Introduction to Hospitality, 6e
and
Introduction to Hospitality Management, 4e
John R. Walker
Organizing
Chapter 16
The Purpose of Organizing
• The purpose of organizing is to get a job done
efficiently & effectively by completing these tasks:
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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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The New “Upside-Down” Organizational Chart
Figure 16-1
Introduction to Hospitality, 6e and Introduction to
Hospitality Management, 4e - Walker
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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.
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© 2012 by Pearson Higher Education, Inc
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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:
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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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Organizational Chart for a Theme Park
Figure 16-2
Introduction to Hospitality, 6e and Introduction to
Hospitality Management, 4e - Walker
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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.
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© 2012 by Pearson Higher Education, Inc
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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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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:
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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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Centralization versus Decentralization in an Organization
Figure 16-4
Introduction to Hospitality, 6e and Introduction to
Hospitality Management, 4e - Walker
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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.
Introduction to Hospitality, 6e and Introduction to
Hospitality Management, 4e - Walker
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Four Types of Contemporary Organizational Designs
Figure 16-5
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Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Team & Employee Involvement
• Teams are task-oriented work groups; they can
either be formally appointed or may evolve informally.
• 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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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:
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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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
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
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The End
Introduction to Hospitality, 6e and Introduction to
Hospitality Management, 4e - Walker
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved