In 1966 The Son of Hilton, William Barron Hilton, became president of The Hilton Hotels Corporation. In 1975 Hilton sold a 50 percent interest in six of its Hotels to Prudential Insurance. Conrad Hilton also endowed the Conrad Hilton College of Hotel and Restaurant Management at the University of Houston. Conrad Hilton died in 1979, at the age of ninety one and Barron Hilton assumed the chairmanship. By the year 2000 the Hilton Hotel Corporation had nearly 500 hotels around the world. Assets in 1993 totalled $2.67/£1.48 billion.
3.2 Main Characteristics of organisational structure
Job definition is what is required of the employee in the job, and what skills are required to do the job, for example: A job definition of barperson would be to serve customers, to clean the bar, to put empty glasses into dishwasher, to provide a quick and quality service etc.
This is where a specific job is given to a certain person with certain skills, for example a receptionist needs to have computing skills, high communicational skills etc.
Span of control is the number of subordinates one supervisor can manage effectively. Span of control generally means: One superior at the head of the organisation and a varying number of departments within an Organisation
The size of span of control depends on the department and nature of the task. Some departments such as bar and restaurant, housekeeping, require a wide span of control, so one supervisor can manage to lead about 8-10 subordinates. However, some departments may need more than one supervisor to achieve an effective performance.
Job description is a description of the responsibilities associated with a given job. A job description is a valuable map for performance; it can help employees understand the job, the manager's expectations, and the company goals.
Job descriptions at the Hilton
Rooms Department; Includes reservations, the front office, housekeeping, security and engineering. Responsibilities of the room department include reservations, guest reception, room assignment, tracking the status of rooms (available or occupied) prompt forwarding mail and phone messages, security, housekeeping of guest rooms and public spaces such as lobbies, and answering guests questions.
Marketing and Sales Department:
The primary responsibility of the sales managers who make up the marketing and sales department is sales, or the selling of the hotel facilities and services to individuals and groups. Sales managers sell rooms, food, and beverage to potential clients through advertising, attendance at association and conference meetings, and direct contacts. The sales managers work more or less independently in their particular market.
Human Resources Department:
The human resources department of the Glasgow Hilton Hotel has three main functions: Employee recruitment, benefits administration, and training. The director of HR is also expected to be an expert on labour laws and to advice managers in other departments on these topics.
Although the HR department recruits, interviews, and screens prospective employees, the final hiring decision rests within the department in which the potential employee will be working. The effectiveness of the Human Resources Department depends on ability of its manager to form effective working relationships with managers of other departments.
3.3 Organisational Structure of the Hilton Hotel Glasgow
The Hilton Hotel, Glasgow operates a functional structure.
This is illustrated in the diagram below.
-Reservations -Food production -Employee -Sales Managers -Assistant Controllers
-Front office -Food services Recruitment -Finance Operations
-Housekeeping -Room service -Benefits Manager -Purchasing
-Laundry -Beverage Manager -Training -Food and Beverage
-Security -Convention/catering Controllers
-Engineering -Stewarding -Credit Systems
-PBX
This is the structure that most Hotels adopt. The reason is that this is a common structure for most hotels of under 500 rooms. This structure has worked effectively for many years and has been developed from time to time.
3.4 Generic Organisational Structures
There are five approaches to organisational structure. These include:
- Functional
- Divisional
- Matrix
- Teams
- Network
Functional approach
This is the grouping of jobs into departments based on similar skills, expertise and resources. It can be thought of as departmentalisation by organisational resources, because each type of functional activity e.g. Personnel, engineering, manufacturing represents specific resources for performing the organisational resources which are grouped together into a single department.
Advantages:
- Efficient use of resources, economies of scale
- In-depth skill specialisation and development
- Career progress within functional department
- Top manager direction and control
- Excellent coordination within functions
- High-quality technical problem solving
Disadvantages:
- Poor communication across functional departments.
- Slow response to external changes, legging innovation
- Decisions concentrated at top of hierarchy, creating delay
- Responsibility for problems is difficult to pinpoint
- Limited view of organisational goals by employees
- Limited general management training for employees
Divisional approach.
Departments are grouped together in separate, self-contained divisions based on a common product, programme, or geographical region. Diverse skills rather than similar skills are basis of departmentalisation.
Advantages:
- Fast response, flexibility in an unstable environment.
- Fosters concern for customers’ needs.
- Excellent coordination across functional departments.
- Easy pinpointing of responsibility for product problems.
- Emphasis on overall product and division goals.
- Development of general management skills.
Disadvantages:
- Duplication of resources across divisions.
- Less technical depth and specialisation in divisions.
- Poor coordination across divisions.
- Less top management control.
- Competition for corporate resources.
Matrix approach.
Functional and divisional chains of command are implemented simultaneously and overlay one another in the same departments. Two chains of command exist, and some employees report to two bosses.
Advantages:
- More efficient use of resources than single hierarchy.
- Flexibility, adaptability to changing environment.
- Development of both general and specialist management skills.
- Inter disciplinary cooperation, expertise to all divisions.
- Enlarged tasks for employees.
Disadvantages:
- Frustration and confusion from dual chain of command.
- High conflict between two sides of matrix.
- Many meetings, more discussion than action.
- Human relations training method.
- Power dominance by one side of matrix
Team approach.
The organisation creates series of teams to accomplish specific tasks and to co-ordinate major departments. Teams can exist from the office of the president all the way down to the shop floor.
Advantages:
- Some advantages of functional structure.
- Reduced barriers among departments.
- Less response time, quicker decisions.
- Better morale, enthusiasm from employee involvement.
- Reduced administrative overhead.
Disadvantages:
- Dual loyalties and conflict.
- Time resources spent on meetings.
- Unplanned decentralisation.
Network approach.
The organisation becomes a small, central broker electronically connected to other organisations that perform vital functions. Departments are independent contracting services to the broker for a profit. Departments can be located anywhere in the world.
Advantages:
- Global competitiveness.
- Work-force flexibility/challenge.
- Reduced administrative overhead.
Disadvantages:
- No hands-on control.
- Can lose organisational part.
- Employee loyalty weekend.
3.5 Organisational Charts.
An Organisational Chart is a chart which represents the structure of an organisation in terms of rank. The chart usually shows the managers and sub-workers who make up an organisation. The chart also shows relationships between staff in the organisation.
The chain of command consists of a series of relationships from the highest position in the Hotel to the lowest. The chain of command specifies a clear reporting relationship for each person in the Hotel and should be followed in both downwards and upwards communication. The chain of command enables each new employee, no matter what their position, to know exactly whom they are responsible for and who they report to.
The diagram of the Hilton hotel Glasgow is illustrated below.
Example
3.6 Organisational Relationships
The line workers within the Glasgow Hilton Hotel, such as waiters, housekeeping staff, porters, kitchen staff etc have responsibility to perform as good as their supervisors expect. Supervisors are responsible and accountable to their department managers and so on up to the General Manager of the Glasgow Hilton Hotel. Small departments such as the laundry, security, engineering etc are united under the Rooms Department, which has a direct connection to the General Manager as well as other departments which are directly connected with the General Manager of the Glasgow Hilton Hotel.
3.7 Organisational Control
The co-ordination and co-operation between subordinates and superiors within the Glasgow Hilton Hotel is quiet high. This makes the business easier to control. The General Manager of the Glasgow Hilton Hotel is in charge to check the departments on a daily basis and to make sure that the internal and external customers are happy and their needs are satisfied.
The control mechanism of the Hilton hotel includes: Motivator schemes and disciplinary rules, verbal warnings 1st/2nd, dismissed, takeaway staff benefits.
3.8 Interview Findings
An interview was conducted with Miss. Jennifer McNeil, who is The Human Resources Manager of the Glasgow Hilton Hotel. The interview lasted approximately twenty minutes. (see appendix for sample interview questions)
The interview established:
- The Hilton hotel has adopted a hierarchical functional structure and it was highlighted that this is the structure that most hotels of under 500 rooms adopt.
- The size of the span of control depends on the department of the hotel as some departments require a wide and others a narrow span of control.
- The departments within the hotel have a direct connection with the General Manager.
- The chain of command within the hotel enables new employees, no matter of the job, to know exactly who they report to.
- Channels of communication between subordinates and superiors are clear to control the organisation easier.
- The General Manager is in charge to check the departments on daily basis.
4.0 Conclusions
- The Glasgow Hilton Hotel is a part of the Hilton International chain, which is one of the richest and most successful organisations in the hospitality industry of the world.
- The mission statement of the Glasgow Hilton Hotel aims to be the preferred choice in the UK hospitality and it does not seem to be unrealistic as success of the Hilton Hotel is mostly determined by power, wealth, name and leading place of the Hilton International in the hospitality industry. The glamour of the Hilton brand brings the best professionals and employees to the Hilton Hotels and helps to keep so well known higher standards at the top.
- The organisational structure of the Hilton Hotel Glasgow is a functional hierarchical structure which works successfully for the Hilton hotel Glasgow.
5. Recommendations
There are no recommendations, as the Glasgow Hilton is a successful Hotel.
Bibliography
Webs used:
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Handouts used:
Structure of business organisations; Organisational Structures; Types of organisational structures; Departmentalisation.
Geno Trapaidze HND Business Administration
