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Running Head: Organisationl Structure And Culture

Marketing Analysis of Hotel Indigo Name of Student Name of University

Marketing Analysis for Hotel Indigo


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Marketing Analysis for Hotel Indigo

A.C 1.1 Introduction Organizational structure is defined as a blueprint depicting relationships and responsibilities which employees in the organization share with each other, these responsibilities and relationships between the employees are a result of the positions in which the employees are thee in the organizational hierarchy. In other words organizational structure is a layout which shows how each employee in an organization is related to the other on in the same organization and what will be the relations, responsibilities and accountability is for the employees in the organization. The basic purpose of having a well defined organizational structure is that as every organization has a specified goal or objective and it is the sole responsibility of all the employees of the organization to achieve this goal, thus it is this organization structure that helps the organization to achieve the goals and objectives in an efficient manner. (B !I"#, #elmy #., $%%&' Types of Organizational (tructure)* !ine (tructure) * !ine structure is the simplest and the oldest form of organization structure, here in this type of structure authority moves from top to bottom of the organization following the vertical path simply, however responsibility moves upwards. This type of structure was first introduced by roman army and later used by various armies around the world before being used by various organizations in the earlier nineteenth century. (B !I"#, #elmy #., $%%&' simple structure or line structure can be best e+plained through a diagram where in authority moves down step by step, and responsibility flows up step by step.

Marketing Analysis for Hotel Indigo


dvantages of !ine (tructure)* ( #, -, (. .ayyaz et al., $%%/' (implicity)*This structure is the simplest of all structures both to understand and to e+ecute by the organizations. 0conomical)* s in this structure everything is self e+planatory thus e+perts are not to be appointed for successful implementation of this structure, thus this structure is economical, 1uic2 -ecision ma2ing)* s authority given at each level is well defined thus everyone 2nows what is to be done and there is no confusion thus the decision ta2en would be 3uic2 here, #igh 0mployee 4erformance) * s there is no room of confusion here the employee5s performance due to any confusion will not deteriorate, however it will raise only, thus employees will deliver better and high performance.

-isadvantages of !ine (tructure)* ( #, -, (. .ayyaz et al., $%%/'

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" 6igidity) * s authority and responsibility is too e+tensively defined thus the system becomes rigid and may lac2 efficiency. 4artiality of .avourism) * s giving directions to the subordinates are in the hands of the bosses solely thus there may be a situation where in the bosses or the department heads may favor few subordinates over others. 0+amples) * 0+press Inc., a fashion retailer in the 7( , dealing in fashion accessories for men and women, head3uartered in O#IO, uses this type of structure. .unctional (tructure) * .unctional (tructure is a form of structure where in employs gets divided in groups according to the specialization and then these groups have to wor2 together in sync and e+change their information in order to achieve the goals and objectives of the organization. In other words functional structure is a form where in employees and resources are divide on the basis of specialization, with a view that wor2 should be done in a faster and efficient way. (B6OO8(, Ian, $%%9'

dvantages of .unctional (tructure)* (B6OO8(, Ian, $%%9'


Marketing Analysis for Hotel Indigo

# (pecialization is achieved) * 0ach boss or manager in this type of structure has the e+pertise in his:her own area, thus with this type of specialization, each one of them is capable in itself to achieve the goals set for them and their team. 0nsures (mooth Operation Of !arge (cale) * s every organization produces goods or services which cannot be produced solely by one individual thus there is a need of a group of people to produce the goods, hence there will be too many processes and functions flowing in the organization together at one time, thus when every manager and his team will 2now what is one supposed to do well in advance, the operation will thus be smooth.

-isadvantages of .unctional (tructure)* (B6OO8(, Ian, $%%9' ;ostly) * s a proper system is to be enforced and there will be need of apposing e+perts so that the system runs smoothly, hence this structure is more costly. ;reates ;onfusion mong <or2ers) * s the team under one boss or manager can get wor2 from two bosses or supervisors at one time, thus the wor2ers might get confused, whom should they listen to and whom should they ignore, thus the efficiency falls there by these effects the productivity of the wor2ers as well.

0+ample Of n organization) * lmost all the organizations use this structure, for e+ample #7! has divided its employs on the basis of their products and thus specialization creeps in.

!ine and (taff Organization) * !ine and staff structure is a form wherein line and functional structure are combined together to form a more diverse and an effective structure. In this type of structure =line> considers that employee who actually performs or does the wor2

Marketing Analysis for Hotel Indigo

$ however =staff> consists of those individuals who are e+perts or are thin2ers behind the structure. In other words line consists of those wor2ers who do whatever is being planned by the staff. This type of structure involves both linear movement of authority and responsibility li2e the line structure and also provides the specialization which is re3uired to achieve the organizational goal. (;O!0, ". ., $%%%'

dvantages of !ine and (taff Organization)* ( 86 ?, "aurav, $%@%' (ervices of e+perts are available thus there is lesser burden on the employees or e+ecutives, thus they can concentrate more on their wor2 and efficiency, instead of planning. Benefits of specialization along with linear flow of authority and responsibility. -ecision ma2ing process is sound as e+ecutives can ta2e decisions but in consultation with the e+perts thus there are lesser chances of ta2ing bad decision which can later prove to be fatal to the organization.

Marketing Analysis for Hotel Indigo


-isadvantages of !ine and (taff Organizational (tructure)* ( 86 ?, "aurav, $%@%' -ecision ma2ing will be a long and time consuming process, s e+perts will have to be appointed thus this structure is a costly affair for the organization, ,any a times there may be situation where there may be conflicts between line and staff employees, thereby harmony between both the groups will be affected, and thus this can prove fatal for longer e+istence of the organization.

0+amples) * Ban2s and financial companies generally use such structure, where e+perts are there to decide and formulate their products and the employees are there to mar2et, sell this product so designed by e+perts.

,atri+ (tructure)* ,atri+ structure is a more comple+ structure which is a combination of both functional structure and line and staff structure, here the manager allocated to each team due to specialization has the cross functional approach and the authority and responsibility flows across departments. In other words, when the manager or boss of one unit has some control o the other unit as well, this is a matri+ structure. In this structure, division is made on the basis of product or services and then the manager has the authority over the employees. (!7T# ?(, .red, @A/B'

dvantages of ,atri+ (tructure)* (!7T# ?(, .red, @A/B'

Marketing Analysis for Hotel Indigo

& In this structure the organization wor2s on the principle of =one big family> as the wor2ers and managers across various departments of the organization wor2 together, lso decision ma2ing is 3uic2er here as manager can directly approach the right set of employees irrespective of the fact whether they are a part of manager5s team or not, ;ommunication between employees is faster.

-isadvantages of ,atri+ (tructure)* -isadvantages of matri+ system are similar to the functional structure more or less.

0+ample) * ?i2e uses this model, whenever a new product is launched the tas2 gets shared by the regional mangers and product managers, where the product managers are in charge of how to launch the product and regional managers are there to ma2e modification in launching strategies meeting the re3uirements of their regions.

Organizational ;ulture is how humans who are a part of the organization behave and the meaning that one attaches to these behaviors of the individuals in the organization. In other words organizational culture is all about how the organization is and how the people wor2ing in it perceive it to be. Organizational culture is the collective belief or the way of thin2ing of a group of people. It is the culture of the organization that defines organizations belief, and also defines how the sta2eholders, clients and employees communicate amongst themselves. (B! ;8, 6ichard, $%%C' Types of Organizational ;ulture)* (B6O<?, ndrew -., @AA/'


Marketing Analysis for Hotel Indigo

'( #ierarchy ;ulture)* #ierarchy culture or the control culture is a form where in things are structured and controlled, the environment of the organization is all about doing things right the very first time, such organization wor2s on the principle of achieving stability and efficiency. This 2ind of culture is characterized by a more formal and structured place to wor2 with principle of wor2ing and a very thin line between what is right and what is not. (tandards are set and the employees have to cope up with them and meet them day in and day out.

dvantage)* Things and standards are already set thus the employees 2now what is e+pected from them and what are they supposed to achieve, thus the chances of confusion reduces, lso there are lesser re3uirements of training as all that is needed can be e+plained in a shorter span.

-isadvantage)* s all the standards and needs are so formal, thus it sometimes becomes too monotonous for the employees and the level of satisfaction reduces thereby it may increase turn around ratio for an organization.

0+ample) * ,ac -onald5s has this culture, where in all standards and needs are set and pre*defined and it is the duty of every employee to follow the code set.


Marketing Analysis for Hotel Indigo

'' ,ar2et ;ulture)* ,ar2et culture or compete culture whatever the name may be is a form where in emphasis is on getting the wor2 accomplished, here the focus is on competition, this is an achievement oriented culture, here more emphasis is given to finishing the tas2 rather than how to finish the tas2.

dvantage)* s emphasis here is on meeting competition thus such organization has higher chances of survival as it will be able to stay competitive in the mar2et space.

-isadvantage)* 0mployees in this culture may not be able to unleash their potential as here the employees will be under huge pressure of achievement,

0+ample) * ;ompanies li2e (tandard ;hartered ;redit card division etc are e+amples of this type of culture.

dhocracy ;ulture) * dhocracy culture is a form where in employees are li2e mini entrepreneurs, they have few rights and are given with few liberties to ta2e certain decisions in favor of the organization growth off course. 0mployees are imbibed with the ability to be entrepreneurs by ta2ing ris2, thereby enriching the employees over all personality.


Marketing Analysis for Hotel Indigo

'2 dvantage)* s dhocracy culture is about creating entrepreneurs out of the employees by allowing them to ta2e ris2 thus employees get benefited from it. -isadvantage)* There is a ris2 as well, employees when has all the potential of becoming an entrepreneur may opt for the same and then can give competition to the organization only, thereby an organization may create its own competitor itself.

0+ample) * "oogle follows this 2ind of culture where they have entrepreneurial events li2e idea sharing etc every year. ;onclusion)*The choice of the organization structure and the cuter of a particular organization may rest on few pillars which may be)* #ow big is the organization, !evel of centralization re3uired in the organization, 8ind of business in which organization is engaged, !evel of competition in the mar2et, 0mployee needs etc. 0very culture and structure is uni3ue from the other one similarly every organization is also uni3ue, thus while deciding the best structure for an organization one has to clearly define the insights of the organization and there by choose a structure which best defines the insights of the organization.


Marketing Analysis for Hotel Indigo


A.C 1.2Two organizations to be considered are merican 0+press and ,ac -onald5s for this section. (tructure and ;ulture at merican 0+press)* (tructure at merican 0+press is in a matri+ form as merican 0+press organizational chart is divided into various specialization parts li2e credit cards, selling various products etc. and with specialization merican 0+press also has defined authority* responsibility chain, thus the structure of merican 0+press is ,atri+ (tructure. ;lute at merican 0+press is more of ,ar2et form, where in too much of competition is there and emphasis is on performing the wor2 at any cost. ?ow as structure followed is matri+ thus this means that the organization is big enough and as culture followed is highly competitive thus relation between them will not be very effective as lots of pressure will be e+erted on employees to achieve the goals, thus relationship will not be too smooth. (tructure at ,ac-onald5s)* (tructure at ,ac-onald5s is again ,atri+ as division is made on product classes li2e under food and beverages there will be specialization li2e Ice ;ream and (weets, ;o2e and (ha2es, Burger and food etc. Thus in addition to specialization there is divisional stature thus it is matri+ form here. ;ulture at ,ac-onald is more li2e #ierarchical, where in things and standards of how to prepare and serve food is predefined and formalized, the employees just have to follow them.


Marketing Analysis for Hotel Indigo

'! s the structure followed and culture both are about specialization and formalization, thus the relationship between matri+ structure and #ierarchical culture will be more effective than in case of merican 0+press. <hen we see the business performance as well)* merican 0+press is a growing company still with lesser footprints outside 7( , however comparatively ,ac-onald5s is a successful venture in and outside 7( 4rofitability of merican 0+press is although higher when compared to ,ac-onald5s, wherein profits of merican 0+press grew by /D in $%@C profits of ,ac-onald5s rose by mere BD, thus here we see some amount of pressure is necessary for effective functioning

A.C. 1.3 Individual Behavior .actors that affect employees and their behavior at wor2 are)* @. -emographic .actors)* -emographic factors are the social, economic factors they also include factors li2e age,se+,education etc.The demographic factors include all those factors which are the basis of belief of the employees, in other words factors that creates belief in the employees are demographic factors. $. bilities and (2ills) * bility is the ability of an employee to achieve or do something assigned to him. (2ill is ability to perform in a way defined by the organization so that there is no lag between actual output and desired output. C. 4erception)* Organization always try and create an environment such that it can provide the employees with a stimuli to achieve the desired result, these stimuli provided to the employees are perceived by every employee in a different manner. Thus perception is an individual5s own thin2ing.


Marketing Analysis for Hotel Indigo

'" E. ttitude) * ttitude is how one react to something provided to him. In other words attitude is the tendency to respond of an individual whether favorably or unfavorably in certain situations or events. B. 4ersonality) * 4ersonality is the distinguished traits that an individual has which differentiates one individual from another. s management is all about =getting things effectively done by others>, and who are these othersF, they are the individuals, the employees who create a group, a group creates a division, division creates departments, and many such departments create an organization, thus the basis of every organization however big or small it may be is the individual or the employee. #ence in my view as a manager individual behavior factors are important and should be considered as well.

A.C 2.1

leader is a visionary he is the one who shows the way to achieve to something, it is the

leader that puts everything in place effectively so that whatever is re3uired is achieved effectively. (- ,, ?ic2 van et al., $%%9' leader may follow different styles of leadership. #owever in case of these two companies under consideration leadership styles followed by the managers are)* @. .or merican 0+press) * s the culture of the organization is all about being competitive, thus the style of leadership followed here is mostly = uthoritative>, authoritative leadership is a form where in the leader decides the targets, way of achieving it, leaves no scope for alteration, the emphasis is on the leaders and the employees have to follow what the leader says. $. .or ,ac-onald5s)* #ere leadership is more or less ;oaching, which means the leader is a mentor here, the team already 2nows what they have to do, and how they have to perform, the leader just have to put things together, thus the leadership followed here is ;oaching


Marketing Analysis for Hotel Indigo

'# cum 4resetting, which is all about building goals with consultation of the team, and these goals are small and yet challenging. 4oint of -ifference between their !eadership style)* s merican 0+press is an organization where targets, wor2 pressure etc comes first, and in contrast ,ac-onald5s is more of an organization that focuses on delivery and lesser pressure etc, thus the leadership style for these contrasting organizations are also contrasting, as in merican 0+press leader is autocrat and one has to do whatever he says, however in case of ,ac-onald5s, leader is more li2e a ;oach. A.C. 2.2 Organizational theories from time to time have been giving there inputs and has always enhanced the scope of management, some of the points are)* Theories li2e system theory has shown way that systems are important for effective management and how systems can be divided into formal, informal, etc, also through this theory we can understands how systems form organization, and what is the importance of system, dministrative theory as formed by #enry .ayola, gave a concept to management that how management is all about planning, organizing, training, implementing and controlling,

<ith other theories li2e behavioral theories, a newer dimension was added to management that management is not only about getting wor2 done from others, but also considering feelings, emotions etc of individuals before getting wor2 done from them, thus #uman approach was added to the overall definition of management after these set of theories.

A.C. 2.3 !et us consider two management theories namely)* Behaviorural theory which is about considering individuals as the decision ma2ers and also gaining due importance on how individuals in the organization are performing and what are the reasons of non performance if any, thus due importance is given to the individuals here, dministrative theory which gives more of a formal approach and emphasizes more on the issue that organization need to be formally and structurally well defined so as to achieve the desired goals. ?ow for merican 0+press* Behavioral theory is of less importance as individuals are lesser concern here, as the emphasis here is to be competitive and achieve targets, however administrative theory is of greater importance here as structure and formal overview of the organization is necessary for a highly result oriented organization.


Marketing Analysis for Hotel Indigo

'$ .or ,ac-onald5s)* Behavioral theory is of greater importance as, it is the individuals who will serve at their restraints and also these individuals form the basis of the organization, thus behavioral theory is of greater importance in this case. A.C. 3.1 -ifferent forms of leadership are)* (B76?(, Games ,ac"regor, $%@$' utocratic) * utocratic form of leadership is where the leader decides what is to be doneH the decision then becomes final and has to be accepted by the employees without 3uestioning. ,otivational level for this type of leadership will be very low as we can ma2e out as well, employees donor have enough say on the decision, hence motivation will be low, (B76?(, Games ,ac"regor, $%@$'

-emocratic !eadership)* In this form of leadership, the leader will involve the employees for coming out with decisions, thus the level of motivation will be higher as employees will feel involved in the team and thereby they will have a sense go belongingness to the team as well, Transformational !eadership) * Transformational leadership is a form where in the leader is not restricted to the perception of the followers. The main objective or purpose here is to transform the need and redirect the thin2ing of the individuals, the level of motivation in this type of leadership will be low, as this 2ind of leadership is first not understood, as such leadership is not similar to the ones practiced generally, however as the time passes, the motivation level rises as and when employees or followers understand the concepts which are new. (B76?(, Games ,ac"regor, $%@$'

A.C. 3.2 !eader at merican 0+press)* The leader at merican 0+press follows ltercative style of leadership, thus the motivation level is low, hence such a leader could use the following method to motivate employees)* ;an plan outings or ta2e the team for a days off, as this will relieve the pressure and the bonding in the tem will increase, #old daily meetings and discuss light stuff there li2e some industrial practice etc, so that the mind of the team gets diverted from the pressure, 4lan e+tra incentives structure for an outperformer so that seeing the rewards the team may get motivated. Thus all the motivation techni3ues related to empowering, enriching or rewarding the employees will come in handy here.

In contrast the leader at ,ac-onald5s will use the following motivational techni3ues)* s there will be no pressure from the organization, thus manager should in consultation with the team prepare certain easy targets, as wor2 otherwise will become boring,


Marketing Analysis for Hotel Indigo

'% lso the leader here should wor2 as a team member so that the team members should feel attached to the team as manager will themselves be performing the same tas2 as they are doing.

A.C. 3.3 Importance of ,otivational Theory)* #erzberg5s two factor theory where ,otivators(challenging wor2 etc' and #ygiene factors(salary etc' are considered, this theory is useful for both merican 0+press and ,ac-onald5s as ,otivators factors will be used by ,ac-onald5s leader and #ygiene factors will be used merican 0+press leader.

Thus in my views motivational theories are of greater importance here.

References #, -, (. .ayyaz, ?azir #, -, and "il2ar Gavid #, -. $%%/. Organisational Behaviour. ?ew -elhi) tlantic 4ublishers I -ist. 86 ?, "aurav. $%@%. Organisation - Organizational Structure - Organisational Chart. JonlineK. J ccessed $& Ganuary $%@EK. vailable from <orld <ide <eb) L #M406!I?8 Nhttp)::2alyan*


Marketing Analysis for Hotel Indigo

'&$%@%:%&:organisation*organizational*structure.htmlN http)::2alyan*$%@%:%&:organisation*organizational*structure.html O B !I"#, #elmy #. $%%&. Organization Structures: Theory and Design, Analysis and Prescription Vol- . ?ew Mor2) (pringer. B! ;8, 6ichard. $%%C. Organisational Culture: Creating the !n"luence #eeded "or Strategic Success. 7( ) 7niversal*4ublishers. B6OO8(, Ian. $%%9. Organisational Behaviour. ?ew -elhi) 4earson 0ducation India. B6O<?, ndrew -. @AA/. Organisational Culture. 78) .inancial Times 4itman 4ublishing. B76?(, Games ,ac"regor. $%@$. $eadership. ?ew Mor2) Open 6oad ,edia. ;O!0, ". . $%%%. Organisational Behaviour: Theory and Practice. 78) ;engage !earning 0,0 . - ,, ?ic2 van, Gos , 6;7(, and 8eith ,0-#76(T. $%%9. Organisation and %anage&ent: An !nternational Approach. ?etherlands) 6outledge. !7T# ?(, .red. @A/B. Organizational 'ehavior. ,ichigan) ,c"raw*#ill.