs wide range of employee and
customer base./
 Increase number competitors.
 Limited product in competitive world.
Opportunities Threats
 Advancement of new technology for
cafe shop.
 Expanding their business at large level.
 Motivated employees.
 Opportunity for strategic growth.
 Increasing promotion facilities.
 Lack of technology development.
 Higher competitors base.
 Lack of capable staff (Hartman and
et.al., 2017).
 Increase price of coffee product and
services.
Those are the strength, weakness, opportunities and threats of Cocoa Latte coffee. With
the help of this company is able to sets goals and objectives for increasing growth of company in
positive manner. Through that company have various opportunities to build their brand image
and increase productivity and performance level of employees. This creates more effectiveness
for business in effective manner.
Formulate strategy:
After analysing collected information like strength and weakness of company form
internal aspects and opportunities and threat form external aspects have reason to make proper
effectiveness. Here is formulate strategies for gaining higher success are as follows:
 Organize training and development program for giving details about POS system of
checking and entry of customer bills.
 To provide financial and non financial incentives to motivate them as well as conduct
face to face personal meetings with each and every employee. This help to know about
dissatisfaction of employees towards company.

 To organize large interview base with campus interview and take different test for hire
capable employees.
 Provide real life example and say play that at the time of interview.
Implementation of strategy:
Here overall strategy is must be implemented at workplace by using proper resources of
company. The company is organized higher level of training program with professional senior
(Pisano, Rieple and Pironti, 2017). They are provided training to their employees about work and
technology. Increasing team work ability of employees, give chance to improve their
communications with customers and other senior managers.
Strategy evaluation and control:
In order to evaluate overall strategy by including performance measurement company
take feedbacks form customers about their services. As per that, management get information
about their mistake which are happing at workplace and with our staff. By collected information,
management make some changes as per their collected feedback from customers. Through that
customers are more satisfy and attract towards company (Turner and Endres, 2017). On the other
side, management of Cocoa Latte coffee shop use KPIs tool for measures performance of
employees within the workplace. This will help to correct mistakes of employees at workplace.
This strategic planning is help to fulfil the needs of company but here is included some
recommendations for clients have to take important information about product and services. As
well as use various technology to make orders from company. They should make clarity of
orders and not make confused to management which is not good for company and its growth
factors. Here is also implemented and mention some recommendations for company which has
helped to overcome those challenges in effective manner by using proper effectiveness for work.
Company should use technologies to promote products and services at market place like social
media apps. Those are help to complete work and reduce negative impact from company which
is faced by companies with adoption of new technology. On the other side, should organize
training and development program to provide training to employees as well as giving positive
motivation to them. Those are recommendations are help to company for increasing their
productivity at workplace in effective manner.

CONCLUSION
From the above study, it had been concluded that the consultancy for businesses has very
important and effective to make growth and improve productivity of company. The report had
been identified various challenges which has faced by company such as marketing issues,
adoption of technology issues, lack of motivation and challenge is food ordering concept. This
has some challenges in that management has support to those decision-making in order to
overcome those challenges in effective manner. With the help of those, it had been created and
use Herzberg theory of two factor motivation. Through that management has able to encourage
employees for working with higher positivity. This creates more effectiveness for company to
manage their working ability by improving their performance. This has also includes interpret a
variety of complex industry specific managerial problems and issues. Here has also take various
responsibilities for the overcome of their decision and proposed actions as well as evaluate those
actions impact on the companies real life working. Here has made various decisions for company
to overcome challenges like organized training. At the end, produce strategic planning and some
recommendations for company in order to increase productivity and sales. The strategic
management plan has help to build growth at market place in effective manner.

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