Because of the continuous changes in the hiring process in the food and beverage industry, managers are increasingly challenged when it comes to making sound business decisions in the workplace. Recent examples of behavioural economics demonstrate that organizations can lose credibility because the public no longer see’s decision making being applied fairly, and because the application seems disproportionate to the biases it’s supposed to prevent in its existing environment.
A lack of credibility for any organisation especially in hotels could have long lasting negative impacts which could lead to revenue losses. The reason it is important for managers to hire the right competent staff with a professional background of the industry, with some …show more content…
In fact this could be brought on by unhappy guests for many reasons that may not necessarily be related to the hotel. Some restaurants are outsourced to certain companies and if they are the ones with a current issue, it could be passed on to the hotel. Most companies pay rent to use the restaurant space in hotels and use the hotel’s name so not to cause confusion to guests. Other hotels can use this as a way to optimize revenue by using this to get customers by promoting the damaged reputation of the hotel. In fact bad publicity can do the opposite and boost hotel revenue if it was in the story was in the newspapers. Once the story is published as a false story could lead to loyal …show more content…
Much is said about the fact that human decision making is not perfect and that we make all kinds of mistakes and biases when it comes to making choices. We are predictably irrational: that we need to be nudged towards making the right choices, that we make decisions in the blink of an eye and that we need to be more decisive. Behavioural economics is about how people behave and the consequences and implications affecting an organization. People in management in some situations tend to not behave rationally and the reason organizations find themselves entangled in unethical practices and law suits (Suman,
A lack of credibility for any organisation especially in hotels could have long lasting negative impacts which could lead to revenue losses. The reason it is important for managers to hire the right competent staff with a professional background of the industry, with some …show more content…
In fact this could be brought on by unhappy guests for many reasons that may not necessarily be related to the hotel. Some restaurants are outsourced to certain companies and if they are the ones with a current issue, it could be passed on to the hotel. Most companies pay rent to use the restaurant space in hotels and use the hotel’s name so not to cause confusion to guests. Other hotels can use this as a way to optimize revenue by using this to get customers by promoting the damaged reputation of the hotel. In fact bad publicity can do the opposite and boost hotel revenue if it was in the story was in the newspapers. Once the story is published as a false story could lead to loyal …show more content…
Much is said about the fact that human decision making is not perfect and that we make all kinds of mistakes and biases when it comes to making choices. We are predictably irrational: that we need to be nudged towards making the right choices, that we make decisions in the blink of an eye and that we need to be more decisive. Behavioural economics is about how people behave and the consequences and implications affecting an organization. People in management in some situations tend to not behave rationally and the reason organizations find themselves entangled in unethical practices and law suits (Suman,