Question

Discuss people/innovation perspective as one of the dimension of balanced scorecard in hotel context

Answer 1

Worker satisfaction is considered an essential feature in the hospitality sector as it is a key factor in ensuring quality service to customers. Employees have the first point of contact with customers and thus their behavior, knowledge and friendliness directly impacts customer experience at the hotels and the business.

Balanced scorecard implementation requires framing objectives for each of the prospects to measure the strategy of the company and its implementation through monitoring indicators. Under learning and growth, the variables evaluated are employees capabilities, information flow, learning and delegation of power to the employees. There are multiple studies carried out to identify the relationship between degree of development of transformation leadership to increased learning capacity; and high degree of empowerment to the learning capacity. Even though in hotel industry is predominantly service oriented, studies show that learning and growth are ranked below to the financial and customer perspectives. Balance scorecards (BSC) helps managers to evaluate and monitor the performance and progress of the hotels. Proper framework for evaluation through BSC will aid hotels in having empowered hotel staff leading to innovative process and delivery superior quality service. Managers must encourage employees to engage in continuous learning to upskill themselves and innovate processes for better service delivery. The future growth potential of hotel industry is primarily linked to employees ability to attract, manage and retain customers, which has to be driven by realizing full intellectual potential in an increasingly competitive environment.