Hospitality Management: HM601 Consultancy Project for Terry Cafe

This report, a consultancy project for Hospitality Management (HM601), delves into the managerial challenges faced by Terry Cafe, a family-run business in a competitive market. It identifies the causes and effects of issues like employee turnover, lack of motivation, poor teamwork, and the adoption of technology. The report critically analyzes management theories, such as systems theory and contingency management theory, to interpret complex industry issues. It explores practices to improve decision-making and organizational actions, including strategic professional planning. Furthermore, the report examines the importance of professional competencies in decision-making and strategic planning, offering solutions to improve operational efficiency, employee satisfaction, and overall business performance in the hospitality sector. The report emphasizes the need for effective communication, employee training, and the implementation of technology to address the challenges faced by the cafe.

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

motivate them to perform better. Hard work of employee can motivate them, but they are only
working for gaining incentives and these will have effect on quality of work done by employee.
Customers will not be satisfied by employee and these will have impact on sales and
productivity. So cafe must try to motivate staff so that it will increase job performance and
quality of work done by employee. Employees will be satisfied by job and these will build good
image of cafe in market and increase sales as well (Haver Olsen and Akerjordet 2019).
Employees can be motivated by rewards system and so that they can improve their performance.
Rewards can be given to employees by way of incentives, bonus and promotion. These can have
positive effect on employee performance and employees will feel motivated while working in
cafe.
Encourage team work
Team work is must for employees because they must be motivated to perform better, and
they are able to complete the work on time and complete work with quality of work. Leaders
have responsibility of encouraging team work if not which will be rising because of lack of
leadership. Leaders have responsibility of handling team members and encourage and motivate
team members as well. Employees are not provided proper training regarding how to work in
effective way. Employees are not provided incentives, strengths and weakness of team members
are not looked after by leaders. Miscommunication can cause problem and these will have effect
on team working because employees are not communicating with each other. These can rise the
conflicts among employees and team work will also suffer because of these conflicts (Shum
Ghosh and Gatling 2019). It is responsibility of managers to handle team and work on goals and
objectives of team. Employees will be encouraged while working in team projects.
Poor team work have effect on performance of employees. Team work can be poor but
because of poor individual performance of team members. Individual are dealing with many
problems in the work life and in their personal life. Employees are not able maintain the work
life balance which is enough to frustrate any employee. Employees do not have confidence of
being best and goals of team work are not explained to employees properly. Team goals and
rules must be known to employee and these will make performance of employee better. In some
case employees are frustrated with their past cases. There is lack of clarity among employee
because they will be facing problems while working in cafe (Fernandez and Worasuwan 2017).
Adoption of technology

Company can use the latest technology for smooth running and reducing errors while
working. Cafe can use technology in preparing food and attracting customer like cafe and start
online delivery service and also use social media for marketing of cafe. These can increase sales
and also increase productivity. Cafe has to invest more amount in technology which can have
burden on cafe and customers because prices of services will be increased. Cafe is concentrating
on errors which are affecting sales. Employees need to be trained because employees are not
aware how to use technology. Nor employees are trained to work and use the latest technology.
Cafe will be facing problems because employees of cafe will not able to manage the orders given
by customers online and at current place. Employees will also face problems in organizing work
and keep proper records. All data is stored in software but cafe has to concentrate on the security
of data too. Privacy of data is must and cafe is facing problems relating to privacy of data.
Cafe is not using technology in right way and it will have effect on sales and
productivity. Employees will feel uncomfortable while working in organization and so it will
result in employee turn over. Leaders will not be able to mange team members and so employee
performance will be affected. Customers are addicted to use the latest technology and
competitors are also using technology for increasing business. Cafe has to attract customers then
cafe has to use the latest technology. Customer needs and demand are must for any business and
so customers need to be statisfied. So cafe can update technology and work on the problems
faced by employees on working on technology (Burke 2018).
LO 2
Critically analyse management theory, analyse and interpret varied complex industry managerial
issues.
Management theories termed out as concept that surrounds the recommended
management plan of action that is inclusive of guidelines and frameworks that can executed in
modern enterprise. As per the view of Forrest, Nicholls and Liu, (2020) stated that set of general
rules that guides the manager to manage an organisational working. In addition to this, collection
of ideas set forth general rules and this also defined as that how an organisational working needs
to be managed. In the hospitality industry, this is crucial to handle the managerial issues so that
effective working can be carried out. It is termed out as the theory that known as how to
accomplish the goals that aids to motivate the employees to perform the highest standard.
Henceforth, management theories are termed out as following manner as are-:

System theory- This is termed out as alternative approach that plan and manage organisational
working effectively. As per the view of this can be stated that this theory that helps to bring out
effective business system and this is crucial element with help of which organisational success
can be accomplished. For example- Hotel Hilton is facing the wide issue as to hire and retain the
staff. Each hospitality needs to have quality and skilled staff to handle the working of business
enterprise. According to the view of Niemand, and Bwalya, (2020) stated that lack of skilled
employees within the hospitality is proving one of the major challenge to hotel industry. In order
to cope up with it, managers authorities of Hilton needs to train the workforce with tactics that
aids to bring qualifies staff. This is one of the effective theory that enhanced the enterprise
adaptability to environmental changes. In addition to this, this is theory that assist the managerial
authorities to investigate the inter-dependencies and inter-relations between various part of entity
and this also assist to get the holistic view to deal with business issues. Herein, Chakrabarti and
Chatterjea, (2020) stated that success of the enterprise is mainly depends on effective strategy
system, better use of management approach that bring out the effective working enterprise.
Contingency management theory- The one of the main advancement behind this theory is that
it aids to suggest the most effective and appropriate style of management that is depends on
varied situation of enterprise. Henceforth, Parker, Krause and Devers (2019) stated that this is
termed out as the situational approach which is universally applicable to set of varied managerial
principles to organisation. For example- The hospitality and tourism enterprise as TUI has to
face varied in changes in advertising and marketing trends that often creates the issues for
hospitality business. Changes in environmental trends and choice and preferences of customer
plays the crucial role as this helps to bring out effective performance management system.
According to the view of Parker, Krause and Devers (2019) stated that use of contingent
approach that aids to deal with conditions that defines techniques and control system that must
be designed to fit with the particular situation of the business enterprise. Therefore, hospitality
businesses must use the contingency approach as this aids to enhance the leadership and decision
making skills. This aids to design the organisational structure and plan the information decision
system. In addition to this, contingent approach provides the managers wide range of ways that
aids to react the problem and this also give significant discretion in decision making. Henceforth,
effectiveness of leader is based on the situation. Thus, contingent approach to the management is

highly based on the idea that aids to manage effective planning, organising, leading and also
supports to control the circumstances that faced by an organisation.
In the present scenario, the continual changes in the techniques and regular innovation
develops the working of the enterprise. Hospitality industry is relying heavily on technical
advancement to streamline the business services. Keeping up with the technical advancement is
one of the major issues that impacts the working of the industry in the huge context. In addition
to this, the use of technical advancement aids to transforming the business in the current
competitive era. Therefore, managers of the enterprise needs to use the contingent approach to
deal with the changing situation of enterprise. This can be stated that major innovation within the
hospitality industry is driven with help of technical advancement. In the present scenario, the
leading hospitality entities as Hilton, Marriott etc. use the robotics advancement that affects the
level and types of skills needed in the employees. With use of modern information technical
advancement, it can be possible to undertake require changes in communication and pattern of
interaction within and between organisation.
Scientific management theory- This is defined as theory of management that aids to analyse
and synthesizes the workforce. The main objective of this theory is that this aids to bring out the
economic efficiency and also enhance the labour productivity. This is the theory that aids to
bring out the peace and harmony and also enhance the production of business enterprise and this
also lesser the cost of production. In order to enhance the productivity within he hospitality
business the organisation needs to deal with the standardisation that aids to bring out better
qualities of commodities. As per the view of Chakrabarti and Chatterjea, (2020) stated that the
use of scientific management theory aims at higher productivity and this also help the workers to
get increased wages. For example- Hospitality industry as Hilton needs to take the initiatives to
deal with the better quality products and services that leads to more turnover and enhanced profit
for business enterprise. To undertake this kind of working, manager of the enterprise needs to
undertakes the scientific selection, placement and training of the industrial workers. By hiring
the right kind of man for the right job the working of the organisation can be improved and
proper atmosphere of work can be possible. It can be said as one of the effective theory as this
aids to bring improved work efficiency, enhanced labour productivity and effective working to
the enterprise. It is one of the effective term that aids to enhance the productivity and simplifies
the working of the enterprise (Bacon-Gerasymenko and Eggers, 2019).

Management theories- The better use of management theories aids to bring out the better
productive results and efficiency that leads to undertake better working practices. Henceforth, the
advancement of the managerial theories defined in the following manner as are-:
 Increasing productivity- The managers of the enterprise needs to look over to learning
managerial theories as this aids to maximise the organisational productivity. By bringing
up effective working this can be possible to carry out better business working and this
also creates the better advancement to working enterprise (Ambrosini and Altintas,
2019). With help of managerial theories the entity can possible to bring improvement
increased attention to detail to quality care.
 Simplifying decision making- The hierarchical system within the working enterprise
brings out better decision making process. As per the view of Niemand, and Bwalya,
(2020) stated that by promoting better working environment the organisation can able to
bring simple decision making process and this also leads to create and build innovation
system that can speed up the decision making process of business enterprise.
 Encouraging staff participation- This is the theory that mainly aims to encourage the
interpersonal relations between the worker of the enterprise. Thus, Forrest, Nicholls and
Liu, (2020) stated that managerial theories aids to encourage the collaborative working
environment that aids to bring better human relation approach.
LO3
Practices that Can improve the Decision Making and Actions of Organization
There are various challenges are faced by hospitality organization in performing various
tasks that are related to their performance in local and international market. These issues are
related to the performance of the organization with in the operations. Issues which are faced by
organization can affect their performance in the target market and also it can affect consumer
satisfaction. To solve these issues within short period to reduce the loss in daily profit. To solve
these approach leader and manager of hotel use various approached that can help them to address
the issues of organization (Trianni, Cagno and Farné, 2016). To improve the performance of
organization there are various decisions are made by leadership and management of company to
perform certain actions in order to resolve issues. The effectiveness of the actions is depended on
how much research work is performed by them. These actions and decisions are depended on the
approaches and strategies that are used by the senior leaders and manager of company. As per

the contingency theory of management the approach of leader is depended on the issue that
organization is facing. There are various real life examples are provided above which can be
addressed by using specific leadership and management approaches (Feeney, 2017). The
outcomes of these actions are mainly positive and effective for the organization. Decision
making process that is used by the company management is consists of various tasks which are
designed to improve their decisions that can help them to resolve the operational and
performance issues with high capabilities.
The staff retention is one of the most crucial issue for Hotel Hilton due to high work
pressure and requirement of high knowledge and experience to provide better services to the
consumers. There are different processes and methods can be used by management and Human
Resources management to improve the staff retention rate of organization. The activities are
performed by Human Resources management are mainly focused on the hiring and recruitment
of highly educated and skilled employees to improve the workforce of organization in order to
achieve highly efficiently task execution rate (Mosier. and Skitka, 2018). Highly skilled and
efficient work force is important for the services that are provided to the customers. This is one
of the most common approach that can be implemented by company management to improve the
workforce of the company. The outcomes related to these are positive for Hotel Hilton cause in
new recruitment process the approach of organization is more focused on the skills and personal
capability of candidates. This decision is highly efficient for the performance of organization and
solve the work force related issues. There are some other actions that are performed by Hotel
Hilton are also related to the training and development process. The decisions that are taken by
management of the hotel Hilton is differentiated in two categories. To improve the personal and
personal skills of employees by using process of training, development and recruitment. The first
process is related to recruit new staff in order to improve the work force of company which is
highly skilled and educated. The other actions is about those people who are already working in
Hotel Hilton for long time and having good knowledge of operations that are performed by hotel
Hilton on regular basis. These employees are targeted by the organization for training and
development process. By these process the issue of skills and knowledge in workforce is
addressed by the organization (White, 2018). This decision and respective actions that are taken
by leaders and manager of the organization are based on the system theory which is used by the
manager and leader of the organization to make changes in the actions and systems of

organization practices in order to improve the front office and back office operations of
company.
As per the example of the TUI which is a travel and tourism organization that provide
services to its clients related to their local, national and international tours. There are some
challenges are faced by TUI company in their marketing operations and sales operations.
Marketing is one of the most important functional department of organization and business
performance and customer relationship is also managed by the marketing department. This is
major issue for organization to fail with marketing department. There are various changes can be
made in the marketing department in order to keep its actions positive and effective for the
organization performance in target market. For these issue or problem, approach that is selected
by the manager of organization is contingency theory of management. As per this theory the
actions and decisions taken by company are not always similar and depends on particular issue
that company is currently facing. As the TUI is facing issues in performance of their marketing
department, their approach is to make changes in their trends that are currently followed by the
company. There are various processes are followed by organization to promote the company
products in the market place. The solution which is used by the company to improve
performance of marketing department is best on the contingency approach of management.
According to this solution all the actions that are performed by the marketing department will be
based on the current trends of market place. For example the current trends in the marketing
process are related to the digital technology and social media marketing. By using these trends
organization can achieve their promotion related goals in the market place. As a solution some
control system and technologies can be implemented in the organization in order to track the
current trends and technologies of the market place to keep the operations of the marketing
department accordingly. This is how by using the contingency approach organization can
effectively solve marketing department related issue. There are various advantages of these
approach for TUI because this approach provide them high flexibility in decision making and
implementing different actions with in organizational operations to generate high value form
company business. The outcomes of these approach are also effective and high profitable for
marketing department company. This process also can be used by the organization to
The organizations like Hotel Hilton use various practices and processes to improve their
performance in the international market and treat guests effectively to make positive impact on

their mind set to revisit the organization. To provide better experience to customers organization
try to implement best raw material and products for their use. It can increase the turnover of the
company along with over all performance of organization. This also related to the performance
of the employees. Their performance can be improved by provide them effective training to
improve their personal and professional skills and development process to enhance their current
skills for the development process (Beach and Lipshitz, 2017). Apart form the current employees
Hotel Hilton also can use various technologies and processes to improve their current practices to
get better result in the market place. For high efficient performance it is important for
organization to maintain workplace positive and efficient to motivate and encourage the
employees to give their their best to maintain effective operations in organization processes.
This is how there are various approaches and processes are their that can be used by the
business organization like Hotel Hilton to gain high productivity and performance in market
place. The actions and decisions that are made by the organization managers and leaders are also
highly efficient for Hotel Hilton. The decisions that are made by the leaders might be costly for
instant perception but for long term perspective it is highly beneficial for organization.
LO 4
Discrimination on practice wide range of profession competencies in the development of
management decision making.
There are various improvements are possible in the practices of organization that can
provide more opportunities to the company to gain higher profit in the market place. The tools
that are used by the organization for the decision making can be improved by implementing
different technologies which are able to effectively process data that is collected form the
performance of organization and market place (Janssen, van der Voort and Wahyudi, 2017). The
technologies like Artificial Intelligence, automation and Information system are the best solution
that can be implemented in management of Hotel Hilton to get better solutions that are based on
the numerical and condition analysis process. With the change in the business trends various
technologies are used by the hospitality industry to keep their actions according to the market
trends. The artificial Intelligence technology is based on the self learning process because in this
technology data mining technique is used to process the data. This technology works on the data
that is collected by the organization related to the market performance and market data. By
finding connections in past data AI can help Management of the Hotel Hilton to take decision.