Organizational assessment of a family owned hotel business as basis for organizational development intervention: An action research

• Main Author: Legaspi, Portia Fidelis C.
• Format: text
• Language: English
• Published: Animo Repository 2005
• Subjects: Organizational change; Family-owned business enterprises—Philippines; Hotels—Philippines; Industrial and Organizational Psychology
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6686; https://animorepository.dlsu.edu.ph/context/etd_masteral/article/12801/viewcontent/CDTG003876_P.pdf
• Institution: De La Salle University

With the family business as its setting, this action research was undertaken with the aim of proposing organizational development interventions in order to address the organizational issues in Ruperto’s Inland Resort. This action research used the perceptions of the representatives of the family (owners) and the employees of the company. In order to gather data on their perception on the seven organizational variables: purpose, structure, leadership, relationship, rewards, helpful mechanisms, and attitude to change at the case company, both representatives of the family (owners) and the employees were asked to answer a survey questionnaire. The participants in the survey were twenty three (23) rank and file employees, three duty managers and the general manager, and six representatives of the family (owners). To gather perceptions of employees, the Organizational Diagnosis Questionaire of Robert Preziosi was administered. The questionnaire focused on the seven organizational variables: purpose, structure, leadership, relationship, rewards, helpful mechanisms, and attitude to change. It has a seven (7) point Likert scale indicating the degree of agreement for each item. The results of the survey from the responses of 23 rank and file and supervisory employees showed favorable perception on purpose, structure, leadership, relationship, rewards, helpful mechanisms, and attitude to change. Similarly, the responses of 3 duty managers and the general manager showed favorable perception on the selected organizational variables. To gather perception of the family (owners) the Family Business Survey Questionnaire was administered to the representatives of the family (owners). This is a survey questionnaire which included the seven organizational variables of the study. The group showed unfavorable perception on six organizational areas namely; purpose, leadership, relationship, rewards, helpful mechanisms, and attitude to change. The only organizational variable that received favorable perception was Structure. In order to confirm the consistency of results gathered from the questionnaires, and identify the organizational issues related to each of the variables, two (2) focus group discussions were held: one for the employees and another one for the representatives of the family (owners). It also helped in exploring the organizational issues both from the perception of the employees and the representatives of the family (owners). A combined focus group discussion participated in by both groups was held to recommend organizational development interventions. The results of the focus group discussions validated the results of the survey. The favorable employee feedback on the survey indicated acceptance of prevailing conditions and they also appreciate the chance of employment and the commensurate compensation they receive. The focus group discussion further explored feasible organizational development effort on the seven organizational variables. Eventually, it revealed the organizational issues namely: purpose - varied responses; structure – favorable response and no issues were indicated; leadership – no defined level of authority; social relationships – presence of intrigues and rumors and existence of aggressive employees who are owner’s confidantes; rewards – unfair administration of incentives; helpful mechanisms – no consistence implementation of policies and presence of “kamag-anak” and “ bata-bata” systems and attitude to change – resistant attitude. The result of the Focus Group Discussion elicited the following recommended organizational development interventions on each of the organizational variable: purpose – strategic planning; leadership – seminars on Management Styles for top management; social relationship – fulltime direct supervision of top management, the use of web-based monitoring devises , work value and human relations seminars for employees, employee relations committee, rewards – guidelines on wage, and salary administration, helpful mechanisms – council of subsystems, attitude towards change – increase employee participation. The results of the study showed characteristics of Ruperto’s Inland Resort as a family owned business. It has organizational issues prevalent to this type of organization. The family (owners) awareness of this situation and their felt need to change is an opportunity for a planned change. In careful consideration of the nature of family businesses, the researcher recommends the following interventions for the company: Strategic Planning using the Parallel Planning Process, Management Development Program on Centered Family Business leadership style, Council on Good Governance, Human Resource Management System on Performance Management and Performance based Reward System and Employee Relations Committee.