Impact of Organisational Behaviour on Hilton Hotels and Resorts

This report assesses the concept of organisational behaviour and how it can impact Hilton Hotels and Resorts. It evaluates the relationship between an organisation's culture, people, structure, and performance. It also analyzes the role of leadership styles and the behavioural approach to management in Hilton Hotels.

Management and
Organisational Behaviour

Table of Contents
INTRODUCTION.....................................................................................................................................3
Relationship Between an Organisation’s Structure, Culture, People and Performance............................3
Role of Leadership and effective management........................................................................................3
Behavioural Approach to Management...................................................................................................3
CONCLUSION..........................................................................................................................................3
REFERENCES............................................................................................................................................3

INTRODUCTION
Organisational Behaviour is the process of identifying, assessing and predicting an individual or
group's activities, behaviour and performance within a business organisation (McShane and
et.al., 2018). In this report we will analyse the effects of organisational behaviour on Hilton
Hotels and Resorts a global chain of hotels and resorts which has become the flagship brand of
hospitality giant Hilton. Its operations began in 1919 as Hilton Hotels and currently operates
from its headquarters in Virginia, USA. Having been in operations for over a century, the Hilton
Hotels and Resorts has had significant opportunities to expand its business and operations into
international markets. Currently the hotel and resort chain operate around 586 establishments in
85 different countries spanning six continents.
Relationship Between an Organisation’s Structure, Culture, People and Performance
The productivity, profitability and performance of a hospitality business organisation
such as Hilton Hotels and Resorts depends on multiple internal and external factors within the
business. The Hilton management needs to be aware of such factors in order to curtail their
negative effects on the business’s performance. There are four different types of structures Hilton
Hotels can implement in their business all of which provide their own advantages and
disadvantages:
Functional Structure: This is the most common type of structure traditionally used in business
organisations and is implemented by breaking up the business’s structure on the basis of separate
specialised operations carried out by the organisation’s workforce. For example, dividing
structure of Hilton Hotels into cleaning, logistics, maintenance, administration etc.
Divisional Structure: This structure is most prevalent in large sized businesses and is
implemented by structuring its leadership team on the basis of individual projects, products or
subsidiaries operated by the business organisation (Preuss, 2017). For example, dividing the
structure of Hilton hotels so that each separate establishment operated has its own leadership and
administration appointed.
Flat Structure: It is a modern approach to structuring businesses and is implemented by
flattening up the hierarchy of the business along with its chain of command in order to provide

its employees with considerable freedom and autonomy with respect to doing their
responsibilities.
Matrix Structure: This is the least implemented structure in actual organisations and is
implemented by matrixing employees across multiple individual divisions or departments in such
a way that the employee has to fulfil duties from both the separate divisions together. For
example, an employee having to fulfil sales and manufacturing responsibilities together.
Hilton Hotels and Resort’s culture also has massive impact on their performance. We can
better understand the impact of organisational culture by applying Handy’s model for
organisational culture which stipulates that there are 4 different types of cultures present in an
organisation:
Power Culture: In this culture all power within an organisation is concentrated amongst select
individuals who implement all the organisational rules and regulations and possess all the
decision making powers. Employees are evaluated and judged on their performance and aren’t
consulted while making any decisions. Provides fast decision making at the cost of bureaucracy.
Role Culture: In this organisational culture, power within an organisation is determined by an
individual’s position in the organisation’s structural chain of command (Elsmore, 2017).
Employees are asked for their inputs in decision making process making the process slow and
convoluted. This culture encourages bureaucracy in the business.
Task Culture: In this organisational culture, power is held by the individuals or team whose
responsibility is to complete a designated important task. The power shifts amongst employees
depending upon the team dynamics and progression of the required task or project. Provides
employees with increased freedom and creativity.
Person Culture: In this organisational culture, power is held by individuals within an
organisation who think themselves to be just as essential, significant as their operating business
and believe that the organisation simply exists to facilitate the individual’s operations. Provides
complete independence to employees in relation to pursuing their responsibilities.
The also exists a direct relationship between people within Hilton Hotels and Resort and
its performance in the hospitality markets. The skills and talent of people employed by Hilton

Hotels effectively has a direct impact on the type of service Hilton Hotels and Resort can offer to
its customers. Highly skilled Hotel managers with a lot of prior experience in the hospitality
industry are more suited to addressing the issues faced by Hilton hotel’s customers in an
effective and efficient manner (Pereira, Malik and Froese, 2017). If people possessing low level
of skills are placed at high profile jobs within Hilton Hotels and Resort, then it can have a
deterring impact on the hotel’s performance.
Role of Leadership and effective management
Path goal theory is a strategic business leadership theory that describes various leadership
styles Hilton’s administration can make use of based on their requirements. The goal of applying
path goal theory is to increase employee’s motivation and job satisfaction metrics which in turn
would effectively increase Hilton Hotel and Resort’s productivity, profitability and efficiency.
Path goal theory maintains that a flexible approach to leadership on the basis of existing work
environment and employees shall perform better than through an inflexible leader.
Implementation of Path goal theory approaches at Hilton would effectively ease the duties of
their managers and leaders as it provides leaders with various schemes to discern how to regulate
their leadership approach based on the current situation. Path goal theory defines four leadership
approaches for Hilton managers and leaders to use namely Directive, Supportive, Achievement
based and Participative leadership styles.
Directive Leadership: In this approach managers and leaders inform their subordinates of the
duties and responsibilities they need to perform and guide the employees on how those duties are
to be performed as well. This leadership approach is suited to businesses whose workforce is
hesitant about their roles and responsibilities within the business and for workforce who are
lacking in skills and experience (Farhan, 2018). This leadership approach provides structure to
unstructured tasks, with managers and leaders sharing their experience and knowledge amongst
their subordinates in order to increase the business’s overall productivity and profitability.
Though this approach does provide many advantages it can have some disadvantages as well if
applied carelessly. This approach effectively discourages and limits employee initiatives and
hampers the ability of skilled employees. It also is liable to generate feeling of general
dissatisfaction as employees are instructed on every little task they have to perform and hampers
their own ability to solve problems as employees become reliant on their leaders and managers

for every little task related problem they face, effectively increasing the burden on manager.
Applying this leadership approach at Hilton Hotels and Resorts can also reduce its overall
workforce motivation and job satisfaction metrics.
Supportive Leadership: This style of leadership has the manager show active interest into the
lives and wellbeing of their subordinates and work towards creating an amicable and friendly
professional working environment. This leadership style is best suited to businesses and
situations which place immense physical, psychological or emotional stress onto the employee’s
lives and their relationships. This approach can also be used in situations where the
organisation’s workforce is hesitant of their skills or feels unwanted or demotivated in order to
increase their effectiveness, performance and efficiency. Implementing this leadership style at
Hilton will improve the relationship amongst team and leaders, and can make the workforce feel
appreciated and worthwhile (Olowoselu, bin Mohamad and Mohamed Farag Mohamed
Aboudahr, 2019). Contrastingly it can also lead to unwelcome circumstances in situations where
overfriendliness with the workforce effectively reduces leader’s power to control the
professional environment.
Achievement Oriented Leadership: Under this leadership approach the leader or manager
creates difficult end goals and objectives for their subordinates at the start of their work and
shows trust in their workforce abilities and skills to be able to accomplish the given tasks with
optimum effectiveness and efficiency. This particular leadership approach is best suited to
professional situations where achievement of a particular task or meeting a certain target is the
end objective of the employees and the way in which they actually achieve it matters little to the
management and leaders. Achievement oriented leadership approach is primarily used in jobs
such as sales, scientific research, entrepreneurships etc. in which only the end objective matters.
Applying this leadership approach at Hilton Hotels and Resorts will reduce any losses due to
miscommunications between its workforce as all objectives and goals are concisely relayed at
the start of the operations but can also increase Hilton Hotel’s employee turnover rates and
reduce its workforce motivation, innovation and creativity metrics.
Participative Leadership: Under this leadership approach the leaders or management works
together with their subordinates in order to solve problems and consults the workforce for their
inputs and suggestions during the decision making process in order to make effective decisions

on which most people agree upon (Hui, 2018). This particular leadership style is best suited for
professional situations where the existing workforce is highly skilled, trained and experienced as
this makes their input and suggestions valuable to the management. Implementing this leadership
approach at Hilton Hotels and Resorts will improve the communication and team work amongst
its employees while encouraging bureaucracy. This leadership style also increases employee
motivation and job satisfaction metrics allowing Hilton Hotels to retain a major part of their
workforce for years but is not situated for businesses who have to operate within a prescribed
deadline or timing restrictions.
Behavioural Approach to Management
Behavioural approach to management is related to the psychological, social and
emotional aspects of workforce behaviour that can have an impact on an organisation such as
Hilton Hotels and Resort’s performance, efficiency and profitability. The workforce behaviour
within a business has a direct effect on its structure and operations. With time enough evidence
has presented itself to confirm that human element is one of the major influencers determining
the eventual success or failure of an organisation. Behavioural management approaches mandate
less reliance on management’s part to flex their authority onto its workforce (Kitchin, 2017). To
implement behavioural management approaches in its operations at Hilton Hotels and Resorts,
its administration needs to adhere to the following key principles:
Group-Individual Behaviour: Behavioural management approach works on the principle that an
employee’s individual behaviour is directly dependent on the behaviour of the group that he is
part of. Employees observe and follow the performance standards their peers in the group set.
Informal Management: A key principle of Behavioural management approach is the
implementation of informal style of management within the organisation as opposed to formal
management style (Coxon, Hosey and Newton, 2017). Though this can reduce a leader’s
authority over their workforce, behavioural management approach relies on the basis that a
manager or leader can be more effective when applying informal democratic management style.
Contribution: Another key principle of behavioural management style is that management
should ensure and encourage their subordinate’s contribution to the team’s overall work in order
to leave a positive impact on their professional approach towards their work. Involvement of the

workforce during designing, planning and decision making would also increase effective
communication and teamwork amongst the employees.
Motivation: Behavioural management approach believes motivation amongst the workforce is a
key aspect in trying to achieve optimum workforce performance and efficiency. The
management or leader should strive to create a safe and healthy professional working
environment that encourages optimum performance using monetary and non monetary rewards
and incentives.
Supervision: Behavioural management style also maintains that general supervision of
employee’s progress provides better end results to the organisation than constant and vigilant
employee supervision (Chumg and et.al., 2016). This also provides the employee necessary time
to rectify human mistakes that are inevitably going to occur in a professional setting where
employees can often become stressed which has been proven to have a negative effect on the
employee’s performance, motivation and job satisfaction metrics.
CONCLUSION
This report assesses the concept of organisational behaviour and how it can impact an
organisation such as the Hilton Hotels and Resorts. The report evaluates the relationship between
an organisations culture, people, structure and its overall performance in the markets. The report
also analyses the role of various leadership styles available to Hilton hotels and how they affect
Hilton’s productivity. Finally, the report evaluates behavioural approach to management in
Hilton Hotels along with its merits and demerits.

REFERENCES
Books and Journals
McShane, S. and et.al., 2018. Organisational behaviour.
Chumg, H.F. and et.al., 2016. Factors affecting employees' knowledge-sharing behaviour in the
virtual organisation from the perspectives of well-being and organisational behaviour.
Computers in Human Behavior. 64. pp.432-448.
Kitchin, D., 2017. An introduction to organisational behaviour for managers and engineers: A
group and multicultural approach. Routledge.
Coxon, J., Hosey, M.T. and Newton, J.T., 2017. Knowledge of behavioural management
principles amongst specialist paediatric dental practitioners in the United Kingdom. Behavioural
and cognitive psychotherapy. 45(2). pp.185-192.
Pereira, V., Malik, A. and Froese, F.J., 2017. Mapping the impact of Asian business systems on
HRM and organisational behaviour: Multi-level comparative perspectives. Journal of Asia
Business Studies.
Farhan, B.Y., 2018. Application Of Path-Goal Leadership Theory And Learning Theory In A
Learning Organization. Journal of Applied Business Research (JABR). 34(1). pp.13-22.
Olowoselu, A., bin Mohamad, M.A. and Mohamed Farag Mohamed Aboudahr, S., 2019. Path-
Goal Theory and the Application in Educational Management and Leadership. Education
Quarterly Reviews. 2(2).
Hui, R.H.Y., 2018. Identifying volunteer needs in non-profit organizations: an application of the
path-goal theory in volunteer management Sub Title Author Ronny Ho Yung Hui (Haruyama,
Shinichirō) 春春, 春春春.
Preuss, L., 2017. Barriers to innovative CSR: the impacts of organisational learning,
organisational structure and the social embeddedness of the firm. In Innovative CSR (pp. 331-
351). Routledge.
Elsmore, P., 2017. Organisational Culture: Organisational Change?: Organisational Change?.
Routledge.