Servant Leadership, Empowerment Climate, and Group Creativity in a Spanish Hotel –

Cuenca

Bhavini Hemant Matai

Trinity Western University

LDRS 500 D: Leadership Foundations

Prof. Dr. D. L. (Doug) Atha

February 15, 2024

Servant Leadership, Empowerment Climate, and Group Creativity in a Spanish Hotel –

Cuenca

Tourism is heavily influenced by a country's culture and the destinations it offers,

which can broaden intercultural understanding and increase knowledge about historical

artifacts. One such destination is the Cuenca Hotel in Spain, famous for its history and

innovative hospitality. However, behind this modern and cultural charm lies a tale of servant

leadership, an empowering environment, and group creativity that defines its success in the

industry. “Cuenca is included in the list of UNESCO’s World Heritage Sites, constituting a

cultural and urban tourism benchmark. This hotel has over 50 years of history and is

considered a symbolic lodging firm. The hotel is structured by four work groups: kitchen,

restaurant, reception, and room service, each led by a different supervisor. A general manager

and an economic-financial manager head the workforce” (Linuesa-Langreo, 2016). This case

study will analyze the success of Cuenca Hotel based on variables such as servant leadership,

empowerment climate, and group creativity. The analysis will discuss the results, limitations,

and recommendations.

The Problem

Without a doubt, the servant leadership approach is widely acknowledged as an

exceptional method for leading teams. A servant leader places the needs of others before their

own and works selflessly to ensure that everyone's needs are met. Nevertheless, it is crucial to

recognize that there is no one-size-fits-all solution for successful team leadership. As

exemplified in the Cuenca Hotel case study, numerous small and medium-sized hotels face

the challenge of competing with larger rivals while preserving their competitiveness and

efficiency within the organization. In this situation, it becomes crucial to analyze the

implementation of the servant leadership approach to survive in a competitive market.

Context of the Problem

The Cuenca Hotel in Spain is a well-known establishment celebrated for its rich

cultural legacy, ancient antiques, and outstanding hospitality. Despite being a small-scale

accommodation, its ability to compete with larger competitors is noteworthy. It comprises

four departments, namely Restaurant, Kitchen, Reception, and Room Service, each

supervised by a designated supervisor. The hotel manager oversees the hotel.

Based on available data, most hotel staff is relatively young, aged 30 to 40. Nearly

90% of the staff members have permanent contracts, while temporary contracts are offered

during peak seasons. It is worth mentioning that over 80% of the staff comprises women, and

a significant proportion (86%) hold vocational training certificates, which points to their level

of expertise and professionalism (Linuesa-Langreo, 2016).

However, despite the organization's many positives and strengths, it faces internal

issues within the groups. As a result, a questionnaire and semi-interview have been conducted

to collect and analyze data, and recommendations will be presented based on the findings.

Critical Factors of the Problem

There is a pressing issue regarding the need for more cohesion between various

departments within the organization. Despite a strong connection among employees within

their respective teams, the lack of collaboration between departments can lead to

complications in providing optimal customer service. According to the case study, this issue

could arise from a need for more servant leadership, especially regarding the supervision of

newer groups, such as those responsible for room service and reception.
 A strong and effective leadership structure can help the progress of departments

within an organization. Leaders must promote a culture of collaboration and teamwork

among employees of various departments. The lack of such a culture can lead to a breakdown

in communication, resulting in ineffective service delivery.

Furthermore, the lack of cohesion between departments can lead to a negative impact

on customer satisfaction. Customers expect the highest level of service, and when

departments fail to work together harmoniously, it can lead to a poor customer experience.

This can have long-lasting effects, as customers are likely to share their negative experiences

with others, leading to a decline in the organization's reputation.

Key Definitions

Northouse (as cited in Leadership: Theory and Practice - International Student

Edition, 2022) states, “Leadership is a process whereby an individual influences a group of

individuals to achieve a common goal. It consists of four key components such as (a) process,

(b) influence, (c) occur in groups and (d) common goals.” Leadership is a complex

phenomenon that involves the process of communication and interaction between leaders and

followers. It is widely accepted that leadership is not a mere personality trait but a set of

interpersonal skills that can be developed and honed over time. Successful leadership is the

ability to inspire, guide, and motivate a team toward a shared vision and goal while

minimizing conflicts and maximizing collective productivity.

“Servant leadership is a form of moral-based leadership where leaders prioritize the

fulfillment of the needs of followers, namely employees, customers and other stakeholders,

rather than satisfying their personal needs” (Canavesi et al.; E., 2022). To explain it further,

Servant Leadership means replacing self-interest with service to others, not by controlling
but by influencing. This type of leadership focuses on strengths rather than weaknesses and

has long-range benefits, unlike other leadership styles, which have short team goals.

Before diving into more details, it is necessary to understand the terms Empowerment

Climate and Group Creativity. Empowerment Climate is “an atmosphere of trust and

security and takes extra steps for the values of employees and believe in serving the

employees interest before the organizations, encourage employees to reciprocate the favour

by indulging in extra-role behaviour” (Ashraf et al., 2022). Creating a safe environment for

employees to express their needs and beliefs without fear of judgment from leaders is crucial

in promoting a positive workplace culture. “Empowerment climate occurs at group level

where a set of shared perceptions regarding the structures, policies, and practices are

designed to decentralize power and authority throughout the organization, enabling

employees to take and make appropriate actions and decisions” (Kirkman et al., 2004, as

cited in Linuesa-Langreo, 2016). “At the group level, there are three practices: 1) information

sharing, 2) autonomy through boundaries and 3) team accountability” (Randolph, 1995;

Seibert et al., 2004, as cited in Linuesa-Langreo, 2016).

Group Creativity “is considered a function of group processes, structure and

characteristics (Jung, 2001; Shalley & Gilson, 2004, as cited in Linuesa-Langreo, 2016),

which fosters, among other aspects, information and knowledge sharing, decision-making

involvement, and members integration and social skills development” (West, 2002, as cited

in Linuesa-Langreo, 2016). For any leader to succeed, it is necessary to have a group

creativity attribute as it helps to be innovative, provide better-fit solutions, and simplify the

decision-making process by developing an individual’s personality.

Analysis
 “There are three ways to collect the data at different levels: interviews, questionnaires,

and direct observations” (Eisenhardt, 1989; Eisenhardt & Graebner, 2007; Yin, 2013, as cited

in Linuesa-Langreo, 2016). In the Cuenca Hotel case study, valuable insights were gathered

by administering questionnaires to each group of employees. The primary objective of this

data collection was to gain a deeper understanding of the leadership skills of the respective

managers, as well as the degree of empowerment and creativity fostered within each group

and across the organization as a whole. Brief interviews with the hotel manager and the

supervisors of each of the four groups were conducted to enhance further the comprehension

of the hotel's organizational structure and policies.

The group analysis

Several assessment scales exist, such as behavioural observation, Likert, 360-degree

feedback, narrative assessment, and others. Each scale possesses its own set of advantages

and disadvantages. The selection of the appropriate scale hinges on several factors, such as

the assessment's context, resource availability, and the required level of detail in the

evaluation process. “To measure the study variables, existing seven-point Likert scales were

used. The measure for the different scale items ranged between 1 (totally disagree) and 7

(totally agree). To test research questions, descriptive analysis in SPSS version 22 was used.

The individual scores for each group were added and averaged for each work group to build

our three study variables: servant leadership, empowerment climate and group creativity”

(Linuesa-Langreo, 2016).

The Cuenca Hotel case study reveals that servant leadership positively correlates with

higher perceptions of group creativity and empowerment climate. Specifically, when the

average rating for servant leadership is high for the restaurant and kitchen group, the average

ratings for empowerment climate and group creativity are also high. However, for the

reception and room services groups, the lower ratings for servant leadership are linked to
lower ratings for empowerment climate and group creativity. Upon conducting a more in-

depth analysis, it was concluded that the leaders for reception and room services are

relatively new to the organization. Thus, servant leadership qualities still need to be fully

implemented. As a result, this type of leadership could be more successful in the long term.

The Hotel Manager and Supervisors Analysis

Apart from this, the hotel manager and four supervisors were semi-interviewed. “The

interviews were focused on the three main variables of our research: 1) servant leadership

practices, 2) policies and practices focused on developing empowerment within the work

group, and 3) creativity experiences of the workgroup” (Linuesa-Langreo, 2016, p.22). “The

use of multiple sources of evidence ensured the triangulation principle (Yin, 2013, as cited in

Linuesa-Langreo, 2016), allowing to check the data from different sources.” This approach

ensured the credibility and dependability of the data by verifying it with multiple sources. It

enhanced the data's accuracy and helped mitigate the potential biases that may arise from

relying on a single source of evidence. This helped understand the culture that the hotel

shares among the staff. Organizational culture prioritizes employees' contribution to strategy

development and is widely recognized as crucial for long-term success. By creating a culture

that values the input of employees and encourages them to participate in decision-making, the

hotel has leveraged its workforce's collective knowledge and expertise to design effective

strategies that align with its goals. This approach not only enhances employee motivation and

engagement but also leads to a better understanding of the organization's strengths and

weaknesses, which ultimately helps to improve overall performance and sustain competitive

advantage.

Case Study I Analysis

A similar case, “Bridging Top and Bottom: Multi-Level Model of Servant Leadership,

Identification with Leader and Team Creativity,” was studied to find a relationship between
servant leadership and group creativity. The conclusion is that “the creativity and support

relation is stronger when the identification with the leader is high. Creativity can be enhanced

through the positive association between leaders and followers. When followers feel and

perceive positive about their leader, they imitate the leadership style and offer better returns

at work” (“BRIDGING TOP AND BOTTOM on JSTOR,” n.d.). However, the drawback of

this case study is that it focused on a single industry and a specific region.

Case Study II Analysis

Another case study, “Employees Voluntary Green Behaviour: The Role of Servant

Leadership and Psychological Empowerment,” showcases the relationship between Servant

Leadership and an Empowerment Climate and suggests that an empowering climate usually

helps build trust and security among the team members and provides a safe environment to

explain employees' views better. The limitation of this case study is that the sample size is too

small for the best result.

Recommendations

Following a comprehensive analysis, several recommendations can be proposed to

enhance the results:

Multiple Industry and Large Sample Size

The evaluation of the Cuenca Hotel is limited to the hospitality industry, which is a

small-scale single industry. To obtain more accurate and comprehensive outcomes,

conducting research on a larger scale and across various industries is advisable. As per the

Employees Voluntary Green Behaviour case study, the research utilized a small sample size

so that the findings may vary for a larger group.

Different scales or rating system

The current study employs the Likert rating scale to assess guests' perceptions in the

Cuenca Hotel case. The Likert scale is a widely recognized tool for measuring attitudes and
opinions in the United States, where it has been extensively used for research purposes.

However, its use in Spanish culture, which differs significantly in values and beliefs from the

American culture, may raise concerns about its cross-cultural appropriateness. Therefore,

there is a need to explore the potential of alternative rating systems that are more suitable for

the Spanish context. By doing so, researchers can obtain more reliable and accurate data that

can be compared with the results obtained using the Likert scale to enhance the validity of the

findings.

Different Leadership Approach

The case study primarily highlights servant leadership as a dominant leadership style.

However, it is important to note that various other leadership styles, such as transformational,

authentic, aesthetic, transactional, charismatic, and others, are also available. Depending on

the type and size of an organization, a different leadership style may prove to be more fitting,

or a combination of two or more styles may be more appropriate. Therefore, it is imperative

for leaders to assess the organizational context and determine the most suitable leadership

style(s) to effectively lead their teams toward success.

Short-term Plan

Considering that the leaders responsible for reception and room services are new, it

would be beneficial for them to initiate team-building activities that promote socialization

within their team and across other teams. Such activities are effective in breaking the ice and

establishing relationships among team members, which can ultimately lead to improved

communication, increased collaboration, and better overall performance. Therefore, it is

recommended that the leaders take the initiative to organize fun and engaging activities that

foster a positive work environment and encourage teamwork.

Long-term Plan
 Organizing vocational training programs that improve leadership skills and enhance

employee engagement can be a crucial part of an organization's strategy for talent

management. Through such programs, employees can develop new competencies and skills

that can be used to support their career growth and contribute to the overall success of the

organization. Therefore, organizations need to consider offering such training opportunities to

their workforce as part of their talent management and development initiatives.

Customer Feedback

The present study utilized an internal questionnaire and interview to gather data for

organizational purposes. However, it is essential to incorporate customer feedback into this

analysis to obtain a more comprehensive understanding of organizational dynamics. Doing so

makes it possible to gain valuable insights into areas that need improvement and ultimately

enhance the organization's performance.

Conclusion

The present study posits a significant positive correlation between Servant

Leadership, Empowerment Climate, and Group Creativity. The presence of Servant

Leadership in various work groups leads to increased Empowerment Climate and Group

Creativity. A robust Empowerment Climate also fosters an environment where Group

Creativity is enhanced. It is important to note that organizational variables may differ across

various work groups, and, as such, the results of this study may be specific to the sample

population. Furthermore, while Servant Leadership may not be suitable for short-term or fast-

paced organizations, it is most effective in long-term organizations. Finally, a noteworthy

finding of this study is that the presence of Servant Leadership has been found to have a

significant impact on reducing the likelihood of unethical occurrences within an organization.

Reference:
Ahmed, I., Rehman, W. ul, Khan, M. K., Ali, G., & Anwar, F. (2017). BRIDGING TOP

AND BOTTOM: MULTI-LEVEL MODEL OF SERVANT LEADERSHIP,

IDENTIFICATION WITH LEADER AND TEAM CREATIVITY. Pakistan

Economic and Social Review, 55(2), 511–531. https://www.jstor.org/stable/26616724

Ashraf, S., Afridi, S. A., & Saifullah, K. (2022). Employees voluntary green behaviour: the

role of servant leadership and psychological empowerment. NUML International

Journal of Business & Management, 17(1). https://doi.org/10.52015/nijbm.v17i1.93

Canavesi, A., & Minelli, E. (2022). Servant Leadership: A Systematic Literature Review and

Network Analysis. Employee Responsibilities and Rights Journal, 34(3), 267–289.

https://doi.org/10.1007/s10672-021-09381-3

Linuesa-Langreo, J. (2016). Servant leadership, empowerment climate, and group creativity_

a case study in the hospitality industry. Ramon Llull Journal of Applied Ethics, 7, 9–

36. https://dialnet.unirioja.es/servlet/articulo?codigo=6121400

Northouse, P. G. (2021). Leadership: Theory and Practice - International Student Edition (9th

ed.). SAGE Publications, Inc. (US).

https://bookshelf.vitalsource.com/books/9781071856567