TOPIC 6. Employee Empowerment.pptx

HOS 5801 Managing Luxury Hospitality Establishments Employee Empowerment Employee Empowerment Employee Empowerment Employee empowerment refers to the delegation of authority, autonomy, and decision-making power to employees at various levels...

HOS 5801 Managing Luxury Hospitality Establishments Employee Empowerment Employee Empowerment Employee Empowerment Employee empowerment refers to the delegation of authority, autonomy, and decision-making power to employees at various levels within an organization, thereby enhancing their sense of ownership, accountability, and self-efficacy. Managing employee (Thomas & Velthouse, 1990) empowerment in European luxury hotels Employee Empowerment Leadership Styles Huertas-Valdivia, I., Rojo Gallego-Burín, A.M, Lloréns-Montes, F.J. (2019), "Effects of different leadership styles on hospitality workers", Tourism Management, Vol. 71, pp. 402-420 Employee Empowerment Servant Leadership A servant leader is an individual who improves his/her followers’ necessities, self-concept, beliefs, and values, by firstly setting an example of high moral standards, integrity, kindheartedness, and dedication. Huertas-Valdivia, I., Rojo Gallego-Burín, A.M, Lloréns-Montes, F.J. (2019), "Effects of different leadership styles on hospitality workers", Servant leaders believe in ethical utilization of Tourism Management, Vol. 71, pp. 402-420 power and encourage participant behaviors that enhance job efficacy. Servant leadership influences employee behavior positively because it fulfills some of the workers’ psychological needs. Employee Empowerment Servant Leadership The characteristics of servant leadership (foresight, persuading, awareness, and stewardship) are very important for employee empowerment Servant leaders include followers’ input into Huertas-Valdivia, I., Rojo Gallego-Burín, A.M, Lloréns-Montes, F.J. important managerial decisions. As a result, (2019), "Effects of different leadership styles on hospitality workers", followers feel that a significant part of the business’ Tourism Management, Vol. 71, pp. 402-420 success is their responsibility Servant leaders’ behavior increases employees’ self- determination and self-efficacy levels by providing them with autonomy, empowerment, and the conditions in which to grow and develop Employee Empowerment Employee Empowerment Empowering Employees Implementing employee empowerment requires leaders to examine the importance of: Training Reward practices Organizational culture perceptions Management style Employee Empowerment Achieving engaged employees in hotel businesses requires managerial tools that foster psychological empowerment Empoweri Empowering leadership is found to be a key leadership style for ng hospitality managers, given its strong and positive influence on customer-contact staff Employee Employees who identify their managers as employing an empowering leadership style are more likely to feel s engaged and empowered at work Huertas-Valdivia, I., Rojo Gallego-Burín, A.M, Lloréns-Montes, F.J. (2019), "Effects of different leadership styles on hospitality workers", Tourism Management, Vol. 71, pp. 402-420 Employee Empowerment Empowering Employees Empowerment does not require management to refrain from controlling employee behavior Rather, empowerment requires a change in the form of management control that is exercised. Employee Empowerment Empowering Employees “devolving decision-making authority and responsibility to frontline employees for control and enhancement of service quality and customer satisfaction during service delivery” (Klidas, 2001) Employee Empowerment Empowering Employees Empowerment requires employees to engage in discretionary behavior, aiming at…  Meeting or exceeding customers’ expectations during routine and – especially –  Non-routine service situations Employee Empowerment Examples: By passing routine procedures or bending the rules to please customers Empowering Taking immediate action to resolve customer complaints, even if the complaint is not Employees directly related to their area of responsibility Making financial concessions Using creativity and doing “whatever it takes” to please guests, even beyond what is expected of them as employees Exercising discretion in their dealings with guests Employee Empowerment Empowering Employees In short, “empowered behavior” reflects the demonstration, by employees, of independent decision- making, initiative, and creativity, to enhance customer satisfaction. Employee Empowerment Empowering Employees Empowerment represents a shift in the locus of control from externally imposed directive control to internally imposed self-control How can management achieve this shift in the locus of control? By using four forms of managerial control according to their focus Employee Empowerment Empowering Employees (1)Ex-ante control. Operating before the event and focusing on inputs in the form of materials, the knowledge and skills of those carrying out the work (2) Concurrent control. Operating during the event and focusing on the processes, in the form of technical and behavioral methods used for carrying out the work Employee Empowerment Empowering Employees (3) Ex-post control Operating after the event and focusing on outputs in the for of the material, informational, financial, or other results of the work process (4) Meta control Operating “above” the event and focusing on values in the form of notions of what is important and desirable to be held by those carrying out the work Employee Empowerment Implementation Factors Careful employee selection, recruitment and training, as a means of exercising ex- ante control Have empower-able employees and inculcate in the work process the skills, knowledge, and attitudes conducive to the development of employee behavior that responsible during service delivery Employee Empowerment Implementation Factors Performance-related rewards for promoting employee responsibility, creativity, and initiative. Customer-oriented organizational culture to enhance service delivery. Empowering management style to instill company values, shape attitudes, and stimulate desired behaviors. Employee Empowerment Training Effective training enhances morale, motivation, and flexibility while reducing staff turnover. It promotes independence, reducing the need for constant supervision (Servant leadership). Training instills feelings of self-efficacy, enabling employees to participate in decision-making effectively. It imparts the skills and knowledge needed for responsible and effective use of increased authority. Employee Empowerment Training "Empowerment training" should focus on instilling various skills in employees. It should emphasize "soft" skills like interpersonal and communication skills to enhance customer care competence. Training should also provide technical and professional knowledge and skills required for delivering quality guest service. Employee Empowerment Customer- Centric Culture A customer-oriented culture is necessary for the development of empowered behavior during the delivery of service It is the ideas, beliefs, and values of the hotel that influence employees to act in customer-oriented ways Employee Empowerment Customer- Centric Culture Promoting a customer-oriented culture is posited as a means of exercising meta control over employee behavior during service delivery …Because the internalized company values and the norms concerning the desired behavior are guidelines for employees when making decisions Employee Empowerment Empowering management Style Managers and supervisors should relinquish some of their traditional authority, to allow employees the latitude to make decisions and assume greater responsibility Managers encourage employees to use their decision- making authority and to trust in their abilities, commitment, and judgment Employee Empowerment Empowering management Style Employees need guidance on how to use their increased authority (leadership development) Department heads must demonstrate management’s support and provide positive reinforcement Employee Empowerment Empowering management Style Recognize and praise employees who have demonstrated exemplary performance Informal, spontaneous, and immediate praise upon exemplary behavior, is likely to be more effective than extrinsic rewards provided by formal incentive systems Employee Empowerment Empowering management Style In the event of mistakes or incorrect decisions, managers should not reprimand or penalize employees but offer praise for having taken the initiative for guest satisfaction Employee of the month does not encompass the broader workforce Employee Empowerment Empowering management Style Recognize that mistakes should be perceived as learning opportunities Empowerment requires creating a “non- blame culture wherein well-intentioned mistakes are discussed in a supportive way” Employee Empowerment Empowering management Style Research indicates that management style is crucial in employee empowerment Managers willing to empower employees need to encourage them to make decisions on their own, trust them, and support the decisions they make Failure to align managers’ behavior with organizational empowerment programs is bound to create confusion among the employees and undermine the empowerment process Employee Empowerment Empowering management Style  The importance of empowering management style points again to the importance of meta control as an alternative form of control of empowered employees  Employee empowerment requires by definition that managers withhold from directly controlling employees during service delivery Employee Empowerment Summary In terms of front-line employee behaviors of upscale hotels located in Europe, two types of meta-control –are quite crucial: customer-oriented culture and management style Thus, if managers of luxury hotels want to attract high-paying customers, they need to ensure employee empowerment in their local enabling contexts or esprit-des-corps 3 2 Luxury Tourism and Hospitality Employees Bibliography Reference: Klidas, A., van den Berg, P.T. and Wilderom, C.P.M. (2007), "Managing employee empowerment in luxury hotels in Europe", International Journal of Service Industry Management, Vol. 18 No. 1, pp. 70-88. https://doi.org/10.1108/09564230710732902 Thank you!!