Introduction to Hotel operations -1

Prepared by: Vishnu Narayanan.V

Course Code: TMgt-M1031
Program Name: BA in Tourism Management
Chapter -3

Syllabus
Hotel Organisations & Departments
Organisational Mission, Objectives and Goal
Organisational Charts
Management Structure of a Hotel
Major Hotel Departments and their Responsibilities

Introduction
Need of organisation
The hotel clients (called guests in the hospitality industry parlance) receive a wide
variety of services and facilities from the hotel. To carry out all the functions
effectively and efficiently, the hotel should have a well-organized structure. Such a
structure has the following advantages:
It facilitates managerial action.
It encourages and improves efficiency.
It makes communication easier, faster, and more effective.
It ensures the optimal use of resources.
It stimulates creativity and adherence to conformity.
It creates job satisfaction in employees, thus motivating them to
excel.

Introduction to Hotel operations -1

Prepared by: Vishnu Narayanan.V
Course Code: TMgt-M1031
Program Name: BA in Tourism Management
Chapter -3

1. Organisational mission and goal

It has a purpose for existence, which is known as its mission. Mission, which
is an abstract idea, has an external orientation and relates the organization
to the society in which it exists.
According to Vern McGinnis (1981), a mission should perform the following
seven functions:
Define what the organization is.
Define what the organization aspires to be.
Be limited to exclude some ventures.
Be broad enough to allow for creative growth.
Distinguish the firm from all others.
Serve as framework to evaluate current activities.
Be stated clearly so that it is understood by all.

Mission Statement
A mission statement is the statement of purpose that identifies the scope of
a hotels operations in product and market terms, and distinguishes the
hotel from other competing hotels.
The statement should suggest the uniqueness of the hotel from its
competitors and should address the interest of guests, owners, employees,
and society
It should be clear in terms of its intention, and should be feasible and
achievable
2

Introduction to Hotel operations -1

Prepared by: Vishnu Narayanan.V
Course Code: TMgt-M1031
Program Name: BA in Tourism Management
Chapter -3

The mission statements provide the framework for developing the strategies
and operations of an organization.
Objectives and Goals
OBJECTIVES
As compared to mission, objectives are more precisethey are used to
identify the end results that a hotel wants to achieve over varying periods of
time
Objectives help to measure the progress of a hotel vis--vis its mission
GOALS
The words objectives and goals represent measurable end results.
Long-term measurable results are treated as objectives and the short-term
results as goals

2. Organisational Charts
There are three different types of organisational charts
a. Hierarchical
b. Matrix
c. Flat (also known as Horizontal)

An organization chart is a Hierarchal, Matrix & Flat (Horizontal) graphic

representation of the structure of an organizationa list of all positions and
the relationship between them.

Introduction to Hotel operations -1

Prepared by: Vishnu Narayanan.V
Course Code: TMgt-M1031
Program Name: BA in Tourism Management
Chapter -3

It shows where each position fits in the overall organization, as well as

where divisions of responsibility and lines of authority lie.
It is a visual representation of how a firm intends authority, responsibility,
and information to flow within its formal organizational structure.
It usually depicts different management functions (accounting, finance,
human resources, marketing, production, research and development, etc.)
and their subdivisions as boxes, linked with lines along which decisionmaking power travels downwards and answerability travels upwards.
The chart indicates direct reporting relationships as well as indirect
relationships, which, though not connected directly, involve a high
degree of cooperation and communication

ORGANISATIONAL CHART OF A FIVE STAR HOTEL

Administration

Room division Personal

Food and Beverage Dept

Accounts

Engineering

Training

Front Office

House keeping
F&B Service

F&B Production

Reception

Desk

Bar

Kitchens

Reservation

Floor

Room Service

Confectionary

Banquet

Bakery

Information
Bell desk

Laundry

Coffee Shop

Telephones

Linen

Restaurant

Introduction to Hotel operations -1

Prepared by: Vishnu Narayanan.V
Course Code: TMgt-M1031
Program Name: BA in Tourism Management
Chapter -3

Management Structure of a Hotel

There is no standard management structure for a hotel .in fact it will differ from the
hotel to hotel based on the size of the property and type of the hotel. The
management structure of the hotel should be designed to clearly delineate
management structure and individual and department responsibilities while
meeting the overall needs and goals .in the hotel environment structure is the best
way to channel employers effort towards productive ends.
Basic structure
Every Hotel, despite its size and amenities will split management structure into two
basic groups: administrative and operations. The administrative side of the
structure would include departments such as sales marketing accounting and
human resources. The operational side split further into food and beverages and
room division .the general manager has both administration and operations
reporting to them.
Functions
The administrative group is fairly straightforward. Any functions that do not
consistently interact with guest or impact service level falls into this group.
Operation group is bit more complicated. Food and Beverage, for instance might
include the hotels restaurants, bars night clubs, banquet department catering
departments and sometimes room service. Room division might include the front
desk and front door personal, housekeeping, concierge, guest services and
sometimes security and engineering
Types
A hotels management structure depending upon the type of the hotel: limited
services, full services. An economy hotel or motel might outsource many of the
functions and have a limited structure consisting of front desk staff and small

Introduction to Hotel operations -1

Prepared by: Vishnu Narayanan.V
Course Code: TMgt-M1031
Program Name: BA in Tourism Management
Chapter -3

Maintenance crew. Limited services hotels usually have a small staff consisting of
front desk, Housekeeping and maintenances, sales and auditing departments.
Full-service or large hotels will have the large structure consisting of rooms, food
and beverage, human resources, marketing and sales in accounting. The room
and Food and beverage departments are most complicated. Rooms division can
include reservations, front desk, House Keeping, laundry security and engineering.
Food and Beverage may include food production, food services room service,
beverage manager conventions and catering.
Major Hotel Departments and their Responsibilities
There are three different types of departments in hotels
1. Operating and Revenue producing (O.R.P)
2. Operating and Non-Revenue Producing (O.N.R.P)
3. Non-operating and Revenue Producing (N.O.R.P)
Operating and revenue producing (O.R.P)
a. Minor revenue producing departments
a.1. Laundry : the hotel may have its own laundry or may have a
contract with an outside laundry.in any case, laundry of guest clothing is
a facility provided by hotels and is charged for.
a.2 .Telephone Department :Guests are charged for local and trunk
calls either by the telephone operators or in case of direct dialing by
telephone meter . In a small hotel there would be a just a small switch
board, probably operated by receptionist.in large hotels, there exist a
separate department, where the board is manned by operators working
in shift.
a.3. Swimming pool: though hotel guest are not charged for this facility,
their guest may be charged for using the pool .many hotels offer free

Introduction to Hotel operations -1

Prepared by: Vishnu Narayanan.V
Course Code: TMgt-M1031
Program Name: BA in Tourism Management
Chapter -3

Swim with the buffet lunch (charged per head and set up near the pool
side)

b. Major revenue producing departments

There are two major revenue producing department in the hotel
1. Room Division Department
2. F&B Department

1. Room Division Department

This department basically connects two departments
a. House keeping
b. Front office
Housekeeping is concerned with keeping the guest room clean and in a
position to be sold. Although, housekeeping is behind the screen activity
it is extremely important.
Front office concerned with the actual sales of rooms and comes in
direct contact with guests
2. F&B Department
Food and beverage department further divided into:
a. F&B Production/Preparation and
b. F&B Sales /Service
a. F&B production: includes kitchen bakery confectionery stores and
pantry .all these are behind the scenes and deals with preparation of food right
from storage of raw materials to the final product to be served to the guest.
7

Introduction to Hotel operations -1

Prepared by: Vishnu Narayanan.V
Course Code: TMgt-M1031
Program Name: BA in Tourism Management
Chapter -3

c. F & B service : includes all the service outlets where the food prepared
by the F&B production are is sold to guests
c.1. Restaurants :- General as well as specialty restaurants. These
restaurants have fixed hours of service generally 12 noon to 3 pm and
ten from 7 pm to 12 midnight.
c.2. Coffee Shops :-a coffee shops is open 24 hours of the day and
serves mainly snacks and beverages. Heavy meals are generally served
only during lunch and dinner time. A coffee shop generally has informal
atmosphere and plated services.
c.3 Bar:-serves alcoholic and non-alcoholic beverages along with
snacks. permit is required to operate it and there are fixed hours of
operation ie. 11 am to 3 PM and 6.30 PM to 11 PM
c4. Room Service: 24 hours service in most large hotels.
C5.Banquets: it is the major revenue producing department, among the
F&B service department. Some of the Banquets functions are dinners,
Lunches, Wedding Receptions, Cocktail Parties, Conference, Club
meetings, Outdoor Caterings etc.
OPERATING AND NON-REVENUE PRODUCTS (O.N.R.P)
a. Personnel: deals with recruitment and training staff, staff induction,
promotions, welfare etc.
b. Security : deals with security of the hotel ,highly vigilant against any
kind security breach
c. Maintenance: they are responsible for total maintenance and upkeep
of rooms and public areas ie Air conditioning, lift, plumbing,
Electricity, Lightening, carpentry etc.

Introduction to Hotel operations -1

Prepared by: Vishnu Narayanan.V
Course Code: TMgt-M1031
Program Name: BA in Tourism Management
Chapter -3

d. Accounts: Receives a copy of all departments vouchers and the

guest bills. Maintenances cash register, city ledger etc. prepares
sales summery sheets for each days sales.
e. Sales and Marketing: sales concerned with getting and
maintenance clientele both for rooms and food and beverage.
NON-OPERATING AND REVENUE PRODUCING (N.O.R.P)
They include travel agencies and airline offices, book shops,
chemists, florists, bank, beauty parlous etc. They may be let out
either on commission basis or on rental basis. These concessionaries
should be reputable as for the guests they are part of the hotel

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