Report on Operational Issues, Theories, and Solutions in Hospitality

This report delves into the realm of operational management within the hospitality sector. It begins by identifying key operational issues such as employee turnover, operational costs, and communication breakdowns, exploring their causes and impacts. The report then examines various operation management theories, including Six Sigma, lean manufacturing, business process redesign, and reconfigurable manufacturing systems, highlighting their applications and benefits. Furthermore, it outlines ten operational management principles essential for organizational success, emphasizing the importance of reality, organization, humility, and customer collaboration. The report also explores the application of theoretical models like classical and behavioral management theories. Finally, it provides insights into how these theories can be utilized to resolve the identified operational challenges, offering practical solutions for improved efficiency and performance in the hospitality industry.

HOSPITALITY
OPERATION
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Operational issues........................................................................................................................1
Operation management theories..................................................................................................2
Operational management principles............................................................................................3
Applications of theoretical models of Operational management.................................................4
Operational management theory used to resolve key operational issues.....................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Operation management can be defined as the administration of business practises in order
to create high efficiency level within the organization. It is a part of management which controls
and designs the process of designing and producing services and goods of business Randhawa
and et.al., 2016). It involves certain roles and responsibilities which helps in ensuring that the
business is running smoothly, effectively in such a way that least amount of resources are used to
meet customers requirements. Operation management in hospitality sector is extremely
important as it helps the organization to manage all of their operations, provide their customers
with best quality of service and products. It also helps the organization to update themselves as
per the changing trends in this industry and way they should adopt themselves with this changing
trend. This assignment will lay emphasis on key operational issues and why they are created,
theoretical principles of operation management, operation management theory and the theory
which will resolve those operational issues.
MAIN BODY
Operational issues
There are various kinds of operational issues in hospitality sector that is faced by the
organizations. These issues are created within an organization due to various causes. Operational
issues and their causes are explained below:
Employee Turnover: Employee turnover is one of the most common issue that is faced by
organizations in hospitality sector. It has been observed that this issue is continuously increasing
within organizations (Zhang and et.al., 2016). This issue is mainly caused due to less salary,
lower level organizational culture, more working hours etc.
Operating cost: Another issue that is faced by organizations within this sector is operational cost.
It is becoming a problem especially for hotels as they need to continuously update themselves
with the changing trend, current trending technology etc. This is increasing the operating coast of
organizations. The main cause of this is also the same i.e. in order to attract customers
organizations need to update themselves with current trending technology and culture.
Internal and external Communication: It is another operational issue that is faced by the
organizations as if the communication method and technology is not up to the mark then internal
communication between internal departments will get disturbed and information flow among
them will eventually also get disturbed.
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Operation management theories
There are four main types of operation management theories which are: lean
manufacturing, six sigma, business process redesign, reconfigurable manufacturing system. Each
theory focuses on different aspects and is used in different way (Deihimi, Zahed and Iravani,
2016).
Six Sigma: This theory mainly focuses on quality of a product or service. In this theory control
limits are placed at six different deviation. In other words it uses a data driven review defects,
limits or mistakes within the process. This quality control method is used to develop a
management method through organizations problems can be minimized and work efficiency can
be increased. It has become one of the most commonly used theory which is used especially in
hospitality sector as quality is one of the main factor that is focused by the clients and customers
in this sector. This also helps in improving overall business functionalities so that financial
performance of the organization is improved. This theory promotes an idea of optimizing and
measuring business processes in order to bring improvement within the organization and reduce
all kinds if issues that are faced by them.
Business process redesign: It is an operation management theory that helps organizations to
restructure their organization by designing a process from level zero that is more accurate. This
theory is also known as business process re-engineering (Yi, Shen and Lei, 2019). It helps in
redesigning organizations business processes by designing objective that can be achieved as per
the performance measures such as service quality, return on investment and cost reduction. It
also helps in improving customer service, complete critical process which includes all the
processes from production to marketing to sales etc. If this theory is applied accurately then it
can help in reducing employee turnover as well. For this mainly the organization need to
restructure their organizational process as per all the changes that are to be brought within the
organization in order to increase their customer base, achieve huge profits and reduce or
eliminate all kinds of operational issues.
Reconfigurable manufacturing system: It is kind of theory that helps the organization's
production system to adopt and accelerate changes within the organization. It is mostly used in
production department of an organization. This also helps the business to rapidly adopt
themselves according to the changes and rapidly increase their capacity of production. This also
helps the organization to bring changes within their system so that they can work efficiently and
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fulfil their functions as per their market (Hitt, Xu and Carnes, 2016). This also helps the
organization to adjust as per the as per the sudden change so that it does not affect their working.
Lean manufacturing: It can be defined as a systematic method which helps the organization to
eliminate all the waste that is created within the manufacturing process. This theory accounts
especially for waste that is created by uneven workloads or overburdening workload. This theory
mainly focuses on proper use of resources for any reason rather than value creation for the
organization's customers. If this theory is applied in a better manner then wasteful resources can
be reduced as expected by the organization as much as possible.
Operational management principles
There are 10 kinds principles of operation management within an organizations which
are:
Reality: Operation management need to focus on the overall problem of the organization not just
the technique. This is done because there is no such tool that provides a universal solution to any
problem.
Organization: Everything within an organization should be interconnected to each other with
consistency and predictability (Mahadevan, 2015). If this is not present then organization will
not be able to achieve the overall profit outcome.
Humility: It is important for an organization and its managers to know all of their limitations so
that in case of any problem both time and money can be saved as trial and error method are quite
costly most of the time.
Success: In order to achieve success and manage all the operations properly it is quite important
for an organization to understand their customers preference and interest and all the changes
within the organizations should be done accordingly in order to achieve success. This will help
them to achieve customer satisfaction which will eventually boost their organizations business
and achieve success.
Accountability: Accountability is one of the main factor that an organization should keep in
mind. Managers of an organization should set some rules and procedures in order to achieve any
objective and they should also continuously keep a check on those objectives that whether they
are moving on a right track and achieving them (Bratton and Gold, 2017).
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Causality: It is important for an organization to understand the basic cause behind the problems
or issues that have been raised within an organization so that those issues can be eliminated or
can be minimized.
Change: Change is one of the most important part of an organization as it is the only thing that is
constant within a business. It is important for an organization to adopt new theories, solutions so
that all the required changes within the organization can be brought. This will help the
organization to bring stability within their business for long term.
Collaborating with customers: It is important for an organization to collaborate with their
customers, this will provide them an insight and help them to organize their products or services
accordingly. This can be achieved by understanding customers requirements, needs and make
changes accordingly.
Knowledge about the competition: In order to gain competitive advantage it is important for an
organization to know and understand their competitors in a better way so that as per the
competition within the market, their customers need they can bring changes or adopt changes
accordingly (Trigeorgis and Reuer, 2017).
Controlling the quality: In hospitality sector it is important to control the quality of their services
and products. Without controlling the quality of the product or service customers satisfaction
cannot be achieved. So it is important for an organization to understand requirements which will
help them to increase and maintain the quality of the product.
Applications of theoretical models of Operational management
Operational management refers to the controlling the production processes and business
operations in best possible manner. It refers to efficient utilization of resources in order to
improve efficiency in the business (Management Theories & Concepts at the Workplace, 2019).
Various theoretical models of operational management are defined as follows -
Classical Management Theory
It is the oldest management theory and focuses on the operations that creates standards to
increase production output (Carter, Rogers and Choi, 2015). The theory focuses on improving
output and rewarding high performance employees through giving wages, salary increments,
bonuses and fringe benefits. It provides certain standards to increase the production output.
There are three primary classical management theories -
Scientific Management theory
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This is early management theory and focuses on the minimising the waste and reducing
production time. This theory is founded by Frederick Taylor who introduce this to improve the
management operations of the business. This theory put emphasis on incentivise employees
performance and reducing the hit and trail practices in the organization.
Administrative theory
This theory is developed by Henri Fayol. It is considered to be a founder of management
theory. It is consists of all management activities that business must conducted. Theory provides
detailed guidelines for the managers.
Bureaucracy Theory
It promotes the reason to guide management decision. It is developed by Sociologist Max
Weber. The theory put emphasis on formal authority systems. Unity and the authority of
organizational hierarchies are central part of this theory.
Behavioural management Theory
This management theories began to includes the more people oriented methods.
Satisfying the interpersonal needs of the employees becomes the central part of these theories.
This management theories helps to motivate the teamwork and foster the collaborative
atmosphere. There are two behavioural management theories which are as follows -
Human Relations Theory
This theory considers the organization as a social entity. It recognizes that the money is
not enough to fulfil and satisfy the employees needs (Slack and Brandon-Jones, 2018). Morale is
consider as the integral part of employees performance. This theory weakness is that this has
several assumptions about the human behaviour which sometimes not provide accuracy.
Behavioural Science Theory
This theory combines the elements of the psychology, sociology and anthropology in
order to provide scientific basis. It helps to examine that employees are motivated by the specific
factors such as by fulfilling their social needs, conflicts and self actualization needs. By fulfilling
this needs employees feels motivate and their efficiency in operational management got
increased.
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Operational management theory used to resolve key operational issues
Operational issues is Defined and Explained the key issues within the organization In
order to do so, they need to focus on a some problems like production of high margin products
and services. There are different tools which reduced the operational issues such as -
Six sigma
Six sigma is the tool which helps to improve the quality of product. it is the quality
control techniques and helps to improve the business performance. Hospitality sector faced
some operational issues such as employee turnover, Operating cost, internal or external
Communication. Further, organization uses the six sigma in their business to reduce all the
issues in their business because this technique is help to improve the quality of business activity
so basically this quality control method is used to develop a management method such as this
method reduced the employee turnover by solve the problem of employees and provide better
training to employee to enhance the production (Gosling and et.al., 2015). When production is
increased it's directly impact on profitability of the company so hospitality sector uses the six
sigma techniques to resolve the organizations problems it can be minimized. Furthermore, six
sigmas also help to reducing the operational cost because its improve the quality and reduce the
waste. It is a managerial approach that seeks to improve performance of the firm by eliminating
waste and defects so its helps to reduce the operational cost and increase the profitability of the
company. This theory also improve the good relationship between the employees by promotes an
idea of optimizing and measuring business processes in order to bring improvement also this
process helps to improve the Internal and external Communication within organization by
organize the training, meetings, farewell part, so it helps to reduce all kinds of issues that are
faced by them.
Business process redesign
Business process redesign is also the best tool to manage all the activities of the business
because this tool redesign all the process. This process helps in redesigning all the activity of
business processes by designing objective that can be achieved as per the performance of the
firm. This tool measures and identify some operational issues such as service quality, cost
reduction. Internal and external Communication. Further more, organization redesign all the
process of training to reduce the employee turnover also redesigning the production activity to
reduce the cost of operation. Furthermore, company uses this process in their business in order to
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achieve the probability and generate the high revenue. If hospitality industry applied this
theory accurately in their business then it can help in reducing employee turnover, operational
cost and improve internal or external communication.
Lean manufacturing.
Lean manufacturing is the best tool which reduce the waste as well as eliminate all the
waste that is created within the manufacturing process. Organization used this process in their
business to reduce the operational issues when waste is reduces it's also helps to reduce the
operational cost as well as improve the profitability of the company (Piper and et.al., 2019).
Furthermore, this tool also reduces the cost of training and improve the quality of employees so
this process is helping to enhance the performance of employees as well as, increase the
performance of business activities.
CONCLUSION
From the above assignment it has been analysed that there are various kind of operational
issues that occur within a hospitality sector organization. Each issue is created due to some
causes, so above all those issues has been identified with the causes due to which those issues
arise. There are various operation management theories due to which such kind of issues can be
resolved. Operation management follows 10 principles which helps the organization to bring
improvement within their process, adopt chances easily and resolve those changes.
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REFERENCES
Books and Journals
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Carter, C.R., Rogers, D.S. and Choi, T.Y., 2015. Toward the theory of the supply chain. Journal
of Supply Chain Management. 51(2). pp.89-97.
Deihimi, A., Zahed, B.K. and Iravani, R., 2016. An interactive operation management of a
micro-grid with multiple distributed generations using multi-objective uniform water
cycle algorithm. Energy. 106. pp.482-509.
Gosling, J., and et.al., 2015. Principles for the design and operation of engineer-to-order supply
chains in the construction sector. Production Planning & Control. 26(3). pp.203-218.
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management
research. Journal of Operations Management. 41. pp.77-94.
Mahadevan, B., 2015. Operations management: Theory and practice. Pearson Education India.
Piper, R.J., and et.al., 2019. Chiari malformations: principles of diagnosis and
management. BMJ. 365. p.l1159.
Randhawa, P., and et.al., 2016. Hospitality service innovations in private clubs. Cornell
Hospitality Quarterly. 57(1). pp.93-110.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal. 38(1). pp.42-63.
Yi, Q., Shen, Z. and Lei, D., 2019, February. Research on Evaluation of Operation Management
Efficiency of Listed Companies in China’s Financial Trust Industry Based on SFA
Model. In International Conference on Application of Intelligent Systems in Multi-
modal Information Analytics (pp. 982-989). Springer, Cham.
Zhang, Y., and et.al., 2016. Model predictive control-based operation management for a
residential microgrid with considering forecast uncertainties and demand response
strategies. IET Generation, Transmission & Distribution. 10(10). pp.2367-2378.
Online
Management Theories & Concepts at the Workplace, 2019. [Online] Available through:
<https://smallbusiness.chron.com/management-theories-concepts-workplace-
17693.html>
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