Strategic planning can be defined as a process of determining vision and mission of an organization for the purpose of achieving goals and objectives in future. This process includes creating and establishing a system to be followed by the company to achieve predetermined goals. A company develops its strategic plan at the time of offering services to employees. Without an effective strategic plan, it is not possible to accomplish the objectives in the desired manner (Phillips & Moutinho, 2014).
This report includes the strategic planning along with its key indicators and execution plan of Hilton Hotel. Hilton hotel manages its operations under Hotel Operation Tactics and Strategy (HOTS) simulation. This simulation is based on a problem-solving exercise where different departments and teams work together to frame and execute decisions (Pratt & Hahn, 2015). This report includes the key performance indicators of last three months with defining the key responsibilities of a manager working in food and beverages department. Further it includes some recommendations for the improvement in performance and eliminating issues occurred in the past three months. In order to provide an overview of report, a conclusion has been drawn on the bases of entire essence of the report (Esenyel & Mahafzah, 2016).
There are number of key performance indicators which facilitate Hilton group of hotels to analyses and measure the performance of its food and beverage department. A key performance indicator is a tool to measure the effectiveness and efficiency of the organization. There are mainly two types of key performance indicators, Low-Level KPIs and High-Level KPIs. Both of these types focus on different operations and process of the hotel (Iveta, 2012). Hilton can measure and evaluate its KPIs with the help of balance score card that includes vision and mission and focuses on the overall performance of an organization. In the hospitality industry, main categories of a score card provides the management a considerable feedback to improve the service and performance of a hotel (Srivastava & Maitra, 2016). The review of the performance with the help of KPIs can be described as follows:
Quality index of hotel is a key performance indicator that facilitates Hilton to analyses and evaluate the perceptions of customers about quality provides by the hotel.
The department keeps track of the working hours of kitchen staff to measure their efficiency and productivity. For this purpose, their work is divided into small categories like time is taken to serve breakfast, the time consumed in cooking main courses and desserts, washing dishes, cleaning etc. The results indicate various things like if the number of staff is less then requirement or it is more than the requirement if the staff members are lazy or doing their work with full capacity etc (Meilani & Anugrah, 2015).
The food and beverage department of Hilton hold a tight command regarding the stock. It adds food purchased for the week and compare the sum with actual food sales to understand the actual need of the stock. This makes the department to fulfill the sudden requirements of the customers (Onyeocha, Anyanwu, Opoola, E, & Maduakolam, 2015).
The department is often trying to find the best and most popular selling item to avoid the circumstances of short of stock. Similarly, the management also tries to find out least selling item so that investment of money in that item can be saved. These items are easily found out with the help of POS system (Ivanovic, Perman, & Grlj, 2015).
It is an important indicator of performance that is used by Hilton to identify how much people are aware of the food and beverage related services of the organization. It also indicates the relationship of the management with its customers (Dutescu, Popa, & Ponorica, 2014).
Guest satisfaction in the hospitality industry is directly linked with the staff-satisfaction. Hilton believes that it is very essential to satisfy staff members and employees to provide complete satisfaction to the guests and customers. The data reflects that Hilton is continuously trying to develop staff satisfaction with the help of promotional plans and schemes. The hotel also rewards and motivates its employees to provide better customer service (Azic, 2017). Below graph shows the increasing number of employees from 2013 to 2017 in Hilton. This shows that management is successful in satisfying the staff and thus their performance level is also increasing.
In order to improve the performance of food and beverage department, there are some key responsibilities that are required to be fulfilled by the employee working in food and beverage departments. It includes developing a strategic plan for the smooth and effective working of the department. It is the responsibility of the operational manager of the department to develop a strategic plan along with the duties and responsibilities of the employees designated on different levels. The strategy includes below mentioned main responsibilities of managers and employees:
This will be the responsibility of the manager to manage the day to day operations of the food and beverage department. It will include functions like the arrangement of raw material, guidance to waiters, cooks, arrangements of other customer service related items etc. This responsibility should be the priority of the organization because, without proper management of day to day activities, a department cannot function in a well-mannered structure (Yildiz, 2015).
The responsibility of the kitchen supervisor will include maintaining proper sanitation and pest control to keep the environment of the kitchen clean and hygienic. This also includes keeping the things of requirements at their lace so that everyone can know that where everything is. It is required to ignore some small errors which can lead to severe disasters. A clean kitchen environment also ensures the safety of guests and it may result in increasing the goodwill of the hotel (Byrd-Bredbenner, Berning, Biggers, & Quick, 2013).
Beverage includes both types of drinks alcoholic and non-alcoholic. At Hilton, both types of beverages are served as per the requirement of customers. The responsibility of controlling beverages will be lies upon the supervisor of beverages department. He will be required to keep the record of all the suppliers and the deliveries for the purpose of cost assessment. He will also maintain the record of movement of stock between restaurants and bars, so that balance can be adjusted accordingly. It will also help to estimate Economic Order Quantity for the stock (AbuKhalife & Som, 2012).
The responsibility of carrying out effective cost controlling and budgeting techniques will be handled by the accountant of the food and beverages department. The accountant can use traditional or behavioristic approach for this purpose. These include preparing budgets and comparison of budgets with the actual results at the end of the term. The accountant can also use a well-known tool of cost control in this department that is Menu Pricing. This will help the hotel in identifying the area of extra cost involves so that corrective actions will be able to apply. The process of the budget is required to be followed to ensure a high level of accuracy because budgets provide a strict and fair rule of thumb for the functioning of whole department (Yuan, 2014).
It is a must and tops most priority of an organization to provide training its employees so that they can perform in the desired manner. In order to increase its performance, Hilton in continuously trying to provide best quality training to its employees. For the next 6 months, training and development of the hotel will be responsible to provide extra training especially for those areas, which are the main reason of the negative response of the customers (AbuKhalifeh, Som, & AlBattat, 2013).
The food and beverage department is also governed by many regulations and laws. Some laws are common for all hotel and some are related to a particular hotel. The legal department of Hilton will be responsible for the proper compliance of these laws in providing services to the customers. For example: If cocktails are served at customer demand, drink and alcohol laws will impact the bar portion of the department. The food manager will be required to make sure that these type of rules and laws either being followed by employees or not (Arisseto-Bragotto, Feltes, & Block, 2017).
On the basis of above study, it can recommend that the food and beverage department is a very important part of Hospitality Industry which can lead to an organization to the top of the hill. Along with above key performance indicators used by the management, there are also some indicators which should be used by the company. These include sales per hour, sales per labor hour, seating efficiency, total seats per head, function gross profit per month, the strike rate of employees, kitchen linen costs, complaints per head, profit per table etc. This will help in analyzing the performance of department as well as its employees in depth. Further, it is also to recommend that identified key priorities and responsibilities should be properly explained by the head of the departments to the employees. It is also to recommend that Hilton should include more priorities like customer feedback, competitor analyses for strategic planning, proper coordination with other areas of service department etc. It will increase the efficiency of the management as well as improve the profitability of the department.
After analyzing the above report, it can also recommend that hotel should organize and amend its policies regarding food and beverage department in such a manner so that it can find a path to work and to perform with. The strategic management of the organization should be framed in such a way so that it can link the performance and results of different departments to achieve organizational goals.
Conclusion:
The study of the above report concludes that being a well-known brand in Hospitality Industry, Hilton is providing a high level of services to its customers in food and beverage department. It uses a number of key performance indicators to evaluate the performance of its employees which provides a true position of the employees and their responsibilities. Although there are some areas which need to be improved by following the strategic planning that is mentioned above. Further, it also concludes that if it follows the recommendations suggested above, then it can improve the performance of the whole department as well as the organization. The hospitality sector is based upon the coordination of many departments and in order to the successful and an effective performance management of food and beverage department, support from all the managers and departments is necessary. Recommendations also suggest that the Hilton should also comply with laws of food and beverages management in order to increase its goodwill and image in front of customers. The food and Beverage department and its performance management is an essential aspect of organizational performance management and should be carried out carefully to find out the actual revenue generated by the organization.
References
AbuKhalife, A. N., & Som, A. P. (2012). Service Quality Management in Hotel Industry: A Conceptual Framework for Food and Beverage Departments. International Journal of Business and Management, 7(14), 135-141.
AbuKhalifeh, A. N., Som, A. P., & AlBattat, A. R. (2013). Journal of Tourism and Hospitality, 2(1), 1-3.
Arisseto-Bragotto, A. P., Feltes, M. M., & Block, J. M. (2017). Food quality and safety progress in the Brazilian food and beverage industry: chemical hazards. Food Quality and Safety, 1(2), 117-129.
Azic, M. L. (2017). THE IMPACT OF HOTEL EMPLOYEE SATISFACTION ON HOSPITABILITY PERFORMANCE. Tourism and Hospitality Management, 23(1), 105-117.
Byrd-Bredbenner, C., Berning, J., Biggers, J. M., & Quick, V. (2013). Food Safety in Home Kitchens: A Synthesis of the Literature. International Journal of Environmental Research and Public Health, 10, 4060-4085.
Dutescu, A., Popa, A. F., & Ponorica, A. G. (2014). Contemporary Approaches and Challenges of Tourism Sustainability. Amfiteatur Economic Journal, 16(8), 1045-1047.
Esenyel, ?., & Mahafzah, A. G. (2016). The Role Played by Strategic Planning in the Performance of Hotel HR Departments: The Case of Turkish Republic of North Cyprus (TRNC). Journal of Tourism & Hospitality, 5(5), 1-4.
Ivanovic, S., Perman, L., & Grlj, I. (2015). IMPACT OF TECHNOLOGICAL DEVELOPMENT IN BUSINESS EFFICIENCY IN THE FOOD AND BEVERAGE DEPARTMENT. UTMS Journal of Economics, 6(2), 321-330.
Iveta, G. (2012). Human Resources Key Performance Indicators. Journal of Competitiveness, 4(1), 117-128.
Meilani, D., & Anugrah, I. (2015). The Design of Hotel Performance Management System in Padang. Proceedings of the International MultiConference of Engineers and Computer Scientists, 2, 18-20.
Number of Hilton Worldwide employees from 2013 to 2017 (in thousands). (2018, June 15). Retrieved from Statista: https://www.statista.com/statistics/297758/number-of-hilton-worldwide-employees/
Onyeocha, O. A., Anyanwu, L. A., Opoola, A., E, Y. F., & Maduakolam, C. C. (2015). Food costing and control: a vital aspect of hospitality industry business. Pearl Journal of Management, Social Science and Humanities, 1(4), 60-68.
Phillips, P., & Moutinho, L. (2014). Critical review of strategic planning research in hospitality and tourism. Annals of Tourism Research, 48, 96-120.
Pratt, M. A., & Hahn, S. (2015). Effects of Simulation on Student Satisfaction With a Capstone Course. Journal of Hospitality & Tourism Education, 27(1), 39-46.
Srivastava, N., & Maitra, R. (2016). Key Performance Indicators (KPI) in Hospitality Industry: An Emphasis on Accommodation Business of 5 Star Hotels of National Capital Region. International Journal of Research in Tourism and Hospitality, 2(1), 34-40.
Yildiz, O. (2015). Internal Communication Function and Hotel Productivity–A Comparative Study. American International Journal of Contemporary Research , 5(3), 45-54.
Yuan, Y. (2014). Ohiolink. Retrieved June 15, 2018, from https://etd.ohiolink.edu/!etd.send_file?accession=kent1416340922&disposition=inline
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