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Examine the Organizational Management of the Hilton Hotel

Prudence K. Magezi
Latest posts by Prudence K. Magezi(see all)

    Management refers to the procedures undertaken to get things done through and with people. Management has got a number of functions namely; organizing, planning, staffing, and controlling the processes through which the organization lays down its goals and objectives and the activities it undertakes to achieve the set organizational goals and objectives. In other words, management is the process in which businesses organize and control workflow, operations, and employees so as to achieve their set organizational goals and objectives.
    The paper analyzed the organizational Management of Hilton Hotel. It answered questions like; what is the Organizational structure of Hilton Hotel? What is Hilton's organizational culture? Among others. 
    Hilton Hotel is regarded to as one of the major hospitality brands in the world, with over 7,300 properties and more than 1.1 million rooms in 123 countries and territories. The success of the giant Hilton Hotel is fundamentally attributed to its effective organizational management that is guided by its vision, mission, and principles. Hilton Hotel in most scenarios is considered the first choice for travelers worldwide as it largely focuses on its internal organization structure. The Hotel is a success because it primarily focuses on its customer service. 
    Hilton Hotel's organizational structure is founded on a balanced matrix model, which is a combination of functional and geographic divisions. The balanced matrix model of organization structure is one that integrates both functional and geographic dimensions of the business. Hilton Hotel adopts this model to achieve a high level of coordination and collaboration across its various units and regions. In this model, each unit has a dual reporting relationship with a functional manager and a geographic manager, who share authority and responsibility for the unit's performance. This allows Hilton Hotel to control its functional expertise and geographic presence while ensuring accountability and alignment with the corporate strategy.

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    Examine the Organizational Management of Hilton Hotel Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Understand the main characteristics of Hilton's culture, such as hospitality, integrity, leadership, teamwork, and ownership.
    • Understand the various ways through which Hilton's culture influences its strategy, performance, and stakeholder relationships.
    • Understand the various strengths and weaknesses of Hilton's culture and how it can be developed or sustained

     

    1.0 INTRODUCTION


    With a portfolio of 17 world-class brands, Hilton Hotel is a leading hospitality company with over 7,300 properties and more than 1.1 million rooms in 123 countries and territories. Headquartered in McLean, Virginia, the company is a provider of hospitality services and it operates through segments namely; Ownership, Management, and Franchise. The company is a success because of its effective and efficient organizational management which is depicted in its vision, mission, and principles. 

    For the year ended 31 March 2023, the hotel saw its revenue rise to $2.2 billion up from $1.7 billion. This paper will clearly analyze the organizational Management of Hilton Hotel.

    The company’s vision is to fill the earth with the light and warmth of hospitality by offering and delivering exceptional experiences. Hilton’s vision single-handedly motivates and encourages its employees to offer high-quality and exceptional services to its customers, partners, and society at large. Its mission statement is “to be the most hospitable company in the world by delivering heartfelt experiences for Guests, meaningful opportunities for Team Members, high value for Owners, and a positive impact in our communities.” Its key values are; hospitality, integrity, leadership, teamwork, and ownership.

    The company’s organizational structure is the balanced matrix model which is a combination of both functional and geographic divisions. Its functional divisions are in charge of providing and offering specialized support and expertise to its operations, such as finance, human resources, marketing, sales, technology, and innovation. The geographic divisions on the other hand are responsible for overseeing the performance and growth of the properties in their regions, such as the Americas, Europe, Middle East and Africa, Asia Pacific, and Greater China.

    The company’s organizational management has enabled it to outstanding results in most areas such as customer satisfaction, employee engagement, revenue growth, and social responsibility. The company was recognized as one of the best companies to work for in the U.S. by Fortune magazine. It was also recognized as one of the most admired companies by Forbes magazine.
     

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