Case Study for the Hilton Hotel Transformation

Hilton's Transformation

Abstract

Values and assumptions shared across an organization are referred to as the organizational culture. The organizational culture of a corporation or even a municipality is based on the attitudes and values of the employees. As the municipality of Hilton grew in population and size its management team was forced to transform from a city focused on infrastructure to a city engaged in social services. Municipal employees faced a shift in organizational culture. This essay addresses the change in municipal management and organizational culture and its affects on the environment and community of Hilton.

The organizational environment in the municipality of Hilton catered to seniority and could be described as one of "entitlement and comfort," (McShane & Von Glinow, 2010, p. 438). Department management largely operated without interference from the city manager or elected officials. As city growth strained social services and community members expressed displeasure with the current organizational culture in the municipality it became apparent that the city needed a change in operating environment. The municipality of Hilton engaged in environmental and organizational change by strengthening the corporate culture and integrating outside professionals to build an adaptive culture.

Corporate Culture and Cultural Values

Early on in the city of Hilton, employees were treated like family. This is consistent with a small town atmosphere. Leaders and supervisors rose to new ranks on the basis of experience and because of that ideology few people from outside the municipality were ever hired into middle and upper management. The shared values of the municipality created a generalized rule of employment; all Hilton employees had to do was learn their job skills, maintain a good work record and simply wait for promotion. This practice limits the skill and mobility of the workforce and directs focus internally. (McShane & Von Glinow, 2010)

Hilton grew as a community and the city attracted more professionals. Growth called for more corporate planning, information systems, organizational development and cost control. Growth also called for more soft services but because the majority of the management team came from the outside services, most emphasis was placed on infrastructure rather than social services. Hilton's citizens asserted that the municipality wasn't getting the appropriate quality of management. A new mayor addressed those concerns by offering senior managers an early retirement and brining in qualified candidates from large municipal corporations in the region. (McShane & Von Glinow, 2010)

The transformation from internal management and promotability to a more competitive workforce contrasted