Chapter 15Managing in the Global

Hotel Industry

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

Some reasons hoteliers may work outside the United States:

The Hotel Industry Is Global

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 long-term (more than a year) on-site management direction to properly resolve the concerns.

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

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.

The Hotel Industry Is Global (cont.)

Developed Country: A country whose income per person is high by world standards and that enjoys the higher standard of living that the wealth makes possible.

Developing vs. Developed Country

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

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.

Benefits of placing local citizens in top management positions:

The Hotel Industry Is Global (cont.)

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

A citizen of one country who is employed

in another country.

The Hotel Industry Is Global (cont.)

Expatriate Hotel Manager

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

Some countries have unstable government structuresFast-changing leadership and societal turmoilPersonal harm and wide-ranging wars

Political Environment

Managing and Living in Another Country

Economic Issues

Diverse tax lawsExchange ratesInflation

Cultural Factors

Understanding a location’s “national culture”Culture shockExamine the “commuting to work” photo in the text

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

No

You have reasonable expectations about the future

You have positive motivations for your interest in global assignment

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

Maybe

You will listen to and try to understand others

You understand the country’s national culture

You know the country’s language

You want to live in another country

You are able to adapt to change

YesPersonal Influence Factor

Checklist of Personal Influences That Impact Expatriate Success

Personal Factors in Expatriate Manager’s Success

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

Other Factors in Expatriate Manager’s Success:Transitional Training Programs

Before- Arrival

Training

Cultural awarenessLanguage trainingBusiness practicesBusiness and social protocolsBasic background information

After- Arrival

Training

Answering questions about new culturesOvercoming 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, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

Other Factors in Expatriate Manager’s Success:The Expatriate in the New Culture

Hotel Employment

Concerns

Job-related trainingSocial supportLogistical adviceCompensationBasic background information

Nonwork Factors

Living arrangementsTransportationNonwork social interactions

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

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.

And Now the International Assignment Begins!

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

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.

And Now the International Assignment Begins! (cont.)

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

1. Empathy2. Respect3. Interest in other cultures4. Flexibility5. Tolerance6. Initiative7. Self-esteem

Requirements for expatriate management success:

And Now the International Assignment Begins! (cont.)