The tourist industry receives special attention because of especially, among many positive factors, the foreign exchange it bring into the country, the employment it creats, and its interrelationships with the rest of the economy. In this context, the...
The tourist industry receives special attention because of especially, among many positive factors, the foreign exchange it bring into the country, the employment it creats, and its interrelationships with the rest of the economy. In this context, the government appointed the tourist industry as the stretegic one in 1975, but just recognition of the tourism field is not yet advanced.
Since the entire liberalization of oversea travel in 1989, tourists going abroad has been increasing in an alarming way. But the facts remain that the related roles of travel business to cope with a continually changing situation, including inducement of foreign tourists who has gradually decreased, is far from satisfactory and the quality of domestic tour in proportion to quantative increase is at a standstill. The reasons for the whole difficult situation are presumably connected with the several factors such as the absence of government tourist policy for promotion, national out-moded ideas on tourism, and the difficulties of recruiting skilled personnel caused by too many businesses and easiness of obtaining employees' qualifications.
The purpose of this study is to make an attempt at systematic establishment of a proper organizational culture in management of travel business through an experimental analysis of the effects of the factors, based on 7-S Components developed by Pascale and Athos(1981), on the organizational effectiveness. In the longer term, it is hoped that this humble effort will make its own contribution to the sound development of tourist business, regarded as a complex industry, through the appropriate introduction of our long traditional social and cultural customs to it.
The following futher elaborated model, based on Pascale and Athos 7-S Components, serves the purpose of building up the foundation of organizational culture fit for the conditions of our tourist business. The components of the model which have influence on the organizational effectiveness can be seen in Figure.
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<Figure> Research Model
The essential arguments of this study rest on the following hypotheses:
1. that shared values will influence three variables in the organizational effectiveness.
2. that staff will influence three variables in the organizational effectiveness.
3. that system will influence three variables in the organizational effectiveness.
4. that skill will influence three variables in the organizational effectiveness.
5. that style of leadership will influence three variables in the organizational effectiveness.
6. that strategy will influence three variables in the organizational effectiveness.
7. that structure will influence three variables in the organizational effectiveness.
For the purpose of the present investigation, each of the hypotheses was tested on validity in light of the individual variable in the organizational effectiveness.
The next describes the research procedures for the research hypotheses, including:
1. understanding of the actual conditions of the organizational culture,
2. abstraction of the factors of the organizational culture which influence the organizational effectiveness,
3. synthetic judgment on the integrated understanding of both sides of managers and employees,
4. probe for construction of organizational culture, fit for the conditions of our tourist business, which can maximize the organizational effectiveness.
To test the hypotheses of this study, data was gathered from 150 regular tourist businesses in Pusan holding membership in the Korea Tourism Association for about two months from Mar. 10, 1997 through Apr. 30, 1997. Thus, 738 copies of questionnaire from 122 businesses in 1,200 copies initially drawn were finally analyzed. All data analyses were performed with the use of SAS statistical package. To be concrete, the general characteristics of data were surveyed by frequency, mean, and correlation analysis. In addition, several experiments were done to test the reliability by Cronbach's a-value, validity by an confirmatory factor analysis, and research hypotheses by many analyses.
In relation to the validity of the hypotheses, all hypotheses proved to be valid with the exception of two cases, i.e. the correlation between salesprice growth and two factors such as style of leadership and structure.
The analysis suggests that an extensive and intensive approach, on the basis of an experimental survey and analysis, is necessary for the study of the factors composing the organizational culture. Also it is noted that, to maximize the organizational effectiveness in the management of the tourist businesses, the grafting of organizational culture on it is important, in which several individual factors including 7-S are organically combined in a systematic harmony with the subordinate elements.
Since this study is exploratory, the need for futher research is evident. However, the encouring findings in this study provide some grounds to support the future promsing study as well as contributions to the practical affairs in the tourist businesses.
The limitation of this research is that the sample area were restricted to businesses located in Pusan. Futher research is desired to have as diverse areas as possible including more tourism-related industries.