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Analyzing the Organizational Structure of a Business

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APIIT Diploma Part I

Individual Assignment
Organizational and Social Environment
Hilton hotel Prepared By Raize Hassam(CB004338)
Module Code & Title

Date of Submission
Ms. Sankapali Gunawardena Word Count 2000
The authors would like to first of all thank her managing business lecturers Mrs.Shumara and Ms. Sankapali Gunawardena for all the support and guide he gave her to finish this assignment successfully.
The authors would also like to thank her parents and friends for all their commitments and encouragement.
Last but not the least the authors would like to thank the administration for all the facilities they have provided which made it easy to complete this assignment on time.

As assigned by the lecturers Ms.Shurmara Fernando and Ms.Sankapali Gunawardena for the module Organizational and Social Environment, the authors were required to investigate research and observe an area of Internal and External Business Environment in any local business organization. Therefore the authors selected “Colombo Hilton Hotel” to do their research according to the assignment.
So to do this research the authors visited Hilton Hotel in order to gather information by interviewing the Manager (Mr.Irfan).
At the end the authors discussed the current problems, and then authors provides their own cost-effective solutions and recommendations.


Introduction to Hilton hotel
According to Hilton worldwide (2012) Hilton is the only hotel linked by a walkway to Colombo’s World Trade Center, the city-center is Hilton Colombo hotel, and it overlooks the Indian Ocean and Beira Lake. The hotel do business in an executive method and it is a 24 hour business interior or they also get other restaurants to do business in the hotel, and for now there are more than 10 restaurants in the hotel.
They also have some activities to make the customer entertain: such as sports and fitness club, the hotel has a separate room for fitness. There’s a 90-foot outdoor pool and squash and tennis courts too. Customer can calm down in the beauty salon or browse the onsite-shopping gallery. Colombo Fort district and Pettah Bazaar is in the front doorstep to the hotel. All the room in the hotel boast high-speed Internet access, also every room has a special suite for different range.
The Hilton Colombo hotel is 45 minutes away from Bandaranaike International Airport and it’s the only hotel to be linked by a walkway to Colombo’s world trade centre.
The most recognized name in the industry, Hilton Hotels stands as the stylish, forward thinking global leader of hospitality. Today Hilton welcomes guests in more countries than any other full-service hotel brand, with more than 530 hotels and resorts in 76 countries across six continents. From inaugural balls and Hollywood award galas to business events and days to remember, Hilton is where the world makes history, closes the deal, toasts special occasions and gets away from it all.
Organization Vision and Mission

* Targeting
This consists for whom the product is targeted; this product is mainly targeted for families where they want to leisurely enjoy with well facilities, comfort, and entertainment. And also to relax their self with well facilities, where Hilton hotel just gets what they want, to their rooms or doorstep in less than 30 minutes. This makes the younger generation and all living human being in Sri Lanka to enhance their life style, and make them better off in the society. * Positioning
Hilton hotel is positioned high quality, high price category. It must analyze its current and future operating environment, economic and market conditions, costumer and travel trends, as well as its ever- evolving competitive landscape. * Vision
Hospitality is all about the individual and at Hilton, we pride ourselves on our unique service culture. “Yes I Can!” Is our company-wide philosophy which promises that each guest will be treated with a positive service attitude at every point of contact. The hotel manager, the waiter, the receptionist, the porter-everyone plays a vital role in delivering a memorable guest experience. * Mission
We provide business and leisure travellers with a choice of excellent hospitality products that offer good value for money, while assuring a good return to owners and shareholders and inspiration to employees.
Demographic – Hilton hotel can be consumed by the genders, male and female. And kids this hotel can also be consumed by all the middle-income earners can consume this. Behavioral – This hotel can be used by any people; there is no any harmful elements in it. And also this can be consumed by five star certified. Segmentation strategy for Hilton as well as other products is based on buyer behavior in acquiring the product and considers the usage occasions (pleasure, business), rates (weekly, monthly), loyalty (Hilton or Mirage, or Mandarine) etc.
Geographic – This strategy focuses on local preferences, nature, and geographic location. For instance if in the marketer found out that in the South or West, where the majority of the USA elderly goes to retire, then the Hilton starts to present services for exactly that group namely recreational hotels and gambling for the elderly.
Psychographic – This Hilton hotel is targeted to high class people. Psychographics is the strategy directly connected to the Demographic and Behavioral strategies.

Internal Business Environment * Structure * Culture * Resource

Structure When designing an organizational structure, managers must con- sider the distribution of authority. Defined simply, authority is the organizationally sanctioned right to make a decision. Authority can be distributed throughout an organization or held in the hands of a few select employees. Decentralization is the process of distributing authority throughout an organization. In a decentralized organization, an organization member has the right to make a decision without obtaining approval from a higher-level manager. Centralization is the retention of decision-making authority by a high-level manager. Traditionally, hotel and lodging management has been very centralized, probably due to its roots in small, owner-operated lodging. In recent years, as the hotel and lodging industry has expanded, decentralization has become a more frequent style of operation. Decentralization has several advantages. Managers are encouraged to develop decision-making skills, which help them advance in their careers. The autonomy afforded by this style of operation also increases job satisfaction and motivation. When employees are encouraged to perform well, the profitability of the organization increases. Many hotel and lodging organizations have begun to empower employees and supervisors to make decisions that typically have been made by managers. One example that we have already discussed is the use of the quality circle. For example, if a front desk agent determines that a guest’s bill is incorrect, in a decentralized organization the agent has the power to make the correction immediately. If that same front desk agent determines that a guest’s stay has been unsatisfactory, he or she has the power to reduce the guest’s bill by an amount previously specified by management. Additional challenges, control of the process, and quality assessment become part of everyone’s job, and each employee is given the authority to take positive actions that will lead to high quality and improved performance.

According Hilton website(2012)

This is the organizational structure of Hilton hotel.

Organizational culture
Basically, organizational culture is the personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors. Members of an organization soon come to sense the particular culture of an organization. Culture is one of those terms that are difficult to express distinctly, but everyone knows it when they sense it. For example, the culture of a large, for-profit corporation is quite different than that of a hospital, which is quite different than that of a university. You can tell the culture of an organization by looking at the arrangement of furniture, what they brag about, what members wear, etc. -- similar to what you can use to get a feeling about someone's personality.
Our team members are changing the World One Stay at Time. They’re engaged and recognized in many ways for showcasing their talents. We do this through living our values and remaining focused on our mission to fill the world with the light and warmth of hospitality.
A Rich Legacy of Hospitality
Right from the beginning, our founder, Conrad Hilton, knew how to "dream big". From humble beginnings and with a strong work ethic, he built a solid foundation for Hilton Worldwide to become the preeminent global hospitality company. He believed, as we do today, that through travel, we can make the world a better place.
A world of Experience
To help you achieve your career goals, we offer all team members access to our award-winning Hilton Worldwide University, offering a range of learning from management skills and personal development courses to training in systems and processes.

Corporate Responsibility
We consider sustainability a global brand ingredient on the same level as service. We are the first major, multi-brand hospitality company to require property-level measurement of sustainability across our entire portfolio of hotels. our proprietary sustainability measurement system, is designed to help improve hotel performance and profitability while effectively managing our company's use of natural resources.

Each year, we hire third-party auditors to validate our progress. We're proud of our results so far, but will continue to innovate for the benefit of the environment, our team members, and stakeholders. Google Image (2012) Google Image (2012)

Google Image (2012)

Strong and weak culture of an organization.
Strong Culture
Culture strongly influences business results. Articles and books on organizational culture tend to validate a 'strong culture'. After reaching about the hotel Hilton reported that the company with consistently high performance was company with strong cultures. Search of Excellence suggested that excellent organizations have a set of shared common values and that their cultures are strong. It is generally accepted then that strong corporate cultures are 'good'
Weak Culture
While weak cultures are 'bad' for an organization. This generalization needs to be tempered, however, with the understanding that strong corporate cultures can be disadvantageous in certain situations.
For example, if external environmental influences require planned organizational change, a strongly held culture that is resistant to change is likely to be a disadvantage. Strongly held attitudes may also be in direct conflict with organizational objectives.

New Product Development process | Marketing Research process | Identifying consumer views & product needs | Primary & secondary research in to consumer views & product needs | Product concept & packaging development | Concept, specifications & packaging testing | Testing the product | Consumer usage research | Branding positioning & advertising development | Pre testing of image & advertising research | Product launch & post launch | Market monitoring |

According to Hilton website (2012). Hilton is a large organization, which has 200 employees working. It has a strict and a power oriented culture. It is extremely formalized and it’s a must that employees must follow the company rules and regulations.

External Business Environment

As a person who guides or directs others in the hotel management field, it is important to understand what leadership requires and what some of the different styles of leadership are. If you can understand what kind of leadership style you have, it will become easier to take on the role of leader and change your style based on the needs of your employees.

Effective leaders look at the office environment and listen to their employees in order to ensure that the end result, the customer, is satisfied. Employees are watching those who are put in charge of them, so here are some tips to help you as a hotel manager to show impeccable character and earn the trust and respect of your employees – by giving it back.
Collectively, our Executive Management team brings over 120 years of experience to the brand. With diverse backgrounds and proven track records of success, they're well positioned to keep Hilton Worldwide at the forefront of the hospitality industry.
Generally there are three types of leadership * Autocratic leader * Democratic leader * Paternalistic leader

Hilton is a large organization, which has 200 employees working. It has a strict and a power oriented culture. It is extremely formalized and it’s a must that employees must follow the company rules and regulations.
The leadership style used by them is autocratic also known as authoritarian. Since these leaders are not very flexible the author feels that they should change their leadership style as it could have a good impact on the motivation and the performance levels of the employees, the author therefore recommends Hilton to follow the democratic leadership style. This leadership style would increase the employees’ role in the organization and employees would have their say.
The author also feels that the company is too formalized and that they should consider the employees when making any decisions. It could be seen that employees are highly disappointed with the organizations dress code.
Hilton has ceremonies to provide recognition to employees who have performed well. This would improve the efficiency and the motivation levels of the employees. Overall the culture of Hilton is good and by making few changes they could become closer to perfect.

8. Referencess

Hiltonworldwide, (2012). Harnessing the power of travel to imrove our business and the world. Available from: [Accessed: 07 May 2012]
Hiltonworldwide, (2012). Enter a world of opportunity. Available from: [Accessed: 08 May 2012]
Hiltonworldwide, (2012). Growth with us. Available from: [Accessed: 09 May 2012]
Hiltonworldwide, (2012). Shaping global success. Available from: [Accessed: 10 May 2012]
Hiltonworldwide, (2012). Enter a world of opportunity. Available from: [Accessed: 11 May 2012]
Freecasestudy, (2012). Case study on the Hilton Available from: [Accessed: 12 May 2012]

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