Introduction
Creating overall viable plan for the development of the company requires thorough consideration of the peculiarities of business, strategy-friendly organizational structure and the ways to enhance employees’ engagement level, as well as proper management tools. For the purposes of this assignment I will research into above-mentioned issues with respect to elaborating on the overall business strategy for the enterprise under study. To make the discussion more practical I will view the organization as a problem-solving mechanism (Coperrider&Srivastva 149), and identify issues and the way to solve them for each of the questions of the case study
Organization structure
The business under study can currently be classified as family business. Chris and Anna are managing the campsite, and hire locals to help them with maintenance and ad hoc duties. Using Mintzberg terminology, this organizational structure can be viewed as a “simple structure” (322).
When granting Tom a chance to develop overall strategy for the business, the family agreed that the business will consist of two basic structural elements, namely a hotel in Copenhagen and a campsite in Northern Zealand. So, the company has two important centers of operation, which need to be interrelated, so that full-time and part-time employment can be appropriately utilized.
As business plans to offer different products and services, it may be required to hire marketing managers to ensure effective promotion of all the products on offer. Analyzing the vision, offered by Thomas, I consider it possible to refer to the business as a differentiated one (Handy 263). The Campsite currently offers a limited number of facilities, as well as few simple cottage for rent. It is planned to invest into the improvement of facilities of the Campsite (pool, bathing area, mini-market). The hotel in Copenhagen is going to be purchased. Apart from offering accommodation, the hotel will also have a restaurant. Basically, three branches of operation and management can be defined, one in Northern Zealand, and two ones in Copenhagen.
In case of an organization, which operates in different regions and produces differentproducts and/or services it is important to staff all the units and create links between the units and coordinating and integrating mechanisms. The business is going to have three operating cores (campsite, hotel and restaurant), where employees will directly produce products and services (Mintzberg 324). Campsite will be staffed with two categories of employees. Fulltime employees will be engaged both in producing products/services and running innovations in the enterprise (e.g., participating in the development of minimarket). Part-time staff will be hired in high season in order to provide timely and quality services. Local workmen can be hired on time-to-time basis in order to deal with innovation-related tasks. Middle line manager will represent a line between these categories of employees and top general managers of organization. The campsite needs at least three middle managers. One should manage current operation and improvement of facilities (facility manager). One is to work with guests, manage their requests and coordinate employees’ work. Furthermore, the campsite also needs HR manager due to permanent rotation of part-time employees, called forth by seasonal nature of business. The hotel needs only full-time employees due to the fact that its work is far less influenced by seasonal changes. Middle management of the hotel should consist of general manager, night manager, guest services manager, director of human resources, chief of security, as well as hotel controller. Similar to the hotel, the restaurant is to be staffed only by fulltime employees. Middle management group of the restaurant will include general manager, food and beverages director, guests’ services manager, as well as events and catering manager. Technological structure of all three branches of business should involve accountants, IT managers and work schedulers (Mintzberg 323), nonetheless, it can be simplified due to high level of standardization. So, the campsite will require 5 fulltime employees, 1 technostructure person, 2 regular support employees, as well as three middle managers. Additional employees will be hired during high season. The hotel needs 8 fulltime employees, 6 managers and 5 other professionals to perform technical and support tasks. The restaurant can have 6 fulltime employees, 4 managers and 2 support staff people. The hotel and restaurant can share technostructure. So, at least forty people will be hired by the family.
The third organizational level will provide integration and coordination of three branches of business. This level needs to be comprised of several managers, namely general manager, strategic marketing manager, financial and investment manager. In my opinion, this kind of coordination mechanism should be based on “mutual adjustment” model.
The three-level structure will help each of the branches operate independently and be managed with respect to the peculiarities of external environment of particular region (Northern Zealand, Copenhagen) and industry environment, as well as allow to create common strategy for interrelated development of all three branches.
The structure I described can be classified as “professional bureaucracy” (Mintzberg 322). Its design is decentralized. Transition to this structure is beneficial for the business as it can help the business develop beyond the scope of small business and operate in different regions of the state and stay bureaucratic, despite being decentralized. SWOT analysis of application of this structure testifies to the fact that it is characterized by important strengths and can be associated with prospective opportunities.
Competences and capabilities. Competences development system
Modern knowledge-based economy requires considerable scope of attention to be paid to ensuring having right capabilities and competences in place, as well as developing proper competency development system in terms of human resources development strategy. Defining competences requires the application of KSA task analysis (Laakso-Manninen 9). KSA framework singles out such categories of competences as knowledge, skills, abilities/behavior and other competences. Developing a new business requires thorough competences mapping process. The first stage of the competency mapping process is concerned with elaborating on the vision and strategies of the company, based on company’s perceptions about its products/services and future customers. In our case the family would like to provide customers with stays in the campsite, as well as accommodation and restaurant services in Copenhagen. So, the company level competence areas are concerned with hospitality and restaurant management areas. The main task of the business is to be able to provide high-quality services in all three areas of operation. Each of the tasks requires the development of specific competences. Assessment of existing competences (provided by the family) allows identifying basic gaps at different levels of organization. At core units the company requires hiring skilled workers (e.g., cooking professionals), as well as at the level of middle management and strategic apex of each of the levels. The competence classification scheme scheme that classifies personal competences into customer expertise, operations, expertise, production process expertise and personal skills, can be used for elaborating on task-based classifications that can be used for ensuring effectiveness of hiring. (Laakso-Manninen 54). Common strategic apex, being comprised of O’Neill family members, requires improvement of some of their competences in order to be able to coordinate the work of divisions. Thom and Louise may require getting extra knowledge about financial management and investments (due to the fact that land can be viewed as the most important resource for the business). Furthermore, Thom may need to get more aware about the way restaurant management system works. Those, comprising strategic apex, can also need more developed coordination and leadership skills. Proper identification of gaps is a prerequisite for creating development plans.
Ensuring having right competences at place requires introducing relevant HR policies (to hire employees, who already possess capabilities relevant to the positions they are applying for) and creating HR development strategy, aligned with the overall strategy of business development. Business strategy is considered to be influenced by such major factors as customer orientation (so personnel competencies should be flexible in order to be adaptable to customers’ needs), cost-efficiency (competencies should be developed the way that enables the management adjust the number of employees with respect to profitability expectations), networking (proper coordination of employees’ competences should be taken into account) and globalization (special attention is to be paid to making best use of diversity among personnel (Laakso-Manninen&Viitala 41). To my mind, customer orientation and cost-efficiency are extremely important for running the campsite due to changing customers’ needs and seasonal nature of work. All the factors, mentioned above, play an important role in proper competences management and development in case of Danish branch of the business.
In terms of all branches of the business special attention is to be dedicated to knowledge management as knowledge is an essential part of competences. The process of knowledge development among personnel should include such stages as creation of shared vision of the objectives of knowledge development, information provision, individual knowledge creation, group learning, knowledge dissemination to other organizational levels and, finally, practical application of acquired knowledge (Lustiri, Miura&Takahashi 191). As hospitality management is practical area of activities constructivist theories of human resources development are applicable in this regard. On-the job experiential methods that can be used to develop employees’ knowledge and skills include coaching, tutoring, job rotation etc. Job rotation will be especially beneficial for being used at the campsite to ensure cost-efficiency of labour (Laakso-Manninen&Viitala 66). Nonaka’s learning by doing model can be also viewed as appropriate for developing employees’ knowledge (Nonaka&Krogh 635).
Ensuring continuous knowledge development is important for managing cost-efficiency factor and interchangeability of staff. Furthermore, providing staff with relevant knowledge about organization, environment, overall strategy of business development helps management to develop staff’s commitment and teamwork skills.
Right attitude and high engagement
Staff’s commitment to organization’s vision, mission and values is one of key prerequisites for proper operation and development of business. Staff’s sharing the same vision of the business they are engaged in and viewing their work as the contribution to the implementation of the common goal is a prerequisite for business survival and development. Right attitude and high engagement can be developed exactly as knowledge may be developed. Development of employees’ right attitude and high engagement requires launching and managing trainings, based on some development concepts. One of such concepts is related to developing habits of effective people (Covey 2004). I think that most relevant habits to be developed are beginning with the end in mind and sharpening the saw. Beginning with the end in mind is associated with such activities as self-discovering and clarifying one’s most important values and life goals. This habit is based on the human ability to envision what one cannot currently see with one’s eyes. This habit helps people to perform more deliberately, and be more concentrated on what they actually do. The habit is also good for organizational aims. Having a clear vision of organizational vision and development, one can use the habit to develop the vision of the way how he/she can contribute to business operation and development. This habit can be developed with the help of special trainings, aimed at the development of imagination and teamwork skills. The better one sees common task and his/her role in its implementation, the better one is able to work in order to get it implemented.
The second habit I would like to refer to is sharpening the saw. Sharpening the saw is related to ensuring continuous improvement in both personal and interpersonal spheres. The key word to understand this habit is “balance”. If one has is able to properly manage his/her lifestyle, ensuring continuous renewal of his/her physical and spiritual energy, one can feel better and function more effectively. The company can contribute to implementation of this habit by two major methods. Firstly, it can launch trainings for both management and staff in order to help them get more aware about balanced lifestyle and get rid of most common misbalance-related issues. Secondly, the company should consider involving management and employees into common out-of-work activities, such as sports, creative classes etc., so that they associate the business not only with employment and related obligations, but some events, and feel more like a team.
Concentrated employees, who feel friendly atmosphere of their workplace and are aware about their role in the development of business and possessing teamwork skills are likely to demonstrate right attitude to their work and high engagement into the functioning of business.
Key points of company’s development
Appreciative inquiry is a special form of organization study that is aimed at discovering, understanding and promoting innovations in social-organizational processes and arrangements (Cooperrider&Srivastva 153). The peculiarity of appreciative inquiry process lies in going beyond problem-solving, and trying to avoid viewing a company as problem-solving mechanism (Cooperrider, Whinney& Stavros 16). Dimensions of appreciative inquiry include beginning the research into social innovation potential of an organization with an appreciation; ensuring applicability of research; fostering provocative nature of the research into social potential of an organization, as well as launching collaborative research, so that different views and perspectives can be utilized to create multidimensional research (Cooperrider&Srivastva 155-156). If it is assumed that the business uses appreciative inquiry form of research, the key objective of company’s development should lie in identifying and fostering its social innovation potential. In this regard social innovation may refer to new strategies, concepts and ideas, which can meet different kinds of social needs. Two main groups the company deals with are employees and clients. When concentrating its activities on the needs of clients, the company may single out target groups, which are in particular need of innovative services. The campsite, hotel and restaurant can have special services on offer for children and the elderly, as well as consider launching special events for kids and the elderly. Most wide-spread option with regard to kids’ services is offering playgrounds and game rooms; providing care for children, whose parents would like to spend time together; having children’s menu in restaurant etc. As for the elderly, it is possible to have more comfortable rooms; organizing evening events and so on. All extra options for both groups should be emphasized in services promotion strategy, so that competitive advantage may be created.
Another dimension the company can consider for creating social innovation is ensuring wellbeing of its employees through introducing employees’ loyalty programs and special benefits. Usage of these programs can be of great importance for promoting part-time employment programs in Northern Zealand. Furthermore, the company can launch working holidays for students from abroad, so that they can both work and reside in the campsite, and have the opportunity to explore Northern Zealand. Commitment to social innovation can be viewed as a good vision to both promote the engagement of employees and popularize the campsite, hotel and restaurant among visitors.
Coaching as a management tool for the new organization
The term “coaching” and coaching style of management have their roots in sports world. Apart from the world of sports, coaching is used in personal development and business. Coaching style of management is currently becoming more popular than the traditional “control and command” management style (Starr 16). In terms of the new business under study coaching can be used in two basic dimensions. Firstly, coaching style can become a common style of management for both middle line management of all the branches and strategic apex. Secondly, it is beneficial for the company to invest into personal development of senior management to develop their leadership potential.
Appropriateness of coaching method for the new business is determined by importance of employees’ quality performance for success of the business, peculiar to the businesses, concentrating on services’ provision (Laakso-Manninen&Viitala 66). Collaborative style of coaching can be used to complement knowledge transfer systems by employees’ personal development, so that the changes are created commonly by a couch and a couchee. Lifestyle coaching can become an extra benefit for employees to develop their commitment and loyalty with respect to the business. Nonetheless, to my mind, it is not worth making lifestyle coaching obligatory, even though employees’ balanced lifestyle can be viewed as a prerequisite for them delivering quality services to clients. In general terms coaching management style is a good alternative to traditional “command and control” style of management and leadership due to the fact that it helps to discover and utilize potential of each employee and creates prerequisites for an effective partnership between employees and management. Personal coaching for senior management can be a valuable tool, helping them to get more practical awareness about the essence of coaching approach and then apply it in their management activities. First round of coaching is to include introduction of personal coaching for senior managers, as well as special trainings, aimed at teaching senior managers how coaching may be used in management. These trainings need to be conducted by professional trainers, and included into business’ yearly budget. The second round of collaborative coaching will involve the work of senior managers and staff.
Conclusion
Creation of a business plan for the development of the new business requires thorough consideration of the wide range of issues. Having considered the facts of the case study, I think that the new business should have 3-level organizational structure, which will allow each of the branches develop independently and provide overall integration and coordination mechanism. Professional bureaucracy structure is the best choice in this regard as it provides necessary level of horizontal decentralization, as well as market groupings option.
All the branches of business should be staffed accordingly to required competences. In case of the campsite both fulltime and part-time (seasonal) employees can be involved. Creation of a flexible system of knowledge transfer and couching is essential for ensuring proper performance of the staff, working at the campsite. Employees’ right attitude and high engagement level plays an important role for the functioning of the business and its further development. The business’ HR development program should be considered with promoting employees’ engagement and commitment to common goals, as well as the motivation to continuously improve one’s performance. Development of social innovation is to be viewed as a key goal of the business in case management applies appreciative inquiry methodology. In case of the business under study development of social innovation is possible through providing high-class services for specific groups of clients, creating special programs for employees and promoting employees’ development, as well as launching “working holidays” programs for students from abroad at the campsite, so that they have the chance both to work for the campsite branch of the business and explore Northern Zealand. Commitment to social innovation can be viewed as an extra tool of fostering employees’ loyalty.
Works cited
Cooperrider, D.L., Srivastva, S. Appreciative inquiry in organization life. Research in organizational change and development, 1, 1987: 129-169. Web
Cooperrider, D, Whitney, D., Stavros, J.M.. Appreciative inquiry handbook: for leaders of change. Brunswick: Crown Custom Publishing, 2008. Print
Handy, Ch. Understanding organizations. London: Penguin Books, 1999.Print
Laakso-Manninen, R., Viitala, R. Competence management and human resource development. A theoretical framework for understanding the practices of modern Finnish organizations. Haaga: Haaga-Heila University of Applied Sciences, 2007. Print
Lustri, D., Miura, I., Takahashi, S. Knowledge management model: practical application for competency development. The learning organization, 14(2), 2007:186-202. Print
Mintzberg, H. Structure in 5’s: a synthesis of the research on organizational design. Management Science, 26 (3), 1980: 322-341.Web
Nonaka, I., Krough, G. Tacit knowledge and knowledge conversion: controversy and advancement in organizational knowledge creation theory. Organization science, 20 (3), 2009: 635-652. Web
Starr, J. The coaching manual: the definitive guide to the process principles and skills of personal coaching. London: Person, 2012. Print
