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Tuesday, April 12, 2011

Role of Strategic Management to the Management Practices of Hospitality Managers

Introduction

Tourism and hospitality has indeed become a very large industry over the years as several companies around the world take advantage of the festering curiosity concerning the social life and the environment of other areas and the desire to experience it fully. Globalisation has also contributed widely to the opportunity for several casual travellers to experience a lifestyle so removed from their own. While tourism is primarily set for the enjoyment and service of the visitors to the area, there are also several other uses for tourism itself: to promote peace and ethnic coexistence of groups (Moli, 2003), indulgence on first-hand experience concerning a different ethnic group (Leader-Elliott, 2002), and for the sheer enjoyment of being removed from one’s usual habitat (Chang, Huang & Savage, 2004), among others. Indeed, the popularity of tourism has encouraged thousands of corporations to take part in such interest, such as the hospitality industry hotels and inns, travelling corporations such as buses and trains, not to mention travel agencies themselves partnered with governments and departments to ensure the enjoyment of the tourists. It is not a very big surprise that many people are opting to take a vacation in other areas in an effort to satisfy their curiosity as well as fulfil their chance to relax and be able to enjoy the offers of other countries.

Basically, the tourism industry is one of the important sub-groups present in the society, and this organisation function differently, in relation to business, health, political, economic, and societal conditions. Actually, all organisations not only the tourism industry have several missions, tasks, responsibilities, market, and services provided in society, and the difference in their tasks and responsibilities makes them a unique sub-group. Organisations are comprised of teams with various functions, which contribute to the productivity of their organisation. With this, it is important for teams to work efficiently and effectively, to enhance and improve the whole organisation. The saying, “the sum of its parts is greater than the whole” applies to every organisation, for if one part or team of the whole organisation collapses, then the rest of the organisation is affected. That is why it is important to assess the teamwork and organisational structure of a company or business organisation.

In this regard, the core objective in every hospitality organisation is the achievement of competitive advantage or the edge that the business firm has over its competitors in the industry. To achieve competitive advantage, the hospitality business should identify relevant strategies and incorporate these into its strategic plan to direct its operations towards the creation of value for customers and for the organisation. However, before an organisation can start to implement its strategic plan and manage its progress, it is imperative that the organisation is able to differentiate strategy from strategic plan in order to distinguish their respective roles in its capability optimisation and resource maximisation targets.

The success of most hospitality businesses and tourism companies and organisations today acknowledges the contribution of managers. Actually, managers are supposed to intermingle with the employees and staff members. In this case, the manager should carefully explain to his/her employees that success is not only for struggling people but also to high-achieving employees to enhance their capacities. Careful explanation should be done in a way that a manager will not be degraded or questioning the capabilities of the employees. As a manager, he / she may direct the employees to develop quality programs that enhance capabilities but it is also very vital for the manager to give good suggestions in this problem.

Strategic management goes beyond encouraging and guiding other people to seek solutions to problems. Managers must be able to contribute to the substantive thinking necessary to move a business beyond problems and into opportunities. There are many aspects of substantive thinking. The imagination draws on acuities about people's needs and how to satisfy them with a product or service. This imagination is probably the most important in successful strategic management because it is hardly possible to be right about many aspects of a business if the marketing side is wrong. Many managers who have strategic management imagination still lack a sense of products and markets. If, in addition, their strategic management imagination leads them to the point where they fail to acknowledge realities, they sooner or later cause trouble. They mistake the possibility of synthesising a deal for the economic soundness in back of the deal.

Discussions

The Need for Strategic Management

Tourism businesses undergo strategic management process to arrive at certain strategic actions that they use to obtain their desired results. These businesses are able to match the conditions of the ever-changing market with their continually evolving (often scarce) corporate structure and strategy. The vitality of strategic management is that it carefully integrates strategy formulation and strategic implementation resulting to strategic actions that targets strategic outcomes.

Strategic management process is intended to arrive at well-developed approach to help the hospitality business handle the challenges of the modern marketplace wherein globalisation connects the external environment of different countries, existence of hyper-competition and evolution of more sophisticated customers. In the planning stage, strategic inputs should be well-gathered to serve as a good foundation for strategic actions. In the implementation stage, strategists should provide the platform for organisational members and external stakeholders for feedback for improvement or adjustments required to the implemented strategy. Since strategists are commonly positioned in the top-level hierarchy of a hospitality business, open communication can be used to gather necessary feedback (when it comes to employees) while research can be applied to analyse the external stakeholders (Hitt et al 2003).

The Comparison of Managers

Managers without knowledge of strategic management have more individualistic tendencies than their counterparts building a manager’s state towards conformity with his work with less emotional attachment to the company. In contrast, hospitality managers that implement strategic management are more risk averse to uncertainty than their equivalents which is compatible to their relative formal lifestyle as high uncertainty avoidance put great emphasis to tried-and-tested methods. Further, it is found that managers that implement strategic management are more likely to be concerned on automatic respect for authority and hierarchy than managers without knowledge of strategic management. As a result, the former would tend to act according to expectations while the other exhibits inherent regard to seniority and/ or being a male from young members which are considered learners. However, this authority has consequent responsibility to guide the learners and giving license to the latter for more mistakes (Jackson & Tomioka, 2003).

In addition, managers that implement strategic management take a long-term time orientation whereas managers without knowledge of strategic management settle for interim phases which were invigorated by the trust put by the former to their nearest factor to control, human resources, which has known commitment and flexibility. This then would offset the uncertainty factor illustrated earlier. Next, managers that implement strategic management have high-context communication than managers without knowledge of strategic management which means that implicit information and silence are more tolerable. In high-context environments, the information is already in the person. As a result, social cohesion is observed among managers that implement strategic management in corporate linkages as the high-context communication requires face-to-face interaction to better know the personality of the communicators. On other hand, managers without knowledge of strategic management are irritated in the lack of clear information due to their reliance to individualistic capabilities. In effect, communication difference alone suggests a number of implications to the varying approach between these managers (Jackson & Tomioka, 2003).

In strategic management, tourism organisations emphasise three critical issues; namely, internal labour market, concern to employee needs, and cooperation and teamwork under unique hospitality business environment. In effect, these issues are translated into extensive training, participative decision-making, adaptive organisation, competitive appraisal system and continuous consultation. In this arrangement, the hospitality business seeks to employ and retain applicants that can accept and blend in the values and culture of the organisation. Fairness is also a vital factor since white- and blue-collar employees has relatively small disparity in terms of benefits (Pucik & Hatvany, 1983).

Essential Strategic Management Qualities of Hospitality Managers

Planning. Planning is commonly known as the process of formulating in advance as organised behaviour action. While it is true that people do not always plan their actions, it is inherent for any tourism organisation especially the managers to plan. However, whether dealing with the context by which planning is occurring or whether on the individual or organisational level, the process takes shape according to the prevailing attitudes, beliefs and goals that are involved. The hospitality business's objectives should reflect standards of success in competitive performance, as well as acceptable levels of risk and rates of long-term growth (Roney, 2004). The manager’s role in planning for the management function is to define goals for future performance of the tourism organisation. He/she also decides on the task and the resources to be utilised in achieving the predetermined goals. In meeting such goals, he/she applies significant materials or resources related to strategic management.

It is a fact that lack of formal planning (Baird et al., 1993) or poor planning process alone can decrease organisational as well as individual performance or the worst, defunct the tourism organisation. The role of the manager is to ensure the best people, materials, procedures, and applications in implementing plans while the role of the executive assistant is to aid the manager in dealing with such matters. The presence of strategic planning in management minimises the potential pitfalls of the said process such as uncertainty (Matthews & Scott, 1995; Roney, 2004). The success of several organisational endeavours that is engage in hospitality businesses lies on the effectiveness of every individual to plan, evaluate and materialise arrangement in connection to the achievement of the tourism organisation’s goal.

Organising. Thematically, organising is the act of putting similar elements following one or more rules (Morgenstern, 1998). In an organisational perspective, it is the management function that usually follows after the planning process. Generally, the organising duty of the manager includes the specification and distribution of tasks to appropriate departments. It also involves the assignment of authority and allocation of resources. The said ways are the immediate responsibilities of the manager together with the executive assistant.

Process and decision models are useful to the manager in organising the work and intellectual contributions to be drawn from all levels of the management tourism organisation (Roney, 2004). Some models that could be used in situations like the aforementioned one are Plan-Do-Check-Act Cycle and Value Analysis. Organising is crucial in developing inputs to planning, making planning decisions, and implementing strategy. To be effective, however, comprehensive management function in the business must be a continuous process. However, the organisation process that is conducted within the company is dependent on the plans that must be implemented.

In connection to the diagrams and model applicable in this encounter, the plan-do-check-act cycle will help the manager to observe, learn, apply, and develop the characteristics that will help him / her achieve given goals. Further, value analysis helps the manager to study the operations and the real flow of the process of executive assisting.

Directing/Leading. The role of the manager in directing/leading a management function is reliant to the development and implementation of designs or plans made. It is important that he/she must consider cost effective and time efficient ways in leading. His/her day-to-day responsibility of running the daily business and leading the group in developing the plans for the long term future of the tourism organisation is accounted to his/her leadership abilities and managerial prowess. Furthermore, the manager is encouraged to adapt participative approaches to directing/leading in order to elicit useful characteristics and elements that are functional for the hospitality business’s success. The leadership styles the executive assistant chooses to utilise is also a vital determinant of effective directing process. Thus, it is still fundamental to study the feasible applications to be implemented in accordance to the achievement of tourism organisation’s prime motives. Chemers, MM 1997, identified four main behaviours that managers should adopt in terms of leadership:

  • Concern for task. Here leaders emphasise the achievement of concrete objectives. They look for high levels of productivity, and ways to organise people and activities in order to meet those objectives.
  • Concern for people. With this behavioural characteristic, leaders tend to look upon their followers as people - their needs, interests, problems, and focus on the personal development of their followers. Followers are not simply seen as units of production or means to an end.

  • Directive leadership. This behaviour is characterised by leaders taking decisions for others - and expecting followers or subordinates to follow instructions.
  • Participative leadership. This is a behavioural characteristic where leaders try to share decision-making with others both followers and peers.

Most of the early proponents of the behavioural model focused on participative and people-centred leadership, making the case that leaders who concentrated on these behavioural aspects in their leadership would bring about greater satisfaction amongst followers.

Coordinating. Coordination is the regulation of all the various aspects of the tourism organisation into integrated and harmonious operations. It is the integrating and establishing of linkages to diverse sections of the tourism organisation in order to accomplish a communal set of objectives. For instance, in coordinating information to all members of the tourism organisation, the manager’s role is to see to it that there is unity on all aspects given by his/her superior. Managing information that the company uses in its daily operations is crucial in any business tourism organisation especially to the manager. Information is the blood stream of every company on which every staff, employee, and manager work on in order to meet the demands of the clients and customers of the business. This is the reason why there should be proper management flow within the organisation’s manager and the rest of the manpower. Direct link between the managers, supervisors, and the subordinate employees should be efficient enough to answer to the daily work loads of the members of the tourism organisation. Communication between and among the members of the tourism organisation is prioritised in order to provide a well-functioning business operation within and outside the working tourism organisation. However, there are some significant elements that are barriers to coordination. Among these are intervening factors such as personal indifferences, cultural pluralism, and behavioural diversity among members of the group (Trebing, 1996).

Controlling. Acting as a manager, it is his/her sole responsibility to implement plans but at the same time limiting the possible negative consequences in favour of the higher authority. It has been demonstrated that the emphasis in successful management lies on the man/woman, not on the work; that efficiency is best secured by placing the emphasis on the man/woman, and modifying the equipment, materials and methods to make the most of the man/woman. It has, further, been recognised that the man's mind is a controlling factor in his/her efficiency, and has; by teaching, enabled the man/woman to make the most of his/her powers (Gilbreth, 1914).

CONCLUSION

One of the keys for a successful organisation is a good manager. Can you imagine a tourism organisation, an airline company, a hotel organisation, a tourism business succeeds without good governance? According to Kousez and Posner (2002), credibility is the foundation of a good manager. A manager should be credible for him to lead. In addition to this characteristic, a manager should possess honesty, competence, aspiration, and a forward-looking approach. Come to think of this, would you believe in managers who do not practice what they preach, do not walk the talk, do not do what they say they will do, and do not keep their promises? The statistics show that majority do not.

Strategic management is the secret to success in life; it is not just some individual’s business but it is everyone’s business. Strategic management is also about building personal relationships. It is unquestionable to say that to have strategic management skills is a challenge and most people are having hard time achieving this. In the business point of view, strategic management proves to be quite beneficial. Strategic management aids in effectively meeting job-related demands, in creating higher-performing teams, in fostering renewed loyalty and commitment, in increasing motivational level and in reducing absenteeism and turnover of employees.

Unfortunately, this so-called effective strategic management is not that easy to attain; effective strategic management is not as easy as writing down notes. Strategic management entails a lot of hard work, dedication, and many other factors. However, strategic management should not be a burden to us; we should embrace it as a challenge.

The above scenario will be evident in the nature of the job of a manager. Similarly, the above solutions are generally applicable in every situation that caters to the management function and even ordinary tasks in the corporate environment. The models utilised are still vital to learn and develop more skills that will eventually result to better and excellent performance in the competitive workplace surrounding the manager.

The traditional values in strategic management culture are individual recognition for effort and collective recognition for a job well done, advancement/ promotion bias on males and seniors, harmony in relations with line-managers and immediate supervisors, cooperation within groups, and employment security. However, there are emerging challenges and issues against this traditional view. In a recent case study, promising strategic manager’s features are generally described as to likely resort to additional earnings for those who become dissatisfied to the current regimes and to finance quality of life (with family) that is willing to forgo employment opportunities. Thus, security of employment is faced with an alternative in employment areas that have greater challenges and achievement for individual recognition and satisfaction for a job well done. With strategic managers realising the need of self-esteem and personal achievement, risk-averse tendencies and reliance to job security and automatic promotion are becoming lesser significant (Jackson & Tomioka, 2003).

References:

Baird, I.S., Kuratko, D.F., Lules, M.A. & Orris, B.B. 1993. Formalised Planning in Small Business: Increasing Strategic Choices. Journal of Small Business Management, 31 (2), 38+.

Chang, T. C., Huang, S. & Savage, V. R. 2004. “The Singapore River Thematic Zone: Sustainable Tourism in an Urban Context.” The Geographical Journal, 170 (3), 212.

Chemers, M. M. 1997. An Integrative Theory of Leadership. London: Lawrence Erlbaum Associates.

Gilbreth, L. 1914. The Psychology of Management. New York: Sturgis & Walton. In Witzel, M. (2003). Fifty Key Figures in Management. Routledge: New York.

Hitt, M, Hoskisson, R & Ireland 2003, Strategic Management: Competitiveness and Globalisation, 5th Edition, South Western; Thomson Learning, Singapore.

Jackson, K. & Tomioka, M. 2003. The Changing Face of Japanese Management. New York: Routledge.

Kouzes, J.M. and Posner B.S. 1987, The Leader Challenge, Second Edition. San Francisco, California: Jossey Bass Wiley.

Leader-Elliott, L. 2002. “Indigenous Cultural Tourism as Part of the Birdsville/Strzelecki Experience.” Australian Aboriginal Studies, (2), 35.

Matthews, C.H. & Scott, S.G. 1995. Uncertainty and Planning in Small and Entrepreneurial Firms: An Empirical Assessment. Journal of Small Business Management, 33(4), 34+.

Moli, G. P. 2003. “Promotion of Peace and Sustainability by Community Based Heritage Eco-Cultural Tourism in India.” International Journal of Humanities and Peace, 19 (1), 40.

Pucik, V. & Hatvany N. 1983. Management practices in Japan and their impact on business strategy. In Lamb (Ed).

Roney, C.W. 2004. Strategic Management Methodology: Generally Accepted Principles for Practitioners. Westport, CT: Praeger.

Trebing, H.M. 1996. Achieving Coordination in Public Utility Industries: A Critique of Troublesome Options. Journal of Economic Issues, 30 (2), 561+.

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