Percy Purveyor, a hotel supplier, sat opposite the general manager of the Eastwick Resort, Guy Thorpe. Percy
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Question:
#2 Check Cashing
The Eastwick Resort received two returned checks from the bank this week. One was a personal check for $250 that was dated March 18, and the hotel had tried to cash it March 17; and the other was a corporate check for $1,000. The corporate check looked valid, with two signatures by financial officers and "Travel" in the memo space. When hotel staff called the corporation, they found that the check was indeed valid but only for authorized corporate agents, and the guest the hotel had hosted was not authorized. Furthermore, the guest tricked the hotel into giving him almost $860 in cash by saying that though the corporation had prepaid his expenses for a week-long stay, he was going to leave after one night and would like to be reimbursed for the difference.
#3 Payroll
Almost all the housekeeping staff at the Eastwick Resort are part-time employees, and turnover is high. Recently, payroll expenses have increased significantly, but the general manager believes that the actual number of employees has dropped. When Guy Thorpe calls in his housekeeping manager, Jay, even Jay doesn't know for sure how many room attendants currently are (and should be) on the payroll. Some are on leave for various reasons, some have made it unclear whether they still want to work for the property, and so on. "We may have ghosting going on- someone could be setting up fictitious employees on the payroll and collecting their 'wages," Guy tells Jay.
#4 Linen Loss
The housekeeping department at the Eastwick Resort has been losing six to eight sheets per week. Jay and his assistant normally take inventory monthly, but they started taking it weekly when they noticed losses. Jay decided that the volume of loss is too high and too consistent to be attributable to guest theft, so he turns his attention to employees.
#5 Room Charges
Celia Sly has just treated several of her close friends to a hearty lunch at the East- wick Resort's restaurant. When the server presents the check, Celia asks her to charge it to room 213. The server agrees to take care of it.
#6 Cash Drawers
The restaurant at the Eastwick Resort has been trying a new system of distributing cash drawers. In an effort to promote cooperation and to create an atmosphere of trust with and among its employees, it has made all three cashiers on a given shift responsible for all three cash drawers the restaurant uses. Managers hoped that cashiers would develop team spirit and that they might prevent other cashiers from stealing. This system worked fine at first, but recently, the cash drawers have been short by a total of about $20 after every shift. The cashiers have become suspi- cious of each other and have complained loudly to managers.
Questions
1. For each scenario, what policies and procedures could be implemented to prevent the type of loss concerned? What can managers do to deal with the situation before them?
2. Which of the scenarios would require action from the security department and which would require action from other department?
3. Suppose that the Eastwick Resort's profit goal was 12 percent. If the operation managed to recover none of its losses from the events described above, how much would the operation have to achieve in sales to recoup its losses?
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