Organizational Development Success at Hotel Torremar

The dynamic Lic. Miguel Cobos Ubeta, Human Resources Manager and Change Agent in a modern hotel, stated: “The beginning was not easy. Our staff was reluctant to change because they felt that organizational development models could be applied in other cultures but not in our country. Furthermore, the change process becomes even more difficult to implement in a service-based company, such as those that comprise the entire tourism sector.”

Organizational Culture and Identity

The image projected by the hotel, through its logo, colors, and the slogan, “We only have eyes for you,” is strongly supported by an organizational culture that can be felt in the attitude of staff in all areas. That culture is contained in a manual which includes:

  • Diagnostic map to start a process of change.
  • Defining the quality of Hotel Torremar.
  • Understanding that quality may not be what you think.

Implementing OD Programs Since 1992

Regarding the OD programs, Lic. Ubeta noted that they have been implementing such programs since 1992. The program referred to, named PIBE, focuses on the human aspect over a three-year period.

The process of change in the company did not initially focus on the technical field but precisely on gauging the attitude of people.

Driving Forces of Change

The driving forces of the change process in the hotel were:

  • Competition that began to settle in the city.
  • Strikes and the need to maintain an excellent relationship with the union.
  • The large momentum provided by private sector shareholders in Veracruz.
  • The desire to be increasingly better.
  • The need for a corporate identity manual.
  • Customized attention to the guest.

Restrictive Forces to Change

The restrictive forces to change at the hotel were:

  • Staff resistance.
  • Capital that was needed for the initial expansion of the hotel.
  • Liability dollarization.

The Organizational Development (OD) model was immediately presented.

Employee Welcome Manual

A Welcome Manual is provided to every employee entering the organization. This manual includes:

  • Hotel history.
  • Shift and location.
  • Facilities.
  • Services at the hotel.
  • Consumption centers.
  • What the organizational culture of the hotel is.
  • Values.
  • Mission.
  • Organizational structure.

Qualities of a Torremar Leader

The leader at Torremar must be:

  • Congruent
  • Doer
  • Integrator
  • Negotiator
  • Winner
  • Listener
  • Not static

Sustainability of the OD Model

The OD model generated is self-renewing. This means that even if the change indicator or key personnel withdraw from the organization, the program should continue, as the model has elements ensuring this happens. This eliminates the fragility that the model could change if key players retire.

Future Expectations and Programs

In the hotel, there are the following expectations regarding the program:

  • Professionalize posts.
  • Comprehensive training program.
  • Comprehensive quality program with beneficial effects on external work.
  • Institutional programs and performance evaluation for productivity bonuses.
  • Human development program.
  • Prevent leakage of valuable employees.
  • Plan to expand into the market sector (business class).
  • Continue to renew the Torremar Operating System 100, which contains:
    • Organization manual.
    • Analysis of posts (job analysis).
    • Procedures manual.
    • Policy manual.
    • Welcome manual.

Reengineering Initiatives

As an initiative, the company direction implemented reengineering programs to support the organizational development program. This focuses on the radical redesign of processes, working together with interdisciplinary teams.

The term reengineering focuses on simplifying processes.

Key Performance Indicators (KPIs)

As is well known, Organizational Development (OD) is reflected in key indicators to assess its effectiveness. In the case of this hotel, the following indicators are evaluated:

  1. Number of complaints from guests in relation to hotel occupancy on a specific day.
  2. Proportion of complaints.
  3. Productivity bonuses for reception staff.
  4. Occupancy rate.
  5. Percentage of guests who return to the hotel.
  6. Tastes and preferences of returning guests.
  7. Monitoring of key customers.
  8. Banquet utility/profitability.

Conclusion: A Competitive Advantage

The Lic. says he is convinced of the merits of OD, which is palpable, and the employer, in assessing the results, is the main driver of the program. There is no doubt that this is another case showing that Organizational Development works, providing the hotel with a competitive advantage.