The Complex and Dynamic Business Environments Essay

Administrations operate in complex and dynamic environments influenced by their organizational civilizations which can help or impede employees ‘ attempts to accomplish concern set ends. Kempinski Hotel San Lawrenz ( KHSL ) is a five-star resort based in Gozo, a little island portion of the Maltese archipelago, which sets the background for this survey probe. This paper aims to analyze the several organizational civilization at KHSL and critically evaluates it in regard of constructs, theories and theoretical accounts as presented by assorted research workers and faculty members on the capable affair. Furthermore, the paper assesses to what extent the current organizational civilization at KHSL supports the concern aims. It further efforts to urge how organizational civilization alterations can take to realignment towards the company ‘s concern aims. It is deserving adverting that the writer is as an ex-Manager of KHSL who has interviewed KHSL ‘s General Manager and both parts are the premier beginning of descriptive information on the company.

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Assignment Structure

The first subdivision of this paper presents the background scenario of the local touristry sector and the competitory environment in which KHSL has been runing in the last decennary, specifically within the touristry upmarket section. The company ‘s profile follows, which includes its relevancy to the German corporate concern civilization. The 2nd portion focuses on the theoretical facet of organizational civilization including a description of assorted constructs, theoretical accounts and theories and their relevancy to KHSL. Specifically, the paper assesses Schein ‘s theoretical attack to organizational civilization applied to KHSL. Furthermore, the Cultural Web theoretical account by Johnson et Al. is applied to the state of affairs at KHSL.

The rightness when using these two theoretical accounts is justified throughout the treatment. The 3rd portion of this probe highlights the relevancy of a mission statement towards a company ‘s aims. The paper farther demonstrates how the absence of such a mission statement at KHSL and its declared aims can make confusion in employees ‘ perceptual experiences on the company ‘s organizational civilization. Finally, an appraisal is made as to what extent the present organizational civilization is supportive to KHSL ‘s declared concern aims. Recommendations on how alterations in organizational civilization can take to the realignment of the company ‘s aims conclude this paper.

Background Scenario

Throughout the past decennaries, Maltese enterprisers have had the ability to develop and travel frontward the touristry industry ( Goutier 2008 ). The Maltese Government played an of import function in this sector by puting in infrastructural betterments and offering specific aid strategies for the Gozo industry ( Debono 2009 ). One can advert the recent betterment in handiness between Malta and Gozo by the debut of three new state-of-the-art ferries, cruise-liner disembarking installations and betterments in cultural sites. Furthermore, the Gozo Tourism Association stand foring the local tourer service suppliers gave fiscal aid to Gozitan concerns including KHSL.

However, the upmarket tourer sector in Gozo is confronting disputing times. Entree to the island is still limited to ferry and sea-plane services. This makes the 5-star hotel market section hard to perforate. In fact, out of three 5-star hotels which have been built in the past two decennaries, merely two remained operational, one of which is KHSL.

Company Profile

KHSL signifiers portion of the Kempinski Hotels, one of Europe ‘s upmarket cordial reception supplier established in Germany in 1897 ( Wittwer n.d ). High quality service is a cardinal characteristic of their corporate civilization. This is backed by the rapid unannounced enlargement of the concatenation of hotels across all continents except Australia.

KHSL is located in the bantam small town of San Lawrenz, which is found on the far west wing of Gozo ( island ) and covers an country of 60,000 sq.mtrs ( Attard 2009 ). Its landscape is surrounded by 122 suites, the bulk of which offer Mediterranean sea positions. The chief invitees are upmarket tourers, concern people and incentive groups. KHSL employs 350 people of which 20 % work on a parttime footing to back up the seasonality peak demand ( ibid ). It is claimed that KHSL embraces diverseness whole-heartedly and this is considered as a cardinal trademark of its organizational individuality ( Wittwer n.d. ). The company ‘s cultural diverseness can be seen through the employment of non-European Union subjects which are largely employed in lower classs. From a different position, this can be seen as capitalizing on inexpensive foreign labor. KHSL ‘s organizational construction ( mention to Appendix 1 ) is level and determinations are largely taken by the top directors.

Specifying Organizational Culture

Divers research workers came along with distinguishable positions refering company civilization. In this regard, Deal and Kennedy ( 2008 ) and Peter and Waterman ( 2008 ) ( cited in UoL 2008:58 ), advocate that “ Culture is the manner we do things around here or the regulations of the game for acquiring along in the administration ”. This theory is really consistent with the KHSL ‘s civilization, in which organizational members perform undertakings, attack clients and work out struggles. New employees have to accommodate to the organizational civilization to acquire along and be accepted in the administration.

Furthermore, Hillis ( 2004:28 ) perceives that “ A constructive civilization is defined simplistically as one oriented towards accomplishment, self-actualisation, creativeness, engagement, valuing people, and one that places a high precedence on healthy relationships between people ”. This perceptual experience of organizational civilization partially resembles that of KHSL, where direction indoctrinate employee ‘s to value people. This is supported by the employees ‘ beliefs that the company genuinely values its members by puting up a human resources section with a competent staff compliment ( mention to Appendix 1 ). Employees perceive this as practical grounds that the company wants to construct strong relationships with its employees holding different societal, educational, national and cultural backgrounds. Such a belief takes into consideration the complexness in work-patterns, including displacements, flexi-time and parttime workers.

A point of view expressed by Handy provinces:

“ Anyone who has spent any clip in another state will appreciate how values, beliefs and precious doctrines affect the manner society is organised. They will appreciate excessively how these values and beliefs are shaped by history and tradition, by the clime, the sorts of work people do, the size of the state and its prosperity ”.

( Handy 1993:169 )

This theoretical construct is one of the most relevant constructs to KHSL since, although the corporate organizational civilization is influenced by German corporate scheme, it is blended with the Mediterranean civilization. It is just to notice that high quality client criterions, consistence in service proviso and supreme hotel installations were adopted at KHSL as portion of its corporate German organizational civilization. On the other manus, the Maltese civilization influences KHSL ‘s administration peculiarly when one considers the high flexibleness, trueness and committedness to high productiveness degrees of its employees. Quoting the General Manager of KHSL, “ The employees show full trueness to the administration as the Maltese were under British regulation with high productiveness degrees and are flexible and capable of seting to different economic conditions ” ( Attard 2009 ).

Supporting this theory, one can notice that the civilization of the Gozitan people, organizing portion of the Maltese archipelago is one of uninterrupted endurance traveling back to antediluvian times when the island was conquered and invaded by aliens who captured and captive Gozitans. The Mediterranean clime and the diminutiveness of the Maltese archipelago reflect KHSL ‘s organizational civilization. This is apparent in the affection and smiling faces of its employees reflecting the frequent warm and clear skies of the Maltese clime.

It is notable to mention to Johnson et Al. ( cited in Mullins 2007 ), when discoursing organizational civilization. These theoreticians developed the cultural web construct which can be applied to KHSL. Figure 1 depicts KHSL ‘s nucleus web elements that form portion of the company ‘s organizational civilization as perceived by the writer and General Manager of KHSL.


Beginning: Johnson, G., Scholes, K. and Whittington, R., ‘Exploring Corporate Strategy ‘, Seventh Edition Financial Times Prentice Hall ( 2005 ) p.202

Schein ‘s Theory and Layers Of Organisational Culture

Schein ‘s Layers of organizational civilization is polar in measuring the civilization at KHSL. The justification for using this theory is because the theoretical account is simple and practical to use and facilitates the appraisal of KHSL ‘s organizational civilization. Where appropriate other theoreticians and faculty members are quoted to back up or knock Schein ‘s theory in the several statements raised. Quoting Schein ‘s theory, Organizational Culture is defined as:

“ A form of shared basic premises that was learned by a group as it solved its jobs of external adaptation and internal integrating, that has worked good plenty to be considered valid and, hence, to be taught to new members as the right manner to comprehend, believe, and experience in relation to those jobs ”

( Schein 2004:17 )

Furthermore, Schein ( cited in Hollway 1991:139 ) provinces that “ It is at the group degree that civilization signifiers ”. He proposes “ … that civilization derives from the deepnesss of unconsciousness ” ( Schein cited in UoL 2008:71 ). It is pertinent to near Schein ‘s theory by mentioning to the three degrees of civilization.

First degree – Artifacts

On the superficial degree, one finds artifacts which include the discernible visual aspect of the administration, constructions and procedures ( Schein 2004 ). Within this degree, different cultural indexs might be and this reflects the true corporate civilization. Harmonizing to Schein ( 2004:26 ) Artifacts are “ … easy to detect and really hard to decode ”.

On come ining the hotel, invitees can detect the elegantly countrified and aesthetic Maltese architectural design surrounded with thenar trees and colorful flowers. One ‘s first feeling is the openness and warm welcoming received by members of staff and the open-plan layout with few doors throughout the edifice. On the upper floor, modern and broad administrative offices are located. All these physical features form portion of KHSL ‘s true organizational civilization. The absence of doors allows invitees and employees likewise to pass on freely. Walking farther inside the hotel premises, one notices that all degrees of employees have a formal frock codification and speak courteously to invitees which reflects the corporate German civilization of subject and formality. This is in contrast to the fact that work processs, policies and patterns are non documented. In fact, the administration ‘s mission statement is nowhere to be found allow entirely displayed in a outstanding topographic point.

On the lower degree, a staff canteen is found where employees from different sections take their interruption at the same clip. This serves the intent of cultural transmittal where Anakwe and Greenhaus ( 1999 ) province that organizational civilization is transmitted on to employees, via the procedure of socialization.

Further inside the anteroom, one finds conference and meeting suites. These suites non merely function the clients but besides map as a meeting topographic point for direction meetings on a hebdomadal footing. Decisions are made by the top direction down to subsidiaries. This is portion of KHSL ‘s civilization where directors have a high degree of authorization and are invariably pressured to maintain up with targeted budgets and transmit this force per unit area to subsidiaries. This culturalisation is similar to the definition given by Linstead and Grafton-Small ( 1992:333 ) who proposed that “ Culture devised by direction and transmitted, marketed, sold or imposed on the remainder of the administration… which are offered to organizational members as portion of the seductive procedure of accomplishing rank and deriving committedness. ”

Second Level – Espoused beliefs and values

Schein ‘s 2nd degree describes the administration ‘s espoused beliefs and values, which are embedded within corporate schemes, ends and doctrines ( Schein 2004 ). This describes the mode in which single organizational members justify their action and behavior ( ibid ). In substance, espoused values represent the preferable values and norms by an administration ( ibid ).

Clearly KHSL ‘s espoused values includes its doctrine to perpetrate itself to luxury cordial reception guided by the corporate ‘s scheme to offer high quality service to its clients ( Wittwer 2006 ). The implicit in premise as perceived by the direction is that this can be done through its loyal employees working in coaction with each other. This perceptual experience is farther supported by KHSL ‘s civilization to often keep societal activities for its employees including parties, barbecues and dinners.

Another underlying belief in KHSL is that work is valued to the extent that it must be given first precedence in life. Employees are familiar with this belief but have non yet come to footings with it as they see this conflicting with their household values and beliefs. Family values overcome work values in the Maltese society ( Abela 1999 ). This is a common subject and beginning of tenseness between employees.

Third Level- Basic Assumptions

Basic Assumptions represent the 3rd degree of Schein ‘s theory. These are “ unconscious, taken for given beliefs, perceptual experiences, ideas and feelings ” ( Schein 2004:26 ). Information is compiled at this degree by carefully detecting behavior, so as to build the implicit in premises. The latter, are sometimes taken for granted and non recognised. Harmonizing to Schein ( 2004 ), the Southern Cross of organizational civilization is within this degree. Although basic premises tend to be unseen, nevertheless they represent the nucleus of the administration ‘s civilization. Subsequently, organizational values that have been taken for given emerge as important premises that guide the administration ‘s behavior ( ibid ).

Within KHSL ‘s civilization, basic premises include, that employees are responsible, trusty, professional and capable of regulating themselves, and that the relationship between them is based on coaction. Employees assume that direction is taking the right strategic and operational determinations which are seldom questioned. Top direction seem to be ‘untouchable ‘ people. Employees take direction determinations for granted taking to the premise that KHSL is a preferable resort. Furthermore, such an premise allows employees to believe that direction is self-satisfied and seldom creates advanced thoughts.

Organizational Goals – Mission statement and stated aims

Mullins ( 2007 ) clearly defined how a mission statement ‘s value is mostly dependent upon the extent to which the full administration accepts its worth. Arguably, he refers to the procedure of circulating it into meaningful footings such that all employees can understand and accept it. Johnson and Scholes ( 2002:239 ) describes how it can be thought of as, “ a statement of the overruling way and intent of an administration ”. De Waal ( 2007:182 ) agrees that “ High public presentation administration creates lucidity and a common apprehension of the administration ‘s way and scheme, which consequences in a normally held strategic mentality among organizational members. ”

It is clear that a mission statement is where corporate way is defined and disseminated via an redolent statement. There is considerable understanding amongst key authors that the mission statement has to be clear and unambiguous yet Perren and Tavakoli ( 1997 ) concede that if the overruling aim of a well crafted mission statement is really to make a sense of mission amongst the members of an administration so some naif executives have a batch to larn. They argue that a mission statement has to be believed, understood and acted upon by the bulk of an administration ‘s members to accomplish a province of togetherness ( or as the writer would prefer to depict it: a common intent ). Mullins ( 2007 ) embellishes this point as he describes the demand for administrations to pattern what they preach if the mission statement is to be of any value. The KHSL mission statement is highlighted hereunder as stated by the General Manager,

“ To be renowned as the most alone hotel in Malta offering guests the ‘perfect retreat ‘ to loosen up in the placid atmosphere of Gozo, showcasing Kempinski as a luxury trade name and guaranting at all times guest satisfaction, while bettering the fiscal return to the proprietor and Kempinski ”.

( Attard 2009 )

It is unfortunate that the above mission statement is non known to employees. It is really seldom, if of all time, mentioned in meetings and societal activities, and the writer ne’er came across any papers saying this statement. Despite this, employees commit themselves to better the fiscal place utilizing uninterrupted trueness, dedication, and difficult work. One can reason that as a general regulation, employees feel the common intent of working with KHSL.

KHSL ‘s General Manager farther claimed that KHSL ‘s ends and aims are to accomplish and run a professional, profitable and ethical company ( ibid ). He farther argued that this is done through the edifice of long term selling relationships via its honored stakeholders and invitees ( ibid ). He besides highlighted that the purpose of the company, is to present a high quality service to its several invitees, therefore enabling the company to achieve its long term sustainability ( ibid ).

Analysis of the Supportive and Unsupportive Elementss of Organisational Goals

Johnson ‘s et Al. Model

It transpires from observations, that there are certain ingredients within the corporate civilization of KHSL, which are supportive and unsupportive as respects its organizational ends.

Analyzing KHSL ‘s civilization web utilizing Johnson ‘s et Al. theoretical account ( refer to page 12 ) one can detect that a figure of web elements back up the organizational ends whilst others divert and could be conflicting. The Symbols content reflects the organizational civilization with respects to the excellent installations and high quality service as seen in the eyes of the client. This contributes towards the company ‘s ends of being profitable by continuously pulling upmarket invitees through the portraiture of upmarket corporate image. The Control Systems and the Organisational Structure web elements besides seem to back up the company ‘s ends as they are client focused and the direction is cost witting therefore showing an alliance with the company ‘s profitableness. Another supportive component is the company ‘s stated ends which include the function of the Human Resources section giving a clear indicant that the company invests in its people.

Some cultural elements mentioned in the Stories subdivision sustain the company ‘s aims including the attention of its employees, co-operation and maintaining good dealingss with stakeholders. Narratives about the direction like for illustration the ‘heroes ‘ attack do non look aligned with the declared aim of the company on professionalism. However, some of the Routines and Rituals give an indicant of unprofessionalism which contradicts the hotel ‘s aims. This includes the fact that the mission statement, aims, company policies and work processs are non officially stated. Furthermore, the fact that direction does non confer with its work force in determination devising and efforts to enforce its civilization on the employees as stated in the Power Structures web element diverts from the company ‘s aims to achieve its long term sustainability.

Other Supportive Models

Traveling through the assorted theories, theoretical accounts and constructs of organizational civilization and comparing them to the concern ends as stated by the General Manager, the paper will now critically assess whether the administration supports these aims.

Handy ‘s ( 1993 ) point of view is that organizational civilization is greatly influenced by history, tradition and climes of administration ‘s location, earlier proven to be similar to KHSL. This translates to a competitory border offered by Maltese employees which includes committedness, flexibleness and trueness that was shaped throughout the history of the Maltese contributing to KHSL ‘s profitableness, which in the terminal is the premier ground of the administration ‘s being.

Traveling through Schein ‘s degrees of civilization one can note that the physical features of KHSL as perceived by invitees and employees form portion of the company ‘s values and regards its organizational ends which aim to offer high quality services. The physical elements identified through the first bed defined by Schein besides supplement the professionalism attack and long term sustainability stated in the company ‘s ends. Furthermore, the German corporate civilization of subject and formality is lending to the company ‘s ends of being professional.

The civilization of socialization mentioned by Anakwe and Greenhaus ( 1999 ) and Schein ‘s ( 2004 ) 2nd degree is apparent at KHSL where employees and direction behavior compliments the long term concern relationship end.


Conversely, one can reason that there are elements within the organizational civilization that do non congratulate and back up the company ‘s ends. One of these, is that work patterns, policies and processs are informal and non documented. This civilization is embedded in members of the top direction squad and unconsciously transmitted to subsidiaries. This cultural attack is non aligned with the company ‘s professionalism and high quality service ends. Furthermore, the imbalanced and conflicting civilizations of work vis-a-vis household between direction and employees hinder the attainment of certain ethical ends.

Other unsupportive elements include the cultural behavior of top direction who are considered as ‘untouchable ‘ taking to employees ‘ general belief that direction is complacent without the competency of advanced thoughts, and this should be regarded as a menace to the long term sustainability of the concern.


It can be concluded that organizational civilization, although defined by assorted research workers and bookmans in different ways and attacks, tend to hold that the nucleus composition elements are values and beliefs. These are ab initio molded and embraced by the administration ‘s direction behavior and subsequently cascaded down to all members of the administration, who in bend behave and presume that this civilization is right. It has been proven through this paper appraisal that KHSL is non a alien to this scenario.

It is perceived by the writer that KHSL ‘s organizational civilization resembles largely Handy ‘s theory which attributes such civilization to history, tradition, clime and the size of the state in which it operates. The survey besides reveals that through the application of Schein ‘s theory and Johnsons et Al. cultural web theoretical account, KHSL ‘s organizational civilization is largely supportive to its concern ends which are surprisingly non derived from a mission statement. Conversely, other of import organizational cultural elements were found to impede and sometimes even conflict these same ends.

Since organizational civilization is a dynamic and germinating world, it needs to be assessed in-depth at a peculiar point in clip in footings of long-run organizational ends. It seems that KHSL ‘s directors moving as leaders seek to enforce some of their ain values and premises on employees. This could be counterproductive since KHSL ‘s employees need to be granted a participatory function in the development of civilization within their ain several administration.

It is hence recommended that to farther support KHSL ‘s long-run concern aims, the direction needs to undergo a cultural analysis with a positive attack to officially province and explicate the company ‘s mission statement to all members of the administration. Furthermore, a cultural alteration programme should be initiated to enable the company to build-up a good structured direction system based on documented policies, processs and work-practices. Hopefully, by clip, these alterations will organize portion of the beliefs, values and underlying premises of the organizational civilization. This will enable the members of the administration to better understand their function and duties, therefore lending more efficaciously towards the concern aims.


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