BTTs for Service Organizations

• The chapter aims to help students define management and discuss its functions.
• It explains what a service-oriented business entails.
• It allows students to explain the characteristics of a service-oriented business requiring management.

Introduction to Business Tools and Technologies (BTTs)

• BTTs can help managers achieve targets productively and make businesses more effective.
• For service-oriented businesses, BTTs can expedite order processing.
• Managers must apply the right BTTs matching management functions for optimal resource use.
• Improvement in business performance occurs when BTT choices address specific problems.

Chapter Lesson: Understanding BTTs for Service Organizations

• The chapter will cover what constitutes management activities and how BTTs affect them in service-oriented business settings.
• It is divided in the following sections, what is management, what do managers do, what is a service-oriented business and what do managers do in a service-oriented business.

Defining Organizations

• An organization is a group working together to achieve set goals, selling products or services, or overseeing other offices' activities.
• An organization's relevance depends on its ability to meet its purpose and goals.
• Goals are broad targets set by individuals responsible for organizing the entity.
• Goals measure what an organization aspires to do over time, articulating its purpose and defining expected performance.
• Achieving goals measures success and communicates expectations.
• Organizations require skills, talent, and materials referred to as resources to achieve goals.
• Resources have value or generate benefit, allowing organizations to create more value.
• Technical skills and talent are necessary for transforming materials.
• Skills, talent, and materials meet the unit's purpose.

Role of BTTs as Organizational Resources

• BTTs are viewed as resources, akin to a cook using ingredients and solutions for meal preparation.
• BTTs are technological solutions enhancing performance according to expectations and assisting in meeting goals.
• Skills, talent, and materials may lead to differences in views and challenges in teamwork.
• Difference in opinions can cause conflicts.
• Management is vital in aligning people to work together.
• Management makes people work together and perform as one unit.
• Management involves activities, and resource management to meet organizational goals.
• The person in charge is a manager.

Functions of Management

• Management involves planning, organizing, leading, and controlling.
• Planning and decision-making involves setting organizational goals.
• Goals guide the organization's future path and must adapt to environmental changes.
• Planning formulates new goals, requiring situational judgment to align with a future state.
• Organizations prioritize goals based on circumstances and resource requirements.

Decision-Making and Organization

• Decision-making translates plans into component actions and involves managerial judgment.
• Decisions can be formal via company letters or informal through meetings.
• Planning and decision-making requires understanding of resources and capabilities.
• Situational limits may hinder organizational performance.
• Managers organize people and resources.
• Organizing determines how activities are grouped and tasks assigned.
• Individuals and resources must be utilized to achieve goals.

Leading and Controlling

• Organizing includes grouping individuals by talent and allocating resources.
• Managers task units with actions to accomplish and actions to influence people.
• Managers lead to achieve organizational goals despite differing views over time.
• Leadership activities use messages or actions to inspire and requires situational judgment.
• Tools help managers convey their vision in organizations.
• Controlling includes tracking performance regularly to ensure alignment.
• Good management needs seamless planning, organizing, leading, and controlling.
• The management process ensures improvement and relevance.

Types of Businesses

• A business or company generates income for owners/investors.
• Owners invest resources and set up organizations for profit.
• Owners may become managers or hire them.
• Management requires expertise and involvement.
• Businesses are analyzed by inputs, processes, and outputs.
• Inputs are resources. that represent Organizational requirements.
• Business processes transform inputs into valuable outputs that customers buy.
• The relationship between inputs, processes, and outputs should ideally be seamless.
• Managers oversee these components through processes.

Types of Business Organizations

• Distinguishing business types is important because demands vary.
• The types are service-oriented, merchandising, and manufacturing businesses.
• Service-oriented businesses create services as outputs like expertise or convenience.
• The tourism industry often uses hotels, travel agencies and theme parks.
• Merchandising businesses sell finished products, adding touches to stand out.
• Includes grocery, drug, and souvenir shops.
• Manufacturing businesses transform raw materials into goods. They can include factories and farms.
• Product-based businesses include tangible goods between merchandising and manufacturing.
• Key difference: the processes employed.
• Merchandising modifies existing goods and manufacturing transforms inputs.
• Service businesses products are actions, information, tasks, or sensations.

Service-Oriented Businesses in Tourism

• Tourism and Hospitality businesses, such as transportation, travel agencies and theme parks are service oriented.
• Some service businesses provide goods, causing confusion.
• Food, beverage, and restaurants can be considered as both. Students in particular should be aware.
• The main argument for setting up businesses is the potential to generate profits.
• Profits are the difference between value and costs.
• Convenience and experience are main elements customers pay for in food and beverage.

Management Roles

• Managers operate in marketing, operations, HR, and finance.
• Some manage daily tasks, while others handle the organization's future.
• Managers follow a process to find customers and entice them to buy services.
• Planning involves identifying target customers/market trends.
• Decision-making focuses on particular segments.
• Organizing groups employees into teams.
• Leading gives feedback to teams.
• Controlling tracks sales performance.

Operational Management

• Managers are assigned to company operations to create services.
• Planning identifies process value.
• Decision-making aligns with marketing requirements.
• Organizing groups operations also into teams.
• Leading means providing support for teams to work well.
• Controlling has quality checks for consistency.

Human Resource Management

• HR managers hire talented individuals and develop employees.
• Planning identifies required competencies.
• Decision-making prioritizes programs that fit the budget and affect employees positively.
• Organizing coordinates training.
• Leading addresses employee welfare broadly.
• Controlling tracks performance to ensure consistency with goals.

Finance Management

• Financial managers oversee resources, maintain records, and ensure proper use.
• Planning sets profitability targets.
• Decision-making formalizes targets/budgets.
• Organizing sets schedules for team reports.
• Leading provides feedback.
• Controlling tracks performance to ensure fund efficiency.

Management Pressures

• The industry can add to management pressure.
• The hospitality sector specifically is very competitive.
• Strategic management evaluates factors and direction.
• Activities include defining the organization's status given conditions.
• Managers' need in areas is considered when assigning managers.
• Expertise and techniques assist in running organizations.

Technology in Management

• Over years, BTTs facilitate merging management areas.
• New tech causes management shifts, impacting design/structure.
• Managers choose what can be integrated/utilized.
• Three factors influence tech adoption: technological, organizational, and environmental.
• Technology fits with business systems.
• New tools and technologies are adopted improving business activities and addressing customer needs.
• Compatibility is crucial.

Risks and Realiability

• Adoption considers risks/benefits. The risks must not be severe.
• Security is really important.
• BTTs must be affordable.
• Tech know-how is needed.
• Managers support adoption.
• Businesses are concerned with the ability to succeed in the industry.
• Competition becomes more serious.
• Customer demand drives technology adoption.