Monday, October 25, 2010

Environmental Changes in Hospitality Industry

Introduction

Taking the one philosophical view, “change is the only thing permanent”. From this philosophy, the business can bring prosper and growth when right change were introduced with the right process and the right approach. The change is always applicable into different entities and it should be always pointing for the right thing. in this study, the changes are taken in the hospitality industry. Together with this is the effect on the employment relationship inside the organization.

Environmental Changes

There are two types of environmental features of hospitality industry. The two types can really affect the performance of an industry to call for a massive change and redefining the industry.

1. External Changes

The external is far from the business industry but can greatly affect the whole community of business sectors. And these external changes are enumerated.

a. Market conditions such as (but not limited to) the property boom and the current property value decreasing availability of plots, inflation and tax rates.

b. Fewer successions in family businesses (hotels, leisure attractions…)

c. Climate change

d. From brand, city, destination loyal to un-loyal

e. Click and go tourism (e.g. intense advertisement)

f. Governmental & environmental restrictions

g. New destinations in other place and the increasing low-cost travel providers

h. Rising costs of marketing and decreasing responses of target groups

i. Fierce competition in tourism destinations and services.

2. Internal Changes

The undying partner of external part, internal changes also take into action. The change takes inside the management or the organization and somehow tends to make an alarm for a change.

a. Managerial lickeages, like robbing the ideas without the consent of the other, most popular is the competitor.

b. Management reformation that happens when one person leave the company and the company needed him most but they have to train another to place him.

c. Personal motivations.

d. Growth/loss of the business

e. Miscommunication

f. Adaptation of new technology and innovation

Reasons for a Change

As the hospitality industry has evolved from individually owned and developed enterprises to public global corporations, management strategies have also changed. While we still see the entrepreneur launching new brands and service concepts, the focus is on revenue per available customer and earnings per share. The industry and management strategies remain dynamic. Macro trends such as labor availability, new technologies, economic ups and downs, terrorism and security, and globalization, to name a few, are and will continue to have substantial impact on management strategies. Another reason for such changes in hospitality industry is because of the weak show of the industry in the economy.

Impact of Changes

The impact of changes in the employer-employee relationship will create a domino effect if the issues, whether external or internal, are not solved. There are various instances that if the management didn’t find the solution to the down sloping performance of the business will craft adjustments such as, lessening the employee hours, benefits, or the worst losing the workers. When this happened then there is a war between the management team and the employees.

If the management makes its way to formulate a solution by not losing the employees there are chances that it will make a slow growth in the business. Thus, the slow process in the business can greatly affect the functions of each workers and the role of interacting to workers must improve by the management. The management must try to make the employee understand the business’s position in the economy.

The profound changes occurring in the world of work, and particularly in the labour market, have given rise to new forms of relationship which do not always fit within the parameters of the employment relationship. While this has increased flexibility in the labour market, it has also led to a growing number of workers whose employment status is unclear and who are consequently outside the scope of the protection normally associated with an employment relationship. In 2004, the Director- General of the International Labour Office described the challenge as follows:

Ø The State has a key role to play in creating an enabling institutional framework to balance.

Ø The need for flexibility for enterprises and security for workers in meeting the changing.

Ø Demands of a global economy ... At the heart of national policies to meet the social.

Ø Challenges of globalization are a dynamic strategy for managing labour market change.

The management should not worry in keeping the employment relationship alive because there are many suggestions to it and they are the following:

Ø The management should appoint a champion among the employees to facilitate the drive in change process. Give a champion mandate and resources to work across departments. Provide the facilitator who has time to do the leg-work.

Ø Ensure new linkages incorporated into daily operations by identifying and working with all staff that need to interact with the local entrepreneur or partner to adapt staff roles and, if necessary, operational logistics.

Ø The motivation on staffs and dealing with resistance by anticipating resistance among those for whom change creates work bringing staff on board through training, conferences, awards and other communication mechanisms.

Ø Bringing an outsider to help move things on. Identify an external agent who can bring impartial expertise and fresh ideas.

Ø Interating linkages approach into the values and brand by adapting management expectations, customer information and branding.

Conclusion

Aside from the call of changes in the development of labor force, the technology also affects it. The business is never been a business without the employees. Sometimes the employees are the essential characters to bring the business’s success. The important thing to make the business alive is to keep the communication between the employer and their employee stable. The hospitality industry contributes in the percentage of the economy and sometimes make as the biggest factor in promoting the county’s products and services.

References:

Management Site and Management Network (2007) External Changes in Hospitality Industry. Retrieved August 14, 2009 from, http://www.replytoall.nl/reputatie-management/external/
Nykiel, R., (2005) Hospitality Management Strategies. Retrieved August 14, 2009 from, http://wps.prenhall.com/chet_nykiel_hospitalitymgt_1/

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