Using Organizational Culture To Improve Hospitality Industry Performance

The Importance of Organizational Culture in the Hospitality Industry

Question:

Using one of your hospitality work Placements: Explain in what way Hospitality Managers and leaders use Organizational culture to Improve both the success of the Business and the Commitment of Employees?

In a particular organization in the hospitality industry an organizational culture must be created and should be managed with higher strategic planning. The target should be bringing together three main aspects of the organization and these are vision, mission and values of the company and those should be articulated to the employees of the organization. On the other hand it can be said that organizational culture brings in more decent behavior towards the vendors, visitors or clients of the organization which helps to create a positive atmosphere within the workplace (Wang, Tsai and Tsai 2014).

Thus to define organizational culture, it can be said that, it is a system consisting shared beliefs, values and assumptions that governs how the employees should behave within the organization, and these values have a strong influence on the employees of the organization as well as on the clients of the organizations too, as they get the fundamental idea of the organization by its organizational culture.

It can be said that in most cases, best hospitality organizations have high quality organizational culture within the organization, which clearly indicates that companies with positive organizational culture can surely expect higher performance levels and huge profitability within a short span of time. Hospitality companies those which create an environment with rich organizational culture can be seen as long time survivors of the market. The positive culture within the organization influences the plans;those help the organization to move forward to the path of success. It is a matter of fact that, when a number of people work together, an organizational culture gets created.  An organizational culture can be said as a summation of beliefs, attitudes and the values that define the organization.The employees of the hospitality industry serve people directly. Thus for the hospitality organizations managing a good organizational culture is much important. The managers of hospitality industry can follow some specific procedures for the improvement of the organizational culture and these are mentioned below (Valmohammadi and Roshanzamir 2015).

The definition of organizational culture is too broad, it should be more specific with concrete example like what is considered to be a positive or negative organizational culture, or example of beliefs, what attitude or values are considered to be named as organizational culture.

Defining Organizational Culture and its Impact on Performance

It is a fact that culture is more about the people of the organization and less about the policies, especially when it comes to the hospitality industry. Thus, to create a specific organizational culture, that can define the values or vision of the organization, the managers need to find suitable employees who are committed to the basic principles of the organization. It is statistically proven that hiring suitable employees increases the retention rates and that improves the level of service (Kara et al. 2013). Once the employees are onboard, the managers need to nurture the positive qualities of them, for an example, it can be said that Disney University recruits people who are well courteous and customer-focused for the theme parks of the organization (Solnet, Kralj and Kandampully 2012). By this process it would be easier for the company to deal with many other issues of the organization as there would be very less issues with the employees who are highly trained by the organization and who are highly motivated satisfied and loyal towards the organization.

Disney University recruits well courteous and customer-focused people and then? What did Disney University improve? Cannot find any correlation of “training” with “organizational culture”.

When a manager hires people who are well suited for the company’s culture, the next step should be securing a long term commitment from them towards the organization. If a specified organization aims to continuously improve their service, they should invest some time and money both to train the employees to improve their skills by sending them to attend workshops, conferences and encouraging them to pursue any academic courses for their own betterment with the company. The employees would soon start to feel for the culture of the organization if they are both motivated and loyal towards the company (Raub and Robert 2013). For example, Sheraton Mirage Port Douglas had a program called cross training, which allowed employees who worked more than one year with them to join cross training course, everyone have right apply to other different department working for 4-8 week to increase and share their work experience to other people. On the other hand, managers can often choose the path of communication to increase the motivation level of the employees, as it is a fact that managers with higher intrapersonal skills are more successful in managing a satisfied and motivated workforce.

It is better to also include research on other approach that not require to invest money, or what are the lost if company cannot secure employee with long term commitment.

Strategies for Improving Organizational Culture in the Hospitality Industry

There are stories behind every organization with great organizational culture. The managers should look into the matter of writing the history of the organization, like how the company earned its reputation and got bigger day by day and what the company is aiming to reach currently. These stories would help the employees to feel that they are a part of a big organization and they would at least try their best to work as the organization requires. This would also help the customers to get to know the values of the organization (Marcinkus 2012). For an example it can be said, that if two business organizations are taken for comparison, and it is seen that attrition level of one organization is way higher than another organization, the it can be said that the company with lower attrition level is a better organization to work for, as it is clearly evident that the workers of that organization is much more satisfied motivated and loyal towards that organization.

Again, this part lack of concrete example. Anyone can say so. I also can say my company success because I create a story. What reader curious is maybe about how many percent of resign rate in Hotel A, which develop a good story, is lower than hotel B, which doesn’t have any story at all. Or how many percent of total employee of hotel A work more then 2 years compare to hotel B

Managing a culture for the betterment of the organization is more about the feeling that the managers create than putting some specified programs into place. The managers should start with the values initially, and then think it through to make them look real. The plans may not include the benefits of the employees, as an example it can be said, an organization may not have the facilities like a health club or day care centre, but they can build a solid bond and trust in between the employees that can boost the performance level of them within the organization (Kara et al. 2013).

It is a fact that initially a company’s brand value would attract customers but at the end of the day it is the culture of the organization, that will make them visit more, and there lies the importance of the organizational culture. This scenario can only be seen if the employees are ready to promote their organizational culture to the fullest. If the needs of the employees are all satisfied and they are motivated and loyal towards the organization, the performance level will shoot up to the highest limit possible and which would result in huge profitability for the organization. If the customers do not return to a hospitality organization it can be surely said that they felt disgusted with the behavior of the employees of that particular organization, or they did not like the organizational culture of that particular organization(Köseogluet al. 2013). For an example it can be said that, if seventy percent of the workforce are eligible to satisfy the needs of the clients and the clients feel satisfied with the culture of the organization they will surely return, and it is a fact that repeat guests increase revenue and the reputation of any hospitality organization (Garg and Dhar 2014).

Characteristics of Successful Hospitality Organizations

Unlike other organizations, hospitality organizations are known for their unique organizational culture, which means that the nature of each employee is important to the profitability of the organization (Boella and Goss-Turner 2013). Ideally it can be said that the customers should be able to feel the culture of the organization by interacting with the employees of the organization. Some characteristics of a successful hospitality organization are mentioned below.

A successful organization would require employees who are very passionate about their job. The employees are deeply satisfied while serving the customers. The managers of the particular organization would require the integrity and some strength of character. The hiring process should prioritize the attitude and intelligence of the employees. Finally it is seen that successful hospitality organizations have a working ambience that supports the development of unique ideas and experiments (AlBattat and Som 2013).

Thus to conclude, it can be said that for the hospitality industry, organizational culture has a huge importance and an organization cannot run smoothly without presence of a good organizational culture. The managers may take up many strategies to create a good organizational culture in the company to increase the confidence and performance level of the employees. As if they are satisfied, they will keep the customers satisfied and that will give profitability of the organization a huge boost as it is a well known fact that repeat customers generate the profitability and the reputation in such a level that a company tastes the success without a hitch. So to conclude, in short it can definitely be said that for the hospitality industry, the profitability and the level of performance is directly related to how good the company’s organizational structure is. Thus in short, it would be advisable that all the managers operating in the hospitality industry should engage in to create a positive and healthy workplace culture to ensure the profitability and level of performance get increased, and they should follow some proper steps which are mentioned earlier for the betterment of the organizational structure.

You mentioned “beliefs”, “attitude” and “values” in intro. And how each sub-section relate to or fall under which aspect?

References

AlBattat, A.R.S. and Som, A.P.M., 2013. Employee dissatisfaction and turnover crises in the Malaysian hospitality industry. International Journal of Business and Management, 8(5), p.62.

Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry: A guide to best practice. Routledge.

Garg, S. and Dhar, R.L., 2014. Effects of stress, LMX and perceived organizational support on service quality: Mediating effects of organizational commitment. Journal of Hospitality and Tourism Management, 21, pp.64-75.

Kara, D., Uysal, M., Sirgy, M.J. and Lee, G., 2013. The effects of leadership style on employee well-being in hospitality. International Journal of Hospitality Management, 34, pp.9-18.

Köseoglu, M.A., Topaloglu, C., Parnell, J.A. and Lester, D.L., 2013. Linkages among business strategy, uncertainty and performance in the hospitality industry: Evidence from an emerging economy. International Journal of Hospitality Management, 34, pp.81-91.

Marcinkus Murphy, W., 2012. Reverse mentoring at work: Fostering cross?generational learning and developing millennial leaders. Human Resource Management, 51(4), pp.549-573.

Raub, S. and Robert, C., 2013. Empowerment, organizational commitment, and voice behavior in the hospitality industry: Evidence from a multinational sample. Cornell Hospitality Quarterly, 54(2), pp.136-148.

Solnet, D., Kralj, A. and Kandampully, J., 2012. Generation Y employees: An examination of work attitude differences. Journal of Applied Management and Entrepreneurship, 17(3), p.36.

Valmohammadi, C. and Roshanzamir, S., 2015. The guidelines of improvement: Relations among organizational culture, TQM and performance. International Journal of Production Economics, 164, pp.167-178.

Wang, C.J., Tsai, H.T. and Tsai, M.T., 2014. Linking transformational leadership and employee creativity in the hospitality industry: The influences of creative role identity, creative self-efficacy, and job complexity. Tourism Management, 40, pp.79-89.