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Chapter 15 Managing in the Global Hotel Industry.

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Presentation on theme: "Chapter 15 Managing in the Global Hotel Industry."— Presentation transcript:

1 Chapter 15 Managing in the Global Hotel Industry

2 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ Some reasons hoteliers may work outside the United States: The Hotel Industry Is Global No local staff is qualified for the position to be assigned. Local staff members are being trained for positions that will replace the need for an international manager, but they are not yet qualified for these positions. Technical expertise may need to be transferred to the foreign location. An employer desires to instill global perspectives and/or understanding in selected management employees or the company’s international components. There is an interest in obtaining tighter administrative control over a foreign division. There are property start-up, operating, or other issues that require long- term (more than a year) on-site management direction to properly resolve the concerns.

3 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ Developing Country: A low- or middle-income country in which most people have a low standard of living and access to fewer goods and services than do persons in countries with higher income levels. The Hotel Industry Is Global (cont.) Developed Country: A country whose income per person is high by world standards and that enjoys the higher standard of living that the wealth makes possible. Developing vs. Developed Country

4 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ A local citizen is more likely to be familiar with local business environments and cultures and can, therefore, be more effective in managing the operation. There will be lower payroll and relocation costs because, at the least, transportation and subsistence costs will not likely be necessary. Improved relationships between the hotel group and the host country because the former is helping the foreign government to improve its labor force. Greater management continuity and employee morale because local citizens recognize they have opportunities for promotion to high levels of management within the hotel. Benefits of placing local citizens in top management positions: The Hotel Industry Is Global (cont.)

5 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ A citizen of one country who is employed in another country. The Hotel Industry Is Global (cont.) Expatriate Hotel Manager

6 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ Some countries have unstable government structures Fast-changing leadership and societal turmoil Personal harm and wide-ranging wars Political Environment Managing and Living in Another Country Economic Issues Diverse tax laws Exchange rates Inflation Cultural Factors Understanding a location’s “national culture” Culture shock Examine the “commuting to work” photo in the text

7 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ No You have reasonable expectations about the future You have positive motivations for your interest in global assignment You have the skill for successful job performance HR skills to manage those different than you Previous experience living/working in another country Family will support and adapt to life in another country Maybe You will listen to and try to understand others You understand the country’s national culture You know the country’s language You want to live in another country You are able to adapt to change YesPersonal Influence Factor Checklist of Personal Influences That Impact Expatriate Success Personal Factors in Expatriate Manager’s Success

8 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ Other Factors in Expatriate Manager’s Success: Transitional Training Programs Before- Arrival Training Cultural awareness Language training Business practices Business and social protocols Basic background information After- Arrival Training Answering questions about new cultures Overcoming the emotion of being “homesick” Exchanging old methods/ideas for new ones that may be more valuable and effective in a new culture

9 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ Other Factors in Expatriate Manager’s Success: The Expatriate in the New Culture Hotel Employment Concerns Job-related training Social support Logistical advice Compensation Basic background information Nonwork Factors Living arrangements Transportation Nonwork social interactions

10 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ Communication is critical: – Manage within a work environment that anticipates and tolerates errors. – Use written communication. – Use the simplest language whenever possible. – Use pictures and graphics whenever possible. And Now the International Assignment Begins!

11 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ Communication is critical (cont.): – Be aware of information sent internationally. – Be respectful of culture and the impact that it has on business customs and the language of business. – Be aware of potential cultural “hot spots.” – Go out of the way to assure that employees understand. And Now the International Assignment Begins! (cont.)

12 Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ Empathy 2.Respect 3.Interest in other cultures 4.Flexibility 5.Tolerance 6.Initiative 7.Self-esteem Requirements for expatriate management success: And Now the International Assignment Begins! (cont.)


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