Impact of Organizational Culture on Performance

This assignment investigates the influence of organizational culture on employee performance. It examines how different cultural factors, such as leadership styles, communication patterns, and values, contribute to or hinder employee productivity and job satisfaction. The analysis draws on scholarly literature and research findings to illustrate the complex interplay between culture and performance across diverse organizational settings.

The Developing Manager

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
1.1 Comparison between management and Leadership styles....................................................1
1.2 Characteristics of manager in organisation...........................................................................3
1.3 Communication process within organisation........................................................................4
1.4 Analyse organisational culture and change in a business organisation.................................5
3.1 How manager can lead and motivate the team to achieve goals or objectives of
organisation.................................................................................................................................7
3.2 Support of Managerial decisions in improvement and achievement of goals and objectives
.....................................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The hospitality industry is a vast cluster of businesses providing luxury services to
customers. It is focused on satisfying the customers by meeting their leisurely needs. Unique
feature of this industry is that it totally depends upon the discretionary earnings and leisure time
of its customers. With the span of time, consumers too have evolved and become peculiar about
quality of services they are availing. Hilton hotels recognized that a manger with leadership
quality & skills is critical for coping up with expectation of hospitality industry & for its long
term growth. Hilton is one of the largest and fastest growing hospitality companies in the world,
having more than 5200 properties across the world. This project on Hilton hotels is based on the
required characteristics that manager needs to possess in order to be effective leader who can
collaborate the efforts of all his team members and can inspire them towards working together in
one direction for achieving their ultimate goals. This study includes comparative study of two of
the most contradictory management styles i.e. autocratic & democratic leadership styles ,
comprehending an analysis of impact of change in organisation culture within selected business
units & aim & suggestions for improving managerial decision making.
TASK A
1.1 Comparison between management and Leadership styles
Definition of Autocratic Leadership Style: Under this style the power to take decision
lies within the hands of the superior.(David, 2011) He is the ultimate authority dominating the
entire staff who has to follow all the instructions, rules & regulation implied by their leader
without having a saying in any matter. It is suitable in organisation requiring fast decision
making.
Definition of Democratic Leadership Style: Democratic leadership styles is just opposite
of autocratic style. (Goetsch and Davis, 2014)This style is based on mutual participation &
respect between the leader & its subordinates. In this style member are motivated to participate
in decision making process & to give suggestions & ideas for doing a particular task. There is
delegation of authority & responsibility & the burden of completing a task is share by everyone.
It is best suited in private organisations.
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Basis Autocratic Leadership Democratic Leadership
Description It depicts dictatorial style of
leadership where power to take
decisions lies with the leader only.
It depicts participative leadership
styles where subordinates are
also involved by manager in
decision-making process.
Behavioural
Orientation
Autocratic style follows task
oriented approach aiming at
completion of work as soon as
possible
Relation oriented approach is
followed with the motive to built
harmonious relationship among
superior & subordinates.
Type of Theory
Followed
McGregor’s Theory X McGregor’s Theory Y
Communication It follows vertical communication
i.e. unidirectional from top to
bottom
It follows two way
communication I.e from top to
bottom and vice versa.
Motivation Negative motivation . People tend
to finished task due to fear of
punishments & threats .
Positive motivation . People are
inspired to give their best by
using motivational tools like
rewards & incentives.
Utility It is useful in organization where
quick decision making is required
Useful while taking decision on
complicated matters involved
definite skills .
Area of Application Applied in organisation comprising
unskilled & uneducated workers
like labourers.
Applied in organization
comprising well qualified and
experienced staff.
Hilton group follows the philosophy of 'the people's oriented' organization follows the
democratic leadership style. In applying this leadership approach the manager counts its
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employees in decision making process for critical matters related to the Hotel. This leadership
style proves to be beneficial for Hotel in many ways. As first of all ,it motivates the employees
by building up their confidence to take higher responsibilities and to give best of their efforts to
achieve organization goals , which is to give excellent services to their guests staying in the
hotel so as to attain customer delight. In addition to this, it also build the trust of employees in
the organization as the employees know that they are actually valued and appreciated by the
management. This results in creating a team of committed, dedicated and confident future
leaders.
1.2 Characteristics of manager in organisation
As customers forms the forefront of Hilton hotel ,it strives to work towards providing a
customer delight in all services demanded by them. Having leadership qualities for a manager is
of crucial importance to excel in services that are being provided to clients and also for progress
& profitability of Hilton. Thus it is of great importance for a manager to be well equipped with
following competencies & skills to be proficient & effective in his work.
 People Skills:- The cornerstone of Hilton hotel is people. Manager to be an effective
leader needs to recognize the value of interpersonal relationship based on mutual respect
& trust. Therefore it is a mangers skills that comes useful in maintaining amiable relation
not only between staff and guests but among all its members as a whole.
 Should be a visionary:- A leader is required to have a clear perspective about future
goals & strategies that are essential for achieving the ultimate organizational objectivs. .
(Singh, 2010) .It is a critical skills for a manger as it involves developing an
understanding with higher authorities,employees and customers & winning their support
& trust.
 Communication:- Being proficient in communication skills both verbal & written is a
key to be a successful leader. Being efficient with this skills helps manger to easily and
effectively communicate expected level of performance to his staff . It also serves useful
in calming down outraged customer in case of any complaints.
 Knowledgeable :- A leader to be figurehead for his staff needs to be thorough with his
field of work having knowledge of even the minute details related to the field. He should
also be aware of latest trends & technological updates so as to guide and instruct his
team members to enhance their knowledge .
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 Organized:- In order to deal with multiple tasks at the same time without facing any
difficulty it is requisite for a leader to be well organized . To accomplish this manager is
required to be proactive & plan work in advance with its shortcomings and their viable
solutions.
 Team Leader:- A manger needs to be an effective team player . They should make their
team realize the importance of working together in collaboration celebrating individual
as well as team achievements by keeping aside personal differences . Manger should take
initiative by dividing staff into teams with definite target to achieve within specific time.
This will help member so work together in cooperation avoiding each other mistakes &
falling into arguments .
 Should be fair & just:- Manager to be good leader should treat each employee equal
without being biased to any one in particular. He should not discriminate any employees
on basis of caste, gender, nationality providing them equal opportunity to grow &
develop. In addition to this he must be fair & just in behaviour giving respect to each of
company's worker.
Methods of communication used in Hilton hotel: Verbal: Most common form of communication and is implemented in direct manner. For
example, at the time of interaction with guest verbal communication is used in hospitality
sector so that direct sharing of thoughts can be made.
 Non-verbal: Widely used form of communication and is used to inform guest either
through direct or indirect manner. For example, sign boards are used to notify guests
about directions in hotels.
 Written: This form of communication is mostly used in hospitality industry in the form of
letters, notices, instructions, etc.
Below mentioned are few types of communication that are followed in hospitality sector:
 Face-to-face: One of the richest channel of communication and require physical presence
to practise. In hospitality sector it is essential to get instant feedback of your services
which can be achieved with the help of face-to-face communication.
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 Broadcast media: It consist of electronic media and require equipments such as TV,
radio, speakers, etc. It is generally used for addressing mass gathering. Hilton can use this
type to promote its brand among customers.
 Mobile communication: This communication is used when private and confidential
message is to be relied. Hospitality industry can use it in place of face-to-face
communication in order to save time and effort.
 Electronic channels: This type consist of digital applications such as email, internet,
social media, etc. It lack security therefore is not preferred for transmitting private
information. Hilton process its staff operations with the help of email and notify them
about essential information.
 Written messages: This type can be used when no verbal communication is necessary
and is generally used to cast memos, notices, procedures, etc. Hilton industry implements
this type to inform their employees about policies, procedures, descriptions, etc.
1.3 Communication process within organisation
Communication is consider as a significant part of Hilton hotel as it bridges the gap
between people in this case between customers, employees and manger.(Speroff, 2010) Be it
face to face verbal communication with guest at reception or otherwise or a telephonic or email
communication both communication skills has a important part to play in Hilton hotel. An
effective commination system helps in enhancing a customer's experience as it assures that they
are listened fro their concerns and their feedback is equally valued. The process communication
is considered to be efficient and successful only when the receiver to whom message is sent
understand the actual message that the sender wants to deliver. The communication process
followed by Hilton hotel is as follows:-
Sender must have an idea :- The process of communication initiates with sender who has
some idea or information to communicate. The sender needs to be specific and clear about the
message and to whom it need to delivered. A manger should have ability to evaluate
effectiveness of different source of sending message and ascertain their impact on receiver. For
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instance an announcement through email will be more readily receptive than putting it on a
notice board.
Sender Encodes Idea in Message:- This step involves encoding i.e. converting message idea
into meaningful information by using appropriate words, symbol, tone of voice, or body
language. One of the obstacles faced in this step of verbal communication is that a single word
can be perceived differently by different people.(Wanjiku, 2014) Therefore senders need to be
very careful about the communication skills, background, perception of receiver.
Medium for transmitting message:- It includes the channel through which message
travels from sender to receiver. A sender can opt for any available medium like verbal through
spoken words, electronic like computer, fax, physical medium like letter , report etc. depending
upon the urgency to deliver the message as well as the location of the receiver. Anything
interrupting the message to be transmitted to receiver is called noise which hampers the context
of the original message resulting in receiver's inability to understand the context of it leading to
annoyance .
Receiver Decodes Message:- This step includes receiver task to translate the delivered
word, symbol sent by sender into meaningful information. Doing so if receiver fails to
understand the reference of sent message it means communication is not successfully completed.
Feedback:- Feedback is the response given by receiver to sender for the message sent . It
is of vital importance as it helps sender to evaluates the effectiveness of sent message and to
know weather message is received and understood by the receiver in the same sense as
perceived by sender.
1.4 Analyse organisational culture and change in a business organisation
Organisational culture is defined as assumptions, underlying beliefs, ways of interaction,
values and behaviour that contribute to unique social and psychological environment of an
organisation. It basically involves experiences, expectations, philosophy and values that guide
behaviour of a member which is expressed in member as self- image, interactions with outside
world, inner working and future expectations.
Culture is basically concerned with customs, beliefs, attitude, written and unwritten rules
that have been developed over a period of time. Culture of an organisation also include business
vision, mission, values, norms, system, brand, language, beliefs and principle of members, habits
and assumptions. This affects the way people and groups interact with each other, with
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stakeholders and with customers. Ways in which organisation conduct its business, treat its
employees and customers. (Fink, Dauber and Yolles, 2012)It also influence how power and
information flows within the company and how much employees show their commitment toward
their company. Good environment affects productivity, profitability and performance of firm.
Leaders or top management are mainly responsible for creating and developing healthy
organisational culture so that employees can perform their best and feel satisfied with their work.
Relation of leader and culture is not one- sided. While leaders are main architect of healthy
culture whereas an established culture influences what kind of leadership is possible in an
organisation.
Organisational culture is not constant. It keeps on fluctuating with different situations.
But sometime employees get used to previous culture and are unable to adapt to new culture.
Then its the duty of leader to show benefits of change and make possible activity to make their
employees comfortable. There are few guidelines for culture change and they are mentioned
below:
 Formulate clear vision: This vision gives intention and direction for future change in
culture.
 Top management commitment: The head of organisation must favour culture changes
and implement those changes within firm.
 Modification to support organisational changes: Identification of areas where changes
are required so that new modification can be implemented.
Change in business organisation involves planning of new strategies and implementing
them in order to maximise profits. In case of hospitality industry like Hilton, changes in services
are mandatory to increase satisfaction level. Changes occur with respect to feedback of
customers. Managers should ensures that these changes should be implemented so that same
problem does not arise next time. Hilton is known for their hospitality service which means,
providing world class services to customers which become an unforgettable experience for them.
This company provide best hospitality to its customers that is why they have to be very specific
and strict with their services and should ensure that customers are satisfied. They should ensure
that all needs of clients are fulfilled with utmost perfection.
Organisation implement changes to reach desired future state from its present state.
Managing those changes minimise employee resistance and maximise effectiveness of change.
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Managers should plan their objectives strategically so that they can adjust and adapt with
changes which is occurring outside the organisation.
3.1 How manager can lead and motivate the team to achieve goals or objectives of organisation.
Motivation is referred to stimulate people to perform better in their tasks so that they can
achieve business goals and objectives. It is necessary for managers and leaders to initiate that
zeal in employees so that they can put their best efforts in their work. To motivate employees,
they can give rewards and benefits to best performer, provide them with best compensations,
promote them with desired promotions and transfers, etc, these all activities enhance the desire to
give out best for their company. Manager is a person who is responsible for controlling,
managing, directing and administering staff or group of members of an organisation. They assign
work to members and track all performance done by workers. They act as a representative of
their firm so they have to be efficient in all areas of organisation for better representation of
company in front of others. Managers which are in hospitality sector have some additional skills
which are required to work in this area.(Voon, 2011) Those skills include commitment towards
their customers and check whether they are satisfied with services or not, another skill is
problem- solving, how much efficient a manager is in solving customer problem within limited
time. They can provide with innovative and practical solutions to their customers so that they can
encounter their problem more effectively. Successful managers work well with team members
and achieve business goals and objectives in effective manner within specified time. Above were
some characteristics which should be present in an efficient leader.
They motivate their team members and other staff so that they can achieve business goals
with the help of available resources in effective manner. (Parmelli, 2011)Hilton have successful
managers which support their employees at every step and solve their problems as much as
possible. They provide with necessary training to employees if any candidate is encountering any
problem with the work. Managers also reward best performer which motivates other employees
to work better in their assigned tasks. They never differentiate between employees and
understand their needs and wants and do possible things to satisfy their employees. Managers are
only responsible for making work environment healthy where there are good relations between
employees and with employers. Following are some motivational theories
They also provide them with necessary compensation and benefits by which employees
feel satisfied that their work is being praised and appreciated by mentors.(Henderson, 2010)
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These benefits initiate that zeal in workers to improve working and maximise outputs for their
company. Manager should also build risk or hazard management system which will encounter
possible risks or hazards occurring to staff as well as to organisation.
Efficiency of a manager is measured when he is able to get work done by its members
rather than doing all alone. For that they assign work to employees and guide and direct them
with all necessary details of the task so that it become easy for workers to execute task in best
way. Every member of an organisation work together to achieve business goals and objectives
within specified time limit and satisfy their customers with all products and services. Manager
must review company's financial, budgetary and production goals on regular basis and formulate
effective strategies to maximise their profits and gain competitive advantage over others.
(Montgomery, 2011) This is how managers plays an important role in leading and guiding their
employees for achieving business goals and objectives in best way possible. Though proper
communication between employees and superiors, managers can motivate their employees in
effective manner. Different form of communication are mentioned below:
 Verbal communication: In this mode of communication, managers speaks verbally and
employee listens to what their managers is speaking.
 Written communication: In this, manager communicate with employees through writing
method. Whether he provide their instructions in written format.
 Non- verbal communication: In this, managers observe their employees and infer
meaning.
By applying this technique, management of the referred organisation can create better working
environment where all the employees are motivated to perform well.
3.2 Support of Managerial decisions in improvement and achievement of goals and objectives
Top level management formulate managerial decisions which helps in achieving business
goals and objectives. These decisions decide whether the company will earn profit or loss its
market share. Every plan require potential of every worker employing in organisation. Leaders
become successful on the decisions they make. Suitable research and analysis should be done
prior making any decisions as it will help in making effective strategies.
In hospitality industry like Hilton, decisions are primarily based on customer's
requirement and then suitable plan is formulated. Whatever plan they make will ensures
customer behaviour towards their company. These industries have ultimate goal which is directly
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related to satisfaction of clients and to make loyal customers which prefer them first against
others.(Kaplan, 2011) Continuous improvement in goals and objectives are necessary to achieve
ultimate vision. Talented managers, leaders and staff ensures accomplishment of objectives in
best manner. Proper guidance by leaders ensures better working by employees. If any problem
occur then it can be encountered with best possible solutions. Company should formulate
alternate strategies which can be used at the time of emergency or in case of failure of any
decision. This helps in minimising loss incurred to company.
Managerial decisions should be made when top level management have enough time to
think and analyse all possible factors which could be crucial for decision making. (Cadden,
Marshall and Cao, 2013)If there is requirement of any improvement or change in previous
strategy, then possible steps should be taken as soon as possible to implement that change.
Importance of managerial decision in achieving business goals are:
 It gives an exact idea of goals which has to be achieved.
 Ensures flow of information within organisation.
 Every workers are assigned with respective tasks.
 Decision gives definite direction to accomplish the goals.
 Helps to prevent from loss.
 Prepare the organisation with possible risks.
 Better utilization of available resources.
 Help in maximising business growth.
 Increase in efficiency of workers.
 Facilitates innovations.
 Increase employee motivation and morale.
Above are some importance of managerial decisions which helps in achieving desired
business goals. Whole operation of management, i.e., its day to day function is rightly built on
managerial decisions. Sometimes decisions are made under guidance of experts and experienced
professionals, which can provide with best possible decision for a particular situation.(Morello,
2013) They can also identify area for improvement and implement changes to make them better.
Company can also think of innovative ideas where they can expand their business which
in turn maximise their overall income. Managers should be efficient enough to take last minute
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decisions at the time of emergency.(Renz and Herman2016) Success of a leader and manager is
decided on the basis of their ability to formulate effective decision in given time limit.
CONCLUSION
The above report had concluded that hospitality industry such as Hilton are known for
providing luxury and comfort to clients. Various management theories and styles helps them to
achieve desired objectives of organisation. Leaders and managers ensure that every workers is
dedicated towards their task and accomplish it within specified time limit. Proper decisions can
be made with the help of talented team to maximise productivity and profitability of company.
Managerial decisions encounter possible risk and hazards which can affect company's
production. Employee morale is boosted due to proper functioning of organisation and encourage
them to work better for company.
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REFERENCES
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