Four Types of Contemporary Organizational Designs

Four Types of Contemporary Organizational Designs

Instructions/Descriptions

Four Types of Contemporary Organizational Designs

[Order Now]

Chapter 16 Organizing 531

Chapter 16 Organizing 531

Independent Business Unit Figure 16-5 The Four Types of Contemporary Organizational Designs.

Boundaryless Organization

Associate I Guests ^ , Manager II

X

Associate II Associate III

Manager I

Chapter 16 Organizing 531

Chapter 16 Organizing 531

the guest (Figure 16-5). This concept is, like many, borrowed from business but has relevance for hospitality managers. Perhaps the best use of this concept for hospitality managers is with TQM, which you may remember we introduced in Chapter 1. Basically, teams of mostly front-line associates take on the challenge of improving guest services and products. At first, these teams are often made up of associates from one department but later can be made up of associates from different departments. This actually improves coordination between departments. Sales departments can work well in teams, as can the banquet kitchen, and for that matter most departments in a hospitality operation. However, the team is more likely to consist of associates from one department as opposed to associates from several departments. In any event, teams tend to be more productive. 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 axe assigned a goal, and the team plans, organizes, leads, and controls to achieve the goal.

Matrix and 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. The specialists come together to pool their knowledge and experience to work on the project. During this time they may have two bosses: their department head plus the project manager. To work effectively, project managers and department heads need to communicate on a regular basis. Matrix structures are appealing to organizations that want to speed up the decision-making process or get projects accomplished more quickly.

Chapter 16 Organizing 6

Chapter 16 Organizing 533

finding a quicker or better way of doing something. Forming IBUs is an excellent strategy to get associates to realize the total picture of revenue and expenses for a department. It forces associates to engage in all elements of management to make a profit. IBUs also enable management to seriously look at departments not making a sufficient profit contribution, with a view toward making changes and improvements or eliminating the department. Departments that once had a loss are now making a profit as a result of the company installing an IBU system of organizational design.

Boundaryless Organizations

Another contemporary approach to organizational design is the boundaryless organization, an organization whose design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure.7 The term was coined by Jack Welch, former chairman of General Electric, who wanted to eliminate vertical and horizontal boundaries within GE and break down external barriers between the company and its customers and suppliers. This idea may sound odd, yet many of today’s most successful organizations are finding that they can most effectively operate in today’s environment by remaining close to the guest and being flexible and unstructured. The boundaryless organization seeks to eliminate the chain of command, to have appropriate spans of control, and to replace departments with empowered teams. Hospitality organizations are moving in this direction but are not there yet. Some may feel that this is not a concept that will work for hospitality organizations, whereas others may think it’s a great idea. Hospitality companies recognize that it is important to stay close to the guest but are challenged to create a boundaryless organization.

Teams and Employee Involvement

Teams are task-oriented work groups; they can either be formally appointed or evolve informally. We all work with others, to a greater or lesser extent, in order to meet or exceed goals. Both formal and informal teams make important contributions to the company and to associates’ need satisfaction. For example, an informal team from one hotel saved the company more than $250,000 a year after the team made a proposal about energy savings. Not only did each team member receive a sizable bonus, but their employee satisfaction scores were significantly higher than those of associates who did not participate in the team.

Teams are great for doing work that is complex, interrelated, or more than one person can handle. Harold Geneen, while chairman of ITT, said, “If I had enough arms and legs, I’d do it all myself.” We all know that associates cannot do everything themselves because of limitations of arms and legs, time, expertise, knowledge, and other resources. There is a certain “buzz” in a restaurant on a busy Friday night; when the kitchen is getting “slammed,” you know what teamwork is or isn’t!

The funny thing about teams, as you have probably experienced by now, is that you don’t always get to choose who you work with—just as when you do term

papers and projects in teams. And even when you do get to choose classmates, it sometimes doesn’t work out. They don’t do their fair share or something else doesn’t work. Yet in the hospitality industry we are constantly working in teams to exceed guest expectations. So how can we make teams more effective?

Group Dynamics

Why are some groups more successful than others? Why does a team of mediocre players sometimes beat a team of superior players? You’ve probably experienced a situation in which, seemingly against all odds, a team excels. Remember the survival programs on television in the early 2000s? A group of people was dropped off in some remote place, and over a period of time the group members had to survive as teams, but they could vote people “off the island.” Imagine if we did that in the hospitality industry!

Why and how this happens is called group dynamics and includes variables such as the abilities of the group’s members, the size of the group, the level of conflict, and the internal pressures on members to conform to the group’s norms. Sometimes external influences inhibit the group’s performance. Corporate may dictate policies that make it more difficult for the group to succeed, or there may be a shortage of resources. One of the fascinating aspects of group dynamics is the members of the group. You may have experienced a group project at college. Sometimes you had to choose whom you worked with, and sometimes your group members were selected randomly. Which worked best?

How Companies Use Teams at Work

Hospitality companies use teams at work in a variety of ways. One way is to structure the organization into teams from the start. Instead of departments, they are called teams. This implies, of course, that employees must be team players, which is vital in the fast-paced hospitality industry. Another way management can use teams is through total quality management (TQM) programs that involve associates working in teams to constantly improve the guest experience. Teams are formed from either individual departments or several different departments. They choose an area of the operation that needs improvement, usually one of guest concern, and proceed to make changes that will benefit the guest. TQM teams have made important contributions to the industry and continue to do so.

Self-managed teams make decisions that were once made by managers. This saves managers time, allowing them to concentrate on more important things. We saw an example in Chapter 4; hotel housekeepers who score highly on room inspections no longer need to have their rooms checked by a floor housekeeper. These teams of housekeepers actually receive a bonus for superior performance, and the hotel saves the salary of the floor housekeepers. Self-managed teams work successfully in several types of hospitality organizations such as theme parks and convention centers.

534 Part VI Managerial Areas of the Hospitality Industry

536 Part VI Managerial Areas of the Hospitality Industry

Four Types of Contemporary Organizational Designs

Four Types of Contemporary Organizational Designs

Place the Order Here: https://standardwriter.com/orders/ordernow / https://standardwriter.com/

Four Types of Contemporary Organizational Designs

PLACE THE ORDER WITH US TODAY AND GET A PERFECT SCORE!!!