Glion Inst: Marriott International's Organizational Challenges

This report identifies and analyzes the organizational challenges faced by Marriott International Inc. in the hospitality industry. It examines issues such as diversity management, employee retention, and maintaining uniformity across international locations. The analysis incorporates organizational behavior theories, including the behavioral theory of the firm, institutional theory, and transaction cost theory, to propose solutions for improving employee relations, fairness in employment, and strategic decision-making. The report concludes that Marriott needs to address management decision-making approaches, learn from other successful firms, and streamline its decision-making to align with global demands. Desklib provides access to similar solved assignments and past papers for students.

Running head: ORGANIZATIONAL CHALLENGES IN HOSPITALITY INDUSTRY 1
Organizational challenges in Hospitality Industry - A Case of Marriott International Inc.
Student Name
Student number
Class number
Course: BBA 3048 Professional Communication and Academic Writing
Glion Institute of Higher Education
semester year and number
This study source was downloaded by 100000867624907 from CourseHero.com on 05-22-2023 18:07:49 GMT -05:00
https://www.coursehero.com/file/113535591/Organizational-challenges-in-Hospitality-Industrydocx/

ORGANIZATIONAL CHALLENGES IN HOSPITALITY INDUSTRY 2
Statement of Authorship
I confirm that this work is my own. Additionally, I confirm that no part of this coursework,
except where clearly quoted and referenced, has been copied from material belonging to any
other person e.g. from a book, handout, another student. I am aware that it is a breach of GIHE
regulations to copy the work of another without clear acknowledgement and that attempting to
do so renders me liable to disciplinary procedures. To this effect, I have uploaded my work onto
Turnitin and have ensured that I have made any relevant corrections to my work prior to
submission.
This study source was downloaded by 100000867624907 from CourseHero.com on 05-22-2023 18:07:49 GMT -05:00
https://www.coursehero.com/file/113535591/Organizational-challenges-in-Hospitality-Industrydocx/

ORGANIZATIONAL CHALLENGES IN HOSPITALITY INDUSTRY 3
Table of Contents
Statement of Authorship..............................................................................................................................2
Introduction................................................................................................................................................. 4
Problem statement.......................................................................................................................................4
Identification and clarification.....................................................................................................................5
Behavioral theory of the firm...................................................................................................................5
Institutional theory...................................................................................................................................6
Transaction cost theory............................................................................................................................6
Appropriateness of theories.........................................................................................................................7
Conclusion................................................................................................................................................... 8
References................................................................................................................................................... 9
This study source was downloaded by 100000867624907 from CourseHero.com on 05-22-2023 18:07:49 GMT -05:00
https://www.coursehero.com/file/113535591/Organizational-challenges-in-Hospitality-Industrydocx/

ORGANIZATIONAL CHALLENGES IN HOSPITALITY INDUSTRY 4
Introduction
Marriott International Inc. is a chain of hotels with a global presence across in more than
73 countries and an estimated 3700 facilities worldwide (Marriott International Inc). Marriott’s
main focus remains innovation and putting people first as enshrined in it’s core values. The
rationale of this study is to identify challenges the organization faces and how this has put a
strain in the working relationship between workers and management as well as workers and the
organization. The topics covered include problem statement, organization theories and the
appropriateness of these theories. This paper argues that Marriott International Inc. business
strategy is only focused on high performance of the systems and its resources while overlooking
the finer yet fundamental aspects that uphold its status as an international conglomerate with
thousands of employees worldwide.
Problem statement
At the height of its performance, Marriott International Inc. has set itself apart as the
epitome of standard quality when it comes to how an international hotel is run and managed.
This has been made possible through the organizational principles, business strategies and strong
set of core values. However, these pillars of success still pose challenges that affect how Marriott
is performing against how it should be performing. One such challenge is handling diversity
across the organization, from people’s needs, to legislations, social spheres and renumeration of
workers (Bharwani & Butt, 2012). The need to attract and retain some of the top-notch staff in
the hotel industry as part of maintaining its international status is a buoying challenge the
organization faces. The organization is struggling in maintaining uniformity across its
international stations worldwide given that operational dynamics facing or defining each country
is different. As a way of maintaining equality and fairness, Marriot has always employed
This study source was downloaded by 100000867624907 from CourseHero.com on 05-22-2023 18:07:49 GMT -05:00
https://www.coursehero.com/file/113535591/Organizational-challenges-in-Hospitality-Industrydocx/

ORGANIZATIONAL CHALLENGES IN HOSPITALITY INDUSTRY 5
strategic human resources tactics in employment as well as compensation of staff. However,
despite efforts made in the human resource sector of the organization, there are still pending
issues that need ironing out across the sphere. Marriott International Inc. still needs to establish
and adopt a high-performance corporate culture across the globe in all its stations which will
translate into high performing teams which are able to deliver both efficiency in operations and
chart the path of excellence for the future.
Identification and clarification
Organizational behavior theories are often judged by their usefulness in describing and
solving challenges facing organizations. Each theory bears a certain level of scientific validity
and the validity of its usefulness when applied to real-life scenarios. Within the field of
organization management, theories ought to be built on management decision-making processes
as well as the behavior of those affected. A behavioral theory must consider that organizations
are made up of people who require motivation to achieve maximum potential in their daily
conduct.
Behavioral theory of the firm
This theory focuses on management decision making as the foci of its implementation.
One of the key features of a decision maker under behavioral theory of the firm is how they
focus on the goal variables and the proper adaptation towards correct decision making. Much of
the focus with respect to organizational theory of the firm is the top management and how their
behaviors affect the overall well-being of the organization (Greve & Argote, 2015). For instance,
legal challenges are some of the most common problems any hotel business is facing worldwide.
According to Hogan (2012), this is a common situation globally due to the issues underlying the
management and maintenance of a hotel space. While one may focus on the efficiency of its
This study source was downloaded by 100000867624907 from CourseHero.com on 05-22-2023 18:07:49 GMT -05:00
https://www.coursehero.com/file/113535591/Organizational-challenges-in-Hospitality-Industrydocx/

ORGANIZATIONAL CHALLENGES IN HOSPITALITY INDUSTRY 6
operations, there may rise challenges related to negligence in maintaining its premises or staff
backlash due to delayed wages and failed negotiations on working standards.
Institutional theory
This theory focuses on the environmental influences such as the flow of new practices
across different firms in an industry. At the organizational level, results and its consequences are
seen as the work of management decision making (Greve & Argote, 2015). For legal challenges
facing hotels, Bath (2006) proposes that managers ought to be astute in their manner of
operations. This implies that they need to lead by example in their overall behavior and
maintaining standards. For instance, they ought to always update and revisit their contracts,
thoroughly check details of their working relationship with third parties, note down all the
deadlines using correct calendar dates, share all information affecting staff and education them
on the need to observe all the provisions of their contracts as well as the consequences of a
breach.
Transaction cost theory
Transaction cost theory applies well at the firm level within a given industry by
answering the questions of when events occur within the larger industry and when they occur at
the firm level. More in-depth, it focuses on the dynamics around how governance forms of
market hierarchies are implemented at the firm (Greve & Argote, 2015). In the hotel industry,
Marriott International Inc. would explore its boundary options with respect to its decision
making. For instance, the decision to expand globally into new territories while maintaining its
standards of its original operation.
This study source was downloaded by 100000867624907 from CourseHero.com on 05-22-2023 18:07:49 GMT -05:00
https://www.coursehero.com/file/113535591/Organizational-challenges-in-Hospitality-Industrydocx/

ORGANIZATIONAL CHALLENGES IN HOSPITALITY INDUSTRY 7
Appropriateness of theories
Three theories offer possible explanation and solutions to the problems currently faced by
Marriott International Inc. They include behavioral theory of the firm, institutional theory, and
transaction cost theory. Each theory has a foundation and approach to any given scenario within
the scope of the hotel industry with emphasis on Marriott International Inc. Under behavioral
theory of the firm, Marriott International Inc. can improve it’s employee relations with the firm
through addressing management decision making approaches. Human resource challenges are
usually specific to an organization and the mitigation measures taken are at the mercy of its
management. For instance, Gavetti et al. (2012) posits that behavioral theory of the firm focuses
on the goal variables as a way of realizing the overall targets. Marriott International Inc. ought to
not only look at the general needs of the workers but consider it at a granular level. This means
that each employee should be disintegrated from the pool of employees and his or her needs
addressed at an individual level. Management decision making on expansion should also trickle
down to region level demands and requirements with regards to labor needs.
Institutional theory provides solutions into factors affecting fairness in employment and
employee compensation. To attract and retain the level of quality in staff, Marriott International
Inc. should look at the practices of other firms in the industry with top-level employee
satisfaction. For example, a case study of three other firms in the hotel industry with an
international presence, similar or larger than Marriott can be initiated. Focus on the studies
should be on the variables that define satisfaction and their implementation for greater good
(Dacin, Goodstein & Scott, 2002). A look at organizations with effective human resources
translated into results will offer a standard of operation for Marriott as well as eliminate any
outliers causing strain in employee-management relations or employee-organization relations.
This study source was downloaded by 100000867624907 from CourseHero.com on 05-22-2023 18:07:49 GMT -05:00
https://www.coursehero.com/file/113535591/Organizational-challenges-in-Hospitality-Industrydocx/

ORGANIZATIONAL CHALLENGES IN HOSPITALITY INDUSTRY 8
Conclusion
Marriott International Inc. has grown through the challenges of hospitality industry
through developing operational strategies and maintaining its standards through attracting the
best staff in the industry. However, strategy and measures so far are insufficient to retain these
staff as well as maintain a reasonable standard with respect to its operations. There are numerous
theories that can be adopted to explain the challenges Marriott is facing as well as help devise
solutions. Under behavioral firm theory, Marriott can understand the effect of management
decision making and how this affects the rest of the organization. Further, the theory provides
that organizations can improve on its internal relations through looking within for solutions that
work for each worker at an individual scope. Institutional theory discusses how environmental
influences such as the flow of new practices across different firms in an industry. Marriott
International Inc. can adopt practices that are without the firm for strategic growth yet
considering the needs of its stakeholders. The company can investigate databases for measures
and strategies adopted by industry leaders then modify its approaches to fit with the global
demands. The need to attract and retain competent staff is buoying as the firm is expanding
across the borders. This also demands that management should streamline its decision making to
align with this growing need.
This study source was downloaded by 100000867624907 from CourseHero.com on 05-22-2023 18:07:49 GMT -05:00
https://www.coursehero.com/file/113535591/Organizational-challenges-in-Hospitality-Industrydocx/

ORGANIZATIONAL CHALLENGES IN HOSPITALITY INDUSTRY 9
References
Bharwani, S., & Butt, N. (2012). Challenges for the global hospitality industry: an HR
perspective. Worldwide hospitality and tourism themes.
Gavetti, G., Greve, H. R., Levinthal, D. A., & Ocasio, W. (2012). The behavioral theory of the
firm: Assessment and prospects. Academy of Management Annals, 6(1), 1-40.
Greve, H. R., & Argote, L. (2015). Behavioral theories of organization. International
Encyclopedia of the Social & Behavioral Sciences, 2nd ed. Amsterdam: Elsevier, 481-86.
Hogan, J. (2012). Lessons From the Field: A Tale of Two Restaurants.
Marriott International Inc. (2021). Home page- https://hotel-development.marriott.com/our-story/
Tina Dacin, M., Goodstein, J., & Richard Scott, W. (2002). Institutional theory and institutional
change: Introduction to the special research forum. Academy of management journal,
45(1), 45-56.
This study source was downloaded by 100000867624907 from CourseHero.com on 05-22-2023 18:07:49 GMT -05:00
https://www.coursehero.com/file/113535591/Organizational-challenges-in-Hospitality-Industrydocx/
Powered by TCPDF (www.tcpdf.org)