Measures of Managerial Effectiveness in the Hotel Industry

Abstract

A study was conducted to capture the underlying dimensional structure of outcome measures used to evaluate general hotel manager effectiveness in large hotel chains. Seventy-three hotel executives and general managers completed a survey of the frequency and importance of 23 distinct effectiveness measures used in their firm. Factor analysis revealed three independent dimensions: short-term profit indicators, tangible results (i.e., budget compliance, sales growth, guest comment cards), and intangible factors ( i.e., employee morale, market share changes, and guest complaint letters). Projected linkages between key manager behaviors and these effectiveness dimensions are discussed within an integrated hotel manager evaluation framework. Implications forpractice and further research are discussed.