Free Report About Human Resource Management

Report for Dehav Travel

Report for Dehav Travel

Introduction

Dehav Travel offers hotel and resort holiday getaways in Europe, located in Birmingham International Airport, and maintains a staff of 600 people. The hotel has experienced slow growth for the past years due to the global downturn in the travel and tourism industry in 2008. The company was able to increase by 5 percent for the last two years. The company intends to increase its income to £60 million for the next 5 years by banking on its credible image and reputation for being one of the best quality hotels and resorts in Europe. The company also boasts of its strong ties with local owners, and maintain the loyalty of the resort staff. The company will be able to achieve its goals by implementing an organisational change. There is a need for the hotel to enhance the leadership and management development issues of the CEO and other 5 directors for the improvement of the reservations and operations of the hotel, public relations, finance and administration. At the same time, transformational and transactional dynamics are instrumental for organizational change.

Leadership, management & organisational issues

It is important for the hotel to improve on the leadership, management and organisational issues. Leadership is defined as directly or indirectly influencing others, through formal authority or personal attributes for the purpose of acting in accordance with a shared purpose or an intent or. Every leadership theory will require a level of control exercised by the manager over the subordinate. A dominant manager practices a directive style of leadership. The management development manager who is tasked to perform leadership and management development should practice the transformational type of leadership in order to transform the people and the organization by having one vision and purpose to effect the necessary changes. It is in this method of leadership that the employee becomes more dominant and the leadership style creates a more empowering environment for the employees by giving them more control.
Several studies show that transformational leadership style has a positive association with work performance of subordinates, compared to transactional leadership. At the same time, transformational leaders achieve higher leadership outcomes since they help their subordinates to perform beyond expectations by incorporating charisma and intellectual stimulation. The leaders can influence the subordinates to follow a vision and motivate them to attain such vision.
In order to avoid the high turnover among the junior and middle managers, the HR manager, together with the management development manager should establish a high morale work setting to enhance the performance of the organization. The conditions inside the workplace must be able to contribute to the well-being of the employees. The employees who are satisfied and happy in their work environment will yield to high performance.. Compassion and communication promotes solicitous leadership and strengthen the working relationship of the employees. Giving the employees modern amenities is not the only solution to lower the number of turnover, but it is imperative to boost the morale of the employees and staff during difficult times.
The hotel industry’s success significantly depends on the leadership style of the hotel management. The most effective style is to empower the employees by giving them enough control over the situations that they have to decide on. Such environment will allow the employees to act swiftly and efficiently when there are situations involving service issues that will require immediate attention and decision.
In the case of a renowned and big hotel corporation such as the Ritz Carlton, they empower their employees by giving them the trust to make their own decisions which can cause a financial impact to a limit of $300.00. The employee has the liberty to satisfy the needs and requests of the guests by spending the given limit to ensure that the employees will be happy with their stay in the hotel. By achieving the objective of satisfying the clients, management no longer question the actions or decisions of the employees.
Studies show that the foundations of leadership should involve trust in subordinates, the ability to give an inspiring vision to the employees, constant communication, and by instilling hard work and perseverance. Vision is an essential component of leadership because it gives direction and will help the subordinates feel if they fit in the organization, which in effect enhance the feelings of empowerment and motivation.
The leaders must also be able to teach culture since it is imperative among them to establish the proper behavior and culture in order to satisfy the client’s expectations. The leader should be able to define the beliefs, values, and to reinforce the appropriate norms of behavior to achieve full customer satisfaction. The management of every hotel must be able to personify the kind of culture that will attract the customers and look for ways on how to reward the employees when they make the clients happy and satisfied with the hotel services that they offer.
Based on the research of the hotel industry in UK, where 444 3-stars hotels became participants, it was shown that the main result the ideal style for managing frontline employees in a hotel is through the transformational leadership. The main distinction between transactional leadership style and transformational leadership involves the effects on follower. In transactional leadership, the leader is focused on motivating the subordinates to perform based on the perceived expectation. On the other hand, transformational leader inspires the followers go an extra mile and perform more than what is expected of them.

Problems with the Graduate Management Development Programme

For the past two years, the graduate development scheme which has suffered with many problems due to the high turnover of graduates in the first few months and were later found to be unsuitable for the position. The friction between the existing junior managers and senior managers since the current junior managers were not offered the same opportunity to attend management trainings and development programs. To be able to resolve this issue, all the managers regardless of level, should be given equal opportunities to enrol in open programmes in universities to reinforce their knowledge on management training. Graduate business management education is important since it enhances managerial judgment and allows the business managers to arriving at balanced judgments that adequately address business complexity. The graduate management program should continuously be enhanced and allow the newly-hired graduates to orient them with the necessary skills for their jobs, helps them identify the point of view of the management; and provide the necessary training for a minimum level of management skill.

Problems with Management Development and turnover of junior and middle managers

In order to avoid and minimize the rate of turnover of junior and middle managers, Dehav Travel hotel management should be able to provide additional incentives to lower the turnover rate. In this given case, the junior managers received diminutive opportunities in management training or development compared to the senior managers. The company should be able to provide equal opportunities for growth to the junior and middle managers, in the same treatment that they give to the senior managers. The function or roles of junior and middle managers fall under the category of high complexity jobs. The selection process high-complexity jobs involve higher cost compared to the selection process of low-complexity jobs. The human resource manager should improve the quality of the labor pool for these high-level jobs by conducting more thorough interviews to find suitable candidates. The recruitment and selection process for these job categories should be enhanced to avoid high turnover rate.
Dehav Travel management can follow the Star Model as an organizational design framework, which had been conceptualized in 1973 By Galbraith. The star model is the best model for Dehav Travel since the design principles guide organizational decision-making and behavior. The primary concept of this model is simple yet powerful and requires various strategies and it will depend on the organizations which one of them will be executed. The organization must exert extra effort to achieve the strategic goals. The Star Model possesses five categories which must be carried out by the leader of the organization. As the leader, such individual is tasked to implement a structure, strategy, reward systems, processes and people policies. Dehav Travel will be able to resolve its leadership, management and organisational issues by aligning the five categories to determine the direction of an organization. By setting goals, values, objectives, vision and mission, the company will be able to perform better and increase its productivity.

References:

Akin, G., Dunford, R., & Palmer, I., 2009. Managing organizational change: A multiple perspectives approach, 2nd ed. New York: McGraw-Hill Irwin
Benjamin, B. M., Naimi, L. L., & Lopez, J. P., 2012. Organizational Change Models in Human Resource Development. Insights to a Changing World Journal, 2, pp. 55-66.
Blayney, C, & Blotnicky, K., 2010, Leadership in the Hotel Industry: Evidence From
Canada, International Journal of Management & Marketing Research (IJMMR), 3,3, pp. 53-66,
Chathoth, P, & Olsen, M., 2002. Organizational Leadership and Strategy in the Hospitality Industry. Journal of Services Research, 2, 1, pp. 5-29. 
Clark, R., Hartline, M. & Jones, K., 2009. The effects of leadership style on hotel employees commitment to service quality, Cornell Hospitality Quarterly, 50, 2, pp.209-231.
Erkutlu, H., 2008. The impact of transformational leadership on organizational effectiveness and leadership effectiveness. Journal of Management Development, 27, 7, pp. 708-726.
Ford, R. & Heaton C., 2001. Lessons from hospitality that can serve anyone. Organizational
Dynamics, 30, 1, pp. 30-47.
Gill, A., Flaschner, A. & Shachar, M., 2006. Mitigating stress and burnout by implementing transformational leadership. International Journal of Contemporary Hospitality Management, 18, 6, pp. 469 – 481.
Ispas A., 2012. The Perceived Leadership Style and Employee Performance in Hotel Industry - a Dual Approach. Review of International Comparative Management, 13, 2, pp. 294-304.
Petrick, J. A., Polak, G. G., Scherer, R. F., & Muñoz, C. G., 2001. Contemporary Management and Operations Research Graduate Programs: A Review, Recommendations, and Integration. Journal Of Education for Business, 77,1, pp.34-39.
Pyron, H, & Flanagan, K.,1970, A Survey of Company Development Programs for Newly-Hired College Graduates’, Training & Development Journal, 24, 2, p. 45.
Swanson, R. A., & Holton, E. F., 2009. Foundations of human resource development, 2nd ed. San Francisco: Berrett-Koehler.
Withiam, G., 2007. Study examines unexpected costs of turnover. Hotel & Motel Management, 222, 1, p. 18.