Organizational culture and green management: innovative way ahead in hotel industry

Abstract

Purpose

The purpose of this paper is to identify perspective and feasible combinations of the existing revenue-driven methods with still more pervasive features of knowledge-based management and green management in hotel industry. The authors believe that the key path to success is in even closer, that is, daily personal orientation on customers, specifically on their satisfaction in both functional and emotional dimensions.

Design/methodology/approach

A research prototype of competitiveness modelling framework can be fully implemented in accordance with the methodology, proposed by Mitroff and Kilmann (1978). The key output of our conceptual modelling stage was causal loop diagram, showing relations among internal variables and determining overall dynamics of analyzed problem. In the implementation phase, the authors adopted system dynamics (SD) paradigm, which composes system behaviour from parametrically adjustable temporal accumulation of levels of internal resources. These resources (stocks) can be both quantitative (money, employees, services) and qualitative (trust, motivation, quality). After parameterization and validation, SD models are used for the analysis of real-world situations.

Findings

With the resultant interactive SD model, the authors designed and tested several scenarios, comparing the purely revenue-oriented hotel management with its customers-oriented and organizational knowledge-supported enhancement. The authors’ experiments showed that the proposed extension can contribute to the overall performance up to 15 per cent. According to the experimental findings, the primary reasons for the improvement are higher ratio of regularly returning customers and improved efficiency of internal processes as a result of continuous organizational learning.

Originality/value

So far, hotel managers use mainly simple analytic and planning tools, which cannot cover the practical complexity of surrounding market and internal processes. In comparison with purely revenue-based principles, advanced managerial practices, considering also qualitative and human-related matters, require additional viewpoints. The authors enhanced the hospitality domain with the introduction of dynamic hypotheses – feasible explanations of temporal behaviour of complex structures.

Citation

Scholz, P. and Voracek, J. (2016), "Organizational culture and green management: innovative way ahead in hotel industry", Measuring Business Excellence, Vol. 20 No. 1, pp. 41-52. https://doi.org/10.1108/MBE-12-2015-0057