UNVEILING THE JOURNEY OF HOTEL INDUSTRIES IN THE SERVICE

DELIVERY AND QUALITY OPERATIONAL MANAGEMENT

____________________

A Thesis
Presented to the
Faculty of the Graduate School
Bataan Peninsula State University
City of Balanga, Bataan

____________________

In Partial Fulfillment of the Requirements for the Degree

Master of Arts in Education major in
Business Administration

__________________

by:

BENIDICT BAL D. PADILLA

April 2019
 CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Competition in all aspect of business industry is rampant in all industries and has

intensified significantly in recent years, and this trend towards hyper-competition is

expected to continue. At the same time, globalization provides new opportunities for

companies in the form of new, previously untapped markets, for their products as well as

new sources for raw materials and components at significantly lower costs. As a result of

this globalization of business, managers must extend their vision beyond their own national

borders when developing operations strategies. Furthermore, Hotels have to adopt effective

and strategic performance measurement tools in order to obtain the stated benefits. For the

full benefit of measurement to be exploited, it is important for hotels to maximize the

appropriateness and effectiveness of measurement activities at all levels of their operations

Hotels have always been evaluated by performance measurement models that

emphasize financial aspects of performance (Brander-Brown and Harris, 2008; neely,

2009). Such measures of performance have been criticized for lacking of neutrality;

encouraging short-termism; and lacking balance (Kaplan and Norton, 2012). However,

when evaluating an organization‘s performance, hotels have recognized that the industry

should consider not only financial figures, but also non-financial aspects. Studies by Neely

(2008) and Daly (2006) suggested that a comprehensive performance evaluation system

has greater predictive validity than one that is purely financially oriented. Despite the
development of performance measurement systems in the hospitality industry and in

various researchers. Furthermore, there has been an increasing recognition within the hotel

industry of the importance and value of people; employees as well as guests in the service

delivery process, which has led to suggestions that hotels need to develop better

performance information relating to such key areas as employee morale and employee

satisfaction (Fwaya, 2006; Fitzgerald et al., 2001). In addition, Harris and Mongiello

(2011) argue that even though a hotel is thought of in a service context, in reality it

encompasses three different types of industrial activity (rooms, beverage, and food) that

exhibit different business orientations. These three orientations call for a diverse set of

performance indicators. Chan (2004) reported on the use of non-financial measures in the

balanced scorecard as a performance management system to support reporting on various

management activities

In the Philippines one of the reasons why the hotel industry shot down because of

the poor performance and strategy of the hotel personnel and owner (Santiago , 2001;

Harris and Mongiello, 2001) have pointed to the reluctance of the hospitality industry to

use balanced measures and rely solely on financial measures.Waal (2007) contends that

overall lack of management skills and expertise often makes organizations in developing

countries to concentrate more on introducing and copying performance measurement

systems from the Western world, which are not always the best suited to local

circumstances. The researcher firmly believe that there is a quite declining performance of

hotel industry in the Philippines.

With this the researcher would like to finish this study using qualitative types of

research with the use of semi-structure interview and questionnaire to know the level of
services delivery and quality service in operational management of the hotels in Bataan

and to focus on hotel industry and looks at the link between strategies and performance the

researcher will also intent to visits the selected hotel in Bataan to have an in depth

observation and interview to the management team about their strategy applied in services

of their company

Manangan (2008) in his study on Manila Hotel Industry findings revealed that in

performance management are advocating an emphasis on both financial and non-financial

dimensions such as competitiveness, service quality, customer satisfaction, organizational

flexibility, resource utilization, and technology. It is important for performance measures

to direct attention to such non-financial factors as service quality and customer satisfaction.

It is also widely considered essential that an organization‘s performance measures are

linked to its strategic intent, its competitive environment, revenue management, market

orientation and service delivery process within hotel

Thus, the researcher would like to conduct this study to determine the operation

strategies adopted by hotels in Bataan, to establish the relationship between operations

strategy and performance in the hotel industry in Bataan, and to find ways and means of

successfully integrating diverse and unique operation strategies. This will improve the

hotel industry and ensure improved service provision that eventually lead to effectiveness

and competitive advantages which work for the advantages of their client

Statement of the Main and Sub-Problem

This study aims to know the unveiling the journey of hotel industries in the service

delivery and quality operational management in hotels in Bataan.

It seeks to answer the following sub-problem.

 1. What is the classification and profile of the different hotels in Bataan?

2. What are the operational strategy pattern use of hotels in Bataan to improve service

and business performance?

3. Which of this strategies are mostly applied in hotel industries in Bataan?

4. What are the operational issues and challenges experience of hotels in Bataan?

5. What actions can be used to mitigate the operational issues and challenges of hotels

in Bataan

6. What is the effect that operational issues and challenges create on organizational

performance?

Significance of the Study

The researcher has high hope that the result of this study will help the following

stakeholders.

Hotel Industry-- This will improve the hotel industry and ensure improved service

provision that eventually lead to effectiveness and competitive advantage which works for

the advantage of their clients. It will also help by means of the hotel industry to

acknowledge the importance of the various strategies in their operations. The customers to

know of the various strategies applied by the hotel industry and how the same would help

to increase their value. Also it will be further beneficial to existing tourist hotels to develop

a coherent and consistent approach to ensure smooth hotel operation as a strategic matter

of concern in strategy

formulation for tourist hotels.

Department of Tourism—the result of this study may be served as a basis to have one

operational strategy for the betterment of the hotel in Bataan, by doing such it will also
increase number of employment that will lead for economic growth for the province of

Bataan

Managers of Hotel/ Employees-- The study will help the managers in the hotel industry

realize that with the changes in globalization and technology they need to review their

strategies so as to keep up with the increasingly competitive market.

Policy Making Perspective-- This will be beneficial for the government to realign and

recalibrate the existing policy frameworks in order to ensure the sustainable growth

trajectory for tourism industry through pragmatic, practical and implementable policy

formulation by government in short and long term.

Future Researchers-- As its result, the future researchers will be able to carry out

improved researches comprehensively, or it may be served as a reference for the person

who conducted the same study.

Scope and Delimitation of the Study

The focused of this study are the different hotels and resorts in Bataan, the researcher will

request a data from Department of Tourism to check the profile of resorts and hotels and

to find out what hotels or resorts are the most common visits by the tourist in the province.

Moreover, the researcher will use Semi-structured interview to collect information for the

research study because this research was conducted qualitatively. So, the issues and

challenges elaborated in this research study have not been numerically justified the primary

focus of this study is to know the operational management strategies of hotels and resort

and common problems and issues they encountered.

This limitation creates an avenue for future researchers to focus on this research

quantitatively. Data were collected from respondents. It is presumed that the respondents
would provide correct information for the research study. As its result, the researcher was

compelled to use the collected data at face value. So, the respondents’ bias might create an

impact on the overall comprehensiveness of the research study to some extent. This

research study has been carried in Bataan. So, this could create a geographical limitation

because the conditions in Bataan could not be as same as conditions in other place. This

can be a matter of concern in the case of adopting the findings of this research study for

the same research in another place. The researchers’ interpretations are based on the

information provided by the interviewees and public documents. So, the findings would be

difficult to generalize across all industries and are best suited for hotels of similar

characteristics.
 Notes in Chapter I

Abdullah, H., & Fuong, C. C. (2010, March). The Implementation of ISO 14001

Environmental Management System in Manufacturing Firms in Malaysia. Asian Social

Science, 6(3), 100-107. Retrieved June 22, 2017, from

http://www.ccsenet.org/journal/index.php/ass/article/viewFile/4048/4495 Ahmad, S. S.,

Saha, P. K., Abbasi, A., & Khan, M. (2009). Environmental Management Systems and

Sustainability: Integrating Sustainability in EnvironmentalManagement Systems.

Karlskrona: Blekinge Institute of Technology. Retrieved June 22, 2017, from

http://www.divaportal.se/smash/get/diva2:830529/FULLTEXT01.pdf

R. E., & Firestone, W. A. (1982). Multisite Qualitative Policy Research in Education: A

Study of Recent Federal Experience. Final Report. National Institute of Education, US

Department of Education. Concord: US Department of Education. Retrieved June 30, 2017,

from http://files.eric.ed.gov/fulltext/ED228155.pdf
 CHAPTER II

THEORETICAL FRAMEWORK

This chapter presents the review of related literature and study, its conceptual and

theoretical framework which perceived connected to the existence of the problem.

Relevant Theory

There is no theoretical work nor empirical findings suggesting that the existing body of

knowledge, largely obtained in the institutional context of western and asian countries, is

equally applicable in other eastern countries (Boyacigiller and Adler 1991). Firm strategies,

organisational structures, and firm mechanisms successfully pursued and implemented in

a particular institutional context may not achieve the same outcomes in another institutional

context. The research in this thesis was specifically designed to study the strategic

management practices in the hotel industry of Bataan. The framework developed for this

study builds on the study of Chistodoulou (1984) and Nimmanphatcharin (2002) and is

illustrated in Figure 4.1. Six main features of this framework deserve attention. First, this

framework aims to provide a big picture of strategic management practices and hence

focuses on the major issues rather than specific details. The research is exploratory in that

no previous empirical study has examined strategic management practices in the hotel

industry of Bataan. It covers objective setting, strategy formulation, planning techniques

and tools, planning system, strategies, and strategy implementation and evaluation at the

corporate level. Second, this framework focuses on the strategic management practices at
the corporate level as each company is viewed as an entity. Nevertheless, this framework

can be applied to strategic management practices at business and functional levels as well.

Third, the key corporate strategies included in this model are stable growth, growth,

harvesting, and defensive strategies. Fourth, amongst the environments impacting firms in

this model are the general environment (economic conditions, technology force, political-

legal aspect, and sociocultural factor), the task environment (suppliers, buyers, substitutes,

new comers, and competitors), and the internal environment (size, structure, culture,

ownership, key stakeholders, management style, and planning system). Fifth, this

framework identifies the key analysis techniques and tools, including PEST analysis,

industry analysis, SWOT analysis, benchmarking analysis, product life cycle analysis, and

matrix analysis. Sixth, the strategic management practice in this model is viewed as

probably containing a formalised strategic planning process as a major operating process

within the organisation.

 Figure 1:1 Theoretical Framework
Related Literature and study

Strategy within the Organization

Strategy in a business organization is essentially about how the organization seeks to

prosper within its environment over the long-term. The decisions and actions taken within

its operations have a direct impact on the basis on which an organization is able to do this.

The way in which an organization secures, deploys and utilizes its resources will determine

the extent to which it can successfully pursue specific performance objectives.

Slack et al. (2004: p.67) argue that an operations strategy concerns the pattern of

strategic decisions and actions which set the role, objectives and activities of operations‘.

Their use of the term ‗pattern‘ implies a consistency in strategic decisions and actions over

time. This concept is consistent with management guru Henry Mintzberg‘s view of strategy

as being a ‗pattern in a stream of actions‘ (Mintzberg and Waters, 1985). Mintzberg sees

strategy as being realized through a combination of deliberate and emergent actions.

An organization can have an intended strategy, perhaps as a set of strategic plans.

However, only some of this intended strategy may be realized through deliberate strategy.

Some of the intentions may be unrealized. Strategies which take no regard of operational

feasibility are likely to become unrealized, remaining merely as a set of intentions.

Strategy may also emerge from actions taken within the organization, which over

time form a consistent pattern. Actions of this kind will, almost inevitably, arise from

within the operations of the organization. So, whether planned or otherwise, the

organization‘s operations are bound to have a major impact on the formation of

organizational strategy.
 It is often believed that strategy is an issue that is somehow separate from day-today

organizational activities. Taken to extremes this can result in strategy being regarded as

some kind of cerebral activity performed by superior beings who need to be removed from

day-to-day operational pressures. Mintzberg is amongst those who point to the dangers of

managers becoming detached from the basics of the enterprise.

In the previous studies researchers have tried to link operations strategy with the

overall performance in an organization. In this study it is no different; however the study

will narrow down to the service sector. In the past studies much has been done in the

manufacturing sector.

An organization‘s operations function is concerned with getting things

done; producing goods and/or services for customers. Operations management is important

because it is responsible for managing most of the organization‘s resources. However,

many people think that operations management is only concerned with short-term, day-to-

day, tactical issues.

Contents for Operations Strategy

Unfortunately, the application of these concepts into actual business strategies may have

been insufficient (Hayes and Pisano, 1994). It is still difficult today to find those companies

which use their operations function as a competitive weapon. One reason is the difficulty

to "operationalize" the content of operations strategy (Hum and Leow, 1996). Fundamental

changes must be made in the working of the management team before setting corporate

strategy according to the key sources of operating excellence. Strategic analysis and

performance "scorecards" may often be major deficiencies, leading to lack of commitment

to operating priorities (Kaplan and Norton, 1996). Moreover, for those who have attempted
to apply a rigorous operations strategy, the prescribed models may not be completely

implemented as firms may come to focus only on just a few winning strategies (Ahmed et

al., 1996). The difficulties with the content of operations strategy may be caused by the

fact that it is frozen within a "market-based" instead of a "resource-based" view of strategy.

Wernerfelt B.(1984)

Core Operational Strategies

Gustafson,(2013) states that Operational strategies are methods companies use to reach

their objectives. By developing operational strategies, a company can examine and

implement effective and efficient systems for using resources, personnel and the

workprocess. Service-oriented companies also use basic operational strategies to link long-

and short-term corporate decisions and create an effective management team. There are 5

core operational strategies namely; corporate strategy, Customer-driven Strategies,

Developing Core Competencies, Competitive Priorities and Product and Service

Development. Corporate strategies involve seeing a company as a system of interconnected

parts. The additional core strategies that a company uses should support the corporate

strategy and use cross-functional interactions.

Operations Strategy in Services

The process of operations strategy is termed according to how strategic decisions are made

in an organizational setting (Ho,1996). Definitions of strategy always mention

enhancement of the competitive position in the marketplace through resources building or

positioning (Swink and Way, 1995). Skinner (1969) identified a set of decision areas

through which manufacturing objectives are achieved. Later research proves a generally

high agreement; even though many authors have developed different sets of manufacturing
decision areas (Mills et al., 1998). However, traditionally OM literature has addressed

service operations strategy to the development of the service delivery system in order to

match the customer expectations with customer perceptions (Armistead, 1992). Models

and frameworks have been suggested to explain this process through different services

classifications and schemes (Johnston, 1994; Nayyar, 1992; Normann, 1984; Sampson,

1996; Schmenner, 1986). However, only a few studies analyse the differentiation and

interaction between the different dimensions conguring the service operations strategy. In

this context, Arias-Aranda (2002) proposed a model based on the three basic operations

strategies identified in service literature according to the firm‘s focus of activities. These

basic operations strategies pursued by service industries are process, service or customer-

oriented operations strategies. Arias-Aranda (2002) identified nine structural and

infrastructural decisions that lead to a determined service operations strategy. These are

type of operations layout, PUSH/PULL orientation of the service delivery process, degree

of process standardization, number of different services offered, use of information

technologies (cost reduction vs service improvement), back and front office activities

relationship, human resources specialiation, degree of customer participation, and new

service design and development. Strategy Performance measures reflect how well the

different competitive priorities fit in the implemented operations strategy (Suarez et al.,

1996). For service industries, effective performance measures related to operations

strategies require a shift from measures that focus on manufacturing efficiency to those

capturing the critical success factors related to customer initiated demands (Abernethy and

Lillis, 1995).

Operations Strategy in Hotel Industry

One of the most important factors affecting the success of hotel managements in today‘s

global competitive environment is to be able to create difference. Zerenler et al. (2007)

asserts that in order to stay competitive, the organizations should redefine their basic

strategies, rediscover the sector they are in and have the ability to create difference in their

products and services. And Aksu (2000) states that in order to be able to sell products or

goods in a market full of competitors, one should have the capacity to meet demands and

expectations of the customers. Today, it became an important obligation to realize the

differentiation occurred in customers‘ demand before the competitors. Accordingly,

organizations which can offer

the products and services having new and different characteristics in the fastest way are

able to survive. In terms of hotel establishments, although predicting how the future

developments shall progress and contribute to the establishment is very important, this case

requires a hard effort due to sector‘s structural characteristic. In such an environment, the

working of hotel establishments with increasing performance and customer satisfaction

level depends on their strategical thinking and to be able to apply them (Seymen, 2001)

Conceptual Framework

Consumer Segments
Performance Level for
Emerging markets hotel industry
Business Model

Quality Service Delivery

 Paradigm of the Study

The conceptual framework above showed the factors that affects the performance level of
hotel in Bataan.

Assumption of the Study

 To know the classification and profile of the different hotels in Bataan?
 To help provincial government in developing the operational strategy pattern use
of hotels in Bataan to improve service and business performance?
 To address operational issues and challenges experience of hotels in Bataan?

Definition of Term.
The following are defined operationally
Hotel-- an establishment providing accommodations, meals, and other services for
travelers and tourists
Operational—relating to the routine functioning and activities of a business or
Strategy-- a plan of action or policy designed to achieve a major or overall aim.
Quality-- he standard of something as measured against other things of a similar kind;
the degree of excellence of something.
Management-- the responsibility for and control of a company or similar organization
Notes in Chapter II
Achyuthan, K. 2004, Strategic Management in Indian Manufacturing Companies, Unpublished
doctoral dissertation, Swinburne University of Technology, Melbourne.

Ansoff, H.I., Avner, J., Brandenburg, R.C., Portner, F.E., and Radosevich, R. 1970, Does Planning
Pay? The Effect of Planning on Success of Acquisitions in American Firms, Long Range Planning,
vol.3, no.2. pp.2-7.

CHAPTER III

RESEARCH METHODOLOGY

Methodology is a body of knowledge that enables researchers to explain and

analyze methods, indicating their limitations and sources, identifying their presuppositions

and consequences, and related their potentialities to research advances {(Miller, 1983)

cited in (Linpanitgul, 2009)}.This chapter explains into details the method used in

gathering data and information required for the study in obtaining data for this project

which is centered on selected hotels in Bataan

Research Designed Used

The types of qualitative research design that is utilized by the researchers is

phenomenological study which aims to examine human experiences through descriptions

provided by the respondents. the goal is to describe the meaning that experiences hold for

each respondent. On the other hand, it tends to become immersed in the situations in which
the research is done, and does not generalize beyond the situation. A qualitative approach

was chosen as the research method for this study. The process of research involves

empirical work being carried out with the collection of data which can concur, refute or

contest theories which in turn allows for understanding and clarification for different

observations. Qualitative research involves a process known as induction, whereby data is

collected relating to a specific area of study and from this data the researcher constructs

different concepts and theories. A qualitative approach was considered more relevant to

undertake this research as it allowed greater capacity to gain more depth and meaning based

on an individual’s experiences of using internet along with their beliefs and feelings

opposed to a quantitative approach which is more structured, broader in scale and more

numerically based.

Population and Sampling Procedure

The researcher used a purposive sampling in choosing respondents of the study.

According to Cresswell (2005:596), purposive sampling is a qualitative sampling

procedure in which researchers intentionally select individuals and sites to learn and

understand the central phenomenon. White (2003:65) mentions that purposive sampling is

based entirely on the judgement of the researcher, in that a sample is composed of elements

which contain the most characteristics or representative of attributes of the population.

Burke and Larry (2004:215) assert that in purposive sampling the researcher specifies the

characteristics of a population of interest and then tries to locate individuals who have those

characteristics. The researcher sets the criteria such as the hotel should be registered in

Bataan, function for 5 years can offer hospitality service and considered as first class hotel
has its own operational management and can accommodate more than 100 tourist every

day.

Instrument of the Study

The Instrument Used of this qualitative inquiry was a semi-structured interview using

open-ended questioning. The data gathering was done in two sections; the first was open-

ended questions that the participants completed at their own pace and had time for

reflection. These were completed before the face-to-face interview. On the other hand,

semi-structured interviews are conducive to candid and spontaneous responses. These

characteristics allow for the exploration of reflections, perceptions and feelings. The semi-

structured interview seems best suited for garnering descriptive insights. The questions

asked participants to describe are as follows

1. What is the classification and profile of the different hotels in Bataan?

2. What are the operational strategy pattern use of hotels in Bataan to improve service

and business performance?

3. Which of this strategies are mostly applied in hotel industries in Bataan?

4. What are the operational issues and challenges experience of hotels in Bataan?

5. What actions can be used to mitigate the operational issues and challenges of hotels

in Bataan

6. What is the effect that operational issues and challenges create on organizational

performance?

Validation of Interview Guide.

 The researcher will ask the suggestion of the expert in the field for modification of

semi-structured interview the following criteria are also measured.

Credibility

According to De Vos, Strydom, Fouche and Delport (2005:346), the credibility

criteria involves establishing that the results of qualitative research are credible or

believable from the perspective of the participant in the research. Since from this

perspective, the purpose of qualitative research is to describe or understand the phenomena

of interest from the participant's eyes, the participants are the only ones who can

legitimately judge the credibility of the results. To have ensured that credibility of the study

was maintained, clear parameters for the study were set. Only participants who can provide

in-depth data regarding the phenomenon at hand were included in the study. The researcher

also presented the planned proposal at the Faculty Research Committee of the institution.

Transferability

Transferability refers to the degree to which the results of qualitative research can be

generalized or transferred to other contexts or settings. From a qualitative perspective

transferability is primarily the responsibility of the one doing the generalizing. The

qualitative researcher can enhance transferability by doing a thorough job of describing the

research context and the assumptions that were central to the research. The context of this

study is mentioned in the literature study, as well as in the reporting and findings sections.

The person who wishes to "transfer" the results to a different context is then responsible

for making the judgment of how sensible the transfer is (De Vos et al. 2005:346).

Dependability
 The traditional quantitative view of reliability is based on the assumption of

replicability or repeatability. Cohen, Manion and Morrison (2007:434) state that essentially

it is concerned with whether the same results would be obtained if the same thing could be

observe twice. But the argument is that the same thing can actually not be measured twice,

because by definition if we are measuring twice, we are measuring two different things.

The idea of dependability, on the other hand, emphasises the need for the researcher to

account for the ever-changing context within which research occurs. The research is

responsible for describing the changes that occur in the setting and how these changes

affected the way the research approached the study. In this study, the experiences of

participants were meticulously analysed and accurately described or interpreted.

Conformability

Qualitative research tends to assume that each researcher brings a unique

perspective to the study. Cohen et.al (2007:435) state that confirmability refers to the

degree to which the results could be confirmed or corroborated by others. There are a

number of strategies for enhancing confirmability. The researcher can document the

procedures for checking and rechecking the data throughout the study. Another researcher

can take a "devil's advocate" role with respect to the results, and this process can be

documented. The researcher can actively search for and describe and negative instances

that contradict prior observations. And, after the study, one can conduct a data audit that

examines the data collection and analysis procedures and makes judgements about the

potential for bias or distortion. An audit trail was followed for this study where participants

were given the opportunity to comment on the data they provided.

Data Gathering Procedure

 The researcher will send first letter address to the dean of the graduate school of

Bataan Peninsula State University-Main campus asking for the approval of the study

afterwards, the researcher will also send letter to the Bataan tourism office attached the

target hotel as respondents for the consent about the conduct of the study after securing

the permit of the pilot study the researcher will go to the hotel to talk with the manager

about his/her availability to conduct pilot interview also the researcher will ask for the

schedule of direct observation about their process and operational procedure.

Data Analysis

After the interviews were conducted, they were transcribed. However, the

transcripts were not translated word by word. The answers were classified and the

information was presented in the form of a table so as to make it easy to understand.

 Notes in Chapter III

Harrell, M. C., & Bradley, M. A. (2009). Data Collection Methods ; Semi-Structured

Interviews and Focus Groups. National Defense Research Institute. Santa Monica: RAND

Corporation. Retrieved June 30, 2017, from

http://www.rand.org/content/dam/rand/pubs/technical_reports/2009/RAND_T R718.pdf

Herriott,