THE IMPACTS OF GLOBALISTION IN HOTEL INDUSTRY AND ITS NEGATIVE EFFECTS
In the 21st century , with the increasing levels of globalization in hotel industry, hotel companies will need to learn different management approaches to survive and develop in environmental circumstances with high levels of uncertainty as well as understand the implication of future impacts, both positive and negative, of the changing environment in which they operate. As international trade and business expand, there is no question that international linkage will become more important for the hotel industry. This project focuses on globalization in the hotel industry and explains how the increasing levels of globalization, in this particular industry may affect the internal operating environment (e.g. organizational culture, structure, management styles etc.) of hotel companies . ABSTRACT
INTRODUCTION Globalization has become part of everyday vocabulary. Every day we hear the term globalization on the news, read it in the papers, and overhear people talking about it . What is globalization? We have tried to focus on the effects of globalization in the hotel industry and find how the increasing levels of globalization has effected the industry. Globalization refers to the shift toward a more integrated and interdependent world economy
INCREASING LEVELS OF GLOBALISATION IN HOTEL INDUSTRY As international trade and business expanding, so there is no question that international linkage will become more important for the hotel industry. In the early stages, most hotels have received foreign guests at one time or another. Then, as the industry evolved, and with the development of technology and transportation systems, the industry's structure has become increasingly more complex with respect to scope, ownership, management and affiliation. There are many models including:
However, in terms of the number of rooms, chain hotels are the dominant sector. There were two main reasons why hotel chains began looking for opportunities to enter into the global marketplace. They are comparative advantages, especially in developing countries, and the overcapacity or saturation in their home markets. Unfortunately, hotel investment outside one’s home country incurs high risks with a wide range of environmental influences affecting organisational strategies and performance. Those environmental factors include
IMPACTS ON ORGANIZATIONAL CULTURES There is an often-told story of a person, new to a company, asking an experienced worker what an employee should do when a customer calls. The old-timer responds: In most organizations, the “Company Way” is derived from the CORPORATION’S CULTURE . Corporate culture is the collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted from one generation of employees to another , A strong culture can create the basis for a superior competitive position. When a hotel company makes a decision to invest outside its home country, it has to adjust more or less of its company’s culture to adapt to the cultural diversity in the new work environment. This new work environment thus becomes enriched by the multiple cultures. “There are three ways to do any job—the right way , the wrong way , and the company way . Around here, we always do things the COMPANY WAY
However such cultural diversity can also bring some negative effects, which can generally be attributed to individuals, and how they relate to difficulties arising from departmental concentration of minority ethnic groups , especially from language and cultural differences . But this kind of adjustment is not an easy task to fulfilL. Even for a domestic hotel, when businesspeople are all from the same culture and speak the same language, the actual construction of the facility can be difficult. The many interdependent players sometimes have...