Fayols Administrative Management Theory for Increasing Effectiveness of the Hotel - Essay Example

Increasing effectiveness of the Junction Hotel Introduction Junction Hotel is an upmarket, centre hotel with a traditional approach and tradition of strong customer service. The hotel has undergone several changes of ownership and this aspect has been reflected in the efficiency of the hotel (King & Lawley, 2012). Currently, the Second-Chance Consortium is a new owner of the Junction Hotel and this venture capitalist company is planning to turn the failed business into profitable enterprise (King & Lawley, 2012). However, there are some challenges that the company’s management is currently facing with: slow and cumbersome systems (for example: long check in due to risk of losing the registration details) not working machines for processing payment; inconsistent standard of rooms; erratic schedules; slow service at the restaurant; disorganized staff, lack of motivation of employees, lack of clarity of tasks; service level below expectations; no clear identity or purpose to the hotel (King & Lawley, 2012). Simon Chance, the owner and Chief Executive of Junction Hotel is seeking to increase the effectiveness of the hotel and to address the above listed weaknesses. The aim of this paper is to research how the theories of rational organization and psychological perspectives (personality and motivation) can be applied by Simon Chance in order to increase the effectiveness Junction Hotel and to ensure long-term success of the hotel. Rational model and the main features of rational organisation The definition of “rational model” also called “machine” model is applied to an organization, which is viewed as “an instrument, a set of interrelated means contrived to achieve a specific end” (Astley & Zajaz 1991, 402). Thus, rational organizational can be characterized as a unit comprised of many subunits and other elements that are set together in order to complement each other and thus to enable management to achieve the corporate objective or plans (Astley & Zajaz 1991). Rational model has two key features: goal specificity and formalization. On the one hand, rational organization should have a clear structural design, were the tasks that should be completed are specified and the resources necessary for completion of these tasks are allocated in the most efficient way. On the other hand, work behaviour should be regulated and standardized through the formalization process. Taylor’s scientific management The concept of rational approach to organization has been first introduced by Frederick Taylor. Engineering background has enabled Taylor to focus on efficiency aspect in the organizational analysis which has been further transferred into the scientific management theory. His early insights of rational model were based on the idea that the most efficient way of work was the way of performing a task in the least amount of time (Referenceforbusiness.com, n.d.). Famous automobiles’ manufacturer, Ford Moto Company, has applied Taylor’s concept of efficiency to its manufacturing process. Thus, scientific management principles have helped Ford to produce automobiles in mass scales (Referenceforbusiness.com, n.d). Fayol’s administrative management theory While Taylor has addressed only the problems related to the technical elements of production and worker organization, Henry Fayol has addressed the problems of executive leadership in the rational structure (Wood & Wood, 2002). Thus, Fayol has become a father of administrative management theory, which implied that broad administrative principles could serve as guidelines for rationalizing organizational activities (Vectorsudy.com 2012). Fayol has divided these activities into six major categories: Commercial: buying, selling, and exchange; Technical: production and manufacturing; Managerial: planning, organizing, commanding, coordinating, controlling; Financial: obtaining and using capital; Accounting: balance sheet, stocktaking, statistics, costing; Security: protection of property and persons (Vectorsudy.com 2012). Webers’ bureaucratic approach to rationality Max Weber has also made a significant contribution to the development of the theory or rationalization. There have been formulated four major types of rationality, including: practical rationality, theoretical rationality, substantive and formal rationality (Kivisto 2001). Practical rationality was referred to the day-to-day activities of ordinary people, who were trying to achieve methodically a definite and practical result by “means of an increasingly precise calculation of adequate means” (Weber 1958 cited by Kivisto 2001, 42). According to this theory, people measured all alternatives available to them and made their choice based on the best one. This behaviour is very logical and therefore people tend to apply practical rationality while solving their daily problems. Theoretical rationality is based on the application of various concepts such as logical deduction, arrangement of symbolic meanings, and the attribution of causality (Kivisto 2001). Substantive rationality is based on the cluster of human values or value postulates, which people tend to consider while making their choice of means to ends (Kivisto 2001). Formal rationality that while calculating rational means people take into consideration universal rules, laws and regulations. To Weber, this type of rationality is institutionalized in bureaucracy, the capitalist economy and modern law (Kivisto 2001). Thus, the means to ends are chosen by the regulations and rules of large structures. Weber has promoted formal type of rationality and believed that larger human values should have been replaced by the rules and procedures. In Weber’s view, bureaucracy was one of the manifestations of rationalization of society (Kivisto 2001), whereas the following ideas have been supported: division of labour into clearly defined, routine tasks; authority hierarchy; selection of employees based on technical qualification criteria. Adoption of rational approach by contemporary organizations Rational approach to the organization design has been actively adopted by the modern organizations, such as McDonalds. As Kivisto (2001) states, the fast-food chains well illustrate the process of formal rationalization and its basic elements, such as: efficiency, predictability, quantification, control through the substitution of nonhuman for human technology. The chain of McDonalds is a good example in this case, as the fast-food giant has grown its business globally. There are many aspects illustrating efficiency of the McDonalds’ model. The concept that customers should stand in line, order from the general menu and then throw away their garbage to the bin has been developed and institutionalized by McDonalds. Thus, there is no need for waiter – as customers are performing the function of unpaid serving employee (Kivisto 2001). Another example of efficiency is introduction of McDrive, where people save their time and do not require parking place. Car drivers also have to drive to the cafe and order what they need with no need for serving personnel. Thus, efficiency is viewed here as the process of delegating work to the consumers (Kivisto 2001). Calculability as the rationality element with an emphasis on calculation, counting and quantifying has also been adopted in McDonalds. Big Mac, number of average minutes per serving one customer, etc are the examples of calculability principle in McDonalds. Rational organization involves the element of predictability. While coming to McDonalds people know what will they order and what are the products in this fast-food restaurants as all the meals are standardized. Ingredients, process of manufacturing, storing and preparing food comply with standardization requirements. The element of replacing people with nonhuman technologies also has been successfully adopted by McDonalds. McDonalds has introduced IT, robots and other technologies that help the company to control both its employees and customers. Thus, the human factor, which is a great source of uncertainty and unpredictability in any rational organization, is decreased (Kivisto 2001). Example of McDonalds perfectly illustrates how the adoption of rational model helps organization to increase efficiency and control over all systems and employees. While introduction of technologies and development requires significant capital and time resources, such investment enables the organization to decrease the costs. For example, investment in robots requires significant sum of money, however, the company decrease payroll costs. Advantages and disadvantages of rational organisation As it has been already discussed, by adopting rational approach to the organization design, the company gains some obvious benefits. However, there are also some disadvantages and limitation of the rational organization. The key advantages and disadvantages of the rational organization are listed below in the Table 1. Advantages Disadvantages Increased efficiency; Uncertainty management; Increased control; Helps to decrease human factor and therefore mistakes/deviation Lack of personal preference of employees; Lack of non-financial incentives and motivation of employees Table 1. Advantages and Disadvantages of Rational Organizational Theory Psychological perspectives – personality and motivation The concept of Personality The term of “personality” can be defined as “a set of characteristics of behaviour displayed by any individual” (King & Lawley 2012, 237). There are recognized three key approaches used for analyzing the human personality, such as: the nomothetic approach; the ideographic approach; and the social-radical approach. Nomothethic approach implies that personality represents a set of measurable characteristics and based on the specific set of characteristics people are sorted into personality types (King & Lawley, 2012). By sorting people into types it is possible to develop appropriate motivation and management approaches. Models of personality types are often used by HR management while recruiting and selecting the personnel. Ideographic approach is conflicting with the nomothetic approach as it suggests that personality is a result of our interactions and experiences. This concept is much more complex than the previous one as it admits complexity and richness of human personality. Social-radical approach implies that personality is a product of society and its power structures and organizations (King & Lawley, 2012, 237). Key theorists Literature provides the names of several theorists who have made substantial contribution to the development of personality theory. Thus, for example, Carl Gustav Jung has differentiated human personalities by two categories: introverts and extraverts. Introverts are those individuals who energize from within the self and focus more on inner world, while extroverts are individuals who tend to focus more on external world as a source of energy (King & Lawley, 2012). Thus, introverts feel themselves more comfortable working alone and extraverts prefer to be engaged with people (King & Lawley, 2012). Hans Eysenck has emphasized the role of emotional stability and instability in personality development, while famous Sigmund Freud has defined the ways in which personalities develop and change (King & Lawley, 2012). John Stacey Adams has designed equity model of motivation, based on which employee’s motivation depends on the rewards compared to others employees’ rewards. The concept of Motivation Motivation is the willingness or desire of an individual to perform a specific task/job or to behave in a particular manner (King & Lawley, 2012). Motivation implies certain stimuli or rewards for the sake of which an individual puts his/her efforts. There are recognized several workplace types of rewards, including: extrinsic rewards (for instance, salary or pay); intrinsic rewards (for instance, sense of achievement, self-recognition; etc.); and social rewards (is a result of social interactions – teamwork spirit, social respect, etc.). (King & Lawley, 2012). In addition to the rewards there have been formulated some theories of motivation: behavioural theories of motivation; content theories of motivation; process theories of motivation; and social theories of motivation (King & Lawley, 2012). Behavioural theory of motivation is based on the approach that in order to change or to adjust the behaviour of and individual there is applied a planned provision of punishments and rewards (stick and carrot approach). Content theories of motivation imply deeper analysis of an individual’s needs and further adjustment of the content of work to these needs (King & Lawley, 2012). Process theories of motivation are based on the idea that individual processes of perception, calculation and comparison are the key elements in their motivation. Social theories of motivation imply that role of work in forming identity for people within society plays an important role (King & Lawley, 2012). Key theorists The concept of motivation has been theorised by many different sociologists and psychologists. Abraham Maslow famous for his “pyramid of needs” has classified human needs in a hierarchical order (King & Lawley, 2012). Frederick Herzberg has developed an idea that there is a specific set of job characteristics that can motivate employees, while such aspects as control, regulation, etc can cause dissatisfaction (King & Lawley, 2012). Usage of motivation by contemporary organizations such as McDonalds Contemporary organizations widely use personality and motivation concepts in developing their HR strategies. Financial incentives are not enough for efficient work of employees as there should be taken into account a variety of different personal needs and motivational factors. McDonalds is a good example of the organization which has adopted various non-financial rewards into incentive scheme for its employees. Thus, for example, in the McDonalds’ restaurants can be seen the photos of “the best employees of the month”. This is one of the elements of social theory of motivation, where the employee’s efforts and hardworking are recognized within the company and are publicly announced. It also drives a healthy competition among employees and therefore improves efficiency of their work. Another element of motivation adopted by the McDonalds’ chain is the opportunity for people to develop their careers within the company. As these opportunities are not ephemeral, people are inspired and encouraged to work harder. The concept of psychological perspectives of personality and motivation both argues and supports the model of rational organization. On the one hand, Taylor and Ford believed that financial reward (or extrinsic reward) was the only element of the employees’ motivation. Employees were viewed as lazy and inherently demotivated individuals, whose only motivation was based on the size of their wages. On the other hand, the main concept of the rationality implies mechanisation and standardization of the processes, which automatically suggest the need to perform routine and boring job. Lack of motivation of employees and little or no focus on employee’s needs of self-fulfilment and recognition are key disadvantages in the rational model. The need of Motivation in the Junction Hotel As it has been already mentioned in the introductory part, employees in the Junction Hotel do not have proper motivation and clear identity or purpose to the hotel. In case if there will not be introduced any changes to the HR model, people working in the hotel may leave and it will result in high turnover, which is not a good thing for the Junction Hotel. Without proper motivation, people will not be able to improve efficiency. It is worth to emphasize that the nature of the business implies high concentration of people, and human factor plays a crucial role here. People, working in such public places as hotels, constantly communicate with guest and visitors and therefore, the level of professionalism and motivation of hotel’s employees sets the background for the overall company’s success. Conclusions and Recommendations In order to increase the efficiency of Junction Hotel it is critical to adopt rational model to the key business operations. Rational approach will enable the management to solve the problems related to slow and cumbersome systems, inconsistency of rooms standards, erratic scheduling; slow service at the restaurant; disorganized staff, and many other relevant issues. By introducing clear systems and procedures to every element of business process starting from the moment when the guest has booked the room and entered the doors of the hotel and up to the moment when he has left the hotel, management of Junction Hotel will definitely improve the efficiency of the hotel. There should be developed a detailed roadmap of movement of guest through all the services of the hotel and every element should be improved in quality and timing aspects. Development and allocation of detailed and clear tasks to the employees will also help Junction Hotel to improve the overall efficiency as people will have clear understanding of what needs to be done and they will spend less time for wondering around and chatting with somebody because the time for performing tasks will be limited. In case of the Junction Hotel, such rational approach can be best illustrated in case of cleaners. There will be set targets and procedures and defined the optimal time for cleaning one standard room and the cleaner will have to manage within a given timeframe. Thus, for example, instead of cleaning 2 rooms per hour, cleaners will have to manage in 30 minutes. This process can be accelerated by using special technologies for quick and easier cleaning. As it has been already mentioned, rational approach has one significant disadvantage which has negative impact on the employee’s motivation. Rational organization often ignores personality and individuals’ needs for self-fulfilment and recognition. Therefore, the management of Junction hotel is recommended to develop HR strategy which will address the problem of employee’s motivation. This motivation should imply more than just financial reward, as it is not enough for employee’s motivation. In case of Junction Hotel motivation of employees’ plays a crucial role on the business’ success as people is the key element in this type of business. References Astley, C., & Zajaz, E. (1991). Interorganizational power and organizational design. Orgazational Science, 2(4), 402-405. Wood, J., & Wood, M. (2002). Henri Fayol (1st ed.). London: Routledge, p.120 Kivisto, P. (2001). Illuminating social life (1st ed.). Thousand Oaks, Calif.: Pine Forge Press, pp.41-59. King, D., & Lawley, S. (2012). Organizational behaviour (1st ed.). Oxford: Oxford University Press. Referenceforbusiness.com,. n.d., Organizational Analysis and Planning - system, advantages, school, model, type, company, disadvantages, business. Retrieved 10 August 2014, from http://www.referenceforbusiness.com/management/Ob-Or/Organizational-Analysis-and-Planning.html Vectorsudy.com. (2012). Administrative Management. Retrieved 14 August 2014, from http://www.vectorstudy.com/management-schools/administrative-management Read More