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MANAGEMENT AND LEADERSHIP ACROSS CULTURE

CONFEDERATION OF TOURISM AND HOSPITALITY

POSTGARDUATE DIPLOMA ASSIGNMENT

Submitted by

: Adnan ul Haq

TABLE OF CONTENTS Page 1.0 Introduction 1.1 Company profile 1.2 Leadership 1.3 Motivation 1.4 Cultural diversity 2.0 Style of Leadership 2.1 Autocratic Leadership 2.2 Bureaucratic Leadership 2.3 Democratic leadership or Participative leadership 2.4 Task oriented leadership 2.5 Transactional leadership 2.6 Transformational leadership 3. Leadership style at Nandos: 3.1 Participative Leadership Style 3.2 Primary research 4.0 Management vs. Leadership 4.1Leadership traits and style 5.0 Motivational theory related to organisation 5.1 Situational leadership theory 6.0 Recommendations and Conclusion Bibliography 15 16 13 10 8 6 2

Management and leadership across culture: 1.0 Introduction: Leadership and management that exist inside every organisation is the central focus of this report. These two together has cultural values of high significance and norms are diversified. The essentials and importance of management along with leadership can be implicit because various types of organisations in different sectors are capitalizing on the market share due to its leadership and management strategies. The efforts of leader play a vital role in ensuring the positive relationship among the management and its subordinates. Furthermore, the leaders role has its importance too because of the fact that the abilities of employees improve to best under the assistance of leader. The role of leader is essential in obtaining the ultimate goal of an organisation through the involvement of employees (Parker, 2003). For the purpose of survival and creating a strong mark of presence in its operating dynamics, the need of great leader is more felt by the organisations. Some of sectors revealed that leaders with high potential are more in demand along with the sectors like social, industrial, political and technological sectors are some of the places where there is high demand for great leaders. In all sort of organisations, a process of continuity keep driving leaders to motivate employees in a right direction. Mission of organisation can be accomplished by the motivation of workers through leaders therefore the significance of leader is more. It is of great importance for all types of organisations to have a leader who is more effective one (Adair, 2005). For example, a force to drive the Microsoft in to mega success in the global market is its leader Bill Gates. The name of Bill Gate as a leader is symbolized with the success of Microsoft organisation. 1.1Company profile: For this report, the chosen organisation is Nandos. It is known as one of the leaders in the casual dining restaurant operating currently in the hospitality industry of United Kingdom. I work for the same restaurant therefore my personal observation and interaction with the management will help me in elaborating the importance of cultural diversification and leaders effective and efficient role in the success of a firm. Nandos is one of the well known brand in the casual dining therefore it has a fine reputation therefore ample and satisfactory information about leadership, management, and cultural diversity can be availed which is highly important for this report.

Since Nandos has a strong history of being a recognised and international brand in the hospitality industry therefore it is regarded as one of the fast growing restaurant with unique core competencies. Undoubtedly, it is brand with international reputation that provides food of finest quality not only in its originated country South Africa but across the globe in approximately thirty countries. It has more approximately more than 100 of outlets in just three years between Aberdeen to Plymouth and overall it has more than 1200 outlets all over the UK which add to its profile to be quickly growing stylish and global thinker in todays hospitality sector (nandos.co.uk, 2010). The Survey report of 2010 published at internet, (detamonitor.com, 2010) explains that it employees more than 6500 workers and its main focus is on the provision of good casual dining services. Since it engages a wide range of workers therefore it is ideal case study to explain the cultural diversity. According to the annual report of Nandos, (2010), per week, on the basis of mean there are approximately 800 customers are attended by 6500 staff members which shows the interaction with various types of culture at workplace (caterersearch.com, 2010). It is an organisation with great international reputation under the great leadership of Robby Enthoven who had taken it from immense difficulties to the better place organisation earning over 50m a year, making it 26th in the world ranking (caterersearch.com, 2010). There were times when Nandos was under the immense pressure to survive but today it is moving steadily due to the efficient and effective leadership of its top management. 1.2 Leadership definition: Maxwell (1993) defines leadership as a continuous method to lead, direct and influence in appropriate manner or in other words, workers being handled adequately by given right commands. Hence, it can be wisely stated that leadership is a process of guiding the individual to accomplish particular task. The leadership as a terminology is explained by various researchers, Bass (1990) and Howell and Costley (2001) proposed that leadership is a quality through which various different types of individuals are united to achieve the particular objective. 1.3 Motivation: The force which drives an individual to act or react in special desired way or inner stimuli that push him or her to accomplish the set goal is considered as motivation. This refers that motivation arise inside a person naturally to behave in particular manner but external factors

cannot be discarded that motivates person such as rewards, people, mentoring, coaching, personalities. To create a better understanding about motivation, Fredrick Herzbergs theory will be evaluated critically that reveals that two distinguish factors that are responsible for certain behaviour is hygiene and motivational factors respectively. Responsibilities, growth opportunities, recognition and achievements tend to have impact on the performances at work setting and they are included in motivational factors. Organisations can attain its targets through people (Northouse, 2010). These days, in huge and rapidly growing organisations, the great leaders role and motivation is very the motivation of great leaders is quite visible in obvious and noticeable (Orloff, 2008). For example, a great leader Richard Branson has an immense role Virgin groups success. The workers are influenced by commitment and positive attitude of Branson to accomplish organisational ultimate goal. 1.4 Cultural diversity: The huge diversified workforce working at organisation adds cultural diversification and a new organisational culture are formed at work setting. (Mindtools, 1996-2011) Workers do have strong impact on the workplace. The diversification is important to conduct job as a team because individual are rich in culture due to their distinguish backgrounds, religions, casts, customs, experiences, and countries. In UK, the huge impact of globalisation is noticed as the multicultural workforce is employed that encourages having cross cultural leadership in organisations. To understand the behaviour of customers (internal and external customers) a leader should be able to adjust well with the values and norms expressed by prevailing culture in a prompt manner. According to (Mindtools, 1996-2011); (Chokkar.J.S, 2008) diversification in culture is shaping up a connection builder among individuals all over the globe and leaders are closely connected with organisations to make it a success. This research report focuses mainly on the vital aspects like leadership and motivation that prevails inside firms and subject to diversified cultural norms and values. Nandos strongly give importance to needs of customers and consider the internal customers as a significant contributor to firm and therefore, take good care of it so that their diversified skills assist organization to be more effective and efficient in operations. Nandos Park Royal outlet in every possible way has demonstrated its genuine assurance towards its workers by providing training and development, compensation and rewards to individuals on the equal opportunities basis (Mail&Guardian online, 2009).

In order to avoid the biasness and discrimination and manage the workforce diversity, the training methods to all individuals are given by educating them in appropriate manner about the social surroundings. This indicates that prime focus is not just the maximization of a profit but the betterment of employees motivation level and adequate management of diversified culture. The impact of European Union and globalization is immense especially when it is recruiting workers and it is evident that vast majority of foreign staff is employed so that service quality to diversified customers is provided and employee turnover is also reduced (Mail&Guardian, 2009). Therefore, to ensure the overall improvement in the standards of organization and excellence in the services provided to customer, the team is motivated to attain these objectives through the influences of leaders (Northouse, 2010). Through its leaders, Nandos provide the fine quality of services. To deliver the services to customers in most effective manner, the competencies, skills, experiences and abilities of workers from distinguish backgrounds assist organization to a huge extent. Being the one of the vital players in the casual dining, it is essential for Nandos to provide high quality services to customers through motivating employee so that organizational ultimate objective is accomplished. The factors like differences in the cultural norms, race, and genders do affect the experiences of workers so it is essential for Nandos to use adequate ways to handle the cultural diversity. The annual report of Nandos showed that it firmly believes in cultural norms and values, equity and opportunities for its employees therefore Nandos handle its diversified employee in effective and efficient way through its leaders. In this secondary data it is evident that tackling of employees from different backgrounds is done in a positive way by leaders of Nandos.

2. Styles of leadership: There are various distinguishing types of leadership style mostly operating in the world today and it varies from organisation to organisation. The most common one are autocratic and democratic style of leadership in practice.

Source: nwlink.com 2.1 Autocratic Leadership Autocratic style of leadership is regarded as the traditional technique in which the decision making authority rest with the manager as he or she have a supreme control in decision making process. Teams or individuals are not consulted by the manager as he or she decides matter alone. The turnover of employees in a firm may increase due to the unfriendly and extreme strict environment (Sommerville, 2007). 2.2 Bureaucratic Leadership Organisations with a strong hierarchy where orders and decisions are followed as a rule of organisation by its employees, such organisation take bureaucratic leader as an ideal one. The

orders given by leaders are followed by the members of team in a defined pattern. Leader has no say in the rules of the organisation as rules are prior designed by the organisation. The role of leader is to ensure that employees are following the defined rules on daily routine (Sommerville, 2007). 2.3 Democratic leadership or Participative leadership As the name implies that a leader who believes in the employees participation is regarded as democratic leadership style. In this style leader motivates employees to take active part in the process of decision-making. This style is very beneficial when employees are trained properly and has developed skills to make a decision then this should be opt to increase the employee empowerment (Sommerville, 2007). 2.4 Task oriented leadership The prime focus of this particular type of style is on the task at hand, Leaders main concern is to achieve the set target through employees. His or her personal contribution in the task may remain very minor one in the teamwork (Sommerville, 2007). 2.5 Transactional leadership Employees and all the team members obey the entire methods and techniques of leaders. The employees who are not performing well in the team will be punished by the organisation as they practice the rights to punish the members. In other word, any person who is not doing his job rightly will be held responsible for it and punished for it. Leaders prime duty is to demonstrate the management of task in effective and efficient manner because organisation has a complete control and dominance. In such style the true leadership is not visible, especially for creative task, this style of leadership is not suitable (Management, an introduction, 2009). 2.6 Transformational leadership When workers are inspired by leader enthusiasm this style of leadership is known as transformational leadership style. The same vision is shared by leaders and team members as leader devote more time for members of team. Leader does not only stand to lead the employees but practical involvement of leader in task is also visible (An introduction of motivation and morale).

3. Leadership style at Nandos: 3.1 Participative Leadership Style Nandos firmly believe in the strong bondage between motivation and satisfaction. The philosophy is that there exists strong correlation between these two variables. Due to this, individuals are groomed and motivated to perform well at workplace and guests are entertained in fine manner. The main source to generate huge revenue are people, therefore, the management of restaurant firmly ensure that Employee involvement is present as they put more efforts that employees are heard properly. The process of communication is two ways which assist organization in narrowing the gap among leaders and workers which clarify that participative leadership style is prevailing at Nandos Park Royal. Participative leadership theory emphasis on the point that more effective decisions are those that involve many people rather than opting for the judgment of a single person. The management of Nandos considers that for the betterment of business the guidance, suggestions, and feedback from different stakeholders is vital to undertake. Stakeholders like employees, management, and suppliers are concerned prior to the final decision taken by the leader. Undoubtedly, employees are asked for their participation once leader has set the objectives. 3.2 Primary research: Being an employee at Nandos Park Royal outlet, it was easier to have the close interaction with the members to attain the primary data. Team leader of kitchen was easy to interview and the nature of interview was more descriptive one. Mr.______, the manager of a kitchen department recall his experiences that working in this organization has been a good experience all together because as a leader he has more opportunities to increase his working skills and improve his leadership skills. Moreover, he described that he is being assisted and motivated by means of training program which is very essential in determining ways to achieve the task. Job security is high and extra pressure is not burden on him which enables him to work to perfection. There has been situations in which leader has made mistakes but the top management guidance came to help him correct the mistake which improved his working performance as his motivation level increased. According to Mr. _______, to accomplish the tasks of individual or collective nature, it is required that visions and objectives of an organization is clearly understood. The core

competencies of a company are also its core values that are significant in designing a good team. This indicates that the importance of cultural diversification must be understood properly by Nandos so that it has no problem in managing the diversified workforce. Dedication, teamwork and the level of commitment is vital in reaching for a common goal. Managers and leaders have a significant role in the progress and growth of an organization. In fine dining at the hospitality sector, Nandos is emerging as a stylish leader therefore it is important to understand the strategies by which it is progressing under the strong management and influential leaders. Robby Enthoven is a name associated with the success of Nandos, he is a leader who has improved the standards and quality of working and its workforce (Times, 2010).

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4.0 Management vs. Leadership: The key functions that a manager and leader perform easily distinguish them from one another. For instance, the main functions of a manager in organisation are planning, organising, directing and controlling as the prime focus of a manager rest on the following the rule, do things in a right manner. Whereas leaders main function is to inspire people to work, shape their entities, and motivate subordinates to accomplish task, the main target is on people to do things in a correct way (valand, 2002--2010). This clarify that the leaders create a strong impact on employees so that they work as a team to attain the organisational growth. Leaders and the managers at Nandos are properly trained by top management so that they can set and accomplish their task through motivating employees that will lead to accomplish the ultimate objective of the organisation. Despite the fact that most of the functions of managers differ from the leaders but some of the functions are shared by both, managers as well leaders, such as planning, organising, directing and controlling. Planning:It is a common function practiced by manager and leader in which a course of action for the upcoming future is designed by manager or a leader. Numerous types of activities like resource allocation, setting goals, planning budgets and directing members are done by leaders as well managers. Particularly, when objectives of organisation are set then both should be concerned (valand, 2002--2010) Nandos follow same patterns in order to avoid conflicts and biasness in daily operations For this purpose adequate training and evaluation of performance is done. Organising: From the delegation of authorities to staffing right person at right place are all the activities that need organising or structural arrangement. This is the basic function of manager but leader assist members in doing so correctly (Northouse, 2010). Directing the work: Negotiating and solving problems are the prime function of manager while leader act as a cheerleader to make employee empowered and cheer for it (valand, 2002--2010) (Northouse, 2010) Nandos offer a training program for employees to polish their skills so task is

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accomplished in adequate way and directions are communicated through manager and leader to achieve the assigned target. Controlling: To attain the goal, there is a sense required to understood, for that purpose leader inspire employees while manager keep a track record of performance by monitoring and evaluating it (Orloff, 2008). Controlling is vital but employee motivation is essential to attain the organisational goal 4.1 Leadership Theroies: Leadership traits: Alike the Great Man theory, trait theory also states that particular qualities and traits are inherit by individual as these unique traits make some people leader since birth (Northouse, 2010).

(Rost, 1993) Has identified some of traits that are as following:

Source: sydneyeroberts.wordpress.com

Intelligence: Leader posses more knowledge than common man as they handle matters in swift way. It is an essential quality for a leader to posses if organisation wants to gain edge over rivals (Rost, 1993). Leaders of Nandos are well trained and experienced to tackle things in a way which lead to satisfaction of customers. Personality: characteristics like integrity, ambition, energy, honesty, aggressiveness, selfconfidence, and ability to lead are important to groom leaders personality. Members trust leader who have these qualities (Orloff, 2008). Nandos make sure that employees develop trust in leader and perform well which is monitored too. The real demonstration of culture is

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represented by leaders and employee that is why knowledge about culture is important for employees for customer retention (Parker, 2003).

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5.0 Motivational theory related to the organisation: Increase in pay, incentives, innovative jobs, family and friends are some of forces that motivates individual to work (Latham, 2007). Manager should motivate employees in right channel to attain the ultimate goal. To manage the diversified workforce, the motivation is crucial factor.

Nandos firmly believes in strong correlation between employees and customers, therefore, to attract the external customer, internal customers are trained and motivated through leaders. 5.1 Situational Leadership Theory:

Source:peace.ca/militaryleader.htm

Sources:tracomcorp.com

Paul Hersey and Ken Blanchard proposed the theory based on the point that one best style of leadership is not possible, those leaders are effective one who adjusts themselves according to situation. Style of leader varies as the maturity of employees increases. Depending on the task, function and the situation, the style of leadership keep on changing. Leadership style ranges from S1 till S4. When employees have less knowledge about task, the leader has to tell them so it is one type of communication. When employees become quite capable still the direction are given by leader but the communication become two way is regarded as style two

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(S2). Once the maturity level of employee increases more, the participation of employee increase, in this the task behaviour reduce but relationship is maintained at high level. In S4, the employee work by self but leader is involve in the decision making and monitoring process even though responsibilities are delegated. This indicates that to be effective leader, the flexibility is essential. The productivity of employees increases when they are motivated to work and participate (Latham, 2007). Adaptability towards situation is important for leaders to achieve organisational goal (Green, 2004) Nandos have effective leaders who delegate responsibilities according to the maturity of employees. The various ways are use to enhance the maturity level of employee therefore, it can be rightly said that situational theory is in practice at Nandos.

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6.0 Recommendations: On the basis of this report the following recommendations are made: To make employees motivated more, the bottom level motivational program need to be more effective. Centralised HR department is operating which need to be separated so that leaders are part of managerial settings more as leaders have more interaction with the customers Since situational leadership in practice so the transformational leadership style should be included also, only participative would not be ideal in all situations.

Conclusion: To sum up the report after analysis of information, it can be said that Nandos has a diversified workforce and leadership and management has played important role in its success. Today in the hospitality sector, leadership is more vital to accomplish task through diversified workforce. It is further noticed that some of the functions of manager and leader are alike but leaders role is more to influence employees. This report elaborates that participative leadership is in practice at Nandos and according to report published at mail & guardians, (2010) it is 26th stylish casual dining restaurant operating in the hospitality industry of UK. Leader has vital role in the success and to make it a bench mark, cultural diversity is significant factor. This report shows that leadership and motivation is important to accomplish the organisational goals through diversified workforce.

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