The concept of profit margin as a tool of information support for management decisions and stimulation of personnel of enterprises of hotel business

Abstract

The article explores the possibility of introducing the concept of profit margin at the enterprises of the hotel and restaurant business as a tool for information and analytical support for making managerial decisions, evaluating activities and stimulating the management personnel of enterprises in the sphere of hotel and restaurant business. The structure of the technological process of production of accommodation services at the enterprises of hotel and restaurant business is analyzed. It is substantiated that the structure of the material transformation process of the hotel has a decisive influence on its organizational structure. It has been established that the most appropriate calculation unit for the accommodation service is the “bed-days” indicator, differentiated in the context of individual positions of the hotel room stock. It is substantiated that from the point of view of stimulating the effective work of the management of the lower hierarchical levels, the divisional organizational structure and divisional-level profit/investment centers formed on its basis have an undeniable advantage over the functional organizational structure, since the division manager receives the authority to influence the entire range of monetary indicators (functional expenses and income), which form the integral result of activity in the form of profit. It is proved that the formation of a variable component of remuneration for the management of responsibility centers of the 2nd hierarchical level based on the indicator of divisional profit margin minus controlled fixed and discretionary costs makes it possible to optimally link the efficiency of their work with the level of their monetary remuneration. There are highlighted the shortcomings of the concept of gross and operating profit as criteria for making managerial decisions, tools for evaluating activities and stimulating managerial personnel, which consist in the presence in the calculation structure of these indicators of irrelevant and uncontrolled items of expenditure.