Management In Service-Oriented Business Settings PDF

Management In Service-Oriented Business Settings Prepared By: Buena Brigitte G. Beltran Learning Outcomes After Completing the Session, The Learner Shall Be Able to: ✓ Define Management ✓ Discuss The Different Management Functions; And ✓ Explain The Characteristic Of A Service- oriented Busine...

Management In Service-Oriented Business Settings Prepared By: Buena Brigitte G. Beltran Learning Outcomes After Completing the Session, The Learner Shall Be Able to: ✓ Define Management ✓ Discuss The Different Management Functions; And ✓ Explain The Characteristic Of A Service- oriented Business That Requires The Manager’s Attention Management In Service- Oriented Business Settings Business tools and technologies (BTT) are resources that can help managers of organizations achieve their targets productively and make their businesses transform in any way to become more effective and efficient. For service- oriented businesses like hotels and restaurants, BTTs are solutions to make the handing out of orders quicker that can give more satisfying experiences for customers. There are a broad range of BTTs to aid managers. However, acquiring available BTTs do not automatically lead to better business outcomes. In the quest for the best, managers can become overwhelmed with the variety of options given a set of problems to be addressed. This becomes a problem, especially in cases when resources are limited. To make the best use of these resources, managers must apply the right BTTs that match the management functions. Managers must be able to identify the right tools given the operating conditions and management requirements. This will help them acquire these tools that will likely assist them. There is an impression that price of solutions can give the best results. However, one must note that improvement in business performance can be felt when BTTs choices are made to address specific problems in business settings. WHAT IS MANAGEMENT? Understanding the nature of management allows an organization to perform better. Broadly, an organization is a group of people who work together in a setting to achieve set goals. An organization can be any social unit that sells products or services. It can be an enterprise that produces materials demanded by sellers. It can also refer to your office that is engaged in activities to oversee other offices. An organization’s relevance stems from its ability to meet its purpose. Goals are broad targets set by individuals who are responsible for putting people together to become an organization. Think of goals as measures of what an organization aspires to do after a given time.  Goals articulate the purpose of any organization and communicate why an organization exists in the first place. They define the expected performance of an organization. Achieving goals serves as the measure of success of an organization. This is one of the key concerns of managers when starting an organization or during the period when the business cycle begins. To managers, goal setting is important as this communicates what is expected of the organization for a given period. To achieve these goals, an organization will need resources. Broadly, skills, talent, and materials can be referred to as resources. Resources can be anything with value or the potential to generate benefit to an individual or organization. Using resources should allow organizations to create more value. Materials, such as office supplies and ingredients, are inputs used by the organization to run its activities. Technical skills and talent are also necessary for any organization to transform materials into useful forms. To organizations, skills, talent, and materials are resources needed to meet the unit’s purpose. This book views BTTs as resources of an organization. Imagine a cook that prepares your meal. The cook prepares ingredients or resources to prepare the food. But in order to prepare the meal for a given period, the cook may use different solutions so that food is prepared on time and tastes good as expected. For an organization, BTTs can be generally viewed as resources. In particular, they are technological solutions or new ways of doing things to perform according to expectations. They are valuable and beneficial because using BTTs can assist organizations in meeting their goals. However, having resources does not automatically generate benefits for the organization. The skills, talent, and materials of a company are held by people and other groups who may have different views of what must be done. Differences make working together in a social unit challenging because there is a need to match attitudes among members of a team. Differences in opinions can lead to problems and even conflicts in the future. While a purpose to form a social unit into an organization may have been clear when a business is established, familiarity and commitment to the goal may wane over time. For managers, an organization ceases to function if It cannot allow different people to work together to meet their goals. This is where management comes in. Management is the approach to making people work together and perform as one unit. Management can be defined as the set of activities employed to meet the goals of an organization (Griffin 2014, 4). Management deals with resources and the people who possess them. By viewing a situation from a management perspective, the head of the social unit can decide what to do to meet its purpose. In the context of organizations, the managers are tasked with carrying out the management of the unit and other units attached to it. The person in charge of managing an area or unit will generally be referred to as a manager. WHAT DO MANAGERS DO? Management covers several activities and affects different processes within an organization. While a manager can be involved in a variety of activities, there are four broad functions that constitute the work of all managers (Griffin 2014, 7-8). These are the following: 1. planning and decision-making; 2. organizing: 3. leading; and 4. controlling.  The first management activity constitutes planning and decision-making. Planning involves setting the goals of the organization. The organization’s goals are the reason why social units are formed into organizations, so it is important to set these first. Setting a goal is like setting the path that an organization must take in the future. Over time, these goals need to be modified to adapt to the organization’s future with the changes in the environment, the composition of the organization, and the resources it requires and has access to Planning could be likened to imagining the future that a group should take. When managers are involved in planning, they formulate new goals to guide present actions and align them to reach a future state. Setting these goals requires the judgment of the situation to determine which factors are relevant. Organizations can be in different circumstances that will warrant certain goals to be prioritized. Setting goals also involves identifying what resources are required and what to do. This process of determining what must be done is referred to as decision-making. Decision-making translates a plan into component actions for a given condition. While planning is to imagining, decision-making is to choosing what actions will make a plan a reality. Decision-making is the exercise of judgment by managers to make goals happen, considering the situation that the organization is in  Decision-making can be made formally through company letters from the management cases, decisions are passed verbally or through meetings to express urgency and affect how people behave for a given occasion. Planning and decision-making can be challenging for many managers. They will need to have an idea of what they have and an understanding of what people can do. The situation may bring with factors that can limit an organization’s performance Managers may need additional resources to help them make sense of the environment they are working with in order to imagine and put their plan into action. Once goals are set and decisions are made, managers are then tasked to organize people and the resources to carry out the plan and decisions. An organization can be involved with so many activities to meet the goal Organizing refers to the process of determining how activities can be grouped and what tasks should people perform so that individuals and the resources they possess can be utilized to achieve the goal In large businesses, organizing can involve grouping individuals with complementing talents into teams or attaching a unit to another group of people so they can work together. Organizing also involves allocating the resources needed to make these teams work. This can be a daunting task for most managers. They may need to find solutions to match limited resources that will give them the most value for a given period. Once resources are organized, managers are tasked to lead by rolling out to different key units team members the actions that need to be accomplished. Leading is a critical component of management in organizations. An organization is composed of people who do not always share the same view. Leading are actions to influence people to work together to achieve the goals of the organization. A manager leads people over time to ensure that they act together despite their differences.  Leadership activities are usually associated with messages or actions to demonstrate behavior that others will find inspiring. It requires the judgment of situations to determine the message that will influence people’s behavior. Tools may help managers convey what they want in complex organizations so everyone understands where they are and what they should do Achieving goals requires people to work over a period. During this time, resources are also spent. However, there could be lapses in the performance of individuals that can affect the achievement of goals set in the planning activities. A manager employs control over activities to ensure organization members are on track and resources are used as intended. Controlling our actions to monitor performance, usually periodic, to ensure that the activities of individuals and the organization as a whole are well within the path set by the managers Good management requires seamless execution of planning and decision-making, organizing leading, and controlling Planning sets the future and decision-making puts the image into action Organizing lets people be grouped into functional units within an organization. Since people are involved, leadership is demonstrated to keep them inspired and on track. To ensure every Individual in the organization does his/her share, controlling keeps everyone on their toes. These activities are done regularly for continuous improvement and to ensure that the organization remains relevant.  WHAT IS A SERVICE- ORIENTED BUSINESS? An organization that generates income for its owners or investors is generally referred to as a business or a company A business is a social unit dedicated to creating wealth for its owners and of people who depend on it. The owners of the company have a primary stake in the organization. Owners invest land, money, and talent with the hope of creating resources that will be beneficial to them. The owners are individuals responsible for setting up the organization designed to make profits. The owners of a company become its managers. However, please take note that ownership is not necessarily a form of management. While owners of businesses can be the managers, some business owners hire other individuals to do the management activities. Management of businesses is an expertise that business owners do not necessarily have. In addition, management requires sustained involvement in the affairs of the business, which some business owners do not necessarily have experience nor drive to keep the business afloat. Different business forms can be analyzed in terms of the inputs they use, the business processes they employ and the outputs they create that customers buy.Inputs represent the resources required by the organization. The business processes are activities and systems that transform inputs into valuable outputs. The outputs are products that customers purchase from the organization  The relationship between inputs, business processes, and outputs should ideally be a seamless one. However, that is not always the case. A particular group of people can have control over business processes. A customer usually looks at the output, but he/she is not always satisfied with what the business can deliver. In addition, providers of inputs may encounter problems before they can use this to run business processes. Managers take responsibility for this set of elements. To make their work easier, managers apply these to make their work easier. Based on this model of a business, several types of business organizations can be identified. It is important to distinguish them because the demands are different by type of business. These businesses can be distinguished in the nature of the business processes they employ, and the outputs they create. These types are service-oriented businesses, merchandising businesses, and manufacturing businesses. Components of a Business Organization Business Inputs Outputs Processes A service-oriented business is an organization that creates services an as outputs. Broadly, a service is a set of actions, information tasks, or on that are valuable to customer service. Service also includes expert work done or the convenience delivered by a contractor for another organization. In the tourism industry, the usual service-oriented businesses have hotels, travel agencies, airlines, tour guiding organizations, and theme parks A merchandising business is an organization that purchases a finished product and sell it to customers. This type of business creates profit by selling goods at a premium. They can add a few touches to the product through their business processes to ensure their outputs stand out in the market. Merchandising businesses include grocery stores, drug stores, and convenience stores. In the tourism context, they include souvenir shops and other retail stores that sell goods to tourists A manufacturing business is a business that buys raw materials and transforms them into goods. It then sells these goods to customers at a price that covers the cost of producing the finished product. Manufacturing businesses include factories and farms. They also include shops that make be spoke goods and construction companies that build infrastructures Merchandising and manufacturing businesses both sell products and other tangible goods. The key difference between the two is the business processes they employ Merchandising businesses usually purchase goods that can be readily delivered to customers with some modifications, Unlike merchandising businesses that do not significantly modify the input, manufacturing businesses employ an extensive business process in order to produce outputs that are different from their inputs. Service-oriented businesses can be easily distinguished from the other types because their outputs are usually actions, information, tasks, or sensations. Many establishments in the tourism and hospitality sector are classified as service-oriented businesses. They create actions that are useful to tourists. For instance, a transportation company provides transfers to allow a guest to visit multiple sites in a destination. Service-oriented businesses, such as travel agencies and tour guiding organizations, provide information to help tourists decide where to go and what to do when they visit a place. Theme parks provide live experiences that reinforce satisfying amusement to the guests. However, some service-oriented businesses provide goods along with the service. Food and beverage establishments, such as restaurants, bars, and cafes, are typical examples of this type. The nature of these businesses can cause confusion for some managers. For instance, restaurants can be classified outright as manufacturing businesses because they require extensive food preparation activities to transform ingredients into meals. This can be confusing for some managers and new students in the hospitality industry. To understand why restaurants and similar businesses are classified as service-oriented, students should note that the main argument for setting businesses is their potential to generate profits. Profits refer to the difference between the value of benefits gained less the cost of resources used to perform the beneficial activity. While customers buy prepared food from restaurants, the onvenience (such as purchases from fast-food restaurants) or experience (such as meals prepared by fine dining restaurants) are typically the main elements that customers pay for. Hence, food and beverage establishments are conventionally classified as service-oriented businesses.  Managers may work in various areas of service-oriented business. In most companies, these include marketing, operations, human resources, and financial areas. Several managers may be assigned to deal with the day-to-day operations while a few are charged with looking after the entire organization and the future of the company Persons assigned as managers follow the management process to meet their goals. For instance, managers assigned to the marketing functions of a service-oriented business are tasked to search for customers and entice them to buy their services. Planning would involve identifying target customers and analyzing trends to determine competitive positions. WHAT DO Decision-making would require decisions to pursue a MANAGERS DO IN A particular segment and sell services to this group. Organizing can Involve grouping employees into teams so they can work SERVICE-ORIENTED together in enticing their target customers Leading would BUSINESS? involve providing feedback to teams, so they stay motivated Controlling involves tracking sales performance to ensure that resources and time are well spent Managers can also be assigned to the operations of the company. The operations area is extensive in many companies since this section creates the services and the goods so the company has something to sell. Planning activities can include identifying processes that will do a valuable service. Decision- making would require decisions to pursue a particular set of activities that matches the requirements of marketing. Organizing can involve grouping employees into teams so they can work together. Like marketing, leading can involve providing activities, so teams perform well. Controlling would usually involve quality checks to ensure consistency of service and reliability of delivery. Some managers are in charge of taking care of people in the business. Human resource managers are responsible for hiring individuals for their talents and developing employees to adapt to changes and grow. Planning may involve identifying competencies required by the organization. Decision-making would involve prioritizing specific programs that fit the budget and create an impact on employees. Organizing may involve coordinating activities to deliver training and similar programs: Leading in the human resource context can be broad in scope since the Interest and welfare of all employees should be taken into consideration. Controlling involves tracking performance to ensure consistency with business goals. Financial managers deal with the business financial resources. They are responsible for maintaining accounting records, ensuring proper use of financial resources, and in some cases, investing activities. Planning activities may include setting profitability targets and setting budgets. Decision-making would typically involve formaling targets and budgets to match the needs and expectations of other areas. Organizing may involve setting schedules for team members to create reports and meet financial compliance requirements. Leading would involve providing feedback to different teams so that they stay within targets. Controlling involves tracking financial performance to ensure that funds are well spent. The type of industry that managers are in can add pressure to their work. The hospitality Industry is fiercely competitive. The sector faces challenges that can disrupt operations that can affect the capacity of a business to achieve its targets. Strategic management approaches are applied to evaluate relevant factors and set the direction for the company to follow. Planning activities may include defining the overall status of the organization, assuming a set of conditions. Decision-making would typically involve defining the priority actions of other functional areas of the company to make the business respond to developments and changing requirements over time. Organizing may involve setting schedules over several years for team members to meet targets as the company grows. Leading would involve regularly providing feedback to regroup teams to stay within targets and motivate them when they fall behind. Controlling involves tracking performance to ensure that resources are well spent, and milestones are consistent with the target status of the firm in the longer term In most businesses, an administrative area is assigned a separate manager. The manager must have a basic understanding of all functional areas. The management process is designed to make sure that each unit supports each other. While assigning managers to these areas is considered ideal, many service-oriented businesses do not have the people and resources to assign these managers. This situation entails applying tools and techniques and expertise to be able to run an organization. Over the years, BTTS have facilitated the merger of some management areas to meet organization goals. New technology can create shifts in management. In managing organizations, technological progress has led to the transformation of business because of its impact on the design of work and the structure of organizations (Hechanova and Magsaysay 2018, 51-52). While the availability of BTTs can be a factor in their adoption, managers must decide what tools and technologies can be integrated and utilized by service-oriented organizations. Three factors can influence the adoption of technologies among hospitality businesses: technological, organizational, and environmental considerations (Leung, et al. 2015). These factors inform adoption, which can gradually change the way businesses conduct their affairs. Technological factors consider the available technical solutions and their compatibility with other systems of the business. In the context of service-oriented businesses, particularly hotels, new business tools and technologies may be adopted based on how they are expected to improve business activities and address customer needs. Given that managers aim to link different teams, so that they work together, the technology's compatibility with other tools used by the organization is crucial. Risks are also considered when adopting business tools and technology assigning managers to these areas is considered ideal, many service-oriented businesses do not have the people and resources to assign these managers. This situation entails applying tools and techniques and expertise to be able to run an organization. Over the years, BTTS have facilitated the merger of some management areas to meet organization goals. Over the years, BTTS have facilitated the merger of some management areas to meet organization goals. New technology can create shifts in management. In managing organizations, technological progress has led to the transformation of business because of its impact on the design of work and the structure of organizations (Hechanova and Magsaysay 2018, 51-52). While the availability of BTTs can be a factor in their adoption, managers must decide what tools and technologies can be integrated and utilized by service-oriented organizations. Three factors can influence the adoption of technologies among hospitality businesses: technological, organizational, and environmental considerations (Leung, et al. 2015). These factors inform adoption, which can gradually change the way businesses conduct their affairs. Technological factors consider the available technical solutions and their compatibility with other systems of the business. In the context of service- oriented businesses, particularly hotels, new business tools and technologies may be adopted based on how they are expected to improve business activities and address customer needs. Given that managers aim to link different teams, so that they work together, the technology's compatibility with other tools used by the organization is crucial. Risks are also considered when adopting business tools and technologies. While there are benefits when innovations are introduced, these also present risks to the company in terms of security and reliability to support business processes.ologies. While there are benefits when innovations are introduced, these also present risks to the company in terms of security and reliability to support business processes. Another set of considerations relates to the attributes of the organization. BTT must be affordable to the organization so they can acquire them. There must also be an adequate technical know-how to make the best use of business tools and technologies. In addition, the managers must also support the adoption of new technologies before technological progress can be incorporated into the business. Businesses will be concerned with technological progress if it can support their ability to succeed in the industry. The nature of the industry and the degree of competition are vital factors for managers when they adopt innovative business tools and technologies. Pressure from business partners can also force businesses to acquire new technologies in view of the competition among companies. The ability to meet customer demand is necessary to survive in the industry. As such, it is believed that the market and expectation from customers is a significant facilitator that encourages hospitality businesses to adopt and use new business tools and technologies. Figure 1.3 summarizes the three factors that can influence the adoption of technologies among businesses. Managers must decide the tools and technologies that can be integrated into and utilized by service-oriented organizations. The choice of business tools and technologies can affect management processes, which can lead to the transformation of the business as it affects the work and the structure of organizations END OF SLIDE  CHAPTER QUIZ SEATWORK TASK TO DO: Laboratory ( Group )  Laboratory Activity: In most service-oriented businesses, managers are assigned in marketing, operations, human resources, financial, and strategic functions. Arrange yourselves into groups again. This time, review the service-oriented business examples you have presented. Try to learn more about these examples by searching for more Information about the companies on the internet. Based on your research, choose one company that you are most interested in. What are some of the management problems faced by businesses? Cite at least one for each of the following types of management: Marketing Operations Human resources Check the company history on the internet. Did the company apply solutions to solve its problems? What do you think are the main considerations (technological, organizational, or environmental) that made them adopt these solutions? Prepare a short presentation to share in class. Format: - Paper Size : 8.5” x 13” - Margin : 1” all sides - Font Style : Time New Roman - Font Size : 12 - Spacing : 1.5 - Orientation : Portrait  RUBRIC Good Adequate Needs Work Content Demonstrates a deep understanding of Shows a solid understanding of the Shows a limited understanding of the Knowledge the theoretical concepts and principles content but may have minor content. Major inaccuracies and relevant to the laboratory experiment. inaccuracies or lack some detail. Key omissions are present. Provides accurate and detailed concepts are generally well-explained. explanations. 28 pts 40 pts 36 pts Guidelines for Assessment: Organization Sections are clearly introduced, well Items are clearly introduced, well The portfolio is difficult to read; organized and easy to read organized Most artifacts are unrelated to the Artifacts are related to purpose of the and generally easy to read. Few purpose of the portfolio I will be using the following portfolio artifacts are related to the purpose of the portfolio rubric to assess your output: 25 pts 22 pts 17 pts Writing College-level composition, spelling, Grammatical errors, syntax errors, Multiple grammatical errors, syntax and grammar subject-verb errors, subject-verb agreement error; agreement errors confusing; use of slang 17 pts 22 pts 25 pts Format Followed the prescribed format Did not follow 1 – 2 aspects of the Did not follow 3 or more aspects of the prescribed format prescribed format 9 pts 7 pts 10 pts Total 100 pts