Prevailing Leadership Styles of Marriott Hotels International - Essay Example

Prevailing leadership styles of Marriott Hotels International Before getting to know the specific leadership styles of Marriott Hotels International,we need to be introduced to J.W. Bill Marriott, the CEO and Chairman of the group. The organizational culture and behavior has been deeply influenced by the values and principles of Bill Marriott and the Marriott family. (Marriott International - HR Practices, 2003) The essential business philosophy he follows is to promote a free and democratic set up. He received the Winston Churchill ward for “for his lifelong commitment to promoting democracy through progressive free market practices and fostering an open and transparent global business culture” (PR Newswire, 2009). According to Bill Marriott himself leadership is mainly based upon orientation towards results. He believes in motivating the people who work there by providing inspiration and letting them play and work together with a common set of objectives in mind. It is important to make them realize that their goal is same. (Marriott on the Move, August 2007; Anastassova and Purcell, 1995) Promoting diversity is an objective for the group. It is highly committed towards diversity. He has managed to take the company from a mere family business of $19 billion to a globally based organization. One of the basic leadership styles followed is the hands-on leadership. (Daugherty, Croft, Marquart, Balzar and Sheldon, n.d.) The leader or manager has to keep in touch with the employees and the clients to keep himself updated on the happenings. Under this leadership style the importance of the employees or ‘associates’ are realized and acknowledged. It is important to keep them happy and satisfied with their work. A “spirit to serve” culture in promoted within the organization. Community involvement is another style of leadership, which Marriott International follows. (Daugherty, Croft, Marquart, Balzar and Sheldon, n.d.) In order to lead in an industry it is important for the company to nurture community involvement programs. Bill Marriott has involved himself in “fundraising gala for Bridges-from school to work” (Marriott on the Move, June 2007). The Marriott Foundation runs this program for People with Disabilities. He idea is to help them secure meaningful employment after they pass out from their academic institutions. (Marriott on the Move, June 2007) The National Urban League, Naval Academy Endowment Trust, National Geographic Society, World Travel & Tourism Council are some of the other organizations where the company has engaged itself with. Following to the hands-on approach the structure is defined accordingly, that is, functional departmentalization and unity of command. (Daugherty, Croft, Marquart, Balzar and Sheldon, n.d.) In the later principle, a single person has to report to one manager only. This way the chairman of Marriott International has been able to promote progressive philosophies of business around the world through his organization (PR Newswire, 2009). Influence of situational variables on leadership styles Marriott along with other leaders of the 21st century has emphasized on encouraging and motivating the internal belief systems of the employees. A democratic or participative (Leadership Styles, 2009) approach of leadership is still followed even when the situations are altered. As power and influence practically lie now in the hands of informational technology rather than land and capital, therefore the leaders have to change their approach from command and control towards an information sharing approach – “The information explosion in the past two decades gave many more people access to knowledge that creates wealth.” (How online n.d.) Marriott has established ‘a power that connects, not one that commands’. (How online n.d.) The motivational approach of the hands on leadership trait still continues for Marriott. The 75 years old chairman of Marriott International, Bill Marriott has given up the traditional hierarchical structures and instead of visiting the individual hotels with his paper and pencil to take down information about his employees he now uses blogs to communicate with clients and employees. According to Marriott, “A year ago, I didn’t even know what a blog was…. Now I know this is where the action is if you want to talk to your customers directly-and hear back from them” (How online n.d.). He does not have to rely on his communication team. Rather he can now set up “an authentic and direct relationship and two-way dialogue with them” (How online n.d.). In order to increase connections and improve operations the company is going to divide its operations into four regional units where the regional presidents could decide on important issues with the help of given resources. This makes the operation faster and more efficient (Heath). Bill Marriott has gone though eight recessions in this business but in the current recession phase (financial crisis) there are lots of information available to people and investors are well aware of the business trends and consumer preferences. The managers at different branches are experienced and the culture is unique and distinguishable. The hands-on approach does not change even during recession and hence satisfaction of the employees and engagement with their affairs and activities are still the key approaches (Sorenson, 2009, p.4). The information and age and financial crisis situation has not affected the leadership styles much except that staying connected (open communication) in the key word now. Contribution of organizational culture The vision that drives Mr. Marriott’s policy for his organization is to make it a leader in the lodging industry of the world. He ensures this through –“ taking care of the guest, extensive operational knowledge, the development of a highly skilled and diverse workforce, and offering the best portfolio of lodging brands in the industry” (J.W. Marriott, Jr. 2009). The company enjoys a strong base of customers, consistent growth and profitability. The company recognizes the value of workforce or the ‘associates’ (employees) and follows ‘spirit to serve’ culture where the business philosophy is to take care of the employees so that they will take care of the guests (Rochelle and Halverstadt 2002). The company is committed to promoting a divers work culture and Fortune ranks it as one of the best places to work and top companies for minorities. The company has more than 128,000 employees, 2700 lodging properties in U.S. and 68 such properties in the rest of the world. The culture is driven by core values –“a commitment to continuous improvement, overcoming adversity, hard work and fun” (Avery, 172). The company follows renewal and constant improvement. Employee empowerment through open communication and a regular feedback system are derived from the hands-on leadership style (‘Details of MARRIOTT HOTELS INTERNATIONAL LTD’ 2009). The culture therefore is basically egalitarian in nature. The culture of the organization does not support any single individual gaining priority or projecting himself or herself differently. The idea is to base the operations on collaboration. The organization therefore does not offer attractive incentives to make the most skilled and talented persons stay (Avery, 173-4). Marriott has been ranked among one of the top 50 companies by Diversity Inc – “Marriotts commitment to global diversity is absolute. Our determination to provide opportunities for our associates and clientele is one of the main reasons people want to work and do business with us” (Daugherty, Croft, Marquart, Balzar, and Sheldon, n.d.). According to J.W. Marriott, the culture here ties the past present and future together. The idea is based on people serving people. And hence people are recognized as the biggest assets. It has developed a reputation for superior quality of customer service. This has been possible by following the goal prescribed by William Marriott – “Good food and good service at a fair price” (Marriott Culture, 2009). This is why when the tourism industry was affected by SARS (Severe Acute Respiratory Syndrome), people still flocked to the Marriott restaurants because they ‘felt safe easting there’ (Avery, 173) One needs to do whatever it necessary for satisfying the customer, attention should be paid towards every detail and innovative ways of meeting their requirements should be developed. To assure this, the employees are treated well and training and advancement opportunities are provided to all of them without discrimination (Marriott Culture, 2009). Leadership and cultural challenges Marriott Hotel International is a global concern with diversity as a prominent component among the workforce. Maintaining this diversity and yet satisfy each of them by taking care of their specific needs, thus sticking to the principle of ‘spirit to serve’ is a major issue of concern. This is specially so because of the low wages of the hotel employees compared to the other companies in the industry. (Marriott, and Brown, 1997; Marriott International - HR Practices, 2003) To maintain a steady workforce at this low wage is a challenge along with maintenance of the organizational culture as discussed above. The first issue is ‘hiring the right kind of people’ – “"The right kind of people" are friendly, hard working individuals with a genuine interest in helping others. Since our business demands high levels of hospitality and service, people with those qualities will be easier to manage - responding faster, learning quicker, and advancing further.” (‘THE MARRIOTT MANAGEMENT PHILOSOPHY’ n.d.) Without these characteristics it will not be possible to preserve the core principles followed by the company till date. Theft is an issue of concern and this can spoil the company’s reputation in an instant. Developing good habits is therefore an important issue. Therefore proper policies need to be taken to tackle this. However, at the same time communication with employees is essential before undertaking anything and it is important to make them feel that the main principle underlying every action taken is their concern for their employees (‘associates’). It is important for people to maintain recognizable standards of cleanliness and grooming. Presentation to the customers is very important. Recognition of one’s good performance even in a low profile job is very important. Also, any small detail missed out might affect the reputation of the company and hence every detail should be taken care of. The managers need to behave in result-oriented fashion, “continuously reevaluating and challenging what they and their people are doing” (‘THE MARRIOTT MANAGEMENT PHILOSOPHY’ n.d.). Holding the business in the midst of competition is a challenge and this can be ensured only via customer commitment. Being a global concern it is important to set a balance between the global standards and regional and local concerns – “Given the vast differences in language, culture, law, economies, and customs, Marriott is faced with unique challenges in each new market it enters” (Berlin and Pham, 2007, p.3). The task of a manager is basically to deliver good quality of product at a reasonable price. This will involve regulating working hours and reducing costs of operation. 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