Final answer:
Sherry Smith is using the TQM aspect of gathering information from stakeholders by holding focus groups with hotel employees, emphasizing employee involvement and feedback for continuous improvement and quality management.
Step-by-step explanation:
By holding focus groups with employees of Smith's Hotels, Sherry Smith is employing gathering information from stakeholders, which is an aspect of total quality management (TQM). TQM is a management approach that focuses on long-term success through customer satisfaction and includes employee involvement as a critical component. Employee feedback is instrumental in identifying areas for improvement and fostering an environment of continuous improvement. In the context of TQM, employee feedback can also be seen as a way to specialize and focus on the retention of employees and improve hiring practices. This approach helps in creating a work environment where employees are engaged and motivated to contribute to the organization's quality objectives. Sherry Smith's use of focus groups aligns with the TQM principle of engaging with employees to enhance the quality of services provided by the hotels.