Management at the Lakeside Hotel - Case Study Example

Introduction The financial crisis and economical dynamics, information and technological advancement, large, medium and small companies and organization have experienced rather dynamic shift of the manner in which their day to day operations are carried out. The assets and other resources that the organizations rely on has seen more improved arrangement in the sense of planning and execution of production and service delivery. Information has become an essential commodity not only to the companies but now to all clients, suppliers and the staff. This has seen the organizational structures being re-engineered towards ensuring that the generational shift and the structural organizational change fall within the present status. This is to enable the organization and other companies concerned to remain as competitive as possible. Organizational resources Every corporate, medium and small organization always posses and hold dear the materials and assets that they use to produce their products and deliver the services. Most of the organizations’ assets vary depending on the following parameters: Type of the organization whether service based or manufacturing Area of operation as this affects the legal framework of operation. Size of the organization also matters as it demands a specific level of man-power as well as other resources. Resources within an organizational entity are defined as the items and materials that the organization uses to accomplish its goals and aspirations. They utilize them to get their mission done and their vision achieved. The organization itself or the company creates a platform upon which the resources interact to produce goods and services that matches or surpasses the needs of their clients. Organizations utilize varied forms of resources which are always described in the following parameters: The human resources otherwise known as man-power Fiscal resources, e.g. capital and other financial materials Physical resources e.g. raw materials Information resources e.g. the most important in this generation’s organizations. Organizational performance This is defined or understood as a global conception representing the domino effect of human resource interaction with other resources to produce goods and deliver services to ensure clients get what they will perceive as quality products and services that they feel they got value for their money. According to Griffin W. R., organizational performance is ‘the way in which various organizations try to be effective in its utilization of resources’. An organization’s performance can be analyzed or measured in many parameters. The majorly used parameters is the statistical relationship between input and out-put. A Framework for Performance has been developed as a framework for performance for managers to carefully take into consideration as they attempt to achieve organizational objectives: As it were, performance is not a single standard component but rather consists of a compound criterion. The level of psychoanalysis of performance varies and range from the individual human resource to the user of the organizational products and services and on to the community in general. The focal point of organizational performance can concern; Maintenance Improvement Developmental goals The time frame for performance, from short term to long term has to be established. How the performance will be assessed from objective to subjective assessments should always be taken into account. Organizational management structures Organization structure may be understood as the conventional pattern of interrelationships among the mechanism of the organization. These mechanisms refer to the network of relationships among individuals and positions in an organization. Gareth J. defined organization structure as the formal system of job and reporting relationships that controls, coordinates and motivates employees so that they get coordinated and working as a team achieve the organization’s operational goals. Operations are controlled and coordinated via a communication system. The structure assumes a form of pyramid implying the following elements: The strict interrelationships with defined tasks and specific responsibilities The defined authority relationships between management levels within the organization The responsibilities and tasks assigned to various individual persons and the specific departments; The coordination of the an assortment of tasks and activities A lay down of rules, policies, standards, procedures, and methods of evaluation of performance which are developed Components of organizational structures The organization structure often positively or depending on its implementation or approach negatively influence the distribution of the tasks, grouping of tasks, coordinating the activities and the overall accomplishment of the same. The major components of these structure comprises the following Divisions of jobs Distribution and exercise of authority among the various positions of jobs Parameters of positional grouping The span of control Management at the Lakeside Hotel In the case study of the Lakeside Hotel for example, their management involved two duty managers whose responsibility was to co-ordinate the daily operations of the facility. One of them headed the front office operations and the human resource while the other was responsible for the food and beverage unit of the hotel. The span of control for the two managers was almost the same each managing six departments. Each head of department is tasked with the responsibility of their own department and human resource focus on proper service delivery that meets and exceeds the customers’ expectation. To achieve this there is need for continuous training of the staff at the hotel to give an opportunity to the employees to study the quality management. On overall there was a feeling that the hotel was running smoothly. It was however not so as the hotel experienced several problems. The hotel had to invest on a management mechanism; the Investors in People national quality standard that placed or rather positioned the need for training and development of human resource as being crucial and prime for an organization to achieve its set objectives and goals. These management systems used lacked some very important attributes such as performance appraisals and measurement as well as the continuous improvement which made the organization fail in some of its quests as were earlier set by the assessors. This led to a number of complaints and dissatisfaction which were drawn to the attention of the owners. Some of these complaints comprised the following: One irate lady guest complained (‘this hotel is like a brothel’) and indeed left the hotel after pornographic magazines were found in the room, this has happened on four occasions over the past twelve months. It was also pointed out that the leisure club lacked the ambience of a high-class establishment with cleanliness problems and an un-imaginative set of activities classes. A recent complaint regarding food quality and restaurant service standards has been another clear cause for concern. Need for organizational change As it is always said, ‘change is like a rest’. In an organizational set up it is important for the managers and other stake holders not to ignore this pharace as also in the human resource it is said that there is a difference in working for one organization in one department for ten years and working for the same organization in different departments for the same number of years and the same time these two scenarios are not the same as in working for ten years in different organizations. Organizational culture is an important element within an organization. It is however very important not to allow the same culture to infiltrate into the whole system because it may results to the culture of know-it-all among some persons and may even lead to complacency in discharging the organization’s mandate. Organizational change with all the importance it is accorded, the managers must always exercise caution us research has indicated that human beings do not like change and always feel threaten when change is announced. Always during daily organizational operations, the human resource always assumes a specific manner in which they carry out their day-to-day operations. This is always based on various aspects of the organization including: 1. Organizational rules and regulations The organizational rules of operations are always either a deterrent or a promoter os some work place behavior. These rules always form a platform that determines the kind and language of communication, mode of dressing and generally overall personal behavior. If the organization formulates stringent rules it possible therefore that the human resource interaction at work and outside work will fill oppressed and will always only work to please the authorities. Studies of the management theories X and Y have a bearing on the work environment in relation to work environment. All management focus must always to keep refreshing there system to ensure that no body within the organization will at any time consider themselves ‘trustees’. This will ensure that the man power remain determined and focused with no form of complacency. It is however important to note that the organization’s management must always consider revising the rules to meet the dynamism of the economic environment. 2. Management styles Various management styles exists and many organization based on the type of operation they are involved in always assumes or certainly adopt one style. The management styles always determine the type of form of communication pattern that may at one time be used within the organization. Depending on the type of organization management style adopted the human resource may form a medium of communication which normally fits their convenience. If the management style is rigid, then the human resource may become difficult to manage based on the perception they develop about the pattern or individuals placed over them. It is worth noting that the management style also influences the span of control which ultimately has a bearing on the staff interaction and overall quality delivery of products and service. Levels of work and organizational change 1. Individual worker level This level refers to interventions directed at changing characteristics of the individual/job interface, such as perceptions, attitudes or behaviors at work, as a means of improving worker well-being. Examples would include stress management, time management and conflict resolution seminars that became popular in the 1980s in large and medium-sized Stress management training includes a wide assortment of techniques including meditation, biofeedback, muscle relaxation, and cognitive behavioral skills training, all designed to reduce the symptoms of stress. As such, they typically are viewed as secondary prevention. It is noteworthy that stress management training could be considered primary prevention if the training includes components that help workers alter negative lifestyle habits and/or manage inaccurate perceptions of work organization factors. 2. Legislative/policy level Interventions at this level target policies, priorities or laws that affect work establishments and work practices nationally or within state or other jurisdictions (e.g., public vs private sectors). Historically, work organization interventions in US organizations have not been accomplished at the legislative/ policy level, although there are significant exceptions. For instance, the Family and Medical Leave Act of 1993 provides workers with the flexibility to take up to six weeks of unpaid annual leave to attend to family members in need of medical care, and numerous states have recently enacted legislation limiting mandatory overtime for health care workers (Golden & Jorgensen 2002). 3. Employer/organization level Interventions at this level target characteristics of the organization, such as policies, procedures, and/or benefits, as well as aspects of the organizational culture/climate. Employer/ organization-initiated efforts are common types of intervention in US workplaces, but they are very rarely evaluated in a scientific sense and thus do not often appear in the peer-reviewed literature. 4. Job/task level Interventions at this level focus on changing characteristics of the job/task or working conditions, and nearly all of these interventions would be classified as primary prevention. Examples include workload reduction, participation in decision- making, improved job control, job enrichment, and the like. 5. Individual worker level This level refers to interventions directed at changing characteristics of the individual/job interface, such as perceptions, attitudes or behaviors at work, as a means of improving worker well-being. Examples would include stress management, time management and conflict resolution seminars The change process Presently, organizations have faced several challenges in trying to ensure the continuous success of the business. Hotel industry for example has been the most severely hit with the market dynamics. It is in actual sense, the most sensitive industry among the many. The hotel industry has also strived to withstand the challenge of seasonality effect that has ravaged the revenue generation over time. It is through such considerations that the major industrial players in particular the hotel industry have decided to go back to the drawing board to assess the manner in which the organization would successfully maneuver through the various obstacles. Hotels have moved to start developing master plans and even improved their propensity to adopt technology. Among major changes that have been witnessed within the industry, are the structuring and the development of strategic plan which is known to be the road map that provides a sense of direction in which the organization and its staff should take to achieve its mission and eventually their vision. Generally strategic planning is expected to create a ‘we’ feeling hence all inclusive. The need for inclusion is paramount as the strategic plan normally outlines weaknesses and strength and provides an implementation mechanism which is then necessary for all to feel part and parcel. The strategic planning need and process Strategic planning process is one which essentially enlivens the mission and vision of any business and for this case Hotel industry. A strategic plan, properly developed, is driven from the top down; while taking into account considers the internal and external environment around the business; is the work of the managers of the business; and is communicated to all the business stakeholders, both inside and outside of the company. As the hotel industry develops and the the economic or business environments develop, they become complex and large therefore creating the need to alter the management structure to reduce the span of control or otherwise develop a framework that will facilitate efficiency in operations and service delivery to their clients. This is when the need for a strategic plan is deemed vital. There is a need for all people in the industry and the hotel to comprehend and understand the direction and mission of the business. Hotel companies normally apply a closely controlled approach to strategic planning are better prepared to evolve as the market changes and as different market segments require different needs for the products or services of the company. The benefit of the discipline that develops from the process of strategic planning, leads to improved communication. It facilitates effective decision-making, better selection of tactical options and leads to a higher probability of achieving the owners’ or stakeholders’ goals and objectives. There is no one formula or process for strategic planning. There are however, principles and required steps that optimize the value of strategic planning. The steps in the process described in this series of articles on strategic planning are presented below: Strength, Weakness, Opportunities, and Threat Analysis Key Success Factors Business Unit Strategy / Business Plan Evaluation SWOT Analysis The phrase "SWOT" is an contraction for the words "Strengths", "Weaknesses", "Threats" and finally "Opportunities". It is in essence a framework involves composing lists of the internal strengths and weaknesses within a business entity e.g. the hotel that are relevant to a certain business environment and then develop lists of opportunities untouched and threats that exist within the external business environment that could impact the investment. For example, consider a Hotel company wants to increase its sales by expanding its product offerings. If the hotel owns a product line, the product could be listed as strength, but if it the company lacks the resources to engineer and developer and be able to produce a archetype of the new product line, managers of the hotel company may at one time list lack of capital as a weakness. If the business competitors are in the process of coming up with similar identities as your product line, it could amount to a threat. The need of a SWOT Analysis Strengths, Weaknesses, Opportunities, and Threats scaffold is to enable the hotel managers think and take into account every big and small element perceived to bear the potential of impact to the success of the particular Hotel Company. Ignoring a key strength, weaknesses, threats or opportunities could to lead to a underprivileged business and management decisions. For example, if a Hotel company with a unique product line and fails to be acquainted with the threat that its competitors were developing similar products line, the organization may overestimate the sales prospective of the new product and take on loans to fund the development of the product only to ascertain that the new product-line does not bear enough proceeds to pay off the debt and settle the payroll. In other words, a strengths, weaknesses, opportunities, and threats comprehension could help managers of the Hotel evade or avoid making very expensive mistakes and determine which the business are most likely to accomplish some of the organizational goals. Components of the SWOT analysis Strength The strength of the organization is always anchored among the following pillars; People; This in other studies or organizations can be referred to as man-power or the human resource. It does not matter how the organization the organization is mechanized or how much propensity to adopt technology the organization has the human resource remain the prime factor in the success or failure of the organization. The hotel industry recognizes the human resource as a very essential component to the success of the organization. It is so as they are the ones who always have a direct contact with the clients Finances; this is the second most important component for the organizational success or failure. The finances enable the organization to run its businesses, pay its staff and the suppliers. The improvement of the services and loyalty of the man-power still entirely relies on how favorable their wages are, their working condition notwithstanding. Materials; they may be movable or immovable assets. Whatever their medium, they are also very important as they form a platform upon which all other business transactions are developed. Technology and the organizational propensity to adopt; Based on the trend of globalization, the most successful organization in moment in time are those that have successfully been able to completely integrate technology into their daily operations. Technology therefore forms another vital pillar of the organizational strengths. Information; It is said that information is power. The hotel industry appreciates that with communication well integrated in to the day-to-day organization’s operation, the organization is able to understand its position in the suppliers, consumers, employees and the locals mind. This will enable the organization to clearly develop a functional work plan that will help the organization attain the strides it has aspired to. These however, would be achieved or harnessed only when there are processes that provide a sense of direction. These processes require being least rigid and as dynamic as the organization’s human resource and at the same time incorporating the other fundamental components. Once all these are successfully done the output or the products and services or otherwise finished products will without doubt be appreciated by the clients and eventually provide a positive feedback. Weaknesses These are factors that affect the organization from within and which the organization may have a way of solving them by exploiting its strength. Coles Group realized its weaknesses that brought them from grace to grass and initiated remedial mechanism hence reengaging the right tools necessary that so they once again dominate their market niche. Opportunities These are the existing avenues that remain unutilized by the organization. They may be immediate or potentially future exploits. Some may be technology, product line, human resource or materials. Once the company utilizes these opportunities they are able to minimize weaknesses as well as; Threats These are factors that offer to the organization a great challenge. They may be controllable but cannot be eradicated. Some are associated with the regulations and policies developed by the government; others may be related to the fiscal performance of a country’s currency over others. PESTEL Analysis Prior to development of a strategic plan or arrive at any decision, it is vital to have an analysis of the broader business environment as it will enable the managers and those that fall within a decision making panel be able to have a complete knowledge of the business and its environment. This can be best assessed and scan through a mechanism termed as PESTEL analysis which is an acronym for: Political, Economic, Social and Technological all which have in one way or other influence the hotel business. Political status relates to changes in government influence and may have a greater influence on the performance of the business. Economic status is sometimes closely related to social characteristics. The economic issues relates to the dynamics and a series of random fluctuations associated with ups and downs in the economic activities which may affect the completion in the field and general pricing structure within the market. Social issues this relates to the common cultural behavior patterns commonly associated with persons in the various organizations. Technological dynamics The propensity of organization to adopt technology have also become particularly significant in the current business world and in particular the hotel industry. Organizations need to realize all the new and relevant new technologies that may be applied and help in the efficiency of the organization. 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