For the department below state a suitable responsibility center and clearly jsut
ID: 2543710 • Letter: F
Question
For the department below state a suitable responsibility center and clearly jsutify the reasons for your choice made.
Hospitality Department
The Director of Hospitality has significant influence in setting room rates and making decorating decisions. The Director also makes hiring and salary decisions for the department's staff. The front office sub unit handles customer service including front desk service, reservation, room assignment, guest payments, telephone, and key control. The Guest Services subunit is responsible for greeting guests, front door service, assisting guests with their luggage, and delivering room-service orders, assisting guests with local transportation arrangements, advising guests on tourist attractions, and such conveniences as valet and floral services.
Explanation / Answer
Responsiblity center is any part , segment or a subunit of on organization. A segment may be a product line, a geographical area , or any other meaningful unit. Companies will have differnt segments bassed on their activities.
In This scenario, Its an Hospitality Department . Perfect responsibility center is " PROFIT CENTER" because Profit center is responsible for both revenues & expenses. A department within a store ,such as the Guest service is an example of profit center because it has both revenue & costs. Manager should be evaluated on both Costs & Revenue. In Profit center , both efficiency & effectiveness are assessed but priority is given to effectiveness. in fact the proft can be treated as the goal to be achieved.