Business Process in a Hotel

Creating client Value in Tourism and cordial response Industry, pp. 752-763 M. Drljaca methodo luculent analysis OF BUSINESS cultivate DEVELOPMENT IN A HOTEL MIROSLAV DRLJACA, MSc, Researcher Zagreb Airport, Ltd. , Zagreb, Croatia methodology OF BUSINESS routine DEVELOPMENT IN A HOTEL UDC 65. 012. 4640. 4 Preliminary communication Requests of concerned occasionies, amongst which the node has the central position, be starting points of fictitious character dispensement body that complies with requirements of ISO 9000ff supranational averages.Regardless of the point whether we want to arrange hotel management system to meet the requirements of these norms, unrivaled should be able to recognize exact pick ups of interested parties, e supererogatoryly of the client of benefits. Correct recognition of these requests presents the beginning of forest system management in a hotel. In establish to fulfill the expectations and requests of lymph gland, the management system i n a hotel moldiness be unquestionable, documented, utilize and managed in such stylus to ensure realisation of the actual and foreseen customers requests.Function structure of hotel organisation will non be sufficient for a long-run achievement of this goal. Classic geomorphologic mannequin of hotel organisation must be upgraded through railed, documented and implemented fear moldes. In order to run hotel successfully, numerous interrelated activities must be defined and managed. The application of billet assist systems in the hotel, their description and interaction, together with the management, rump be defined as march begin.Business suees be angiotensin converting enzyme of structural elements of hotel management system. If they be not developed, documented and implemented, we dissolve justly ask whether hotel management system is capable of meeting requests of interested parties. For running transactiones, as well as hotels, there ar deuce-ace characte ristic types of stemma buttes result dividing line act upones, management wrinkle fulfilles and open got operatees.Scientists and experts do not agree nigh gener wholey accepted methodo perspicuous analysis of barter butt on modelling. This paper accepts a hypothesis saying that a good methodological analysis is the one which enables managing of billet butt in a demeanor to ensure the fulfillment of interested parties requests, specific every(prenominal)y the requests of guest. Key run-in process, methodological analysis of avocation process modelling, process approach. INTRODUCTIONDespite the fact that only a sm entirely result of hotel industry representatives in Croatia possess ISO 9001 certificate as international confirmation of requested quality direct of management system, the theme of quality, as marketing orientation, as line of credit 752 Creating Customer Value in Tourism and hospitality Industry, pp. 752-763 M. Drljaca methodological analysis OF BUS INESS dish DEVELOPMENT IN A HOTEL philosophy and whatsoeverday dedicate, is more and more existing in hotel industry. Independently of the degree of awareness of hotel management, trade concern processes layabout be developed in whatsoever of the following ways 1) in a long-established bearing which is based on know-how of the most important parametres of communication channel processes, with interventions only in situations when reliability of business process is seriously affected, 2) without any control, when in original cases the business process develops in altogether uncontrollable conditions, 3) in part controllable conditions characterized by business process model according to elect methodology, in conditions which are controlled in the same amount as the fundamental parametres that define them, and 4) in alone controlled conditions those business processes whose basic parametres of definition are under complete control. 2 In order to create completely con trolled environs for ontogenesis of usiness process in a hotel, it is indispensable that hotel business processes be 1) named, 2) described, 3) structurised/organised, 4) controlled, 5) managed, and 6) always improving. In order to fulfil it, hotel business processes consider to be conceived, i. e. developed according to chosen methodology. The problem lies in the fact that ISO 90012000 norm ( feel caution Systems Requirements) requires the proof that business processes are managed, solely methodology of business processes maturation is not being suggested. 3 The choice of methodology, and practically its definition, is left to be made by hotel management. 1. DEFINITION OF TERM PROCESS The word process evolves from Latin word procedere, which originally means spark off or go ahead.This word form was followed by noun processus, which is translated as process and means a series of actions, phases or events, education (in any direction or form) and transmutation (inputs products) of anything that was took under consideration (element, structure, sub-system, system, etc. ). 1 2 3 ISO 9001 certificate, international confirmation of requested quality take of management system, acquired the following hotel industry representatives in Croatia (in 1999 Hotel Excelsior in Dubrovnik, Hotels Maestral Hotel Komodor in Dubrovnik in 2000 Vodi ejectka Tours Hotel Punta in Vodice, during change of owners did not retain the certificate, and Hotels Argentina in Dubrovnik).Basic parametres of definition of business processes are a) object of activity (material, information, product, service and similar), b) frequence of operation (continually, sometimes only once, and similar), c) area of activity (state, city, company/organisation, part of company, and similar. ), d) manner of operation (usual, uncontrollable, in partly controllable conditions, in completely controllable conditions). At writing about methodology of business process development the authors avo id presenting final solutions, because methodology of business process development represent intellectual ownership (know how) of the author or consultant. Rare examples in Croatian literature are Ivan Mamuzic, Procesni pristup u sustavu upravljanja kvalitetom, Kvaliteta, Broj 3, Infomart, Zagreb, 2002, p. -4, in which author presents feasible methodology of business process development and shows part of diagram of process flow Miroslav Drljaca, Proces kao ishodiste modela ISO 90012000, Kvaliteta, Broj 3, Infomart, Zagreb, 2002, p. 5-6, in which the author presents methodology of business process development and shows break-up of one business process Zivko Kondic, Kvaliteta i ISO 9000, Tiva, Varazdin, 2002 and partly Nenad Vulic, Sustavi upravljanja kvalitetom, Veleuciliste u Splitu, Split, 2001. summarize presentation of methodology of business process development is written in Nenad Injac i Marko Besker, Metodologija izgradnje poslovnih procesa u sustavu kvalitete, Oskar, Zagre b, 2003. 753 Creating Customer Value in Tourism and cordial reception Industry, pp. 752-763 M. Drljaca METHODOLOGY OF BUSINESS PROCESS DEVELOPMENT IN A HOTEL paradigm 1. play presentationRULES AND CONTROLS INPUT TRANSFORMATION AREA OUTPUT MECHANISMS fulfill can be also defined as a course, evolution or manner through which something was born or transformed, it is a development, a surgical process 4 HRN EN ISO 84021996 norm defines the process as a congregation of in return independent resources and actions which transform input elements into issue elements. 5 mutation of input elements into output is in fact a transformation of one into the other. Each process thus becomes unique and special. Transformation of input into output is a system of complex interactions of operations and resources. It is a technology. It is know how. internationalist norm ISO 90002000 defines the process as convention of connected or mutually dependent activities which transform input into sol vings. 6 The application of process system in a company, its definition and mutual interaction, as well as the management of process system can be called process approach. 7 The process approach has the advantage of lasting managing of links between busy processes ( at heart the process structure), which is the structural element of hotel management system, and combination and mutual interaction of these elements. 8 When applied in the hotel quality management system, this process approach underlines the importance of the following ? understanding and meeting of guests requests, need of charge of business processes in respect added conditions ? achieving results of business processes and their efficiency, and 4 5 6 7 8 Zelimir Domovic, Sime Anic i Nikola Klaic, Rjecnik stranih rijeci, SANI-PLUS, Zagreb, 1998, p. 1163. HRN EN ISO 8402 Quality management and quality pledge Vocabulary, (ISO 84021994 EN ISO 84021995), Quadrilingual version. International norm HRN EN ISO 900020 02 Quality management systems bedrock and vocabulary (ISO 90002000, EN ISO 90002000), recital quadrilingue, p. 40. International norm HRN EN ISO 90012002 Quality management systems Requirements (ISO 90012000, EN ISO 90012000), p. 14.Except process structure, structural elements of management system of every company, a hotel as well, are 1) strategic documents of company (mission, vision, strategy, politics, general and special managerial aims), 2) organisation, 3) resources, 4) partnerships, and 5) communication and notification. 754 Creating Customer Value in Tourism and hospitality Industry, pp. 752-763 M. Drljaca METHODOLOGY OF BUSINESS PROCESS DEVELOPMENT IN A HOTEL ? permanent improvement of business processes, based on impartial estimation. Regardless of more contingent types of business processes, and many diversities of process structures, all business processes in hotel can be divided into three types ? management processes, ? core processes, ? domiciliate processes. Figure 2.Three types of business processes Management processes Guest s request essence business processes Guest s satisfaction concentrate processes Source Martyn A. Ould, Business Processes, John Wiley & Sons Ltd, Chichester, England, UK, 1995, p. 2. umpteen industries have more than one core or macro group of business processes, including management of business system, management of resources, realisation of products and services, measurement and control. 9 Management business processes are important for progress of core business processes, as well as of support process. These are business processes of development, planning, quality management and management of hotel organisation.Because of entirety and directions of their influence onto core business processes Management business processes are called vertical processes. Core business processes are centre on the achievement of satisfaction of customers, (buyers/users), i. e. hotel guests. They directly add new honour to t he product, meaning service. They meet requests of hotel guests and are generator of their 9 Herbert C. Monnich, Jr. , ISO 90012000 for scummy and Medium coat Businesses, American Society for Quality, Milwaukee, Wisconsin, USA, 2001, p. 3. 755 Creating Customer Value in Tourism and cordial reception Industry, pp. 752-763 M. Drljaca METHODOLOGY OF BUSINESS PROCESS DEVELOPMENT IN A HOTEL contentment.Core business processes, processes of fulfillment or realization, are business processes whose result in form of product or service has direct tax confirmation on the market. The plan and the product in their creation are in core business processes strongly integrated. Core business processes are called horizontal processes. Figure 3. Interactivities of different types of business process Management processes (vertical) Core processes (horizontal) sponsor processes (vertical) Support processes which are also called logistical or capable business processes, are directed towards prod ucing satisfaction of internal users within hotel organisational structure. They are able to create added value for the guest.However, this influence on making added value is indirect and is fulfilled through support of core business processes. Support processes are auxiliary business processes and represent a support to core business processes. With regard to direction of activities onto core business processes, they are also called vertical processes. Numerous management, core and support processes develop within this process structure simultaneously. They have a series of interactions. Each interaction in original measure affects the business process result in term of meeting the guests requests. 2. BUSINESS PROCESSES IN A HOTEL Complete take a crap process of a hotel consists of processes of production activities and service activities.Purpose of production activities is rendering of services which have product characteristics, like various food, beverages that are specifica lly prepared, bread, desserts, and similar. Purpose of service activities is providing guests with accommodation, inspection and repair of meals and beverages, entertainment, sale of goods, various handicraft-and-services, laundry washing, ironing, and similar. 10 Process contains all activities linked into a chain. It starts with defining of all possible inescapably a 10 Ivanka Avelini Holjevac, Kontroling Upravljanje poslovnim rezultatom, Sveuciliste u Rijeci, Hotelijerski fakultet Opatija, Opatija, 1998, p. 379. 756Creating Customer Value in Tourism and Hospitality Industry, pp. 752-763 M. Drljaca METHODOLOGY OF BUSINESS PROCESS DEVELOPMENT IN A HOTEL guest (tourist, buyer, etc. ) may have during the trip, until return, only with aim that all guests needs are met. 11 Table 1. Types of business processes in a hotel 1. 2. 3. 4. 5. 6. 7. 8. Process of hotel management. Process of planning. Process of development. Process of marketing. Process of quality management. Process of e nvironment management. Process of social debt instrument management. Process of security/safety at work management. 1. Process of producing food and beverages which are specifically prepared. 2. Process of serving meals and beverages. 3.Process of reception and accommodation of guests. 1. 2. 3. 4. 5. 6. Process of human resources management. Process of financial management. Process of infrastructure maintenance. Process of information management. Process of purchase. Process of sale. Management business processes in a hotel. Core business processes in a hotel. Support processes in a hotel. At identifying of business processes in a hotel and dividing them into types, it is necessary to avoid identification of business lead and business process in a hotel. Essential differences are at least these that follows ? business scarper is static category, duration business process is dynamic category, business run is mostly operated within one structural hotel whole, and is usually named after it, while process implies more participants from more structural hotel units, ? business function is operated within hotel, while process can have participants from outside of hotel structural organisation, but who are important for progress of concrete business process, 11 Zdenko Cerovic, Hotelski menadzment, Sveuciliste u Rijeci, Fakultet za turisticki i hotelski menadzment Opatija, Opatija, 2003, p. 415. 757 Creating Customer Value in Tourism and Hospitality Industry, pp. 752-763 M. Drljaca METHODOLOGY OF BUSINESS PROCESS DEVELOPMENT IN A HOTEL ? ? ? . business function is run by useful manager, and process is run by business process manager, and identification of these roles must not be a order but an andion, business process is one of the possible inner aspects of supervision of costs, quality costs as well, while function is not, due to all these differences, function is a narrower concept than business process. METHODOLOGY OF BUSINESS PROCESS DEVELOPMENT Basic task of hotel management during of business processes development is in fact establishing, directing and describing of events during transformation process of input into output. In order this task could be accomplished, we ust have suitable methodology of business process development within the quality system. Different companies use dissimilar methodologies. mould of methodology in great measure depends on knowledge about quality management. Regardless of which methodology is used by teams who developing business processes, they should remain consistent when they apply it in developing all business processes in a hotel. Hotel management must create its own methodology or choose already existing methodology of business process development. Teams for business process development in practice often fall out the problem of verification of correctness of their own solutions. This paper presents one of the possible approaches. 3. 1.Identification of the process is initial task in business pr ocess developing and demands (from the team) naming of the process, appointing of the leader (manager) of business process, defining of its objective(s), defining of input and output requests, description of mechanisms, rules and controls. subsequentlywards, they must determine outer and inner users of business process results, as well as designate process travel as consisting parts of the business process. 3. 2. plot of the context is simple display of business process at the highest level from which an interaction can be seen rules, controls and mechanisms during transformation of input into output. 3. 3. Display of static model of business process presents logical sequence of process tempos development as consisting parts of the business process.This phase of business process development identifies structural units where individual process step develops, and locates control points at which measurements will be performed and thus manage the business process. 3. 4. Description of the process describes requests that result from requests and needs of guests, then from specifications, norms, regulations, elaborations, methods and resources. hither are also identified requests, objectives and descriptions of their fulfillment, as well as allowed deviations. By defining of allowed deviations we in fact determine the minimum quality level of business process. 758 Creating Customer Value in Tourism and Hospitality Industry, pp. 752-763 M. Drljaca METHODOLOGY OF BUSINESS PROCESS DEVELOPMENT IN A HOTEL Figure 4. draw of the contextRULES AND CONTROLS GUEST S entreat PROCESS OF RECEPTION AND ACCOMMODATION OF GUESTS A- 0 GUEST S SATISFACTION MECHANISMS 3. 5. Diagram of decomposition of business process is methodologically sustain graphical representation of the process with all its consisting parts process steps. It represents logical sequence of process steps development. It specifies input, rules and controls, mechanisms and output of severally process step. Diagram of decomposition represents a technology. It shows process of reception and accommodation of guests per process steps that logically develop in sequence. At least one loss from a process step is also an entry into the next.Process steps in the process of reception and accommodation of guests are identified as follows 759 Creating Customer Value in Tourism and Hospitality Industry, pp. 752-763 M. Drljaca METHODOLOGY OF BUSINESS PROCESS DEVELOPMENT IN A HOTEL Figure 5. Decomposition of process of reception and accommodation of guests Refusal of request Guest s request ANALYSIS OF GUEST S REQUEST A-01 ACCOMODATION OF GUEST A-03 RECEPTION OF GUEST A-02 Accommodated guest Orders to departments write up issued to guest Invoice forwarded to Financ. Dept. HANDLING OF GUEST A-04 fulfillment of guests request CHARGEING AND GREETING OF GUEST A-05 Fulfillment of requests FINAL ACTIVITIES A-06 ReportsNew process cycle A-0. 1 Analysis of guest s request A-0. 2 Reception of guest A-0. 3 Accommodation of guest A-0. 4 Handling of guest A-0. 5 Charging of services and greeting of guest A-0. 6 Final activities 3. 6. Description of process steps must specify input, output, mechanisms, rules and controls of each process step, as well as locate structural hotel unit in which certain process step develops. Also, written procedure is named, if any of process steps should be additionally documented. 3. 7. Presentation of dynamic model of the process is plan of implementation of developed business process into functional structure of organization of the hotel.The plan shows in which structural hotel unit develop activities of each process step, and which unit of organization is responsible for their execution. reservation of presentation of dynamic model business process is a precondition of the process organisation itself. 760 Creating Customer Value in Tourism and Hospitality Industry, pp. 752-763 M. Drljaca METHODOLOGY OF BUSINESS PROCESS DEVELOPMENT IN A HOTEL Figure 6. ever-changing model of process of reception and accommodation of guests Partners Financial portion human beings Resources Div. Accommodation D. Reception Accommodation Divis. Food & bever. Division Commercial Division Controlling Quality music director Process steps General Manager Structural units Analysis of guests request A-01 Reception of guest A-02 Accommodation of guest A-03Handling of guest A-04 Charging of services and greeting of guest A-05 Final activities A -06 3. 8. Establishing of responsibility for the process is logical continuation of work on business process development. It implies exact establishment of responsibility of concrete executor of individual process step. After establishment of responsibility, the conditions for establishment of management team for concrete process are prepared. Management team is headed by manager of business process. In this way we model process organisation, based on team work. 12 3. 9. scheme of measuring within the process is based on description of business process, i. . defined limits of allowed deviations, up to which business process still shows reliability as one of its crucial characteristics. The plan of measuring defines call of control points where certain measurements will be performed. It also defines target value, allowed deviations and measuring method. By all these measurements, comparisons with target values, and possible application of corrective measures and activities we manage the business process. 12 Pere Sikavica, Procesna i timska organizacija, Slobodno poduzetnistvo, br. 18/98, Zagreb, 1998, p. 108116. 761 Creating Customer Value in Tourism and Hospitality Industry, pp. 752-763 M.Drljaca METHODOLOGY OF BUSINESS PROCESS DEVELOPMENT IN A HOTEL 3. 10. visualise of providing information within process is necessary in order to clearly define which participant of business process provides the information, who receives it, what is its contens, and when is the information sent and rece ived. 3. 11. Making of further process documentation implies writing of procedures for particular process step which definitely needs it, and writing of lower level documents, like work instructions, check lists, plans of corrective measures and activities, etc. CONCLUSION In the audit of quality of hotel management system it is necessary to document and prove the request for business process management.Since this is the requirement of ISO 90012000 international norm, and only four representatives of hotel industry in Croatia have certificates related to this international norm, it is justified to ask which methods were used in hotels to name, describe and organise structural units of business processes, and how were these business processes controlled, managed and constantly improved. In the economy branches, which are the core of tourist industry, the most successful companies, except for food-and-beverages industry, do not have certificates. There is a limited number of companies which possess international certificates, amongst which are retail trading, hotel industry, road transport and represent of furniture. Therefore, repeatedly, the question is put can we create development strategy for Croatian tourism without developed strategy of these economy branches that realise part of revenue resulting from tourists expenses. There are no ready universal solutions.Imitating of another companys solutions or adoptions of lesser adjustments of these solutions as their own optimum solutions are delusions, and in practice will be causing entropy. Every business process is different. It can even have the same name, same number and same names of process steps, same inputs and outputs, but still there are no identical business processes. Differences and originalities are happening in the interaction of inputs and outputs, rules, and controls, as well as mechanisms in each process step in the area of transformation of inputs into outputs. In the context of quality management systems we may conclude that ISO 90012000 international norm does not suggest methodology of business process development, but demands the proof that business processes are being managed.It can be concluded that every methodology of business process developing is satisfactory, if it can prove the management of processes. REFERENCES 1. 2. 3. 4. 5. Avelini Holjevac, Ivanka, Kontroling Upravljanje poslovnim rezultatom, Sveuciliste u Rijeci, Hotelijerski fakultet Opatija, Opatija, 1998. Cerovic, Z. , Hotelski menadzment, Sveuciliste u Rijeci, Fakultet za turisticki i hotelski menadzment Opatija, Opatija, 2003. Domovic, Z. , Anic S. i N. Klaic, Rjecnik stranih rijeci, SANI-PLUS, Zagreb, 1998. 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