Green management implementation in a hotel - it works or not?

What is it about?

Knowledge-based economy forces companies to reconsider the strategic impact of different components of internal capital on their performance. Traditional extensive value drivers, based mainly on structural capital, are gradually extended with more intensive utilization of relational and human-resources oriented alternatives also in the hospitality industry. The current approach to hotel management is mostly revenue-oriented, i.e., strives to generate profit from temporally and locationally specific combinations of internal, technical and social capabilities, including, e.g., market segmentation, pricing, capacity allocation, aligned incentives, organizational structure or vocational training. Accordingly, present managers maximize metrics like occupancy (OCC), average daily rate (ADR), revenue per available room (RevPAR), revenue per available customer (RevPAC), gross operating profit per available room (GOPPAR) and many others. Consequently, our research was to identify perspective and feasible combinations of the existing revenue-driven methods with still more pervasive features of knowledge-based management and green management in the hotel industry. We believe that the key path to success is in even closer, i.e., daily personal orientation on customers, specifically on their satisfaction in both functional and emotional dimensions.

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Photo by Thomas Lambert on Unsplash

Photo by Thomas Lambert on Unsplash

Why is it important?

Managers in the knowledge-based economy need a brand new class of tools for decision making and planning, supporting competitiveness and sustainable growth of their organizations (Nonaka Takeuchi, 1995). Static character of traditional analyses and a rather formal way of internal representation of processed phenomena belong among the most liming factors of routinely used techniques, including, e.g., descriptive and inferential statistics, expert systems, empiric approaches or mathematical optimization. In this context, dynamic managerial simulators form an innovative generation of tools, capable to enhance the scope of conservative methodologies for performance planning and control. They are holistic and systemic, i.e. work with properly bounded and rigorously defined problems, allow straightforward inclusion of organizational and individual knowledge, are representationally transparent, user-friendly and architecturally scalable. We proposed that organizational learning in connection with focused marketing and wide spectral impacts of green management forms the strategically promising framework for management of middle-sized standalone hotels. To quantify the expected contribution, we compared our strategy with basic balanced scorecard‐based management and its extensions with variable staff size, revenue management, and green management. It establishes democratic centralized teams of employees with a high level of internal control, serving loyal customers with known requirements. Green management is a convenient complement of this win-win strategy, nicely extending the portfolio of services with attractive and so far omitted features. Moreover, hotel, managed in such a way is internally stable and robust, which support its planning and improvement processes.

Perspectives