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  1. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e Organizing John R. Walker Chapter 16

  2. 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.

  3. 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.

  4. 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.

  5. The New “Upside-Down” Organizational ChartFigure 16-1

  6. 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.

  7. 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

  8. Organizational Chart for a Theme ParkFigure 16-2

  9. 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.

  10. 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.

  11. 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

  12. 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.

  13. 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.

  14. Centralization versus Decentralization in an OrganizationFigure 16-4

  15. 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.

  16. 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.

  17. 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.

  18. 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.

  19. 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.

  20. 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.

  21. The Four Types of Contemporary Organizational DesignsFigure 16-5

  22. 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.

  23. 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.

  24. 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.

  25. 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.

  26. 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.

  27. 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.

  28. 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..

  29. The End