QUALITY SERVICE MANAGEMENT IN

TOURISM AND HOSPITALITY

CHAPTER 1: Introduction to Quality Service Management

in Tourism and Hospitality

Introduction
In the tourism and hospitality industry, establishment of quality is one of the prime
reasons that an entity will be patronized. I should always remember that customers
(guests as we call them) have a lot of choices. With other decades of existence in
operations, the determination of quality has changed through the years. Add it up to
the impatience and sophistication of our guests, this concept should always be
inculcated in all service providers in this industry.

Content
Knutson (1990) reflected in his research that the intense competition in the
hospitality industry has led many businesses to look for ways on how they can
profitably differentiate themselves from their competition and capture the highest
quality. Similarly, Weiermair (2000) noted that in the tourism sector, even though
the production and distribution of services involve different experiences on both
parts of tourists and the suppliers, the ultimate goal is still to achieve the highest
quality possible.

To determine the “highest quality”, one must first understand the concept of
“quality”. For our guests in the tourism and hospitality industry, one will be using
specifications, standards, and other measures to evaluate quality. This is now a piece
of evidence that quality can be understood, defined, and measured. Especially for our
guests, sometimes if asked on quality, they could not define it but would immediately
know one when they see one. It will now be critical for quality to be seen. To
illustrate, as the quotes say. “Beauty is in the eye of the beholder,” so is quality, and
more importantly, our guests define it.

Joseph Juran, one of the pioneers in “quality” research, defined quality as “fitness for
use”. This means that the concept of quality is variable to the one defining it. We
cannot say that the service of a casual dining restaurant has high quality if we have
no intention of dining in the said restaurant. It is because we are not intended for the
said restaurant, so we have no means in determining quality. A dining staff member
that has no experience in the kitchen cannot decipher the difference whether a
kitchen knife is of good quality or not. It is because it is not fit for him/her to use it.
The International Organization of Standardization (ISO), the world body for
standard formulation, also defined quality as “ the totality of features and
characteristics of a good or service that bear on its ability to satisfy a given or
implied need.” In the definition, it is clear that “ a given or implied need” should be
addressed and this is usually defined by the user, in our case, our guests or
restaurant staff from which he/she will address the criteria for quality.

Service Product: Goods and Services

Many have been mentioned already with the concepts of products and services. But
let us add another term: good. These three terms are often confused with each other.
For the purposes of this book, we will be taking the marketing perspective of the
terms. A product can be defined as anything that we can offer to a market, for
attention, acquisition, use or consumption that could satisfy a need or want.
However, the definition of product does not only involve tangible goods such as those
that are purchased in restaurants like burgers, fries, or drinks. The definition of
product must be extended to include intangible objects as well because they can also
be offered to a market. Burgers, Fries, and drinks are what embody the next term,
which is goods. Goods according to Hill (1999), refer to physical objects for which a
demand exists; their physical attributes are preserved over time; and their ownership
can be established, can exist independently of the owner, and can be traded on
markets; services, meanwhile, have four features. Lovelock (1983) connoted this at
the IHIP characteristics: intangible, heterogeneous, inseparable, and perishable.

Services are intangible in nature. It means that they cannot be touched as they are
not physical and can only exist in connection to other things. For example, the warm
smile and grateful service of a food attendant in a restaurant cannot be touched but
can be felt and can only exist because you have ordered a food item in a restaurant.
Similarly, services are heterogeneous due to their dependence on the workforce
which does the act. In hospitality, this concept is sometimes referred to as “
inconsistency.” The services that a hair therapist renders to his/her client at 10 am
would be of different quality and dimension as to when he/she does the service at
8pm. This is why the industry has the concept of “service recovery” in place. Just like
when a famous pizza house delivers its pizza on time, if it fails to do so, the pizza
would be free. The concept of heterogeneity is also brought about by the differing
likes and dislikes of the guests. Even though a standard is set, the satisfaction of each
guest varies greatly and of course, as previously stated, the guest defines the concept
of high quality; that is why, commonly, the service staff adheres to the request of the
guest. Inseparability, meanwhile, means that the production (act of delivery service
staff) and the consumption ( guest experience) cannot be separated from each other.
In a spa, for example, the service rendered by a spa therapist cannot be done while
the guest is still at the office. The guest should be present for the massage service to
be done. Using technical criteria to define services, Smith (1776) states that a service
will “ perish in the very instant of its performance, and seldom leave any trace or
value behind them for which an equal quantity of services could afterwards be
procured.” This is especially true for hotels where the main product is the sale of its
guest rooms. For example, if the sales team of a particular hotel does not perform its
job properly, usually the chance where a room can be sold is lost forever. The sale
cannot be brought back again for that specific day and time. Because of these
characteristics, implications exist, which will be tackled in the next chapters.

Now that we distinguish the difference between goods and services, it is now time for
us to develop the service product concept. Ford (2011) mentioned that goods and
services could not be separated from each other. In the delivery of services, one
cannot be performed properly without the use of tangible items. For example, for a
spa therapist to be able to conduct a full-body massage, he/she needs a cosy bed that
would ensure comfort to his/her guest, essential oils to apply the body for the
massage, or glasses when conducting ventosa service. A tour guide needs maps, flags,
or other collateral for him/her to deliver his/her “commentary.” Thus, it is essential
that these components be purchased as a package. With this, the concept service
product was conceptualised.

Dimensions of Quality for Service Products

Garvin (1987), in an article in Harvard Business Review, mentioned that because of
the competition for high quality goods and services and with the internationalisation
of said concepts, the following dimensions for quality should be observed and
considered:

1. Performance – refers to a service product’s primary operating

characteristics. Usually in the hospitality and tourism industry, as we are catering
to intangible dominant concepts, performance often means prompt service.

2. Features – these are dimensions of quality, which are usually cited as a

secondary aspect of performance. They are secondary in such a way that they
supplement the basic functioning of a service product.

3. Reliability – refers to the ability to perform the promised service product

dependably and accurately. This means that being able to provide service as
promised is one of the main considerations in assessing this dimension.

4. Conformance – This quality dimension means that a service product’s

design and characteristics should meet the standard set. Juran became one of the
 pioneers who specialised in this area. Service products to be accomplished and
performed properly need to have specifications. When new product offerings or
service provisions are developed, dimensions are actually set to become standards
for evaluation. These specifications are treated as the “targets” to be met in a
specific service product.

5. Durability – This dimension is more detectable goods rather than in

services and it has both technical and economic dimensions. Technically,
durability can refer to the amount of use before a specific product deteriorates.

6. Serviceability – The sixth dimension of quality, again more inclined toward

goods rather than services, is serviceability or the speed, courtesy, competence,
and ease of repair.

7. Aesthetics – This dimension, along with the last dimension, are highly
subjective. Aesthetics – how a service product is perceived – is clearly a matter of
personal judgement. It reflects how a guest is as an individual.

8. Perceived Quality – Guests usually do not have a complete guide on a

service product’s dimensions; unknowingly, they are indirectly measuring and
this measurement is the only basis for them to compare brands.

Notable People in Service Quality

With the emerging demand for studies in total quality management and service
marketing leading to the study of service quality, the following people were involved
in the evolution:

1. Walter A. Shewhart - an American physicist, engineer, and statistician.

He is also known as the Father of Statistical Quality Control and also related to
the Shewhart cycle.

2. William Edwards Deming – an American engineer, statistician, professor,

author, lecturer, and management consultant. He championed the work of Walter
Shewhart, including statistical process control, operational definitions, and what
Deming called the “ Shewhart cycle” which has evolved into Plan-Do-Study-Act
(PDSA)

3. Joseph M. Juran - made many contributions to the field of quality

management in his more than 70 active working years. His book, Quality Control
Handbook, is a classical reference for quality engineers. He revolutionised the
Japanese philosophy on quality management and in no small way worked to help
shape Japan’s economy into the industrial leader it is today. Dr. Juran was the
first to incorporate the human aspect of quality management which is referred to
as Total Quality Management (TQM).

4. Philip B. Crosby - was a businessman and author who contributed to

management theory and quality management practices. He initiated the Zero
Defects program at the Martin Company. As the quality control manager of the
Pershing missile program, Crosby was credited with a twenty-five percent (25%)
reduction in the overall rejection rate and a thirty percent (30%) reduction in
scrap costs.

5. Armand V. Feigenbaum - an American quality control expert and

businessman. He devised the concept of Total Quality Control (TQC) which
inspired Total Quality Management (TQM).

6. Kaoru Ishikawa - is notable for rejuvenating the norm in the workplace. He

always believed that quality should not stop in reinventing a product alone. He
was one of the few people who believe that delivering quality does not stop in
purchasing the product; it goes beyond the transaction itself. Thus, he highlighted
and reinvented the concept of customer service, one who coined the “Ishikawa” or
“Fishbone” diagram that highlights the cause and effect of the activities and
processes while in constant search of quality in operations.

7. Genichi Taguchi - an engineer, and statistician. From the 1950s onward, he

developed a methodology for applying statistics to improve the quality of
manufactured goods. Taguchi methods have been controversial among some
conventional Western statisticians, but others have accepted many of the
concepts introduced by him as valid extensions to the body of knowledge.

In services marketing and management, the following have made significant

contributions noteworthy to be recognized:

1. James H. Donnelly - he highlighted the differences between the marketing

“channels” used for services and those used for physical goods and
implications for marketing strategy.
2. A. “Parsu” PArasuraman, Valarie A. Zeithaml, andLeonard L.
Berry - developed their pioneering “gaps model” of service quality which
highlighted the importance of efforts made to assess quality in services.
3. Mary Jo Bitner and Bernard H. Booms - developed their expanded
“marketing mix” for services which took into account the distinctive
characteristics of service identified in the “crawling out” stage: intangibility,
inseparability, heterogeneity, and perishability. They added three more Ps to
this original marketing mix to make it more appropriate to servies: people ,
process and physical evidence.
4. Christopher Lovelock - best known as a pioneer in the field of Services
Marketing among other titles, such as author, professor, and consultant. He
was also known for his excellent case studies.
5. Theodore Levitt - an economist and professor at Harvard Business School.
He was also an editor of the Harvard Business Review who was especially
noted for increasing the Review’s circulation and for popularising the term
globalisation. In 1983, he proposed a definition for corporate purpose: Rather
than merely making money, it is to create and keep a customer.
6. Walt Disney - The Disney Company while crafting their concept for theme
parks also pioneered the thought of the service providers not only as team
players but also as “cast members” just like in a movie or theatre.
7. Bruce Laval - an industrial engineer of the Disney Company conceptualised
the term “guestology” and the guest point of view (GPOV) when viewing
service quality in the tourism and hospitality industry.
CHAPTER 2: Guestology

Introduction
Many establishments and organisations are doing everything to improve the level of
quality service through the performance of the employees. Others develop their
systems. Some also embed the concept of corporate culture and environment in their
setups. All of these are deemed effective, but sometimes, what r often forget is that
the centre of the service concept is our guests. This would be the focus of our study
—- the concept of Guestology.

Content
For us to understand what it means to be a guest, we should now understand what
hospitality is as our guest is an outcome of the hospitality that we give. Service
executed immaculately is different from hospitality. Service providers today are
focusing on making things right rather than making people feel great. Service is the
sequence of acts, tasks, and procedures which are done with consistency. It is the
mechanics, the logistics, and how-tos of any process. Service, as a commodity, is
expected to be built-in with any product. We expect our meals to be served in less
than 12 minutes and our reservations finished immediately. What makes the
difference is hospitality. Hospitality is the positive emotional response elicited from
our guests. Service is a skill, while hospitality is a spirit. Service is what we do for our
guests, while hospitality is what we do with them. Service is about delivering needs
and wants of our guests, while hospitality is about anticipating the needs and wants
of our guests, expressed and unexpressed. Service can be given methodically, while
hospitality is dynamic. We forget good service; we remember hospitality. This is the
reason that the end user of such a process is called a guest, because we are honoured
that they come to us, they come with us.

Guestology
Dickson (2010) defined guestology as the scientific study of the behaviours, needs
and expectations of people in a service environment, and how to use that knowledge
to optimally manage a service organisation. The concept that Bruce Laval, the father
of guestology, introduced has now become a science that deals with understanding
the guest.
Guestology entails studying the totality of the guest experience, from their
expectations down to the results and feedback. Klein (2014) mentioned in her study
that guestology involves knowing the guests or clients and their needs and wants,
perceptions and expectations. Her approach toward guestology entails involving
every person with whom the service provider has in the workplace. As tricky as it is,
identifying the actual needs and wants, perceptions, and expectations will really seal
the deal. Long ago, it seemed that establishments operated under assumptions that
they already had an idea of what these needs and wants were, but these assumptions
might have fallen anywhere from pairing the guests’ beliefs or being completely
different. Any establishment would want to realise that what it actually needs is to
find a way to quantify the answer of answering the question, rather than to assume.

Customer Expectations
For customer satisfaction and customer service to be achieved, a complete and
proper understanding of customer expectations is very important. Unless the
establishment already knows what the customers want, what they expect, and who
they are, it will be very difficult to match up to the expectations. A guest who will
dine in a restaurant for the first time will have a different expectation than a guest
who has been in the restaurant a couple of times. The expectation of a frequent flyer
for business purposes may also have a different expectation with that of a family on a
trip to another country. Companies should make it a practice to always inquire from
their customers whether they have met their expectations and put all of this data into
their internal research. It is important that we note their likes, dislikes, needs ,wants,
and profile as these would be the baseline of our entire operations. The reality right
now is that customer expectations are continuously changing, and unless companies
are attuned to them, they will fall short of these expectations, leading to customer
dissatisfaction and attrition.

Planning for customer satisfaction is really important in this case as this will be the
platform for the design of the experience. This is the role of the guestologist. It is
very important that everything is in place when the guest’s senses first come in
contact with anything about your establishment, so the role of the guestologist is very
critical. Much more in the Philippine culture, where there are different sets of beliefs
and ideals, there are also different sets of expectations. A conference set in Hong
Kong would have all its meals in cocktail style; however, if you have Filipino guests,
this cannot be acceptable because a typical acceptable meal for them would entail a
proper table setup with plush seating and ambiance. So, different expectations would
determine what kind of planning and design you would want to have for your guests.

Establishments geared toward delivery of services in tourism and hospitality should

always be careful not to over-deliver the said services. As our guest becomes more
exposed to what we offer, he/she becomes more complex and, as such, is accustomed
to rely on our decision-making skills to look for what best to give to them. If a guest
were to enter a fast-food restaurant with tables lined with expensive linen, he/she
would be expecting the levels of casual or fine dining restaurant. Some would say that
this is delighting the guest, but it is also important to think that a guest may also
think that this restaurant is too expensive to dine in. Guests would want their
expectations to be met, no more, no less.

Food attendants or waiters should literally “wait” for their guests when dining in a
restaurant. Anticipating guest needs is one of the primary responsibilities of a waiter
and that he/she should be good at it. It requires full attention so that whenever a
guest needs something. he/she could immediately handle the concern and attend to
the guest’s request. But it does not mean that the waiter should be in close vicinity of
the guest so that the guest could actually see and notice that the waiter is on “tiger
look” at him/her. A guest needs sample space so that he/she can get the privacy that
he/she wants. He/she needs a cosy environment that he/she could enjoy and spend it
with people he/she would want to be with.

Depending on the service desired, most of our guests have general similarities when
it comes to their expectations. Their usual expectations would be that the
establishment be clean and the staff be courteous, responsive, reliable, and friendly.
Thes expectations usually go up if the establishment’s level of service also goes up.
Unfortunately, not all high-end or luxury establishments have maintained this kind
of service. Ekiz et al. (2012) noted in their article that even in luxury hotels, there are
still basic problems that are actually unresolved and with social media around, guests
have easy access to flaunt these problems which sets a springboard for other
problems. They enumerated a number of problems in their article which are the
following:

1. Rooms - concerns extending from small sized rooms to rooms with no

modern technology.
2. Arrogant and/or clueless staff - comments ranging from staff being rude
and no answers to questions posed.
3. Failure to respond - mainly covering staff’s failure to respond to guest
complaints.
4. Poor delivery - covering complaints such as late service or wrong room
service and long process for check-ins/outs.
5. Cleanliness - criticisms on soiled linen, carpet stains, and hair strapped in
bathtubs.
6. Amenities and Utilities - problems associated with the lack or inadequacy
of toiletries and items in minibars.
7. Billing - guests grumbling about having them charged extra for parking,
internet, gym
Issues like these are typically simple to resolve but management should allot time
and enforce policies in monitoring these problems and ensure that guest service is
really a top priority.

Customers/ Guests/ Clients

Customers, otherwise known as guests and clients, in the hospitality and tourism
business play a significant role in the operations. To understand their behaviour and
to strategize the efforts of the company, it is important to identify and match each
need to each type of customer.

The Corporate Finance Institute (2015) has identified five basic types of customers
that a hospitality and tourism enterprise should be aware of. They are our loyal
customers, impulse customers, discount customers, need-based customers, and
wandering customers.

The loyal customers are actually the most important segment to please and should
be one of the priorities in mind of a specific company. Usually, this type of customer
represents no more than twenty percent (20%) of the customer base but actually
drives the majority of the sales revenues. Because of this, it is important to note that
a loyal customer values a product heavily. Furthermore, they are more likely to be the
bearers of positive word of mouth (WOM) and likely to recommend the company’s
service products. Therefore, during the planning phase, even in the decision-making
process, these customers must be given heavy emphasis.

Impulse customers, meanwhile, are the best type to do suggestive selling. They are
also second to loyal customers when it comes to attractiveness in the market. As the
name implies, these customers do not have a shopping list in mind and do shopping
instinctively. Moreover, this kind of customer is receptive to recommendations on
products. Similar to loyal customers, it is also important to involve these customers
because what they say also matters in generating more revenue.

Another type of customer which affects a company's inventory turnover is the

discount customer. They are contributory to a company’s cash flow because the
products which are seldom purchased at full price are actually availed by these
customers as best markdowns.

The fourth type of customer is driven by a specific need. These customers are called
the need-based customers. They buy for a specific reason and occasion, and because
of this, it may be difficult to convince them to upsell. It is also important to note that
these customers are adept in avoiding any attempt for upselling and that they will
immediately leave after they are done getting what they need. These customers are
also easily drawn to other businesses, much more if the price is cheaper and the
alternative product can also serve its purpose. It is therefore important to carefully
initiate personal interaction with this segment in order to develop a lasting
relationship with them. It has also been observed that there is a possibility to convert
this segment to loyal customers. If a company can prove that the service that it
delivers could pose a “need” for this segment, along with proper positive personal
interactions, it is expected that this segment will be loyal in the long run.

The last type of customer is the wandering customers. These customers generate the
largest amount of traffic as they have no specific need or desire in mind but yield the
smallest percentage in sales revenue. This type of customer enjoys social interaction
while shopping. Thus, spending a lot of time trying to please this segment can draw
away the other segments. Although generating a small percentage of revenue, it is
important to note that this segment still provides insightful information about the
products and can therefore contribute to the feedback mechanism of the company.

Identifying these segments is significant as they generate revenue for the enterprise..
Alongside these segments drag another type of customer that is usually forgotten or
left out. It is called the internal customers. As a hospitality entity, it is important to
note that aside from external customers, it also serves its internal customers (people
which depend and “serve” each other). As they are the ones who are actually doing
the service process, they understand the feeling of being served together with the toil
of hard work that goes with it. Thus the service given to an external customer should
also be the same with an internal customer. The expectations, which are to be
satisfied, for an external customer should be the same with that of an internal
customer.

Quality and Value

In the previous chapter, quality was defined individually. Here, we will view quality
as tied together to the concept of value and how it affects the guest-service staff
relationship. The measure of quality for the guests is actually based on the difference
between their expectation and their experience ( or as netizens quote it in present
memes, “reality”). By reality, it means what the guests have experienced in actual
sense. For example, the quality that the guest experienced matches what he/she
expected, then we can say that he/she has experienced typical or normal quality-
positives as he/she was satisfied with the service provided. This is experienced when
a person is craving for a chicken meal, for example, in a fast-food outlet, and he/she
feels that what he/she paid is fit for the service that he/she received. But if a person
is not satisfied with either the service provided or the product given,then we can say
that he/she experienced a negative quality.When evaluating quality, one needs to
realise that quality can be high or low regardless of how it costs the company. A
porridge house in Manila that serves unlimited to its customers, which are students,
delivers high quality service as perceived by the students who do not pay more than
₱50.00. While there are also first class restaurants that buy fresh and expensive
ingredients just to ensure the high quality of service they consistently give.
 Value, in relation to quality, would entail study of costs. To measure the value
derived from a guest experience, we need to match if the costs incurred total or equal
to the quality of the experience. For example, a guest would be reserving for a spa
session and would be allotting time and paying for the service. This reservation of
time, effort, and money should equal the quality of the service provided so as to say
that the transaction has high value. Therefore, the time, effort, and money should be
studied very closely by the planners of the service experience so as to have a
meaningful guest experience.

The Customer and the Definition of Value

Since tourism and hospitality is a guest-centred or customer-centred industry,
ultimately, it is the customer who defines value. For example, a sanitation inspector
can say if a resort establishment violates or adheres to certain law, but this will only
be an add-on toward achieving value. Why? It is because the guest does not see it.
For the guest, the quote, “To see is to believe,” works so much. These output will be
the ultimate measure whether a service design has been crafted excellently. If the
guests are dissatisfied or not happy with the outcome, it does not matter if they have
followed the process correctly. This evident if, for example, a guest would want to
have a manicure or pedicure, and if a smudge occurred while applying nail polish, the
ultimate measure of the guest is your final output, and he/she would be dissatisfied;
or in a flight, for example, the airline company promised a seamless transaction, but
there existed long queues, expect a lot of complaints form the guests.
CHAPTER 3: Strategies for Quality Service in Tourism and
Hospitality

Introduction
To bridge the gap between the expectations and perceptions of a guest in a
hospitality and tourism setting, it is a must to plan his/her experience carefully. A
productive guest encounter is expected to yield optimum experience. With these,
critical planning is very much important to properly design and ensure that the best
experience is the only experience a guest will receive.

In planning the guest experience, strategies are employed to be able to deliver

processes for each issue that needs to be resolved by the management. Strategies are
plans that are designed to achieve specific aims of the company. It usually involves
setting goals, planning actions to achieve such goals, and maximising resources to
achieve the goals. With strategies, resources become optimised, productivity is
maximised, and processes are simplified. Now, with guests at the centre, the
experience would be better than initially planned.

Content
Hospitality, Tourism, and Strategies

Strategic planning has been utilised extensively for developing tangible products
rather than used in service-related industries like hospitality and tourism. With the
marketing nature of tourism products and services, it is evident for establishments to
draw their market toward services, strategy plays a critical role. By utilising
strategies, a company is able to identify its competitors while satisfying the needs
and wants of its guests.

Strategic planning is the process of identifying a company’s internal and external

characteristics which will contribute to the attainment of its goal pointing to a
specific direction while formulating different policies on how best to achieve it. A
restaurant, for example, to become one of the best in a certain area or region, should
think of different strategies to be able to meet the requirements needed in a certain
area as dictated by the market and the present situation it belongs to.

With strategic planning in mind, three elements make up its components. Firstly, the
identification of long-term goals and objectives concerning the conceptualization of
coherent and achievable strategic objectives. Secondly, the adoption of different
courses of action should also be in place to assure that actions taken arrive at
objectives are already set. Lastly, the allotment of resources is also set in place. This
means that there will be costs associated with the actions to be able to achieve the
objectives.
Porter’s Generic Strategies
Porter’s generic strategies can help a decision maker to make the best choice for
his/her company.

Michael Porter identifies three strategies in achieving competitive edge in his book,
Competitive Edge. These cost leadership strategy, differentiation strategy, and focus
strategy.

Cost leadership strategy focuses on increasing profits by reducing operational costs

and charging lower prices. To implement this strategy successfully, a company will
need to invest in new technology and to have efficient logistics. A company must also
make sure that its spending on items such as labour, material, and facilities is kept
low. It is essential that a company beats its competitors on cost so it will need to
continually monitor and reduce its costs. An example would be an economy level
hotel that charges low rates but has only basic amenities for a regular guest. Its room
will typically have a standard bed, colour television, air-conditioning unit, and
private bathroom. Wi-Fi connection is optional.

The differentiation strategy focuses on making a company’s service attractive and

unique in comparison to those of its competitors. For example, a company might
specialise in a particular feature or unique service. Be renowned for its excellent
customer service, or have a highly quality valued brand image. It will need to be
creative and innovative and be able to provide high quality services for this strategy
to work. Sales and marketing also play a vital role in this strategy’s success and a
company will need to make sure to stay ahead in new trends in the industry. One best
example would be a hotel utilising green technology in its operations. This hotel can
boast of adhering to the call on sustainability and environmental stewardship by
integrating this concept in its day-to-day operations, such as the use of reclaimed
wood, metal roofing and steel grills of another reclaimed building, passive cooling
through building orientation and insulation on metal roofing, as well as harvesting
rain and groundwater for toilet flushing, plant irrigation, and general house cleaning.

The focus strategy concentrates on developing services for niche markets. Using this
strategy requires a deep understanding of the customer’s needs of a company. Its aim
will be to meet these needs by providing something special and extra that the
customers cannot get anywhere else. A company will also need to decide whether to
adopt cost leadership or differentiation. This is because the focus strategy is not
normally enough to win substantial market share on its own.

The first type to focus is on cost leadership in a narrow or focused market. An

example would be the study hubs in the university belts. They have a very focused
marketplace. They specifically target student guests that are looking for cheaper
alternatives to hotel lounges wherein they could spend their time studying. They do
not provide for everyone but only for students, that is why their price is relevantly
low.

The second type of focus is on differentiation in a narrow or focused market. An

example would be a coffee shop which adapted the drive-through business model. It
focuses on guests who do not really necessarily want to sit down and have a cup of
coffee. The guests like the brand and offering but do not have the time to sit down
and enjoy a cup of coffee. They have it on the move.

Choosing the right strategy for an organisation is crucial is gaining a competitive

edge over its rivals. By using Porter’s generic strategies model, an organisation will
be able to identify the strategy that it needs to lead the organisation to success.

Internal and External Assessments

Internal analysis is where an organisation takes stock of the resources and assets that
it possesses. These include the strengths that enable organisations to function well.
Experts refer to this as the “secret sauce” of an organisation. Moreover, internal
analysis also flaunts the weaknesses of an organisation. These weaknesses are
identified not to dwell onto, but to be addressed and resolved so that they do not
harm an organisation.

An airline company, through internal analysis, may find out that it needs to have a
stronger passenger relationship management with its clients. By delving deeper, it
found out that the problem was because it is not in the culture of the employees to
establish a relationship with their passengers. Utilising a strategy to develop
relationship marketing in their operations, it enabled the entire company to combat
this problem and convert the weakness into a strength.

An external analysis, meanwhile, does not rely on the “secret sauce.” How a company
positions itself in the market with respect to its rivals in its particular space is of
primary concern. Attention should be focused on what a company is good at relative
to its rivals in that industry. Doing external analysis not only determines a company’s
position in the external environment, but also showcases its opportunities and
threats. Identifying a company’s opportunities and threats, through different tools
such as the Political, Economic, Social, Technological, Environmental and Legal
(PESTLE) analysis, Exhibits what it needs to be wary about which somehow are
uncontrollable to a certain level.

Strategizing for the Future

Ford (2011) stated that the things hospitality and tourism organisations must plan to
cope with changes in the future include demographics. Technology, social
expectations, economic changes, competition in the industry, stakeholders, and other
factors.

- Demographics - changes in the workforce and the market of the hospitality

and tourism sector will continue to affect the operations of the industry, and
this is relevant not only to the service providers, but also to its market. Park
and Yoon (2009) made an article on segmenting the motivation of Korean
tourists. In their article, they noted that motivation in tourism is largely
determined by a number of factors, including demographics.
- Economic and Natural Forces - Economic forces also change the nature
of the industry and how it is managed by the key stakeholders of this fast
growing sector.
- Competitors - competitors also shape the tourism and hospitality industry.
The presence of this major key player brings about the major changes in the
industry. Moore (1996) utilised biological analysis in explaining shifts in
today’s business. He mentioned in his article that businesses are a big part of
the ecosystem and businesses need to co-evolve in order to thrive and survive.
This is because of the fact that the economy consists of unpredictable key
players which constantly shift. Thus, movements between competitors shift
from time to time and create different relationships which also affect other
relationships that will be made in the future.

Bengtsson (1999) explained and identified these relationships existing in

competition. She mentioned that in analysing the relationships between
competitors, four types can be distinguished.

Coexistence exists on social exchanges between competitors. As economic

exchange and bonds are not present, each competitor knows about each other
but does not interact with them. Usually, power is identified depending on the
competitor’s position and strength. Somehow, dependence is present and
smaller companies are at the mercy of larger players. There is also distance
between the competitors, although psychologically. Trust is also regarded
high, although informal, as one player is also dependent on another
competitor but does not interfere with him/her.

Another relationship is cooperation, which also exists in this scenario. As this

concept is present, there are frequent exchanges between the players which
comprise of business, information, and social exchange. All competitors are
cooperating but it does not mean that they are not competing . Formal
agreements exist if the competitors have formed strategic alliances.
Independent hotels usually do this, such as in the case of referral groups or
marketing consortiums. Although informal agreements also exist, they are
 built on social norms and trust. These norms adjust the distribution of power
and dependence among themselves, which means that conflicts rarely arise.

As expected, competition is another relationship that is based on an action-

reaction pattern, which means that if a player launches a product or service,
the other competitors will definitely launch a similar, if not the same, product
with some developments. Because of this, interaction is usually simple and
direct. Dependence and power are also equally distributed but are also based
on their position in the ecosystem.

Lastly, a new relationship has existed, it is called co-operation. Simply, it

means cooperation between competing players. This relationship includes
economic and other forms of exchanges. Usually, power is in the cooperative
side of the relationship which is based on how it functions in the ecosystem.
The competitive side, meanwhile, highlights that power is dependent on the
player’s position and strength. Dependence usually arises in two ways. When
there is cooperation, there is competition, dependence is again related to the
player’s strength and position in the network. With goal setting, competitors
cooperate as it is stipulated in their formal agreement that this will be done
jointly.

- Other Stakeholders and Relevant Groups - Aside from the factors

previously mentioned, several other groups also affect how the future of the
tourism and hospitality industry will be shaped.
1. Resource Suppliers - A company cannot continue its operation
without raw materials, equipment, and other supplies. This is actually
not limited to the manufacturing sector, but is also an important
requirement in service operations, as we already established the
concept of service product. The availability of the resource supplier can
also affect the smooth operations of the company. This is also why
there is seasonality in some service operations, as well as the offering of
some products, especially food items. Somehow, a disruption in the
operation of the resource supplier will ultimately affect the company.
Thus, companies in the tourism and hospitality industry usually
identify a selection of existing backup suppliers, which somehow
subjects companies to increased costs due to price gouging. Aside from
the common reasons, this situation usually arises because of a natural
hazard.
2. Capital Suppliers - Another player that we need to consider is the
suppliers of capital. Now that the capital market is international and
electronic transfers are now available, suppliers can now move at a
faster pace, which makes a company vulnerable. A company may need
to spend more time to forecast the availability of this valued resource.
Because capital availability is crucial, a company’s decision-making
should be exact so as not to dampen the entire operations. The stock
 market now has a great impact on how certain industries, including
tourism and hospitality, go around.
3. Labor Supply - As the pool of skilled employees is also of utmost
importance, as they also shape the market, Chapter 4 discusses issues
on staffing and employee concerns. Without a stable labour supply, the
tourism and hospitality operations will be greatly affected as they drive
the operation itself. There will be no one to man the operations and will
fill the empty slots of the retired employees.
CHAPTER 4: The Guest and the Service Setting

Introduction
The setting of the service contributes to the overall experience of a guest. This is why
even though the service delivery is impeccable, it seems that there is something
lacking in the process. By this, an establishment needs to refurbish the system when
it comes to the ambiance of the servicescape.

Content
The Servicescape

the actual, physical environment where the act of service is performed, delivered, and
consumed. It is very important because it is the area where the service team and the
guest interact with each other. This is why a constant examination, especially on use
areas, is very much needed.

Planning the servicescape is critical as it contributes to the overall mood of a guest

while he/she is actually experiencing the service. It is also significant for the
employees as it affects the overall productivity of the service staff if a setting is
planned properly.

Rutledge’s Principles of Design for Tourism and Leisure-

related Establishments
Albert J. Rutledge introduced certain principles on how to effectively design
establishments for the purpose of both the guests and the employees as they are the
ones who usually utilise establishment spaces.

1. Everything should have a purpose. If there is a good use of the land and
the spaces, there should not be any area without any function. Therefore,
there should be a good relationship between the different parts of an
establishment or, on a bigger scale, a complex. The parts are as follows:
a. Natural Elements - These areas include the land itself, water, areas,
and plants.
b. Use Areas - These are areas where there is an interaction between the
guests and the service staff most of the time, such as the dining room
floor, parking area, and game rooms. In these areas, it is important to
check certain technical requirements. For example, if an area is in a
hilly location, the degree of pitch or flat should be considered and
 whether an activity should be placed there. For outdoor areas where
many trees abound, overshading should also be avoided.
c. Major Structures - In large complexes, these pertain to buildings
and dams.
d. Minor Structures - These include utility areas, benches for guests,
walkways, and pathways. For large outdoor complexes, it is important
to establish a good street system and internal road network so that
guests would not be lost and to ensure quality of experience.
e. Forces of Nature - These include wind, sun, and rain effects.

While each part is individual in nature, no element can function without each other.
One must not forget that in planning the servicescape for the guests and employees,
the keyword should be relationships. Each element should be planned in relation to
one another. Another consideration would be checking what the purpose of an
element placed in a certain location is and why it is there.

2. Design should be for both employees and guests. When planning for space
allocations of the servicescape, it is important to consider the physical strengths and
weaknesses of the site. If the area tends to be hot because of the direction of the sun,
then in the planning sessions, avoid placing the centre of guest and employee
activities in these use areas. We should always remember to check if we are designing
for guest wants, guest needs, or what we think the guest needs. In all areas there
should be a balance. Balance between the personal (guest) and impersonal
(establishment) needs.

3. Function and aesthetics should be present. In designing the hospitality and

tourism workplace and guest experience, both the concept of function and aesthetics
should be considered. Function pertains to the technical aspects of the operations,
such as the height of a chair in relation to the table, the quality of material used in
making that chair, and the comfort it gives to the guest or employee. But always
remember that if the chair is not visually appealing, you will be having a hard time
convincing a guest to sit there. Since these things will be designed for the guests and
employees, the functionality of the equipment and its beauty and appeal should all be
considered at the same time. Thereby, this means guest satisfaction and functional
profitability must go hand in hand.

4. Set up a substantial experience for the guests and employees. It is

important that when a guest or an employee comes in contact with the servicescape,
he/she can immediately answer the question,”What is.” “What is in store for me?”
Or, “What is the reason that I am here?” In an instant, a guest would want an answer
to these questions. That is, a service setting should have a holistic view on what it is
that we want a guest to experience. To set this up properly, the resort to “theming” is
usually established.
Theming refers to the use of an overarching concept to create a holistic and
integrated organisation of the guest experience. Planners usually use one concept or
one group of concepts in designing the tangible aspects of the service setting. It could
go as far from the paints used in walls, to the sounds played, and even to the foods
served. Theming can also be observed through the different design elements
introduced in a setting, such as the lines, texture, forms, and colours used. A bar
dominated by colours of green and black can represent a bamboo zen concept that is
perfect for cosy atmospheres. Dominance also is observed to highlight the concept of
the theme. Contrasting colours can be used but should be set to a minimum and
remain subservient to that one emotional feeling which has been allowed to
dominate. Lately, enclosures also aid in theming as what seem to be open-ended
enclosures in the form of open doors can appear as a huge area to the naked eye.

5. Set up an appropriate experience for guests and employees. If principle

4 discussed the answer to the questions, “What is,” then this principle will now
answer the question, “Why it is.” Why is it there? Are the elements of the site
supposed to be in such fashion? To aid in delivering a holistic experience, it is
important that elements of design are appropriately placed in reference to the type of
the place, whether it will be a resort, restaurant, or leisure-linked facility. To
establish this, first, checking the physical characteristics of the site is important. An
inventory of the site is important to see whether the elements fit where they are
designed, or that they are appropriately located. One thing most important for
outdoor recreational sites is if the natural resources are intensified in a setting. If a
natural resource is present in the area, like the presence of beaches, sand dunes, rock
formations, and trees, it should be highlighted in the area rather than comforting in a
plan which was done otherwise. Remember that the reason for the selection of a site
usually depends on the personality of the setting and these natural resources bring
up much of the beauty it represents.

The personality of the user and the ambiance are also considered when checking the
appropriateness of a site. The users pertain to both guests and employees and how
comfortable they are in the design of the site elements. If the intended guests are
children, it would be better to secure the surroundings and ensure that safety
precautions are in place and readily available. Similarly, if adults and teens are the
intended guests, it is also good to add a little difficulty on the trails or activity
facilities that will be designed for them.

In designing such elements, scaling will also take a big part in the concept. Scaling
pertains to the proportion of the sizes of the design pieces used in the concept. There
are two scales that are commonly used for these settings: the human scale and the
speed scale. The human scale determines the appropriateness in size of an element
with respect to the average size of a human himself/herself. Anything larger than a
human size would not be fit for the human eyes; chance, he/she will be afraid of
looking at it. For example, it will not be appropriate to put a giant statue and place it
in the centre of the resort. Thus, typical human-sized figures are recommended. On
the other hand, the speed scale refers to the proportion of the sizes used for design in
reference to the nature of the activities done in the area.

6. Adhere to technical requirements. This design element is a little bit easier to

understand but entails a lot of resources to comply with. For a facility to function
properly and serve its guests and employees, it is required for the owner and the
management to follow and procure necessary procedures for proper implementation
design. The usual requirements would be adherence to certain local laws and the
procurement of permits such as the business permit to operate and other related
permits. In the Philippines, an organisation known as Protected Area Management
Board (PAMB) is in charge of monitoring the activities and facilities on a designated
protected site. Requirements of areas such this should be strictly adhered to as there
are safety and security reasons for these areas, especially when environment and
culture are in focus.

7. Comply with needs at the lowest possible cost. For developers of

hospitality and tourism establishments, it is very important that the lowest possible
cost be utilised for maximum profitability. To others, this would be getting the lowest
price for a certain amenity of a facility bought; but for a technical designer of a site,
this would mean considering development as well as maintenance cost. Leisure and
tourism development would usually buy facilities and technical equipment for their
use such as swimming pool facilities or big buses. It is very important, however, to
make a “make-or-buy”decision for this to check on the overall expenditures that it
may incur. For example, in a restaurant , the owner would want to add an “oven” for
baking, he/she should check first if baked items are on the menu. Alson,check if
there is a baker who is knowledgeable in cooking such items, or if it fits in the design
of the kitchen. Similar to the case of a swimming pool, where one thing that should
be considered is the availability of its facility and maintenance team if ever there are
repairs and maintenance procedures needed to be done.

Another thing to enable this concept would be to use existing site resources. Most of
the time, a natural setting would give us a lot of resources to use. It is best to take
hold of these resources and use them to the company’s advantage. If there are a lot of
driftwoods in the area make use of them as part of the materials used in furniture. If
there are fruit-bearing trees in the area, make use of them and have the fruits as part
of the menu.

Lastly, and most importantly, a facility should also look into providing appropriate
structural materials in the buildup and designing phase. For example, a developer
should consider durability, appearance, availability, tactile qualities, climatic
adaptability, and drainability for an outdoor recreational site.

8. Establish design with less supervision. It is the dream of any owner,

developer, or designer that a concept be implemented with least supervision possible,
as this would also cut on cost for the facility. However, doing this is difficult because
supervision and monitoring usually go hand in hand. A concept that was introduced
to minimise supervision and costs that goes with it states that proper design can
encourage “good behaviour” while discouraging “bad”. It means that when designing,
it is important not only to clean up a space and implement a design, but also to put in
concepts that would discourage users (guests and employees) from doing bad or
untoward things. Best example of this would be the vandalising problems on outdoor
walls. A problem that usually exists for walls of different buildings are the presence
of graffiti and other forms of vandalism. To provide a solution to this, it is best that
moss ferns and vines be planted and made to grow on these walls. By doing this, a
design has been implemented and the vandalising problem has been averted as
graffiti artists would be having a hard time implementing their design with growing
plants in place.

These concepts implemented together will lead the guest to two choices: stay or stay
longer. The servicescape perceptions are very much important in the decision
process of a guest. This is why hospitality and tourism companies must really give
their best to create environments that encourage longer visits, which would result in
better revenues.

Importance of Servicescape
The concept of servicescape is very much significant in designing the entire guest
experience within the context of tourism and hospitality. It makes it easy for the
owners, management team, and staff to deliver the image they would want to project
to their guests. Below, this concept is highlighted to further emphasise its
importance.

● Expectations - The environment largely influences guest expectations, even

before the service process. This can be reflected as the guest would expect
cleanliness as a primary concern in most cases. Peiro-Signes (2014) conducted
research on the impact of environmental certifications on hotel guest ratings.
Results show that although the responses vary depending on the level of
service of the hotel, with the industry’s push toward sustainability,
environmental certifications give luxury hotels some competitive advantage
and allow market share gains with their group.
● Mood and Emotion - another importance of the servicescape is that it sets
the mood for the guest and somehow evokes their emotion along with their
experience. The mix of the different elements will considerably affect the
guest’s mood even before he/she enters an establishment. Ellis (2008)
highlighted in his study that experience staging is very important, most
especially in recreation establishments. This concept includes traditional
organised programs which extends to guest interactions, activities, programs,
events services, and ultimately, the venue ( servicescape) itself. Because of
 these, the guests feel the value of their experience. As a result, the memories
created by these experiences would turn to positive expressions, such as
guests deciding to commit their time for an establishment promotion, their
willingness to participate in programs, their decision to accept the different
risks involved in implementing the programs, and ultimately, their decision to
spend their money in the establishment’s offering.
● Employee Satisfaction - The service setting als has an impact on the
workforce— the employees or also known as the team — who do not even use
the service but are affected by it. It is a very significant part of the employees’
daily routine because they work in these places most of the time, hence the
exposure. Naturally, the service setting should be clean and orderly,
conductive to work in, and well -designed to harness employee satisfaction,
which somehow relates to guest satisfaction. Special attention to details in the
service motivated the employees to work as they know they can be productive
in a safe and orderly space.

A study made in the banks of Turkey (Leblebici,2012) shows that the

workplace environment in terms of physical as well as behavioural
components is a part and parcel to achieve work productivity of the
employees. For the work setting, areas which are deemed important to them
include furniture and furnishings, office, space, interior surface, and storage
of materials. While behaviorally, interpersonal relationships, emotional
factors, job assignment, overtime duty, and extended work contribute to the
employees’ positive environment. This only shows that the service setting
really contributes to the employees’ welfare and development.

● Service Production Factory - To some, the setting may only be a service

backdrop; but in reality, it is where the guest co-produces the experience with
the different aspects of the service product. This is why the service setting is
often referred to as a service production factory. It is quite different in the
manufacturing industry as in service, the guest is in the middle of it. Within
the “service production factory,” the guest undergoes and co-produces the
service experience and the service setting has a big role in the guests’
satisfaction and , eventually, loyalty.

Heide (2007) also emphasised the role of architecture in shaping the guests’
experience and how they react to it. Hotel managers, as part of the planning
process of the service setting, regarded ambience as a very important aspect in
the operations, nourished by staff attitude through friendliness and care. With
these, guests have an easy way on how to respond to these cues with the help
of hotel ambiance architecture. These architectures tell a story, especially
those properties based on local history and shared pride with original
buildings and fragments.
● Function Value - Lastly, service setting is important because of its
functional value. With the guest as its central concern, the establishment’s
focal reason for existence is to provide a safe and easy to use and understand
place. Safety and security could not be more highlighted than before as there
are a lot of technological advances that can be accessed by other people. This
is why it is a major task for people of safety and security to convince probable
guests to come to the property and enjoy the facilities.

Hilliard (2008) had a similar aim in his paper about safety and security as
part of the servicescape for meeting planners. The paper involved exploring
attitudes of the different planners regarding the concept of safety and security
and checking how these attributes affect the site inspection process of the
planners while influencing the decision-making process of the planners in
selecting the hotel as a probable venue. Consistent with previous studies, The
respondents clearly indicated that safety is a usual and significant factor in
selecting a hotel as a venue, and most of them asked about safety and security
factors. Truly, this is one of the basic but important attributes that a guest
would try to consider in decision-making.
CHAPTER 5: Service Staffing in Tourism and Hospitality
Industry

Introduction
This chapter discusses the process of selecting and screening employees that would
fit the requirements of the hospitality organisations. Further, techniques about the
training, developing, empowering, and equipping talents to fit into the culture of the
organisation shall be discussed as well. This chapter explains the role of employee
empowerment and how it can affect the services provided by hospitality
organisations. Moreover, this part of the book imparts the importance of having the
right mindset in the organisation and how culture influences employee productivity
in the organisation.

Content
Every hospitality organisation,whether it is a hotel, restaurant, resort, lodging house,
spa, amusement park, and the likes, would want to be known as a business that
provides the best quality of service and uniqueness. These can only be realised if the
services that they provide are acceptable to the guests or customers. Since customer
expectations differ from one to the other, the organisation is anticipated to provide
the best services that they can to avoid unhappy guests. Any guests dissatisfied with
the services that an organisation renders would not only be also an opportunity to
earn profit., but also a nonbeliever that would spread displeasure in the organisation
to other potential guests. Repercussions resulting from this may be immeasurable
and can affect the operation of the organisation.

AMong service-oriented organisations, a vital role is played by the stagg in rendering

the services that the organisation promises to provide among expectant guests.
Unlike in the manufacturing industry where success is mostly measured by the
quality of the product produced, the product in the service industry starts and ends
with the interaction of guests and staff. A successful service is measured starting
from initial salutation to the guests when they inquired about the company and ends
after a staff member has called and thanked them for choosing the organisation.
These could only be provided by competent and dedicated staff that are willing to go
the extra mile for the ultimate guest experience.

Staffing for Service

Whenever there is a need for workforce requirement or there would be a position to
fill in the department, it is often referred to the human resource department or to the
talent acquisition division of the organisation to find a suitable person for the spot.
This is the correct and usual process, But it is also important for a person, as a future
manager, to study and understand this process to facilitate efficiency and accuracy of
finding the right person for the position in his/her team or department.

When hiring employees for the department, it is best to look first at the requirements
needed for the position rather than looking at the applicant. Short-sighted managers
would often look at applicants’ credentials and experiences before even considering if
the tasks and responsibilities required of the employee fit the applicant. Similar to
sports, coaches would have a long-term plan for their teams and the character they
should embody. A defence-oriented coach would not acquire a one-dimensional
scoring champion since the player would not fit in his/her time. MAnagers should be
able to carefully study the needs of their department. To achieve the plan or objective
of the department, the manager must first have an inventory of the available talents
in the department. After which, analyse the workforce needs that would complete
existing in order to meet the goals of the department. Consider a systematic and
exhaustive assessment of the employee needs of the organisation in order to identify
the needed competencies and specific job requirements of the organisation. Further,
managers should always consider forming a team for a long run to avoid spending
time doing the process repeatedly. The repetitious exercise would be resource-
consuming and counterproductive.

Tourism and hospitality-oriented organisations look for other factors aside from the
usual credentials required to land a job, such as educational attainment, physical
features, and skills. Since the employees are often interacting with guests,
organisations seek employees with the abilities that could provide the best guest
services. Applicants should have the right attitude that could provide the best guest
grace under pressure, integrity,and going the extra mile to be strongly considered by
companies. Many applicants have the right skills and credentials but very few
possess the right attitude for the job.

Many organisations, when hiring new employees, set their criteria based on the
model employee of the organisation. Employees who perform well are appreciated
and loved by the organisation, as much as possible, the organisation would desire to
have many of these kinds of employees. The organisation then looks for new
employees who would at least approximate the skills, character, values, personality
and abilities of their finest employees. This style would somehow guarantee that the
new employee that the organisation is hiring would perform well in the organisation.

In terms of recruitment, it is suggested that the values of the brand are clearly
marketed or advertised to internal customers right from the beginning of the hiring
process. This would tart with very clearly written job descriptions to address job-
specific requirements, and then more broadly to familiarise potential employees with
the value and mission of the organisation (Kim,Kim,Kim, & Kruesi,2019)

A common practice of organisations today when looking for new employees is to

generate a profile matching the specific requirements of a particular position
together with the abilities and talent of their top workers. The profile that was
created would become the basis when looking for new members of the team.

In the service organisation, specifically in the hospitality and tourism, it is a must

that frontliners must possess extraordinary traits that are not common among all
employees of the organisation. These traits should be embodied by the employees
since they are always in constant contact with the guests. The different traits that
should be possessed by the frontline employees include: service-oriented,
empathic,enthusiastic,responsible,polite,considerate,conscientious and customer-
focused.

After defining the required profile of the employee, the organisation can now proceed
to recruitment. There are several ways to fill the need for the positions, the
organisation may look for new employees outside of the organisation or from within,
Entry-level positions are sourced from the outside of the organisation. If the position
to be filled is above entry-level, the organisation often looks for qualified employees
before entertaining applications from outside.

Internal Hiring
Many organisations favour internal hiring because they see a lot of advantages more
than hiring from the outside of the organisation. Although hiring from within is not
the only solution or foolproof strategy in staffing the departments, the obvious
benefits outweigh the others.

Information About the Applicant

Data about applicants from within the organisations can be easily accessed and are
more accurate compared to the information submitted by an external applicant.
Since internal applicants have been with the organisation, the previous evaluations
about the employee’s performance, work ethics, habits, strengths, and weaknesses
are recorded or observed. The limited information from an external candidate may
result in hiring mistakes. There are some external applicants that are good on
“paper” or curriculum vitae; others are excellent during interviews; and some are
simply impressive in their looks but eventually lead to wrong decisions.
Sometimes,these applicants do not live up to what is expected of them. Maybe a
factor to consider favourable to internal applicants is that they show the desire to
stay and remain loyal to the organisation. Their desire to improve and move up to the
hierarchy can be an indication of their dedication to the organisation a well.

Fairness of the Company

Internal hiring for positions with qualified applicants from within the organisation is
an objective strategy that would be received well by the employees. Hospitality
organisations are rich in employees who have varied backgrounds and are highly
competent in terms of training and education. These employees would somehow feel
unfair if the positions they applied for are given to an outsider despite their efforts
and hardwork to help the organisation succeed.

Knowledge and Experience Within Organization

Organisations favour hiring from within because some believe that employees who
have been with the organisation are already familiar with the organisation's
functions, values, and culture. Organisations favour promoting employees who have
started from entry-level positions, moving them up the corporate ladder. This
strategy may look good for the tourism and hospitality organisations but there are
two sides from the supply side of labour. To non college graduates, this is an
opportunity for them to have a higher position in the organisation and better
compensation. But to degree holder applicants, they would either settle for a position
lower than what they deserve or find a job in other industries.

Other organisations also believe that if an incoming manager or supervisor will be

coming from outside of the organisation, there is a big question of properly
supervising someone assigned to a particular task without having the actual
experience of doing the task. In the hospitality industry, in order to manage guest
service as well, a manager must know how it is like to serve a guest, or must have
experienced solving issues and concerns on the spot and resolving guest complaints
right at the moment. The point is promoting an employee would guarantee that
his/her experiences and knowledge of the organisation make him/her a better choice
to keep the organisation working.

Organization Culture and Values

Employees chosen for a position that were hired internally would have a better time
in adjusting to the organisation’s culture and values. Internal employees are already
familiar with the corporate values and need no further training. The organisation’s
culture is expected to be embodied by the employees as well. With this assumption,
internal applicants need less adjusting to their new positions since they are expected
to know how to get things done and what they are supposed to deliver.

Reduce Costs
Hiring employees entails a lot of costs in different areas. These include advertising
the vacancy to major dailies or television, workforce and logistic expenses during
exams and interviews, some organisations incur travel expenses for applicants and
human resource personnel, training and orientation among others. When an
organisation hires from within, these costs could be minimised. Cost in advertising
would be eliminated and the human resource department could just disseminate a
memo for a job position internally. Task of evaluating applicants would be focused on
internal candidates to the position and its responsibility would require less training
and orientation; other candidates may have had actual experiences in performing the
task before.

External Hiring
Employees and organisations often favour internal hiring more than external.
However, there are situations where candidates should be sourced externally.
Still,hiring employees from outside of the organisation is an option that every
organisation can choose in order to improve its operations. As there are advantages
when hiring from within, there are also very good reasons to take in employees from
outside of the organisations.

Paradigm Shift and New Perspectives

Some organisations, when they believe that the organisation is not realising its full
potential, hire people that would serve as catalysts for change. This is often evident
among positions that entail specific skills and important responsibilities. There are
tendencies that employees tend to familiarise themselves too much with how things
are done in the organisation that they forget they must ensure also that the
organisation must reach a level of competitiveness and efficiency as compared to its
competitors. With an outsider’s point of view, the better way of doing things can be
realised and applied in the organisation. A fresh perspective may set the tone on how
to improve the process of the organisation, or in extreme cases, it could determine if
there is a need for a reorganisation. Initially, this strategy may be costly, since it
involves offering attractive packages for blue chip candidates and training for the
new hires, but the benefits gained may outweigh the cost in the future.

Education and Experience

This strategy directly contradicts the idea “strat your way up from the bottom and
climb up to the top.” With the rapid pace of technological innovations applied to the
tourism industry, the demand for highly skilled and well-experienced workers make
organisations hire from outside the organisation. It would take time and higher costs
for organisations to train and develop employees from within as compared to hiring
employees that are already trained and proficient with the job required.

Diversity of Workforce
Service-oriented organisations prefer diversity in the workforce since this provides a
wider perspective in doing business. The diversity of employees equips the
organisation in understanding the varied culture of guests, preparing for the required
services, and servicing the guests according to their preferences. Both higher level
and lower level positions seek candidates with diverse backgrounds in order to have a
better workforce. Organisations gain competitive advantage when they seek out the
best employees regardless of ethnicity, cultural background, faith and colour.
Further, the labour force is represented by types that include single parents, children
with elderly responsibilities, dual-career employees, differently abled persons, and
members of the LGBT community.

Approaches to Hiring External Employees

Organisations that consider hiring employees outside of the organisation can choose
different options to promote the vacancies in their organisation. These options can
be traditional in nature or may utilise state of the art methods depending on the
preferences or possible expenses that the organisation is willing to commit.
Traditional or not, the success of these approaches still depends on how the
organisation handles the output of each strategy.

1. The Internet - The Internet may be the greatest invention of today. Every
aspect in our daily lives may have been directly and indirectly affected by the
world wide web. Many express that the world got smaller because of the
Internet. It facilitated communication, production and manufacturing,
transportation, and many other industries all over the world.
2. Print Advertising - Despite the popularity of the Internet in sourcing job
advertisement and placement engines, print media is still a common and an
effective method in advertising job requirements of organisations. Applicants
can still find ad placement for job openings among major dailies and selected
magazines.
3. Professional Linkages or Groups - Associations or groups belonging to
the same industry or sector form organisations or clubs. This functions as a
venue to keep professionals updated of current trends and situations of their
industries. This is also an effective way to find potential jobs or recruit
professionals. Often, members of the organisation seek out needs for
 applications to job openings in their companies. Some may find recruits
through connections and exchanges in club gatherings and chat rooms.
4. Internship or Work and Travel Program - This approach targets recent
graduates or students who are about to take their on-the-job training (OJT).
Job recruitment companies offer programs that would provide the young
people an opportunity to earn and gain experience as they prepare for their
professional careers. This is mutually seen as advantageous to both employer
and employees since each is expected to benefit from the other. The company
welcomes the enthusiastic, energetic and educated young individuals who also
expect to learn and grow with the organisation.
5. Referrals or Peer Recommendations - A good employee is always sought
after by organisations. Some go to the extent of offering better compensation
packages to rein in their target. These good employees are also possible
sources of new employees who may be of the same calibre as they are.
Organisations ask their hardworking employees if they know of other people
who are interested to work with the organisations as well. Good employees
most often think of the welfare of the organisation and themselves. The
tendency is to refer or talk to individuals who they think can help the
organisation as they do or can be as talented and hardworking as they are.
These employees do not want to lose dance with the organisation by bringing
in bad choices. Further, these good employees tend to be responsible for the
new employees that they brought in.
6. Company’s Image or Brand - an organisation with reputation such as the
best place to work and that takes care of its employees and values the
members of its workforce is a magnet for a lot of applicants. Being known to
be the best hospitality organisation and knowing how to take care of its
employees would help in attracting good applicants to join the organisation. A
recognition among peers or of the industry can also boost the image of an
organisation to be the best workplace to serve.
7. Walk-in Application - Applicants personally bring in their application
forms to the organisation. Despite the availability of other methods to file job
applications, walk-in application is still practised by many. Walk-in
applications are usually aimed at entry-level positions and are done by job
seekers who do not have enough work experience yet.
8. Headhunters - Other organisations seek out the services of professional
recruitment organisations when they are looking for specific skills and
particular talents that are vital in their organisations. They are commonly
called headhunters because they specifically look for professionals in the
industry who are performing well in other organisations. These headhunters
usually talk to candidates and offer packages that elicit the prospects to
consider transferring.
9. Talent Pooling - In the Philippine setting where there is an excess of
workforce and not enough job positions to fill in, it is common that companies
maintain a list of candidates for a single position. In this way, there would be
 candidates readily available to consider in cases where another slot opens with
similar requirements. Or in cases that the successful applicant did not push
through with the employment, a replacement can immediately be called upon.

After the successful recruitment process, it is now up to the organisation to select the
candidate that would best fit the requirement of the organisation. A strict selection
process is not a guarantee that the employee would fit into the organisation’s
expectation or whether the organisation has chosen well among the candidates
available. To minimise the possibility of falling into this concern, the organisations
must be able to properly screen applicants. The process of selecting and shifting
through the application may look like just matching a puzzle together, but it may be
more complicated than expected. Aside from it being a time-consuming task, it
would also be costly since workforce and resources are required to undertake this
process. To aid in the selection of the best candidates, organisations must be able to
gather as much information as possible about the candidates. In gathering the
information, there are several tools that can be used.

1. Application Form - Application forms are the most basic tool used to gather
information during the employment process. Aside from the curriculum vitae,
resume, or bio-data,the application form contains the pertinent data about the
applicant. The form includes; personal background, educational attainment,
employment history, licences and certifications, personal achievements, and
affiliations. This could further be designed to gather specific skills or
information relevant to the specification of the job.
2. Interview - Candidates who qualified after the initial screening process shall
be scheduled for an interview. The interview is a process to confirm the
information contained in the application form and to seek further data that
would help companies decide which applicant to select. Interviews are done
face-to-face or through the aid of technology using the Internet or video chat.
Other interviews involve a panel of interviewers to one applicant; or vice
versa, to save time, multiple candidates are interviewed simultaneously by an
interviewer or a panel. Employment interviews are often structured and follow
a format. This is to elicit responses of required information relevant to the job.
3. Psychological Test - Often considered as just a part of the employment
process, the particular tool measures some of the most important factors
considered when looking for employees. This test evaluates mental factors
considered when looking for employees. This test evaluates mental soundness,
intellectual capacities, intelligence, logical reasoning, memory, and other
cognitive functions of an individual.
4. Background/References - Other organisations call on references or
persons mentioned by the applicant to confirm the information about the
applicant. Former employers are called through phones to verify or validate
information and to ask if they are recommending the applicant for
employment. Drug tests and clearances from the police and National Bureau
of Investigation are checked to ensure that the criminal records of the
 applicants do not compromise the safety and security of the company and,
most especially, guests and clients.

Once the selection of the candidates is done, the most critical part is deciding on who
to hire.Candidates are selected based only on the richness of the information
gathered. It is quite more challenging if the company is in the tourism and hospitality
industry since the basis is not only on the competency of the candidate, but also on
how the employee will behave given challenging circumstances and the logical sense
of dealing properly with untoward incidents that might happen. To be hired, the
candidates should not only be able to comply with the basic requirements, but should
also be the best among the many applicants. Also, unsuccessful applicants’ profile
may be retrained so that whenever there is a need for future application, the
organisation does not need to go through the same tasking process again because
there may be qualified candidates already.

Attention is more focused on the hiring process of the organisation rather than on
selecting or removing employees from the organisation. Employee turnover is also a
concern of companies, especially those in the tourism and hospitality industry. This
industry is known to have a high turnover rate that many employees change
companies as fast as seasons would change. The dynamism of this industry provides
an opportunity for the tourism professionals to take chances and grab opportunities
that present every once in a while. Employee turnover comes in two ways: the
voluntary and the involuntary. Voluntary connotes the free will of the employees to
leave the organisation; while involuntary is when the choice of separation of
employment is made by the organisation. Voluntary separation of employees from
the service may be caused by difficulties experienced by employees, such as working
on holidays, shifting work schedule, difficult working conditions in the kitchen, or
low wages or compensation.

Training and Developing Employees to Serve

Tourism and hospitality industry organisations would least likely want to hear or
experience complaints about the service they render. The situation may be very
minor to an unsuspecting eye, but the impact could be devastating the organisation.
A misstep or an unattended request may result in a disappointed guest who may no
longer intend to return to the establishment, or worse, it can aggravate a deluge of
negative comments on social media. It may cause a storm that may crash the image
that the organisation built through the years. In order to avoid such, organisations
invest in their employees by continually exposing them to training and further
development.

Training the Employees

Hiring the most qualified and skillful staff does not mean that the service would turn
into the desired result of the organisation. Whether the employee is a new member of
the organisation or even the most veteran stagg in the plantilla, all require training
to perform their jobs properly. The new employee needs to be trained how to deliver
services and perform tasks consistently based on the values and practices of the
organisation. Veteran employees need to be updated and reminded of the policies,
practices, culture, and strategies of the organisation. Sometimes, too much
familiarity in the organisation leads to neglect and complacency that affect the
services of the organisation.

Training programs for employees is not a one shot do-it-ll type of solution. Different
issues require varied training design in dealing with issues. To make the training
effective, there should be a process to approach these concerts. The first step is to
conduct an analysis of the training needs of the employees. Managers can start
investigating the strength and weaknesses of the concerned departments to identify
the needs to be addressed, whether through training or reorganisation. It is through
proper investigation where managers can review if the issues or concerns are about
skills and competencies that the company should deliver, or are specific functions or
tasks to be performed by an employee, or are about an employee who should perform
the expected output. The result of the review can be of different levels of concern
which also require different types of training programs to be administered,

Training can be conducted in two ways: external or internal. Organisations have the
option of choosing any of the two types depending on their choices and abilities to
conduct training.

External training is conducted by training organisations and training consultants

who have the expertise and resources to handle coaching skills, needs, or any topics
required by organisations. These training organisations may vary, from a big
organisation that has a pool of trainers that can be provide specialised training for
the whole organisation or a small organisation that specialises in a particular field,
such as flight attendant training or tour guide training, The training firms cater to
service organisations that require specialised training for a small group of
participants in the organisation. The training required may be to learn specific skills
or proficiencies and oftentimes needed within a defined period of time. Further,
these training organisations can also customise training based on the requirements
of the contracting company.

Internal training, also known as in-house training, are often done by the
department within an organisation involved with the training and development of
human resources or talents. MAjor organisation sees fit to maintain a training
department so that it can personalise the training of its employees and emphasise the
type of services and culture that the organisation wants to portray and provide to its
clients.

Training organisations employ different types of training depending on the required

topic or area of expertise. These training can be a long-term program where progress
is evaluated periodically or on a short-term basis where participants are expected to
execute certain skills as part of the culminating activity. Training is often delivered in
a combination of methods, such as lecture presentations, role-play, simulations,
audiovisual presentation, cas analysis, interactive games or exercises, computer
aided methods, site visits, and reflections. Some of the common methods of training
applied by tourisma nd hospitality organisations are the following;

1. Personal Training - There are several types of personal training that can be
applied, but it usually refers to a teacher and a student type of training or
sometimes one-on-one training, between a trainer and a trainee. Mentoring is
the first of personal training wherein the one who educates or gives advice is
usually the more experienced or senior member of the team. This type of
training is done to help the newest member of the team learn the ropes and
techniques to improve their performance based on the experiences and
expertise of the colleague who was there before him/her. The next type is
called coaching, this type of personal training is a function between an expert
focused on how to build the skills and competencies of a prodigy. Coaches
inform how the correct actions should be done and how to better apply skills
to become more efficient and productive. Lastly, apprenticeship is a training
involving an experienced master guiding an apprentice to learn a new craft
through observation and hands-on experience through a set period of time.
For example, a master chef often has an apprentice that assists him/her in
preparing culinary masterpieces.
2. On-the-Job Training - Also known as on-site training, it is a form of
training where an individual learns the job through actual experiences. Often,
a supervisor or a senior staff member oversees the performance of the trainee.
The trainees are at times rotated in different departments of the organisation.
This is to maximise their exposure to the different possible tasks that they
would encounter in the future
3. Classroom Lecture - Often referred to as the traditional teach and learn
approach where the trainees listen to the trained=r about the knowledge and
skills that an employee has to know. After the lecture, the trainees may be
given exercises such as case studies as an application of the topics learned.
Case studies often involve scenarios or settings where decision-making skills
and problem analysis of the trainees are practised.
4. Simulation - In organisations where on-site training is not possible, a
simulated training area is set up for training. Trainees are made to practise
their tasks in a controlled environment that mirrors an actual scenario in a
workplace. In situations where hands-on practice is required but it is too
costly to commit a mistake in the real setting such as pilot training or
lifeguard training, simulation training can be an effective way for trainees to
learn the skills that they need.
5. Audiovisual Presentation - Audiovisual materials are often used to aid in
training sessions. Many big organisations create or commission a production
 of a standard training video that could be used and viewed by their employees
from the different branches in varied locations. The availability of online
access to videos from different sources makes it easier to provide training
materials for various training needs.
6. Computer-aided Training - The Internet of things phenomenon has
somehow made things easier for all. Many skills and certification training in
the hospitality industry are done with the aid of computers. Instructions and
exercises are done through computer programs. Trainers who cannot be
physically present can conduct training through the Internet even at a remote
location. The Internet has somehow made training available anytime and
anywhere.
7. Do-It-Yourself (DIY) Training - It refers to a training through modules
coupled with self-paced training methods. An employee learns the different
segments of the course through self-study during the time and place most
convenient to the person.

Motivating Employees to Provide Exceptional Service

The hospitality staff who are in contact with the guests must not only be equipped
with proper training and knowledge about the task ahead, but must also be
motivated to render the expectations of the customers.

Companies should encourage new ideas and behaviours of internal employees. When
employees have a more open attitude, it is easier for customers to accept new
services and products, which is conductive to the performance of the company
(Li,Li,&Gao,2019)

Most common belief is that when employees are well-compensated, it immediately

equates to being motivated. But motivation is an idea that is more than just
willingness to work just to satisfy an employee's economic needs. Employees may be
motivated to join and be with the organisation because the staff saw the opportunity
to fulfil their dreams and meet their needs. People may join particular organisations
in the tourism industry, such as hotels, restaurants, resorts, cruise lines, and airlines,
to sustain the different kinds of people's needs. Compensation (economic needs) is
one of the primary reasons that influence employees to choose a particular
organisation. Financial incentives and rewards can be a good motivator for
employees to stay with the chosen company. Other employees choose to stay and
work with an organisation because they work well with co-employees and have a
sense of belongingness (social needs); others are with the organisation because they
see the opportunity to contribute and share their expertise (achievement needs); and
some feel that they are appreciated and valued (recognition needs) by the
organisation.

Having known the different kinds of needs of employees, the company can develop
programs to address these needs. These programs can be financial and nonfinancial
in nature. Financial rewards can either be wages, incentives (group or individual),
bonuses, company stocks, or commissions. Nonfinancial rewards can come in
different forms: performance recognition, fun and enjoyment in the workplace, and
minimising stress. Performance recognition usually goes with financial rewards. But
in some cases, simple programs are organised to highlight the accomplishments of
the employees. Employee accomplishments may come from the different areas of
work or categorised based on assigned tasks, such as sales performances, innovative
projects, model employees, perfect attendance, loyalty, and length of service. These
awards acknowledge that the initiatives and efforts of the employees to provide an
exemplary service to customers are appreciated, treasured, and desired, As tributes
to the performance of employees, they are given symbolic items or gifts, such as
plaques, company merchandise, accessories, recreational or items, jewellery, and/or
electronic items.

To some employees, rewards need not be things that are given by the organisations.
In some instances, the work by itself can be the reward. Employees who are happy
with what they are doing in the company or if they are having fun while performing
their specific tasks do not feel burdened by their work. Often, these employees
inspire others and serve as role models in their jobs. Most tourism organisations
create a leisure and fun experience for their clients starting with their employees.
Among the many theme parks in the world, it can be observed that employees-
starting from the staff at the entrance gate, ride attendants, show performers, utility
personnel, and even the park sweepers-radiate that feeling of excitement and fun of
being inside the park.

If employees are to see the organisation and its associated brand as authentic, they
must receive the same type of treatment that external customers have come to expect
of the brand. This type of authentic treatment of the employees would result in
increased organisational commitment, which, in turn, would prompt further service-
oriented citizenship behaviour and, consequently, further rewards for the employee
(Kim et al., 2019).

Empowerment

Another aspect in order to encourage employees to perform better and develop into
becoming role models in the organisation is to provide them opportunities to make
decisions in relation to the performance of their jobs. Giving them the responsibility
to make decisions that can influence the outcomes enables

the employees to better understand and appreciate the value of performing well
hospitality organisations utilise employee empowerment to send signals that they are
in their jobs and being recognized as trusted members of the organisation. Many staff
are trusted by managers to make the right decisions at the right time to provide the
best service expected. Not all employees are given the opportunity to be empowered.
But once employees are given the responsibility to make decisions, they are expected
to know what to do and are trusted to execute the tasks beyond what is expected of
them.

Empowerment goes beyond allowing the employees to make decisions, organisations

should make sure that employees have the proper tools to effectively execute their
decision-making choices. Employees must be equipped well by undergoing training
on how to make sound decisions. Empowered employees need to be fully aware of
the boundaries of their responsibilities and must know when to make the right
decisions.

Since empowerment is a responsibility, employees who are given such should do it

when opportunity requires. Some employees are not up to the task because they are
afraid of the adverse effect of their decisions. For good decisions that are made, a
reward program should be formed. Rewarding employees who made the right
decisions shows that the company recognizes their efforts. It also strengthens the
resolve of employees that when they utilise empowerment properly, then their efforts
are worthy.

Empowerment can only be effective if it serves the right purpose. Not in all situations
can we say empowerment is effective. Most hospitality organisations apply
empowerment when the services they render are customised or personalised, the
connections with customers are long term, the factors affecting the business
environment are constantly changing, or their employees have strong interpersonal
skills.

Culture

Employees are more likely to accept brand values and to align their attitudes and
become committed to the brand if they perceive that the brand authentically
embodies the values they communicate to external customers and that these values
are congruent with their own (Kim et al., 2019).

A culture in the organisation is often referred to as the values, way of life. or

philosophies embodied by each member of the organisation. Most of the time, the
culture is created by the organisation to serve as the identity that it would like to
project among its customers. Culture is an action or an attitude on how employees
should perform and think in the performance of their jobs. Culture may change
through time depending on the direction set by the organisation. Sometimes,
influences by new members from their past work experiences can create changes in
the organisation. Managers of the organisation in charge of maintaining the values
and ideologies should be aware of the possible effects that can either be detrimental
or beneficial to the established norms. To avoid these complications, the
organisations may start providing orientations to new members. New employees
should be taught the cultural beliefs and assumptions of the organisation even before
they start in their new jobs. It is very important for tourism and hospitality
organisations to establish their culture firmly in order to provide consistent service to
their respective clients. If employees are properly taught about the organisation's
culture, they would be able to discern how things should be, to distinguish what is
right and wrong, to differentiate the preferred and not preferred actions, and to
deliver the expected performances.

Among many organisations, especially those that have a large number of employees,
may experience a formation of subcultures. Subcultures develop oftentimes among
large companies composed of many units with many members involved in the
culture. These units may create their own subculture unconsciously different from
the other units, especially if the exchanges, interactions, or communication with the
other units are not regular. Other factors may also contribute to the creation of
subculture, such as cultural ethnicity, nationality, faith, and geographic settings.

Culture should be properly communicated among the members of the organisation to

affirm and reinforce the shared beliefs, values, and norms. Tourism and hospitality
organisations communicate culture through a number of - employees ways: company
policies and rules of what the organisation expects them to do and the penalties
involved in case these are not followed; role models or model employees - these are
people that employees can look up to, emulate, and be inspired by; ceremonial
activities or rites - these give off a feeling of belongingness, rite of passage, and
strong sense of affiliation to become a part of the organisation; symbols - wearing a
pin or a cap or holding an office in a higher floor connotes an understanding of
certain hierarchy within the organisation; and linguistics- oftentimes, groups
formulate their own ways of communicating with each other by using jargons or
words in context, thereby forming an exclusive form of language not common to
those outside of the group.