Profitability And Family Leadership In Ritz Carlton: A Focus On Ethical Considerations And Leadership Styles

The Importance of Leadership in Ensuring Company Growth

Discuss About The Profitability And Family Leadership Springer.

Leadership is important in order to ensure that every member of a team or organisation works together in a cohort manner. Without leadership, it can be difficult for employees in a team to make the correct decisions that can help in the growth of an organisation. However, it needs to be kept in mind that the leadership needs to focus on ethical consideration and the style need to be adapted based on the capabilities and resources. The assignment provides a theoretical framework that defines the leadership and the effect it may have during the management of change. The styles of leadership that need to be followed and the ethical consideration that need to be maintained are analysed in the assignment. The focus is on the case study of Ritz Carlton and the leadership style that need to be adopted in the company.

According to Bolman and Deal (2017), leadership can be considered as management or guiding of other people within an organisation. The characteristics and traits of individuals make up the leadership quality which can is essential for the success of an organisation. The theory of leadership as defined by Ritz Carlton can stretch back from the early years in the western history. The rate satisfaction of the employees as well as the guests is considered as a means of effective leadership trait. The invitation to the employees to participate in issues relating to the organisation can be considered as an effective leadership policy that can help in the company to attain success.  

1. Employee satisfaction: The employee satisfaction is considered important for the success of the organisation, as it is connects the other three elements of leadership. Ritz Carlton believes that the foundation of the leadership framework is important so that the valuable assets of the organisation can be taken into consideration.
2. Guest satisfaction: This particular element is depended upon the satisfaction of the employees. Without proper satisfaction of the employees, the guests cannot be entertained properly. According to Goleman (2017), leading the employees towards the satisfaction of the guests ensures stable growth of revenue within the organisation.
3. Profits: The profit gained by Ritz Carlton, can be used for the improvement of the company and its expansion. This placed at the top of the pyramid as the profit depends upon the other two elements. The responses of the guests and employees provide for the success of the organisation.

The reason behind the appointment of foreign employer in Ritz Carlton is that the company needed to overcome the problems that were normally faced in the appointment of foreign people. This is mainly due to the cultural differences that exist in China and the values that the people of the country undertake. At the same time, the language was also a problem and it led to the deviation of Ritz Carlton from the goals that the leadership pyramid had set for the company. However, the appointment of the foreign veterans could help the company to gain new ideas about the manner in which it can be developed.

1. One of the advantages of the decision is that the ideas that can be received from the foreign employers can help in the improvement of Ritz Carlton. Ward (2016) stated that it could be beneficiary for every organisation to employ certain practises that are followed in foreign lands. The new ideas can be innovative for Ritz Carlton as it can help in developing the company in the mind of the Chinese people as well as the guests that visit the country
2. At the same time, a disadvantage of the decision is that the foreign employer may find it difficult to adapt to the Chinese culture of work and nationality. This can be also true for the employees as the changes that may be brought about by the foreign manager may affect the work life of the local employees.

According to the case study, the new Chinese workers are motivated by money. At the same time, the English language skills that the people have are also a factor for motivation of the young Chinese workers. Hence, it can be said that the appointment of the foreign employer and the adoption of the 3-element leadership framework can help the young Chinese employees to remain motivated in work. This is because opportunities can be provided to the employees to earn proper money by the satisfaction of the guests. Hence, this can also help in maintaining the loyalty of the employees in Ritz Carlton.

Leadership Styles and Ethical Considerations: The Case Study of Ritz Carlton

1. Employee satisfaction: The satisfaction of the employees can be considered as means of change in Ritz Carlton as the resistance to change can be mitigated. According to Antonakis and Day (2017), the satisfaction of the employees may lead to the increase in productivity of the organisation and because of this help in the progress of the company.
2. Guest satisfaction: The satisfaction of the guests can influence change as the feedback provided by the guests can be taken into consideration. The guests form an important stakeholder of the company and application of the feedback can influence changes, as the guests can remain satisfied with the company.
3. Profit: Considerable profit can help in the growth and development of Ritz Carlton. This is mainly changes in resources such as man and machine can be brought about with the effective application of the revenue generated. Ritz Carlton can use the profit to impose the changes suggested by the guests and increase the pay roll of the employees.

As observed by Kogan et al. (2016) leaders need to take into consideration every ethical aspect while guiding members of a team. A team may consist of people of varied culture, gender and diversity. The leaders need to ensure that the ethical considerations are maintained so that employees do not feel violated ethically. The values and outcomes of business provide opportunities for different ethical people to contribute to the success of business in an equal manner.

1. Employees’ gender strength: The gender strength provides leaders with an opportunity to delegate work that may not be possible for every gender to continue. According to the Lusch and Nambisan (2015), attributes such as being compassionate and understanding are attributed to females while an attitude of aggressiveness can be attributed to the male. Therefore, the jobs requiring these attitudes can be delegated between the genders.
2. Employees’ diversity strength: The diversity of the employees can provide opportunities to gain new ideas in terms of innovation and improving the services. This can help Ritz Carlton to gain the satisfaction of the guests visiting the hotel.
3. Employees’ culture strength: The culture of every people is different and based on this merging of more than one culture can help in understanding the perspective of every employee.

1. Employees’ gender Weakness: The weakness of having different gender is that there may be a possibility of favouritism on one gender. This may lead to organisational conflict, which in turn can hamper the production of Ritz Carlton. Heifetz and Linsky (2017) is of the opinion that the gender weakness can lead to serious ethical considerations of the company.
2. Employees’ diversity Weakness: The diversity of the company can be a weakness, as different thoughts need to be considered. The thoughts of every employee need to be addressed so that the company can benefit in the market (Tai & Chuang, 2014). However, excessive ideas provided by the employees may backfire for the company, as the application of it may not be possible. This may again lead to favouritism being implied in the organisations.
3. Employees’ culture Weakness: The cultural differences may cause harm due to the changes in the various dimensions. For example, in the case of Ritz Carton, the appointment of the foreign employee may be a cause of concern as the Chinese culture consists of avoiding uncertainty in the form of innovation.

Leadership is essential to maintain and manage changes as the leaders provide the necessary guidance for the employees to embrace change (Fairhurst & Connaughton, 2014). Gender, diversity and culture are important for changes the appointment of people belonging to these ethical backgrounds can bring about changes in the organisation. For example, it can be seen that the implementation of new ideas for the promotion of changes are derived from the diverse backgrounds of the employees. In the case of Ritz Carlton, the three aspects can help the company to ensure that the Chinese culture follows the examples set out by culture of the foreign employer so that diversity can be maintained in the form of generating new ideas for improving in the market.

1. Work motivation: The changes that can be brought for motivating the employees include proper monetary and non-monetary benefits. At the same time, it is also necessary for Ritz Carlton to maintain a work place in which employees can work in a stress free manner.
2. Satisfaction: The satisfaction needs to be established on two fronts: employee and guests. The changes made in the organisation need to satisfy the employees so that the work pressure does not increase. At the same time, the satisfaction of the guests can be obtained by maintaining the level of service it provides (Grosser, Moon & Nelson, 2017).
3. Company loyalty: The loyalty of the company is based on the loyalty of the employees. Without proper employees, Ritz Carlton cannot afford to continue with the progress that it aims to make in the Chinese restaurant business.
4. Multi-ethnicity: The multi-ethnicity of the employees can bring about changes as new ideas can be generated and used for the development of the company. The diversity of the people is important for the generation of innovative ideas.

1. Autocratic leadership: Autocratic leadership is mostly centred on the decisions of the boss. According to Covin and Slevin (2017), the leadership style does not include the opinion of the employees and decide on the best options for the team by forcing the employees to acknowledge the decision.
2. Democratic leadership: The democratic leadership style is considered as the best form of leadership as the leaders involve the employees while taking any decisions regarding policies and procedures. Ritz Carlton adopts this type of leadership style and ensure that contribution of the employees are valued.
3. Laissez-faire leadership: The laissez faire leadership style provides full authority to the employees without any limitations. This can have a negative impact for the development of an organisation as the employees may require guidance from the leaders.

1. It is evidenced from the case study that the new management of Ritz Carlton adopts the democratic style of leadership. According to Johnston and Marshall (2016), the advantage of this leadership style is that the employees can be satisfied and therefore, the foundation element of the leadership framework can be fulfilled.
2. At the same time, the disadvantage of this particular style is the fact that employees may become too dependent on the employees (Schwartz, 2017). At the same time, ethical issues may rise if the opinions of the employees are not taken into consideration. This can lead to problems within Ritz Carlton.

1. One of the scenario in which ethical leadership need to be implemented is during the managing of the young Chinese employees. It has been evidenced from the case study that introduction of foreign employer can help in the improvement of the company but at the same time may lead to problems in understanding the tasks. Hence, the stereotyping nature needs to be abolished so that effective leadership can take place.
2. Another scenario includes the satisfaction of the guests. The guests of the company need to be entertained and any ethical issues concerning the guests such as geographical location; language and culture need to be overlooked. This can help in the success of Ritz Carlton and at the same time ensure that the demands of the guests are managed.

1. Justice: According to Den Hond, de Bakker and Neergaard (2016), it is necessary for the leaders to ensure that proper justice is maintained in terms of selection of members of team and delegating work in a fair manner.
2. Focus on team building: The team that need to be built in Ritz Carlton need to comprise of employees of different culture and diversity. The leaders need to incorporate the team members and guide them accordingly.
3. Honesty: It is essential for the leaders to remain honest with the team members and provide them with any information about the organisation. The level of honesty is important as it can help employees to gain trust on the leaders. At the same time, the leaders need to abstain from any ethical consideration while being honest with the employees.

1. Identify and acknowledge the interests of the stakeholders. This can help the company to identify the stakeholder power and consequently prioritise the stakeholder. Therefore, it can be said that the internal and external stakeholders can be acknowledged based on the interest that they provide.
2. Define the purpose of maintaining changes in the organisation. Application of this can help Ritz Carlton to convince the stakeholders about the requirement of changes. This can help the company to convince the employees as well as the customers.

Conclusion

Therefore, it can be concluded that ethical leadership is necessary to ensure successful business takes place in the market. Ritz Carlton needs to ensure that the shift in China can help the company to maintain any ethical or stereotypical issues that may pose problems for the organisation. The application of democratic leadership style can help the company to maintain the satisfaction of the employees and consequently move forward in satisfying the remaining elements of the leadership framework.

References

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Covin, J. G., & Slevin, D. P. (2017). The entrepreneurial imperatives of strategic leadership. Strategic entrepreneurship: Creating a new mindset, 307-327.

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Ward, J. (2016). Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer.