LEADERSHIP STYLES AND ORGANISATIONAL EFFECTIVENESS

The Impact of Different Leadership Styles on Organisational Effectiveness in the Hospitality Industry

Abstract

In this study we try to explore the concept of Leadership Styles on Organisational Effectiveness in a holistic context. The main focus of the research is on Leadership Styles on Organisational Effectiveness and its relation with Hospitality Industry. The research also analyzes many aspects of Leadership Styles on Organisational Effectiveness and tries to gauge its effect on Hospitality Industry. Finally the research describes various factors which are responsible for Leadership Styles on Organisational Effectiveness and tries to describe the overall effect of Leadership Styles on Organisational Effectiveness on Hospitality Industry.

Table of Contents

ABSTRACTII

CHAPTER 1: INTRODUCTION1

Background1

Significance of the Research4

Purpose of the Research5

CHAPTER 2: LITERATURE REVIEW6

CHAPTER 3: METHODOLOGY33

Research questions and hypothesis33

Sample36

Measures37

CHAPTER 4: FINDINGS39

Sample description39

Data analyses39

CHAPTER 5: DISCUSSION AND CONCLUSION42

Discussion42

Conclusion46

Theoretical and research implications47

Managerial implications48

Future research49

REFERENCES52

APPENDICES62

Appendix A62

Appendix B64

Appendix C66

The Impact of Different Leadership Styles on Organisational Effectiveness in the Hospitality Industry

Chapter 1: Introduction

Background

There are demands on the hospitality industry to continuously improve its' performance and to foresee and adapt to change (Erkutlu? H? 2008:25-50). This industry tends to be rather labor intensive with a high staff turnover. This suggests that having good leaders in this industry would ultimately result in better staff motivation and hence would also result in improving organizational effectiveness. Studies on the subject of leadership in the hospitality industry has been somewhat ignored? and therefore there is not a lot of information available which study leadership in the specific context of the industry (Erkutlu? 2008:69-80; Pittaway et al. 1998: 407-26? Mullins? 1992:35-59).

This is the reason why paper will study leadership styles in the hospitality industry and its' effect on organizational effectiveness.Different leadership styles have an impact on the organizational effectiveness of any kind of business. There are various definitions of the term 'organizational effectiveness' and how to measure it? this is due to the fact that the goals and objectives of organizations are numerous and rather difficult to find (Rodsutti? and Swierczek? 2002:35-57; Cameron? 1986: 87-112; Sekaran? 1994:52-80; Lachman and Wolf? 1997:194-214).

One of the continuing challenges of hospitality industry management is to strike a balance between the need for customization? that is? for employees to adapt the service to varying and changing customer needs and wants versus the need for efficiency? control and standardization to be cost effective. Some companies opt for an efficiency strategy and deliver standardized products at low prices (e.g.? fast food operations? budget motel chains? etc.). Others aim for higher levels of customization and customer satisfaction (e.g.? à la carte restaurants? upscale hotels? etc.). Even if companies try to focus on customization? market competition will always induce pressure towards efficiency. And even if a company focuses on an efficiency strategy? in a dynamic market there will always be a need for innovation and change. Efficiency requires standardization? repetition? rules and often formalized? mechanistic ways of doing things? while customization requires openness? empowerment? freedom of action and more organic organizational forms. Thus? a continuing duality in the organizational forms is needed in ...