Decision-Making Strategies at Hilton Asia Pacific Company - Case Study Example

Decision Making Strategies (Hilton Asia Pacific) Student’s Name: Instructor’s Name: Course Code: Date of Submission: Table of Contents 1.0 Introduction 3 2.0 Company overview 4 3.0 Decision making 5 4.0 Decision making strategies 6 4.1 Strategy 1: Decision making by self 6 4.2 Strategy 2: Getting information from others and then deciding 6 4.3 Strategy 3: consulting with others 7 4.4 Strategy 4: Exploring options through discussions 7 5.0 Decision making areas at Hilton 7 5.1 Carbon offsetting and environmental sustainability 8 5.2 Launch of New MICE campaign 8 5.3 Evolution of business 10 5.4 Launch Center 11 6.0 Conclusion 11 7.0 References 12 Hilton Worldwide 2012, About Hilton Worldwide: Ten brands. 91 countries. 3,800 hotels. 630,000 rooms. Countless opportunities to delight, retrieved on 10th November 2012, available at: http://www.hiltonworldwide.com/about/ 13 Janin M and Dasha R 2012, BSR, Hilton Worldwide Launch Center to Help Business Make Sustainable Purchasing Decisions, retrieved on 9th November 2012, available at: http://news.hiltonworldwide.com/index.cfm/newsroom/detail/14621 14 1.0 Introduction Different organizations have different structures and also function differently based on the environment in which they operate in. What matters most however, is the process of making effective decisions that can be used to ensure that the organization is flourishing. Decision-making is a very important process in any given business. Decision making can be good and effective if it’s based on facts, real information and experience in interpreting adequately available information. The essence of making effective decisions is to ensure that the business is able to manage its resources in which include workforce for its maximum use. In many occasions, managers are trained to make good decisions. However, to ensure that their potential to make effective decisions is enhanced, a supportive environment alongside important strategies must be assured. Decision-making in organizations is virtually happening in almost all levels within the business (Ackermann and Eden 2011). This is because there are those decisions that affect operations at departmental, business and corporate levels. For instance, the boards of directors are charged with the responsibility of making strategic goals and in particular about the business growth and future direction of the business. On the other hand, managers are expected to make more tactical decisions in relation to their departments in relation to organizational goals and objectives. Finally, the employees are expected to make decisions about their own conduct, tasks and performance as well as responses to the customer requests and overall business practice (Eden and Ackermann 2010). It is with this regard that this assignment essay is to explore the concept of decision-making and the strategies that can be used to make sound decisions. The discussion will use the case of Hilton Asia Pacific Company which has managed to grow and succeed in its operations despite operating in a very competitive environment. 2.0 Company overview Hilton Asia Pacific is a member of the Hilton Worldwide. Hilton Worldwide is one of the largest companies operating in the hospitality industry. The company has a history of over 90 years and has continued to grow very fast than ever before despite all odds in the operating environment that are characterized by high level competition and tough global economic times that have been witnessed in the recent past during the financial crisis and economic recession. The company is the pioneer in the industry and its portfolio which comprise such as travelling, developing, and partnering and team working are some of the aspects that have made the venue one of the most preferred. The company has over 10 brands, with over 3,800 hotels, 630,000 rooms and countless opportunities for the customers. The company’s approach to using an open door, a welcoming smile and an exceptional experience is what has made millions of the world travelers to prefer stay their each year. In terms of development, there is a dream and a system to actualize its goals. The company applies the approach of field testing processes and local understanding to know what to design and offer at each stage and managing their unique property. For any prevailing opportunity, the company tends to take advantage of the global, innovative and existing expertise to develop some of the leading brands in the hospitality industry (Hilton Worldwide 2012). 3.0 Decision making Even though leadership is seen as a second to nature by many people according to Eden and Ackermann (2010), one aspect of leadership that has been considered very difficult is the process of decision making. While making different decisions, there are numerous factors and strategies to consider. During decision making, it is not always easy to please each and every person and also to predict the impact the decision will have on the overall performance of the organization. It is with this regard that some of the leaders are witnessed to procrastinating decision making and even try to offload the decision to someone else. However, most important to note is that, having a highly effective strategy to decision making is a very useful tool. However, despite the strategy to decision making, there are some steps that are followed and that are considered common in almost all strategies (Drucker 1999). While in some situations, leaders may choose to make decisions on their own, in some other cases, the leaders may decide to involve the team members even though this depends on the level of dynamism in the group. On the other hand, some leaders find it very difficult to make decisions if they do not have a “sounding board” around them. It is with this regard therefore, it is considered important to decide the strategy to make a decision for an organization. This is because different issues affect organizations and they tend to differ from one organization to another. For example, a company that is only operating in the local environment may have a totally different strategy to decision making as opposed to an international company like Hilton Asia Pacific which has a global touch and doing its business in different regions where situations are quite different (Pugh 2007). 4.0 Decision making strategies According to Ackermann and Eden (2011), there are about five strategies to decision making used by organizations and they include: making a decision as an individual; searching information from other people, stakeholders and partners before deciding on the decision; consulting with the major stakeholders for views on one-on-one before deciding on which decision to make; engaging in a group discussion to explore various options of decisions before deciding which one to work with and finally, using the consensus approach to by the group members. 4.1 Strategy 1: Decision making by self In this strategy, the leader of a team or group is the only person charged with the responsibility of making decision. However, the most important feature with this strategy to decision making is that the leader has all the information he requires in making the decision. Further, the leader is already aware that the decision to be made is what best suits the team and the organization in overall even though acceptance with others may not matter so much. The pushing force to decision making in this case is the, is the urgency of the decision (Drucker 1999). 4.2 Strategy 2: Getting information from others and then deciding In using this strategy, before any decision can be made in the organization, the leader has the choice to search for all the information required to make the decision. This strategy is especially applied in a situation where decision maker does not have as much information as possible. With enough information, the decision to be made is considered the best even though still acceptance with others may not carry a lot of weight (Eden and Ackermann 2010). 4.3 Strategy 3: consulting with others This strategy is founded on the fact that the best strategy may not always be clear. This is because other stakeholders may have conflicting views and priorities. By listening to different perspectives and views, the decision makers are well placed to make better decisions. Further, this strategy is important in ensuring that the decision made is accepted and supported by majority (Ackermann and Eden 2011). 4.4 Strategy 4: Exploring options through discussions Like the case of consultation, group discussion to explore different options to decision making, also points out that the best decision may not always be the clearer one. This is because in many occasions, conflicting views do exist and that acceptance and support of a given decision option is only acceptable and supported by other team or group members if different stakeholders are involved in the discussion. With group discussions, different possibilities are explored by listening to the views by others. However, time is of essence in this strategy as it will require some quite amount of time to attend to the views of each and every person (Drucker 1999). 5.0 Decision making areas at Hilton 5.1 Carbon offsetting and environmental sustainability Given the increased demand by the world community on global company to embrace the concept of corporate responsibility by taking due consideration of the environment in which the businesses operate in, the business community is whatever it can, to make sure that everything is in order. It is with this regard that the business has continued to work on various decisions to improve on its responsibilities in Carbon Offsetting Program. This is especially important in ensuring that the company has the good reputation in the market and this can be done by safeguarding the environment without passing any cost to the consumer. The Carbon Offset Program that was launched in Singapore as part of Hilton Worldwide initiative, was aimed at ensuring that company in the Asia Pacific region, has had measures to help reduce the impact of the company in the environment in such countries as Malaysia, Singapore and Thailand. The decision was made following claims that the business was contributing so much to the environmental pollution through carbon emissions. The decision was made during the company forum which took place in Singapore where it was agreed that the company in the region increases its purchase for carbon credits in order to help offset their environmental impact (Hilton Worldwide 2012). Sustainability is the central role for the company it influences how the company makes its decisions and this can be learned from the way the company involves its leadership which includes the company vice president of operations, William Costly, in Southeast Asia, individuals and other organizations in initiating its sustainability programs. 5.2 Launch of New MICE campaign Hilton Worldwide through Hilton Asia Pacific has also made very major decisions about the company during the Hilton Worldwide conference held on 1st July 2012 in Singapore. MICE initiative which is about meetings, incentives, conferences and events is concerned with promoting the company through different products in the region. The idea behind the decision to use the MICE approach is to help the business reach millions and especially those that are customers of the company. In this initiative, the regional bookers were given the opportunity to take part in the challenge can win upto 2 million Hilton HHonors points. Despite this strategy being an initiative by the company, the decision to organize and run this as initiative was planned, communicated and agreed by different stakeholders including the company itself, other companies that organize meetings and conferences in the region and the customers who are regular bookers in the company premises. The purpose of this decision was to ensure that the company is having an initiative that will recognize and appreciate the top bookers in the hotel and its reservoirs. Further, organizing of this initiative also entailed incorporating major retail markets in the region which include China, Southeast Asia, Japan, Korea, India and Micronesia. This is to ensure that each and every retail market has a stake in the event. Finally, Hilton Worldwide recognizes that various organizations are discerned about MICE expenditures and are trying to look for ways in which to offer more value and unique experiences to their customers through face-to-face meetings and conferences. The company also believes in holding regular meetings within the company hotels so as to be able to get in touch with various stakeholders in who can give very important information with regard to decisions made by the company and affect the value that the customers derive from the company services. For example, MICE provide an opportunity to share minds among different stakeholders, and also give priority not only to giving exceptional value to the customers but also by providing most customer tailored services and products (Hilton Worldwide 2012). 5.3 Evolution of business One of the major topics in Hilton Asia Pacific that for long have been under consideration and that require decision to be made upon is evolution of business in order to help the company adapt to the competitive business environment. With the evolution of the business, it is important to look beyond the booking trends. This is because research is showing that the business travel industry is evolving and is affected by the summer vacations. The survey by Workstyles Study has shown that the business travelers are becoming very cautious of what they get as value from hotels and they could wish to have the rooms spread out. The business travelers want hotels that give them the opportunity to interact with business associates and also with fellow travelers. The major challenge in complying with this requirement by the customer is founded on the need to balance between comfort, amenities and schedules with customers’ changing demands. The bottom line in this case is that while the travelers are looking for a very strong proposition from the hotel, the decision has to be made on how to redefine its portfolio so as to incorporate new technology, healthier food options and enhanced fitness services which are among the top demands by the market. Since the start of the year 2012, the hotel industry has witnessed major rebound in the business travel and what can be spotted is that the guests are now demanding more that just the fiscal value they get. Customers are now less impressed by frequent bells and whistles and now are now looking level amenities and services that deliver comfort and good productivity. This is after study surveys including the one by Independent shown that travel business is booming even though their demands have continued to evolve demanding for major decisions to uplift their amenities and services for greater comfort and productivity (Homewood 2012). 5.4 Launch Center Launch center and BSR was launched by Hilton Worldwide with the intention of facilitating the development of a sustainable procurement for the company. Today the center helps the managers integrate the procurement with sustainability decisions. This is because the center provides opportunity for carrying out unique set of research in order to facilitate proper use of available information on sustainability products. With the existence of the Sustainability Consortium and other industry and product-level based programs, the buyers are now able to access all the information they want in relation to product sustainability products. This is according the Senior Vice President, Advisory Services, BSR. However, guidance is lacking both to the customer and company, with regard to using new information and giving priorities to decisions about quality, price and delivery of the services. The purpose the center is aimed at developing, the research case studies and surveys, metric analysis, educational guidelines and web content and one-on-one and collaborative consulting projects. The overall objective of developing these aspects is to help the company have as a much information to improve on its decision making process (Janin and Dasha 2012). 6.0 Conclusion In the contemporary business environment, one of the most responsibilities of management in organizations is to make decisions. The process of decision making is considered very fundamental virtually in almost every organization as it helps in deciding what has to be done in order to help the organization attain its goals and objectives. While making decisions in organizations, different strategies are available for use and they include decision making by self, searching for information before deciding, decision making through consultation and exploring options through discussions. The purpose of using any given strategy in an organization is to help the company adapt to the operating environment and improve on its productivity and performance. In the case of Hilton Asia Pacific which is a member of Hilton Worldwide, different strategies are very eminent in decision making. From the company case, the identifiable and those strategies that seem to be common in the company in making decisions include consultation, partnering with major stakeholders and investing in research to access information to guide decision making as can be seen from the case of the development of BSR and launch of the Center for Sustainable Procurement. 7.0 References Ackermann, F and Eden, C 2011, Strategic Management of Stakeholders: theory and practice, Long Range Planning, 44(3), p. 179-196. Ackermann, F and Eden, C 2011, Making Strategy: Mapping Out Strategic Success, London, Sage. Drucker, PF 1999, Management challenges for the 21st century, Newton, MA, Butterworth- Heinemann. Drucker, PF 2001, The essential Drucker, Newton, MA, Butterworth-Heinemann. Ede,n C and Ackermann, F 2010, Decision Making in Groups: theory and practice.Nutt, P. and Wilson, D., Editors. Handbook of Decision Making. Oxford, Blackwell. Hilton Worldwide 2012, Hilton Worldwide introduces Carbon Offset Program for events and meetings in Southeast Asia, retrieved on 10th November 2012, available at: http://news.hiltonworldwide.com/index.cfm/newsroom/detail/22177 Hilton Worldwide 2012, Asia Pacific: Hilton Worldwide to launch new MICE campaign in Asia Pacific to give away 7 million Hilton Honors points, ‘FROM MICE TO MILLIONS’ kicks-off this August in more than 90 regional hotels and resorts, retrieved on 11th November 2012, available at: http://news.hiltonworldwide.com/index.cfm/newsroom/detail/14679 Hilton Worldwide 2012, About Hilton Worldwide: Ten brands. 91 countries. 3,800 hotels. 630,000 rooms. Countless opportunities to delight, retrieved on 10th November 2012, available at: http://www.hiltonworldwide.com/about/ Homewood Suites 2012, Comfort Is King: New Study Reveals Evolution of Business Travel as Travelers Seek the Amenities of Home, retrieved on 11th November 2012, available at: http://news.homewoodsuites.com/index.cfm/newsroom/detail/22030 Janin M and Dasha R 2012, BSR, Hilton Worldwide Launch Center to Help Business Make Sustainable Purchasing Decisions, retrieved on 9th November 2012, available at: http://news.hiltonworldwide.com/index.cfm/newsroom/detail/14621 Malaviya P and Sivakumar K 2002, “The Influence of Choice Justification and Stimulus Meaningfulness on the Attraction Effect,” Journal of Marketing, 10, p. 20-29. Pugh DS. (Ed.) 2007, Organization theory. London, Penguin. (Reprinted from Enacted sensemaking in crisis situations, Journal of Management Studies, 25, pp. 305–317, Read More