IntroductionThe hotel and hospitality industry is among the largest industries that employ large number of people from various social and racial backgrounds. The industry has over 200 million in workforce worldwide (Ethical Corporation, 2006). The success of any company in the industry lies largely on how well the company manages its people as well as how it resolves and manages conflict. Organizations in the industry that have deeper understanding of its own organizational structure, organizational culture, power and politics, and conflict and negotiation have better chances of understanding the culturally diverse market where they operate.
Intercontinental Hotel GroupIntercontinental Hotel is a large syndicated hotel network that operates in a global scale. IHG operates more than 125 hotels in 2008 and is planning to expand on a much larger scale to pursue its aggressive dominance in the industry (“Cultural Revolution”, 2005). The number of hotels it owns and the geographically diverse locations of its hotels signify that IHG is constantly exposed to various conflicts or to power struggles (Clark, 2005). Since IHG operates on such a large scale, it is more exposed to people from different cultural backgrounds with little or no understanding of how other cultures operate.
In order for IHG to be able to be effective and efficient in what it does, it needs to be able to understand the principles of organizational culture, organizational structure, power and politics, and conflict and negotiation. An organization that understands the implications of these issues on its internal affairs is more likely to manage efficiently the same issues externally. Aim of the StudyBecause of the nature of business operations of IHG and because of the internal struggles that can easily arise from the cultural or behavioral differences within the organization, understanding the interplay of organizational culture, organizational structure, power and politics, and conflict and negotiation becomes interesting.
The aim of this study is to explore how a multinational organization that caters clients from various racial background can minimize the negative impact of internal conflicts with the understanding of the concepts and principles of power and politics, organizational culture and structure, and conflict and negotiation. Power and PoliticsIHG caters a market whose cultural spectrum is very wide.
Internally, the organization has a very wide avenue for growth and development which translates to the growth and development for its employees as well. However, the organizational structure of IHG is very steep pyramid and people within the organization are competing against each other as they move along the hierarchy. Because the organization is very large and gradually narrows, power struggle within the organization through political maneuvering is a common thing to expect. The struggle for power and political influence within the organization can cause irreparable damage to the organization both in the short and the long run (Weidner & Purohit, 2009) and so IHG must be able to curb the negative effects of power struggle in order to maintain an overall favorable position.
Power, regardless of the scope of the domain, is a good thing. With power, allows individuals greater and deeper control over the presiding elements in a situation that would enable them to mold the outcome of the issue towards their own preferences (Weidner & Purohit, 2009). It is for this reason that leaders in organization were given enough power to change the outcome of certain situations according to the will of the organization.
However, the need for more (often excessive) power or influence within the organization, political maneuvering occurs. Power and politics, when used the wrong way, can undermine the strength of the organization.