Case Study of Leadership and Management Style in the Hospitality Industry Errika Bates Business Management 333, section A Ryan Butt November 27, 2010 Leadership and Management Style in the Hospitality Industry Introduction In discussing the paper about leadership and the managing hospitality businesses Central Florida Investment/Westgate Hotels and Resorts according to Williams, (2009-2010) states that a leader is concerned with doing the right thing and focuses on their vision, mission, goals, and objectives.
He defines leadership as the process of influencing others to achieve group or organizational goals (p. 252). Leadership and the success of the leadership will be compared to other hotels like the Omni Hotel and Resorts. Kouzes, and Posner (1995) states that leadership is defined as the art of mobilizing others to want to struggle for shared aspirations (p 30). First, the paper will be discussed about what the effective leadership does to make their company a success, what type of leaders works and how should leaders behave?
Secondly, in discussing the leadership in hotel management will be about what approaches and theories that were used to lead the company to their success? Thirdly, a discussion of evaluating the background of the hotels presentation and compare to the other hotels mention above. Lastly, the paper will be discussed about what are the best practices that identify Westgate Hotel with their other competition? History of Two Privately-Owned Companies Over the years many leaders have started their corporations at the bottom of not knowing that one day they would become a successful leader in the hospitality and tourism business.
In the past thirty years David Siegel Founder, President and CEO of Central Florida Investment and Westgate has became the largest privately held corporation. He created an empire (timeshare, real estate, construction, hotel and apartment management, travel services, telecommunications, citrus, insurance, transportation, retail, and much more) which was started as a real estate development in the garage of his family home. Siegel stresses that to be a leader in the hospitality industry you have to be constantly focusing the efforts on understanding the customer’s needs and exceeding their expectations.
Not only have Mr. Siegel created his vision for families to enjoy the luxury of his accommodations, he also invests in his employees. CFI has 30 resorts with 10,000 timeshare units that they operate and manage. On the other hand, Omni Hotel and Resorts was founded by the Dunfey family from New England as a hospitality company. The Dunfey Hotel Corporation purchased Omni International Hotels which was acquired by World International Holding, Ltd. and Wharf (Holding) Ltd, and then in the year of 1996 TFT Holdings, Inc. cquired Omni Hotels’ properties, franchise agreements, contracts and the name worldwide except for in Asia. Meanwhile, James D. Caldwell is the President of TFT Holdings, Inc and became the CEO of Omni Hotels. Upon becoming the CEO of Omni Hotels and Resorts Caldwell has been able to develop a new vision and is able to define a sensible luxury in the hotel marketplace. Omni is comprised of 45 luxury hotels and resorts throughout the United States, Canada, and Mexico.
What does Effective Leadership do to make their company a Success Leaders according to Williams (2009-2010) there are two types of behaviors that form the basis for leadership theory. One is initiating structure by structuring the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks and the second type of behavior is consideration in which the leader is friendly, approachable, supportive, and shows concern for employees. Initiating structure primarily affects subordinates job performance and consideration primarily affects subordinates job satisfaction.
The behaviors that both leaderships display in the hospitality industry Omni’s Hotel and Resorts and Westgate’s Resort is initiating structure and consideration. Omni have an executive board according to their uniqueness and passion in carrying out the teamwork for their successes in operation of the business. In comparison Central Florida Investments/ Westgate’s Resorts have their executive board according to their prior experiences in sales, accounting finance, managing projects and programs, and law. According to Williams, he asked the question, “What makes a good leader? (254), a good leader can be someone who is not afraid of following their vision and is able to share that vision with others to make the vision to come true. In an article by John Kotter (1990) mentions how management and leadership are different, but they complement one another. For example, the heart can’t function without the flow of blood cells through its veins and throughout the ventricles in other part of the body in order for a person to live. The heart never rest it keeps on pumping when everything else is resting mentally and physically.
On the other hand, leaders operate in almost the same fashion as the heart the work of a successful and effective leader work is never done, they continuously committed to improving their business, promoting change, challenging opportunities and expanding on growth. Kotter’s definition on the difference between management and leadership is management is about coping with complexity and leadership is about coping with change. Effective and successful leadership comes when corporations are actively searching for people with the potential to lead and with experiences that will help to develop the potential.
According to Kotter (1990) companies should be careful in selecting leaders that is strong in their leadership and combining them with weak management (4). In combining the strong leadership with weak management will cause either the weak to drain the strength out of the leader and may cause issues of greatness for the company, so strong leadership and strong management combined would be a better suit for the company because the both could lean and depend on one another. Approaches and Theories The approach that Westgate Resorts takes according to the webpage information, Siegel strategy