To effectively implement strategic goals the elements of the control system infrastructure are designed in the mutually supportive and adaptive way. Figure 7 represents the E.C.HO, Starhotels organizational structure. Individual hotel is organized along functional lines with the departments grouped according to the particular work activity in which they are engaged, consisted with the theoretical assumptions. However, the organization of the departments differs significantly.
Figure 7. Organizational structure – E.C.HO, Starhotels
Source: Internal document, E.C.HO, Starhotels
At the top is a GM, Ms. Gigliola Lombardi, Rooms Davison manager is right below, representing the separate department and the GM’s assistant. The third party …show more content…
The five departments heads report directly to GM and her assistant. As the Figure 7 shows each department is subdivided into smaller organizational units. The Head Office has an entire picture, and the individual hotel’s general manger is concentrated only on the hotels performance. The Head Office establishes the amount of employees sufficient to manage a hotel and nobody can be hired above that number. Accounting, HR and Marketing departments for all Starhotels establishments are in the Head Office located in Florence. The Sales department has 11 associates located in Milan, Rome and Florence covering the Italian territory. Furthermore, part of the Reservation department is situated in Head Office, the pool of 12 people manage reservations for the entire company even France and …show more content…
Each person in authority is held accountable for attaining planned objectives. The Starhotels Head Office represents Investment Center. Individual hotels represent a Profit Centers. The GM of E.C.HO Starhotels is held accountable for both revenues and cost and therefore, profits. She needs to drive the sales revenue generating activities, which leads to cash inflows and at the same time control the cost causing activities. The Rooms division manager represents a Profit Center as well. He is held responsible for the revenues and expenses and the gross profit margin is used to evaluate his performance, as he cannot influence the third level of results, net operating profit. A GM controls this category of cost, because it is result of her decisions. Revenue department, Front house and Events department are Revenue Centers. Housekeeping department and Repair & Maintenance department are Cost
Figure 7. Organizational structure – E.C.HO, Starhotels
Source: Internal document, E.C.HO, Starhotels
At the top is a GM, Ms. Gigliola Lombardi, Rooms Davison manager is right below, representing the separate department and the GM’s assistant. The third party …show more content…
The five departments heads report directly to GM and her assistant. As the Figure 7 shows each department is subdivided into smaller organizational units. The Head Office has an entire picture, and the individual hotel’s general manger is concentrated only on the hotels performance. The Head Office establishes the amount of employees sufficient to manage a hotel and nobody can be hired above that number. Accounting, HR and Marketing departments for all Starhotels establishments are in the Head Office located in Florence. The Sales department has 11 associates located in Milan, Rome and Florence covering the Italian territory. Furthermore, part of the Reservation department is situated in Head Office, the pool of 12 people manage reservations for the entire company even France and …show more content…
Each person in authority is held accountable for attaining planned objectives. The Starhotels Head Office represents Investment Center. Individual hotels represent a Profit Centers. The GM of E.C.HO Starhotels is held accountable for both revenues and cost and therefore, profits. She needs to drive the sales revenue generating activities, which leads to cash inflows and at the same time control the cost causing activities. The Rooms division manager represents a Profit Center as well. He is held responsible for the revenues and expenses and the gross profit margin is used to evaluate his performance, as he cannot influence the third level of results, net operating profit. A GM controls this category of cost, because it is result of her decisions. Revenue department, Front house and Events department are Revenue Centers. Housekeeping department and Repair & Maintenance department are Cost