Effect of Contingency Planning on Survival of the Hotels in California, USA amid COVID 19 pandemic
Abstract
Most of the businesses are collapsing amid the Covid 19 pandemic. The most affected industry in the entire World is the hotel industry. Thus, the study sought to examine the effect of contingency planning on the survival of the hotels in California, USA, amid COVID 19 pandemic. The study adopted the explanatory research design. The target population included employees from the sampled hotels in California. The key respondents in the study were the employees from the management and also the support staff. Questionnaires were used to collect the data. The results of the study showed that contingency planning and firm survival is positively and significantly associated. It was further found that contingency planning is positively and significantly related to firm survival (?=.069 p=0.021). It was noted that contingency planning explains 18.7% of the variations in the survival of the hotels. Based on the study's findings, it was concluded that contingency planning is positively and significantly related to firm survival. Contingency planning includes contingency identification, developing a contingency planning policy statement, identifying preventive controls and protection systems to be used in case of an emergency, and developing contingency planning strategies. The planning also includes allocating adequate resources to be used in case an emergency occurs. Contingency planning is all about developing strategies to recover from hardship. The contingency recovery plans include steps written down or communicated to all that describes how the organization responds when disaster or misfortune strikes. The contingency recovery plans also include establishing a communication system for the recovery plans in the organization. The study recommended the management involve other employees in the development of contingency planning strategies. It is recommended that the firms ensure that the contingency allocation is adequate to cover potential events not explicitly accounted for previously in the budgets. Moreover, the management of the firms needs to ensure there is effective management of contingency funds in the firms. Furthermore, it is recommended that the contingency allocation be based on the expected magnitude of the risks if it occurs. The study suggested that there is the need to have a disaster recovery team that is always ready for the recovery plans in the organization. A written recovery plan that describes how the organization will respond when disaster or hardship strikes need to be drafted. It is recommended that there should be a time frame developed for the recovery plans in the organization. The government should also offer some subsidies to the firm in times of crisis, especially when the entire World is under the pandemic of COVID 19.
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