For an individual to be a successful leader in the hospitality industry, the leader is required to be efficient in the three aspects: organization culture, ethics and talents. Leadership skills can be successfully developed by employing the three aspects.
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Organization culture is a component, which is crucial for developing deep-rooted values in an organization especially in hospitality setting since this will enable the managers and workers interact freely hence, promoting company’s objectives. The leader has the responsibility of setting objectives, which are attainable and feasible .In addition, the leader need to develop specific ways in which these objectives can be achieved by the employees and at the same time, the leader should create favorable working environment for achieving the set objectives, which in turn promotes organizational culture in hospitality industry (Kim et.al, 2010).
Ethics play a vital role in hospitality industry. The hospitality industry operations are judged by ethical principles by the community. Therefore, leaders in the hospitality industry have the role of ensuring that ethics are incorporated in business operations of the industry hence, developing sustainable business environment. Ethics ensure that the leader makes well-informed decisions that take into account the elements of legal and moral issues. The leader need to impart to employees the aspect of ethics through education that entail developing policies and standards that can be used to evaluate whether a behavior within the organization is ethical or not.
Talent among leaders takes the aspect of effective communication in the hospitality industry. This means that, for better provision of services to clients, the leaders need to promote and explore talents within the industry to meet the competitive nature of the industry. The leader has the role of developing effective communication strategies with the employees to promote the element of employees’ satisfaction. In addition, apart from leaders motivating employees, there is need for feeding employees with information related with the objectives and policies of the industry (Kim et.al, 2010).
On McDonald’s Corporation’s 10-k report, there are several economic risks that can impact an organization and one of them is economic risk. Both global and local market policies adversely impact on company’s sales, profits and net income. Economic risk can lead to high unemployment rates in the society and constant risks in financial institutions hence, increasing labor costs and lowering sales and net income within the company. Economic risk also impact on global market by affecting asceticism strategies of the local market hence unanticipated change of foreign exchange. Economic risk in a company has devastating effects because it paralyses its operations hence its objectives. This can result to the company entering into a period of financial crisis hence collapse of the company (McDonald Corporation, 2010).
Government risk is another aspect that is encountered in business environment. The risk occurs when the government increases its regulations thus complicating ways of doing business. For instance, government regulations on issues of nutrition and health will escalate the company’s costs of operation in raw materials; regulations of franchising restrictions will limit company’s access to global market. McDonald’s Corporation cannot be affected by government regulations as compared to other small business because of their vast resources in form of capital. In addition, the company has adequate experience on matters related to area monopoly and the company has succeeded in the past despite increasing government regulations and franchising in the business environment. McDonald Corporation has well established strategies and approaches that enable the company to quickly and effectively deal with emerging government risks. These risks have enabled the company improve its reputation and develop long-term strategies in both local and global markets (McDonald Corporation, 2010).
Even in best hospitality industries, it is difficult to avoid service failures .When service failures occur in an industry, clients will evaluate the outcome and their abilities to confront the dissatisfying encounter, which is a secondary assessment. The clients of the company have the responsibility of assessing the magnitude of service failure so that they can be in position to determine the level of (dis) satisfaction that is found in the primary stage of appraisal. This will enable them proceed to the secondary evaluation that will enable them deal with clients’ capability to deal with the dissatisfying encounter. Both the secondary and primary appraisal has influence on customers complaining attitudes (coping strategy). In addition, based on their primary dissatisfaction reaction, clients will determine their coping strategies so that they can be able to minimize stress elicited by dissatisfying experience. Tronvoll (2007) puts that complaining attitudes are best comprehended as flexible change procedures that happen during the process of service delivery in a business environment. The coping strategies comprise of negative oral words (the negative impacts of service failures, which are amplified when clients spread the dissatisfying encounters via the social networks), voice (voice one’s level dissatisfaction is a great aspect of coping and fundamentally a political response), and inertia (consumers in most cases remain silent when service failure happen) (Kim et.al, 2010).
After clients lodging their dissatisfaction with poor service provision, the service provider might make some service delivery approaches to respond. Fairness theory is a leading theoretical structure that applies to service recovery comprising the following factors; procedural, outcome, and interactional fairness.
Voice works constructively towards a service organization since the complaints are directed to the service provider thus enabling the service industry to response in time hence minimizing risk to the industry. This also increases service delivery within the service industry. The aspect of voice within an industry enables it to employ service recovery approach, thus promoting customer loyalty and recreating the industry’s reputation (Kim et.al, 2010).
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