Organizational Structure of a Chain of Hotels

OrganizationalStructure of a Chain of Hotels

OrganizationalStructure of a Chain of Hotels

Organizationstructure is one of the most important tools that define how tasksare allocated, supervised, and coordinated in a way that canfacilitate the achievement of the organizational goals. Friend (2014)defined organizational structure as a system that determines thehierarchical arrangement of rights, lines of authority, duties, andcommunication in any given organization. In essence, organizationalstructure determines the flow of information and roles from theexecutive management to the junior members of staff. An effectiveorganizational chart binds members of the organization together andgives them a clear guidance on how to proceed. Organizationalstructure should be developed in the early stages of organizationalestablishment and be amended over time to meet the needs of theorganizations. This paper will provide an outline of anorganizational structure of a chain of hotels with a focus on thejustification of the selected structure, education and startingsalary for each level, future career ladder plan, concepts of middlemanagement and supervisors, and the most vital positions for thesuccess of the chain of hotels.

Justificationfor the type of organizational structure adopted

Thechain of hotels will be managed using a matrix type of organizationalstructure. A matrix organizational structure combines the bestfeatures of different structures, such as divisional and functionaltypes of organizational structures (Woods, 2014). This implies thatmembers of staff will be grouped according to functions as well asdifferent divisions that they will be saved. The matrix type oforganizational structure has four major benefits that indicate itscapacity to enhance efficiency in the management of the chain ofhotels. First, matrix structure facilitates a smooth flow ofinformation across boundaries, which means that communication fromthe head office to all divisions and functions is effective (Woods,2014). Secondly, a matrix type of organizational structure bringsemployees into contact with many people, which gives them anopportunity for sharing information, thus speeding up the process ofdecision making. Third, the matrix structure facilitates effectiveutilization of resources since they can be shared across divisionsand functions (Woods, 2014). Lastly, the matrix structure allowsstaffers to work autonomously and exercise some self-management inbetween their competing supervisor. This enhances the decision makingprocess and employee motivation. In essence, the matrix type oforganizational structure is the most appropriate for the managementof chain of hotels that are located in different regions.

Outlineof each position educational level and the starting salary

Individualsholding the top five positions will serve from the head office andall of them should have at least a degree in hotel management or adegree in other related fields. In addition, holders of the top fivepositions should have a working experience of at least seven years insimilar positions and in the same industry that is the industry ofhotel and hospitality. However, their starting salary will vary wherethe CEO will start with a compensation of $ 16,000 per annum, thethree assistant CEOs will start with an annual compensation of $13,000 each, while the overall manager in charge of foods andbeverages will start with a compensation of $ 12,550 per year.

Eachof the hotel branches will have individuals serving all the rest ofjob positions. The front office manager, food and beverage secretary,and assistant food and beverage manager, who will be serving atbranch level, should have at least a degree in hotel management orrelated disciplines and an experience of at least three years in thesame position. Their starting annual compensation will range from $9,000-9,500 depending on educational attainment and experience abovethe minimum requirements. The executive chef and executive sous chefshould have at least a diploma in food science and nutrition, hoteland catering, or other relevant fields. Their starting salary will be$ 8, 6000 per year. Rent, bar, and lodging managers should have adegree in any business courses and their starting salary will be $8,000 per annum. Waiters and waitresses should have attained at leasta certificate in catering or other relevant field and their startingsalary will be $ 6,000 per annum.

Careerladder for each job position

Thissection shows the upwards movement of employees from their startingposition to the highest positions to can occupy in the chain ofhotels.

Thechief executive occupies the top position, which implies that he orshe cannot go beyond there, but the compensation for that positionwill be reviewed regularly to motivate the holder of that office.

Thethree assistant CEOs have equal chances to occupy the office of theCEO

AssistantCEO CEO

Theoverall foods and beverage manager can occupy the office of theassistant CEO before moving to the office of the CEO.

OverallF &amp B Manager Assistant CEO CEO

Thefront office manager, executive chefs, assistant F &amp B managers,and F &amp B Secretary can equally occupy the office of the F &ampB manager and follow the same career path as the current food andbeverage manager towards the position of the CEO.

Frontoffice manager

Executivechefs F &amp B manager

AssistantF &amp B manager

F&amp B secretary

Restaurantmanagers and bar managers can move up the career path to the positionof assistant F &amp B manager and have the right to move to the toppositions if they acquire the required qualifications.


Barmanager Assistant F &amp B manager

Waitersand waitresses can move into the positions of the restaurant and barmanagers before following the same career path as the current bar andrestaurant managers.

Waitersand waitresses restaurant or bar manager proceed

Importantconcepts of middle management and supervision

Althoughthe key decisions are expected to be made at the head office, themiddle management and the branch supervisors will play the major rolein ensuring that these decisions are implemented. The middlemanagement will sit at the branch level and will bridge the gapbetween the technical members of staff and the executive board in thehealth office. Since the middle managers and supervisors will be at acloser contact with the technical staff and the clients, aparticipatory style of management will ensure that their opinionscount in the process of formulating the key decisions.

Positionsthat must be included for hotels to be successful

Thereare five positions that should be filled to ensure that the hotelnetwork is operates successfully. These positions include executivechef, restaurant manager, bar manager, lodging manager, and waitersor waitresses. These are the key technical and middle managementpositions that will ensure that the organizational strategy issuccessfully implemented.


Organizationalstructure give provides a framework for an effective and smooth flowof information and duties in an organization. The matrix type oforganizational structure is the most appropriate framework for themanagement of a chain of hotels. This is because the structure willallow the flow of information and roles to all branches, both upwardsand downwards. Compensation for all employees will vary depending onthe level of education, experience, and the job position held by anindividual. However, all employees, apart from the CEO, have anopportunity to move to higher job ranks depending their on-the-jobperformance, educational attainment, and work experience.


Friend,L. (2014). Whatis the meaning of organizational structure?Santa Monica: Demand Media.

Woods,C. (2014). Matrix organizational structure: Advantages, disadvantages&amp examples. EducationPortal.Retrieved July 9, 2014, from



rganizational chart

Ass. CEO in charge of lodging

Ass. CEO in charge of F &amp B

Food and beverage manager

Front office manager

Executive chef

F &amp B secretary

Assistant F &amp B manager

Restaurant manager

Bar manager

Lodging manager

Waiters and waitresses

Executive sous chef


CEO:Chief executive


F&amp B: Food and beverage