While there are various performance measurement systems, our service industry performance of parity measures several special quality services. Antecedent research of the performance for the hotel industry is focused only on financial profit parties. T...
While there are various performance measurement systems, our service industry performance of parity measures several special quality services. Antecedent research of the performance for the hotel industry is focused only on financial profit parties. The hotel industry has a particular service characteristic that is not directly associated with accounting but is a primary factor for guests. For example, guest satisfaction is not a part of the hotel accounting, but is very crucial in the hotel operation. However, hardly andy serious studies or practices of BSC model are observed in Korea. Therefore, this is the first study for hotels that identifies the hierarchical relations among performance measures and the structural relations and their drives by the four perspectives of the Balanced Scorecard(BSC) model suggested by Kaplan and Norton(1992,1996).
This study first identifies the hierarchical relations smong performance measures and the structural relations between performance measures and their drives by the four perspectives of the BSC model. To test the hypotheses, operating data are gathered from financial statements of 11 hotels, and questionnaire survey to 234 hotel emplyees, 98 hotel guests. In addition, the factor analyses, regression analyses, and logistic regression analyses are emplyed, and statistically significant results are obtained.
The significant findings are follows:
First, the employee satisfaction influences on the internal process efficiency of hotels, guest satisfaction and internal process efficiency directly. Second, the strategies for human resources and the elements of the employee hierarchy have been identified as the critical drivers for guest satisfaction. Third, the same has been identified as the critical drivers also for operating performance. Fourth, the productiveness, the client-oriented system, etc. have been identified as the critical drivers for the internal process efficiency. Fifth, the productiveness constituting the internal process has been identified as the critical drivers for operating performance. Last, the guest loyalty constituting the guest satisfaction has been identified as the critical drivers for operating performance.
Consequently, I claim that the operating performance is the most effective driver among other elements such as the employee satisfaction, the internal process efficiency, the guest satisfaction, etc. Particularly, our statistical study on the super deluxe hotels in Seoul verified the theory that proved that the guests loyalty, which is a non-financial element, has a significant impact on the operating performance. In addition, our result also supports the studies of Denton & White(2000), Moon(2000), that claim that the degree of guest satisfaction including the guests loyalty has a substantial impact on the financial.