Images of Organizations at Four Seasons Hotels - Assignment Example

Images of Organizations at Four Seasons Hotels Introduction In the book Images of Organization, Morgan Gareth (1986) describes eight metaphors through which organizations can be analyzed more vividly. These metaphors include the organization as a machine, a living organism, a brain, a culture, a political system, a psychic prison, a state of flux and an instrument of domination. These metaphors have enabled various aspects of organization to be viewed in different ways. As a result, theories have been formed that reflect various perspectives or metaphors. For instance, scientific management is closely related to the machine metaphor, the cultural and flux metaphors are closely related to the systems theory of organization. This paper analyzes how the eight organizational images relate to the Four Seasons Hotels. The Four Seasons is a Canada based private chain of hotels that is owned jointly by Bill Gates’ Cascade Investment group and the Saudi Arabia based Kingdom Holding Company. It was founded by Isadore Sharp in 1961 and has since established 92 hotels in 38 countries (Four Seasons, 2014a). Four Seasons has a unique business model in that it does not own the property where the hotels are situated. It maintains contracts with property owners to design and operate the hotels for a share of the income generated by the hotel. In 2014, the Four Seasons was ranked 91 among the 100 best companies to work (Fortune, 2014). The paper discusses how an understanding of the organizational images affects managers’ performance and the relationships shared by the hotel with important stakeholders. Organizational Metaphors at Work at the Four Seasons Hotel This section describes how the Four Seasons Hotel can be viewed from the perspective of the eight metaphors developed by Morgan (1989). These include organizations as instruments of domination, flux, organisms, brains, machines, cultures, psychic prisons and political systems and transformation. The machine metaphor can be seen at work in the Four Seasons Hotel. The machine metaphor implies concepts such as efficiency of the operations and reduction of waste. Taylor’s principles of scientific management reflect the metaphor of organizations as machines. At the Four Seasons Hotel, the scheduling of various activities such as housekeeping and maintenance of inventory levels can be interpreted through the image of machines. Schedules of housekeeping, preparation of different meals throughout the day and maintenance of standardized service are all examples of the machine metaphor at work. The Four Seasons Hotel can also be viewed as an organism. This image is based on the perception of the hotel as undergoing a process of evolution to ensure its survival. The responses of the management to the environmental changes can be interpreted as the response of a living organism to its natural environment. An example of the metaphor at work would be the changes in room rates throughout the year depending on the busy or slow season. For instance, rates would increase during the summer holidays to cope with limited supply. Karmin (2013) explains that high earnings by competitors may motivate the owners of the Four Seasons Hotel to become a public limited company by issuing shares. This reflects how the organization is responding to competitive threats to grow in its environment or industry. The metaphor of organizations as brains reflects the capacity of the organization to organize information and use it to make intelligent decisions. The Four Seasons Hotel can be interpreted in this light as it maintains records of customers’ experiences through the feedback system. The historical data about capacity levels is used as the basis for making decisions about expansion and setting up hotels in new locations. The decision making and information sharing processes of Four Seasons Hotel also reflect the image of organizations as brains that process data. The next metaphor is of organizations as cultures. The Four Seasons Hotel holds its service culture as one of the main reasons for its success. The organizational culture is based on high quality standards and personal service. This can be achieved when the organization values its employees and inspires them with a shared vision. In addition, the performance of welcoming rituals and the norms of courteous behaviour are also instance of the image of organizations as cultures. Solomon (2013) describes how the service culture at the Four Seasons Hotel was shaped consciously by articulating the values and principles that the leadership viewed as important. The Four Seasons Hotel can also be viewed as a political system. This image of the organization highlights the effects of power struggles and authority relationships in the organization. This image can be seen as employees compete for influence and recognition in the organization and managers build alliances to influence the board of directors. The management often has to resolve conflicts between various departments and overlapping lines of authority, which is another instance of the Four Seasons Hotel working as a political system. The political influence can affect relationships with business partners. An article in The Economist (2013) states that as the hotel tries to expand by setting up new locations, conflict may arise between the property owners and the brand owners. Organizations can also be viewed as psychic prisons because employees can become locked into particular ways of doing things. While the guests may view their stay at the Four Seasons Hotel as a luxurious and relaxing experience, employees may feel imprisoned as they have to operate according to established rules and regulations. Employees at the reception, spa and restaurants have to be courteous even when the guests are being unreasonable. They have to repress their emotions to perform their job. High standards of perfection can also induce anxiety and workaholic behaviours in the employees. The organization is also viewed as acting in an environment characterized by flux and change. This can be viewed in the Four Seasons Hotel as it constantly has to develop strategies to maintain an equilibrium in the environment. Changes in the tourism industry, modes of communication as well as political and economic events affect the operations of the hotel. The management thus has to develop strategies to reconcile disparities between the external environment and the hotel’s actual performance. The organization may have to undergo restructuring or expansion in response to the increasing complexity in the environment. Finally, organizations may be viewed as instruments of domination. This view is reflected in the measures taken by senior management to impose prescribed values and behaviours in the employees. This is achieved where new employees undergo a period of orientation where they are taught how to deal with guests, ensure efficiency and value corporate interest. However, at the Four Seasons Hotel, the management is sensitive to the personal needs of the employees and discrimination is not practiced. For instance, the hotel offers flexible working programs such as compressed workweeks and telecommuting. Furthermore, 64% of the employees are minorities while 46.3% are women. The nondiscrimination policy of the hotel also protects the domestic partner rights of same-sex couples (CNN, 2014). Influence of Organizational Images on Managerial Performance This section discusses the ways in which an understanding of the eight organizational metaphors can affect the performance of a manager. Managers are said to perform four main functions in the organization: planning, organizing, leading and controlling. The appreciation of the eight metaphors influences the performance of these functions in distinct ways. Influence on Planning As planners, managers are required to develop strategies and plans for their department or division. It is necessary that these strategies and plans fit into a coherent whole with the strategies of other departments and the organizational strategy (Koontz and Weihrich, 2007). Understanding that organizations operate in a state of flux and constant change can compel managers at the Four Seasons Hotel to regularly scan the environment and identify competitive opportunities and threats. Based on the fact that the external environment changes rapidly and in unpredictable ways, the managers can decide whether to develop short term or long term plans. Similarly, the metaphor of organizations as brains can help the managers at the Four Seasons Hotels to analyze information collected from a variety of sources such as competitive intelligence, industry reports, guest feedback, employee input, and so on to develop sound strategies. Understanding the state of flux in the environment can also influence managers’ decisions about whether to launch an IPO of the Four Seasons Hotels and when to launch expansion programs. The management is also responsible for setting objectives for each department and division in the organization. In an interview with the Wall Street Journal (Korn, 2012), the then CEO Katie Taylor identified geographical expansion as one of the dominant strategies of the organization. This reflects the perception of the Four Seasons Hotel as an organism that has to adapt and grow to survive in its environment. Identifying the market potential in China and India is possible when the organization is viewed as engaged in competition for its survival in a changing environment. Influence on Organizing As organizers, the managers at the Four Seasons Hotels face challenging situations. To uphold the promise of personal service, the managers need to ensure that work is performed uniformly and variations are minimized. They are also responsible for maintaining efficiency in the use of time and human resource. Viewing the organization as a machine affects the way in which managers design work flows, schedules and other operations at the hotels. Furthermore, the managers are also responsible for designing the organizational structure and culture of the hotel to ensure flexibility and efficiency. Managers view the work processes in terms of converting inputs into outputs. Work teams are created and schedules for staff are prepared in a way that maximum productivity is achieved. As organizers, managers are also influenced by the image of organizations as cultures. Managers have to shape the values and principles on which the organizational culture is based (Schermerhorn, 2011). As reported by Higley (2011), the management at the Four Seasons Hotels has altered the structure in order to bring the senior leaders in close contact with the business issues such as responding to the global recession and the European debt crisis. Higley (2011) also notes that the marketing and technology functions of the company are in a greater flux with the onset of social media marketing and other innovations. In this context, the view of the organization in a state of flux and evolving culture can help managers allocate resources more effectively. Recently, the hotel has introduced a new service where international guests can complete the check-in process through Skype and pre-arrival emails (Four Seasons, 2014b). This kind of innovation requires collaboration between the technology, marketing and operations departments and reflects the competence of the managers at the hotel. Influence on Leading Managers at Four Seasons Hotels have to function as leaders. The leading function of managers requires them to develop their skills as leaders, motivate their subordinates and encourage teamwork and open communication in the organization (Schermerhorn, 2011). Managers can perform these tasks effectively when they understand how their organization and employees function. The image of the organization as political systems and cultures affects the manager’s understanding and execution of the leading function. It is the responsibility of the leader to create an environment of fairness and ethical behaviour in the organization. An important issue that relates to the growth of the Four Seasons Hotels is the conflict in the priorities of the hotel owners and the Four Seasons management. As stated by Segal (2009), the management has been facing pressures from the hotel owners to cut staff costs and lower room rates. However, the managers do not want to compromise on the quality of service. The challenge for managers as leaders is to negotiate a mutually beneficial settlement by practicing conflict management skills, building alliances and balancing the interests and rights of all the stakeholders. In such an environment, the management is responsible for ensuring that the operations remain profitable and a high morale is created in the workplace. This can be maintained by instituting values and rituals that communicate fairness and nondiscrimination throughout the organization. Influence on Controlling The controlling function of managers includes the responsibility to develop systems and processes to monitor and track performance, compare performance to standards and make changes to align performance more closely towards goals (Schermerhorn, 2011). This can be achieved when managers appreciate that organizations function as brains, psychic prisons and instruments of domination. By considering that organizations function as brains, managers at the Four Seasons Hotels can create systems that make information easily accessible to decision makers at every level. Secondly, by considering that organizations work as psychic prisons, managers can achieve efficiency in the performance by reinforcing the values and standards within employees. The managers at Four Seasons Hotels can develop organizational learning programs that can help employees internalize the standards and behaviours expected by the management. In this way, employees can cope with ego conflicts and perform various aspects of their jobs effectively. By appreciating that organizations also function as instruments of domination, managers can use reward and coercive power to ensure that employees comply with the service standards such as ensuring that meals are delivered on time, reservations are made accurately and guests are facilitated in every possible way. Managers can use reward schemes that include public recognition for employees who meet performance standards. Consequences of Organizational Images on Stakeholder Relations Stakeholder relations is an important aspect of organizations that should not be neglected by managers. The stakeholder view acknowledges the interests and influence of diverse groups in the organization. This view extends beyond the myopic regard for owners and employees alone to include customers, suppliers, environmental groups, governments, media and the wider community in general. Thus, managers are expected to acknowledge the rights of all these stakeholder groups and perform their functions while balancing the interests of all stakeholders. This section discusses the consequences of some organizational metaphors on how managers manage relationships with diverse stakeholders such as employees, guests, property owners and society in general. Relationships with Guests Guests are the most influential stakeholder group for the Four Seasons Hotels. The extent to which their needs are satisfied determines the success of the organization. The view of organizations as cultures helps to build strong relations with guests by demonstrating concern for their comfort and well-being. The safety, convenience, information and entertainment needs of guests can be met effectively when the organization builds strong cultural practices. According to this perspective, organizational culture and environment are socially constructed (Morgan, 1989). This implies that organizational culture can be reshaped through changes in attitudes and values. Thus, a more customer-focused and service-oriented culture can be created to improve relationships with guests. Relationships with Employees The metaphor of the organization as a machine has implications for employer-employee relations and job satisfaction for the employee. According to the machine metaphor, organizations function as systems that process inputs (including human inputs in the form of labour and knowledge) into outputs such as goods and services. While this view can increase efficiency in resource allocation, it can also affect employer-employee relations negatively. The machine metaphor inspires concepts such as scientific management where employees are interchangeable and little effort is made to recognize the human needs of employees. Jobs become routinized and employees may experience job dissatisfaction which could eventually result in a productivity decline. The instrument of domination metaphor can have significant consequences for employer-employee relationships at the Four Seasons Hotels. Based on how managers at the Four Seasons Hotels use power to enforce decisions and policies, the employees can become motivated or disillusioned. It appears that the domination metaphor is related to the machine metaphor as both imply control over employee actions and behaviours. When employees are empowered to make decisions and schedule work using their initiative, the level of job satisfaction is likely to be high. On the other hand, excessive use of authority and coercive power can breed hostility and increase stress levels among employees. Hence, the domination metaphor should be implemented with caution to maintain harmonious relationships between employers and employees. The metaphor of psychic prisons has consequences for the relationships between the Four Seasons Hotel and employees. As a negative consequence of a strong organizational culture and the machine metaphor can result in employees becoming locked into specific ways of doing things and viewing their job. This stunts organizational growth as the employees become uncritical and accept the cultural values as given. The rights of the employees to participate in decision making and organizational learning can be curtailed if the organization becomes a psychic prison and employees are dependent on maintaining the status quo for their survival in the organization. Relationships with Owners Property owners are the most distinctive stakeholder group for the Four Seasons Hotels that have a vital stake in the performance of the hotel. The political systems metaphor affects the way in which the often diverging interests of the owners and managers are met. As Four Seasons does not own the properties where the hotels are built, the priorities and interests of the owners may be different from the managers. The political system metaphor acknowledges that the actions of various groups are motivated by their particular interests. Thus, negotiation and power struggles characterize the interactions between these two stakeholder groups. However, if carried far, the organizational environment can be characterized by coalition building and escalating conflict over issues such as raising room rents and wages. The ways in which organizations realign their internal systems, processes and resources to adapt to changing environmental trends is affected by the flux and transformation metaphor. As the Four Seasons Hotels realign their structure and values, the relationship with internal and external stakeholders is altered continuously. In 2013, the Four Seasons Hotels appointed its current CEO Allen Smith who has considerable experience in the real estate sector (Watkins, 2013). This change inspired doubts over the relationships with property owners as it was expected that the Four Seasons Hotels would drop its traditional strategy of not owning hotel properties. If this were to be realized, then the property owners would experience mistrust, betrayal and possibly retaliate against this transformation. Relationships with Environment and Society The organism metaphor allows the organization to acknowledge other stakeholder in the environment such as competitors, environmental groups, and the society at large. As a result, the organization learns more about the needs and influence of different stakeholders. On the basis of this knowledge, structural and cultural innovations can be promoted in the organization. For the Four Seasons Hotel, the organism metaphor enables the organization to engage in environment sustainability programs such as the Greening Meetings program and the sea turtle protection program (Four Seasons Hotels, 2014c). The brain metaphor encourages the view of organizations involved in a continuous process of learning by acquiring, organizing and distributing information. By this approach, the Four Seasons Hotel promotes innovation by processing information generated by occupancy levels, guest reviews and industry reports. In this way, the hotel is able to respond to the evolving needs of its stakeholders such as guests, suppliers and employees. Compatibility Between Organizational Images, Stakeholder View and Sustainability Consciousness This section identifies organizational images and metaphors that are compatible with a stakeholder view off organizations in an environment of sustainability consciousness. According to Sloan, Legrand and Chen (2013), accommodation is the biggest sector of the travel and tourism industry. It is also the sector that has the largest negative environmental impact in the form of pollution, waste, and greenhouse gas emissions. Hence, there is a responsibility on the Four Seasons Hotels and other players in the accommodation sector to demonstrate greater sustainability consciousness. Sustainability consciousness in the hotel industry takes the form of environmentally sensitive design, reducing the carbon footprint, nature conservation and environmental management operations (Meade, 2014). Some of the initiatives of the Four Seasons Hotels with regard to sustainability consciousness include the Greening Meetings initiative, supporting the Olympic Games in Whistler, promoting farm to table eating, and encouraging employees to take up volunteer activities in their local communities. Under the Greening Meetings initiative, delegations that conduct meetings or corporate retreats at the hotel are invited to participate in community building activities as part of the team-building exercises (Four Seasons Hotels, 2014d). In 2010, the Four Seasons resort in Vancouver donated its carbon emission credits and switched over to a less energy-intensive heating system. This helped the 2010 Vancouver Olympics to be named the most environmentally friendly games (Four Seasons Hotels, 2014e). At the hotel’s Hualalai resort in Hawaii, the executive chef collaborates with 160 local farmers to procure a purely local diet for the guests at the hotel (Four Seasons Hotels, 2014f). The above examples illustrate what the Four Seasons Hotel is doing to promote sustainability consciousness. A number of stakeholders such as employees, guests, community members, local governments, farmers and managers become involved in these efforts. In this way, the sustainability initiatives help the Four Seasons Hotel to acknowledge and balance the interests of diverse stakeholders through collaboration. These achievements can be described in the light of organizational images and metaphors held by the management. For instance, there is greater compatibility between the culture, political system and flux metaphors and the stakeholder view. These metaphors acknowledge the relationships between the organization and stakeholders outside its boundaries which include community members, local populations, wildlife and the government. The culture metaphor, for instance, recognizes and uses the influence of corporate values and social responsibility to engage is sustainability consciousness. The responsibility of the organization towards society and the environment is highlighted in the culture metaphor. Using this metaphor, the Four Seasons Hotel becomes able to shape values and programs that promote sustainable practices in the organization. The political system metaphor encourages the organization to respect the rights of all stakeholders in its environment. The Four Seasons Hotel, for instance, recognizes the rights of the local community to benefit from environmental resources and a healthy natural environment. The programs developed by the Four Seasons Hotels depend on creating beneficial alliances with guests, sponsors, NGOs and other community organizations. This eventually results in practices that raise the profile of the hotel in the community and build social capital. The flux metaphor is compatible with the stakeholder view because it encourages the Four Seasons Hotel to seek a better equilibrium in its environment. It encourages the organization to appreciate the complexity among external actors and identify important paradoxes such as the paradox between environmental responsibility and cost reduction. At the same time, the organization is able to build new relationships with community members and contribute to sustainability consciousness. References Fortune. 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