In order to a successful run of a business, it is very much essential to ensure that there is a complete transparency existing between all the employees (Murat, 2015, p.45).
Over the decades, The Dur Hospitality group has been successfully rendering hospitality services to all its guests. They have a tradition of greeting their guests by saying My Home is yours. It was established in the year 1976, and since then it has been trying its level best to deliver the best and premium services to all its clients (Dur.sa, 2017). The Dur Hospitality Group is very much concerned about the rich cultural heritage of Saudi Arabia. According to the Savola group, the best successful mantra for each and every company always will be to plat to their respective strengths.
The major objectives of the study are:
In this report, the main highlight will be the corporate structure of Dur Hospitality Group with aligning mission and vision statement of the organisation. This study will also explain the current organisational structure and will also shed light on the planned changes. Moreover, the corporate culture of Dur Hospitality Group will be described with explaining the leadership style. This report will talk about the resistance in continuing the changes with highlighting the process to solve. The report will measure the strategies identifying the stakeholders of the organisation.
The mission statement of the company is to serve as an example by greeting the guests in nature as if they are in their homes, both within as well as beyond that of Saudi Arabia (Dur.sa, 2017).
The vision of this company is to be the partner of choice in the hospitality and the real estate sector across the entire Kingdom in the fields of investment, development and operations. They want to adopt and use an international standard with the local spirit. The organisation believes in the combination of skills, vision and capabilities.
Figure 1: Organogram of Dur Hospitality Group
(Source: Dur.sa, 2017)
Vertical structure is followed in the Dur Hospitality Group. The above structure defines the organizational structure that is followed in the Dur Hospitality. The employees over here are placed at different posts and different levels in accordance with their level of knowledge and their level of expertise. CEO of the organisation is on the top and other middle managers are in the next hierarchy. Under those managers, there are subordinates of the managers. In department wise, the managers, middle managers, senior managers, marketing and human resource departments direct the activities to their subordinates and they do according to the specific lines of business. The main advantage of vertical structure is that it has defined the chain of command with the areas of responsibility (Swanson and Creed, 2014, p.30). However, the problem of vertical structure is that it takes much time to make decision and bureaucracy are mainly seen in the vertical structure.
Structural change is required for the organisation Dur Hospitality Group that can stem the internal and external factors. The change is required in organisational hierarchy, management systems, administrative procedures, job structure and chain of commands. Dur Hospitality is following the vertical structure and in this structure, it is seen that Board of Directors at the top of the management and after that it follows the CEO. However, the communication flow is not helpful for the employees to understand the job roles. The information gets changed when communication goes down from CEO to middle managers. It often happens that this structure leaves little room for motivation and creativity. Employees do not put their own ideas in the organisational decision-making process. The communication flow within Dur Hospitality Group is inflexible and slow. Most importantly, vertical structure gives less interdepartmental cooperation and coordination, cooperation and communication can suffer (Hogan and Coote, 2014, p.1610). In Dur Hospitality Group, departments and hierarchy cannot insulate people to work for the organisation. The structural changes of the organisation are also a response to the market shift and it would help Dur Hospitality in creating new departments. They can follow the structure of horizontal structure as it empathises on the collective goals of the organisation with teamwork. In the first step, the management must support the changes and employee involvement is necessary. Communicating the changes to the stakeholders will make easy for the implementation.
Corporate culture is important for the organisation as it is related to the organisation learning, planned change and development of the organisation. According to Burke (2017, p.34), planned change cannot happen without culture as the core sources of resistance to change. In the first part, artefacts are the surface which can be discerned easily and these are visual organisational structure and process (Baffi and Nardi, 2017, p.46). Dur Hospitality Group can start a dress code for the employees. Espoused values are the organisation’s concerned strategies, philosophies and objectives. Dur Hospitality can change the cultural management through recruiting employees from the different background. Basic assumptions are core essence of the culture and these are hard to decipher. Dur Hospitality has some taken for granted beliefs and that can be achieved through teamwork only as it is in human existence with human relationships.
Figure 2: Culture of the organisation
(Source: Lewin, 2013, p.45)
The leadership of the Dur Hospitality must be a pattern of shared knowledge in group-based learning. Structure of the organisation is vertical, however, it is needed to make horizontal in order to solve the issues of external adaptation and internal cooperation. Leaders of the organisation must teach members in the correct way and that must solve the issues. The leadership of Dur Hospitality must be democratic style and it would help the organisation in keeping in touch with the employees’ issues.
The visible aspect of the organisation can be reflected in artefacts, dress, slogans and behaviour of the employees and dress codes of the employees (Yildrim, 2015, p.65). These can be controlled through measurement systems, financial and non-financial systems. Dur Hospitality can plan resource allocation systems through planning, standards, budget and analysis of financial resources. On the other side, the invisible aspect of the organisation is related to the underlying values that an employee can make regarding the unacceptable and acceptable behaviours. Invisible systems of the organisation can be changed through socio-cultural systems and Dur Hospitality can bring changes in the communication system, value sharing, meeting and control by a peer. Employees’ psychological changes can be changed through psychological systems, like incentives and rewards and risk sensitivity issues.
This change is strategic changes of the organisation and resistance occurred when the alteration is not interpreted well by the management. Dur Hospitality can face rational resistance from the structure of the organisation as the assigned number of managers will be reduced in structural changes and the amount of work pressure to each and every regional manager and the vice president will be increased. Moreover, emotional resistance can come from the employees in structural changes as there can be a sudden loss of job, then there will be a great despair caused among the employees who have been working for a large number of years (Wirth, 2016, p.56). New changes always bring insecurity and the employees will also suffer from the lack of security. Low tolerance will be there that will be responsible for increasing the depletion of the human resource. However, political resistance can come from internal management as higher executives will not try to relocate to the new location and informal resistance from top executives at decision-making time will hamper creating a concrete strategy.
Dur Hospitality can face the issue of emotional conflict as the new horizontal structure of the organisation can bring the huge change in the behaviour of the senior managers in alteration period. Moreover, the employees can feel lack of interest and change process can bring the lower productivity as employees can do strike from the interests of upper management. Employees can feel tensed for the fear of loss of job and stability of new job roles and positions (Suh et al. 2016, p.256). In addition, struggle among the employees can lead to the organisational resistance and this structural change can bring coalition between high and middle-level management.
The Thomas Kilman conflict model can be used to find out the solutions of the conflicts (Yildirim 2015). The board of directors can group with the top-notch political parties. This will help in achieving the goals. The company must always aim at making only win-win situations for the overall benefit. In order to prevent the employees from losing their jobs, a large and wide range of roles are to be allocated to the concerned employees.
Figure 3: Thomas Kilman conflict model of resolution style
(Source: Thomas, 2016, p.45)
Kurt Lewin Field Force analysis is distinguished factors within the situation and it drives the organisation towards the goals. As supported by Robbins and Judge (2013, p.67), developing emotional intelligence and self-awareness can help to explain the forces that work within the organisation. In the first place, Dur Hospitality Group needs to define the structural changes and the desired objectives in the meeting in order to escape from present status quo. Then, it is needed to brainstorm the driving forces that are most favourable for the change. However, those are unfavourable for the organisation, can be recorded to force field diagram. Then, it is needed to review both driving and restraining forces. Moreover, review of the changes is important with making the strategy to implement these.
Figure 4: Force Field analysis of Kurt Lewin
(Source: Lewin, 2013, p.65)
Board of directors:
In Dur Hospitality, they have the ultimate power to take any decision and they can conclude the decision through introducing the change in the structure of the organisation gradually.
General Manager:
General Managers of Dur Hospitality has the power of setting regulation and rules within the organisation and they have to participate in the organisational process. The method of decision for them is communicating and organisational change process must be communicated to all levels through downward communication flow.
Functional Heads:
The organisation Dur Hospitality is going to transform in structure and functional heads are the ones who can bring the transformation by applying into the employees. Employees become used to with the vertical structure and training process will bring new ideas and skills among employees. Functional heads can provide training to the employees in becoming used to with new changes.
Dur Hospitality can implement ERP system in order to implement the new organisational Information Technology as the organisation must be consistent in communicating each department. ERP is the integrated management of business process and often works in real time with software technology. The activities include in ERP are product or service planning, service delivery planning and marketing planning (Sollie et al. 2017, p.16). Dur Hospitality can gain positive impact of ERP system as it fosters the collaboration in the workplace and it helps to forecast the products and services. Moreover, it can help in mitigating the competition and efficiency in work. However, ERP cost can be bigger for the organisation and ERP is an IT solution as an organisation needs to take help of IT firm (Shukla et al. 2016, p.120).
Conclusions
The main aim of the report is to highlight the limitation of the present structure and shed light on structural change of the organisation Dur Hospitality Group. Thus, it can be concluded that the new changes that the company will incorporate in its structure will enable in making the overall working of the company much easier and faster. This can be done by implementing the proper rules of organization behaviour within an organization. This is also a kind of scientific approach that is done in order to increase the efficiency among the workers. It can be recommended to the organisation Dur Hospitality in improving the communication flow in the organisation as it is necessary for structural changes. Communication flow can be improved through meetings and team working. Team leaders need to provide training to the team members in achieving the organizational goals and implementing IT system can help in making the process effective.
References
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