Organisational Conflicts: The Grand Hotel Excelsior Case Study

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Abstract

The current paper has one major objective. The objective is the critical analysis of the potential inter-departmental and intra-departmental conflicts at The Grand Hotel Excelsior. Organisational conflicts are not a myth, but a reality in almost every department in an organisation.

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In this essay, the author discussed the factors leading to conflicts within Grand Hotel Excelsior and the forms of conflicts that arise in the organisation. Four major factors were identified in this paper.

They include motivation, group dynamics, the structure adopted by the organisation, as well as the style of leadership adopted by managers.

Three major forms of conflicts were identified. The first was based on interpersonal relationships in the organisation.

The second arose from roles played by different members of the organisation. The final is intrapersonal conflict. It is important for the managers to familiarise themselves with the various dynamics of the conflicts identified.

Body

Organisational behaviour is defined variously by different scholars. Many agree that it is the field of study that investigates the various impacts of individuals, groups, and organisational structure on behaviour patterns within an entity.

The study is essential since such knowledge can be applied towards organisational effectiveness (Bass 2005, p. 123). Organisational behaviour, as an academic discipline, analyses how employees conduct themselves at their workplace.

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It is evident that no two individuals can behave in the same manner in a particular work station The study of human behaviour in an organisation is essential since it is one of the contributory factors towards productivity.

The top managers are expected to predict, explain, evaluate, as well as modify the behaviour of their employees to enhance productivity (Bucic, Robinson & Ramburuth 2010, p. 68).

The current paper is organised around one major thesis statement. The author of the paper believes that the organisational structure adopted by the managers in a business entity significantly affects inter-departmental and intra-departmental conflicts in the organisation.

Various factors determine human behaviour. They include organisational culture and the way the job is structured (Bagher 2008, p. 78). Other factors include value systems, working conditions, and emotional intelligence.

For instance, adoption of the right organisational culture can effectively influence the conduct of employees. Organisations tend to improve on their organisational culture to enhance productivity. Organisational behaviour goes together with management, hence the need to improve on management.

The study of organisational behaviour has a relatively wide scope. First, it addresses the relationship between personality and performance, as well as the factors revolving around employee motivation.

It also addresses the issue of leadership and strategies of coming up with effective teams and groups (Cortes, Saez & Ortega 2007, p. 152).

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In today’s competitive world, all organisations are established to fulfil individual needs. The strategy can only be realised when productivity is ensured with respect to volume of production (Bagher 2008, p. 80).

Organisational behaviour can lead to conflicts. For instance, absenteeism is one of the organisational behaviours that can have a negative impact on the firm’s productivity. Employees who have the habit of escaping duties cannot contribute towards productivity or organisational growth.

Employee turnover works against the objectives of the organisation. For example, it increases the organisation’s costs of production. Job satisfaction is another factor affecting performance of an employee (Bagher 2008, p. 77). For example, such employees are more productive compared to others.

All workers should have a positive attitude towards their work and have to function in an amiable atmosphere and accomplish the assigned goals.

The top managers should act as role models and develop an appropriate work culture. Once conflicts occur, managing them becomes an integral part of most HR practitioners (Cruz, Perez & Cantero 2009, p. 58).

Grand Hotel Excelsior is a leading player in Italy’s hospitality industry. It is located in Sorrento, Italy, one of the most beautiful locations in the Mediterranean. It has a large private park with a Jacuzzi pool, as well as exclusive luxury boutiques (Excelsior.com 2013, par. 3).

It has wireless connection, a bar, 250 lodgings, 10 restaurants, meeting rooms, and a private car park. The organisation is led by a general manager. There are five line-managers that help the management to achieve organisational objectives. The hotel has five departments, each led by a line manager.

The Grand Hotel Excelsior is a family undertaking. The entity has been under the management of the family since 1834 (Excelsior.com 2013, par. 5). It has experienced many conflicts among employees, managers, and owners.

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There are several forms of conflict that occur within and between the departments in the hotel. One source of conflict is the organisational structure adopted in the entity. The concept describes the techniques a company uses to position its different departments within its larger structure.

Small firms have flat organisational structures with a small number of management heights (Iverson 2006). On the other hand, large companies have tall organisational structures with many heights of management and staff. Firms adopt various types of organisational structures for explicit roles (Bagher 2008).

For instance, a firm using a geographic organisational structure decentralises a variety of roles, including marketing, as a result of different regional needs. Lack of an appropriate organisational structure can lead to conflicts (Blake & Mouton 2004, p. 108).

The hotel has a unique organisational structure. The structure involves two levels of reporting (Excelsior.com 2013). The employees are expected to report to managers in their departments. The department managers, on their part, report to the general manager.

The conflict theory explains how power can be ‘overused’ to attain social order. Individuals in authority use power on subordinates, leading to conflicts.

Grand Hotel Excelsior’s organisational structure has led to various conflicts, including interpersonal conflicts. In the various departments, there is insufficient supervision by the managers. Inadequate supervision leads to conflicts between the managers and the workers.

The management uses an appraisal system to determine the performance of employees (Bagher 2008). The assessment leads to conflict of interests. Most of the workers feel the appraisal system used is not fair as it favours some of them, such as the female employees.

They are concerned that the appraisal system used does not reflect all aspects of their production and their contribution towards the hotel’s growth, leading to conflicts between the management and the employees (Brown & Eisenhardt 2007, p. 30).

Another conflict depicted in the hotel emanates from the mechanism used in reporting. Managers from various departments fail, deliberately, to take into account the feedback from employees. Front line employees interact with customers on a daily basis.

As such, they play a fundamental leadership role by channelling customers’ feedback to the top management. However, the front line employees are demoralised if their opinions are not taken into account by the management (Stac 2003, p. 89).

Most employees are likely to believe that their efforts are not appreciated by the management. In some cases, the employees will rebel against the organisation.

Interdepartmental conflicts are common in contemporary organisations. They occur when one department tries to impose itself on the others. For example, the human resource department may formulate new administrative policies without consulting the others.

The other departments are likely to reject these policies since they were not consulted. Such a conflict is destructive since it can jeopardise the achievement of the organisational goals.

The organisational structure should be strengthened to make the reporting system and terms of interaction between departments clear to all employees (Dhar & Dhar 2003, p. 90).

Effective organisations empower their employees and develop human resource capabilities at all levels (Bagher 2008). Employees are committed to their work and feel that they are part of the body.

Employees at all levels feel involved in the decision making process, especially with regard to those decisions directly affecting their activities (Knights & Willmott 2007, p. 100). Studies reveal that nearly all effective firms remain steady and integrated over time.

The behaviour of employees is brought about by the interplay between various fundamental values. Leaders and employees have skills to arrive at a certain accord. The activities of the firm are effectively coordinated in such cases (Hair et al. 2001, p. 89).

The HR department can come up with specific techniques and scientific testing procedures. Such procedures are important in evaluating prospective employees. The employees conduct all business activities in the firm.

Specialists in the procurement department should be given the opportunity to use their skills and techniques to enhance the growth of the company. Application of their skills will help the organisation in negotiations (Malhotra 2005, p. 101).

The second aspect of conflict at the organisation analysed in this paper is motivation. The conflict can be explained from the motivation theory perspective. The theory explains how workers initiate, guide, and maintain goal oriented behaviours.

If workers are not motivated, conflicts may occur within the organisation. Gross & Guerrero (2000, p. 210) tries to define motivation.

They are of the view that it is brought about by events that are internal or external to the organisation. The events prompt the individual to engage in acts aimed at attaining a specified objective (Bagher 2008).

Individuals in an organisation are major components that need to be properly managed. Each of the individuals works towards the achievement of a specific objective. As such, managers should identify the needs of the employees and address them accordingly.

Relationships between employees and managers should be enhanced. Workers should be motivated to increase their productivity. Motivation is essential because it energises employees, facilitating the achievement of organisational goals.

It significantly determines the passion of employees in pursuing organisational objectives. In addition, it determines the direction and intensity of their actions (Wilmott & Hocker 2001, p. 57).

Role conflict is evident at the department level. One source of such form of conflict is motivation among employees. It is important to note that employees are allocated different duties by managers in the hotel. Role conflict arises when the duties of two or more employees coincide (Lantz 2011, p. 77).

A case in point is when a valet is required to work for extra hours by the supervisor. The valet may lack the motivation to spend more time at the work place. For example, he may have other personal commitments, such as hanging out with friends.

At this juncture, the social roles of the valet conflict with those expected of him at the workplace. He has to make a decision whether to follow the instructions of the supervisor, or go out with his friends after his normal shift (Bagher 2008, p. 78).

Different employees in the same department may be pursuing different goals based on the definition of their status. For example, a supervisor and a chef may have different goals allocated to them. The difference between the roles of the two individuals may lead to conflicts (Bagher 2008).

The supervisor may request the chef to spend less time in delivering orders. However, the chef may be unwilling or unable to adhere to the instructions given that they need to pay more attention to the orders placed by customers.

To this end, it becomes obvious that the supervisor and the chef are pursuing different objectives. However, the objectives are all aimed at enhancing the success of the hotel (Belbin 2010, p. 167).

Factors leading to role conflict are not limited to those analysed above. Others include the varying needs of the employees. The conflict is explained from the perspective of the expectancy theory. The actions taken by employees are informed by the envisaged outcomes.

Employees at The Grand Hotel Excelsior are aware of the consequences of their behaviours. As a result of this awareness, they will only execute tasks that are likely to have beneficial consequences (Benligiray & Sonmez 2012, p. 3894).

Motivation can lead to conflicts between the departments of the hotel. The conflict can be reviewed from the perspective of Herzberg’s two-factor theory. According to the theory, two major sets of factors determine the morale of employees. The first set of factors is referred to as ‘hygiene’.

They include remuneration, job security, and working environment (Bodtker & Jameson 2001, p. 261). The second of factors is referred to as ‘motivators’.

They involve organisational policies, supervision, and the interaction between members of the entity. The unequal distribution of hygiene factors, such as salaries, is a major source of conflict (Kotter 2008, p. 26).

The conflict can be analysed using the equity theory. Workers in different departments compare remuneration, working conditions, and other rewards to determine the level of fairness in the organisation. Employees from different departments may be carrying out tasks that are largely similar.

However, employees from one department, such as research and development, may earn more than employees in the other departments.

In this case, some employees may feel that the organisation is treating them unfairly. Lack of fairness will lead to dissatisfaction, leading to conflicts between the departments (Bucic et al. 2010, p. 232).

Leadership is another aspect of behaviour that can lead to conflicts at The Grand Hotel Excelsior. The concept is defined as a situation where an individual exerts their influence over other people. The aim is to realise set goals and objectives. It involves coming up with a vision for the group.

The group is supposed to work towards the set goals and objectives (Cortes et al. 2007, p. 49). The relationship between the management and the employee’s may lead to conflicts. A case in point is when the manager misuses their power on the employees, forcing them to work extra hours without incentives.

The conflict may affect the relationship between managers and employees, leading to reduced productivity. Employees are the most valuable assets of any organisation. As such, once conflicts occur, they should be managed appropriately.

Leadership is one of the factors that determine the smooth functioning of an organisation. An effective leader is not only flexible in his leadership style, but also in conflict management. For instance, a manager may adopt more than one strategy to manage a conflict, enhancing their flexibility (Cruz et al. 2009, p. 479).

It is possible to analyse organisational leadership using the contingency theory. Effective leadership should enhance the performance of employees (Luthans 2006, p. 68). The management of The Grand Hotel Excelsior applies transformational leadership style.

To this end, the management delegates tasks and makes efforts to develop their employees. It also enhances easy access to leadership.

The leadership challenges conventional approaches to management (Fiedler & Chemers 2004, p. 60). The leadership style has led to interpersonal conflicts between the managers and the supervisors (Bagher 2008).

At the department level, there is poor communication between the managers and the supervisors (Fiedler 2008, p. 26). Poor communication has negatively affected the efficiency of the hotel due to lack of coordination between managers and employees.

For example, the managers pursue goals that are different from those of employees. Inability to use transformational leadership may negatively affect relationships in the hotel. For example, it may lead to conflict of interests (Garg & Rastogi 2006, p. 68).

Group work is the fourth aspect of behaviour which can cause conflicts. Group work is one of the most essential tools of enhancing productivity in an organisation (Griffin & Moorhead 2011, p. 89).

The Grand Hotel Excelsior organises its workers into various groups, which are more productive and efficient than individual workers. In each department, there are team leaders who guide the group (Bagher 2008). For example, there is a team charged with the responsibility of taking the orders of customers in the hotel.

However, group work in the hotel has led to conflicts, including role conflict. Role conflict may arise from the ambiguity of the tasks allocated to different employees. Most employees tend to compete for some duties, ignoring others in the process (Hellriegel & Slocum, 2007, p. 45).

At times, the goals and objectives of individual team members vary. The variation may lead to conflicts (Hitt, Ireland & Hoskisson 2009, p. 67). For example, some workers may regard cleaning visitor’s towels and rooms as a monotonous undertaking.

As such, they tend to neglect some of the tasks, assuming other members will perform them. To avoid the conflicts, the management uses performance based reward system to enhance productivity. Under-performing groups are motivated to work hard to receive the incentives, reducing conflicts (Houle et al. 2009, p. 11).

The strategy may lead to the unfair distribution of resources. Departments and groups perceived to be more productive receive more resources (including higher remuneration of employees) compared to other departments and groups perceived to be peripheral to the objectives of the organisation.

In conclusion, it is important to highlight the issues covered in this essay. The author looked at individual and group conflicts as one of the organisational behaviours leading to poor production at The Grand Hotel Excelsior.

The factors likely to cause conflicts at the hotel include motivation, group work, organisational structure, and leadership style. There are conflicts within and between departments. The success of the organisation depends on the ability of the management to address the conflicts.

References

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Lantz, A 2011, ‘Teamwork on the line can pay off down the line’, Journal of Workplace Learning, vol. 23 no. 2, pp. 75-96.

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