Organizational alignment and hospitality firm performance

Abstract

PurposeHospitality organizations, whether large or small, are complex entities requiring managers to work through frontline employees to manage every guest's moment of truth and meet their firms' goals and objectives. This study aims to test propositions that firms whose staffing policies and systems are aligned with their strategic goals and objectives to outperform those firms with poorer organizational alignment.Design/methodology/approachData were collected through a survey administered in winter of 2005 to 200 hourly wage employees from each of four matched hotels. Some 479 completed surveys were returned yielding a 59 percent response rate.FindingsBetween‐group differences in organizational alignment measures were statistically significant in the directions predicted. Specifically, subjects from the high organizational alignment hotels, on average, reported significantly higher organizational support, employee service commitment and employee satisfaction as compared to low organizational alignment properties.Research limitations/implicationsThe findings of this study provide a strong indication that the workplace environment is a concept that employees are aware of which in turn influences their commitment and satisfaction.Practical implicationsThis research provides managers with an assessment tool useful for ensuring that a firm is being effectively managed.