© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Chapter 19 Control

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition After Reading and Studying This Chapter, You Should Be Able to: Define control Give reasons why control is important Describe the four-step control process Distinguish among the three types of control Explain the important financial controls Describe the qualities of an effective control system Outline the contemporary issues in control

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Control Defined Management function that provides information on the degree to which goals and objectives are being accomplished Monitoring of activities Taking corrective action

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Importance of Controlling Final link to the management functions of:  Planning  Organizing  Leading

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Figure 19-1 Relationship between Controlling and the Other Management Functions

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Control Process Setting standards Measuring actual performance Comparing actual performance against the standard Taking managerial action to correct deviations or inadequate performances

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Setting Standards Quality Quantity Finances Time

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Measuring Personal observation Statistical reports Oral reports Written reports

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition MBWA “Management by Walking Around” Personal observation Direct interaction with employees Exchanging information

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Results We Measure Guest satisfaction Labor costs Food and beverage costs Employee satisfaction Room rates Bed sheets Energy costs Insurance Labor turnover Etc.

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Taking Managerial Action Correct actual performance Immediate corrective action Basic corrective action

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Types of Control Feedforward control Concurrent control Feedback control

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Figure 19-3 Three Types of Control

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Operational Financial Controls Budgets Income statements Zero-based budgeting

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Qualities of an Effective Control System Accuracy Timeliness Economy Flexibility Understandability Reasonable criteria Strategic placement Emphasis on exceptions Multiple criteria Corrective action

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Contingency Factors in Control Size of the organization Operational complexity Degree of decentralization Importance of the activity

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Adjusting Controls for Cultural Differences Foreign operators tend to:  Be less controlled directly by the home office  Have a tendency to formalize controls  Generate extensive formal reports  Rely on the power of Information Technology

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Contemporary Issues Workplace privacy Employee theft Workplace violence

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Trends in Control Use of technology Generation of quicker results Hand-held inventory devices