Why is culture more crucial to hospitality organizations than manufacturing organizations?
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As EHL Advisory Services would have you know, “developing a Service Culture is an imperative”. But what is it that makes service culture so important? What defining factors and repercussions of a service culture make it indispensable in businesses across the board? Service Culture definitionThe following definitions of service culture set the backdrop for our reflection:
Service Culture is a philosophyThe very title of EHL Insights article “The Customer is King, and Customer Service Culture is his Queen” suggests that a service culture is a prerequisite for great service. Indeed, a true customer focus can only be achieved by centering your business philosophy and values around the provision of service excellence and having that notion permeate every aspect of how your company is run. As part of a service culture, employees at every echelon are called upon to embrace and personify the concept of service excellence. This clear and intentional direction, this cohesion and common goal has the power to give employees a sense of belonging. Just think of the black and white reality of subscribing to a Zapponian mindset or volunteering to leave the company… Jeff Toister’s use of the word “obsessed” above highlights the fact that a service culture shapes employees’ thinking. It is a mentality that contributes to brand identity and provides a basis for decision-making in everyday operations. In outlining the desired attitude, a service culture sets the tone for staff to instinctively make the right calls, choose appropriate wording and take the best action. Their interactions with guests and fellow staff members alike are shaped by the guiding principle of customer-orientation.
How do customers experience service culture?Customers’ perception on the receiving end is one of friendliness and helpfulness, a forthcoming approach – in short: hospitality. This, in turn, shapes a company’s reputation, defines its position on the market and paves the way for referrals, recommendations, glowing reviews and repeat business. A service culture provides the framework for employees to ask themselves how they could better serve their guests. How can they improve their behavior? Is there something a colleague might change? Could a policy be optimized? Would a new solution be more customer-friendly? By welcoming constructive criticism, a service culture opens the doors to innovation, rendering a company more resilient to market volatility. Why is service culture good business?The effects are felt on the bottom line. All other factors remaining equal, a customer-centric approach has been found to boost revenues, benefit stock price performance and improve business viabilityoverall. If that’s not reason enough, frankly we don’t know what is.
Written by Consultant - Service DNA at EHL Advisory Services To read the full version of this content please select one of the options below:
Anjali Chaudhry (Brennan School of Business, Dominican University, River
Forest , Illinois, USA) Ling Yuan (Takeda Pharmaceuticals North America, Inc., Deerfield, Illinois, USA) Jia Hu (Mendoza College of Business, University of Notre Dame, Notre Dame, Indiana, USA) Robert A. Cooke (Department of Managerial Studies, University of Illinois at Chicago, Chicago, Illinois, USA) Management Decision ISSN: 0025-1747 Article publication date: 18 April 2016 Issue publication date: 18 April 2016 Writings on organizational culture suggest that cultural values and norms are influenced by factors at the organizational, industry, and societal levels. While the effects of societal and organizational factors have been researched extensively, those of industry factors have not received commensurate attention. The purpose of this paper is to investigate the relative importance of
industry vs organizational variables in explaining the cultural norms reported by individuals within organizations. Design/methodology/approachThe effects of two industry characteristics, (growth rate and research and development intensity) and two sets of organizational factors (leadership behaviors and human resource practices) on the strength of constructive, passive/defensive, and aggressive/defensive organizational cultural norms were investigated. FindingsResults of hierarchical linear modeling analysis of survey data from 3,245 respondents in 424 organizations in 12 different industries revealed significant between-organization variation but no significant between-industry variation in the three types of cultural norms measured. Furthermore, while industry-level factors were unrelated to culture, significant variance in the culture measures was explained by leadership behaviors and human resource practices (use of rewards and fairness of performance appraisal). Research limitations/implicationsThe strength of cultural norms and expectations within an organization evolve in response to attributes specific to the organization and do not necessarily reflect industry characteristics. The results indicate that organizations using surveys to assess their cultures may learn as much (if not more) by comparing their feedback to data on organizations across a spectrum of industries as opposed to organizations exclusively in their own industry. Originality/valueMost of the frameworks developed to examine and describe the cultures of organizations delineate specific dimensions or types that are assumed to be relevant to all organizations regardless of the industries within which they operate. The purpose of this paper was to explore the validity of this assumption by investigating the relative impact of industry and organizational factors on organizational culture. Keywords
CitationChaudhry, A., Yuan, L., Hu, J. and Cooke, R.A. (2016), "What matters more? The impact of industry and organizational factors on organizational culture", Management Decision, Vol. 54 No. 3, pp. 570-588. https://doi.org/10.1108/MD-05-2015-0192 Publisher:Emerald Group Publishing Limited Copyright © 2016, Emerald Group Publishing Limited Related articlesWhy is the culture more crucial to hospitality organizations than manufacturing organizations?According to your textbook, why is culture more crucial to hospitality organizations than manufacturing organizations? Because the hospitality industry encounters unpredictable circumstances more frequently. According to your textbook, organizational culture is very important because it "fills the gaps".
What is the importance of organizational culture in the hospitality industry?Organizational Culture in the Hospitality Industry
The culture creates the environment in the organization and influences the nature of the long-term plans that move the organization toward its vision. Culture also dictates the policies and processes that enable the organization to live its mission every day.
How do we develop a good hospitality culture?Define Your Vision. Start by creating a brand vision for your property. ... . Hire the Right People. First and foremost, you want to hire the right people. ... . Communication and Transparency. ... . Empower Your Employees. ... . Reward Your Employees. ... . Identify Problems. ... . Open, Communal Spaces. ... . Organization Structure.. Which one of the following most accurately reflects the difference between strong cultures and weak cultures?Company values are more deeply held and widely shared in strong cultures than in weak cultures .
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