This assignment is going to evaluate from both a descriptive and critical point of view the business's culture of Kempinski Hotel San Lawrenz (KHSL). This hospitality company under review is found in Gozo, a small island that forms area of the Maltese Archipelago. Among the main pillars of the Maltese overall economy is the Hospitality Industry stated by the Leading Minister of Malta (Gonzi 2009).
A description and detailed analysis of the individual organisational culture of KHSL is completed, together with the observations and interviews completed with the management team. The purpose of this project is to describe the organisational culture of the particular organisation, by using ideas, concepts and models which are mentioned throughout studies. Futhermore, a critical examination will be undertaken to what level the organisational culture of KHSL is supportive or otherwise in regards to their organisational goals. After presenting an informative overview of the overall company, the organisational culture is assessed in conditions of the related theoretical concepts highlighted throughout the module. The organisation goals, serve for a deeper gratitude in regards to the organisational culture. Finally, the key highlights of this assignment are offered in the conclusion, together with the necessary referrals.
Background Scenario
The Tourism Industry in Gozo started around 40 years back (GTA, 2007). Since that time, the Maltese and Gozitan business people have had the capability to move the industry forward. THE FEDERAL GOVERNMENT also played out an important role in this sector by offering assistance schemes. In the last 10 years, the Minister for Gozo has "brought about advancements in Gozo's touristic product as well as in the manner this sector is being maintained" (Debono, 2009). This has been attained by: improvements in accessibility between Malta and Gozo with the building of three new ferries; gain access to enhancements including cruise liner facilities; upsurge in diving schools which includes attracted a distinct segment market, between others. The above mentioned has been achieved by the Gozo Tourism Relationship which was create to act as you of the primary associates of the tourism industry. This connection has helped talk about this needs and challenges because of this sector in Gozo.
The upmarket sector in Gozo is highly challenging for several reasons. Firstly, Gozo has convenience issues. It could only be reached by sea (ferry or sea plane). This has a negative effect on the amount of travelers which visit Gozo (to reference). Second of all, the island is very small in comparison to Malta which limits the number of possible touristic places. Finally, Gozo has a low threshold based on the number of 5 star establishments that can operate profitably. It has been shown some years back by the closure of the Mgarr five star hotel. Today, there are only two 5 star hotels operating in Gozo specifically KHSL and Ta' Cenc Hotel that are direct aggressive challengers.
The Kempinski Hotel San Lawrez - A BUSINESS Profile
Kempinski Hotels is one of Europe's upmarket hospitality organizations, established in Germany way back in 1897 (Platen 2009). The Kempinski Group of Hotels target only the upmarket portion of the global hospitality industry. Top quality service is an integral feature of the corporate and business culture (Kempinski 2009). Their state is guaranteed by the speedy unpredicted enlargement of the Kempinski string of hotels throughout Europe, Asia, Africa and South America (ibid). The Kempinski Group, aim to secure a competitive advantage as regards up-market hospitality by seeking to adjust their corporate and business culture in line with emerging market developments (ibid). The KHSL sorts area of the Kempinski Group. It is a recognised Mediterranean 5 star resort, strategically located on the very good western flank of Gozo within the quaint community of San Lawrenz (Kempinski Hotel San Lawrenz 2009). KHSL includes a location of 70, 000 sqm, which comes with 122 suites and it is surrounded by a garden which offers views of the Mediterranean (Attard 2009). The hotel offers its respective services to targeted groupings and guests specifically business conferencing and motivation groups.
The upmarket sector, has registered the highest expansion rate in Malta, in response to the progressive transfer, from mass market to upmarket tourism (UN 1996). KHSL founded in 1999, it responded effectively to the increase of upmarket tourism, and the campaign of Gozo as another tourism vacation spot from Malta (Attard 2009). The Maltese upmarket hospitality is of the competitive type, since each establishment seeks to promote specific advantages to the respective guests capitalising on the unique advertising preposition.
KHSL currently uses 350 employees on regular basis, 30 employees on the part-time basis, and 15% of whom represent non-Maltese EU Residents (Attard 2009). In fact, KHSL embraces variety and decentralisation wholehearthly, as a central hallmark of its organisational identification (Wittwer 2009). From a different view point, this can be seen as a means of capitalising on cheap foreign labour, a attribute that has recently been an attribute of the hospitality industry in the Maltese islands (guide Zarb union) Baldachino).
The framework of the company at the Kempinski is smooth with few levels between management and employees. The overall strategy and business way including certain decisions are taken by the top management team.
Kempinski Hotel San Lawrenz - A Classification and Description OF THIS Organisational Culture
At this stage it is vital to describe the business's organisational culture, adopting relevant concepts highlighted throughout the module, together with the observations and interviews completed with the management team. The theoretical background outlined in this section, is expounded with relevance to the organisational culture under review, in order to ensure a more integrated way.
Schein Layers Of Organisational Culture
Schein's Levels of Organisational Culture is pivotal in examining the culture at KHSL since in my opinion is the most appropriate theory to interpret the culture of the organisation therefore allows management to become conscious of the surrounding culture. Matching to Schein (cited in Hollway 1991:139), "It really is at the group level that culture varieties" and proposes ". . . that culture derives from the depths of unconsciousness" (UoL 2008:71). Schein's culture includes three layers, that can be assessed on different levels.
Edgar Schein's theory of Organisational Culture as is referred to as:
"A routine of distributed basic assumptions that was discovered by an organization as it fixed its problems of external adaption and inner integration, that has worked sufficiently to be considered valid and, therefore, to be taught to new people as the way in which to understand, think, and feel with regards to those problems"
(Schein 2004:17)
Aritfacts - First level
On the superficial level, one discovers artifacts such as the observable appearance of the company which reflects the real corporate culture. On coming into the hotel the first is greeted inside the lobby by the front office staff in an agreeable and productive manner. The hotel has an elegantly rustic atmosphere including hand trees and shrubs, limestone and colourful blossoms. A hallmark feature is the aesthetic architectural design.
One's first impression of the establishment is the openness and warm welcoming received by the users of staff. In fact, walking through the hotel one notices that we now have few gates.
The prominent office relishes a spatially open up and accessible design. On further observation, it is observed that no written quest statement is shown in the lobby area where it will always be found.
Further inside, one locates conference and assembly rooms. These rooms are not only employed by the general public but provide as a meeting place for management run meetings which on a weekly basis. Decisions are created by the most notable management down to subordinates. The communication stations and level of authority relationships are incredibly formal. Mind of departments are constantly being pressured to maintain with targeted budgets, by implementing goals and strategies. This culturalisation is in line with the definition given by Linstead and Grafton-Small (1992:333) who proposed that " Culture is devised by management and transmitted, sold, sold or enforced on the rest of the organisation. . . which can be found to organisational participants as part of the seductive procedure for achieving regular membership and gaining dedication. "
Walking further inside, one sees the restaurant where tender piano music is performed in the background, which gives a soothing feeling. The coffee shop manager wearing a stylish suit, moving in one table to another talking to guests in a specialist manner, while employees are eagerly and energetically portion the guests. It really is noted that all degree of employees have a formal dress code, and they work on the traditional shift basis.
Passing through the corridors one detects the canteen area where staff from different departments take breaks at the same time. This is a clear indicator that management stimulates socialisation and communication between employees. Around the upper floor section of the building, the administrative offices are located which are spacious and modern. Such characteristics further conform Kempinski's openness in its organisational culture.
Espoused beliefs and value - 2nd level
The second level consists of the organisation's espoused beliefs and values, which can be embedded within corporate and business strategies, goals and philosophies (Schein 2004). This level concentrates mostly on the manner in which specific organisational users justify their action and behaviour (ibid). In material, espoused value signifies the preferred beliefs and norms by an company.
One of Kempinski's espoused principles includes its philosophy is "Clear commitment in luxury hospitality with a solid quality and service standard, which has been predicated on over 100 Years of Hospitality" (Kempinski Hotel S. A. 2006). Inside the culture of KHSL, management value teamwork to accomplish an improved quality results for the friends.
The management at KHSL stresses that work must get first top priority. They think that this is an important means of showing dedication to the company. This is on the other hand with typical Maltese worth in which the family is usually given priority over work (reference). Inability to abide to the perception and similar prices runs the risk of fabricating friction between management and employees. Infact undue anxiety among employees is felt throughout all level of the organisation.
Other creators such as Schwartz and Davis (cited in Linstead) explained "Culture is a structure of values and expectations shared by the organisation's associates. These values and expectations produce norms that powerfully shape the behaviour of individuals and communities in the organisation". This statement facilitates Schein's theory within the second cultural level incorporated in KHSL culture.
Diverse writers such as Johnson, Scholes and Whittington (2007), has developed the culture web, which contain six elements that presents the behavioural, symbols and assumptions. The KSHL cultural is further identified in depth. (Refer to diagram 1)
DIAGRAM 1
CULTURAL WEB OF KEMPINSKI HOTEL SAN LAWRENZ
Source: 'Exploring Strategic Change'
Assumptions - Schein's 3rd level
Basic Assumptions symbolizes the third level as regards Schein's theory. They are "unconscious, overlooked values, perceptions, thoughts and feelings" (Schein 2004:26) Information is put together at this level by carefully watching behaviour, so as to construct the primary assumptions. The latter, are sometimes overlooked and not recognized.
According to Schein, the crux of organisational culture is at this level.
Although basic assumptions tend to be unobserved, however they represent the core of the organisation's culture. Consequently, organisational values which have been overlooked emerge as significant assumptions that guide the organisation's behaviour.
Within the KHSL culture, basic assumptions include, that the employees are sensible, trustworthy, professional and capable of governing themselves, and that the partnership between them is based on cooperation. However these assumptions are sometimes taken for granted, and thus both the company and the members are afflicted. These assumptions make multiple benefits - most important enabling the organisation to improve its performance, behave tactfully to changes, optimally allocate its resources and assign obligations accordingly.
Diverse researchers came along with distinct perspectives regarding company culture. In this esteem, Offer, Kennedy, Peter and Waterman (cited in UoL 2008:58), advocate that "Culture is just how we do things around here or the guidelines of the game so you can get along in the organisation".
Moreover, Hillis (2004:28) perceives that "A constructive culture is defined simplistically as you oriented towards achievement, self-actualization, creativity, participation, valuing people, and the one which places a high main concern on healthy human relationships between people".
This conception of organisational culture resembles partially KHSL employee's conception on the way the way the management of KHSL value people. A few of them, but the numbers can't be established, as no clinical surveys were never carried out, believe that the company value people and invest in people by setting up a recruiting office with full personnel go with to ensure that human relationships are designed between people having different social and educational backdrop. Apart from this, employees have to integrate themselves with a considerable number of other employees working in several work habits, speaking different dialects and working with different working conditions.
Researches such as Hibbard, 1998 and White (1998) have focused on values in defining organisational culture in the past but this research has been questioned in later paperwork,
"Whereas values are essential elements of organisation culture, research has exhibited that organisations confirmed more distinctions in practices than in principles" Hofstede, 2001. Further describing these results, "values are acquired in ones early life and mainly in the family".
A viewpoint portrayed by Handy, 1999 in his early on works:
"Anyone who has spent time in a different country will appreciate how prices, beliefs and valued philosophies affect the way society is organised, They'll appreciate too how these values and values are shaped by history and traditions, by the climate, the types of work people do, how big is the country and it s prosperity".
Maybe that this theoretical concept is of relevance to the environment at KHSL because although the corporate strategy and organisational culture are affected by the German culture, the Mediterranean culture, people and history and size of the united states are forming part of the KHSL which is situated in Malta. The high quality customer service standards, persistence in the service provision and the supreme physical hotel facilities and environment were adopted and form area of the organisational culture in Gozo. That is particularly true when one considers the high overall flexibility, loyalty and dedication to high production levels at the hotel that happen to be moulded in the organisational culture at KHSL. Stating the GM of KHSL, the employees are devoted with their Brand as the Maltese were under the British isles forces, versatile to learn and adjust to different economical conditions of the company, and are successful in the sense that it is a known fact that keeping high productivity levels is the success of the company forming part of the company culture. The culture in people of Gozo, forming area of the Maltese archipelago is one of ongoing survival going back to the early occasions when the island was conquered many times and the inhabitants were considered as slaves or prisoners. With this in mind, there should only be simple differences between the published prices of company/functions of same national record. Hofstede, 1980 do measures 40 countries and summarily clustered them into four main measurements.
In the point of view of Smircich (cited in UoL 2008:58) "Culture is not at all something an organisation has, but something an company is". Therefore that organisations are constantly shaping their interior individual culture. The ethnical infrastructure of the organisation defines the personality of the business enterprise concern. Moreover culture effects directly business performance.
There is a common denominator linking these meanings. The theorists concur that values, values and norms are the substance of corporate culture. They become guidelines in regards to the behavior of organisation associates.
Anakwe and Greenhaus (1999), high light that organisational culture is sent to new employees, via the process of socialisation. The management at the Kempinski Swiss head office transmit their culture onto top management at KHSL which is diffused to the employees. This consists of keeping high quality benchmarks which can be typical of the Swiss culture, which is important for the execution of strategy and determination on the list of organisational users. The management at KHSL sees to lure socialisation along both formal and informal lines, on the list of employees within their, respective department. An average example is the public activities that happen to be organised such as gatherings, occasions and outdoor activities.
Kempinski Hotel Sal Lawrenz - Organisational Goals
Mullins (2005) evidently defined what sort of objective statement's value is largely dependant after the amount to which the whole organisation allows its worth. Arguably, he refers to the process of disseminating it into important terms in a way that all employees can understand and acknowledge it. Johnson et al (2006) identifies how it could be thought of as, "a declaration of the overriding direction and purpose of an company" Waal (2007) agrees:
"Powerful organisations intentionally create clarity and the understanding of the business's route and strategy, which results in a commonly organised strategic mind-set among organisational people. "
It is clear then that the objective declaration is where corporate and business direction is described and disseminated via an evocative assertion. You can find evidently agreement amongst key freelance writers that the mission statement must be clear and unambiguous yet Perrin and Tavakoli (2005) concede that if the overriding goal of an well crafted mission statement is actually to create a sense of mission amongst the members of an company then some nave professionals have a lot to learn. They claim that a quest statement must be believed, comprehended and acted upon by nearly all an organisation's members to accomplish a state of togetherness (or as the author of this paper would prefer to spell it out it: a common goal). Mullins (2005) embellishes the idea as he explains the need for organisations to apply what they preach if the objective statement is usually to be of any value. The KHSL objective statement is highlighted below:
To be the only true country side holiday resort, and renowned as the most unique hotel in Malta offering guests the "perfect retreat" to relax in the tranquil atmosphere of Gozo, showcasing Kempinski as a luxury brand and ensure all the time our visitor satisfaction, while enhancing the financial go back to the owner and Kempinski.
(Attard 2009 Interview)
Commenting on KHSL objective assertion, it is reasonable to convey that the in most cases people of the company believe the Hotel offers the excellent facilities and ambient detailed in the mission declaration and the organisational culture helps the affirmation. However, this is only the actual assumption and belief of the writer of this newspaper as the mission statement is probably not recognized to the employees. It's very rarely, if, mentioned in conferences, cultural activities and the author never came across any document stating this statement. As mentioned before throughout this newspaper, the mission assertion is nowhere found in the hotel visible places. The users of KHSL commit themselves to increase the company in financial conditions with continuous commitment and determination as described before. One can argue that as a general rule, employees feel the common purpose of working with KHSL. Concerning whether the quest assertion is of any value to the employees, it offers still to be seen because but the management is striving to entrench these values within the organisational culture, the employees remain not aware of such 'said beliefs'.
Mr. Attard (interview) further claimed that the KHSL goal and aims are to accomplish and run a professional, profitable and ethical company. That is done through the building of permanent marketing romantic relationships via its esteemed stakeholders and friends somewhat than transactional marketing. He also highlighted that the aim of the company, within each hotel procedure is to deliver the highest quality in offering its respective guests in all activities, by implementing the best useful and ethical standards thus enable the company towards the attainment of its long tactical goals that are highlighted hereunder:
To foster and sustain a competitive gain, trust and professionalism that is collaborative between customers of the business.
To further increase market show by 20%.
Reduce cost based mostly by 10% while keeping the same five star commercial standard.
Increase the average stay of guests from 3 to 5 5 times.
To increase SPA sales by 15% by providing guests relaxation treatments in their rooms.
Kempinski Hotel San Lawrenz - Research of the Supportive and Unsupportive Elements of Organisational Culture
It transpires because of the observations, that there are certain substances within the organization culture of KHSL, which can be supportive and unsupportive as respect the organisational goals.
Analysing the KHSL's culture web based on Johnson, Scholes and Whittington model, one can notice that lots of aspects support the organizational goals whilst others may be diverting from these goals sometimes even could be conflicting. The symbols aspect demonstrates the organizational culture with regards to the excellent facilities and high quality service as observed in the eyes of the customer. This image is adding towards the company's goals to be profitable and keeping its market position by getting up-market friends and keeping the corporate's image high in the market section. The control systems and the organizational management composition also seem to aid the goals because they are customer centered and the management led by the Funding section is managing costs adding to company's goals to preserve the company's success.
Some elements stated in the Stories of the ethnical Web sustain the business's aims including co-operation and keeping good relationships with stakeholders, in cases like this the employees. Another important factor supporting the company's objectives is the fact KHSL cares for its employees as detailed in the Stories of the ethnic web. Some components of the organizational constructions also support the business's stated goals including the positive role of the HR in the business providing a clear sign that the business invests in its people. The Rituals and Routines elements are a evidence of elements adding to the company's explained goals to collaborate and co-operate with key stakeholders.
However, some of the rituals and routines aspects lack professionalism mentioned in the hotel's goals. This include the insufficient clear and documented work techniques, companies policies, mission and vision claims are unknown to the labor force. Some of the stories stated in KHSL's ethnical web supply the impression that the management does not consult in your choice making which is imposing its culture on the employees. This in ways is conflicting to the company's goal to reach guidelines within the sector. Some stories about the management including the 'heroes' approach seem not aligned to the explained objective of the company on professionalism.
Conclusion - Features and Recommendations
Although culture can be an abstract reality, however, its behavioural and attitudinal implications are extremely concrete. Moreover, in view of the highly strong changes occurring within the complicated business surroundings, organisational culture is continually undergoing a process of creation, development and manipulation. It is high time that professionals within business concern undergo a target culture analysis of their respective organisation, to be able to identify areas where it is either supportive or unsupportive of the organisational goals.
A amount of recommendations are shown at this time, based on a critical cultural evaluation of KHSL. The actual aim is to transform unsupportive into supportive social pushes which ensure the reliable and effective realisation of organisational goals. There is a tendency that managers acting as leaders see to impose their own ideals and assumptions on the employees. This a counterproductive strategy, since the employees have to be awarded a participatory role in the development of culture of their own respective company.
Moreover, the employees have to be educated in order to understand the culture of their own particular organisation, with a view to improve communication. It is recommended that there must be more informal conferences between the employees and the management, in order to identify proper areas within the company's value string where procedures can be upgraded, in the reciprocal interest of all stakeholders.
Within our fast moving world, many successful business organisations are capitalising on profitable flexi time systems. The organisation under review has remained highly mounted on the traditional change basis, which is generating a considerable degree of level of resistance for the must be advised, that the change from shift basis to flexi time systems be continuous, in order to empower employees to integrate their professional commitments with other hobbies, in a clean manner.
As already highlighted previous, Kempinski cherishes workforce diversity. Although this helps in the injection of fresh ideas, and ensures that the organisation capitalises on the optimal skill, yet local employees perceive this approach as a risk and intrusion to the occupations. This is specially the case in periods of inflation and global recession, being presently experienced. This has a tendency to produce on particular occasion's pointless friction among the list of labour force.
It is note suitable to compare the company culture of KHSL with those of different hospitality organisations concentrating on the upmarket sector. This way, a number of interesting common particular and interesting ethnic characteristics can be revealed. This benchmarking technique will identify tactical areas that KHSL must concentrate on, in order to turn into a more energetic and agile business player within its industry.
Since culture is a active reality, it requires to be evaluated in conditions of the organisational goals not only of a particular point in time, but from a skin profound level, by critically examining the cultural fads of the precise organisation. Since social changes can't be implemented right away a proactive procedure must be implemented in critically checking the macro environment. As potential professionals, although a decentralised system is preferred, yet one is usually to be fully alert to its risks and limitations. It really is healthy that KHSL invests in training programs of its employees, however quality training is more than desired. The latter must grant thought to the individual interest of the organisation, the management and the employees. It is strongly recommended that learning, within the information based culture be carried out on a prolonged basis. This acts as a motivation to be able to ensure the upwards mobility on the part of the employees, and therefore they can contribute an incremental value by their professional skills.
