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The hospitality industry especially the lodging is a very old, popular and big organization. Hotel is a kind of lodging house where people come from different places for short living by paying money. To provide them service and look them after it needs workers and it needs a supervisor to command and control their work which could be treated as leader. Leadership has been described as the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. In other words, leadership is organizing a group of people to achieve a common goal. (Burns, 1978)
Taj Suits and Residence and PalacesÂ is a worldwide chain of hotels and resorts. A part of theÂ Tata Group, one ofÂ India's largest business conglomerates, Taj Suits and Residence Resort and Palaces own and operate 76 hotels, 7 palaces, 6 private islands and 12 resorts and spas, spanning 52 destinations in 12 countries across 5 continents and employ over 13000 peopleÂ . Besides India, Taj Suits and Residence are located in theÂ United States of America,Â England,Â Africa, theÂ Middle East, Â Maldives, Â Malaysia,Â Bhutan,Â Sri Lanka andÂ Australia. [Taj Suits and Residence & Palaces wikipedia, the free encyclopedia]
There are two five star hotels located in London Taj Suits and Residence situated at 51, Buckingham gate, the heart of the London. Along with the customers, its employers and employees come from different places, race, and culture. By paying attention to these cultural differences in the workforce, the company raises their levels of comfort and capitalizes on employees' different skills and abilities as a major asset to the company's productivity. One can say that the diversity of culture is playing here a mother role. (Guide of Tata Group)
Leadership and management are interrelated concepts. Leadership in Organizations has a specific focus and there has been an attempt to bridge the gulf between academics and management practice. Those who are on the top managerial positions need to have leadership skills as there are people working under them.Â The lodging industry is the sector of maintaining chain of command from top to bottom level. Taj management must have the skill of directing and commanding the staffs and able to make them realize about their duty and responsibilities properly. The management of Taj Suits and Residence has play an effective leadership role in making sure that the hotel gains a competitive advantage in the hospitality industry
2. LITERATURE REVIEWS
AÂ literature reviewÂ is a body of text that aims to review the critical points of current knowledge including substantive findings as well as theoretical and methodological contributions to a particular topic. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as future research that may be needed in the area.
CURRENT MANGEMENT THEORIS
Management theory is a set of ideas and rules designed to help managers Management expert Mary Parker Follett succinctly defined management as the art of getting things done through people.
Management theory is a form of psychology theory. It goes hand-in-hand with behaviour modification, reinforcement and other ideas derived from psychology books
The practical experience began during the industrial revolution in the early 18th century. The theory, however, was developed during the golden age of 1919 and 1925 .And now, a revolution is taking place where ideas of shifting management power to the employee in a process called self-management is becoming the norm for just about everyone. Some popular management theories are-
Bureaucracy is a concept inÂ sociologyÂ andÂ political scienceÂ referring to the way that the administrative execution and enforcement of legal rules are socially organized. The Taj Suits and Residence practice it to combine the organizational structure, Â procedures, Â protocols, and set ofÂ regulationsÂ in place toÂ manageÂ activities. It is often represented by standardized procedure (rule-following) that guides the execution of most or all processes within the body; formal division of powers;Â hierarchy; and relationships, intended to anticipate needs and improve efficiency. A bureaucracy traditionally does not create policy but enacts it.Â
Participatory Management is the practice ofÂ empoweringÂ employees to participate in organizationalÂ decision making. While senior managers retain final decision makingÂ authority in the Taj Suits and Residence, participatory management takes place into practice, employees are encouraged to voice their opinions about their working conditions in a safe environment, protected from the potential defensiveness of middle managers who they might criticize.
Strategic Management is a level of managerial activity under setting goals and overÂ Tactics and provides overall direction to the enterprise. It includes not only the management team but can also include the Board of Directors and other stakeholders of the organization and deals with the major intended and emergent initiatives taken byÂ general managersÂ on behalf of owners. This theory appropriately applied to the Taj Suits and Residence to utilization of resources and enhances the performance in external environments.
It entails here specifying theÂ mission, vision and objectives of the hotel, deciding developing policies and plans, and then allocating resources to implement the policies and plans, projects and programs. It also assesses its competitors and sets goals and strategies to meet all existing and potential competitors. It reassesses each strategy annually and makes changes if needs by a new strategy, new technology, new competitors, a new economic environment or a new social, financial, or political environment. (Lamb, 1984)
Leadership is "organizing a group of people to achieve a common goal." The leader may or may not have any formal authority. Interest in leadership increased during the early part of the twentieth century. While many different leadership theories have emerged, most important theories can be classified as-
History's greatest philosophical writings from Plato'sRepublicÂ to Plutarch'sÂ LivesÂ have explored the question of "What qualities distinguish an individual as a leader?" This idea that leadership is based on individual attributes is known as theÂ "trait theory of leadership." In other words, leaders were born, not developed. The capacity for leadership is inherent - that great leaders are born, not made, this theory supports the trait theory and known as GREAT MAN theory. This theory often portrays great leaders as heroic, mythic and destined to rise to leadership when needed.
Behavioral theories of leadership are based upon the belief that great leaders are made, not born. Rooted inÂ behaviorism, this leadership theory focuses on the actions of leaders not on mental qualities or internal states. According to this theory, people canÂ learnÂ to become leaders through teaching and observation. The HR department of the Taj Suits and Residence maintains an ACR to keep the records of all of the staffs especially about their punctuality, behaviour with the customers and other staffs, manners and so on. Relying upon this record the promotions and increments decided.
Situational theory: This theory assumes that different situations call for different characteristics; according to this theory, no single optimal psychographic profile of a leader exists. The Taj Suits and Residence does not rely on the trait theory to select a staff as an operational leader. But the ACR also has the records of any act or service performed by any staff at an unascertained situation for the benefit of the organization or the duty. This situational activity is rewarded in financially and also by promotion by the management.
Sometimes the Taj Suits and Residence appoints a leader to perform a special task or select a member of staff with a charge to supervise a task of a team. He is responsible for the performance of the team and is rewarded or punished accordingly. This is based on the transitional leadership theory and such leaders are called the transitional leaders (Burns, 1978).Â It gives on the opportunity to lead a group to accomplish a predetermined goal in exchange for something else.
Another types of leadership is in practice here to motivate a team to effective efficient. This isÂ transformational leadershipÂ (Burns, 1978). Normally perform by the management itself. Communication is the basis here for focusing the group on the final desired outcome or goal attainment. The management of the hotel is highly visible and uses chain of command to get the job done.
MotivationÂ is the activation of goal-oriented behavior. motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object,Â goal, state of being,Â ideal, or it may be attributed to less-apparent reasons such as altruism,Â selfishness,Â morality, or avoidingÂ mortality.
Abraham Maslow (1908 - 1970) along with Frederick Herzberg (1923-) introduced the Neo-Human Relations School in the 1950's, which focused on the psychological needs of employees. Maslow put forward a theory that there are five levels of human needs which employee's needs to have fulfilled at work.
All of the needs are structured (showed bellow) into the hierarchy and only once a lower level of need has been fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied. For example a person who is dying of hunger will be motivated to achieve a basic wage in order to buy food before worrying about having a secure job contract or the respect of others.
Dr. Maslow hypothesized that people are motivated by a hierarchy of needs. The hierarchy he described may be drawn as follows:
The Taj Suits and Residence has successfully fulfilled the needs in the workplace by ensuring healthy and safety working environment for all, team for work where necessary. There are some challenging projects for the management according to the post and efficiency. It recognizes the strength of intelligence and assures prestige and status who deserve among the employee from top to bottom.
Frederick Herzberg (1923) had argued factors which could directly motivate employees eg. Interest and joy in the work, opportunity for extra responsibility, recognition and promotion etc. these are very closely related with the Maslow theory discussed above. However, the hotel provides a comfortable environment to work other with joy, division of work increases the personal responsibility and competition for reward and promotion. The most attractive factor here is its level of pay- higher.
Jhon Stacey Adams - The most effective theory on job motivation forwarded by John Stacey Adams, in (1963). He acknowledges that subtle and variable factors affect each individual's assessment and perception of their relationship with their work, and their employer. This Theory therefore extends beyond the individual self, and incorporates influence and comparison of other people's situations. Adams called personalÂ effortsÂ andÂ rewardsÂ and other similarÂ give and takeÂ issues at work respectivelyÂ inputs andÂ outputs Inputs are logically what we give or put into our work. Outputs are everything we take out in return. The following diagram explains the theory:
[JS Adams original Equity Theory concept; Alan Chapman review, code, design 1995-2010]
The Taj Suits and Residence balances the inputs of the staffs by rewarded fair outputs to make them happier in work and to motivate them to continue inputting at the same level. As I stated shove that it has an ACR for performance records of the employees, the management examine the personal effort, loyalty, hard work, commitment, skill, ability, adaptability, flexibility, tolerance, determination, support of colleagues and subordinates, personal sacrifice etc. Of the staffs and rewarded them accordingly. Normally they are financial rewards such as pay, salary, expenses, perks, benefits, pension arrangements, bonus and commission. It also recognizes the reputations by praising thanks in annual conference and by promotions in designations. There is a separate fund for bonus and commission allowances for extra ordinary performance. It sanctions holidays for the refreshment of all the employees. All these are done by the company's own crucial measure of balance.
THEORIES OF CULTURAL DIVERSITY
Organizational culture consists of the shared values of the organization - the beliefs and norms that affect the aspects of work life. The strength of culture determines the degree to know how to behave in the organization.
There are several theories regarding the cultural diversity. But here I would discuss only the theories related to the business organization. Charles Handy described four main types of corporate culture, in his book "Gods of Management" -Power', 'Role', 'Task' and 'People'; depending upon host of factors including company history, ownership, organization structure, technology, critical business incidents and environment, etc.
The power culture Handy describes the power culture as a web where the power is concentrated in a few hands. It is normally practiced in a family-owned business, which can either be extremely large or small. It does not practice in this hotel because of its structure. This is not a sole company this is a part of Tata Group and a wing of Taj Suits and Residence Resort and Palaces, power is decentralized here from the company to.
The role culture It compares with a temple where the decision making takes place at the apex; the pillars of the temple reflect the functional units. Interaction takes place between the functional specialism by job descriptions, procedures, rules and systems. Handy states that the job description is more important than the skills and abilities performance beyond the role prescription is not required or encouraged. In this organization power is recognized according to the authority of position. Personal power is not legitimate here. As the position is the criteria of the power everybody tries to do better their own particular task what observed very efficient within this organization.
The task culture It involves in extensive research and development .They are constantly subject to change and have to create temporary task teams to meet their future needs. Information and expertise are its strength and represented by a net or lattice work. There is close liaison between departments, functions and specialties, liaison, communication and integration are the means whereby the organization can anticipate and adapt to change quickly. Influence by this team culture the hotel keeps a branch in HR department based upon expertise for up-to-date information.
The person culture is a consensus model of management, where the individuals within the structure determine collectively the path to pursue. This theory rejects the formal 'management control' and 'reporting relationships'. The Taj Suits and Residence does adopt it to practice in any way.
CULTURAL ECOLOGICAL THEORYÂ Â John Ogbu (1986) is a major proponent of theÂ Cultural Ecological Theory.Â Â The ecological view does not dismiss the importance of cultural difference, but focuses more onÂ macro-ethnographic.Â Â Ogbu maintains that there are three types of minorities:Â autonomous, immigrant and caste-like.Â Â WhileÂ autonomous minoritiesÂ are those who may posses ethnic, religious, linguistic or cultural identity, they are not "subordinated" in the social, economic or political system.Â Ogbu claims that these variables and others create barriers for involuntary minorities and keep them in a position of subordination.
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3. MANAGING CULTURAL DIVERSITY
Cultural diversity derives from human resources of different backgrounds, with different values and expectations. The challenge is to respond to the demographic trends in the workforce, understand the cultural background of the human diversity, and effectively utilize it to drive the company's profitability and competitiveness. Organizations around the world have been realizing that the cultural diversity can facilitate organizational stalk for glory (Papers4you.com, 2006).
The hospitality industry is becoming internationalized. Indeed, it is now globalize where a common global experience is taking place. However it is not an easy task to manage employees with different cultural backgrounds. Nevertheless there are many policy guidelines that can make task easy.
The management of Taj Suits and Residence is skilled enough to recognise, understand the cultural diversity and accept the challenge to manage it.Â It has around twenty-six nationalities and around thirty-eight different language speakers of staffs working in catering, lodging, accounting and management departments. The management is aware the following steps to manage it. Recruitment-focus on the specific skills necessary to work effectively in a diverse environment. Communication- the management create awareness among all employees about diverse values of peers through memo, briefing, etc. the management try to utilize the communication skills of the staffs according to their own language to apply. Cultivation- acknowledgement, support by the management for a specific success and share that with all other workers encourages an employee from minor group.
Capitalization- the organization always try to link diversity to every business process and strategy such as succession planning, reengineering, employee development, performance management and review, and reward systems etc. (Cascio,1995).
Moreover influenced by Cox and Balke (1991) assertions, the management has taken it as an advantage in the workforce and applied methods like effectively competitive edge, promoting minority friendly reputation, getting better customers which have a variety of people, knowing about food habit and living style. The diverse group of employees are perceived here to be more creative and efficient in problem solving.
To determine the effectiveness of the management in managing cultural diversity, I prepared a series of questions for the staffs of different level, and a questionnaire to be filled up by the customers without any interview. Maximum crew staffs said some common things- behaviour, living style, food habit, liking, disliking etc. varies from person to person coming from different parts of the world, the management always try to know about the variety of the staffs and the customers who are from a rarely known area or community and try to synchronise it.
Hence it is imperative to realize that cultural diversity should be taken as a tool for better organizational progress rather than a managerial problem and if effectively managed, it can be a key to gain competitive edge and success.
4. EFFECTIVE MANAGEMENT, LEADERSHIP AND MOTIVATION TECHNIQUES ACROSS CULTURE:
Effective management, leadership and motivation techniques underlies in some authentic principles set up by the ISO 9000:2000 and ISO 9000:2008 to be used by senior management as a framework to guide their organizations towards improve performance. These principles are derived from the collective experience and knowledge of the international experts who participate in ISO Technical CommitteeÂ ISO/TC 176,Â Quality management and quality assurance, and known as quality management principles. The eight quality management principles are defined in ISO 9000:2005,Â Quality management systems Fundamentals and vocabulary, and in ISO 9004:2000,Â Quality management systems Guidelines for performance improvements,
In this chapter I have pointed out the principles including key benefits and applications exactly appear in ISO 9000:2005 and ISO 9004:2000. As my survey on the basis of cultural diversity, I've confined my examination about the impact of these techniques across culture.
Principle 1: Customer focus
Organizations must understand the current and future customer needs, meet that requirements and strive to exceed customer expectations. The company must need to increase revenue and market share through flexible and fast responses to market opportunities and the effectiveness in the use of the organization's resources to enhance customer satisfaction, communicating customer and measuring their satisfaction is necessary to improve customer loyalty what leads to repeat business, ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole).
Principle 2: Leadership
Leaders establish unity, purpose and direction of the organization. They should create and maintain the internal environment in which people can understand and be motivated towards the organization's goals and objectives. It is necessary to involve people fully in achieving the organization's objectives. Miscommunication between levels of an organization will be minimized by evaluation, alignment and implementation the activities in a unified way.
Applying this principle leads to considering the needs of all interested parties including customers, owners, employees, suppliers, financiers, local communities and society as a whole. It establishes a clear vision, sets challenging goals and targets of the organization. It establishes trust and eliminates fear and provides people with the required resources, training and freedom to act with responsibility and accountability. This is necessary for
Inspiring, encouraging and recognizing people's contributions.
Principle 3: Involvement of people
People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit. This principle able people understanding the importance of their contribution and role in the organization. People should evaluate their performance against their personal goals and objectives to enhance their competence, knowledge and experience. People should set free to share knowledge and experience, discuss problems and issues and increase their responsibility for solving them.
Principle 4: Process approach
A desired result is achieved more efficiently when activities and related resources are managed as a process. Its main benefit is improved, consistent and predictable results, Lower costs and shorter cycle times through effective use of resources. It focused and prioritized improvement opportunities and systematically defines the activities necessary to obtain a desired result. It identifies the interfaces of key activities within and between the functions of the organization, focusing on the factors such as resources, methods, and materials that will improve key activities of the organization. It is useful in evaluating risks, consequences and impacts of activities on customers, suppliers and other interested parties.
Principle 5: System approach to management
This principle is for identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives. The integration and alignment of the processes help to achieve the desired results. It Provides confidence to interested parties as to the consistency, effectiveness and efficiency of the organization. It Structures a system to achieve the organization's objectives in the most effective and efficient way, providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriers.
Principle 6: Continual improvement
Continual improvement of the organization's overall performance should be a permanent objective of the organization. It benefits through improved organizational capabilities and alignment of improvement activities at all levels to an organization's strategic intent. The application of the principle makes continual improvement of products, processes and systems an objective for every individual in the organization and establishing goals to guide, and measures to track, continual improvement.
Principle 7: Factual approach to decision making
According to this principle effective decisions are based on the analysis of data and information. Its main benefit is informed decisions, an increased ability to demonstrate the effectiveness of past decisions through reference to factual records, increased ability to review, challenge and change opinions and decisions. Its application leads to ensuring that data and information are sufficiently accurate and reliable Making decisions and taking action based on factual analysis, balanced with experience and intuition.
Principle 8: Mutually beneficial supplier relationships
An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value. It increases ability to create value for both parties., flexibility and speed of joint responses to changing market or customer needs and expectations. It benefits in optimization of costs and resources.
This principle leads to establishing relationships that balance short-term gains with long-term considerations, pooling of expertise and resources with partners. Identifying and selecting key suppliers, clear and open communication, sharing information and future plans, establishing joint development and improvement activities, Inspiring, encouraging and recognizing improvements and achievements by suppliers.
The management of Taj Suits and Residence has taken into account the principles mentioned above as techniques to make it effective and efficient. I examined its impact within my selected organization in the following ways. Skills of the management increased in researching, understanding and communicating customers' needs and expectations and measuring their satisfactions. So it became easier to instruct the employees in customer service and improving customer relationship. Activities and roles have been designed to be carried out individually for the staffs and for establishing a clear responsibility and accountability and reduce cross-functional barriers. The management considers the needs of the employee general and the customer as a whole and try their best to fulfill their requirements to make everybody comfortable and loyal. Trust has been established about the organization. The customers become loyal by realizing their role and contribution to the organization. Now they share their experience and discuss problems and issues among them and to the management comfortably.
Confidence is built in the interested parties as to the consistency, effectiveness and efficiency of the management. The management has taken the advantage of performance through organizational capabilities; employ a consistent organization wide approach to continual improvement of service, process and system. The ability to demonstrate the effectiveness of past decision through factual records-analysis of data and information has increased.
Above all the management of Taj Suits and Residence is most benefited by the quality management technique in setting up the goals & targets of the organization and structure the approaches accordingly.
5. RECOMMENDATIONS ON MANAGEMENT IMPROVEMENT TECHNIQUES:
The management of Taj Suits and Residence has proved itself an effective and efficient body by reaching the organization to a well reputed hotel in the hospitality industry in UK. The management already has adopted all kinds of effective measures and techniques, but still there are some international business methods I can recommend the management to adopt to improve the body as a business student to make the organization global. Some of them are
Business process reengineering (BPR)
Business process reengineering (BPR) is the main way in which organizations become more efficient and modernize. It is the key to transforming people work.
The best way to improve the organization's procedures is to take a top down approach, and not undertake a project in isolation, it means starting with mission statements to define the purpose of the organization, producing vision statements to provide a clear picture of the desired future position.
When a BPR project is undertaken, it requires managing a massive amount of information about the processes, data and systems. For this it needs some BPR software (BPR/documentation tool) such as: Graphical interface for fast documentation, object oriented technology to change data in one place, drag and drop facility, CRUD or RACI reports etc. Protos, a very comprehensive Dutch system software that has been translated into English, meets all the above requirements, and many more. (Peter Carte, 1997)
TOTAL QUALITY MANAGEMENT (TQM)
Total Quality ManagementÂ (TQM) concept coined byÂ W. Edwards Deming on the basis to reduce the errors produced during the manufacturing or service process, increase customer satisfaction, streamlineÂ supply chain management, aim for modernization of equipment and ensure workers have the highest level of training.
TQM is a way of thinking about goals, processes and people to ensure that the right things are done right first time what can change attitudes, behaviour and results for the better. It applies to every activity in the organization and covers the soft issues such as ethics, attitude and culture.
The main objectives of TQM are- To make an organization more competitive. To establish a new culture which will enable growth and longevity? To provide a working environment in which everyone can succeed. To reduce stress, waste and friction
To build teams, partnerships and co-operation
Kansei Engineering is a methodology for ensuring a product or service evokes desirable emotional responses. The process allows modeling customer's instantaneous feelings and emotions and subsequently translating them into design parameters. Kansei is the instantaneous feelings and emotions that we experience when we interact with things, such as products and services.
Designing and developing new products or services are a difficult business. Kansei Engineering greatly reduces the risksÂ inherent in those new products or service development, as well as ensuring those is developed with "built-in"Â emotional appeal. The approachÂ also reduces time to marketÂ and increases product and service lifespan.
Kansei Engineering can be considered as a methodology within the research field of 'Affective Engineering'. Shimizu et al. state that 'Kansei Engineering is used as a tool for product development. According to Nagasawa, there are three focal points in the method:
â€¢ How to accurately understand consumer Kansei
â€¢ How to reflect and translate Kansei understanding into product design
â€¢ How to create a system and organization for Kansei orientated design
5.4. SIX SIGMA
Six SigmaÂ is aÂ management strategy to improve the quality of process outputs by identifying and removing the causes of defects and minimizing variability Â in manufacturingÂ andÂ business processes. Six sigma use a set ofÂ quality managementÂ methods,. Some of the established methods are
Design of experiments (DOE):Â Design of any information-gathering exercises where variation is present, whether under the full control of the experimenter or not.Â
Process capability: The capability of a process to meet its purpose as managed by an organization's management.
Statistical process control (SPC):Â To monitor and control a process to ensure that it operates at its full potential to produce conforming product. Key tools in SPC areÂ control charts, a focus onÂ continuous improvement Â and designed experiments.
PDF/A: Â A file formatÂ for the long-termÂ archivingÂ of electronic documents.Â
Statistical Method:Â The science of the collection and interpretation of data.Â It deals with all aspects of the planning of data collection in terms of the design ofÂ surveysÂ andÂ experiments.Â
PDCA (plan-do-check-act): PDCAÂ (plan-do-check-act) is a four-step problem-solving process and model for carrying out change used inÂ business process improvement. Just as a circle has no end, the PDCA cycle should be repeated again and again for continuous improvement. It is used to start or develop a new process, project, product or service.
Establish the objectives and processes necessary to deliver results in accordance with the expected output, recognize an opportunity and plan a change
Implement the new processes, test the change-often on a small scale
Review the test, analyze the results. Measure the new processes and compare the results against the expected results to ascertain any differences.
Taking action based on check step; analyze the differences to determine their cause: If the change did not work, go through the cycle again with a different plan until there is a plan that involves improvement.
The hospitality is a global industry now and have to adapt to the multicultural environment of its workforce; otherwise the relationships between customers and employees may be threatened. It is very important to maintain and develop the interrelationship between the customer and the management to improve any business organization. In that order needs a good teamwork under an effective leadership. Without the presence of leaders, there would not be any specific aim before the organization. Leaders can make employees more confident and train them in key areas for better results.
This framework reflects the "leadership" as a dynamic, contextually sensitive component of corporate strategy. Management and leadership are addressed in terms of the widely recognized distinction between transactional and transformational styles, in which management is about keeping the system running efficiently and effectively, while leadership is about creating it, developing it or changing its direction. It is adequate to say that conceptually leadership is essential in practice.