1 Empowering Service Personnel PG Diploma in Hospitality Management Customer Service and Quality Systems – Session 4

2 Objectives Understand theories of motivation in the work place. Understand the need for employee empowerment in the hospitality industry Understand the means by which employees may be empowered Understand the organisational conditions in which empowerment may be implemented

3 Review What is the difference between data and information – give examples? Explain PMS, CRS and GDS. Questions on knowledge management – final slide of last week’s presentation

4 Characteristics of Hospitality Active participation of employees interacting with guests Limited opportunity for inspection or testing of service Employee is the representative of the organisation

5 Importance of Employees Managers have limited power to: Change products or services Use different processes Change premises or location Therefore, Managers must find: Better ways for employees to do their jobs Ways to motivate employees to exceed expectations

6 What Motivates Employees? Give your own ranking to these work-related goals: 1.Training opportunities to improve skills or learn new ones 2.Challenging work giving sense of accomplishment 3.Freedom to adopt own approach to the job 4.Keep up-to-date with technical developments 5.Fully use your skills and abilities on the job 6.Opportunity for advancement to higher level job 7.Receiving recognition when you do a good job 8.Opportunity for high earnings 9.Work with people who co-operate well with one another 10.Have a good working relationship with your manager 11.Have sufficient time for personal life and family 12.Work in a congenial and friendly atmosphere 13.Job that allows you to make real contribution to success of your organisation 14.Work in a department that is run efficiently 15.Security that you will keep job as long as you want it 16.Live in an area desirable to you and your family 17.Have good fringe benefits 18.Good physical working conditions 19.Work in a company that is regarded in your country as successful

7 Theories of Motivation McGregor – Theory X and Theory Y Maslow – hierarchy of needs Herzberg – hygiene and motivation factors Vroom – expectancy theory

8 McGregor Theory X People dislike their work Most people must be controlled and threatened before they will work hard enough The average person prefers to be directed People dislike responsibility People like unambiguous tasks Employees desire security above all else Theory Y Work is as natural as play or rest Employees will direct themselves if committed to the aims of the organization Job satisfaction leads to commitment to the organization Under proper conditions people not only accept but seek responsibility Employees will use their imagination, creativity and ingenuity to solve problems Intellectual potential of average employee are only partly used

9 Maslow – Hierarchy of Needs

10 Maslow’s Assumptions Lower level needs must be satisfied before higher level needs become motivators Once a need is satisfied it is no longer a motivator There are more ways to satisfy higher level needs than lower level needs

11 Maslow and Job Types Researchers asked people from different job types to rank work related goals You have already done this yourself – see slide 6 Professionals gave priority to goals corresponding to high Maslow needs Clerks gave priority to goals corresponding to middle Maslow needs Unskilled workers gave priority to goals corresponding to low Maslow needs

12 Maslow and Culture Nevis suggests that Maslow’s hierarchy reflects western culture focusing on needs of individuals For Chinese he suggests: Other research suggests that Maslow’s hierarchy is about the same from one culture to another Self actualisation in service of society Safety Physiological needs Social belonging

13 Herzberg – Hygiene and Motivators Hygiene Factors working conditions security salary interpersonal relations status policies and administration Motivation Factors achievement recognition responsibility growth / advancement interest in the job

14 Content Theories Maslow and Herzberg are known as “content theories”: Based on the concept of hedonism Assume that individuals seek to satisfy all needs Assume homogeneity of needs and individuals

15 Vroom – Expectancy Theory Individuals have different sets of goals and can be motivated if they believe that: positive correlation between efforts and performance favorable performance will result in a desirable reward reward will satisfy an important need desire to satisfy the need is strong enough to make the effort worthwhile EXPECTANCY 1 Ability to Produce EXPECTANCY 2 Work will be Rewarded PERSON is motivated TASK GOAL to produce work OUTCOME 1 to receive pay OUTCOME 2 to buy house INSTRUMENTALITY prediction of final outcome

16 Vroom’s Three Variables Valence - Management must discover what employees value. Expectancy - the belief that output from the individual is linked to the success of the situation e.g. “If I work harder then this will be better.” Instrumentality - the belief that the success of the situation is linked to the expected outcome of the situation e.g. “It's gone really well, so I expect praise.” Vroom’s theory questions the assumption that people know or feel that action leads to a result.

17 Motivation Theories How useful is each of the theories we have discussed so far? What do you feel are their limitations?

18 Hofstede Power Distance - expectations regarding equality among people Uncertainty Avoidance – tolerance of ambiguity and unstructured situations Individualism/Collectivism – relationship between the individual and the group Masculinity – tendency to support traditional gender roles

19 Scores on Cultural Dimensions CountryPower Distance Uncertainty Avoidance IndividualismMasculinity UK US Arab China France Germany India Percentile rankings: 100 highest, 50 middle

20 Pay and Motivation Research shows no simple relationship between pay and motivation Attempts have been made to stimulate employee interest in company financial performance through: –Profit-sharing –Share ownership Linked with consultative managerial style which may be the more motivating

21 Empowerment Give employees authority to make decisions Open and decentralised communication system Reward and recognise those who assume responsibility and perform well

22 Participative Management Style Encourage people to express their concerns Describe a proposal as tentative Record ideas and suggestions Look for ways to build on ideas and suggestions Be tactful in expressing concerns about a suggestion Listen to dissenting views without being defensive Try to utilise suggestions and deal with concerns Show appreciation for suggestions

23 Ritz-Carlton Credo “We are ladies and gentlemen serving ladies and gentlemen” The Ritz-Carlton Hotel is a place where genuine care and comfort of our guests is our highest mission We pledge to provide the finest personal service and facilities for our gests who will enjoy a warm, relaxed yet refined ambience The Ritz-Carlton experience enlivens the senses, instils well-being, and fulfils even the unexpressed wishes and needs of our guests

24 Blanchard – Three Keys Key 1 – Sharing information with everyone Let employees decide what they need to know to do the job Key 2 – Autonomy through boundaries Employees should work within organisational values and goals with an understanding of roles Key 3 – Self-directed work teams Groups who have responsibility for a specific service or product

25 Enabling and Inhibiting Factors Enabling Factors Front line staff are responsible for service quality Employees must operate independently Supervision often difficult Service tradition Inhibiting Factors Managers uncomfortable with empowerment Employees feel asked to do more for same pay Low wages + high turnover Lack of training Pressure for profits

26 Tools for Implementation Executive Leadership – commitment from the top Policies in Place – boundaries and autonomy established Training – employees must be equipped Information Sharing – free dissemination of all relevant information Organisation and Structural Change – enable self-directed work groups

27 Case Study Discuss the Grand Hotel case study in groups and make recommendations