Business Structures Essay

972 words - 4 pages

Organizational roles and structures are important for hotels and lodges to function efficiently. “The purpose of these structures is to coordinate, communicate, and control individual actions to support the strategy, and to facilitate workflow, permit management control, and create doable jobs” (Enz, 2010). There are many dimensions of organizational structures from hierarchy of authority, degree of centralization, complexity, specialization, formalization and professionalism that needs to be decided upon of being necessary for organizations to operate at best performance. Basic-level structures include functional, project matrix and geographic/customer levels.
Simple Management Structures is also known as owner/manager structure. Simple management structure is when “the owner is the top manager, and the business is runs a sole proprietorship while the owner makes all important decisions and directs the efforts to all employees” (Enz, 2010). This works great for small businesses. Once business expands hierarchy develops between departments. A popular ski resort such as the Wait Till Monday Lodge in central Colorado that has 50 employees needs to have an organizational system of hierarchy to run smoother. Jose the owner has always believed in a “do-the-right-thing” mentality but overtime the teams’ productivity has declines and new structure is necessary to continue the success of the popular ski resort.
Functional business structure is most commonly used to organize a company by putting employees into departments or groups based on their knowledge and job experience. “Functional structure is oriented towards internal efficiency and encourages teamwork and coordination of activities within individual departments or units” of a business (Enz, 2010). The strengths of functional structure include efficiency leading departments, allow specialization and expertise through development, and are best in organizations with few services or products. The weaknesses of functional structure include a slower response time to environmental changes, hierarchy decisions taking longer due to the overload, poor coordination can happen across departments, and can restrict views on organizational goals.
The Wait Till Monday Lodge would operate great under the functional business structure. Jose the owner could still be the person who is owner/general manager to lead each department. With 50 employees it is best for Jose to divide his employees into departments such as food and beverage, accounting, rooms department, human resources, marketing and if necessary engineering. Jose using functional business structure could still rely on his teamwork oriented goals for his employees. This structure would provide efficiency in all departments through organizations and communication. The negative aspect of this structure for Jose’s lodge could include the length of time communication is reached to each department, which could restrict some customer...

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