The Empire Hotel is a full-service hotel in a large city. Empire is organized into three departments that are treated as investment centers. Budget information for the coming year for these three departments is shown as follows. The managers of each of the departments are evaluated and bonuses are awarded each year based on ROI.

Empire Hotel
	Hotel Rooms				Restaurants				Health Spa
Average investment	$	10,000,000			$	6,250,000			$	1,250,000
Sales revenue	$	11,250,000			$	2,500,000			$	800,000
Operating expenses		9,450,000				1,625,000				650,000
Operating earnings	$	1,800,000			$	875,000			$	150,000

The manager of the restaurants department complains that sales and resulting earnings for the restaurants are not higher due to the poor reputation of the hotel rooms department. Because the hotel rooms department does not have the best housekeeping staff, the overall reputation of the hotel is slipping. The manager of the hotel rooms department counters that, to keep operating expenses under control and improve ROI, wages for housekeeping have been cut. The manager of the restaurants department has requested that other evaluation techniques such as residual income or a balanced scorecard approach be considered in an effort to resolve this problem.

Required:

Consider which balanced scorecard measures might be useful to the Empire Hotel in evaluating the Hotel Rooms Department. a. Which organizational goals should be set to improve the reputation of the hotel rooms? (You may select more than one answer.)

__ Cleanliness __ Change in satisfaction per dollar of supplies __ Value per dollar __ Supervisory time. __ Attractiveness __ Cleaning supplies used __ Staff Friendliness

b. Which measurement and resources can be employed to measure whether goals are being met? (You may select more than one answer.)

__ Surveys of customer satisfaction __ Value per dollar __ Cleaning supplies used __ Supervisory time __ Time of housekeeping per room __ Investment in maintenence

c. Which items provide the feedback necessary to evaluate and reward employees for progress made towards achieving the goals? (You may select more than one answer.)

__ Change in satisfaction per hour of housekeeping __ Housekeeping staff friendliness __ Change in satisfaction per hour of supervisory time __ Time of housekeeping per room __ Change in satisfaction per dollar of maintenance __ Change in satisfaction per dollar of supplies used __ Change in satisfaction per dollar of supplies