Abstract
The report is about recommending the EFQM model of management to Squire Hotel to improve its management system and performance. The hotel has been reported to face numerous issues regarding the collection of feeds back of customers and other information in a formal manner; they should not be negligent about the budget set by its competitor, top-level management hotels. It is expected that the application of the EFQM model to the management of Squire hotel would help them in overcoming these issues and, thus, overall helping them in improving their management conditions. There is evidence that shows that there are hotels in different parts of Europe that have already started using this model in their management for improvement and advancement.
In order to reach to its primary objectives, Squire Hotel should make sure that all its employees are well trained about the new model that is to be launched. The training in the model would help them in assessing themselves into the life cycle planning of the organization and development of policies meanwhile would also help in collecting the required necessary information for daily usage in their work.
Therefore the main point of the report is that if Squire Hotel deploys the model into its system, they would see a drastic improvement in their management system, which would satisfy the customers leading to a gradual increase in the annual sale of the hospitality industry.
Introduction
EFQM is a non-rigid model. The machine made its appearance as an emergency tool in the latter part of the twentieth century. Hence from that time, the model is under consistent review and examination to improve the organization’s condition. It has been reported that by following the method of EFQM, many hotels are able to improve their management performance, thus able to achieve success.
In this particular case study report, that is specifically applied to a particular Hotel name Squire Hotel. The purpose of the report is to apply the EFQM model to the hotel to see if it can improve the management condition of the hotel. Hence it would also be proven to what extend the EFQM model was successful to other organizations who have used them previously and also how effective was the implementation of the model proved to be.
In the later part of the century, the EFQM model becomes famous in different parts of Europe. Hospitality organizations started adopting the model not only for improving their administration in the management department but also to keep themselves ahead of their competitors. The EFQM model thus was reported to be a useful tool in an effective management system in top hotels. This has helped many hotel management industries to make their way to the top of success. It is expected to do the same for Squire Hotel by fixing the issues that it has been facing over the last couple of years.
The report is to analyses the improvement of the organization in relation to the application of the EFQM model. The report has shown trust in distinguishing ways the EFQM model execution in the positive process of the management and helps the organization in overcoming the issues related to their operations. The report also evaluated the successful hotel organizations, whether they have used the EFQM model in their management system and if they have used it, then to what extent and how much the framework has been effective in brings success to these organizations. The report was analyzed by comparing the present system after the incorporation of the EFQM model, with that of the management system before the application of the model to find out the difference and the effectiveness of the model.
Background of Squire Hotel
The Squire Hotel has been running approximately 20 hotels, bedrooms ranging from 40 to 120. The squire hotel has been identified within the 3-star categories of hotels, which was having its unique personal style; the hotel has been facing problems in the service quality lately, which has made lead to a reduction of its customer base. Most of the customers who occupy the rooms are during the mid-weeks, among which 80% of the customers are generally business professionals. In contrast, during the weekends, the business of the hotel falls to 30%, it also signifies the hotel’s incapability to attract tourists other than business personalities. Currently, it was reported that Squire Hotel does not have a near expansion plan sooner, though, in recent days, they have been concerning about their management improvements.
The manager who looks after an organization has his rights on staffing, purchasing, or menu planning, though the head office fixes the budget. This budget decides the total cost of the staff and food, which are reported to the managers. Thus the managers are answerable about all the decisions that it has made all throughout the week on the budget allotted to him in the head office. Decisions are mostly taken either on the basis of the issues that arise within the organization or by looking at the community’s desire.
The problems that are faced By Squire hotel
In the corporate world, more or less every business had faced some issues or the other; it is widespread. And hence the Squire Hotel is no exception. The problems that are faced by a hospitality industry that even get accelerated by other factors as well, some of them are tremendous pressure of competition, meeting the desire of the customers by providing the right product and services according to the changing trends, the pressure to achieve profit margin and others. It is very important on first hand to identify the problem that is faced by the organization before starting the remedial measures. In this case, the implementations of the nine criteria of the EFQM model can be talked about, such as strategic betterment, improvement of the leadership, improvement of the offerings of the products or services, motivate the employees, etc. are all under the needs and requirements of the industry.
There are a number of issues that were identified to be faced by the squire Hotel. According to its manager Charles Harper, Squire Hotel still follows some of the traditional methods in their management; this indicates that the hotel is not updating itself with time or to match the desires of the current generation. Another common issue identified by the manager is that they have less occupancy in the hotel, so at times they run out of rooms to be provided to the customers. Another major failure from the company’s side is they do not have any planning of further expanding their business or the occupancies. Though the business has been supported in its peak seasons to cover up their low seasons when the hotel merely has an occupancy of only 6%. As a result, the company should consider of expanding its territories as this can serve as a huge chance for improving its profit. Taking the full advantage of the peak season would also provide them with getting new customers and retaining the old ones. Though there are comparatively fewer complaints about the food, maximum complains are raised on management and customer services. The company does not have any formal means of getting feedback from the customers, or the customers do not have any such medium by which they can raise their queries or complaints. Moreover, competition being another major issue that has been affecting the financial condition of the hotel to a great extent, As mentioned in the case study there are numerous hotel and restaurants that excel in their field which is a significant threat for the company, and that is also one of the reasons why the company has been consistently losing its customers. The manager of the restaurant of squire Hotel Elizabeth Dickens reported that the budget set by their main office is far less in order to improve the menu of the restaurants or to satisfy the regular potential customers. She also added this has made this restaurant to lose a lot of regular potential customers and are also unable to attract any new customer. In order to change the worst scenario, what can be done is to modify the products and services according to the desire of the customers, improve the management system of the hotel and hence increase the speed of the customer service. Modification of the menu can also be done with verities of food choices.
Thus by the application of the EFQM model, it can be expected that the Squire Hotel would be able to improve the present condition and overcome the major issues that I have been facing over quite a sometime now. More importantly, the model would be able to provide a systematic framework for the organization to work on to improve itself.