This summary document provides all crucial infomration for the exam of Tourism Business. All weeks are provided with detailed summaries from books, lectures and seminars.
WEEK 1
I. General
→ Tourism business focuses on the internal aspects of a touristic or recreational organization
→ Organization: when 2 or more people work together to achieve a certain goal or goals
→ Organizations are apart of the society and environment because society has a demand for the
products and services
Organizations Any group of people cooperating to achieve
a common purpose
Companies Organisations that produce goods and
services
Enterprises A company that aims to make profit
→ Management: the leading and steering of an organization --» task: to direct the entire company
→ Strategic management (its like a business plan): process of careful consideration of appropriate
responses to the environment AND the maintenance of standards and development of skills required
for the inclusion of possible changes to strategy (basically it is the process that involves management
determining the strategy
- Strategy is a plan that the organization follows to achieve their goals
→ There are two different approaches to strategic management
Classical school Strategic planning
- Main issue: positioning the - Strategic thinking
organization in the relation - Putting its vision into practice
to the environment --» by analyzing
the organization strong and weak points
→ The process of strategic management consists of 3 phases:
1. Situational analysis --» focuses on determining the current profile of the organization while
taking into consideration the external environment (definition of the current vision, aims and
strategy, internal and external analysis)
2. Strategy formation --» focuses on determining the view of the future, developing strategies and
the evaluation and choice of strategy
, 3. Planning and implementation --» focuses on the implementation of the strategy
→ 7-S model --» which consists of 7 management factors that are closely connected to each other
4. Structure --» focuses on the elements within the organization that relate to each other
5. Systems --» information and communication systems
6. Managerial style --» characteristic behavioural patterns of the top managers
7. Staff --» a particular way of how the organization focuses on its human resources
8. Key skills --» a way of how the organization can distinguish itself from the rest
9. Strategies --» plan to achieve goals
10. Shared values = vision
→ Organizational principles
- Quality first , customer first , reliability and honesty , employees are reliable and honest ,
employees are the organization's strength , personal self-awareness , contributing to the society
→ Organizational goals
- Balance of interest , profitability , quality , image , code of conduct , effectively and efficiently
II. Structure and Function
→ Motivating people --» motivation of employees in an organization plays an important role
(motivation is a person's internal willingness to performs a certain action)
→ Employee motivational tools:
- By means of financial incentives --» rewards for performance but it only has a short term effect
▪ Bonus, profit sharing, shares-option arrangement
- By means of task design (work intrinsic motivation)
▪ Task enrichment --» higher level elements are added to the duties
▪ Task enlargement
▪ Task rotation --» employees rotate the tasks they perform
→ By setting high objectives ("theory of objectives")
- The objectives should be high but realistic, specific, accepted by the employees and the
employees should get feedback on the process
To formulate the objectives the SMART principle is used
S M A R T
Acceptable
Specific Time-fixed
Measurable
Realistic
,Advantages Disadvantages
-Improved clarity -Hard to measure objectively
-Reinforces communication btw supervisor and -Can be counterproductive
employee
-Enables more explicit direction of business process
→ Emotional intelligence
- Self awareness, emotional control, self-motivation, empathy, social skills
→ Groups and Teams --» collaboration towards a common purpose SO when 2 or more people
Collaborate to achieve a goal
Formal groups Informal groups
- A group within the structure - Outside of the structure of the organization
of the organization - Ex.: People with common interests
- Ex.: management team
→ Types of groups
- Horizontal groups --» group members from the same hierarchical level in an organization
- Vertical groups --» group members originate from different hierarchical levels
- Mixed groups --» horizontal + vertical groups mixed
- Virtual team --» employees from around the world
- Self-governing teams --» a group of employees who are responsible for their own activities to a
certain degree [ex.: coal miners in the 1950s--» carried joint responsibility for the entire process
of coal mining]
→ Stages of group development
- Forming --» the group member get to know and understand each other
- Storming --» conflict situations could arise as a result of the members showing their true colors
- Norming --» a unity starts forming
- Performing --» their main goal becomes to deliver a good performance
- Adjourning --» the purpose has been achieved and they are feeling emotional looking back on it
→ Management levels
- Top-level management --» policy-formulating tasks
- Middle management --» policy formulating and executive tasks
- First line management --» executive tasks
→ Managerial activities --» supervising, planning, decision making, organizing, leading, motivating,
communicating, HRM
, Functional manager General manager
- Has a single main activity - Is responsible for all activities
within the organization within a certain part of the organization
- Ex.: Marketing manager - Ex.: Business unit manager
Lecture 1.2
→ An organizational structure
→ Task division and coordination
o Functionalization
o Authority, responsibility
o Line staff
→ Flatter organization structure
I. Organizational structure
→ It defines tasks, authorities, and responsibilities and sets out the pattern of relationships between
positions --» basically dividing tasks between people SO who is responsible for what
II. Task division and coordination
→ There are 4 factors that influence the division of tasks
1. Cost factors --» organizations want to work as efficiently as possible because that would gain
more money --» so low costs and have much profit --» this is called cost benefit ratio
2. Managerial factors --» how the tasks are being divided so ppl have a certain way of vision
towards ppl and work
3. Societal motives --» concern how you deal with your people in the organizations --» ex.: how
safe are the machines, how often do they need breaks, health, sustainability
4. Individual factors --» the employees work needs to stay attractive and keep motivation in the
employees so using qualities to achieve organizational goals
→ EXAMPLE: McDonalds case
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