QUESTION 1: (10 marks)
As their facilities grow in size, hotel managers are faced with the need to group certain jobs in order to ensure efficient coordination and control of activities. A general grouping is front-of-house and back-of-house; however, separating departments by function is the most common method of organizing a hotel.
a) Briefly outline the departmental structure of a small, limited service hotel, and explain the interdependence that exists between each department. (2 marks)
b) Comment on the distribution of authority in centralised and decentralised organisational structures, giving examples of the advantages and disadvantages of each structure. (2 marks)
c) Compare and contrast wide and narrow spans of control, with reference to the factors of task similarity, training and professionalism, task certainty, frequency of interaction, task integration, and physical dispersion. (6 marks)
QUESTION 2: (10 marks)
Franchised businesses have become one of the fastest growing segments of the economy over the last 50 years.
a) Resource scarcity theory and agency theory can both be applied to explain the phenomenon of franchising. Give an explanation of each theory, relating how each of the models can be applied to franchising. Justify the “unified” theory of franchising. (4 marks)
b) The relationship that distinguishes franchises from other sorts of business is the strategic alliance between the franchisor and the franchisee. Comment on this relationship, including the benefits and risks to both parties inherent in the agreement. (6 marks)
QUESTION 3: (10 marks)
Property is increasingly seen as an asset that needs strategic management to capitalize on potential future divestment. An important issue in the ownership and management of a hospitality facility is the servicescape and its impact on customers and employees. Consider the Mahrabian-Russel Stimulus-Response model, and explain its influence on Bitner’s servicescape framework.
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