1. Executive summary
This report is about the leadership in hospitality and tourism industry, connecting the theoretical concepts in the hospitality, culture and people subject with the real world organization experiences. In this report, the literature review is on the effect of leadership style on employee’s well-being and the results found that the transformational leadership is most suitable style in hospitality industry, by conducting the survey to 433 employees at 5-star hotel in Turkey. The Ritz-Carlton’s leadership and empowerment are presented as a support for the research as it is the successful known hotel chain with transformational leadership style and the sources of information are reliable and recognizable.
2. Introduction
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In early 1900s, the Ritz-Carlton investing company established several hotels naming “The Ritz-Carlton”. In 1983, the Ritz-Carlton hotel company was formed and led by founding father, Colgate Holmes, along with Horst Schulze, Joe Freni, Ed Staros and Herve Humler It vision is “The Ritz-Carlton inspires life’s most meaningful journeys” and mission as “Provide genuine care and exceptional products and services resulting in profit leadership”. Currently, the Ritz-Carlton has 88 luxury hotels and resorts worldwide (The Ritz-Carlton, n.d.). The Ritz-Carlton is known for its unique luxurious experience with excellent customer service for the guests. Colgate Holmes and Horst Schulze are the inspired leaders in Ritz-Carlton …show more content…
Discussion/Analysis
A good example for transformational leader was Horst Schultze, former president and COO of the Ritz-Carlton hotel company, who put effort to win the Malcolm Baldrige National Quality Award for service in 1992. The Ritz-Carlton won the award again in 1999 as it meets the seven criteria, such as Leadership, Strategic Planning, Customer and Market Focus, Measurement Analysis and Knowledge Management, Human Resources Focus, Process Management and Business Results.
The Ritz-Carlton is proud of being the only company in the hotel industry receiving the award, which recognizes exceptional achievement in the practice of total quality management principles (The Ritz-Carlton, n.d.).
Under transformational leadership, leaders not only make job meaningful, interesting and challenging, but also inspires, coach and mentor the employees. Moreover, empowerment, giving employee responsibility and authority over their decisions, resources, and work, is the critical area in transformational leadership (Walker & Miller, 2012). This is where employee feel greater sense of ownership and responsibility into organizational works. The Ritz-Carlton motto is "We are Ladies and Gentlemen serving Ladies and Gentlemen”, this is where employees are inspired and empowered. To fulfil the guest's request, employees are empowered to "move heaven and earth". The ladies and Gentlemen are to cope with the company's gold standards, that are the Credo , the Motto, the three Steps of Service,
The seven days countdown was a result of the evolution and refinement of the hotel opening process, which became more solidified in the late 1980s to early 1990s when hotel chain was opening many new properties.
In Bangkok, Thailand, a group of financial investors invested in a hotel called The Regency Grand Hotel. This hotel is the most cherished hotel in town, where the employees and guests enjoy spending time at this five-star hotel. This place hosts approximate 700 employees that give fantastic benefits, year-end bonuses and ensures job security.
In addition, Burns et al., (as cited by Lavoie-Tremblay, et al., 2015) defined a transformational leader as “a leader who can extend and elevate the interests of staff, who can facilitate the commitment of staff to the mission and values of the organization, and who can lead staff to rise above their personal interests” (p. 582). Further, Broome (2013) identified transformational leaders as “proactive and hold core beliefs about the potential for development of both individuals they work with and their organization” (p. 327). Samad et al.(2015), connecting transformational leadership to servant leadership and authentic leadership reported, “transformational leadership is also congruent with regards to fostering higher levels of motivation among the followers’ and leaders’ ability to visualize the unforeseen” (pp.
These types of leaders, according to Avolio (1991) possess the characteristics of individual consideration, intellectual stimulation, inspirational motivation, and idealized influence. This paper will examine the outcomes that are a direct result of transformational leaders who exhibit these types of traits such as job satisfaction and organizational commitment, job stress, safety, supervisor satisfaction, team, performance, and general.
Transformational leadership is the inspire, motivate and communicate to employees the vision and goals of the organization which leads to greater efficiency and productivity. D’Alessio had characteristics of a transformational leader because she worked with talented nightclub owners to organize an exclusive themed event honoring the well-known artist and icon Andy Warhol. (Brusseau, 2012) This set the tone for the beginning of Studio 54’s future as a notorious nightclub which leads to several decades of
Northouse stated that this edition of his book was written with an objective to bridge the gap between simplistic approaches to leadership to more abstract approaches. Chapter 9 of this book is entitled Transformational Leadership. It defines this model as the process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower. Hidden away in Chapter 14, Leadership Ethics, we find servant leadership. These models emphasize that leaders be more attentive to the concerns of their followers and empathize with them. In addition, they should take care of them. In addition, they should take care of them and nurture them.
The four-season hotel cares about their internal customers and external customers. Why the company’s leadership is different from other hospitality businesses, here are several reasons. First, four-season hotel has their Golden Rule to obey, “Do unto others as you would have them do unto you.” It means treat other people with the concern and kindness you would like them to show toward you. This Golden Rule brings a bunch advantages to four-season hotel. And also encourage all of manager in this hotel treat the employees in kind and respect them.
The transformational leader needs to direct people towards where they want to go and where they need to be in order to achieve the vision (Luzinski, 2011, p. 501). According to Luzinski (2011), success occurs when followers and leaders learn from each other, coming to a common understanding and establishing shared values, not because followers dutifully agree to listen (p. 502). Successful transformational leadership has four components: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration.
The newly appointed General Manger that was set to run the grand opening and the entire hotel operation in DC was James McBride. Upon taking the job, McBride was faced with pressures from Millennium concerning Ritz-Carlton’s employee training methods for the hotel’s grand opening. Millennium’s main reason for concern was that the seven-day training process might not be enough time to train their employees for the grand opening. They were also upset that to make up for short training program, Ritz-Carlton would limit the occupancy rate to 50% for the first few months. In other words, they were worried about a loss of revenue from the three to five month adjustment period The Ritz gives its employees to build confidence.
Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement. We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success. It aims to increase revenues by 9% every year, to increase
Having been in the hospitality business for more than 25 years, the Kimpton Hotels Corporation is a national and global company, which had been widely recognized all over as an industry leader in the boutique brand hotel with a tradition of innovative hospitality. According to the Kimpton Hotel Corporation, “Our mission is to be the best-loved hotel and restaurant company by our employees, guests, owners, and communities and to genuinely support our co-workers, provide heartfelt care and comfort for our guests, and deliver superior financial returns to our investors.” Being immensely focused on this mission, the hotel’s primary goal is to be the most preferred boutique hotel brand in the industry.
There are many organizations that are very familiar to me; however, there is one organization that stands out among them. The name of the organization is Ritz-Carlton Hotel. Ritz-Carlton hotel was founded in 1983 and headquartered in Chevy Chase, Maryland, United States of America. The organization has accumulated well over ninety (90) hotels in twenty-nine (29) countries. Its vision is “inspires life's most meaningful journeys” (Ritz-Carlton Hotel, n.d.).
The report focused particularly on the following hotel chain Hilton Worldwide. Hilton legacy began in 1925, it was founded by Conrad N. Hilton. The first hotel was built in Texas and had 40 rooms; today Hilton is one of the most respected brands in the world. The company owns, manages or franchises a hotel group of some of the most famous and highly regarded hospitality brands worldwide, including Hilton, Conrad Hotels & Resorts, Double Tree by Hilton, Embassy Suites Hotels, Hampton, Hilton Grant Vacations, Homewood Suites by Hilton and the Waldorf Astoria Hotels & Resorts. With 4000 hotels and 650,000 rooms in 90 countries Hilton Worldwide is one of the world’s leading hotel. (Hilton Worldwide, 2013)
The Ritz-Carlton Hotel Company operates within the upscale & luxury hotel industry. While it could be argued that Ritz-Carlton operates in the more broad and inclusive lodging industry, they offer a highly differentiated product and service and therefore find themselves operating in an exclusive industry alongside very few direct competitors, such as Four Seasons Hotels, HongKong and Shanghai Hotels, and Starwood Hotels & Resorts. Therefore when analyzing this industry I will not be including cheap hotels, motels, lodges, or inns, unless to offer potential substitutes to luxury hotels. In order to assess the attractiveness of the upscale & luxury hotel industry, an analysis of the general environment surrounding the industry must be
There are several organizations that have competitive advantages in the industry. However, one familiar organization that has maintained its competitive advantage in its industry is the Ritz-Carlton hotel. Founded in 1983 and headquartered in Chevy Chase, Maryland, United States of America, Ritz-Carlton is regarded as one of the best in the hotel industry and has received several accolades for great customer services (Ritz-Carlton Hotels & Resorts, n.d.). Nevertheless, to fully understand its competitive advantage in the industry, it is essential to analyze its modus operandi. The Ritz-Carlton hotel management understands the value of employees; so ultimately investing in