Loyola University of Chicago Hotel Sector and COVID 19 Essay Research Question: What can the management do to make their customers feel safe inside their

Loyola University of Chicago Hotel Sector and COVID 19 Essay Research Question:

What can the management do to make their customers feel safe inside their establishments? How will the management improve safety measures to gain the trust of its customers so the demand will begin to return and the revenue will go back to prior levels before the crisis.

Hypothesis:

Implementing proper safety preventative measures and adding existing and emerging tech-enabled developments to ensure guests and employee safety will gain public trust and rebuild business.

The purpose of this professional paper is to develop a clear knowledge and provide an instructional guideline that can be used by hotel operators to maximize safety while still allowing the maximum number of guests to enter the building. This study will explore best in class preventative safety measures and will look at existing and emerging technologies that could provide improved safety to hotels.

Chapter 2 is more about the summary of what has been done (research wise) and focuses on steps taken and to be taken alongsuggestions for chapter 3 (a framework based on the review of literature).

So in summary,

Chapter 2 is Literature Review (which I already did.)

Chapter 3 is where a writer creates new knowledge using critical thinking. This chapter is a framework based on the literature review. I need help writing the Chapter 3 PART THREE
Introduction
Service encounters between a customer of one national culture and a service provider of
another can result in conflict because of differing cultural norms. International travel is
increasing, and hospitality firms must be equipped to successfully handle intercultural service
encounters if they want to be successful. This paper has explored cultural differences in tipping
behavior in an effort to enhance the current knowledge. Now that the existing literature has been
organized, an analysis of the information with regards to business applications can be made.
This final chapter will use the insights gained from the literature review to make
suggestions and recommendations to businesses that serve an international clientele. First,
tipping and its implications for business will be discussed, highlighting why assuring good tips is
important for a successful service organization. The negative consequences of inadequate tips by
international customers will further enhance this discussion. A general overview of the different
types of tipping systems will be introduced, including mandatory service charges and serviceinclusive pricing. Finally, recommendations for which of these systems should be used will be
made based on social norm theory and psychological research on tipping behavior.
Tipping and Its Implications for Business
Businesses operating in industries in which tipping exists can benefit from a better
understanding of tipping behavior, whether their customers are foreign or domestic. At first
glance, it may seem that tipping significantly affects only the service giver that actually receives
tips. However, tipping has implications for customers, managers, and business owners. A
business that chooses to allow its employees to accept tips has many strategic decisions to
consider. If an employer is able to reduce labor costs by allowing customers to supplement
employee income through tipping, then the employer must ensure that those tips are adequate.
Tipping raises several strategic questions for a business, which include the following: Is a
mandatory service charge better than a discretionary tipping system? Do customers prefer service
charges to discretionary tip systems? What does the literature suggest about ways to increase
tips? Before these questions can be answered, it is important to have an understanding of the
issues related to tipping and business strategy.
A thorough comprehension of the various motivators that influence tipping is essential to
understanding tipping behavior. The literature suggests that the strongest motivators for tipping
are ones that provide the giver with some type of psychological utility (Azar, 2010; Lynn, 2009),
for example, the good feeling ones gets from expressing gratitude (Azar, 2005). Customers’
reasons for participating in the tipping custom will also affect their tipping behavior, which in
turn affects the behavior of their server. Customer preferences should also have an impact on
business decisions. A business owner would be wise to research whether their customers prefer
discretionary tipping policies to fixed service charges before changing policies, for example.
Consequences of Poor Tipping by International Customers
Businesses that cater to a large proportion of international travelers have unique
considerations in regards to tipping. Present research offers evidence that servers’ perceptions of
tipping across cultures motivate them to give inferior service to those groups they deem as poor
tippers (Brewster, 2013; Kworknik, Lynn, & Ross, 2009). Furthermore, international tourists
who tip generously may receive superior service when compared to local customers who practice
different tipping norms.
Discrimination is not the only negative consequence associated with inadequate tips.
Employee turnover is a huge problem in the service industries, and finding and keeping good
employees can be difficult (Fernandez, 2004). Experienced, professional servers are often in
demand and will not likely stay in a job that offers poor tips. High employee turnover results in
added costs in the form of recruiting new workers and training them (Fernandez, 2004).
Businesses that have a reputation for attracting poor tippers will find it difficult to attract and
keep quality servers, resulting in poor guest service, and ultimately loss of business.
Alternatives to Discretionary Tipping Policies
Mandatory Service Charges
Many restaurants within the United States add a fixed service charge to the bill only
when there is a large (usually six or more) dining party (Azar, 2011). Ironically, European
countries in which tipping originated have changed from voluntary tipping regimes to mandatory
service charges, in which a fixed percentage of the bill is automatically added (Azar, 2011). Are
our cultures so different that the best practices in our respective food and beverage industries are
also different? Or could American firms benefit from instituting mandatory service charges?
With respect to American businesses that cater to a large number of international customers,
what is the best choice?
Empirical research shows that most customers in the United States do prefer tipping to
service charges (Azar, 2010). Tipping serves as an efficient type of buyer monitoring, meaning
that it gives the customer the responsibility of monitoring and rewarding service workers
(Kwortnik et al., 2009). Americans who enjoy tipping also enjoy the opportunity to show
gratitude towards those who have served them (Lynn, 2009; Azar, 2005), and gladly take on the
responsibility of buyer monitoring. Research suggests that people tip because of the positive
outcomes that result from tipping, and if tipping is replaced by service charges, these outcomes
are eliminated (Azar, 2010). Mandatory service charges eradicate the customers’ ability to
reward service, which may explain why they are not common in the United States.
Some American firms have sought to use mandatory service charges in an effort to
combat the negative effects associated with poor tips from international customers. Miami
Beach, Florida, has a large number of international tourists, and about 40% of the restaurants
there have replaced voluntary tipping with fixed service charges. Unfortunately, a study
comparing Miami restaurants’ tip policies and Zagat service rating found that fixed service
charges decreased the level of perceived service (Kwortnik et al., 2009). Several cruise lines
have also moved from tipping to fixed service charges since 2000 (Kwortnik et al., 2009).
However, a study revealed that service quality was rated significantly higher on those cruise
lines that chose to allow its staff to accept tips (Kwortnik et al., 2009). These examples suggest
that the tipping/service puzzle proposed by Azar (2009) may be partly explained because tipping
enhances the perceived relationship between tipping and service delivery (Kwortnik et al., 2009).
Service-Inclusive Pricing
Service-inclusive pricing is different from tipping and fixed service charges in that it does
not separate the cost of service from the customer’s total bill. Businesses that wish to eliminate
tipping have two choices: 1) raise the servers’ wage to offset the lack of tips or 2) raise prices to
the consumer to offset the costs of paying higher wages, as is done in service-inclusive pricing.
While not often seen within the United States, service-inclusive pricing is the norm in many
countries. A study of restaurant workers in New Zealand found that servers there prefer to make
a “decent wage” rather than accept tips (Casey, 2001). In Australia, not tipping is seen as a way
to identify oneself as Australian (Burgess, 2012). The collective power of wage laborers in
Australia has resulted in a high minimum wage, and customers there would rather pay higher
prices that sustain higher wages than tip voluntarily (Burgess, 2012).
Comparing Voluntary Tipping, Mandatory Service Charges, and Service-Inclusive Pricing
Using a multi-methods approach across studies and contexts, Kwortnik et al. (2009)
found that tipping as a form of buyer monitoring positively affects workers’ motivation to
improve service-enhancing behaviors, such as providing fast and friendly service. The
researchers gave a questionnaire to current and former servers to assess their service behavior
under hypothetical tip scenarios (traditional tipping, service charges, and service-inclusive).
They found that customer-oriented service motivation was much higher under the voluntary tip
condition than the service charge condition. Sales-oriented behaviors, such as recommending
wine and dessert, were high under both the voluntary tipping and service charge conditions, as
server tip is contingent upon bill size. The service-inclusive condition did not have a strong
positive effect on customer or sales-oriented behaviors. The results of this study indicate that
compensation policies directly affect service behavior and server motivation (Kwortnik et al.,
2009).
Different tipping systems have benefits and drawbacks, as evidenced in the table on the
following  
Part 3
The employee turnover rate in the hospitality industry is higher in comparison to any
other sector of the workforce (Choi & Dickson, 2010). An overview of the literature and
research on this topic identified similarities in management styles and their impact on employee
job satisfaction. The application of these practices translated to potential employee retention.
Commonalities among many of the studies supported a motivational working atmosphere, as
well as one that gave the employees an honest preview of the job prior to entering the role in
addition to a sense of achievement once in their positions (Wanous, 1977, Babin, B.J. & Boles, J.
1996, Isaac, R.G., et al 2001, Choi, 2006, Agrusa & Lema, 2010 & Lim 2010). These
management practices suggestively translated to higher job satisfaction and overall high intent to
remain with a company.
Understanding and applying these practices to the industry will help organizations
understand their employee’s requirements for job satisfaction, to build loyalty with them and
increase retention. A workforce comprised of three main generations makes, understanding their
individual needs and wants more crucial than ever. As millennials have begun to enter the
workforce, their distinct needs will thrive off the managerial practices researched and suggested
in the literature.
Overall limitations of the studies included too broad of a research and convenience
sampling. Studies were either conducted on employees of one hotel (Agrusa and Lema, 2010) or
multiples hotels (Choi, 2006) but didn’t narrow down to a specific demographic or department
within the hotel. There are possibilities that intention for turnover can vary among different
genders, departments or experiences that weren’t necessarily targeted in these studies.
In contrast, convenience sampling was method of choice as it the researcher selected the
hotel(s) to be studied. Wanous (1977) also utilized convenience sampling as he choose incoming
candidates to conduct realistic job previews. Future studies should be conducted on specific
departments within the industry, broken down by age and industrial experience. Varying
samples across several companies and regions while still categorizing by department and
demographic, would aid in the already existing research on the topic of employee turnover.
Managerial Styles Impacting Employee Satisfaction and Turnover
Wanous’s (1977) research reports realistic job previews enhance the retention of
employees. The provision of truthful and honest discussions, proved to be successful in hiring
and retaining the appropriate candidates within the company.
Babin and Boles (1996) reported a negative correlation with work involvement and job
satisfaction, job conflict and role ambiguity. They suggested that employee satisfaction increase
with the presence of generally supportive supervisors. Finally, they advised that decreased
performance occurs with increased role ambiguity, and as role conflict increases so does job
performance (Babin, B.J. & Boles, J. 1996). Overall, the outcome of their study reports that
employee perceptions can reduce stress and increase job satisfaction, when in relation to coworker involvement and support by management. Furthermore, job performance has the ability
to act as a mediator on the effects of role stress on satisfaction (Babin, B.J. & Boles, J. 1996).
The expectancy theory stated that all levels of employees should be given the
empowerment to express their ideas, thus building an improved foundation for future leaders of
the organization, while also giving employees the opportunity to be heard (Isaac, R.G., et al
2001). According to Issac, Zerbe and Pitt (2001), employee motivation was capable of being
measured through expectancy, instrumentality, and valence.
Choi’s (2006) study of satisfied hotel employees conveyed that lack of information relayed to
employees, developed into a variable that led to employee turnover. This reinforced Wanous’s
(1977) study of the effects of realistic job previews. It also stated employees who felt lack of
responsibility, assurance in their jobs or didn’t feel a sense of authority, equated to a high
probability of dissatisfaction with their overall job. These employees had a higher intention for
turnover, attributed to not being able to find their spot in the organization. This made them feel
undervalued while lacking a sense of autonomy (Choi, 2006).
Also suggested in this study, was employee need for seeking clear and stated goals. They
would also require the appropriate measures to achieve these goals, thus giving them a needreward match (Choi, 2006). Need-reward match shouldn’t be associated as strictly monetary, but
also as the reward of feeling accomplished and self-worth in the company.
Agrusa and Lema’s (2010) study on the perceived management styles of the Mississippi Gulf
Coast casino, reported the group of supervisor level employees perceived their management
styles in a more positive light, then the non-supervisory group. Despite the difference in
perception, both groups agreed on what an ideal management style should look like. Sharing the
same vision was a positive attribute of this study and translated into this hotel having a lower
than average, industry, employee, turnover rate (Agrusa & Lema, 2010).
The Servant leadership style of management encompasses the results of all previous
mentioned beliefs (Boone, L. W. & Makhani, S., 2013). It gives the need-reward result of
Wanous’s (1977) and also gives the employees their sense of achievement in their roles as Choi
(2006) suggested. It encourages the leadership support from Babin and Boles (1996) and it also
empowers the employees to voice their opinions and ideas, as stated by Greenleaf, and later
enforced by Issac, Zerbe and Pitt (2001). By listening to the employees and serving their needs
and ideas, while still ensuring the business runs smoothly and profitable, is aiding the employees
to maximize their potential performance (Lim, 2010).
Recommendation for Implementation
While each of the studies has unique attributes, overall the servant leadership theory,
seem to encompass the main suggestions of the research. The implications of this report to the
hospitality industry, has the potential to be significant. The longitudinal review of findings and
research suggestions provides a scope of emerging and practicing research. As Boone and
Makhani (2013) stated, “Leadership is not comprised of a single characteristic or trait. It is not,
as some may incorrectly assume, the hard-to-define attribute of ‘charisma.’ Rather, leadership
consists of a large set of well-recognized skills, behaviors, and attitudes”
The struggle with this adaptation into the industry is that it is time consuming. The
servant leadership model isn’t one that is easily adapted or taught. It isn’t a set of technical skills
that can easily be learned and then instantly applied. The characteristics of this model is one that
is comprised of a certain skill set as well as interpersonal skills such as patience, perseverance
and dedication (Isaac, R.G., et al 2001).
Reverting back to the return on investment of the human resource department, and how only
a reported 8% of US companies collect data and estimate their return on investment for training
(Choi & Dickson, 2010), this could be an opportunity to reevaluate the investment into this
department. The creation of a strategic plan for implementation would allow the human resource
department to quantify their return on investment, for proof of value as this could impact the
Schneider and Tucker (1989) direct cost categories of recruitment, selection and placement,
hiring and training and separation.
By training the managerial staff on the major qualities of the servant leadership theory,
including their importance to the employee and the value to the company, the employee turnover
rates have significant chances of decreasing. This would impact the costs associated with
replacing employees, which was reported at 30% of a non-management employee’s salary and
50% of a management employee’s annual salary (Choi & Dickson, 2010).!
Generational Application
“Dictating and leading are two very different methods. While dictating can be the easier
approach, where managers make the decisions and relay to the employees, leading the employees
to make the most beneficial decisions for the organization, can result in a higher level of respect
by the staff” (Lim, 2010). The servant leadership theory is one that strongly goes against
dictatorship and embraces a team effort in the workplace. Just as this theory includes the
positive outcomes of prior studies, it also includes the major factors of how millennials thrive in
the workplace.
The fastest growing sector of the workforce, born after 1982, has shown differences in what
motivates them when compared to other generations in the current workforce (Curtin et al,
2012). Already employees of the industry, and rapidly growing, the managerial practices that are
being executed with this generation will determine their longevity with the company. Since it
has already been found that they have tendencies to be a more demanding and seek instant
feedback from their management team, as well as managerial support and a feeling of a culture
within their chosen company (Broadbridge, Maxwell, Ogden 2010), the applied servant
leadership theory could be exactly what motivates and captures these employees of the present
and future.
Overall, it has been suggested that employees feel loyal to a company when they feel
empowered, tthey understand their role in their organization and they feel rewarded, not only
monetary but through praise and personal achievement. Although millennials are the newest
generation in the workforce and differ greatly from prior generations, it appears as though
motivation and achievement are still what drive them to be successful, achieve overall job
satisfaction and be retained within a company. As Heatley (2004) stated, “Successful managers
will be those who focus on the issues impacting motivation, loyalty and satisfaction that are
within their control.”
!
1
PART THREE OUTLINE
I. Introduction
A. This section will show that there has been a consistent attempt by the
Nevada Legislature to legalize a lottery within the state of Nevada. It also
will also show that the Nevada gaming industry has made a concerted and
diligent effort to defeat this passage at all attempts. Finally, it will also
show that a Nevada state lottery would not only be supported by a
majority of Nevadans but would also generate revenue that would be
distributed fairly among education, those entities in Nevada that promote
and facilitate tourism and the Nevada gaming indu…
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