BME 2

STRATEGIC MANAGEMENT IN TOURISM AND

HOSPITALITY INDUSTRY

CARMELITA PAGUYO - SERRANO

STRATEGIC LEADERSHIP FOR EFFECTIVE ORGANIZATION
WHAT IS STRATEGIC LEADERSHIP?

Strategic leadership refers to a manager's potential to express a strategic vision for the
organization, or a part of the organization, and to motivate and persuade others to acquire that
vision. ... Strategic leaders encourage the employees in an organization to follow their own ideas.

Strategic Leadership is the ability to influence others to voluntarily make decisions that enhance
the prospects for the organization's long-term success while maintaining short-term financial
stability.

Strategic Leadership includes the ability to balance vision and execution. Effective strategic
leaders possess a strong ability to conceptualize far-reaching objectives, while still being able to
take the necessary actions to execute on both long and short-term goals.
THE FOUNDATION OF EFFECTIVE LEADERSHIP

Leaders are expected to produce measurable results within their organization. To achieve these
measurable results, it is necessary to motivate others to work toward the common goals that are
established for the organization.
An effective leader is a person with a passion for a cause that is larger than they are. Someone
with a dream and a vision that will better society, or at least, some portion of it. ... Also, without
passion, a leader will not make the necessary courageous and difficult decisions and carry them
into action.
Effective leadership strategies from the foundation of corporate managers in handling the affairs
of the business enterprise towards the attainment of its corporate goals and objectives through
the practices of strategic management process.
CHARACTERISTICS OF EFFECTIVE STRATEGIC LEADERS
1. Willing to make candid and courageous decisions that may be difficult but necessary.
2. Have foresights on the prevailing condition in the environment
3. Have clear understanding of the consequences of their decisions
4. Have clear visioning of employees’ needs and capabilities
5. Motivates employees for effective and efficient performance
6. Knows the art of soliciting feedback from peers and supervisors
7. Develop strong partnerships internally and externally
8. Good communication skills that facilitate effective execution of their strategic vision.
MANAGERIAL LEADERSHIP AS ORGANIZATIONAL RESOURCES

Top level executives and managers who know the art of managerial leadership is the greatest
investment of the firms towards its desired goals and competitive advantage. Strategic
leadership stems from the development of management process of planning, organizing,
directing and controlling and vital resources of human and financial capital of the firm towards
the prime objective which is return on investments.
What is Organizational and Managerial Leadership?

Organizational leadership is a management approach in which leaders help set strategic goals
for the organization while motivating individuals within the group to successfully carry out
assignments in service to those goals.

Managerial leadership - is the ability to manage and lead people.

Importance of Leadership

Leadership is an important function of management which helps to maximize efficiency and to

achieve organizational goals. The following points justify the importance of leadership in a
concern.

1. Initiates action- Leader is a person who starts the work by communicating the policies
and plans to the subordinates from where the work actually starts.
2. Motivation- A leader proves to be playing an incentive role in the concern’s
working. He motivates the employees with economic and non-economic
rewards and thereby gets the work from the subordinates.

3. Providing guidance- A leader has to not only supervise but also play a
guiding role for the subordinates. Guidance here means instructing the
subordinates the way they have to perform their work effectively and
efficiently.

4. Creating confidence- Confidence is an important factor which can be

achieved through expressing the work efforts to the subordinates, explaining
them clearly their role and giving them guidelines to achieve the goals
effectively. It is also important to hear the employees with regards to their
complaints and problems.
5. Building morale- Morale denotes willing co-operation of the employees
towards their work and getting them into confidence and winning their trust. A
leader can be a morale booster by achieving full co-operation so that they
perform with best of their abilities as they work to achieve goals.
6. Builds work environment- Management is getting things done from people.
An efficient work environment helps in sound and stable growth. Therefore,
human relations should be kept into mind by a leader. He should have personal
contacts with employees and should listen to their problems and solve them. He
should treat employees on humanitarian terms.
7. Co-ordination- Co-ordination can be achieved through reconciling personal
interests with organizational goals. This synchronization can be achieved through
proper and effective co-ordination which should be primary motive of a leader.
Qualities of a Leader

A leader has got multidimensional traits in him which makes him appealing
and effective in behavior. The following are the requisites to be present in a
good leader:

1. Physical appearance - A leader must have a pleasing appearance. Physique

and health are very important for a good leader.
2. Vision and foresight- A leader cannot maintain influence unless he exhibits
that he is forward looking. He has to visualize situations and thereby has to
frame logical program.
3. Intelligence- A leader should be intelligent enough to examine problems
and difficult situations. He should be analytical who weighs pros and cons and
then summarizes the situation. Therefore, a positive bent of mind and mature
outlook is very important.
4. Communicative skills - A leader must be able to communicate the
policies and procedures clearly, precisely and effectively. This can be
helpful in persuasion and stimulation.
5. Objective - A leader has to be having a fair outlook which is free
from bias and which does not reflects his willingness towards a
particular individual. He should develop his own opinion and should
base his judgement on facts and logic.
6. Knowledge of work - A leader should be very precisely knowing
the nature of work of his subordinates because it is then he can win
the trust and confidence of his subordinates.
7. Sense of responsibility- Responsibility and accountability towards
an individual’s work is very important to bring a sense of influence. A
leader must have a sense of responsibility towards organizational goals
because only then he can get maximum of capabilities exploited in a real
sense. For this, he has to motivate himself and arouse and urge to give
best of his abilities. Only then he can motivate the subordinates to the
best.
8. Self-confidence and will-power - Confidence in himself is important
to earn the confidence of the subordinates. He should be trustworthy and
should handle the situations with full will power.
9. Humanist -This trait to be present in a leader is essential
because he deals with human beings and is in personal contact with
them. He has to handle the personal problems of his subordinates
with great care and attention. Therefore, treating the human beings
on humanitarian grounds is essential for building a congenial
environment.
10. Empathy - It is an old adage “Stepping into the shoes of
others”. This is very important because fair judgement and
objectivity comes only then. A leader should understand the
problems and complaints of employees and should also have a
complete view of the needs and aspirations of the employees. This
helps in improving human relations and personal contacts with the
employees.
Leadership Ethics - Traits of an Ethical Leader

Ethics refer to the desirable and appropriate values and morals according to an individual or the
society at large. Ethics deal with the purity of individuals and their intentions. Ethics serve as
guidelines for analyzing “what is good or bad” in a specific scenario. Correlating ethics with
leadership, we find that ethics is all about the leader’s identity and the leader’s role.

Ethical theories on leadership talk about two main things: (a) The actions and behavior of leaders;
and (b) the personality and character of leaders. It is essential to note that “Ethics are an essential
to leadership”. A leader drives and influences the subordinates / followers to achieve a common
goal, be it in case of team work, organizational quest, or any project. It is an ethical job of the
leader to treat his subordinates with respect as each of them has unique personality. The ethical
environment in an organization is built and developed by a leader as they have an influential role
in the organization and due to the fact that leaders have an influence in developing the
organizational values.
An effective and ethical leader has the following traits / characteristics:

1. Dignity and respectfulness: He respects others. An ethical leader

should not use his followers as a medium to achieve his personal goals. He
should respect their feelings, decision and values. Respecting the followers
implies listening effectively to them, being compassionate to them, as well
as being liberal in hearing opposing viewpoints. In short, it implies treating
the followers in a manner that authenticate their values and beliefs.
2. Serving others: He serves others. An ethical leader should place his
follower’s interests ahead of his interests. He should be humane. He must
act in a manner that is always fruitful for his followers.
3. Justice: He is fair and just. An ethical leader must treat all his followers equally.
There should be no personal bias. Wherever some followers are treated differently,
the ground for differential treatment should be fair, clear, and built on morality.
4. Community building: He develops community. An ethical leader considers his
own purpose as well as his followers’ purpose, while making efforts to achieve the
goals suitable to both of them. He is considerate to the community interests. He
does not overlook the followers’ intentions. He works harder for the community
goals.
5. Honesty: He is loyal and honest. Honesty is essential to be an ethical and
effective leader. Honest leaders can be always relied upon and depended upon.
They always earn respect of their followers. An honest leader presents the fact and
circumstances truly and completely, no matter how critical and harmful the fact
may be. He does not misrepresent any fact.
RATIONALE IN ESTABLISHING WORK TEAMS OF CORPORATE MANAGERS

Team building in the workplace is the process of creating a team that is cohesively working
together towards a common goal. The importance and the purpose of team building is to create
a strong team through forming bonds and connections. Creating these bonds through team
building is very beneficial to businesses and organizations. The benefits of team building include
increased communication, planning skil s, employee motivation and employee collaboration.
The TOP SIX REASONS FOR TEAM BUILDING
1. Networking, socializing and getting to know each other better
2. Teamwork and boosting team performance
3. Competition and bragging rights
4. Celebration, team spirit, fun, and motivation
5. Collaboration and the fostering of innovation and creativity
6. Communication and working better together

The purpose of high performance team work is to help you understand and describe key
competencies you are developing in preparation for life, learning and career. Teamwork and
collaboration is a primary outcome across countries, associations, employers and within higher
education.
These are Royal Road's five core competencies of teamwork:

1. Personal Awareness

 Identify individual contributions to team, exploring leadership, values,

strengths and interests
 Identify and plan individual goals for work to be accomplished
together
 Identify own personality style using personality inventory tools
 Share and discuss personality and character strengths from personality
inventory results with team
2. Working with others
 Consider diverse, cross-cultural perspectives and working styles
 Identify and discuss individual strengths and contributions to team
 Create an outline of roles and responsibilities and how each will be fulfilled
 Develop a team agreement that states collective team and individual
expectations, behavior and conduct, team agreements, roles and
responsibilities
 Work effectively with different personalities across a variety of social and
professional situations
 Use Team Assignment Plan (TAP) for team planning and process
3. Inclusive Communication
 Establish preferred online communication platform for open and
consistent communication
 Practice inclusive communication between all team members,
including mutual inquiry, effective questioning, reflective and active
listening
 Show commitment to the team's purpose and goals
 Establish and follow timeline for work to be completed
independently and together as a team
4. Problem-solving and Conflict Resolution
 Accept and provide feedback in a constructive and considerate way
 Schedule time for revisions and complete prior to submission of
assignment
 Attend reflective check-in meetings with team coach
5. Reflection and Feedforward
 Recognize the role of conflict when appropriate
 Apply problem solving and conflict resolution skills to improve team
process
 Individually complete ITP Conflict Management Style and share in team
 Approach conflict directly, tactfully and ethically.
THE DYNAMICS OF TOP LEVEL DECISION MAKING

1. The External Business Environment

a. Analysis of the external environment concerning industry structure.
b. Analysis of the market growth in the firms’ primary business
c. Analysis of the number and type of competitors
d. Political and legal environment that affect business condition
e. The degree to which product can be differentiate
2. The Firms Internal Environment and its Characteristics
a. The commitment of the firm for growth and expansion
b. The size of the firm to compete in the environment
c. The organizational culture of the firm
d. Availability of human and capital resources
e. The patterns of cooperation and interaction among managers and employees.
THE MANAGERIAL PERFORMANCE OF MANAGEMENT TEAMS

Leading Teams Efforts Effectively

1. Design the work structure that provides flexibility and autonomy for decision making.
2. Provide adequate corporate resources for members to accomplish corporate goals and
objectives.
3. Determine if the team are necessary to accomplish corporate goals and objectives.
4. Determine the effectiveness of team members’ contribution to work teams.
5. Ensure that all team members know and understand their respective role.
6. Provide the training and corporate interventions through corporate consultants.
7. Provide regular feedback regarding performance and accomplishments.
THE CARDINAL CHARACTERISTICS AND VALUES OF GOOD WORK TEAMS

1. Members participate actively and positively.

2. Members listen and received thoughtful feedback
3. Willing to take risk and focus on ultimate goal
4. There exist open communication and teammates trust the judgment of others.
5. Members takes the initiative to get things done on time.
6. Support other team members willingly.
7. Understanding and committed to team objectives and working enthusiastically.
8. Members influence others and get involved in decision making.
9. Encourage everyone and acknowledge others
10. Humbleness in accepting mistakes rather than blame other members.
FACTORS TO CONSIDER IN DEVELOPMENT MANAGEMENT TEAMS

1. The more heterogeneous the management team the more difficult it is to manage.
2. Differences in opinion due to different background and experience.
3. Diverse background may inhibit the process of decision making if not properly manage.
4. Suboptimal decision may emerge when threats and opportunities are not properly
examined.
5. Difficulty in bridging of opinions due display of intellectual supremacy especially when
one asserts his position in the organization.
6. It requires high level of managerial leadership in the process of consultative capabilities
and democratic steering opinions.
CHARACTERISTICS OF HIGH PERFORMING TEAMS

1. High driven with task-oriented goals.

2. With clear and elevating goals.
3. Committed and competent members who work hard.
4. Collaborative climate of trust among members of the team.
5. High standard of excellence.
THE POWER BEING IN THE THRONE

The phrase "power behind the throne" refers to a person or group that informally exercises the
real power of a high-ranking office, such as a head of state. In politics, it most commonly refers
to a relative, aide, or nominal subordinate of a political leader (often called a "figurehead") who
serves as de facto leader, setting policy through possessing great influence and/or skil ful
manipulation.
STAFFING THE CORPORATE TEAM

1. Internal Sourcing Strategies. Internal sourcing strategy is the assessment of people

within the organization who are ready for corporate governance.

Advantages of hiring from the internal source:

a. Knowledge about the firm’s operations that brought them to competitive advantage.
b. Familiarity with company products and operations.
c. Knowledge of system and operating procedure
d. Development of high morale and commitment.
e. Lower turn-over rate of valuable managers.
f. Higher sustained performance and lower training cost.
2. External Sourcing Strategies. It is the process of collecting career
positions from outside the organization other than the one for which
they work currently.
Advantages of external sourcing strategy:
a. Bringing in new blood to the organization.
b. Experience in other firm develop new strategies.
c. Changes in current strategies when top teams in homogeneous in
character.
d. Innovation and new technology updates.
e. Development of new system and procedure.
COMPONENTS OF EFFECTIVE STRATEGIC LEADERSHIP

1. Corporate Strategic Direction.

2. Maintaining and Exploiting Core Competencies.
3. Ability to Develop Human Resources.
4. Sustainable and Effective Organizational Culture
5. Corporate Ethical Standard
6. Balancing Organizational Culture
1. Corporate Strategic Direction. The firms must develop a long-
term vision of its intent. The long-term direction that is planned
and conceptualized with its level management is the driver of
strategic leadership behavior in terms of corporate productivity
and expansion.

2. Maintaining and Exploiting Core Competencies. Strategic

leadership ensures that the firm exploits and maintains its core
competencies in the production of quality products, delivering
them to customers at a price that is affordable, and maintain
sustainable operation through effective customer relations.
3. Ability to Develop Human Resources. Strategic leadership
emanate from the development of human capital that runs the
whole operational strategies of the firms. Human intervention
and training are important components of effective manpower
performance.

4. Sustainable and Effective Organizational Culture.

Organizational culture is a complex set of corporate ideologies
and core values that is shared throughout the firm and its
influences the way business is conducted.
5. Corporate Ethical Standard. Corporate ethics are synonymous
with the image of the firm in the business world. Judgment and ethical
behavior shape the firm’s decision-making process that shape the
organizational culture.

6. Balancing Organizational Culture. Developing and using balance

organization control is the final component of effective strategic
leadership. Control are necessary to help ensure that the firm achieves
their outcome in terms of performance and average return,
organizational controls emphasize strategic implementation and
financial controls as these are the main responsibility of top and
managerial executives.
Significance and Importance in the Development of Human Resources

1. Human resources are source of competitive dynamics and advantage.

2. Human resources facilities efforts to select and use effectively the firm’s strategies.
3. They are instruments in achieving company’s mission and vision to greater advantage.
4. Develop and trained human resources are vital to the execution of strategic leadership.
5. Developed human capital facilities the effective use of material and capital resources.
Two Factors that develop organizational culture

1. Development of entrepreneurial orientation

2. Dimension for Employees Motivation and Orientation
a. The Culture Autonomy. It allows the employees to take actions that are free of
organizational constraints and permits individuals to be self-directed.
b. The Culture of Innovativeness. It is the tendency of the firm to encourage employees
to engage in experimentation and creative process or develop new products and
support new ideas and technological development for the firm’s competitive
advantage.
c. The Culture of Proactiveness. It is the tendency to be market
leaders in the industry rather than to be follower.

d. The Culture of Risk Taking. Progressive firms encourage risk-

taking activities within minimum amount of control as the progress of
firm rests also with the risk involving innovations and procedures that
may be found out to be successful in the end. It is the willingness of
the employee and firm to accept risk when pursuing new
entrepreneurial opportunities.
e. The Culture of Competitive Aggressiveness. It is the tendency of
the firm to develop strategies and actions that allows it is
consistently and substantially outperform other firms in the
industry.

f. Corporate Culture and Reengineering Strategies. Strategic

leadership recognizes the importance of corporate cultural changes
when needed even it is quite difficult to change overtime as it is
incremental to the implementation of corporate structural reforms and
re-engineering strategies.
The following factors are important components in new value formation

1. Selection of right people with desired work values for the firms.
2. Establishing new goal and setting performance indicators
3. Development of effective appraisal system that measure effective performance.
4. Development of appropriate reward and compensation system based on the
performance rather than seniority.
Factors use in organizational control

1. The use of strategies in the implementation new programs.

2. Factors that alter or revise existing procedures
3. Activities that build credibility to consumers and stakeholders
4. Activities that support strategic change
5. Controls that provide related adjustments in resources
6. Financial and resource control in the implementation of strategies.