Business and Tourism Management
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Introduction
Leadership and change are fundamental to achieving success and evolution in any organisation. In very broad terms, leadership can be defined as that process by which an individual influences a group of individuals to achieve a common goal. The leader guides the team in the set vision and offers direction as well as motivation. On the other hand, change is the act or process through which something becomes different. It's an obvious part of organisational life and can exhibit itself in many forms, from new technology to changing policy or structural adjustments.
This essay seeks a closer examination of the intricate relationship between leadership and change management in terms of conceptual underpinnings in these practices. The work will begin with identifying and reviewing major leadership theories which provide insights into how leaders work in relation to their teams. Then, it goes on to point out and summarise theories about change management explaining the approach organisations and their leaders take when dealing with the change process. This essay will expand on a key individual in the tourism industry, decide whether their leadership is defined or influenced by theoretical concepts, and then critically assess the strengths and weaknesses of the leadership in change management. Finally, through conclusion, the present findings and recommended changes will be summarised based on this analysis.
The rest of the essay is broadly categorised under four headings. First, the identification and review of theories of leadership should give an overview of several key frameworks of leadership and a deeper examination of two selected theories. Identification and review of the theories of change management should focus on the analysis of the frameworks of change management and the evaluation of two in particular. The third part of the essay will be about leadership in tourism where the author will give an overview of the impact of the theories of leadership in the formation and implementation of their style by looking at how that style of leadership impacts the management of change.
Main Body
Identification and Review of Leadership Theories
To identify and review leadership theories, theoretical knowledge about leadership and its general influence on management has to be applied.
The basis for understanding how leaders influence, guide, and motivate their teams to pursue the realisation of organisational goals is formed by leadership theories. Among them, several developed leadership theories represent a difference in expertise, giving forth differing insights into leadership dynamics and styles that shape the way leaders deal with followers. Generally, there is a need to understand these leadership theories when analysing effectiveness and outcomes in organisational success. Four prominent leadership theories identified and explained below include:
Transformational Leadership Theory
Transformational Leadership Theory emphasises the value placed on leadership inspiring and motivating followers to achieve more for the organisation than they might achieve through their own self-interest. Transformational leaders are vision-inspiring individuals who have a commitment to that vision and inspire people toward superior performance. Four essential leader behaviours define this type of leadership: idealised influence, inspirational motivation, intellectual stimulation, and individualised consideration.
Idealised Influence: This is the quality of leadership about being an ideal for the follower whom he earns trust and admiration.
Inspirational Motivation: A leader has articulation of an inspiring vision that builds up and energises the followers.
Intellectual Stimulation: It stimulates creativity and innovation by provoking every follower to think out of the box, challenging him or her to think of something from his or her mind in new ideas which have to be passed and shared.
Individualised Consideration: This is attention towards individualised needs and development of every follower.
Transformational leadership, therefore, draws its strength from creativity in inspiring innovation and team cohesion. Most of all, though, the transformational leader fosters an excellent organisational culture. It is not surprising then that in such tourism industries as creative, customer-service-conscious, and also adaptable in operation, it is easy to make businesses stand out and even gain a competitive edge within a very competitive market. On the other hand, this form of leadership has one the drawbacks that may result in burnout from the employees, in case the vision of the leader is very high or demanding. For example, the followers may get overwhelmed by innovation and transformation. The speed might be unbearable for the followers, and hence they may disengage.
Transformational leadership in tourism: Leaders who transform the minds of the team and make them embrace sustainable practices, innovate using technology, and improve guest experiences are all examples of transformational leadership. These leaders create a vision of an eco-friendlier and customer-centric future that inspires their teams to actually work toward those goals; it often fosters high creativity and guest satisfaction. If the vision is not clear or creates stress and pressure on the employees, it can lead to stress and turnover in that organisation: especially in high-pressure environments such as luxury hotels or fast-paced travel agencies (Northouse, 2024).
Situational Leadership Theory
Paul Hersey and Ken Blanchard, the originators of the Situational Leadership Theory, employ the argument that there is no best style of leadership. Instead, effective leaders have to make the situation, in terms of the leadership moment, fit the maturity or developmental level of the followers. This situational leadership theory further extends towards the aspect of flexibility, holding that the leaders have to adjust their approach so that it meets the needs of the employees and the outlying environment.
Situational leadership differs in that there are four principal leadership styles: telling, selling, participating, and delegating:
Directive approach: telling is when followers require directive guidance as to what they should do.
Selling approach of offering direction trying to influence commitment from followers and obtaining inputs
Participating is a more cooperative approach where leaders share responsibility with their team members in decision-making.
Delegation basically entails delegating more independence to the followers in terms of the choices that they would make and holding them accountable for their work with lesser supervision.
The power of situational leadership lies in its adaptability, each team and particular situation requires a unique response. This is what gives situational leaders such a high edge in the rapidly changing, very unpredictable tourism industry. Great leaders in this industry will have to fit their approach according to market conditions, customer expectations, and global events like recession or health crisis (Pendleton and Furnham, 2012). For instance, tourism leaders need to become more directive and authoritarian when they are responding to the COVID-19 pandemic crisis but at the same time need to ensure that all measures related to security are put into action. They may then become more participative or delegative in the periods of recovery as they allow teams to contribute towards rebuilding strategies.
However, one of the liabilities of situational leadership is that responsibility places responsibility on highly self-aware leaders who correctly assess situations. Miscalculations in the development or competency levels of followers may result in inappropriate usage of leadership styles that may impede performance or cause confusion among team members.
Servant Leadership Theory
The servant leadership theory, first brought out by Robert K. Greenleaf, states that the primary role of the leader is to serve people. Servant leaders will be concerned with the good and growth of their followers more than being concerned for themselves. This type of leadership focuses on empathy, listening, stewardship, and building community.
Servant leadership, therefore in actuality, enables team members, assists them in skill building and establishes a setting in which employees feel valued and cared for. This kind of leadership, however, is best practice for areas in which the success of the operation highly depends on the engagement and satisfaction of employees, such as tourism and hospitality. Servant leaders in these industries focus on a more positive workplace culture where employees are driven to give guests the best service.
The strengths of servant leadership are employee development, high levels of trust and collaboration, and the development of a positive organisational culture. On the other hand, the challenge of servant leadership could be that it consumes so much time since the leaders require a lot of effort in the development of their followers. Servant leadership may also not be ideal for very pressured situations that require immediate decisive making decisions.
Analysis of Two Leadership Theories
Transformational Leadership Theory
Transformational Leadership Theory has gained significant attention in visioning leadership, inspiring followers to do more than they thought they were capable of doing. As mentioned above, four idealised influencer behaviours have been displayed by this theory: inspirational motivation, intellectual stimulation, and individualised consideration. The positive sides of transformational leadership include innovation sparks, strong team cohesion, and good organisational culture (Schedlitzki and Edwards, 2018).
The major problem with transformational leadership, however, is that it can force followers too hard, and this can end up in burnout if the vision set by the leader is overly ambitious and demanding. In tourism, creativity and adaptability are requirements; thus, transformational leadership will drive a business to be innovative and differentiate itself from other businesses in competition for customers in a busy market. However, this requires careful balance so that employees do not become overwhelmed by the constant, rapid change.
For example, in a tourism organisation that is looking at implementing a digital transformation process in making services relating to tourism more technologically efficient to their customers, a transformational leader would easily influence the team in embracing new technologies such as AI-driven booking systems or virtual tours. Such a vision leads to the emergence of innovative services and makes the business slightly competitive, yet the change may warp the employees, especially when they are required to learn skills to implement these new processes fast or fail to cope with the constantly changing process.
Situational leadership theory
Situational Leadership Theory is predicated on adaptability. Leaders embracing this type of style understand that the same situation requires different styles of leadership. For example, in a time of crisis, an autocratic style is likely to be most appropriate, whereas in ordinary business, a democratic or laissez-faire approach will most likely be best suited. The biggest strength of the situational approach comes in the form of adaptability enables leaders to be able to respond to the continually shifting demands of the team and the outside environment (Northouse, 2018).
Situational leadership is particularly beneficial in the tourism industry because the tourism market and consumer wants are very volatile. Today, leaders have to be flexible enough to change their style as circumstances change specifically, as the demand changes, when the economic forces of a particular region, city, and place shift, or as global circumstances unfold like the COVID-19 pandemic scenario. For instance, in the response phase, the tourism executives must become more task-oriented when implementing measures concerning safety and financial issues, but when approaching the recovery phase, they can shift to a more participative approach, involving employees in decision-making for the reconstruction of the business.
Identification and Review of Change Management Theories
Identification of Change Management Theories
Change management theories form the base frameworks through which organisations can enact successful change processes. With the dynamic business environment that currently defines the market, the need to adapt rapidly outweighs the standing competition. This section includes four of the most recognised change management theories that adopt widely different approaches to managing change:
The unfreezing stage prepares the organisation for change through the development of awareness concerning its needs. Sometimes, this process requires challenging existing beliefs, practices and practices for creating an openness to new ways. The changing stage is actually when the transition takes place by introducing new strategies, processes, or structures. The refreezing phase freezes the organisation to the new state, and the changes become inherent in the culture and practices of the organisation. Lewin's model is very simple and clear, but its critics argue that it demotes the complexities involved in the organisational change process.
Kotter's 8-Step Change Model: John Kotter's model sets forth an all-inclusive eight-step process for successful change implementation. The steps include creating a sense of urgency, building a powerful coalition, creating a vision for change, communicating the vision, empowering others to act on the vision, generating short-term wins, consolidating gains and producing more change, and anchoring new approaches in the culture. Kotter's model is a great model that encompasses leadership and communication as important elements in the change-management process and could be implemented in organisations experiencing major transitions (Kotter, 2012). Still, the linear model is incapable of capturing the dynamic nature of change within the modern organisation.
McKinsey's 7-S Framework: The 7-S Framework of McKinsey is the identification of seven factors in organisations that should be aligned to successfully undergo change. Those factors are Strategy, Structure, Systems, Shared Values, Style, Staff, and Skills. Emphasis brought out by this framework on the interaction of these elements is to tell that changes do occur in one aspect it will affect the rest. By focusing on appropriate alignment of these factors organisations ensure a complete approach towards change management and therefore easy to be successful in achieving lasting changes.
Review of Two Change Management Theories
Lewin's Change Management Model
Lewin's Change Management Model is probably one of the most developed frameworks of its time concerning change management. In fact, its process of unfreezing, changing, and then refreezing constitutes a typical change management structure for the organisation to pass from old practices to new ones. Unfreezing is very important, as it prepares the organisation for change by bringing about a shift in thinking and culture. It can involve informing people of why change needs to take place and what it will mean for them, which then decreases resistance.
The advantages of Lewin's model are that it is clear and simple. Breaking down the process of change into three distinct stages provides an opportunity for organisations to make certain what to do at each stage. However, it has been faulted for being too linear and rigid to capture the true picture of the dynamic change of modern organisations where change is not always linear. Thus, if the pacing of tourism industries by economic fluctuations or technological advancement, Lewin's model can be useful in change management in planned transitions but seems weak when dealing with sudden disruptive changes with more agile responses required.
For instance, in tourism, consumer behaviour change, environmental consideration, and technological changes are some of the most crucial change agents that have dramatically altered tourism. In terms of organisational change, such as becoming more sustainable, Lewin's model could be useful, but it would hardly contribute to the formation of reactions and adjustments when a change is strictly unexpected, such as in the case of a global pandemic (Hodges, 2021). Thus, organisations are obligated to respond by supplementing Lewin's model with much more flexible frameworks that can accommodate rapid change and uncertainties.
Kotter's 8-Step Change Model
Kotter's 8-Step Change Model is one of the most detailed models for change, which can easily be applied to large-scale organisational changes. The first step is creating a sense of urgency. This is the basis for compelling stakeholders to move for change. The sense of urgency can be developed through different means that incorporate recognition of competitive pressures, market changes, and other organisational pressures that require a change in the strategic approach.
Each step of the Kotter model starts with the one above it, so all steps are included in a systematic approach to change. An example would be creating a powerful coalition that involves winning support from key stakeholders throughout the organisation who can influence others and contribute to the push that moves the change initiative forward (Hayes, 2018). This is important because, at this stage, a diversified set of stakeholders is formed who can influence others for the change in question and address concerns from various departments.
However, despite this broadness, Kotter's model has also been criticised as being a bit rigid and linear. Organisations are mostly placed in complex environments where changes are not implemented linearly. The case of tourism is significant in that changes have to be made on many fronts including shifting consumer preference patterns and regulatory expectations.
Therefore, Kotter's model is useful for managing the process of change, particularly in a merger or acquisition context. For instance, Marriott acquired Starwood Hotels, and integrating two different kinds of cultures and operational practices was important; Kotter's steps guided Marriott's leadership to establish a new vision for the newly merged entity, empowering employees to take action and reinforce the new culture (Cameron and Green, 2020). However, leaders have to adjust to changing events and be receptive to new developments that could influence their model and that would more aptly fit the details of their organisation.
Analysis of a Leader in the Tourism Industry
Leader Identification: Arne Sorenson (Marriott International)
Arne Sorenson, formerly the CEO of Marriott International, is truly one of those iconic figures within the tourism and hospitality industry. He became the first non-family member to lead the legendary company back in 2012 when he took the reins of the company. The tenure was filled with radical changes the business had undergone, with the strategic acquisitions into Starwood Hotels and Resorts making Marriott the world's largest hotel chain. His style, cutting across the organisational, industry, and the landscape of hospitality as well, is rooted in transformational and situational leadership theories.
Impact of Leadership Theories on Sorenson’s Style
The leadership of Sorenson was transformational leadership, as it embodied a bold vision of Marriott, which was innovation, sustainability, and exceptional customer service. He inspired his team through idealised influence, inspirational motivation, intellectual stimulation, and individualised consideration that went beyond the standard he had expected from his members. Open communication is held to be of utmost importance in creating an inclusive environment that encourages innovation and improves team cohesion, as significant to Marriott's growth plans.
The leadership style, however, brought significant difficulties and there was a high potential for burnout among its employees through the ambitious changes. The integration into Marriott brought significant adaptation that instilled fear among the staff members who detest change. Moreover, Sorenson exhibited situational leadership in the wake of the COVID-19 pandemic. His ability to change his style of leadership played a prominent role while guiding the company out of the crisis in which he struck a balance between being authoritative in making his decisions and communicating with an empathetic approach.
For instance, in the pandemic situation, he had to make very critical decisions like putting most employees on furlough while simultaneously being open about the company's situation and its way out. Such a balance between authoritative and supportive leadership helped the firms maintain their employees' morale during that trying time, reflecting well on how the principles of situational leadership work practically in real life.
Evaluation of the Leader's Impact on Change Management (Positive and Negative)
Followers
Since Sorenson was a transformational leader, his leadership would have had a significant impact on the followers in terms of engagement and loyalty. He emphasised the role of employee empowerment and belongingness in the organisations from his leadership. In his communication, he expressed Marriott's mission and values to encourage employees by relating the personal development of the employees to long-term company goals. Such a policy attracted a very large number of committed people with very high morale, especially those who shared his vision of innovation and sustainability in the hospitality industry.
However, such a leadership from Sorenson stood as a challenge to some employees to encounter turbulent change, especially as in the case of being acquired by Starwood. Mergers are highly uncertain in nature. Hence, while Marriott and Starwood did merge, most of the workers on both sides feared losing their jobs due to cultural variations and differences in work methods. Though Sorenson alleviated the workers' fears by being honest and communicating the intention of Marriott to follow the core principles, the extent of the change often yields stress and pressure on those who cannot bear new tasks and responsibilities.
Organisations
Marriott International did well during Sorenson's tenure due to his transformational leadership, one of the main results of his leadership was taking Marriott through its merger and acquisitions to become the world's largest hotel chain (Miller, 2016). Another drive to the forefront of Sorenson's drives for leadership is innovation-in this case, Marriott's leader in sustainability and digital transformation, using some new technologies to enhance the guest experience and reduce environmental footprint at the same time.
Sorenson's leadership kept Marriott's strong organisational culture as the corporation grew in size and complexity. He loved to stress the importance of diversity and its importance and made Marriott an attractive employer in the industry. His leadership ushered a feeling of unity and shared purpose all over the organisation, which connected the employees from different regions and backgrounds with the overall mission at Marriott.
However, the aggressive acquisition approach of Sorenson meant risking it all. Combining Marriott and Starwood into one entity demands careful change management; it is an extremely complicated process. During Sorenson's time in the organisation, it was steered through the change, but challenges cannot be overlooked, and some of them were initially depicted by aligning two large organisations with different cultures and dealing with operational complexities. In some areas and sections, the change was accompanied by breakage in services and a reduction in customer satisfaction, some reflection on problems that reflect ill management of large organisational change.
Performance
During his tenure, Marriott experienced significant economic growth in performance with the support of globalisation and market share gain following the acquisition of the Starwood brand. Sorenson's leadership style that is transformational delivered change for the company to drive innovation as well as new business models in the form of groups working on sustainability initiatives and digital innovation in the hospitality sector.
The fast-growing rate created immense pressure on the resources and operational capabilities of the organisation. Although the integration of Starwood was successful, the process, in fact, created some short-term pain in getting the operations squared away and maintaining the customer service standards across the newly expanded portfolio. Lastly, the COVID-19 crisis severely impacted Marriott's financial position and bottom line, much like most companies in the tourism and hospitality sectors. Sorenson's situational leadership was among the main reasons why Marriott navigated through these issues, but the firm also had to make some hard decisions, like laying off employees and closing temporarily some of its properties- which, in turn, did not enhance the overall performance (Kotter, 1996).
Despite these challenges, the inheritance of Sorenson's leadership remains the key influence on long-term performance and strategic positioning in the global hospitality industry for Marriott. His ability to calibrate innovation with operational efficiency helped Marriott emerge as a leader in post-pandemic recovery and his focus on sustainability and digital transformation sets the stage for future growth.
Conclusion and Recommendations
Leadership and change management are essential ingredients for the survival of complexity in the tourism industry, characterised by high growth combined with external pressures. The case of Marriott International under the leadership of their CEO, Arne Sorenson, is the ultimate example of where real-life transformations and situational theories of leadership come together and stand each other down. Sorenson demonstrated almost perfect manifestations of Transformational Leadership Theory through his visionary and inspirational capacity for his team, and Situational Leadership Theory through his adaptability during the crisis.
Sorenson's leadership positively influenced his followers and the organisation as a whole by focusing on innovation and sustainability promoting this kind of organisational culture and ensuring loyalty through the employees. However, his leadership style at times also proved challenging; quite a few times during the integration of Starwood into Marriott, the scale of change required careful management, and while Sorenson's leadership guided the organisation through these transitions, there were bound to be employee adjustments and a reduction in operational efficiency.
From the perspective of change management, Sorenson was largely inspired by Kotter's 8-Step Change Model, where he emphasised building a powerful coalition of leaders that would enforce change and anchoring the new ways in Marriott's culture. Leadership during the COVID-19 pandemic was also in line with the principles of Lewin's Change Management Model: According to this model, Unfreezing and Refreezing must be done efficiently so that Marriott Corporation glides smoothly.
Based on these outcome results, the following are the recommendations presented towards the tourism organisations' leaders:
Balance Vision with Practicality: Whether it is growth or innovation; it's extremely crucial that a leader's vision has practicality attached to it. Clearly communicate the change roadmap for people working inside the organisation so that they can leverage the assigned resources and support to achieve the organisational goals.
Focus on Employee Care in the Change Process: Most organisational changes based on change, such as mergers or international expansion, would cause uncertainty and anxiety for employees. Therefore, leaders should focus more on open communication with mechanisms to enable employees to handle change.
Use Flexible Leadership As well, because the tourism industry is highly dynamic by nature, leadership personalities must be able to adapt their style of leadership to the specific kind of challenges they face. Such a scenario is particularly very valuable for situational leadership.
Investing in Sustainability and Digital Transformation: As shown by Sorenson's leadership at Marriott, sustainability and the push for digital transformation will characterise tourism in the future. The leaders of tomorrow should therefore focus on integrating these and developing long-term strategic plans that can keep them competitive in such a market.
References
Cameron, E. and Green, M. (2020) Making sense of change management: a complete guide to the models, tools, and techniques of organizational change. 5thed. London: Kogan Page Ltd.
Hayes, J. (2018) The Theory and Practice of Change Management. 5th edn. London: Palgrave.
Hodges, J. (2021) Managing and Leading People through Organizational Change: The Theory and Practice of Sustaining Change through People. 2nd edn. London: Kogan Page.
Kotter, J.P. (1996) Leading Change Harvard Business School Press, Boston
Kotter, J.P. (2012) Leading change. Harvard Business Review Press
Miller, D. (2016) Enterprise change management: how to prepare your organization for continuous change. 1st edition. Edited by A. Proctor. Kogan Page.
Northouse, P. G. (2024) Introduction to Leadership: Concepts and Practice. 6th edn. London: Sage
Northouse, P.G. (2018) Leadership: Theory and Practice, Sage Publications
Pendleton, D. and Furnham, A. (2012) Leadership: All You Need to Know. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.
Schedlitzki, D. and Edwards, G. (2018) Studying leadership: traditional and critical approaches, London: Sag
