1. Copyright © 2010 by John Wiley & Sons, Inc. All Rights Reserved

2. MANAGEMENT AND SUPERVISION Differences between management and supervision include: – Management is concerned with the totality of the organization – Supervision functions at the operating level – working directly with employees as they do their work

3. THE ECONOMIZING SOCIETY Three means of organizing a society and dealing with its economic problems Tradition – The wisdom of experience Command – Imposed authority Market System – Emphasizes individuals’ free choice

4. THE MANAGERIAL REVOLUTION Frederick Taylor and the scientific management movement – Work-process focus: Careful study of work to be done results in increased worker productivity Henri Fayol – Administrative management

5. HOSPITALITY PIONEERS E. M. Statler Vernon and Gordon Stouffer Howard Johnson Harland Sanders Ray Kroc Kemmons Wilson Sam Barshop

6. HOSPITALITY PIONEERS E. M. STATLER Recognized the national market for quality accomodations Was an innovator in offering a bath in every room Created the first centralized corporate staff Enforced uniform standards Harnessed the power of the middle-class market

7. HOSPITALITY PIONEERS VERNON AND GORDON STOUFFER Introduced ideas that transformed the restaurant industry Offered fringe benefits such as paid vacations (unheard of at the time) Developed a set of recipes that resulted in: – Standard products – Lower costs – Lower prices

8. HOSPITALITY PIONEERS HOWARD JOHNSON Envisioned the notion of a restaurant with a standard appearance, menu, and quality standards across the country Was the first to launch a successful restaurant chain through franchising Enforced standards not through legal force but through the compelling common interest of the franchisees

9. HOSPITALITY PIONEERS HARLAND SANDERS Developed a method of frying chicken quickly allowing for small batches and ensuring freshness and flavor Developed a batter that consisted of a “secret recipe of herbs and spices” Coined the catchy phrase “finer lickin’ good” to promote the food offerings Also used franchising to expand quickly

10. HOSPITALITY PIONEERS RAY KROC Identified a method to produce a very limited menu efficiently and uniformly Built a growing organization of franchisees who in turn contributed to new product development Used marketing to make the name and logo globally recognizable

11. HOSPITALITY PIONEERS KEMMONS WILSON Saw a need for lodging properties for both business people and vacationing families First to apply the idea of franchising to the lodging industry—through his Holiday Inns Enlisted local people in the various locations to secure capital for the new hotels

12. HOSPITALITY PIONEERS SAM BARSHOP Developed the midscale limited-service hotel concept—La Quinta Identified the benefits of not including food service but rather having a leased restaurant adjacent to the hotel Used price as competitive advantage

13. WHAT IS MANAGEMENT? What is Our Business? Who is the customer? What is the value to the customer? What will our business be? What should our business be?