EG706 – AU Human Resources and Organisational Behaviour
EG706 – AU Human Resources and Organisational Behaviour
Introduction
Organisational behaviour mainly refers to human behaviour inside an organisation. It includes interactions between individuals and the organisation as a whole and it is one of the most crucial areas of human resources. In the hospitality industry, organisational behaviour is critical in instilling in employees new attitudes, behaviours, and norms that can raise production and increase the company’s competitiveness. This report analyses the overall role of leadership in an organisation especially in shaping organisational behaviour in the hospitality sector. Adding to that, the report also critically evaluates the significance of corporate social responsibility (CSR) and ethical employment practices in hospitality organisations.
Role of Leadership style in shaping organisational behaviour in hospitality organisations
Impact on employee engagement and motivation
The various methods that leaders employ to oversee and inspire their followers are known as leadership styles. There are different leadership styles, including laissez-faire, transformational, democratic, authoritarian, and transactional leadership (Thanh and Quang, 2022). Democratic leadership requires the leader to include their subordinates in the decision-making process. Democratic leaders support initiative and have faith in the skills of their employees, which can have a positive impact on organisational behaviour. They promote teamwork by being friendlier, more helpful, and more engaging. Under democratic leadership, subordinates follow commands and put in a lot of effort to meet organisational goals. Their lack of workplace stress fosters motivation and a sense of involvement. According to some studies, democratic leadership has a beneficial effect on workers’ motivation as it allows leaders to make decisions independently (Hassnain, 2022). The effect of a democratic leadership style on employee motivation, organisational behaviour is impacted. Different leadership styles have a separate way of shaping the behaviours of employees. Employees’ experiences are heavily influenced by their leadership styles. Effective leaders of hospitality organisations communicate cultural norms in such a way that it fosters a pleasant work environment in which workers are motivated, and devoted, and believe their service has a purpose for the customers.
Employee engagement is a very serious topic for not only the hospitality industry but also for every industry. As of 2022, the employee engagement levels around the world was 62%, which was a 7% decrease from 2020’s highest record 69% (Statista, 2023). Daily interaction with the managers can teach an employee how they can offer polite behaviour to the customers. This in turn also boosts the engagement level of the employees. However, under autocratic leadership, the employees of hospitality organisations might feel a lack of empowerment as the leader makes all the decisions on his own (Setiawan et al. 2021). While under the democratic leadership style employees get valued as well as involved in serving the customers as they can participate in decision-making situations. This can help the hospitality employees to get more engaged in the organisation. Finally, transactional leadership can also improve employee motivation as it assigns some rewards or incentives for completing some desired objectives. The motivation of getting rewards can improve the employees’ service.
Impact on improving customer service
Leadership styles establish a clear vision and outline the fundamental values that guide the customer service culture in hospitality organisations. Leaders inspire employees to align their actions with the ultimate goal of delivering exceptional customer service by clearly explaining and demonstrating these values. Through a leadership style, leaders send a powerful message to the entire hotel employees when they interact with their customers in an active manner and set an example for desired service behaviours. Each leadership style constantly inspires others to follow their dedication and passion for excellence. This in turn provides positive customer service to the customers of the hospitality organisation. Effective leadership practices encourage and help employees in excelling in their roles. In building an environment like this, employees are empowered to demonstrate initiative, feel appreciated, and make decisions that improve the experience of visitors. In addition to the democratic style of leadership, communication is thought to be another factor impacting the hotel business over time (DEMİR et al. 2023). Moreover, open communication is vital for developing a culture of good customer service. Hotel managers facilitate regular means of communication, including top-down and bottom-up (Thielen, 2019). This helps to gather information, address concerns, and recognise excellent performance. Furthermore, by developing a collaborative work environment, a democratic leadership style promotes a customer-centric perspective by actively listening to their employees’ ideas and insights.
Since front-line hotel staff have direct contact with guests and are typically more aware of consumer expectations than managers, democratic or participative leadership is a good fit for the hotel industry (Khan et al. 2023). Hence, allowing staff members to take part in decision-making will assist the management. Participative leadership enables frontline staff to serve as a point of contact between guests and management. A manager who wants to show their staff that they are committed to providing exceptional customer service should find the possibility of participatory leadership to boost employee involvement.
Challenges faced by hospitality organisations
Ineffective leadership or a lack of democratic leadership has an infectious effect that can spread throughout a hospitality organisation. For instance, when hotel employees are criticised exclusively for their efforts rather than their results, they do not feel valued and work in fear of making a mistake, because mistakes can lead to further criticism (Alameeri et al. 2021). This is a common problem and it can restrict the hotel from achieving its organisational objectives. Employees in hotels are just demotivated by the absence of democratic leadership as they are not getting acknowledgement. Additionally, meetings are often seen negatively by employees since they require time away from their departmental duties to attend. These types of gatherings have the ability to bring down morale and productivity. Democratic leadership in hospitality management ensures employees to perform their current duties with proper engagement and freedom and must attend meetings in person.
Some poor leaders in hospitality organisations threaten employee job security (He et al. 2021). When there is no democratic leadership employees get afraid and consequently, lose morale and stop trusting and appreciating the hospitality management team. As per the principles of democratic leadership, leaders should put in more effort to create a hotel that is based on confidence as well as integrity which will further enhance organisational behaviour. Managers should practise transparency by releasing hotel information openly according to democratic leadership style. Unfriendly work hours, work under stress, irregular holidays, heavy responsibilities, inappropriate work shifts, low employment security and stability, and comparatively low earnings lead to bad work culture in the hospitality sector. These characteristics are the most accurate reasons for staff decisions to leave the organisation (Ghavidel et al. 2019).
Importance of Corporate Social Responsibility (CSR) and ethical employment practices within the hospitality context
Corporate Social Responsibility (CSR)
As per the study by Ertuna et al. (2019), Corporate Social Responsibility (CSR) is noted to be significant within the hospitality industry, which enables the management to serve as a guiding principle for effective operation operations by navigating ethical, social and environmental responsibility. CSR can be considered as a prominent method or initiative that enables the management to successfully shape the reputation and foster sustainable growth within the hospitality sector. Thereby, CSR is noted to be highly significant in terms of the hospitality industry by providing the ability to involve the integration of ethical consideration into the business practises as well as a compassing, a commitment to social and environmental well-being along with financial success (Gajadhur, 2023). In the context of the Triple Bottom Line framework, it provides hospitality companies a greater competitive edge by allowing them to concentrate on long-term economic, social, and environmental performance. For example, CSR involves initiatives such as supporting local charities, participating in community events and creating employment opportunities for local residents (Murawska, 2020). Considering the fact of providing guidelines to the management within the hospitality sector, CSR is found to be significantly important in enhancing the level of engagement may not only strengthen the social fabric but also enhance the standings among consumers for the organisational management. As mentioned within the study of Peña‐Miranda et al. (2022), CSR is highly effective in terms of enhancing positive image of an organisational management among the consumers who increasingly prioritise socially responsible business. Apparently, it helps in developing a positive retention rate and implementing different strategies for the management to operate effectively in a competitive market within the hospitality sector. Marriott International can be considered as a prime example of an international business within the hospitality sector, which is focused on implementing CSR initiatives to enhance their performance in the global competitive market (Marriott, 2023).
By the implementation of CSR initiatives by Marriott International, it has been noted to effectively reduce water intensity by 15%, reduction in carbon in density by 30%, reduce waste to landfills by 45% as well and reduce food wastage by 50% (Marriott, 2023). Apart from that, in the context to the CSR initiative of Marriott International, the management has been found to be focused on implementing Serve 360 in each and every property (Marriott, 2023). Environmental sustainability has been one of the primary factors of CSR within the hospitality sector (Yousaf et al. 2021). In context to the impact of Marriott International on the environment by 2022, the CSR initiatives of Marriott have enabled the management to successfully witness 90% of their premium and selected brands to implement residential bath amenity programmes (Marriott, 2023). Ethical sourcing is another important dimension of CSR within the hospitality sector (Peña‐Miranda et al. 2022). Organisational management within the hospitality sector is found to be implementing CSR initiatives within the supply chain to ensure that products are sourced ethically. For example, Marriott International has been found to focus on aligning its goals with the responsibility sourcing of 95% within the top 10 priority category by the end of 2025 (Marriott, 2023). This enhances the brand’s reputation while also appealing to customers who are more interested in knowing where their goods and services come from.
Ethical employment practices
As per the study of López-Andreu et al. (2019), ethical employment practises within the hospitality sector are noted to include issues like shift work, unsociable hours, zero-hour contracts, fair pay and the prevention of modern-day slavery. Although certain CSR practices can enhance the level of flexibility as well as operational efficiency which can be effective in terms of dealing with the ethical challenges that impact the well-being of the employees. In context to the hospitality sector, it can be denoted that shift work and unsociable hours are some of the most common issues due to the work structure of 24/7 (Ozduran et al. 2023). Although it offers flexibility to the employees, it can also cause irregular work hours affecting the work-life balance and overall job satisfaction of the employees. For example, Marriott International and Hilton are some of the most renowned hotel chains in the international market that have been struggling with high turnover rates and burnout among staff due to demanding schedules (Skift, 2022).
As referred to the above figure, it can be clearly identified that Marriott has witnessed a significant downfall in their overall employee numbers in the year of 2021 with 120,000 people worldwide in comparison to 2019 with 174,000 people worldwide (Statista, 2023). Apart from that, zero-hours contracts within the hospitality sector has also also been a primary ethical concern (Gheyoh Ndzi, 2021). These contracts are found to be providing effective flexibility for the employees, whereas, it is noted to leave workers without stable income and job security (Davidescu et al. 2020). For example, InterContinental Hotels Group (IHG) was found to eliminate the zero hour contracts across different estates (IHG Plc, 2022). Thereby, from April 2022, all the employees in the hotels were paid at or above the living wage with a majority paid above salary increased between 5% and 8% (IHG Plc, 2022). Workers in the hospitality industry, such as cooks and housekeepers, may get pay that is at or close to the minimum wage. However, the hotel sector deals with issues of modern-day slavery due to its intricate supply networks. A few instances of forced labour, human trafficking, and abusive working conditions fall under this category (Quirk et al. 2020). Promoting ethical employment practises in the ever-changing hospitality business requires regular policy evaluation and change in response to changing labour norms and social expectations.
Recommendation
In addition to being resolute and forceful, leaders in the hospitality industry should install a strong sense of purpose and vision in their followers. They thereby win the respect and trust of their employees or subordinates, which enhances their performance. In regard to providing values, leaders should use a shared sense of mission to excite, stimulate, as well as inspire followers to greater performance. To remove the fears of employees, leaders must also uphold high moral and ethical standards by conducting self-awareness programs (Majeed et al. 2020). Leaders should prioritise the well-being of the group over their own interests to demonstrate successful teamwork (Ahmed, 2019). This can boost productivity and ultimately help the business reach its objectives. To engage and motivate their employees, hospitality leaders should express a compelling, exciting, and well-defined vision. Leaders must understand their subordinates’ feelings in order to inspire them to work towards the organisation’s long-term goals (Fang et al. 2019). By following these recommendations, the hospitality organisations can shape their organisational behaviour.
In order to overcome the challenges faced by the hospitality sector regarding their employees can be effectively resolved by the implementation of labour practises within the CSR initiatives. For example, establishment of fixed schedules and providing stable, living wages can effectively eliminate the issue related to shift-work, unsociable hours and zero-hours contracts (Lambert and Fugiel, 2023). Therefore, it is advised that companies and governments work together to implement laws that safeguard employees’ rights and prevent them from becoming victims of contemporary slavery. Encouraging a good work-life balance and being transparent in employment contracts are essential. Furthermore, enhancing a supportive work environment and funding employee well-being initiatives can raise general job satisfaction and retention. Prioritising ethical employment practices is crucial for stakeholders to build a fair and sustainable basis for the hospitality sector.
Conclusion
In conclusion, developing effective leadership styles has a big impact on employee motivation, engagement, and ultimately customer service in the hospitality industry. Issues such as inadequate leadership, unstable employment, and unfavourable workplace environments impede the prosperity of an organisation. The implementation of ethical employment practices and corporate social responsibility (CSR) are crucial. CSR programmes, like those of Marriott International, can lessen their negative effects on the environment and encourage ethical procurement. Ethical employment practices tackle problems such as zero-hour contracts and shift labour. Establishing fair labour practises and ethical standards in the hospitality industry necessitates a coordinated effort by businesses and governments to resolve issues.
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