Hospitality Operations Analysis Ch 07: Assessing and Rewarding

1. Hospitality Operations AnalysisCh 07: Assessing and Rewarding Dr. Edward A. Merritt The Collins Endowed Chair of Management California State University (Cal Poly Pomona)

2. Importance of Feedback (146) • Three mechanisms: • Feedback from customers • Conducting service audits • Feedback to managers and service providers • Rewarding and recognizing quality service behaviors

3. Feedback Comprehensive customer feedback program • Variety of sources • Proactive • Go out and get info • Seek customer opinion—likes and dislikes • Solicit customer suggestions

4. Continued Effective Customer-Feedback Systems • Make it easy for customers to share specific and measurable info • Demonstrate through your actions that you are responsive to what they are saying

5. Continued Obtaining measurable feedback • Ask specific one-on-one questions • “Is your steak cooked properly?” • “Did any part of your stay disappoint?” • On-site survey forms • Clearly written • Scalar response 1-5 • 3-5 Vital service components

6. Continued • On-site suggestion boxes • Survey or open-ended • Mail or phone surveys • Customer exit surveys • Focus groups • Shopper services • Toll-free phone number

7. Continued • Web site • Develop a relationship • Know names and interests • Observe their behavior • Listen

8. Continued Demonstrating that you respond • Respond on the spot—fix it now • Empower service providers • Initiate a newsletter • Communicate survey results

9. The Service Audit (153) A structured mechanism for IDing and measuring customer success and failure • Done by an employee of organization • Frequency = once per month • Steps • Create a form (Fig 7-3/4 pg 154-57) • Indicators vary by operation • Scalar range to ensure measurability • ___ Place to record rating

10. Continued Form uses and misuses • Good for entire operation, a team, or individual • Use as a basis for discussion and analysis, and not for laying blame • Use variety of raters and average • Catch someone doing something right!

11. Positive Reinforcement (158) According to principle, behavior is a function of its consequences • Positive consequences tend to strengthen and encourage • Focuses attention on desired behaviors • Positive sense of direction

12. Feedback to Service Providers (159) Three factors critical to success • Focuses on specific quality service behavior • What they do, act, and say • Follows principle of no surprises • Sharing info with entire team • Facilitates mutual give and take of ideas between managers and service providers • Two way communication

13. Continued Charting and graphing performance • Visual presentation is easy to see • Chart or graph results are clear • Charts make a dramatic statement • Charts clarify service goals • Chart or graph helps set common direction

14. Measures of service excellence $$ Sales Item sales Individual sales # guests Occupancy rates Service audit scores Shopper scores Customer surveys Letters positive Letters negative Continued

15. Continued Periodic performance appraisal • Frequency = every 3-6 months • Emphasis on specific, demonstrated behavior • Emphasis on positive • Action plan for improving weaknesses • Mutually agreed goals and objectives • Criteria based on quality service standards

16. Recognition and Rewards (165) Steps • Establish quality service standards • Establish a measurement system • Institute a reward system • Ensure that this is a loop system which is ongoing throughout the organization at all levels • Refer to list on page 166

17. What Next? (167) Develop a system of continuous quality improvement within your organization • Small improvements over time = huge transformations

18. End of Chapter 07