organisational principles final(2)

8/8/2019 Organisational Principles Final(2)

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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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organisational principles final(2)

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