Managerial Effectiveness and its impact on organization - Dissertation Example

? Managerial Effectiveness and its impact on organization Introduction It has been well-established in management research that managers are frequently faced with various tasks, conflicting demands, and challenging expectations, which can all be barriers to managerial effectiveness. An extensive research has indicated the significant relationship between managerial behaviours and organizational outcomes, including employees’ job satisfactionp, productivity, performance, job involvement, intentions for voluntary turnover, and likelihood of burnout in the workplace (Andersson and Floren, 2008). Thus, managers should be highly capable of responding to various role expectations and behaviours for them to accomplish managerial effectiveness (MacMahon and Murphy, 1999). Change is a permanent feature of most of the workplaces. The occurrence of change has become a great challenge for companies in achieving long-term success and survival, thus, the need for highly capable and competent managers. To efficiently and effectively select managers who are competent enough to face organizational issues can be one of the most important measures that a company can take in response to changing environment. This may be carried out by continuously enhancing their skills and knowledge to keep up with the rapid pace of change (Martynov, 2010). Essentially, while organizations ensure that the most competent employees are recruited and trained, developmental efforts are constantly done to further enhance the effectiveness and overall quality of their managerial workforce. Managerial effectiveness has been described through various perspectives during the past years as many have attempted to generate a single definition for this concept. Background of the Study In the hotel industry, successful managers possess a wide range of skills together with specialized knowledge, all of which are directed towards accomplishing enterprise objectives. Various studies have reported that managers who work in the hotel industry should demonstrate an appropriate attitude and be aware of hospitality systems; completely understand service quality; be capable of evaluating the quality of work to continuously provide satisfactory services; be able to create a dynamic work environment; establish open and strong interpersonal communications with other organizational members; be capable of assessing situations and developing cost-effective strategies to increase profits; control ambiguous circumstances, and effectively manage operations (Soehanovic, Zougaj, Krizoman, and Glavica, 2000). Generally, hotel managers are expected to create favourable relationships with employees and guests while running productive operations and achieving organizational goals. The current study, therefore, focuses on the necessary skills and behaviours of managers in the hotel industry in order to accomplish managerial effectiveness and lead their businesses to success. The framework applied in the work of Chauhan, Dhar, and Pathak (2005), emphasizing managerial effectiveness through functional and personal effectiveness, will be used in the current research. Problem Statement The research will focus on studying the managers working in the hotel and the real estate industry to observe, analyze and make recommendations in relation to the most viable and suitable style of managing organizational concerns. In ever-changing work environment due to several internal and external factors, it is of utmost necessity that the managers be flexible and patient in dealing with the workforce and making sure that the organizational vision and objectives are successfully achieved. The Problem Statement that will be explored in the context of this study will be as follows: What styles and practices should the managers working in the Hotel and real estate industry adapt so that level of employees’ performance can be enhanced? Research Questions On the basis of above mentioned research topic some research questions will be formulated and worked upon. In the entire research, an attempt is made to address and answer these questions. In addition to this, these questions are core of the research as entire research revolves around trying to find out answers to the research questions only. As the research is related with management perspectives, employee performance and job satisfaction, the research questions are also based on these concepts. The research questions of this dissertation are as follows: What is the impact of managerial effectiveness on the entire organization? What are the skills and attributes that equip managers with required portfolio to deal with organizational concerns effectively? What are the commonly practiced managerial styles and behaviours in the hotel and real estate industry and their resultant effects on the organizational outcomes? Research Aims and Objectives On the basis of above mentioned research questions, aims and objectives of research are developed, which are likely to be effective in dealing with the research topic efficiently. These aims and objectives give a direction to the research and provide a dimension, which is of utmost importance when carrying out a research. On the basis of these aims and objectives of the research, it reaches to a result. Thus, they are very crucial part of the research and lead the way of the entire research. Acknowledging the vital role that managers play in organizations, the current study aims to address the following objectives: 1. To understand managerial effectiveness and its impact on the entire organization. 2. To identify the most important skills and attributes that managers should possess in order to cope with various organizational concerns. 3. To examine the current managerial practices and behaviours in the hotel industry and their effects on organizational outcomes. Significance of the Study The hotel industry is faced with a variety of challenges that need to be effectively addressed to ensure the satisfaction of customers, keeping capable employees, and long-term success of the businesses. The current study can help contribute to management literature by identifying effective managerial behaviours that can allow organizational leaders to identify the areas for improvement and potential upgrade. This may hopefully help in the improvement of their overall performance. For management educators, trainers and professionals of human resource development, the study can provide further insight for developing specialized interventions for managerial development within the specific context of the hospitality industry. Review of Related Literature Literature review forms a significant part of any research. It presents views of several other scholars on the topic of research. Here, these views are critically discussed and pros and cons of research study are attempted to explore. Thus, literature review is secondary source of gathering information and it does not contribute any original thought in the context of the research. However, it is an important part of the research because it makes significant contribution in backing the researcher’s point of view while providing current knowledge including substantive findings in terms of theoretical and methodological contribution. It reviews published information of a particular subject area. In context of this dissertation, the literature review includes information about managerial practices and trends. Literature review includes review of numerous journal articles, books, magazines and articles. In its simplest form, literature review is summary of all other sources along with synthesis of those sources. Thus, it gives a new interpretation to old sources. Therefore, literature review provides all relevant and pertinent information in context of the research topic and research questions. While exploring various aspects of any included source, researcher’s both negative and positive views are included. It provides a broad view to the entire research and enhances its scope. Therefore, it makes significant contribution to the entire research by strengthening the researcher’s point of view. Management Issues in the Hospitality Industry This section will provide an overview of managerial effectiveness and the managerial behaviours necessary for coping with organizational issues, as asserted in a wide range of management studies. Managerial issues in the hotel industry will also be discussed in order to set the theoretical context; furthermore, the framework used by Chauhan et al (2005) will also be included to further assess the effectiveness or output of managerial actions and decisions. Managers working for hotels and other related businesses under the hospitality industry are confronted with challenges that pose obstacles in successful operations in the rapidly changing present-day environment. For instance, need to cope with labour cost issues and any trend or occurrence that have a significant impact on labour expenses should be addressed by hospitality managers (Wang and Wang, 2009). It is part of their duties to decide about increases on minimum wage and consider its impact on employees’ behaviour. Multicultural issues are also significant nowadays and are demonstrated through a culturally diverse workforce. Franchises of hotels have become a common trend and the internationalization of businesses; this requires that managers are aware of cross-cultural management to avoid conflict and reinforce productivity and performance among employees of different cultural backgrounds. Operating issues such as labour shortages have also been noted as one of the most challenging priorities of the hospital industry (Ramanathan, 2011). A decreasing number of labour force members together with the problem of attracting and retaining competent professionals have become a global difficulty. Hence, the need for hospitality managers to develop creative and valuable strategies that can address the needs and expectations of employees while ensuring that organizational objectives are met as well. Cost reduction has also been an area of concern in the hospitality industry. Managers thus need to address cost issues and concerns while containing their expenses, thereby encouraging them to come up with effective solutions that will further support cost savings. Furthermore, increased competition among hotels has driven managers to thoroughly assess service quality, especially the value that is obtained by their guests. Marketing issues such as overlapping brands which have reduced the ability of customers to distinguish among brands have also occurred while the changing demands and expectations of customers have encouraged hotel managers to assess and reinforce various products and services to address such various requirements (Wu, Tsai, and Zhou, 2011). In addition, technological issues have made it more difficult for managers to cope with its usage and related costs. The growing complexity of hotel management in the hospitality industry can be demonstrated through the integration of various key components, as mentioned above, thereby suggesting the need for highly capable, knowledgeable, and competent managers to effectively address these issues. Managerial Effectiveness: An Overview The concept of managerial effectiveness has been differently characterized by various scholars and researchers owing to its complexity (Bao, 2009). Earlier studies such as that of Reddin (1974) described managerial effectiveness as the ability of managers to achieve the necessary results or output requirements of their managerial position. Moreover, according to Kirchoff (1977), managerial effectiveness is manifested in the accomplishment of multiple goals rather than the optimization of a single one. It can also pertain to the relationship between the manager’s achievement or performance and the organizational aims/objectives, or what he/ she is expected to do when given such position (Bennett and Langford, 1983). The qualities, character strengths, and intrinsic capabilities of individuals have also been regarded by Boyatzis (1982) as fundamental components of managerial effectiveness, while Drucker (1988) asserted that such effectiveness is the main factor that contributes to organizational success. Other studies conclude that an effective manager is an individual that efficiently utilizes all resources in order to improve the functioning of an organization; moreover, a manager’s adaptability to situations, especially amidst organizational change, plays an important role to their employees’ perceptions regarding their effectiveness in keeping up with their managerial role. Managers’ concern for both the situation and the involved employees or customers should also be evident. Specialized strategies for tackling a specific situation, which can be further developed through constant practice, can help managers perform well. Managerial responses to situations, especially ambiguous ones, should include positive affectivity, self-efficacy, confidence, acceptance and tolerance for uncertainties, conflict management, risk control, and openness to experience (Judge, Thoresen, Pucik, and Welbourne, 1999). Many have also agreed that effectiveness is mainly dependent upon the situation, the role and position as a manager, the task assigned, the involvement of the organization, and the influence of the surrounding environment. Managers that are able to appropriately behave and react towards the situation are perceived to be highly effective (Page, Wilson, Meyer, and Inkson, 2003). Theoretical Framework The current study will make use of the framework used in the research of Chauhan et al (2005) to assess managerial behaviours and how these can impact the organization. The factors identified in their instrument are generally categorized into personal effectiveness and functional effectiveness. Personal effectiveness is generally determined by the relationships that managers establish between themselves and their employees, and how such interactions influence the performance and productivity of employees. Issues such as the quality of the products or services delivered by their staff and foreseeing prospective problems and buffering their repercussions are subsumed under personal effectiveness. Second is functional effectiveness that primarily integrates technical aspects and procedural changes with managerial roles, and includes issues such as the modifications in the changes in equipment routines and the speed with which such changes are adopted to by the division; and novel ways of work organization, technology, and procedures; and keeping up with constant change related to one’s work. Through such assessment, the managers’ role and behaviours can be evaluated with regards to their productivity, adaptability, and flexibility. Hence, this can provide assistance in identifying managerial practices that can remarkably contribute to the improvement of performance and productivity among members and achievement of objectives. The review of related literature will generally focus on the management of the current hospitality industry as well as the evaluation of managerial behaviours in determining those that can generate effectiveness and enable their organizations to attain success. The effectiveness of managerial roles and behaviours play a vital role to the hospitality industry as it points out the strong and weak points of managers, thereby allowing organizations to continue with their efficient operations and enhance areas that are in need of improvement. This way, all parties involved in the business organization, its employees, and their customers, can all attain benefits from successful managerial practices. Methodology Selection of the best suitable research methodology for testing the problem statement developed for the research will be discussed in the following chapter. In this regards, the primary research method of questionnaire survey is being used to ensure an effective quantitative research in reference to the hypothesis of the research in order to make the research results authentic and reliable. Also, detailed analysis of ethical considerations and limitations of the research method will be carried out in this chapter. The importance of Research methodology in this research topic is that it will help in short-listing the most suitable methods that will help in analyzing information related to the research topic. Accurate information for the selected research topic is gathered with the help of this methodology. Important and relevant data can be collected, which later on would prove to be essential and of primary importance in solving the research problem in an effective manner and thus, is considered to be a crucial part of the dissertation. A sound and informative platform provided to the researcher assists in conducting the research and presenting the results in an effective manner. While carrying out the research, it is essential to formulate research methodology in the research as it helps in forming particular research aims and objectives that can be achieved easily in due course of time. Perfect research methodology is one that has a blueprint of the research and contains ample amount of information for the researcher to read, comprehend, and analyze. The information focuses on key areas, which are: what is to be done, how the research has to be carried out and the timeline in which the research will be completed. The research is carried out in a systematic way with adequate information in hand. It is primary for a research to be reliable and valid and that a strong and viable research methodology needs to be adhered to at all stages of the research. It is evident that the basic objective of research methodology is to help the researcher in providing a strong base to carry out the research timely and in the best possible manner. Collection of data and its further analysis through a comparison with available literature will help gain a deep insight on the topic. By studying the related literature, researcher will be able to obtain much more relevant data, and to evaluate it more thoroughly. By doing so, relevant conclusions and studies will be achieved. Research Approach A qualitative approach will be utilized for the study and data collected under this approach will be used for generating statistical representations that will enable the researcher to establish a more in-depth overview of the results and conduct a more thorough analysis of the data (Bryman, 2001). By observation, more personal touch will be made with the data. Research Design The research design will serve as a guide for data gathering, measurement, and analysis for the researcher to make the appropriate conclusions (Gall, Borg, and Gall, 1996). The current study will make use of the descriptive-correlation research design to measure the effectiveness of managerial behaviours in the hotel industry on organizational outcomes, particularly of employees. This research design will not allow the researcher to manipulate or influence, in any way, the occurrence that is being observed owing to its descriptive nature. The results will consequently be correlated in order to come up with an apt conclusion on the significant relationships between constructs (De Vaus, 2001). In the case of the present study, managerial behaviours shall be correlated with their perceived overall effectiveness as managers. The research design is based on the research questions and is a blueprint of the entire research methodology; hence, direct the way towards attainment of the aims and objectives of the research. In addition to this, research design deals with what data are relevant, what data to collect, what questions to study, and how to analyze the results. There are two types of research design - qualitative research design and quantitative research design. Research Strategy The qualitative approach to research is characterized by observing means of collecting data; it also requires researchers to extensively plan their data gathering methods, analysis of data, and measurement of variables prior to the actual research. Survey questions can provide certain advantages such as obtaining straightforward answers that will allow for a more comprehensive analysis of data and prevent confusion. The current study will make use of a the data available from various journals and a survey questionnaire that will be distributed to employees who work for hotel and real estate industries, while the results will be subjected to the generation of statistical graphs for a more thorough analysis. In addition, certain managers will be observed in their personal and functional behaviours. Piloting Pilot test is conducted before the circulation of actual of actual questionnaire among the employees. For this, the questionnaire is provide to only 5 or 6 employees in order to know that it is not vague and questions are easily understandable. Analysis Techniques The approach followed for analyzing the collected data is an important aspect of a research study due to the reason that the approach is helpful in accomplishing practical evidences related to the study and giving validated conclusion. The data analysis approach needs to be clarified and properly implemented for enhancing the accuracy and relevance of results. Improper approach may lead to inaccurate and irrelevant outcomes regarding the research study. Therefore, a well defined approach to data analysis is required to be followed in order to arrive at proper findings in the study. The tools used in order to analyze the data collected through survey in a proper and accurate manner are helpful in deriving meaningful conclusions from responses. Moreover, with the assistance of these tools, the analysis and description of the data becomes easier, which makes the approach of deriving inferences from the survey data. Data Collection Procedures The procedures for gathering data will begin with the collection of secondary data that is relevant to the study’s main topic. Academic sources that range from journal articles to online books can be used to obtain relevant data; keywords such as “managerial behaviours”, “managerial effectiveness” and “effects of managerial practices” can be used as keywords for online search engines. The questionnaire will be distributed employees with relatively similar sphere of work, in order to evaluate their managers. Purposive sampling procedure will be used for selecting the appropriate participants for the study. Consent forms will also be distributed to ensure that participants are willing to take part in the research. Participant Observer Journal Data In total, eight employees from two industries were asked to evaluate their managers. Six of the candidates worked at five-star hotels, while two other candidates are working in the real-estate industry. The researcher had an access to complete survey within those two given industries. The candidates are differentiated as much as possible by their gender, age and nationality, which may provide more valuable results. The questionnaire is designed in a way to make possible visualizing it on a scale and graph. The first five questions are assessing manager’s technique and the last question shows candidate’s opinion on how effective the management is (Appendix 1). As such, the first five questions’ aim is to see the manager’s technique in freedom that they give to employees, such as: promotion of ideas, time and task management, discipline, employee relations and responsibility given. The first five questions have accumulative points from one to four, for instance: answer “strongly disagree” in questions one, two and four are worth one point; and answer “strongly disagree” in question three and five is worth four points. Hence, the scale is presented (Appendix 2), on which manager is evaluated, with lower score meaning that the manager’s technique is a discipline and strict organization within working environment, while higher score suits managers who encourage independency in co-workers, expecting in return happy employees who are willing to give more than is expected. On the other hand, question six underlines how employees feel about their productivity under such management approaches. The results are presented on the final graph (Appendix 3). By choosing to evaluate real estate managers, the researcher differentiates the data. Even though real estate industry is different from Food and Beverage or Hotels industry, the touch with a client happens on almost the same level and frequency. Thus, comparison line can be drawn from the evaluation of management techniques and their effectiveness in real estate and hospitality industries. Data analysis Data Presentation and Analysis forms a very vital part of the entire research as foundation laid down in the literature review and methodology adopted in the research methodology section paves the way for findings. The collected data is analysed as well as presented in a well-articulated form in this section (Carpineto and Romano 2004). During this stage of the dissertation writing, the collected data is inspected, transformed and modelled so as to derive a meaningful result which supports the decision making. In the context of this dissertation, data is collected through the sample and sample is the employees of Hotel and Real Estate industry. By looking and investigating the data collected, the first two conclusions come clear, as: in hospitality industry managers tend to be stricter with employees, secondly both extremes of management techniques can be effective. By examining Appendix 3 closely, although results show that both management techniques extremes contribute well to the overall productivity of the employees; however, employees under managers who encourage more creativity and give more responsibilities, feel that their productivity is higher more commonly. In respect to the studies, MacMahon and Murphy’s (1999) investigation showed similar tendencies, where employees’ performance was restricted because of managers’ refusal on delegating with employees and following very strict hierarchy. At the same time, analysing the data results, we see that two candidates from real estate agency consider themselves more productive in correlation with amount of freedom and encouragement their manager is giving to them. Thus, according to Andersson and Floren, (2008), type of business and its location must be taken into account. Reflecting on researcher’s personal experience, hospitality industry must work fast and efficient, with fast response rate. On the other hand, industries such as real estate, can allow waiting for a day or even a week before problem solving. Therefore, comes up a logical question, whether it is better to give more responsibilities in hotels, thus minimizing the time spent on problem solving; while real estate managers can take more time to personally investigate the problem. Conclusion and Recommendations Conclusion This chapter concludes the research work. Also, this chapter will provide recommendations and limitations of the research. On the basis of above discussion, it can be concluded that concept the managerial style most suited varies in the context of the type if industry the organization is operating in. Even though, there are several other factors that affect the nature of managerial practices being followed by the managers, the scope of this research has been limited to the hotel and real estate industry and with the available and collected data, it can clearly be seen that the employee productivity directly depends on how effective the managers are, but at the same time there is no single managerial style that can be pinpointed as being equally effective in the two different industries i.e. hotel and real estate. Employees’ perception about level and the nature of independence, trust and fairness in an organization influence their performance, level of job satisfaction and trust towards management, which ultimately forms the basis for the organization performance and successful achievement of the goals and objectives. Employee perceptions are so powerful that they can alter one’s attitude for good and ill as numerous organizational conflicts have repeatedly shown that an organization is as good as its employees. The strength of an organization remains in how well organized is the management structure and how transparent is the management towards employees regarding any ongoing, past or upcoming issues within the organization and their willingness to practice a participative leadership style. Irrespective of the nature of industry, it can be concluded that the happier the employees are the more are the chances that the organization will become successful in the long run. It can be said about the best manager practices forms the foundation of any organization by making sure that the employees are made to feel as a part of the organization by delegating responsibilities, encouraging creativity and extending a balanced and reasonable amount of freedom to employees so that they do not feel threatened and rather take the onus of overall performance of the organization. However, too much of freedom can influence employees’ performance both negatively and positively and thus can have direct impact on organization’s success. If employees feel that management is concerned about their well being and trusts them, then their devotion and dedication to work honestly and ethically also increases. Since, the competition is increasing in industries at a rapid pace; there is a need that employees working in any industry have to be provided with best of the work environment so that they carry out their work with full enthusiasm and zeal. The motivational level among employees needs to be kept high so that they are able to achieve desired objectives of the company in the best possible manner. Factors that affect their motivational level should be given due consideration and factors, which hamper their motivation should be identified by the managers in a flexible way by ensuring that employees do not feel threatened. This will allow the management in knowing the ways through which motivation level and in turn the employees’ performance could be enhanced. Job satisfaction puts an employee in the happier space and thus increases his/ her productivity. It depends on various variables; however, in the context of this research managerial effectiveness is one of the major factors responsible for job satisfaction and attainment of goals and objectives. Furthermore, satisfaction emerges out of a job when employee feels that his/ her hard work gets recognized and gets applauded and appreciated by the management. In addition to this, the creative performance is also influenced by the most effective managers. Majority of the employees also responded to back this thought. Creativity is something which adds newness and originality of thoughts to any concept whether it is a product or any other art. In this context, it can be said that the management should emphasise on delegating the responsibilities and extending freedom because it can enhance the creative performance in favour of the organization. Recommendations Developing and managing a friendly environment of trust is crucial for managers, so as to encourage the employees to perform to their best of capabilities. Management should try to win the trust of employees by making them believe that they are a part of the team and have certain set of responsibilities that are important for the organization and that they are important and form the core of managerial decision making. Managers need to encourage creativity and allow freedom to employees so that they do not feel restricted and give their best to the organization. Participative leadership, where managers delegate jobs and responsibilities to their subordinates is expected to work well in any type of industry as long as a required level of discipline is maintained. In addition to this, results of the data analysis indicate that the relationship between the dimensions of the managerial practices and their resultant effect on employees’ perception regarding their own productivity is crucial for organizational success. Every dimension of managerial practice is somehow affecting the efficiency of the employees. If any of the dimension is not working in the favour of the employees then their motivation level deteriorates and hinders their performance, in addition to this, their creative performance also gets hurt because they no more like to contribute any more than just as what is expected out of them. 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