Leadership and management: assessing the problem affecting a global restaurant

Executive summary

Knowledge of management and leadership concepts is critical for achieving success in an organisation. Based on this knowledge, this report examines the factors contributing to high employee turnover facing a global restaurant based in the UK, in addition to examining strategies for enhancing its competitiveness in the industry. In addition, the report proposes strategies that the management of the restaurant can use to address the problem of employee turnover as well as enhance competitiveness. The report starts by examining organisational governance, and how it shapes organisational culture and structure. With regard to operations measures, the report examines the duties of managers and leaders and how they influence the success of an organisation. Given that there are different leadership styles, the report centers on democratic leadership and how it can influence performance of the restaurant. The report also expounds on the qualities and skills that managers should embrace to effectively execute their duties. In the analysis of management and leadership, the port uses scientific management theory and McGregor XY theory. The report sums up by recommending the need to embrace democratic leadership and overhauling the organisational culture in order to promote employee retention and boost the competitiveness of the restaurant.

1.0 Introduction

The stiff competition in virtually all sectors means that organisations should identify the right strategies to enhance the performance of an organisation. In the restaurant industry, stiff competition and high employee turnover can considerably impede the success of an organisation. According to Northouse (2010), high employee turnover is largely contributed by the lack of meeting the expectations of the employees and a low level of motivation. Addressing the aspect of employee turnover can help to establish a strong team that can help in the implementation of competitive strategies. Addressing high employee turnover as well as enhancing the competitiveness of an organisation is primarily the role of the management of this particular restaurant. In such a situation, it is imperative for managers to identify the best strategies to capitalise on the workforce to establish new strategies of countering the stiff competition (CMI, (2011). The focus of this report is to examine the factors contributing to high employee turnover facing a global restaurant based in the UK, in addition to examining strategies for enhancing its competitiveness. In addition, the report proposes strategies that the management of the restaurant can use to address the problem of employee turnover as well as enhance competitiveness in the industry.

2.0 A knowledge and understanding of organisational governance

Organisations are characterised on various factors such as ownership and purpose. According to Mullins et al. (2013) argues that organisation can be private sector such as business firms, in which the restaurant lies. Other organisations include public entities such as local authorises, social enterprises such as charity organisations, and education organisations such as universities and colleges. Additionally, organisations can also fall under the religious categories such as churches and mosques and political categories such as activities groups and political parties (Mullins et al., 2013). The restaurant is a privately owned business enterprise because it focuses on providing goods and services to gain profits. Private entities vary from public ones on aspects such as focusing on economic gains and legal framework. Private companies can be owned by an individual, partnership or operate as a limited liability company. For instance, the restaurant operates as a limited owned company, with branches in both the US and UK.

Organisations are guided by structures and cultures, by shaping group relations. According to Janićijević (2013), organisational structure is the pattern of relationships among people in different positions in the organisation. The structure is used to define the duties and responsibilities of employees as well as their communication channels. The structure embraced by an organisation can influence decision making, as well as how orders are executed. The structure embraced by an organisation can either be tall, where decisions are made by top management and communication g through many layers or flat structure where bureaucracy is less and few levels of management shown in figures below. The choice of the structure in an organisation can be influenced by factors such as size, employee skills, business objectives, and leadership style. On the other hand, organisational culture is influenced by aspects such as value and beliefs of the employees (Mullins et al., 2007).

Flat organisational structure

3.0 Functions of management and leadership

Managers play a vital role in the success of an organisation in a given industry. The managers help in establishing the right approach to different activities in the organisation which helps to promote the success of an organisation.  Although management and leadership are widely used interchangeably, the two have similarities and differences. According to the argument by Binney et al. (2012) both management and leadership entail dealing with people, setting goals and influence the operations of the team. In a definition by Mullins et al. (2001), managers are people that are tasked with planning and budgeting and allocating resources in different aspects, in addition to taking a major role in addressing problems facing the organisation. On the other hand, Jansen and Samuel (2014) define leaders as people that influence, inspire and direct their teams into doing the right time to achieve a given vision. Jansen and Samuel (2014) observes that leaders and managers differ on they address issues. For instance, leaders will focus on the reason why a given action should be considered, while a manager focuses on how and when a given action should be considered. Further Jansen and Samuel (2014) argue that managers are guided by set rules that guide their decision-making process, while leaders are primarily guided by emotions and examine a problem from diverse angles. Whilst managers would imitate other managers and theoretical information, leaders tend to be more original in their approach to addressing a given problem.

Managers and leaders are also differentiated by their tasks and responsibilities. According to Ellis and Abbott (2015), managers are accustomed to ensuring that guidelines decided by the board and departments are implemented. The focus of managers is usually on the bottom line of the organisation, meaning that they are good at aligning daily routines and accomplishing activities that align with the set objectives. Unlike managers, leaders focus on influencing their team towards achieving a given vision. For instance, if the vision of the restaurant is to enhance its market share, a leader will focus on inspiring the team to bring the vision into realisation.

There different models that explain the operations of the managers. Scientific management theory or widely known as Taylorism is a model that examines how managers can achieve efficiency in their operations (Taneja et al., 2011). The theory was developed by Henry Fayol, whereby he established the general concept of management. In the theory, Fayol provided 5 basic functions of management; planning, organising, coordinating, commanding and controlling (Taneja et al., 2011). According to the explanation by Taneja et al. (2011), managers are tasked with providing a smooth workflow to minimise wastage and promote efficiency. When he developed the theory, Frederick Taylor focused on analysing process, and knowledge transfer. The theory can be used to understanding the situation in the restaurant by identifying ways in which employees can promote the performance of the organisation. With its focus on productivity, science management theory argues on the need for managers to have a sense of direction on what they intend to achieve.

Another concept of management, XY theory, was developed by Douglas McGregor, which argues that individual largely behaves based on the approach of management. The X concept describes authoritarian leaders that believe in close supervision. This concept is based on the understanding that employees naturally disdain work and likely to give less attention to their work, therefore, they require to be directed, commanded by a manager. On the other hand, the Y concept argues that work is natural and therefore people are likely to develop self-control based on the work environment set by the management. Under Y theory, McGregor argued that people are driven by a desire for achievement, therefore naturally designed to work hard. Therefore, McGregor XY theory creates the idea that the behavior of the employees is primarily influenced by the leadership style embraced by the management.

The two theories, Taylorism and XY, can be used in understanding the situation facing the international restaurant.  For instance, the scientific management theory can be used by the management to develop efficiency to enhance productivity. The management can evaluate their operations to identify the areas of weaknesses and inefficiencies in a bid to promote competitiveness. On the same note, the McGregor YX theory can be used by the manager to identify the right approach of leadership that can promote productivity among employees. For instance, by adhering to Y theory, the management can bestow accountability and individual responsibility among employees with regard to the performance of the organisation. Instead of commanding and directing employees, the management can focus on creating a favourable work environment so that employees can develop self-discretion when executing their duties.

4.0 How leadership styles impact upon team performance

The leadership style can have a considerable impact on the performance of a team. A good leadership style can help to promote overall performance by influencing the subordinates to adhere to a given line of action. Leadership styles vary based on how the leaders related and engage with their subjects. For instance, autocratic leadership is based on the centralised approach to various aspects such as the decision-making process. Binney et al. (2012) explain that autocratic leaders make all the decision, and requires their subordinates to adhere to the decisions made. Binney et al. (2012) add that autocratic leadership styles can promote productivity but hinder creativity and innovation because it does not promote autonomy. Additionally, given that decisions are only made at the top level, the decision-making process is relatively faster but can be faced with undertones of discontent among the employees. Another leadership style, democratic leadership style, is a form of leadership that is characterised with employee participation in the decision-making process. Democratic leadership presents the team members is centered on offering guidance to the employees in the organisation. On the other hand, Laissez-Faire leadership style is primarily a passive type, which entrust the employees to work on a solution to the challenges facing an organisation.

Democratic leadership style is the most successful leadership, especially in an organisation. According to Iqba et al. (2015), democratic leadership style is effective in promoting creativity and innovation because it promotes supports the autonomy of the employees. This means, in a struggling organisation, democratic leadership can encourage employees to develop innovative solutions to the problems. Because of their close engagement with customers, giving employees independence to make decisions can promote competitiveness in the industry. Additionally, democratic leadership style is imperative in enhancing employee motivation, therefore can help to enhance employee productivity as well as promote employee retention. Although decision making can be relatively slow in an organisation that embraces the democratic type of leadership, it creates an opportunity to develop diverse ideas to a given problem (Iqba et al., 2015). Therefore, democratic leadership is important for establishing a strong team that is geared toward achieving a common vision as well as promote continuous creative ideas for long-term success.

5.0 Key skills, knowledge and behaviours of successful managers

Effective managers are required to have some set of skills and knowledge that help them in the decision-making process as well as relating to the employees. Firsts and foremost, managers should have a high level of emotional intelligence. Emotional intelligence is defined by Goleman (2001) as the awareness and understanding of own emotions in order to communicate effectively and emphasise with others. Binney et al. (2012) add that a leader with a high emotional quotient is characterised with a high level of self-awareness, self-regulation and exhibits empathy. Leaders should be in a position to manage their emotions by understanding how their emotions affect other people in the team. Additionally, empathetic leaders are able to relate with feelings of other employees, and therefore embrace humility and honest when criticising them (Goleman, 2001).

A good relationship is critical to the success of a team. Good leaders should be in a position to build strong relationships with their subordinates. A good relationship is effective in promoting strong teamwork in an organisation. Good relationship about valuing the contribution of the employees, listening and mutual commitment to the overall objective of the team. When managers exhibit their good relations

Leaders are required to motivate their followers to boost their morale towards achieving a given objective. Mullins et al. (2013) define motivation as the degree of willingness to engage in a certain specified activity. The motivation aspect promotes individuals’ intention to engage behave in a given way as shown in the model below. In motivating people to behave in a give way, the managers should consider their mental process that influences the behavior. Motivation is about aligning employee expectations as they work in achieving the objectives of the organisation. Hertzberg’s theory of motivation argues that employee behavior is influenced by two factors: hygienic factors and motivators (Jansen and Samuel, 2014). Hygiene factors are extrinsic in that they prevent dissatisfaction but do not increase the level of satisfaction such as high income. On the other hand, motivators are intrinsic, whereby their presence increases motivation, but their absence does not lead to dissatisfaction such as recognition in the workplace (Jansen and Samuel, 2014). In this regard, when dealing with people, it is essential for managers to constantly look for measures for motivating their employees for high performance.

Figure1: Model of motivation

Source: (Mullins et al., 2013)

Communication is an important skill in leadership because it helps in guiding the employees and sharing the vision of the organisation (Solaja et al., 2016). Solaja et al., (2016) adds that good leadership should be accompanied by good listening skills, in order to open up a level ground for open and honest engagement with employees. The managers in an organisation can influence and inspire their employees through constant communication of the vision and strategies embraced by the organisation. Effective communication is essential in addressing the problems affecting employees and therefore can play a huge role in enhancing employee relations.

Managers are required to have skills to manage operational activities and projects laid by the organisation. For instance, the management should be able to organise a strong team and guide them through the process of accomplishing the project. In addition to managing a project, managers should have budgeting skills to ensure a good allocation of resources. This means the management should create measures to ensure the resources are allocated efficiently and utilised optimally to avoid delays and project failures.

With the growth of technology, management is exposed to huge among of data that they utilise it to their advantage. Data provide objectivity in decision making because they are largely made of numbers. The data, both structured and unstructured, can be used by the management to identify opportunities, areas of growth by predicting trends. Analysing of data can enable managers to identify the areas of weakness in organisation leading to low performance, and therefore devise counter-strategies.

6.0 Recommendations

The international restaurant is facing two major problems; the high employee turnover and the stiff competition in the industry. Therefore, the first step is to establish the right leadership strategy that can enhance employee retention and high performance. The management of the restaurant should embrace democratic leadership in a bid to promote retention (Mihai et al., 2017). By embracing democratic leadership, the management of the restaurant will be able to keep the employee motivated, because they will feel valued as they will constantly be involved in the decision-making process.

The management should establish a new culture based on open and honest communication in order to enhance the smooth flow of information across the employees. Organisational culture is defined as a set of values that guide the behavior of employees (Janićijević, 2013). Therefore, establishing a new culture can help to promote competitiveness, as employees can dedicate much of their resources on vital areas such as customer service.

Finally, the restaurant should invest in extensive market research in a bid to identify the needs and desires of the customers in the market. Though market research, the management will be well poised to align operations with the expectations of the customers. Through democratic leadership combined with a good understanding of the market, the management can be in a position to devise effective measures to promote competitiveness in the industry. After identifying the competitive issues facing the organisation, the management can utilise democratic leadership practices to direct and inspire employees to focusing on achieving the objectives of the organisation.

 7.0 Conclusion

The management and leadership are different aspects, but a manager can still embrace leadership skills to support their managerial duties. Whilst managers are geared towards following a set of rules and principles, in addition to copying others, leaders are focused on originality addressing problems. Managers ensure that their planning and decision are adhered to by their subordinates, while leaders direct and inspire their teams to achieve a given objective. Managers are required to have high emotional intelligence in order to establish a good relationship with their teams. Other skills and knowledge for success management include the ability to motivate, good communication, inclusivity and fairness and skills such as budgeting. There are different leadership styles that managers can embrace to enhance their skills including autocratic, democratic and Laissez-faire. Among the three leadership styles, democratic leadership styles can be the most applicable in the case of the restaurant facing high employee turnover and stiff competition. This is because democratic leadership promotes autonomy and involves employees in the decision-making process. In this regard, the management of the restaurant should embrace democratic leadership, because it makes the employees feel valued and therefore make them stay in the company. Additionally, the management can overhaul its culture to promote open and honest communication in a bid to enhance teamwork, creativity, and innovation to promote its competitiveness in the industry.

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