The Organizational Structure And Structure Of The Hospitality Industry

Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery

There are also staff departments, which are the researchers, marketing, accounting, and sales specializations (Bateman, 2011). Because each Chick-fil-A has a private owner, the store operator would be the line department and the corporate office will be the staff department. As defined by Bateman, a Functional Organization departmentalizes around specialized jobs, such as accounting, marketing, and production. Each Chick-fil-A restaurant operates under their own management; however the marketing, production, accounting, and human resources departments operate from the corporate office (Chick-fil-A, 2011). Since, the structure of an organization dictates how the company will grow, creating a strong foundation will benefit a company in numerous ways.

This sector works closely next to some other sectors within the hospitality industry. People frequently enter this moving sector from the fast food (quick service) outlets, restaurants, bars, cafes, pubs, catering or food services. Hotels were always major providers of food services, entertainment (business and conference services), leisure and sporting. (Cooper and Shepherd, 1998)

The main functional areas of a business are marketing, human resource, finance, information systems and production. All these interact with each other in different ways but all contribute to effective management. Management would not be completely effective if one of the above areas are missing. They are all needed in different ways to make sure that the business reaches objectives, achieves effectiveness and efficiency and while doing this trying to get a balance in which they can satisfy different stakeholders.

Organizational structure is the most crucial element for the success of any business. This is because of the way it facilitates and supports the management system of the organization. It is through the structure that specialization and differentiation are attained. For effective management of the employees, different firms employ different structures for the organization that is unique to its operation and the organization culture.

The organization chart that will work for this will be the departmentalization of function. “Functional departmentalization groups together jobs involving the same or similar activities as it allows the organization to staff all important positions with functional experts and

InterContinental Hotel Group is a hotel company with over 350,000 employees working in 100 countries. It has over 5,000 hotels globally. One of IHG’s brand is the Holiday Inn, the Holiday Inn’s international headquarters are in Americas, Europe and Australasia. In London, UK, there are 72 hotels with the Holiday Inn or Holiday express brand. The InterContinental Hotel Groups structures their business into sections depending on what the hotel’s aims are. For example, the Holiday Inn Resort is abroad with outdoor swimming pools, it’s a very holiday place when you can spend 1-2 weeks there where the Holiday Inn is a place to stay over for one night or even the weekend. These two hotels have the same brand but different aims.

Manager’s of an organization has to use structure to help the company run efficiently. “The five types of organizational structures are functional, divisional, matrix, team-based, and virtual network” (Draft, 2013, p.316). Functional structure in an organization that is developed by grouping departments by the skills, level of knowledge, activities done daily, and the resource used. “This structure places specific departments from the bottom to the top” (Draft, 2013, p.318). For example, specific departments such as: human resources, accounting, engineering, and manufacturing are placed at the top, while there are mostly seen at the bottom in other organizations. While common functions such as; people, facilities, and other resources are combined together as a single department instead of being divided into multiple departments.

The scope of the hospitality industry refers to the range of businesses that provide services and facilities. The hospitality economy is one of the country’s key industries with huge growth prospects in jobs. In employment terms, restaurant are easily the largest sector, closely followed by a pubs, bars and club with the hotel sector growing more slowly, and the contract food service sector holding steady .

The functional structures allow all the employees inside the functional divisions of a company to perform a set of specific assignments. Every department within a company is staffed with employees that are knowledgeable in that specific field. For example, employees that specialize in engineering stay within the engineering section of the company, and the administrator that work in the Human Resources (HR) department stay in that sector of the company. It is a very comprehensible system to keep the right people in the right place doing the job they are trained to do The only negative aspect to this setup of this structure is that there is little to no communication between the among the separate divisions. However, if an emergency were to arise, each division would be able to respond accordingly.

1).The relationship between Hospitality and Tourism: Tourism and hospitality go hand in hand, the hospitality industry offer services like accommodation, transportation, food and beverage, recreation and leisure. Tourism is the activity by the tourists where they engage in travelling to destinations where they want to experience recreational and leisure activities and most of the time avails of accommodation, food and beverage. The hospitality industry is the supplier of the services for tourism. The meaning of hospitality is providing a safe and enjoyable environment for patrons. It also means responsibly serving liquor, to ensure that patrons do not become unduly intoxicated and subsequently a problem for management, staff and the

The hospitality service industry for globalization has been increase rapidly. These situations happen because there are lot of potential to national. Most of the growth of hospitality service industry depends on opportunity to develop in the market. The growth of hospitality service industry will being one of business trend nowadays because can obtain more profit or revenue. This situation also will be follow by movement of time. The demand of this service in the market being increase from time to time. The society nowadays needs the hospitality service industry to fulfil needs and wants. So, the growth of the hospitality service industry always increase even it small business. Others than that, this hospitality industry have being focus to others country to develop growth economic.

The hospitality industry is one of the fasters growing service industry in the world. Over the years, the industry has transformed since the first motel. The e Oxford English Dictionary online defines hotel as ‘an establishment providing accommodation meals and

Hospitality industry is a very broad term which comes under the service industry. Many industries come under it like event management, transportation, travel and tourism industry, hotel industry etc.

Organizational functions within an organization are Sales and Marketing, production, human resources, finance, Research & development, and Purchasing etc. Each of them work together to achieve the organizational objectives. Interrelation of these function relay on the base on dependency and also the structure of organization. Relationship of these function different in each organizational structure. Interrelation of these function have some advantages and disadvantages.