An Operational Audit of the Hilton Garden Inn and Fairfield Inn ...

44
Name of Project Advisor: Professor avid Grooms SIGNATURE DATE CALIFORNIA STATE UNIVERSITY SAN MARCOS PROJECT SIGNATURE PAGE PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE MASTER OF BUSINESS ADMINISTRATION PROJECT TITLE: An Operational Audit of the Hilton Garden Inn and the Fairfield Inn & Suites AUTHORS: Heather Rochelle Frazier PRESENTATION DATE: 8 August 2017 THE PROJECT HAS BEEN ACCEPTED BY THE PROJECT COMMITTEE IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION.

Transcript of An Operational Audit of the Hilton Garden Inn and Fairfield Inn ...

Name ofProject Advisor: Professor avid Grooms

SIGNATURE

DATE

CALIFORNIA STATE UNIVERSITY SAN MARCOS

PROJECT SIGNATURE PAGE

PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE

MASTER OF BUSINESS ADMINISTRATION

PROJECT TITLE: An Operational Audit ofthe Hilton Garden Inn and the Fairfield Inn & Suites

AUTHORS: Heather Rochelle Frazier

PRESENTATION DATE: 8 August 2017

THE PROJECT HAS BEEN ACCEPTED BY THE PROJECT COMMITTEE IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION.

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT

An Operational Audit of the Hilton Garden Inn and Fairfield Inn & Suites

Sponsor: RAR Hospitality

Heather R. Frazier

California State University San Marcos

BA 685 Capstone Experience

6 August 2017

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 1

Table of Contents

Executive Summary……………………………………………………………………………. 2

Background and Overview …………………………………………………………………… 3

Introduction of RAR Hospitality and Hotels………….………………………………………. 4

Observation and Analysis Results……………………………………………………………. 9

Methodologies…………………………………………………………………………………. 19

Learning Opportunities……………………………………………………………………….. 23

My Strengths and Weaknesses……………………………………………………………... 30

Recommended Changes…………………………………………………….……………..... 35

Most and Least Rewarding Experiences…………………………………………………… 37

Recommendation of Sponsor………………………………………………………………... 39

How the Capstone Experience Integrated with Business Hospitality……………………. 39

Overall Evaluation and Justification of My Experience……………………………………. 40

References…………………………………………………………………………………….. 42

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 2

Executive Summary

The success of a business can be measured according to multiple different

channels: financial management, operational efficiencies, and organizational

development. It’s unfortunate that many businesses in the hospitality industry (hotels,

restaurants, retail, and tourism etc.), miss the opportunity to establish a company

culture where employees thrive, and are given the opportunity to put the needs of the

guest first.

Over the course of two months, Ji and I conducted an operational audit on two

hotels that are owned and operated by RAR Hospitality; the Hilton Garden Inn in Del

Mar, California and the Fairfield Inn & Suites by Marriott, in San Marcos, California. The

operational audit took a close look at four different areas of the hotel; with a goal to

result identify best practices and areas needing improvement.

The areas that we audited were the front desk / check-in process, breakfast

operations, housekeeping, and catering and events. Initially the audit was going to

measure the operational effectiveness of each of these areas based on metrics that we

developed (focusing on time, availability, and competence). By the end of week two, Ji

and I realized that the success of an organization in the hospitality industry is focused

more on taking care of the employees and guests, not the task checklists that come with

each position.

In addition to completing audit of the four areas, we were able to encompass an

organizational behavior assessment for multiple positions within the hotel; General

Manager, Assistant General Manager, Operations Manager, Human Resources

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 3

Supervisor, Assistant Director of Food & Beverage, Housekeeping Supervisors, and

Housekeepers.

Background and Overview

The scope of our project involved auditing the operations process for two hotels,

each having its own brand; the Hilton Garden Inn in Del Mar and the Fairfield Inn &

Suites in San Marcos. Ji and I (the audit team) completed an operational audit for both

hotels and decided to audit the Hilton first. We focused primarily on the following four

areas: 1) Housekeeping, 2) Front Desk / Check-in, 3) Breakfast, and 4) Events and

Catering. We also observed the organization behavior of the following positions: 1)

General Manager, 2) Assistant General Manager, 3) Operations Manager, 4) Human

Resources Supervisor, 5) Assistant Director of Food and Beverage, 6) Catering and

Sales Manager 7) Front Desk Agents, 8) Housekeeping Supervisor, 9) Banquet Server,

10) Food and Beverage Server, 11) Housekeepers, 12) Housemen, and 13)

Maintenance; we observed housekeeping, front desk / check-in, and breakfast on three

different dates, and at three different timeframes (we wanted to ensure we were able to

get a good idea of how the hotels operated during the week, on weekends, when they

were busy, and when business was slow).

The objective of this project was to audit each area to find best practices which

RAR Hospitality can utilize and carry forward in support of their other hotel management

operations. We also wanted to discover any potential changes that could be made to

positively impact further RAR Hospitality hotel operations. Initially we only focused our

efforts on evaluating the departments, but over the course of the observation, we

realized that including the organizational behavior of the employees was a major factor

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 4

in how each of the different departments operated. We soon realized that having never

completed an operational audit, the Hilton would end up being how we learned what to

do and what not to do… auditing the Marriott was a much smoother process!

Introduction of RAR Hospitality and Hotels

The organization we were assigned to was RAR Hospitality, based out of San

Diego, California, and one of the fastest growing hotel management and consulting

businesses in the industry. Robert Rauch, the Chief Executive Officer and President of

RAR Hospitality, oversees twenty branded and independent hotels which are located

throughout California and Arizona. Using Mr. Rauch’s 40+ years of experience in the

hotel industry, RAR Hospitality offers a variety of hotel and resort management services

to investors, developers, owners, and lenders throughout the United States.

RAR Hospitality’s services include sales, operations, marketing, consulting, as

well as guest satisfaction, and are geared toward branded and boutique hotels;

measurable results are delivered in market penetration, revenue management, cost

management, guest satisfaction, margin improvement, and profitability. RAR Hospitality

takes a close look at the unique needs of individual properties to maximize opportunities

and increase financial potential. They understand the importance of having a

management company that is aligned with an owner’s culture, values, and interests,

taking pride in enabling owners the ability to allow their assets to reach their full

potential (RAR Hospitality, 2017).

The Hilton Garden Inn is located in Del Mar, California in the Sorrento Valley

district (just south of the Del Mar fairgrounds), and has been operated by RAR

Hospitality for many years. It is comprised of 85 hotel rooms, 3,600 square feet of

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 5

meeting space, a 24-hour business center, outdoor pool, fitness center, and a

restaurant offering American cuisine called Bistro 39. This hotel is occupied by mostly

business travelers, and offers a great meeting space to host business meetings,

evening parties, and banquets of up to 300 guests (Hilton Garden Inn Del Mar, 2017).

The Fairfield Inn & Suites is the newest hotel that RAR Hospitality operates and

manages, and has been opened for almost two months. It is located right off Highway

78 and Twin Oaks Valley Road in San Marcos, California. This Marriott branded hotel is

comprised of 116 rooms and attracts mainly families on vacation and leisure travelers; it

is located near multiple wedding venues including Lakehouse San Marcos Golf Course

and Stone Brewing Company. Complimentary breakfast, free wi-fi, a fitness center,

outdoor pool, and business center, and are a few of the amenities the hotel offers its

guests (Fairfield Inn & Suites, 2017). Most notably this is the only hotel in Southern

California to offer a robot, named “Hubert” that delivers items such as towels, toilet

paper, food, and other products as requested using the elevator, and independently

maneuvers around the hotel!

Ji and I started the audit process by meeting in order to decide how we wanted to

go forward with the audit (in terms of which hotel to audit first and what areas to audit);

with a conclusion to audit the Hilton first. We showed up at the Hilton and met with the

General Manager to discuss our plan. After speaking with the General Manger, he

recommended that we focus our efforts on breakfast operations, housekeeping, front

desk / check-in, and events (prior to this meeting we did not have a solid plan on the

areas we would audit; we wanted the General Manager to give us recommendations on

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 6

what he felt would be best). The meeting with the Hilton’s General Manager was exactly

what Ji and I needed to get our audit off the ground.

After meeting with the General Manager, Ji and I came up with metrics,

developed using information from the hospitality classes we had earlier this year, to

determine what should be considered successful in each of the identified areas. Our

plan was to observe employee interaction with customers and measure how well each

of the areas were operating based on the metrics we developed. At the end of week

two, Ji and I realized that operational success in the hospitality industry isn’t defined by

metrics, but by the positive human interaction that employees have with the guests.

Upon discovering this, we abandoned the metrics and began taking notes of all

employee and guest interactions. Below are the metrics that we initially used during the

first two weeks (four metrics for each area):

Breakfast –

1. How often servers refill buffet area

2. How fast guests receive their food

3. Availability of servers when guests need assistance

4. How often servers check on guests

Housekeeping –

1. How long it takes to clean one room

2. How passionate are the housekeepers

3. Do housekeepers follow cleaning checklists

4. How does the supervisor follow-up with discrepancies

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 7

Check-in / Front Desk –

1. Does the Front Desk Agent personalize the experience (effort to get to know the

guest, explain attractions in the area, call guest to check on them)

2. How long does it take for a guest to check-in

3. Interaction between front desk and guests (eye contact, greeting, smile, responsive)

4. How front desk handles issues (room is not ready, pool is closed for maintenance,

food isn't available)

Events –

1. Interaction between hotel staff and guests at event (are there directions for guests)

2. Timeline for setup

3. Timeline for teardown

4. Availability of hotel staff during event

Ji and I came up with a schedule of when we wanted to audit each area and

ensured the General Managers each agreed to our schedules, changing them based on

what was best for the hotel. In determining the best schedule was, the General

Managers both agreed that it is best to see each area at different dates and times. The

schedule we used ensured that we observed each area on three different occasions,

and at three different time periods throughout the day. For instance, we began our audit

at 5:50am for the start of breakfast operations at the Marriott, and completed the

Hilton’s sales and event audit at 7:15pm. It was important that Ji and I remained flexible

with our project times so that we could get the most accurate picture of how each

department was operating and interacting with the guests. Additionally, we scheduled

our times around the different meetings they had (we wanted to attend the

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 8

housekeeping meetings at both hotels). Below is the timeline we followed to complete

the audit:

Figure 1. Hilton Garden Inn Schedule

Figure 2. Fairfield Inn & Suites Schedule

Upon completing our audit each day, Ji and I would discuss what happened and

take detailed notes of all interactions, conversations, and observances that took place.

We kept a running journal of everything that happened so information would be readily

available upon completion of the project. Ji and I worked together to ensure that we

DATE OBSERVATION TIME6/5/2017 (Monday) In-Brief with General Manager 9:30am6/7/2017 (Wednesday) Breakfast 6:30am6/7/2017 (Wednesday) Housekeeping 7:30am6/9/2017 (Friday) Check-in / Front Desk 3:00pm6/10/2017 (Saturday) Breakfast 6:30am6/10/2017 (Saturday) Housekeeping 7:00am6/15/2017 (Thursday) Event 1 & Event 2 6:30pm6/19/2017 (Monday) Check-in/Front Desk 5:00pm6/21/2017 (Wednesday) Breakfast 7:00am6/21/2017 (Wednesday) Housekeeping 7:30am6/22/2017 (Thursday) Out-Brief with General Manager 4:30pm6/22/2017 (Thursday) Check-in / Front Desk 6:30pm

DATE OBSERVATION TIME6/27/2017 (Tuesday) Hotel Reconnaissance 10:00am6/29/2017 (Thursday) In-Brief with General Manager 9:30am7/5/2017 (Wednesday) Check-in / Front Desk 2:00pm7/6/2017 (Thursday) Breakfast 5:50am7/19/2017 (Thursday) Event 1 9:00am7/17/2017 (Monday) Breakfast 7:30am7/17/2017 (Monday) Housekeeping 9:00am7/19/2017 (Wednesday) Housekeeping 12:30pm7/19/2017 (Wednesday) Check-in / Front Desk 2:00pm7/19/2017 (Wednesday) Event 2 3:00pm7/22/2017 (Saturday) Check-in / Front Desk 2:30pm7/28/2017 (Friday) Out-Brief with General Manager 12:15pm7/29/2017 (Saturday) Breakfast 7:30am7/29/2017 (Saturday) Housekeeping 9:00am

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 9

both had the information we needed to successfully write and present our findings. As Ji

and I conversed about our findings, we both agreed that the Hilton and Marriott hotels

are very different. The hotels should not be in the same competitive set, as they are

very different regarding the type of customers they attract, location to attractions, the

amenities they offer, and the employees who run the hotels (details are provided in the

following pages).

Observation and Analysis Results

The Hilton Garden Inn and the Fairfield Inn & Suites are both quality hotels that

offer guests excellent service. From our observation, RAR Hospitality is doing an

exceptional job at maintaining the grounds and providing an excellent experience for

each guest. While searching the websites for each hotel, in order to find information and

accuracy, we found that the Hilton’s website has three areas that need to be updated

and the Marriott can add additional highlights to make the hotel more competitive.

In regard to the Hilton Garden Inn’s website, it is still advertising the Serenity Spa

and Salon, which has been closed for a while now. This can be misleading to a

customer when shopping for a hotel, or might make a guest frustrated if they arrive to

the hotel and find out there is no spa and salon. Secondly, the website mentions

multiple attractions in the area for guests to enjoy. One of the pictures and attractions

listed is Sea World’s Shamu Show. Shamu’s last show was over six months ago and it

was replaced with a dolphin show. When customers see this, they might not want to

make a reservation because they know the website hasn’t been updated... and can lead

the potential guest to assume the rest of the information on the website is wrong too.

Lastly, the Hilton’s website says complimentary shuttle service to nearby attractions and

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 10

in the following sentence talks about the San Diego Zoo, Sea World, and LEGOLAND.

When I inquired with the Front Desk Agent about their complimentary shuttle service, I

was informed the shuttle only travels within a 5-mile radius. The wording of the shuttle

service, coupled with the following list of attractions in the area, is misleading and can

easily confuse guests.

The Fairfield Inn & Suites website was updated and on target but was missing an

exciting part of their technology. Hubert! Hubert was nowhere to be found on the

website. If the hotel can add this exciting amenity to their website, it could attract more

customers when they are narrowing down which hotel to stay in. According to the

General Manager, guests have been purchasing items from the hotel’s marketplace just

so they can see Hubert deliver the items to their rooms. Advertising Hubert and using

him as a marketing tool could be very beneficial to the hotel.

Communication at the Hilton

Communication at the Hilton was challenging from the very start of the project. Ji

and I did not make contact with the General Manager until the morning that we showed

up, which placed him in a bind, due to the very busy Monday already occurring at the

hotel. Going into the in-brief with Mr. Croughan (the General Manager), Ji and I should

have come prepared with a synopsis of our audit that would allow him to get a better

understanding of what our operational audit would entail (we thought this coordination

had already occurred, causing us to arrive unprepared). Ji and I were able to get

through the meeting with Mr. Croughan, but it was very awkward and uncomfortable

since we were not prepared and he did not know we were coming. We were able to use

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 11

our first audit experience at the Hilton and learn from our mistakes, correcting them

when we initially me with the Marriott’s General Manager.

Housekeeping at the Hilton

Housekeeping operations inside of a hotel is a 24-hour operation. It is imperative

that all the housekeepers understand the guidelines and standards and they complete

their duties accordingly. Housekeeping operations at the Hilton were very effective in

that every housekeeper understood their role. During our audit, all the housekeepers

were in good spirits, motivated, and moved with a purpose. A few of them we spoke

with had been working at the hotel for almost nine years and were very satisfied with

their position which shows loyalty and commitment to the company. On one occasion,

the Assistant General Manager brought coffee for each of them, which helped start their

day off on a good note and was a nice touch by management to make a positive

difference in their employees’ day.

Once a week the Hilton Housekeeping Department holds a meeting to discuss

potential issues, allow Human Resources the opportunity to provide updates, and sync

the housekeeping operations. On the morning that Ji and I were there to attend the

Housekeeping meeting, we were surprised to see how quick the meeting went. Ji and I

waited for the meeting to start, and stepped out of the room for approximately 90

seconds. Upon our return, the meeting was finished and the housekeepers were all

leaving to start their day of work. We asked the Assistant General Manager what was

discussed and he said four topics were discussed: 1) he thanked them for their hard

work, 2) he spoke to them about the importance of cleaning under the bed, 3) there had

been problems in the past with the housekeepers selling products to each other (for

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 12

example, Mary Kay, Tupperware, Oils etc.), and he explained how this was not allowed,

and 4) asked them if anyone had questions or concerns. We wondered how could the

meeting be effective since it lasted around one minute. Additionally, the majority of

Housekeepers do not speak any English, so the Human Resources Representative

translated the meeting between Spanish and English.

As Ji and I got to know Diego and Rosa (the Housekeeping Supervisors), they

mentioned to us they only have five housekeepers each day to clean the hotel; each

housekeeper is responsible for a minimum of 17 rooms, which has been a challenging

experience for them. Both Housekeeping Supervisors recommended, on two separate

occasions, that hiring two additional housekeepers would greatly enhance their daily

schedules (they used to have seven, but two left and were never replaced).

Check-in Process at the Hilton

The check-in at a hotel is one of the most important processes. For many guests,

the front desk agent is the first person they will see and this interaction will set the tone

for how the guest views the hotel and the brand. With social media being instantly

available to guests, it is imperative that hotels make the most of the few minutes they

have with each guest during this time, otherwise guests may instantaneously write a

bad review for the whole world to see.

The front desk agents at the Hilton were all very friendly and helpful in assisting

customers with their needs. As guests arrived, the check-in agents were there to ensure

a smooth check-in took place, and that guests were able to depart the front desk in a

timely manner. There were a few occasions where only one agent was at the front desk;

she was very busy answering the phones and assisting guests; many of the guests had

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 13

to wait until the phone call was complete before they could check-in. A recommendation

would be to have two people at the front desk during peak hours of check-in, this would

help guests by shortening the wait time. On another occasion, we had made

arrangements with the front desk to return the following morning. The front desk agent

told us she would let the next shift know, but when we arrived the following morning,

they had no knowledge we were coming. Ji and I wondered if there was a shift-change

meeting, and if so, what they talked about during this meeting. Next time, I would

recommend the audit team attend the shift-change meeting to see what is discussed.

During our audit, there were multiple requests made by guests. One guest

needed a wheelchair, one was waiting for a package to arrive, and another requested to

switch rooms because the rain drain was making too much noise outside of the window.

The front desk agents did a stellar job at assisting each guest and ensuring they were

able to accommodate the requests as applicable. Another notable interaction, is the gift

bag that each guest receives when they arrive. The agent asks if they would like a bag

of Cheez-it crackers, pretzels, nuts. etc., and provides a small gift bag to the guest. We

could tell that this simple gesture made the guests feel welcomed and appreciated.

Breakfast at the Hilton

Breakfast at the Hilton started promptly on time every morning. At exactly

6:30am, the servers were filling up coffee cups for guests and passing out menus.

Guests are greeted with a smile and efficiency from the hotel’s star employee named

Rachel. Ji and I both agreed that Rachel is the main reason that guests leave satisfied

with their breakfast experience. Rachel was motivated, friendly, fixed issues, requests,

and complaints, and served every guest with enthusiasm. Rachel ensured the hotel

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 14

shined by making the guests feel valued, welcomed, relaxed, and enabled them to

enjoy their breakfast. It takes a special individual to be this personable and happy at

6:30am!

On all three occasions auditing the breakfast operation, there were only two

servers working at a time. Guests were greeted immediately upon arrival, but found it

hard to close-out the experience and pay for their meal. Some of the guests are staying

at the hotel and the bill can be added to their room, but for the guests that need to pay

for their meal before they leave, they had to track down the server. The two servers

were very busy taking orders, delivering food, and filling up coffee and there didn’t seem

to be much time available for them to close-out the bill. Additionally, breakfast does not

start until 7:00am, and there were times guests had to check-out of the hotel before

breakfast began. I would recommend having fruit for sale in the hotel shop, or having

complimentary snacks near the coffee area between 5:00am – 7:00am.

Events and Catering at the Hilton

The Assistant Director of Food and Beverage is the individual in charge of

ensuring each event is being conducted safely and efficiently. The event that Ji and I

audited was a middle-school graduation party. The event was scheduled for 6:30pm

with 150 guests, and appetizers provided by the hotel. Ji and I arrived to the hotel

around 3:00pm, just in time for another event to end. Around 3:30pm, the banquet

servers began to setup for the evening event, and at 4:15pm guests arrived early to

setup their decorations. The banquet servers were motivated to get the facility setup

according to the request, and ensure there were enough tables, chairs, linens, and

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 15

cutlery. There were three banquet servers working the event, which was plenty to

accomplish this workload.

During the audit, and once the event started, the guests were not pleased that Ji

and I were observing and taking pictures of the event. The guests complained to the

Assistant Food and Beverage Director, who then told us we needed to leave. Ji and I

were disappointed that we were unable to stay and watch the event unfold and see how

the staff attended to the needs of the guests. Ji and I did not know that we were not

allowed to be there or take pictures, no one told us.

Before departing, we were able to speak with the few banquet servers and also

the security man who was there ensuring everyone’s safety. One of the banquet servers

told us that he currently works three different jobs and had already worked more than 12

hours that day; as a banquet server, he is on-call and offers his services to multiple

hotels in the San Diego area. The security man was also on-call, and was surprised to

see that the event was full of middle-school children; when he arrived he was under the

impression that it was going to be a party with alcohol.

One of the surprising things we noticed with this event, was how it practically

took over the hotel. The middle-school children were very loud, and the fact that the

event room is located right next to the bar, we could tell the guests in the bar were

bothered by the loud music and children running back and forth. The event also took

much of the hotel parking; it can be frustrating to guests when they arrive at a hotel and

there are no available spots to park. Lastly, the hotel put up a sign informing the event

to use a side entrance for the hotel. This was a positive move on the hotel’s part, as the

event was extremely chaotic. I would not recommend the Hilton hosting events like this

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 16

in the future, as it does not appear to support their atmosphere or the demographic that

chooses to stay at the Hilton Garden Inn.

Communication at the Marriott

Ji and I made contact ahead of schedule with the General Manager, and ensured

we worked our schedule around what was best for him. The General Manager was very

open about sharing anything and everything with us. Since the Marriott is so new, there

are many areas the General Manager works personally to ensure success. The General

Manager is approachable, professional, down to earth, and pleasant to be around. It

was evident that the employees feel comfortable with him and are able to discuss

issues or concerns that need his attention.

Rachel, the Human Resources Representative, took the initiative to introduce

herself and ask us a few questions about who we were, and what we wanted to do with

our lives after the MBA program. We appreciated her openness and encouragement as

she shared her personal career story with us. She also took the time to show us the

system she uses to track pay and the hours the employees are working.

Housekeeping at the Marriott

Ji and I were very impressed with housekeeping operations at the Marriott.

Firstly, the housekeeping department and laundry area is bright, clean, and inviting.

There were motivational quotes posted on the walls that the hotel staff left for the

housekeepers. There was a bulletin board with a picture collage of the staff having fun

and working together as a team. The hotel’s management has done an excellent job at

incorporating the housekeeping department into the hotel team. Additionally, there were

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 17

pictures on the wall to ensure everyone understood how items in the rooms should be

placed, this is a great way to posts a quick reminder of the cleaning standards!

Currently, there is no housekeeping supervisor, so the General Manager is filling

that role. This speaks volumes in how the hotel is performing its hiring practices; better

to wait and find the right person to fill the job, then to hire someone just to fill a position

quickly… ensuring the right person is on the bus (Collins, 2001). During the audit, the

General Manager explained how the housekeeping scheduling works and showed us

the computer program he uses to generate the room checklists; the computer system

ensures that each housekeeper is fairly allotted an equal amount of credits, referring to

the time it should take to clean a room.

Ji and I had never seen such a large pile of laundry before! After talking with the

housekeepers, we were made aware that it is extremely rare that the entire pile can get

washed and folded in a 24-hour period. There are two washers and two dryers, but the

demand is too great. Additionally, we learned that the laundry shoot cannot keep

spoiled linens in it because it creates a mildew smell; linens are taken out continuously

and piled up on the floor. One of the employees mentioned how he felt bad that the

hotel had to throw away so much shampoo, conditioner, and lotion; if it was below a

certain point, it could no longer be used. Ji and I recommend that maybe the unused

products be donated to a local shelter.

Check-in Process at the Marriott

The check-in process at the Marriott is extremely efficient, and because it

happens in such a timely manner, there were never more than two guests checking-in

at the same time. During business hours, the hotel always had a minimum of two front

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 18

desk agents ready to assist, which ensured an agent was available for guest check-in if

phone calls came in. The agents were very knowledgeable about the surrounding area,

and would go out of their way to get to know their guests better. Most of the guests that

checked-in had multiple pieces of luggage, more than three family members, and

seemed to be in “vacation mode.” Additionally, the front desk agents gave compliments

to guests throughout the day.

One of the mornings, when I arrived at 5:50am to audit breakfast operations, the

front doors to the hotel were locked. I rang the bell, but no one came. After about three

minutes, a front desk agent came to unlock the doors and apologized for them being

locked. He told me he must have turned the key the wrong way, and then proceeded to

ensure they were opened correctly. All the front desk agents are professional, happy,

approachable, and personable.

Breakfast at the Marriott

All I can say about breakfast operations at the Marriott, is I am impressed! It is

impressive the variety of food offered during the complimentary breakfast, and I am

extremely impressed with the two servers that are constantly checking on the food,

ensuring cleanliness, and interacting with the guests. It doesn’t matter if a guest arrives

right when breakfast starts and ends, the guest is going to get 100% quality food and

service. I honesty have never seen two servers do such an excellent job at their duties;

the General Manager at this Marriott did an outstanding job finding quality employees!

Events at the Marriott

The Marriott offers a great space for businesses to hold meetings. Ji and I were

able to witness two events during the audit, and both were supplied with the service and

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 19

facilities they needed to complete their event. The second event hosted 20 to 30 people

and they catered their own lunch in the breakfast area of the hotel. At the conclusion of

the event, I overheard some of the guests complaining that they were freezing, but other

than that, everything seemed to go seamless.

Methodologies

Many of the experiences we had directly related to our academic hospitality

business program, and it was very enlightening learning about it in the classroom and

then seeing first-hand how it is applied in the hotel industry. Running a hotel taps into all

the hospitality classes we had this year, and it all boiled down to people. It is about

hiring the right people, and treating people the right way; employees, customers, and

guests alike.

Organizational Behavior

During the audit, Ji and I observed the organizational behavior at each hotel, and

agreed that both hotels do an excellent job at working together towards the common

goal of running and operating the hotel. We do not know to what extent that the General

Managers use organizational behavior tools to enhance their employee and manager

relationship, but from what we gathered, both hotels offer a healthy environment that

motivates the employees to work as an effective group.

We could see first-hand how the recognition of organizational behavior can be

beneficial within the management of the Hilton and Marriott. Organizational behavior

refers to a group of people who work together toward common goals and how they

behave within an organization; since organizational behavior is a science, its data can

be obtained through organized study (Andre, 2008). The management at the Hilton and

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 20

Marriott can use team-building tools, 360-degree feedback, personality diagnostics, and

job enrichment techniques to enhance the effectiveness in the workplace.

Focusing efforts on organizational behavior will improve the overall well-being of

the employees and increase the effectiveness of the hotels, which translates into

financial, operational, and organizational success. For instance, the General Managers

may face fundamental organizational behavioral issues such as, how power and politics

determine careers, employees having a work-life balance, keeping management and

employees motivated, being effective leaders, and keeping the hotel competitive within

their competitive set; the hotel managers must be aware of potential issues and have

the tools to overcome them (Woods, 2012).

Brand Equity

Both the Hilton and the Marriott have strong brand equity, as each hotel offers a

name, logo, loyalty rewards programs, and a distinct identity that differentiates them

from other hotel brands. Guests know what they can expect when they stay at the Hilton

or Marriott, which is why both brands have high guest satisfaction, guest loyalty, and

guest retention. Both hotels would be categorized as a “Brand Champion” in that guests

rate the performance above those of other hotel brands and they have a strong

occupancy rate and room rate; the Hilton and Marriott are both high performance and

high awareness hotels (Dev, 2012).

Inventory Management

Inventory planning and control is another important operation that takes place

inside a hotel. Hotel management must be able to forecast how many supplies they will

need to effectively run the hotel (food, linens, toiletries, paper, cutlery, cleaning

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 21

supplies, laundry, and office supplies are just a few of the items that must be

maintained). While auditing the Marriott, we were able to observe how the Operations

Manager applied the inventory process in regard to toilet paper, and the variety of bread

that is served for breakfast (Aboolian, 2011).

Hotels must calculate how many toilet paper rolls are used each month to ensure

housekeeping has the supplies they need; during our audit, toilet paper was delivered to

the Marriott and stored for upcoming use. Successful Food & Beverage service relies on

successful inventory management. Fresh bread is used each morning during breakfast

at the Marriott, and the Operations Manager must pre-order enough to ensure guests

have what they need; bread must be ordered and delivered in an ongoing and timely

manner. We observed as the Operations Manager met with a local bread-maker to

determine the types of bread that could be ordered, discuss the ordering, delivery, and

cancellation process, and determine what breads would best fit the hotel’s needs.

Inventory management is much more complex at the Hilton, as they offer a full-service

restaurant.

Communication Methods

When operating a hotel, communication is one of the keys to success. Everyone

should be synced and have a clear understanding of what their role is and how their role

impacts the greater picture in the success of the hotel. There are multiple

communication channels a hotel can choose from when transmitting messages within

and outside of its organization. Depending on how rich the media is considered, will

determine which method is used (Andre, 2008). Telephone, electronic mail (e-mail),

face-to-face conversations, postal mail, and video media conversations are options that

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 22

can be used. During the audit, three channels were commonly used: face-to-face, e-

mail, and telephone.

Hotel operations require constant communication and some of them we

observed, or spoke to employees about were: 1) using the internet for reservation

assistance and interaction with customers, 2) assisting customers as they arrive in the

means of check-in, 3) mail delivery, 4) phone service, 5) communicating with employees

to ensure daily accomplishment of tasks, and 6) providing financial statements and

reports to corporate each month. Every employee should be able to determine which

communication channel should be used to best translate the message.

Group Development

There are five stages of group development, that when cycled through, will

produce high-performing teams; these teams are highly committed to a common

purpose and are deeply devoted to the personal growth and success of their coworkers.

The Hilton and Marriott are at two different stages, mostly because the Marriott has only

been open for two months. Our audit resulted in the Hilton being categorized in the

Performing Stage. The group has moved past orientation, petty frustrations that arise

while clarifying their roles and responsibilities, and trying to work to establish

cohesiveness, and they are currently a team that understands their individual roles and

their coworkers’ lanes, workplace norms, social responsibilities, and excepted practices.

The Performing Stage is where an organization thrives and where it should strive to

remain (Andre, 2008).

The Marriott being such a new hotel, has not had the time to develop through the

development stages, but is well on its way to arriving in the Performing Stage. I would

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 23

categorize the Marriott in the Norming Stage. The employees have moved past

orientation, conflict caused from adjusting to new work-place situations, and learning

what interpersonal behaviors are acceptable as an employee. They are now focused on

developing the standards, roles, and norms that will be accepted and carry the company

culture forward. During this stage, the Marriott employees will become more comfortable

being able to express their opinions, and continue developing team-cohesiveness

(Andre, 2008).

Learning Opportunities

Over the course of the project, there were multiple learning opportunities that I

came across, and I have chosen the top seven to expound upon: 1) The importance of

company culture and how the management company establishes and maintains it (even

as employees come and go), 2) Hiring the right people, 3) The importance of being

competent in your job, 4) The importance of team work, 5) The importance of

communication, 6) The importance of senior management support, and 7) The

importance of good leadership.

The Importance of Company Culture

Company culture plays a major role in how successful an employee is going to

be at taking care of guests. The Hilton has been around for quite some time and many

of the employees have worked there for many years. Every employee that we spoke

with at both hotels, were thankful for their job, enjoyed the environment they worked in,

and seemed genuinely happy as they completed their tasks. Ji and I were not able to

observe how the two hotels addressed complaints that employees may have, but from

the looks of things, there probably aren’t very many. Additionally, the Marriott is such a

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 24

new hotel, that the employees appear thankful to have their new job. The employees at

the Marriott were much more sociable with the guests, and time and time again went out

of their way to check on the needs of guests and make small talk. The Marriott was an

extremely friendly environment that created an inviting, friendly, and comforting

atmosphere, making the hotel feel like a home away from home.

Hiring the Right People

We have heard over and over again throughout our MBA hospitality studies, that

when a company takes care of its employees, the employees will naturally take care of

the guests. It really does start with hiring the right employees. Ji and I often spoke about

where and how the Marriott in San Marcos found all their employees. They are so

friendly, genuine, hard-working, sincere, grounded, and incredibly nice human beings.

The employees at the Marriott seemed to be more open and transparent than those at

the Hilton. It might be because employees at the Hilton have had their jobs for a much

longer time and are used to what they are doing, possibly even a little complacent; the

employees at the Marriott are each truly going above and beyond in their duties. For

instance, the two ladies that work breakfast operations are continually finding anything

they can clean, greeting the customers with a smile, and conversing with the guests to

ensure they have all their needs met; this behavior was consistent regardless of the

time of day.

During our audit at the Hilton, Ji and I chose one employee that stood out to us

the most. This employee continuously went above and beyond while she was doing her

duties, ensured that all the guests were well taken care of, always had a smile, and was

absolutely the star performer during our time at the Hilton. Rachel, the server in the

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 25

restaurant, had great interactions with all the guests. She consistently moved with a

purpose and was motivated as she completed her duties. Ji and I were extremely

surprised and disappointed to find out from the General Manager, that he does not

believe she is a team-player, or that he would not classify her in the top 35 employees.

Regardless of the General Manager’s perception, the Hilton is blessed to have her

working at that hotel and guests responded very well to her.

The Importance of Being Competent in Your Job

Ji and I noticed there are actually very few people who work in a hotel. This

means that everyone who has a job needs to know how to do that job. There is no time

for someone to have to be told what to do. In order for an employee to be successful

and have autonomy to do their job, they must be competent in their area. As we

watched the different departments run operations, most of the employees (with an

exception of the General Manager and Front Desk Agents), work alone. Everyone must

know and understand why their job is important and how their job feeds into the bigger

picture; each position in operating a hotel plays an important and significant role in the

entire operation.

Ji and I asked the Hilton’s General Manager on how a hotel can run with such

few people working it, and he said, “Sometimes it’s better to have fewer employees, so

there is less management involved. More stuff gets done when you have the right

number of employees… few can be better.” We both agreed and appreciated hearing

this from him; if the few employees are competent in their job, fewer can be better.

Currently, the Marriott does not have a Housekeeping Supervisor, so the General

Manager is filling those duties. The housekeeping supervisor responsibilities mostly

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 26

take place in the back-of-the-house (the area of the hotel which is behind the scenes

and off-limits to guests), which must run independently, but in coordination with the

front-of-the-house (area of hotel that is visible and accessible to guests). Being

competent in your duties and responsibilities is the key to success.

The Importance of Team Work

Every area we audited required team work! All the following areas had to work as

one giant team: Front Desk Agents, the General Manager, the Assistant General

Manager, Human Resources, the Operations Manager, the Food and Beverage

Director, Housekeeping, and Maintenance, and within each of these departments they

must also work as a team. Each of these departments depend on the success,

communication, and timeliness of the other departments in order to be successful.

Inside hotel operations, all employees need each other.

The housekeeping department must all work together to ensure rooms are

cleaned accordingly and in a timely manner. The Food & Beverage department must

work together to ensure food is ordered, prepared, and delivered in an exceptional and

timely manner. The General Manager must work with everyone to ensure the hotel is

being run smoothly and efficiently. Team work is vital in hotel operations, and having the

right people on the team makes all the difference. We could see in both hotels how the

employees value team work, but observed at the Marriott that the employees seemed

more willing to step outside their immediate team to assist in other areas.

For instance, at the Hilton, we did not see the front desk agents assist outside of

their front desk duties, or the servers during breakfast operations assist outside of the

food and beverage area. At the Marriott however, the employees seem to step in if they

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 27

are available and help wherever there is a need; there was more cross-talk and cross-

training with the employees at the Marriott.

The Importance of Communication

From day one of our audit, Ji and I realized just how important effective

communication is. When running a hotel there are many different variables and factors

to consider. Multiple operations are taking place coincide each other, and it is

imperative that updates, requests, messages, and direction be communicated up and

down the different channels effectively. If one person misses a meeting and does not

get the updates, it will impact many of the follow-on operations. Everyone should feel

they have the opportunity to communicate and that they are heard when conveying a

message.

From our observation at both hotels, the Marriott seems to be more hospitable for

employees to vocalize requested changes or concerns. This may be due to it being

such a new hotel and operations are still in the process of being ironed out, but the

senior management appeared to be open to friendly discussions and feedback with the

employees.

During our time at the Hilton, the General Manager mentioned in a meeting that

Ji and I were at the hotel and auditing different areas. Unfortunately, there were two

employees absent from that meeting and the following day when Ji and I arrived, these

two employees had no idea who we were or what we were doing there. I asked that

they call the General Manager to confirm our presence. This experience reminded Ji

and I how important communication and following up is, when working inside an

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 28

organization. Depending on the richness of the message will determine the means the

message should be delivered: via phone, text, e-mail, or face-to-face (Andre, 2008).

The Importance of Senior Management Support

Both General Managers have the autonomy to run their hotels the way they see

fit, and they both appreciate the role in which they play. The employees at both hotels

were very positive and optimistic in their interaction with their supervisors. Each of the

supervisors took the time to check with their staff and ensure they had what they

needed in order to be successful. Every supervisor role that we observed was

interacting with their department and not just sitting behind their computer.

When the Hilton was preparing for the event, the Assistant Food & Beverage

Director was helping set up tables and chairs. He could have been standing back and

just directing the banquet servers, but he was in the room actively moving things around

with his team. While auditing the Marriott, we observed the maintenance man help the

food & beverage team by refilling the coffee and hot water for the guests (again, all the

employees at the Marriott were constantly keeping themselves busy and finding things

they could do to help beautify the hotel and enhance guest experience).

The Monday morning we participated in the weekly housekeeping meeting at the

Hilton, it was encouraging to see the management coming together to prepare. The

Assistant General Manager, Human Resources, and both Housekeeping Supervisors

were present to discuss and determine what they would speak about during their

meeting with the housekeepers. The four managers went into a room and closed the

door for about fifteen minutes while they decided what to speak about (Ji and I both

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 29

agreed that we should have asked to attend the management meeting so we could see

the interaction between them).

The Importance of Quality Leadership

Like in any organization, having a good leader makes all the difference. During

the audit, we observed multiple levels of leadership: Professor Rauch’s leadership as

the owner of RAR Hospitality, Mr. Croughan the General Manager of the Hilton, Mr.

King the General Manager of the Marriott, Diego and Rosa the Housekeeping

Supervisors at the Hilton, and Jorge the Assistant Food & Beverage Director at the

Hilton; each role is crucial to the organization being successful. Good leadership

requires that sometimes tough decisions are made or difficult things are discussed.

Good leaders need to be approachable, sensitive, and aware of what is going on inside

their organizations and with their employees.

Mr. Croughan mentioned that he appreciates how Professor Rauch allows him to

run and operate the hotel and how he simplified the reporting process which has made

more time available to spend on things that are more important; compared to previous

jobs Mr. Croughan has had, the reports took hours out of his day. Ji and I both agree

that being able to have the trust and confidence by Professor Rauch to complete the

audit was something we both appreciated; we were not micro-managed, but were able

to reach out anytime with confidence of receiving his timely feedback.

The leadership looks different at the two hotels. The Hilton has one strong

leader: Mr. Croughan. It is evident that the General Manager is the main leader and that

everything rotates around him. Everyone did their job, staying in their area of expertise,

but he was involved in everything. No one else at the Hilton displayed leadership

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 30

qualities like Mr. Croughan. At the Marriott however, there were two strong leaders: The

General Manager and the Operations Manager. Both Mr. King and Andi, work very well

together. Andi, the Operations Manager, is there to ensure hotel operations are

successful and is a great asset to the Fairfield Inn & Suites.

My Strengths and Weaknesses

There were multiple strengths and weaknesses that I personally witnessed

during the course of the project. Firstly, and in my opinion one of the most important

strengths to have in the hospitality business, was my ability to talk, socialize, and

establish relationships with people I did not know. From the very beginning, I took the

initiative to reach out and introduce our team. I would explain who we were and started

engaging with the employees to learn more about them. I was very aware of how

receptive each of them were and did my best to tailor the conversation to meet their

comfort level. My goal was to make each employee we audited feel at ease and to

nurture their openness to support the project we were working on.

I noticed from our very first meeting with the Hilton’s General Manager, that

everyone seemed standoffish when we used the word “audit.” At the conclusion of the

in-brief with him, I told Ji that we should rename the project from “audit” to “observation

and analysis.” I found that when employees think they are being audited, that they are

less willing to share important information in fear that they might get in trouble. I also

noticed that when an employee thinks they are being audited, they naturally assume

that they have done something wrong.

I believe I was self-motivated and took initiative during the project. Professor

Rauch gave us permission to use his hotels for our project, but was very flexible on the

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 31

type of project we would complete. Once Ji and I determined what we wanted to do, I

sent the email to ensure Professor Rauch was on board; I initiated all electronic

correspondence between all parties involved in our project. Once the two hotels were

identified, I emailed the General Managers for coordination purposes, worked with Ji to

develop the timeline we used to complete the audit, and determined the best method for

us to present the project.

While performing the audit, I would come up with questions for each of the

employees we spent time with so we could get to know them better and find out more

detail about what their duties entailed. As Ji and I were preparing the results of the

audit, I contacted previous professors to request permission to borrow some of the text

books so we could confirm and support our findings with accurate hospitality business

methodologies. Ji and I were both self-motivated and took initiative during this project,

there was no one telling us what to do or how to do it.

This project required that I stay flexible with my ability to audit the hotel based on

two reasons: 1) the timeframe that operations take place and 2) scheduling around what

was best for the General Manager. Depending on what area we were auditing,

determined what time we needed to be at the hotel. For instance, breakfast at the

Fairfield Inn & Suites starts at 6:00am, so Ji and I were there at 5:50am to watch the

process; check-in starts at 4:00pm at the Hilton Garden Inn, so we would audit between

4:00pm – 7:00pm; housekeeping starts at 7:00am at the Hilton Garden Inn, so we were

there at 6:45am; we scheduled the audit during the week and also on the weekend. The

audit schedule changed multiple times to ensure that we could observe the different

areas when the General Manager was present; at each hotel, the General Manager was

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 32

absent during one of the weeks so we pushed the schedule to the right to accommodate

his timeline.

The project required Ji and I to backwards plan our audit to ensure we made

enough time to audit each hotel, to process our findings, to write our papers, and to

prepare our final presentation. We wanted to be on time, not waste time at each hotel

(we did not want to observe to little, or more than what was needed), and to be flexible

with the time while we were at each hotel.

Upon completion of the initial schedule we put together, we e-mailed the General

Managers to ensure our schedule would work for them. After going back and forth (via

e-mail) a few times, we were able to set a finalized schedule. Since hotels are

operational 24-hours a day, it really made our audit easy to work around… as long as Ji

and I didn’t mind starting early or finishing later in the evening.

The teamwork between Ji and I was outstanding. We worked so well together as

we accomplished this project. We trusted each other, encouraged each other, and

ensured that the other person always had what they needed to be successful. Ji and I

collaborated continuously during the project, even on our off days. We supported each

other’s ideas and would brainstorm to develop the best course of action to use. I would

definitely recommend that an audit of this caliber be completed in a team of at least two,

at times there was too much going on for one person to be able to capture everything.

Also, being able to brainstorm upon the completion of each audit session made it easier

for us to capture all the details of what took place.

One of the major weaknesses I struggled with, from the very beginning, was not

having a solid plan for the audit we were completing. I had never completed an audit on

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 33

a hotel before, so the only knowledge I had of how a hotel operates was what I learned

in class. At the beginning, I was auditing through the eyes of a guest, but half-way

through, I realized that our audit would be more beneficial if we completed it through the

eyes of management; the end product is information that represents both the guest and

management observations.

Ji and I thought we had a great plan going into this project: audit the Hilton and

the Marriott and compare how the two hotels do their operations. The problem with

comparing the two hotels, is that they are very different. They have a different set of

demographics as guests, different food & beverage options, one has been around for

years and the other only a few months, and a very different geographic location. Going

into this project we initially planned on comparing the Hilton with the Holiday Inn located

in Carlsbad, but half-way through the summer Professor Rauch suggested we change it

to the Marriott. Once we began to audit the Marriott, we saw that the two hotels were on

different operational playing grounds.

Going into the project, I should have been more diligent in communicating with

the General Manager at the Hilton Garden Inn. Since the Hilton Garden Inn was the first

hotel to audit, Mr. Croughan, the General Manager (GM), was the first GM that we met.

When we arrived at the hotel to meet him, I did not realize that he was unaware we

were coming; Mr. Croughan was very busy and I could tell we caught him off guard. I

should have made contact with Mr. Croughan before we arrived and scheduled an

appointment with him for the project in-brief; we ensured to fix this and contacted Mr.

King (the Fairfield Inn & Suites GM) ahead of time.

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 34

I noticed throughout the project that unless I reach out and asked a question or

make contact with someone, that I’m probably not going to get any information. I have

to take the initiative to communicate otherwise information transactions just will not

happen. The Marriott was much more willing to communicate with Ji and I during the

audit, and would start conversations and ask to show us things on the computer, or

explain in detail how things work. We appreciated the Marriott employees being so

willing to work with Ji and I in for the month.

During our audit at the Hilton Garden Inn, Ji and I were not very forward with

asking to see operational checklists. Any communication we had with employees at the

Hilton Garden Inn was due to us initiating it; the employees were however, very friendly

and open to answering any questions we had. Ji and I realized that if we didn’t ask

about something, then we wouldn’t know, so we came up with questions to ask each of

the supervisors.

Ji and I concluded that we should have met with each of the supervisors prior to

beginning the audit so we could learn more about the person and the job or area they

were responsible for. We met the supervisors as we audited, but had we established a

relationship first, there may have been additional information to gather. We realized that

everyone was busy with their job to complete and adding an extra task of engaging with

the audit team may have taken away from their daily duties and responsibilities.

Even though Ji and I planned to arrive at the hotels at predetermined times, due

to traffic, freeway accidents, and early morning hours, it was hard to be on time 100

percent of the time. It was unfortunate, but we had to delay our out-brief with the Hilton

Garden Inn General Manager by fifteen minutes due to bad traffic. This made me

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 35

realize how important it is to have a job at a location that you can get to in a timely

manner; one day it might take twenty-five minutes to arrive, and then the next day over

an hour. Backwards planning goes hand in hand with time-management, and it is

imperative that employees are on time.

Recommended Changes

There are a few things that Ji and I would have done differently, if we were able

to do the project again. First, we would have coordinated with the Hilton’s General

Manager prior to arriving. This lack of communication on our part, really got our project

off to a bad start. Going into the project was a learning curve for both Ji and I, since

neither of us have ever done an audit like this, and we were doing it on our own. We felt

as if we disappointed the General Manager and probably made him be confused about

what we were doing.

Ji and I initially met with the General Manager, and did not understand how vital

connecting with the Supervisors of each department is. Had we known this prior to

conducting the audit, we would have requested to meet with each of the supervisors

before we started the audit. Had we met with them prior then we would be able to get to

know them and explain why we were observing their areas, which would have made for

a deeper audit experience. Some of the employees seemed confused about who we

were and why we were asking them questions and why we were observing their

behavior, which made us feel awkward!

Another area that I was interested in learning about, but was not included in the

audit, is the protocol is for a security threat. There are so many simultaneous operations

happening while running a hotel. I am curious to see how each department prepares or

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 36

responds to a threat such as a suspicious package, bomb threat, terrorist attack, or an

active shooter. With many of the housekeepers only speaking Spanish, does everyone

know what their role is when it comes to security issues and safety? How does the hotel

handle security situations with regards to the safety of their guests, and who oversees

this process at the hotel? I’m sure all employees must complete required security

training, but how often do the employees do a practice run of what their actions and

responsibilities would be?

The last thing I would change, would be to know exactly what perspective we

were completing the audit from. We started the project auditing from the guest

perspective. Ji and I spent a lot of time coming up with metrics for each area to

determine how well the guest experience was happening, and ended up not even using

these metrics. By the end of the second week, we realized that the “health” of the hotel

is not defined by metrics, but by the company culture and the ability to satisfy guest

needs and expectations. For instance, does it matter that it took five minutes longer to

check a guest in, if the guest leaves happy, with a smile on their face, and feels valued?

When Ji and I realized that our metrics were no longer valid, we changed the audit

perspective from that of a guest to that of a supervisor. The focus changed from “what”

they were doing, to “how” and “why” they were doing it. I don’t think we would have

discovered this, had we not started the audit in the manner we did.

After coming to the conclusion that we did not need the metrics, we reached out

to Professor Rauch to see how he defined success at his hotels, and what three things

are most important to him. He responded with, “Success is measured by ensuring all

guests are happy. To attain that goal, all team members must be treated well and must

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 37

feel that guest satisfaction is their primary responsibility. In other words, treat team

members well, then guests will be happy and will return, and then the business will be

successful and ultimately profitable. The three most important things (other than the

above) are marketing to identify where to find the best guests for the hotel, running safe,

effective operations to minimize operational problems, and charging the right money

and getting the money into the bank. In other words, marketing, operations, accounting.”

Ji and I were both extremely satisfied and impressed with his definition of

success. Some might think that success in a hotel is how much money it can generate,

or where it stands in its competitive set, but to Professor Rauch it is about making sure

his guests are happy. I believe that the Hilton Garden Inn Del Mar and the Marriott

Fairfield Inn & Suites in San Marcos are successful because he has found the right

people to ensure guest satisfaction; his employees all seem to be in the top 10% of

employees (right attitude, motivated, dedicated, secure, team-oriented, willing to learn,

and talented).

Most and Least Rewarding Experience

The most rewarding and valuable experience throughout this process was getting

to see first-hand how a hotel operates. The conversations, observations, questions, and

answers we recorded with the employees and management were lessons that can only

be learned by being there in person. Ji and I have spent months learning about

hospitality and what it means to satisfy customer needs, but to see it happen in person,

and how it takes a special person to excel in doing this, makes my understanding of the

hospitality industry so much greater. Every single employee that we met and spoke with

(regardless of the position), had an attitude of thankfulness for their job, motivation to

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 38

complete their work without being told, and pep in their step. This emphasizes how

important the hiring process is and why organizations need to ensure they bring in the

right type of people that can deliver a hospitable product.

I’ve learned that to be successful in the hospitality industry managers need to

take care of their employees, which will then translate to employees being able to take

care of their guests; employees must be aware of guests’ emotions and know how to

positively cater to them. Mr. King, the Marriott’s General Manager said, “I have an

amazing staff. I can teach someone logistics, but being able to exceed service

expectations, that is up to the actual person… it’s all about the people. Having the right

people on the team makes all the difference.”

During the course of the project, I felt so many different emotions. This reminds

me just how connected emotions are to hospitality. Many times hospitality is unseen,

but a feeling you have based on the experience they encountered (the intangible);

businesses in the hospitality industry should strive to have positive emotional interaction

with their guests/customers. When Ji and I finished auditing the first hotel, I felt proud

and accomplished. When we finished deciding and defining the list of metrics we were

going to use, I felt relief. When I met many of the employees and saw what nice

individuals they were, I felt happy. The miscommunication with the Hilton’s General

Manager made me feel embarrassed and frustrated. When Ji and I missed the

housekeeping meeting, I felt frustrated. When Ji and were asked to leave the event, I

felt a little upset; the project had me experience what many guests or customers might

feel.

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 39

Recommendation of Sponsor

I would definitely recommend Professor Rauch to be a sponsor for future

projects. His accessibility to give first-hand experience on how a hotel operates is

extremely beneficial. Professor Rauch trusted us to complete our project and was

always available to assist. He provided timely feedback to all questions we had for him,

always responding within hours. He was very flexible with accommodating what we

wanted to accomplish in our project and how we wanted to complete it. Ji and I are very

thankful that Professor Rauch allowed us to use two of his hotels to complete our

operational audit.

As far as the Hilton and Marriott go, I would not recommend that the Hilton

Garden Inn Del Mar be used for future projects. Even though the staff was very kind to

us, Ji and I both felt that we weren’t welcome to be there. It seemed to us like we were

inconveniencing them, and they didn’t really have time for us. We were able to get the

information we needed by asking for it, but no one at the hotel took the initiative to invite

us openly into their work areas or explain to us what their processes were. At the

completion of our audit with the Hilton, the General Manager asked us if we actually

learned something by being in his hotel. He seemed surprised when we said yes.

How the Capstone Experience Integrated with Business Hospitality

Ji and I have seen first-hand what we have been learning about all year in our

hospitality classes. Restaurant operations, hotel operations, project management,

human resources, leadership, branding, asset management, organizational behavior,

and marketing are just a few of the core fundamentals of the hospitality business that

we gained first-hand experience in throughout the completion of this project.

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 40

This project exposed us to “top-secret” (back of the house) processes, that only

an employee in this industry would ever get to experience. Being able to meet two

General Managers and observe how everyone’s job is completed and how their role

feeds the bigger picture of hotel success, has been an honor. So much goes into

achieving guest satisfaction, and it all starts with the company hiring the right people to

do the job. The hospitality industry is not like any other industry because to be

successful you must be able to work with others. The hospitality industry is not for

everyone, but yet everyone is affected by it (eating out, traveling, retail). Society

appreciates a business that excels in taking care of its customers, and for an employee

to be in the right mindset to do this, they must feel their company is taking care of them.

Overall Evaluation and Justification of My Experience

I believe that I deserve a solid A on my BA 685 experience. From the beginning

of the MBA program, I diligently sought after hospitality projects that my peers and I

would be able to complete. Upon meeting Professor Mullins, I coordinated for the group

to complete a leadership audit for the project. But then, during our Asset Management

course with Professor Rauch, I realized that an operational audit would be more

beneficial to my personal goals and better support my future hospitality aspirations.

Upon realizing this, I reached out and coordinated for Ji and I to complete an

operational audit using two of his hotels.

I have given 100 percent effort in my coordination, socialization, and hospitality

efforts during this audit (with the hotel employees, hotel management, audit teammate,

and school). I worked to maintain a healthy relationship with Ji, to ensure our audit team

could function at the highest possible level. I took extra steps to motivate and

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 41

encourage my teammate to ensure she believed in herself and our audit project. I am

very thankful for this project experience and what I learned over the past two months

from spending so much time inside hotel operations; everything we were privy to is off-

limits to guests. I have learned through this experience that being successful is about

taking care of the people around me, which is true to successful hotel operations as

well. This project will always be something I remember and take with me as I continue

to proceed in life in the hospitality industry.

Running Head: HILTON AND MARRIOTT OPERATIONAL AUDIT 42

References

Aboolian, R. (2011). Foundations of operations management. Boston, Massachusetts: Pearson Learning Solutions.

Andre, R. (2008). Organizational behavior: An introduction to your life in organizations.

Saddle River, New Jersey: Pearson Education Inc. Collins, J. (2001). Good to Great. New York, New York: Harper Collins Publishers Inc. Dev, C. S. (2012). Hospitality branding: Cornell hospitality management best practices.

Ithaca, New York: Cornell University Press. Fairfield Inn & Suites San Diego North/San Marcos. Marriott. (2017). Retrieved on 20

July 2017 from http://www.marriott.com/hotels/travel/sanes-fairfield-inn-and- suites-san-diego-north-san-marcos/

Hilton Garden Inn Del Mar. (2017). Retrieved on 18 July 2017 from

http://hiltongardeninn3.hilton.com/en/hotels/california/hilton-garden-inn-san- diego-del-mar-SANMDGI/index.html

RAR Hospitality. (2017). Retrieved on 26 July 2017 from http://www.rarhospitality.com/ Woods, R. H., Johanson, M. M., & Sciarini, M. P. (2012). Managing hospitality human

resources: Fifth edition. Lansing, Michigan: American Hotel & Lodging Educational Institute