Topics: Organization, Organizational studies, Game theory Pages: 14 (2806 words) Published: February 13, 2015

Gary W. Mullings
Wilmington University

Author Note
Gary W. Mullings, MBA with a Concentration in Management Information Systems, Wilmington University. Correspondence vis-à-vis this article should be addressed to Gary W. Mullings, 1025 N. Madison Street, Wilmington, DE 19801. E-mail:


The subject for observation in this case study is The Plaza Inn (the company), a hospitality entity located in Kansas City, KS a franchise member of a French hotel affiliate group called Relais & Chateaux. The company is a 50-room hotel in operation since the 1920’s owned by two entrepreneurs, 20 limited partners and run by a single general manager. It’s a fantastic hotel with a rich European history, the history of which could come to an untimely end as the company is currently in a stage of decline. The company needs solutions to the many issues perplexing management. These issues must be resolved or the company faces possible dissolution. This analysis will examine the design and structure of the company within the context of the various contingency factors, such as strategy, environment and technology. Recommendations of changes needed to the organizational design and inter-departmental structure that could be used to remedy the issues of the organization will be identified.

According to Daft, L. R. (2012, p.12), an organization is a “social entity that is goal-directed, designed as deliberately structured and coordinated to perform specific activity and is linked to the external environment. An organization is not a building or a set of policies and procedures; organizations are made up of people and their relationships with one another.” Based on this it is safe to say that organizations play a vital role in human society. Every day people have to interact in an organization to achieve a specific goal. The goals and size of every organization will be different but all will have one thing in common, they all must conform to an identifiable organizational structure that is clearly defined and adhered to by the people within the organization or face possible dissolution. The Plaza Inn case study gives a brief description of an organization. It is an organization whose main purpose is to provide hospitality accommodations to business and leisure guests. It is facing possible decline after a period of substantial growth. There are many issues causing the company to be in this situation. These issues stem from their organizational structure which must be redesigned if they are to survive dissolution.

There are many complexities and principles that can be examined when creating the structural design of a company. For succinctness of this analysis all the different principles and possible recommendations that can help solve the design downfalls of a company in decline will not be examined. This analysis will only focus on three issues the company faces and three possible recommendations the company can use to turn around its fortunes.

In general terms, the external environment of an organization consists of an infinite number of factors outside the organization. To be more concise, this environment consists of factors outside the organization that has an effect on its survival both directly and indirectly. Direct factors are grouped into the categories Task and International Environment, while indirect factors are grouped into a category called the General Environment. Every organization will have to contend with different factors depending on its purpose, but all these can be grouped into ten main categories that generally affect all organizations:...

References: Daft, L. R. (2012). Organization Theory & Design 11e. Mason, OH: SOUTH-WESTERN, Cengage Learning.
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