Flat Organizational Structure in Hospitality Industry

Abstract

Many businesses hierarchically organize themselves, with the executive management at the top and subordinates below them. Nonetheless, hospitality companies fare better when their organizational structure is flat and employ no middle managers or supervisors. Flat organizational structures are characterized by increased flexibility in disseminating information throughout the workforce, leading to quick and clear communications. When information has to pass through several people on its way up a hierarchical structure, it can become garbled. In a hierarchical organization, employees have little incentive to be open about their true motivations and values with their superiors. Instead, staff members often attempt to conceal issues and mistakes that could damage their reputation with management to evade condemnation. A flat organization frees employees from the burdens of their positions, encouraging teamwork and creativity essential to the growth and improvement of the hospitality sector.

Introduction

Some corporations favor a hierarchical structure with many tiers of administration, from the chief executive officer down to the staff. However, companies in the hospitality industry do better with a flat organizational structure in which there are no middle managers or supervisors. Every corporation, historical and modern, has needed to rely on teamwork and the delineation of responsibilities to achieve its objectives (Mosca et al., 2021). However, in today’s hypercompetitive and rapidly evolving social landscape, the conventional hierarchical structure methods reveal serious shortcomings and unpredictability. Businesses increasingly rely on the stability of clear communication and motivation as they adapt to an environment of turbulent new ideas and changing moral opinions; the flat organizational structure makes this possible with minimal effort. With a flat organizational structure, there are fewer tiers of management, which means more people can make decisions and have an impact, leading to growth and development. All organizational structures have drawbacks, but in the 21st century, companies that provide their employees leeways and a chance to succeed thrive. The flat organizational structure is a major catalyst for these elements.

Some characteristics of flat organizational structures demonstrate increased flexibility in providing information throughout the workforce, resulting in fast and clear communications. For example, communication in businesses with a tall or hierarchical structure can be distorted since it has to travel via several layers of intermediaries. This should be avoided at all costs due to the time and effort involved, as well as the potential for serious mistakes that could add unnecessary stress to already heavy workloads. Firms in the hospitality industry can profit from and improve upon open lines of communication attributable to flat organizational structures (Harsch & Festing, 2020). Flat organizational structures make it simple to adapt to the market, customers, and competitors and reduce the likelihood of communications distortion within the chains of roles. As a result, employees can better adapt to changing circumstances without sending messages up a chain of command.

Some successful businesses have traditionally relied on hierarchical management techniques, but the flat organizational structure eliminates many problems associated with this approach. The management of flat organizations is focused on the company and constantly looking for new methods to improve productivity (Morris et al., 2021). This study will discuss the benefits of adopting a flat organizational structure in the hospitality industry, including improved communication and the opportunity for people to realize their full potential. The success of open lines of communication, increased opportunities for teamwork that yield tangible results in the form of accomplished objectives, and the consequent boost in morale are the direct outcomes of the hospitality industry’s relatively flat organizational structure.

Literature Review

The persistent difficulties inherent in hierarchical organizational structures include subordinates rarely revealing their true interests and opinions to their superiors. Employees try to cover up problems and mistakes that can damage their reputation with management to escape criticism. Nevertheless, with a flat organizational structure, employees are not weighed down by the expectations of their positions, leading to the collaboration and innovation that the hospitality industry desperately needs to grow and fix its flaws. Tolerant leadership that directs and manages employees to accomplish goals creates a level playing field where everyone contributes equally (Kansakar et al., 2019). The success of today’s world-famous corporations in the hospitality industry, such as Marriott International, is partly due to their adoption of the flat organizational structure. A major strength of flat organizations is that they are more likely to be managed by influence than by authority, which could lead to a far more committed and enthusiastic workforce. This inspiration is essential within a company that strives to improve, establish, and achieve new goals.

However, organizations with a flat structure are more likely to have subpar performance if rising challenges are not timely and amicably addressed. Naturally, many people in the organization will feel stressed as their workloads increase due to the broad scope of authority. More work would mean additional responsibility, and some employees may avoid accountability for various reasons, including their wellbeing and the needs of their families. The easy absorption of managers into flat organizations means that employees have more autonomy, but with that comes the risk that that independence may be abused (Ponting, 2020). Flat structures are best at accommodating the underlying scenario of open-minded control of task management, which is best served by hierarchical systems. The success of a hierarchical organization differs significantly from that of a flat one due to the collision of superiors and subordinates. There will be many people in lower positions who do not feel like they are being led anywhere, either because of the process itself or due to power battles between higher-ups. An example of this might be a divergence in approach, where one subordinate wants to implement a concept while another does not. Many disagreements can add unnecessary time and effort to the current task.

Discussion

Proven Efficiency of Flat Organizational Structures

The internal environment of a company, combined with its goals, vision, and desired culture, determines the type of organizational structure it will choose. Different kinds of business structures surfaced in the 1980s and ’90s due to the proliferation of new companies and the rapid development of information technology. Structure influences how a company’s many parts are put together, especially in the way they use their procedures and resources (Petrovska et al., 2021). A flat structure benefits from its few levels of management but a wide sphere of influence. The hospitality industry’s goal will be realized by adopting a flat organizational structure in an environment of constant change.

An organization with a flat structure has few administration layers, resulting in a more distributed system of authority. This disseminated power structure gives workers more freedom to make decisions and take the lead. Proof of this may be found by looking at the management styles of the hospitality sector, which is well-known for using a flat organizational structure (Atan et al., 2021). With the help of shared leadership and an open forum for employee feedback, the sector has achieved high levels of job satisfaction. Companies with flat organizational structures can better satisfy their workers’ need for autonomy, which boosts productivity since workers feel more personally invested in the company’s success. Businesses that care about their employees’ motivation and autonomy benefit greatly from adopting a flat organizational structure.

Applicability

When developing an organizational structure, it is crucial to consider how a company’s departments and ideas will interact. Businesses need to choose a structure that will help them perform well, as this will increase their chances of successfully achieving their goals. Decentralized authority and the ability to quickly adapt to new circumstances make flat organizational structures ideal for periods of both dramatic and gradual shifts (Petrovska et al., 2021). Organizational change will be met with less worker pushback, leading to greater unity between staff and leadership and less anxiety about the future. Establishing a company with a good attitude toward change means that workers will have a constructive organizational culture throughout transition and adaptation, as they will be equipped to handle the challenges posed by the unknown.

Employee loyalty is directly proportional to the effectiveness of an organization’s structure. Additionally, management with democratic views on leadership, wherein tasks are divided between management and subordinates, is necessary for success in a flat organization. Businesses that use authoritarian management styles often fail to provide for their employees’ requirements for autonomy and self-realization (Harsch & Festing, 2020). Ultimately, each company’s goals and aspirations determine how effective a flat structure is. The flat structure increases job satisfaction and productivity while decreasing anxiety. It is superior to the hierarchical structure since it cares about satisfying employees’ self-actualization and autonomy needs and developing their potential as leaders. Nonetheless, an organization with a flat structure may put too much faith in a dictatorial management team that is not prepared to ensure the company’s success. Even if the flat structure does not guarantee success for every organization that employs it, it remains the most viable option.

Conclusion

Organizational development and growth are enhanced by a flat structure, in which fewer people are required to make decisions and have an impact at higher levels. Companies in the 21st century that give their employees autonomy and opportunities for advancement are commended, although all organizational structures have flaws. Organizational transparency, which results from flat structures, is especially useful for businesses in the hospitality sector because it facilitates better communication. Flat organizational structures make it easy to respond to market changes, satisfy customers’ needs, and stay ahead of the competition by minimizing the potential for misunderstandings in the chain of command. Workers can respond quickly to shifting priorities without relaying information to a hierarchical structure. The relatively flat organizational structure in the hospitality sector is directly responsible for the industry’s success with open lines of communication, increased opportunities for teamwork that yield tangible results in the form of accomplished objectives, and the subsequent boost in morale.

In a flat organization, employees are more likely to be managed through influence than through power, which could result in a significantly more engaged and enthusiastic workforce. A business’s organizational structure should be based on its internal environment, objectives, vision, and desired culture. There are fewer administrative levels and more decentralized power in a flatly structured organization. When a business is founded on a positive outlook toward change, its employees are better prepared to face the challenges of transition and adaptation—the company benefits from a more positive culture. However, organizations with a flat structure could place more confidence in a dictatorial management team that may be unwilling to guarantee success. Although the flat organizational structure is not a surefire recipe for success for any given business, it is still the most practical choice.

References

Atan, A., Ozgit, H., & Silman, F. (2021). Happiness at work and motivation for a sustainable workforce: Evidence from female hotel employees. Sustainability, 13(14), 7778-7782. Web.

Harsch, K., & Festing, M. (2020). Dynamic talent management capabilities and organizational agility—A qualitative exploration. Human Resource Management, 59(1), 43-61. Web.

Kansakar, P., Munir, A., & Shabani, N. (2019). Technology in the hospitality industry: Prospects and challenges. IEEE Consumer Electronics Magazine, 8(3), 60-65. Web.

Morris, J., Hassard, J., Delbridge, R., & Endo, T. (2021). Understanding managerial work in the modern Japanese firm: The influence of new organizational forms and changing human resource management practices. Economic and Industrial Democracy, 42(4), 1378-1406. Web.

Mosca, L., Gianecchini, M., & Campagnolo, D. (2021). Organizational life cycle models: A design perspective. Journal of Organization Design, 10(1), 3-18. Web.

Petrovska, I., Safronova, O., Mital, O., Ometsynska, N., Moroz, V., Vidomenko, O., Lebedynets, I., Shostakovska, A., Maistrenko, Y., & Nosyriev, O. (2021). Improving the organizational and economic support for the development of enterprises in the hospitality industry in the use of information and communication technologies. Eastern-European Journal of Enterprise Technologies, 6(13), 29-38. Web.

Ponting, S. S. A. (2020). Organizational identity change: Impacts on hotel leadership and employee wellbeing. The Service Industries Journal, 40(2), 6-26. Web.

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StudyCorgi. 2024. "Flat Organizational Structure in Hospitality Industry." January 4, 2024. https://studycorgi.com/flat-organizational-structure-in-hospitality-industry/.

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