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Hotel Organization

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An organization can be defined as a system of coordinate activities of group people working cooperatively towards a common goal under authority and leadership. A hotel can be regarded as the organization because of the following reasons and there are;

  • A hotel is a goal-oriented organization, which may include providing accommodation and providing food and beverages services for its guest or customer on payment basis.
  • Hotel plans and coordinates the activates of its staff in order to achieve its goal.
  • A hotel divides personnel with the functional department, each with their own areas of authority and responsibility.
  • A hotel organizes and executes plans and procedure of future growth of the property.

Hotel organization (source
Hotel organization (source

No hotel company operating today can be unaware of the swift or fast pace of global change and its impact on the every surface of the hospitality industries. New business practices are evolving virtually as fast as our technologies, while resistance to change has become one of the primary causes of business failure. Government instabilities, terrorism and inadequate professional training and development have led Nepal to dwindle the hotel business, still, we hope to recover the business with added strategy and improvements.

The spirit of constant change raises fundamental questions as to creation of shareholders wealth in a capital-constrained, highly competitive environment like Nepal. How will hotel organization build shareholder wealth and what key drivers will result in success? What future products and services will be essential in a technology – driven, global environment marked by rising customer expectations? Moreover, what alternatives approaches and skill must organizations develop to ensure market success?

The future success of hotel organization will be driven in large part by the ability to foresee and capitalize on change. However, there is an urgent need to identify what will be required in the competitive environment of the future with an intense focus on serving customer needs. The hospitality industry as in the case with business generally is subject to deep currents of change set in motion as economic and social systems shaped in the industrial era evolved to knowledge-based era driven by the technology advances.

What makes the hotel business flourish?

Within this broad context hotel developer, owners and management companies will need to develop new strategies, skills, and processes that look forward to competitive demands for the future. These ultimately must address issues related to vision and planning, as well as organizational skill sets and processes to attract and retain customers. Following are some of the key factors to be considered to have a competitive hotel organization.

  • Hold a global change direction

As the information age produces a greater worldwide integration of business activities, a global knowledge base will become invaluable. Success in local and regional hotel markets will be shaped decisively by a global business environment that defines the capital movement, customer's expectations and application of new technologies.

  • Focus on the customer

We all know one rule of the hotel. "The customer is always right." It is the major rule while serving or dealing with the guest or customer. So a hotel must always focus on their customer.

  • Create a defensible corporate strategy

For many of the industrial leaders, vision is driven by the strategic planning process, a function that has become critical for success.

  • Empower management

Beyond the ability to envision the future, core management capabilities will make the difference, they are essential. A clear vision without management skills to support cannot be a recipe for success.

  • Be in the information fast lane

The traditional role of Information Security (IT) as a back office support for accounting and book-keeping has clearly moved front and center stage. IT today influence all aspects of business from co-operating strategies to organizational structure and from the very business processes, it is designed to support to performance measurement.

Hotel Organization Chart

All the organization requires a formal structure to carry out their mission and objectives. A common method of representing the structure about different people working in an organization In various departments within the hotel is referred as hotel organizational chart. Organization structures refer to the hierarchical arrangement of various position in an enterprise.
An organizational chart is a clear picture of the division of responsibilities, lines of authorities and channel of communication within the departments.

It is a schematic representation of positions within an organization; showing where each position fits in overall organization. The organizational chart of hotel depends upon the size of establishment and the resources within the hotel. The resources might be the number of employee that are required to operate the hotel efficiently, the technology and the work methods. Hotel organizational chart deals with the major operational departments and the other supporting departments. The four major departments are as follows:

  1. Front office
  2. Housekeeping
  3. Food and beverage service
  4. Food and beverage production

The management structure of hotel consists of all the position and responsibilities under the authority of corporate management. Organization chart of the hotel in this chapter shows the flow of responsibilities under different heads to facilitate the job to be done on time. General Manager is the administrative in charge of the whole hotel and accountable to cooperate the whole management. General Manager is responsible for planning, implementing, monitoring and controlling the activities related to set goals of corporate levels. All the hotel policies and strategies are also the responsibilities of his head. To carry out the set targets, General Manager cannot manage everything on his own. In large scale hotel there comes another position, Executive Assistant Manager (EAM) or in most cases Resident Manager(RM). These both managers (EAM and RM) acts as a general manager in his absence. They are responsible for the day to day operation of the hotel and is held responsible for major management grievances handling, the welfare of staff and safety of property and guest as a whole.

Total organization of a hotel is divided into three different departments to carry out day to day functions and to ensure an efficient line of communication between all levels of management. Each department has its head department (HOD), the executive supervisor and staffs under him or her. In a simple sense, the manager or head department (HODs) are responsible for formulating the plans for their department. The executive is to execute the plans laid and the supervisor is to supervise the executed plans with the help of sub-coordinates. Each step of the operations has a systematic reporting system to facilitate two-way communications among all departments.

However, in small hotels, the hotel manager is responsible for almost all aspect of hotels operations. Such as (planning of budgets, recruitment of staff and ordering of materials, etc). The management of hotel depends on the size of the hotel and the volume of the business. Obviously, in large hotels, the General Manager has more administrative functions and is accountable for major management decisions. At the same time, there would be a greater specialization of responsibilities among Head of Departments (HODs). The flow of the responsibilities of each department of the hotel is now represented by the help of organization chart.

According to James Stoner, "Organizational chart is the determination of organizational structure that is most appropriate for strategy, people technology and the task of an organization". An organization chart should have clarity and economy. It should contribute to the understanding of tasks and should facilitate timely decision making. The importance of hotel organizational charts falls in the following heads.

  • Task specialization
    Organizational chart provides the grouping of tasks in a logical arrangement to achieve them on time.

  • Span of control
    It provides the information about the number of subordinates to be supervised.

  • Decentralization of work
    A delegation of separate jobs and responsibilities to be performed.

  • Efficient reporting
    An organizational chart shows the correct reporting system, that is who is to report and whom to report.

  • Harmonies relationship
    An organizational chart shows the sound relationship among the departments by identifying the level of coordination and cooperation.

  • Workflow
    An organizational chart gives a glance, the actual process of work.

  • Boundaries and discipline
    It shows the organizational culture and boundaries and tells the hierarchy of respect.

  • Communication
    Organization structure provides the line of communication between the departments.

  • Flow of responsibilities
    The single department cannot handle entire work, the flow of responsibilities help to make the job decentralized and easy going.

  • Timely- decision-making
    An organizational chart shows the specific responsibilities and suggests on timely decision making.

  • Competition
    Organization chart is also a factor of competition among the departments to boost up the performance level.

Large Hotel Organizational Chart


Small Hotel Organizational Chart



Oli, Gopal Singh and B. B. Chhetri.Hotel management. Kathmandu: Buddha publications Pvt. Ltd., 2015. Book.

Shrestha, Dinesh; K.C, Saroj; karki, karuna; Sharma, Robin; elt.Hotel Management. kathmandu: Arcadia Publishing House Pvt. Ltd., 2068,Shrawan.

  1. A hotel is a goal-oriented organization, which may include providing accommodation and providing food and beverages services for its guest or customer on payment basis.
  2. Hotel plans and coordinates the activates of its staff in order to achieve its goal. 
  3. A hotel divides personnel with the functional department, each with their own areas of authority and responsibility.
  4. A hotel organizes and executes plans and procedure of future growth of the property.




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