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A well recognized definition of leadership by Warren Bennis is " Leadership is the function of knowing yourself , having a vision that is well communicated, building trust among colleagues and taking effective action to realize your own leadership potential."
Globalization is defined as the absence of borders and barriers to trade, the 'crystallization of the world as a single place', or the overlapping of the interests of business and society. Globalization is a process whereby world-wide interconnections in virtually very sphere of activity are growing. This rise of these interconnections is the result of shifts that have taken place in technological, political, and economic spheres. The process of globalization means flow of people, flow of technology, flow of capital, growing economic interconnectedness. This process impacts upon regional tourism and hospitality market in many ways.
The tourism and hospitality industry brings together hosts and guests from different cultures with different characteristics, expectation and values. To improve competitive position in the global market, the industry needs to satisfy the expectations and needs of their customer. Therefore, it remains an important issue as to how well prepared the tourism and hospitality industry is to handle this flow of peoples and fusion of cultures. Globalisation has also impacted on the composition of the domestic tourism market as this now include multi-ethnic as well as multicultural migrant groups. Yet another impact of globalisation has been the multicultural workforce in the industry itself.
Globalisation changed today's hospitality industry. Due to globalisation the managers of the hospitality industry are able to learn about different culture as they get to mingle with people from various walks of life and thus, increase their knowledge. Due to globalisation the customer base has increased greatly. People travel not only for holidays, but business, health and various other purposes too. Thus, this has increased the market for the hospitality industry, which gets its major income from international visitors. Visitors come in and spend money - multiplier effect - and foreign exchange increases. Thus it is of great value to the economy as globalisation helps to pump in money into the country.
Due to globalisation the industry need to use advance technology. Since one wants to attract as many tourists as possible, hospitality organisation constantly need to upgrade and improve their services. As example : Singapore flyer, using faster and newer technology in hotels, so that the customer is satisfied. Organizations are constantly thinking of new and creative ideas to attract more tourists. Due to globalisation, more visitors come into our country and more people are needed to serve and cater to their needs. So, with the advent of globalisation, there are a lot of more jobs available for people within the hospitality industry. Due to globalisation, more people move around, to facilitate this, the travel industry need to grow as well. People who come into our country by air, or ship, or land - use the transport services offered as well. Due to globalisation, there is a variety of international services/cuisines, Since there are a lot of different visitors with various cultures, custom, cuisines and languages, the hospitality industry includes recipes and various other services to cater to them. These services are available to the locals too, which makes even better.
Nevertheless, globalisation has negative impacts on the hospitality industry and also, there are some challenges and difficulties for today's leader in hospitality firms. Due to globalisation, the hospitality industry can employ people from different countries as it is usually cheaper - they may sometimes have problems in communicating with the customers. Many customers get quite irate as a result of this. As there are from various cultures, one needs to be careful not offend them. For example, a hindu will not eat beef - one needs to make sure not serve food which contain beef. (unless specifically asked). What is acceptable by one culture may be frowned upon by another. During peak periods, a lots of jobs are available but as soon as the tourist go back the jobs disappear as well. For example : Goa - India; the locals in Goa get their income only during the peak season,( Dec- Feb, and April-July ) after which they have no jobs and no income . Due to international barriers, there has been a steady increase in the use of technology for communication ( through the internet, voice recordings.) This removes the human touch. Countries that are unable to keep up with the advancement in technology tend to lose out. For example: Africa does not have the infrastructure or technology as yet it to welcome a large amount of foreign visitors, though it does have a lot of natural attraction. To increase the flow of tourists, it would have to improve conditions; otherwise tourists have a vast sea of areas to choose from. With the increase in tourists, crime increase too. Example: pick-pocketing, hustling, rape, smuggling.
A leader from the hospitality industry has a multicultural challenge, managing a diverse workforce and trying to keep up with rapidly shifting trends. Cultural intelligence provides a better approach to this leadership challenge. Cultural intelligence (CQ) is the capability to function effectively across national, ethnic and organizational cultures. Leader has to have knowledge of different cultures. CQ is needed to understand diverse customers, manage diverse teams, recruit and develop cross cultural talent, demonstrate respect and adapt leadership style; without these knowledge hotel can faces many problem. If a manager does not understand different culture, how will he understand different customer from different culture, how will he manage his employees from different culture. It can be affect financially on the hotel. Hotels can have financial losses caused by managers not understanding different cultures.
Looking at these challenges and difficulties, it shows that, cross cultural management plays an important role to compete in a global marketplace. The mistakes discussed above may results into some consequences. For example- where a strong and forceful personality overcomes the lack of formal delegation or where an inadequate manager is supported by his subordinate who effectively acts as the manager. Failure to delegate successfully to a more knowledgeable subordinate may mean that the subordinate emerges as an informal leader and this could have possible adverse consequences for the manager and organization. Serious mistakes can be made while dealing with people from different cultures. For example- eye contact in western countries is normally associated with confidence, politeness and attentiveness but in some African countries can be seen as rude and disrespectful. Bulgarians nod when they mean 'no' and shake their heads when they mean 'yes' while the Greek nod upwards or raise their eyebrows for 'no' and shake the head side to side or tilt it to say 'yes'. A lack of 'cultural literacy' can lead to incorrect assumptions, poor relationships and a failure to make useful business connections. So to avoid these mistakes a proper training should be given to the staff by his manager because in any company you will find many people from different culture and different cities so as every person have their own different culture, everyone have their own body language and facial expressions which can results into some mistakes so to combine all these people from different culture together to work as a team a proper training should be given by the manager.
This assignment will be based on Hyatt Regency London, which is part of Hyatt Corporation. Hyatt Corporation is known around the world for its brands - Hyatt Regency, Grand Hyatt, Park Hyatt, Hyatt Place, Hyatt Summerfield Suites and Andaz. The entire collection of Hyatt hotels and resorts weaves together authentic service with leading technology to offer its guests unique restaurants, luxury accommodations and distinctive spas. With its new initiatives and design elements continuing to evolve, the next half-century of Hyatt innovation will continue to provide its guests a world of uncommon travel experiences.
Hyatt Hotels & Resorts opened its first property, a small motor hotel at the Los Angeles International Airport, in 1957 and its portfolio quickly grew to include several other modest hotels along the West Coast and in Chicago over the next ten years. In 1967, Hyatt opened its first major John Portman designed hotel, Hyatt Regency Atlanta, in Georgia, which featured a space-age design with a dramatic, 21-story atrium lobby. The revolutionary architecture spawned scores of atrium lobbies around the world, effectively changing the course of the lodging industry and reshaping the Hyatt brand as an innovative and significant global hospitality leader.
By 1969, 13 Hyatt hotels were in operation throughout the United States. That same year, the company launched Hyatt Regency Hong Kong, establishing Hyatt International Corporation. Over the next ten years, the company's portfolio of hotels began to expand and diversify rapidly, and in 1980 the company introduced the Grand Hyatt and Park Hyatt brands, and also solidified its entry into the luxury resort market with the opening of Hyatt Regency Maui Resort & Spa in Hawaii.
Today, Hyatt successfully distinguishes itself within the competitive hospitality marketplace with six different brands. Currently offering travellers a choice of more than 365 hotels and resorts in over 45 countries.
Hyatt Regency London - The Churchill is situated in one of the most popular areas among Middle East travellers. Hyatt Regency London - The Churchill is located on Portman Square, one of the city's most fashionable areas, with Oxford Street, Marble Arch, and Edgware Road all just a walk away for Middle East visitors. The hotel has remained fully operational throughout the renovation and now has 262 newly refurbished rooms available.
The food and beverage management operations must be aware of the changing trends as the industry is facing an ever increasing number of foreign workers are being used to fill these gaps which results in increasing the diversity in the work place. The organization working towards globalization of many food and beverage operations must also be aware of the diversity of different countries in which they operate. Diversity management must become a part of company policy in order to be effective and it must be embedded within the culture of the company from senior management through front line staff. Effective diversity management can have numerous positive effects on business performance such as greater understanding of customer needs, higher employee retention rate and increased sales. Ineffective diversity management can bring added problems to the work place such as demoralization of employees, hostility and high staff turnover. To embrace diversity as an essential component in the way Hyatt do the business. Hyatt believe that to operate successfully in the global market place diversity needs to be embraced within every aspect of the business which includes,
Communities in which they operate
The workplace- Hyatt commitment to diversity begins with attracting and retaining a diverse work team. They try to mirror the customer and communities they serve which creates an environment where all the customer and partners feel comfortable and welcome. To attract a diverse representation of qualified candidates, Hyatt link with a number of local and national community based organizations. For example- in America they make links with the National Black MBA and the Hispanic MBA and the women in food service forum. Hyatt monitor the demographics of their workforce on quarterly basis to determine whether they reflect the communities in which they operate. They also look at representation within specific positions and evaluate whether there are pathways to higher-level positions. Based on available data, Hyatt US workforce is comprised of 63% women and 24% people of color and in Hyatt executive team vice presidents and above 32% are women and 9% people are of color.
Training - diversity content is build through Hyatt general training and development modules as well as management training courses. Diversity courses are also offered at Hyatt to address partner's relevant business needs which include diversity learning journey and bias free interviewing workshops which prepare managers and recruiters for the hiring process. Hyatt take the hiring and recruiting process very seriously. They are very careful while employing people as it costs 2,300-3,000 pounds to recruit and train each employee. Within 2 weeks of commencing employment all the employees will have undergone training and learning about the diversity amongst the employees and also amongst the customer base.
Suppliers- Hyatt have developed a supplier diversity initiative which ensures that each selected supplier shares the company's core values to meet key requirements which include quality, service, value, stability and sound business practices. A diverse supplier must meet certain criteria. For example- the company must be 51% owned, operated and managed by women, minorities or socially disadvantaged individuals.
Diversity in communities in which Hyatt operate- Hyatt formed a joint venture with Johnson Development Corporation which is owned by Earvin Johnson. They created urban coffee opportunities, LLC bringing Hyatt stores to diverse communities. At the end of 2003, there were 52 UCO locations in the United States. Hyatt UCO stores offer communities an inviting and comfortable place for neighbors to gather. While customers are assured a consistent Hyatt experience at all the stores they may find the music is tailored to local tastes, subtle differences in the food offerings and mural art that is unique to the stores. A UCO store can be a catalyst for creating jobs and encouraging business development in the communities where the stores are located. Ata the end of fiscal 2003 the locations employed 971 Hyatt partners. The Hyatt foundation and community and giving programmers provide support to non-profit organization that serves diverse communities. They are also partner with various community organizations to provide employment opportunities to their constituents.
Culture clash happens when people from different cultures come into contact. Sometimes the clash begins before anyone has a chance to properly introduce you before you even open your mouth. Culture clash can lead to world class fatigue or even depression. Many of the adjustments to life in the cultural fast lane must be made early on preventing a successful overseas experience. If we ask who suffers from culture clash the answer must be one who spends much time with people from another culture. People eat different foods, celebrate different holidays and dress differently in countries all around the world but these differences affect the ways in which people work together because people organize, manage and work differently from culture to culture. The behavior of people in organizations varies across cultures in many ways. Researchers have observed systematic and culturally based differences in manager's values, attitudes and behavior. Each of us has a set of attitudes and beliefs through which we see management situations the manager's value, attitudes and beliefs can affect cycles of behavior. Some managers do not trust their subordinates and believe that employees will not do a good job unless closely supervised. These managers establish tight control systems such as time clocks and frequent employee observation to reassure them that employees are working. The employees can be started realizing that management does not trust them so they might start behaving irresponsibly. They arrive on time only when the time clock is in working condition and only work when the manager is around. So it is easy to see how misunderstanding and mistrust can grow between managers from one culture to employees from different culture. In hospitality business you can find many examples of cultural clash as you deal with customers all over the world and you work with different people from different countries with different culture as well. So I just want give to give an example as per my experience in hospitality. Example- I used to work for a hospitality company, park Hyatt goa resort and spa in India. Once I was in the bar in the afternoon and a Russian customer came to me. Russians hardly speak English. So he came to me and as he didn't know English he was indicating his finger outside towards trees and said 'kakushka, kakushka' he was speaking in Russian and was trying to make me understand his language but as I didn't know Russian language I couldn't make out what he wants exactly so it took a long time to know me what he wants exactly but finally after 10 minutes I finally came to know that he was asking for coconut water and he was indicating his finger towards coconut trees. Then I gave him coconut water and he was very happy. So here we can see a culture clash between an Indian and Russian culture because the Russian hardly speak English so they couldn't communicate properly. So as a suggestion to this problem I would like to suggest that there must be a co-coordinator person in the hospitality company so that if this kind of communication problems due to different culture occurs he or she can handle it.
Some managers are more effective at leading diverse groups than other. The traits and behavior should equip a person to lead diverse groups. Additionally, cultural sensitivity, cultural intelligence and certain specific global leadership skills are essential for inspiring people from cultures other than the one's own. Although they reinforce each other we can describe cultural sensitivity and cultural intelligence separately. Global leadership encompasses so many behaviors that they receive of their own section. Leaders as well as others who are attempting to influence a person from a foreign country must be alert to possible cultural differences. Thus the leader must be willing to acquire knowledge about local customs and learn to speak the native language at least passably. A cross- cultural leader must be patient, adaptable, flexible and willing to listen and learn. All of these characteristics are part of cultural sensitivity an awareness of and a willingness to investigate the reasons why people belong to other culture act as they do. A person with cultural sensitivity will recognize the certain differences in customs that will help to build better relationships with people in his or her adopted cultures. Another aspect of cultural sensitivity is being tolerant of the subtle differences between cultures. Following is the leadership self assessment quiz which gives an opportunity to reflect our own tolerance for cross-cultural issues.
LEADERSHIP SELF ASSESSMENT QUIZ
Tolerance for cultural differences
Instructions- indicate how comfortable you would feel in the following circumstances:
VU- very uncomfortable
VC- very comfortable
VU U N C VC
Working on a team with both men and women 1 2 3 4 5
Coaching a team or club when all the members are of different 1 2 3 4 5
Sex than yourself.
Having a transsexual person as a boss. 1 2 3 4 5
Having a person of a different race as a boss. 1 2 3 4 5
Having an opposite sex person as a boss. 1 2 3 4 5
Answer a if you are heterosexual or b if you are homosexual 1 2 3 4 5
Having a gay or lesbian boss
Having a straight boss
Having dinner with someone who eats what you consider to 1 2 3 4 5
be a pet.
Having dinner with someone who eats what you consider to be 1 2 3 4 5
a repulsive animal or insect.
Working alongside a teammate who you know is HIV positive. 1 2 3 4 5
Working alongside a teammate who has served prison time for 1 2 3 4 5
Scoring and interpretation:
40-50: you are highly tolerant and flexible in terms of working with a broad spectrum of people. These attitudes can help you to be an effective multicultural leader.
21-39: your tolerance for working with people different from yourself is within the average range. It you learn to become a more tolerant of differences, you are more likely to become an effective multicultural leader.
10-20: you may be experiencing difficulties in working with people quite different from yourself. As a consequence your effectiveness as a multicultural leader might be hampered. If you seek out more diverse cross-cultural experiences you are likely to become more tolerant of differences.
Cultural sensitivity is also important because it helps a person to become a multicultural worker. Such an individual is convinced that all cultures are equally good and enjoys learning about other cultures. Multicultural workers and leaders are the people who usually have been exposed to more than one culture in childhood. Being multicultural helps one to be accepted by a person from another culture. It has been said that a multilingual salesperson can explain the advantages of a product in other languages but it takes a multicultural person to motivate foreigners to buy.
Cultural intelligence is a four dimensional framework rooted in many years of research on intelligence and cross cultural interaction. After going through the above practices implemented in order to improve leader's cross culture intelligence I suggest the effective approaches in improving CQ are as follows.
All these four dimensions are usually refer to develop CQ.
CQ drive- the motivational dimension of CQ is the leader's level of interest, drive and energy to adapt cross culturally. You should have the confidence and drive to work through the challenges and conflicts that inevitably accompany cross cultural work. The ability to be personally engaged and preserve through cross cultural challenges is one of the most novel and important aspects of cultural intelligence. We cannot simply assume people who are interested and motivated to adjust to cultural differences. Employees often approach diversity training apathetically and do it just because it is required. Personnel headed to international assignments are often more concerned about moving and adjusting their families overseas than they are about developing cultural understanding. Without ample motivation, there is little point in spending time and money on cross cultural training. CQ drive includes three sub dimensions:
Intrinsic motivation- the degree to which you derive enjoyment from culturally diverse situations
Extrinsic motivation- the tangible benefits you gain from culturally diverse experiences and
Self efficacy- the confidence that you will be effective in a cross cultural encounter.
All three of these motivational dynamics play an important role in hoe leaders approach cross cultural situations.
CQ knowledge- the cognitive dimension of the CQ research refers to the leader's knowledge about culture and its role in following how business is done. You should understand the way culture shapes thinking and behavior. It also includes your overall understanding of how cultures vary from one another. CQ knowledge includes two sub dimensions i.e. cultural systems and cultural norms and values. Cultural systems are the way societies organize themselves to meet the basic needs of their members. For example, every nation has cultural systems for how its members distribute products and services or for how they raise their children. Understanding how a family system works might seem unnecessary but it become critically relevant when you are trying to develop human resource policies for employees who are expected to care for the senior members of their extended family. The other sub dimension of CQ knowledge i.e. cultural norms and values refers to the varying ways cultures approach issues such as time, authority and relationships. The value a culture places on time and relationship becomes highly closely connected when an American is trying to get a signed contract from a potential affiliate in china or Saudi Arabia where different norms shape leader's expectations. CQ knowledge is the dimension most often emphasized in many approaches to intercultural competency. For example, a large and growing training and consulting industry focuses on teaching leaders this kind of cultural knowledge. Although valuable however the knowledge coming from CQ knowledge has to be combined with the other three dimensions of CQ or its relevance to the real demands of leadership is questionable and potentially harmful.
CQ strategy- it is also known as metacognitive CQ. It is the leader's ability to strategize when crossing cultures. Can we slow down the RPMs long enough to carefully observe what is going on inside the mind of others and ourselves? It is the ability to draw upon our cultural understanding to solve culturally complex problems. CQ strategy helps a leader to use cultural knowledge to plan an appropriate strategy accurately interpret what is going on and check to see if expectations are accurate or need revision. The three sub dimensions of CQ strategy are awareness, planning and checking. Awareness means being informed of what is going on in ourselves and others. Planning is taking time to prepare for a cross cultural encounter in anticipating how to approach the people, topic and situation. Checking is monitoring our interaction to see if our plans and expectations were appropriate. It is also comparing what we expected with our actual experience. CQ strategy emphasizes strategy and is the keystone between understanding cultural issues and actually being able to use our understanding to be more effective.
CQ action- the behavioral dimension of CQ is the leader's ability to act appropriately in the range of cross cultural situations. We can effectively accomplish our performance goals in different cultural situations. One of the most important aspects of CQ action is knowing when to adapt to another culture and when not to do so. A person with high CQ learns which actions will and will not enhance effectiveness and acts on that understanding. Thus CQ action involves flexible actions tailored to specific cultural contexts. The sub dimensions of CQ action are verbal actions, nonverbal actions and speech acts. The exact words and phrases we use when we communicate specific types of messages. These are the three kinds of behaviors where there is the greatest need to adapt to cultural norms. Although the demands of today are intercultural settings make it impossible to master all the dos and don'ts of various cultures. There are certain behaviors that should be modified when we interact with different cultures. For example, westerners need to learn the importance of carefully studying business cards presented by those from most Asian contexts. Also some basic verbal and nonverbal behaviors enhance the extent to which we are seen as being effective by others. As an example, the verbal tone (e.g.- loud versus soft) in which words are spoken can convey different meaning across cultures. Almost every approach to cross cultural work has insisted on the importance of flexibility. With CQ action we now have a way of exploring how to enhance our flexibility.
Research, examples and best practices will be offered to move toward gaining the capabilities represented by these four dimensions. The CQS (cultural intelligence scale) measures competency in each of the four dimensions. Through a series of questions you receive four scores one for each dimension of cultural intelligence. By averaging these four scores together, you can estimate your overall CQ. Two different CQ assessments are available both of which have relevance for improving leadership effectiveness. One is a self report assessment and the other is a peer report assessment. The self assessment provides a profile of how you view yourself in the four dimensions of cultural intelligence. The peer assessment asks you to identify three to five peers who can answer a few questions on your behalf. In return you receive a composite of how your peers view you in the four dimensions of cultural intelligence the two kinds of assessment are most valuable when used together so you can compare your self assessment with how others perceive your cultural intelligence. There is variety of ways to apply the four dimensions of cultural intelligence to leadership. They can be used as four areas to assess individuals you are considering for a cross cultural assignment. They can also serve as four categories for diversity training or for a leader's personal development plan and the four dimensions can be used as a four step cycle for developing cultural intelligence in the case by case situations. This four step cycle is the primary application used. CQ is more strongly related to an individual's overall performance cross culturally than things like academic achievement or an exceptional IQ. In particular CQ drive, CQ strategy and CQ action are found to have a positive relationship on an individual's success in accomplishing a task.
In the above research we have seen that the management is facing number of problems as an increasing number of foreign workers are being used which results in the diversity in the work place. So the organization must be aware of the diversity of different countries in which they operate. In order to follow this diversity management must become a part of company policy because an effective diversity management can have numerous positive effects on business performance. So in order to overcome this Starbucks believe that to operate successfully in the global market place diversity needs to be embrace within every aspect of the business which includes the work place, training , suppliers and the communities in which they operate. Starbucks commitment to diversity begins with attracting and retaining a diverse work team. They try to mirror the customer and communities they serve which creates an environment where all the customers and partners feel comfortable and welcome. Diversity content is build through Starbuck's general training development modules as well as management training courses. Starbucks have developed a supplier diversity initiative which ensures that each selected supplier shares the company's core values to meet key requirements which include quality, service, value, stability and sound business practices. Starbucks has also formed a joint venture with Johnson Development Corporation and they have created urban coffee opportunities, LLC bringing Starbucks stores to diverse communities. Although Starbucks try to control diversity problem at workplace, culture clash still happens when people from different cultures come into contact. A person who spends much time with people from different culture suffers the most. The behavior of people in organizations varies across cultures in many ways. Some managers are more effective at leading diverse groups than other. The traits and behavior should equip a person to lead diverse groups. Cultural sensitivity, cultural intelligence and certain specific global leadership skills are essential for inspiring people from different culture. The leadership self assessment quiz can be very helpful in avoiding cross cultural issues in an organization. cultural sensitivity is also important as it helps a person to become a multicultural worker and cultural intelligence is a four dimensional framework rooted on intelligence and cross cultural interaction. So in order to improve leaders cross culture intelligence, the effective approaches in improving CQ should be CQ drive, CQ knowledge, CQ strategy and CQ action. From the above research it is been found that CQ drive, CQ knowledge, CQ strategy and CQ action are found to have a positive relationship on an individual's success n accomplishing a task.
The CQ is a set of individual capabilities that allows leaders to learn from their experiences. Thus CQ facilitates the transformation of experience into experimental training. A mere exposure to cultural diversity and international assignments does not necessarily enhance learning. Instead leaders must balance the creative tension of all four stages in the experimental process which are concrete experiences, reflective observation, abstract conceptualization and active experimentation. I would like to recommend that organizations should shift their focus from providing experience to ensuring that effective experimental learning occurs for leaders. Part of this shift requires the recognition that individuals have different capabilities to learn from their experiences. Those who are culturally intelligent individuals who possess the cognitive, metacognitive, motivational as well as behavioral capabilities for dealing with cross cultural interactions will gain more from international assignments and exposure to culturally diverse settings.
I have learned from my research that it is very important to be aware of the current trends and diversity of countries in which they operate because in an organization you will find many people from different countries so everyone will have their own culture, own cuisine and different languages so all these people may think differently as they belongs to different places so cultural clash can occur due to this so care should be taken to avoid cultural clash like as what Starbucks did. To operate successfully Starbucks embraced within every aspect of the business which includes work place, training, suppliers and communities in which they operate. In other way Leadership Self Assessment Quiz can give a good opportunity to avoid cross cultural issues. This self assessment quiz can help leaders to become multicultural and being multicultural helps to be accepted by a person from another culture. So it is very important to improve leaders cross culture intelligence and CQ drive, CQ strategy and CQ action are found to be the effective and positive approaches on an individual's success in accomplishing a task.