Causes and Effects of Managerial Challenges in Hospitality Sector

HM601 CONSULTANCY PROJECT
FOR HOSPITALITY MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Identify causes and effect of managerial challenges in hospitality sector...................................3
LO 2.................................................................................................................................................6
Critically analyse management theory, analyse and interpret varied complex industry
managerial issues.........................................................................................................................6
LO3..................................................................................................................................................9
Practices that Can improve the Decision Making and Actions of Organization.........................9
LO 4...............................................................................................................................................12
Discrimination on practice wide range of profession competencies in the development of
management decision making....................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Hospitality management is study of hospitality industry and which will relate to mangers
which are working in hotel. In studies, it will cover hotel, restaurants and cafes. Studies of
hospitality management will discuss issues which are faced by restaurants and cafes while
working. Terry cafes is family business which faces various issues and challenges regarding
motivating staff, team working as well. Cafes are also facing problems of increase in competition
because areas near cafes is full of cheap snacks and fast food chains. Although it is global issue
for all global hotels and restaurant but these issues need to be solved. Management team of cafe
is working for solving issues and to satisfy customers. Report is discussing causes and effect of
managerial challenges which are faced by cafes. Managers are facing challenges regarding team
work and motivating employees. Management theory and specific management problems and
issues have been discussed in report. Report will be discussing range of professional
competencies in relation to decision-making and strategic planning. Report will also discuss
strategic professional plan in oral and written formats. It will be discussing strategies which will
help managers to work in effective way and solve problems as well.
LO1
Identify causes and effect of managerial challenges in hospitality sector
Terry cafe is dealing with issues which will be by cafe while working and cafes is
striving hard to survive in market. These problems have severe effect on sales and productivity
of company. So cafes must find causes of problems and find effective measures which can solve
problems easily (Saxena and Lamest, 2018). Every employees in cafes is dealing with their
personal problems which will have impact on performance of employee. Cafe is facing problem
related to increase in competition because of fast food chains in nearby ares and cheap snacks
which are easily available for customers. Management and employees are facing problems which
is discussed below.
Retaining staff
Employees turnover is main problem for any management team but it is rising because of
lack of feedback and recognition. Leaders or managers are not providing feedback or review to
employees which is demotivating them. Employees are struggling to work, and they are not
given proper feed back. Employees will be disheartened because they will be facing problems
every time to work hard, and they will give up. Feedback is showing performance of employees

and mistakes which are done by employees while completing work (Mitreva, Lazarovska and
Filiposki 2018). Employees are disheartened because of lack of growth and progression.
Opportunity and growth is must for every employee which are working in cafe. If these are not
provided they will move towards other companies which will provide offer regarding improving
status and income. Many cafes are suffering because of economic pressure and employees have
been overworked while working. Employees are working for long working hours and even on
weekends and it will have effect on employee performance.
There are effect of retention of employees on the working environment of cafe. Leaders
and managers are only using skills and abilities of employees and also not appreciating them.
Employees are working in cafe for long hours and these will have effect on the performance of
employees. In these employees are frustrated and so it will result in turn over of employees.
There are not much needs of employees, but they have some of them and these need to be
fulfilled by company. Employees are not able to take decision and so it will have effect on
employee performance. Final decision must be taken by managers but suggestion of employees
must be accepted and if suggestion is good employee must be appreciated.
Motivating staff
Motivating staff is playing vital role in running business in market. Employees are
feeling demotivated while working in cafe. It is rising because of poor communication problems.
Communication is done between two members and miscommunication between both parties can
ruin work (Kara Kim and Uysal 2018). It will have effect on employee performance and working
environment of cafe as well. Unpleasant co-workers are not creating the good and friendly
working environment while working in cafe. Friends and colleagues can create good working
environment in company and also employees will enjoy while working. In the cafe some
employees are working efficiently and some are not working effectively. Best working
employees must be appreciated so that they feel motivated, and they will perform better.
Employers are ignoring the achievements of employee, and they are not provided appreciation
nor there is some impact on employers.
Demotivating staff will have effect on performance of cafe and cafe will not be
able to fight competition in market. Staff demotivate can result in creating work place conflicts
among employees. Demotivating staff is resulting in sole focus of employee on incentives.
Employees are only focusing on incentives, and they do not have any type of aim which can