Leadership and Organizational Responsibility in Hospitality: Ace Hotel

This report delves into the emerging trends within the hospitality industry, using Ace Hotel as a case study. It explores various leadership approaches, including democratic, autocratic, and laissez-faire styles, evaluating their advantages and disadvantages within the context of a hospitality business. The report critically examines organizational responsibility and responsible leadership, discussing their implications across private, public, and third-sector institutions. Furthermore, it analyzes the impact of social media on hospitality operations and corporate social responsibility. The report recommends a democratic leadership style for Ace Hotel, emphasizing its potential for decentralization and long-term strategic advantage. The analysis highlights the importance of ethical behavior and responsible leadership for achieving sustainable success and gaining a competitive edge in the hospitality market. The report concludes by emphasizing the critical role of leadership and responsibility in driving efficiency, effectiveness, and productivity within the hospitality industry.

Emerging
Trends in
Hospitality
Industry

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Approaches of leadership........................................................................................................................3
Organizational responsibility and responsible leadership.......................................................................5
Corporate social responsibility................................................................................................................7
Impact of social media on hospitality business.......................................................................................9
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Hospitality industry is a broad category which includes services like lodging, food and
drink service, event planning, theme parks and other recreation services (Bandyopadhyay, 2016).
This industry serves a lot of customers and clients every year. This industry is a fast-growing
industry with a lot of scope in the future. There are many emerging trends in hospitality business
which can be used by the businesses for bringing more efficiency in their work and attracting
more customers. If they implement these trends then they can easily maximize their profits by
reducing costs which will give them a strategic advantage in the future. This report is based on
Ace Hotel which is located in London, United Kingdom. In this assessment, focus will be made
on the demonstration of understanding of leadership approaches in hospitality industry, critical
reflection on concepts of organizational responsibility and responsible leadership. Additionally,
relationships between businesses in hospitality industry and impact of social media on its
operations will also be discussed as a part of this project.
MAIN BODY
Approaches of leadership
There are different approaches of leadership which an organization can use. In hospitality
industry different types of approaches are used for the purpose of leadership (Bore and et.al.,
2017). These approaches have been discussed in the context of Ace Hotel as follows-
Democratic approach- In this approach, a leader acts in a democratic manner and
involves the employees in the decision-making process within the organization. Thus a
decentralized approach is followed in a hierarchical organization. As Ace Hotel is a big hotel it
can be used by its leaders so that various decisions can be taken with ease within the hotel.
Advantages-
 This approach can easily create satisfaction among employees as it allows them to be a
part of decision-making process and thus can develop their skills, abilities and
competencies.
 This approach can lead towards decentralization of authority in the organizational context
which can be quite good for the organization as it will lead to clarity in performing
various types of tasks.
Disadvantages-
 This approach can lead towards reduction in efficiency as certain decisions which are
taken by employees can be wrong in the organizational context.

 This approach can lead towards problems in creation of accountability as it would be
difficult to fix the accountability for the work done by different people within the
organization. Thus this may impact firm’s prospects in the long-run.
Autocratic leadership- Autocratic leadership is a type of authoritarian leadership in
which the entire authority to take the decisions rests with the leader at the top of the
organization (Chen and et.al., 2016). There is no involvement of employees in the
decision-making process. In the multi-cultural context of hospitality industry this
approach can lead to quick decisions but will also impact the creativity of employees.
Ace Hotel’s managers can adopt this approach as this will lead to quicker decisions but
will also create autocracy within the organization.
Advantages-
 It helps the mangers in quick decision-making which can be quite beneficial within the
context of an organization. It is so because quick decision-making can increase efficiency
and effectiveness easily.
 It establishes a clear line of control and authority, responsibility and accountability are
clear in the organization. Thus it helps in clear division of tasks which leads to higher
productivity.
Disadvantages-
 It does not develop the decision-taking abilities in the subordinates and thus they lack the
skills and abilities required to take the decisions.
 It leads to a complete centralization within the organization which can lead to leader
taking most of the decisions and this can hurt the motivation and morale of the workers
within the organization.
Laissez-Faire leadership- In this style, a leader offers free rein to the subordinates and
monitors the proceedings from outside (Dzia-Uddin, Hashim and Isa, 2018). This can
lead to the development of leadership ability within the subordinates of the firm. This
style is quite good for hospitality industry where multi-cultural context is present. This
allows the employees of different culture to intermix with each other. This leads to
sharing of ideas and taking of certain decisions which can be highly beneficial in the
context of an organization. This style can be adopted by the leaders of Ace Hotel as this
will lead to development of leadership ability of the workers of the hotel.
Advantages-
 This leadership style leads to development of creative and decision-making skills of the
workers as they are empowered to take certain decisions by themselves in the company
(Zheng and Forgacs, 2017). This enhances their efficiency level.

 This leadership style allows for decentralization within the processes of the company as
hierarchical structure is followed in this style (Filimonau, Krivcova and Pettit, 2019).
Thus this leads to quicker decision-making in the organization which can be quite
beneficial for the purpose of acquiring long-term strategic advantage within the market.
By following the ideas given by some of the workers, the enterprise can be highly
benefitted as many of these ideas can increase its profits in the long-term.
Disadvantages-
 There are more chances of employees making errors and mistakes in their work as there
is no superior who can monitor their work. This will ultimately impact the overall
efficiency, effectiveness and productivity in the entire organization. Thus, profits of the
enterprise can also be affected in the long-run due to such errors and mistakes.
 Some of the workers may not do the work properly as the superior only guides them from
the outside in important matters. This may lead to workers becoming casual about their
work which will impact the operations level within the organization. When monitoring of
the work done by the subordinates is not done they become highly casual about their
work and this can hurt the prospects of the organization both in the short-run and the
long-run.
Justification- Ace Hotel is a five star hotel having multiple departments like guest
services, housekeeping, front office staff, food and beverage department, maintenance
department etc. it is recommended that it must use democratic style of leadership. If the
management of the hotel chooses this style then it will lead to decentralization within the
processes and functioning of the hotel. The leader will take only the important decisions
and the rest of the decisions can be taken by the subordinates easily. Thus this will lead to
quicker decision-making along with maintaining of control by the leader over the
operations of the enterprise. Thus this will help the organization in achieving sustainable
success in the long-run. This will help it in achieving a distinct strategic advantage.
Organizational responsibility and responsible leadership
Organizational responsibility and responsible leadership are necessary if an organization
has to succeed in the future time period (Franzoni and Pelizzari, 2019). Both of these concepts
are followed within Ace Hotel. They have been discussed in the context of Ace Hotel as follows-
Organizational responsibility- Organizational responsibility means ethical behavior
within the organization while the business is conducted. It is necessary in the managers if they
have to take business to new heights of success. Organizational responsibility is also created
within Ace Hotel and its operations. Its implications are as follows-
Private sector institutions- In private sector institutions, organizational responsibility is
created and has to be followed within the organizational hierarchy (Gudkov, Dedkova and

Dudina, 2018). The responsibility is at the lowest at lower-level management and is at the
highest at higher-level management. Thus, in private sector institutions organizational
responsibility has a big role to play within the context of an organization.
Public sector institutions- In public sector institutions, organizational responsibility is
created and needs to be followed within the hierarchical structure (Hua, 2016). Responsibility is
created according to the tasks assigned to workers in the enterprise. Every worker has the
responsibility for the work done. Also it is the responsibility of the employees within these
institutions to display ethical and moral conduct. Following of ethics forms an essential part of
fulfillment of organizational responsibility. This will lead to creation of a strong work culture
within the organizations.
Third sector institutions- These types of institutions include registered charities and
other organizations such as associations, self-help groups and community groups. Like all the
organizations organizational responsibility is also followed in them as accountability has to be
created for the tasks performed and the work done by the members of these institutions. However
they are independent from the government and do not work for earning of profits but the
organizational responsibility is present in their work structure. This is necessary because it
motivates the members to perform their duties properly so that the work can be completed. Also
display of effective organizational responsibility leads to work being done within time in these
institutions.
Responsible leadership- Responsible leadership is a concept in which a leader acts with
due responsibility and acts like a role model for the staff of the organization (Kasemsap, 2020). It
is the leader who provides the necessary guidance to the staff so that the work can be done
properly by them. In Ace Hotel, the leaders need to display responsible leadership and must be
able to guide the staff effectively and efficiently so that the work is done properly and goals,
targets and objectives can be achieved easily. Its implications are as follows-
Private sector institutions- Responsible leadership is present in private sector
institutions as in these institutions work has to be done properly so as to achieve success in the
long-term. The role of leader here is very important as guidance needs to be provided so that the
tasks can be performed effectively and efficiently within the context of the organization. The
leader should act responsibly and must up own up for any errors or mistakes which are
happening in the processes and functioning of the organization. By acting responsibly, a leader
can ensure that the problems and errors are quickly identified so that rectifying actions can be
taken for the necessary improvements within the organization. Thus, it can be said that it is the
part and parcel of a leader’s job to act with responsibility and provide the necessary guidance to
the subordinates for performing their jobs with ease.
Public sector institutions- In these institutions, responsible leadership is present. It is
present straight from the top-level management to lower-level management (King, 2017). In the

top-level management, responsible leadership is displayed by effectively communicating the
needs and requirements of the job to middle-level management. The role of middle-level
management here becomes quite important as it acts like a bridge connecting the top-level and
lower-level of management. Thus, in middle-level management responsible leadership is
displayed by proper allocation of the tasks. In lower-level management responsible leadership
can be facilitated by ensuring proper supervision of the work done by the subordinates.
Third sector institutions- In these institutions, the leaders need to display responsible
leadership by facilitating completion of the work for which they the institution is volunteering
for. Tasks need to be allocated according to the capabilities of the members and it has to be
ensured that the volunteered work is completed within time.
From the above discussion, it can be said that both organizational responsibility and
responsible leadership are highly necessary within the context of an organization. If both of
them are present in an organization then this will lead to development of corporate leadership
system. For Ace Hotel, this leadership system is important as it deals in the corporate sector. If
its managers and leaders display organizational responsibility and responsible leadership then
this will certainly lead to more efficiency, effectiveness and productivity within the context of
the organization. This will allow the firm to gain a strategic advantage over the other hotels. If it
follows a proper strategy developed by its managers and leaders then competitive advantage can
be gained easily which will lead to maximization of the level of profits in the long-run.
Corporate social responsibility
Corporate social responsibility i.e. CSR is a self-regulating business model which helps a
company to be accountable towards itself, its stakeholders and the public (Corporate Social
Responsibility (CSR), 2020). By practicing it, the companies can be conscious about the kind of
impact they are having on all aspects of the society including economic, social and
environmental. Like other organizations, Ace Hotel too has to display CSR.
Benefits of CSR to the businesses-
 Positive impact on the community- CSR helps in having a positive impact on the
community by the business (Liang and et.al., 2017). This can be done by providing high-
quality products and services at the right price to the customers of the society. Ace Hotel
is providing its services to the members of the community at a fair price to be paid for
availing these services.
 Supporting of public value outcomes- CSR helps in supporting of public value
outcomes in the business. It is the value which an organization contributes to the society.
If a company fulfills its CSR then it helps in supporting of public value outcomes. Ace
Hotel fulfills its CSR and thus it enhances the support provided to the public in various
types of aspects.

 Support of being an employer of choice- CSR helps in attracting and retaining high-
caliber staff within the organization (Mmutle, 2017). It can be facilitated by having a
work-life balance, positive working conditions and work place flexibility. This type of
support provided to the employees of a company leads to an increase in their motivation
and morale which is reflected in the work done by them. Ace Hotel’s management has to
support the employees working in the hotel in different departments which will not only
lead to fulfillment of its CSR but will also facilitate better efficiency, effectiveness and
productivity among the staff of the hotel.
 Encourages professional and personal development- CSR facilitates both professional
as well as personal development within the organization. The organizations can support
the employees to take certain activities outside their work responsibilities which will lead
to increase in their contribution towards work and will also facilitate both their
professional and personal development. Thus the managers of Ace Hotel need to
encourage the professional and personal development of their employees which can
substantially increase their level of efficiency, effectiveness and the productivity level.
 Enhancement of relationship with clients- CSR facilitates enhancement of the
relationship with clients of the organization. Organizations can create and maintain a trust
between themselves and the clients. As Ace Hotel provides services to the clients it also
establishes relationship with them. Therefore if it is able to fulfill its CSR then its
relationships with its clients will be certainly enhanced. This will boost up its business
volumes as well in the long-run.
Benefits of CSR to the community-
 Better goods and services- The community is benefitted by the fulfillment of CSR by
the companies as it provides them with better quality of goods and services (Montargot
and Lahouel, 2018). This allows for better satisfaction of the customers and clients when
they receive better products and services respectively. If Ace Hotel provides better
services to its clients then it will lead to its better reputation among its clients which will
naturally result in increase in its level of profits.
 Value for the money spent- The community is benefited by the fulfillment of CSR as it
provides them with the value of the money spent by them on goods and services of a
particular organization. When members of the society are able to realize full value for the
money which is being paid by them then this will result in increase in their overall level
of satisfaction and this will positively impact the business operations of an enterprise. If
Ace Hotel fulfills its CSR and provides value for the money spent by the clients then it
will lead to boosting of its business volumes.
 Development of the society- Fulfillment of CSR leads to the development of the society.
Development is facilitated in all aspects in the society. If Ace Hotel fulfills its CSR and
provides quality services to its clients it is also contributing in a way towards the
development of the society as a whole.

 Welfare- When CSR is fulfilled it leads to welfare within the society. Welfare can be
facilitated by companies when they indulge in different types of activities (Orido, 2017).
Thus it can be said that fulfillment of CSR leads to overall welfare within the society. If
Ace Hotel can fulfill its CSR then it will lead towards social welfare as the hotel can
contribute to it by supporting many activities which provide benefit to the members of the
society.
 Fulfillment of social responsibility- By the fulfillment of CSR companies can ensure
that they fulfill the overall social responsibility (Park and Park, 2017). This can be done
by giving as much to the society which they use in the form of resources. If Ace Hotel
fulfills its CSR then this will lead to fulfillment of its social responsibility towards the
members of the society. This will encourage it to work for the cause of the society. In this
way the organization can fulfill its CSR easily.
Relationship between businesses in the hospitality industry and government and
civil society-
There is a relationship which is shared by the businesses in the hospitality industry and
civil society. Ace Hotel shares a relationship with the government as it pays taxes which
become due on the income earned from operations and functioning. It also shares a
relationship with the civil society as it has to provide quality services to its clients for the
money which they are paying for availing its varied services. Thus it can be said that it
shares a close relationship with the government and the civil society.
Impact of social media on hospitality business
Social media refers to websites and applications which enable users to create and share
content or participate in social networking (Penela, Morais and Gregory, 2019). Ace Hotel also
has to use social media as it facilitates a new form of marketing which leads to increase in the
overall sales of the products and services.
Benefits of using social media for business-
 Boosts sales- Using social media for marketing purposes leads to a boost in the sales of
the organization (Willie and et.al., 2017). Thus, use of social media has resulted in
increase in reservations in Ace Hotel which has boosted the overall revenue growth. This
will lead to the firm obtaining a strategic advantage compared to its rivals in the market.
It is so because use of social media for marketing comes under digital marketing which is
a still a pretty new concept for many organizations and therefore can provide a business
with a much-required strategic advantage.
 Promotion- Using social media for marketing has led to a boost in promotion of services.
Thus, the use of social media by Ace Hotel has promoted its services among various
sections of the society which are now aware about the premium and luxury services it
offers. Thus this has boosted the business of the hotel thus ensuring its sustainable growth
in the long-run.

 New ideas- Social media acts as source of new ideas for various businesses (Popescu and
Popescu, 2016). In a dynamic business environment, it is extremely essential that the
businesses constantly come up with new ideas so that they can sustain easily in the
market in the long-run. This will lead to increase in the income of the business as if new
ideas are successful they can significantly boost up the business of the organization. Thus
use of social media for marketing by Ace Hotel has allowed it to come up with plenty of
new ideas which are helping to refine its services which are offered to the clients. This
has led to an increase in the overall income of the hotel.
 Customer support- Social media has enhanced the customer support of the businesses
by bringing significant improvements in it (Stylos and Zwiegelaar, 2019). The businesses
are now becoming more aware about providing support to the customers on the social
media itself. Ace Hotel is now providing better customer support to the clients and is
attending their grievances and feedback immediately which has led to efficiency and
effectiveness in its operations.
 Keeping an eye on the competition-With the help of social media, the businesses can
keep an eye on the strategies adopted by the competitors. As Ace Hotel is using social
media it can keep an eye on the strategies which are being adopted by the competitors in
the market. Therefore, it helps it to a great extent in refining its own strategies, techniques
and tactics in an attempt to get a strategic and competitive advantage in the market which
will help it in achievement of goals, targets and objectives in the future.
Risks associated with social media for the business-
 Damage to the reputation- While social media is quite useful for the businesses it can
also lead to damage to its reputation. If there is a negative publicity about Ace Hotel on
social media then its reputation can be impacted.
 Inconsistency- Use of social media by the businesses often provides inconsistent results
to the organization. In one year it can witness high growth and in another year it can
witness low growth. Thus this is also a risk which is faced by Ace Hotel while using
social media.
 Overuse- If social media is overused it can be counter-productive. Instead of being
productive it can affect the productivity level of the organization. Thus if the staff of Ace
Hotel spend too much time on social media then it can affect the operations.
 Account hacking- If social media is used without taking appropriate security measures
then it will result in account hacking within the organization. If the staff of Ace Hotel
does not takes appropriate security measures while using social media for the business
operations then it can result in loss of sensitive data of the company which can hurt its
prospects.
Strategies to reduce these risks-

 For reducing the risk of reputation Ace Hotel can provide better services to its clients so
that positive reviews are given by them on social media. This will help the hotel in
increasing its business in the long-run.
 For reducing the risk of inconsistency Ace Hotel can provide consistency in its services
offered to the clients. This will enable its higher growth rate in the future as it will offer
consistent services to its clients.
 For reducing the risk of overuse Ace Hotel’s managers can closely supervise the use of
social media by the employees. It has to be seen by the management that the social media
is used by the employees only for productive purposes. If the management of the hotel
can ensure this and can maintain supervision on the use of social media then it will result
in increase in the overall efficiency, effectiveness and productivity in the operations
which will help in achieving short-term and long-term goals, targets and objectives in the
future. Thus in this way this risk can be effectively mitigated.
 For reducing the risk of account hacking Ace Hotel’s managers can get security software
installed in their systems. Also, security rules and regulations need to be closely followed
by the staff for using social media for marketing purposes in the company. This will
ensure that the firm is able to succeed in the long-term and will reduce the risk of security
effectively and efficiently.
CONCLUSION
From the above report, it can be stated that hospitality industry is a service industry
which provides different services to the clients. By providing these services the firms in this
industry ensure the satisfaction level remains high for the price paid for availing these services.
There are different approaches of leadership which a company’s leaders and managers can
follow which will lead to efficiency and effectiveness in the organization. Organizational
responsibility and responsible leadership can easily ensure that a firm becomes successful in the
long-run. By fulfilling their corporate social responsibility the companies can ensure that they
avail benefits not just for themselves but also provide these benefits to the society. Also, the
social media can be used by the businesses as it provides many advantages. However its usage
also has risks associated with it which can be mitigated if the right strategies are used for
countering these risks by the firm.

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