BUILDING AN OPTIMAL GOAL HIERARCHY MODEL FOR HOTEL AND RESTAURANT INDUSTRY

Abstract

The article presents the research findings on building an optimal goal hierarchy for businesses in the sector of hotel and restaurant industry. A mathematical rationale has been provided for setting objectives in the context of ensuring effective hospitality management by hotel and restaurant businesses based on a set of key performance indicators. It is argued that every managerial action must be focused on problem solving. According to the research results, a solution is a management decision aimed at gaining the maximum to achieve certain goals. Failure to set optimal goals makes impossible to shape a management problem which, in turn, translates into absence of the need for making management decisions. Goals contribute to shaping the criteria for evaluating the feasibility of proposed management decisions as well as mapping the criteria for assessing the ultimate predicted outcomes. However, most often, objectives sought to be achieved by top management of hospitality industry companies are perceived quite differently by the staff. In this context, the system of goals is a critical instrument for management decision making and problem solving related to organizational issues in managing businesses of hotel and restaurant industry. Thus, the flexibility of organizational structures in a management paradigm within the hospitality industry is associated with the dynamic process of designing the optimal goal hierarchy to achieve good performance in the sector of hotel and restaurant industry. The author assumes that the estimation of the relevant flexibility of organizational structure management by hospitality industry businesses can be attained through the suggested classification of management goals.