1. 14
Leadership and Management

2. Chapter Objectives
After reading and studying this chapter, the student should be able to do the following:
Identify the characteristics and practices of leaders.
Define leadership.
Identify the characteristics of management.
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3. Chapter Objectives
After reading and studying this chapter, the student should be able to do the following:
Define management.
Differentiate between leadership and management.
Discuss ethics in hospitality.

4. Leadership
Leaders can and do make a difference when measuring a company’s success.
In addition to these leadership traits, the following identifiable practices are common to leaders:
Challenge the process. Be active, not passive; search for opportunities; experiment and take risks.
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5. Leadership
In addition to these leadership traits, the following identifiable practices are common to leaders:
Inspire a shared vision. Create a vision; envision the future; enlist others.
Enable others to act. Do not act alone; foster collaboration; strengthen others.
Model the way. Plan; set examples; strive for small wins.
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6. Leadership
In addition to these leadership traits, the following identifiable practices are common to leaders:
Encourage the heart. Share the passion; recognize individual contributions; celebrate accomplishments.

7. Definitions of Leadership
In terms of hospitality leadership, the following definition is appropriate:
Leading is the process by which a person with vision is able to influence the activities and outcomes of others in a desired way.
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8. Definitions of Leadership
In terms of hospitality leadership, the following definition is appropriate:
Leaders know what they want and why they want it—and they are able to communicate those desires to others to gain their cooperation and support.
Leadership may be identified as transactional or transformational.

9. Transactional Leadership
Transactional leadership is viewed as a process by which a leader is able to bring about desired actions from others by using certain behaviors, rewards, or incentives.
In essence, an exchange or transaction takes place between leader and follower.
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10. Transactional Leadership
An example of a transactional leader is a hotel general manager who pressures the food and beverage director to achieve certain goals in exchange for a bonus.

11. Transformational Leadership
Transformational leadership describes the process of eliciting performance above and beyond normal expectations.
A transformational leader is one who inspires others to do more than they originally thought possible, by raising their commitment to a shared vision of the future.
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12. Transformational Leadership
Transformational leaders have a hands-on philosophy in terms of encouraging their followers individually, not in performing day-to-day tasks.
Transformational leadership entails three important factors: charisma, individual consideration, and intellectual stimulation.
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13. Transformational Leadership
It is possible to be a charismatic transformational leader as well as a transactional leader. It takes substantial effort but guarantees success.

14. Examples of Excellence in Leadership
Dr. Martin Luther King, Jr., was one of the most charismatic transformational leaders in history, dedicating his life to achieving rights for all citizens by nonviolent methods and winning the Nobel Peace Prize in 1964.
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15. Examples of Excellence in Leadership
Herb Kelleher, former president and CEO and current Board Member of Southwest Airlines inspired his followers to pursue his corporate vision, setting Southwest apart from its competitors.
He valued individuals for themselves and was frequently seen interacting with passengers on Southwest flights.

16. Demands Placed on Leaders
Other demands on a leader in the hospitality industry include the owners, the corporate office, guests, employees, regulatory agencies, and competitors.
The leader must balance two additional forces: how much energy to expend on getting results and how much to expend on relationships.
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17. Demands Placed on Leaders
Common traits of leaders include: high ego strength, the ability to think strategically, an orientation toward the future, a belief in certain fundamental principles of human behavior, strong connections they don’t hesitate to display, political astuteness, and the ability to use power for efficiency and the larger good of the organization.
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18. Demands Placed on Leaders
Peter Drucker identifies four common traits of leaders: they have followers, their followers do the right things regardless of the leader’s popularity, they are visible and set examples, and they are concerned with responsibility, not rank or money.
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19. Demands Placed on Leaders
According to Drucker, leaders ask what needs to be done and what they can do to make a difference, taking into account their strengths.
Effective leadership skills include: being decisive, following through, selecting the best, empowering employees, and enhancing career development.

20. Hospitality Management
Managers forecast, plan, organize, make decisions, communicate, motivate, and control the efforts of a group to accomplish predetermined goals. Managers establish the direction the organization will take.
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21. Hospitality Management
Managers obtain the necessary resources for the tasks to be accomplished and supervise progress toward goal accomplishment.
Top management focuses on strategic planning and the organization mission; middle and supervisory management are responsible for day-to-day operations.

22. What is Management?
Management is defined as the process of “coordinating and overseeing the activities of others so that their activities are completed efficiently and effectively” with and through other people.
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23. What is Management?
Efficiency is getting the most done with the least amount of inputs; managers work with scarce resources—money, people, time, and equipment.
Management is also about being effective; effectiveness is “doing the right thing,” as in cooking food correctly and having it ready on time.

24. Who Are Managers?
A manager is someone who works with and manages others’ activities to accomplish organizational goals in an efficient and effective way.
There are three levels of managers.
Frontline managers manage the work of “line” employees; they may also be called supervisors.
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25. Who Are Managers? There are three levels of managers.
Middle managers, such as department heads, are responsible for short- to medium-range plans; they manage frontline managers.
Top managers are responsible for medium- to long-range plans.

26. Key Management Functions
The key management functions are planning, organizing, decision-making, communicating, motivating, and controlling.
They are interdependent and frequently happen simultaneously or at least overlap.
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27. Key Management Functions
Planning involves setting the company’s goals and developing plans to meet or exceed these goals.
Organizing decides what needs to be done.
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28. Key Management Functions
Decision-making includes determining the vision, mission, goals, objectives of the company, and it also includes scheduling employees and responding to guest needs.
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29. Key Management Functions
Communicating and motivating get the job done.
Motivating includes maintaining morale, molding corporate culture, and managing conflict.
Controlling involves setting standards, monitoring, comparing, and correcting results.

30. Managerial Skills
There are three other major skill areas: conceptual, human, and technical.
Conceptual skills enable top managers to view the corporation as a complete entity split into different departments.
Interpersonal skills involve dealing with people.
Technical skills involve using techniques, methods, and equipment.
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31. Managerial Skills
As a manager rises, the need for conceptual skills increases and the need for technical skills decreases.

32. The Manager’s Changing Role
Managerial duties also encompass various roles, including figurehead, leader, liaison, spokesperson, and negotiator.
The figurehead role involves performing ceremonial duties.
The liaison role includes contact with people in other departments.
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33. The Manager’s Changing Role
Managerial duties also encompass various roles, including figurehead, leader, liaison, spokesperson, and negotiator.
As negotiator, a head of a company may negotiate with a union.
The two most important changes right now are technological advances and internationalization.
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34. The Manager’s Changing Role
The manager’s role is not only internal but also external.
For instance, a manager must be responsive to market needs and income generation.
Managers must continually strive to be innovative by realizing efficiencies in their respective areas.

35. Sustainable Leadership
Many business leaders, including hospitality ones, are becoming increasingly more concerned about sustainability.
Not only are they concerned about the environment, but also about social responsibility.
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36. Sustainable Leadership
Leaders and managers need to steer the organization on a path of sustainability for all associates to follow.

37. Distinction Between Leadership and Management
Managing is the formal process by which organizational objectives are achieved through the efforts of subordinates.
Leading is the process by which a person with vision is able to influence the behavior of others.

38. Ethics
Ethics is a set of moral principles and values that people use to answer questions about right and wrong.
Ethics is also about our personal value system, and there are people with value systems different from ours.
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39. Ethics
Ethics and morals have become an integral part of hospitality decisions from employment to truth in menu.
Many corporations have developed a code of ethics that all employees use to make decisions.

40. Trends in Leadership and Management
The following are concepts currently trending in the hospitality industry:
Leadership is walking the talk (setting examples).
Uncertainty makes leadership harder (we must communicate with employees).
Developing first-line leaders (develop and recognize leadership traits).
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41. Trends in Leadership and Management
The following are concepts currently trending in the hospitality industry:
Leadership skills are vital (strong people leadership skills).
More thoughtful training (engage the employee in the training process).
Choosing a leadership style that works (the key to leadership is learning what technique works for each individual person).
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42. Trends in Leadership and Management
The following are concepts currently trending in the hospitality industry:
Understand your organization (all functions of the business must work smoothly in harmony).
Accepting responsibility (never shift blame).
Exceptional listening (be open to employee suggestions).
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43. Trends in Leadership and Management
The following are concepts currently trending in the hospitality industry:
Don’t hesitate to ask why (question the system).
Excel at every opportunity (positive attitude and never overlook an opportunity).