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Proceedings of the First Hospitality and Leisure: Business Advances and Applied Research Conference Edited by Joseph S Chen, Thouraya Gherissi-Labben and Andrew Mungall July 5-6, 2007 Lausanne, Switzerland THE EDITORIAL NOTE The Hospitality and Leisure: Business Advances and Applied Research Conference is a new conference concept aiming at creating a community of mutual learning between academics and professionals of the tourism, hospitality and leisure sector For its first edition, we are proud to have received 58 papers, coming from different parts of the world: 19 from Europe, 20 from North America and 19 from Asia and others These are rather encouraging figures for the organizational committee of this new conference as they reflect an emerging interest of academics and professionals of the tourism, hospitality and leisure sector for this new conference concept For research and poster presentations, the paper selection is architected by a peer-review process involving a group of prominent scholars from hospitality, tourism and leisure domains For professional presentations, the scientific committee accepts the papers best matching the aims of the conference and its themes, and putting forward out of the ordinary subjects This selection process resulted to 21 research papers and poster papers Without including the professional speakers of the plenary sessions, there are also professional contributions All these papers and contributions are included in this publication, which is keen to provide an overview of their relevant propositions, methods and implications Therefore, the information provided in the proceedings could be terse and abstract For those being interested in acquiring further information, please contact the authors directly Lastly, we are grateful to the authors for sharing their view on pivotal, timely research ideas and innovative practices Hopefully, we could protract our venture and render other forums stimulating new research ideas and benchmarking the practices in the years to come The organizational Committee Joseph S Chen, PhD., Conference co-chair Thouraya Gherissi Labben, PhD., Conference co-chair Andrew Mungall, MSc., Conference coordinator Myriam McAlinden, administrative coordinator Christian Ritter, technical coordinator I TABLE OF CONTENTS THE EDITORIAL NOTE I FULL RESEARCH PAPERS INNOVATION IN THE GAMING INDUSTRY: A STUDY IN NATIVE AMERICAN CASINOS IN CALIFORNIA Randolph Baker and Michael Ottenbacher PREDICTORS OF TURNOVER INTENTIONS OF HIGHLY-EDUCATED EMPLOYEES IN THE HOSPITALITY INDUSTRY Bob Blomme, Debbie Tromp and Arian van Rheede 12 APPLYING A GEOGRAPHIC INFORMATION SYSTEM TO TRAVEL PATTERN MARKET RESEARCH DATA Charles Chancellor 26 WELLNESS TOURISM: MEASURING CONSUMERS’ QUALITY OF LIFE Joseph S Chen 32 EXPLORING UNSPOKEN WORDS: USING ZMET TO DEPICT FAMILY VACATIONER MENTAL MODELS Po-Ju Chen 39 SERVICE QUALITY DIMENSIONS OF PLEASANT AND UNPLEASANT SERVICE EXPERIENCES AT A RESTAURANT Shu T Cole and Myung-Ja Cho 50 THE IMPACT OF CONTEXTUAL FEATURES ON ORGANIZATIONAL DECISIONMAKING TACTICS Robert J Harrington, Michael Ottenbacher and Evelina Rog 58 THE HOSPITALITY INDUSTRY IN TIMES OF CRISIS: AN ASSESSMENT OF THE RELATIONSHIP BETWEEN OWNERS AND WORKERS DURING THE JULY WAR IN LEBANON Hussin Jose Hejase, Elie Abou Chedid and Ziad Haddad 68 THE DEVELOPMENT OF A SCALE FOR CREATIVE CULINARY PRODUCTS Jeou-Shyan Horng, Lin Lin and Ming-Huei Lee 79 DEVELOPING A NEW HOTEL PERFORMANCE MEASUREMENT SYSTEM: APPLICATION OF THE BALANCED-SCORE CARD AND THE FUZZY-ANALYTIC HIERARCHY PROCESS MODEL Woody G Kim and Suna Lee 89 II FACTORS ENHANCING BICYCLE TOURING: AN EXPLORATORY CASE STUDY Willy Legrand and Philip Sloan 98 SERVICE PERFORMANCE MEASUREMENT: DEVELOPING CUSTOMER PERSPECTIVE CALCULATORS FOR THE HOTEL INDUSTRY Choon-Chiang Leong 109 WHAT HAS BEEN DONE BY SWISS HOTELIERS TO HOST SENIOR GUESTS? Andrew Mungall, Thouraya Gherissi Labben and Joseph Chen 119 AN INVESTIGATION OF THE RELATIONSHIPS BETWEEN TECHNOLOGY PARTNERS AND THE HOTEL SECTOR: IDENTIFYING AND MEASURING THE “VALUE-ADDED” ELEMENTS Hilary Murphy 130 AN EXPLORATORY CASE STUDY OF FACTORS THAT IMPACT THE TURNOVER INTENTIONS OF MULTI-UNIT MANAGERS IN THE CASUAL THEME SEGMENT OF THE US RESTAURANT INDUSTRY Kevin S Murphy, Robin B DiPietro, Manuel Rivera and Christopher C Muller 140 GENDER EFFECTS ON TRUST FORMATION IN A SERVICE FAILURE SITUATION Karthik Namasivayam and Nicole Newcomer 150 ENCOURAGING EMPLOYEE FLEXIBILITY THROUGH EMPOWERMENT– PRACTICAL IMPLICATIONS FOR INTERNATIONAL HOSPITALITY FIRMS Steffen Raub 159 EXPLORING THE FACTORS AFFECTING HOTEL OUTSOURCING: TAIWAN CASE Allan Yen-Lun Su, Liang-Ju He and Chin-Sheng Wan 170 A MODEL OF HOW HOTEL MANAGERS PERCEIVE, INTERPRET AND STRATEGICALLY RESPOND TO ENVIRONMENTAL CHANGES Kristian J Sund 180 INTEGRATING AHP AND DATA MINING TECHNIQUE TO IDENTIFY VALUABLE TRAVELER: A CASE STUDY OF TAIWANESE OUTBOUND TRAVEL Jehn-Yih Wong, Huei-Ju Chen and Pi-Heng Chung 194 THE EMERGING OF MAINLAND CHINESE OUTBOUND TRAVEL AND ITS IMPLICATIONS TO THE TOURISM INDUSTRY IN ASIA: EVIDENCE FROM ZERO-BASED TOURS Hanqin Qiu Zhang, York Yan Q and Yiping Li 202 III POSTER PAPERS MEASURING CUSTOMER-BASED BRAND EQUITY ON FIRMS’ PERFORMANCE OF INTERNATIONAL TOURIST HOTELS IN TAIWAN Te-Yi Chang and Jui-Man Hsu 211 EMPOWERMENT IN CHINA’S HOSPITALITY INDUSTRY Ben Dewald 216 DEVELOPING AND ASSESSING GRADUATE EMPLOYABILITY THROUGH METACOGNITION Paul Fynn 222 COMPARATIVE STUDY OF INTERNATIONAL LEGAL SYSTEMS AND THE RECEPTIVITY OF TOURISM Bruce Hronek, Amanda Cecil and Shu Cole 227 ONLINE DISTRIBUTION: WHO IS IN CONTROL? Woody G Kim, Gabriel Gazzol and Bill Ryan 232 EMOTIONAL LABOR IN THE HOSPITALITY INDUSTRY: AN INVESTIGATION INTO COPING STRATEGIES Rosemarie Krebs 237 THE QUALITY OF MULTI SERVICES TOURIST PRODUCTS: THE CASE OF CRUISE SERVICES Céline Le Corroller 242 THE STUDY OF SERVICE QUALITY OF INTERNATIONAL CONFERENCE VENUE IN TAIWAN Ming-Huei Lee, Ling-Chen Chang and Jeou-Shyan Horng 247 PROFESSIONAL PAPERS A COMPARISON OF HOTEL REAL ESTATE YIELDS VERSUS OTHER CLASSES OF REAL ESTATE FOR 2005 AND 2006 BASED ON A SAMPLE OF PUBLIC REAL ESTATE COMPANIES Emmanuelle Beaufils 251 HOSPITALITY FOR THE RICH AND FAMOUS: A COMPARATIVE ASSESSMENT OF LEBANON AND EUROPE Elie Abou Chedid, Hussin Jose Hejase and Ziad Haddad 254 IV TOURISM AS AN ENGINE OF ECONOMIC GROWTH: EVIDENCE FROM HONG KONG Jang C Jin 259 OWNERSHIP REFORM OF STATE-OWNED HOTELS IN CHINA: LOGIC, PROBLEMS & SOLUTIONS Han Shen and Kaye Chon 264 PROFESSIONAL PRESENTATION OUTLINES AN EXAMINATION OF SLOT MACHINE PERFORMANCE BASED ON CASINO FLOOR LOCATION Karl D Brandmeir 270 PIMP MY NORDIC WALKING STICK: INNOVATIVE CONCEPTS FOR THE HEUVELLAND HOTELGROUP Ilja Castermans-Godfried 272 BEYOND BUSINESS ETHICS: INTEGRATING SOCIAL RESPONSIBILITY BEST PRACTICES THROUGH A HOSPITALITY/LEISURE ORGANIZATION Pamela Cummings and Phil Wescott 275 BEST PRACTICES IN EMPLOYEE DISPUTE RESOLUTION: AN ANALYSIS OF MANDATORY EMPLOYMENT ARBITRATION William B Werner and Robert H Woods 283 V FULL RESEARCH PAPERS INNOVATION IN THE GAMING INDUSTRY: A STUDY IN NATIVE AMERICAN CASINOS IN CALIFORNIA Randolph Baker, J.D School of Hospitality and Tourism Management San Diego State University 5500 Campanile Drive, PSFA 436 San Diego, California 92812-4514, USA Tel.:619-594-8500 Fax: 619-594-4443 Email: rbaker@mail.sdsu.edu Michael Ottenbacher, PhD School of Hospitality and Tourism Management San Diego State University 5500 Campanile Drive, PSFA 436 San Diego, California 92812-4514, USA Tel.: 619-594-8499 Fax: 619-594-4443 Email: mottenba@mail.sdsu.edu ABSTRACT The purpose of this study is to investigate the under-researched but economically vital hospitality segment that is Native American gaming in California, focusing on its innovative contributions to a fast-growing overall industry Six major innovations pioneered in such Native American casinos are now being adopted by commercial casinos both in the U.S and internationally These include: (1) ticket-in ticket-out (TITO) technology; (2) player tracking cards; (3) server-based games; (4) more generous complementaries; (5) family friendly labor policies; and (6) computerized gaming chips The trends noted in this study may well impact future gaming developments internationally INTRODUCTION Innovation is not a concept that one automatically associates with Native American casinos in the United States, but evidence suggests strongly that such venues – particularly in the state of California – are a fertile source of ideas and practices that are now spreading into commercial domestic and international gambling enterprises Casino gaming itself, of course, is the fastest growing segment of the hospitality and leisure industry in the United States today and tribal gaming is the fastest-growing component thereof Taking advantage of interpretations of the United States Constitution which give indigenous peoples “dependent sovereignty” under clearly defined circumstances (Light and Rand 2005), Indian gaming has grown so quickly that its revenues may surpass those of commercial gaming in the U.S in this decade Annual revenues from tribal gaming on the 56 California reservations which have casino entertainment, for example, now cumulatively exceed those of the Las Vegas Strip (Cooper 2007) Nationwide, Indian gaming on approximately 230 Indian reservations in 30 states may bring in as much as $28 billion in 2007– up from under $100 million just 20 years ago This compares with commercial gaming that is expected to report total revenues of about $32 billion in 2006 Explosive growth of Indian gaming – and the innovation that has been part of it – was neither planned nor expected sought out to be innovative Indeed, few Indian tribes in the casino industry consciously All that most tribal leaders sought to was to lift their people out of endemic poverty through an economic development activity that actually attracted non-Indians to their reservation What they did not know was that there has been an incredibly high unmet demand for gambling in the U.S for decades Thus, given de facto monopolies in most markets, Indian tribes with any proximity at all to an urban area have succeeded, often “beyond anyone’s wildest imagination.” Of just under 900 casinos in the United States – 406 Native American at the beginning of 2006 vis-à-vis 455 commercial (AGA 2006) – two of the three most profitable are Indian success is due to several factors, including favorable tax treatment Their Technically, they are exempt from federal and state taxation (because of the “sovereign” status of Indian tribes on reservations), but they share revenues with state governments because of various political pressures that have been brought to bear Taxation may be a component of the success of these casinos, but often overlooked are two other elements: monopoly or quasi-monopoly status and Native Americans’ own willingness and ability to innovate Indian casinos in states such as California and Connecticut have minimal or no commercial competition and access to markets of millions of persons Meanwhile, Indian casinos because of their unique status are often the venue for pacesetting innovation both for the gaming and more widespread service industries The success of Indian casinos and the innovation which now characterizes many of them has been unnoticed by the public-at-large and understudied by the academic community The purpose of this study is to investigate this under-researched but economically vital hospitality segment, noting its innovative contributions to a fast-growing overall industry In addition to almost guaranteeing profits in casinos within an easy drive of cities, monopoly produces other benefits, including the ability to experiment with new technologies and with new games for those properties wise enough to realize the advantages of doing so Tribal casinos thus expanded the gaming market by their very presence, meeting unsatisfied demand In the process, they trained customers how to use new technologies because those customers had no choice but to so if they wanted to gamble In time, however, those same customers became more sophisticated and far more demanding: they wanted the newest slots technologies, the newest games, and the highest levels of service And, in many cases, they got them – resulting in at least six innovations to be discussed below that are setting the pace today not only for Indian casinos but also for those in the commercial casino industry as well What Is Indian Gaming? Three terms are interchangeably used by industry professionals to describe gambling on reservations of indigenous peoples – “tribal gaming,” “Indian gaming,” gaming” (Rand and Light 2006) and “Native American This paper will use them inter-changeably as well Federal law uses the term “Indian gaming,” which it defines as “gaming conducted by an Indian tribe on Indian lands.” Such lands are restricted to federally recognized reservations, “traditional” Indian properties, and land held in trust by the U.S government for the benefit of members of a defined population of citizens of Native American heritage “Tribe” is further defined as an organized group that is eligible for federal Indian programs and services and that has been so recognized by the U.S government for that purpose and for possession powers of self-government Although seemingly self-evident, the definitions have proven to be significant because not all bands of Indians meet the tests and are thus not eligible for recognition (and the right to operate a casino that more than 200 putative tribes now seek) Approximately 4.1 million persons in the United States identify themselves as having Indian or part-Indian ethnicity (Ogunwole 2002) Of these, however, only about 440,000 actually live on federally recognized reservations The controlling legislation for Native American gaming on such reservations is the Indian Gaming Regulatory Act (IGRA) of 1988, which codified and expanded a series of federal court decisions Those decisions, culminating in Cabazon Band of Mission Indians v State of PIMP MY NORDIC WALKING STICK: INNOVATIVE CONCEPTS FOR THE HEUVELLAND HOTEL GROUP Ilja Castermans-Godfried Zuyd University, Netherlands Introduction • Goals province of Limburg – Number in Holland – 25% more “silver” tourists • “Heerlijkheid Heuvelland” (Land of Hills) – New markets – Major projects Questions • • • Anticipate Adaptations Innovative concepts Program • • • • • Research design External analysis Hospitality audit Heuvelland Hotel group Benchmark Innovative concepts Research design • General objective – Stimulate MSE to satisfy needs and wants of “silver” tourists • Projects – External analysis Heuvelland – Hospitality audit “silver” tourists Heuvelland Hotel Group – Benchmark industry and cooperation – Innovative concepts External analysis • Objective – Analysis of major problems within tourist branch, accent on problems in welcoming 272 “silver” tourist • Qualitative research – Round table conference – Interviews with councils, entrepreneurs, nature organisations, tourist information organisations Results • • • • • Entrepreneurs are too individualistic and short term oriented Explosive augmentation of laws and rules No cooperation among councils Infrastructure Tourist information organisations Recommendations • • • • Coordination & cooperation Integration of internal and external environment Communication and information Research Hospitality audit • Objective – Mapping needs and wants of “silver” tourist and status quo • Quantitative research – Questionnaire among “silver” guests of 12 hotels Heuvelland Hotel Group • Qualitative research – Mystery guest visits Heuvelland Hotel Group Results quantitative research • The Internet and mouth-to-mouth advertising are the principal communication tools “Mediors” (people aged between 50 and 65) are particularly adept at using the Internet • Mediors assigned a significantly lower score to the price/quality ratio than seniors (65+) The score of 8.2 is nevertheless respectable The group of seniors awarded a score of 8.6 to the price/quality ratio • With regard to the different needs of mediors and seniors, we can state that the first group is particularly interested in elevated beds, while the second group welcomes the availability of smoke-free rooms and elevators • The majority of guests are satisfied to extremely satisfied with the quality of the services provided by Heuvelland Hotels Most hotels manage to exceed expectations • Quality improvements could however be made to the design and size of the rooms 273 Recommendations • The present level of services must, as a minimum, be maintained • The hotels should treat their guests in a genuinely friendly manner Staff must be made aware of the importance of customer service and be encouraged to prioritize customer satisfaction • To respond to the needs of the growing target group of active mediors, it is recommended that marketing efforts are focused on this target group in particular • The website must be modified in such a way that it whets the appetite of this target group • Marketing communications must emphasise those aspects that the target group deems essential (see the research findings, i.e easy access to elevators, comfortable beds and smoke-free rooms) • The rooms must be redesigned where (financially) viable, e.g more and brighter lights, comfortable beds, sufficient seating arrangements, hairdryers and (bigger) TV, Internet access and sufficient room in the bathrooms to be able to support themselves Conclusions mysteryguest survey • • • Customer service and facilities meet expectations Insufficient attention is paid to establishing a personal rapport with new customers We can thus identify a loyalty issue Benchmark industry New website • www.heuvellandhotels.nl New website • www.heuvellandhotels.nl Innovative concepts • • • • Heuvelland Passport Quartetgame Holidayplanner Pimp my Nordic Walking Stick 274 BEYOND BUSINESS ETHICS: INTEGRATING SOCIAL RESPONSIBILITY BEST PRACTICES THROUGHOUT A HOSPITALITY/LEISURE ORGANIZATION Pamela Cummings, Ph.D and Phil Wescott University of Delaware, USA Who We Are „ Pam is an academic expert in Hospitality Management Education, Multi-Cultural Communications, and Service Learning „ Phil is a Strategic Marketing Consultant, experienced corporate executive, and Advertising and Public Relations Professor Our Current Academic and Research Interests „ Pam – Humanitarian Hospitality, Multi-Cultural and Diversity Education, Training for Civility, Domestically and Abroad „ Phil – Leadership Communications, Non-Profit Organizations, Integrated Marketing Communications Campaigns Our Professional Interests „ Pam is interested in developing young talent well-prepared for today’s global hospitality industry „ Phil is interested in how for-profit firms can transform their organizational culture to exhibit community sensibilities like non-profit organizations must Why This Topic is Important „ The World is becoming both flat and transparent … the paradigm changed „ Ethical breakdowns cause loss-of-face for organizations and individuals „ Firms committed to ethical behavior outperform firms not so committed „ Demonstrating deep-seated Social Responsibility is a sustainable, competitive advantage for many firms Defining “Business Ethics” „ Business Ethics is the heart and soul of a company’s culture – doing the right thing „ Principles of Business Ethics: • • • • Be trustful Keep an open mind Meet all obligations – over-deliver on promises Have clear (transparent) documents 275 • Be a responsible community contributor • Maintain accounting control • Show professional respect to others Defining “Social Responsibility” „ How companies manage their economic, social, and environmental impacts „ What companies DO with their profits … and also HOW they make them „ Society now expects companies to demonstrate CSR leadership „ CSR enhances workforce retention and long-term shareholder value Responsible for what ? „ Workplace issues (training, rewards) „ Human rights (cross-cultural norms) „ Impact on the community „ Reputation of the brand „ Ethical investment „ Environmental responsibility, policies „ Ethics and corporate governance „ Health & Safety Responsible to whom ? „ Investors „ Customers / Guests „ Employees „ Business Partners/Suppliers „ Local Communities „ The Environment „ Society at-large The underlying premise „ When a for-profit enterprise contributes portions of its human and financial resources to the community in which it operates, the resulting positive relationships benefit the enterprise financially and reputationally From Concept to Application „ A unified organizational approach „ A fundamental culture of compliance „ Emerging Corporate Responsibility Officer (CRO) & Chief Ethics Officer „ CEO or Managing Director must be committed, not merely “involved” „ Internal communications programming must be consistent and set clear behavioral expectations 276 Who is Committed to CSR ? „ Leading Global Hospitality Organizations, e.g., • Marriott Corporation • YUM Brands • Many other major firms / brands „ Other Leading Global Enterprises…e.g., • General Electric “Ecomagination” - http://www.ge.com/en/citizenship/spotlight/index.htm • Novartis – www.corporatecitizenship.novartis.com • Nestle - www.nestle.com/water What is the R-O-I / Payback ? „ “We believe that the true test of a business is whether it creates value for society over the long term.” Peter Brabeck-Letmathe, Nestle Chairman and CEO „ “…the GE Commitment to products and services that are as economically advantageous as they are ecologically sound.” (Plus four specific commitments) • Ecomagination: GE commitment Report Hospitality Case History # „ Marriott International – „ http://www.marriott.com/corporateinfo/culture/ • SPIRIT TO SERVE • Environmentally „ True Green – Tip of the Week „ Environmental Awareness Month – River Thames • River Thames Cleanup • Green Products Fair, Bethesda „ Recycling „ YouTube Contest for Conservation Marriott, continued „ Community Involvement • Habitat for Humanity • American Red Cross • International Red Cross • America’s 2nd Harvest • The Nation’s Food Bank Network • United Way • Children’s Miracle Network ($43 Million) 277 Marriott, continued „ Youth Programs • Seven major Youth Development Programs, America’s Promise, etc • International Youth Career Initiatives „ Thailand, Romania, Brazil, Australia and Poland • Safe Kids - China Marriott, continued „ Associate Involvement • Spirit to Serve Our Communities Days • Special Community Service Projects • Volunteer Centers „ Disaster Relief • Financial Contributions • Time and Energy • Associate Leave Sharing Marriott, continued „ Support for People with Disabilities • Hire for Reservation Centers • Train for Service Animals • Marriott Foundation „ „ Have served 10,000 youth since 1989 Diversity • Three Diversity Councils • Lead the nation in minority ownership • 60% of employees are minorities and 55.7% of supervisors are minorities, companywide Case History # „ YUM! KFC, Taco Bell, Pizza Hut, Long John Silver’s, A&W Root Beer brands http://www.yum.com/responsibility/intphil.asp • Employee Volunteerism – focused on children and teens „ Pizza Hut – Largest perishable food donations in the world - 12 million pounds a year! „ Pizza Hut BOOK IT! Largest reading motivation program in the world! When a child reaches her monthly goal, she receives a free personal pizza „ KFC Scholarships – 50 annually worth $20,000 each 278 YUM! continued • Taco Bell Teen Programs – Boys & Girls Clubs of America – contributions over $17 million since 1995 „ International • China Youth Development Foundation CYDF – KFC China First Light Foundation, Dollars for scholarships • UK – Childline – free 24-hour helpline – trained volunteers for comfort, advice, protection YUM! continued • Thailand – KFC & Pizza Hut – “We Do Society Right” program – build elementary schools – 10 new ones since year 2000 – every two years visit schools and give new amenities like recreational equipment • Also provides scholarships • Medical Equipment for those in need • Trips to Amusement Parks YUM! continued • Australia – Yum! Restaurants International (YRI) „ Initiated the Millennium Foundation – raises money to support medical research (YRI) „ REACH – organization aimed at reducing youth suicide with peer group support and teaching life skills to teenagers (YRI) „ KFC Victoria employees help the White Lion program which provides vocational training for teens from the juvenile justice system YUM! continued „ Yum! Brands Foundation • Dare-to-Care Food Bank „ Donate $1,000,000 annually – this food bank serves over 100,000 meals to children annually and 10,000 meals each month to homebound elderly people • Employee Donations/Service „ Any employee contribution to any charity is matched by Yum! „ If an employee serves on the board of a nonprofit organization, Yum! Will provide financial support to that organization Yum! Continued „ Diversity • Yum! has been recognized by Black Enterprises and Fortune’s Top 50 as best organizations for minorities • Number ONE for Managerial Diversity 279 • Yum! Holds memberships in several minority organizations to promote community involvement and to help identify minority suppliers, employees and guests Case History # „ White Dog Café – Local Philadelphia Market Economic Activism „ Foster a regional economy that is inclusive, just, environmentally healthy, and based on local business ownership „ Create ownership opportunities for those left out of the global economy Case History # „ Harry’s Savoy Grille / Harry’s Seafood Grille – Local Restaurants • Owner Xavier Teixido is active and committed to many charitable causes, locally, statewide, nationally • established a culture of community service at Harry's which offers both encouragement and bonuses to employees who serve the community • Part of the employment agreement Harry’s Savoy Grill, continued „ All employees work together on community projects, including the Ministry of Caring dinner „ All employees are expected to choose their own preferred community service on which to work, as part of their job description „ There are ongoing projects and special community events for which Xavier and his employees volunteer „ Xavier Teixido served as the Chairman of the Board of the National Restaurant Association and is a highly visible national figure in the restaurant industry Lessons We Derive „ The belief set and personal values of the CEO [or Managing Director] set the organization’s cultural tone „ The “Dominant Coalition “ [senior management team] must understand > accept > endorse > and act on the commitment to Ethics … and to CSR „ A system of “authentic” rewards for CSR compliance / outstanding performance helps sustain the commitment How To Embrace CSR „ Develop and Articulate the VISION „ Ensure direct and regular access to the corner office „ Set up the infrastructure, tracking, and reward systems „ Track and report regularly on CSR successes, including hearing from community beneficiaries How NOT to Embrace CSR 280 „ Fail to articulate a clear GOAL and set of specific CSR expectations „ Fail to assign operational responsibilities and accountability „ Allow broad latitude in interpreting CSR by store managers, others „ Don’t commit to regular, focused CSR communications throughout the organization „ Separate CSR from your Marketing effort How to Measure R-O-R* „ * = Return-on-Relationships, a key concept in building Revenues and Reputations „ Choose carefully your strategically important affinity partners „ Develop both qualitative and quantitative measurements for your organization and for the community beneficiaries you are helping The Future of CSR „ Business Fad or Enduring Trend ? „ It is part of thinking more strategically and globally, even for the small enterprise „ It lends itself to building team competencies for broad stakeholder engagement „ It will earn your organization powerful word-of-mouth testimonials Some Do’s and Don’ts for Hospitality CEOs „ It is all about YOU! • You have to buy into this mindset • Think beyond donations • Don’t Treat CSR as an “Add-On” • Walk the Talk consistently • Be transparent (a possible mind shift) • Think about CSR from a strategic perspective … and look for a high rate of return in benefits to your company More Do’s and Don’ts for Hospitality CEOs • Collaborate with all stakeholders • Look at your community needs with “new eyes” – Community “Plunge” • Leverage Philanthropic Resources • Respond to local crises • Allow release time for employees who wish to volunteer • Support diversity throughout your organization How Stakeholders Benefit „ Stakeholders include: • Investors, Employees, Consumers, Suppliers, the community, government agencies, regulators and NGOs 281 „ Benefits include: • Profit, Sustainability, Quality, Responsibly Marketed Products, Constructive Partnerships, Long-term Commitment, and Employee Esprit Specific Community Benefits „ Hospitality companies are sharing their resources and assets (people, products, services, expertise, technology and influence) on the problems affecting their communities and throughout the world • Disaster Aid • Hunger Programs • Children and Teens in Need • International Projects • People with Disabilities • Housing Issues/Needs • http://www.restaurant.org/community/rna/finalists.cfm Check out this inspiring website! Your Questions … Your Comments „ About Business Ethics … „ About Social Responsibility … „ About Leading the Organizational Culture … „ Or about other related topics … Thank You „ Our e-mail contact information • cummings@udel.edu • phil@wescottconsulting.com 282 BEST PRACTICES IN EMPLOYEE DISPUTE RESOLUTION: AN ANALYSIS OF MANDATORY EMPLOYMENT ARBITRATION William B Werner, JD and Robert H Woods, PhD University of Nevada, Las Vegas, USA Mandatory Arbitration in Employment „ Organized labor agreements „ Virtually 100% of US union labor contracts require final and binding arbitration of all employee claims „ „ Experienced arbitrators with broad discretion „ Repeat participants „ Contractual grievance procedures and remedies First enforced in US courts in 1991 for statutory claims of all employees „ Mandatory arbitration agreement precluded employee’s lawsuit for violation of federal civil rights laws „ Employer can legally discharge for refusal to sign the arbitration agreement Purposes of Compelling Arbitration in Nonunion Workplaces (Assumes some employees would not otherwise agree) „ „ Reduce employment litigation „ The most common case in US federal court system is for employment discrimination „ Reduces plaintiff’s counsel’s motivation to accept the case Cost reduction „ „ Streamlined procedure reduces attorneys’ fees Risk reduction „ Presumes arbitrators are less likely to award undeserved or excessive damages (limits were substantially increased in 1991) „ „ Opportunity to take unfair advantage Expediency „ – 12 months vs – years Limitations: The Employee’s Rights „ Impartial arbitrator „ „ Number of private employment arbitrators has increased tenfold since 1991 Procedural due process 283 „ Opportunity to conduct limited discovery, to present relevant evidence, and to cross-examine witnesses „ Equal distribution of arbitration fees and costs „ „ Availability of all legal remedies „ „ Typically $2,000 to $5,000 $300,000 per claim + pendent claims Limited right of appeal „ Appellate deference to private contractual arbitrators exceeds that to federal judges Legal Perspective of Mandatory Employment Arbitration: Pros and Cons Organizational Perspective of Mandatory Employment Arbitration „ Equity employees expect equity from their employers „ Compulsory arbitration is perceived as less equitable than other forms of dispute resolution, particularly when no consideration is given for the agreement „ Discharged employees are more likely to file a lawsuit if they perceive inequity in the employment relationship „ „ Employee satisfaction depends on a sense of equity in workplace „ Peer review creates a sense of fairness, even when non-binding „ Especially useful to efficiently resolve lesser issues What employees want: „ For many years we have known that employees want essentially what managers want: opportunities for promotion, recognition for work well done, security, fairness, etc… „ Peer review dispute resolution promotes the sense of security and fairness for all employees Benefits of Equitable Employment Dispute Resolution „ Increased job security and commitment „ „ Improved quality of customer service and job performance „ „ „ Reduced turnover Satisfied employees are more likely to deliver intended quality of service Reduced motivation to unionize „ Perceived inequity and job insecurity are leading arguments for union organization „ Trust begets trust Increased employee involvement „ Knowledge of rules „ Elimination third party intervention in workplace disputes Potential Negative Effects of Mandatory Employment Arbitration 284 „ „ Few employees read or understand the arbitration agreement when they sign it „ Pre-dispute conflicts are rare „ Post-dispute resistance is frequent Reduced motivation or ability to resolve ordinary workplace disputes „ Adversarial procedure in a different forum „ Managers assume defensive posture „ Depends upon unknown third party to resolve workplace disputes that are likely to recur „ Requires or inspires legal representation Elements of an Equitable Dispute Resolution Process „ „ Procedural Fairness „ Formality without undue burdens „ Access to relevant witnesses and evidence „ Opportunity to be heard Substantive Fairness „ Unbiased and disinterested „ Expediency „ Peer Influence „ „ Panel review simulates jury trial „ Arbitration simulates bench trial Voluntary Participation Peer influence and voluntary participation improve employment dispute resolution „ Places employees in position of control „ Requires and enhances mutual trust „ Voluntary participation increases commitment to the outcome „ Eliminates litigation over the validity and enforcement of the arbitration agreement Conclusions „ Mandatory employment arbitration is likely to produce savings only for employers who experience frequent employment litigation „ Employers are likely to experience other effects of a mandatory employment arbitration program: „ Distrust „ Sense of inequity „ Decreased sense of job security Conclusions „ Even employers who elect to implement mandatory arbitration can realize more benefit by effectively resolving workplace disputes before the arbitration or legal system is ever invoked 285 „ An employee determined to sue will not likely be dissuaded from seeking counsel and proceeding „ Voluntary peer review procedures which effectively resolve disputes produce greater savings and other benefits without risking adverse consequences „ The employee’s “day in court” Model Non-Compulsory Dispute Resolution Procedure „ Immediate meeting with decision-making manager or supervisor „ Neutral intervention „ Opportunity for executive review „ Peer-Review hearing „ Employee advocate or assistance „ Supervisory and non-supervisory panelists „ Fair opportunity to present evidence „ No third party participation „ Limited potential award Selected Bibliography „ Bales, R.A (1997) Compulsory Arbitration: The Grand Experiment in Employment Ithaca, NY: ILR Press „ Berman, D & McCabe, D.M (2006) Compulsory arbitration in nonunion employee relations: A strategic ethical analysis Journal of Business Ethics 66, 197-206 „ Eaton, A.E & Keefe, J.H., eds (1999) Employment Dispute Resolution and Worker Rights in the Changing Workplace Champaign, IL: Industrial Relations Research Association „ Gleason, S.E., ed (1997) Workplace Dispute Resolution: Directions for the Twenty-First Century East Lansing, MI: Michigan State University Press Bibliography continued „ Klaas, B.S., Mahoney, D., &Wheeler, H.N (2006) Decision-making about workplace disputes Industrial Relations 45(1), 68-95 „ Seeber, R.L & Lipsky, D.B (2006) The ascendancy of employment arbitrators in US employment relations: A new actor in the American system? British Journal of Industrial Relations 44(4), 719-756 „ Sherwyn, D (2006) Mandatory arbitration: Why alternative dispute resolution may be the most equitable way to resolve discrimination claims Cornell Hospitality Report 6(9) Ithaca, NY: CHR Reports „ Wunnava, P.V., ed (2004) The Changing Role of Unions: New Forms of Representation Armonk, New York: M.E Sharpe 286 ... task of a family vacation was the decision of having a vacation and the budget while almost half of the Participants had taken the yearly family vacation planning as a family ritual For example,... per scale, using Cronbach’s alphas, and means and standard deviations The reliabilities of the scales are more than sufficient, as all Cronbach’s alphas are well above 75 The Statistical Package... Psychological contracts and temporary workers: The assumption of the transactional contract Paper presented at the annual meeting of the Society for Industrial and Organizational Psychology, Atlanta, GA