Management and Organizational Issues of Dehav Travel Company - Essay Example

Management and Organizational Issues of Dehav Travel Company Table of Contents Introduction 3 Leadership, Management and Organizational issues causing low growth 3 Problems with the Graduate Management Development Program 5 Problems with management development and employee turnover 6 Conclusion 8 Michelson, B., 2012. Leadership and Power Base Development: Using Power Effectively to Manage Diversity and Job-Related Interdependence in Complex Organizations 12 Introduction Management process and leadership followed by the employees helps the organization to run successfully. It is the management of the organization that takes the decision that is favourable to the performance of the organization (Gold and Arvind Malhotra, 2001; CIPD, 2004). The functioning of the organization also depends on the team leaders as well as the managers who are responsible for managing the work carried out by the teams (Gold and Arvind Malhotra, 2001). The report would help the researcher to carry out a detailed analysis on the leadership and the management issues that leads to a low growth rate of the organization. The paper also discusses the issue related to the graduate management development program. There are other issues related to the management of the organization that has been discussed in the paper, that also involves organizational culture and ethics management within the organization (CIPD, 2013). There are employee turnovers within Dehav Travel starting from the junior to senior managers and the factors that leads to employee turnover. The researcher through this paper aims to carry out a detailed analysis on the leadership management strategy followed by the organizations and the challenges that the company faces. The research also offers the researcher the scope to understand the effectiveness of the factors responsible for the leadership management in Dehav Travel. Leadership, Management and Organizational issues causing low growth Leadership deals with the ability of the managers to enhance the performance of the employees by motivating them and providing them with the training that is needed. There are various styles of the leadership followed within the organization and it depends on the personality of the individuals who wishes to be team leaders (Zur Muehlen, 2004; Fullan, 2002). Research says that the leader should adapt themselves to the new trends in order to make the team members perform well in order to make them compete with the rivals in the organization (Gaba, 2000). However, there are differences among the leadership and management process followed by the organization. The management process within Dehav Travel involves planning and accounting techniques and finally, establishing the detailed steps for achieving the goals of the organization. This also involves allocating the resources necessary to implement the project successfully (Guthrie, 2001). The leadership process involves a vision set by the managers for the organization and the strategies undertaken by the managers to achieve the vision. The next step under the management process of Dehav Travel involves organizing the process according to the plan and also dealing with the problems that arise on the path of its implementation (Mitchell, Holtom and Lee, 2001; Gill, 2002). However, the leadership process involves that the team leaders communicate with the team members in order to understand their views and suggest a solution to them in case of the controversies among the employees. The management process is also concerned with the execution of the strategies that has been planned by the managers in order to achieve the goals of the organization, whereas, the leaders play a key role in motivating the employees to perform well and raising their productivity. However, the factors that lead to the low growth rate of the Dehav Travel can be analysed with the help of the Porter’s Five Forces Model (Carmeli, 2003). The company is known to offer hotels and resorts across Europe, UK and the regional airports like Manchester, Glasgow, Edinburg and New Castle. By using the Porter’s five forces model, the analysis can be carried out based on the Porter’s five forces stating the supplier as well as the buyer power of the company, competitive rivalry, threat of substitution and the threat of new entrants in the market (Mitchell, et al., 2001). The company was capable of serving a huge customer base with their hotel requirement, but after the global financial crisis of 2008, there was a slowdown in the growth rate of the company (Cross and Baird, 2000). However, the business was under threat as there was a possibility of the new entrants entering the market and serving the customers at cheap rates (Gold, Thorpe and Mumford, 2010). However, Dehav Travel lost its power after the global financial crisis and it was the decision of the shareholders and directors to sell the company at the beginning of 2014 (Kuipers, et al., 2014). However, the company plans to grow in the next 5 years to £60 million with a part of the revenue coming from outside the market (Kuipers, et al., 2014). The company is expected to set up a good reputation in the international market with the high quality resorts provided to them. The organizational culture management within the company is also an important factor that leads to a low growth rate of the company, as the Hall’s Theory states that two types of culture can be maintained within an organization (Abbasi and Hollman, 2000). Nonetheless, Dehav Travel follows a high context culture by communicating with the customers and establishing a customer relationship management within the organization. Problems with the Graduate Management Development Program Dehav Travel believes in hiring the young people from the institution who are skilled enough to run their business. The company believes in hiring the fresher because, according to the managers, the fresher are highly enthusiastic and they can work efficiently after following the training process (Boyatzis, Stubbs and Taylor, 2002). The graduate management development program is used by the company to ensure that there is a steady flow of the potential future managers who are ready to take up the challenging roles within the organization (Hamlin, 2004). It also measures the capability of the fresh graduates to become potential team leaders and handle various teams. The management program is conducted by Dehav Travel that involves training of the interested students by well experienced managers so as to make them capable of handling adverse situations (Boyatzis and Saatcioglu, 2008). The management program also ensures the personality development traits that are often taken into consideration by the HR managers during the recruitment process. The individual with the best personality traits suitable for being a team leader is selected by the company. The program has the criteria that the candidate should have a minimum work experience as well as should have interest in business and management (Brownell and Jameson, 2004; Hind, Wilson and Lenssen, 2009; Institute of Employment Studies (IES), 2012). However, the leadership quality within an individual can be judged using various theories such as the trait theory, behavioural theory and the leadership styles are of two types namely the transformational leadership as well as the transactional leadership. The leaders in Dehav Travel try to be transactional leaders who prefer to reward the team members for their good performance. This type of motivational strategy helps the employees to grow their self confidence. The training program offered by Dehav Travel helps the employees to join at a higher rank and earn a high salary. The management program also offers an opportunity to the candidates to communicate with the senior managers and develop an understanding about the management process (Friga, Bettis and Sullivan, 2003). Problems with management development and employee turnover The rate of employee turnover depends on the performance management techniques adopted by the company. The managers of the company apply various strategies in order to bring in the change that would reduce the employee turnover of the organization. The turnover is based on various characteristics of the workers, firms and the market in which the company is operating (Datar, Garvin and Cullen, 2011). In case the workers are skilled enough to follow the training given to them by the managers, they would perform well within the organization and they would find interest in their occupation. However, the unskilled labour force needs to be trained a great deal and the company has to spend a lot of money in training the workers. In case of Dehav Travel, the company has to train its customers with the relationship management process so that the employees attract customers to avail the services offered by the company and the process would in turn help the organization to expand its business (Bonner, Ruekert and Walker, 2002). The leadership traits of the managers of Dehav Travel can be analysed using the trait theory that play a key role in training the employees efficiently such that their performance contributes to the organizational success factors (Lopez, 2014). The personality traits of the managers reflect their efficiency in managing things. It has been studied that Dehav Travel also tries to manage the employee turnover by measuring the percentage of employees leaving the organization every year. It is also necessary for the managers to determine the probable reasons for the employee turnover and work in the field of performance management of the employees that can help the organization to control the employee turnover. However, the turnover can be of the junior employees as well as the managers. In case the junior employees leave the organization, they can be replaced by hiring new employees. It is also the responsibility of the Human Resource managers of the company to hire employees who are loyal to the organization. Nonetheless, if the senior employees leave the organization, it causes a problem related to the replacement of the senior member according to the organizational needs (Boyatzis and Saatcioglu, 2008). The organization needs well-experienced professionals in order to replace the managers who are leaving the organization. The responsibility of the HR managers increases in this case because, they need to hire the employees in place of the senior managers and it is the senior managers who are responsible for taking important decisions for the organization (Boyatzis and Saatcioglu, 2008; Michelson, 2012). Further, if a change occurs in the management process, it has a great impact on the employees as they need to get accustomed to the new decision making process of the organization. The decisions taken by the new management can be in favour of the employee or against the employees in the organization (Boyatzis and Saatcioglu, 2008; Parry and Tyson, 2008). However, the managers are expected to communicate the new strategies taken by them to the team leaders and the team leaders, who would in turn communicate to the team members. In absence of a good organizational culture, conflicts are expected to arise that in turn contributes to the poor performance of the organization (Boyatzis and Saatcioglu, 2008; Watkins, 2012). Conclusion The study on leadership and management by Dehav Travel has covered the three main areas such as the leadership, management and organizational issue. The study suggests that the company also conducts the graduate management training program because it believes that the fresh graduates are talented as well as enthusiastic to take up challenges. Further, they have the capability to follow the training program and perform their job accordingly. The third issue that the paper considers is that of the problems related to the management of the organization as well as the employee turnover that takes place due to the inefficient management process. It further depends on the organizational culture that whether the employees find interest in working with the organization or not. Healthy work culture motivates the employees to serve the organization with full dedication. Employee performance in turn affects the reputation of Dehav Travel in the international market. However, the paper has also discussed the barriers that the company faces in bringing a change within the organization that involves conflicts within the employees and the management process regarding the new rules and regulations. The growth rate of Dehav Travel also slowed down after the global financial crisis of 2008, but the company could overcome the challenges with its strong management policies. Reference List .Journal of Leadership and Organisation Development. [pdf] Available at: [Accessed 10 June 2015]. Abbasi, S. M. and Hollman, K. W., 2000. Turnover: The real bottom line. Public Personnel Management, 29(3), pp. 333-342. Bonner, J. M., Ruekert, R. W., and Walker, O. C. 2002. 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