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Chapter 2. Organizational Structure - BB

Chapter 2. Organizational Structure - BB - Chapter 2...

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Unformatted text preview: Chapter 2: Organizational Structure HRT203 OBJECTIVES OBJECTIVES Define job specialization & discuss its usefulness in an organization Discuss the job responsibilities of personnel in the following departments: Rooms, F&B, Marketing & Sales, HR, Accounting, GM, and RM Explain the importance of a clear chain of command Compare the two patterns of authority: centralization & decentralization Contrast narrow versus wide span of control Organizing Organizing Process of structuring human resources and physical resources in order to accomplish organizational objectives Organizational structure The formal arrangement or framework by which job tasks are divided, grouped, & coordinated within an organization Process: Dividing tasks into specific jobs ( Job specialization ) Clustering jobs into appropriate units ( Departmentalization ) Determining the optimum number of jobs in each department ( Span of Control ) Delegating authority within and among departments ( Chain of command ) Authority is distributed throughout an organization (Decentralization ) Authority is held in the hands of a few select employees (Centralization ) Job Specialization Job Specialization “The degree to which tasks in the organization are divided into separate jobs” Demand for additional products or services => Job specialization =>Productivity & Efficiency Problems: The need for managerial control & coordination Workers performing the same tasks over & over again=> little joy or satisfaction Overspecialization: loss of interest, lowered morale, increasing error rate, & reduction in service & product quality Solutions: Establish work team­ h/k department Utilize “ quality circle ” to gain participation A group of employees who perform similar job meet once per week, identify problems, and present possible solutions to problems Forwards its finding and possibel solutions to management Departmentalization Departmentalization The basis by which jobs/tasks are grouped together Four Common forms of departmentalization Functional Product Grouping jobs by product line Geographic Grouping jobs by functions performed Grouping jobs on the basis of territory or geography Customer Grouping jobs by type of customer and needs Hotel Organization Hotel Organization Group certain jobs (Departments) to ensure efficient coordination & control of activities Separate departments by function: Rooms (HRT304, HRT425) Food & Beverage (HRT235, HRT317, HRT385, etc.) Human Resources (HRT350) Marketing & Sales (HRT302, HRT390) Accounting (HRT276, HRT374, HRT474, etc.) Rooms Department Rooms Department Front desk department in a limited service hotel Functions (subunits) include; Reservations (taking and tracking the hotel;s future booking Front Office­ guest reception, room assignment, trakccking the status of room, guest checkout Telephone, bell desk, concierge, valet parking Telephone or PBX ­ prompting forwarding of mail and telephone message Housekeeping ­ cleaning guestroom and public areas Laundry ­ cleaning and pressing all the hotels linens, uniforms and guest laundry Security & Engineering­ preventive main, repair and replacement F&B Department F&B Department Provide food & drink to a hotel’s guests Coffee shop, Gourmet restaurant, Poolside snack bar, Banquet halls, Lounge, Night club, Lobby bar etc. Subunits include: Food production (or Kitchen) department ­ executive chef Food service department­ individual restaurant & outlet managers Room service department­ room service manager Alcoholic beverage department ­ beverage manager Stewarding department ­ washin pots and pans, dishes glasses and utensils Marketing & Sales Dept. Marketing & Sales Dept. Relatively small department Sales staff (large full­service hotel) does not exceed a dozen or so Selling of hotel facilities and services to individuals & groups Sell rooms, food, beverages, functional/meeting spaces to potential clients through advertising, attendance at association meetings, or direct contact Individual sales managers usually specialize in particular customer groups (corporate, associations, conventions, tour & travel market, etc) or particualr geographical lines (regional or national) Individual sales managers work independently in ther particaur market segment Human Resources Dept. Human Resources Dept. HR serves no customers Functions include: employee recruitment, benefits administratio, training Challenge: Interaction with other departments Final hiring decisions rest within the department Promotion & disciplinary decision rest within the dept Effectiveness depends on its ability to form effective working relationships with other departments Accounting Department Accounting Department Combines staff & line functions Line functions (traditional role) include: Recording financial transcations Preparing and interpreting finan statement Providing the managers with timely reports and operating results Staff functions include: Payroll prepartion, account recievable, acount payable Other responsibilities: Cost accounting & cost control throughout the hotel (rooms & F&B) Cost accounting and cost control throught the hotel (roosm and f and b Purchasing the storeomm operations Designing the accounting and control system used throughout the hotel General Manager General Manager Main duties include: Overseeing all departments Defining and interpreting the policies established by top management Setting the overall strategic course of the hotel Setting the hotel­ wide goals Arbitrating interdepartmental disputes Coordinating activities between departments GM needs to posses a high level of technical skills and be decisive, analytical and skilled with computer, accounting and people Resident Manager Resident Manager RM relieves the GM of some operational duties This is usually accomplished by elevating the duties & responsibilities of one particular department head (usually ROOMS DEPARTMENT) Responsibilities include: Serving as acting GM in the GM’s absence Representing the GM on interdepartmental hotel committee Taking responsibilty for importatn special projects Taking care of VIP guests Preparing operating reports that require in­depth analysis for the corporate offices Chain of Command Chain of Command “Formal channel that defines the ( LINES OF AUTHORITY) from the top to the bottom of an organization” AUTHORITY: the rights to inherent in a managerial position to tell people what to do and to expect them to do it Organizationally sanctioned right to make a decision It specifies a clear reporting relationship for each person in the organization Who do I go to if I have a problem? Enables new employees to know exactly for whom and to whom he/she is responsible To whom am I responsible? Follow both downward and upward communication Chain of Command (Cont.) Chain of Command (Cont.) Authority can be distributed throughout an organization ( DECENTRALIZATION ) or held in the hands of a few select employees (CENTRALIZATION ) Advantages of Decentralization: Traditionally hotel management has been very centralized As the industry expands, decentralization has become common Managers are encouraged to develop decision­making skills Increase job satisfaction Increase motivation Increase the profitability of the organization Typical example of Decentralization: “ EMPOWERMENT” RITZ CARLTON AND HAMPTON INN Span of Control Span of Control “Number of people who report to one manager or supervisor” Wide span of control =>FLAT ORGANIZATION Narrow span of control => TALL ORGANIZATION Larger number of employees reporting to one manager Small number of employees reporting to one manager: need a large number of managers No formula exists for determining ideal span of control Factors to be considered: Task similarity, training and professionalism, task certainty, frequency of interaction, task integration, phyiscal dispersion Span of Control Span of Control Task Similarity When a large number of employees perform similar tasks, the span of control can be (increased) When employees perform very different tasks, managers must give each one more individual attention; this requires a ( NARROWER SPAN OF CONTROL ) Training & Professionalism The better trained and more skilled a employee is, the less supervision is required ( WIDER SPAN OF CONTROL ) Span of Control Span of Control Task Certainty Routine tasks allow managers to devise standard procedures for employees to follow, minimizing questions about the job ( WIDER SPAN OF CONTROL ) Tasks are ambiguous & uncertain (NARROWER SPAN OF CONTROL) Frequency of Interaction If the manager/employee relationship requires frequent interaction ( NARROWER SPAN OF CONTROL) If interaction is infrequent ( WIDER SPAN OF CONTROL) Span of Control Span of Control Task integration If manager must integrate & coordinate the tasks of employees ( NARROWER SPAN OF CONTROL ) Less integration or coordination ( WIDER SPAN OF CONTROL ) Physical dispersion “Distribution of employees within the hotel” Wider physical dispersion => (NARROWER SPAN OF CONTROL) Narrower physical dispersion => (WIDER SPAN OF CONTROL) Functional Organization design Functional Organization design Strength: Operational efficiency Performance of common task => work specialization => overall productivity Employees develop specialized skills and knowledge more rapidly Training is easier because of similarity of tasks Coordination of activities within functional departments is easier Each department keep in mind the hotel­wide goals rather than focus narrowly on its own concerns Cooperation and coordination of activities of functional departments <= strong leadership (GM, RM, and department directors) ...
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