The Empire Hotel is a fullservice hotel in a large city Empi

The Empire Hotel is a full-service hotel in a large city. Empire is organized into three departments that are treated as investment centers. Budget information for the coming year for these three departments is shown as follows. The managers of each of the departments are evaluated and bonuses are awarded each year based on ROI.

The manager of the restaurants department complains that sales and resulting earnings for the restaurants are not higher due to the poor reputation of the hotel rooms department. Because the hotel rooms department does not have the best housekeeping staff, the overall reputation of the hotel is slipping. The manager of the hotel rooms department counters that, to keep operating expenses under control and improve ROI, wages for housekeeping have been cut. The manager of the restaurants department has requested that other evaluation techniques such as residual income or a balanced scorecard approach be considered in an effort to resolve this problem.

Required:

Consider which balanced scorecard measures might be useful to the Empire Hotel in evaluating the Hotel Rooms Department.
a. Which organizational goals should be set to improve the reputation of the hotel rooms? (You may select more than one answer.)

__ Cleanliness
__ Change in satisfaction per dollar of supplies
__ Value per dollar
__ Supervisory time.
__ Attractiveness
__ Cleaning supplies used
__ Staff Friendliness

b. Which measurement and resources can be employed to measure whether goals are being met? (You may select more than one answer.)

__ Surveys of customer satisfaction
__ Value per dollar
__ Cleaning supplies used
__ Supervisory time
__ Time of housekeeping per room
__ Investment in maintenence

c. Which items provide the feedback necessary to evaluate and reward employees for progress made towards achieving the goals? (You may select more than one answer.)

__ Change in satisfaction per hour of housekeeping
__ Housekeeping staff friendliness
__ Change in satisfaction per hour of supervisory time
__ Time of housekeeping per room
__ Change in satisfaction per dollar of maintenance
__ Change in satisfaction per dollar of supplies used
__ Change in satisfaction per dollar of supplies

Solution

Balance Score Card is an approach of management in which qualitative and quantative factors are considered while evaluating performance. It is like a quadrant divided into 4 quarters each consisting of different measures. This provides the balanced view of the organisation\'s performance.

In the given question, in part a, cleanliness, cupervisory time and friendliness of employees shall be the factors which would improve reputation

Plus, in part b, surveys of customers would provide with the measure whether goals are being met

In part c, Change in satisfaction per hour of housekeeping and Housekeeping staff friendliness can be used to evaluate and reward employees for progress made towards achieving the goals