RUES Hotel Management & Consulting

Effective Management

Part I. Establishing Effective Management

Every hotel is different, and the management style must be tailored to the operation. The formula that succeeded at the former El Salvador Sheraton was based on effective use of human resource capital, team spirit, and “management by objectives, results and example.”

Managing Human Resources
Human resources represent the most important capital in the hospitality industry. Fortunately, the former Sheraton had these resources available. The Sheraton employees were very loyal. Some who lived in areas of conflict had to walk for more than three hours to reach the city, where they could take public transportation to the hotel.

El Salvador did not have a hotel school, so hospitality education was unavailable for our employees. In fact, 80 percent of our 250 employees had completed an average of six years of education. This lack of training and education was an important consideration when planning on the training for the hotel’s workers.

I have seen foreign department heads, for example, executive chefs – in the 70’s – who could handle their staff. The staff went on strike, with the result that the chefs had leave the country. The main problem was lack of communication and adaptation. Personnel management was improved by the four fundamental functions: “COMMUNICATION, TRAINING, RECOGNITION, and MANAGEMENT BY EXAMPLE.

Communication
Communication, which is an essential function in modern management, serves a dual role when there is no professional education available: to explain the particulars of the job and to teach its proper method of completion. 

The lack of professional management at the hotel for the five years prior to my arrival had resulted in a communication breakdown. Employees were given orders, without and description of what was expected and without follow-up.

To reopen communication between management and the staff, I held weekly meetings with department heads and monthly meetings with the entire staff. Activity goal programs were developed, discussed, reviewed, and evaluated during the sessions. Activity goal plans were presented in a format that addressed who would do each activity, how, and when. Every department regularly received information and function sheets emphasizing that “every employee is a potential salesperson.”

Training
Without a formal professional education system, such as a hotel school, work and training on-the-job in the same hotel is the solution. In difficult situations, such as war economy, the General Manager, also has to be concerned about operation and training. He has to be a good leader and a true professional. The foregoing confirms the saying that “there are no bad employees, only a bad manager.”

When I arrived at the former Sheraton, there was no management system. The basic elements of planning, innovation, supervision, and leadership were missing. The work had become routine on the lowest level of productivity, and indifference and negligence were common among the employees, who occupied themselves socializing with each other. Inefficiency and low productivity were hurting both the financial situation and guest satisfaction.

I immediately established participative-management and training programs on all department levels. Special courses on middle management were offered periodically, as well as English classes for all employees. Important events in the banquet department were preceded by on-the-job training, which included actual rehearsal for the personnel involved. The results of this on-the-job training reinforced my belief that practical training is essential for excellent service. The improvement in our service resulted in more business, and our employees worked harder as there was more work. They were proud to be part of a successful and professional workplace. The training we offered prepared employees for promotion from within, and the opportunity to move up the career ladder at the hotel, which proved to be a strong motivator.

Recognition
There was little cooperation between employees when I first arrived at the hotel. This problem could be attributed to general discontent on all levels. Employees were discontented because they were criticized freely for the shortcomings and there was no recognition of their positive efforts. Employees should be praised for a job well done. This can be done by means of a personal thank-you letter, a notice on the employee bulletin board, awards for “employee of the month,” or a kind word of appreciation of the manager.

If criticism is warranted, it must be based exclusively on professional standards and the facts of the case and must not be conducted in front of fellow employees and guests. I immediately applied these principles in all dealings with the hotel’s employees. Discontent also arises when employees feel that management does not care about them. I initiated an employee-benefit program that demonstrated my care and concern for all employees in the hotel. The program included: 

·  The formation of an Alcoholic Anonymous group in the hotel;
·  Red Cross first-aid courses, 2-day seminars in groups of 20, exclusively for all the employees of the hotel;
·  Vocational courses, both for department heads and employees, on human relations, preventive maintenance, fire protection and  fire drill, and others;
·  A soccer program that included both training and competition with other teams outside the hotel (soccer was the favorite recreational activity among our employees).

These efforts conveyed management’s concern and affection for the hotel’s employees, and they resulted in greater communication, interest, and cooperation. Our employees’ change in attitude was reflected in their treatment with guests. The level of service was greatly improved, resulting in satisfied guests and higher profitability.

Management by example and results
Leadership and discipline are an integral part of management by example. When the manager demonstrates high principles of business ethics, the hotel is defined by these practices and the employees follow the manager’s example. Moreover, adherence to these principles wins the employees’ respect and generally generates a positive response in the hotel’s work force.

The absence of professional management at the former Sheraton in the five years prior to 1983 resulted in poor attitude among the employees and negative operating results. Responding to management by example, our employees changed their attitude and followed management policy. The hotel became profitable, and the working environment was so greatly improved that the employees showed no interest in unionizing although most enterprises in El Salvador were unionized at the time.