ht. J. Hospitslity Management Vol. 10 No. 3, p. 211-217,1991 Printed in Great Britain

02784319918.00 + 0.00 Pergamon Press pk

Research Note

This section t intended to supply the readers with quick information on recent developments in Hospitality Management.

Research Notes may consist of: (I) new research findings including preliminary data from pilot studies; (2) reports on small research projects not requiring extensive presentation; (3) case study reports that describe a truly new phenomenon; (4) methodological comments; (S) brief theoretical statements that are either an original contribution or comments on previously published studies. All such notes must be prepared in the appropriate International Journal of Hospitality Management style and not exceed 800 words.

Research Notes should be sent in duplicate to: Professor Abraham Pizam, Research Notes Editor, Dick Pope Sr. Institute for Tourism Studies, University of Central Florida, Orlando, FL 32816, U.S.A. They are refereed by the Section Editor.

Empowerment: a study of General Managers of four star hotel properties in the U.K.

Peter Jones Department of Sewice Sector Management, Brighton Polytechnic, Brighton, CJ. K.

and

Abbey Davies Department of Service Sector Mattugement, Brighton Polytechnic and Maniott Hod, Port&d, Maine, U.S.A.

The 1990s will continue to see more and more hotel companies ‘empower’ their managers and their employees. Pushing responsibility and decision-making down the organization is one way to respond to turbulent environments and increased compe- tition for both customers and labour. This research note describes a project aimed at identifying the extent to which GMs offourstar hotels in the U. K. felt empowered now. Eighty-sir GMs responded out of a population of nearly 1,tW managers. Early response indicates that there seems to be very little difference in perceptions of empowerment amongst the sample based on individual characteristics of the managers, although well-qualified employees tended to feel less empowered than less

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welt qualified. However the most significant factor that appears to differentiate GMs’ perceptions is the company that they worked for. It is clear from these preliminary findings, that more detailed studies into the nature and extent of empowerment are needed.

Key words: empowerment hotel management

Introduction

There is evidence to suggest that ‘empowerment’ will become a significant factor in how hotel and foodservice firms are managed in the 1990s. At a recent conference (CHRIE, Washington DC, 1990), Wayne Galloway the Chief Executive of Pepsi-Cola identified that their three retail chains-Pizza Hut, Taco Bell and Kentucky Fried Chicken-would thrive in the 1990s so long as managers felt empowered. Research in the United States (Heskett et al., 1990) has also indicated that so-called ‘service breakthrough firms’ have achieved their success partly through empowering their managers. Such findings are consistent with the more general ideas developed by Tom Peters (1989) and James Belasco (1990).

Empowerment as a concept is basically about pushing responsibility and decision- making down the organization to those employees closest to the customer. For some hotel organizations, this is not a new idea. J. W. Marriott Sr is quoted as saying ‘treat your employees the way you would like to be treated-provide every avenue to success. Get their confidcncc and respect. Have them like and be intcrestcd in their jobs’ (Marriott, 1986).

In order to identify the significance of this management trend, some understanding of current levels of empowerment within the U.K. hotel sector is desirable. We therefore undertook a research survey of over 100 hotel general managers in six diffcrcnt firms to establish current levels of empowerment. We assumed that before it is possible to empower employees within operating units it is necessary to identify the extent to which general managers themselves felt empowered. We also wished to identify if there were any significant characteristics of general managers that made GMs feel more or less em- powered. For instance, we speculated that there would be a difference in the perceived empowerment levels of male GMs compared with females.

Which type of GM is likely to feel the most empowered?

The obvious answer to the question ‘which type of GM will feel the most empowered?’ is those who work for a company that gives them this sense of empowerment. However we were concerned that there would be other characteristics that would make managers feel more or less empowered than their colleagues, unrelated to the firm that they worked for. We therefore formulated a number of hypotheses which we hoped to test. These were:

(1) Female managers would feel less empowered than male ones. This hypothesis rcflccts the apparent cultural norms of which gender has power and which gender does not in our society. It was suggested that the opposite hypothesis may be true, i.e. that by

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placing women in the position that men have historically been dominant in they may feel more empowered than their male colleagues.

(2) Older managers would feel less empowered than younger ones. This was based on the assumption that older people would view their jobs less enthusiastically and be somewhat jaded.

(3) Managers with less general management experience would feel more empowered than those with longer years of experience. This hypothesis, if true, would support the second. It was based on the speculation that managers new to the job would believe themselves to have more power than they really have.

(4) Managers with degree level qualifications would feel less empowered than those with ONDMNDs. This hypothesis was based on the assumption about the level of expectation and ambition amongst the ‘better’ qualified group.

Survey design

The survey questionnaires were designed on the basis of qualitative discussion with senior managers in the industry and a review of the literature that discusses the empowerment concept. In order to obtain a high response rate we felt it had to be easy to understand and quick to complete, as four star hotel GMs are not known for high levels of participation in this type of research. The response rate of 76% indicates that in this aim we were successful. Indications suggest however that a major factor that contributed to a positive response, other than the questionnaire’s design. was an interest by the GMs in the empowerment concept.

The survey was therefore in three parts: Part A identified the specific characteristics of the individuals in terms of their sex, age,

years in position, background, educational qualifications and size of hotel. Part B comprised fifteen bi-polar statements with four possible response rates aimed at

covering the spectrum of factors that may make up an empowered organization. The survey questionnaire is shown in the Appendix.

Part C was four scenarios with alternative outcomes also designed to identify the extent to which GMs themselves felt they would take action, or would need to consult with more senior management.

Finally an opportunity was offered for GMs to make their own comments about how empowered they felt. A review of just these comments suggested that possibly some of our hypotheses may be correct. One GM wrote-‘it is apparent decision making is becoming more of a corporate function, especially over the last five years’ and another said ‘ . . . these days negligible!’

The sample population

There were 971 GMs of four star hotels in the U.K. amongst the top 30 hotel companies, based on an analysis of the U.K. Hotels Group Directory 1989/90. Over 10% of this population was sampled from six different hotel companies. These companies were selected to bc a cross-section of large and medium size operators with both U.K.-based

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and non-U.K. origins. Company A is an English company with 26 U.K. hotels; company B was originally American and recently taken over by a British firm; company C is an international chain with 6 hotels in England; company D is an American chain with four hotels in large U.K. cities; company E was a Scottish company with 29 hotels and expansion plans; and company F is a large multi-national with over 200 U.K. hotels.

One hundred and eleven general managers were sent a postal survey. The response rate was 76%, i.e. 86 managers. In the sample, 23% had degree qualifications and a further 66% had Higher or Ordinary National Diplomas. One third of them had only been in their position for l-3 years, and another 25% from 3 to 5 years. Over 52% were in the 30 years of age to 40 years age range; and 25% were female.

These characteristics of four star hotel managers are interesting in their own right, especially the high proportion of women, which we suggest only five years ago would be much smaller. But the relatively large sample sizes of sections of the total population enables some general conclusions to be drawn.

Results

It should be made clear that our survey was not designed to measure absolute levels of actual empowerment (which perhaps could only be done by detailed direct observation of GMs at work), but perceived levels of relative empowerment. All we can say is that some managers feel more empowered than others. Early results, subject to more detailed statistical analysis, indicate strongly that some hypotheses are proven, others not.

Our first hypothesis was that female managers would feel less empowered than males. There is no evidcncc to suggest this was at all the cast. The best way to illustrate the extent to which males and females shared the same views is to compare the profile of average responses over the tiftcen questions. Contrary to our assumptions, males and females clearly pcrceivc how empowered they are in almost identical ways.

The second hypothesis was based on the age of the manager affecting their level of perceived empowerment. The average scores of managers on the empowerment index does vary with managers under 30 feeling slightly more empowered, than those aged 30-40 years, and with these feeling more empowered than those over 40. However the difference in each group dots not appear to be statistically significant when compared with the average level of perceived empowerment.

The third hypothesis centres on the extent to which the length of time a person has been a general manager will affect their sense of empowerment. Overall, as the number of years that GMs are doing their job increases, the perceived level of empowerment is marginally less. But this is not true for all companies and no clear picture emerges of any direct relationship between length of service and empowerment.

Finally we considered that the educational background of GMs would affect their perceived empowerment levels. In this case a stronger correlation emerges. The two groups that feel the most empowered are the least qualified, with only A levels, and the most qualified, with Masters degrees. This may appear at first a paradox, but closer examination of the data suggests not. Only three GMs in the sample had Masters level qualifications and all worked for the same company, so no statistically valid conclusion can be drawn from this sample. But comments on the survey questionnaires suggested that this

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sense of empowerment was directly connected to the fact that their company had encouraged development through Masters level study. If this small group are not typical, there then appears a direct relationship between qualifications and perceived empower- ment, as hypothesized.

Corporate culture and empowerment

Although there are some differences in perceived levels of empowerment between individual GMs, by far the most significant differences appear to be between segments of the total population dependent upon the company that GMs work for. We hope to be able to demonstrate differences between these companies and the level of empowerment in them, bringing in other information from the qualitative discussions with corporate managers, Part C of the questionnaires and GMs’ comments.

Company A

The concept of empowerment is understood in this company, especially by corporate managers. However, it is less well understood by GMs. However, managers in this company do feel themselves more empowered than the average manager.

Company B

Managers in this company also bclicvc thcmsclvcs to bc rclativcly empowered, both in response to the fifteen point scaler questions and their answers to the four scenarios in Part C of the survey. Of the six companies surveyed, this company had the most ‘empowered’ managers. This partly reflects the company’s current concern with quality, reflected in setting up a quality department corporately and someone within each unit responsible for quality. Empowerment is seen as a major means of achieving the levels of quality performance required.

Company C

GMs in this firm match the profile of GMs on average. They feel neither highly empowered nor unempowered. The relatively small sample of responses from this firm make it difficult to draw too many conclusions.

Company D

Managers in this company do not feel themselves to be empowered. Comments suggest that the firm does not have clear decision-making politics. Of the six companies surveyed, this had the least ‘empowered’ managers.

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Company E

Despite the fact that the senior manager interviewed in this company did not feel this company empowered its managers, they express above-average perceptions of empower- ment.

Company F

On the other hand a senior manager with this firm expressed the view that their managers were empowered, when the managers’ perceptions were below average. This suggests that openly expressed corporately held views may raise levels of expectation about giving managers more responsibility that are not always matched by reality.

This comparison of the overall sense of empowerment amongst the six companies does not identify that the profile of each company is actually different. The fifteen factors used

in the questionnaire, can be grouped together in two main areas over which managers may or may not feel they have control. These are policy areas and areas related to the management of human resources, as summarized below:

Policy areas Human resource factors

The extent to which there is a vision statement Promotion policy Use of standard operating procedures Nature of training Attitudes towards customcrs/employces Recruitment procedures Nature of corporate/unit decision-making Guarantee of fair Nature of customer service guarantee treatment policy Existence of corporate culture Remuneration policy Role of I.T. Levels of staff turover

Companies in which the lcvcl of empowerment is sensed the most arc those which allow managers to be involved in policy type decision-making. Much of the lack of feeling empowered appears to be derived from the relative lack of control GMs feel they have over personnel and human resource decision-making. This relative lack of control over personnel suggests that empowerment cannot be easily implemented or achieved at lower levels of the organization. This is especially the case since many GMs do not themselves feel very empowered.

Conclusion

It is difficult to draw too many firm conclusions from this survey. We were very encouraged by the level of interest displayed by GMs and by the response rate. It suggests that there is a great deal of interest in the hotel industry over this issue. The survey also suggests that it is possible to design a questionnaire that elicits meaningful responses about a complex issue. The data indicate strongly that the individual characteristics of managers do not affect their perceptions about how much power they enjoy.

By far and away the biggest factor appears to be the company they work for. However, the exact nature of this relationship is not a straightforward one. It is not necessarily the

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case, that firms which espouse empowerment as a concept have managers who feel the most empowered. This suggests that some objective and absolute means of measuring empowerment may be necessary in order to directly compare firms.

References

Belasco, J. (1990) Teaching the Elephant to Dance: Empowering Change in Your Organisation. Crown Publishers, New York.

Heskett, J., Sasser, W. W. and Hart, C. (1990) Service Breakthroughs-Changing the Rules ofrhe Game. The Free Press, New York.

Marriott, J. W. Jr (1986) The Marriott Management Philosophy, A Living Tradition of Values and Beliefs. The Marriott Corporation, Washington DC, U.S.A.

Peters, T. (1989) Thriving on Chaos. Collins, London.

Appendix

My company has a vision statement 1 2 3 4

Promotion is from within the 1 company

All cmployccs arc trained and rctraincd

I

WC USC standard operating proccdurcs

I

Our cmployccs come first

WC have cxtcnsivc recruitment proccdurcs

1

1

WC have a guarantee of fair treatment 1 for all employees

I am part of a corporate decision- 1 making team

WC practice profit-sharing 1

WC practice pay-by-performance 1 incentives

We offer an unconditional service 1 guarantee

Managers are encouraged to make 1 decisions

Our staff turn-over is low (O-25%) 1

Corporate culture is identifiable and 1 an influencing factor

Our computer technology is up to 1 date

2 3 4

2 3 4

2 3 4

2 3 4

2 3 4

2 3 4

2 3 4

2 3 4 There is no profit-sharing policy

2 3 4 Pay levels are set down by corporate

2 3 4

2 3 4

2 3 4

2 3 4

2 3 4

My company does not have a vision statement

Managcmcnt positions are filled from corporate

Training is on the job

Each operating unit is run indcpcndcntly

The customer comes first

WC recruit most applicants then weed out the unsuitable candidates

Our guarantee is not documented or not an established criteria

Decisions arc made at corporate level and passed down

There are no service guarantee policies

Most decisions are made by corporate

Our staff turn-over is high (25%+)

Corporate culture does not influence the unit operations

Our computer systems are dated