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OPERATIONS MANAGEMENT In Commercial Recreation And Tourism Overview of Management The operation of any commercial recreation or tourism enterprise is initially mapped out in a feasibility study or business/operational plan that sets forth the components of the business concept. These components are used as an estimate of the long-term profitability of the business. “The Disney Example” From Fortune magazine in 1998; “What Makes A Company Great” “The Disney system puts strong division managers against a strategic planning unit that acts as a check on their power”. Cont. The Disney Philosophy has been successful over the years due to the valiant adherence to Disney values and consistent planning components. Disney people know what to expect in a Disney operation. If the operation is NOT successful, then customer service principles are used to correct the mistake. Characteristics to improve business success o o o Treat employees as “one main strategy”. Adjust your enterprise to improve as corporate standards dictate. Address as many full-service components (feasibly) to accommodate the needs of the customer. More….. Watch pricing and rising operational fees. Provide “inspiring leadership” Provide “knockout facilities” in terms of atmosphere, amenities, technology, and cleanliness. Focus on customers, teamwork, fair treatment of employees, initiative, and innovation NEW FUNDAMENTALS OF SUCCESS Plan for Unexpected Change Focus on the Process Pursue Equity Financing Strive for Uniqueness Concentrate on the Core Think and Act Globally Maintain a Contingency Reserve Fundamentals cont. Develop Relationships with Your Customers Be Fair and Flexible with Employees Address Expanded Constituencies Address/Use Environmental Concerns Establish/Maintain Solid Business Partnerships HUMAN RESOURCE MANAGEMENT IN COMMERCIAL RECREATION Creating Culture & Climate Hiring, Training, & Compensating Staff Staff Supervision & Motivation Part-time & Seasonal Labor Unions Creating Culture & Climate In creating a positive organizational culture, owners/managers should apply the following: *Select for talent *Don’t micromanage *Allow employees to navigate their own course *Help employees find roles that allow them to best express what they are Hiring, Training, & Compensating Staff Make the time commitment to do this process right Familiarize yourself w/legal implications Get a clear fix on the job Be realistic w/your expectations of the job Choose recruiting sources carefully More stuff to remember … Monitor screening procedures Become a better interviewer Do the reference checking yourself Do your best to be objective Make a decision Types of Compensation Health care programs Employee discounts Child care Employee Fitness Program Sick leave Vacation Sales commission Maternity leave Compensation cont. Insurance programs Retirement fund contributions Employee Recreation Programs Travel discounts Educational reimbursements Uniform reimbursements Professional expenses Employee housing/meals Staff Supervision & Motivation Learn employees names and treat them as individuals Don’t be afraid to do an employee a favor Employees live “up” or “down” to expectations Be aware of employees needs and goals “outside” of the workplace Cont. Try to eliminate “dull” jobs or partner them with good jobs and learning experiences Develop career paths w/in your organization Provide opportunities for recognition, praise, achievement, responsibility, and social prestige. More…. Show employees that their welfare is closely related to the success of the business Give them a real opportunity to contribute to the decisions w/in the organization Be more flexible in offering work options such as flex-time, job sharing, and parttime scheduling Offer lots of choices of employee benefits Part-time & Seasonal Labor There are often problems that occur w/part-time and seasonal staff. Do school vacation schedules coincide w/the company’s peak seasons and staff needs? Are there enough employees in the local community, or does a labor force have to be imported? Do the employees have the maturity, skills, and experiences to do a good job? Will they “burn-out” by season’s end and/or quit early? Strategies to help combat issues.. Higher pay for returning staff that completed the entire season. Bonuses for staff that complete the entire season. Hire extra staff to start the season in case you have to fire some. Provide a thorough orientation and training program for staff Cont. Utilize supervisors who understand and can communicate w/part-time and seasonal staff. Diversify jobs to reduce boredom Provide employee housing if you have hired from outside of the local community Provide employee transportation if needed Provide staff recreation programs for families. FACILITY MANAGEMENT The facility should be sufficient size for the people who are expected to attend, and have room for expansion. The facility should be designed to serve the needs of the programs and services. The facility should be designed to be flexible: mobile staging, room dividers, and changeable floor surfaces. The facility should be designed for safety, ease of maintenance, and resistance to vandalism. Facility info. continued Facilities should provide aesthetics and amenities that the participants want, to include attractive lounges, furnishings, color, décor, adequate parking, etc. Facilities must be maintained in a safe and attractive manner. Every facility must have written operating procedures that everyone understands. Facilities also must have security procedures clearly identified and put into place. RISK MANAGEMENT Identify ALL Risks Analyze Every Risk Develop and Implement Risk Strategies 1. Low Risk 2. Moderate Risk 3. High Risk