VALUE-BASED MANAGEMENT: RESEARCH IN THE HOTEL SECTOR IN RIO GRANDE DO NORTE

Abstract

This paper deals with value-based management, an approach involving the company management as a whole which leads managers to rethink management processes, from development of strategies to definition of performance indicators. This study concerns a field survey conducted with eight companies in the hotel sector in Rio Grande do Norte, where the utilization of value generation metrics is investigated. The study indicates that even though the traditional profit-based measures have several limitations, they still dominate managers’ preference. They are used as financial goals, long term indicators and parameters for profit distribution, in spite of existing value-based measures that are regarded as more complete and advanced. To conclude, it is verified that the concept of value management is not used in the enterprise environment investigated.