Organisational Structure

Case Study on a British Multinational Hospitality Company

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Organisation structure is an essential part of business that ensure hierarchical department that perform their tasks in order to accomplish the overall goal of business. It is composed of small units that are employees and departments. The hierarchical structure brings together resources and individuals for producing efficient services and earn profits to enhance reputation in corporate world. For present study IHG has been chosen. The purpose of this report is to examine human behaviour in workplace of IHG through management and leadership theories. It also aims to provide understanding regarding organisational politics and power which are a part of human behaviour.

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a) Organisation's Effectiveness

1.) Management and Leadership

A leader can create influences on individual and support them to work for the objectives defined for the group. An Effective leader is one who influences and directs people regarding their work so that their purpose of serving organisation positively is complete. On the other hand, management refers to an ability of getting things done through individuals in formally organized group. Management is a goal oriented process. It has power and responsibility to make decisions and provide instructions for accomplishing goals and targets. Both leadership and management can be attributes of one single individual working for an institution (Effective Quality Management in the Hotel Industry, 2017).

Different theories to management

Management is organising all activities and business functions in a systematic manner so that no two functions are overlapped. This improves quality and efficiency of business. Different types of theories and concepts are applicable for management which can be adopted by IHG (International Hotel Group) to deliver best in class services. These theories are described below:

Different theories to leadership

Leaders are drivers of a group. This group can be a business, team or even a country. There are certain leadership theories that help in increasing effectiveness of IHG. There are mentioned below:

Application of management and leadership to organisation's effectiveness

Organisation effectiveness is a parameter that is used for judging market position. It also helps in understanding the peculiarities of meeting objectives and goals during a business cycle. IHG has to maintain its brand name and reputation. Efficiency for achieving the purpose of business functioning can be increased by applying management and leadership principles (Muijs, 2011). As mentioned above there are certain theoretical approaches that can be adopted by respective authorities. Factors that help in contributing to organisation effectiveness are stated ahead:

2.) Power and Politics

Power in organisation

Power is a sense of authority with responsibility. It allows a person to instruct and take care of particular activities that are under his territory. In business organisations these powerful personalities are leaders, managers, senior managers, chief executive officers, etc. (Goetsch and Davis, 2014). The level or intensity of ruling can be different and depends upon position of individual. IHG manages to distribute power amongst its senior level managers so that effective functioning is guaranteed. It is a human trait that is utilised for managing different business operations.

The aspects and understanding or power differs for every employee working in IHG. A ground level staff has the power to perform his tasks but is guided by his manager. While manager has authorisation of looking after complete set of functions on ground level. There can be some sources of power in IHG:

Politics in organisation: Organisational politics is a term often not perceived in a positive way. Whenever, politics is involved, misuse of power is significant (Ferris, 2012). But politics can play an optimistic role in long run when benefits of company are considered. When a network is designed internally for communicating and achieving personal or organisational benefits then, the process is termed as politics. If used for a positive purpose then, business politics can be less manipulative and more profit oriented (Thiel and et. al., 2012). IHG has to screen its internal activities so that organisational politics do not ruin its long term goals or objectives.

At times in external environment of businesses; rivals and businesses initiate politics so that they can curb competition and manage to acquire better customer share. This is not ethical and legitimate. Self interests and unethical practises are roots of negative politics.

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Application of power and politics to organisation's effectiveness

Perseverance for success is through acquisition of power. IHG is a powerful company in international markets due to its successful business composition. Anticipation of positive power will enhance efficiency and productivity while negative power will ruin all favourable circumstances. Henceforth, it is essential that power is controlled and managed for adding to effectiveness of company. Politics is intentional enhancement of self interests. Ethical organisations do not motivate politics but authenticity can be imbibed in politics (Goetsch and Davis, 2014). IHG' s working efficiency will decrease if politics and power are negatively handled. Ambience is spoiled and people cannot concentrate on objectives or purpose of the company. They will apply their energy in overcoming barriers that are produced due to negative politics and overpowering instructors.

Politics creates a connection of illegal or unfair practises inside IHG. Factors like allocation of responsibilities, performance standards, rewards and incentive distribution, employee expectations, etc. when controlled help in producing positive politics. Workplace must be free of grudges, hard feelings, negativity and oppressions. This will not only boost the confidence of employees and improve retention (Lux, Crook and Woehr, 2011). Negative factors will give birth to negative politics and this will limit progress of IHG. The reason behind people indulging in such activities is weak leadership and monitoring. Equality amongst employees is a must to curb politics. Discrimination on the basis of gender, religion or personal preference must never be entertained in IHG or any other enterprise.

Person at a powerful position always faces criticism. Despite of his selfless efforts there are certain elements that would work for ruining the reputation and success path of authority in power. IHG' s effectiveness will be increased if leadership is excellent. Managers are considered as representatives of the company. Hence, their power to instruct and manage all operations is controlled by giving responsibilities. With proper distribution of opportunities and timely rewards generate better productivity. Respect towards authorities increases due to such selfless decisions (The Impact of Power and Politics in Organizational Productivity, 2017). Concerns regarding strategies and decisions taken of benefit of IHG can be expressed clearly, that too without any hesitation.

b) Impact On Culture Of IHG

1.) Impact of management and leadership on the culture of organization

IHG is one of the largest multinational organisations that functions in various countries and with various subsidiaries. To mange this large chain of services specific skills and efficient leadership is required. Both leadership and management go hand in hand. Deficiency of any one element can lead to crucial consequences. Organisational culture is something that is made up of beliefs and values that are set in internal environment. Ethical practises, employee relations and productivity levels are major part of organisational culture.

Culture in IHG is formed by actions and behaviours of its staff with efforts and contributions from the leader or manager. To create a good culture and working atmosphere it is the duty of leaders to adequately perform their roles (Higgs and Dulewicz, 2016).

Managers in hotels play a vital role. They are responsible for all ground operations that are executed in Hotels. They are answerable to senior managers or leader like authorities. Following impact is often felt by IHG due to management and leadership.

2.) Impact of power and politics on culture of organisation

IHG' s workplace culture consists of diversity amongst people. Because the company resides in culturally diverse regions, it is important to develop a positive working atmosphere (Ferris, 2012). Politics is something that always disturbs smooth working of businesses. The impact that is felt on culture of IHG due to power and politics are:

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Organisational behaviour is just not limited to attitudes of employees. It also refers to major functional aspects that is management and leadership with power and politics. This assessment helps in gaining knowledge about ways in which these four elements influence organisation effectiveness of IHG. It was also realised that choice and implementation of proper theories and strategies decided the output on culture of the company. This power resides in hands of leaders or managers. In final section of this report, the impact or influence management and leadership can have on IHG' s working culture is portrayed with effects of power and politics on the same. Hence, to maintain better organisation behaviour in the company, IHG must inculcate effective leadership with negligible negative politics.


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