There are significant differences between large and small organizations – this w
ID: 349137 • Letter: T
Question
There are significant differences between large and small organizations – this week we read about the decentralization that is typically present in large organizations. We were introduced to the Balanced Scorecard, which is used to help managers make better decisions with more current data.
The authors used the example of Hyatt Hotel chain, in which the employees at a specific site (Maui) are authorized to make the decision regarding a hotel guest’s checkout time.
Let’s discuss how this might play out…provide an example of how a late checkout would impact the organization’s goals.
What are the relevant data that contribute to this decision?
How does the Balanced Scorecard help with the decision-making process?
What is the ROI for this decision?
In your replies to your peers’ posts, use your critical thinking skills to determine if all pertinent points were covered. Ask for clarification if there were points that you did not understand. Finally, explain how the use of ROI alone can lead to bad decisions
Explanation / Answer
Check out time is a crucial parameter for a hotel's performance and the customer satisfaction or service that it can provide. Check out time of customers lead to the turnaround time for the hotel to prepare the room for its new check ins. Therefore, it leads to better customer service and greater utilization of the rooms if the check out time is fixed. However, going beyond rules or regulations in order to provide extra benefit to the consumers can create loyalty and extra revenues. Therefore, check out time can have a huge impact in the hotel business both from a revenue and a brand building point of view.
The utilization rate of the rooms, turnaround time, and the average check out of consumers are some of the important parameters which have an impact on the decision for check out times for guests.
Balanced scorecard can provide a holistic picture in terms of impact of check out time. It has data with respect to financial impact, operational impact, and human resouce impact if check out time is decided by employees. Therefore, it would help in taking decisions which are linked to the broader goals of the organization in terms of organizational mission and vision.
The ROI for this decision would be linked to the utilization of the rooms which can increase in case of a quicker check out time and turnaround time being lower.