MANAGING HOTEL OPERATIONS IIBM MBA ONGOING EXAM ANSWER PROVIDED

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Managing Hotel Operations
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple Choice and Short Note type Questions.
 Answer all the questions.
 Part one carries 1 mark each and Part two carries 5 marks each.
Part One:
Multiple Choices:
1. Housekeeping is the responsibility of:
a. Hotel manager
b. Reservation manager
c. Rooms manager
d. Executive assistant manager
2. Which of the following is not the method of minimizing the overbooking problem:
a. Increasing restrictive policy
b. Third party guaranty
c. Threat of legislation
d. Advance- deposit reservation
3. Which of the following is the channel of the traditional reservation:
a. The changing role of travel agent
b. In-house reservation
c. Central reservation center
d. All of these
4. The real component of “TQM” is?
a. Bedding
b. Cleanliness
c. Noise ,temperature and darkness
d. All of the above
5. Arrange the following into hotel organizational structure:
i. The room manager
ii. The general manager
iii. The hotel manager
iv. Manager of guest services.
Examination Paper of Hotel Management

a. i, ii, iii, iv
b. ii, iv, i, iii
c. ii, iii ,i, iv
d. iv, ii, iii, i
6. Alphabetical list of the day‟s expected arrival, individually and by group is:
a. Cancellation and change report
b. Daily analysis report
c. Arrival report
d. Central reservation report
7. Which is not the component of credit management :
a. Extending credit
b. Credit alert and skippers
c. Minimizing charge backs
d. None of these
8. Reservation contained following information during the procedure are design to improve the
effectiveness of the front office:
a. Arriving and departure dates
b. Number of night
c. Number of person
d. All of the above
9. Bank card is the kind of?
a. Debit card
b. Smart card
c. Credit card
d. None of these
10. Segmentation comes under:
a. New product pattern
b. New market Pattern
c. New product segmentation
d. New management pattern
Part Two:
1. Explain the special characteristics of hotel business?
2. Differentiate between the marketing to the individual and marketing to the group?
3. List the Information contained in reservation.
4. Explain the organizational structure of hotel management?
Examination Paper of Hotel Management

Section B: Caselets (40 Marks)
 This section consists of Caselets.
 Answer all the questions.
 Each Caselet carries 20 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 Words)
Caselet 1
HOTEL MANAGEMENT SYSTEMS
Service industry always has to have a sharp and keen focus on customer‟s requirements, needs and
expectations. With the hotel, hospitality and tourism industry, the expectations are much more. These
are the sectors that have possibly the highest amount of customer interaction within the service sectors
and are most impacted by customer experience from step one.We at Softqube have designed an online,
real time hotel management software, Symphony for the sector keeping in mind their needs and
business requirements. Our aim is to bring to our clients faster, more responsive, agile, robust yet easy
to use and cost effective software that supports all their requirements in real time.
A Hotel Management System like ours, gives the most important information with single click be it the
information about room reservation and availability, conference or even banquet reservation. As a
business you will have a system which helps hotel to manage every bit of information.
It is really important that when you visit the reception, can be provided easily by checking the system
and manage things accordingly.
Our Online hotel management system, Symphony gives our clients a software that is good in
maintaining all the stats of the hotel. The statistics include, but are not limited to revenues, occupancies,
room enquiries, availability. The hotel team and staff can help themselves with these high quality
systems, as folio management helps them to keep all the information about any of their boarders, their
needs, their complaints, and their precision and so on.
Question:
1. What does this mean for the business of our clients?
Caselet 2
The provision of accommodation is a highly competitive market. As tourists look for the best possible
value for money, hotel operators must ensure that they are providing a quality venue with cost
effective services. This program is based on the Mercure Hotel in Hobart and covers the key elements
of its operations (the inputs and processes that create the output). The program examines the ways in
which the design of its facility, the control of materials, the use of technology and the quality standards
all contribute to ensuring the hotel remains productive and competitive.
END OF SECTION A
Examination Paper of Hotel Management
IIBM Institute of Business Management 4
1. Name one output of a hotel.
2. Why is the layout of facilities important in a hotel?
Section C: Applied Theory (30 Marks)
 This section consists of Applied Theory Questions.
 Answer all the questions.
 Each question carries 10 marks.
 Detailed information should form the part of your answer (Word limit 200 to 250 Words)
1. Explain the advantages and disadvantages of hotel technology?
2. Discuss how the room rates impact on guest demand?
3. Explain the traditional hotel industry?
END OF SECTION B
B
END OF SECTION C
Examination Paper of Hotel Management
IIBM Institute of Business Management 5
IIBM Institute of Business Management
Examination Paper MM.100
Front Office Operations
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple Choice and Short Note type Questions.
 Answer all the questions.
 Part one carries 1 mark each and Part two carries 5 marks each.
Part One:
Multiple Choices:
1. To create a professional image and to make guest comfortable about the staff members is a factor
of______
a. Personal presentation
b. An attentive manner
c. Social skills
d. Use of guest‟s names
2 A small booklet which has the guest‟s name, room number and room rate is_______
a. Credit card
b. Key card
c. Bedroom book
d. Room status board
3. Clear is a sign of_______
a. Room left
b. Room occupied
c. Room vacant and ready
d. Room vacant but not ready
4. Which of the following is not a part of „Property Management System‟?
a. General ledger
b. Registration
c. Night audit
d. Computer terminal
5. Arrange the following as procedure for payment by credit card:
i. Ask the client to sign the audit roll (retain the card)
ii. Obtain the card from the client
iii. Check that the signatures on the card and the voucher agree.
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IIBM Institute of Business Management 6
iv. Swipe the card through the machine.
a. i, ii, iii, iv
b. ii, iv, i, iii
c. ii, iii ,i, iv
d. iv, ii, iii, i
6. When the interest and desire is converted into booking or enquiry it is a result of:
a. Interest
b. Attention
c. Action
d. Desire
7. Providing an individual „PIN‟ number to the customer by the hotel authority is a feature of:
a. Voice mail
b. Message waiting facility
c. Fax
d. Access to hotel services
8. Cheques help in controlling frauds in the hotels.
a. Crossing cheques
b. Cheque authorization
c. Foreign cheques
d. Blank cheques
9. Which of the following is not included in the task performed mainly at the reception?
a. Filing
b. Duplicating
c. Word processing
d. Reservation
10. Chart is very time consuming to be up-dated and its errors results in lower
occupancy.
a. Density chart
b. Density reservation chart
c. Stop-go chart
d. Conventional chart
Part Two:
1. Differentiate between the organizational structure of „Small and Medium sized hotels‟.
2. State the main ways in which fire can be prevented in a hotel.
3. List the main methods of „Non-verbal communication‟.
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IIBM Institute of Business Management 7
4. Write a short note on „Inside Availability‟.
Section B: Caselets (40 Marks)
 This section consists of Caselets.
 Answer all the questions.
 Each Caselet carries 20 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 Words)
Caselet 1
The Benson Hotel, a mid-sized independent property required new leadership. Mike Schwartz, Vicepresident
of operations, pondered his next move as he reviewed last month‟s financial statements. The
Benson was an eighty-five-room three-star property with a full-service restaurant, lounge, banquet and
health club facilities. The rapidly changing marketplace and new competition from well-established
franchises had made Mike‟s job and the Benson‟s position more tenuous. Mike decided to commission
a consultant‟s report on the property. He called up his longtime friend Jim Burke, who had worked for
major chains across the country and was now a hospitality consultant.
“Jim, how are you old buddy?” Mike asked.
“I am doing very well Mike. This consulting work has run me off my feet. What can I do for you?”
Jim Asked.
“Well Jim, I need an independent review of the Benson. We‟re holding our own but these franchise
guys with their management contracts are really getting aggressive,” Mike said.
“Yes, I know what you mean Mike. I have just completed a marketing study for a new building across
town. These guys have some great programs. You have to try and stay ahead of them,” said Jim.
Mike asked, “Do you think you could visit the property and have some lunch next week? I would like
to start with an employee survey and some site work. You‟ll be working alongside my general
manager, Sean Waters. Sean‟s been with us for about two years. Jim, I have some concerns about this
guy and I‟d like to have a fresh set of eyes look at what‟s going on at the Benson. Okay?”
Jim hesitated, “Okay Mike. How about next Thursday 10:00 a.m.? I‟ll meet you in the lobby.”
“Wonderful, Jim. We‟ll see you then.”
Sean waters had been recruited by Mike as a rising star. Sean‟s background led Mike to believe he
possessed a true spirit for hospitality, especially in the food service area. Sean had worked his way up
in reputable full – service properties and restaurants while completing an undergraduate degree in
hospitability. So, what had gone so wrong at the Benson for Mike to feel he needed to bring in a
consultant to figure it out? Three months later Mike had an interim report on his desk.
Physical Plant Priorities
The following is a review of specific areas of the Benson Hotel that require attention.
Sales Office- Located just off the lobby, this space is open to the public and is well below standards
for this level of property. The property has worked hard to attract the corporate market. A wellrenovated
business center shared with a working sales area would enhance this area gently.
Banquet Servery- Located on the lower level from the main kitchen, this area seems more of a
storage area; in fact this could serve as a limited holding area for banquet service. There is no counter
space and no secure shelving to store dishes, glassware, or cutlery. Floors and walls are in need of
refinishing. Guests have gained access to this area on occasion.
Exterior Garbage Area- The main compactor located in the rear parking lot of the hotel should be
enclosed. It is unsightly to guests and can be viewed from the road by surrounding residences. A
END OF SECTION A
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IIBM Institute of Business Management 8
possible solution would be to pour a concrete slab allowing for drainage and build an enclosure on
three sides to ensure access for pick-up.
Access for persons with disabilities –Presently, the Benson has no access or rooms for guests with
disabilities. At least two units should be converted for this purpose. The main reconfigurations are the
bathrooms and doorways. On a few occasions guests with disabilities were observed leaving the hotel
for other properties in the area that had such facilities. It is a good marketing initiative and may
become necessary to maintain the rating of the property.
Lobby- The lobby chairs and broadloom should be upgraded to reflect the marketplace and reputation
of the property.
Back Office Computer– There is presently no stand- alone back office computer. The computers on
the property are dated and solely devoted to a property management system that is not Windows
based. The following functions could be served with a back office computer.
 Inventory analysis
 Database marketing
 Effective and professional word processing
Parking Lot –The rear parking lot is of particular concern; it does not reflect a three-star property.
Human Resources
The Benson Hotel like many others before it, had over the years placed people in positions of
authority with little or no training to support their efforts. This was true in the following revenue
centers.
Dining Room – During high season the dining room enjoys record covers on many nights. However,
there was one very stressful situation observed. The staffing was mixed with senior staff followed by
poorly trained “warm bodies”. The situation was made worse by the supervisor, Rachel, who was
perceived by the staff as unfair, unapproachable, and often playing favorites with her friends and
family. Rachel, in all fairness, has had no training and was clearly not the person for the job. She
repeatedly showed disrespect for her fellow workers and kitchen staff. Unfairness was clearly
displayed in the allotment of high-gratuity-paying work such as banquets and bus tours. Rachel
played favorites. She would schedule herself and friends to serve high-gratuity events. If you were not
her favorite, you were relegated to breakfast shifts or similar low-gratuity work. An example is the
new girl, Donna, who Rachel hired this summer. Rachel is already giving preferential shifts to Donna
over Isabel, who has been at the Benson for more than five years. Rachel based her decision on
Isabel‟s poor performance, which Rachel said other employees would agree with. This was not the
case when fellow workers were asked. Rachel had also threatened to lay off Isabel in the slow months
instead of Donna or Rachel‟s daughter Lucy. This was clearly an old management style and
unacceptable in any operation. Rachel is also resentful that the kitchen receives 25 percent of group
meal gratuities. In her opinion they do not deserve it. This feeling has permeated among her allies,
instilling an “us against them” animosity between the kitchen and service staff.
Kitchen Operation – The kitchen staff is competent, but leadership is seriously lacking in this area.
James, the interim kitchen supervisor, has difficulty coping with the restricted responsibilities placed
on him and often projects these feelings onto fellow staff. This attitude also has a further negative
effect on Rachel and her staff in the dining area. Chief Wilhelm left three months ago and left little
incentive for James to perform his duties as sous-chef. James is somewhat adrift, constantly
complaining that he is doing a chef‟s job and receiving cook‟s pay.
Management controls and reporting such as inventory are inaccurate at best, with related reports
poorly presented. Production and food handling require improvement from a quality and sanitation
point of view. It seems that many foods taken out for preparation or serving then are left out in a hot
kitchen to deteriorate or go to waste. Scheduling of kitchen employees does not seem to relate to
business peaks and valleys. This has resulted in calling in casual kitchen staff on short notice,
resulting in paid-outs over the counter. One such employee is Gerald, the dishwasher who is Lucy‟s
boyfriend. Rachel on occasion has taken it upon herself to call Gerald in for dishwashing duty when
clearly it is James‟s responsibility to make the call. This situation provides an opportunity for Rachel
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IIBM Institute of Business Management 9
to extend her influence beyond the realm of her authority and has led to increased friction between
Rachel and James.
Employee Audit
This part of Jim‟s report was a detailed employee audit interviewing employees on issues from the
parking lot all the way up to the general manager. It provided Mike with some food for thought. Jim‟s
opening comments was: “if I had to make only one general statement about the relationship between
the employer and employees at this time, I would have to say that it is limping along at a slow, steady
pace. Most of the employees appear satisfied with the type of work they are doing and they speak
well for the company.” Under the section “Lack of Credibility on the part of the General Manager,”
Mike‟s worst fears were confirmed. Jim‟s report continued, “As far as the remainder of the employees
are concerned, they do what they have to and then ignore the general manager. His level of credibility
with these employees is zero. One employee was very philosophical about it when she said “At least
we know what we have to deal with, and we are learning how to deal with him. If they get rid of him
we could get someone worse.” Supporting comments from employees included:
 The general manager is always right.
 The morale of the employees varies with the moods of the general manager
 The general manager intimidates some employees.
 The general manager tries to impress the upper management by pitching in to help when they are
here, but when they are not here he doesn‟t lift a finger.
Jim summed up this section of his report to Mike like this: “This is a case of employees working well
in spite of the general manager rather than because of him. The main problem with this situation is
that a reputable company such as the Benson Hotel cannot support the actions of a general manager
with this type of comportment and still maintain a workable relationship with its employees. My
opinion at this point is that something has to change.”
Questions:
1. Do you feel it was necessary for mike to commission a consultant‟s report on the Benson? Why
or why not? How would you have approached the situation?
2. Identify and propose solutions for the supervisory challenges in the kitchen and dining areas of
the „Benson Hotel‟.
Caselet 2
The Rainbow Golf resort had something to celebrate. The 120- unit golf resort consisting of villas and
condominiums had recently been “re-branded” from a franchise to an independent property. The new
owner, Ken Okura, was reviewing the present organizational structure of the Rainbow along with the
files of key personnel presently running the operation. During the transition period Ken had recruited
his own team including a Vice-President of operations, Director of sales and marketing and Director
of Food and Beverage to restructure the organization; however, he still had a few key areas to fill in.
In the past, each member of the resort‟s management team had staked out his or her own turf with
little internal communication. As a case in point, ken often noticed Shirley, the accountant, regularly
directing the front desk on policies and procedures. All this happened under the watch of Jeremy, the
resort‟s Rooms Division Manager, who didn‟t seem to take notice of such actions. Ken thought that
this overlap of authority surely must confuse the front desk staff.
The transition period had provided Ken with a window of opportunity to evaluate the line and
supervisory staff. Ken had retained Ted Barrow, a human resources consultant; his report‟s findings
were quite a surprise to Ken. Ted‟s report began with the following staff concerns:
 The management does not work together. There is no teamwork, only “flexing” for power. Managers
are out to protect their turf. This attitude pervades the resort.
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IIBM Institute of Business Management 10
 There is no apparent overall direction for the resort. If there is, it is not being communicated
throughout the organization.
 There is no general manager or controller on site. The feeling is that if these people were around,
conflict among the department heads could be avoided.
 There is insufficient training. Employees are thrown into their jobs without being ready to perform
them properly. They should have proper preparation before they have to deal with guests.
 Some departments (front desk in particular) are terribly understaffed. This causes service problems as
well as high staff turnover.
 The staff morale is low. Employees work in separate departments and get caught in a rut. There is no
overall team spirit. It‟s more like “every man for himself.”
 There is little or no awareness of how other departments operate. This knowledge is necessary to help
us understand how we impact each other.
 Many people are currently unhappy. The labor pool is small, and if they leave it will be tough to
replace them. Management should work to keep the staff happy.
 There seems to be a consensus that staff members want to be able to provide good service, but too
many constraints are placed on them to be able to do so.
 It is difficult to know who to go if someone has a problem with his or her manager. There should be
someone designated as the resort manager so that employees have someone to communicate with
should the need to do so arise.
Ken assembled his new team to map out strategies to address the operational challenges and
employee concerns.
Questions:
1. Identify and describe four short-term operational strategies Ken should implement immediately at
the Rainbow Golf Resort.
2. Which form of top-down communication would be most suitable for the Rainbow Golf Resort to
achieve its objectives?
Section C: Applied Theory (30 Marks)
 This section consists of Applied Theory Questions.
 Answer all the questions.
 Each question carries 10 marks.
 Detailed information should form the part of your answer (Word limit 200 to 250 Words)
1. Explain how the hotel receptionist can contribute to customer satisfaction?
2. Discuss the methods of payments in a hotel.
3. Discuss about the main principles of “Hotel Billing”.
S-2-300813
END OF SECTION B
B
END OF SECTION C