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This thesis has identified a need for productivity measurement and for productivity management in hotels. This thesis has presented a diagnostic approach to the management of productivity which can be used by hotel managers and consultants to improve productivity and management effectiveness. Theoretical and operational productivity measurement models were presented and discussed relative to academic and operational applications. Research in the area of productivity measurement and management in hotels has resulted in several findings. These findings are as follows. First, there exists a need for improved labor control in hotels. This can result from the use of productivity measurement and management systems. Second, economic theory, industrial engineering and behavioral science have experience which can be applied directly to the problem of measurement and management of productivity in hotels. Third, productivity in hotels can be measured by means of a consistent, a priori, mathematically correct definition of the relationship between inputs to and outputs from the production process. This means of measurement permits a diagnostician the flexibility to design productivity measurement systems for specific hotel applications. The findings of this thesis can be the basis for the development and implementation of industry wide productivity management systems. The idea that what can be measured can also be managed is true in the area of productivity. The task of measurement of productivity in hotels which had previously been too complex and too time consuming can now be accomplished by the systematic application of on-line computer techniques. The use of productivity measurement systems as presented. in this thesis must be considered with an awareness of several important precepts and caveats. First, it is necessary to recognize that measurements of productivity do not include all or even most of the factors which influence productivity. Labor inputs to the production process is used primarily because it is important, it is controllable, and it is measurable. Second, the availability of data is a constraint to the measurement process. Although some measures are preferred (i.e. labor hours paid), it is possible that they are not available and that less meaningful measures (i.e. labor costs paid) must be used. Third, the productivity measures presented represent aggregate activity center or work group measures. They do not represent individual productivity and they do not suggest that measured levels of productivity are optimum standards. Industrial engineering techniques including time and. motion study can be used to establish productivity standards. Fourth, a productivity measurement system is in essence a clinical thermometer. It measures changes in the relationship between inputs and outputs in the production process, but does not attempt to define cause and effect relationships. Fifth, the measurement process does not directly address the issue of quality of inputs or of outputs. For example labor input quality may be influenced by the culture, training, seniority and availability of the work force. Output quality may be influenced by guest perceptions, guest preferences, and guest behavior. Sixth, productivity measurement systems identify problem areas and trends within those areas. They do not prescribe remedies and are unable in and of themselves to implement solutions. Seventh, there exists a risk of system misuse. If a manager were to rely solely on the information provided to him or her by the system, it is possible that important human considerations could be overlooked with detrimental results to the organization. In a future, it will be more preferable to use computer technology can be used to monitor and improve productivity and therefore maintain and/or improve profitability of the hotel industry.