organisational principles final(2)
TRANSCRIPT
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SUBMITTED BY:
ANUJ KUMAR ASHISH ACHARYA
ATUL MAHAJAN AMIT GARG
ANCHAL VOHRA MILANPREET BAKSHI
LM THAPAR SCHOOL OF MANAGEMENT
THAPAR UNIVERSITY
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CONTENTSCONTENTS
Traditional / Modern Organizations
Brief overview of TAJ Groups and Lemon Tree Hotels
Parameters of Comparison
Organizational Structure
Organizational Culture
Conclusion
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y Founded in 1903.
y Opened its first hotel, The Taj Mahal Palace & Tower, Mumbai
y One of Indias top luxury hotel chains.
y Spanning 52 destinations in 12 countries across 5 continents.
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y The Taj Group has been active in converting former royal palace inIndia into world class luxury hotels .
y the Taj Group opened India's first international five star deluxe
beach resort, the Fort Aguada Beach Resort in Goay In 1980, the Taj Group took its first step internationally by
opening its first hotel outside India .
Taj Sheba Hotel in Sana'a
y
The Taj Group continued to expand its geographicand marketcoverage in India.
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y Founded in 2004.
y Indias first, largest and finest chain of moderately priced,
business and leisure hotels.
y Under the current inventory 11 are in operation and 9 are under
construction.y The Lemon Tree group of hotels is a relatively new entrant,
but has grown at a rapid rate.
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y Lemon Tree Hotels offers value for money to business andleisure travelers through its upscale.
y At Lemon Tree, for each function the Head of the functiondefines the strategyand approach.
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y Organizational Structure
y Organizational culture
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y An organizational structure is a mainlyhierarchicalconcept of subordination of entities that collaborateand contribute to serve one common aim.
y Organizational culture is an idea in the field ofOrganizational studies and managementwhichdescribes the psychology, attitudes, experiences,
beliefs and values (personal and cultural values) ofanorganization.
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y Centralized versus Decentralized.
y Authority hierarchy control.
y Outsourcing of operations.
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Lemon Tree - De-centralized
Norms set for regional divisions.
Decisions taken by individuals at separate locations.
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TAJ Groups - Centralized
Shows more vision and direction from senior executives.
.
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At Taj Hotels -Strict policy regarding communication and
decision making.
Slower process, as final approvals need to be given from
Head Office.
At Lemon Tree Hotels the head of a function at regional
level specifies approach and strategy.
The process is simpler and the decision making is at afaster pace.
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Aims at reducing operational costs.
Helps management to concentrate on core activities.
Lemon Tree outsources IT operations to Tata
Communications.
The Taj Group developed its own IT infrastructure.
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TurnoverTurnover
CommitmentCommitment
ProductivityProductivity
MetamorphosisMetamorphosisEncounterEncounterPre arrivalPre arrival
Socialization Process
Outcomes
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Artifacts-The Taj tries to bring in a bit of heritage and culture
into its interiors whereas at Lemon Tree the walls are bright,vibrant and convey thoughtful and hilarious messages to
guests.
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Gestures-
The Taj being more traditional, greets guests in a more formalmanner whereas at Lemon Tree staff are more engaging and
make for a slightly more interactive nature.
Not surprisingly, they say that being at a Lemon Tree Hotel
is like being offered a tall glass of icy cold lemonade after
hours of traipsing through the hot and dry desert!
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y Innovation and risk taking. The degree to which employees
are encouraged to be innovative and take risks.
y Outcome orientation. The degree to which management
focuses on results or outcomes rather than on technique and
process.
y People orientation. The degree to which management
decisions take into consideration the effect of outcomes on
people within the organization.
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Team orientation. The degree to which work activities are
organized around teams rather than individuals.
Aggressiveness. The degree to which people are aggressive
and competitive rather than easygoing.
Stability. The degree to which organizational activities
emphasize maintaining the status quo in contrast to growth.
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FACTORS TAJHOTELS LEMONTREEHOTELS
Innovation and risktaking
LOW HIGH
Outcome orientation MODERA TE HIGH
People orientation LOW HIGH
Team orientation LOW HIGH
Stability HIGH LOW
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Sche
in
Example-
Modes of communication between employees
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In Scheins view these more or less form the organizations
culture
Companys relationship with environment
Aspects of human behavior
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y The Taj has been successful over a long period of time. The
Taj has a much tighter approach to operations and strategy in
general.
y Lemon Tree group is only 5 years old and it is too early toforecast if they can sustain their early momentum. Being de-
centralized and quick on their feet is what they believe in.
y On the whole we can infer that the company that adapts
itself the best to market conditions and customer needs willsucceed.
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y Centralization and Decentralization, Culture Levels by
Edgar Schein, www.12manage.com
y The Indian Hotels Company, www.tata.com
y www.tajhotels.com
y www.lemontreehotels.com
y Art and Culture of Varanasi, www.varanasicity.com
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