Read the Case Study: Conflict at the Sunny Ridge Hotel
"Why does it make a difference, anyway?" questioned Caleb, the general manager of the Sunny Ridge Hotel. He was talking to Shelly, the hotel's food and beverage manager, and Leslie, the hotel's new controller.

 

"From an accounting standpoint, it's just the 'cleanest' thing to do," said Leslie. "Room service should only involve the service of food and beverage products to single guests or couples in their rooms. Food and beverage service provided to groups of people in a guestroom suite, however, should be handled by the banquet department, because small groups in the guestroom suites are sort of like mini-banquet groups, if you will."

 

"But the room service department won't be profitable unless hospitality suite sales are considered room service sales," Shelly warned. "Room service personnel have always been responsible for the guestroom suite sales in this hotel."

 

"True," replied Leslie. "But now I'd like to switch that responsibility to the banquet department, to make our financial statements consistent with the other hotels in the chain."

 

"I understand why you want to do it," Shelly said sharply, becoming more confrontational. "It's just not a good idea. If you make this change, room service won't be profitable anymore. It will be a black eye for my department.

 

"You're just asking for trouble," Shelly continued. "If we do the same, what other changes will the regional manager ask us to make the next time he's here? Anyway, like Caleb said, does it really matter? The total dollars distributed back to hotel operations from the food and beverage department are the same either way. I think we should just leave things like they are."

 

"And I think we should make this change," Leslie said firmly.

 

Both women turned to Caleb. "I hate it when people fight like this," Caleb thought. "Why did this even have to come up?"

 

Questions to solve

• What is behind the conflict between Shelly and Leslie?
• Does Caleb need more information before making a decision? If so, what additional information is required?