Corporate Culture and Corporate Structure Are Power, But Not In The Way You Think
By Mostafa Sayyadi Management Consultant, The Change Leader Consulting Inc | October 27, 2019
Corporate structure has been defined as a pattern by which hotels can divide their activities and tasks as well as control them to achieve higher degrees of coordination. Corporate structure, therefore, refers to the bureaucratic division of labor accompanied by control and coordination between different tasks in order to develop communication within hotels.
Corporate structure can be reshaped by hotel executives when they develop knowledge sharing and inspire employees to create new ideas for a better environment among business-units and departments. An informal structure could facilitate new idea generation to build a more innovative climate within hotels. Hotel executives can implement organizational changes that develop better collaboration among subordinates and managers.
Establishing the Right Structure for Hotels
Centralized versus decentralized decision making is also a topic that hotel executives must deal with. More emphasis on formalized and mechanistic structures can negatively impact the hotel executive's ability to exert such changes. On the contrary, a more decentralized and flexible structure may improve departmental and managerial interactions. The mechanical or centralization at the commanding level of hotel leadership impairs the opportunity to develop relationships among managers, business units, and departments.
Hotel executives can reshape corporate structure to be more effective when the command center of hotels can disseminate information in a decentralized and organic way as opposed to the mechanical and centralized command center. Decentralized structures shift the power of decision-making to the lower levels and subsequently inspire organizational members to create new ideas and even implement them while centralized structures may negatively impact interdepartmental communications and inhibit knowledge exchange.
Recent research affirms that the there is a negative impact of centralization on various knowledge management processes such as knowledge acquiring, creating, and sharing among both managers and departmental units. On the contrary, a more decentralized and flexible structure may enable hotel executives in improving departmental and managerial interactions that can lead to identify best opportunities that can potentially lead to improve knowledge utilization process for hotels. Therefore, hotel executives can positively contribute to organizational knowledge management through building more decentralized structures within hotels.