Management: Definitions, Functions, Levels, Skills & Hospitality Role

1. What is Management?

Management is the process of planning, organizing, leading, and controlling resources (human, financial, physical, and informational) to achieve organizational goals efficiently and effectively.

Key Definitions

• Management: "Getting things done through people" (Mary Parker Follett)
• Organisation: A structured group of people working together to achieve common goals.
• Efficiency: Doing things right (minimum waste of resources).
• Effectiveness: Doing the right things (achieving goals).

Why is Management Important?

• Ensures order and coordination in chaotic environments (e.g., a busy hotel kitchen).
• Helps achieve goals systematically (e.g., opening a new restaurant on time).
• Maximizes resource utilization (e.g., staff scheduling in a hotel).

2. Functions of Management

Management performs four primary functions (POLC model), which are interdependent and cyclical.

graph TD
    A["Planning"] --> B["Organizing"]
    B --> C["Leading"]
    C --> D["Controlling"]
    D --> A

A. Planning

• Definition: Setting goals and deciding how to achieve them.
• Types of Plans:
  • Strategic (long-term, e.g., hotel expansion in 5 years).
  • Tactical (medium-term, e.g., marketing a new restaurant menu).
  • Operational (short-term, e.g., daily staff shifts in a hotel).
• Steps in Planning:
  1. Goal Setting (SMART: Specific, Measurable, Achievable, Relevant, Time-bound).
  2. Alternative Courses of Action (e.g., promoting a hotel via social media vs. print ads).
  3. Evaluation of Alternatives (cost-benefit analysis).
  4. Selection of Best Plan (e.g., choosing digital marketing for a younger audience).
  5. Implementation & Follow-up.

Worked Example: Opening a New Hotel in Kathmandu

• Goal: Open a 5-star hotel in Thapathali by 2025.
• Tactical Plan: Secure land, hire a construction team, and partner with a local travel agency for promotions.
• Operational Plan: Daily site inspections, staff training schedules, and supplier negotiations.

3. Levels of Management

Management exists at three hierarchical levels, each with distinct roles.

4. Management Skills

Managers need three types of skills (Robert Katz’s model), which vary by level.

Progression by Level:

• Lower-level managers → More technical skills.
• Middle-level managers → Balanced human + technical.
• Top-level managers → More conceptual skills.

5. Management in Hospitality

Hospitality is a people-intensive industry where management principles are critical for success.

Key Challenges in Hospitality Management

1. High Employee Turnover: Frequent staff changes require effective staffing and training.
2. Unpredictable Demand: Seasonal fluctuations (e.g., peak tourist season in Nepal) need flexible planning.
3. Guest Satisfaction: Requires strong leadership and communication.
4. Resource Constraints: Limited budgets demand efficient controlling.

Case Study: Hyatt Regency Kathmandu

• Planning: Launched a loyalty program to retain guests.
• Organizing: Structured teams for front desk, housekeeping, and F&B separately.
• Leading: Trained staff in customer service excellence.
• Controlling: Used feedback surveys to monitor guest satisfaction.

In the Real World

1. eSewa (Nepal)

   • Planning & Organizing: Uses agile project management to update its app features (e.g., adding QR code payments) based on user feedback.
   • Controlling: Monitors fraud cases via AI to ensure efficient resource allocation in customer support.

2. Nabil Bank (Nepal)

   • Decision Making: Uses SWOT analysis to decide whether to open a new branch in Pokhara (Strengths: growing tourism; Weaknesses: high competition).
   • Leading: Implements employee motivation programs (e.g., bonuses for top performers) to reduce turnover.

3. Daraz (Nepal/Southeast Asia)

   • Organizing: Structures its logistics team into zones (e.g., Kathmandu, Pokhara, Lalitpur) for faster deliveries.
   • Controlling: Uses real-time inventory tracking to avoid stockouts during festivals (e.g., Dashain sales).

Exam Tip

1. Definitions Matter: Always define management, efficiency, and effectiveness clearly in your answers.
2. POLC Model: Expect questions on planning, organizing, leading, and controlling—explain one real-world example for each.
3. Levels of Management: Compare top, middle, and operational levels with hospitality examples (e.g., a hotel GM vs. a shift manager).
4. Skills: Link technical, human, and conceptual skills to specific hospitality roles (e.g., a chef vs. a hotel GM).
5. Case Studies: Be ready to analyze a real company (e.g., Hyatt, Nabil Bank) using management functions.
6. Diagrams: Draw organizational charts or flowcharts (e.g., planning process) to boost marks in descriptive questions.

Visual Summary: Management Functions in a Restaurant

mindmap
  root((Restaurant Management))
    Planning
      Menu Design
      Staff Scheduling
    Organizing
      Kitchen Team
      Waitstaff Team
    Leading
      Training New Hires
      Motivating Staff
    Controlling
      Quality Checks
      Customer Feedback