Organizational Structure and Goals

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Running head: ORGANIZATIONAL STRUCTURE AND GOALS 1

Organizational Structure and Goals

Sharada H A

Capella University

ORGANIZATIONAL STRUCTURE AND GOALS 2

Analysis of the Industry

The hospitality industry by nature is labor intensive and operates in a multifaceted

dynamic environment composed of small independent enterprises (Sufi, n.d.). The primary goals

of this industry include uncompromised customer service and product quality. Customers are the

heart of this industry, and the main focus is on the customer base. Customers obtain this service

for recreation, and an unpleasant experience might prevent them from returning again. Thus,

customer satisfaction is the key to success in this industry. In addition, brand loyalty is the key to

continued success in this sector. Hence, associated companies do their best to offer quality

services. Reliability and quality of service, therefore, have to be top-notch. Product quality and

employee welfare must be taken care of to achieve these larger goals (Widjaya, 2015).

Essential Functional Areas for a Hotel

Being a part of the hospitality or the service industry, hotels share broader goals and

features of these industries. Since the main goals of a hotel are to ensure quality service,

customer delight, and brand loyalty, a hotel must be supported with necessary functional areas

that contribute toward achieving these goals. Therefore, the three essential functional areas

identified for a luxury hotel include the following:

• Human resources (HR): Human resources are valuable assets for any organization

(Cherian & Farouq, 2013). When it comes to quality of service, a firm must be willing to

invest in skilled employees (Widjaya, 2015). Since the hospitality industry is “customer

facing,” people who interact with customers must be properly trained. A major problem

in the hotel industry, however, is related to employment. For example, according to the

International Society of Hospitality Consultants report “Top Ten Issues in the Hospitality

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Industry for 2007,” more people are exiting than entering the hospitality workforce. The

report identifies below average wages as a cause. This is where the role of the human

resource function becomes prominent. Expert recruiters help businesses select quality

housekeepers, wait staff, chefs, and bartenders they require. Also, by ensuring that every

position is described in detail, HR helps new hires and veteran workers get a clear picture

about their duties and responsibilities (Bolden-Barrett, 2016). By hiring proficient

employees, providing training, and compensating them in accordance to market

standards, HR helps counter workforce problems in a labor-intensive industry.

• Marketing and branding: Marketing is a process by which a product or service is

introduced and promoted to potential customers. The marketing umbrella of any

management covers advertising, public relations, promotions, and sales. Without the

marketing wing, sales may crash and companies may have to close. Marketing helps an

organization on a larger level by getting the word out to potential customers about the

various attributes of a product or service. The advancement in marketing techniques, such

as e-marketing, mobile apps, and social network systems, allows hotels to deliver

messages to customers and the market that inform them about the wide range of available

products and services. (Pereira & Almeida, 2014).

In addition, marketing builds brand name and recognition for a company.

Forming an exclusive brand identity is essential to establish a firm’s customer base in a

competitive hospitality market. Customer experience is top priority for marketing

executives. By making strategic decisions about item type, branding method, and

monetary expenditures, marketing managers make the hospitality experience memorable

for customers. Frontline employees, be it people behind the counter, on the phone, in the

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cloud, or walking the floor, have a strong ability to influence customer experience.

Branding ensures that customers return again and recommend the hotel’s services to

others.

• Information technology (IT): IT is becoming an essential part of every business, big and

small. It has an intense effect on both the hotel industry and its customers. Improving

customer experience means understanding the customer by analyzing their patterns and

behaviors. It requires comprehending and then strategically using data analytics to

examine the data an organization collects on a customer—the Big Data. Information

generated by the IT department helps the marketing team keep customers informed about

existing and improved services, communicate constantly with the target market in order

to offer last minute deals for consumers, and facilitate technology-based services. This in

turn leads to enhanced customer relationship management (CRM). The IT function also

allows hotel chains to coordinate the collection, management, and dissemination of guest

information, which is an expensive process (MacKechnie, 2016).

The Organizational Structure for the Selected Functional Areas

Most hotels are based on a functional organizational structure. In this structure, each

functional department is administered and directed by a supervisor, who reports to the

general manager. In a functional structure, coordinating tasks and communication within

departments is easier, and the resulting job specialization leads to enhanced productivity and

quality (Friend, 2016).

Leading organizations are inclined to collaborate across their major departments. These

organizations work to develop cross functional understanding across the organization so they

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can utilize the capabilities and strengths of their employees within the organization to their

advantage.

Therefore, although the three functional areas have distinct objectives and roles within a

functional organizational structure, the three departments work in collaboration to maximize

service quality and customer satisfaction.

Conclusion

Creating a workable organization structure with well-defined roles, functions, scopes of

authority, and systems helps to ensure that employees are working toward achieving the

larger organizational goals.

In a functional organizational structure, HR will help the organization acquire and train

suitable employees to meet customer expectations, marketing and branding will help

communicate with customers and build a unique identity, and IT will help the staff deliver

quality and timely services. Although these functions operate separately, they share a

common goal––customer satisfaction through quality service. Through quality service, one-

time customers will turn into loyal customers. When returning customers share their positive

experiences through word of mouth, the organization will continue to grow and succeed in its

field.

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References

Bolden-Barrett, V. (2016). The role of the human resources department in a hospitality

organization. Retrieved from http://smallbusiness.chron.com/role-human-resources-

department-hospitality-organization-71891.html

Cherian, J., & Farouq, S. (2013, July 26). A review of human resource accounting and

organizational performance. International Journal of Economics and Finance, 5(8), 74-

83. doi:10.5539/ijef.v5n8p74

Friend, L. (n.d.). Organizational structure of a hotel. Houston Chronicle. Retrieved from

http://smallbusiness.chron.com/organizational-structure-hotel-3809.html

MacKechnie, C. (n.d.). Information technology & its role in the modern organization. Houston

Chronicle. Retrieved from http://smallbusiness.chron.com/information-technology-its-

role-modern-organization-1800.html

Pereira, L., & Almeida, P. (2014, March). Marketing and promotion in the hotel industry: A case

study in family hotel and hotel group. Tourism and Hospitality International Journal,

2(1), 92-105. Retrieved from http://isce-turismo.com/static/files/9ba0c212-Marketing-

and-Promotion-in-the-Hotel-Industry-A-case-study-in-Family-Hotel-and-Hotel-

Group.pdf

Sufi, T. (n.d.). Hospitality industry: An overview of strategy, structure and globalization. Journal

of Hospitality Application and Research. Retrieved from http://

academia.edu/1969688/HOSPITALITY_INDUSTRY_STRUCTURE_STRATEGY

AND GLOBALIZATION

http://smallbusiness.chron.com/role-human-resources-department-hospitality-organization-71891.html

http://smallbusiness.chron.com/organizational-structure-hotel-3809.html

http://smallbusiness.chron.com/information-technology-its-role-modern-organization-1800.html

http://www.academia.edu/1969688/HOSPITALITY_INDUSTRY_STRUCTURE_STRATEGY

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Widjaya, I. (2015, April 23,). The importance of marketing to the hospitality industry. Retrieved

from http:// noobpreneur.com/2015/04/23/the-importance-of-marketing-to-the-

hospitality-industry/

http://www.noobpreneur.com/2015/04/23/the-importance-of-marketing-to-the-hospitality-industry/