Management Tools Used by Human Resource Departments in Delivering Quality Service for Tourism - Term Paper Example

NАGЕMЕNT TООLS USЕD BY HUMАN RЕSОURСЕ DЕРАRTMЕNTS IN DЕLIVЕRING QUАLITY SЕRVIСЕ FОR TОURISM, HОSРITАLITY АND LЕISURЕ ОRGАNISАTIОNS Name Institution Professor Course Date Introduction Augmenting competition, technological development and complexity in the business environment have promoted the significance of quality management. Total quality management helps in increasing a firm’s market share; promote customer satisfaction besides promoting competitive advantage. In this regard, there is a close link between improved or healthy business performance and total quality management. There are several tools used for quality management in the service industry. Quality management assists firms in identifying, assessing and analyzing quantitative and qualitative data relevant to a firm. Quality management tools facilitate identification of statistics, ideas and procedures and other pertinent issues that are crucial to a business. In addition, quality management tools promote standardization, efficiency and effectiveness and general quality of products, work environment, service and procedures. Drawing upon relevant academic literature, this paper describes and critically evaluates drawbacks and benefits of quality management tools in international tourism, hospitality and leisure organizations. Quality management Given the increasingly competitive business environment and fluctuations in guest service levels in the hospitality firms, scores of companies are adopting total quality management. Total quality management is a concept that functions well in the hospitality industry (Walker & Miller 2009, p.222). Total quality management is important in the tourism, leisure and hospitality because its goal is to guarantee constant quality improvement of products and services for customers. Total quality management or quality management entails the functions and actions involved in verifying quality policy. It entails a structured and detailed perspective to organizational management that functions to enhance quality of services and products via constant refinements in reaction to constant feedback (Walker & Miller 2009, p.222). Quality management involves the action of organizing all tasks and actions requisite in preserving a needed quality level. Quality management makes sure that a firm, service or product is reliable. It does not focus on a service or product only but also on how to attain quality and it entails execution and implementation of quality assurance, quality improvement and quality control (Dahlgaard & Kristensen 2008, p.209) . The quality management course espoused in a firm establishes the quality management techniques suitable for a given organization. The value of quality management entails guiding a business towards enhanced performance. Tools and Techniques for Quality Management Chen (2012, p.1073) asserts that it is not easy to offer a definitive list of the very huge number of techniques and tools used in executing total quality management. The diversity of techniques and tools applied in quality management programs in diverse industries is mirrored in the quite distinct lists that different scholars have proposed over the years. These tools include flow charts, Pareto diagrams, cause –and-effect diagrams, run charts and graphs, scatter diagrams, histograms and X bar and R control charts. The new management tools include arrow diagram, systematic diagram, relations diagram, matrix data analysis, matrix diagram and process decision programmer chart. Others include business process reengineering, six sigma and ISO 9000 (Chen 2012, p.1073). The tool commonly used for quality management in the tourism, hospitality and leisure industry include SERVQUAL model, the process approach that include the ISO 9000 and ISO 9001, the balanced scorecard and the six sigma initiatives. The Six Sigma Tool According to Tennant (2001, p.7), six sigma can be viewed as a philosophy, a symbol, a metric, a vision, a goal and a methodology. The six sigma technique is established upon intricate issue and has developed to become an all-encompassing tool for customer quality and change. Pearlman and Chacko (2012, p. 49) claim that the six sigma was established by Motorola as a quantitative approach that instigates enhanced efficiency and effectiveness in a firm. In the contemporary world, six sigma techniques is utilized as a detailed business performance methodology in firms as diverse as prisons, hospitals, banks, local government departments and multinational corporations. Starwood Hotels and Resorts is an example of hospitality firm that utilizes the six sigma technique. According to Pearlman and Chacko (2012,p. 54), six sigma is a disciplined and rigorous methodology that utilizes statistical analysis and data to measure and enhance a firm’s operational performance through identifying and eradicating defects in service-related and manufacturing processes. The six sigma technique describes and aligns enhancement initiatives with strategic objectives and business objectives while evaluating major processes that drive a firm. The idea behind six sigma is to measure present performance and determine the standard deviations number from the mean where the difference in a core procedure leads to customer dissatisfaction Gregory & Parsa (2009, p34). The six sigma quality management tool functions to obtain breakthrough knowledge on how to enhance processes to lower customer dissatisfaction besides improving efficiency and effectiveness (Pearlman and Chacko 2012, p 54). It has five stages which include define; measure, analyze, improve and control (DMAIC). Benefits and Drawbacks Pearlman and Chacko (2012, p. 51) assert that six sigma quality management tool in hospitality and other service industries facilitates the growth of innovative customer-focused solutions and cost savings. In Starwood Hotels and Resorts, the six sigma tool promotes innovation and formulates tens of millions in new revenue through combining efficiency and creativity. In 2006, programs established under the six sigma model conveyed more than one hundred million dollars in profit to its bottom line in Starwood Hotels and Resorts. According to Pearlman and Chacko (2012, p. 57), the six sigma technique allows associates to create innovative customer focused solutions and it transfers identified innovations across the firm to enhance quality and consistency of visitors’ experiences. The six sigma technique establishes increased satisfaction and productivity that in turn augments customer loyalty, lowers employees’ turnover, lowers costs and increases a company revenues besides creating a balance amid workers’ work life. The Six sigma technique also increases employees’ motivation and improved workflow. However, the six sigma technique is expensive to implement and requires extensive training of staff (Kumar & Rupp 2009, p.187). In addition, this quality management tool is time consuming as it requires adequate time to gather information, educate people involved in the process and execute required changes. Balanced Scorecard A balanced scorecard is management and strategic planning system utilized extensively in business to support business practices to the strategy and vision of a firm, enhance external and internal communications besides monitoring a firm’s performance against strategic objectives (Doran & Chow 2002, p.37). According to Weygandt and Kieso (2009, p.23), the balanced scorecard is a performance-measurement approach that utilizes both nonfinancial and financial measures to assess all factors of a firm’s operations in an integrated fashion. The performance measures are connected in a cause and effect fashion to make sure that they all tie to a firm’s general objectives. Balanced scorecard develops on some major concepts of total quality management including continuous improvement, employee empowerment and customer-defined quality (Moreo & Xiong 2009, p.46). Balanced scorecard offers a blueprint that offer performance measurement. It allows service industry leaders to gauge development towards strategic goals. This tool holds non-financial and financial metrics that measure performance centering on diverse factors of operations. In hospitality, leisure and tourism industry, balanced scorecard offers the firms ‘management evocative feedback for application in optimizing their firms (Moreo & Xiong 2009, p.46). The use of balanced scorecard is prevalent among popular firms. For instance, Hilton Hotels Corporation utilizes the balanced scorecard to assess the performance of employees. Daft (2013, p.636) asserts that the balanced scorecard has become the hub of management control systems for years. Benefits and Drawbacks Lapointe (2005, p.45) ascertains that even if the power of Hilton Brand attracts customers during their first visits, sustainable and continuing profitability depends on customer loyalty. Through application of balanced scorecard, Hilton hotel was able to attain a three percent higher profit margin between 2000 and 2002. The balanced scorecard helps in increasing customer satisfaction and customer loyalty. This quality management tool also increases the competitive advantage of a firm besides increasing brand equity through strengthening quality control of the Hilton experience. Balanced scorecard offers visibility of measures and goals in core business procedures connecting these to client perspectives and financial performance to allow future investment in process innovation. This quality management tool is applicable in offering extra metrics to the normal financial measures in yearly reports. The scorecard helps in determining operational weaknesses and strengths across business program such customer service, operations and logistics and quality management Daft (2013, p.636) asserts if managers execute the balanced scorecard using performance measurement approach instead of performance management perspective that connects measurements and targets to corporate strategy, application of balanced scorecard can hinder or lower organizational performance. For balanced scorecard to be successful it must be integrated in decision making mechanism and this calls for sustained senior management, attention and support. It may also take years before measures and goals and their connections are properly comprehended (Dodgson & Salter 2008, p.1). ISO 9000 Standards ISO 9000 holds a generic set of needs for executing a quality management system (Cheng & Gallaway 2009, p.32). This standard provides that a desired upshot is attained more effectively when actions and linked resources are controlled as a process. The ISO 9000 tackles diverse factors of quality management and hold ISO standards. These principles offer tools and guidance to firm and companies that want to guarantee that their services constantly attain customer’s needs and quality is constantly enhanced. The ISO 9000 standards are founded on management principles that include powerful customer focus, motivation and effects of the top management, continual improvement and process approach. These principles ensure that clients receive good quality and consistent services and products. Benefits and Drawbacks Use of ISO standards improves customer satisfaction, increases efficiency and revenue. This quality management tool help firms in gaining a competitive advantage over their competitors. However, ISO 9000 requires extra external costs for registration and audits besides internal costs to revise principles and alter work procedures and processes. Application of this tool alters work process that may temporarily disrupt business and impact the morale of employees (Yates 2006, p. 178). The ISO can be expensive. In addition, it can be complex to alter employees’ behavior and this tool can be met with resistance which can consequently affect a firm productivity and profitability. Changing employees’ behavior is the most challenging factor when implementing ISO 9000 standards. SERVQUAL SERVQUAL is the most acknowledged method of measuring service quality in all hospitality, leisure and tourism firms. The hotel and hospitality holds elaborate criteria for categorizing hotels into diamond and star ratings. SERVQUAL hold five dimensions which include tangibles, reliability, responsiveness, assurance and empathy (Vijawvargy 2014, p.61). All these dimensions are crucial to clients. SERVQUAL is a suitable quality management tool that helps in measuring the quality of service delivery in hospitality, leisure and tourism industries. This tool represents service quality as different amid customers’ expectations and clients’ perceptions of service. The model is founded on expectations disconfirmation referred to as disconfirmation model (Saleh & Ryan 1991, p.324). This tool determines any causes of an gap amid the expectations of customers and their perceptions. Benefits and Drawbacks SERVQUAL quality management tool enhances quality service, increases revenue besides augmenting customer satisfaction and loyalty. This tool allows evaluation of service quality from the perspective of the customer. Companies can truck the perceptions and expectations of their customers over time through this tool. In addition, the model allows for comparison to rival firms on general aspects. On the contrary, SERVQUAL does not draw on founded statistical, psychological and economic theory. The universal applicability of this technique for all service sectors is complex and the technique fails to measure service outcome perceptions. Effects of Quality Management Techniques on Firms and Employees Quality management tools can help service firms to enhance their service procedure. Guests at hospitality and leisure firms expect excellent service when they access and visit reservation tools. Service model such as the six sigma technique allow guests to access facilitates at all times. According Peris-Ortiz & Garcia (2014, p.4), quality management tools may enhance the internal functions of a hotel which allows it to augment productivity of facilities and employees, improve efficiency, lower waste and costs when offering a service (Lam, Zhang & Baum 2001, p.158) . These tools also hold positive impact on customer satisfaction that in turn allows firms to augment their market share and sales, establish guest loyalty, and enhance their image besides attracting new guests (Tutuncu & Kozak, 2007, p.3). As a result quality management tools may improve the competitiveness of leisure, hospitality and tourism firms via process standardization, error reduction, waste reduction and efficient services. However, implementation of quality management tools may destruct a firm’s success and prevent positive outcomes. Barriers that may prevent implementation of quality management system in leisure, hospitality and tourism industry include lack of resources, employee resistance to change and lack of employee enthusiasm. Lack of devotion on the side of employees and managers is a major problem. Lack of commitment by the management blocks delegation of responsibility to employees (Charantimath 2003, p.52). However, to enhance commitment among employees, the management must promote increased responsibility for quality among employees. Quality management should augment employee involvement and customer and employee satisfaction. Quality management can prompt job demands and lowers the involvement and satisfaction of employees (De Menezes 2012, p.326). In situations where quality management techniques instigate employee dissatisfaction, job enrichment aspects should be implemented. Conclusion Faced with new markets and augmenting competition, service operations are finding it important to enhance the customer-orientation and service encounter through paying closer attention to service quality, availability and cliency. Service industry constantly track, measure and enhance their service quality, cliency and availability to remain competitive. The quality of service in international tourism, hospitality and leisure industries is a crucial aspect for successful business. The existing trend of full quality management in hotel industry guarantees attainment of competitive advantage for service firms such as hotels. There are several tools used to measure service quality in leisure, hospitality and tourism industry. These tools include SERVQUAL model, the six sigma, balanced scorecard and ISO 9000 standards. While these tools hold enormous benefits to firms, they have some drawbacks and can affect the behavior of employees. Reference List Charantimath 2003, Total quality management, Pearson Education India, Delhi. Cheng, C & Gallaway M 2009, The Kyoto protocol: The clean development mechanism and the building and construction sector, UNEP/Earthprint, Japan. Daft, R 2013, Management, Cengage Learning, UK. Dahlgaard, J & Kristensen 2008, Fundamentals of total quality management, Routledge, UK. 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