To sustain an organization in today's maturing competitive hospitality industry
worldwide, it is vital that all managers indulge in making important internalized
decisions on a day-to-day basis to face the constantly changing external
environment associated with 'risk' & 'uncertainty' for functioning consistently in
providing their clients with memorable hospitality experiences (Mason n.d.). The term
'decision making' can simply be outlined as one of the 'central processes' for
different establishments and the basic 'managerial' chore at all stages that is
recognized in 'identifying' various problems with the 'evaluation' of alternatives &
hence, 'implementing' the best choice, whereby, it includes the 'intelligence', 'design'
and 'choice' activities at all 'operational', 'tactical' and 'strategic' planning levels
respectively (Li 2008 and Riskope 2014). Hence, this essay will briefly touch-base on
intuitive and rationale decision-making terminologies in regards to the hospitality
industry with their strengths, possible limitations & therefore, providing vital
strategies to managers in tackling these problems for systematically staying on the
top both efficiently and effectively throughout the passing time.
Intuitions can simply be identified as effectively institutionalized 'judgements' arisen
from 'speedy', 'non-conscious' & 'holistic' affiliations, wherein, leaders & managers
tend to make decisions by using their 'gut-feelings' through relying upon their 'past
experiences' and their own 'personal values' when dealing with badly 'structured'
situations, 'equivocal' information & 'rapid reactions' in an extremely fast-paced
environment (Dane & Pratt 2007, Khatri & Ng 2000 and Time-Management-Guide
2005). For example, dealing with various customer complaints generally on a daily
basis within the hospitality industry might sometimes require staff-members going
beyond their standard operating system manuals for using their intuitions in certain
situations to maintain an overall positivistic customer journey experience. Moreover,
the Time-Management-Guide (2005) further elaborates that the entire intuitive
information by nature also tends to be pre-dominated by the 'sub-conscious' psyche
& processed more 'parallelly' than sequential as a whole with individual remaining
more connected with their own emotional patterns as an end result.
From a hotelier's perspective, the benefits of intuitive decision-making process
performed by an organization's members include in defining an establishment's
genuine 'mission' & 'purpose' for its existence in the business environment by having
an openness to 'creative' ideas whilst simultaneously allowing individuals in sensing
things when matters go completely out of hand and hearing sounds appertaining to
caution for resolving pending problems and making judgements appropriately
(Girdler n.d.). For instance, while the Ritz-Carlton employee's empowerment
procedures globally might be a rational decision approach to authorize employees' in
making their own decisions within certain boundaries during turbulent conditions for
preserving trust and exceeding customer satisfactions to maintain the overall brand
image, it is completely upon the staff members' knowledge, skills and abilities upon
how they really end up perceiving & utilizing the entire system involving their intuitive
methods in providing a comfortable guest experience for achieving organizational
success.
Since research suggests that intuition decision-making is relatively positive under
'unstable' environmental conditions integrating 'government regulations', 'technology'
and 'competition' for a successive 'financial' & 'non-financial' operation, however,
there are several limitations associated with this method deemed unfit comprising of
, 'flawless information', short-termed 'emotional prejudices', availability of 'insufficient
alternatives', lacking 'openness' & finally, applying one's intuition inappropriately in
other unknown areas due to 'overconfidence' leading to self-destruction (Khatri & Ng
2000 and Decision Innovation n.d.). Furthermore, some elementary biases
associated with intuition includes ‘representative’, ‘anchoring’ and ‘availability’
heuristics being greatly affected by an organization’s ‘values’ and ‘attitudes’
respectively (The Happy Manager n.d.). For instance, the HR department might even
fail in recruiting the best qualified candidates into their organizational culture by
simply having an emotional prejudicial mind-set and over-ruling all the facts entirely.
Hence, a few significant strategic measures related to intuition integrate to create a
better 'learning environment' for employees in recognizing & interpreting 'emotions'
efficaciously and increased 'experiences' through instant 'repetitions' within different
surroundings and having effective 'communication' measures by listening better,
consulting everybody & examining all beliefs efficiently (Decision Innovation n.d.).
The rational decision making model, on the other hand, offers a more 'structured' &
'sequenced' access with prior systematic procedures, whereas, the approach
involves in devising 'goals' & identifying 'decision criteria' and 'alternatives' for
executing the 'analysis' and arriving at a concluding decision assuming that
individuals' have the complete 'information' with all 'collected' & 'analysed'
measurable standards alongside the 'resources', 'time' and 'cognitive' power in
assessing all existing data respectively (The Happy Manager n.d. & Boundless
Management n.d.). Inside the hotel environment to plan ahead for the new financial
year, this would include major departmental heads incorporating the 'marketing',
'front office', 'finance', 'human resources' and 'Food & Beverage' managers coming
together with previous analysed existing yearly data recordings in 'forecasting' future
organizational success.
The characteristics associated with rational decision-making integrates following a
systematic 'pattern' to maximize 'utility' in analysing & satisfying the 'legitimate
consistency' & 'deduction completeness' conditions whilst considering the 'risk' and
'uncertainty' for future consequences (Decision Innovation n.d.). Moreover, the
Decision Innovation (n.d.) further adds that their strengths in particular help address
'complex' problems through breaking them down to fulfil all 'necessities' and
'demands' with various decision-making 'techniques' in improving 'guidance' and
'profitability' by the managers for overall organizational success by relying upon the
management information systems interpreting existing factual data. For example, to
measure business financial success in general, it is important that the financial
department keeps an effective measure on the cash-flow and profit & loss
statements alongside the balance sheets keeping in mind about certain constraints
for attaining organizational goals.
Nevertheless, several limitations can be linked with the rational decision-making
model too, which can also have a massive impact upon hospitality managers'
knowledge, skills & abilities in making sound judgements. According to the
economist 'Herbert. A. Simon', the two cognitive biases interfering with rationalization
include 'maximizers' and 'satisficers' that support the 'bounded rationality' model,
whereas, the human mind has a 'limited' capacity in evaluating and processing
'undependable' information related to the possible 'alternatives' and their future
worldwide, it is vital that all managers indulge in making important internalized
decisions on a day-to-day basis to face the constantly changing external
environment associated with 'risk' & 'uncertainty' for functioning consistently in
providing their clients with memorable hospitality experiences (Mason n.d.). The term
'decision making' can simply be outlined as one of the 'central processes' for
different establishments and the basic 'managerial' chore at all stages that is
recognized in 'identifying' various problems with the 'evaluation' of alternatives &
hence, 'implementing' the best choice, whereby, it includes the 'intelligence', 'design'
and 'choice' activities at all 'operational', 'tactical' and 'strategic' planning levels
respectively (Li 2008 and Riskope 2014). Hence, this essay will briefly touch-base on
intuitive and rationale decision-making terminologies in regards to the hospitality
industry with their strengths, possible limitations & therefore, providing vital
strategies to managers in tackling these problems for systematically staying on the
top both efficiently and effectively throughout the passing time.
Intuitions can simply be identified as effectively institutionalized 'judgements' arisen
from 'speedy', 'non-conscious' & 'holistic' affiliations, wherein, leaders & managers
tend to make decisions by using their 'gut-feelings' through relying upon their 'past
experiences' and their own 'personal values' when dealing with badly 'structured'
situations, 'equivocal' information & 'rapid reactions' in an extremely fast-paced
environment (Dane & Pratt 2007, Khatri & Ng 2000 and Time-Management-Guide
2005). For example, dealing with various customer complaints generally on a daily
basis within the hospitality industry might sometimes require staff-members going
beyond their standard operating system manuals for using their intuitions in certain
situations to maintain an overall positivistic customer journey experience. Moreover,
the Time-Management-Guide (2005) further elaborates that the entire intuitive
information by nature also tends to be pre-dominated by the 'sub-conscious' psyche
& processed more 'parallelly' than sequential as a whole with individual remaining
more connected with their own emotional patterns as an end result.
From a hotelier's perspective, the benefits of intuitive decision-making process
performed by an organization's members include in defining an establishment's
genuine 'mission' & 'purpose' for its existence in the business environment by having
an openness to 'creative' ideas whilst simultaneously allowing individuals in sensing
things when matters go completely out of hand and hearing sounds appertaining to
caution for resolving pending problems and making judgements appropriately
(Girdler n.d.). For instance, while the Ritz-Carlton employee's empowerment
procedures globally might be a rational decision approach to authorize employees' in
making their own decisions within certain boundaries during turbulent conditions for
preserving trust and exceeding customer satisfactions to maintain the overall brand
image, it is completely upon the staff members' knowledge, skills and abilities upon
how they really end up perceiving & utilizing the entire system involving their intuitive
methods in providing a comfortable guest experience for achieving organizational
success.
Since research suggests that intuition decision-making is relatively positive under
'unstable' environmental conditions integrating 'government regulations', 'technology'
and 'competition' for a successive 'financial' & 'non-financial' operation, however,
there are several limitations associated with this method deemed unfit comprising of
, 'flawless information', short-termed 'emotional prejudices', availability of 'insufficient
alternatives', lacking 'openness' & finally, applying one's intuition inappropriately in
other unknown areas due to 'overconfidence' leading to self-destruction (Khatri & Ng
2000 and Decision Innovation n.d.). Furthermore, some elementary biases
associated with intuition includes ‘representative’, ‘anchoring’ and ‘availability’
heuristics being greatly affected by an organization’s ‘values’ and ‘attitudes’
respectively (The Happy Manager n.d.). For instance, the HR department might even
fail in recruiting the best qualified candidates into their organizational culture by
simply having an emotional prejudicial mind-set and over-ruling all the facts entirely.
Hence, a few significant strategic measures related to intuition integrate to create a
better 'learning environment' for employees in recognizing & interpreting 'emotions'
efficaciously and increased 'experiences' through instant 'repetitions' within different
surroundings and having effective 'communication' measures by listening better,
consulting everybody & examining all beliefs efficiently (Decision Innovation n.d.).
The rational decision making model, on the other hand, offers a more 'structured' &
'sequenced' access with prior systematic procedures, whereas, the approach
involves in devising 'goals' & identifying 'decision criteria' and 'alternatives' for
executing the 'analysis' and arriving at a concluding decision assuming that
individuals' have the complete 'information' with all 'collected' & 'analysed'
measurable standards alongside the 'resources', 'time' and 'cognitive' power in
assessing all existing data respectively (The Happy Manager n.d. & Boundless
Management n.d.). Inside the hotel environment to plan ahead for the new financial
year, this would include major departmental heads incorporating the 'marketing',
'front office', 'finance', 'human resources' and 'Food & Beverage' managers coming
together with previous analysed existing yearly data recordings in 'forecasting' future
organizational success.
The characteristics associated with rational decision-making integrates following a
systematic 'pattern' to maximize 'utility' in analysing & satisfying the 'legitimate
consistency' & 'deduction completeness' conditions whilst considering the 'risk' and
'uncertainty' for future consequences (Decision Innovation n.d.). Moreover, the
Decision Innovation (n.d.) further adds that their strengths in particular help address
'complex' problems through breaking them down to fulfil all 'necessities' and
'demands' with various decision-making 'techniques' in improving 'guidance' and
'profitability' by the managers for overall organizational success by relying upon the
management information systems interpreting existing factual data. For example, to
measure business financial success in general, it is important that the financial
department keeps an effective measure on the cash-flow and profit & loss
statements alongside the balance sheets keeping in mind about certain constraints
for attaining organizational goals.
Nevertheless, several limitations can be linked with the rational decision-making
model too, which can also have a massive impact upon hospitality managers'
knowledge, skills & abilities in making sound judgements. According to the
economist 'Herbert. A. Simon', the two cognitive biases interfering with rationalization
include 'maximizers' and 'satisficers' that support the 'bounded rationality' model,
whereas, the human mind has a 'limited' capacity in evaluating and processing
'undependable' information related to the possible 'alternatives' and their future
