Operational Management in the Hotel Industry

Running head: OPERATIONAL MANAGEMENT
OPERATIONAL MANAGEMENT
Name of the student
Name of the university
Author Note

1OPERATIONAL MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Analysis of the Operations management issues...............................................................................4
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

2OPERATIONAL MANAGEMENT
Introduction
This paper aims to analyze the issue of operational management within the context of the
chosen organization which will be elaborated by using the operational management theories and
suggest probable recommendations for an effective resolution of the operational management
issues of the company. Operational management is the process ofmanaging the system of goods
and services production [1]. It is the primary part of all the organizations since operations and
process management is the core of all service industries. This is the process of management of
the administration of all the business practices within an organization to ensure maximum level
of efficiency [1]. However, it is imperative to note that every organization face some or the other
organizational management issues while operating.
Since, I had the opportunity to observe one of the issues of organizational management
while working as employees in one of the best hotels of the town; this provided an ample
opportunity to realize and sense the gravity of problem and develop an understanding of the
organizational issues that a particular organization might face.
Discussion
During my job in Atlanta Hotel as a human resource recruit, I realized that the hotel
industry faces certain unique organizational management issues and this requires extra concern
for resolving them can become difficult at times. It was observed that the company faced a major
crisis due to the higher level of employee turnover. It was clear that the employee turnover to a
certain degree is acceptable since people always strive for better opportunities and higher pay;
however it is important to note the employee turnover might have bigger issues underlying it

3OPERATIONAL MANAGEMENT
[5]. Along with the job satisfaction, there are issues like longer working hours which can be
difficult for the employees to manage at time [6]. However, the problem for the operational
managers of the company is the higher labor cost attached to the higher employee turnover or the
monetary cost associated with advertising for the post [8]. This labor cost associated with the
employee turnover for the company can actually hurt its other operational issues.
The second issue of the operations management of the hotel industry is associated with
the changing expectations of the customers. Even though all the service industries face some
or the other operational issues, however it is important to note that the gravity of issues for some
industries are larger and more complex than others [6]. According to data, in the service industry,
customers only find 16% delight in their overall experience, it is estimates that the general
perception of the customers are higher however their actual expectations in reality happens in
less than 20% [1]. This decreasing customer satisfaction has wide ranging impact starting from
reduction in number of customers and reduction in the overall revenue of the company [3].
Hence, there is a need to handle the issue by looking into the operational management of the
company which is described in the analysis part.
Fig: customer satisfaction ratio