Introduction to Hospitality Unit VII

BHM 3010, Introduction to Hospitality 1

Course Learning Outcomes for Unit VII Upon completion of this unit, students should be able to:

5. Determine marketing strategies within the operations of hospitality and tourism entities. 5.1 Create a marketing program for a new hospitality product introduction.

8. Distinguish necessary components of management styles for successful hospitality/travel industry

professionals. 8.1 Explain the differences between leadership and management.

Reading Assignment Chapter 14: Leadership and Management Chapter 15: Planning Chapter 16: Organizing

Unit Lesson In this unit, we will look at the management, leadership, planning and organizing of hospitality operations. The initial focus is to differentiate leadership and management. To make it simple, leadership is the more formal aspect, while management is the working side of the big picture (Walker, 2013). The leader must organize his or her troops and get them ready for action. The leader has a strong and significant influence on the group and the direction in which they will be moving. Rather than get into the complex issues of leadership, which have been defined and redefined over the years, the simple definition of a leader is one who has followers. Management or managers are charged with the task of accomplishing predetermined goals through the utilization of others. The managers must empower employees to make decisions to achieve these goals, all the while verifying that they have the resources to do this. Managers will not necessarily become involved in the day-to-day operations; however, they will supervise and monitor group progress. Leaders and managers will not work behind the counter at their units; their time and expertise are more effective at making the company operate more efficiently and preparing it for the future. In management, it is said that managers work with the 5 Ms: money, machinery, manpower, materials, and market (Walker, 2013). Today’s trends in leadership and management include the following: managing diverse groups, training a new generation in basic job skills, reducing the number of full-time employees, hiring more part-time employees, keeping up with the benefits of technological advances, emphasizing ethics in the workplace, and maintaining global security and safety. The functions of leadership and management must withstand increased demands and responsibilities and still achieve the pre-determined goals (Walker, 2013). A major portion of both leadership and management is effective planning and organizing to achieve goals. Things do not happen by themselves, at least not the way you want them to, but the proper planning and organizing will allow the desired results to be achieved. The utilization of long term planning (strategic) and short term planning (operational) will establish the forward path for the organization (Walker, 2013). Both types are critical in the development of a successful hospitality operation. The planning and organizing process is a major function of project management. A project has critical mandates for completion time and budget—both of which must be met. Increasingly, hospitality companies utilize project management to achieve a rapid response to opportunities. Taking into account the rapid changes occurring in the hospitality business and the trends in sustainability, technology, and global

UNIT VII STUDY GUIDE

Leadership and Management, Planning, and Organizing

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communication, the planning and organizing processes must keep pace. The education and training of leaders, managers, supervisors, and the majority of the organizational chart must be a priority, particularly in the principles of efficiency and effectiveness. As we mentioned the organizational structure, we must discuss the important elements in its design. The structure of the organization is intended to divide work into functional areas. Formal lines of authority and communications are established for development of a framework in which job functions are grouped. In the hospitality business environment, the trend is to have flatter organizational structures or fewer levels. This allows more flexibility in decisions and actions, which is a good thing for the guests and their satisfaction. If there is an issue with a guest, employees are empowered and/or have fewer hoops to jump through to obtain a resolution decision by management, or they can make one themselves. The organizational chart will also visualize the chain of command. Departments and titles are shown so that the line of authority can be traced top to bottom or vice versa. The size of the organization will determine the levels and reporting structure. Whether it is 30 employees or 10,000, there will be an organizational structure that is best to achieve designated goals. Think of a small hospitality company, such as a local hotel in your town, as compared to a large, national chain of hotels. They must operate in a similar fashion, and the number and methods of their employees will be organized and grouped by functional area, even though the small hotel may have one person in a group (Walker, 2013). The goals can be the same, but it will be a different management process to make it to the top of the mountain. Leadership cannot be defined as a one-size-fits-all convention. Constructing the best ensemble with the correct choices and the right style, at the right time and proper situation, is a primary key to being successful and effective. Choosing an inappropriate leadership style can lead to negatives such as misunderstandings, production decline, poor work performances, absenteeism, and high turnover (Motowidlo, 2003). As stated by Goleman (2000), there should be awareness by leaders in recognizing how their leadership style is synonymous with organizational success. Successful leaders are unambiguous in their ability to get things done through others. Conversely, their leadership style will influence their competency level, just as the subordinate’s performance will determine their competency to perform assigned tasks. According to Bennis (2002), the primary goal of an effective leader is the ability to articulate vision and instill trust, belief, and loyalty, and it should lead towards achieving goals. In order to be successful, the leader must cultivate trust and form relationships with employees to complete directives. This will be the determinant of a leadership style(s) (Kelloway & Barling, 2000). The selection of a leadership style ultimately concerns the necessities of the people and the organization being led (Goleman, 2000). Goleman (2000) discusses three leadership styles: transformation leadership, transactional leadership, and situational leadership. Transformational Leadership Choosing a transformational leadership style, leaders establish values for their subordinates that will motivate and persuade them to achieve goals (Jung, 2000). Transformational style allows a sense of mission, vision, pride, respect, and trust. Mulla and Krishnan (2011) theorized an association between transformational leadership and a subordinate’s moral values. The positive effect of transformational leadership is that it enhances self-knowledge and increases the performance expectation value to the financial performance of the teams. These leaders are visible and inspirational, since they expect the best, hold themselves accountable, and have good conflict resolution skills. They generally possess high emotional intelligence, demonstrate leadership qualities in a group, and are generators of increased morale, motivation, and morals (Zafra, Retamero, & Landa, 2008). Transformational leaders are highly visible, know how to delegate, and spend a lot of time communicating. Transformational leaders generate positive change that emphasizes the characteristics of task-goal efforts and the importance of values. In its ideal form, transformational leadership creates valuable and positive change in its followers, with the end goal of developing followers into leaders—enhancing motivation, morale, and performance through a variety of mechanisms. These include connecting the follower’s sense of identity and self to the mission and the collective identity of the organization; being a role model for followers that inspires them; challenging

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followers to take greater ownership for their work; and understanding the strengths and weaknesses of followers so the leader can align tasks that optimize their performance (Bass, Avolio, Jung, & Berson, 2003). As written by Berson, Shamir, Avolio, and Popper (2001), the concept of transformational leadership facilitates innovation and maintains a smooth, positive-forward momentum during these changes— establishing value in the changes while encouraging employees to pursue the shared vision. Transactional Leadership The transactional leadership style is utilized by organizations transacting pay increases, recognition, and promotions for strong performers, and punishment for weak. Individuals consent to obey this type of leader upon acceptance of the job. The role of effective leaders in the transactional style is rewarding subordinates on a contingency, handing out incentives and various honors for those who have met their promise of fulfilling the goals of the organization. All roles are clarified since individuals are judged on performance. Those motivated by external rewards often thrive. The environment can be negative, leading to high turnover. Knowledge-based and creative work is generally non-existent. This type of leadership lends itself more towards the management side of the spectrum and works by creating an economic exchange in which employees’ material needs are met in return for services rendered for the company. Transactional leaders are often put into a position where followers are obligated to act, such as in government, the military, or schools. Observations have demonstrated the effectiveness of transactional leadership when organizations are desirous in achieving goals and objectives. Drawbacks include the propensity of leaders to exploit workers by abuse of their power (Franke & Felfe, 2011). Situational Leadership The situational leadership theory presents the argument that there can be a customization of leadership styles dependent upon team members. As written by Hersey and Blanchard (1977), the theory denotes there is not a singular ideal or effective style of leadership to lead employees to their set goals, which indicates that any style can be applied, affording the situation in which it has to work effectively. Maturity level is the deciding factor. Immature individuals require a more direct approach, while higher maturity levels require a more participative or delegating leadership style. This tags itself as a critical component in any organizational structure, and the reason why the best leaders concentrate on the development of future leaders for mentoring and relationship building (Gadot, 2007). Hersey and Blanchard (1977) have performed extensive research and writings on situational leadership, the basis being that the better and most effective method for leaders is task relevant. Successful leaders customize their leadership to the maturity level of the group(s) or individuals in their purview (Hersey & Blanchard, 1977). An effective leader should demonstrate flexibility in order to change his or her method per the varying scenario. Leaders must also be aggressive in the introduction of enthusiasm for the work being performed and demonstrate this behavior to their followers (Hersey & Blanchard, 1997). The claim cannot be made that situational leadership is correct for all situations. Certain situations may indicate a preferred model of leadership such as autocratic, democratic, or transactional. This concludes that even if the method of leading people is flexible, this does not guarantee a positive result since there are situations which may require a rigid and strong style to be more successful (Hersey & Blanchard, 1997). Eventually, the decision is made to choose the best leadership theory. This will encompass a combination of them all to create a custom approach that demonstrates your personality and involves learning. This will establish you as a strong leader (Zafra et al., 2008).

References Bass, B. M., Avolio, B. J., Jung, D. I., & Berson, Y. (2003). Predicting unit performance by assessing

transformational and transactional leadership. Journal of Applied Psychology, 88(2), 207-218. Bennis, W. (2002). Become a tomorrow leader. In L. C. Spears (Ed.), Focus on Leadership: Servant-

Leadership for the 21st Century (pp. 101-109). New York, NY: Wiley.

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Berson, Y., Shamir, B., Avolio, B. J., & Popper, M. (2001). The relationship between vision strength, leadership style, and context. The Leadership Quarterly, 12(1), 53-73.

Franke, F., & Felfe, J. (2011). How does transformational leadership impact employees’ psychological strain?:

Examining differentiated effects and the moderating role of affective organizational commitment. Leadership, 7(3), 295- 316.

Gadot, E. V. (2007). Leadership style, organizational politics, and employees’ performance. Leadership Style,

36(5), 661-683. Goleman, D. (2000, March). Leadership that gets results. Harvard Business Review Hersey, P., & Blanchard, K. (1977). Management of organizational behavior. New York, NY: Prentice-Hall. Jung, D. I. (2000). Transformational and transactional leadership and their effects on creativity in groups.

Creativity Research Journal, 13(2), 185–195. Kelloway, E. K., & Barling, J. (2000). What we have learned about developing transformational leaders.

Leadership & Organization Development Journal, 21(7), 355-62. Motowidlo, S. M. (2003). Job performance. Handbook of Psychology, 12. Mulla, Z., & Krishnan, V. (2011). Transformational leadership: Do the leader's morals matter and do the

follower’s morals change? Journal of Human Values, 17(2), 129-143. Walker, J. R. (2013). Introduction to hospitality management (4th ed.). Upper Saddle River, NJ: Prentice Hall. Zafra, E., Retamero, R., & Landa, J. (2008). The role of transformational leadership, emotional

intelligence, and group cohesiveness on leadership emergence. Journal of Leadership Studies, 2(3), 37-49. 135-154.

Suggested Reading Click here to view the Chapter 14 PowerPoint presentation or here to view a PDF of the presentation. Click here to view the Chapter 15 PowerPoint presentation or here to view a PDF of the presentation. Click here to view the Chapter 16 PowerPoint presentation or here to view a PDF of the presentation. Use the Business Source Complete database to locate and read the following article: cre•a•tive•ship. (2013). T+D, 67(4), 15.