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Chapter 7
                            Resort Opening:
                         Management, Staffing,
                         and Human Resources
                         World of Resorts: From Development to Management
                                            Third Edition
                                        (424TXT or 424CIN)


© 2010, Educational Institute
Competencies for
     Resort Opening: Management, Staffing,
             and Human Resources
     1. Explain how a resort moves through various
        preopening activities to its grand opening.
     2. Explain how resorts are managed, discuss their
        organizational structures, and summarize their
        communication issues.
     3. Describe managers as leaders and various aspects of
        how they carry out their leadership role, including
        building employee morale, conducting effective staff
        meetings, and building internal and external
        relationships.
© 2010, Educational Institute (continued)                      2
Competencies for
     Resort Opening: Management, Staffing,
             and Human Resources
                                (continued)

     1. Summarize labor force issues for resorts, including the
        labor shortage, non-traditional sources of labor, and
        the role of a resort’s human resources department.
     2. Discuss wage and salary administration issues at
        resorts.
     3. Summarize employee productivity issues at resorts.
     4. Describe the impact of labor unions on management-
        employee relations.
     5. Identify and discuss laws governing employment and
© 2010, Educational Institute                                 3
Leisure Concept Variables
                            in Resort Management
                       •        Nature of discretionary travel
                       •        International/domestic market mix
                       •        Social trends and lifestyles
                       •        Leisure/business market mix
                       •        Service demands in a leisure environment
                       •        Larger average party size
                       •        Recreation and sports
                       •        Entertainment
© 2010, Educational Institute                 (continued)                  4
Leisure Concept Variables
                            in Resort Management
                                                (continued)

                                •   Spa amenities
                                •   Multiple dining options
                                •   Higher staffing ratios
                                •   Seasonal employment
                                •   Climatic conditions and seasonality
                                •   Logistics in one-off locations
                                •   Seasonal packaging

© 2010, Educational Institute                                             5
Elements of an Organization Chart
          • The division of responsibilities among individuals
            and between groups.
          • The grouping or departmentalization of work
            according to functions, specialization, tradition,
            process, location, time, etc.
          • The chain of command by levels of authority and
            formal channels of communication.
          • The number of layers of management in the
            organizational pyramid or structure.
          • The distinction between line and staff roles,
            sometimes represented by solid or dotted lines
            between cells on the chart.
© 2010, Educational Institute                                    6
Variables Affecting Employee
                             Motivation
                     •     Characteristics of the individual employee
                     •     Characteristics of the job
                     •     Relationships among individuals
                     •     Group dynamics
                     •     Environment of the workplace
                     •     Technological considerations
                     •     Economic forces
                     •     Societal values within the community
                     •     Power of the state versus the individual
                     •     Management behavior
                     •     Leadership influences
                     •     Specific contingencies and situations
© 2010, Educational Institute                                           7
Employee Assistance Programs
                        and Incentives
          • Recognition programs for outstanding company
            service and individual achievements
          • Recreational and social activities for employees
          • High-quality employee canteen
          • Periodic review of employee sentiments about the
            workplace and working conditions
          • Counseling programs for job-related and personal
            problems

© 2010, Educational Institute   (continued)                    8
Employee Assistance Programs
                        and Incentives
                                (continued)

      • Assistance to ease relocation and transfer problems
      • Opportunities to participate in decisions that have a
        bearing on the employee’s work
      • Policy of promoting from within
      • Career development and continuous training programs
      • Profit-sharing, bonuses, or related incentives tied to
        performance

© 2010, Educational Institute                                    9
Entities with Whom a Resort’s
                   Management Should Develop
                            Relationships
                                •   Owners
                                •   Guests
                                •   Union representatives
                                •   Business community
                                •   Travel distributors
                                •   Tenants
                                •   Local representatives
                                •   Local politicians
© 2010, Educational Institute             (continued)       10
Entities with Whom a Resort’s
                   Management Should Develop
                            Relationships
                                 (continued)

          • Lodging associations, restaurant associations,
            state/local convention and tourism bureaus
          • Nearby universities or colleges with hospitality
            management of culinary programs
          • Communications/media
          • Suppliers and service providers to the resort


© 2010, Educational Institute                                  11
Formula for Employee Turnover
    (Number of Separations ÷ Number of Employees) × 100
   •
   • Moderate employee turnover in resorts = 20–30 percent
   • High employee turnover in resorts = 31–50 percent



© 2010, Educational Institute                                12
Basic Questions for a Job Analysis
   •      What are the tasks to be performed?
   •      How should each task be performed?
   •      How often is each task performed?
   •      How long (on average) does each task take to complete?
   •      What equipment and materials are needed to do the job?



© 2010, Educational Institute                                  13
Information Included in New
                         Employee Orientation
      • General introduction: job responsibilities, relationship
        of the job to the total objectives of the organization, the
        resort’s owners, history of the resort, and future plans
        of the resort.
      • Pay: rate of pay, payday, shift differentials, deductions
        from pay, and frequency of pay rate reviews.
      • Benefits: group insurance programs, holidays, vacation
        time, sick leave, tuition aid (if available), recreational
        and social facilities and clubs, resort facilities
        privileges (if any), and other employee programs.
© 2010, Educational Institute    (continued)                        14
Information Included in New
                         Employee Orientation
                                 (continued)

     • Employment conditions: hours, required clothing,
       identification cards, parking, employee cafeteria and
       meal periods, and reporting absences and injuries.
     • Human relations on the job: importance of cooperation,
       formal communication, guest-employee contacts, and
       public relations.
     • Introduction to the job: introduction to the supervisor
       and fellow employees, tour of the department and
       possibly the entire resort, location of smoking and
       restroom areas, location of bulletin boards, assignment
       of an “advisor” or “buddy,” and information on how to
© 2010, Educational Institute  (continued)                   15
Information Included in New
                         Employee Orientation
                                 (continued)

          • Rules and regulations: fire and safety regulations,
            rules of conduct, and formal complaint and
            grievance procedures.
          • Job instruction: initial training meetings, job
            instruction by the supervisor, instruction by fellow
            employees, and job performance evaluation and
            review.
          • Follow-up: questions regarding pay and benefits,
            working conditions, job performance,
            explanations of opportunities for advancement,
            and explanations of grievance procedures.
© 2010, Educational Institute                                      16
Four Training Program Goals
     1. To create service awareness and an understanding of
        the importance of quality standards and consistency in
        rendering service to guests.
     2. To build employee morale, confidence,
        professionalism, and loyalty to the organization.
     3. To instill the desire to maintain and improve existing
        skills, aptitudes, and capabilities.
     4. To engage all employees and staff in environmental
        awareness and conservation practices.
© 2010, Educational Institute                                    17
Formal Training Program Format
          1. Identify the ideal set of skills, attitudes, and
             knowledge needed for the job.
          2. Do a training needs assessment based on
             deficiency gaps identified by comparing current
             employees’ performances with the ideals
             identified during Step 1.
          3. Determine the training time required to develop
             optimal proficiencies.
          4. Design a course of training.
          5. Specify the resources required—funding, space,
             materials, equipment, etc.
© 2010, Educational Institute     (continued)                   18
Formal Training Program Format
                                     (continued)

                 1. Prepare the trainees.
                 2. Select the trainers (or qualify them through
                    “training the trainer” courses).
                 3. Schedule and conduct the training.
                 4. Do follow-up evaluations to measure
                    training effectiveness.

© 2010, Educational Institute                                      19
Five-Step Process for Project Resolution
          •         Define the targeted project.
          •         Measure from the baseline.
          •         Analyze date to ascertain the root cause of the
                    problem.
          •         Improve by pilot-testing a solution before
                    permanent adoption.
          •         Dashboard monitor the solution to ensure
                    sustainability.

© 2010, Educational Institute                                         20
Five Assumptions of a QA Program
          • Management approach. Employees should consult
            the person who dos the job if they have questions
            about how to do a job properly.
          • Communication. Management should provide
            employees with a mechanism of channel for
            speaking freely on problems that hinder
            profitability or hurt guest and employee relations.
          • Problem-solving. Group problem-solving is
            demonstrably more effective than individual
            problem-solving. (continued)
© 2010, Educational Institute                                     21
Five Assumptions of a QA Program
                                (continued)

          • Costing-out solutions. QA task teams must be able
            to demonstrate to management the cost of
            problems under discussion and the cost of
            potential solutions.
          • Training. The foundation of the QA program is
            the development of job standards with employee
            involvement and the use of these standards to train
            and evaluate employees.

© 2010, Educational Institute                                     22
Productivity Indexes
                                    Output per Worker-Hour =
                                Output Index ÷ Worker-Hours Index



                                       Labor Cost Percentage =
                                Cost of Labor ÷ Gross Resort Receipts



© 2010, Educational Institute                                           23
Basic Instruments of an Employee File
                                •   Written job description
                                •   Quantitative standards
                                •   Qualitative standards
                                •   Specific objectives
                                •   Incident file
                                •   Performance reviews
                                •   Personal history
                                    records

© 2010, Educational Institute                                 24
Reasons Given by Employees for
               Wanting Union Representation
          • Employees have only minimum information about
            the company, and feel insecure about their jobs.
          • Managers are inconsistent in setting or enforcing
            policies and rules.
          • Managers are one-sided in dealing with
            complaints, always favoring the company instead
            of getting all the facts.
          • The competition offers the same or better wages
            and benefits.
          • Poor working conditions.
© 2010, Educational Institute      (continued)                  25
Reasons Given by Employees for
               Wanting Union Representation
                                (continued)

          • Supervisors play favorites instead of ensuring
            fairness to all.
          • Changes are made by the company without first
            asking employees for their opinions.
          • Discrimination on the basis of age, ethnicity, or
            gender exists within the organization.
          • Managers have not followed through on promises
            of pay raises, vacations, or better uniforms or
            working conditions.
© 2010, Educational Institute   (continued)                     26
Reasons Given by Employees for
               Wanting Union Representation
                                (continued)

         • Employees believe there is safety in numbers with
           regard to attempting to settle their grievances.
         • Employees want to retaliate for past grievances.
         • Employees think they will get more pay for less work.
         • Employees buy the union’s promises of a better life,
           better pay, better benefits, and job security.
         • Employees have security concerns from witnessing
           increasing amounts of work being outsourced.
© 2010, Educational Institute                                     27
EEOC Regulation Focus Points
          1. Effective fair employment distribution with
             respect to race and sex in all areas of employment.
          2. Ending discrimination against women, minority
             groups, the elderly, and the physically
             handicapped in all areas of employment.




© 2010, Educational Institute                                      28
Workers’ Compensation System
                    Primary Objectives
          1. Provision of adequate compensation (including
             medical care) to injured workers.
          2. Encouragement of safety in working conditions.
          3. Achievement of administrative efficiency relative
             to the insurance system itself.



© 2010, Educational Institute                                    29

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Chapter 7

  • 1. Chapter 7 Resort Opening: Management, Staffing, and Human Resources World of Resorts: From Development to Management Third Edition (424TXT or 424CIN) © 2010, Educational Institute
  • 2. Competencies for Resort Opening: Management, Staffing, and Human Resources 1. Explain how a resort moves through various preopening activities to its grand opening. 2. Explain how resorts are managed, discuss their organizational structures, and summarize their communication issues. 3. Describe managers as leaders and various aspects of how they carry out their leadership role, including building employee morale, conducting effective staff meetings, and building internal and external relationships. © 2010, Educational Institute (continued) 2
  • 3. Competencies for Resort Opening: Management, Staffing, and Human Resources (continued) 1. Summarize labor force issues for resorts, including the labor shortage, non-traditional sources of labor, and the role of a resort’s human resources department. 2. Discuss wage and salary administration issues at resorts. 3. Summarize employee productivity issues at resorts. 4. Describe the impact of labor unions on management- employee relations. 5. Identify and discuss laws governing employment and © 2010, Educational Institute 3
  • 4. Leisure Concept Variables in Resort Management • Nature of discretionary travel • International/domestic market mix • Social trends and lifestyles • Leisure/business market mix • Service demands in a leisure environment • Larger average party size • Recreation and sports • Entertainment © 2010, Educational Institute (continued) 4
  • 5. Leisure Concept Variables in Resort Management (continued) • Spa amenities • Multiple dining options • Higher staffing ratios • Seasonal employment • Climatic conditions and seasonality • Logistics in one-off locations • Seasonal packaging © 2010, Educational Institute 5
  • 6. Elements of an Organization Chart • The division of responsibilities among individuals and between groups. • The grouping or departmentalization of work according to functions, specialization, tradition, process, location, time, etc. • The chain of command by levels of authority and formal channels of communication. • The number of layers of management in the organizational pyramid or structure. • The distinction between line and staff roles, sometimes represented by solid or dotted lines between cells on the chart. © 2010, Educational Institute 6
  • 7. Variables Affecting Employee Motivation • Characteristics of the individual employee • Characteristics of the job • Relationships among individuals • Group dynamics • Environment of the workplace • Technological considerations • Economic forces • Societal values within the community • Power of the state versus the individual • Management behavior • Leadership influences • Specific contingencies and situations © 2010, Educational Institute 7
  • 8. Employee Assistance Programs and Incentives • Recognition programs for outstanding company service and individual achievements • Recreational and social activities for employees • High-quality employee canteen • Periodic review of employee sentiments about the workplace and working conditions • Counseling programs for job-related and personal problems © 2010, Educational Institute (continued) 8
  • 9. Employee Assistance Programs and Incentives (continued) • Assistance to ease relocation and transfer problems • Opportunities to participate in decisions that have a bearing on the employee’s work • Policy of promoting from within • Career development and continuous training programs • Profit-sharing, bonuses, or related incentives tied to performance © 2010, Educational Institute 9
  • 10. Entities with Whom a Resort’s Management Should Develop Relationships • Owners • Guests • Union representatives • Business community • Travel distributors • Tenants • Local representatives • Local politicians © 2010, Educational Institute (continued) 10
  • 11. Entities with Whom a Resort’s Management Should Develop Relationships (continued) • Lodging associations, restaurant associations, state/local convention and tourism bureaus • Nearby universities or colleges with hospitality management of culinary programs • Communications/media • Suppliers and service providers to the resort © 2010, Educational Institute 11
  • 12. Formula for Employee Turnover (Number of Separations ÷ Number of Employees) × 100 • • Moderate employee turnover in resorts = 20–30 percent • High employee turnover in resorts = 31–50 percent © 2010, Educational Institute 12
  • 13. Basic Questions for a Job Analysis • What are the tasks to be performed? • How should each task be performed? • How often is each task performed? • How long (on average) does each task take to complete? • What equipment and materials are needed to do the job? © 2010, Educational Institute 13
  • 14. Information Included in New Employee Orientation • General introduction: job responsibilities, relationship of the job to the total objectives of the organization, the resort’s owners, history of the resort, and future plans of the resort. • Pay: rate of pay, payday, shift differentials, deductions from pay, and frequency of pay rate reviews. • Benefits: group insurance programs, holidays, vacation time, sick leave, tuition aid (if available), recreational and social facilities and clubs, resort facilities privileges (if any), and other employee programs. © 2010, Educational Institute (continued) 14
  • 15. Information Included in New Employee Orientation (continued) • Employment conditions: hours, required clothing, identification cards, parking, employee cafeteria and meal periods, and reporting absences and injuries. • Human relations on the job: importance of cooperation, formal communication, guest-employee contacts, and public relations. • Introduction to the job: introduction to the supervisor and fellow employees, tour of the department and possibly the entire resort, location of smoking and restroom areas, location of bulletin boards, assignment of an “advisor” or “buddy,” and information on how to © 2010, Educational Institute (continued) 15
  • 16. Information Included in New Employee Orientation (continued) • Rules and regulations: fire and safety regulations, rules of conduct, and formal complaint and grievance procedures. • Job instruction: initial training meetings, job instruction by the supervisor, instruction by fellow employees, and job performance evaluation and review. • Follow-up: questions regarding pay and benefits, working conditions, job performance, explanations of opportunities for advancement, and explanations of grievance procedures. © 2010, Educational Institute 16
  • 17. Four Training Program Goals 1. To create service awareness and an understanding of the importance of quality standards and consistency in rendering service to guests. 2. To build employee morale, confidence, professionalism, and loyalty to the organization. 3. To instill the desire to maintain and improve existing skills, aptitudes, and capabilities. 4. To engage all employees and staff in environmental awareness and conservation practices. © 2010, Educational Institute 17
  • 18. Formal Training Program Format 1. Identify the ideal set of skills, attitudes, and knowledge needed for the job. 2. Do a training needs assessment based on deficiency gaps identified by comparing current employees’ performances with the ideals identified during Step 1. 3. Determine the training time required to develop optimal proficiencies. 4. Design a course of training. 5. Specify the resources required—funding, space, materials, equipment, etc. © 2010, Educational Institute (continued) 18
  • 19. Formal Training Program Format (continued) 1. Prepare the trainees. 2. Select the trainers (or qualify them through “training the trainer” courses). 3. Schedule and conduct the training. 4. Do follow-up evaluations to measure training effectiveness. © 2010, Educational Institute 19
  • 20. Five-Step Process for Project Resolution • Define the targeted project. • Measure from the baseline. • Analyze date to ascertain the root cause of the problem. • Improve by pilot-testing a solution before permanent adoption. • Dashboard monitor the solution to ensure sustainability. © 2010, Educational Institute 20
  • 21. Five Assumptions of a QA Program • Management approach. Employees should consult the person who dos the job if they have questions about how to do a job properly. • Communication. Management should provide employees with a mechanism of channel for speaking freely on problems that hinder profitability or hurt guest and employee relations. • Problem-solving. Group problem-solving is demonstrably more effective than individual problem-solving. (continued) © 2010, Educational Institute 21
  • 22. Five Assumptions of a QA Program (continued) • Costing-out solutions. QA task teams must be able to demonstrate to management the cost of problems under discussion and the cost of potential solutions. • Training. The foundation of the QA program is the development of job standards with employee involvement and the use of these standards to train and evaluate employees. © 2010, Educational Institute 22
  • 23. Productivity Indexes Output per Worker-Hour = Output Index ÷ Worker-Hours Index Labor Cost Percentage = Cost of Labor ÷ Gross Resort Receipts © 2010, Educational Institute 23
  • 24. Basic Instruments of an Employee File • Written job description • Quantitative standards • Qualitative standards • Specific objectives • Incident file • Performance reviews • Personal history records © 2010, Educational Institute 24
  • 25. Reasons Given by Employees for Wanting Union Representation • Employees have only minimum information about the company, and feel insecure about their jobs. • Managers are inconsistent in setting or enforcing policies and rules. • Managers are one-sided in dealing with complaints, always favoring the company instead of getting all the facts. • The competition offers the same or better wages and benefits. • Poor working conditions. © 2010, Educational Institute (continued) 25
  • 26. Reasons Given by Employees for Wanting Union Representation (continued) • Supervisors play favorites instead of ensuring fairness to all. • Changes are made by the company without first asking employees for their opinions. • Discrimination on the basis of age, ethnicity, or gender exists within the organization. • Managers have not followed through on promises of pay raises, vacations, or better uniforms or working conditions. © 2010, Educational Institute (continued) 26
  • 27. Reasons Given by Employees for Wanting Union Representation (continued) • Employees believe there is safety in numbers with regard to attempting to settle their grievances. • Employees want to retaliate for past grievances. • Employees think they will get more pay for less work. • Employees buy the union’s promises of a better life, better pay, better benefits, and job security. • Employees have security concerns from witnessing increasing amounts of work being outsourced. © 2010, Educational Institute 27
  • 28. EEOC Regulation Focus Points 1. Effective fair employment distribution with respect to race and sex in all areas of employment. 2. Ending discrimination against women, minority groups, the elderly, and the physically handicapped in all areas of employment. © 2010, Educational Institute 28
  • 29. Workers’ Compensation System Primary Objectives 1. Provision of adequate compensation (including medical care) to injured workers. 2. Encouragement of safety in working conditions. 3. Achievement of administrative efficiency relative to the insurance system itself. © 2010, Educational Institute 29