Chapter 15 Managing in the Global Hotel Industry

The Hotel Industry Is Global Some reasons hoteliers may work outside the United States: No local staff is qualified for the position to be assigned. Local staff members are being trained for positions that will replace the need for an international manager, but they are not yet qualified for these positions. Technical expertise may need to be transferred to the foreign location. An employer desires to instill global perspectives and/or understanding in selected management employees or the company’s international components. There is an interest in obtaining tighter administrative control over a foreign division. There are property start-up, operating, or other issues that require longterm (more than a year) on-site management direction to properly resolve the concerns. Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

The Hotel Industry Is Global (cont. ) Developing vs. Developed Country Developing Country: A low- or middle-income country in which most people have a low standard of living and access to fewer goods and services than do persons in countries with higher income levels. Developed Country: A country whose income person is high by world standards and that enjoys the higher standard of living that the wealth makes possible. Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

The Hotel Industry Is Global (cont. ) Benefits of placing local citizens in top management positions: A local citizen is more likely to be familiar with local business environments and cultures and can, therefore, be more effective in managing the operation. There will be lower payroll and relocation costs because, at the least, transportation and subsistence costs will not likely be necessary. Improved relationships between the hotel group and the host country because the former is helping the foreign government to improve its labor force. Greater management continuity and employee morale because local citizens recognize they have opportunities for promotion to high levels of management within the hotel. Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

The Hotel Industry Is Global (cont. ) Expatriate Hotel Manager A citizen of one country who is employed in another country. Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing and Living in Another Country Political Environment Some countries have unstable government structures Fast-changing leadership and societal turmoil Personal harm and wide-ranging wars Economic Issues Diverse tax laws Exchange rates Inflation Cultural Factors Understanding a location’s “national culture” Culture shock Examine the “commuting to work” photo in the text Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Personal Factors in Expatriate Manager’s Success Checklist of Personal Influences That Impact Expatriate Success Personal Influence Factor No Maybe Yes You are able to adapt to change You want to live in another country You understand the country’s national culture You know the country’s language You have the skill for successful job performance HR skills to manage those different than you Previous experience living/working in another country Family will support and adapt to life in another country You have positive motivations for your interest in global assignment You have reasonable expectations about the future You will listen to and try to understand others Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Other Factors in Expatriate Manager’s Success: Transitional Training Programs Before. Arrival Training Cultural awareness Language training Business practices Business and social protocols Basic background information After. Arrival Training Answering questions about new cultures Overcoming the emotion of being “homesick” Exchanging old methods/ideas for new ones that may be more valuable and effective in a new culture Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Other Factors in Expatriate Manager’s Success: The Expatriate in the New Culture Hotel Employment Concerns Nonwork Factors Job-related training Social support Logistical advice Compensation Basic background information Living arrangements Transportation Nonwork social interactions Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

And Now the International Assignment Begins! Communication is critical: – Manage within a work environment that anticipates and tolerates errors. – Use written communication. – Use the simplest language whenever possible. – Use pictures and graphics whenever possible. Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

And Now the International Assignment Begins! (cont. ) Communication is critical (cont. ): – Be aware of information sent internationally. – Be respectful of culture and the impact that it has on business customs and the language of business. – Be aware of potential cultural “hot spots. ” – Go out of the way to assure that employees understand. Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

And Now the International Assignment Begins! (cont. ) Requirements for expatriate management success: 1. 2. 3. 4. 5. 6. 7. Empathy Respect Interest in other cultures Flexibility Tolerance Initiative Self-esteem Hotel Operations Management, 2 nd ed. Hayes/Ninemeier © 2007 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458