Hospitality Systems Overview

Hospitality Systems

• A system consists of interacting elements, principles, or procedures forming a mechanism or network.
• Early studies on hospitality systems: Livingstone & Chang 1978, included papers that addressed systems analysis and design in foodservice.
• Systems in hospitality can refer to how research is conducted (systems theory & analysis) or to actual operations, infrastructure, layout, and organization.
• Fast-food operations can link technology and systems for efficiency.

System Types

• "Soft" systems rely on non-technological aspects, such as human and social activities, employee policies, and customer service.
• "Hard" systems are technology-based, including physical infrastructure and technological components.
• Socio-technical systems combine both soft and hard elements.
• Hard systems behave predictably according to scientific laws, allowing for precise, quantifiable analysis and deterministic outcomes.
• Soft systems' behavior is harder to predict due to the influence of worker skills, abilities, motivation, and context.
• Processes are increasingly automated and computer-controlled.

Key Aspects of Systems

• The general systems view stresses the connections between inputs, transformation processes, outputs, and feedback within an organization.
• Most systems do not operate in isolation but as subsystems of larger systems.
• Subsystems in hospitality are often organized by divisions, departments, or sections based on operations.
• Effective systems require interaction, where the outputs of one system can become the inputs of another.
• Systems must work together to deliver seamless customer experiences, such as accommodations and foodservice in a hotel.
• Boundaries, hierarchy, and interaction among systems can pose managerial challenges, requiring effective communication and coordination.
• Simultaneous Multiple Containment (SMC) recognizes that systems can exist as subsystems of multiple systems, which adds complexity but supports employment and civic programs.

Systems Principles

• The Principle of Reactions states that all systems react to new technologies or processes, potentially with slow, fast, chaotic, or catastrophic responses.
• The Principle of Systems Cohesion recognizes the need to balance forces that bind subsystems and prevent them from merging.
• The Principle of Connected Variety suggests that greater interaction between systems leads to more stable relationships.

Additional Principles

• Integrating TQM values variety to ensure stability and consistent standards.
• Adaptation requires matching the rate of change in a system to its environment.
• Limited Variety recognizes constraints in space and differentiation.
• Preferred Patterns occur when interacting systems adopt locally stable configurations.
• Each hospitality organization manages processes uniquely, influenced by its workforce's experience and skills.
• Cyclic Progression involves a 5-stage cycle: system variety generation, dominance emergence, variety suppression, dominant mode decay, and survivor regeneration.

Principles Integration

• The variety of principles shows that the world is complex and dynamic, therefore specific relationships can impose structure.

Hospitality Operations

• Examples include Material Processing Operations (MPOs), Customer Processing Operations (CPOs), and Information Processing Operations (IPOs).
• Hotels are more complex than foodservice due to both lodging and food services.
• Hybrid operations are more complex to manage than non-hybrid.
• Hospitality MPOs include job shops (ala carte restaurants), batch production (cook-chill), and mass production (fast food).
• Most hospitality CPOs are service shops or mass services.
• The greater the menu variety, the lesser the production volume.

Layout Types

• Hybrid operations with batch production MPOs are typical with service shop CPOs; mass production aligns with mass service.
• Fixed position layout refers to a fixed place where a product is assembled, or a service is provided, used when dealing with bulky fragile materials.
• Process layout machines or activities are grouped to make a range of products can be made.
• Product layout machinery is laid out in sequence to make 1 particular thing.
• A combination layout consists of process combined and a product layout.

Systems analysis in the HI

• Focuses on economies of scale by "decoupling" the kitchen from service points, enabling centralized, larger, and isolated production facilities.
• Economies of scale reduce costs through size, production volume, and standardization.

Facilities Management

• Facilities Management involves managing buildings and their engineering systems.
• Systems are designed to deliver power and water, maintain temperature, provide lighting, remove waste, ensure safety, assist movement, and ensure equipment functions.

Engineering Function

• Ensure systems operate when required, work properly and efficiently and their environmental impact is minimized.

Servicescape

Definition

• Servicescape is the psychological environment in which service is delivered.
• The ambiance affects how a customer perceives the experience.

Tangible Elements

• Layout, design, decor, lighting, color, and music contribute to the psychological environment.

Intangible Elements

• Cognitive, emotional, physiological states, and behaviors affect the psychological environment.

Importance

• Servicescapes create memorable experiences by setting the tone, building connections and influencing behaviors.

Servicescape Types

• Retail aims to influence purchase decisions through layout and decor.
• Social affects social interactions through seating arrangements.
• Symbolic uses cultural or themed elements to immerse customers.

Dimensions of Servicescapes

• Ambient conditions are temperature, music and scent, and have a profound impact on customer mood and perception.
• Spatial layout and functionality deals with the arrangement of space to improve customer comfort and productivity.
• Signs, symbols, and artifacts visually communicate messages to customers.

Effects of Servicescapes

• Customers assess service based on aesthetics.
• The environment can evoke ranges of emotions.
• Servicescapes influence the length customers stay.

Employees in Servicescapes

• The layout of the workplace affect workspace productivity.
• Ambient conditions also affect employees moods and job satisfaction.

Managerial Implications

• Servicescapes drive customer satisfaction.
• Improves operational efficiency.
• Enhance the moral of the employees.

Servicescape Influence

• Customer perception of service quality.
• The length of the customers stay.
• How employees perform

Customer Loyalty & Attachment

• Customer loyalty is repeat buying driven by satisfaction, habit, or incentives.
• Customer attachment is a deeper emotional connection with a brand that includes trust, admiration, and a sense of belonging.
• HR, training, and performance management are all key components of organizational management.

Key Differences

• Loyalty is transactional and based on preference.
• Attachment is emotional and rooted in connection.

Customer Value

• The customers give earnings or profit through market intelligence.

Operations Management

• Customer feedback informs service standards and operational guidelines.

Influences

• Customer's desired production levels and trade.

Customer Impact

• Through productivity and profitability, they reduce uncertainty by assigning certain tasks.

Customer Strategies

• Used to leverage customer preference and purchase decisions for hospitality.

Relationships

• Customers have a mutli-level relationship with hospitality.
• Their behaviors impact hospitality, also depends on service.