Organization Design and People Management in the
Tourism Industry
Lecture 1
1. Broad nature, scope and environment context of the hospitality
industry.
Tourism has a high economic impact and therefore economic relevance. The
industry has a lot of specific characteristics; it is labor intensive; low wages; the
nature of the workforce (many different kinds of employees, ex. migrants, young
people, etc.). An organization has to be aware of this and keep this in mind while
managing the people within the organization.
The nature and the scope of the industry is quite different from other industries.
The tourism industry is divided in many different sectors, that are all very
different from each other. The sectors have different characteristics, and
therefore organizations in tourism have all different characteristics. (Ex. think of
accommodation, attractions, transport, travel organizers, destination
organization sector, which all have different categories, as well)
There is an interdependence between all sectors. If one of the sectors fail, the
other sectors may as well. Ex. transport fails, so the customer of the hotel has a
negative experience. So, all organizations are completely different, but have a
huge effect on each other. They are interdependent.
Individual companies often straddle two or more sectors. Ex. TUI
(accommodation, transport, travel organizers) Ex. LegoLand -> theme park with
hotels inside.
2. Importance of general management theory to managing
organizations and people in the hospitality industry.
Some businesses don’t realize how interconnected they are, and how different
the nature of their organization is. There is a huge complexity in managing a
business like this. The host employee is very important because they are in touch
with the customer. However, there is also a “back office”, namely the
organizational support.
All organizations have 4 common factors: People, Objectives, Management,
Structure
The effectiveness of the organization will depend upon:
1. The quality of its people
2. Its objective and structure
3. And the resources available to it
Those factors are all interconnected and influence the common factors that any
organization has. All those factors help the organization to reach its goal.
Managing the factors is the most important if a company wants to succeed.
, 3. Main similarities and differences between the hospitality industry
in comparison to other industries.
Yes, the hospitality industry is unique. However, there are a lot of similarities with
other industries, as well. Very often managers do not see these similarities. The
tourism sector is interesting to study, as it is very different from other sectors. On
the other hand, the tourism sector can get inspiration from other sectors and vice
versa. Ex. Apple stores are different in their customer approach because they
were inspired by the Ritz Carlton’s way of treating customers. Sometimes
completely different sectors can inspire each other and create new, successful
concepts.
Some staffing characteristics of the hospitality industry are also different, for
instance that staff might live on the premises, the majority of staff receives low
pay, long and “unsocial” hours, large proportion of female, part-time, agency
staff and people from abroad.
A major characteristic of this industry is the role of people and the direct contact
and interaction between staff and customers… Service industries are in need of
management in order to operate effectively in the same way as any other
industry.
Lecture 2
Strategic planning stages
Strategic and effective management takes place within the total corporate
context and involves established relationship and coordination among all levels
of the organization.
Lecture 3
1. The important “match” between strategy and structure
The organization is affected by external environmental influences (of all kinds)
and in turn it influences the organizational structure which is developed to
ensure the effective coordination of all activities and functions.
,Organizational performance is dependent upon the process of matching
structure, strategy and environment. The better the match, the better the
organization functions.
Organizational structure comes from organizational design activities...
... Organizational structure is the result of a long-term commitment to the
effectiveness and efficiency of the service enterprise. (The only time of changes
to the organizational chart is appropriate during phase of growth or
reengineering).
Basically: structure follows strategy (the structure should be coherent with the
strategy that was implemented)
Structure:
Framework that defines
o Work roles and relationships
o Division of work
o Tasks and responsibilities
Structure affects economic efficiency and performance, morale and job
satisfaction. The need for “matching” requires the continual review of the
structure. Structure is a major component of an effective strategy!
2. Introduction to Organization Theories
The main approaches to organization structure design:
o Classical approach (including scientific management and bureaucracy)
o Human relations approach (including structuralist perspective)
o System approach
o Contingency approach
, 3. The classical approaches to OD
Emphasis on purpose, structure and technical requirements
Importance of set principles
Aims to increase efficiency!
Focused on: Division of work, reporting relationships, clear definition of duties
and responsibilities, maintaining specialization and coordination
Classical approach = more of the managerial perspective
SCIENTIFIC MANAGEMENT
- Increased productivity from individual workers
- Efficient methods and procedures for the coordination & control of work
- Monetary incentives are the primary motivator
Principles: Scientific selection, training and development of workers; Clear
division of work & responsibilities between managers and workers; Close
management control over the actual process of work.
Disadvantages: Instrumental view of human behavior; Individuals as units of
production; Jobs repetitive, boring and requiring little skill (de-skilled); Close
management control over workers; Removing decisions on how work is carried
out (management control process)
Relevance to hospitality industry:
o Systematic approach to management (job analysis, systematic selection &
training, payment by results, production control and management by
exception)
Tourism Industry
Lecture 1
1. Broad nature, scope and environment context of the hospitality
industry.
Tourism has a high economic impact and therefore economic relevance. The
industry has a lot of specific characteristics; it is labor intensive; low wages; the
nature of the workforce (many different kinds of employees, ex. migrants, young
people, etc.). An organization has to be aware of this and keep this in mind while
managing the people within the organization.
The nature and the scope of the industry is quite different from other industries.
The tourism industry is divided in many different sectors, that are all very
different from each other. The sectors have different characteristics, and
therefore organizations in tourism have all different characteristics. (Ex. think of
accommodation, attractions, transport, travel organizers, destination
organization sector, which all have different categories, as well)
There is an interdependence between all sectors. If one of the sectors fail, the
other sectors may as well. Ex. transport fails, so the customer of the hotel has a
negative experience. So, all organizations are completely different, but have a
huge effect on each other. They are interdependent.
Individual companies often straddle two or more sectors. Ex. TUI
(accommodation, transport, travel organizers) Ex. LegoLand -> theme park with
hotels inside.
2. Importance of general management theory to managing
organizations and people in the hospitality industry.
Some businesses don’t realize how interconnected they are, and how different
the nature of their organization is. There is a huge complexity in managing a
business like this. The host employee is very important because they are in touch
with the customer. However, there is also a “back office”, namely the
organizational support.
All organizations have 4 common factors: People, Objectives, Management,
Structure
The effectiveness of the organization will depend upon:
1. The quality of its people
2. Its objective and structure
3. And the resources available to it
Those factors are all interconnected and influence the common factors that any
organization has. All those factors help the organization to reach its goal.
Managing the factors is the most important if a company wants to succeed.
, 3. Main similarities and differences between the hospitality industry
in comparison to other industries.
Yes, the hospitality industry is unique. However, there are a lot of similarities with
other industries, as well. Very often managers do not see these similarities. The
tourism sector is interesting to study, as it is very different from other sectors. On
the other hand, the tourism sector can get inspiration from other sectors and vice
versa. Ex. Apple stores are different in their customer approach because they
were inspired by the Ritz Carlton’s way of treating customers. Sometimes
completely different sectors can inspire each other and create new, successful
concepts.
Some staffing characteristics of the hospitality industry are also different, for
instance that staff might live on the premises, the majority of staff receives low
pay, long and “unsocial” hours, large proportion of female, part-time, agency
staff and people from abroad.
A major characteristic of this industry is the role of people and the direct contact
and interaction between staff and customers… Service industries are in need of
management in order to operate effectively in the same way as any other
industry.
Lecture 2
Strategic planning stages
Strategic and effective management takes place within the total corporate
context and involves established relationship and coordination among all levels
of the organization.
Lecture 3
1. The important “match” between strategy and structure
The organization is affected by external environmental influences (of all kinds)
and in turn it influences the organizational structure which is developed to
ensure the effective coordination of all activities and functions.
,Organizational performance is dependent upon the process of matching
structure, strategy and environment. The better the match, the better the
organization functions.
Organizational structure comes from organizational design activities...
... Organizational structure is the result of a long-term commitment to the
effectiveness and efficiency of the service enterprise. (The only time of changes
to the organizational chart is appropriate during phase of growth or
reengineering).
Basically: structure follows strategy (the structure should be coherent with the
strategy that was implemented)
Structure:
Framework that defines
o Work roles and relationships
o Division of work
o Tasks and responsibilities
Structure affects economic efficiency and performance, morale and job
satisfaction. The need for “matching” requires the continual review of the
structure. Structure is a major component of an effective strategy!
2. Introduction to Organization Theories
The main approaches to organization structure design:
o Classical approach (including scientific management and bureaucracy)
o Human relations approach (including structuralist perspective)
o System approach
o Contingency approach
, 3. The classical approaches to OD
Emphasis on purpose, structure and technical requirements
Importance of set principles
Aims to increase efficiency!
Focused on: Division of work, reporting relationships, clear definition of duties
and responsibilities, maintaining specialization and coordination
Classical approach = more of the managerial perspective
SCIENTIFIC MANAGEMENT
- Increased productivity from individual workers
- Efficient methods and procedures for the coordination & control of work
- Monetary incentives are the primary motivator
Principles: Scientific selection, training and development of workers; Clear
division of work & responsibilities between managers and workers; Close
management control over the actual process of work.
Disadvantages: Instrumental view of human behavior; Individuals as units of
production; Jobs repetitive, boring and requiring little skill (de-skilled); Close
management control over workers; Removing decisions on how work is carried
out (management control process)
Relevance to hospitality industry:
o Systematic approach to management (job analysis, systematic selection &
training, payment by results, production control and management by
exception)
