TABLE OF CONTENTS
1. Declaration 1
2. Acknowledgement 2
3. Summary 4
4. Introduction 5
5. Findings 7
5.1. Teamwork 7
5.1.1. Creative Innovation 8
5.1.2. Cultural aspects 10
5.2. Motivation 11
6. Discussion 14
6.1. Teamwork 14
6.2. Motivation 15
7. Conclusion 18
7.1. Teamwork 18
7.2. Motivation 18
8. References 20
9. Annexure 21
9.1. Starbucks Corporation: Case Study in Motivation and Teamwork 22
9.2. Diagram of Maslows Needes Pyramid…………………………………………………………………31
9.3. The Saint Paul Hotel 31
This report is made with the intention of displaying how motivation and teamwork are two pivotal factors ensuring success in hospitality. Literature finding coupled with case studies like that of Starbucks and Saint Pauls hotel will be used to illustrate the above statement. Using GAP analysis, the difference in theory and practical working of the company will be seen.
The evolution of economies worldwide showcases the fact that the hospitality sector is expanding the fastest. Contrary to this, the quality of service and product in this sector is declining. The success of the hospitality sector depends on various aspects. These aspects remain constant under any given circumstances. The application of these factors in an efficient and accurate manner is what dictates the success of the establishment.
Due to a rapid rise in globalisation in the recent past, competitiveness has increased tremendously. This is even more so, between companies marketing the same product or service, as in the case of the hospitality industry. Researchers have found that it costs for more to attract new customers than to retain current customers (Oliver, 1999; Rosenberg & Czepiel, 1983) Motivation and teamwork are two of these integral factors. Here, there is a constant connection felt by the patrons and the employees. This forms a potential situation where the glass can be viewed as half full or half empty. Optimists believe that this medium of connection is what enables companies to initiate and hopefully sustain a steady relationship. The initiation can be created. It is the sustainment that poses the potential problems. The entire burden of this endeavour lies in the hands of the employees. Motivation of the employees is one of the key factors to ensure augmented success. Rensis Likert, one of the pioneers in the field of motivation theory, and after which the Likert Scale is named, said “The greater the loyalty of a group toward the group, the greater is the motivation among the members to achieve the goals of the group, and the greater the probability that the group will achieve its goals.”
The hospitality sector, as mentioned above, attains success based on various factors, like motivation. One of the other key factors that assist this attribute is teamwork. Any unit in the hospitality sector relies on their employees working in a single, cohesive unit. Hoegl & Gemuenden (2001) observed that the definition of teamwork is a social system including more than three people in an organization or context. These members identify others as one member of the team and they have the same goal. Robbins (2001) stated that the factors influencing teamwork are relation of leadership, roles, principles, status, size, composition and the power of agglomerate. This is true in case of the hospitality industry as well. Being dependent primarily on the abilities and capabilities of its employees, teamwork forms an important aspect.
Different hospitality units focus on teamwork in different ways. None the less, the motive is the same, which is to improve results for better customer satisfaction and better revenue. Few organizations, however, are totally pleased with the results their team improvement efforts produce. If a team’s improvement efforts are not living up to the organization’s expectations, there are self-diagnosing check points that may illustrate why. Successful team building, that creates effective, focused work teams, must lay emphasis on the following.
• Clear expectations
• Creative innovation
• Cultural change
In this report, focus will be given to the creative innovation and cultural aspects of teamwork.
In today’s world, the level of competition cannot be faced with primitive methods. To give the guest something that is not being offered by another organization is the prime motive. This is not a responsibility that can be successfully carried out by any one individual. In the hospitality sector, every member of each organization may have creative input that may not be replicated.
Since group processes have been said to be an important predictor of innovative performance (West and Anderson, 1996) and creativity (Amabile et al., 1996), there has been an expanding focus in research on elaborating factors within teams that facilitate team and innovative performance. A comprehensive model is offered by Hoegl and Gemuenden (2001) as well as Hoegl et al. (2004) who link the success of innovation projects to team performance and holistic success.
For successful team performance communication, its frequency, degree of formalization, structure, and openness is important. Communication contributes to team performance (Hoegl and Gemuenden, 2001) as well as to the achievement of exceptional outcome (Sethi and Nicholson, 2001). Coordination, the synchronization and harmonization of individual tasks, is fostered by aligned goals with clear sub goals as well as defined roles which do not overlap each other (Hoegl and Gemuenden, 2001). Shared objectives and vision are linked to innovativeness (Anderson and West, 1996; Pearce and Ensley, 2004). Also, including all team members in the decision making process without having individuals on a team, who dominate discussions (balance of team member contributions), has been found to be links positively to innovation (Anderson and West, 1996; De Dreu and West, 2001; Hoegl and Gemuenden, 2001; West and Anderson, 1996). Mutual support refers to intensive collaboration and cooperation between team members (Hoegl and Gemuenden, 2001). Collaboration is also one of the dimensions of Sethi and Nicholson’s (2001) charged behaviour that is linked to innovation; trust and support is found one factor that enhances creativity (Amabile et al., 1996). Also, the finding that an equally high level of effort contributes to team work quality (Hoegl and Gemuenden, 2001) is in line with Pearce and Ensley’s (2004) argumentation that social loafing is affecting innovation negatively. Feeling committed to the work of the group supports individual creativity (Amabile et al., 1996). Finally cohesion has been a topic of several studies around creativity and innovation (Craig and Kelly, 1999; Gully et al., 1995). It covers interpersonal attraction of team members, commitment to the team’s task and team spirit.
Within cultural concepts we concentrate on two different aspects. Hall and Hall (1990) identified three dimensions of culture though interviewing practitioners who are interacting with other cultures. In their communication model they suggest the following dimensions to differ between cultures:
• Various degrees of tabulating information via language.
• A different need for areal space.
• Dissimilarity in the applicability of time and working styles (monochronic/polychronic).
Hofstede (1983) instead delivers less visible concepts than Hall and Hall. The cultural concept of Hofstede (1983) identified four cultural dimensions which refer to values as a guiding idea.
• Power distance, the acceptance of differences in hierarchical status.
• Uncertainty avoidance, an individual’s motivation to keep away from uncertainties and changes.
• Individualism/collectivism, the importance of independence from one’s company, and own activity.
• Masculinity/femininity, the importance of income, recognition and advancement as well as the degree of role allocation between men and women.
• Confucian dynamism or the long term orientation of a country was added to the concept (Hofstede and Hofstede, 2005).
Throughout the term “multi-cultural team” it is seen that the considered teams have expansive cultural values and communication styles due to their affiliations to different nationalities and socialization in diverse cultural groundings. Through this approach, the fact that cultural values can differ within one country (Kirkman and Shapiro, 2005) and that only concentrating on a diverse national background ignores potential changes of personal behaviours which are culture related are take into account.
Motivation is a key factor that influences the daily operations of any hospitality unit. It is the key factor which influences an employee to go above and beyond the call of duty. The pioneering hospitality organizations in the world believe that in some way or the other, employee motivation plays an integral role in their success. “There is one key to profitability and stability during either a boom or bust economy: employee morale.” —Herb Kelleher, founder of Southwest Airlines.
There are various factors by which motivation can be attained. Many of these factors are based on models. Some of these models are:-
• Maslow’s Hierarchy of Needs. -Dr. Abraham Maslow.
• ERG Theory of Motivation. –Clayton P. Alderfer.
• ARCS Model of Motivation. – John Keller.
• Motivational Theory. -Frederick Herzberg.
In this report, Maslow’s theory will be used. This is done as they have some overlapping views, which will assist a simpler understanding.
According to Maslow, there are general types of needs (physiological, survival, safety, love, and esteem) that must be satisfied before a person can act unselfishly. He called these needs “deficiency needs.” As long as we are motivated to satisfy these cravings, we are moving towards growth, toward self-actualization. Satisfying needs is healthy, while preventing gratification makes us sick or act evilly.
As a result, for adequate workplace motivation, it is important that leadership understands the exertive needs active for individual employee motivation. Maslow’s model indicates that basic, minor needs like safety and physiological requirements have to be satisfied in order to pursue higher-level motivators along the lines of self-fulfilment. ‘Maslow’s Needs Pyramid’ or ‘Maslow’s Needs Triangle’, shows how after a need is satisfied it stops acting as a motivator and the next need one rank higher starts to motivate(Diagram present in Annexure). To summarise the above theory, a manager’s goal is to ensure that his employees have a reason to be motivated at all times.
The needs that will motivate employees, changes with time. To recognise these needs is the job of the manager. Given below are the various needs of the employees.
• Physiological Motivation: Provide ample breaks for lunch and recuperation and pay salaries that allow workers to buy life’s essentials.
• Safety Needs: Provide a working environment which is safe, relative job security, and freedom from threats.
• Social Needs: Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics.
• Esteem Motivators: Recognize achievements, assign important projects, and provide status to make employees feel valued and appreciated.
• Self-Actualization: Offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.
There are a few limitations present in Maslov’s theories. In some cultures, social needs are higher on the priority list than others. Maslow’s hierarchy fails to explain the “starving artist” scenario, in which the aesthetic neglects their physical needs to pursuit of aesthetic or spiritual goals. Additionally, little evidence suggests that people satisfy exclusively one motivating need at a time, other than situations where needs conflict.
Starbucks is an internationally recognized hospitality chain. A case study based on this organization will be taken into consideration. This establishment is known for its ability to sustain its customers and have a relatively low turn-over rate. Here, team work is given monumental importance as they believe it to be the reason for their holistic success. The managers of the establishment refer to their peers and the people working under them as “partners”. By doing so, the corporate gap of title is bridged. The managers of the unit work aside the employees at the front line of service. This shows no discrimination in work, leading to self respecting employees who love their job. This is transmitted via the employees to the customers, creating satisfaction and loyalty. Simultaneously, it creates an open environment that contributes greatly to expression of innovative thinking. Starbucks has invested in creating a place where its employees can rest and enjoy. This also forms a platform for creative inputs which are valued. As has been mentioned before, creativity of a person may never be replicated.
The cultural barrier is present in every organization. How it is dealt with, is subject to change. Starbucks’ managers have authority to reschedule work timings of individuals. This is done in accordance with an employee’s personal or religious needs. Furthermore, emphasis is given to understanding an employee’s needs and problems. By following such exercises, the cultural barrier is overcome. At a particular shift, there are 6-8 employees working. As the unit of people working together is relatively small, people of various religious and ethnic backgrounds converse and know each other well. This again is another manner in which the cultural barrier is overcome at Starbucks.
The Saint Paul Hotel is a four star hotel located in downtown St. Paul, Minnesota, USA. This will be the case study for motivation that will be used. The hotel believes, like many others worldwide, that employee motivation is an important aspect attributing to the company’s success. The Saint Paul Hotel will provide training both for job skills and safety. Standards-based training occurs weekly in each department. Managers and employees will spend about 15 minutes to talk about their ideas. It is an opportunity to fine-tune or learn new skills. This training provides an opportunity for communication within the departments. For the employees to have their ideas heard and processed (if valuable) creates a sense of belonging and motivates them, as they have instilled in them the fact that they are valuable. Given below is a list of benefits given to the employees with the intention of motivating its employees.
• Uniforms: provided and maintained on the premises.
• One meal a day in employee dining room at no cost.
• Health, dental and life insurance.
• Employees of the month/year Manager of the quarter/year.
• Paid time off program – used for sick pay, day off, vacation.
• Departmental incentives for safety/revenue generation/expense savings.
• Higher pay than the other hotels: Salary increases will occur on a schedule for Union employees, or annually for non- union employees.
• The Saint Paul Hotel will reward longevity with a watch for five years and a diamond pin for ten years. That diamond pin then has a new jewel set in it at each subsequent five year interval. After twenty years with the Hotel, a pin would have a diamond, a ruby and a sapphire.
• The Saint Paul Hotel prefers to promote from within whenever possible. However, this can be frustrating because often employees assume they are entitled to promotion based on seniority. Sometimes attendance/performance issues preclude allowing transfers or promotions. Sometimes lack of required experience interferes. While the Saint Paul Hotel trains many individuals in their jobs, even if they have had no experience, certain jobs (sales, accounting, etc.) require a certain level of expertise that must be grown into, as opposed to handed over (Personnel Communication, October 25, 2001).
As said by Maslov (1943), there are various needs, that when fulfilled, create a motivated spirit and environment to work in. Saint Paul’s hotel is providing their employees with various benefits and perks. It can be seen that basic psychological needs are being fulfilled. By doing so, the basic level of motivation is instilled. Safety needs, being the second level of Mallow’s Hierarchy of needs, is also being given, in the form of health, dental and life insurance. By doing so, it is visible that the hotel cares about its employees and their well being. Gina Soucheray, training and employee development manager at the Saint Paul Hotel, stated that “right now we continue to look at how to get better support in the transportation process. However, nowadays we would like every employee to take the bus. We are looking at providing a better support structure for people who have to 29 take the bus or people who have to drive. Moreover, we are looking for the opportunity for childcare for both union and non-union employees. That’s two key things right now transportation and childcare. We have a lot of employees who have problems with a good childcare system and we have a candidate who has come down to fill out memo about not enough parking space what we should do, and who’s going to pay for parking” (Personnel Communication, October 25, 2001). This is the extent to which Saint Pauls hotel engages itself in employee satisfaction, which is grounds for motivation.
Teamwork is a wide field of study. In this report, two aspects of teamwork have been dealt with. These aspects are creative innovation and cultural aspects. A GAP analysis has been shown by applying views of established authors, like Hoegl and Gemuenden, Hofstede and Kirkman and Shapiro, to a case study of Starbucks.
The importances of the two aspects shown are explained in this report. It is shown how Starbucks, being a multi-national company, promotes creative innovation from its employees. It also focuses on overcoming cultural backgrounds of individuals. Two people hailing from different backgrounds are evident not to have everything in common. The aim is to understand the other individual’s culture and needs, and to compromise. By doing so, the employees and managers of Starbucks are able to work harmoniously.
Today, there is an irrefutable connection between employee satisfaction and financial performance. This is based on numerous studies that support the analogue. Therefore, companies have a rare opportunity to emolument competitive leverage and contrasting by domesticate their greatest asset which is their employees. Employees are the most critical point of differentiation for any company in today’s business environment. The correlations are evident. Satisfied employees transfer their joy to attain satisfied customers, who in turn build long-term relationships, and spend more money. This presents a finding for American corporations, most of which do not utilize their employee potential to the max. A major survey conducted by the Public Agenda Forum indicates that fewer than 25 percent of American workers are working to their full potential. And 75 percent said they could be significantly more effective in their jobs than they are. Plus, 60 percent believe they don’t work as hard as they did in the past.
These are not the characteristics of satisfied, engaged and happy employees. With a closer analysis of the different models mentioned in this report, and practical implication of those guidelines, would open doors to financial growth and holistic betterment of the industry.
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