Research On Senior Managers' Incentive Mechanism Of High-star Hotels Under Entrusted Management Mode

In recent years,with the weakening of the global economy,the slowdown in domestic economy growth,and the decreased consumption levels of traveling and commercial conferences,hotel industry is facing the increasingly sharpening competition.The problems that what hotels can do to stand out,to achieve a steady stream of customers and a steady growth in profits,and maintain their competitive edges has bothered many high-star hotels in such a competitive environment.However,currently most domestic high-star hotels are operated under entrusted management mode,in which separated ownership and management,asymmetrical information and different operating goals between hotel owners and the management companies make the supervision and restriction of senior managers a challenge.The owners of the hotels pursue a higher return on investment while hotel management companies focus on the higher management fee and brand premium,but the senior managers of the hotels seek higher salary and more leisure time.That is the tripartite profit game in hotels under entrusted management mode.How can the high-star hotels under the entrusted management mode motivate the senior managers well,so that the management team can give full play to enhance the competitiveness of the hotels and to improve the performance of the hotel,meanwhile the hotel management group could also get benefits? That is the question this article trying to answer.Based on this idea,taking the incentive mechanism on senior managers in Chengdu high-star S Hotel as the research object,the article starts with figuring out the problem,analyzing it and then put forward some solutions,and ends up with implementing the measures.The main contents in this article including:(1)Collecting articles on entrusted management mode and incentive theory,and summarizing the main ideas;analyzing the operating mode and incentive mechanism of S hotel by applying theory to practice,and then figuring out the problems.(2)Explaining the necessity for owners and management companies both parties that they should collaborate to build the senior managers' incentive mechanism with hotel industry data and information from S hotel.And then setting both parties' duty for the mechanism.(3)A general introduction on this mechanism which contains material incentive and spiritual incentive,and then a more detailed introduction on the mechanism which includes performance evaluations system,salary policy,career plan and restriction mechanism.(4)Solutions to the problems that could possibly occur when implementing the recommended measures.Possible contribution from this article:(1)In the past,domestic theoretical researches on hotel incentive mechanism focus on staff of the front line,rarely on senior managers.But this article focusing on senior managers' incentive mechanism of high-star hotels under entrusted management mode make a contribution in some degree.(2)In domestic hotel incentive mechanism research,scholars tend to build the mechanism from the perspective of management companies only.But there are three parties(owners,management companies,and senior managers)in this profit games in hotels under entrusted management mode,which makes the design of incentive mechanism more complicated and difficult.And this article builds an incentive mechanism for senior managers just based on this tripartite relationship.