Organizing

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©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Organizing

Introduction to Hospitality Management, First Edition John Walker

C H A P T E R

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Organization defined: “To arrange activities so that they systematically contribute to goal accomplishment.”

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

C H A P T E R

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Purpose of Organizing • • • • • • •

Dividing work Assigning tasks Coordinating diverse organizational tasks Clustering jobs into units Establishing relationships Establishing formal lines of authority Allocating and deploying organizational resources

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Work specialization/Division of Labor • Each worker has a specific task • Each task is standardized • Work is repetitive • Work is broken into manageable steps

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Departmentalization • Coordination of tasks • Methods of departmentalizing – – – – –

By function By product By guest need By territory Or any combination of the above

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Authority • Comes with title and position • Two-way obligation • Expectations • Empowerment

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Responsibility • “rights” • Obligation to perform • Performance and outcome

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Chain of command • Outlines those with authority from the top down – BOD – CEO – Vice-president

• Clearly defined line of authority • Everyone knows to whom they are to report ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Span of Control • Number of employees a supervisor can efficiently manage • Factors – – – – – –

Type of work Skill level of employee Level of training Technology available Leadership style Management experience

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

C H A P T E R

Empowerment

• Giving employees a degree of decision16 making authority • Allows employees to be flexible when dealing with difficult situations that do not necessarily require management attention • Increase in guest satisfaction ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Centralization v. Decentralization • Decision-making authority lies with top management in a centralized structure • Lower management and line authority employees play a role in the decisionmaking process in a decentralized structure • Today’s companies are moving towards centralized structures for cost reasons

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Mechanistic organizations • • • • • •

High specialization rigid departmentalization Narrow spans of control High formalization Limited information network centralized

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Organic organization • • • •

Low in complexity Low in formalization Decentralized Division of labor of non-standardized jobs • Require few rules • Require little supervision

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Contingency factors Organizational structure Size Technology Degree of environmental uncertainty

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Team-based structure • • • • •

TQM model Front line associates participate Team makeup Coordination of effort Productivity issues

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Matrix structure • Assigns specialists from different departments to work on projects – Pool knowledge – Communication is key – Decision-making tends to move quicker

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Project structure • Employee continuously works on projects • Move to another project once completed • Members have specific knowledge

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

C H A P T E R

Independent Business Units (IBUs)

16 • Small, independent businesses within a larger corporate structure • Approval to implement strategies • Assists with exposing employees to revenue and expense issues

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

C H A P T E R

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Boundaryless organizations No pre-defined structure Breakdown of external barriers Eliminates the chain of command Appropriate span of control Replace departments with empowered teams

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

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Encouraging employee involvement • Teams – Self-managed – Productive

• Job rotation • Job enlargement • Job enrichment

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker

C H A P T E R

Trends in Organizing

• Increased used of 16 scheduling programs • Use of the Internet for recipe access • Multitasking • More decentralization

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First Edition John Walker