Fig. 1 shows part of the organisation chart used by an independent business that operates city-centre hotels. The business is considering adding two new hot...
Question 1 Report
Fig. 1 shows part of the organisation chart used by an independent business that operates city-centre hotels. The business is considering adding two new hotels because customers have increased. The Operations Manager wants employees to know who they report to and to reduce delays when customers make complaints. A manager at Premier Inn has suggested that the business should review its span of control before choosing this option.
(a) Define the term organisation chart. [2]
(b) State three reasons why the hotel business uses the chart in Fig. 1. [3]
(c) Calculate the span of control of each Hotel Manager shown in Fig. 1. [5]
(d) Analyse whether the Operations Manager should keep this hierarchical structure as the business opens the two new hotels. [10]
Answer Details
(a) An organisation chart is a diagram showing job positions in a business and the reporting relationships or levels of authority between them. [2]
(b) The chart shows employees who their immediate manager is, clarifies the chain of command and helps allocate duties. It can also identify vacant posts and help communication flow. Any three. [3]
(c) Each Hotel Manager directly supervises 6 reception employees and 4 cleaning employees.
\[6+4=10\]
Therefore, each Hotel Manager has a span of control of 10 employees. [5]
(d) Retaining hotel managers gives each new hotel clear leadership and accountability for customer service. Managers can make routine decisions locally, which may maintain consistent standards and reduce pressure on the Operations Manager.
However, opening two more hotels increases the Operations Manager's direct reports from three to five. This wider span may make monitoring harder. Communication can also be slower when messages pass through several levels. A wider structure may reduce management costs, but inexperienced employees may need closer support.
A sensible judgement is to retain hotel managers, but appoint an area manager if expansion makes direct control by the Operations Manager difficult. [10]
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