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Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
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Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
Introduction.to.management.in.the.hospitality.industry.10th.edition
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  • 1. This page intentionally left blank
  • 2. I N T R O D U CT I O N TO M A N A G E M E N T I N TH E H O S PITALITY I N D U STRYFFIRS.indd i 23/12/10 7:28 PM
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  • 4. I N T R O D U CT I O N TO M A N A G E M E N T IN THE H O S PITALITY I N D U STRY Tenth Edition C L AY TO N W. B A R R O W S TO M P O W E R S D E N N I S R EYN O L D S Chair and Professor Professor Emeritus Ivar Haglund Whittemore School of Business School of Hospitality and Distinguished Professor and Economics Tourism Management School of Hospitality Business University of New Hampshire University of Guelph Management Washington State University John Wiley & Sons, Inc.FFIRS.indd iii 23/12/10 7:28 PM
  • 5. This book is printed on acid-free paper. Copyright © 2012, 2009, 2006 by John Wiley & Sons, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www .wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other com- mercial damages, including but not limited to special, incidental, consequential, or other damages. Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year. These copies are licensed and may not be sold or transferred to a third party. Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and a free of charge shipping label are avail- able at www.wiley.com/go/returnlabel. Outside of the United States, please contact your local representative. For general information on our other products and services, or technical support, please contact our Customer Care Department within the United States at 800-762-2974, outside the United States at 317-572-3993 or fax 317-572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our Web site at http://www.wiley.com. Library of Congress Cataloging-in-Publication Data ISBN: 978-0-470-39974-3 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1FFIRS.indd iv 23/12/10 7:28 PM
  • 6. CONTENTSPreface xixP A R T O N E : P E R S P E C T I V E S O N C A R E E R S I N H O S P I TA L I T Y 1CHAPTER 1 THE HOSPITALITY INDUSTRY AND YOU 2 What Is Hospitality Management? 4 Case History 1.1: A Former Student’s Unexpected Change 5 The Manager’s Role in the Hospitality Industry 5 Why Study in a Hospitality Management Program? 7 Employment Opportunities Planning a Career 10 The Meaning of Work Employment as an Important Part of Your Education 12 Profiting from Work Experience ■ Learning Strategies for Work Experience Getting a Job 16 Getting in the Door ■ Learning on the Job ■ Other Ways of Profiting from a Job Industry Practice Note 1.1: An Employer’s View of Job Placement—Hyatt 18 Employment at Graduation 20 Global Hospitality Note 1.1: Career Opportunities Overseas 21 Goals and Objectives: The Strategy of Job Placement 22 The Outlook for Hospitality 25 The Effects of September 11, 2001 ■ Polarization in Hospitality Service Organizations ■ Accelerating Competition ■ Service Is the Difference ■ Value Consciousness ■ Technology ■ Empowerment ■ Diversity ■ Concern with Security ■ Concern with Food Safety and Sanitation ■ Sustainability Industry Practice Note 1.2: Leading the Charge in Going Green—Orchard Hotels 30 Globalization 32
  • 7. vi Contents Summary 33 Key Words and Concepts 33 Review Questions 33 Internet Exercises 34 Notes 35CHAPTER 2 FORCES AFFECTING GROWTH A N D C H A N G E I N T H E HOSPITALITY INDUSTRY 36 Managing Change 38 Demand 38 The Changing Age Composition of Our Population Industry Practice Note 2.1: Demographics in Practice 41 Diversity and Cultural Change Global Hospitality Note 2.1: As North America Ages, Some Parts of the World Are Getting Younger 45 Industry Practice Note 2.2: Advocacy for the Advancement of Women in Food Service 49 Industry Practice Note 2.3: Is the Middle Class Shrinking? 52 Supply 54 Land and Its Produce ■ Labor Workforce Diversity 58 The Impact of Labor Scarcity 59 Summary 60 Key Words and Concepts 61 Review Questions 62 Internet Exercises 62 Notes 64PA RT T W O: F O O D S E R V I C E 65CHAPTER 3 THE RESTAURANT BUSINESS 66 The Varied Field of Food Service 68 The Outlook for Food Service
  • 8. Contents vii The Restaurant Business 72 The Dining Market and the Eating Market 73 Dining Well ■ The Eating Market and Its Dynamics Contemporary Popular-Priced Restaurants 80 Quick-Service Restaurants Industry Practice Note 3.1: Subway and Enterpreneurship 84 Fast-Casual Restaurants ■ Midscale Restaurants ■ Casual Restaurants Case History 3.1: Quark’s Restaurant Serves Earthlings Too 98 High-Check-Average Restaurants Global Hospitality Note 3.1: Culinary Preparation 100 Restaurants as Part of a Larger Business 100 Restaurants in Retail Stores ■ Restaurants in Shopping Malls Summary 102 Key Words and Concepts 103 Review Questions 103 Internet Exercises 104 Notes 105CHAPTER 4 RESTAURANT OPERATIONS 106 Restaurant Operations 108 The Front of the House ■ The Back of the House Industry Practice Note 4.1: Research Chefs Association 116 The “Office” ■ General Management Making a Profit in Food Service Operations 121 Increasing Sales ■ Reducing Costs Keeping the Score in Operations: Accounting Statements and Operating Ratios 124 Cost of Sales ■ Controllable Expenses ■ Capital Costs Life in the Restaurant Business 128 Salary Levels Summary 129 Key Words and Concepts 129 Review Questions 130 Internet Exercises 130 Notes 131
  • 9. viii ContentsCHAPTER 5 RESTAURANT INDUSTRY ORGANIZATION: CHAIN, INDEPENDENT, OR FRANCHISE? 132 Chain Restaurant Systems 134 Marketing and Brand Recognition ■ Site Selection Expertise ■ Access to Capital ■ Purchasing Economies ■ Control and Information Systems ■ New Product Development ■ Human Resource Program Development ■ Chains’ Market Share Independent Restaurants 142 Operating Advantages ■ Marketing and Brand Recognition ■ Site Selection ■ Access to Capital Industry Practice Note 5.1: Working with the SBA 145 Industry Practice Note 5.2: Why Go Public? 146 Purchasing Economies ■ Control and Information Systems ■ Human Resources ■ The Independent’s Extra: Flexibility ■ The Independent’s Imperative: Differentiation ■ Between Independent and Chain Franchised Restaurants 151 The New Franchisee ■ Continuing Franchise Services Industry Practice Note 5.3: Interested in Becoming a Franchisee? 155 The Franchisee’s View ■ The Franchisor’s View Industry Practice Note 5.4: Rosenberg International Center of Franchising 161 Franchisor-Franchisee Relations ■ Franchising: A Middle Way Summary 163 Key Words and Concepts 163 Review Questions 164 Internet Exercises 164 Notes 166CHAPTER 6 COMPETITIVE FORCES IN FOOD SERVICE 168 Competitive Conditions in Food Service 169 The Marketing Mix 172 Product Case History 6.1: Finding the Proper Marketing Mix—Shakey’s Pizza 173 Price ■ Place–and Places ■ Promotion Industry Practice Note 6.1: The Wealthiest Consumers 183
  • 10. Contents ix Competition with Other Industries 186 Convenience Stores ■ Supermarkets ■ The Home as Competition Summary 190 Key Words and Concepts 191 Review Questions 191 Internet Exercises 191 Notes 193CHAPTER 7 ON-SITE FOOD SERVICE 194 Comparing On-Site and Commercial Food Services 196 Global Hospitality Note 7.1: International Perspectives 199 Self-Operated Facilities 199 Managed-Services Companies 200 Pros and Cons of Managed Services Business and Industry Food Service 202 Industry Practice Note 7.1: Measuring Guest Participation 205 College and University Food Service 206 College Students as Customers Health Care Food Service 210 The Dietetic Professional ■ The Dietetic Technician ■ The Dietary Manager ■ Health-Care Food Service Department Organization ■ Trends in Health Care Food Service School and Community Food Service 217 The School Food Service Model ■ Contract Companies in School Food Service ■ Trends in School Food Service ■ Service Programs for the Aging ■ Community-Based Services ■ Senior Living Centers and Communities Other Segments 226 Recreation ■ Correctional Facilities ■ Private Clubs ■ Transportation Vending 229 Summary 232 Key Words and Concepts 233 Review Questions 233 Internet Exercises 234 Notes 236
  • 11. x ContentsCHAPTER 8 ISSUES FACING FOOD SERVICE 238 Consumer Concerns 239 Health and Wellness ■ Fast Food and a Hectic Pace ■ Nutritional Labeling Industry Practice Note 8.1: Defining Health Claims 247 Food Safety and Sanitation ■ Alcohol and Dining Food Service and the Environment 252 Thinking About Garbage from Dump to Waste Stream ■ The Greening of the Restaurant Industry Technology 259 Enhancing Customer Service ■ Technology in the Back of the House Industry Practice Note 8.2: ESP Systems 262 Technology, the Internet, and Food Service Marketing ■ Technology and Management Summary 265 Key Words and Concepts 266 Review Questions 267 Internet Exercises 267 Notes 270PA RT TH R E E: LO D G I N G 271CHAPTER 9 LODGING: MEETING GUEST NEEDS 272 The Evolution of Lodging 274 The History of Lodging ■ The Evolution of the Motel ■ The Motor Hotel Industry Practice Note 9.1: Europe: A Continent of Lodging Distinctiveness 277 Classifications of Hotel Properties 278 Hotels Classified by Price ■ Hotels Classified by Function ■ Hotels Classified by Location ■ Hotels Classified by Market Segment Industry Practice Note 9.2: Trends in Spa Operations 286 Other Hotel Classifications Types of Travelers 289 Business Travelers ■ Other Segments International Travelers
  • 12. Contents xi Anticipating Guest Needs in Providing Hospitality Service 292 Industry Practice Note 9.3: Creativity Is Evident in Hotel Properties 293 Industry Practice Note 9.4: The Hotel of the “Not So Distant” Future 295 Service, Service, Service 296 Employees as the Internal Customers Industry Practice Note 9.5: Hotel Rating Services 298 Summary 303 Key Words and Concepts 305 Review Questions 305 Internet Exercises 306 Notes 307CHAPTER 10 HOTEL AND LODGING OPERATIONS 310 Major Functional Departments 312 The Rooms Side of the House 314 The Front Office ■ Automation of the Front Office ■ Reservations and Yield Management ■ Housekeeping Industry Practice Note 10.1: Housekeeping 324 Telecommunications ■ Uniformed Services Staff Industry Practice Note 10.2: The Concierge 327 Security Hotel Food and Beverage Operations 330 Banquets ■ Food Production ■ Sanitation and Utility ■ Leased Restaurants Industry Practice Note 10.3: Pros and Cons of Outsourcing Food and Beverage Operations 335 Staff and Support Departments 335 Sales and Marketing ■ Accounting ■ Human Resources ■ Engineering Income and Expense Patterns and Control 339 The Uniform System of Accounts Entry Ports and Careers 342 Front Office ■ Accounting ■ Sales and Marketing ■ Food and Beverage ■ Owning Your Own Hotel
  • 13. xii Contents Summary 345 Key Words and Concepts 346 Review Questions 346 Internet Exercises 347 Notes 348CHAPTER 11 FORCES SHAPING THE HOTEL BUSINESS 350 The Economics of the Hotel Business 352 A Cyclical Business ■ Hotel Cycles and Financial Performance Industry Practice Note 11.1: Hotel Operations after Katrina 357 RevPAR ■ Hotels as Real Estate ■ International Hotel Development Industry Practice Note 11.2: Condo-Hotels as Mixed-Use Developments 363 Industry Practice Note 11.3: The Elements of the Hotel Real Estate Deal 364 Private Equity Investments ■ The Securitization of the Hotel Industry ■ The Hazards of Public Ownership Dimensions of the Hotel Investment Decision 371 Case History 11.1: Going Public: Some Good News and Some Bad 372 Financial ■ An Operating Business ■ Segmentation: For Guests or Developers? ■ Management Companies ■ Asset Management ■ Entrepreneurial Opportunities Summary 379 Key Words and Concepts 380 Review Questions 380 Internet Exercises 381 Notes 383CHAPTER 12 COMPETITION IN THE LODGING BUSINESS 386 The Conditions of Competition 388 A Fragmented Market ■ A Cyclical Market ■ Cost Structure ■ Securitization ■ Technological Revolution The Marketing Mix in Lodging 391 Competitive Tactics Product in a Segmented Market 393 Food Service ■ Other Services and Amenities
  • 14. Contents xiii Systemwide Services Industry Practice Note 12.1: Hotels Honored among World Business Hotels 403 Industry Practice Note 12.2: Franchisors-Franchisees: A Growing Team Approach 405 Price and Pricing Tactics 406 Yield Management Place—and Places 410 Location ■ Distribution Channels Industry Practice Note 12.3: Travel Intermediaries: Utell Hotels and Resorts 412 Promotion: Marketing Communication 416 Advertising in Mass Media ■ Advertising on the Internet ■ Sales Promotion Summary 420 Key Words and Concepts 421 Review Questions 421 Internet Exercises 422 Notes 423PA RT F O U R: TR AV E L A N D TO U R I S M 42 5CHAPTER 13 TOURISM: FRONT AND CENTER 426 The Importance of Tourism 427 Factors Affecting Travel and Tourism ■ Income Trends ■ Demographics and Travel Travel Trends 431 Global Hospitality Note 13.1: Public Anxiety and the Travel Industry 432 Mode of Travel ■ Trip Duration The Economic Significance of Tourism 435 Tourism and Employment ■ Publicity as an Economic Benefit The United States as an International Tourist Attraction 438 Measuring the Volume ■ Reasons for Growth of the United States as a Destination Businesses Serving the Traveler 440 Passenger Transportation ■ Channels of Distribution ■ Reservation Networks
  • 15. xiv Contents Noneconomic Effects of Tourism 448 Crowding ■ Favorable Noneconomic Effects Global Hospitality Note 13.2: Volunteer Tourism—or Voluntourism 452 Summary 453 Key Words and Concepts 454 Review Questions 454 Internet Exercises 455 Notes 457CHAPTER 14 DESTINATIONS: TOURISM GENERATORS 458 Motives and Destinations 460 Mass-Market Tourism 464 Planned Play Environments 465 Theme Parks ■ Themes ■ Scale ■ Regional Theme Parks ■ Themes and Cities Industry Practice Note 14.1: A Different Kind of Theme Park 472 Employment and Training Opportunities ■ Casinos and Gaming ■ Las Vegas ■ Atlantic City ■ Mississippi Gulf Coast Case History 14.1: Changes Come to Atlantic City 486 Other Markets ■ Casino Markets and the Business of Casinos ■ Casino Staffing Urban Entertainment Centers 490 Case History 14.2: The National Restaurant Association Restaurant Show 492 Shopping Centers ■ Zoos, Sanctuaries, and Aquariums Temporary Attractions: Fairs and Festivals 497 Case History 14.3: The New Orleans Jazz Fest 499 Natural Environments 500 On a Lighter Note 503 Summary 504 Key Words and Concepts 504 Review Questions 505 Internet Exercises 505 Notes 508
  • 16. Contents xvP A R T F I V E : M A N A G E M E N T I N T H E H O S P I TA L I T Y I N D U S T R Y 509CHAPTER 15 MANAGEMENT: A NEW WAY OF THINKING 510 Management and Supervision 512 The Economizing Society 513 The Managerial Revolution 514 Taylor: The Work Process Focus ■ Fayol: Administrative Management ■ Human Relations: Work as a Social Process ■ Implications for the Modern Hospitality Manager Management: A Dynamic Force in a Changing Industry 520 Statler: The First “National” Hospitality System ■ Stouffer’s Modern Management Techniques ■ The Building of Complex Hospitality Systems Case History 15.1: Where Does a Concept Come From? 527 What Is Management? 528 What Is Our Business? ■ In Business for Yourself? Summary 535 Key Words and Concepts 535 Review Questions 536 Internet Exercises 536 Notes 537CHAPTER 16 PLANNING IN HOSPITALITY MANAGEMENT 538 Why Study Planning? 540 Planning in Organizations 541 Case History 16.1: Planning on an Olympic Scale at ARAMARK 542 Some Planning Concepts Goal Setting 545 Characteristics of Well-Thought-Out Goals ■ Goal Congruence ■ Goals and Policies Planning in Operations 549 Strategic Issues ■ From Strategy to Tactics The Individual Worker as Planner 553 Planning as a Personal Process Long-Range Planning Tools 554 Return on Investment ■ Cost-Benefit Analysis
  • 17. xvi Contents Summary 558 Key Words and Concepts 558 Review Questions 559 Internet Exercises 559 Notes 561CHAPTER 17 ORGANIZING IN HOSPITALITY MANAGEMENT 562 Authority: The Cement of Organizations 563 The Basis of Authority ■ Authority and Responsibility ■ Authority: A Summary Departmentalization 568 Case History 17.1: Reorganization in a Multibrand Company 569 The Delegation of Authority ■ Span of Control ■ Bases for Departmentalization Line and Staff 573 Line Management ■ Staff Support Issues in Organizing 576 Functional Staff Authority ■ Increasing the Span of Control: Empowering Managers ■ Committees ■ Bureaucracy ■ Ad Hocracy Summary 585 Key Words and Concepts 586 Review Questions 586 Internet Exercises 586 Notes 587CHAPTER 18 STAFFING: HUMAN RESOURCES MANAGEMENT IN HOSPITALITY MANAGEMENT 588 Issues in Human Resources Management 590 Fitting People to Jobs 591 Job Descriptions Recruiting 596 Internal Sources ■ External Sources ■ Segmenting the Employee Market Selection and Employment 600 Selection ■ Orientation Training 606 Global Hospitality Note 18.1: Training in a Global Hospitality Industry 608
  • 18. Contents xvii Management Training ■ On-the-Job Training ■ Everybody Gets Trained Retaining Employees 610 Staff Planning 611 Job and Work Needs ■ Part-Time Employees ■ Computerized Scheduling Summary 616 Key Words and Concepts 617 Review Questions 617 Internet Exercises 617 Notes 619CHAPTER 19 CONTROL IN HOSPITALITY MANAGEMENT 620 The Importance of Control 622 Control and the “Cybernetic Loop” 623 Control Through Management Action ■ Characteristics of Control Systems Tools for Control 628 Financial Accounting ■ Managerial Accounting ■ Decision Accounting Summary 635 Key Words and Concepts 635 Review Questions 635 Internet Exercises 636 Note 637CHAPTER 20 LEADERSHIP AND DIRECTING IN HOSPITALITY MANAGEMENT 638 Leadership as Viewed by Social Scientists 639 Relationship to Other Management Functions Why People Follow 641 Necessity as Work Motivation ■ Advantage as Work Motivation ■ Personal Satisfaction as Work Motivation ■ Independence as Work Motivation ■ Encouragement, Praise, and Recognition as Work Motivation ■ Money as Work Motivation ■ Company Policy as Work Motivation ■ Does Happiness Lead to Productivity? Leadership Theories 645 Three Important Elements of Modern Leadership ■ Participation Communication 651 Barriers to Communication ■ Gateways to Communication
  • 19. xviii Contents The Elements of Leading and Directing 653 Leadership and Change Industry Practice Note 20.1: Leadership in the Hospitality Industry 657 Developing Your Own Leadership Style 658 Summary 659 Key Words and Concepts 660 Review Questions 660 Internet Exercises 661 Notes 662P A R T S I X : H O S P I TA L I T Y A S A S E R V I C E I N D U S T R Y 6 63CHAPTER 21 THE ROLE OF SERVICE IN THE HOSPITALITY INDUSTRY 664 A Study of Service 666 What Is Service? Industry Practice Note 21.1: Six Sigma Comes to the Hospitality Industry 670 Types of Service Rendering Personal Service 673 Task ■ Interpersonal Skills Managing the Service Transaction 676 The Product View of Service ■ The Process View: Empowerment ■ Production or Process View? How Companies Organize for Service 681 Service Strategy ■ Service Culture ■ The Employee as Product: The Importance of People ■ Service as a Sustainable Competitive Advantage Summary 688 Key Words and Concepts 689 Review Questions 689 Internet Exercises 690 Notes 691Index 693
  • 20. PREFACE If any phrase characterizes the hospitality and tourism industry today it would probably be “constantly changing.” Worldwide recessionary conditions, globalization, industry-wide focus on sustainability and corporate responsibility are just some of the forces converging and resulting in widespread change. The result is an industry that requires future leaders in hospitality and tourism to be well versed in past, cur- rent, and emerging management practices.To this end, the Tenth Edition of Introduc- tion to Management in the Hospitality Industry features both historical perspec- tives and discussions of new trends in a variety of sectors. Our goal, as it has been all along, is to provide educators and students with the most up-to-date content with the hope that the next generation of hospitality leaders will be fully prepared to great the challenges of this dynamic industry.CONTE NT—BE N E FITS FOR STU DE NTS I n our efforts to present the industry in an organized and responsible manner, we have divided Introduction to Management in the Hospitality Industry, Tenth Edition, into six primary sections encompassing everything from students’ concerns about their role in the industry and operational issues to the function of management. The organi- zation of the chapters should also help students understand the relationships among the various topics. Brief descriptions of each of the major sections are as follows. Part One: Perspectives on Careers in Hospitality begins by developing an indus- try perspective with a general discussion of hospitality careers. Industry trends, changing demographics, and supply and demand are all important topics covered in these chapters. Part Two: Food Service takes an in-depth look at food service and its various subsegments. Restaurant operations, organization, environment, competition, on-site food service, and food-service-related topics are covered.The final chapter of the section looks at issues facing the industry. Part Three: Lodging focuses on the lodging industry and its various segments, products, and brands. These chapters chronicle recent developments, including new modes of financing hotel expansion and new financial trends affecting this sector. Factors relating to the competitive environment of the lodging industry are the subject of the final chapter in Part Three.
  • 21. xx Preface Part Four: Travel and Tourism comprises two chapters that focus on tourism.Tour- ism growth, economic and social impacts, travel trends, career opportunities, and the role that tourism plays in society are all discussed in Chapter 13. Chapter 14 looks at tourism destinations, including the growing area of gaming, theme parks, and natural environments. Part Five: Management in the Hospitality Industry provides a concise intro- duction to the tools that managers use to help them achieve their goals. Using theories, examples, and case histories, these six chapters portray the management function as an active force for solving problems that hospitality organizations face. Part Six: Hospitality as a Service Industry examines service as process and considers the work of rendering service as a personal experience. In the end, students will have gained a strong overview of the industry, where it fits into the broader world, the major career paths, as well as the important issues and challenges that managers face. CONTE NT—BE N E FITS FOR I NSTRUCTORS Instructors will benefit from the rich content of Introduction to Management in the Hospitality Industry, Tenth Edition. In this edition, we have provided the numer- ous examples and have updated photos that will reflect well with the students. In addition, topic headings can be used to generate class discussion.We are also excited about the numer- ous supplementary materials including the newly revised Instructor’s Manual (ISBN 978- 0-470-40261-0, discussed later in this preface). In addition, several sections of the book have been revised and/or expanded based upon instructor feedback.These include the following: • Expanded and enhanced discussions of sustainability and corporate responsibility • Discussion of demographics and changes within specific generations with special attention to the effects associated with aging Baby Boomers • Inclusion of new and emerging industry segments • More culinary examples including international culinary programs and an updated profile of the Research Chefs Association • New trends in on-site food service including those related to vending • An expanded section on franchising along with considerations of the global marketplace • More examples of the use of technology in both food service and lodging • A greater emphasis upon international travel and the associated effects on tourism along with the introduction of voluntourism
  • 22. Preface xxi • Revised and extended discussions of prominent gaming destinations such as Atlantic City, Mississippi Gulf Coast, and Macau • New focus on electronic resources in the management section, including on-line recruiting • Updated Internet exercises that can facilitate individual learning or group discussion • Addition of emerging perspectives on management and organization F E AT U R E S O F T H E B O O K F O R S T U D E N T S A N D I N S T R U C T O R S S everal pedagogical features have been newly developed and/or carried over from previous editions of Introduction to Management in the Hospitality Industry in order to help students understand the material more easily and to help bring the world of hospitality alive. • Additional International Examples of hospitality and tourism operations have been included throughout the text. • The Purpose of this Chapter section introduces the chapter to students and discusses the significance to the hospitality industry of the topics covered. • The This Chapter Should Help You section lists specific learning objectives at the beginning of each chapter to help students focus their efforts and alert them to the important concepts discussed. These are tied directly to the chapter headings, which facilitates learning assessments. • Industry Practice Notes appear in almost every chapter. These boxes take a closer look at specific trends or practices in the hospitality industry, from a new interview with a hotel executive about the ‘green’ movement (Chapter 1) or the success in the restaurant industry with a Subway franchisee (Chapter 3) to the relationship between working in the service industry and stress (Chapter 21). • Case Histories support the chapter discussions by highlighting examples from today’s hospitality organizations and associations. • Global Hospitality Notes continue to appear to give students more of an international perspective on their studies.The boxes cover topics as diverse as career opportunities overseas (Chapter 1) and a discussion of volunteer tourism (Chapter 14). • The Careers in Hospitality icon appears throughout the book in the margin of the text to alert students to specific discussions of career opportunities in theCAREERS INH O S P I TA L I T Y hospitality industry.
  • 23. xxii Preface • The Summary provides a concise synopsis of the topics presented in the chapter. • A list of Key Words and Concepts appears at the end of each chapter. Further, key words and concepts are identified in bold type when they first appear in chapters. • The Review Questions test students’ recall and understanding of the key points in each chapter. Answers are provided in the Instructor’s Manual. • Internet Exercises, which are mini research exercises and projects, were developed to familiarize students with the different ways in which the hospitality industry is using the Internet. They have been updated and revised. Answers are included in the Instructor’s Manual. S U P P L E M E N TA R Y M AT E R I A L S A n Instructor’s Manual (ISBN 978-0-470-40261-0) with test questions accompanies this textbook. The manual includes sample syllabi, chapter overviews and outlines, teach- ing suggestions, answers to the review questions, and Internet exercises, as well as test questions and answers. A companion Web site, at www.wiley.com/college/barrows, is also available with this text, which includes the Instructor’s Manual and Power- Point Slides of selected tables and illustrations from the text. The Test Bank for this text has been specifically formatted for Respondus, an easy-to-use software for creating and managing exams that can be printed to paper or published directly to Blackboard, WebCT, Desire2Learn, eCollege, ANGEL, and other eLearning systems. Instructors who adopt Introduction to Management in the Hos- pitality Industry, Tenth Edition can download the Test Bank for free. Additional Wiley resources also can be uploaded into your LMS course at no charge. To view and access these resources and the Test Bank, visit www.wiley.com/college/barrows. A Study Guide, which has been created for this edition (ISBN 978-1-118-00460-9), includes chapter objectives (again corresponding to chapter headings to aid in assessment), detailed chapter outlines, review questions, and activities to help students reinforce and test their understanding of the key concepts and features within the text. ACKNOWLE DG M E NTS W e must thank and acknowledge the many individuals who provided direct assis- tance in the latest edition. First and foremost, we thank Andrew Lombard, Graduate Assistant at the Washington State University College of Business, for his tireless efforts in changing or adding the more than 70 photos. Your perseverance and organizational
  • 24. Preface xxiiiskills are impressive. Raymond Goodman, Professor of Hospitality Management at theUniversity of New Hampshire, was immensely helpful in updating information pertain-ing to senior living centers and communities. For your help in this and past edition, wewould also like to thank Dr. Debra Cannon, director of the Cecil B. Day School of Hos-pitality Management at Georgia State University, for immense help with the lodgingchapters. Dr. Richard Patterson, of Western Kentucky University, drew upon his extensiveknowledge of the Web to develop the foundation for the Internet Exercises at the endof each chapter. He also provided Internet addresses for the organizations and associa-tions discussed in the case histories. Finally, special thanks go out to Novie Johan of theUniversity of Surrey who assisted in previous editions with research, writing, and editing. We would also like to acknowledge many people who have helped in shaping thisbook, even at the risk of inadvertently overlooking some of the friends and colleagueswho have helped us. Tom’s wife, Jo Marie Powers, has been the source of many ideasfound in this text—not all, we’re afraid, properly acknowledged. Her advice and criticalreactions have been vital to developing the text over the course of earlier editions. Shealso has made major contributions to the test bank developed for earlier editions andhas served as editor and co-author on earlier editions of the Instructor’s Manual. Many faculty members from hospitality management programs around the worldhave provided helpful information and feedback in the preparation of the manuscript.Many of our colleagues were quick to answer questions for us or to guide us to propersources in their particular areas of expertise. Colleagues from the University of NewHampshire Department of Hospitality Management and the Washington State UniversitySchool of Hospitality Business Management have provided us with numerous insightsthat have shaped this text in important ways. We are also grateful to the professors andindustry professionals who reviewed the previous editions and early drafts of this edi-tion. Their comments and suggestions have helped us immensely in the preparation ofthis and earlier revisions.Anthony Agbeh, Northampton Community College, PAPatricia Agnew, Johnson & Wales University, RIJames Bardi, Penn State University, Berks Campus, PAJames Bennett, Indiana University, PurdueJohn Courtney, Johnson County Community College,