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Over the past few decades, the hospitality industry has changed beyond recognition. Today hotels can satisfy any even the most demanding needs of their customers and in turn, clients have come to expect a very high standard of service from hotel companies. In this regard, hotel employees must focus on solving new problems and take differing approaches to the development and maintenance of the hotel infrastructure in such a competitive environment. Organizational culture has an impact on the hotel’s performance and therefore inherits responsibility for creating an effective business. The profit and success of the hotel is directly related to its corporate culture. (Kotter, 1992, pp.10-12). According to Kotter, it is important that the hotel management and their team of workers share common values. These values are transformed into norms of behavior and ultimately contribute towards improvement in the quality of services provided. Corporate culture leads towards joint efforts in solving any current or long-term problems.
The hotel industry is no different from any other in the way that the corporate culture of a hotel company directly influences its competitive positioning and helps to increase sales. Corporate culture is used as a tool to achieve the future goals of the hotel.
The successful operation of hotels depends on its employees. Kotler in his book ‘Marketing for Hospitality and Tourism’ writes: “The hospitality industry is unique in that employees are part of the product. The employees must be excited about the company that they work for and the products they sell”. For all companies operating in the service sector, the number one priority is to have customer-oriented employees. A friendly and approachable customer service offering twinned with in-depth, professional knowledge of all the hotel’s business processes is the golden standard that needs to be cultivated and encouraged. The current trend in the development of the hospitality industry is a concern for employee wellbeing, for the people who, ultimately, create the foundation of this industry. Therefore, it is especially important that the hospitality industry ensures every employee shares the same values and principles of corporate culture as the enterprise that employs them (Morrison, 2003, pp.287-288).
Another important feature of the corporate culture in hospitality is a focus on standards. The main objective of standards is for all hotel employees who share a similar job position to fulfil their duties equally and in line with the same set of standards. In this respect, corporate culture helps to deliver both the formal and informal value systems of an enterprise to its employees.
The hotel industry’s main focus is on providing higher quality services than their competitors. In order to win the custom of an individual over the competition's offerings, satisfying and even exceeding guest's expectations becomes pivotal (Kotler, 1999, pp.320-321).
Hotels with strong corporate cultures ensure their continued success as it helps them to become more competitive and efficient. A companies’ corporate culture, its strategic objectives and the values it offers, should be clear and visible to all its employees and its customers. It should allow companies not only to provide the highest quality service, but also to constantly develop upon their offerings. The success of hotels depends not only on them implementing a customer-oriented strategy, but also on them showing due care to their staff. After all, as Kotler said: “Satisfied employees create satisfied customers”.
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