Hotel Management Structure and Organization: Building a Team (2022)

A complete overview of the hotel management structure. Learn how to build an efficient management team and take a dive into each department of a hotel and its organizational chart.

Table of content:

  • How to build a Hotel Management Team?
  • General Manager
  • Department Managers
  • Revenue Management Department
    • Revenue Manager
  • Conclusion

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In the hospitality industry, the structure and hierarchy are significantly different from most industries. In the process of setting up a new hotel, once you're done with paperwork and legal formalities, building a hotel team is the most important step.

It's important to understand that even the basic structure of a hotel's management could be different and unique. For instance, a property might be owned by an individual, managed by an outsourced team of professionals, and carry the branding of a different hospitality company. In most cases, these relationships are built behind the scenes.

The world of hospitality and hotel management is complex, and it's important to understand the various departments that make a property succeed.

In this article, we share an overview of the most critical hotel teams in the setup, and take you through their specific roles and responsibilities.

(Video) Types of Organizational Structure in management

How to build a Hotel Management Team?

It's never easy to manage a team of employees. But managing a hotel team can be an even more daunting task. At over 50%, the turnover for hospitality staff is considered to be among the highest in the world. With such attrition rate, it can be quite hard to maintain a consistent level of high-quality service. In the long run, your hotel's profitability and reputation could also suffer.

Therefore, it's crucial to hire the right members in the beginning of the setting up process. Choosing the right people in the early stages goes a long way in increasing staff retention, hotel reputation, and revenue.

Right from the beginning, everyone should have a clear idea about their roles and responsibilities. Also, while building a hotel team, it's important to keep the staff enthusiastic and motivated.

If not giving promotions due to budgetary constraints, it's good to send your staff members to regular training workshops, conferences, and other settings to keep them involved.

Now, let's take a look at what a hotel team usually comprises, with more clarity about the responsibilities of department heads.

Hotel Management Structure and Organization: Building a Team (1)

Owners, Board Members & Executive Members

The methodology, approach, and work of the hotel management teams is established quarterly, semi-annually, or annually by the Board. There's often written rules of procedure, which divide and govern the responsibilities among the Chairman of the Board, the CEO, and Executive Members.

In a small hotel, things aren't really this complex. A small team heading the operations can take care of assigning responsibilities to department heads.

Whether it's the Owners or the Board, the primary tasks include formulating strategies, defining budgets, and adopting business plans. In addition to this, people at the top of the hierarchy need to approve financial statements, interim reports, guidelines and policies, operational instructions, etc.

Members in this team also need to follow the financial performance of the property, and ensure better internal control plus financial reporting. If there are investors or shareholders involved, the Board or the Owners need to decide on major investments down the line for future growth and sustainability.

General Manager

As it goes with almost every business, the General Manager is responsible for all kinds of operations at the property. From guest interactions to revenue management, the person should be a brand ambassador of the hotel. His or her role is to provide strategic planning and leadership to all departments while supporting culture and maximizing guest experience.

(Video) Organization structure of Hotels

The General Manager needs to work closely with owners, board members, and other stakeholders. He or she is responsible for managing the hotel management team. The most important job is to deliver an exceptional guest experience and impact growth.

Department Managers

Simply put, department managers need to manage employees, coordination among staff members, and planning for the daily affairs of their respective departments. The manager should be involved in all aspects of the hotel management operations. He or she needs to be responsible for strategizing, preparing reports, and dealing with complaints or suggestions.

The most important role of the department manager should be to guide the employees to function as a team. Thus, the ideal person should be a leader, a team player, and needs to set examples to foster cooperation among staff members. The ultimate goal is to enhance growth and customer satisfaction to strengthen the property's reputation.

Hotel Management Structure and Organization: Building a Team (2)

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Revenue Management Department

The end goal of every business is to earn a profit. Without revenue, a business can't really survive.Revenue management is a strategy or technique that aims to help hoteliers achieve higher profits by identifying the right customer groups and serving them with the right prices.

While building a hotel team, you need someone to be solely focused on revenue management, thereby ensuring higher return on investment, increased sales, and faster growth.

Revenue Manager

Among all the hotel management teams, the goal of the Revenue Manager is to implement various strategy-based processes. The aim is to maximize and optimize revenue.

Earlier, the role of a Revenue Manager was limited to being in charge of bookings. Until a few years ago, no one had a clear idea about what revenue management entailed. In those days, bookings were under the scope of the front office.

It wasn't long before hoteliers started seeing value in establishing revenue management as a full-fledged function. First, it was placed under the banner of 'sales and marketing', but soon the General Managers decided it had to be separate from everything else.

(Video) Organisational Structures Explained

In most hotels, the Revenue Manager reports to the General Manager. The job description requires the person to manage every aspect of revenue, budget, forecasting, pricing, room supplements, etc. The Revenue Manager needs to be an integral part of all the decisions, since most of them directly or indirectly impact the hotel's revenue.

Hotel Management Structure and Organization: Building a Team (3)

Sales & Marketing Department

The primary objective of the Sales and Marketing Manager is to improve the hotel's brand and reputation. In addition to this, the department needs to increase occupancy and make the property profitable. It should also be able to position the hotel for leisure facilities, business venues, accommodation options, etc.

The Sales and Marketing Manager should be aware of the trends and factors that influence the industry. He or she should be willing to gain in-depth understanding of customer needs. The manager is responsible for planning and executing promotional or marketing efforts.

In today's digital age, the Sales and Marketing Manager can have a great impact on the profitability of the business. With a solid marketing strategy, employees can seek achievable targets to meet specific objectives.

Conclusion

Building a hotel team is the most important step in setting up a new property.

There's going to be a weeding out process, extensive search of talent, alignment of personalities and roles, and everything else. It's going to take a lot of effort in the beginning, but the sweat and pain will give rewards in the long run.

Still, a lot of small and medium-sized properties find it hard to set up a team in the early stages of operations. If you're looking for some guidance on this subject, don't hesitate. Frommarketing todistribution, andrevenue management tohotel software, we are with our clients throughout this journey.

Get in touch with our founder, and he'll personally help you set up the right team for your venture.

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HotelMinder is a leading consulting agency for hoteliers tomaximize business performance with hands-on advisory & project management services;a free and unbiased hospitality knowledge platform with Tech, Marketing, Revenue and Operational content;and a marketplace for professionals from all over the world to find hospitality specific software and services that best match their vision and requirements.

(Video) 2. Trusting Teams | THE 5 PRACTICES

FAQs

What is the organizational structure of hotels? ›

The five departments that are listed in a hotel organizational structure are Rooms; Food and Beverage; Human Resources; Marketing; and Accounting. The Rooms department handles customer service including laundry, housekeeping and reservations. F&B is responsible for running room service, bar and restaurant operations.

What is team building in hospitality industry? ›

The goal of team building for restaurant employees is to strengthen bonds between staff members. With team building, everyone is more motivated to work together towards a common goal: an enjoyable experience for your guests.

How do you build a hospitality team? ›

5 Steps to Creating a Great Hospitality Team
  1. A Team That Lasts. Even the most dedicated and loyal of your staff members are unlikely to remain in your employ for life. ...
  2. Know Your Values. ...
  3. Micromanaging vs. ...
  4. Handling Customer Demands and Complaints. ...
  5. Investing in the Right Technology.
15 Feb 2019

Why is organization structure important in the hotel? ›

Every hotel, whether it's big or small, needs an organizational structure to carry out its daily operations. It is used to help divide tasks, specify the job for each department, and delegate authority within and among departments. Effective job specifications will increase work productivity and efficiency.

What are the 4 types of organizational structures? ›

The four types of organizational structures are functional, multi-divisional, flat, and matrix structures. Others include circular, team-based, and network structures.

How many organizational structures does a hotel have? ›

There are four types of hotel or business organizational structures or charts. All four types are somehow different from others and are used for multiple sizes and functions of the hotel.

What is team building structure? ›

Any team structure defines the relationship and synergy between tasks, leadership and each team member. The advantage of having a team structure is that this structure creates a clearly defined means of working together and accomplishing your goals.

What are the 5 team building activities? ›

Some events are designed to foster relationship building while other activities are made to develop a specific skill in a fun way. Consider the five main types of team-building — meeting kickoff, communication, problem-solving, creative thinking and employee bonding.

Why there is need for team building and teamwork in the hospitality industry? ›

Working as a team will ensure better and improved customer service. The whole team will work as per their skills, and that can be very handy to deliver flawless customer service. This strong work ethic will also create a good impression on your customers which makes them satisfied with your services.

How do you build teamwork at work? ›

8 Useful Ways to Enhance Teamwork in the Workplace
  1. Build diverse and inclusive teams.
  2. Clearly define roles and responsibilities for every team member.
  3. Build trust within the team.
  4. Encourage clear, frequent communication.
  5. Give teams autonomy in decision-making.
  6. Manage team meetings wisely.
16 Jun 2022

How do you manage a hospitality team? ›

6 Time Saving Tips to Manage Your Hospitality Team
  1. Provide clarity to your team. A team requires clarity about what you need them to do. ...
  2. Use technology effectively. Take advantage of technology to save time. ...
  3. Avoid micro-managing. ...
  4. Delegate tasks. ...
  5. Make the most of meetings. ...
  6. Encourage open communication.
22 Oct 2018

What is the main purpose of organization and management? ›

One objective of organizational management is to establish a structure that offers employees a clear definition of authority, roles and job responsibilities. This structure ensures that business functions operate smoothly and that employees perform unique tasks so efforts complement one another rather than overlap.

What is the main purpose of organizational structure? ›

The purpose of an organisation structure is to help the organisation to achieve its aims and objectives and employees to complete their work effectively and efficiently. An organisation structure allocates employees designated work roles and responsibilities and helps management to coordinate and control activities.

What is the importance of organizational structure in management? ›

Organizational structures are important because they help businesses implement efficient decision-making processes. By assigning specialized roles to lower-level employees, businesses can make better decisions faster.

What is the most important organizational structure? ›

A hierarchical structure, also known as a line organization, is the most common type of organizational structure. Its chain of command is the one that likely comes to mind when you think of any company: Power flows from the board of directors down to the CEO through the rest of the company from top to bottom.

What is the best organizational structure? ›

A traditional line organizational structure is truly the place to start for most companies, especially the smaller ones that don't necessarily comprise a vast number of departments or require a major number of links in the chain of command/communication.

What is organization chart in hotel management? ›

Hotel Organizational Charts are visual representations of an Hotel's structure; these charts clearly outline the hierarchy within an Hotel and indicate the relationships shared among each Hotel Manager and individual employees.

Why is the organizational structure important in the tourism and hospitality industry? ›

Organization of Lodging Structures

Hotels operate within a general structure that helps organize the property, keep everything running smoothly and ensure that you, as their special guest, have the best experience possible.

What is team building examples? ›

What are some examples of team building activities? The Human Knot is an example of a simple team building activity. Examples of virtual team activities include Virtual Coffee Dates and Virtual Team Trivia. Aerial yoga is one example of an unusual team building activity.

What are the 4 stages of team building? ›

Psychologist Bruce Tuckman described how teams move through stages known as forming, storming, norming, and performing, and adjourning (or mourning). You can use Tuckman's model to help your team to perform better.

What are the 5 C's of team building? ›

A great way to help your team come together is to strive for the five C's, which stand for communication, camaraderie, commitment, confidence and coachability. When you begin working on each of these areas, you will notice significant changes to your teammates and yourself.

What are 7 keys to developing team unity? ›

Leaders can help work teams by addressing these "rules" of team spirit: value the individual; develop team trust; communicate openly; manage differences; share successes; welcome new members.

How do you build a team? ›

How to Build a Strong Team in 9 Steps
  1. Establish expectations from day one. ...
  2. Respect your team members as individuals. ...
  3. Engender connections within the team. ...
  4. Practice emotional intelligence. ...
  5. Motivate with positivity. ...
  6. Communicate, communicate, communicate. ...
  7. Look for ways to reward good work. ...
  8. Diversify.
13 Sept 2021

What are the 6 stages of team building? ›

These stages are commonly known as: Forming, Storming, Norming, Performing, and Adjourning. Tuckman's model explains that as the team develops maturity and ability, relationships establish, and leadership style changes to more collaborative or shared leadership.

What are team building skills? ›

Team building skills are capabilities that help leaders form interactive, supportive, and high-functioning teams. For example, problem solving, listening, and organizing are essential team building skills. The purpose of these skills is to support teamwork and team development.

What are the main 4 elements of teamwork? ›

To establish an effective team – there are four essential elements: Goals, Roles, Interpersonal Relationships and Processes.

What is the purpose of team building in the workplace? ›

The purpose of any team-building exercise is to build a stronger unit of employees. Team building has many benefits for businesses. It improves productivity, increases employee motivation, encourages collaboration and builds trust and respect among employees.

What makes a team successful? ›

Teams depend on the personalities of the members, as well as the leadership style of managers. However, the ingredients for what makes a successful team are similar across the board. Having mutual respect, common and aligned goals, open communication, and patience can all help make for a successful team.

How do you develop team building skills? ›

How To Improve Teamwork Skills
  1. Know Your Goal. People in teams are working towards a common goal. ...
  2. Clarify Your Roles. Within a team, everyone should also understand their responsibilities. ...
  3. Positive Mindset. ...
  4. Manage Time Efficiently. ...
  5. Share Enthusiasm. ...
  6. Exercise Together. ...
  7. Establish Team Rules And Purpose. ...
  8. Do Not Complain.

What is the key to developing a good team? ›

The key elements to successful teamwork are trust, communication and effective leadership; a focus on common goals with a collective responsibility for success (or failure). However, without trust and communication the team will have difficulty functioning effectively.

What are the steps to manage a team? ›

Here are eight steps to managing a team:
  1. Learn to delegate. Chances are your team is made up of a wide range of diverse skills and backgrounds. ...
  2. Provide motivation. ...
  3. Keep communication open. ...
  4. Encourage collaboration. ...
  5. Maintain consistency. ...
  6. Use discipline effectively. ...
  7. Set an example. ...
  8. Provide constructive feedback.

What is the role of team leader in hotel? ›

To be responsible and accountable for the operational running of their area of responsibility. This will include managing a team of servers and casual staff. Ensuring colleagues work together and are delivering good customer experience according to company policies, procedures, programs, and performance standards.

What steps can hospitality organizations take to improve service? ›

How to Improve Customer Service in the Hotel Industry?
  • Survey Your Guests.
  • Know Your Customer Inside-out.
  • Make Customer Service Easy.
  • Use Omnichannel Communication.
  • Train Your Staff.
  • Make Sure Anyone Can Help Guests.
  • Go Beyond Service Expectations.
  • Have a Sense of Humor.
1 Jun 2022

What is the organizational structure of a medium hotel? ›

Rooms, Food and Beverage, Human Resources, Marketing, and Accounting are the five departments listed in a hotel organizational structure. The Rooms department is in charge of customer service, including laundry, housekeeping, and reservations. F&B is in charge of the room service, bar, and restaurant operations.

What do you mean by organization structure? ›

Organizational structure is the method by which work flows through an organization. It allows groups to work together within their individual functions to manage tasks.

What type of business organization is hotel? ›

The majority of large corporations, including many businesses in the hotel and lodging sector, are C corporations (C corps). This structure offers the most liability protection for owners and employees and can provide greater flexibility than an LLC might in terms of changes in ownership.

What is the most important organizational structure? ›

A hierarchical structure, also known as a line organization, is the most common type of organizational structure. Its chain of command is the one that likely comes to mind when you think of any company: Power flows from the board of directors down to the CEO through the rest of the company from top to bottom.

What is the best organizational structure? ›

A traditional line organizational structure is truly the place to start for most companies, especially the smaller ones that don't necessarily comprise a vast number of departments or require a major number of links in the chain of command/communication.

What are the 3 types of organizational structure? ›

Types of Organizational Structure
  • Functional Structure. Under this structure, employees are grouped into the same departments based on similarity in their skill sets, tasks, and accountabilities. ...
  • Divisional Structure. ...
  • Matrix Structure. ...
  • Hybrid Structure.
7 May 2022

What are the 8 types of organizational structure? ›

The following are eight types of organizational structure, with explanations of how you can use them:
  • Functional structure. ...
  • Line structure. ...
  • Line-and-staff structure. ...
  • Matrix structure. ...
  • Divisional structure. ...
  • Organic structure. ...
  • Virtual structure. ...
  • Project structure.

What is the importance of organizational structure? ›

Organizational structures are important because they help businesses implement efficient decision-making processes. By assigning specialized roles to lower-level employees, businesses can make better decisions faster.

What are the benefits of organizational structure? ›

Because organizational structures divide companies into various teams or branches, they're helping to ensure that all tasks and responsibilities specific to those divisions are met more easily. When an employee knows what they should be working on, they're able to operate quickly and more efficiently.

What is the main purpose of an organization? ›

Organizational Purpose

An organization main aim or the purpose is to understand and manage the business well. Main purpose is to bring together all the employees and also understand the direction of the organization.

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