Chapter 1

Chapter 1Prevention Philosophy

1In This Chapter, You Will Learn:

Why a study of laws related to hospitality is important. The historical origins of the law and its evolutionary nature.A philosophical framework to help prevent legal difficulties before they begin. How to evaluate management actions on an ethical basis.

Chapter Outline

The Future Hospitality Manager and the Legal EnvironmentThe Hospitality Manager and Legal ManagementPreventative Legal ManagementEthics and the Law

The Future Hospitality Manager and the Legal EnvironmentUnique and diverse operating environmentEstimated that 60 - 70 percent of decisions made daily has legal dimensionThose decisions influence the potential for litigation

2Hospitality managers are in a potential position to influence the likelihood of a business or manager becoming the subject of litigation.

The hospitality product can also draw very high customer participation.

Additionally, hospitality service people are more in contact with customers than any other industry.

All of this reflects on the high risk faced by hospitality managers and service staff.

The Future Hospitality Manager and the Legal EnvironmentAttorney - Any person trained and legally authorized to act on behalf of others in matters of the law.Litigation - The act of initiating and carrying on a lawsuit. Often, used to refer to the lawsuit itself.Law - The rules of conduct and responsibility established and enforced by a society

3Hospitality managers dont have to be attorneys (also called lawyers). All you need to do is train yourself to think like one. It is like having a sub-conscious radar operating at all time as and when you supervise or manage a hospitality unit. You may already know what the above terms mean, but do keep them in context as we proceed through this course.

However, the decisions they make may or may not increase their organizations chances of needing the services of an attorney.

As a future hospitality manager, you must:

Know the historical origins of the law.Recognize that laws have an evolutionary nature, based on changes in society.Understand how to use a philosophy of preventative management to manage the legal environment and minimize the chances of litigation.

Historical Origins of the LawCommon Law Laws derived from historical customs and usage of a society, and the decisions by courts when interpreting those customs and usages.Civil Law The body of law (usually in the form of codes or statues) created by governmental entities that are concerned with private rights and remedies, as opposed to criminal matters.

4Common law is the body of law that descended from Great Britain.Is used in the United States and most countries of the British Commonwealth. The Commonwealth is a group of nations or (states) that were part of the erstwhile British Empire. Common law comes from reviewing past litigation and is greatly interested in precedence. Precedence is cases or similar cases that was decided and adjudicated by a previous court of law.

You can see from the above point that that common law is evolutionary. It evolves as the society evolves.

Civil Law descended from the Roman empire and is used by most Western European countries, Latin America and Asia.The form of law is more etched in written laws and codes. Here, judges feel less bound to adjudicate based on precedence as those in common law.

Not to get confused, Civil law in the US is also the term used under the common law system that refers to private law (not criminal).

The Evolutionary Nature of Common LawHospitality Law - Those laws which relate to the industry involved with the provision of food, lodging, travel and entertainment services to its guests and clientsLiable To be legally responsible or obligated.

5Hospitality Law

Not a branch of law by itself.Just an area of industry that has the body of laws applied to it.Also called hospitality-related laws.Important Hospitality managers need to keep abreast of evolutionary changes in laws.

Examples of evolutionary changes in hospitality law

minimum wage revisionslaws that prevent smoking in restaurantsADA access in hospitality establishmentsEtc. etc.

Preventative Legal ManagementSTEMSelectTrainEducateManage and Motivate

6What is STEM?

A process that can be implemented that will reduce employee errors and omissions - and litigation.

Stands for Selection, Teach/Train, Educate and Manage.

The core of a prevention philosophy as this chapter talks about.

Selection Managers can begin reducing litigation by selecting the right employees. Not just hiring anyone.

Train/Teach Develop proper training methods for employees that includes feedback devices such as competency testing and progress. Know what training can do for your establishment.

Educate Managers themselves should stay abreast of developments in a rapidly changing society by keeping in mind the evolutionary nature of the law.

Manage and Motivate Good planning, organizing, controlling and motivating.

SelectSelect the right employee for the specific job.Planning recruitment is keyAvoid last minute hires.No just hire anyone anymore.Match job qualifications, job specifications, and information derived from all candidates.

7Narrow the field to those applicants that most closely fit the profileStart with the closest matchBegin verifying the accuracy of the information provided by the individuals Always call the authors of reference letters to ensure that they did in fact write them. Confirm all educational accomplishments. Have the applicant give authorization in writing for the disclosure of work histories, positions held, performance ratings, reasons for termination, etc., by former employers Ascertain that the authorization specifically authorizes the former employer to disclose the information to you, the prospective employer. If legal, request credit history only for prospective employees applying for control or cash sensitive positions. Screen finalists for current drug usageThis selection process, together with interviewing techniques and personal perceptions, should help one choose the right employee for the right job. Should reduce your fear of litigation and costs while reducing your turnover expense

Train and EducateThese two aspects are interrelated.Train your employees the right way to perform the task(s) the first time. It is easier to train than to retrain.

8

Ensure that the trainer is properly trained himself/herself.Remember, it is the evidentiary trail that wins lawsuits, not who is right or wrong. (What was taught? Who was taught? How was the training conducted? When was the training provided? How did you determine its effectiveness?Educate yourself about new trends, technological innovations, laws, and rules and regulations which impact your industry.Now you are in a better position to train your employees about important changes.You are in a better situation to compete in the industry.

Some Current Litigation TrendsNegligent retentionNegligent supervisionFailure to properly train

9If training feedback shows that the program was ineffective, change the program. If the feedback shows that an individual cannot grasp the skills or follow company guidelines, either retrain or terminate the employee, or you risk a negligent retention claim.

Based on the feedback you received, you should have known that a particular employee would violate company standards and/or regulations and therefore, you should have terminated this employee.

A jury might conclude that termination of the employee would have prevented the incident that prompted the lawsuit. Moral: do the job you are paid to do or prepare to pay the price.

In Bald Head Vs Matvia, the judge dismissed a sexual harassment claim because Bald Head restaurants immediately set up an investigation and then fired the employee accused of sexual harassment. It could not be accused of negligent retention.

Positive Management and Employee LoyaltyHow to become a positive manager and build employee loyalty.raise employee morale and self-esteemreduce turnoverenhance serviceenhance customer satisfactionreduce litigationenhance the bottom line

10Today's culturally diverse workforce will require diverse motivating techniques. Remember that different people are motivated by different things. Money is a perfect example. To some, it is a strong motivating factor; others would prefer time off to additional pay. Know your employees and determine by asking them if you need to what would motivate them, as individuals and as a work team. A sales contest with a nice prize? A parking space with recognition for the employee of the month? A 50 percent discount on meals at the restaurant? A card on their birthday? A pat on the back for a job well done or for a good effort? Taking the time to ask them how their day was? Probably all of the above and more.

Proper Management and MotivationAs a manager - Lead by example!PlanningOrganizingControllingLeading

11Planning: You must know where you are going. You must have an overall mission statement, goals, and a pathway delineated to reach those goals and the ultimate mission of the organization.

Organizing: You must be organized personally and professionally. You must allocate your human and non-human resources efficiently.

Controlling: You must regulate the activities of your business so that the actual performance meets or exceeds the expected goals set forth in your planning function.

Leading: You must motivate others, primarily your employees, to reach the goals of the business has set for itself.

Ethics and the LawEthics Choices of proper conduct made by an individual in his or her relationships with others.Ethical behavior refers to behavior that is considered right.

12Something legal may not be ethical. You will notice this in your experiences gradually. A contract open with vague interpretations is an example that managers can out of their way to exploit.

Ethical Decision-Making Process

Is it legal?Does it hurt anyone?Is it fair?Am I being honest?Would I care if it happened to me?Would I publicize my action?What if everyone did it?