Managerial Areas of the Hospitality Industry
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Managerial Areas of the Hospitality Industry
528 Part VI Managerial Areas of the Hospitality Industry
Coordination of various functions and areas is critical in exceeding guest expectations. Room service requires the coordination of a variety of people, including those who take the order from the guest, kitchen personnel who cook the food, and, of course, those who deliver the meal and later retrieve the tray and dishes. Contingency Plan
Top managers give a lot of thought to designing an appropriate structure. What that appropriate structure is depends on the organization’s strategy, size, technology, and degree of environmental uncertainty. Structure should follow strategy and be closely linked.
An organization’s size generally affects its structure. Larger organizations tend to have more specialization, departmentalization, centralization, and rules and regulations than do small organizations. If there are 30 associates at one hospitality company and 300 at another, then the one with 300 will have more departments and be more mechanistic.
Every organization has some form of technology that relates to structure. Consider a hotel company that has a central reservations center. It can hold the inventory of all the hotels in the chain and be far more efficient in offering available rates and rooms to callers and also make the inventory available to travel agents and Internet travel organizations. A central reservations center can also do a better job of controlling and maximizing revenue for the available rooms than many decentralized centers.
Technology has enabled restaurant chains to transfer data and store menus and operations and training manuals via the Internet. In some cases this has led to a change in organizational structure. In the hospitality industry, technology has tended to help the existing structure perform better—sometimes with fewer associates. A convention center may have the latest software program for reserving and allocating space, but it will not significantly change the organization’s structure; someone must take the guest requests and enter them into the program.
Contingency factors deal with what hospitality organizations refer to as the wbat-ifs. What if such-and-such happens? The company plans and organizes for several possible outcomes. After the terrorist attacks on September 11, 2001, many hospitality companies immediately planned and organized for a drastic drop in business. Departments were greatly reduced, reorganized, or even closed in an effort to reduce the losses.
Contemporary Organizational Designs
Team-Based Structures
In response to competitive market demands for organizations that are lean, flexible, and innovative, managers are finding creative ways to structure and organize work and to make their organizations more responsive to guest needs. The first of the contemporary designs 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
Centralization
Decentralization
530 Part VI Managerial Areas of the Hospitality Industry
Matrix Structure
Chapter 16 Organizing 531
Chapter 16 Organizing 531
Team-Based Structure
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RUBRIC
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