Reengineering the Hotel Organization

Abstract

Most small- and medium-size businesses, including hotels, are usually organized by function. In functional organization, people who perform similar tasks or have similar skills are grouped together into one department. The authors propose that hotels currently organized by departments should group tasks into coherent business processes, such as customer communication, product development, and problem resolution. The advantages of reengineering by processes include: performance is measured by customer-based criteria; job preparation shifts from training to education; executives are able to be leaders and facilitators rather than checkers and arbitrators; and employees and departments become less protective of their turf and more productive.