In each region, area presidents and executive team run their operations. As new businesses are evolving around the world, resistance to change has become a primary factor for business failure. The success depends on the ability to foresee and capitalize on the change.
The quality of the Hilton brand is such that the customer service, managerial and operational excellence is higher than in most industries. The management at Hilton believes that training and development of its employees play a very vital role to stay ahead of the competition. Hilton group it totally decentralized; splitting into different regions and countries; cities and individual hotels. Management of people, materials and affairs become very difficult and affects the management of the company. The critical issues faced by Hilton because of the changes in the organizational structure are
Labor market and retention remain the areas of managerial concern especially in the UK, where booming economy and high profits in the hospitality industry could not save many international hotels from the market retention in what is called the tightest labor market since 1978 ( Benini and Sturken, 2000, Kennedy 1998).The reasons cited by the employees for high turnover in the hospitality industry is because of lack of career structure available, low remuneration and the working environment.
Employee turnover in the hospitality industry is a whopping 50% and 25% for management staff, enough to make employers lose tangible and intangible costs of employee turnover. Turnover has an immediate effect, particularly in the customer service dependent areas of the business where there is direct interaction with the customers. A vacant position means more work for the remaining employees without having to compromise on the quality of the work. The ageism issue is difficult to identify and eliminate and in hospitality industry the older