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Labor Productivity Reports.

The Report includes daily labor productivity and wage information. Labor costs account for a significant portion of hotelís total costs. Owing to the fluctuating nature hotel visits by clients, it is important that management constantly review the demand for labor. In instances of low customer numbers, the management should reduce the number of casuals in the hotel. Information provided by labor productivity reports indicates whether established labor guidelines have been met. In measuring productivity, the units of labor are compared to the units of output. Prior analysis indicates the amount of labor hours required to support a certain business. In the case of Hilton Washington, 200 employees each working 10 hours a day can support operation that will take care of 600-900 clients visiting the hotel. To fully support operations during full capacity, the hotel will be required to hire extra 100 employees. Ratios and percentages are used to enhance understanding of labor costs.

Labor hours per room sold. Total labor hours divided by total rooms sold. Hilton Washington ratio is 2000/600. The interpretation is that three clients require 10 hours, which are the hours every employee other than management works daily. The ratio is important as it indicates shortage or excess of labor hours. By following established guidelines, management uses the ratio to hire or dismiss casuals.

Rooms cleaned or credits cleaned per shift. The formula is total rooms cleaned divided by one eight-hour shift. This ratio is mostly used by housekeeping department to determine the efficiency of employees in that department. Washington Hilton guest rooms are cleaned daily in two shifts. The first shift is expected to clean 300 rooms.

Labor hours per customer. Calculated by dividing the total number of customers served in the restaurant by the total number of labor hours. Washington Hilton expects to serve 400 guests daily at the restaurant. Therefore, labor hours per customer equals 2000/400; 5hrs.

The formulas are based on forecasted rooms sold or expected customers. They are a true measure of labor productivities since they relate labor input in labor hours to products and services produced.

 


Date: 2015-01-12; view: 761


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