AHLEI CHM key terms

The systematic process of gathering and documenting the duties, responsibilities, working conditions, and required qualifications of a position. It produces the foundation used to write job descriptions and job specifications.

A written summary of the tasks, duties, and responsibilities a position entails. It tells candidates and employees what work the job involves, but does not list the personal qualifications required.

A statement of the knowledge, skills, abilities, education, and experience a person needs to perform a job successfully. It is derived from job analysis and supports recruiting and selection decisions.

A selection technique that asks candidates to describe specific past situations and how they handled them, on the premise that prior behavior predicts future performance. Questions typically begin with phrases like tell me about a time when.

An interview in which all candidates are asked the same predetermined questions in the same order, often scored with a rating guide. It improves consistency and reduces bias compared with informal conversation.

The process of introducing a new employee to the property, its policies, coworkers, and the specific expectations of the job. It begins the socialization process and helps reduce early turnover.

The broader, longer-term process of integrating a new hire into the organization through orientation, training, feedback, and support during the first months of employment. Its goal is productivity and retention.

A step-by-step approach to correcting employee behavior, typically moving from verbal warning to written warning to suspension and finally termination. Each step gives the employee notice and an opportunity to improve.

A standard requiring that disciplinary action be based on legitimate, documented, and proportionate reasons related to an employee's conduct or performance. It protects the employer against claims of arbitrary or unfair treatment.

The written record of employee performance, coaching, warnings, and incidents kept by managers. Accurate, timely records support discipline, defend against legal claims, and provide evidence for performance decisions.

The percentage of employees who leave an organization during a period, usually calculated as departures divided by average headcount. High turnover raises recruiting and training costs and can signal morale or management problems.

The organization's efforts and results in keeping valued employees over time. It is supported by fair pay, career development, recognition, scheduling flexibility, and a healthy work environment.

A financial plan covering expected revenues and expenses for a defined period, usually a year. It sets targets for departments and provides the benchmark against which actual performance is compared.

The process of comparing actual financial results with budgeted or forecasted figures and investigating the reasons for differences. Managers use it to control costs and adjust operations during the period.

A projection of future revenues, expenses, or occupancy based on current trends, bookings, and assumptions. Forecasts are updated regularly and help managers adjust staffing, pricing, and spending before the period ends.

A performance measure calculated by dividing total room revenue by the number of available rooms, or by multiplying occupancy by average daily rate. It combines pricing and occupancy into a single indicator of room revenue performance.

The average room revenue earned per occupied room for a period, calculated by dividing total room revenue by rooms sold. It measures the average price actually achieved rather than the published rate.

The share of available rooms that were sold during a period, calculated as rooms sold divided by rooms available. It indicates demand capture but says nothing by itself about the price achieved.

The practice of setting prices and controlling room inventory by segment, date, and demand pattern to maximize total revenue. It balances rate and occupancy using forecasts, restrictions, and competitive information.

A pricing and inventory discipline that allocates limited capacity to the mix of business that produces the greatest revenue or profit. In hotels it often means accepting or restricting discount segments as demand changes.

Dividing potential guests into groups with similar needs, such as corporate, group, leisure, and government travelers. Segmentation guides pricing, marketing, and room allocation decisions.

The coordination of how rooms are sold across direct channels and third-party intermediaries such as online travel agencies. It aims to keep rates and availability consistent while controlling distribution costs.

A financial statement showing assets, liabilities, and owners' equity at a point in time. It reveals what the property owns, what it owes, and its net worth on a given date.

A financial statement summarizing revenues, expenses, and profit or loss over a period. It shows whether operations generated a profit and where costs were incurred.

A formal record presenting the financial position and results of an entity, including the balance sheet, income statement, and statement of cash flows. Managers and owners use these reports to evaluate performance.

Policies and procedures designed to safeguard assets, ensure accurate records, and prevent fraud or error. Examples include segregation of duties, approvals, cash counts, and restricted access to systems.

An internal control principle that divides related tasks among different people so no single employee controls an entire transaction. For example, the person handling cash should not also reconcile the bank account.

An independent examination of records, procedures, or financial statements to verify accuracy and compliance. Findings typically lead to corrective actions and stronger controls.

Scheduled, planned servicing and inspection of equipment and facilities to prevent breakdowns and extend useful life. It reduces emergency repairs, guest complaints, and long-term capital costs.

A written request authorizing maintenance or repair work, recording the location, problem, assigned staff, and completion. Work orders create accountability and a history of property repairs.

The oversight of a property's physical assets, including maintenance, housekeeping, security, and utilities, so the building operates safely and efficiently. It links operational condition to guest satisfaction and cost control.

Spending on long-term assets or major improvements, such as furniture replacement or building renovation, that provides benefit beyond the current year. It is usually planned separately from the operating budget.

A documented procedure specifying routes, exits, alarms, and staff responsibilities when a property must be emptied quickly. It must be posted, practiced through drills, and coordinated with local emergency services.

A structured set of policies, training, inspections, and reporting practices aimed at preventing accidents and injuries to guests and employees. It includes hazard identification, incident reporting, and corrective follow-up.

The process of identifying, evaluating, and reducing exposures that could cause loss, injury, or liability. Techniques include prevention, transfer through insurance, and written policies and inspections.

A leadership approach in which the manager adjusts the amount of direction and support given according to the employee's competence and commitment for a specific task. It recognizes that the right style varies by person and situation.

Assigning responsibility and authority for a task to another person while retaining accountability for the outcome. Effective delegation includes clear expectations, resources, and follow-up.

A supportive, ongoing process in which a manager helps an employee improve performance through observation, feedback, questioning, and guidance. It focuses on developing capability rather than disciplining.

The actions taken to resolve a guest complaint and restore satisfaction after a service failure. Effective recovery includes listening, apologizing, acting quickly, and following up.

Granting employees the authority to make decisions and act on guest problems within defined limits. It speeds recovery, increases ownership, and requires clear guidelines and training.

The degree to which a guest's experience meets or exceeds expectations, shaped by service quality, cleanliness, value, and problem resolution. It drives repeat business, reviews, and revenue.

A formal, periodic evaluation of an employee's work against expectations, often including ratings, examples, and goals for the next period. It supports pay, promotion, and development decisions when documented well.

The process of choosing among applicants the person best suited to a job, using application review, interviews, testing, and reference checks. It follows recruiting and precedes orientation and training.

The ending of an employee's relationship with the organization, whether voluntary or involuntary. Involuntary termination should rest on documented cause, consistent policy, and lawful procedure.