Empowerment in the Organization Marriott International - Case Study Example

Management Report on Empowerment in the Organization Description of the Operation As of June 16, 2006, the Marriott International operated or franchised 2,789 lodging properties, with 507,130 rooms (Des Moines: Marriott International Reports Robust 2006 Second Quarter. Significant REVPAR, Margin and Earnings Growth, 2006) in 67 countries (Marriott Emerges as a Top Performer on Black Enterprise's 40 Best Companies for Diversity List, 2006).). Marriott International, Inc. is an enterprise in the service sector under Hospitality, Hotels, Motels and Tourism Industries. This company is known globally for franchising and operating luxury hotels including related lodging facilities (Marriott 2006. Marriott International Inc.'s official address is at 10400 Fernwood Road, Bethesda, Maryland, MD 20817 United States with telephone number 1-301-3803000, fax number 1-301-3803967, E-mail: investorrelations@marriott.com , Website: http://marriott.com/default.mi. Its current workforce is 133,000 as of March 25, 2005, headed by Marriott, Jr., J. W. as the Chairman of the Board, Chief Executive Officer. For a brief background history, Marriott International was founded in 1993 when Marriott Corporation split in two companies (Marriott 2006). The other company was named Host Marriott Corporation. In 1995, Marriott International purchased 49 percent interest in Ritz-Carlton. In 1998, Marriott International purchased an additional 50 percent interest in Ritz-Carlton, giving them 99% ownership. Marriott International begins a major restructuring by spinning off Senior Living Services Communities and Marriot Distribution Services on 2002, so that it can focus on hotel ownership and management. It was finished at 2003. The Ramada International Hotels & Resorts is sold to Cendant on September 15, 2004. Marriott International's operations are comprised of full-service lodging, timeshare, extend-stay lodging, synthetic-fuel and select-service. Full-service lodging (65%), timeshare (14%), extend stay lodging (6%), synthetic-fuel (4%) and select-service (11%) are included in the lodging business (Marriott 2006). The company operates and continuously develops franchises hotels and corporate housing properties under thirteen different brand names. Marriott International, Inc.[NYSE: MAR] is known around the world for operating and franchising of value and luxury hotels and related lodging facilities. Their operations are separated in five business segments. Likewise, the operation, marketing and development of Marriott timeshare under four separate brand names are under Marriott International. While its synthetic fuel operation consists of interest in four coal-based synthetic fuel production facilities (Marriot 2006)The synthetic fuel produced by the Marriott International, Inc. qualifies for tax credits based on Section 29 of the Internal Revenue Code. For the fiscal year ended 30 December 2005, The Marriott International's revenues rose 14% to $11.55B. Net income from continuous operations rose 12% to $668M (Marriott 2006). Revenues reflect increased REVPAR and occupancy levels resulting in higher revenues from the full-service, select-service, timeshare and extended-stay lodging segments. Net income was partially offset by an increase in the general and administrative expenses that resulted to pre-tax charges associated with the CTF transaction (finance.yahoo.com). Outline of the Staffing of the Operation Staffing pattern in every branch of the Marriott International is similar. Whatever system they use in one branch are replicated in all the others. That is, their management is continuously analyzing the competencies and skills required for globally-oriented staff in the lodging industry, essential for companies that hope to remain competitive. Their aim is excellent service through highly skilled and efficient staff that pass international standards. This company builds their own specific training programs as well as individual employees, as a general guide for self-development. The management brings together available theories and best practices together, and creates tools for future development programs within the company. Nature of Human Resource Management in the Operation Human resource management in the operation believes in developing staff that are globally-competitive and focused on the hospitality industry. Before achieving this, the company decided on the staffing that they will focus on. In the case of this company, they opt to directly hire employees with the qualifications that suit their needs. They train these new recruits extensively to be the best in their field. This ensures achievement of high-performing management and workforce. The company created improved appraisal performance systems that address performance issues. This system is following staff and management practices that conform to international standards in the hospitality industry as well as several regulations. They company is continuously developing approaches to employee benefits and compensation. Likewise, they see to it that employee records and personnel policies are regularly assessed by the clients, co-workers and management, reviewed internally as well as by the outside auditors and updated by the Human Resource Division of the company. It is very important for the company to make these personnel policies known to the staff, usually in the form of employee manuals. As a whole, as the hospitality industry goes global, further research is conducted by the company in order to establish leadership styles and components for a global leader and the outcomes in the hospitality industry, which will set clear directions on creating leadership development programs with a global perspective. Extent to which Empowerment is Evident in the Organization In the current years, empowerment of their workforce has been the aim of organizations in the hospitality business. As a result of the developments in the hospitality business from the previous years, companies begin to address the need for workforce in the hospitality industry that respond to the requirements of a global environment. The strong international development of the industry has forced many corporations to allocate employees to worldwide assignments backed up by adequate training, considering the requirements needed for the business to be successful in those new markets. Analysis of the Reasons for Empowerment/ Disempowerment In the case of the Marriott International, economic conditions, competition, and global trends ratchet up the pressure on this company and its executives striving for growth and profitability. In this climate, the Marriott International believes that the hotels that are best positioned for success are those that help their people develop superior qualities that empower them in critical areas. This may be translated to added cost to companies but they still opt to empower their people since they believed that this will be beneficial in the long run. The need to empower the workforce in an organization has been recognized currently and is seen as vital for the long term well-being of the industry. In current years, the hospitality industry has undergone a transformation in its organizational sex structure. There is an observed raise in the statistics of women finishing their degrees from the hotel and restaurant management courses. This trend implies that the organizational sex structure of executive position is probable to transform in the long-term, with simultaneous modifications in the classic empowerment approach appreciated in the hospitality business. In effect, to succeed in this industry it is needed to mix transactional and transformational leadership skills. As an example, communication skills were honed ``on-the-job'' while making progress reports. This is being done to further achieve growth which can be translated to success of an organization. Hospitality industry affected leaders' perceptions of development issues and concepts. New hospitality industry perspectives reported to be gained trough interactions with staff and fellow leaders during seminars and conferences, and as a part of their work leaders. It also helped them out in practicing their theory. Leaders' involvement in hospitality industry-supported programs strengthened their ability to influence decision-making (Morda 2004. They used their findings to inform the decision-making body in their organization and used their gained expertise, knowledge, and contacts to influence company policies. Because of the professional benefits it brought to them such as exposure to new perspectives and methods, assistance and others leaders highly valued their direct contact with their workforce. And the value of it added to their work performance like assistance with the design, networking, accessing information. Recommendations for Improving Empowerment Levels in the Organization In order to improve empowerment level in the organization, there is a necessity to gather large amount of data that reflect the importance of establishing an empowerment framework that will resume key elements that define quality workforce. In regards to the research done for the hospitality industry, some authors like Burchell (1991), Berger, Ferguson and Woods (1989), Bond (1998), and Greger & Peterson (2000) have identify the personality traits of effective leaders within a global environment. Global services organizations as well as training corporations can be identified and tapped for their services in order to determine the actual needs and practices of the workforce in an international organization like the Marriott Company. Hospitality industry's support to its leaders brought leaders and customers closer together in mutual cooperation. The company has to make sure that they must strike a balance between customer satisfaction and effective business management, ensuring financial viability, and facilitate a smooth-running customer service, while ensuring staff work together as a team. Additional aspects should be included in providing capacity-building training seminars for the globally-oriented staff. It is important in designing training program for the workforce of hospitality companies to take into consideration several principles of workplace learning, to which leading hotel and hospitality companies adhere. It will be of big help to the success of training programs if these learning fundamentals will be incorporated in the module. These will engage and excite learners, improve their skills, and contribute to the achievement of strategic business goals. REFERENCES Berger, F., Ferguson, DH & Woods, R.H.1989. Profiles in innovation: Companies and leaders. Cornell Hotel and Restaurant Administration Quarterly, 30 (2), 98-105. Bond, H. 1998. Lodging new breeder of leader. Hotel and motel Management, 213 (16), 1104-1107. Burchel, J. 1991. A head of Leadership. Hospitality Press, Hotel & Management International Association. Des Moines: Marriott International Reports Robust 2006 Second Quarter. Significant REVPAR, Margin and Earnings Growth. First Call. PR Newswire, July 13, 2006. Washington: WorldNow and WHO-TV. Greger, K.R. & Petterson, J.S. 2000. Leadership profiles for the new millennium. Cornell Hotel and Restaurant Administration Quarterly, 41(1), 16-29. Marriott Emerges as a Top Performer on Black Enterprise's 40 Best Companies for Diversity List. News & Information. PR Newswire, June 20, 2006. Morda, Romana Leadership in the hospitality industry: Boadecia vs. Attila--bring it on! Industry & Business News, August 1, 2004. From the Journal of Hospitality and Tourism Management. Read More