I.

EXECUTIVE SUMMARY In the hotel industry, lodging facilities are frequently defined by the level of service they provide to their guests. Due to the extensive services and amenities offered at resort (46.5 percent) and convention hotels (46.0 percent), these property types have the highest payroll ratios as a percentage of total expenses. On the other end of the spectrum, limited-service hotels (36.7 percent) and all-suite properties (37.7 percent) reported the lowest cost ratios. Across the board, the cost of labor is the biggest expense in all categories of hotels, even with the advent of select-service properties; hotel developers cannot avoid the human component of hotel operations. While managing labor expenses is important, hospitality managers are also aware that employees are an integral part of the lodging experience. The interaction between hospitality guests and employees has a dramatic impact on the customer experience and the success of the business operation. Therefore, a fine balance must be drawn between cost controls and guest satisfaction. II. CASE PROFILE The cost of labor is the biggest expense in all categories of hotels. Even with the advent of select-service properties, hospitality developers cannot avoid the human component of hospitality operations. Labor expenses remained the largest single expense item for hospitality managers, accounting for 44.6 percent of total operating costs. Consequently, any trend or issue that could potentially impact labor costs must be taken seriously by hospitality owners and managers alike. Due to the magnitude of the expense, labor costs and issues have always consumed a substantial portion of the time and efforts of hospitality managers. Now, with news of union contact negotiations, changes to immigration laws, and proposed legislation to increase the minimum wage, hospitality managers are on edge. III. PROBLEM STATEMENT In this case, some problem encountered of the hotel management regarding of LABOR COST CONTROL AND ROSTERING. The management encountered of having a low percent in the total revenue of the hotel. Because of reducing of labor cost, the performance and quality of service of the employee are affected. The number of employee and the capacity to do their duty.

IV. STATEMENT OF OBJECTIVES The objectives of this study are the following: To know how the hotel management control the labor cost To have an idea to solve or to give an action to any kind of problem regarding to labor cost control and rostering inside of the hotel To know what are the strategies of the management to control the labor cost without sacrificing the quality of performance of the hotel employee.

V. AREAS OF CONSIDERATION

A. INTERNAL FORCES It can affect the performance of the employee The service and operation of the hotel will also affected The fluctuation of total revenue or the sales of the hotel will be affected also.

B. EXTERNAL FORCES The economy will be affected because of cost cutting many are unemployed. Several political and economic factors are brewing that may have a strong influence on hotel labor costs. Union contract negotiations are under way in several major cities. Proposed changes to immigration laws could affect the ability of hotels to find and retain employees. Local and state governments are proposing legislation to increase the minimum wage.

C. SWOT ANALYSIS Strength The hotel will increase the percentage of total revenue Lessen the labor cost Weakness The quality of the operation of the hotel The capability of the employee to finish their duty Because of the poor quality of service, the guest may switch to other hotel

VI. ALTERNATIVE COURSES OF ACTION (MAX. OF 3) The management faced a percent declined in their total revenue; because of this the management do the following solution: Management was forced to reduce their operating expenses in order to limit declines in profitability. Instead of giving money or paying cash to the productivity employee, the management gives a complimentary to their employee like a vacation trip, free dine-out or checking-in in the hotel with their families. If the percentage of the total revenue of the hotel is too low, the management will decide to cut their employee and give attention to the employee who can perform well to their job.

VII. ANALYSIS In analyzing the issue about labor cost, the management do the following: Evaluation for the performance of their employees They implement the policy for the standard procedure inside the hotel Giving a proper training for the flow of the operation of the hotel

VII. CONCLUSION/ RECOMMENDATIONS The good quality of the service is depending on the employees performance. Having a good performance is depending on the management taking care of their employees. The employees have an important part of the success of the operation of the hotel.

UNIVERSITY OF PERPETUAL HELP SYSTEM-LAGUNA Sto. Nio, Bian, Laguna COLLEGE OF INTERNATIONAL HOSPITALITY MANAGEMENT

CASE STUDY: Labor Cost Control and Rostering in Hotel

SUBMITTED BY: Guelas, Regina M. H3A

SUBMITTED TO: Ms. Kathleen Apilado

January 31, 2011