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Running Head: ORGANIZATIONAL MANAGEMENT APPROACH ANALYSIS

Organizational Management Approach Analysis

Kenya M. Cruz

ORG502-1 – Effective Organizations: Theory and Practice

Colorado State University – Global Campus

Dr. John Johnson

November 27, 2016

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Organizational Management Approach Analysis

Many organizations have experienced success stories as well as failures, due to

management’s approach to the organization's goals, whether is favorable or not. In the hospitality

industry, the correct approach is imperative for its success. This creates a unique set of

complexities at the time of hiring the appropriate manager. The rapid growth and globalization in

today’s market have immensely affected the management structure, styles and approach that is

engaged in each region, country and hotel property.

Management Approach

Due to the nature of the hotel industry, and to better streamline and coordinate each

department, the management approach must take into consideration the globalized culture within

the organization and the people it serves. The hotel management, specifically the General

Manager, has adapted the contingency management approach. As defined by the Encyclopedia of

Management (2016) this approach is effective when the planning, organizing, leading and

controlling is tailored to each circumstance. Inherently the managing style will not be one-size-

fits-all. It is understood that the focus of each department manager’s will vary depending on their

skill set and goals. An excellent example is the difference in goals for the revenue department

and security department. The goal for the revenue department will focus on maximizing the

RevPAR and hotel occupancy percentage as it relates to the competitive hotels in the area. In

comparison, the security department will focus on a more secure key entry system and the

general safety of the hotel’s guests.

To achieve superior performance in such a diversified and high paced work environment,

the contingent approach allows for the system needs to be tailored to the department and teams’

diversity. As stated by Govindarajan (1988) that matching the organization structure, different
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managerial characteristics and control systems are associated with higher performance.

Management will choose one flexible enough to adapt to the situation and individual makeup

while allowing each department and manager to adjust their management style to accommodate

the teams’ needs. At the same time, it allows some degree of adaptability when departments

interact with each other during the line of work. Govindarajan, 1984; Hayes, 1977; Hirst, 1983

(as cited in Govindarajan 1988) stated that different control systems induce different behaviors

and superior performance can best be achieved by tailoring control systems to task uncertainty.

This approach has been open and flexible to accommodate the cultural differences and views in

each location and its people. Walker, J & Miller, J. (2010) acknowledge that diverse leadership

styles achieve the same results as traditional methods, but a diverse workforce can also help

improve the company’s competitive position in the marketplace

Many studies done thru the years have mentioned the complexity of the global expansion

and its effect on the organization, but as stated by Ayoun, B., & Moreo, P. J. (2008) the studies

have not addressed the role of cultural heritage and the effect it had in the managerial and

organization practices.

Conclusion

The effectiveness or ineffectiveness of the contingency management approach in the hotel can

only be measured by the cohesiveness of the departments and how it overflows to reaching the

hotel goals. The contingency approach requires management to focus in each situation

individually and moving the resources to complete it. Management will be moving the available

resources and labor into narrower view of the organizational goals and is a more reactive style

and not so much in the proactive. And for the employee, it feels more like putting out fires

instead of following a structured system where they can prepare in advance which will lower the
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labor cost. However on another aspect, due to the changing roles, it produces leaders as well as

the employee who are well-rounded professionals. Any approach chosen will have degrees of

effective and ineffective, is best for the managers to utilize the one that better suits their styles,

motivates the employee and keep the organization reaching their goals. As stated by Mintzberg

(2013) managers must help bring out the best out of its employee. And this is done by managing

effectively, learned thru the trade, years of experience and an open mind. The contingent

approach in the hospitality setting is one of the most effective for allowing flexibility in the hotel

operation for a personalized process in each situation.

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References

Ayoun, B., & Moreo, P. J. (2008). Does National Culture Affect Hotel Managers' Approach to

Business Strategy? International Journal of Contemporary Hospitality

Management, 20(1), 7-18. doi:10.1108/09596110810848532

"Contingency Approach to Management." Encyclopedia of Management. Retrieved from:

Encyclopedia.com: http://www.encyclopedia.com/management/encyclopedias-almanacs-

transcripts-and-maps/contingency-approach-management

Govindarajan, V. (1988, December 1) A Contingency Approach to Strategy Implementation at

the Business-Unit Level: Integrating Administrative Mechanisms with Strategy. Academy

of Management Journal. 31(4), 828-853. doi:10.2307/256341

Mintzberg, H. (2013). Simply Managing: What Managers Do — and Can Do Better.

(Vol. 1st ed). San Francisco: Berrett-Koehler Publishers.

Walker, J & Miller, J. (2010) Supervision in the Hospitality Industry: Leading Human Resources

(6th ed.) Hoboken, NJ: John Wiley & Sons, Inc.