netrashetty
Netra Shetty
Amy's Kitchen is a privately held corporation which began operation in 1987, with the purpose of making healthy, organic, and easy-to-prepare frozen food. Owned and run by Andy and Rachel Berliner, Amy's Kitchen took its name from their then-newborn daughter. The company employs over 1,500 people and operates processing plants located in Santa Rosa, California and White City, Oregon. The corporate headquarters is now located in Petaluma, California.
Both proprietors had been long involved in the organic food business; Rachel's family had been growing and advocating organic vegetables and fruits since the 1950s, while Andy was formerly the president and majority shareholder of the Magic Mountain Herb Tea company. Because Amy's Kitchen is a private entity, reports of its annual earnings are not public knowledge.
CEO
Michiel Goris
Chairman of the Board
Lars Kramer
Director
Gunther Strothe
Director
Marcus Wolsdorf
Director
Robert Haselsteiner
2
Vice Chairwoman of the Board
Carina Szpilka
General Manager
MM
General Manager
BP
CFO
Joerg Utecht
The delegation of authority creates a chain of command, the formal
channel that defines the lines of authority from the top to the bottom
of an organization. As shown in Figure 2–2, the chain of command
consists of a series of relationships from the highest position in the organization
to the lowest. The chain of command specifies a clear reporting
relationship for each person in the organization and should
be followed in both downward and upward communication. Following
the chain of command enables each new employee, no matter what
his or her position, to know exactly for whom and to whom he or she
is responsible.
RESIDENT
MANAGER
Figure 2–2 Chain of Command
38 Chapter 2 Organizational Structure
When designing an organizational structure, managers must consider
the distribution of authority. Defined simply, authority is the organizationally
sanctioned right to make a decision. Authority can be
distributed throughout an organization or held in the hands of a few
select employees. Decentralization is the process of distributing authority
throughout an organization. In a decentralized organization,
an organization member has the right to make a decision without obtaining
approval from a higher-level manager. Centralization is the retention
of decision-making authority by a high-level manager.
Traditionally, hotel and lodging management has been very centralized,
probably due to its roots in small, owner-operated lodging. In
recent years, as the hotel and lodging industry has expanded, decentralization
has become a more frequent style of operation.
Decentralization has several advantages. Managers are encouraged
to develop decision-making skills, which help them advance in their
careers. The autonomy afforded by this style of operation also increases
job satisfaction and motivation. When employees are encouraged to
perform well, the profitability of the organization increases.
Many hotel and lodging organizations have begun to empower employees
and supervisors to make decisions that typically have been
made by managers. One example that we have already discussed is the
use of the quality circle. For example, if a front desk agent determines
that a guest’s bill is incorrect, in a decentralized organization the agent
has the power to make the correction immediately. If that same front
desk agent determines that a guest’s stay has been unsatisfactory, he
or she has the power to reduce the guest’s bill by an amount previ-
Board of Directors
General Manager
Resident Manager
Rooms Division Manager
Front Office Manager
Front Desk
Agent
Courtesy
Van Driver
Bell
Captain Concierge Doorman Auto Valet
Span of Control 39
ously specified by management. Additional challenges, control of the
process, and quality assessment become part of everyone’s job, and
each employee is given the authority to take positive actions that will
lead to high quality and improved performance.6
SPAN OF CONTROL
Span of control refers to the number of people who report to one
manager or supervisor. A wide span of control results in a flat organization—
that is, a large number of employees reporting to one supervisor
(see Figure 2–3a). A narrow span of control results in a tall organization,
in which a small number of employees report to a
supervisor, necessitating a larger number of supervisors (see Figure
2–3b). (Note that the organizations represented in Figures 2–3a and
2–3b have the same number of employees.) No formula exists for determining
the ideal span of control. The following factors determine
the most appropriate span of control: task similarity, training and professionalism,
task certainty, frequency of interaction, task integration,
and physical dispersion.
When a large number of employees perform similar tasks, the span
of control can be increased. When the employees perform very different
tasks, the supervisor must give each subordinate more individual
attention in order to keep in touch with the different types of tasks;
this requires a narrower span of control. For example, the rooms department
manager might easily manage the front desk agents and
housekeepers until the brand standards for check-in or checkout of a
guest increase in complexity and the standards for the various types of
rooms and their cleaning procedure increase in detail. At this time,
the rooms department manager’s span of control must be narrowed.
The better trained and more skilled a subordinate is, the less supervision
is required. For example, a front desk agent might require
a higher level of training and skill than a room service waiter. Thus, a
front desk supervisor can supervise more employees (wider span of
control) than the room service supervisor (narrower span of control).
Task certainty refers to the predictability of a task. Routine tasks
allow management to devise standard procedures for subordinates to
follow, minimizing questions about the job and widening the span of
control. On the other hand, close supervision is called for when tasks
are ambiguous and uncertainty is great. For example, the task of checking
a guest in or out of the hotel can be documented and standard
procedures can be created, so the front desk manager can have a relc02.
40 Chapter 2 Organizational Structure
atively wide span of control over the front desk agents. However, because
of the diversity of customers the sales manager encounters, the
tasks of a hotel sales manager are less certain. The director of sales is
responsible for coaching the sales managers, observing sales calls, and
ensuring deal closings; these tasks require a hands-on approach that
limits the number of employees the director of sales can handle, narrowing
the span of control.
Both proprietors had been long involved in the organic food business; Rachel's family had been growing and advocating organic vegetables and fruits since the 1950s, while Andy was formerly the president and majority shareholder of the Magic Mountain Herb Tea company. Because Amy's Kitchen is a private entity, reports of its annual earnings are not public knowledge.
CEO
Michiel Goris
Chairman of the Board
Lars Kramer
Director
Gunther Strothe
Director
Marcus Wolsdorf
Director
Robert Haselsteiner
2
Vice Chairwoman of the Board
Carina Szpilka
General Manager
MM
General Manager
BP
CFO
Joerg Utecht
The delegation of authority creates a chain of command, the formal
channel that defines the lines of authority from the top to the bottom
of an organization. As shown in Figure 2–2, the chain of command
consists of a series of relationships from the highest position in the organization
to the lowest. The chain of command specifies a clear reporting
relationship for each person in the organization and should
be followed in both downward and upward communication. Following
the chain of command enables each new employee, no matter what
his or her position, to know exactly for whom and to whom he or she
is responsible.
RESIDENT
MANAGER
Figure 2–2 Chain of Command
38 Chapter 2 Organizational Structure
When designing an organizational structure, managers must consider
the distribution of authority. Defined simply, authority is the organizationally
sanctioned right to make a decision. Authority can be
distributed throughout an organization or held in the hands of a few
select employees. Decentralization is the process of distributing authority
throughout an organization. In a decentralized organization,
an organization member has the right to make a decision without obtaining
approval from a higher-level manager. Centralization is the retention
of decision-making authority by a high-level manager.
Traditionally, hotel and lodging management has been very centralized,
probably due to its roots in small, owner-operated lodging. In
recent years, as the hotel and lodging industry has expanded, decentralization
has become a more frequent style of operation.
Decentralization has several advantages. Managers are encouraged
to develop decision-making skills, which help them advance in their
careers. The autonomy afforded by this style of operation also increases
job satisfaction and motivation. When employees are encouraged to
perform well, the profitability of the organization increases.
Many hotel and lodging organizations have begun to empower employees
and supervisors to make decisions that typically have been
made by managers. One example that we have already discussed is the
use of the quality circle. For example, if a front desk agent determines
that a guest’s bill is incorrect, in a decentralized organization the agent
has the power to make the correction immediately. If that same front
desk agent determines that a guest’s stay has been unsatisfactory, he
or she has the power to reduce the guest’s bill by an amount previ-
Board of Directors
General Manager
Resident Manager
Rooms Division Manager
Front Office Manager
Front Desk
Agent
Courtesy
Van Driver
Bell
Captain Concierge Doorman Auto Valet
Span of Control 39
ously specified by management. Additional challenges, control of the
process, and quality assessment become part of everyone’s job, and
each employee is given the authority to take positive actions that will
lead to high quality and improved performance.6
SPAN OF CONTROL
Span of control refers to the number of people who report to one
manager or supervisor. A wide span of control results in a flat organization—
that is, a large number of employees reporting to one supervisor
(see Figure 2–3a). A narrow span of control results in a tall organization,
in which a small number of employees report to a
supervisor, necessitating a larger number of supervisors (see Figure
2–3b). (Note that the organizations represented in Figures 2–3a and
2–3b have the same number of employees.) No formula exists for determining
the ideal span of control. The following factors determine
the most appropriate span of control: task similarity, training and professionalism,
task certainty, frequency of interaction, task integration,
and physical dispersion.
When a large number of employees perform similar tasks, the span
of control can be increased. When the employees perform very different
tasks, the supervisor must give each subordinate more individual
attention in order to keep in touch with the different types of tasks;
this requires a narrower span of control. For example, the rooms department
manager might easily manage the front desk agents and
housekeepers until the brand standards for check-in or checkout of a
guest increase in complexity and the standards for the various types of
rooms and their cleaning procedure increase in detail. At this time,
the rooms department manager’s span of control must be narrowed.
The better trained and more skilled a subordinate is, the less supervision
is required. For example, a front desk agent might require
a higher level of training and skill than a room service waiter. Thus, a
front desk supervisor can supervise more employees (wider span of
control) than the room service supervisor (narrower span of control).
Task certainty refers to the predictability of a task. Routine tasks
allow management to devise standard procedures for subordinates to
follow, minimizing questions about the job and widening the span of
control. On the other hand, close supervision is called for when tasks
are ambiguous and uncertainty is great. For example, the task of checking
a guest in or out of the hotel can be documented and standard
procedures can be created, so the front desk manager can have a relc02.
40 Chapter 2 Organizational Structure
atively wide span of control over the front desk agents. However, because
of the diversity of customers the sales manager encounters, the
tasks of a hotel sales manager are less certain. The director of sales is
responsible for coaching the sales managers, observing sales calls, and
ensuring deal closings; these tasks require a hands-on approach that
limits the number of employees the director of sales can handle, narrowing
the span of control.
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