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COMPLAINT MANAGEMENT AS A QUALITY COMPONENT OF SUSTAINABLE COMPETITIVE

ADVANTAGE IN 4 AND 5 STAR HOTELS – THE ALDEMAR HOTELS & SPA GROUP PARADIGM

Vassilis Fragoulakis, MSc.

15, Dimitri Kyriakou str., GR-714 09, E-mail: vassilis_fragoulakis@yahoo.com

Dr. Theodoros Stavrinoudis

Adjunct Assistant Professor, University of the Aegean

8, Michalon str., GR-821 00, E-mail: tsta@aegean.gr

Abstract

This paper focused on complain management as a quality component of sustainable competitive

advantage in 4 and 5* hotels. Therefore, literature reviewing regarding sustainability and Total

Quality Management (TQM) principles application in settling complaints and increasing

customer satisfaction was carried out, and a field research in one of the leading hotel chains in

Greece, the Aldemar Hotels & Spa Group, was conducted. The methodology adopted was

personal interview based on a structured questionnaire addressed to all Aldemar Hotels & Spa

managers. The topics considered were:

• degree of TQM principles’ implementation, as a sustainable competitive advantage

• major grounds for complaints

• means of encouraging customers to express their complaints

• handling of customers’ complaints

• analysis and evaluation of complaints.

The basic conclusions drawn from this research led to the formulation of a set of factors affecting

the successful handling of complaints as a means of customer satisfaction, built on TQM

principles. Such conclusions illustrated the fact that the concepts of customer satisfaction,

continuous improvement and provision of quality services can lead to sustainable competitive

advantage.

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Keywords: Sustainability, Total Quality Management, Complaint handling, Customer

satisfaction, Hotels, Aldemar Hotels & Spa Group.

1. Introduction

International scientific literature contains many definitions of the meaning and content of quality.

A representative definition claims that “quality includes the degree to which service attributes

desired by customers are identified and incorporated in the service and the degree to which

desired levels of these attributes are perceived by the customers to be achieved” (Murdick et al.,

1990:12). Quality cannot be evaluated in absolute terms, but must meet customers’ expectations.

Jones & Lockwood (1989:38) believe that quality has to be treated as a key result area of a

hotel’s operation and not as a consequential result of various other processes. They adopt the

British Standards Institution’s (BSI) definition of quality whereby quality is defined as “the

totality of features and characteristics of a product or service that bear on its ability to satisfy

stated or implied needs” (BSI, 1983:18). This definition appears to be complete yet in reality it is

vague as customers themselves constitute a part of the service experience and project onto the

product expectations and perceptions which are not controlled by the enterprise (Baker and

Crompton, 2000: 795). Nevertheless, these expectations must be pinpointed. A more useful

definition of quality is provided by Wyckoff: “the degree of excellence intended and the control

of variability in achieving that excellence, in meeting the customer’s requirements” (Wyckoff,

1984: 85). Wyckoff’s definition renders a more positive dimension and is useful in that it

contains two essential concepts:

• The first concept refers to the product quality planning. Quality planning refers to the

standard used by management as a basis for enhancing and monitoring a product. In all

likelihood, it is the most critical element in a quality strategy (Randall and Senior,

1992:7). Quality planning is the starting point for the appropriate quality management.

• The second concept refers to the suitability of a product or the extent to which it satisfies

the total needs of a customer. In hospitality services, the real need for rest or dining is

often secondary to the peripheral needs, which as a rule constitute the basis of a

customer’s satisfaction (Haywood, 1983:166). Tourists are likely to have certain basic

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expectations regarding comfort and cleanliness standards in a hotel. They are not

surprised or exceptionally satisfied when they realize that their expectations were met.

They merely are not dissatisfied. For there to be essential satisfaction, service must

exceed expectations in order to satisfy social and psychological needs. This implies that

the product must tend towards the concept of total quality (Teare, 1996:123).

In conclusion, the following are prerequisites for the attainment of outstanding service quality in

hospitality organizations:

• the appropriate company culture and entrepreneurial spirit

• a suitable management style (participatory and flat)

• a commitment to and passion for service excellence (Tenner and De Toro, 1992:12)

• the proactive involvement of the human resources with empowerment to handle any

quality problems immediately and on the spot

• the support of the organizational structure with the required resources and motives

• the use of modern management tools and techniques.

2. Total Quality Management (TQM) in hospitality organizations

TQM is the totality of activities undertaken and methods applied by the hospitality organization

in order to satisfy the customer and simultaneously motivate its human and other resources at the

lowest possible cost (Velissariou et al., 2000, Sotiriadis, 2000). TQM introduces a wider

dimension into managerial thought, a different approach to management. According to Wibberley

(1992:32), TQM is “the ceaseless effort towards continuous improvement, the daily small steps

forward, what the Japanese call ‘kaizen’”. Such effort includes the notion that total quality is an

‘endless road’ and guides the inherent inclination towards progress, which we believe exists in all

our employees.

TQM implementation in a tourist enterprise produces the following results:

• maximizes the satisfaction employees derive from their work

• contributes to improved coordination of the various hotel sections

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• contributes to the enhancement of communication among the staff and promotes team

spirit

• reduces customers’ complaints and contributes to their satisfaction

• improves productivity

• reduces mistakes and, as a result, obviates the recovery cost

• results in upgrading services offered

• present a better image to the world (Christou, 2000:63).

Jones has proposed that TQM strategy in hospitality organizations involves a number of key

steps, as illustrated in Figure 1.

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Figure 1

A model of TQM in hospitality organizations

Source: Jones, P. and Merricks, P., 1997:132

Carry out opportunity study

Appoint quality steering group

Communicate quality message

Empower employees

Carry put quality training

Set up quality circles

Measure customer satisfaction

Develop mission statement

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On the basis of the above, it is our view that the elements which differentiate TQM from other

quality strategies are:

• the holistic approach and the involvement of the whole organization

• senior executives play a key role in leading the quality drive and communicating the

quality message

• employee empowerment which involves staff more actively in the decision-making

process and in monitoring the implementation of decisions.

It is believed that everyday problems in their totality should be effectively resolved by the first-

line employees, viz. the ones that come in direct contact with customers. However, such approach

must be systematic (Jones and Lockwood, 1989: 65). The process of continuous quality

improvement is one of the most successful total quality methods in order to enhance the effective

involvement of the staff. This method motivates the staff and provides the tools, i.e., the system

and the passion, for the practical resolution of problems. This goal can be achieved through

quality teams or circles. We can claim that the contribution of quality circles technique to TQM is

one of the prerequisites for the success of a quality programme which encourages staff to see

their tasks through and to secure the continuous improvement of customer service. The ‘moment

of truth’ for the organization comes when its employee faces a complaining customer. The

correct handling of the problem and, more importantly, its prevention, initially lead to acceptance

and, at a later stage, to the customer actively advertising the hotel (Spanos, 1993:73).

3. Aldemar hotels and spa

Aldemar Hotels is one of the biggest hotel chains in Greece. With a capacity of 5,500 beds and a

staff of 1,800, is among the most dynamic entities in the Greek hospitality industry. Dr. Nicos S.

Angelopoulos is the founder, chairman and managing director. Aldemar Hotels comprises the

following:

6 de luxe and first class hotel units, in three strategic destinations: Crete (3), Rhodes (2) and W.

Peloponnese (1):

• Aldemar Knossos Royal Village *****

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• Aldemar Royal Mare Village *****

• Aldemar Cretan Village ****

• Aldemar Paradise Royal Mare *****

• Aldemar Paradise Village ****

• Aldemar Olympian Village ***** .

Three state-of-the-art conference centres:

• Aldemar Knossos Royal Village Conference Centre

• Aldemar Paradise Royal Mare Conference Centre

• Aldemar Olympian Village Conference Centre.

Two Thalasso Spa Centres:

• Royal Mare Thalasso,

• Royal Olympian Spa & Thalasso.

Aldemar hotels guests share the following features:

• with regard to socio-economic origin: guests are of middle and upper class levels

• with regard to the market:

1) Clientele supplied through cooperation with some of the major Tour Operators

worldwide

2) Corporate clientele (from the domestic and international markets) in connection with

Conferences, Meetings, Seminars, Incentive Trips and Events

3) Individual guests who make their reservations directly through: (a) the hotels, (b) the

Group’s head office, and (c) the Internet.

• with regard to the frequency of visits: the company has established a group of repeaters. The

goal is to retain and develop this kind of clientele through: (1) the implementation of a

programme of customer relations management and, more importantly, (2) the development of

a guest loyalty programme which will consolidate the company’s integrated policy towards

repeaters/ loyal guests and trade partners in Greece and abroad through the offer of special

privileges.

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4. Research methodology

“Tourist market research is the method whereby providers of tourist products and services

remain aware of the needs and desires of consumers” (Christou, 1999:33-24). The aim of this

research is to investigate the prevailing situation as fully as possible with regard to the views of the

Aldemar Group hotels top managers on the application of TQM in the Group’s hotels and

specifically, on the way complaints are handled. It’s an ad hoc research (Middleton, 2001:99-110),

since it is not a part of an ongoing effort. Simultaneously, it constitutes a combination of qualitative and

quantitative research since it leads to the collection of statistical data as well as unforeseen elements and

information. The majority of the data collected were primary data, given that they refer to ‘first hand’

information gathered for the needs of the specific paper.

This research is also a basic one, in the sense that its overall target is to understand a given situation

(or problem) and compile a database for future use through the gathering of relevant information.

In addition to ‘basic’, a research can also be termed ‘applied’ if it has to do with the immediate

resolution of a problem faced by a business and its aim is to take measures on the basis of the

results of such research (Sekaran, 2003:25).

With regard to sampling, it was considered essential to base sample selection on the principles of

purposive sampling whereby the researcher selects the research subjects on the basis of his/her personal

estimate of their typicality and suitability (Opie, 2004:99). The Group’s hotel managers are all

experienced tourism professionals fully versed in the manner of handling complaints in the

specific company. Consequently, their selection apparently meets the requirement for reliable

information gathering in relation to the subject matter of our research, given that it adheres to

such principles. Our sample comprises the five (5) general managers of Aldemar hotels. The

personal interviews were conducted in the period January to February 2008.

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5. Research findings

Processing and analyzing the data derived from the research lead to some very useful findings,

put forth below.

5.1. Number of employees and type of contract

Table 1

Percentage of Permanent vs Seasonal Staff

Hotel Permanent (%) Seasonal (%)

CRETAN VILLAGE 2.27 97.73

KNOSSOS ROYAL VILLAGE 12.14 87.86

OLYMPIAN VILLAGE 12 88

ROYAL MARE VILLAGE 1.25 98.75

PARADISE ROYAL MARE 7.3 92.7

Clearly, the majority of Aldemar employees are seasonal. This is quite understandable given that

the units of the subject organization operate only during the summer. Nevertheless, there are

several permanent employees who handle pending matters as well as task that must be conducted

during winter. At this point, it is worth mentioning that a number of staff is employed on the

basis of open-ended contracts at the company’s head offices in Athens.

5.2. Degree of application of TQM principles

This question examined, in a 5band scale, the application of TQM principles by the Aldemar

hotel chain through the evaluation of the degree of their application to the following key

parameters: Leadership, Employee Involvement in decision making, Systematic Approach to

Management, Continuous Improvement, Informed Decision Making, Mutually Beneficial

Relationships with Suppliers and, lastly, Customer Focus. Results are shown in the following

chart

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Chart 1

Degree of Application of TQM Principles

0 0,5 1 1,5 2 2,5 3 3,5 4

Leadership

Employee Involvement

Systematic Approach to Management

Continuous Improvent

Informed Decision Making

Mutually Beneficial Relationships w ith Suppliers

Customer Focus

Excellent Great Good Fair Not So Great

With regard to leadership, the majority of managers (four vs one) replied that they apply TQM

principles to a significant degree in the Group’s hotels. With regard to employee involvement,

three of the managers believe that employees are encouraged to participate in various processes

to a significant degree, whereas the other two maintain that employees are encouraged to a very

large degree. Four of the five managers believe that the systematic approach to management is

applied to a significant degree, whilst the fifth one maintains that it is applied to a very large

degree. Three of the managers state that informed decision making is applied to a significant

degree, whilst the other two are confident that it is applied to a very large degree. We find that the

question on mutually beneficial relationships with suppliers has the smallest success rate vis-à-vis

the balance of the questions, with four of the five managers stating that it is applied to a

significant degree, whereas the fifth one maintains that it is to a very large degree. Lastly,

customer focus, which we daresay is considered one of the most important TQM principles,

recorded very favourable results with four of the managers stating that it is applied to a

significant degree.

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The foregoing clearly illustrate that the company takes TQM principles into account and

endeavours to apply them on many levels. However, it is widely known that this is not always

feasible. The company has a good structure and organization and the various posts are manned by

trained persons. As evidenced by the questions that follow, these facts lead to TQM principles

being applied to a large extent, which results in the immediate reduction of customers’

complaints and in their correct handling when they do occur.

5.3. The impact of investing in quality

The next question addresses the highly significant impact investing in quality has on the

operation of hotel enterprises. Interviews produce very interesting conclusions which highlight

the extent of the positive impact quality may have on many different aspects of the hospitality

sector and, secondly, the good standing of the subject company. All managers in question believe

that investment in quality affects operating efficiency. The same result was shared by corporate

performance, corporate development and competitive edge. Changes in management were

highlighted as a very positive development by four of the managers while three of the managers

consider profitability as a very important positive factor, with the other two maintaining the view

that it is extremely important. Lastly, as far as cost control is concerned, three of the managers

consider it as extremely important vs the other two who consider it very important.

All the foregoing show that TQM elements and their immediate impact on the company’s

development and efficiency are known to and to a large degree accepted by the company’s

managers. This corroborates the aims of our research and underlines the fact that TQM plays a

decisive role as a means of customer satisfaction and complaint handling.

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Chart 2

Impact of investing in quality

0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 5

Operating efficiency

Corporate Performance

Development

Competative edge

Market shares

Management changes

Profitability

Cost Control

Highly significant Very significant Neither sig/nt nor in/cant

Of little significance Of no significance

5.4. Impact of investing in quality on various divisions

The next question placed emphasis on recording the significance of investment in quality and its

impact on the various hotel divisions. The results have shown unanimity with respect to the

positive role of investing in quality and of its high impact on the smooth operation of the major

hotel divisions. All five managers agreed that the investment has an extremely high impact on

the front desk, the restaurant/ bar and the kitchen. With regard to the floor division, four of the

managers believe that the impact is of the highest degree, whilst the fifth one is of the opinion

that the impact is very significant. Chart 3 illustrates that quality impacts all hotel operations.

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Chart 3

Impact of investing in quality on various hotel divisions

5.5. Customer complaint management

The research then focused on whether the company has a system for the management of customer

complaints. All interviewees replied positively, which illustrates to a large extent that the

company takes TQM principles into account as an indispensable tool for corrective action.

5.6. Main reasons for customer complaints

As part of the research, managers were asked to describe three of the most common complaints

they have to handle. According to the results, that complains are:

(a) State of the beach

(b) Problems resulting from the nationality mix of guests. Most tourists prefer to stay in hotels

where the majority of guests are of the same nationality as they are. The fact that the subject

company receives guests of various nationalities at times produces tensions

(c) F&B pricing policy in comparison with destinations outside the eurozone, e.g. Turkey.

0 0,5

1 1,5

2

2,5 3

3,5

4 4,5

5

Front Office

Housekeeping

Restaurant/Bar

Kitchen

Highly significant

Very significant

Neither significant nor insignificant

Of little significance

Of no significance

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The age of the hotel, insufficient infrastructure and off-premises services, room damages,

entertainment programmes, infrastructure problems (Airport/ Roads) and, lastly, the need for

Russian-speaking staff were recorded as common complaints.

These complaints are common in a large number of hotels worldwide. Whilst regular checks can

help avoid some of this problems (e.g., room damages), not all complaints can be anticipated. As

far as infrastructure deficiencies and off-premises services are concerned, it has been noted that

the non-existence of modern and sufficiently large airports, the lack of regular public transport

services and the poor road quality are not in line with the quality of the Group’s hotels. This

company can only facilitate its guests by supplying accurate information on means of transport.

Aldemar has expanded to new markets, such as Russia. Russian customers usually speak only

their own language, hence the remark by certain guests that there is a need for Russian-speaking

personnel.

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Chart 4

Most common reasons for customer complaints

5.7. Ways of encouraging customers to express their complaints

Managers were asked to specify the methods employed by the hotel management in order to

encourage customers to express their complaints. Person-to-person conversations with customers

and questionnaires were considered to be the most common methods since they were mentioned

by all subjects. Thank you letters soliciting guests’ suggestions were selected by two of the

managers and, lastly, guest comment cards were selected by one of the participants in the study.

It is worth noting that no one selected the complaints box. Aldemar has invested extensively in

PR, in this manner, division staff is in constant contact with guests, thus giving them the

opportunity to express their complaints. Moreover, the questionnaires that are placed in every

room, in combination with PR’s oral encouragement are the most frequent methods. The fact that

none of the managers opted for the complaints box shows that guests prefer to speak to someone

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2

1

Need for Russian-speaking personnel Infrastructure problems (Airport / Roads) Entertainment programmes

Room damages

F&B pricing policy vis-à-vis destinations outside the eurozone

Deficiencies in off-premises infrastructure and services

Nationality mix Hotel age State of the beach

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and express their complaints than to write them down on a piece of papers which they believe no-

one will take into account.

Chart 5

Ways of encouraging customers to express their complaints

5.8. Major steps for handling complaints

Special emphasis was placed on highlighting major steps taken by hotel managers in order to

cope with complaints. It is impressive that training, which constitutes a TQM principle, was cited

by all managers. Another long-term exercise, viz., preparing a manual for the professional

handling of complaints as well as specifying the requisite skills, were selected by two

interviewees. Referring the matter to a supervisor was selected by three managers, whereas

preparing a complaints submission form was selected by one manager only. The results indicate

that all managers consider that staff training constitutes the best measure for handling complaints.

It is also interesting to note that provisions have been made for the preparation of submission

forms and the supply of manuals to staff.

0 1 2 3 4 5

Person-to-person conversations with guests

Guest comment cards

Complaints Box

Completion of questionnaires

Thank-you letters soliciting suggestions

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Chart 6

Major steps for handling complaints

3,27

1,9

2,18

5

0 1 2 3 4 5 6

Referral to a supervisor

Complains form

Specifying the requisite skills for handling ofcomplaints

Training programmes for associates

5.9. Ways of reacting to complaints

Whereas in the previous question we examined anticipatory measures, this question addresses the

ways in which the company handles a complaining customer. The majority of managers (four out

of five) replied that they reacted by contacting the customers in person, changing amenities and

improving unsatisfactory services. Two of the managers telephoned the customer and handled the

complaint in all appropriate manners, depending on the nature of each case. Subsequent

monetary compensation, replacement or repair of the broken facility, as well as a gift or coupon

were selected by one manager only. Such manners of compensation are considered necessary in

many cases in order for the customer to feel that he/she has been given due attention. In addition,

they ensure that the incident will not influence the customer’s decision to visit the hotel again,

therefore it is important that complaints are handled whilst the guest is still in the hotel.

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Chart 7

Ways of reacting to complaints

The interviews produced findings of great interest with regard to the specific procedures applied

for the identification, analysis and resolution of customers’ complaints. Such procedures adopt

TQM features. This is largely the result of the existence of a central quality improvement

division. Below is a detailed analysis of the procedures, as illustrated in the extensive interviews

and subsequent communication with hotel managers.

6. Analysis, evaluation and handling of complaints

6.1. Guests still at the hotel:

6.1.1. Minor complaints– Demands– Negative Comments

Complaints are defined as minor if they can be easily resolved. For example: A/C, food,

beverage, noises, misunderstandings, erroneous information, etc. Minor complaints or demands

are expressed by the Guest to the Reception or to the Guest Relations Supervisor. Thereafter:

1. The Guest Relations Supervisor undertakes to resolve the Guest’s complain immediately

by calling the competent division directly

0 1 2 3 4 5

All the above, depending on merits of case

Change of amenities

Subsequent monetary compensation

Telephone contact with the guest

Coupons or gifts

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2. If the Guest Relations Supervisor believes that the Guest should be made a special offer,

he/she applies the procedure specified in the following paragraph

3. Subsequently, the Guest Relations Supervisor communicates with the Guest to check

whether the Guest is satisfied and the problem has been resolved.

6.1.2. Serious Complaints

Serious complaints are expressed to any division dealing with the Guest, or directly to the Guest

Relations Supervisor. Specifically, if the complaint has to do with the food, it can be addressed to

the F&B manager or to the hotel maitre d’. In other cases, the guest can contact the hotel’s Guest

Relations Supervisor.

6.1.2. (a) Legal Matters

If it is a legal matter involving the insurance company and falling under the category of Injury,

Damage, Theft, or Loss, the Guest completes the ‘Injury, Loss, Damage’ report in the presence of

a competent person appointed by the Room Division Manager or the Front Office Manager.

Thereafter:

1. The Guest Relations Supervisor enters the Guest’s complaint Form in the hotel in the

Notes field, under Note type: ‘Guest Complaints’, and under Activity in the Daily Report.

2. The Guest Relations Supervisor communicates with the Guest to check whether the Guest

is satisfied and the problem has been resolved.

6.1.2. (b) Tour Operator’s Customer

1. The Guest Relations Supervisor informs the Hotel Manager for the complaint in writing

and suggests a specific offer be made to the guest

2. If the Hotel Manager approves the offer, sends the approval to the Room Service

Supervisor for action and notifies the Guest Relations Supervisor

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3. The Guest Relations Supervisor prepares a letter and hands it to the Room Service

Supervisor or the Guest Relations Supervisor

4. The Guest Relations Supervisor complete the Guest’s complaint Form

5. The Guest Relations Supervisor communicates with the guest to check whether he/she is

satisfied and the problem has been resolved

6. The Guest Relations Supervisor notifies the Τour Operator’s Representative and

completes the Tour Operator’s relevant form, where applicable, mentioning the nature of

the offer, the cost and the reason therefore

7. A copy of this form is delivered to the Room Division Manager.

6.1.2. (c) Individual Customer

The Guest Relations Supervisor informs the Hotel Manager for the complaint in writing and

suggests a specific offer be made to the guest. If the Hotel Manager approves the offer, he sends

the approval to the Room Service Supervisor for action and notifies the Guest Relations

Supervisor. Thereafter, the Guest Relations Supervisor:

1. Prepares a ‘With Compliments’ card

2. Enters the guest’s complaint Form

3. Communicates with the guest to check whether he/she is satisfied and the problem has

been resolved.

6.2. Guests who have checked out

6.2.1. Complaint letter sent by the Guest or by the Tour Operator to the Athens Head Office

1. The Customer Relations Executive enters the complaint Form details

2. The Customer Relations Executive informs the Room Division Manager and the Guest

Relations Supervisor in writing, with copy to the Hotel Manager, and requests an update

on the incident. As soon as all the required information and documents are collected, the

Customer Relations Executive replies to the Guest or the Tour Operator

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3. All correspondence is entered by the Customer Relations Executive into the hotel

Complain Form

4. The Customer Relations Executive informs the Administration.

6.2.2. Letter of complaint from the Guest or the Tour Operator to the Hotel

1. The Hotel Manager or the Room Division Manager forwards the letter of complaint to the

Customer Relations Executive together with all necessary information and related

documents

2. Thereafter the Customer Relations Executive applies the above-mentioned procedure.

6.2.3. Written Request for Compensation

Depending on the nature of the case, the above procedure is applied in its entirety, the

Administration is informed and the incident is resolved in accordance with Management’s

instructions.

7. Conclusions– Policy recommendations

Customer complaints are to be viewed as a gift to management since the customer, of his/her own

accord and without any outlay on the part of the company, pinpoints products’ and services’

failures and thus offers the company the opportunity to rectify problems and contain the damage

they cause to the budget unbeknown to the company. When customers realize they are wronged,

they react in various ways, depending on their personal traits. The company in turn should

develop a complete complaint management system with specific procedures and fixed time limits

for the acceptance, processing and resolving customers’ complaints. Such system has specific

goals and its various stages adhere to a pre-determined model.

The most common method of collecting customers’ impressions and complaints consists in

questionnaires. These are pre-printed forms with a number of questions concerning the stay at the

hotel and customers are asked to complete and return them for processing, so that customers’

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satisfaction may be measured. Designing such questionnaires requires knowledge, strategy and,

above all, a true determination to capture the real picture and not just some virtual reality. It is

management’s responsibility, through staff guidance, motivation and appraisal, to achieve

optimum customer complaint handling. The proper empowerment of the right staff members is

the key to restoring the satisfaction of complaining customers.

Our research has shown that Aldemar hotels realize this requirement, mainly through the

existence of an independent Quality and Development Division whose activities include, inter

alia:

• Continuous and systematic checks (by means of questionnaires and ad hoc mini-

surveys) of the quality of services offered in the Aldemar Hotels

• Quality Audits, i.e., systematic checks of quality specifications of services and of

work procedures (Mystery Guest Programs, Shopping Calls, Check list Audit).

• Study and analysis of statistical data derived from the research of financial indexes

and the update of all divisions involved in the provision of services.

Through such activities, the company takes account of TQM and anticipates any complaints. As

we have already mentioned, complaints are an inseparable part of service provision because of

the involvement of the human factor. Garvin (1990:23) has underlined that "Quality means

pleasing customers, not just protecting them from annoyances". The results of our research

demonstrated that the company in question strives to apply this definition. Crosby (1979:44) says

that the organization should:

• comprehend its own needs and set a specific procedure for the achievement of its goals

(Comprehension)

• secure the commitment to quality principles by all parties involved (Commitment),

• continuously improve quality in order to achieve competitive advantage (Competence)

• minimize mistakes through problem identification and application of procedures for

their resolution (Correction)

• secure the internal flow of information, i.e., maintain open communication channels

(Communication), and lastly

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• connect the past with the present through a continuous improvement process

(Continuance).

On the basis of the foregoing, we understand that all persons working in an organization must

participate in the quality improvement process, by achieving the targets and honouring the

commitments of the organization. Employee empowerment through a team mechanism for the

implementation of improvements and changes constitutes a fundamental principle of Total

Quality Management. On the basis of the research conducted at the Aldemar hotels, it is

recommended that the following policies be adopted or enhanced:

• Employees should be given more incentives (by way of training, remuneration or

special benefits) in order to become more proactively involved in the provision of

higher quality services and achieve set reservation targets within a specified period.

The company should organize more seminars for all hotel divisions in order to ensure

that its employees are properly trained so as to either avoid mistakes which cause

complaints, or to resolve such complaints with greater readiness. Moreover, the

company could offer greater financial incentives, perhaps by way of a bonus to the best

employee, based on customers’ vote

• Training courses must be organized with each organization’s real needs in mind and

recommend realistic service alternatives focusing on the customer’s needs

• Each division’s procedures must be regularly reviewed by senior management to

ensure that they result in the provision of quality services and facilitate employee

performance. It is recommended that procedures contained in this essay be used, once

they are adapted to the needs of each organization.

Although Aldemar systematically applies TQM principles, we believe that it could be improved

further in the area of customer update. It is a well-known fact that questionnaires increase

customer expectations. When customers believe that their opinions are truly valued, they expect

organizations to proceed to changes and improvements. When organizations in turn effect

changes, improve their products and adopt many of their customers’ suggestions, they very rarely

let the customers know. The next time the customer hears about these changes will probably be

when he will have conveyed this negative image to friends and acquaintances, he may have

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hesitated to consume the organization’s products or services again, he may have been enticed by

makes some other complaint. By then, however, he will have formed a negative impression of the

company may even have consumed some of the competitors’ products or services. The

organization could have avoided all these unpleasant consequences if it had updated the customer

on the changes and improvements adopted as a result of his comments. This would have

improved the organization’s image significantly. Lack of communication can negate the value of

significant and necessary changes.

References

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