netrashetty
Netra Shetty
Organisational Structure of Aon Corporation : Aon Corporation (NYSE: AON) is a provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. It is based in the Aon Center in Chicago Loop Illinois, United States.[3] In July 2007, Aon Corp. was ranked as the world's second largest insurance broker.[4]
Aon was created in 1982, when the Ryan Insurance Group (founded by Pat Ryan in the 1960s) merged with the Combined Insurance Company of America (founded by W. Clement Stone in 1919). In 1987, that company was introduced to Wall Street as Aon, a Gaelic word meaning “oneness”. Combined Insurance was sold to ACE Limited in April 2008.
On August 22, 2008, Aon announced that it had acquired London-based Benfield Group. The acquiring price was US$1.75 billion or £935 million, with US$170 million of debt.[5] Today, the company is best known internationally as the principal sponsor of English football giant, Manchester United.[6][7]
On July 12, 2010, Aon announced that it has agreed to buy Lincolnshire, IL based Hewitt Associates for $4.9 billion in cash and stock
Organizations today operate in an environment characterized by hypercompetition (D’ Aveni 1995). While organizations strive to survive the challenges of the niche market they operate, different environmental factors came into surface and have changed the way organizations perform their tasks. In order to be successful, an organization needs to be able to compete effectively through its resources, capabilities, and strategies. Regardless of resources and strategies inherent to any organization, their structure plays a significant role and creates positive implications. Organizational structure affects how managers and leaders perform their given duties particularly on decision making (Schilling & Steensma, 2001). It also determines the way of doing tasks by integrating organizational strategies (Jenster and Hussey, 2001; Donaldson, 1997). As recognized by numerous literatures, effective structure provides stability and outstanding business performance.
2
CEO
Gregory Case
Chairman of the Board
Lester Knight
6
Director
Michael Losh
2
Director
Gloria Santona
3
Director
Fulvio Conti
Director
Jan Kalff
6
Director
Richard Myers
2
Director
Eden Martin
2
Director
Richard Notebaert
6
Director
Andrew McKenna
14
Director
John Rogers
3
Director
Carolyn Woo
7
Director
Robert Morrison
2
Director
Edgar Jannotta
Insurance Services
JT
3
Risk Management Services
Stephen McGill
Consulting
KH
Aon Consulting, Aon Benfield
BD
30
United Kingdom
Robert Brown
2
Asia Pacific
Bernard Fung
Aon Benfield, Aon Consulting
AA
Europe Middle East & Africa
Roelof Hendriks
CFO
Christa Davies
Treasurer
PH
Legal
PL
3
Finance & Administration
David Bolger
Strategy
GB
Risk Management Services
TD
2
Marketing & Communication
Philip Clement
Engineering
AS
Affairs
DP
Combined Insurance Company o...
DW
Agency Specialty Product Net...
PB
2
Aon Re Global.
Michael O'Halleran
Control
Laurel Meissner
Human Resources
JF
Advisor to CEO
RR
In many hotels, the accounting department combines staff functions
and line functions, or those functions directly responsible for servicing
guests. The accounting department’s traditional role is recording
financial transactions, preparing and interpreting financial statements,
HUMAN RESOURCES
DEPARTMENT
ACCOUNTING
DEPARTMENT
MARKETING AND
SALES DEPARTMENT
36 Chapter 2 Organizational Structure
and providing the managers of other departments with timely reports
of operating results (line functions). Other responsibilities, carried out
by the assistant controller for finance, include payroll preparation, accounts
receivable, and accounts payable (staff functions).
Another dimension of the accounting department’s responsibilities
deals with various aspects of hotel operations, cost accounting, and
cost control throughout the hotel. The two areas of central concern
to the accounting department are rooms and food and beverage. The
accounting department’s front office cashier is responsible for tracking
all charges to guest accounts. At the close of each business day,
which varies by hotel but typically occurs at midnight or after the bulk
of guests’ transactions have been completed (i.e., check-in, restaurant
charges, retail charges, etc.), the night auditor is responsible for reconciling
all guest bills with the charges from the various hotel departments.
Although the front office cashier and the night auditor
physically work at the front desk and, in the case of the cashier, have
direct contact with guests, they are members of the accounting department
and report to the assistant controller of operations.
The food and beverage department may be responsible for food
preparation and service, but the accounting department is responsible
for collecting revenues. The food and beverage controller and the
food and beverage cashiers keep track of both the revenues and expenses
of the food and beverage department. The food and beverage
controller’s job is to verify the accuracy and reasonableness of all food
and beverage revenues.
In addition to tracking and preparing daily reports on the costs of
the food and beverages used in the hotel, in many cases the accounting
department is also responsible for purchasing and storeroom operations.
Finally, the director of systems is responsible for designing
the accounting and control systems used throughout the hotel. As you
can see, the accounting department is anything but a passive staff unit
contending with routine recordkeeping. The accounting department
is also responsible for collecting and reporting most of a hotel’s operational
and financial statistics, which provide important data for decision
making and budget preparation purposes. The head of the accounting
department may report not only to the hotel’s general
manager but also to the hotel chain’s financial vice president or to the
hotel’s owner. The reason for this dual responsibility and reporting relationship
is to afford the hotel corporation an independent verification
of the financial and operating results of the hotel.
In addition to being in charge of overseeing all of the departments
that we have discussed, the hotel’s general manager (GM) is responsi-
GENERAL
MANAGER
Patterns of Authority 37
ble for defining and interpreting the policies established by top management.
The general manager serves as a liaison to the hotel’s owner
or corporate parent, sets (or communicates) the overall strategic
course of the hotel, sets hotel-wide goals, coordinates activities between
departments, and arbitrates interdepartmental disputes. It is common
practice in a large, full-service hotel for a director of public relations
to report directly to the GM. The GM also has corporate-level responsibilities,
participates on civic boards and committees, and engages
in industry-related activities such as serving on the local tourism commission
or hotel-motel association.
In addition to possessing a high level of technical skill (i.e., a thorough
understanding of each operating department in the hotel), the
general manager must also be decisive, analytical, and skilled with both
computers and people. He or she must be able to see the big picture
and how all of the parts of the hotel fit into the overall organization.
An executive may be promoted to relieve the general manager of some
operational duties. This is often accomplished by elevating the duties
and responsibilities of one particular department head without relieving
that person of regular departmental duties. The title of this position
is usually resident manager. It is quite common (and logical) for
the general manager to select the manager of the rooms department
to be resident manager. Responsibilities of the resident manager include
serving as acting GM in the GM’s absence, representing the GM
on interdepartmental hotel committees, and taking responsibility for
important special projects such as major hotel renovations, VIP guests,
and operating reports that require in-depth analysis for the regional
or corporate offices.
Aon was created in 1982, when the Ryan Insurance Group (founded by Pat Ryan in the 1960s) merged with the Combined Insurance Company of America (founded by W. Clement Stone in 1919). In 1987, that company was introduced to Wall Street as Aon, a Gaelic word meaning “oneness”. Combined Insurance was sold to ACE Limited in April 2008.
On August 22, 2008, Aon announced that it had acquired London-based Benfield Group. The acquiring price was US$1.75 billion or £935 million, with US$170 million of debt.[5] Today, the company is best known internationally as the principal sponsor of English football giant, Manchester United.[6][7]
On July 12, 2010, Aon announced that it has agreed to buy Lincolnshire, IL based Hewitt Associates for $4.9 billion in cash and stock
Organizations today operate in an environment characterized by hypercompetition (D’ Aveni 1995). While organizations strive to survive the challenges of the niche market they operate, different environmental factors came into surface and have changed the way organizations perform their tasks. In order to be successful, an organization needs to be able to compete effectively through its resources, capabilities, and strategies. Regardless of resources and strategies inherent to any organization, their structure plays a significant role and creates positive implications. Organizational structure affects how managers and leaders perform their given duties particularly on decision making (Schilling & Steensma, 2001). It also determines the way of doing tasks by integrating organizational strategies (Jenster and Hussey, 2001; Donaldson, 1997). As recognized by numerous literatures, effective structure provides stability and outstanding business performance.
2
CEO
Gregory Case
Chairman of the Board
Lester Knight
6
Director
Michael Losh
2
Director
Gloria Santona
3
Director
Fulvio Conti
Director
Jan Kalff
6
Director
Richard Myers
2
Director
Eden Martin
2
Director
Richard Notebaert
6
Director
Andrew McKenna
14
Director
John Rogers
3
Director
Carolyn Woo
7
Director
Robert Morrison
2
Director
Edgar Jannotta
Insurance Services
JT
3
Risk Management Services
Stephen McGill
Consulting
KH
Aon Consulting, Aon Benfield
BD
30
United Kingdom
Robert Brown
2
Asia Pacific
Bernard Fung
Aon Benfield, Aon Consulting
AA
Europe Middle East & Africa
Roelof Hendriks
CFO
Christa Davies
Treasurer
PH
Legal
PL
3
Finance & Administration
David Bolger
Strategy
GB
Risk Management Services
TD
2
Marketing & Communication
Philip Clement
Engineering
AS
Affairs
DP
Combined Insurance Company o...
DW
Agency Specialty Product Net...
PB
2
Aon Re Global.
Michael O'Halleran
Control
Laurel Meissner
Human Resources
JF
Advisor to CEO
RR
In many hotels, the accounting department combines staff functions
and line functions, or those functions directly responsible for servicing
guests. The accounting department’s traditional role is recording
financial transactions, preparing and interpreting financial statements,
HUMAN RESOURCES
DEPARTMENT
ACCOUNTING
DEPARTMENT
MARKETING AND
SALES DEPARTMENT
36 Chapter 2 Organizational Structure
and providing the managers of other departments with timely reports
of operating results (line functions). Other responsibilities, carried out
by the assistant controller for finance, include payroll preparation, accounts
receivable, and accounts payable (staff functions).
Another dimension of the accounting department’s responsibilities
deals with various aspects of hotel operations, cost accounting, and
cost control throughout the hotel. The two areas of central concern
to the accounting department are rooms and food and beverage. The
accounting department’s front office cashier is responsible for tracking
all charges to guest accounts. At the close of each business day,
which varies by hotel but typically occurs at midnight or after the bulk
of guests’ transactions have been completed (i.e., check-in, restaurant
charges, retail charges, etc.), the night auditor is responsible for reconciling
all guest bills with the charges from the various hotel departments.
Although the front office cashier and the night auditor
physically work at the front desk and, in the case of the cashier, have
direct contact with guests, they are members of the accounting department
and report to the assistant controller of operations.
The food and beverage department may be responsible for food
preparation and service, but the accounting department is responsible
for collecting revenues. The food and beverage controller and the
food and beverage cashiers keep track of both the revenues and expenses
of the food and beverage department. The food and beverage
controller’s job is to verify the accuracy and reasonableness of all food
and beverage revenues.
In addition to tracking and preparing daily reports on the costs of
the food and beverages used in the hotel, in many cases the accounting
department is also responsible for purchasing and storeroom operations.
Finally, the director of systems is responsible for designing
the accounting and control systems used throughout the hotel. As you
can see, the accounting department is anything but a passive staff unit
contending with routine recordkeeping. The accounting department
is also responsible for collecting and reporting most of a hotel’s operational
and financial statistics, which provide important data for decision
making and budget preparation purposes. The head of the accounting
department may report not only to the hotel’s general
manager but also to the hotel chain’s financial vice president or to the
hotel’s owner. The reason for this dual responsibility and reporting relationship
is to afford the hotel corporation an independent verification
of the financial and operating results of the hotel.
In addition to being in charge of overseeing all of the departments
that we have discussed, the hotel’s general manager (GM) is responsi-
GENERAL
MANAGER
Patterns of Authority 37
ble for defining and interpreting the policies established by top management.
The general manager serves as a liaison to the hotel’s owner
or corporate parent, sets (or communicates) the overall strategic
course of the hotel, sets hotel-wide goals, coordinates activities between
departments, and arbitrates interdepartmental disputes. It is common
practice in a large, full-service hotel for a director of public relations
to report directly to the GM. The GM also has corporate-level responsibilities,
participates on civic boards and committees, and engages
in industry-related activities such as serving on the local tourism commission
or hotel-motel association.
In addition to possessing a high level of technical skill (i.e., a thorough
understanding of each operating department in the hotel), the
general manager must also be decisive, analytical, and skilled with both
computers and people. He or she must be able to see the big picture
and how all of the parts of the hotel fit into the overall organization.
An executive may be promoted to relieve the general manager of some
operational duties. This is often accomplished by elevating the duties
and responsibilities of one particular department head without relieving
that person of regular departmental duties. The title of this position
is usually resident manager. It is quite common (and logical) for
the general manager to select the manager of the rooms department
to be resident manager. Responsibilities of the resident manager include
serving as acting GM in the GM’s absence, representing the GM
on interdepartmental hotel committees, and taking responsibility for
important special projects such as major hotel renovations, VIP guests,
and operating reports that require in-depth analysis for the regional
or corporate offices.
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