Quality Management in Business: IHG Hotels Report and Analysis

This report provides a comprehensive analysis of quality management within InterContinental Hotels Group (IHG) Plc. It explores key concepts such as quality in business, quality assurance, and various quality management methods like flowcharts and benchmarking. The report examines customer satisfaction strategies, the importance of quality provision, and the role of information provided to customers. Furthermore, it delves into quality measurement techniques, including the SERVQUAL instrument, and discusses different quality schemes such as Total Quality Management (TQM). The report also addresses complaint procedures and their significance in resolving business issues. The analysis highlights IHG's approaches to maintaining and improving service quality, emphasizing the importance of employee training, customer feedback, and continuous improvement to enhance customer satisfaction and achieve business objectives.

Quality Management in
Business
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
A...................................................................................................................................................3
B...................................................................................................................................................4
C...................................................................................................................................................4
TASK 2............................................................................................................................................5
A...................................................................................................................................................5
B...................................................................................................................................................5
C...................................................................................................................................................6
TASK 3............................................................................................................................................6
A...................................................................................................................................................6
B...................................................................................................................................................7
C...................................................................................................................................................8
TASK 4............................................................................................................................................9
A...................................................................................................................................................9
B...................................................................................................................................................9
C.................................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Quality management is considered as the most important task for business which
facilitates to render good quality of services to large number of buyers. It covers continuous
improvement in order to increase satisfaction level of buyers by meeting their expectations in an
effectual manner. Present report is based on InterContinental Hotels Group Plc which a British
Multinational company offering different types of products and services across the world. This
is operating around 1000 countries with 742000 rooms and 5028 hotels. This covers number of
brands such as Holiday Inn, Hotel Indigo and Candlewood suites etc. Total revenue of business
$1,803 million during 2015 and number of employees in the same year were 7311. This
corporation operating across the globe, including Greater China and Singapore and Middle East
as well as Asia.
This corporation uses appropriate aspects for maintaining quality and retaining staff in
order to deliver good quality of services to large number of buyers. Furthermore, different
approaches used in managing quality are also explained. In addition to this, role of self-
assessment has been assessed by taking into account current status of health in term of service
provision.
TASK 1
A
Quality in business perspective can be defined as fitness for purpose which is considered
as conditional, perpetual and subjective attraction which facilitates to create competitive edge of
the business in the marketplace. It assists management of IHG hotel to produce products and
services in accordance with set standard so as to cater need of buyers. However, quality in term
of services can be defined as comparison of expectations with regard service with performance.
Generally business with good service quality tends to meet expectations of customers by offering
them good services in accordance with their preferences (Hacklin and Wallnöfer, 2012). It
creates psychological effect among them and accordingly they can be retained for longer time
span. Furthermore, IHG hotel offer different types of services through which it becomes easy to
retain buyers and attract them towards firm. However, effective services packages are offered by
offering training among personnel so as to increase their attention. Not only this, quality of
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services is improved by taking into account views and suggestions offered by visitors. In this
regard, workforces are asked to rate services offered so that accordingly lacking areas can be
highlighted. This in turn business can retain staff and customers as well. Apart from this, online
survey is conducted by the business through which employees are invited to provide feedback
related to products and services which are being offered by IHG hotel.
B
Quality assurance is the process of preventing defects and mistake which occur during
rendering services to end users. It is considered as the important part of quality management
whereby quality cultural is maintained so as to create unique identify of the business in the
marketplace. However, structured process is followed in order to ensure quality assurance at
workplace. Under this process, the first process is about identification of goals where IHG set
targets to maintain good service quality. At this juncture, focus is laid on retaining buyers by
offering them. However, company aims to increase volume of sales along with profitability.
Third step of quality assurance is identification of internal external customers such as employees,
suppliers. This procedure is followed by development program whereby it becomes easy to retain
them for longer time span. Apart from this, at fourth step business assess feedback of buyers
under which survey is conducted so that IHG hotel can easily take necessary step to improve
lacking areas. The next step of business is related to customer feedback under which hotel get
feedback from customers and other related parties (Jalal-Karim, 2013). It facilitates to ensure
continuous improvement where company can effective select quality management software in
order to address issues which are being faced by consumers. Apart from this, all extracted results
are measured by IHG hotel so as to accomplish long as well as short term objectives.
C
There are different methods for quality management such as flowcharts, check-sheets and
control charts as well as Bench marking. All these method facilitate employees of business to
control business activities by focusing upon expectations and requirement of buyers. However,
these methods are almost similar under which standards related to quality are set and actual
performance of all project is assessed in the light of actual outcome. This assists management of
IHG hotel to bring necessary innovation and improvement in current service quality.
Furthermore, hotel might find control charts and flow charts different in term of preparation. It is
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highly based upon type of information or manner through which information is put in each
method. Therefore, each of these method tend to communication message related to quality
assurance among staff (Anninos and Chytiris, 2011). For example, check sheet facilitate
personnel to ensure that all services are rendered on the basis of set criteria. However,
benchmarking is set by top management related to quality which must be followed by all
employees of each department working in IHG hotel.
TASK 2
A
Customer satisfaction refers to the process of meeting expectations of buyers by
delivering them good quality of services. It can be related to monetary and non-monetary term
through which buyers are retained for longer time span. According to the given case study, IHG
hotel uses effective approaches such as offering training among personnel in order to deliver
good quality of services to users (Hamister, 2012). Though, firm uses effective methods such as
training and development program under which employees come to know about new aspects for
completing the allocated task. It can be critically valuated that, training and development
methods are prepared on the basis of survey outcome. These outcomes are extracted through
direct or indirect interaction with customers so as to resolve their potential issues with regard to
current business. However, outcome can be positive and negative through which management of
IHG hotel consider the same so as to accomplish the set targets (Hirigoyen and Labaki, 2012).
In addition to this, quality culture is prepared by offering right kind of training and development
program which tend to meet expectations of buyers. Moreover, clear communication is
established with service providers and management which in turn business performance can be
managed.
B
Quality provision is considered as the most imperative aspect for business as it
adds value while creating customer satisfaction. Generally customers remain ready to pay higher
price of products and services when they are getting good quality of services. For this purpose, it
becomes essential to render good quality of services by focusing upon specific need of
consumers. In this regard, management of IHG hotel set standard for maintaining better quality.
For this purpose, quality team is assigned task related to close monitoring of potential products
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and service (Vercellis, 2011). This makes it possible for corporation to create competitive edge
and retain buyers for longer time span. It can be critically evaluated that quality service provision
is not possible with inclusion of skilled and competent workforce. Owing to this, focus is laid on
effective recruitment and selection procedure whereby potential candidates can be approached.
These selected personnel are training regarding quality aspect with clear communication of
preferences and expectations of consumers. Furthermore, employees are included in the decision
making process whereby it becomes easy to improve service quality. In this manner, IHG hotel
enhances customers satisfaction by focusing upon their special preferences.
C
There are different types information provided to customers related to products and
services which are being offered by IHG hotel. It consists of different factors such as
advertisement, video and word of mouth. These basic sources are important for providing
information related to hotel. Under this, information related to service quality, price and
additional benefits added with products and services are also communicated. However,
consumers are provided information related to additional facilities offered to customers will be
highlighted in advertisement (Dunne and Dunne, 2011). For example, IHG hotel advertise for its
products and services by focusing upon ambiance and food quality and as well as verity of the
same. However, impact of these strategies can be observed in term of increased attention of
buyers and higher sales turnover. In this manner , IHG hotel can improve its marketing
effectiveness by alternative current marketing strategies. For this purpose company can apply
effective mode of communication whereby customers get detail information related to products
and services. For example, advertisement placed on TV does not work then company can apply
internet as effective strategy. Owing to this, marketing strategies can be improved by gathering
important information related to customers such as their preferences, culture and buying habits
etc. Owing to this, IHG hotel is performing good by improving its marketing strategies on
continuous basis.
TASK 3
A
Quality measure refers to the process of assessing product or service with refers to set
standard. It can be assessed in the light of preferences of buyers, price and other related benefits.
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Generally quality measurement is considered as typical task where one need lot of attention to
accomplish the set targets on right time. At this juncture, SERVQUAL measurement instrument
can be applied for measuring the quality of services offered by IHG hotel (Edmonds, 2010).
Here, the first factor is of tangibility under which ambiance of rooms, equipment used in
washrooms, staff services and appropriate flow of communication between staff and customers
are covered. However, reliability and responsiveness are two important aspect prove to be
effective in measuring service quality. Apart from this, assurance reflects that how sincerely
employees are conveying trust and confidence. These all factors play important role in assessing
quality of services which are being offered by IHG hotel.
Survey is considered as the effective tool to measure service quality. However, the survey
will be applied on both users and non-users (Makarova and Sokolova, 2014). Here, questionnaire
and rating aspects are applied under which respondents are provided chance to select option as
per their experience. For example, rating is given in star along with specific comment related to
particular service. Moreover, employees are also asked to rate their experience and their
dedication at the time of rendering services. It enables management to gather reliable information
and take corrective action accordingly.
B
There are different quality scheme which can be applied by IHG hotel. In this regard,
hotel can apply total quality management tool under which different factors such as focus on
consumer, continuous improvement and quality improvement as well as accurate evaluation and
involvement of employees are included (Morris, 2012). It is considered as the most effective
aspect under which management shed light on specific preferences of consumers and then
accordingly set quality standard. For example, customer prefer clean rooms with all basic
amenities along with good food quality. For this purpose, quality standards will be set with
respective all mentioned specification.
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(Source:Total Quality Management. 2016)
The aforementioned diagram reflects that management of IHG hotel will include
competent and skilled personnel by offering them training. However, all newly hired work will
be allotted a mentor so that quality standard will be complied. At the same time quality team
ensure continuous quality improvement n accordance with variation between actual and expected
outcome. Owing to this, accurate evaluation is done on the basis of collected information from
buyers as well as employees. It leads to manage total quality of services. However, under-
represented group is included on the basis of weekly meeting under which views and suggestions
from all parties will be taken.
C
Complaint procedure plays important role in resolving any kind of issues which are being
faced by business. It assists management to focus upon negative aspects through which
corporation can adopt effective strategy in order to create competitive edge in the marketplace.
For example, complaint procedure can be related to poor service quality and issue related to
food (Nicholas and Steyn, 2008). Owing to this, management of IHG hotel will come to know
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Illustration 1: TQM

that what effective strategies can be applied to propose alternative solutions. Complaint
procedure is used for the purpose of improve service quality. Under this, staff members will be
communicated regarding issues faced by consumers and accordingly they will be provided
training to resolve those potential issues. It can be critically evaluated that management of IHG
hotel need to follow the effective criteria related to quality. This would be effective to shed light
upon changing the internal structure if needed. In addition to this, particular issue addressed by
discussion with respective personnel which in turn company can create competitive edge in the
marketplace. However, total quality management is already applied at workplace whereby it
becomes easy to involve all related parties into decision making process.
TASK 4
A
Self-assessment plays important role to determine the current status of health in term of
service provision. Self assessment can be used by management or project management who
general handle work related to quality assurance in an organization. Here, quality team uses
inspection and other alternative record information related to quality of services. However, these
serves are measured with respective to specific aspects such as rating or survey (Rozenes and
Vitner, 2009). In this regard, IHG hotel delegate this work to quality team and those rendering
services. For example, waitress and cleaning staff will be asked to carry out self assessment. This
makes it possible to rate their services on their basis of their view point.
Apart from this, role of communication and record keeping is effective in case of
corporations like IHG hotel. Here,quality of services is base upon free flow of communication
and other related aspect of hotels. For this purpose, management of hotel tends to focus upon
database management under which record are done related to employees as well as staff.
However, such kind of strategies facilitate to shed light upon lacking areas of business. This
makes it possible to bring necessary improvement and cater need of personnel in an effectual
manner.
B
There are different stages of staff consultation which begins with establishing objectives
of the same. For example, IHG hotel does this procedure in accordance with complaint
procedure, survey and other related aspects. However, the second procedure will be related to
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communicating the message among employees with regard to specific topic. However, personnel
are also told that they need to come up with their issues and idea regarding allotted issues.
However, tactical plans are communicated along with quality scheme. The quality scheme will
be covered under total quality management (Wysocki, 2010). At this juncture, lower, middle and
top level management are included in the decision making process so that it becomes easy for
them accomplish set aim and objectives. It can be critically evaluated that, top management
might impose new regulation on the basis of extracted find which might be little difficult for
company to implement the same. Owing to this, management must incorporate ideas and
suggestion provided by employees whereby they will get higher level of motivation. This proves
to be effective to implement new procedure for quality assurance. This aids to retain stakeholders
and customers so as to ensure expansion of business across the globe. Moreover, plan should be
reviewed on right time through which it becomes easy to bring perfection in service quality.
C
New system system for quality assurance is the most important aspect which facilitate to
determine long run survival of business with increased rate of return. The new system can be
implemented by focusing upon cost aspect. This tends to create good position of company in the
marketplace through which large number of customers can be attracted. However, existing
system can be modified by reducing cost of production (9 Practical Methods for Measuring
Service Quality, 2016). It can be critically evaluated that shareholders' view and customers
suggestions can be incorporated. Apart from this, focus can be laid on selecting suitable
personnel for each department such as cleaning, production and service. However, self
assessment will be done in each month and accordingly performance of business will be
evaluated. However, reward policy will be introduced for the one performing good. This tends
to cater need of corporation so as to maintain good quality of products and services. At the same
time, quality team will be asked to continuous monitoring of products and services whereby
customers' satisfaction level can be increased.
CONCLUSION
The aforementioned report concludes quality management is the imperative which in
turn customers can be retained for longer time span. At the same time, business uses effective
approaches to manage quality like total quality management and Six sigma etc. This tend s to
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bring perfection in current service quality and and ensure well being of business in the
marketplace. It can also be concluded that quality assurance and inspection are effective aspect
under which management focuses upon lacking areas and accordingly discover areas of
improvement. Furthermore, staff consultation proves to be effective aspect to incorporate
employees in the decision making process.
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REFERENCES
Journals and books
Anninos, L. N. and Chytiris, L., 2011. Searching for excellence in business education. Journal
of Management Development. 30 (9). pp.882 – 892.
Dunne, J. K. and Dunne, S. D., 2011. Translation and Localization Project Management: The
Art of the Possible. John Benjamins Publishing.
Edmonds, J., 2010. How training in project management can help businesses to get back on
track. Industrial and Commercial Training. 42(6). pp.314–318.
Hacklin, F. and Wallnöfer, M., 2012. The business model in the practice of strategic decision
making: insights from a case study. Management Decision. 50( 2). pp.166 - 188.
Hamister, W. J. 2012. Supply chain management practices in small retailers. International
Journal of Retail & Distribution Management. 40(6). pp.427-450.
Hirigoyen, G. and Labaki, R., 2012. The role of regret in the owner-manager decision-making in
the family business: A conceptual approach. Journal of Family Business Strategy. 3 (2).
pp. 118-126.
Jalal-Karim, A., 2013. Evaluating the impact of information security on enhancing the business
decision-making process. World Journal of Entrepreneurship, Management and
Sustainable Development. 9 (1). pp.55 - 64.
Makarova, A. E. and Sokolova, A., 2014. Foresight evaluation: lessons from project
management. foresight. 16(1). pp.75–91.
Morris, G. W. P., 2012. Cleland and King: project management and the systems approach.
International Journal of Managing Projects in Business. 5(4). pp.634–642.
Nicholas, M. J. and Steyn, H., 2008. Project Management for Business, Engineering, and
Technology: Principles and Practice. Elsevier.
Rozenes, S. and Vitner, G., 2009. The training methodology of project management office
(PMO) personnel. Industrial and Commercial Training. 41(1). pp.36–42.
Vercellis, C., 2011. Business Intelligence: Data Mining and Optimization for Decision Making.
John Wiley & Sons.
Wysocki, K. R., 2010. Effective Software Project Management. John Wiley & Sons.
Online
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