Chapter 2 Hotel Organizational Structure

1
Chapter 2Hotel Organizational Structure
2
Outline

• Organizational Structure in General
• Hotel Organizational Structure
• Hotel Departments
• Revenue Center v.s. Support Center
• Front of the House v.s. Back of the House
• Rooms Division Departments
• Lodging Revenue Statistic

3
Organizational Structure

• Purpose of Organizational Structure
• Define division of work
• Define tasks and responsibilities
• Define channels of communication
• Define roles within the organization
• Advantages
• Increase worker PRODUCTIVITY EFFICIENCY

4
Organizational Structure

• Components of Organizational Structure
• Job Specialization
• Departmentalization
• Patterns of Authority
• Span of Control

5
Departmentalization Methods

• Functional Departmentalization
• Grouped by skills work Internal
• Product Departmentalization
• Grouped by products External
• Geographic Departmentalization
• Grouped by location 
• Customer Departmentalization
• Grouped by customers

6
Patterns of Authority

• Depict clear relationship for each person in the
  organization.
• Enables each employee to know exactly for whom
  and to whom he or she is responsible.
• Decentralization
• An organization member has the right to make a
  decision without obtaining approval from a
  higher-level manager.
• Centralization
• The retention of decision-making authority by a
  high-level manager

7
Span of Control

• The number of people who report to one manager or
  supervisor.
• Wide Span of Control
• Flat organization large number of employees
  reporting to one supervisor
• Narrow Span of Control
• Tall organization a small number of employees
  report to a supervisor, necessitating a larger
  number of supervisors

8
Span of Control
Wide span of control (flat organization)
Narrow span of control (tall organization)
9
Hotel Organizational Structure

• Limited-service Hotel
• Full-service Hotel

10
Hotel Organizational Structure

• Limited-Service Hotel

Full-Service Hotel

• Reservations
• Front Office
• Housekeeping
• Maintenance
• Security

• Food Production
• Room Service
• Convention Catering

• Employee Recruitment
• Training

• Sales Mgt.

• Assistant Controller
• Purchasing
• Credit System

11
Revenue Center v.s. Support Center

• Revenue Centers
• Front office
• FB outlets
• Room service
• Retail stores

• Support Centers
• Housekeeping
• Accounting
• Engineering
• Sales marketing
• Human resources
• Security

12
Hotel Departments

• Front of the House
• Guest Contact
• Front Office
• Restaurants
• Uniformed Services

• Back of the House
• Minimal Guest Contact
• Kitchen
• Housekeeping
• Accounting

13
Rooms Division Departments

• Front Office (heart of the hotel)
• Reservations
• Communications
• PBX (Private Branch Exchange)
• Uniformed Services
• Bellstaff, Valets
• Concierge Les Clefs dOr / keys of gold
• Housekeeping (the largest department)
• Maintenance

14
Lodging Industry Revenue

• Which of the following hotel divisions
• generate the most revenue in the lodging
• industry?
• (a) F B
• (b) Rooms Division
• (c) Retail Store
• (d) Telecom
• (e) Profit Center

15
Source of Lodging Industry Revenue
16
Lodging Industry Revenue

• Which of the following hotel divisions
• generate the most revenue in the casino hotels?
• (a) F B
• (b) Rooms Division
• (c) Retail Stores
• (d) Telecom
• (e) Profit Center

17
Mirage Resorts Revenue