Chapter 2: An Insight into the Organizational Structure of the Hotel Industry

A well-structured organization is a tool for any business to manage daily operations resourcefully and also to become successful, and hotel business is not exceptional. In general, hotel organizations choose a hierarchical structure to manage staff into different levels of authority, which is from general manager (GM) to sales and marketing, and finance. The structure is designed in such a way to ensure effective operations, guest service, and ultimately help achieving the goals set by hotel’s organization. The structure integrates a number of internal departments like front office, food and beverage (F&B), sales and marketing, finance, and operations, each with its own management and employees. The structure varies on the basis of the hotel’s size, nature, and service level. A hierarchical structure plays an important role in ensuring proper communication and active employee–organization relationships as it creates strong lines of authority, accountability, and communication channels that could possibly result in increased proficiency, responsibility, and employee satisfaction.