ABSTRACT
This thesis evaluated management styles and organizational effectiveness in hotel establishments in Edo State. The objectives of the research were to identify the various management styles used in the hotel, ascertain the level of application of the management styles, determine factors influencing the choice of management styles, examine the effect of management styles on organizational effectiveness of hotels.The hypotheses of the study were: There is no significant difference in the mean rating of management styles and organizational effectiveness in hotels in Edo State and There is no significant difference in the mean rating of hotel class management style and organizational effectiveness in hotels in Edo State. Data for this research was generated using structured questionnaire, interview and secondary data from other researches. Simple frequency percentage, mean, Pearson moment correlation and Analysis of variance (ANOVA) were used to analyse the data generated for the study. The finding of the analysis proved that there is significant difference in the mean rating of management styles and organizational effectiveness of hotels (F calculated 0.298 was greater than the F tabulated 0.001) and there is significant difference in the mean rating of hotel class management style and organizational effectiveness of hotels (F calculated 0.298 was greater than the F tabulated 0.011) at 5% level of significance. The empirical survey revealed that the null hypotheses was not true. This implies that there is a positively significant relationship between management style and organizational effectiveness of hotels and there is a significant relationship between hotel class management style and organizational effectiveness of hotels. Policies and best practices that ensure sustainability of sound management style in the hotel establishments, leading to improved organizational effectiveness, should be adopted and implemented by stakeholders in contemporary hotel business. In conclusion, it is important that the application of sound management style which impacts positively on organizational effectiveness be established at the inception of the hotel business, as this will result in quality product, improved employee performance, high revenue as well as good financial outcome.
TABLE OF
CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement vi
List of Tables x
List of Figures xi
Abstract xii
CHAPTER 1: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problems 6
1.3 Purpose of the Study 10
1.4 Research Questions 11
1.5 Hypotheses 11
1.6 Significance of the Study 12
1.7 Scope of the Study 113
CHAPTER 2: LITERATURE REVIEW
2.1 Conceptual framework 15
2.1.1 Definition and concept of the hotel industry 16
2.1.2 Historical development of the hotel industry in Nigeria 18
2.1.3 Economic importance of the hotel industry 19
2.1.4 Challenges facing hostel industry in Edo State 22
2.1.5 Management style 25
2.1.6 Dimensions of management style 28
2.1.7 Factors influencing the choice of management styles in hotel 30
2.1.8 Organizational effectiveness 31
2.1.9 Factors affecting organization effectiveness. 35
2.1.10 Measuring organizational effectiveness 40
2.1.11 Importance of management styles in organizational effectiveness 43
2.2 Theoretical Framework 45
2.2.1 Classical organizational theory 46
2.2.2 William Ouchi theory Z 47
2.2.3 Situational Theory 48
2.3 Review of Related Empirical Studies 55
2.4 Summary of Literature Review 61
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Design of the Study 66
3.2 Area of Study 66
3.3 Population of the Study 67
3.4 Sample and Sampling Techniques 68
3.5 Instrument of Data Collection 70
3.6 Validation of the Instrument. 71
3.7 Reliability of the Instrument 72
3.8 Method of Data Collection 72
3.9 Method of Data Analysis . 73
CHAPTER 4: RESULTS AND DISCUSSION
4.1 Presentation of Research Questions 76
4.2 Testing of Hypothesis 83
4.3 The Major Findings of the Study 85
4.4 Discussion of Findings 85
CHAPTER 5: SUMMARY, CONCLUSION
AND RECOMMENDATIONS
5.1 Summary 89
5.2 Conclusions 90
5.3 Recommendations 91
References 93
Appendixes 100
LIST OF TABLES
3.1 Sample Distribution by
Managers and Staff of Hotels Location Category 68
3.2 Sample of Managers and
Staff based location of Hotel Category
70
4.1 Presentation of Research
Questions 76
4.2 Presentation of
Percentage Response of Management Styles
used in the Hotel Industry in Edo State 78
4.3 Percentage Response of
Level of Application of the Identified
Management Styles in Hotels within the Study Area 79
4.4 Presentation of
Percentage Response of Factors Influencing
Choice of Management Styles in Hotels 80
4.5 Presentation of
Percentage Response of Effect of Management Styles
on Organizational Effectiveness of Hotels in Edo State 82
4.6 Management Styles and
Organizational Effectiveness 83
4.7 Hotel Class Management
Style and Organizational Effectiveness 84
LIST OF FIGURES
1.1 Situational
Leadership/Maturity Continuum 54
CHAPTER
1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Management style is very important to the success of
any business organization, as it is said to be a key factor for the viability of
any business (Shani, et al, 2014). Management style is the distinctive way in
which an organization makes decisions and discharges various functions of goal
setting, formulation, implementation of strategy, corporate image building, dealing
with key stakeholders and other basic management activities (Gollineli, 2010). The
term “management style” can be defined as the method a manager uses in
administering an organization (Northouse, 2010). It includes controlling,
directing, indeed all techniques and methods used by managers to motivate
subordinates to follow their instructions. The various management styles
adopted and utilized by managers in the Nigerian hotel industry are;
Bureaucratic management style; Participatory management style; Autocratic
management style; Entrepreneurial management style; Paternalistic management
style; Conservative management style among others (Ashibogwu, 2008).In
autocratic management style, the manager makes decisions unilaterally, and
without much regard for subordinates. Decisions reflect the opinions and
personality of the manager only and not that of the employees. Abiodun,
et al (2013). In democratic
management style, the manager allows the employees to take part in
decision-making; therefore, everything is agreed upon by the majority. The
communication is extensive in both directions (from employees to managers and
vice-versa). In democratic management style, every employee is given a seat at
the table, and discussion is relatively free- flowing. Employees are encouraged
to share their thoughts, ideas, feelings that will add value to the
organization. The manger takes into consideration the opinions of the employee
before making a decision gains a variety of ideas from the suggestions from
employees, which will lead to a better decision making outcome. (Abiodun et al,
2013). Laissez-faire management style is a type of management style in which
the manager hands-off and allows group members to make the decisions. Employees
are empowered to determine their own objectives, solve their own problem and
make their own decision with little or no interference. (Abiodun et al, 2013).
According to Yankey and McClellan (2010)
“organizational effectiveness is the extent to which an organization has met
its stated goals and objectives, and how well it performed in the process. Ittner
(2012) narrated that organization effectiveness is the concept of how effective
an organization is in achieving the outcomes the organization intends to
produce. While, Orfilia (2015) pointed that organizational effectiveness is a
process of “fulfilling objectives without incapacitating (an organization’s)
means”. Ittner, (2012) sees organizational effectiveness as a unique way of
integrating employees with the organization to achieve its vision or objectives
and that to a large extent the effectiveness of an enterprise is largely
dependent on the management styles adopted by managers which is central in the
management of organizations. An important consideration is what factors can
affect the organizational effectiveness both in profit and non-profit
organizations. The factors that influence organizational effectiveness includes
organizational characteristics, environmental characteristics, employee
characteristics, financial climate, managerial policies and practices
(Ashibogwu, 2008).
Hotels are residential building that provides lodging,
meals, and other services to the traveling public on a commercial basis
(Gollineli, 2010). Bello
and Bello (2010) claimed that the hotel industry is a concomitant human
exchange, willingly entered into, and delineated to enrich the healthy living
of the parties concerned through providing accommodation, food and drinks. Agba
(2013) asserted that hotel is a place where any traveller can get food and
shelter in exchange for money. In the same vein; Chikozho, et al (2014) refers
to the hotel industry as an organisation that provides myriads of services like
accommodation, food, entertainment and good comfort desires for strangers when
away from their homes for profit making. Thus, the hotel industry comprises business whose primary
activities are the provision of hotel accommodation, selling of food, beverages
for consumption on the premises and provision of entertainment. (Ofobruku,
2012). The hotel industry is a service oriented business that renders both
products and services to guests or visitors from within and outside their
environment. The business is seen as the people oriented business which implies
offering welcoming environment to visitors/guest (Bello and Bello, 2012).
Among other objectives of hotel establishments are
profit making and attainment of maturity and liquidity status. The hotel
industry assumes an important value in the tourism industry because it is
essential for the provision of all other tourism services and it is the first
service demanded by tourists who reach tourism destination (Orfilia, 2015). In the process, they provide employment,
provide goods and services, purchase goods and services and, thus, contribute
to the growth of the society and economy at large. It has been observed that in
most Nigerian small-scale settings, the effectiveness of this process is
greatly determined by the availability of and access to personnel, finance,
machinery, raw material and possibility of making their goods and services
available to their immediate community and the nation at large (Ashibogwu,
2008). The extent to which members of an organization contribute in harnessing
the resources of an organization equally depends on how well the managers of
the organization understand and adopt appropriate management style in
performing their roles as managers. Thus, efficiency in resources mobilization,
allocation, utilization and enhancement of organizational performance depends,
to a large extent, on management style, among other factors. Small and Medium
Enterprise Development Agency of Nigeria (SMEDAN, 2008) reports that most small and medium scale
businesses in Nigeria die before their fifth anniversary due to poor application
of relevant management style. The hotel industry in Edo state have witness some
difficulties over time while some new hotels spring up, others fail, while some
survives, some others have been there successful and are doing well, expanding
and succeeding (Ofobruku, 2013).
Management
style in an organization is one of the factors that play significant role in
enhancing or retarding the interest and commitment of the individuals in an organization.
Thus, Glantz (2010) emphasizes the need for a manager to find his management
style. Messick and Kramer (2011) argued that the degree to which an individual
exhibits management style traits depends not only on his characteristics and
personal abilities, but on the characteristics of the situation and environment
in which he finds himself. Since human beings could become members of an
organization in order to achieve certain personal objectives, the extent to
which they are active members depends on how they are convinced that their
membership will enable them to achieve their predetermined objectives.
Therefore, an individual will support an organization if he believes that
through it his personal objectives and goals could be met if not, the person’s
interest will decline (Messick and Kramer, 2011).
In order to
make profit and attain maturity stage, hotels provide employment, food and
beverage services, accommodation, purchase goods and services and, thus,
contribute to the growth of the society and economy at large. Unamaka (2010)
observes that in most Nigerian hospitality setting, the effectiveness of this
process is greatly determined by the availability of and access to personnel,
finance, machinery, raw material and possibility of making their goods and
services available to their immediate community and the nation at large. The
extent to which members of an organization contribute in harnessing the
resources of the organization equally depends on how well the managers of the
organization understand and adopt appropriate management style in performing
their roles as managers which affects organizational effectiveness positively
(Obiwuru et al, 2011). Thus, efficiency in resources mobilization, allocation,
utilisation and enhancement of organizational effectiveness depends, to a large
extent, on management style, among other factors.
Berson and Linton
(2012) identify managerial expertise, attitude to work, organizational culture,
performance, work environment, management style and motivation as some of the
factors that exert negative effect on organizational effectiveness in the hotel
industry in Nigeria. Ashibogwu (2008) notes that one of the reasons for
unsuccessful hotel business experience is lack of use of market research to
confirm demand and assess suitability of proposed offering as well as
maintaining high level of customer patronage. Inappropriate management style
could be one of the reasons for low productivity, high turnover, low
profitability, lack of job satisfaction, morale as well as high failure of
hotel establishments in Nigeria.
The need to study the management style in the hotel industry
and how it impact on the organizational effectiveness of indigenous hotels in
Edo State is pertinent to this study, to underpin the dominant management style applied by hotels in the study area,
know the effect of management styles on organizational effectiveness as well as
its challenges, so as to ensure sound management style and enable entrepreneurs
in the hotel business arrest or reduce the failure militating against hotel
business in Nigeria. Manager in this study, is considered to be an
organizational office holder of responsibility, which are made up of managing
directors, general manager, managers, and supervisors within the hotel setting. Thus, the research examines how the
various management style can affect the organizational effectiveness and
success of the hospitality business in Nigeria. It is against this background
that this study intendes to evaluate the management style and organizational
effectiveness in hotel establishments, contribute to empirical studies on
management style and organizational effectiveness in the hotel industry,
proffer recommendations where necessary to reposition hotel industry as an
integral part of the engine of economic growth and development in Edo State and
Nigeria at large.
1.2 STATEMENT OF THE PROBLEM
The hotel
industry in Nigeria is facing a lot of challenges because of poor application
of relevant management styles. Some of these challenges are highlighted as
follows;
High labour turnover
which increases the cost of recruiting new employees in the hotel industry can
affect the hotel organization due to poor application of management style. According to Ashibogwu (2008), workers leave
most hotel establishment because they are not satisfied with the autocratic
style of some managers thus, breeding poor relationship with management and his/her
colleagues. More explicitly, the cost implications of labour turnover are leaving
costs, which include payroll cost and personnel administration of lost
associates. Direct cost of recruiting new employees to replace the lost
employee, cost of induction and training
of new staff, opportunity cost of time spent by management trying to replace
lost staff. High workers turnover also affects the general output of the
organization (Ashibogwu, 2008).
Poor salary and
lack of fringe benefit is another problem occasioned by inappropriate
management style in the Nigerian hotel industry. Some employers rather than
provide suitable means by which their staff are motivated and retained for
effective job performance, employees are continuously deprived of their
physiological need through poor salary, delay in the payment of salaries as
well as lack of fringe benefits and these have behavioural consequences on
their efficiency in the workplace (Agba, 2013).
Poor adoption of
participatory management style among hotel managers is responsible for inflexible
work hours, low morale, reduced productivity and lack of job satisfaction among
employees which has given rise to the adoption of supplementary livelihood by
workers even if it entails running down their organizations (Agba, 2013). This
negative trend threatens organizational effectiveness, growth and survival of
most hotel outlets in Nigeria.
Wrong management
style adopted by hotel managers can result in bad bureaucratic management
policies that do not support workers participation in decision making could
lead to employee‘s disappointment and seriously affect work productivity
(Northouse, 2010). Staff who participate in decision making have more feeling
of prestige, satisfaction, enthusiasm, sense of belonging, importance and
positive attitude to work. Staff effectiveness can be seriously affected in
hotels through poor management policies that hinder proper elevation of
associates (Agba, 2013). Communication gap between hotel managers and staff is
a challenge often encountered because of poor management style approach. Thus,
adequate communication flow between management and employees enhances
organizational job effectiveness. Poor dissemination of vital information
hampers integration among units and people in the work place or environment
hence; hindering goal attainment in the organization (Northouse, 2010).
Lack of staff
training constitutes yet another big challenge in most hotels in Nigeria
because of the low entrepreneurial style of management adopted by most hotel
owners. Training refers to a set of activities that enable an associate to
acquire more skills, knowledge and attitude for effective job performance
(Agba, 2013). Staff training assist newly appointed associates to make adequate
and timely adjustment to their new job environment. It is a way of appealing to
mobilizing and motivating employees to be more effective in their duties (Agba,
2013). Lack of staff training will stimulate and enhance the poor performance
of existing worker, it will hinder the employees from developing capabilities
which can promote the overall performance of the organization (Ashibogwu, 2008).
Improper use of
autocratic management style can result in lack of career development and
promotion in the work place which affects workers seriousness on the job thus
influences staff productivity. This is because a worker who is motivated
through career development would take his/her work very serious (Ofilia, 2015).
Similarly Ofobruku (2013) opined that too much time in one position may be
perceived as career stagnation and have an adverse effect on commitment and
staff productivity. Promotion (a non-monetary incentive) refers to advancement
of a worker to a high job, which is better in terms of responsibilities,
status, prestige and salary than the former. It is the up-grading of an
associate. Promotion is a way of recognizing and developing abilities of
associates for effective job performance.
To enhance the performance of workers, the income, promotion and other
benefits enjoyed by their colleagues in other profession must be assured.
Except this is done, the morale of such workers will fall, and this could lead
to high job turnover (Agba, 2013).
Unfavorable work
environment and poor service delivery leading to customer dissatisfaction is a
problem often experienced because of poor conservative management style and
approach. The work environment plays a significant role in workers output and
quality service delivery (Ashibogwu, 2008). The availability and prudent
management of the work environment determine the product and services of an
organization as well as its staff performance or effectiveness (Northouse, 2010).
When hotel managers refuse to pay attention to the environment where work is
done or neglect to make it comfortable, suitable and very conducive for the
employees to carry out their job efficiently this will go a long way in
affecting workers performance as well as the quality of service delivered to
customers.
Careless borrowing resulting in huge financial debt
can become a serious problem in most hotel organizations because of lack of
sound management style. A hotel with a high amount of debt can become
over-leveraged, meaning they have high fixed cost relating to financing and as
such, unstable (Agba, 2013). Large amounts of business financing can create a variety
of problems for a hotel organization. On the one hand, if the hotel outlet has
too much debt, its access to financing becomes constricted, before it can have
chance to complete its growth strategy. In addition, if a hotel establishment
has high amount of debt and revenue suddenly stalls, such as in a recession, it
may leave the business unable to fulfill its obligations.
Poor paternalistic management style adopted can result
in bad decisions about cost and pricing. Good management style adopted by hotel
outlet enhances effective costing and pricing in most hotel organizations.
Thus, Costing decisions are also affected by the finances of the company (Agba,
2013). When there is a recession or crisis, a firm formulates various decisions
in respect of cost for retaining sufficient profits and to avoid a situation of
bankruptcy. Business might look for elimination of unnecessary saving and
efficient methods for reduction in costs.
Lack of sound management style adopted by hotel
managers can also cause lack of proper cash budgets resulting in damaged
business relations, essential inventory and equipment shortages in the hotel
industry. Your business can come to a halt or your working capital management
may be jeopardized (Ashibogwu, 2008). If you do not have the essential finances
to cover short-term and long term expenses. Creditors can demand payments for
the items or services they have delivered to you at any time failure to meet
these demands can cause a big setback for the business. Preparing cash budgets
can help you forecast outflows of money and the amount of finances required to
meet these outflows.
1.3 PURPOSE OF THE STUDY
The purpose
of this study is to examine the management styles used in hotel establishments
in Edo State for organizational effectiveness. Specifically, the study;
- Identified
the various management styles used in the hotel industry in Edo State.
- Ascertained
the level of application of the identified management styles in hotels in
Edo State.
- Determined
factors that influence the choice of the identified management styles by
the managements of hotels in Edo State.
- Assessed the
role of management styles on organizational effectiveness among hotels in
Edo State.
1.4 RESEARCH QUESTION
The study sought answers to the following research
questions.
- What are the
various management styles used in the hotel industry in Edo State?
- What is the
level of application of the identified management styles in hotels within the
study area.
- What factors
influence the choice of the identified management styles by the management
of hotels in Edo State?
- What are the
effects of management style on organizational effectiveness among hotels
in Edo State?
1.5 HYPOTHESES
The
following hypotheses will be tested:
H01:
There is no significant difference in the mean rating of management styles and
organizational effectiveness in hotels in Edo State.
H02: There is no significant difference in the
mean rating of hotel class management style and organizational effectiveness in
hotels in Edo State.
1.6 SIGNIFICANCE OF THE STUDY
The findings of the study,
if utilized will be beneficial to the following individuals and groups:
The outcome of this study will enable hotel business
practitioners know various management styles and the extent at which they were
applied to hotel business practice. This
will help them to apply management styles that could enhance efficiency and
effectiveness in their business; hence ensure business sustainability. Managers
of hotel business will be enlightened via the outcome of this study on the
management styles that is mostly adopted and how effective they are. This will enable them apply same without
necessarily experimenting the process.
Thus, maximize organization efficiency and minimize waste of
organization scare resources.
The outcome of this study will serve as a reference
material for future researchers in the domain of management styles and
organizational effectiveness. This is because, the outcome of this study will
determine various management styles used in hotel industry, including their
correlation to organization effectiveness. In overview of this, scholars in
hospitality management, research institutions, lecturers and researchers will
find pieces of information in this study useful as a scholarly material in
their related research and studies, thus, expanding the frontier of knowledge
in domain of management styles and organizational effectiveness. Furthermore,
authors in the domain of hospitality management will be enlightened on the
usefulness of management styles to hotel business, thus motivate them to
research and publish books and journals in the area of management style at it relate
to hospitality business.
Non-professionals/Laymen in hotel business will
benefit greatly from this research work as it will provide them with basic
knowledge on the working relationship between various management styles and
organization effectiveness, including models capable of explaining correlations
among the various dimensions of management styles and effectiveness of hotel
organizations. This will equip them with
basic management styles they could apply should they have interest to venture
in hotel business practice in future.
This research work may be useful to the government of
Edo State as it will educate them on the correlation between management styles
and organization effectiveness; hence enable the government to formulate human
resources development policy for hotels.
Aside, policy makers for hotel sub sector in Edo State will be
enlightened on the relevancies of management styles to hotel business
sustainability, thus, could motivate the government to partner with relevant education
agencies on enhancement of hospitality management curriculum for schools and
colleges with relevant management inclinations.
1.7 SCOPE OF THE STUDY
This study
focused on the influence of management styles on organizational effectiveness
in the hotel industry in Edo State. The
scope of the study is limited to registered hotels in Edo State. This implies
that only hotels that are registered with the Edo State Ministry of Culture and
Tourism were studied. Registered hotels in the eighteen local government
headquarter towns in Edo State were studied.
This implies that this study evaluated the management styles used in hotel establishments
in Edo state for organizational effectiveness with emphasis on registered
hotels in the eighteen local government area headquarter towns in Edo
state. In addition, the scope of the
present study focused on both management and staff in hotels in Edo state. This implies that both management as well as
staffs were examined in this study.
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