St.

Ignatius Technical Institute of Business and Arts

Tan Gana Building, Sta Rosa City, Laguna

Operations Management
Program Overview

The Bachelor of Science in Business Administration major in Operations Management

is a four-year degree program designed to equip students with relevant knowledge and
necessary skills in product development and distribution. The program focuses heavily
on the internal processes that consist of manufacturing and service operations.
Students will then learn the organizational strategy as a whole, from planning,
scheduling, layout, purchasing, inventory, and quality control. BSBA in Operations
Management majors will learn to efficiently allocate budget in production operations. 

Recommended Senior High School Strand

Students who want to pursue a degree in BSBA in Operations Management are
encouraged to take the Accountancy, Business and Management strand. This strand
provides the basic concepts of business and financial management, and corporate
operations that will be helpful for college. 

Subjects and Curriculum

 Principles of Management
 Human Behavior in Organization
 Principles of Marketing
 Introduction to Accounting
 Business Communication
 Basic Finance

Admission Requirements
Qualifications
 The student must be a high school graduate. 
However, if they were not able to graduate high school, they may opt to take the
Alternative Learning System (ALS) and pass the Philippine Educational Placement
Test (PEPT) to qualify for college; the availability of courses for PEPT passers depend
on the university.
 The students must pass the College Admissions Test of the university.

Basic Requirements

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Tan Gana Building, Sta Rosa City, Laguna

 Form 138 - High School Report Card (Original and Photocopy)

 Recommendation letter from High school principal and guidance counselor
 Most recent medical and dental health record
 Copy of NSO Certified birth certificate
 Certificate of Good moral character
 Copy of honorable dismissal
 Copy of high school diploma
 (1) Latest 2”x2” ID Picture

Program Outcome
Graduates of BSBA in Operations Management are expected to be able to:
 Study and analyze the business environment
 Create operational plans
 Think of modern business ideas
 Effectively manage a business unit for economic sustainability
 Conduct research methods from a business perspective

On-The-Job Training/Internship
During the fourth year of the program, students are required to attend an On the Job
Training (OJT) in various corporate and business companies. 

Students are given the opportunity to apply their knowledge and skills in an actual work
setting. Usually, universities require them to submit a written report on their tasks,
learning experiences, and hours rendered. Their work performance will also be
evaluated by their immediate managers and will be submitted to their respective OJT
coordinator. The number of hours required may differ in each university.

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Lesson 1: An Introduction to the Principles of Management

Management is essential to any organization that wishes to be efficient and achieve its
aims. Without someone in a position of authority there would be organizational anarchy
with no structure and very little, if any focus. It has been said that management has four
basic functions – planning, organizing, leading and controlling. Common sense dictates
that without these principles of management being in place an organization would have
trouble achieving its aims, or even coming up with aims in the first place! A classic
theory on the principles of management was written by Henri Fayol. It seeks to divide
management into 14 principles. We’ll take a look at these basic principles of
management and explain them in easy to understand terminology.

Principles of Management – Fayol’s 14 Principles

 Division of Work – This principle of management is based on the theory that if
workers are given a specialized task to do, they will become skillful and more
efficient in it than if they had a broader range of tasks. Therefore, a process
where everyone has a specialized role will be an efficient one.
 Authority – This principle looks at the concept of managerial authority. It looks at
how authority is necessary in order to ensure that managerial commands are
carried out. If managers did not have authority then they would lack the ability to
get work carried out. Managers should use their authority responsibly and
ethically.
 Discipline – This principle relates to the fact that discipline is needed within an
organization for it to run effectively. Organizational rules, philosophies, and
structures need to be met. In order to have disciplined workers, managers must
build a culture of mutual respect and motivation.
 Unity of command – There should be a clear chain of command in place within
an organization. An employee should know exactly whose instructions to follow.
 Unity of direction – Work should be organized in a way that means employees
are working in harmony toward a shared objective or goal using a shared method
or procedure.
 Subordination individual interests to the collective interests – The interests of the
organization as a whole should take precedence over the interests of any
individual employee or group of employees. This encourages a team spirit and
collective mentality of all for one and one for all.
 Remuneration – In order to motivate and be fair to employees, they should be
paid a reasonable rate for the work they carry out. An organization that
underpays will struggle to attract quality workers who are motivated.

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 Centralization – This principle relates to whether decisions should be made

centrally, as in from the top down, or in a more democratic way, from the bottom
up. Different decision making processes are appropriate for different types of
decisions.
 Scalar chain – This relates to the principle of a clear chain of communication
existing between employees and superiors. The chain should be respected,
unless speedy communication is vital, in which case the chain may be bypassed
if all parties consent.
 Order – This relates to the proper use of resources and their effective
deployment in a structured fashion.
 Equity – Managers should behave ethically towards those they manage. Almost
every organization in the modern world will have a written set of policies and
procedures which will outline exactly what is expected from staff at all levels.
 Stability of tenure of personnel – It is seen as desirable within an organization to
have a low staff turnover rate. This is due to the benefits that come with having
experienced staff and the time and expense needed to train new ones. There
should be a clear and efficient method of filling any staff vacancies that arise.
 Initiative – Employees that have an input as to how to best do their job are likely
to feel more motivated and respected. Many organizations place a great deal of
emphasis on listening to the concerns of staff.
 Morale – Keeping a high level of morale and team spirit is an essential part of
having the most productive organization possible. Happy and motivated
employees are far more likely to be productive and less absent.

Principles of Management – The Importance of the Principles

Having a clear management structure in place is vital for any successful organization.
Efficient and well intentioned management sets the tone for the rest of the staff. It is
common for the attitude approach of managers to filter through the entire organization,
so having managers working in an exemplary way is an excellent example for
employees to follow.

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ACTIVITY 1
1. What is the importance of knowing Fayol’s 14 Principles? (5pts)

2. How will you show your authority in a company without being bossy? Expound
your answer. (5pts)

3. Will you still obey your superior even if you know that his/her plan has a bigger
chance to fail? How will you address this issue? (5pts)

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Operations Management is the day-to-day management of the site. It is about

marshalling the attraction’s resources, notably the staff and physical equipment such as
machinery, to provide a satisfactory service for the customer and an acceptable rate of
return on the use of these resources. The goal of operations management at attractions
is the smooth and efficient operation of the site. … In a sense it could be said that
everyone on site is involved in operations management as, in a service activity,
everyone is part of the operation. Furthermore, the activities of financial, human
resources and marketing managers also have an effect on how the site operates.

Operations Management Activities

 Product development
 Design of the venue and services
 Management of customers
 Organization and training of staff
 Management of buildings and equipment
 Management and monitoring of quality issues
 Matching of supply and demand
 Measuring customers’ satisfaction levels
 Crisis management
 Revenue and pricing management
 Risk management
 Management of operating systems, e.g. stock control and ordering
 Forecasting and planning

Lesson 2: Understanding Operations Management

Introduction

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Tan Gana Building, Sta Rosa City, Laguna

This free course, Understanding operations management, is designed to provide you

with a basic framework for understanding operations management and its
organizational and managerial context. It begins with a brief history of the changing
nature of operations in a manufacturing context, but emphasizes that the operations
function is significant in all types of organization, whether they produce goods or provide
services, and whether they are in the private, public or voluntary sectors.
This course presents a process model of operations that describes inputs being
transformed into outputs within the boundary of an operations system. It also discusses
the role of operations managers, in particular the importance of focusing on suppliers
and customers who are outside this boundary, as well as on other aspects of the
operations system's external environment.
This Open Learn course provides a sample of postgraduate study in business
management.
Tell us what you think! We’d love to hear from you to help us improve our free learning
offering through Open Learn by filling out this short survey.
Learning outcomes
After studying this course, you should be able to:
 define ‘operations’ and ‘operations management’
 identify the roles and responsibilities of operations managers in different
organizational contexts
 apply the ‘transformation model’ to identify the inputs, transformation processes
and outputs of an organization
 identify operational and administrative processes
 describe the boundaries of an operations system, and recognize its interfaces
with other functional areas within the organization and with its external
environment.
1 Understanding operations management
Consider the ingredients of your breakfast this morning. Unless you live on a farm and
produced them yourself, they passed through a number of different processing steps
between the farmer and your table and were handled by several different organizations.
Similarly, your morning newspaper was created and delivered to you through the
interactions of a number of different organizations.
Every day, you use a multitude of physical objects and a variety of services. Most of the
physical objects have been manufactured and most of the services have been provided
by people in organizations. Just as fish are said to be unaware of the water that
surrounds them, most of us give little thought to the organizational processes that
produce these goods and services for our use. The study of operations deals with how
the goods and services that you buy and consume every day are produced.

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2 Operations, operations management and operations managers

2.1 Operations, operations management and operations managers
Every organization has an operations function, whether or not it is called ‘operations’.
The goal or purpose of most organizations involves the production of goods and/or
services. To do this, they have to procure resources, convert them into outputs and
distribute them to their intended users. The term operations embraces all the activities
required to create and deliver an organization’s goods or services to its customers or
clients.
Within large and complex organization’s operations is usually a major functional area,
with people specifically designated to take responsibility for managing all or part of the
organization’s operations processes. It is an important functional area because it plays
a crucial role in determining how well an organization satisfies its customers. In the case
of private-sector companies, the mission of the operations function is usually expressed
in terms of profits, growth and competitiveness; in public and voluntary organization’s, it
is often expressed in terms of providing value for money.
Operations management is concerned with the design, management, and improvement
of the systems that create the organization’s goods or services. The majority of most
organizations’ financial and human resources are invested in the activities involved in
making products or delivering services. Operations management is therefore critical to
organizational success.
An understanding of the principles of operations management is important for all
managers, because they provide a systematic way of looking at an organization’s
processes. The need to manage manufacturing and service operations efficiently and
effectively has led to a considerable increase in interest in operations management in
recent years. However, the concept of operations is not new.
2.2 The historical development of operations management
Operations in some form has been around as long as human endeavor itself but, in
manufacturing at least, it has changed dramatically over time, and there are three major
phases - craft manufacturing, mass production and the modern period. Let's look at
each of these briefly in turn.
2.2.1 Craft manufacturing
Craft manufacturing describes the process by which skilled craftspeople produce goods
in low volume, with a high degree of variety, to meet the requirements of their individual
customers. Over the centuries, skills have been transmitted from masters to apprentices
and journeymen, and controlled by guilds. Craftspeople usually worked at home or in
small workshops. Such a system worked well for small-scale local production, with low
levels of competition. Some industries, such as furniture manufacture and clock making,
still include a significant proportion of craft working.
2.2.2 Mass production

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In many industries, craft manufacturing began to be replaced by mass production in the

19th century. Mass production involves producing goods in high volume with low variety
– the opposite of craft manufacturing. Customers are expected to buy what is supplied,
rather than goods made to their own specifications. Producers concentrated on keeping
costs, and hence prices, down by minimizing the variety of both components and
products and setting up large production runs. They developed aggressive advertising
and employed sales forces to market their products.
An important innovation in operations that made mass production possible was the
system of standardized and interchangeable parts known as the ‘American system of
manufacture’ (Hounshell, 1984), which developed in the United States and spread to
the United Kingdom and other countries. Instead of being produced for a specific
machine or piece of equipment, parts were made to a standard design that could be
used in different models. This greatly reduced the amount of work required in cutting,
filing and fitting individual parts, and meant that people or companies could specialize in
particular parts of the production process.
A second innovation was the development by Frederick Taylor (1911) of the system of
'scientific management’, which sought to redesign jobs using similar principles to those
used in designing machines. Taylor argued that the role of management was to
analyses jobs in order to find the ‘one best way’ of performing any task or sequence of
tasks, rather than allowing workers to determine how to perform their jobs. By breaking
down activities into tasks that were sequential, logical and easy to understand, each
worker would have narrowly defined and repetitious tasks to perform, at high speed and
therefore with low costs (Kanigel, 1999).
A third innovation was the development of the moving assembly line by Henry Ford.
Instead of workers bringing all the parts and tools to a fixed location where one car was
put together at a time, the assembly line brought the cars to the workers. Ford thus
extended the ideas of scientific management, with the assembly line controlling the
pace of production. This completed the development of a system through which large
volumes of standardized products could be assembled by unskilled workers at
constantly decreasing costs – the apogee of mass production.
2.2.3 The modern period
Mass production worked well as long as high volumes of mass-produced goods could
be produced and sold in predictable and slowly changing markets. However, during the
1970s, markets became highly fragmented, product life cycles reduced dramatically and
consumers had far greater choice than ever before.
An unforeseen challenge to Western manufacturers emerged from Japan. New
Japanese production techniques, such as total quality management (TQM), just-in-time
(JIT) and employee involvement were emulated elsewhere in the developed world, with
mixed results.

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More recently, the mass production paradigm has been replaced, but there is as yet no
single approach to managing operations that has become similarly dominant. The
different approaches for managing operations that are currently popular include:
 Flexible specialization (Piore and Sabel, 1984) in which firms (especially small
firms) focus on separate parts of the value-adding process and collaborate within
networks to produce whole products. Such an approach requires highly developed
networks, effective processes for collaboration and the development of long-term
relationships between firms.
 Lean production (Womack et al., 1990) which developed from the highly
successful Toyota Production System. It focuses on the elimination of all forms of
waste from a production system. A focus on driving inventory levels down also
exposes inefficiencies, reduces costs and cuts lead times.
 Mass customization (Pine et al., 1993) which seeks to combine high volume, as
in mass production, with adapting products to meet the requirements of individual
customers. Mass customization is becoming increasingly feasible with the advent
of new technology and automated processes.
 Agile manufacturing (Kidd, 1994) which emphasizes the need for an organization
to be able to switch frequently from one market-driven objective to another. Again,
agile manufacturing has only become feasible on a large scale with the advent of
enabling technology.
In various ways, these approaches all seek to combine the high volume and low cost
associated with mass production with the product customization, high levels of
innovation and high levels of quality associated with craft production.
2.3 The role of the operations manager
Some people (especially those professionally involved in operations management!)
argue that operations management involves everything an organization does. In this
sense, every manager is an operations manager, since all managers are responsible for
contributing to the activities required to create and deliver an organization’s goods or
services. However, others argue that this definition is too wide, and that the operations
function is about producing the right amount of a good or service, at the right time, of
the right quality and at the right cost to meet customer requirements.

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ACTIVITY 2
What do you think a typical operations manager does? Take a minute or so to consider.
(15 pts)

So operations managers are responsible for managing activities that are part of the
production of goods and services. Their direct responsibilities include managing both
the operations process, embracing design, planning, control, performance improvement,
and operations strategy. Their indirect responsibilities include interacting with those
managers in other functional areas within the organization whose roles have an impact
on operations. Such areas include marketing, finance, accounting, personnel and
engineering.
Operations managers' responsibilities include:
 Human resource management – the people employed by an organization either
work directly to create a good or service or provide support to those who do.
People and the way they are managed are a key resource of all organizations.
 Asset management – an organization’s buildings, facilities, equipment and stock
are directly involved in or support the operations function.
 Cost management – most of the costs of producing goods or services are directly
related to the costs of acquiring resources, transforming them or delivering them to

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customers. For many organizations in the private sector, driving down costs
through efficient operations management gives them a critical competitive edge.
For organizations in the not-for-profit sector, the ability to manage costs is no less
important.
Decision making is a central role of all operations managers. Decisions need to be
made in:
 designing the operations system
 managing the operations system
 improving the operations system.
The five main kinds of decision in each of these relate to:
1. the processes by which goods and services are produced
2. the quality of goods or services
3. the quantity of goods or services (the capacity of operations)
4. the stock of materials (inventory) needed to produce goods or services
5. the management of human resources.

ACTIVITY 3
1. How important decision-making in a management? (5pts)

2. What are the things you need to consider in making a decision in your
workplace? (5pts)

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3. What are the possible things that will happen if we have a poor decision making?
(5pts)

Using SWOT Effectively

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Tan Gana Building, Sta Rosa City, Laguna

ACTIVITY 4
Examine yourself. We all have our own strengths and weaknesses. List at least 5 in
each column.
STRENGTHS WEAKNESS

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External Analysis
These are the steps involved in carrying out an external analysis
 Assess the nature of the environment
 Audit environmental influences
 Identify key competitive forces
 Identify competitive position
 Identify key opportunities and threats

Benefits of Macro-environmental analysis

 Increased managerial awareness of environmental changes
 Increased understanding of the context in which industries and markets function
 Increased understanding of multinational settings
 Improves resource allocation
 Focuses attention on the primary influences on strategic change
 Provides time to anticipate opportunities and threats and devise appropriate
responses

PEST Analysis (political, economic, social and technological) is a management method

whereby an organization can assess major external factors that influence its operation
in order to become more competitive in the market. As described by the acronym, those
four areas are central to this model.

Carrying out a PESTLE Analysis

 Appraise the impact of different factors don’t just list them!
 PEST factors change over time keep analysis of the past distinct from
present and future
 demonstrate impact of key developments

Product Service Design

 The service design process

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‘services that are allowed to “just happen” rarely meet customer needs’
(Russell and Taylor, 2008, p. 187)

 Think of successful global companies

McDonald’s, Disneyworld – they are all a product of impeccable design:
e.g. McDonald’s employees 49 steps to perfect fries
 Service concept
Identifies the target market and their expectations
Identifies how it differentiates from others
How it will compete in the marketplace
 Services are ‘successful’ if they fill a niche or differ in their operation, e.g.
Amazon online services
eBay global auctions

Service Package
 A well designed service could provide the company with a competitive advantage
 As the objective of any service is to satisfy customer needs, then the design of a
service should be based around the customer
 The mixture of physical items, sensual and psychological benefits
 The service package consists of
Core service
Supporting goods and services
Facilitating goods and services
 The value concept and relationship marketing

Capacity Management
 Capacity management is an essential responsibility of the operations function.
The objective is to match the level of capacity to the level of demand both in

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terms of quantity (how much) and capability (the skill mix to meet the
product/service specification)
 Capacity aligned to concept of DEMAND
 It is not easy to understand the concept of demand in the service industries or
how predictable/unpredictable it is
 Organizations try to make demand as ‘predictable’ as possible – this is known as
dependent demand
Chase Demand Plan
 Matches output to demand levels over time.
 Capacity is adjusted by manpower planning policies such as changing the
number of staff, more part time, seasonal staff, overtime working, subcontracting
etc. e.g. fast food outlets
 Staggered work shift schedules - Construct work shifts to match demand peaks
 Part time staff - Trade off through additional employment costs
 Subcontractors - Outside sources agencies – disadvantages?
 Multi-skilled floating staff - Movable capacity – additional training costs
 Customer self service - Service capacity arrives when demand does

Demand Management
 This approach attempts to change demand to fit capacity
e.g. transfer customer demand from peak to quiet periods
Achieved through: altering the marketing mix

Demand Management Strategies

 Varying the price - Discounts at low demand times
 Advertising - Used to increase sales
 Alternative products during low demand - Tourist venues firework displays/carol
services
 Appointment system - Used to smooth demand

What is Revenue Management?

 Revenue management (RM) or yield management marries the issues of supply
demand and price when the organization is constrained by capacity’

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 ‘...finding the optimum price for the leisure experience at a specific time period is
a challenge for the leisure manager’
 This pays particular attention to income generation for the organization and
should be based around
o Time of use
o Length of use
o Category of user
o Availability of spare capacity
o Impact on resources
o Scope to develop additional income streams
o Scope to increase secondary spend

Productivity
 A business’s productivity can be measured and used to determine
‘organizational well-being’
 Productivity provides ‘a better reflection of the robustness and quality of
the underlying policies and management practices’
 Productivity measures can be used as an alternative to measures of
profitability in gauging the health of a business

The Measurement of Productivity: Key Principles

 Productivity is low to begin with, because work has to be done in setting up the
process … or because of inadequate resources. Marginal productivity rises, but
eventually falls as people become tired or as machines require maintenance or
because there is insufficient equipment available.’
 Productivity is not an absolute. Productivity is only “good” or “high” when
compared to competitors or when compared to the productivity of the
organization in a preceding period.’

Forecasting
Accurate forecasts are an important factor in enabling organizations to deliver goods
and services to the customer when required and thus achieve a quality service.

Forecasting is an essential responsibility of the operations function. The objective is to

match the level of capacity to the level of demand both in terms of quantity (how much)
and capability (the skill mix to meet the product/service specification)

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ACTIVITY 5

1. What is PEST?
P___________
E ___________
S ___________
T ___________

2. What are the four Demand Management Strategies?

___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________

3. What is the importance of Forecasting?

___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________

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Tan Gana Building, Sta Rosa City, Laguna

LESSON 3: HOSPITALITY MANAGEMENT OPERATION

Objectives:
 Identify the basic management structure
 Explain the different between the term front of the house and back of the house
 Familiarize the organizational chart of a hotel and the functions of it’s employees
 Identify methods hotels use to reduce their turnover rate
 Explain the major legal mandates that relate to hiring and employment.

Categories of travelers:
 Businessmen
 Tourists
 Holiday makers
 Motorists
 Sea and Air travelers
 Permanent Residents
 Local Residents of the areas
 Guests

Common Aims :
 to satisfy their guests
 to run profitable business

Function of Hotels
 The attraction of tourists
o The provision of venues and special facilities
o Employment opportunities
o The use of the local products
o The encouragement of Local Businesses and Industries
 The provision of Local Amenities – some hotels in addition to providing amenities
for their actual staying or resident guests also open their door to those who live
the areas in which they are located.

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Describing and Rating HOTEL

MOTEL - Motor hotel is a hotel designed for motorist, and usually has a parking area for
motor vehicles.
Town Hotel- a lodging place which is accessible to the vacationists that is why it is
located in the town.
Resort Hotel- place used for relaxation or recreation, attracting visitors for vacations
and/or tourism. Resorts are places, towns or sometimes commercial establishment
operated by a single company.
Tourist Hotel-Tourist Hotel is a heritage-listed building only 300 ft.
Airport Hotel- A hotel is an establishment that provides lodging paid on a short-term
basis.
Beach Hotel- it is a seasonal resort. is accommodation that sits on the sand.
Business Hotel-A business hotel is a hotel that specifically caters to the needs of
business customers. It tends to have larger business facilities, and more conference
rooms and function rooms than a hotel designed for tourists.

PRICES and TARIFFS

 The prices which guests can afford to pay – or are willing to pay.
 The tariffs set by a hotels management will depend on many factors and then
many types of cost which must be paid to keep the hotel operational.

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HOTEL ORGANIZATION

In hotel organization, there are three departments particularly concerned with

accommodation.
 The Reception department - Allocate the accommodation .
 The housekeeping department – plan, provide and service the Accommodation.
 The maintenance department - provide adequate hot and cold water, sanitation,
heating, lighting and ventilation as well as maintaining and repairing individual
articles and areas within the accommodation operations.

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Tan Gana Building, Sta Rosa City, Laguna

ACTIVITY 6
4. Why is it important to know our duties and responsibilities in our
workplace? (5pts)

5. It is right to respect the person base on his/her position? Why/Why not?

(5pts)

LESSON 4: HOTEL MANAGEMENT OPERATION

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Major Functional Department

• Front Office
• Reservations
• Housekeeping
• Human Resource
• Engineering
• Sales Marketing and Catering
• Loss and Prevention / Security
• Night Audit

Front Office
• People in this department are the one who gets up close and personal with the clients
• The person who provides services such as: assisting and accommodating the guests
and anticipate their needs without being told.

FRONT OFFICE OPERATION

• The front office is comprised of 2 main areas:
1.) FRONT DESK
2.) UNIFORM SERVICES.
• Each of these areas performs unique roles. They report directly to the front office
manager

FRONT DESK
• Being one of the first (and often last) points of contact with a hotel guest, the front desk
plays a big role in the hotel.
• The front desk manages the in / out flow of guests on daily basis. The front desk is
often called the “Hub” or the “Command Center” of the rooms division because so much
information is funneled through it.

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Tan Gana Building, Sta Rosa City, Laguna

UNIFORM SERVICES
• Uniform Services encompass the areas within the front office other than the front desk.
• Sometimes referred to as guests’ services, the areas within uniform service include:
o Reservation process is very important since the room space is the main
product that a hotel has to sell.
o The act of taking reservation is called “SELLING ROOMS”

ESSENTIAL FUNCTION OF RESERVATIONS

• Maintenance of Guest Reservations Data – Includes all the important details
about the guest’s stay If the reservation is to be guaranteed.
• Room Status Availability Reports – Are forecasts of the number of rooms of
each type and in each rate category that will be available on a specified future
date.

HOUSEKEEPING
• Housekeeping Department are responsible for the immaculate perfection of
appearance of the entire hotel.
• They are also responsible for the report on the availability of the rooms for
immediate guest occupancy. As well as, the details of potential house count (a
report of the number of guests registered in the hotel), security concerns, and
request for amenities (personal toiletry items such as: shampoo, toothpaste,
mouthwash and etc.)

F & B DEPARTMENT
• The food and beverage division is responsible for all of the dining rooms, restaurant -
bars, bars, the galleys (kitchens), clean up and provisions.
• The Food and Beverage Director runs this department. The dining room manager,
takes care of seating arrangements, service, and oversees the wait staff for the main
restaurant (dining room).

SALES AND MARKETING

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Tan Gana Building, Sta Rosa City, Laguna

• The marketing and Sales Department relies on the front office to provide data on guest
histories, details concerning each guest’s visit.
• The guest history is a valuable resource for marketing and a sale, which uses the
guest registration information to target marketing campaigns, develop promotions,
prepare mailing labels, and select appropriate advertising media.

ENGINEERING
• The engineering department is responsible for maintenance service.
Maintenance employees must know the occupancy room status of a room before
attending to plumbing, heating, or air- conditioning problems.
• The request from guests for the repair of heating, ventilating, and air-
conditioning units; plumbing; televisions; and other room furnishings are directed
to the front desk. These requests are then communicated to the maintenance
department.

LOST AND PREVENTION / SECURITY

• This department is responsible for maintaining the guest safety and security.
• Fire safety measures and emergency communication systems as well as
procedures for routine investigation of guest security concerns require the
cooperation of these departments.

NIGHT AUDIT
• The Night Audit Department of the front office, as defined earlier, is the team
that assumes the role of reconciling a hotel’s daily activities and transactions.
• This department compiles a series of reports and data into a report called Night
Audit Report for management review.
• Because the hotel never stops operating, there exists the need to determine at
what point the current day ends and the next day begins.
• Organizations that close at some point in the day are able to easily establish a
change in date.
• The Night Audit performs many functions. Depending on the hotel, the night
team will: – Verify daily hotel transactions – Generate summary and statistical

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Tan Gana Building, Sta Rosa City, Laguna

data for compiling into the night audit report. – Assume responsibility for certain
front office functions, such as front desk and PBX.
• In many cases, have its leader serve as the manager on duty (MOD) in the
absence of senior management.

HUMAN RESOURCE
• Human Resource Management (HRM) is the function within an organization
that focuses on recruitment of, management of, and providing direction for the
people who work in the organization. Human Resource Management can also be
performed by line managers.
• Human Resource Management is the organizational function that deals with
issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits, employee
motivation, communication, administration, and training.

RECRUITMENT
• A process that aims to attract appropriately qualified candidates for a particular
position from which it is possible and practical to select and appoint a competent
person.
• This process can be done through advertisement. – Newspaper – Radio –
Billboards – Commercial

HIRING STANDARDS
• Every Hotel requires hiring standards to meet their own level of standards.
Here are the following example:
– Height
– Age
– Educational Attainment
– Communication Skills
– Pleasing Personality
– Work Experience

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 St. Ignatius Technical Institute of Business and Arts
Tan Gana Building, Sta Rosa City, Laguna

HIRING PROCESS
• Acquiring employees in the business needs to follow certain procedures to facilitate a
better screening, selection, and decision making for a best-qualified applicant.
• Preliminary Screening –Application Blank / Cover Letter –Resume –Initial Interview
• Employment Tests – Intelligence / Aptitude test – Language Proficiency Test –
Arithmetic Ability Test – Personality Test – Skills and Manipulative Test – Sales and
Marketing – Abstract Reasoning
• Background and Reference Check - Process where the Human Resources Assistant
are doing the C.I. (Background check) about: –Family Background –Educational
Background –Character References on previous employers
• Employment’s (FINAL) Interview – Tell something about your self? – What are your
strength and weaknesses? – How do you see yourself 5,10 to 15 years from now? –
What is your ideal job? – What are your career goals? – What is your edge over the
other applicant? – How much salary are you expecting to receive if you get hired?
• Selection Decision – A process which involves the application of appropriate
techniques and methods with the aim of selecting, appointing and inducting a
competent person or persons. – Comparison based on: – Interview – Exams –
Personality

PLACEMENT
• The process where chosen applicants are called to submit the necessary
requirements • Submission of Requirements – 4 pcs. 1 X 1 picture – 4 pcs. 2 X 2
picture – NBI Clearance – Barangay Clearance – Police Clearance – Xerox copy
of Birth Certificate – Medical Certificate – SSS, PHIC, PAG IBIG I.D. – Transcript
of Records – Employment Certificate (Previous Employer) – Clearance
Certificate and etc.
ORIENTATION
• The HRM activity that introduces new employees to the organization and to the ff.
 Employees
 New task
 Superiors
 Work groups
 Benefits
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Tan Gana Building, Sta Rosa City, Laguna

 Compensation (Salary Negotiation)

» Minimum » Above Minimum » Depending on work Experience

BENEFITS INCLUDE:
• Overtime pay
• Incentives
• Bonuses
• SSS
• PHIC
• PAGIBIG
• Dental
• Insurance and etc.

INTEGRATION
• A process of making a worker psychologically and socially adjusted to the environment
and culture of the organization.
 MOCK Operations
 MOCK Department / Branch

TRAINING
• The process of improving worker performance through the enhancement of skills and
the formation of a positive attitude towards work
Attending seminars  Crash Courses  On-the-job Training Experience
EMPLOYEE ASSESSMENT
• Process where the HRM are assessing the performance of each employee, which is
conducted yearly to give the appropriate remarks and recommendations, salary
adjustments and promotion for a job well done.
1. Contractual Employee
2. Probationary Employee

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Tan Gana Building, Sta Rosa City, Laguna

3. Regular Employee
4. Promotion
5. Transfer
6. Demotion
• Contractual Employee – Employee not more than 6 mos. Only when the employer
renews the contract. They cannot avail the company benefits and incentives
• Probationary Employee – Employee who undergo 6 mos. Period of training and
assessment. Which to be decided if he / she will be regularized depending on his / her
performance.
• Regular Employee – Employee that serve more than 6 mos. To the company. And
candidate for promotion depending on PAR. EMPLOYEE ASSESSMENT
• Promotion – upward or vertical movement of employees in an organization from lower
level jobs to higher level jobs involving increase in duties and responsibilities, higher
pays and privileges.
• Transfer – Movement of employees from one job to another on the same level in the
organization with more or less the same pay, privileges, duties and responsibilities.
• Demotion – movement of an employee to a less important job from a higher-level job
in the organization, which may or may not involve reduction in pay, status, or privileges

ACTIVITY 7
____________________________1. Movement of employees from one job to another
on the same level in the organization.

____________________________2. Upward or vertical movement of employees in an

organization from lower level jobs to higher level jobs involving increase in duties and
responsibilities, higher pays and privileges.

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Tan Gana Building, Sta Rosa City, Laguna

____________________________3. The process of improving worker performance

through the enhancement of skills and the formation of a positive attitude towards work

____________________________ 4. Focuses on recruitment of, management of, and

providing direction for the people who work in the organization.

____________________________ 5. Process where the HRM are assessing the

performance of each employee, which is conducted yearly to give the appropriate
remarks and recommendations, salary adjustments and promotion for a job well done.

Give the major fuctional department.

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