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Grieg Luxury Hotel has divided its downtown Atlanta hotel operations into several cost and revenue centers. One of these cost centers is the Housekeeping Department.
Grieg Luxury Hotel has divided its downtown Atlanta hotel operations into several cost and revenue centers. One of these cost centers is the Housekeeping Department. Mr. Kleen, the head of the department, is responsible for purchasing all cleaning materials, managingallemployees, purchasing cleaning equipment, and other items that are directly related to the department. Mr. Kleen is evaluated on how well he keeps his costs in line with his budget. For the month of May of the current year, he received the attached performance report from the accounting department of the hotel. The general manager ofthe hotel wrote a brief memo to Mr. Kleen saying that "although you are not too far over budget, I expect my department managers to meet the budget that I have given them or stay under budget. You need to keep that in mind for future months." REQUIRED: (1) Comment on the format of the performance report prepared for the Housekeeping Department. (2) Redraft the performance report in a format that conforms to good principles of responsibility reporting (3) What other problems do you feel that the hotel may have in its performance evaluation of its departments? Explain
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