EG706 – AU MSc International Hospitality Management
EG706 – AU MSc International Hospitality Management
Introduction
The report has focused on analysing the organisational behaviour of hospitality companies based on the impact of different factors. The selected factor for this study is leadership style. In this report, different leadership styles will be elaborated and their key factors will be discussed. In addition, the impact of leadership style on the organisational behaviour of hospitality organisations will be clearly analysed. Along with that, the study will discuss the importance of CSR activities and ethical employment practices in the business. In this section, practices such as shift work, pay or modern-day slavery, zero-hour contracts and so on will be clearly discussed.
Critically evaluating contribution leadership style in shape organisational behaviour
Analysing different leadership styles for hospitality companies
In the hospitality business, a suitable leadership style is needed to be implemented to create a professional and engaging relationship between the leaders and the employees. Only then, a proper business management strategy can be implemented in the organisation. Different leadership styles can be used in the hospitality organisations such as autocratic leadership style, democratic leadership style, transformational leadership style and transactional leadership style (Elkhwesky et al. 2022). Elaboration of each leadership style is given below.
Autocratic leadership style
The autocratic leadership style directly focuses on a particular person who controls all the business-related activities and makes all the decisions about the company’s performance (Ohunakin et al. 2019). In this type of leadership, opinions of other managers or employees are not taken into consideration by the current leaders. In order to shape the organisational behaviour of the hospitality industry, autocratic leadership is not the best leadership style. In this style, leaders do not focus on understanding the ideas or suggestions of the employees and forces employees to follow the ideas or suggestion given by the leader (Ohunakin et al. 2019). In this case, the employees can be demotivated in conducting work in that hospitality organisation and they may not show commitment toward their work.
Democratic leadership style
Democratic leadership style can be considered as the opposite of autocratic leadership style. In the democratic leadership style, the leaders focus on gathering ideas from other employees and managers to select the best business strategy in the company (Huertas-Valdivia et al. 2019). Democratic leaders focus on interacting with different employees in the organisation so that a trustful and formal relationship can be developed between the organisation and the company. On that basis, the employees focus on showing commitment towards their job and continuing the business activities accurately. The democratic leadership style empowers the employees which helps to develop a positive work culture and organisational behaviour as the loyalty of employees expands at a constant rate.
Transformational leadership style
In the case of the transformational leadership style, the main focus of the leaders is to transform the groups and company by motivating the employees to improve their capability. In order to do that, different leadership strategies are considered by the leaders based on the requirements of the business (Rabiul and Yean, 2021). If the leaders evaluate that implementation of employee empowerment is important to achieve the business targets, then the leaders empower employees and allow them to make effective business decisions. In respect to transformational leadership, the overall organisational behaviour can improve if employees are satisfied and motivated.
Transactional leadership style
Finally, the transactional leadership style helps to develop organisational behaviour as the leaders offer a particular reward to the employees for their contribution to the business. This style is taken into consideration for a short time but it helps to improve the relation between the employees and the organisation (Rabiul et al. 2023). Hence, employees are motivated toward their work and conduct business tasks effectively.
Impact of leadership style on shaping organisational behaviour
In order to shape the organisational behaviour of hospitality organisations, it is clear that an autocratic leadership style is not the best option. Considering autocratic leadership style can actually increase conflict between the organisation and management (Alblooshi et al. 2021). The organisational behaviour of hospitality companies can only be improved if suitable factors among the workers are taken into consideration. This includes social system, need for management, mutuality of interest and so on. These factors cannot be analysed using the autocratic leadership style as it only considers the decision and opinion of one particular person. In order to shape organisational behaviour, the best leadership style is the democratic leadership style. With the assistance of a democratic leadership style, the leaders are capable of understanding the needs of the management by interacting with them (Mansaray, 2019). After the interaction, ideas are collected from the employees, which are implemented in the business. This helps to maintain mutuality of interest and creates a social system in the business. Therefore, the work culture of the organisation can improve which helps the business to continue the managerial activities efficiently in the business.
In order to shape the organisational behaviour of hospitality companies, transformational leadership can be highly beneficial also. Transformational leadership can be defined as a leadership approach that brings in changes in individuals and social system by understanding their needs and capabilities (Tortorella et al. 2021). After that, the leaders motivate the employees so that they can be able to improve their abilities and contribute to the business. This allows employees to receive better job opportunities in the organisation and positive behaviour is seen among the employees, which is beneficial. In addition, leadership style such as transactional leadership helps to understand the needs of the management and provide them with bonus, incentives, promotions and salary increment for developing their financial and career positions (Akanji et al. 2020). Due to the evaluation and achieving the needs of the employees, positive behaviour among the management can be developed toward the business which may help to develop the overall business performance of the organisation. Henceforth, organisational behaviour can be shaped by leadership styles as it helps to achieve the organisational factors.
Critically evaluating significance of CSR and ethical employment practices in hospitality companies
Significance of corporate social responsibilities
In the case of hospitality organisations such as restaurants and hotels, CSR activity is mandatory to avoid any type of legal crisis within countries it operates. As opined by Rhou and Singal (2020), while considering the hotel business, the companies focus on maintaining the CSR guideline of safety of each tourist and local customers and increase awareness among them to not pollute the tourism area and follow the environmental guidelines such as using proper recycle bins and waste bins for different products. In addition to that, the hotels and restaurants focus on hygiene in food and beverages to avoid any type of health-related issues among the tourists. In this respect, the business is capable of improving the social benefits and attracting more tourists toward the business. In addition to that, according to Guzzo et al. (2020), each hospitality company are forced to maintain environmental guidelines, which include reduction of carbon emission, power saving, waste management and so on. In the hospitality organisation, CSR not only helps to gather social benefits and market reputation but also mitigates legal crises with the government.
Hospitality companies need to focus on implementing suitable and effective CSR strategies to improve the environment of the operating countries. Therefore, the citizens will focus on purchasing the products and services of the hospitality companies. Similarly, as opined by Franco et al. (2020), legal charges against hygiene issues, waste management issues and carbon emission-based issues can be mitigated by the hospitality companies. Instead, an eco-friendly business strategy can be implemented by the management that can help to expand the business performance and improve market reputation. In order to develop CSR in hospitality organisations, the companies have considered a triple-bottom-line model. In the views of Lee et al. (2023), the triple-bottom line focuses on people, planet and profit which helps the organisation to implement green management technologies. Green management technologies reduce power consumption and mitigate carbon emissions and waste management activities.
With the assistance of a triple-bottom-line strategy, the management of hospitality companies can contribute toward the environment and focus on improving the overall environment (Hayat and Afshari, 2022). In the case of people, the safety, security and needs of the people including both consumers and employees are considered in this section. It is evident that the business evaluates the needs of the consumers to improve customer experience and develop sales revenue. In addition to that, with the assistance of meeting the employees’ needs and focusing on providing job security and fair wages, the potential employment issue of the organisation is mitigated (Peña‐Miranda et al. 2022). As a result, the overall business performance and efficiency can improve in future years.
The final factor of the triple-bottom line model is profit in which the financial benefit of the organisation is analysed by the management. In respect to this factor, the company implements strategies that improve customer numbers and expand income for hospitality organisations (Ertuna et al. 2019). For example, maintaining hygiene in the hotel and restaurant can help to reduce the negative impact of the products on the health of the employees. As a result, the potential profit of the organisation can develop which is beneficial for the business.
Importance of various ethical employment practices
In order to avoid employment issues and develop the quality of hospitality services, it is important to implement suitable ethical employment practices. It is understood that ethical employment practices can allow the organisation to meet the needs of the employees and motivate the employees to complete their daily business practices with accuracy, efficiency and dedication (Franzoni et al. 2021). In this respect, the efficiency of the business tasks can be improved over the years, which may help to meet the organisations’ mission and visions. The main ethical employment practices in the hospitality industry include shift work, zero-hour contracts, unsociable hours and modern-day slavery. Shift work can be determined as a work schedule, which directly focuses on performed rotations for a particular job (Achmad and Yulianah, 2022). For example, guarding duties in the organisation are conducted in shift work so that one group can focus on guarding the hotels and restaurants during the day and one group can guard it during the night. Shift work helps to motivate the employees to conduct one particular job on a regular basis and they do not get bored doing the same job regularly.
In some cases, the management of hospitality companies and the employees consider a zero-hour contract. The focus of zero-hour contracts is to provide the employees with an inconsistent work schedule in which they can do the job part-time or full-time based on availability (Goffi et al. 2022). With the assistance of these ethical job practices, the employees can conduct different types of jobs on a regular basis based on different types of requirements. Therefore, the employees can be satisfied and the business activities can be conducted for the hospitality companies. Unsociable hours are also considered by the organisations for a group of employees who are not fixed with the organisation. Hospitality business demands expand during weekends, holidays and late nights which is the reason for unsociable hours (Franzoni et al. 2021). In this case, employees are paid extra for working in the holidays, weekends and late nights in the organisation. Based on that, an extra income is earned by the employees which motivates them to conduct their work in unsociable hours and the companies can provide the service on holidays and weekends.
While considering the employment activities, it is evident that the companies do not treat their employees as slaves. Modern-day employment mandates employees to wear a particular ID card, a uniform or a particular dress code and other requirements like strict regulations, job contracts and long0term working hours (Ettinger et al. 2021). Due to these strict regulations and contracts, the employees do not engage soulfully with the organisation. Instead, they try to seek different jobs, which do not force them to follow a particular rule. This corrupts the ethical employment practices in an organisation.
Recommendation
From the above discussion, it is recommended that businesses should focus on treating each employee better and not force them to follow any strict regulations or contracts. Instead, it is recommended that the hospitality companies allow the employees to wear formal dress, which is better for the employees. With the assistance of this process, modern-day employees can be able to focus on their jobs in a proper way. In addition to that, they will not feel like modern-day slaves in the organisation, which is beneficial, and will improve the motivation among the organisation and avoid any type of unnecessary conflicts with the companies. In addition to that, it is recommended that the management needs to introduce a triple-bottom-line model in the business strategy. Triple-bottom line can help the organisation to implement a strategy to conduct business activities without compromising the needs of generation and current citizens. Henceforth, the market reputation of the company can easily develop over the years.
The final recommendation that can be provided to the organisations is introducing a better leadership style such as democratic leadership style or transformational leadership style. Implementing either a democratic leadership style or a transformational leadership style can help to improve the overall organisational behaviour and develop a formal relationship between the employees and leaders. As a result, conflict of interest can be reduced and businesses may be able to continue their activities more efficiently.
Conclusion
It is concluded that four types of leadership can be implied in hospitality organisations such as democratic, autocratic, transactional and transformational. However, compared to all these leadership styles, autocratic is used less as it does not improve the organisational behaviour. Instead, democratic leadership is suggested for use in the hospitality industry as it helps to understand management needs and implement a suitable strategy to achieve those needs. Moreover, empowering the employees helps to motivate the employees toward their jobs and include new and effective business strategies in the organisation to develop overall business efficiency. On that basis, the companies can be able to achieve the expected outcome and stabilise the business performance. In order to conduct the CSR activities, the triple-bottom line can be considered by the management of hospitality companies, which may help to implement green management strategies.
References
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