Analysis Of The Hospitality And Tourism Industry


Hospitality and tourism industry is the industry which is growing fast from the other industry because the trend has changed, people travel from one place to another place for many purpose in which sport, history, religion, sex and education. If we see the growing rate of hospitality and tourism industry expected 9.5 trillion in 2011 which is more than from the other industry

Hospitality and tourism industry is the combination of accommodation, food, recreation and entertainment. This is the industry which is growing fast because the people travelling from one place to another place therefore many big hotels opened through out the world, not only this many new places discovered and every country improved its infrastructure because to develop itself and the main important things is that to promote their culture.

In hospitality and tourism industry is a sector where the people do practices, training and provides services to other peoples in a proper way. In this industry the number of employees is to much from the other organisation therefore people are working there from the other cultures they belongs to different country, different languages, different style and different nation, for example we know that an international hotel employees are working there from different country, there languages, style, behaviour and also the colour complex is different from other peoples.

Cultural Diversity

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Corporations in all industries are heartening minorities, women, elderly workers, and people with disabilities as well as foreign workers to link white males in the workplace. The following study will spotlight on the need for diversity management and how companies are heartening them to join an ever-mounting workplace. Business owners and managers, experts say, will still need to maintain or step up efforts to recruit and advance ethnic minorities in the year 2000 and ahead of. That's essentially because having a diverse work force and managing it effectively will simply be good business for a mixture of companies.

The changing in globalised world economy and escalating enormous competition of any organisation particularly the hospitality and tourism industry face of every organisation changed by workforce and also culture diversity. Corporations in all industries are heartening minorities, women, elderly workers, and people with disabilities as well as foreign workers to link white males in the workplace. The following study will spotlight on the need for diversity management and how companies are heartening them to join an ever-mounting workplace. Business owners and managers, experts say, will still need to maintain or step up efforts to recruit and advance ethnic minorities in the year 2000 and ahead of. That's essentially because having a diverse work force and managing it effectively will simply be good business for a mixture of companies.

Parts of Culture

It is also the set of values, beliefs, rules and institutions held by a specific group of people and also there are so many elements included in culture, these elements are

Manner and Customs

Attitudes and Beliefs


Legal and Political

Family culture




The culture are also different in any religion because there so many religion in the world and there culture is also different from one religion to another religion, for example Christianity culture different from the Judaism and Hinduism and Sikhism in India is different from the Islam not only this western culture is different from the eastern culture.

Today is every thing is growing fast specially in hospitality and tourism industry and business environment is moving towards a globalization, people are moving forward for one place to another place for many purpose therefore there are so many benefit in culture diversity these benefit are

Cross culture communication

Improvement in skills

Information of other culture

Prove himself between other people

Culture awareness improved

Moves from one to multiple foreign function

Moves from similar to dissimilar environments

Handling from international operation

"Organizations need to go beyond simple gratitude of cultural diversity to active diversity management. Diversity management is a wide-ranging process since all employees belong to a culture, including those from the organizations' traditionally dominant cultural group. (Edewor, et al, 2007)".

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Owing to mergers and international cooperation as well as migration flows which lead to multicultural societies, companies and institutions will increasingly have to take into account the foreign personnel, foreign laws and foreign market parties. They must recognize that diverse employees possess cultural competencies, for example, language skills and cross-cultural expertise that represent a sustainable source of competitive advantage. Organizations that continue to focus on what worked in the past and do not pay attention to current and future market demographics are excluding significant sources of profit (Edewor, et al, 2007).

These are some factors that should be measured when a company decides that it should visualize a plan to diversify itself:

What are the demographics of your customer base? (E.g. age, income, gender, education, ethnicity, etc.)

In how many countries does your organization function?

How much does employee revenue cost your company?

How much does your company spend yearly on recruitment?

How much have discrimination/harassment suits cost your organization in the past year?

How frequently does inter-group clash take place?

Is there a high level of revenue in the middle of certain employee groups?

Are your policies and remuneration striking to possible diverse recruits?

Is your organization trailing top aptitude because people do not feel esteemed, incorporated or heard?

Do all employees feel that their talents and skills are well rewarded?

Is there some career advancement possibility for employees and a focus on developing people internally?

Is diversity reflected in your procurement policies and between your suppliers?

Once a company answers these questions it will have a healthier idea of what steps to take to help diversify it and what areas need particular consideration. And after these steps are taken there should be an obvious improvement in the functionality of the company as it finds it easier to converse with a larger number of people and employees enjoy a more positive work environment. While it is obvious that minorities and women are not being represented quite in the workforce as well as in managerial roles, there are some changes taking place in the job market and some court cases with some severe penalties for discrimination against color race or gender.

An organization can only progress and to achieve their goals when a leader understand the culture diversity in any organization because now a day every big or small organization we can see the employees they belongs from different culture also in hospitality and tourism industry therefore leader of any organization is play a very vital important role to manage their employees.


A leader is a person who choose by the organisation's employees and he is the person who influences to other employees to achieve the organisation' goals and moves the company in a right direction and make it more coherent and cohesive.

We can also say that a person who provides a right guideline and lead the people in a right direction to achieve the goals. There are so many author who defined the leadership in there own words for example

John C Maxwell:

"leadership is influence nothing more, nothing less and moves beyond the position defining the leader, to looking the ability of the leader to influence others in which who would consider themselves followers, and those outside that circle."

Warren Bennis

"Leadership is function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realize you own leadership potential."

The Collins English Dictionary

"The period during which a person occupies the position of leader, during his leadership very little was achieved."

Roman Catholic Diocese of Rochester

"The leader is the person who influencing the behaviour of other people toward group goals in a way that fully respects their freedom".

Importance of leadership in hospitality

Hospitality and tourism industry is growing fast because of change trend, competition, rapidly changing in technology and thinking of people there is the industry which provides the best services according to the people demand and therefore many multinational hotels and airlines moved there business across the world, for example England is also the multicultural country people are living here all over the world a lot of people is coming all over the world every day for different purpose and also the united kingdom was the 3rd most visited country till march 2010.

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Leadership is important in hospitality industry because this is the industry where people are working, visiting from all over the world especially in hotel, where people stay and also this industry recognized the role of cultural diversity and how the impact of leadership in operating business. The competition of many organisation and the culture diversity in hospitality industry, good leadership have a quality to manage culture diversity not only external people but to motivate there internal customer as well as the need for leaders that can manage cultural diversity.

Leadership Qualities




Take risk

Emotional resonance

Build Teams







Theories of leadership:

There are so many theories which defined for the leadership, every one define it in there own word, in these theories there are so many things which related each other and also have the some point which is against each other, here we have the some theories which have defined for the leadership.

Trait Theories

According to Trait theories leaders are born with inherit certain qualities and traits which make them better for the leadership. Mostly traits are associated with proficient leadership. This theory is also developed from Great Man theory of leadership. Some traits are also suited for the leadership and if the people make good leader have the right combination of traits.

Great Man Theory

Great Man Theory is related with Trait Theories that the leaders are born, not made. According to that theory people are born with great qualities for leadership and have the ability to lead the people and control any situation and would arise himself when it is urgent need.

Situational Theories

Diverse styles of leadership included in situation theories. According to that theory action based upon different situation and this is very suitable in different action.

Behaviour Theories

This theory is totally different from the Great man and Trait theories according to that theory people are made the good leader through the learning process, observation, teaching and their mental qualities. According to that theory people are made not born.

Management Theories

Management theory is known as transactional theories. This theory focus on the role of organisation, supervision and group performance and also the based of reward and punishment, if the employees performance will good that is given a reward but on the other hand if the performance lever will not match according to the organisation level he or she is punished. This types of theory often used in many organisations.

Relationship Theory

Relationship theory is defined the connection between the leaders and followers. This theory motivates and inspires employees by working in group members and to achieve the higher good task for the organisation. Leader are also focused the performance of the group member and also watch that the criteria of work is good for each person to fulfil the task according to the potential of the every person.

Participative Theory

Participative theory shows that the ideal leadership style is one that takes the decision of other people in his account and encourage them to take the right decision and their contribution in the organisation and help them to more motivated and productive for any organisation, however the leader have the final authority to take any decision.

If we evaluate these theories to each other than we find that each has the different point of view and some point is related with each other for example if we evaluate the trait theory with Great Man Theory we can see the both the theories are say the same thing for example trait theory said that the leader are born not made and the great man theory is a same with trait theory according to great man theory leader are born with their inherit qualities and handle the situation according the situation. In these theories both are agreed that the leadership qualities are inherent nobody can not make him/her a good leadership. But on the other hand if we see the behaviour theory which is totally against the great man and trait theories but in behaviour theory people can make a good leader by their own qualities and learning process and participative theory shows that the everyone can take the right decision. Relationship theory is defined the relation between the employees and leader, leader are also watch the working condition is suitable for every employee.

Latest Theories on leadership:

More recent debate in the leadership arena is focused on the one hand one the new leader approach of Burns 1978[18] who describe the new leaders as either transactional of transformational leaders with the former viewing interactions with followers as transactions or exchanges which may exploit the needs and desires of the follower and the latter being more of an inspirational motivator. On the other hand the "super leader" (Sims and Lorenz (1992) [19]) is a more informal style of leadership and one the authors described as "one who leads others to lead themselves." and going further in one of the latest opinions on the issue say that "the best of all leaders, is the one who helps people so that eventually they don't need him or her."

Basic Leadership Style:

There are different leadership styles from which an organization can choose and also different situations needed different style and each leader should know how to exhibit a particular approach. Some leadership styles are:


Classical Approach

Every decision making authorities are given to manager

Nothing interference allowed by the staff

Staff are bound to obey orders without getting any explanations

Rewards and punishment structure setup for the staff


Manages "by the book"

Policy offered not a leader

Bound to do everything according to procedure or policy

Referred to the next level if not covered by the book

Enforces the rules

3. Laissez-faire:

Also known as the "hands-off¨ style

Easy environment given to the staff by the manager without any direction

Staff are able to take decision to get their determine goals and resolve problems by using authority


4. Democratic:

Also known as participative style

Involving staff to make every decision related to the organization

Staff should be informed about everything that affects their work and also sharing decision making and problem solving

What is motivation?

Motivation is defined as the process in which pushes toward acting and performing and take the action and achieving their goals. If the desire and ambition are there the level of motivation is high and without them motivation are failure.

Motivation can be strong if you have a vision or goal, a clear object should be there what you want to achieve, because motivation is needed every action and goals.

It is most important and also the key of success, you cannot get the positive result if there is no motivation in the work.

In hospitality and tourism industry where there is culture diversity in internal and external customer specially if we see the employee who are working in the organisation form the different countries, it is very important for the leader to motivate there workers in the organisation, hospitality leader and managers must have the enough knowledge and basic information of motivation. Some time managers cannot motivate their staff but for their knowledge they can provide the better work environment in which their can self motivate.

Theories of motivation:

Hierarchy Theory

Hierarchy theory is most vital discussed theories of motivation by Abraham Maslow, according to his theory people wants and desires influences with their behaviour. This theory base many factors which the human being wants in which self-actualization, esteem needs, social needs, safety needs, and physiological needs. There are many other things which cover in this factor. In his theory he explained that give a chance to all employees fulfil their higher level of needs which is beneficial to achieve the goals of the organisation.

Herzberg's two-factor Theory

According to Herzberg theory people are motivated by two factors in which motivation factor and hygiene factor, these two factors are motivated people. Motivation factor include achievement, task, interest in job, higher level task, and growth, on the other hand hygiene factors employees are motivated by working conditions, wages, status, security, job, company's name and quality of supervision. If there is high hygiene and high motivation employees are more motivated but if there is low hygiene and low motivation employees are more unmotivated.

McClelland's Acquired Theory

American psychologist David McClelland explained the three factor motivation theory; in his theory he provided that the motivation can build in employees by need for achievement, power and affiliation. Manager should study and to recognize these needs and then create working condition that are responsive to them.

Equity Theory

Equity theory discussed the reward system, employees should comparisons between their job and also the rewards which is given by organisation, if he think that the rewards system is unfair therefore he will not take more interest in his job, call in sick more often therefore in organisation it is very important for the manager that the reward system should be fair and every one get the reward by their own effort which help the employees more motivated for the organisation.

Motivation theories Comparison

"A great man is one who can make a small man feel great, and perform great."

If we compare the motivation theories to each other then we can see that every theory have some good point and also some weak points for example if we compare the Maslow's theory with Herzberg theory then we can find that the Maslow's theory depend to motivate the employees five needs in which social, safety, physiological, esteem and self-actualization while Herzberg theory depend two factor in which motivation and hygiene factor if we compare these theory to each other then the difference are that Maslow's theory is suitable for any job but Herzberg theory is only for managerial jobs and staff, Maslow highlight the five needs for the employees for their working place that these five thing are motivate for the staff while Herzberg presented just two factor. In Maslow's theory in my opinion it is not necessary that all the people motivate by all five factor no doubt this all factor is the need of people but if we see specially in hospitality and tourism which is the industry of multicultural people can be motivated by some factor for example some peoples like just their job and if they get job according to their choice may be they do not bother some other factor and just interest their job therefore firstly it is very important for the management to recognize the needs of job level according to the staff which they like because in my opinion if the an employee will not happy with their job he will not take interest in his job however money is good because some people wants the mentally satisfaction they will not bother the salary. Some people are just thinking about the salary therefore they are not motivate by other factor and if we see Herzberg's theory which is related only two factor in which hygiene and motivation according to him he developed his theory by investigation of 200 accountants and engineer only in USA he just investigated only in USA and developed his theory but In my opinion in hospitality and tourism industry which is difference from accountant and engineer in hospitality tourism where every thing is difference because of globalization specially the main product which is service in hospitality therefore in his theory he explained that if there is high hygiene in an organization then the motivate factor will increase if hygiene factor will low employees have a lot of complaint, for example if we see in hygiene factor there is one factor of company policies and administration, an organisation will change their policies according to the situation and it is not important that if the policies and other hygiene factor will review the motivation factor will also increase sometime organisation will change their marketing strategy to save their business but employees should to take interest their job and achieve the goals.

Current Issues in Motivation

In an organisation where the employees working from the different culture therefore everyone have the different skills, abilities, interest, personalities, needs and aptitude, therefore motivation programs should be most applicable in different cultures.

Cross Culture Consistencies

Flexible Work/Job Schedules

Compressed workweek

Daily hours

Flexible working hours

Job sharing


Motivation Professionals

Update their knowledge on regularly basis

Loyalty is given to their profession

Obligation to their field of expertise

Challenging in job

Organization support

Motivation contingent workers

Job training opportunity

Equality in bonus and compensation

Opportunity for employee to become the permanent job

Rewards programmes

Wages incentives, bonuses and profit sharing

Involving employees to take the decision in workplace

Employees appreciation for a well done job

Giving personal attention, approval and expressing interest

Star Bucks:

Starbucks is an internationally recognized hospitality chain. A case study based on this organization will be taken into consideration. This concern is known for its ability to maintain its customers and have a comparatively low turn-over rate. The managers of the establishment refer to their peers and the people working under them .By doing so, the corporate gap of title is bridged. The managers of the unit work aside the employees at the front line of service. This shows no bias in work, leading to self respecting employees who love their job. This is transmitted via the employees to the customers, creating approval and loyalty. Simultaneously, it creates an open environment that contributes greatly to look of innovative thinking. Starbucks has invested in creating a place where its employees can rest and enjoy. This also forms a platform for creative inputs which are worth. As has been mentioned before, creativity of a person may never be replicated. The cultural barrier is present in every organization. How it is dealt with, is subject to change. Starbucks managers have authority to reschedule work timings of individuals. This is done in accordance with employees personal or religious needs. Furthermore, emphasis is given to understanding an employee's needs and problems. By following such exercises, the cultural barrier is overcome. At a particular shift, there are 6-8 employees working. As the unit of people working together is relatively small, people of various religious and ethnic backgrounds converse and knows each other well. This again is another manner in which the cultural barrier is overcome at Starbucks.

Starbucks Hotel:

The Starbucks Hotel believes, like many others worldwide, that employee motivation is an important aspect attributing to the companies success. The Starbucks Hotel will provide training both for job skills and safety. Standards-based training occurs weekly in each department. Managers and employees will spend about 15 minutes to talk about their ideas. It is an opportunity to fine-tune or learn new skills. This training provides an opportunity for communication within the departments. For the employees to have their ideas heard and processed (if valuable) creates a sense of belonging and motivates them, as they have instilled in them the fact that they are valuable. Given below is a list of benefits given to the employees with the intention of motivating its employees.

Uniforms: provided and maintained on the premises.

One meal a day in employee dining room at no cost.

Employees of the month/year Manager of the quarter/year.

Paid time off program - used for sick pay, day off, vacation.

Departmental incentives for safety/revenue generation/expense savings.

Higher pay than the other hotels: Salary increases will occur on a schedule for Union employees, or annually for non- union employees.

The Starbuckss Hotel will reward longevity with a watch for five years and a diamond pin for ten years. That diamond pin then has a new jewel set in it at each subsequent five year interval. After twenty years with the Hotel, a pin would have a diamond, a ruby and a sapphire.

The Starbucks Hotel prefers to promote from within whenever possible.

However, this can be frustrating because often employees assume they are entitled to promotion based on seniority. Sometimes attendance/performance issues preclude allowing transfers or promotions. While the Starbucks Hotel trains many individuals in their jobs, even if they have had no experience, certain jobs (sales, accounting, etc.) require a certain level of expertise that must be grown into, as opposed to handed over (Personnel Communication, October 25, 2001). As said by Maslow (1943), there are various needs, that when fulfilled, create a motivated spirit and environment to work in. Saint Paul's hotel is providing their employees with various benefits and perks. It can be seen that basic psychological needs are being fulfilled. By doing so, the basic level of motivation is instilled. Safety needs, being the second level of Mallows Hierarchy of needs, is also being given, in the form of health, dental and life insurance. By doing so, it is visible that the hotel cares about its employees and their well being. Gina Southerly, training and employee development manager at the Starbucks Hotel stated that right now we continue to look at how to get better support in the transportation process. However, nowadays we would like every employee to take the bus. We are looking at providing a better support structure for people who have to 29 take the bus or people who have to drive. Moreover, we are looking for the opportunity for childcare for both union and non-union employees. That's two key things right now transportation and childcare. We have a lot of employees who have problems with a good childcare system and we have a candidate who has come down to fill out memo about not enough parking spaces what we should do, and who's going to pay for parking (Personnel Communication, October 25, 2001). This is the extent to which Starbucks hotel engages itself in employee satisfaction, which is a ground for motivation.


If different cultures become a problem within the organization and the barriers cannot be trespassed, there are some cross-cultural training available for companies and corporate to improve this situation and take advantage of this powerful ingredient like the multicultural employees working for the same organization. Workplaces today are become increasingly diverse with employees of different genders, races, cultures, ethnic origins, and lifestyles. There have been so many changes in the cultural make-up of organizations that it has become imperative for leaders and supervisors to understand cultural diversity and how it can affect their organization.

Organizations require going clear of simple credit of cultural diversity to vigorous diversity management. Managing diversity is a complete managerial process for developing an environment that works for all employees. Diversity management is an ample process since all employees fit in to a culture, as well as those from the organizations' classically leading cultural group.

The aptitude to struggle productively in the global economy depends on the capacity to tap the talent and insights of an ever more diverse workforce all over the world, organizations must, therefore, be implicated. Due to mergers and international assistance as well as migration gush which lead to multicultural societies, companies and institutions will increasingly have to take into account the foreign personnel, foreign laws and foreign market parties. They must identify that diverse employees hold cultural competencies, for example, language skills and cross-cultural know-how that represent a sustainable source of spirited gain. Organizations that bear on focusing on what worked in the past and do not pay notice to current and future market demographics are exclusive of significant sources of profit

The world is changing. Business now engages billions in international currencies, and the constant movement of supplies and services, and particularly oil, chemical, hospitality and dangerous goods is essential. This traffic requires good collaboration between government branches like shipping, defense, agriculture, organizations, and corporations involved, as well as individuals and the community.

In a modern business environment the skill of building great relationships within and without the organization gives a strategic edge. Organizations are not only looking for renewable contracts, lower turnover of staff, and greater return on investment, they are also looking for individuals with vision who can understand what work is, and make it better. Who act with courage, competence, and commitment and yet remain themselves.