Productivity Management In The Hospitality Industry

Productivity

LR

Productivity and its management has over the years considered a critical success factor for both manufacturing as well as service related organizations because of the fact that productivity and productivity management lead to gains in overall profitability making achieving productivity management as an important objective, ( Reynolds & Thompson, 2007). Over the years, productivity has been defined in domain of resource utilizations i.e. ratio of output to input and apart from profitability, it also has important relationship with quality. Treated as a multidimensional process, the dynamic concept relates to productivity as a cycle in order to design product and services as per customer needs leading to higher value, (Kumar &

But on the other hand open system industries such as hospitality being more specific the restaurant industry applying productivity remains a daunting task with various challenges. Being an open system, it is not only visible to customers but the customers also play important part through interacting collaboratively with numerous processes in the business. Moreover, they have firsthand insights of the service produce and also they perceive changes in the resources and production processes and how these influence the service quality. Hence, taking characteristics and customers of service industry into account, the traditional production management models become out of the context. Gummesson figured out that in service industries productivity, quality and profit are integrated and must not be broke into separate. Coming to the challenges drawn in the literature, in traditional models of production, the customers come as exogenous variables, but in service productivity they are important part of the equations whose impact has to be taken into account. Second, utilization of resources is almost uncontrollable to services in simple terms the demand is never quantifiable. Third, the characteristics

By differentiating the service processes according to customer driven and service provider driven by incorporating the model into our business it provides a detail analysis of the productivity of our restaurant as well as scope for improving productivity. The model describes two customer driven and service provider driven process each contributing towards enhancing external and internal efficiency. According to the model the internal efficiency frontiers would help us manage costs effectively and improve the service productivity in terms of encounter and delivery. The other external efficiency frontiers would help us to increase the service quality and revenue capacity of our restaurant.

Therefore, successful application of these two models of productivity will lead us to operate at a higher efficiency, maintain our level of operations and monitor the customers closely. According to the applicability, these models having undertaken both the perspectives and combined into one, would eventually turn out to be success in our quick service