Organizational Structure Of Hotel Mania Essay Samples

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Organizational structure of HotelMania:

HotelMania is a business of booking hotel services. Our business is engaged in providing facility to the tourist and local people of the Kuwait. We will help people for booking hotels on their behalf they just have to contact with us and we will provide accommodation in best quality service hotels. We will also give some offers like free night stay and free dinner to our regular clients as discounts. The working style of the businesses depends upon actually on the type of organizational structure that the company has adopted. Organizational structure means the all the activities that are done for purpose of coordination, task allocation and supervision are done in such a way that lead the organization towards achievements the aims of organizations. Organizational structure is actually a tool to view the environment and hierarchy of an organization.
Our company is adopting functional organizational structure. This structure is of hierarchy type and all the tasks are divided among group of people who are given task in the field of their specialization. All the tasks are managed and directed by the manager of organization. All the employees report to the manager of their respected department who then give report to the CEO of company. In hotel mania there is a CEO of our company and there are different departments that work under the supervision of CEO. These departments include marketing department, finance department and human resource department. All departments have their individual managers and these managers are bound to report to functional manager. There will be many employees hired under each manager. There will be good flow of communication in all organizational structure. Employee working in their specialized departments will work in their specialized fields and report to their department managers about their tasks. There are three departments that are categorized according to the need of business working.

Marketing department

Human resource department
Finance department
Marketing department
Under the supervision of marketing manager there will be employees who will involve in the activities that are related to the marketing. All the sale promotions, discount offers, marketing tools all will be prepared by marketing department employees. This department will find out those hotels that will very famous in Kuwait as well as for which there is more demand by the customers.

Finance department

Under the head of finance manager, all the financial accounts are maintained under supervision of finance department. All the records of wages of employees will be maintained by this department. The customer will submit our fee through this department. All the employees will bind to report their work to the finance manager.
Human resource department
Under this department supervision, selection of staff will be done. Another important task that this department will do is actually contacting with different hotels and negotiating with them on prices. This department has its own head and all employees working under this manager will bind to report that manager.
Along their separate task that is assigned to these departments all departments will work in accordance to give success to our business. In hotelMania our most important asset is our clients. We will try to give best comfort level and quality to our clients. We will make good relationship with our suppliers that they give good quality services and specific discounts offerings for our clients. All the major decisions about the resource and budget allocation and decision making will be taken by the functional manager. In this structure of organization there is not head of a specific project but all the necessary decisions is made by functional manager. If for a specific project there will need of appointing a project manager then also role of project manager will be limited all key decisions will be made with the permission of functional manager. The best benefit of adopting this functional structure is that it increases the overall productivity of the business due to specialized and skilled labor force.

Organizational structure of hotel Mania:

The organizational hierarchy of hotelMania is designed below.
This hierarchy shows that there is a flow of emplacement in the organization. This chart shows that ultimately all the employees have to report to functional managers. All the decision about company will be taken by functional managers and communicate towards downward flow of hierarchy.

Reason to adopt functional organizational structure for hotelMania:

There are some advantages that are linked with this organizational structure. That is why hotelMania adopted this structure.
The big advantage of this structure is that all the employees will be grouped under the category of their field for which they are specialized.

All the employees working in their respected department are skilled in their field.

All the employees and management hierarchy is very simple and clear and each employee know clearly about their role and the specific person to whom they have to report about their work progress.

Every employee has fixed and special responsibility there is no overlapping of responsibilities in this organizational structure.

Employees will feel comfortable in the environment in which they are working because the specialization of their task and they feel themselves as important part of organization and will be more loyal for organization.

Intradepartmental communication will be very efficient and is in flow.

As we are starting our business newly skilled and specialized labor force will help our business in achieving success.
Another very strong reason for adopting this functional organizational structure is that we are staring our business newly in Kuwait so it will be very good to keep our employee hierarchy simple and easily understandable.

Final comments about organizational structure

As our business will grow with the passage of time we will move towards the complex form of organizational structure that is the mixed organizational structure according to the need of business. In staring this organizational structure will be comparatively costly for us because we will hire specialized and skilled labor force from the market and give preferences to the freshly graduate people. But this is very necessary for the development of business that we hire specialized workers. In our structure managers of all three departments will be liable for the progress of their development. They will report to the functional manager finally. With the passage of time as the business will expand we also change our hierarchy to more complex with the need of business

Finance sourcing

For our project we need large amount for financing and for development of our business. We have checked all the options through which we can get finance for our hotelMania. We take into account two main financing bodies for our business first is the established manpower and government restructuring program (MGRP) and Kuwaiti industrial bank (KIB). The reason behind choosing this organization is that their policies are best meet by these two programs.

Established Manpower and Government Restructuring Program (MGRP)

Established Manpower and Government Restructuring Program is a new program established by the government of Kuwait in July 2001. Under these program specific labors laws are developed and they give the benefits to the unemployed people who are permanent residential of Kuwait. Before giving the incentive plans by this program it is properly checked that whether the people to whom this program giving benefit is permanent residential of Kuwait or not. This program does not give any financial benefit for people living outside of Kuwait or who are accommodated in Kuwait from any foreign country.
Under this development plan it is make necessary that employees of private companies must have hire employees from Kuwait. If any company does not meet this criteria that business can’t continue its operations further. Our hotelMania will also take financial sources from this Established Manpower and Government Restructuring Program as our some employees will be trained under this department.

Kuwaiti industrial bank (KIB)

For financing purpose of our business we will also contact with Kuwaiti industrial bank. To initiate our business we will need a lump sum amount of money. Therefore we will make financing arrangements with Kuwaitis industrial bank. Kuwaiti international bank was found in 1973 by the help of Kuwaiti government. The working of this bank is purely on Islamic instruments.
This bank gives finance for starting up new small business. The main purpose of this bank was to play its part in industrial development of Kuwait. Now Kuwait has become very famous for foreign investors and visitors therefore it give rise to new business development opportunity. This bank will help the new small business for their establishment and working. There are certain conditions imposed by Kuwaiti international bank that must have to meet for clients. Some of them are listed below.

The owners whether single or partners must be residential of Kuwait.

Practical experiences for all partners are necessary.
Two years will be given for profit extension and three years will be given for the new business development earning before starting of repayment of loan.

Total amount that will be taken will not exceed from 500,000 dinars.

We will borrow from this bank and our repayment schedule will be stared after three years when our business is started to generate profit. As we are able enough to meet all the criteria mentioned by this bank for borrowing therefore we will contact with this bank. Till now this bank has financed more than 70 projects which are earring good profit now. This bank actually gives financing facilities for small new business that contributes in the economy of Kuwait. We will have to provide guarantee to this bank form of our tangible asset for taking loan.