Analyzing Leadership, CSR, and Social Media in the Hospitality Sector

This report provides an in-depth analysis of leadership styles, organizational responsibility, and the impact of social media within the hospitality industry, using Intercontinental Hotels Group (IHG) as a primary case study. The introduction highlights the significance of hygiene, contactless payment ...Read More

Emerging Trends in the Hospitality Industry
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
P1. Leadership styles within an organization..............................................................................4
P2 Application of organizational responsibility and responsible leadership in IHG hotels group
......................................................................................................................................................6
P3 Benefits of corporate social responsibility to the organization and society...........................9
P4 Evaluate company's social media practice and implications for better customer experience
....................................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Hospitality industry is the service industry which include food and drink services,
transportation, lodging etc. it includes hotels, bars and restaurants. In this pandemic times proper
hygiene and safety is taken care by hotels so that their guests can get better experience without
compromising on health. Hotels also come with the contactless payment option of payments via
online or card so that more contact can be eliminated. Intercontinental hotels group Plc is a
multinational hospitality company which have headquarters in England. Company have presence
over global level and is also listed on London stock exchange. The hotel is known worldwide for
the best quality of services provided by them. Company provide proper hygiene standards and
come with loyalty scheme. To attract more customers company comes with discounts so that
more people visit hotel to avail the discounted services. This study will discuss different
leadership style in the organization and also which leadership style is chosen by the organization.
The application of organizational responsibilities and responsible leadership on the organization.
Further, examine that how CSR give benefits to the hospitality industry, government and society.
This will also discuss social media practice of IHG hotels and implications for better customer
experience.
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MAIN BODY
P1. Leadership styles within an organization
All leaders which are present in the market have a unique identity and operations for
themselves which is going to make the performance of the company be higher. Situations which
rise in a company is not predictable and not the same at all times therefore the leaders must be
flexible enough to make sure that they are using the right methods and styles in order to be able
to get a higher brand value and image in the market. The competition in the hospitality industry
is high which is why it is essential for the organization to make sure that there are right actions
and methods which are being used so that the standards of the company are well maintained.
 Autocratic style
Autocratic style is used by leaders so that the employees follow them. There is no say of
workforce in the decision-making which is going to impact on the performance of the overall
operations of the company. There must be good control and monitoring of the leaders to be able
to implement this factor so that the situations which rise can be managed which is going to be a
great factor for the overall operations (Chung and D’Annunzio-Green, 2018). There are a lot of
crucial decisions which have to taken by the leaders of the company and without having this
factor the working is not going to be effective for a long run which is not a good factor. A lot of
changes have to be done without the employees agreeing to them which requires this kind of
style for the leaders so that there is going to be higher working and productivity which the
organization can have.
 Democratic style
Democratic style is also known as participative style because in this style the leaders
make sure that the employees are giving in their opinion as well. Employees must give their take
on the decisions so that the implementation is not going to have a lot of conflicts and issues
which may rise. It is essential for the company to have sure that they have the right methods and
techniques to be able to communicate effectively. Trust and benefits of the company with the
employees is going to be better and that is going to make the improvement be present which is
good for the overall development of the organization (Altinay and Taheri, 2019). Team spirit and
motivation in the employees is going to be present and so is acceptance which si going to make
sure that all the employees are giving in their personal best. In a hospitality industry it is essential
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to make sure that there is good working and effective working and productivity which is going to
make the standards and reputation of the company be higher.
 Laissez-Faire style
The leaders in this style leave the decision on the employees itself. The employees have a
good communication in which they are aware of the objectives and targets in front of them but
they are not given instructions which is going to make the decision-making process be affected.
Time management is very essential in a company and good planning is going to make the
company have higher operations and standards for themselves in the market which is going to be
a great factor for the company to have overall (Iglesias-Sánchez and et.al., 2020).
 Coaching style
In this approach the leaders develop the employees which are present in the company so
that there are going to be higher development which can take place. There is a lot of potential for
this approach which is going to be a great factor and make the performance of the company also
be better and this style is going to make the doors for the people be open which is going to make
the sense of direction be higher making the operations be improved. Workforce is going to be
capable enough to make sure that there is going to be higher operations and functioning which is
going to be present (Chandran and Abukhalifeh, 2021). Coaching is going to make the
employees be capable enough and also have the right skills to be able to compete in the market.
 Transformational style
In this style the leaders inspire and motivate the workforce in the organization to be able
to give in their best so that the changes are going to come in effectively and also make the
success of the company be higher. High chances of getting positive environment in the company
which is going to make the leadership factor be higher and make sure that the employees are
being able to match the standards and expectations of the organization overall which is going to
be a great factor for the company (Mmutle, 2017). This style is going to be risk taking and
thoughtful for the leaders to have which is going to make the working of the organization be
present which is making the standards of the company be higher. In a hospitality industry there is
a lot of competition which is coming up and that has to be controlled making the organization be
able to operate effectively so that there is higher outcomes.
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IHG hotels group plc is using democratic style of leadership which is going to be a great
factor for the organization to have which is going to make the satisfaction and improvement in
the company be present. Workforce of the organization are included in the decision-making
which is going to impact the performance level of the company so that there are better decisions
and functioning which are going to be present (Köseoglu and et.al., 2019). Competitive
advantage is gained by the company in order to be able to have a higher standard and brand
image for the organization which is going to make the reputation of the company be higher and
make the overall development also be present. Motivation in the workforce is present which is
making the company be able to achieve their objectives and goals.
P2 Application of organizational responsibility and responsible leadership in IHG hotels group
Organisational responsibility:
The responsibility that an organization have so that they can deliver effective
performance is called organizational responsibility. It is essential for every organization whether
large or small and also necessary for survival of the company in this competitive world.
Organizational responsibility helps in leading ethical actions (González-Masip, Martín-de Castro
and Hernández, 2019). Organization is also responsible for the stakeholders, stakeholders are
those who are interested in company's objectives.
Responsible leadership:
The complexity is increasing in business on daily basis and company also have to face legal
regulations resulting in difficulty while leading with responsibility. Leaders of the company have
many responsibilities, as they are equally responsible with the environment and with
stakeholders. When the leader is responsible then only they can take effective decisions which
help in achieving company's objectives.
Application of these concepts on IHG hotels:
Organisational responsibility:
anticipating the future:
IHG hotels anticipate changes in terms of customer choice and demands and apply change where
it is required like in service technology etc.
Continuous investment:
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Continuous investment is necessary in various areas like management, staff, product
development, production, technology, quality improvement, customer well-being etc. is the
responsibility of the organization to take care about everything.
Training and development:
Training and development is required to give to staff and management so that they can perform
the job effectively and that can help to achieve company's goal (Zeimers and et.al., 2019).
Organizational development:
The development is needed timely in terms of knowledge, customer satisfaction, attitude, skills,
expertise etc. and development is must so that company can take competitive advantage.
Open attitude:
IHG believe that company should be open about their performance with stakeholders because if
their will be any uncertainty then people will respond quickly.
Ethics:
It is the responsibility of organization to follow ethical practices to secure the job of their staff
and running the profitable business by maintaining or increasing the customer base.
Responsible leadership:
combine responsibility with innovation:
Leaders have many responsibilities so it is required that they opt for innovation as well as
innovation is required for company to beat the competition and increase the market share
(Sorour, Boadu and Soobaroyen, 2020). Companies who go for innovation resulting in high
profits and give good returns to their shareholders.
Adopt leadership model as per situation:
IHG hotel leaders make sure that they apply leadership model according to the situation as
leaders cannot apply same model in every situation. Such model should be applied which is
helpful in increasing the organizational performance.
Mission and purpose:
Leaders who are responsible know the mission of the company and work accordingly, and they
apply their leadership skills in such manner that they purpose of company can be accomplished.
Insight:
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It is the duty of leaders to find out those paths which can lead to success by focusing on
continuous learning and acquiring knowledge which is essential for completion of task.
Implications on private sector:
Private sector have many organizational responsibility as their aim is to earn high profits, so they
carry out responsibility efficiently so that goals can be achieved. They have responsibilities
towards their workforce as well (Ko, Jang and Kim, 2021). Providing staff good working
environment so that they can comfortably work because if employee treated well then that will
increase motivation which will increase their productivity.
Leaders are responsible to carry out effective leadership, private sector give training to leaders so
that they work with skills and knowledge which are build in the training. Company give
responsibilities to leaders so that they can take decisions where it is required as for every
decision they are not entitled to take permission from management. Responsible leaders are also
one who can make the done by the team members efficiently.
Implications on public sector:
Organizational responsibility of public sector is related to public welfare but not neglecting the
profit of the company. They take care about employees and also give them extra benefits. Public
sector is responsible to think about public welfare, so they cannot carry any activity which will
impact negative on public welfare. Apart from public, public sector is responsible for their
business operations aslo. They are supposed to do business which can bring growth and revenue
in the organization.
The leaders of public sectors are responsible for the work assigned to them. They also have to
ensure that when they are making work done by leaders then the aim should not only profit but
also about public welfare. Leaders are also responsible to listen to the problems of team members
and also solve it (Heikkurinen and Mäkinen, 2018).
Implications on third sector:
Third sector are those which include social organization, charity etc. which work on the well-
being of people and also contribute in economic growth. Their responsibilities are completely
entities to society. Their aim is to bring improvement in the society without taking care about
profits. They work on social issues like global warming, providing health services to old age
people etc. these organization support communities at global level and local level.
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Organization give training to the leaders is such a manner that when any task have to be achieved
then they have to focus only on society and not only profits. Leaders should also include team
members in decision-making process so that they can give creative ideas to do the task.
P3 Benefits of corporate social responsibility to the organization and society.
Corporate social responsibility:
Corporate social responsibility is the activity which is done by the business which helps
them to be socially accountable with the stakeholders. Through CSR programs society gets
benefit from business and business also get brand recognition (Wickert, Vaccaro and
Cornelissen, 2017).
Benefits of corporate social responsibility(CSR) to IHG hotels:
Corporate social responsibility help organization to improve the image of company in the eyes of
society. As society think that company is thinking about then, so they get satisfied with them. It
also helpful in increasing the sales and profits of the company because when society will get
happy with the company then they purchase products or services from company as they will
think that by purchasing goods from company they are helping company in doing social
responsibility. IHG hotels has experienced that doing social responsibility is helpful for them in
increasing brand awareness and getting customer loyalty. As hotel sector provide services and
services are intangible in nature, so they are evaluated on the basis of quality. The goodwill
which is created by the business by doing social activities make the brand image stronger, create
differentiation. Through which company can take competitive advantage by providing
sustainable services.
Company also support social issues which enhances customer loyalty in the industry. When
company take social initiatives then for such organization customers are also ready to pay high
prices for premium products. Customers started doing word of mouth promotion for the company
(Dawson, 2018). With the help of CSR activities company can attract and retain workforce. As if
company will do social responsibility then they have good image in the market which results in
candidate willing to work with the organization and also retaining more employees because if the
company is good and have high reputation in the society then why any employee will think to
leave the company. Thus resulting in low employee turnover rate. When employees get job
satisfaction then they will get motivated and work with the full potential. Company also do
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diversity management program that help in improving the reputation of company and getting
financial benefits.
CSR has become essential for work system, employees also contribute in this by volunteering
their services. IHG should do more CSR work which will not only give return on investment but
brings positive change into the society. Even some companies in hospitality sector use CSR as a
marketing tool which can give adverse effect to the company like loss of credibility, loss of trust
etc. company should also communicate about their corporate social activities by publishing
information of their CSR on their websites. Company has also said that they will focus on
reducing energy and water consumption which will result in saving of energy and water which
will give benefit to the society as the company saving over energy can be used by them
(Figueiredo, 2017). Company should also educate their employees to conserve natural resources
and hotel builders should also take initiatives for green hotels.
Benefits of CSR to government:
Government are now implementing CSR into the policies so that both public and private sector
can adopt social practices and consider this as a responsibility. If company do social
responsibilities then government support those company's because they are contributing in the
well-being of society and it is also the objective of government to serve the society. Government
is too serious about CSR that they monitor the CSR activities of company. Government has also
made legislation which emphasize on commitment of company towards the environment (Mousa
and Puhakka, 2019).
Benefits of CSR to society:
CSR means when company take interests in social issues rather than only concern with profit
margins, so that business should operate sustainably. When company carry any social
responsibility then they should inform about this to the consumers as there is no need of CSR if
customer acknowledgement did not get. When company do CSR activity then they make
connection with the society. If company want to contribute into the society then CSR is the best
practice. Society gets benefit when donations and charity is done by the company. IHG
participate in education program which can give benefit to the society. Hotel also provide free of
cost food to the local homeless people.
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Company should start using renewable resources which will cost low to the company and also
contribute in the clean environment. When business contribute in the society then company is
getting benefits out of that. As company's sales got increased because customer started
purchasing from them which will bring customer loyalty. Company also get the opportunity to
get more capitals more investors get attracted towards the company because of the CSR impact.
Society enjoys development which is done through CSR activities by company (Haque,
Fernando and Caputi, 2019). When organization involve in the problem of local community then
will create better surroundings in the society. When community finds that company is doing
social activities then everyone feel safe and corruption decreases. If company will provide good
quality of products then it will not only give benefit to the company itself but also the society.
When the CSR regulations are followed by the company then at the production stage all defects
are eliminated thus lowering the complaints and increase customer satisfaction.
P4 Evaluate company's social media practice and implications for better customer experience
Social media practice of IHG hotels are:
Company use social media for marketing purpose as they know the power of social media
and doing promotion via social media is the cost effective technique as large audience can be
targeted through social media easily (Jacobson, and Hernández-García, 2020). Social media is
emerging and the users of social media is rising day by day. So every company is taking
advantage of social media because it consumes less time for advertisement. IHG post on their
social media platforms regularly so that customer can get regular updates and also it creates
brand recognition. Facebook is used by company because on Facebook there is availability of
people of every age group and on this platform company can easily add contact details and
through Facebook business add can be given easily because with help of this app company can
run advertisement and can target only those audiences which actually company wanted to target.
Customer can visit on Facebook page of company and can read reviews of other customer.
Positive reviews will help IHG hotels in getting more customers.
Facebook have separate blog where company can write articles about their services or new
launch services which help in getting new customers. Social media help the organization to
communicate about safety to the customers. In the situation of covid 19 where hygiene and
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safety are vital so company can inform their customers that they are maintaining proper hygiene
and safety standards so customer can visit and take their services.
Company believe that such content should be created which can convert the customer into sales.
Attractive content should be posted by companies so that customer get tempted and make
purchase, this will help in increasing company's sales and revenue (Kwayu, Lal and Abubakre,
2019). When company posts image then should post good quality image which increase
customer engagement. Company can also go with live option, in live company can connect with
audience easily as audience can see company and their queries can be easily raised. Live help
company to make announcement for new products and services if they are coming with and it
helps customers to know more about the company and company can also know the demand of
customers. It can say that social media is blessing for the company because through this easy
advertisement can be done. Social media is modern marketing technique and is cheaper than
traditional marketing technique which are done through TV, newspaper, radio etc. as these
require huge investment.
Company use social media to answer all the queries of customers. Here company can improve
their relations by solving all the customer issues. Through social media like Facebook, Instagram
and twitter customer can get also give feedback about company which will help the company in
getting good customer experience (7 ways social media can improve customer satisfaction.,
2021). IHG hotels also use twitter when they want to interact with customers in real time. As
company says that whenever any problem will arise, customer can tweet about the problems on
the company's twitter handle so that company can give immediate support to them. Company
have effective team which go through comments done on any post so that they can know about
preferences of the consumers. Whenever company come with any new services they post
attractive videos or images on social media so that can able to attract more customers. Company
is using modern method of marketing which include marketing through social media over
traditional marketing techniques which are TV, radio, print media etc. traditional marketing tools
are expensive for advertisement and also outdated but when company use social media then they
can do marketing effectively and in less cost and also get quick response from consumers
(Vinerean, 2017).
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Social is used by large audience so it will be easy for the company to target the audience. It is
useful for companies to do promotions. Through social media company can also promote their
own website which will help the customer to buy directly from company's website who want to
make online purchase. This will help company in increasing sales through online which will
generate more revenue. Company can also use social media to convert the negative experience
into positive experience. Customer views should always be acknowledged even if the company
disagrees with it. Through social media company can convince customers to buy their products
and services because such attractive posts are done by the company. When any customer give
negative comment for company then company should not treat that as an insult rather than
should take as opportunity.
Company can apologize if customer has bad experience or can give offer for discounts in the
future as the bad service compensation. Twitter is also extensively used by the company because
nowadays twitter is trending so company can get huge traffic over it. So this benefit is taken by
the company that is why company is always active on twitter. Twitter also helps to know the
competition in the better way and market trends can also analyzed. Company should also know
that the service experience which the customer is getting can affect the customer's buying
decisions. If good services are provided by company then they will purchase again and if
customer get bad experience then they will not make repetitive purchase (Afsar and et.al., 2020).
CONCLUSION
Through this report it can be concluded that IHG is a high class brand in hotels which is
known for the luxury services provided by them. Report has analyzed various leadership styles
and democratic leadership style is chosen for company because company believe that employees
should get democracy to take responsibilities which will increase their productivity. Two
concepts which are Organisational responsibility and responsible leadership has applied on the
organization. Every organization whether public, private or third party is entitled with some
responsibilities. Examined how CSR give benefits hospitality industry, government and society.
Social media practice of company are also evaluated which give better customer experience and
satisfaction.
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7 ways social media can improve customer satisfaction., 2021. [Online]. Available through:
<https://www.cio.com/article/2984024/7-ways-social-media-can-improve-customer-
satisfaction.html>
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