The purpose of this study is to examine efficiency of "Turning the Organizational Pyramid Upside Down", that is, whether low formalization and centralization have a causal relation with organizational commitment and the level of quality service delivery.
Most companies recently effort to improve their service quality. Because as it become more service-oriented, so the companies react needs of market more quickly and have superior value and competitive advantage. However it needed appropriate organizational structure for that. Karl Albrecht(1988) had insisted that "Turning the Organizational Pyramid Upside Down" is ideal structure in the service industry. But he neither examined his insisting nor investigated by others.
Data for this study were collected from the employees of five-star hotels by self-administrative questionnaires. Among 365 questionnaires, 255 sheets returned and were used to test hypothesis.
Summarizing the findings of this study, the relationship among centralization, organizational commitment and the level of service delivery was not significant statistically, but formalization was significant causal variable and had a positive effect.
Finally, it was found that formalization had an indirect effect on the level of service delivery, that is, formalization improved the level of service delivery through made a hotel employees commitment to their organization (hotel) rather than had a direct effect on the level of service delivery.