Hilton Worldwide is a global hotel chain which is owned by Blackstone Group, a secret equity firm. Hilton brands include 3,897 hotels with over 642,000 rooms in 91 countries world side. According to Forbes magazine Hilton is one of the most successful hotel series and 38th money-making company. The company also owns, handle other trade name hotel chain like Waldorf Astoria hotels and resorts, Conrad hotels, embassy suites etc. Hilton was originally founded by Mr. Conrad Hilton in Texas and was head quartered in Beverly Hills’ till 2009. Now it’s placed in Virginia. . Hilton hotels are owned by, managed by, or franchised to self-sufficient operators by Hilton Worldwide. Hilton Hotels became the first coast-to-coast hotel series of the United States in 1943. Hilton Hotels is an international hotel series which includes many luxury hotels and resorts as well as select service hotels. The Hilton Hotels brand remains one of the company’s flagship brands and one of the hotel brands in the world. The company places marketing importance on both business travel and leisure travel with locations in major city centers, near airports, convention centers, and a number of vacation resorts and leisure-oriented hotels in popular vacation destinations around the world. In New Zealand the Hilton Auckland has surprising ocean views and just 5 minutes from downtown. The waterfront view includes 165 large and relaxed guest rooms with balconies along with seven conference rooms for up to 700 guests.
Following are few extra set apart characteristics which make then successful balance to their competitors:
City centre hotel just minutes from Auckland’s business district.
24-hour internet connectivity centre and seven meeting rooms – all with Wi-Fi.
Bellini Bar and Auckland restaurant, FISH.
Outdoor heated lap pool featuring Auckland’s only underwater viewing point.
Fully equipped fitness centre offering a balcony with city and harbour views.
Add few more points here.
The following aspects of the organization’s management were investigated and analyzed, and these conclusions were drawn:
Type and size of organization
Services/Suites/Products provided by Hilton Group
Types of organisation structure
Diagram of organisational structure
Planning and control systems, processes and strategies
Planning Flow chart
Team structure and dynamics
Teams type formal and informal
Determining team membership and leadership
Determining team roles
How team performance is monitored
Recognizing team achievements and rewarding
Leadership manages changes, both planned and unplanned
Strategies used in crisis management
2.1 Type and Size of Organization: –
Hilton with the image as the first choice for the travellers from all over the world is very much focussed on their internal organisation structure. Hilton as a brand very much focus on their consumer service and their organisation give very much importance to customer satisfaction.
Since being founded in 1919, Hilton group has been an organizer in the group of hotels. Hilton Worldwide remains an inspiration of advance, excellence, and success. Hilton Group is a global company operating in the hospitality and gaming markets with the leading brand names of Hilton and Ladbrokes. The group intends to increase shareholder value by exploiting its major location in these international markets, both of which are probable to experience important long-term growth
Services/Suites/Products provided by Hilton Group:
Conrad hotel and resorts
Waldroff Astoria hotels
Hilton hotel and resort
Hilton Grand inn
Hampton inns and suits
Hilton Grand vacations
It was found by Conrad Hilton in Cisco, Texas along with headquartered in Beverly Hills, California in 1969 in anticipation of 2009. The company moved to Tysons Corner, unincorporated Fairfax County, Virginia, near McLean in August 2009. It is now owned by black stone group, a private equity firm.
It is a large organization which has many branches across the globe. With more than 540 locations in 78 countries, Hilton provides an authentic and contemporary experience for our guests worldwide. Its guest rooms feature a smart, functional design plus thoughtful services.
AlphaTypes of Organization structures:
Pre-bureaucratic structures: This structure is mainly familiar within smaller organizations and is finest use to resolve easy tasks. The structure is completely federal. The considered head makes everyone input decision and the majority announcement is done by individual conversations.
Bureaucratic: Bureaucratic model include a definite degree of consistency. They are superior right for more multipart or larger scale of groups.
Post-bureaucratic: The word of position bureaucratic is used in two minds in the managerial copy: one general and one much more exact. In the common sense the word position bureaucratic is repeatedly used to explain a variety of ideas urbanized since the 1980s that particularly difference themselves with Weber’s perfect kind of bureaucracy.
Functional structure: workers within the functional departments of an organization lean to achieve an expert set of responsibilities, for case the manufacturing department would be staffed only with software experts. This leads to ready efficiencies with a group.
Divisional structure: The divisional structure groups every executive purpose into a division. Every division within a divisional organization contains all the essential income and function within it.
Matrix Structure: A matrix organization repeatedly uses teams of workers to get done work, in arrange to get benefit of the strengths, as well as build up for the weaknesses, of handy and decentralized forms.
Hilton group follows divisional structure. A divisional structure will have different departments and the employees in that division on a chart.
By observing the size of organization the size of Hilton group, we came to the point that, large scale organizations are more stable o survive in difficult economic times and the information flow in these organizations is easy to follow. This large organization is often better than family owned businesses because there is more transparency and then higher throughput can be achieved.
2. Organization Structure:
2.1 organization context
Organisational structure and management dependability for how the rights are spread in the things illustrate. Top managers how to organize all the units will be decentralized and the size of the power to make decisions. Even if transference is adapted to the current reasonable environment, top managers usually operates that can be more efficiently because of economies of size on the right to preserve the centre. For example, funding, human resources and book-keeping functions be capable of maintained at head office is being transferred to the organizational subunits instead.
2.2 Organization structure chart
Fig (1): Organizational structure of Hilton group.
By observing the structure of Hilton hotel we came to know that the structure of this organization is huge and basically handle by their board of directors and when they took any decision they pass it to general manager as you can see in above figure and the general manager then give orders to other department if there is anything happen in organization only the general manager who is going to answerable to the board of director and he is responsible for what will happen in his area.
3 Environmental Factors:
There are several environmental factors that can affect the businesses in an economy. These can be categorized as:
Are those who analyzing strengths and weaknesses of an organization and their management and concern the industry.
Internal Factors affecting business:
Culture and Internal Demographics
Of business consist of organization or forces operations external the organization and they collision on company directly or indirectly.
External Factors affecting business:
Micro Environment: The micro environment is also known as the task environment and effective environment because the micro environment forces have a direct attitude on the operations of the firm.
Suppliers: suppliers are the important force in the micro environment of the company. These are the people who supply input and components to the company.
Marketing Intermediaries: Middleman and agents help the company find close sales and customers.
Public: It includes citizens, media or an independent group that has active interest in organisation ability to achieve its goals.
Macro Environment: Macro or remote environmental factors are generally more uncontrollable that micro environmental factors.
Economic Environment: It refers to the nature of the economic system of the country and its transportation.
Social Environment: Social logical factors include costs, arrangement, mobility of labour, behaviour and conventions etc.
Political Environment: It is partial by the viewpoint of the political parties, philosophy of the supervision and extent of organisation.
Ethics and Practices:
Several organisations have system of ethics in their company policies, which are obviously clear in their introduction and regular training. There are several codes and practices that can be promoted:
Accounts, finances and resources of the company
Information on opponent
Variance of attention
Encouraging employee can improve the presentation of a company. By giving rewards and recognition to employee’s the throughput of an organisation can be increased. Following are few tips to boost employee morale:
Organising special events for employees
Communicating with employees
Building a society of hope
Making place of work secure
The environmental factors both external and internal have a major affect on the working of a big organization. As observed, in our case (Hilton group), the external factors like socio-economic factors, political factors can influence the growth of the organization. In New Zealand, the opening of new business requirement is quite easy and the economy of New Zealand is quite stable at this moment. So the Hilton group (NZ) is running quite well in terms of revenues and growth. It is providing excellent service to customers as well as maintaining its brand value.
The internal factors including the suppliers, trainers, safety etc also plays an important role in the company’s output. The Hilton group is a big organization which has got prominent suppliers and for training purposes, it gives sophisticated training to new employees. The employer safety is also a crucial factor for many employees in choosing their professions. As Observed, Hilton NZ ensures employee safety and is based in the city centre, providing as easy access to reach.
4. Planning and control
Planning and organizing are two management functions that have been popular research areas in recent years. Control, the third well-known management function, has received surprisingly little attention.
This is possibly because the job area of control is noticed and the behavioural or individual face is mainly unobserved. But as before well-known managers should carefully think the behavioural aspects of the procedure after crafty a manage system if workers are to be encouraged to achieve assigned everyday jobs.
A financial system is any organization that is used to apply financial management, organize and responsibility above community excise or property. Included are those systems that are used to evidence, authenticate, explanation, make or act upon economic connections, and persons used on behalf of the management and control of income, liabilities and resources seized in expectation.
A management control system (MCS) is a system which gathers and uses information to estimate the piece of changed organizational assets like person, material, economic and also the organization as a whole making an allowance for the organizational strategies. Finally, MCS influences the activities of executive resources to implement organizational strategies. MCS capacity is formal or informal. The term ‘management control’ was given of its present connotations.
A human resource management system (HRMS) or human resource information system (HRIS), refers to the systems and processes at the connection between human resource management (HRM) and information technology. It merges HRM as a regulation and in exacting its necessary HR performance along with processes with the information technology pitch, but the training of data processing systems evolved into consistent routines and parcels of activity reserve arrangement (ERP) software. On the complete, these ERP systems include their source on software with the purpose of integrates in sequence from changed applications into one entire record. The connection of its economic and human being source modules during single folder is the mainly significant difference to the on your own and proprietary residential ancestor, which makes this software request together hard and flexible.
Who is responsible for Setting long term and short term objectives?
There are different types of goals in an organisation:
The long term organisation goals are:
Sum up the groups needs to be or how it needs of human in which it operates to be view of the universal. It is a continuing view and concentrates on the outlook. It can be sensitive and is a starting place of encouragement. For example, donations helpful during the reduced power have an image speech which reads “A World without poor quality. As of an emotional point of view, it is required to study personality decisions in the framework of a place of desires, preferences a being have as well as ethics they try to find. Beginning a cognitive viewpoint, the choice creation development has to be regarded as a permanent procedure included in the communication with the atmosphere. Since a normative viewpoint, the study of person decisions is concerned with the reason of decision making and reasonableness and the invariant variety it leads toward.
At Hilton group, the top management is responsible for situation the extended time and little time objectives. The board of directors, area managers of every area operational manager is mainly answerable for setting the goals. Some outer public like financial advisors, researchers, media personalities are also anxious in the decision making process.
In this organisation, every separation has a blue print of managements plan process. The plan process is managed by operational managers of each sector. The day to day management and applications are based on roller coaster scheduler and each one follows his each day regular.
Why were these systems adopted? How successful are they?
These are ordinary and especially main organize systems for any organization. For run an organization and manage above the organization of all group work. These all systems are use for control the economic arrangement, action method and control all information system which is especially in need.
This is a diagram that gives step-by-step solution for a problem or planning of an assignment. It’s like asking a question and coming back to the question if the answer is negative, it rolls u back to square one if the answer doesn’t lead u ahead it’s an opposite of a maze, like how a maze has only one correct way and rest all lead to a dead end, in this if the correct path is not chosen it would lead u back to the start of your journey or a mark u have set on and then leads u to the proper path of completing that task and getting on another one. This just gives an idea of what a team could avoid in terms of losing time on their tasks for the project.
Fig (2): flow chart for planning
Planning and controlling are the main factor in these organizations they both are mostly used for maintaining this organization. In this organization everything is controlled and planned by board of directors but they give authorities to the general manager to maintain the organization because it’s a hospitality organization so if things were not planned they can’t survive in this industry. Because it’s a New Zealand based and New Zealand is a tourists place because of its nature so if they were not planned they can’t fulfilled their customer needs. After planning they have to control everything single thing for planned things to be given to each of his customers it’s all about customer needs and how to fulfill them with planning and controlling.
2.5 Team Structures and Dynamics:
How team is organized?
The three steps of team organization are forming, storming and norming. Forming is when teams are created by picking, choosing or volunteering. Storming happens when the team members select their position and role after having a debate or argument. Norming allows standards in a team to be set, which means a certain level of quality work is expected out of each member of a team.
Teams types- Formal and Informal
Teams can be both formal and informal.
Formal teams are created deliberately in order to carry out tasks that will enable the organization to achieve its goals. This is usually done by team leader or managers. For example, the employees at Burger King have a supervisor/team leader/manager who directs the subordinate staff or team members.
Informal teams get created naturally or are self-created when people meet and interact. One reason that informal groups emerge is due to a common interests shared by its member. For example, a study group, or a reading club is an informal team. One thing to note is that an informal team can be created from a formal team if its group members share common interests and enjoy the company of each other. Similarly, if people like working together as an informal team, they might decide to become a formal one just because they have a good rapport. For example, a dance group at school created by a few friends (informal team) performs well in a competition and hence gets selected by the school team to perform at a national level (it has become a formal team).
Determining Team membership and leadership
Team membership and leadership is determined based on six factors:
1. To become a member of a team, members must be willing to support the team goal and work towards achieving that goal.
2. Each member should understand their role within the team, each member must know what skills, knowledge, and abilities they have so they can understand their role within a team and contribute to teams’ success.
3. All members must be willing to have a set of standards, values and morals so they can work together as group.
4. Each member should need to commit to working according to the plans and priorities set by the team. This includes attending meeting, exchanging information and so on.
5. All members must be willing to work together on problem-solving and must be able to accept any changes that develop due to the process of development.
6. Each team member should be respectful of others, must welcome diversity, and create both trust and accountability within the team.
Determining team roles
Team roles are determined based on:
Analyzing or reanalyzing the task that needs to be accomplished.
Defining shared team roles and responsibilities.
Defining individual roles and responsibilities.
Learning other team member’s roles and responsibilities.
Creating a plan for review of roles and team progress.
How team performance is monitored
Team performance of individuals and the team as a whole can be monitored using the principles of measurement, appraisal, and action and monitoring.
Measurement- This can be done by creating performance measure creating behavioral goals that will help enhance performance and also by measuring the current behaviors.
An appraisal or a performance review- This helps to assess certain things about an employee, like whether the job is been done up to mark or according to job description, whether they are enjoying their work, the objectives that they need or want to achieve and the type of training and development they need or want.
Action- One can try to make the actual behavior in line with the goals so that can help improve their performance. It is important not only to plan but also to implement the plan. For example, set targets for an individual or a team, then make a plan and take a course of action to achieve the desired goal.
Monitoring- One can monitor or check whether the plans are being followed. It is important to do an appraisal after the monitoring in order to evaluate the effect of changes on performance and behavioral measures.
Recognizing team achievement and rewarding
Team recognition required as balance of non-financial and financial rewards to all employees. Some rewards encourage team (team rewards) and some individual (individual rewards). For example, team reward can involve giving store vouchers, giving a dinner party to the winning team and so on. Individual rewards can include sending the employee on a vacation, a conference or a training to enhance their performance and future prospects.
Rewards should encourage both cooperation and competition. Positive reinforcement is also important. For example, an individual is rewarded; and seeing that other employees starting doing a better job and gradually their performance improves. This cycle of performing well and being rewarded each time will motivate not only the individual but also the other team members.
Leadership style is the method and advance of condition that course, implement strategy, and inspiring public.
There are three major leadership styles:
Delegative or Free Reign
The CEO at Hilton group follows democratic leadership style. This method involves the manager counting single or multiple employees in the result creation method .However; the manager maintains the ending decision creation power. By this method is not a mark of weak point; somewhat it is a signal of power that your workers or staff will respect. By providing decisive leadership on main issues, an organization can try to find limit the amount of poor right decisions being made. The CEO and managers can influence the culture of the organization. It is often started that actions speak louder than words, thus the action of senior management can assist the organization to become fairly sound.
Leadership manages changes, both planned and unplanned:
Most challenging aspect of business is leading and managing change. Usually the change starts from all the working aspects. Like some plans are made in the beginning before we start working on it. For example: in this company S.Rasid is the manager, so the new changes which are coming in the company, he first analyze and think according to his prospectus that how it going to effect the company. As in planned way, he is always prepared for any change in plans because he always having backup plans.
In case there are some situations in which the company is not expecting any change in their plans. Subsequently in that case they divide their employees in two teams, therefore one team can learn and the other team can continue with their work. So it doesn’t affect the running business.
Strategies used in crisis management:
Use futurist methodologies:
It is important to focus on the long term. Your rivals typically don’t when economic crises are on the agenda. While articles 1 and 2 demonstrated the importance of using scenarios during crisis situations, scenarios are only one of many futurist tools that can be employed.
The current and financial and economic crisis has set global focus on uncertainties, so it is easy to lose sight of what we know, with a great deal of certainty, will happen. New technologies will continue to be developed that will change how we organize and do business. These trends will continue despite the current economic downturn and can be a focal point to launch innovation and development processes and introduce new products and services into the market. At Hilton group, new marketing strategies, exciting offers and discounts were given to customers to increase output.
Low-end disruptive innovation:
Businesses can consider developing new versions of existing products that are cheaper and may contain do-it-yourself components. Take risks on creating value innovations that combine low-cost with more user participation, as in online purchasing of plane tickets and vacation planning. Companies should give these business models more than a passing glance and consider whether they can sell their existing products in a new, participatory fashion.
For some organizations, outsourcing some functions will be the best strategy to employ. When attempting this strategy, become clear on what elements of your organization constitute your core competencies and let other businesses take care of the parts of production that do not constitute your core competencies. This can often create savings for the organization and remain an important strategy once the crisis has subsided and economy grows. Some of the services were outsourced at Hilton group as well during the recession period as well.
Seek new markets
The European population is growing older, and despite the recent financial crises impact on pension funds, older people will likely be the least affected by the crisis. Seniors typically have more free value in their homes and hence have more disposable income. Today’s and tomorrow’s seniors are more active, and there will be a greater demand for more products and services that are aimed at them.
While seeking new markets in your local economies, continue to develop markets in the developing world. Although countries like China, Russia, India, Brazil, Mexico and South Korea are affected by the crisis, over the long term their economies will continue to grow at a pace that will outstrip the United States and Europe. Entering these markets is not easy, and the longer one waits the more difficult it will be, as competitors develop relations and reputations within these markets. The Hilton group is also trying to explore new market in New Zealand and in developing countries as well.
Most of the strategies adopted during the crisis period were successful as the revenues increased for every financial year.
Strategies used on regular basis:
Hospitality companies like Hilton Group can boost their marketplace and increase rates by raising their brand loyal customers. This is a additional money-making move toward than other advertising activities, such as cost cut or promotional programs. As a grown-up business, the hospitality businesses have to follow market-share gain, somewhat than market-growth gains. Acquiring new clients is costly because of publicity, support, and creates working expenses. as well, it is cheaper to provide present clients. Some of the regular motivational strategies followed at Hilton group are:
The manager should always give his/her remark after the task is done. It can be by giving the bonus or a small party. This encourages the staff to work more efficiently in their next task.
This will have played a big part in you and your team achieving success. Recognize and celebrate the accomplishments of others to achieving success.
Help Them Understand Their Contribution
Sometimes people discover it hard to connect what they are doing to the overall goals or mission of the organization. The manager should help them to understand what they do contribute to the whole success of the organization and the results it accomplishes.
The manager should spend a lot of time working with people, listening to their opinions and getting their contributions to strategy and planning. However this is important, make a point of keeping people up-to-date about the progress that is being made and the next phases.
There are main three theories of motivation
Maslow’s hierarchy theory
Mc Gregor’s theory x and y
Herzberg’s two factor theory
Hilton group is work on hierarchy theory of motivation because it works like as a pyramid and start from personal basic needs because when they are satisfied there are no need for a motivator and they can move up to next level they are safety needs which include the persons physical safety, employment, resources and financial, income safety and after safety needs it moves to social needs which include the love and affection when they work in a group they the other member of group should accept him. This is called as a social need and after that they will go to next level which is esteem needs when the previous needs were satisfied, a person feels to be self esteem both by himself and also by others and they include self confidence, self respect and in the last it goes to self actualization needs this is the most important need in hierarchy theory it is the person become what one is capable of becoming. It’s a development require. A person desire to have chal (akrani, 2010) and achieves impressive in the part of his specialization.
Findings/Analysis: Hilton group is best in his industry because of his leadership skills they take care of their customers as well as their employees. The CEO at Hilton group follows democratic leadership style. Most challenging aspect of business is leading and managing change. Usually the change starts from all the working aspects. Like some plans are made in the beginning before we start working on it. They always planned for next situation and leading in hospitality industry because there leadership style all different from others.