Introduction to Hospitality Unit VII

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Organizing

Chapter 16

John R. Walker

Introduction to Hospitality, 6e and

Introduction to Hospitality Management, 4e

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

The Purpose of Organizing

• The purpose of organizing is to get a job done

efficiently & effectively by completing these tasks:

– Dividing work.

– Assigning tasks.

– Coordinating diverse organizational tasks.

– Clustering jobs into units.

– Establishing relationships.

– Establishing formal lines of authority.

– Allocate & deploy organizational resources.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

The Purpose of Organizing

• Organization refers to the arrangement of

activities so that they systematically

contribute to goal accomplishment.

• No one person can do all the things

necessary for a hospitality organization to be

successful.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Defining Organizational Structure

• An organizational structure is like a skeleton

in that it lends support to the various

departments in an organization.

• It provides the total framework by which job

tasks are divided, grouped, & coordinated.

• See next slide.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

The New “Upside-Down” Organizational Chart

Figure 16-1

Book Title Author name

Work Specialization/

Division of Labor

• Work specialization is the extent to which

jobs in an organization are divided into

separate tasks.

– One person does not do the entire job.

– Instead, it is broken down into steps & a

different person completes each step.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Departmentalization

• Once jobs have been divided up by work specialization, they have to be grouped back together so that the common tasks can be coordinated (departmentalization).

• Methods of departmentalizing:

– By function

– By product

– By guest need

– By territory

– Any combination of the above

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Organizational Chart for a Theme Park

Figure 16-2

Book Title Author name

Authority & Responsibility

• Authority is closely associated with chain of

command because it gives the right to

managers to exercise their power in a given

situation.

• Authority should be commensurate with

responsibility.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Chain of Command

• Outlines those with authority from the top down:

– BOD

– CEO

– Vice-president

• The chain of command is helpful for associates

who have questions or need advice because they

will know whom to ask.

• They also know to whom they are responsible for

their work performance.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Increasing Span of Control

• Number of employees a supervisor can efficiently manage. – The answer used to be between 8 & 12.

– Now, however, the answer is likely to be 12 to 18!

• Factors: – Type of work

– Skill level of employee

– Level of training

– Technology available

– Leadership style

– Management experience

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Empowerment

• Giving employees a degree of decision-making

authority.

• Allows employees to be flexible when dealing

with difficult situations that do not necessarily

require management attention.

• Increase in guest satisfaction.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Centralization vs. Decentralization

• Some organizations make most of the decisions at the corporate office & inform unit managers of them.

– This process is called centralization.

– Top managers make the organization’s key decisions with little/no input from subordinates.

• Decentralized organizations make most of the decisions at the unit level or with input from associates.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Centralization versus Decentralization in an Organization Figure 16-4

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Organizational Design Decisions

• Coordination of Activities:

– Departments need to communicate quickly & often

to keep up with guest requests.

• Contingency Planning:

– Contingency factors deal with what hospitality

organizations refer to as the what-ifs.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Contemporary

Organizational Designs

• The first is a work team structure.

• Either the complete organization or a part of it

is made up of teams that perform the duties

necessary to delight the guest.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Contemporary

Organizational Designs

• There are two main types of work teams:

integrated and self-managed.

• Integrated work teams are given a number of

tasks by the manager, and the team gives

specific assignments to members.

• Self-managed work teams are assigned a goal,

and the team plans, organizes, leads, and

controls to achieve the goal.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Matrix & Project Structures

• The matrix structure is an organizational

structure that assigns specialists from different

departments to work on a project.

– For example, a new attraction, restaurant, or hotel

opening.

• Project structures are those in which employees

continuously work on projects.

– Unlike a matrix structure, members of a project do not

return to their departments after project completion.

– They go on to the next project.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Independent Business Units

• Encourages departments to not only delight the

guest but also to watch the money all the way to

the bottom line.

• In other words, the IBU becomes its own

independent business & makes decisions

accordingly with little or no need to get approval

for routine operational decisions.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Boundaryless Organizations

• An organization whose design is not defined

by, or limited to, the horizontal, vertical, or

external boundaries imposed by a predefined

structure.

• Seeks to eliminate the chain of command, to

have appropriate spans of control, & to

replace departments with empowered teams.

Book Title Author name

The Four Types of Contemporary Organizational Designs

Figure 16-5

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Team & Employee Involvement

• Teams are task-oriented work groups; they can

either be formally appointed or may evolve in-

formally.

• Teams are great for doing work that is complex,

interrelated, or of a volume larger than one

person can handle.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Team & Employee Involvement

• Why are some groups more successful than others?

• Why does a team of mediocre players sometimes beat a team of superior players?

• Why & how this happens is called group dynamics & includes: – The abilities of the group’s members.

– The size of the group.

– The level of conflict.

– The internal pressures on members to conform to the group’s norms.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

How Companies Use Teams

• One way is to structure the organization into teams from the start.

• Through TQM programs that involve associates working in teams to constantly improve the guest experience.

• Self-managed teams make decisions that were once made by managers.

– This saves managers time, allowing them to concentrate on more important things.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

How to Build Productive Teams

• Productive teams are built by:

– Giving associates the authority, responsibility, &

encouragement to come together to work on

guest-related improvements.

– Leadership.

– Setting goals & objectives.

– Interaction.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Job Rotation, Enlargement

& Enrichment

• Job Rotation: creates interest & assists in

developing associates to take on additional

responsibilities.

• Job Enlargement: increases the scope of the

associates’ work.

• Job Enrichment: adds some planning &

evaluating responsibilities to a position. It

gives associates greater control over their

work.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Trends

• Computerized scheduling programs save the organizer time & limit the error margin for being over- or understaffed.

• The fact that recipes are just a click away on the Internet helps speed the organizational process tremendously.

• The new dynamic of multitasking has caused a drastic change in the organizational chart.

• A new trend following the September 11, 2001, tragedy is to decentralize organizations.

• Reduced occupancies at most hotels have led to a reduction in staff & managerial positions. This in turn has led to more decentralized organizations with fewer levels of management.

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

Trends

• Another trend is the outsourcing of some hospitality jobs

like accounting, which can be done in India and the

Philippines for a much lower cost.

• There is a trend of utilizing outsourced employees for

some departments such as housekeeping. This reduces

payroll and benefits are not offered as these workers

are not actually hotel employees..

Introduction to Hospitality, 6e and Introduction to

Hospitality Management, 4e - Walker

The End