Organization Design & Development

The Plaza Inn
David Bart, General Manager of the Plaza Inn, received a letter from the hotel association
of which the Plaza Inn was a member. The letter stated that the hotel’s service levels did
not measure up and that the front desk and reservations, two critical departments,
received the worst ratings among all of the association’s properties. Unless the
management of the Plaza Inn could submit a plan for guest service improvement and
pass the next inspection scheduled in six months, its membership would be rescinded. In
fact, at the Plaza Inn, the inability to efficiently expedite phone calls and respond to guest
needs was troubling to Bart, not only from a guest service perspective, but also from the
standpoint of lost revenue.
1. What structural change is indicated at the Plaza Inn?
2. How could the Plaza Inn develop a collaborative strategy?
3. How could technology help solve the problems at the front desk?
4. What changes in culture are needed at the Plaza Inn?
Learning outcomes
 Evaluate organizational structure on the frame of its strategy
 Understand the different elements and issues of organizations
development and creating the need for change.
 Understand the strategic role of change in the organization and its impact
on organizational performance
 Identify and apply the basic steps of the organizational development
 Understand the human, structural and strategic dimensions of the
organizational development
 Realize the ethical issues of the organizational development.


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Question 1

The plaza inn was strategically reopened in 1993 as business operating environment became stable with minimal competition from other potential companies even though the climate changed and became more active with time. Due to this increase in the operational uncertainty, the plaza inn needs to adjust and become more organic through moving to a flexible, decentralized formation that strengthens horizontal association, dissemination of data and adaptability. The institution needs to be restructured into a learning institution where instead of David looking into all the issues that affect the industry; the workers would just identify and handle the problems (Penner, Adams, & Rutes, 2013). The structural change would be centered on parallel processes or programs rather than departmental operations that comprise of sales, housekeeping, front office, and catering. The industry could also make use of the self-directed teams that eliminate boundaries that exist between functions as groups comprise of members from various functional areas.

Question 2

In developing a collaborative strategy, the business is known for its efficient operation as all the plans are typically formulated through the top executives like David and imposed on the institution. For instance, David is charged with the responsibility of how the business can adequately respond to the stiff competition, efficient use of resources, and adapt with the environmental changes (Martínez, Pérez, & Del Bosque, 2014). Consequently, if the plaza inn changes into a learning institution, the operations of its detailed and empowered workforce would strategically lead to strategy development. Since all the workers continuously communicate with their clients, suppliers and new technology, they are in a position of understanding the needs and solutions for strategy making.

Question 3

Since the front desk is not able to perform adequately and is continually costing the inn clients, the management needs to computerize its sales, housekeeping and catering divisions, and also incorporate computerized check-in kiosk in the lobby to relieve the issues emerging from the front desk. Moreover, Bart should integrate a customer relationship management system that will typically monitor the visitor’s interactions and enable the workers to call up previous service records.  This would increase consumer service within the business and make the hotel more aggressive with the Ritz-Carleton that is known for its well-structured customer service. The system would assist in the coordination of sales, marketing, and customer service for the divisions to operate together smoothly (Penner, Adams, & Rutes, 2013). Also, technologies such as blogs and social networking are resourceful in improving customer relations.

Question 4

In conclusion, the institution needs to change from a tough to a more adaptive cultural system as this would incorporate a continuous enhancement and change. Moreover, with this cultural structure, the business would adopt a strategy that would minimize boundaries within plaza inn. Workers would be viewed as valuable contributors, encouraged to grow and use their full potential.



Martínez, P., Pérez, A., & Del Bosque, I. R. (2014). Exploring the role of CSR in the organizational identity of hospitality companies: A case from the Spanish tourism industry. Journal of business ethics124(1), 47-66.

Penner, R. H., Adams, L., & Rutes, W. (2013). Hotel design, planning and development. Routledge.


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