Shows The Grand Hotel Organization Hierarchy Business Essay

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GRAND HOTEL is one of ancient and famous hotel is situated in Nuwara Eliya, Sri Lanka, which attracts local and foreign tourists. This city called as little London because the climate is similar to that and this four star (****) hotel is in the middle of the town so it brings biggest attraction to its visitors.

The major shares are held by Tangerine Group of Hotels who has closely monitored and involve in take part of decision of Grand Hotel very often. Ten percentages of Grand hotel shares are held by public as well.

Sinc 1891


1.2 Purpose and Scope of this Document


Grand Hotel Management would expect about issues associated with it management, leadership and motivation within it organization culture and also suggestion of best practice to overcome that.


This Document covers Following Areas of Grand Hotel as Scope for this Document

Current Organization culture and strategies for changing

Evaluation of Leadership and Employee Motivation Theories which are implemented

Host-Guest relationship

Managing Expectation of employees

Services Gaps

Service policies practices and procedures and their application in different organization context

Cross Cultural business ethics and International sustainability

Role of International Managers

Recruitment process

Cross cultural training

Performance Management

Employee welfare and benefits

International Human Resource Development


As everybody knows that identifying the scope and giving recommendation involve some research activities. So following diagram shows how data have been collected to do this analysis.

Data collection methods

Primary Data Secondary Data


One to one discussions Statistical Report

Web Articles


The purpose of the report areas are going to be discussed in this section

3.1 Company Vision

To be the best Hotel in the hill country,

Maintaining the beauty and tranquility of Nuwara Eliya

Company Mission

To achieve our vision, to provide excellent service and

Quality by treating every customer as a VIP Guest in the Hotel.

Organization Hierarchy

There are three level of Hierarchies maintained in GRAND HOTEL which are described as follows

Hierarchy Level 01

Key and Senior Management: - This includes 12 members team.

There are 6 key management members includes Chairman, Managing Director,

2 Executive Directors and 2 Independent Non-Executive Director

And again there are 6 Senior Management members includes General Manager Resident Manager, Group Financial Controller, Group Engineer, Group Accountant, Chief Accountant,

Hierarchy Level 02

Junior Management: - This includes 19 members of team

Hierarchy Level 03

Non-Management: - other than above groups includes in this level.


Managing Director


General Manager

Senior Manager


Assistant Manager

Department Heads

Senior Executives


Junior Executives

Trainee Executive

Chart - 01 Shows the Grand Hotel Organization Hierarchy

Management profiles

There are twelve key and senior management member are involving when comes to key decision making. These key managers are well qualified and extremely know what and how to lead this company because almost most of them are well experienced in specialized area.

Mr. George Ondaatjie is a pioneer in the tourism sector who is a chairman of the company and Mr. G.G. Ondaatjie has more than 15 years' experience in this filed. Other directors of this also well qualified and have massive experience as well.

Junior Management members are very attractive and supportive to the top management of the company and also they have superb qualities, experiences and qualifications to work with their subordinates. There are nineteen members in this level.

Organization Culture and Strategies to cultural changes.

Organization Culture

According to survey that shows that it is a result oriented culture which is very friendly to any employee of Grand Hotel. Almost most of the employees are very satisfied with the current management because they are sure that they get enough financial and non-financial benefits from the organization.

Grand Hotel name is sounding that it is a four star hotel because it is well known by people any part of the Sri Lanka and some from the world. This organization value is created by Grand Hotel is a big advantage.

This generated Rs. 584 million revenue in last year compared to Rs. 456 in 2011 is also one kind of achievement in its culture. Most of the guests had given positive feedback about services and foods.

All guest's and employee birthday celebrated in the hotel when they are here.

Figure 01 - Dimensions of organization culture



Employee satisfaction and reward system that they introduce is motivated the employees with the task oriented concept.

Figure 02 - Goal alignment


Grand Hotel uses goal alignment strategy for its cultural changes. This means targets have been clearly identified and directed to employee and achievement of it is taken via good rewarding system.

3.6 Common Leadership and Motivation issues at Grand Hotel

Even though Grand Hotel's Annual Report shows the perfect employee profiles and pictures to its stake holders, as everybody knows that perfection cannot be 100% so the following issues have been identified via Survey but which are common to most of the company which represents for hospitality industry with regards to Leadership and Motivation in concerns.

Lack of feedback: -

Few of sales staff s has been identified who are not giving their feedback to its collages and their immediate managers which leads to employee conflict. If some talented employees of Grand Hotel make mistakes, Immediate managers wait to communicate that to them till next Performance Appraisal.

Not Making Time for Your Team:-

Some Junior Mangers and Team Leaders are not finding time to spend with their teams since last eight months because the work load that they have is increased by the management so they could not be able to spend time with the team. This creates a fear among team members because some operational issues had been sorted very slowly compare to previous years. There were some incidents that some small operation issues had gone to TOP Management.

Being Too "Hands-Off":-

With a tight schedule, sometime Managers and Team Members work upon the oral confirmation which is sometime misguided by both. There were situations such as Managers clearly instruction was given to his subordinates in the both the form, email and mobile instruction but One employee argues that what was done by him is correct which is according to his managers instruction, Finally managers showed him what wanted to ask but this creates one of valuable customer loss.

Being Too Friendly:-

As explained in the organization culture, it is very friendly working environment and all the team mates like to work under their immediate bosses because they look at only task. Some of the team member will be tempted to take advantage of this relationship.

Failing to Define Goals:-

Few employees do not understand what organization exactly looks for from them, Sometime managers also given up them as well. This type of employee's level of satisfaction with Grand Hotel is very low.

Misunderstanding Motivation:-

Managers clearly have to understand what is expected by your employee because some of Grand Hotel employees anger to have a promotion to next level but they were given financial benefits which demotivate them.

Hurrying Recruitment:-

Most of the customers visit Grand Hotel to have good meals. If resignation of Chief Chef, sometime which creates customer dissatisfaction so you cannot recruit immediately.

Here there was an incident that after immediate resignation of Chief Chef, Grand Hotel management promotes one of its employees to that position who was not up to the mark so this was popularized in the market and number of customer to Grand Hotel was reduced and spent more than million worth of Sri Lankan Rupees to correct.

Not "Walking the Walk":-

Few of Employees and Managers are always late to work and creates unwanted problem within the company which recorded in the HR files of each individuals. These types of issues related to individual attitudes. Late attendance creates lot of operational issues as well because Grand Hotel is in service oriented industry so if single thing goes wrong, which sometime leads shut of the company as well.

Not Delegating:-

Some operational powers and authorities are not delegated to immediate subordinates in Grand Hotel so all the ways, all small task needs to approved or authorized by Junior level management. This creates more dependencies which is very difficult to do the operations successfully.

Misunderstanding manager's Role:-

Each and every individual works for a common goal to achieve his/her final personal goal. Sometime when person promotes to management level, they are expected to do some new tasks but they still like to do the previous roll which will not help for the growth of the organization

Two of managers were moved to junior management but still they had done operational works which is identified by the Grand Hotel Management and immediately asked them to concentrate on their new rolls.

Evaluation of Theories of Leadership and Motivation are used by Grand Hotel:-

This section evaluates how Leadership and Motivation theories are adopted by Grand Hotel to resolve issues associated with related to this.

Most of the above discussed issues are deliberated in details with these theories to overcome current hidden issues at Grand Hotel.

Most of these theories are used practically by this hotel for the long period but even though that there are some problem is still facing by all the employees to do their day to day activities at the hotel

Leadership Theories

"Great Man" Theories":-

Great Man theories assume that the capacity for leadership is inherent - that great leaders are born not made.

Key Management of Grand Hotel has vast experience members with the mixed of personalized specialization in relation to them. Especially Chairman of this hotel is a pioneer for this industry who has more than 25 years of experience in this industry. The success of this hotel is for a long period is belongs to him because he drives upfront when Sri Lanka faces World's rescission effect.

Everybody who attaches to this hotel says that he is also one such leader. Whenever problem or issues cannot sort out by others, He really involve in it and solve is one kind of quality that he has.

Trait Theories:-

A unique employee's characteristic should identify separately and promote individual according to that is all about this theory

In order to implement this theory, Human Resource Management of Grand Hotel is recognized "Best Employee "awards with in the hotel and also it opens up to GROUP as well. This evolution can be taken place on annual basis.

`Behavioral Theories:-

"Leaders are made not born "this type of leaders who learns through their experience. Studies and Observation of general things make some individuals to these leaders.

Records indicates that there are 30% of the total employee who has more than 5 years' experience in order to come to Management position which was through some training and practical experience with the guidance of senior management.

The HR Manager is responsible for internal recruitment for senior position of the hotel

3.7.4 Contingency or Situational Theories:

This theory focuses on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation.

Most of the situation cannot be predicted by anybody so predicting all the scenarios and expecting to resolve the problem based on that is not practical.

3.7.5 Participative Theories

Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account.

Decision can be taken with the ideas of team members. It is really good have selected member to make decision because so many discussion with many ideas will be taken to making on decision is worth Hotel like Grand Hotel.

Currently Decision is made by the Management Team in Grand Hotel which is so powerful because there are 30 members team is doing this task.

Different Leadership Styles Across Different Cultures in Grand Hotel

The Grand Hotel management follows three leadership styles are namely as follows.

Autocratic: - Few of decision making only is taken by chairman of the company without consulting others. He makes this type of decision because of his expert knowledge about in this industry.

Democratic: - Most of the time decision would be made by the Board of Directors consulting Management Team. The major decision will be taken by this style.

Free-rein style: - Grand Hotel Key management delicate power and authority to Junior Management to do the operation successfully. Sometime further this delicate to the other level

3.7.7 Motivation Theories

Abraham Maslow's "Need Hierarchy Theory"

Figure 03: Abraham Maslow's "Need Hierarchy Theory"

All the employees are appraised annually at the same time on going appraisal and feedback from immediate manager observes by HR team of the Hotel periodically.

Each employees are shown the path to the TOP Management where they stood at the movement.

When Trainee Marketing Executive joins to Hotel, He or She really looks at physiological needs but later on after 2 years' time, needs move towards next because level of Maslow which is Safety. They are really looking for the safety and third needs also full fill within 3 to 4 years.

Employees are satisfied up to third of Maslow's Hierarchy with financial factors so the challenge is to identify of each employee where they stand is difficult but doing appraisal and talking to individual for causal chat would help to collect information regards them.

The Forth needs of Maslow are ESTEAM where employee is fully focus would be the both factors such financial and non-financial. Analysis shows that 15% of the total staffs are in line with this level.

The Final level of this Hierarchy was giving up everything and focuses on self-actualizations will not be promoted to anybody and also no one is in this level need in Grand Hotel.

Instrumentality Theory, Taylor (1911)

Sometime too much flexibility will create unwanted problem within the organization so both Rewards and Punishments system help to have a good culture in the Grand Hotel because some HR issues created within the organization because of there is no proper punishment system as well. When everyone talks about Reward system, every employee like but if there is no punishment system basically employee cannot be controlled by the management team.

Current Reward Systems are in Grand Hotel as follows which is also referred as Motivation Techniques

The Company has recognized three main systems of support in its rewards and recognition policy,

Lifestyle support, which supports the employees in the activities that are needed to upgrade their lifestyle,

Performance support which assists to upgrade their performance by way of personal development and assurance,

And Social support, which ensures better motivation and high moral in a quest for positive performance.

Lifestyle support

House Loan: - This is granted to permanent employees on request from the Hotel Provident Association Fund with the interest rate of 12% for house renovations etc.

Distress Loan: - This can be obtained by any employee with the request from Employee welfare Society and Amount is restricted to Rupees Ten Thousand and which has 7% interest.

Professional Subscription: - In order to encourage employee to be part of the professional qualification, Provide Subscription to them which is again limited to Rs.56, 721.35 per head.

Death Donations: - This donation is provided by the welfare society of the hotel with the limited figures for family with restriction.

Parent Rs. 25,000

Spouse Rs. 25,000

Father/Mother-in-Law Rs. 17,500

Child Rs. 25,000

Medical Benefits: - It is an insurance cover which is given to employee to reimburse their Medical expenses. This benefits can also be part of family as well based on the poisons is held by the employee.

Discounted Sales: - The employees are entitled to get cakes at a subsidized rate, laundering facility for personal clothing at a concessionary rate. Staff is allowed to entertain their relatives and friends on prior approval of the Management. Concession rates are allowed to them on food items to cater them.


Staff Uniforms: - Different types of clothes have been given to employees to identify their category.

Lodging: - Lodging is provided to all categories of staff those who reside outside Nuwara Eliya. Family accommodation and Bachelor Accommodation inclusive of meals are also provided to them in order to have a smooth functioning of the business this makes them feel at home although they are away from home.

Grievance Handling and Reporting: - Grievances are handled in a sensitive manner in order to retain the employee and to get more output and to increase the productivity.

Disciplinary Action Inquiries: - Disciplinary action inquiries are held by the Human Resource Manager under the guidance of the General Manager.

Future Training Plans: - This training has contacted by the managers who are really capable of doing this

Performance Appraisal: - Department head does this appraisal annually, normally it is in April.

In-house Training: - Internal training has conducted by internal staffs that really have a special knowledge in that particular area and experience as well.

External Training: - This need is identified by the HR division in the Grand Hotel and tries to conduct this to employee very soon.

Management Training and Cross Exposure Developments: - As a future plan, Staff will be trained in the other departments in order to fill vacancies if any without focusing to recruit externally.

Work Place Health and Safety: - As per the Standard, This is conducted by the Grand Hotel. Eg: Annual Medical Checkup, training on proper usage of equipment etc.

Social Support

Religious Observations: - Religious observances will be conducted annually related to all religion

Sports and Recreational Facilities: - Keeping Annual Sports Day and encourage all employee to keep them fit.

Staff Annual Trip: - Organizing trips for employees to help with team-building and in order to develop positive relationships with a group.

Staff Birthday Celebrations: - Celebrating the Birthdays of employees in the hotel will motivate.

Managing Cultural Diversity

Table 01: Total Work Force Based on Category of Employment


No of Employees


Key and Senior Management



Junior Management










Table 02: Age Analysis on Total Employees

Age Group

Key and Senior








Above 50






41 to 50






31 to 40






21 to 30






20 & Below













Table 03: Service Analysis

Year of Service

Key and Senior








Above 20






16 to 20






11 to 15






06 to 10






5 & Below













Table 04: Breakdown on Total Turnover - Age Group and Gender

Year of Service

No. of Employees




Above 50




41 to 50




31 to 40




21to 30




20 & Below









There are 75% of total staff residences in Nuwara Eliya. All four religious people attach to this hotel namely Buddhists, Hindus, Islamic and Christians. Table 01 shows that 90 % of Grand Hotel staffs are not into management who really has a desire to achieve to that level .Accordance with Table 02, 70 % of its employment is in line with mid age which shows the strength of Human Resource of the company. Grand Hotel's a century year's history; Management would like to keep its employees for a long term base because Table 03 shows the 27% of its staff work above 5 years. Table 04 shows the breakdown of contribution by gender to sales. Grand Hotel focuses to recruit more male's members into its employment rather than having more females.

Most of the customer of Grand Hotel from outside Sri Lanka so If employee does not know cultural difference then really organization will be in the trouble. Even though Employee of Grand Hotel can be transfer to one of company with in the group which is located in different place in Sri Lanka. As everybody knows that are not an easy task managing people from different culture.

Management of Grand Hotel focuses on this and try to overcome on this and y can be manage through communicating.

Benefits of Cultural Diversity

For producing desired results multi-cultural managed companies have cost effective competitive advantage.

It helps in boosting minority friendly reputation among progressive employees.

Diverse cultural corporations help to get the best customers which have a variety of people.

Diverse group of employees are seems to be more creative and efficient in problem solving as compared to similar group.

Ability to manage cultural diversity increases adaptability and flexibility of an organization to environmental changes

Motivation Techniques available in Grand Hotel

These Techniques have been discussed in 2.7.7 Instrumentality Theory, Taylor (1911)

Recruitment Process

Grand Hotel made a policy decision that they try to develop internal resources to next level rather than recurring from outside and also it has more strategy to retain it employee over the period.

Human Resource Division has criteria for external development which is closely monitored.

Role of International Managers -Wrong

International Manager coordinates activities and resources of a company or entity across internal boundaries by represent the company.

The global manager has to play multidimensional role by combining his technical skill, people skill and soft skill. The manager must have combination of hard as well as soft skills. He must be able to organize analyses and motivate people at international level.

Managing Cultural diversity guests

Grand Hotel firmly believes that its greatest strength lies in the quality of its manpower. Grand Hotel believes its "people philosophy" gives it a competitive edge. Currently Grand hotel ensure that guests are served by bright, enthusiastic and committed employees who anticipate guests' needs and deliver exceptional service with genuine warmth.

Grand Hotels provide an exceptional service that brings guests back time and again as they travel globally.

The table below shows satisfaction scores from guests and the growth in the number of Grand Rewards members.

Table 05: Guest satisfaction score








Repeat Guests




Response Rate*




Overall Guest Satisfaction Score





The 2008 and 2009 response rates were updated to reflect the appropriate calculation.

Response rates are calculated by dividing the total number of completed surveys by the total number of survey invitations sent to guests.

3.13 Managing & Building teams with cultural diverse workforce

Team building enables organizations to achieve and sustain extraordinary success. Individual workers might bring great skills, knowledge and abilities to a job. Increasing awareness of cultural diversity is a key function in an organization when conducting multicultural trainings and helps develop a culturally enriched environment in a company.

Grand Hotel has a good relationship with all the team members and the management as a good team building system which brings great skills, knowledge and abilities from the individual.

Example : Organizing trips for employees to get to know each other better outside of a work environment.

Organizing trips for employees to help with team-building and in order to develop positive relationships with a group.

Celebrating the Birthdays for their employees.


This section covers the recommendation conclusion as per the analysis carried out by the research.


The Company's human resources are the backbone of the business, holding the Company together. The growth of the Company is heavily dependent on the highly skilled individuals that Grand Hotel is able to attract and retain. The recruitment and retention of the employees is a constant challenge.

As part of the performance appraisal process carried out in the Company, a clear vision needs to be set out on career development and succession plans enabling the Company to retain its employees.

Regular training needs to be carried out in order to infuse motivation, commitment and empowerment among the staff.

Recruitment of high caliber staff, effective induction to the Group's corporate culture, having transparency in management actions, effective communication lines have to be developed in the Company's culture to foster good employee relationships.

In order to achieve best quality of work performance, the Management needs to recruit a Training Manager for staff training.

Only Department Heads will evaluate their employees by looking into their performances can be bias so this needs to be done by the team.

It is highly appreciated for the concept of "Grooming Future Leaders" which motivates the employee at a high level.

Employees will receive a comprehensive training on proper usage of equipment etc. on a routine basis.

Overall Recommendation: -

It is highly recommended to Grand Hotel management needs to have a Human Resource Plan for considering global.

It is advisable to have good HR strategies.

Better to have good external recruitment plans.

5.0 Discussion and Conclusion

The Survey shows how Grand Hotel is taken care of its employee. Most of the Theories were in placed at Grand Hotel and implemented a better HR system to evaluate employees. 90 % of Grand Hotel customers are satisfied with its service where employee of hotel is creating value among its customer. This Hotel has Good Rewarding systems which are really motivating its employee.

There are not some tight controls are not in placed in this hotel with its friendly culture which can be led to some other problem in the near future.

Overall GRAND HOTEL is always grand to its customer is no doubt but recommendation needs to be taken care for the achievement of long term plans and goal.