Management Principles For Tourism and Hospitality

Bachelor of Commerce
in Tourism and Hospitality Management
MANAGEMENT PRINCIPLES FOR

TOURISM AND HOSPITALITY
Module Guide
Copyright © 2021
MANCOSA
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Bachelor of Commerce in Tourism and Hospitality Management
MANAGEMENT PRINCIPLES FOR TOURISM AND HOSPITALITY
Preface.................................................................................................................................................................... 2
Unit 1: Introduction to planning in the tourism and hospitality organisation .......................................................... 11
Unit 2: Decision Making ........................................................................................................................................ 29
Unit 3: Leading and leadership ............................................................................................................................. 42
Unit 4: Organising and Delegating ........................................................................................................................ 54
Unit 5: Managing change in tourism and hospitality organisations ....................................................................... 70
Unit 6: Managing diversity ..................................................................................................................................... 86
Unit 7: Managing individuals and groups .............................................................................................................. 95
Unit 8: Quality Management................................................................................................................................ 114
Unit 9: Entrepreneurship for Tourism and Hospitality.......................................................................................... 125
Answers to Revision Questions .......................................................................................................................... 136
References.......................................................................................................................................................... 167
Bibliography ........................................................................................................................................................ 169
i
Management Principles for Tourism and Hospitality
List of Contents
List of Figures and Illustrations
Figure 2.1: The tourist travel decision making process ..................................................................................... 33
Figure 2.2: The managerial decision-making process ...................................................................................... 34
Figure 4.2: External departmentalisation .......................................................................................................... 60
Figure 4.3: Product departmentalisation ........................................................................................................... 61
Figure 4.4: Customer Departmentalisation ....................................................................................................... 61
Figure 4.5: Geographic Departmentalisation .................................................................................................... 62
Figure 4.6: Matrix structures ..................................................................................................................... 63
Figure 5.1: Levels of organisational cultures .................................................................................................... 75
1 MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management

Preface
A. Welcome
Dear Student
It is a great pleasure to welcome you to Management Principles for Tourism and Hospitality (MPTH5). To make
sure that you share our passion about this area of study, we encourage you to read this overview thoroughly. Refer
to it as often as you need to, since it will certainly make studying this module a lot easier. The intention of this
module is to develop both your confidence and proficiency in this module.
The field of Management Principles for Tourism and Hospitality is extremely dynamic and challenging. The
learning content, activities and self- study questions contained in this guide will therefore provide you with
opportunities to explore the latest developments in this field and help you to discover the field of tourism and
hospitality management as it is practiced today.
This is a distance-learning module. Since you do not have a tutor standing next to you while you study, you need
to apply self-discipline. You will have the opportunity to collaborate with each other via social media tools. Your
study skills will include self-direction and responsibility. However, you will gain a lot from the experience! These
study skills will contribute to your life skills, which will help you to succeed in all areas of life.
We hope you enjoy the module.
MANCOSA does not own or purport to own, unless explicitly stated otherwise, any intellectual property rights in or
to multimedia used or provided in this module guide. Such multimedia is copyrighted by the respective creators
thereto and used by MANCOSA for educational purposes only. Should you wish to use copyrighted material from
this guide for purposes of your own that extend beyond fair dealing/use, you must obtain permission from the
copyright owner.
MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management 2

B. Module Overview
Management Principles for Tourism and Hospitality introduces students to the concepts of planning, decision-
making, organising and delegating. Students will therefore gain the necessary knowledge to effectively manage
tourism and hospitality organisations and get exposure to the possible entrepreneurship opportunities within the
sector.
The module is a 15-credit module at NQF level 5.
C. Exit Level Outcomes and Associated Assessment Criteria of the Programme
Exit Level Outcomes (ELOs) Associated Assessment Criteria (AACs)
 Apply the relevant management,  Marketing and management theories are emphasised to
marketing theories, principles to the promote the understanding of customer needs in the tourism
tourism and hospitality sector and hospitality industry to facilitate decision making
 Marketing strategies within the tourism and hospitality sector
are examined to understand market segmentation, targeting
and positioning
 Hospitality and tourism marketing, management issues are
explored to assist in overcoming challenges faced in the
sector
 Analyse environmental, socio-cultural  Economic, socio-cultural and environmental issues are

and economic issues affecting tourism explored to understand its impact on and solve problems
and hospitality development that affect the tourism and hospitality sector
 Alternative tourism products are examined to understand
the impact of attractions, accommodation, hospitality,
transport of tourism and hospitality development
 Sustainability including key components surrounding
hospitality, tourist’s attractions and intermediaries are
explored to understand its importance and relevance
 Evaluate the concepts of financial  Fundamental principles of financial management are

management to all sectors in tourism explored to highlight its role and importance in the tourism
and hospitality and hospitality industry
 Various functional areas of financial management are
evaluated to improve the management of the financial
aspects in the tourism and hospitality sector

 Execute good customer service and  Customer service is examined to understand its role in the
communication within the tourism and service industry
hospitality industry  Communication related problems and good communication
strategies are explored to encourage problem solving
through communication
 Demonstrate approaches to  Customer needs and wants in the tourism industry are
responding to tourist demand and investigated to respond appropriately to the markets’ needs
attitude. and wants
 Current and future demand, supply and management trends
are examined to improve forecasting in the tourism and
hospitality industry
 Apply the appropriate skills needed to  Information and Communication Technology (ICT)
operate computer systems within competency skills are developed to enhance the use of
tourism and hospitality technology in the tourism and hospitality sector
 Computer applications software and skills used are
developed to enhance the use of technology in the tourism
and hospitality industry
 Understand the profile and different  Market distribution channels are explored to understand
types of tourists and the distribution integrated marketing concepts, strategic planning and
systems within the tourism and interpreting supply and demand
hospitality industry  Managing intermediaries, the relationship between tourism
and entrepreneurship and the concepts of marketing for
tourism are examined to understand its purpose
 Show professional and appropriate  South African legal system is surveyed to assess its
work ethic and abide by business law appropriate relation to commercial law
in the tourism and hospitality sector.  Law of contract; the formation of a contract; principles and
rules concerning valid and binding contracts; breach of
contract; remedies on the ground of breach of contract; the
transfer and termination of obligations are explored to
understand the legal documents required in the tourism and
hospitality industry.

D. Learning Outcomes and Associated Assessment Criteria of the Module
LEARNING OUTCOMES OF THE MODULE ASSOCIATED ASSESSMENT CRITERIA OF THE MODULE
 Identify the purpose and role of  The concept and advantages of planning are explored to
planning in tourism and hospitality understand its importance for managers in tourism and
hospitality organisations
 Strategic, tactical and operational planning are
examined to understand the types of planning and their
role in tourism and hospitality management
 Barriers to planning are explored to understand their
impact on effective planning
 Examine the decision-making process  The decision-making process in tourism and hospitality
in tourism and hospitality through management is examined to understand decision
identifying the types of leadership making of tourists and managers
theories  The concepts of creativity and innovation are discussed
to understand its relationship with decision making
 Aspects of leadership and leadership theories are
explored to understand the importance of leadership
within tourism and hospitality organisations
 Describe the purpose of organising and  The concept of organising is explored to understand
delegating in tourism and hospitality what it entails for tourism and hospitality organisations
businesses  Organisational structuring and its elements are
examined to understand its importance for tourism and
 The concept of delegation and reasons for delegation
within tourism and hospitality organisations are explored
to understand the importance and improvement thereof
within these organisations
 Explain the elements involved in  Organisational change is explored to understand what it

managing diversity and change in entails for tourism and hospitality organisations and how
tourism and hospitality organisations to overcome resistance to change
 The concept of diversity and its paradigms are examined
to understand how to successfully manage diversity in
tourism and hospitality organisations

 Managing individuals and groups in tourism and

hospitality organisations are explored to successfully
understand how to manage diversity in tourism and
 Describe quality management in the  The differences between quality control, quality
tourism and hospitality sector assurance and quality management are explored to
understand the concept of quality management
 The types of quality management tools are examined to
understand how to measure quality in tourism and
 The importance of delivering good customer service is
explored to understand the relationship between
customer service and quality management
 Understand the opportunities of  Fundamental concepts of entrepreneurship and the

entrepreneurship within the tourism entrepreneurial process is examined to understand the
and hospitality sector role of entrepreneurs in the economy
 Key skills and resources required to become an
entrepreneur are explored to understand
entrepreneurship within the tourism and hospitality
sector
 Various types of business opportunities for the
entrepreneur are explored to understand the feasibility
of entrepreneurship within the tourism and hospitality
sector
E. Learning Outcomes of the Units

You will find the Unit Learning Outcomes on the introductory pages of each Unit in the Module Guide. The Unit
Learning Outcomes lists an overview of the areas you must demonstrate knowledge in and the practical skills you
must be able to achieve at the end of each Unit lesson in the Module Guide.

F. Notional Learning Hours
Learning time
Types of learning activities
%
Lectures/Workshops (face to face, limited or technologically mediated) 10
Tutorials: individual groups of 30 or less
Syndicate groups
Practical workplace experience (experiential learning/work-based learning etc.) 10
Independent self-study of standard texts and references (study guides, books, journal 35
articles)
Independent self-study of specially prepared materials (case studies, multi-media, etc.) 35
Other: Online 10
TOTAL 100
G. How to Use this Module

This Module Guide was compiled to help you work through your units and textbook for this module, by breaking
your studies into manageable parts. The Module Guide gives you extra theory and explanations where necessary,
and so enables you to get the most from your module.
The purpose of the Module Guide is to allow you the opportunity to integrate the theoretical concepts from the
prescribed textbook and recommended readings. We suggest that you briefly skim read through the entire guide
to get an overview of its contents. At the beginning of each Unit, you will find a list of Learning Outcomes and
Associated Assessment Criteria. This outlines the main points that you should understand when you have
completed the Unit/s. Do not attempt to read and study everything at once. Each study session should be 90
minutes without a break
This module should be studied using the prescribed and recommended textbooks/readings and the relevant
sections of this Module Guide. You must read about the topic that you intend to study in the appropriate section
before you start reading the textbook in detail. Ensure that you make your own notes as you work through both the
textbook and this module. In the event that you do not have the prescribed and recommended textbooks/readings,
you must make use of any other source that deals with the sections in this module. If you want to do further reading,
and want to obtain publications that were used as source documents when we wrote this guide, you should look
at the reference list and the bibliography at the end of the Module Guide. In addition, at the end of each Unit there
may be link to the PowerPoint presentation and other useful reading.

H. Study Material
The study material for this module includes tutorial letters, programme handbook, this Module Guide, a list of
prescribed and recommended textbooks/readings which may be supplemented by additional readings.
I. Prescribed and Recommended Textbook/Readings

There are at least one prescribed and recommended textbooks/readings allocated for the module.
The prescribed and recommended readings/textbooks present a tremendous amount of material in a simple, easy-
to-learn format. You should read ahead during your course. Make a point of it to re-read the learning content in
your module textbook. This will increase your retention of important concepts and skills. You may wish to read
more widely than just the Module Guide and the prescribed and recommended textbooks/readings, the
Bibliography and Reference list provides you with additional reading.
The prescribed and recommended textbooks/readings for this module are:

Prescribed
 Du Plessis, L. and Hermann, U.P. (2017) An Introduction to Tourism and Hospitality Management:
A Services Approach. Second Edition. South Africa: Van Schaik.
Recommended
 Inkson, C. and Minnaert, L. (2018) Tourism Management: An Introduction. London: SAGE
Publications.
 Mariani, M., Baggio, R., Buhalis, D. and Longhi, C. (2014) Tourism Management, Marketing, and
Development: Volume I: The Importance of Networks and ICTs. United States: Palgrave MacMillan.
 Page, S.J. (2014) Tourism Management. Fifth Edition. London: Routledge.

J. Special Features
In the Module Guide, you will find the following icons together with a description. These are designed to help you
study. It is imperative that you work through them as they also provide guidelines for examination purposes.
Special Feature Icon Explanation
The Learning Outcomes indicate aspects of the particular Unit you

LEARNING OUTCOMES
have to master.
The Associated Assessment Criteria is the evaluation of the

ASSOCIATED
students’ understanding which are aligned to the outcomes. The
ASSESSMENT
Associated Assessment Criteria sets the standard for the successful
CRITERIA
demonstration of the understanding of a concept or skill.
A Think Point asks you to stop and think about an issue. Sometimes
THINK POINT you are asked to apply a concept to your own experience or to think
of an example.
You may come across Activities that ask you to carry out specific
tasks. In most cases, there are no right or wrong answers to these
ACTIVITY
activities. The purpose of the activities is to give you an opportunity
to apply what you have learned.
At this point, you should read the references supplied. If you are
READINGS unable to acquire the suggested readings, then you are welcome to
consult any current source that deals with the subject.
PRACTICAL
Practical Application or Examples will be discussed to enhance
APPLICATION OR
understanding of this module.
EXAMPLES
You may come across Knowledge Check Questions at the end of

KNOWLEDGE CHECK each Unit in the form of Knowledge Check Questions (KCQ’s) that
QUESTIONS will test your knowledge. You should refer to the Module Guide or
your textbook(s) for the answers.
You may come across Revision Questions that test your

REVISION QUESTIONS
understanding of what you have learned so far. These may be

attempted with the aid of your textbooks, journal articles and Module
Guide.
Case Studies are included in different sections in this Module

CASE STUDY Guide. This activity provides students with the opportunity to apply
theory to practice.
You may come across links to Videos Activities as well as

VIDEO ACTIVITY
instructions on activities to attend to after watching the video.

Unit
1: Introduction to planning in the
tourism and hospitality organisation

Unit Learning Outcomes
CONTENT LIST LEARNING OUTCOMES OF THIS UNIT:
1.1. Introduction  Introduce topic areas for the unit
1.2. What is planning?  Explain the concept of planning for tourism and hospitality
organisations
 Explain the importance of planning for the tourism and

hospitality sector
1.3. The advantages of planning for  List the advantages of planning for managers in tourism and
tourism and hospitality managers hospitality organisations
1.4. Types of planning  Distinguish between strategic, tactical and operational

planning
 Describe the process of goal setting for tourism and hospitality
managers
1.5. Barriers to successful planning  Discuss barriers to effective planning and identify techniques
to overcome these barriers
1.6. Summary  Summarise topic areas covered in unit
Prescribed and Recommended Textbooks/Readings
Prescribed Reading/Textbook
 Hermann, U.P. and Du Plessis, L. (2016) An Introduction to Tourism
and Hospitality Management: A Services Approach. Second Edition.
South Africa: Van Schaik.
Recommended Readings
 Erasmus, B., Rudansky-Kloppers, S. and Strydom, J. (2019)
Introduction to Business Management. Eleventh Edition. South Africa:
Oxford University Press.
 Inkson, C. and Minnaert, L. (2018) Tourism Management: An
Introduction. London: SAGE Publications

1.1 Introduction
This learning unit provides knowledge on the primary function of management, namely planning. Focus is placed
on the planning process in the management of tourism and hospitality organisations. It is important for managers
to know how the organisation will look like in the future. Planning assist managers to make well thought-out choices
and decisions today for changes that might occur in the future. Thus, providing a platform for managers to prepare
for changes in the future. To conduct proper planning, managers need to know what planning is and what the
advantages of planning are. Planning can also be divided into three categories, for example, strategic planning,
tactical planning and operational planning. Successful planning also includes the development of goals and
objectives and to get individual employees involved in the execution of these plans. The barriers to effective
planning are also discussed and ways to overcome them.
1.2 What is planning?
EXAMPLE 1.1
First Radisson Red hotel coming to V&A
Cape Town’s V&A Waterfront will soon boast Africa’s first Radisson Red hotel. The hotel,
which is expected to be opened later this year, will employ more than 100 people. The
development has been described as a welcome boost for the city’s job creation goals.
The Radisson Red hotel, part of the Carlson Rezidor Hotel Group, is a unique structure
inspired by art, music and fashion. Curator Dale Simpson said the hotel would shake South
Africa’s hospitality industry with its bold new philosophy. Simpson said it would offer an
exuberant and unique take on modern hospitality. “We are excited to be situated in the
wonderful city of Cape Town,” he said. “As we build towards developing in September, we will
very much engage with the local talent in Cape Town.” Simpson said the hotel was built
following studies which showed that travellers were looking for quality and genuine
experiences. He said the desire to just see the big-ticket items when visiting a destination was
no longer the main attraction. “Travellers want to explore the destination from a lifestyle point
of view, they want to know where the best coffee is served, where the local food markets
operate and where the most exciting restaurants in the neighbourhood are. ”The drive of
localisation continues. At Radisson Red, we look forward to sharing all our knowledge and
foraging all of our areas to offer guests that genuine quality experience in Cape Town.”
Simpson said the V&A Waterfront, together with leading architects, had transformed six grain
silos into modern sustainable spaces. “Radisson Red embraces freedom, flexibility, fun and
will bring these elements to life through a whole new type of guest experience. “We’re a city
hotel for an ageless expressive crown, and by occupying Silo Six, we’re right in the heart of
the bustling Waterfront, amidst the city’s vibrant nightlife, only 25 minutes from Cape Town

International Airport,and all the while boasting Instagram-worthy harbour and mountain views.”
He said the V&A development followed successful launches in Brussels and Minneapolis, with
Campinas and Glasgow also expected to follow suit. He said that adding to the buzz would be
the highly-anticipated Zeitz Museum of Contemporary Art Africa (Zeitz Mocca), set to open in
September. “Art is always at the heart of Red and our dynamic design is both inspiring and
functional. "So it makes sense that we’d be neighbouring the world’s largest museum
dedicated to showcasing contemporary art from Africa and its diaspora.”
Simpson added however, that beyond the hotel’s dynamic location that would prove attractive
to guests, the hotel would also boast trends and lifestyle of the ageless millennial, tapping into
modern, high-tech travellers. “In addition to our 252 contemporary rooms and fully equipped
gym, the hotel will house four events and games studios for up to 90 guests, ideal for hosting
high-octane meetings and social occasions. It probably goes without saying, but guests will be
able to access super-fast free wi-fi and 24/7 entertainment tech throughout the property.
Additional good news for all animal-lovers is that all "fur babies" of 8kg or under are welcome
to stay at the hotel too.”
(Source: Booysen, J, 2017)
The example highlights that travellers are looking for quality and genuine experiences when visiting a destination.
The Radisson Red hotel offers exactly that, by providing the traveller unique experiences with music, art and
fashion as inspiration. The Radisson Red hotel could not have achieved this without having a proper plan in place.
The hotel’s plan for success was built on achieving goals of providing quality and unique traveller experiences. By
implementing their plan, the hotel could successfully establish itself as the leader in providing quality experiences.
Tourism and hospitality organisations need to plan in order to achieve success. In other words, they will have to
plan in order to reach specific goals within the organisation. Without proper planning, tourism and hospitality
organisations might not know what they need to do today and how they need to do it, to be successful tomorrow
and in the future. Planning enables managers to provide answers to the following important questions: What do
we need to do today to be successful tomorrow? What goals should we put in place to achieve success as an
organisation? Why do we need to have these goals within the organisation? Why should we follow specific plans
or strategies to reach our goals as an organisation? When must be start with these plans or strategies to achieve
goals set for organisational success? How can we motivate employees to assist in the achievement of these goals?
Who should be responsible for setting the goals and planning for success? By answering these questions,
managers will be able to determine what the organisation wants to achieve and how it will be done. Planning is
thus an activity in which an organisation’s goals or objectives are defined and the overall strategies and plans for
achieving those goals are determined (Du Plessis, 2016a:38).

Planning can then be defined as the activity of establishing the vision, mission, goals and objectives of the
organisation (Du Plessis, 2016a:38).
VIDEO ACTIVITY 1.1
Watch the following video and define planning in your own words
https://www.youtube.com/watch?v=29qE4FSxc1w
THINK POINT 1.1

Provide your opinion on the following statement: “Without planning, none of the other
management functions (i.e. organising, leading and controlling) can be carried out
successfully.”
1.3 The advantages of planning for tourism and hospitality managers

Planning can ensure success for tourism and hospitality organisations when done correctly and implemented
properly. Although planning is a time-consuming task, it will provide direction for the organisation and will improve
employee understanding of why the organisation is in existence. When employees are involved in the planning of
goals and objectives, it will improve employee loyalty towards the organisation, foster a positive attitude and
motivate employees to be committed to work towards the organisation’s end goals and objectives. (Du Plessis,
2016a:39).
READINGS 1.1
Visit the following website to read more on the advantages of planning:
https://www.cliffsnotes.com/study-guides/principles-of-management/organizational-
planning/recognizing-the-advantages-of-planning.
The following six advantages of planning are highlighted by Du Plessis (2016a:40) as the most important:
1.3.1 Planning forces tourism and hospitality managers to look forward and expect change
Planning forces managers to consider any possible changes (opportunities or threats to the organisation)
in the environment that might happen in the future and then to formulate strategies to prepare for these
changes. The organisation will be more prepared as proper planning will reduce the impact of these
changes on the organisation and the associated risks that occur with change. It can also be noted that
planning then guides decision-making within the organisation.

1.3.2 Planning creates a collaborative effort among all tourism and hospitality employees
Planning provides direction to all employees in an organisation because everyone then knows where the
organisation is headed. This ensures collaborative effort among managerial and non-managerial
employees towards attaining the same goals. All employees (managerial and non-managerial) within
different departments work together (in a team or individually) in the coordination of activities as they
know what are expected of them to achieve these goals and objectives.
1.3.3 Planning is a critical tool for monitoring progress within tourism and hospitality organisations
Planning creates the foundation of control as it includes the formulation of goals and objectives. In other
words, it is the controlling function to monitor and determine if goals and objectives have been met.
Progress can be monitored by comparing the actual results with the planned goals and objectives. If the
actual results are different from the planned results, the necessary steps must be taken to correct them.
1.3.4 Planning ensures the correct distribution of resources within tourism and hospitality organisations
Planning ensures that managers think in advance the resource needs of the organisation and to allocate
these resources effectively so that the set goals and objectives can be met. Planning thus increases
productivity and eliminates unnecessary use of resources.
1.3.5 Planning assists the modern tourism and hospitality organisation

Today’s organisations make use of part-time and contract workers. Planning then allows these employees
to align their work activities with the organisation’s goals and objectives.
1.3.6 Planning motivates creative and innovative thinking within tourism and hospitality organisations
The process of planning allows managers to think creatively and introduce new and innovative ways of
doing things in the organisation. Planning stimulates creative and innovative ideas to use opportunities in
the best way possible and to minimise the impact of threats.
ACTIVITY 1.1
In your view, explain the consequences of inadequate planning within a tourism or

hospitality organisation.

1.4 Types of planning

Planning can be divided into three types, namely strategic planning, tactical planning and operational planning.
These plans are discussed in detail next.
1.4.1 Strategic planning

Strategic planning has the following key characteristics (Du Plessis, 2016a:41, 48):
 Strategic planning outlines the overall goals of the organisation.
 Strategic plans are formulated by top-level management.
 The entire organisation is the focus area for strategic plans.
 The time frame for strategic plans are long term (3-5 years or 5+ years)
The strategic planning process consists of five steps as highlighted by Du Plessis (2016a:42-47). These
will be discussed next.
1.4.1.1 STEP 1: Identify the organisation’s vision and mission

The first step in the strategic planning process is to develop a mission and vision statement for the
organisation. A vision and mission statement provide direction for the organisation and all employees will
then know where the organisation is headed.
A vision statement is a broad statement of what the organisation would like to achieve in the future. In
other words, a vision statement outlines the overall goals and dreams of the organisation.
A mission statement is more detailed and specific. It specifies and identifies goals to achieve the vision
of the organisation. Thus, a mission statement will tell managers how they will reach their dream (or how
they will reach the organisation’s vision).
EXAMPLE 1.2
Vision statement:
To be the leader in inbound travel in South Africa within the next 5 years.
Mission statement:
 To provide quality services.
 To exceed all expectations of travelers.
 To provide unique inbound travelling experiences.

1.4.1.2 STEP 2: Conduct a SWOT analysis

During this stage the organisation analyses the internal environment and external environment (SWOT
analysis).
The internal environment consists of Strengths and Weaknesses of the organisation. The organisation
has total control over what is happening in the internal environment. The organisation must use its
strengths and combat any weaknesses within the organisation in order to compete effectively in their
environment.
The external environment consists of Opportunities and Threats. The organisation has no control over
the external business environment. The influence of the external environment can be seen as an
opportunity or a threat and is therefore important for the organisation to identify within their environment.
The elements in the external environment include the following (Du Plessis, 2016a:44-46):
 The political/ legal environment (includes changes in national or governmental laws; the political
stability of the country; income tax regulation; international trade agreements; etc.).
 The economic environment (includes for example, money supply; interest rates; economic
growth; employment versus unemployment; recessions; etc.).
 The socio-cultural environment (relates to religion; culture; lifestyle and behaviour; level of
education; etc.).
 The technological environment (includes new research, innovations and inventions that can
enhance productivity. For example, the internet).
1.4.1.3 STEP 3: Identify applicable goals and objectives
Goals and objectives should be formulated based on the strengths, weaknesses, opportunities and
threats as identified by the assessment of the external and internal environments (SWOT analysis). The
goals and objectives developed during this stage will guide managers in decision making.
1.4.1.4 STEP 4: Implement the goals and objectives

During this stage, managers must efficiently and effectively implement and successfully address the
identified goals and objectives to ensure long-term success.

1.4.1.5 STEP 5: Evaluate the results

The last step is to evaluate the results. This is done by determining how well the goals and objectives
have been achieved, how well the organisation differentiated itself from the competitors and how well the
organisation utilised the opportunities and strengths of the organisation.
1.4.2 Tactical planning

Tactical planning has the following key characteristics (Du Plessis, 2016a:41, 47-48):
 Tactical plans are developed to formulate goals to meet the needs of the strategic plans.
 Tactical plans are formulated by middle-level management.
 Tactical plans focus on the functional areas of the organisation.
 The time frame for tactical plans are intermediate (1-3 years).
THINK POINT 1.2

In your opinion, what is the difference between policies, rules and procedures? Do you
think that the development of policies, rules and procedures can be done during the
planning process? State the reason for your answer.
1.4.3 Operational planning

Operational planning has the following key characteristics (Du Plessis, 2016a:41, 48):
 Operational plans are developed to formulate and outline activities on a day-to-day basis that
will fit the overall goals and objectives of the organisation.
 Operational plans are formulated by lower-level (first line) management.
 The focus area of operational plans is the day-to-day, week-to-week and month-to-month
functioning of the organisation.
 The time frame for operational plans are short term (less than a year).

ACTIVITY 1.2
Compare between the types of planning by the reason for development, time frame, focus
area, and who carries it out. Write your answer in table format.
1.4.4 Goal setting and goal formulation

Both goals and plans provide direction for tourism and hospitality organisations. However, we can
distinguish to some extend between the two terms. By understanding the difference between goals and
plans, we can then look at how interrelated these two terms are (Du Plessis, 2016a:49).
Goals can be defined as the desired targets or outcomes of an organisation (Du Plessis, 2016a:49).
Plans are the documents that specify how the objectives are going to be met (Du Plessis, 2016a:49).
Goals then give direction to all management actions and decisions that need to be taken and are
formulated for each level of planning that is developed (for all strategic plans, all tactical plans and all
operational plans) (Du Plessis, 2016a:49).
In order to formulate goals in fulfilling their managerial purpose, goals need to meet certain conditions.
These conditions for well-formulated goals are outlined by Du Plessis (2016a:49):
 Specificity
Goals need to be specific with a clear indication of what needs to be achieved within a specified
time frame for accomplishment.
 Measurability
Goals should be measurable. In other words, goals should be measured to facilitate control. This
will enable manager to evaluate whether the goal has been achieved or not.
 Attainability
Goals should not be too difficult to achieve. Meaning, goals should be attainable and realistic.
But when goals are too easy to attain, employees might not be motivated to work hard. It is
therefore important to have a balance between the two.
 Flexibility
Goals must be subject to change due to the ever-changing external environment. Goals should
be able to change when the conditions under which the goals have been developed change. If
organisations are resistant to change, employees will attain goals that are no longer realistic.

 Acceptability
It is important that all managers and employees collaborate during the development of goals.
This will allow that the set goals are consistent with the attitudes, values, norms, preferences
and perceptions of all within the organisation and will motivate managers and employees to work
hard to achieve these goals.
1.4.5 The process of setting goals

There are two approaches that can be followed to formulate goals in organisations. These are identified
by Du Plessis (2016a:50) as the following:
1.4.5.1 The traditional approach to goal setting

In the traditional approach the formulation of goals is controlled by top management. Meaning
that the formulation of goals is centralised. This approach assumes that top managers know
what is best for the entire organisation. As goals are formulated at top level and then the
information flows down to the entire organisation and each functional area, each employee
then knows what is expected of him or her to contribute to the achievement of the overall
goals of the organisation. Managers must then constantly monitor and evaluate departments
and individual employees to ensure achievement of the organisation’s goals.
1.4.5.2 Management by objectives (MBO) approach to goal setting

By following the management by objectives approach, goal formulation is guided by each
employee on an individual basis. In other words, the formulation of goals is decentralised.
This means that goals are not controlled by top management and then enforced down the
organisation. Goals are used to motivate employees and not just to ensure that employees
are doing their jobs. This approach allows that the overall objectives are converted into
specific objectives for different departments and individual employees. Department and
employee performance are then measured based on individual goals that is aligned with the
overall goals of the organisation. If all individual goals of employees and departments are
achieved, then ultimately the goals for the organisation will be achieved. The focus of this
approach is to allow employees to accomplish the goals they have had a hand in setting.
Employees are then generally more productive and therefore an overall improvement in
productivity of the organisation.

THINK POINT 1.3

Which process of goal formulation will you follow if you were the manager at a hospitality
organisation? State the reason for your answer.
1.5 Barriers to successful planning
1.5.1 The main barriers to successful planning

Planning is not always an easy task. It requires from managers proper leadership, creativity to come up
with new ideas constantly and the ability to think long term. In some cases, managers fear the future,
change and uncertainty, which leads to a fear of planning. If this is the case, managers will then rather
focus on daily activities and not at the future. It is important to know the barriers to planning and how to
overcome them (Du Plessis, 2016a:51).
READINGS 1.2
Visit the following website for additional reading on the barriers to effective planning:
https://smallbusiness.chron.com/six-barriers-effective-planning-45281.html.
The main barriers to successful planning are identified by Du Plessis (2016a:51-52) as the following:
 Planning requires accurate information
Accurate information with regards to the current and future state of the organisation is needed
to create successful plans and to aid in decision making. Accurate information is required to
make informed decisions on the allocation of resources within the organisation in order to
achieve the set goals and objectives.
 Planning is an expensive and time-consuming process

Planning is an ongoing project and not once-off. By collecting accurate information, and then
formulating different scenarios based on the information collected, takes time. Costs are
associated with planning due to its ongoing nature and continues collection and analysis of
accurate information.
 Planning lacks flexibility

Plans must embrace change and adapt to changes within the external environment. This is
especially the case for plans that do not always accommodate and foresee all the changes that
can happen in the external environment.

 Resistance to change
Managers who are reluctant to adapt to ongoing change will not be successful in planning. It is
then important that when managers plan, that they foresee changes that may happen in the
future.
 Poor understanding of goal formulation

Managers who fail to understand the concept and importance of planning will be unable to plan
successfully.
1.5.2 Guidelines to overcome the barriers to successful planning
The following guidelines can be followed to overcome barriers to successful planning (Du Plessis,
2016a:52-53):
 Plans should constantly be updated and revised based on accurate information collected from a
changing external environment.
 Planning should start at the top level of management and should set the tone for subsequent
planning at the middle- and lower-management levels. This will establish a proper climate for
planning for the entire organisation.
 The plans that are developed at the top level of organisations should be properly communicated
to all the other levels in the organisation. This includes communication to all employees of how
all the plans are connected.
 Managers should be aware of all the barriers to successful planning and must accept that plans
must undergo continual adjustments and compromises.
 Contingency planning provides alternative courses of action in case where an intended plan is
unexpectedly interrupted or no longer appropriate.

CASE STUDY 1.1
Read and answer the following questions based on the case study:
Jack in the Box
Jack in the Box recently announced plans to open 100 to 150 restaurants combined with
convenience stores over the next five years. The stores will feature full-size restaurants
and also sell gasoline and other typical convenience store items such as bread and milk.
How did Jack in the Box arrive at this decision? According to the company’s CEO, Bob
Nugent, an analysis of the convenience-store market indicated that there was plenty of
opportunity, primarily because no individual company dominates. Nugent also justifies his
decision on the basis of research which indicates that a convenience-store customer is
twice as likely to eat fast food as a non-convenience-store customer.”
(Source: Essays, UK., 2018).
Answer the following questions based on the case study:
1.1 Identify the type of plan Jack in the Box is currently following to be a successful
organisation. Justify your answer.
1.2 Conduct a SWOT analysis for Jack in the Box to ensure that they are well prepared
for the new business concept they would like to pursue.
1.3 Develop a vision and mission for Jack in the Box for their new business concept.
1.6 Summary
This learning unit focused on aspects of planning. It is important that managers plan for the future and that goals
are communicated and accomplished to ensure the success of the organisation. Every level of management and
individual employee must work together to achieve the overall goal of the organisation. Planning has many
advantages and allows managers to recognise opportunities and anticipate threats that may occur due to the
changing external environment. Planning is thus an ongoing process which requires accurate information to
formulate the goals and objectives to ensure success.

KNOWLEDGE CHECKS QUESTIONS 1.1
Indicate if the following statements are true or false (Du Plessis, 2016a:53-54):
1.1 Only top management is responsible for formulating plans for an organisation.
1.2 Strategic plans are developed to address the day-to-day operations of a tourism and
hospitality organization.
1.3 Planning ensures the correct distribution of resources.
1.4 The economic environment is responsible for changes in inflation, exchange rates and the
disposable income of people.
1.5 The political environment deals with organisational politics in the micro-environment.
1.6 The last step in the strategic planning process is to evaluate the results.
1.7 Creating a vision statement for a tourism and hospitality organisation is essential as it
answers the question of what the organisation’s primary reason for existence is.
1.8 Planning is the activity of establishing the vision, mission and operational activities of the
organization
1.9 The nature of the tourism and hospitality industry requires that managers only formulate
standing plans.
REVISION QUESTIONS 1.1
1.1 Define planning in your own words.
1.2 List the advantages that accrue to tourism and hospitality organisations when thorough
planning is undertaken.
1.3 Explain how strategic planning differs from other types of planning.
1.4 Explain the process of goal setting for tourism and hospitality managers.
1.5 Discuss barriers to effective planning and identify techniques to overcome these barriers.

1.7 Answers to think points, activities, video activities, case study and knowledge check questions
Video activity
The video activity is open for interpretation. Suggested answer: Determining the organisation’s goals and
defining the means for achieving them
Think points
The think points are open for interpretation. Student to provide own opinion.
Activity 1.1
 Managers will only focus on the now and day-to-day operations of the organization and will not take on
any growth opportunities for the organization or be prepared for future changes in the environment
(such as changing needs of customers).
 There might not be any collaborative effort among employees to work towards one goal.
 Organisational progress might not be monitored in the correct way.
 Resources might not be correctly distributed within tourism and hospitality organization.
 There might be a lack of creative and innovative thinking within tourism and hospitality organization.
Activity 1.2
Type Reason Time frame Focus area Management level

Strategic planning To outlines the overall Long term (3-5 The entire Top-level
goals of the years or 5+ organisation management
organisation years)
Tactical planning To formulate goals to Intermediate (1- The functional Middle-level
meet the needs of the 3 years) areas of the management
strategic plans organisation
Operational To formulate and Short term (less The day-to-day, Lower-level (first
planning outline activities on a than a year) week-to-week and line) management
day-to-day basis that month-to-month
will fit the overall goals functioning of the
and objectives of the organisation
organisation

Case study
1.1 Strategic planning
1.2 Strengths
 Offers a variety of products at one place
 Nugent is a fast food restaurant chain with conveniece-store buyers (a set market)
Weaknesses
 Might not have enough employees for the new idea
 New employees must first be trained
Opportunties
 New concept of combining restaurants with convenience stores
 No individual company dominates in this area
Threats
 This change will be timeous
 Due to the timeous five-year plan, competitors might offer the same services before Nugent implements
it at their own restuarants
1.3
Vision: To be the leader in the sector with restaurants combined with convenience stores over the next five
years.
Mission statement:
 To provide quality products and services
 To exceed all expectations

Knowledge checks
1.1 False
1.2 False
1.3 True
1.4 True
1.5 False
1.6 True
1.7 True
1.8 True
1.9 False

Unit
2: Decision Making

2.1 Introduction  Introduce topic areas for the unit

2.2 Decisions and decision making by  Define the concept of decision making
tourists
 Identify and describe the decision-making process of tourists
2.3 The decision-making process in  Identify and describe the decision-making process of
tourism and hospitality managers
management
2.4 Decision-making conditions  Differentiate between the three conditions of decision-

making
2.5 Types of decisions  Understand the different types of decisions
2.6 The role of creativity and innovation  Describe the relationship between decision making,
in decision making creativity and innovation
2.7 Summary  Summarise topic areas covered in unit


2.1. Introduction
Tourists and managers must make decisions daily. In order to make decisions a specific process needs to be
followed. The decision-making process is applied within certain decision-making conditions. The conditions under
which decisions are made will determine the level of certainty and ease of making decisions. If the tourist knowns
exactly the budget and final destination it is relatively easy to make travel decisions. If the tourist did not have time
to search alternative destinations it might be more difficulty to make a final decision on where to travel to. This is
the same for managers within tourism and hospitality organisations. For example, when hosting a wedding there
will be routine decisions such as which décor to use, entertainment, catering options, etc. These routine decisions
are easy to make because managers are aware of the potential outcomes. However, some decisions require
creativity and innovation in order to solve a problem. For example, when the electricity goes off during the wedding
a decision to start the generator is made under uncertainty as there is no information available as to when the
power will be restored. It is important to know that all levels of management are faced with different types of
decisions under specific decision-making conditions.
VIDEO ACTIVITY 2.1
Watch the following video and explain the concept of decision making in your own words
https://www.youtube.com/watch?v=Jg62oeEzMkU
2.2. Decisions and decision making by tourists

Tourists are faced with making decisions around a range of issues. They need to decide where to travel to, how to
travel, who to travel with, what the travel budget is, and many other issues to decide on (Hermann, 2016a:58).
The primary decision for tourists is the decision to travel. The decision to travel is influenced by the tourist’s
motivation to travel (see Figure 2.1). Tourists are firstly influenced by indirect influencers from the external
environment such as the political, social, economic or technological environment. This external environment
influences a tourist’s needs and desires. For example, the potential tourist may have received a performance
bonus, his best friend living in a different country is getting married, or he would like to take a break from a stressful
work environment. In other words, a tourist’s need to travel may be stimulated by health, stress and money. These
needs and desires create a motivation to travel, for example, to escape, to spend time with family and friends, to
learn, etc. (Hermann, 2016a:59).

THINK POINT 2.1

Think back on your last travel expedition. Where did you travel to?
Why did you travel?
How long did it take you to reach the destination?
What means of transport did you use to reach the destination? What activities did you do while
travelling?
Were you satisfied with the activities the destination presented?
Were you satisfied with the service delivered at the destination?
Will you visit the destination again?
This motivation, or desire to do something, can also be influenced directly by past experiences, perception and
image of service providers and destinations. Tourists will be more attracted to service providers and destinations
with a good image than those with a poor image. Tourists will evaluate all travel alternatives and will make a
decision based on cost, convenience, quality, value for money and any other benefits it may have. The tourist will
then make a choice based on their evaluation that best suit their needs and are most appealing to them. The tourist
will purchase the service and experience the service by physically travelling and utilising the service that was
purchased. If the purchased service meets or exceeds the expectations of the tourist, he will be satisfied with the
service and most probably purchase it again or will purchase a similar service. If the purchased service does not
meet the expectations of the tourist, the tourist will be dissatisfied and will probably not purchase the service again
(Hermann, 2016a:59).

DIRECT
INFLUENCERS:
INDIRECT
INFLUENCERS
(External 1. Evaluation of
environment): alternatives based
on past experiences, SATISFACTION/DISS
CONSUMPTION
perception and ATISFACTION
1. Needs and desires image of service
providers and
2. Motivation to destinations
travel
2. Purchase selected
alternative
1Figure 2.1: The tourist travel decision making process
2.3. The decision-making process in tourism and hospitality management

Managers at tourism and hospitality organisations must also make decisions. A decision can be defined as the
action by managers when making choices (Hermann, 2016a:60). Decision making is done on all levels of service
delivery within the organisation, from lower level up to top level management (Hermann, 2016a:60).

Decision making follows a seven-step process (see Figure 2.2) and will be discussed next (Hermann, 2016a:60-
62).
1.
Identify and
diagnose the
problem
2.
7.
Set goals and
Follow up
decision
and evaluate
criteria
6. 3.
Implement Search for
the solution solutions
5. 4.
Choose Compare
among and evaluate
alternative alternative
solutions solutions
2Figure 2.2: The managerial decision-making process

(Source: Hermann, 2016a:60).
2.3.1 Identify and diagnose the problem
Managers must firstly determine exactly what the problem is that needs to be solved and consult with
relevant stakeholders to ensure that the decision is based on the correct information about the problem. A
problem can be defined as a question that requires answering or something that requires a solution. A
problem should also be diagnosed, which means that managers must not identify the problem but also
determine the possible positive and negative causes of the problem.

2.3.2 Set goals and decision criteria
The next step is to set goals to solve the problem that was identified and diagnosed. The way in which the
problem is solved is determined by the different aspects of decision criteria which should be specific,
measurable, achievable, reliable, timeous.
2.3.3 Search for solutions
After goals have been set and decision criteria have been determined, mangers must find possible ways of
solving the problem. A solution is the answer to a problem which requires creativity and innovation from
managers. Creativity and innovation will be discussed later in this unit.
2.3.4. Compare and evaluate alternative solutions
Possible solutions must be evaluated based on the goals that was set to resolve the problem identified.
Solutions are also assessed based on the costs and benefits to the tourism organisation or hospitality
establishment.
2.3.5. Choose among alternative solutions
The solution with the highest probability to solve the problem with the greatest benefits compared to the
costs is selected. It is sometimes difficult to choose among the solutions as the problem to solve might be
unclear or information to resolve the problem is not readily available.
2.3.6. Implement the solution
Once a solution is selected it should be implemented by tourism and hospitality managers.
2.3.7. Follow up and evaluate
Mangers should be able to select a different solution from the alternatives identified in the previous step
when the implemented solution does not provide the required results. If the expected results is achieved the
solution can be used again. Evaluation is a continuous process within the organisation to ensure that future
decisions are made accordingly.
2.4. Decision-making conditions

Managers within the tourism and hospitality industry have to make regular decisions under three main conditions
namely: certainty, risk and uncertainty (Hermann, 2016a:63-65).
2.4.1 Certainty
When the problem and solution is clear, decisions are made with certainty. This is then most ideal condition
to make decisions as managers understand the information to solve the problem. The more the same
problem occurs it becomes easier to make the decision with certainty. Within this condition managers can
look back and reflect on the decision made.

2.4.2 Risk
When there is evidence of a potential risk such as, not understanding the information to solve the problem,
it makes decision making more challenging. It can also mean that managers might have all the information
available to solve the problem but do not know the outcomes of the results.
2.4.3 Uncertainty
Uncertainty is when managers have to make a decision where the problem is not clear or where there is no
information available to resolve the problem. There may be a high probability that the decision made will not
render the results the management team wants to achieve. This is the most difficulty condition in which
managers have to make decisions based on a problem that has never occurred before.
2.5. Types of decisions

The decision-making conditions have generated three broad categories of decisions, namely routine decisions,
adaptive decisions and innovative decisions (Hermann, 2016a:65-67).
2.5.1 Routine decisions
Within the certainty decision-making condition lie routine decisions. A routine decision is made relatively
easy because managers must make these decisions often. It is easy for managers to make routine decisions
because the problem is usually well-defined, or the solution is easy to determine.
2.5.2 Adaptive decisions
It is important that managers review their original decisions. Sometimes this can lead to a routine decision
being changed or improved. When a routine decision is changed or modified, it is called an adaptive
decision. An adaptive decision is not made on a regular basis and involves some form of risk. When an
original decision is changed, it should create improved results when the adaptive decision is made next
time.
2.5.3 Innovative decisions
When problems are very vague or when little information is available to solve the problem, innovative
decisions need to be made by managers. It takes longer to make a decision as the problem to solve is
unique and never happened before. Innovative decisions are made with high levels of creativity to solve the
problem (innovation and creativity is discussed in the next section).
ACTIVITY 2.1
List any 5 routine decisions a front desk attendant makes when checking in a guest at a
hotel.

2.6. The role of creativity and innovation in decision making

In some cases, it is easy to make decisions because the information is readily available, or the problem is easy to
solve. In other cases, the problem may not be so easy to solve because information may be outdated, or it is a
unique situation. When decision making is not easy, managers need to be creative to solve the problem. Creativity
can be defined as the process of creating new ideas, forms, methods or interpretations. It needs a lot of thinking
that is time and energy consuming, but the results are innovative. Innovation is then the result of the creativity
process and occurs when something new or different is created. Managers of tourism and hospitality organisations
must possess creative traits and strive for innovation to be able to make difficult decisions in an ever-changing
environment (Hermann, 2016a:67).
Herewith some elements in order to promote creativity in a tourism and hospitality organisation (Hermann,
2016a:67):
 Managers should take on a supportive leadership style, meaning, they need to be participative and
democratic when it comes to decision making.
 Managers should offer employees discretion and autonomy.
 The organisational structure should be a flat structure with no perceivable boundaries.
 The organisational culture should be supportive of risk taking, open to new ideas and encourage non-
traditional thinking.
 Managers should be flexible and be able to share and work around thoughts and ideas.
 Managers and employees should be skilled in creative techniques.
 Managers should understand and value employee creativity.
READINGS 2.1
Visit the following websites to gain a better understanding on the role of creativity and
innovation when making decisions:
 https://cuttingedgepr.com/free-articles/core-pr-skills/can-start-using-innovative-
decision-making-strategy-2/
 https://pdfs.semanticscholar.org/8a3f/51ab7c24bc666856f989184be3403e7dabb5.p
df

CASE STUDY 2.1
What it's like to run a hotel during lockdown
On 27 March 2020, businesses had to close their doors, including hotels and accommodation
establishments in support of South Africa's nationwide lockdown and fight against the Covid-
19 threat. But there were some that had to remain open to service existing guests along with
those from other establishments that were unable to travel home due to varied reasons. One
such place is Radisson Blu Hotel Waterfront. "We’re four weeks into lockdown, and the overall
mood is positive," says Nicol Carelse, guest relations manager at the hotel. "Everyone who is
here did not envision this unfolding as it has but we are all in the same boat, so we’re navigating
through it together."
The hotel, just like all others, is not taking new bookings during the lockdown period, but it has
become home to a number of guests from surrounding hotels and other establishments around
the city. The hotel is accommodating other guests sent by their respective embassies when
South Africa went into lockdown and they found themselves unable to return home.
Health and safety top of mind
Clinton Thom, general manager of Radisson Blu Hotel Waterfront, notes that every precaution
has been taken to ensure that these guests are protected from the risk brought by Covid-19.
"We have strictly implemented health and safety measures as recommended by the World
Health Organisation," says Thom. "And while guests are free to walk around the hotel and treat
it like their home, social distancing is practised at all times." Carelse has nothing but praise for
the staff who are locked down with the guests, who she says "have been absolutely amazing
during this time", taking a turn at doing everything from answering phones to cooking breakfast
- even those not part of the chef team. "Everyone who is here has volunteered to stay here for
the entire lockdown period, and they have gone above and beyond to ensure that guests are
looked after during their stay. We’re all wearing many different hats and no roles are the same.
"For example, all HODs have a chance to make staff breakfast, while our husbands and
partners who have been able to lockdown with us here at the hotel are helping to take care of
the grounds and the garden between their own work schedules."

Lockdown lessons learned
Over the last four weeks, hotel employees have been constantly conceptualising new
initiatives and ways to entertain the inhouse guests. They created a cosy library nook with a
selection of books for guests to choose from, implemented a bingo evening for entertainment,
created special menus, celebrated special occasions with guests - and more. When asked
about their lockdown experience, employees responded very positively. "For everyone, this
really has begun to feel like a home away from home. Guests and employees interact with one
another every day, and we have all grown quite close," Carelse says. "This experience has
really taught us about multi-tasking, but also about patience, kindness and great teamwork.
We’ve really enjoyed bonding with one another over this time, and making the guests feel like
part of our Radisson family." While she says they are all missing their families and their
everyday lives, and are looking forward to getting back to what is likely to be a "new normal",
they are happy with their decision to stay on for the rest of the lockdown rather than swap out
with another team. This not only ensures that there is little risk of outsiders entering the hotel,
but also means that the guests in lockdown "won’t have to adjust to a new team of people".
Guests have also responded positively to being in lockdown at the hotel. One guest, who has
since returned home to Germany, noted that it was very tough to say goodbye as everyone in
the hotel – employees and guests – had gotten to know one another and bonded like a family.
This may be a tough time, and no one can predict what the landscape will look like when the
country emerges on the other side, but for now the local hotel industry is continuing it's warm
South African hospitality that SA is known for.
(Source: https://www.bizcommunity.com/Article/196/580/203091.html).
2.1 Identify and describe the condition(s) under which hotel managers must make decisions
in a time of lockdown. Provide a reason for your answer.
2.2 Identify the type of decisions hotel managers must make in a time of lockdown. Provide a
reason for your answer.
2.7. Summary
Successful decision-making is based on the goals that is determined to solve potential problems with the various
conditions of decision making. If mangers do not clearly identify the problem and not setting goals on how to
successfully resolve the identified problem, organisations might make uninformed decisions that will end up with
the incorrect results being achieved. Tourists who visit a destination based only on their budget and not conducting
research on external factors such as the political stability of the country might not have a memorable experience
and not being satisfied with the decision made. A hotel might make a decision to open a restaurant on its premises.
If the hotel manager does not consider the banqueting preference of guests, the restaurant might offer dishes that

is not suited. Managers at all levels must follow the decision-making process carefully, no matter the type of
decision, to ensure that well-informed decisions within the conditions of decision-making is made. Tourism and
hospitality managers must possess creativity and innovation trades to solve challenging problems.
Indicate if the following statements are true or false:
2.1 Adaptive decisions are made under a condition of high certainty.
2.2 The search for solutions is the first step in the decision-making process of tourism
and hospitably organisations.
2.3 Innovation is the process of creating new ideas, forms, methods or interpretations.
2.4 Under a condition of uncertainty, managers may have to use guesswork to make
decisions.
2.5 Routine decisions are relatively easy to make as the solution to the problem can
easily be solved.
2.1 Describe the decision-making process of tourists.
2.2 Describe the decision-making process of tourism and hospitality managers.
2.3 Differentiate between the three conditions of decision-making.
2.4 Categorise the different types of decisions.
2.5 Describe the relationship between decision making, creativity and innovation.
2.8. Answers to think points, activities, video activities, case study and knowledge check questions
Video activity
This is open for interpretation. Suggested answer: Decision making is the process of identifying problems and
opportunities and then resolving them.

Think point
This is open for interpretation. Student to provide own opinion.
Activity 2.1
 Check-in queries of guests

 Check-out queries of guests
 Booking enquiries of guests
 Room tendent scheduling
 Queries regarding billing of quests
Case study
2.1 Uncertainty: Uncertainty is when managers have to make a decision where the problem is not clear or
where there is no information available to resolve the problem. There may be a high probability that the
decision made will not render the results the management team wants to achieve. This is the most
difficulty condition in which managers have to make decisions based on a problem that has never occurred
before.
2.2 Adaptive (managers must review their original decisions) and innovative (little information is available to
solve the problem)
Knowledge checks
2.1 False
2.2 False
2.3 False
2.4 True
2.5 True

Unit
3: Leading and leadership

3.2 What is leadership?  Define the term leadership
3.3 Aspects of leadership  Describe some aspects of leadership
3.4 Leadership theories  Discuss some leadership theories
3.5 Leadership development  Elaborate on the importance of leadership development in

tourism and hospitality organisations
 Discuss methods for leadership development


3.1 Introduction
Planning, leading, organising and control is part of the core management functions. This unit will focus on how
leading applies within tourism and hospitality organisations. Managers of tourism and hospitality organisations
must possess leadership traits and lead by example to successfully influence subordinates to achieve the
objectives of the organisations. There are several leadership theories that highlights the importance of effective
leadership within different situations. Managers as leaders must portray a balance between assigning a task to a
subordinate and support the subordinate in achieving the task. The behaviour of the manager will determine if s/he
can influence employees to be motivated and enthusiastic about the task given to them. Further investment in
employees is essential especially concerning the development of their leadership skills. Leadership skills can be
developed through on the job training, coaching and mentoring and formal assessment and training programmes.
3.2 What is leadership?

Leadership directs employees to achieve the required results within a tourism and hospitality organisation. It can
therefore be defined as a process in which individuals are guided, inspired, and influenced by their managers in
order to achieve organisational goals (De Witt, 2016a:125). Tourism and hospitality managers need to be strong
leaders in order to motivate employees to work towards the same organisational goal. A successful leader will
increase moral and communication between employees. Employees will follow a leader that leads by example (De
Witt, 2016a:125).
VIDEO ACTIVITY 3.1
Watch the following video and identify the types of leadership styles as evident in the video
https://www.youtube.com/watch?v=vilZazhIjoc
3.3 Aspects of leadership

Some aspects of leadership include authority, power, influence, delegation, responsibility and accountability which
will be discussed next (De Witt, 2016a:125-129).
3.3.1 Authority
Authority is the position that the individual holds within the organisation. A manager has the right to give
instructions to employees because s/he is in a position of authority. A manager may also discipline
employees who fail to action instructions given to them based on their authority. Leaders will give
instructions and also show the manner in which the instruction should be carried out. As compared to
managers that might only give an instruction without considering that additional guidance is required.

3.3.2 Power
Leaders possess the power to influence others because of their knowledge, experience and personalities.
Leaders can also affect the values, attitudes and behaviour or others. There are various types of powers
such as coercive power (to influence others through fear), reward power (to influence others based on
the mangers authority to grant or deny rewards), legitimate power (refers to the manager’s position in the
chain of command in the organisation), referent power (a leader who is liked and respected and where
individuals can identify with), and expert power (refers to a leaders expertise, knowledge and skills).
3.3.3 Influence
Influencing is defined as the process leaders follow when communicating ideas, gaining acceptance of
them and inspiring followers to support and implement ideas through change. Before leaders can
influence, they must know what motivates others and provide a conducive working environment. Leaders
with a positive energy and enthusiasm are more likely to influence others.
THINK POINT 3.1

If you had the opportunity to spend one day with someone in the tourism and hospitality
industry, who would it be and why?
3.3.4 Delegation
Delegation is the process of assigning responsibility and authority for achieving organisational goals.
When leaders delegate tasks managers can focus on the strengths of employees that allows employees
to grow and become more productive. Sharing of responsibilities will develop new skills for employees
and keep employees interested and enthusiastic about their job.
3.3.5 Responsibility and accountability
Responsibility means that an individual has the duty to perform and make decisions. Accountability means
that individuals are liable for the outcomes of their actions. Leaders should then take responsibility and
accountability for the successes and failures of the team they are managing. It is then important that
managers motivate employees to improve their skills to ensure desired outcomes are reached.

3.4 Leadership theories

A theory is a belief or thinking about something that is generally accepted. Leadership theories are there to
determine the essential characteristics and patterns of good leaders. De Witt (2016a:129-135) identifies major
categories of leadership theories which includes the trait theory, behavioural theory and contingency or situational
theory.
3.4.1 Trait theory
The trait approach looks at individual characteristics such as stable personality attributes and traits to
differentiate leaders from non-leaders. After much research it was concluded that no single trait or
combination on traits clearly and consistently differentiate leaders from non-leaders. Nonetheless,
researchers are attempting to identify a set of traits in order to characterise someone as a leader. There
are many characteristics that promote effective leadership some of these include intelligence, self-
confidence, determination, integrity, diligence, honesty, sociability, and task knowledge. Tourism and
hospitality organisations can benefit from this theory as it identifies leadership components for effective
management. Tourism and hospitality organisations can also identify traits and characteristics of
leadership to a specific position.
3.4.2 Behavioural theory
This theory assumes that successful leaders have different behaviour from unsuccessful leaders.
Behavioural theory can then also be a style theory as it focuses exclusively on what leaders do and how
they act. The behavioural theory distinguishes between two types of behaviour namely: relationship
behaviours and task behaviours. Relationship-oriented approach focuses on a person’s feelings, beliefs
and attitudes. The task-oriented approach focuses on the objectives that needs to be achieved and work
that needs to be done in order to achieve the set objectives. The goal of the behavioural theory is to see
how leaders can combine the two kinds of behaviours to influence individuals. Different studies have been
conducted to investigate the behavioural theory approach which includes Theories X and Y, Ohio State
University studies, The University of Michigan studies, and Blake and Mouton’s Managerial Grid Model
(De Witt, 2016a:131-133).
3.4.2.1 Theories X and Y
Theory X is where a leader assumes that individuals are lazy, lacks ambition and does not like change
and wants to be given instructions this leader will take on the autocratic management approach. Theory
Y is where a leader assumes that individuals wants to be challenge and accept responsibility. This leader
will take on a more supportive management approach.

3.4.2.2 Ohio State University and the University of Michigan Model
Ohio State University distributed a questionnaire called the Leader Behaviour Description questionnaire
which measures a series of possible leadership behaviours in variety of settings. Two types of leadership
behaviours stood out that are different and independent from each other. These two behavioural types
are initiating structure (has to do with task behaviours for example planning and organising) and
consideration (has to do with relationship behaviours for example respect, trust, support and concern for
employees). The University of Michigan conducted a study on group productivity to assess affective
leadership behaviours. The outcomes were similar to the consideration and initiating structure behaviours
identified by Ohio State University studies. However, these leadership behaviours were labelled differently
as production orientation and employee orientation.
3.4.2.3 Blake and Mouton’s Managerial Grid Model
The managerial grid leadership behavioural model is often used in leadership training. This model
identifies different leadership styles on a two-dimensional grid. The vertical axis characterises the leader/
manager’s concern for people and the horizontal axis characterises the leader/ manager’s concern for
production. Five main leadership styles are revealed using this model namely: (1) Country club manager
(has a high concern for people but low concern for production; (2) Authoritarian manager (high concern
for production and low concern for people); (3) Middle of the road manager (keeps a balance between
completing goals and the needs of workers); (4) Team manager (leads by positive example and foster a
team that can reach their highest potential); and (5) Impoverished manager (low concern for both people
and production).
3.4.3 Contingency or Situational theory
The leadership contingency theory is based on leaders/ member relations, task structure, and the
potential power of the leader to determine their effectiveness of the type of leadership style exercised.
Three types of contingency approaches can be found.
3.4.3.1 Fiedler’s contingency approach
Fiedler’s contingency approach states that no single leadership style is best under all circumstances and
that leadership effectiveness depends on how well the leaders style fit the context. These leadership
styles can be task motived or relationship motivated. Work situations can be classified in terms of three
variables namely:
 Leader/ member relations (leader’s personal relations with group members).
 Task structure (degree of structure in the task that the group has been asked to perform).
 Positional power (the extent to which a leader has legitimate, coercive and reward power).

These three variables determine how favourable various situations in an organisation are for a leader. If the
leader has a powerful position and is well liked, the situation is most favourable for the leader to influence
the group in their task. If the leader has weak positional power, is disliked, and where tasks are unstructured,
the situation to influence others is unfavourable. This suggests that certain leadership styles are effective
in certain situations.
3.4.3.2 Hersey and Blanchard
Hersey and Blanchard categorise four different types of leadership behaviour based on combining task
(directive) and relationship (supportive) behaviours. These are namely:
 Telling (the leader tells the employees what, when and how to do tasks but spend limited time
on emotional support – high directive, low support)
 Selling (the leader focuses on goal achievement and emotional support – high directive, high
support).
 Participating (decision making is shared between leader and subordinates – low directive, high
support).
 Delegating (the leader does not involved subordinates in planning and control and offers little
social support – low directive, low support).
3.4.3.3 Vroom-Jetten-Jago leader-participation model
This model is both a decision-making model and a theory of leadership as it provides rules for participative
decision making in different situations. This model identifies five leadership styles that can be described
as:
 Autocratic leader i (decisions are made without the input from others).
 Autocratic leader ii (decisions are made after information is obtained from others).
 Consultative leader i (decision is made after consulting with others individually).
 Consultative leader ii (decision is being made after consultation with members of a group).
 Group-based leader (the leader and members make a group decision).

This model also suggest that behaviour should be flexible and that leadership styles should be different as it
depends on the situation.
READINGS 3.1
Visit the following website for additional reading on leadership theories:
https://corporatefinanceinstitute.com/resources/careers/soft-skills/leadership-theories/
3.5 Leadership development

Tourism and hospitality organisation need to develop the leadership abilities of their employees. This will ensure
that employees are empowered to be leaders and managers in the organisation in the future. Methods of leadership
development include learning on the job, formal assessment and training, and coaching and mentoring (De Witt,
2016a:135-138).
3.5.1 Learning on the job
Prepare employees for management positions a method called job rotation is used. An employee will be
moved to a different job as soon as the required job skills and expertise have been obtained. Another
method used for on the job training is action learning. Action learning is a facilitated process of learning
in real time using real problems to improve personal professional and team competence. Action learning
develops competence in real business problems such as problem solving, working effectively in teams,
facilitating change, and building strategies for personal growth.
ACTIVITY 3.1
In your opinion, what might the benefits be for an employee when learning on the job?
3.5.2 Formal assessment and training
This is a training type programme where employees receive a formal qualification. This training can be
done internally (on the job training) or externally (at a training institution). Training institutions offer courses
to improve leadership skills such as coaching, interviewing, and team building. Tourism and hospitality
organisations might choose to pay for these formal training programmes if completed externally by the
employee.

3.5.3 Coaching and mentoring
This approach is followed by tourism and hospitality organisations to mentor/ coach new or junior
employees. A relationship is established between the experienced employee (the housekeeping
manager) and the inexperienced employee (the housekeeping attendant). The mentor will provide
continuous support and guidance to the mentee. This can be both in a professional and personal capacity.
The roles of mentors and mentees must be fully understood. The roles of a mentor is to advise, council,
encourage, to be a subject matter expert, be a friend/ guardian/ leader/ motivator/ role-model, and to be
a knowledge developer. The role of the mentee is to understand own needs, goals and interests, take
responsibility for learning, to be a portfolio builder, an action taker, and an evaluator.
CASE STUDY 3.1
Read and answer the following questions based on the case study
Sun City Founder and Real Estate tycoon Sol Kerzner dies
Renowned international hotel developer and South African-born real estate magnate Sol
Kerzner, who founded the Southern Sun Hotel Group and Sun International, has died. The 84-
year old Sol Kerzner died of cancer in his family home, Leeukoppie Estate, Hout Bay in Cape
Town on Saturday. Arguably most famous for developing some of the world’s most spectacular
hotel and gambling resorts. Kerzner was pivotal in putting South Africa on the tourist map. He
developed some of the country’s top hotel brands: first Southern Sun and Sun International,
and then the projects that catapulted him into the league of hotel tycoon, Sun City and The
Palace of the Lost City. “Sol was a giant in the tourism industry, known across the world for
his role in growing the hotel and hospitality industry. It was under his stewardship that Sun City
was built in 1979, one of the largest resort projects on the African continent at the time. His life
was exciting and dynamic, providing entertainment for millions and inspiring others to follow in
his footsteps. May his soul rest in peace.” said Sun International CEO Anthony Leeming.
The youngest of four children, he was born in Doornfontein, Johannesburg to Lithuanian-born

Jewish immigrants. His parents ran a store selling fruit and vegetables. His breakthrough
project was the construction of the Beverley Hills in Umhlanga Rocks - the first five-star hotel
in South Africa. Partnering with South African Breweries to establish Southern Sun Hotels, he
operated 30 luxury hotels by 1983. In 1975, Kerzner started with the creation of Sun City. A
construction project that lasted ten years, the location was made up of four hotels, a man-
made lake, two golf courses and a 6 000-seat arena and entertainment centre. The venue
played host to various celebrities such as Frank Sinatra and Queen. In 1994, Kerzner was

asked by President Nelson Mandela to arrange the VIP function for his presidential
inauguration. Kerzner would later found the One&Only Resorts, which operates luxury
properties in countries the Bahamas, Mexico, the Maldives, Mauritius, Dubai, and South Africa.
In 2009, he opened the One&Only hotel at the V&A Waterfront in Cape Town.
In the mid-90s, Kerzner opened a casino in Connecticut in the US, and then bought a bankrupt
development in the Bahamas which would eventually become the thriving Atlantis Resort. It
features a massive water park, with various hotel options and a casino. In 2002, Kerzner
launched One&Only Resorts which operates various hotels in the Bahamas, Mexico,
Mauritius, The Maldives and Dubai. In 2008, he opened the $1.5 billion Atlantis, The Palms on
a man-made island in Dubai. Its $20 million launch party was the most expensive on record
and featured the world’s biggest fireworks display at that stage, as well as artists like Kylie
Minogue and Michael Jackson. The hotel features a life-size replica of a Mayan temple and
almost 3 000 rooms. Kerzner was knighted by the British Queen in 2010 after being nominated
by the Bahamas government as the largest employer in that country.
In 2014, he exited Kerzner International and retired as chairman of the company. Kerzner is
survived by his children Andrea, Beverley, Brandon and Chantal and ten grandchildren. His
eldest son, Howard ‘Butch’ Kerzner died in 2006.
(Source: http://www.sacommercialpropnews.co.za/property-companies-news/9251-sun-city-
founder-and-real-estate-tycoon-sol-kerzner-dies.html).
3.1 Explain why Sol Kerzner can be regarded as a leader in the hospitality industry.
3.2 Describe the possible leadership aspects Sol Kerzner could have had.
3.3 Discuss why it is important that Sol Kerzner had to develop others to become leaders
themselves one day.
3.6 Summary
It is important to note that behaviour of managers can influence employees to perform their tasks. Managers can
either be tasked oriented or relationship oriented. It is best that managers strike a balance between the two
orientations when managing a group of employees. The situation in which a manager should lead will determine
the type of leadership style the manager will use in order to positively influence employees. Managers must also
fulfil certain aspects of leadership to set an example for employees and to develop them as successful future
leaders within the organisation.

3.1 Authority is an aspect of leadership.
3.2 Delegation is the process leaders follow when communicating ideas, gaining
acceptance of them and inspiring followers to support and implement the ideas
through change.
3.3 Reward power refers to the power to influence people through fear by means of threats
or punishment.
3.4 Expert power has to do with a person’s position in the chain of command.
3.5 The role of a mentee is to take responsibility for learning and personal career
development.
3.1 Define the term leadership.
3.2 Describe some aspects of leadership.
3.3 Discuss some leadership theories.
3.4 Elaborate on the importance of leadership development in tourism and hospitality

organisations.
3.5 Discuss methods for leadership development.
Video activity
This is open for interpretation. Suggested answer:

 Structural leadership style
 Participative leadership style
 Servant leadership style
 Freedom leadership style
 Transformational leadership style

Think point
Activity 3.1
 Improve productivity
 Multi-skill
 Quick learning
 Make systematic approach
Case study
3.1 He is regardedas a renowned international hotel developer and South African-born real estate magnate.
He was a giant in the tourism industry, known across the world for his role in growing the hotel and
hospitality industry.
3.2
 He had power to influence others
 He influenced others
 He delegated
 He lead by example
3.3 To share management and leadership experiences
Knowledge checks
3.1 True
3.2 False
3.3 False
3.4 False
3.5 True

Unit
4: Organising and Delegating

4.2 Explaining the term organising  Explain what the term organising entails for tourism and
4.3 Organisational structuring  Describe organisational structuring
 Discuss the elements of organisational structuring
4.4 Departmentalisation  Explain the role of departmentalisation in tourism and

4.5 Delegation  Explain the concept of delegation
 Outline the reasons for delegation


4.1 Introduction
Planning, leading, organising and control is part of the core management functions. This unit will focus on how
organising applies within tourism and hospitality organisations. Organising and delegating tasks within the tourism
and hospitality organisation is important to ensure the achievement of the organisation’s overall goals and
objectives. The organisational structure is the arrangement of positions in work units or departments and shows
how employees must work together in order to reach the organisation’s goals. The elements of organisational
structures and the various types of departmentalisation is discussed and the application towards tourism and
hospitality organisations. It is often impossible for managers to do everything therefore tasks must be delegated to
lower level managers and employees. Some aspects should therefore be kept in mind during delegation in order
to ensure that effective management takes place within an organisation.
4.2 Explaining the term organising

According to Kokt (2016a:75) organising can be defined as the process of delegating and coordinating tasks and
resources to achieve organisational objectives. It also refers to the grouping of activities and resources into
functional units within the tourism and hospitality organisation.
READINGS 4.1
Visit the following website for additional reading on organising as a management function
and its benefits:
4.3 Organisational structuring

Organisational structuring is a combination of the organisational elements used to structure the organisation and
can be divided into two types namely: mechanistic structures and organic structures (Kokt, 2016a:71; 76).
4.3.1 Mechanistic structures
Mechanistic structures have rigid rules and top down communication. This structure focus on the internal
structuring of the organisation which does not allow much room for customer satisfaction. These
structures are most common in large tourism and hospitality organisations such as Travel Agencies, Hotel
Groups and tourism destinations.

The characteristics of a mechanistic structure includes the following:
 Rigid structuring.
 Centralise authority.
 Rules and regulations are clearly specified.
 Communication is formalised.
 Few teams are utilised.
 Employees are closely monitored.
4.3.2 Organic structures
Organic structures are flexible and adaptable and can be improved as they go along. In other words,
customer satisfaction is easily attainable. These structures can be found in smaller tourism and hospitality
organisations for example local tour operator, guesthouse and or boutique hotels. Characteristics of
organic structures include:
 Decentralised authority.
 Few rules and regulations apply.
 Communication is mostly informal.
 Work teams are central to the operation.
 Few teams are utilised.
 Employees are not closely monitored.

4.3.3 Elements of organisational structuring
The main elements of organisational structuring are listed by Kokt (2016a:76-78) as the following:
 Formalisation: Refers to the extent to which procedures policies and manuals are used.
 Specialisation: Is the extent to which specific functions are performed by specific individuals or
departments.
 Standardisation: Refers to the extent to which activities are performed in a uniform manner.
 Coordination: It means that all departments and individuals are working together to reach the
goals of the organisation.
 Unity of command: Means that each employee should report to a single manger or supervisor.
 Unity of direction: Means that all activities should be directed to reaching the same organisational
goals.
 Chain of command: Means that a clear line of authority can be observed throughout the
organisation.
 Span of control: Refers to the number of employees reporting to a manager.
 Division of work: Refers to the specialised jobs and functions of individuals or groups under a
single manager or supervisor.
 Authority: Refers to the right to make decisions and issue orders.
 Responsibility: Refers to the obligation to perform required activities in order to reach

organisational objectives.
 Accountability: Where managers must report and justify work results to those they report to.
 Flexibility: Means that there are always exceptions to rules.

 Power: Refers to the extent to which a person can respond to others.
 Downsizing: Refers to the managerial activity that reduces the size of an organisation’s
workforce.
 Delayering: Implies that the number of layers in the vertical managerial hierarchy are reduced.
ACTIVITY 4.1
Outline the different types of authority. Your answer should include findings from academic
journal articles.
4.4 Departmentalisation
Departmentalisation is the grouping of activities within an organisation into separate units. Tourism and hospitality
organisations can create units or departments to assist in organising and structuring the duties that needs to be
performed in order to achieve the organisations goals. There are various types of departmentalisation which are
discussed by Kokt (2016a:78-82).
4.4.1 Types of departmentalisation
There are three types of departmentalisation used in tourism and hospitality organisations. These include
functional departmentalisation, external departmentalisation, product departmentalisation, customer
departmentalisation, geographic departmentalisation and matrix structures.
4.4.1.1 Functional departmentalisation
This form of departmentalisation is internally focused. In other words, the departments are focused on the
input activities such as Front of Office, Housekeeping and Food and Beverage (see Figure 4.1). The
advantage of functional departmentalisation is that duties are performed by experts. It lowers costs of
duplication and manages individuals with similar work experience. Training could be easier for managers
as focus is placed in one functional area. The disadvantages of functional departmentalisation are that
cross department coordination can be a challenge and that individuals may only be interested in focusing
on their function and not what is good for the entire organisation. Smaller tourism and hospitality
establishments makes use of functional departmentalisation because it is cost effective and easier to
manage.

Managing Director
Fleet Debtors General Human Resource Systems and Procedures

Financial Director
Manager Manager Manager Manager Director
Figure 4.1: Functional departmentalisation
4.4.1.2 External departmentalisation
External departmentalisation is mainly used by larger establishments as they have many divisions and
are geographically disperse such as large hotel groups. External departmentalisation is necessary for
these large establishments because it is difficulty to group activities into functional areas. This form of
departmentalisation focuses on outside factors such as the product, the customer, and the location. For
the purpose of our discussion, Figure 4.2 only includes two brands associated with the City Lodge Hotel
Group.
CEO
City Lodge Town Lodge
Purchasing Human Resource Human Resource Purchasing

Manager Manager Manager Manager
Marketing Operations and Operations and Marketing

Manager Production Manager Production Manager Manager
Financial Financial
Manager Manager
3Figure 4.2: External departmentalisation

4.4.1.3 Product departmentalisation
Product departmentalisation is the organising of departments around goods and services where each
major product area in the organisation is placed under the authority of a manager that specialises in that
area (see Figure 4.3). The organisation is divided into different focus areas such as operations, marketing,
finance and human resources.
Food Truck
Essential Foods Groceries International
4Figure 4.3: Product departmentalisation
4.4.1.4 Customer departmentalisation
Customer departmentalisation is mostly concerned about the needs of the different kinds of customers.
This form of departmentalisation is used to ensure that the needs of customers are met through
differentiation of products and services (see Figure 4.4). For example, different types of rooms in one
hotel establishment catering for the different types of guests.
Managing Director Vodacom
Sun City Sun City Sun City Sun City Sun City
Sun City Golf
Palace Casino Valley of Waves Savings Safari Resort
5Figure 4.4: Customer Departmentalisation
4.4.1.5 Geographic departmentalisation
Geographic departmentalisation refers to the organisation of departments in each of the areas where the
organisation does business. All functions for a geographical area are grouped under a single manager or
supervisor. This form of departmentalisation is used by multinational firms to address cultural and legal
differences in the different areas they operate (see Figure 4.5).

Group President and CEO
Group Chief Financial Officer

Group Chief Regulatory &
Corporate Affairs Officer
Group Chief Operating Officer
Vice President: Middle East & Regional Vice President: West & Regional Vice President: Southern & East CEO MTN CEO MTN
North Africa Central Africa Africa Nigeria RSA
Purchasing Human Resource Purchasing

Human Resource
Manager Manager Manager
Manager
Operations and Production Operations and Production Marketing Manager

Marketing Manager
Manager Manager
Financial Manager Financial Manager
6Figure 4.5: Geographic Departmentalisation

4.4.1.6 Matrix structures
This form of departmentalisation combines functional and product departmentalisation in a grid. This means that there are a vertical and horizontal command structures.
The matrix departmentalisation is there to improve coordination and efficiency with regards to customer preferences. It also encourages sharing of human resources
across product lines and employees can then learn new skills in different areas. When a matrix departmentalisation structure is used, individuals work for two different
managers which requires individuals to develop good interpersonal skills. This departmentalisation requires strong managerial balance between functional and product
interest and fits into organic structures (see Figure 4.6).
CEO
Operations and Production Financial Manager Purchasing Manager

Marketing Manager Human Resource Manager
Manager
Product Manager A
Product Manager B
Product Manager C
7Figure 4.6: Matrix structures

READINGS 4.1
Visit the following website for additional reading on the types of organizational structures:
THINK POINT 4.1

Think of a tourism or hospitality organisation you would like to work for in the future.
What type of departmentalisation is used within that organisation?
4.5 Delegation
Delegation can be defined as the process of assigning managerial authority to managers and employees lower
down in the organisational hierarchy. Delegation allows lower level managers and employees to gain experience
in certain duties within the organisation. When tasks are delegated these individuals develop better organizing and
decision-making skills which will equip them to fill higher positions in the future. When a task is delegated it means
that the decision-making authority is also transferred the particular individual. However, the manager still remains
responsible and accountable for actions taken (Kokt, 2016a:82-83).
4.5.1 Improving delegation in tourism and hospitality organisations
When delegating, the following aspects should be kept in mind, to ensure that effective management still
takes place within the tourism and hospitality organisation (Kokt, 2016a:83):
 It is important to provide an explanation for the reason of delegating duties.
 When delegating duties employees must know exactly what is expected of them and the
standards they are expected to meet.
 Subordinates must be informed about their responsibilities and that they are accountable for the
outcomes of the tasks delegated to them.
 When tasks are delegated to subordinates, they must be given proper assistance and direction
to enable them to complete the tasks assigned to them.
 Performance of subordinates whom tasks are delegated to must be measured on a continuous

basis.
 The subordinates must be able to perform the tasks that is delegated to them.

 Subordinates to whom tasks are delegated should receive constant feedback regarding aspects
of the performance and areas where employee needs to improve.
VIDEO ACTIVITY 4.1
Watch the following video and explain in your own words how one can delegate effectively
https://www.youtube.com/watch?v=mOCnShqFvYk
CASE STUDY 4.1
Stop Doing it Yourself: Prepare to Delegate in 2020
What is it that keeps you from delegating? More often than not I hear, “It is just easier to do it
myself versus training someone to do the task right now,” or “There isn’t someone to delegate
to who has the skills to complete the tasks as well as I can.” In today’s workplace, employees
want to be challenged, engaged, and provided with increased responsibilities and
opportunities. Developing your team through delegation is a great start to keeping them
challenged. Gino Wickman1, author of Traction, states, “Be prepared to delegate and elevate
yourself. You have to delegate some of your responsibilities and elevate yourself to operate at
your highest and best use.” Learning to delegate effectively is the key to providing yourself
with the time to focus on those things you do best, things that very few people can do as well
as you to generate the most income for your company.
Delegating improves not only your job performance but that of others, providing a vehicle for
mentoring and coaching. Delegating builds camaraderie, allows you and your team to get more
work done, relieves job burnout, and alleviates stress. Job burnout is a workplace issue
characterized by feelings of exhaustion, increased cynicism, and feeling less capable at work.
Part of the responsibility for addressing burnout falls on managers to ensure they have the
right people in the right roles, understanding what employees do best, and providing them with
responsibilities where they can use their strengths.
When delegating work, skilled managers understand when to manage and when to coach.
When you are managing the delegation of tasks, you are typically focused on directing
immediate needs and specific outcomes. You take responsibility for the outcome by telling,
directing, and making decisions for the employee about how the task is to be completed. What
is it that keeps you from delegating? More often than not I hear, “It is just easier to do it myself
versus training someone to do the task right now,” or “There isn’t someone to delegate to who

has the skills to complete the tasks as well as I can.” In today’s workplace, employees want to
be challenged, engaged, and provided with increased responsibilities and opportunities.
Developing your team through delegation is a great start to keeping them challenged.
This type of delegation works well in crisis situations when decisions are made swiftly and
when employees are new in their positions, have new client and customer relationships, or
take on new tasks and responsibilities. You also want to direct employees when they have
low-to-moderate competence with skills and lack confidence in their ability to complete the
task autonomously. This type of directive delegation will get the job done; however, it will not
develop your employees’ skill sets.
Coaching works best when delegating responsibilities. A good example is coaching a sports
team. It is very rare that you will see a coach play an athlete who didn’t practice extensively
before the game. For athletes to play on game day, they need hours of practice to develop
their skills. In the workplace, you want to delegate and coach your employees when they have
some experience in their role, a track record, demonstrated competence with the task, and
your confidence in their abilities. Taking time to coach, teach, develop, and guide your
employees when they take on new tasks and responsibilities is the key to their ongoing
development. Providing coaching and guidance when delegating tasks to employees often
results in outcomes that exceed your expectations. When delegating to an employee who has
high competence and high commitment to the task, define excellence and get out of the way.
One of the most difficult transitions for leaders to make is to shift from doing to leading.
Effective delegation requires effective communication. Research tells us that what you hear
(tone of voice) is 38 percent of the message you communicate. What you see (body language)
is 55 percent of the message. The actual words (what is said) are only 7 percent of the
message received. When delegating, it is important to think about how you communicate the
message. Delegation via email is the least effective way to communicate. Try to delegate with
face-to-face communication or by video so that messages can be easily interpreted.
(Source: https://vrmintel.com/stop-doing-it-yourself-prepare-to-delegate-in-2020/).
4.1 Explain why it is important to delegate as a manager.
4.2 Identify the advantages of delegation.
4.3 Discuss ways to improve delegation within an organisation.

4.6 Summary
This unit provided knowledge on the management function, organising through organisational structuring.
Delegation and ways in which to overcome the challenges have also been discussed.
4.1 Organising is the grouping of activities and resources into a functional area.
4.2 Organisational structuring is a graphic illustration of an organisation’s management

structure and departments.
4.3 Organic organizational structures use flexible forms of organizational structuring

where authority is decentralized, few rules and regulations apply, and employees are
not closely monitored.
4.4 Span of control means that employees have specialized jobs and related functions
that are grouped under a single manager or supervisor.
4.5 Chain of command implies the right to make decisions, issue orders and use
available resources.
4.1 Explain what the term organising entails for tourism and hospitality organisations.
4.2 Describe organisational structuring.
4.3 Discuss the elements of organisational structuring.
4.4 Explain the role of departmentalisation in tourism and hospitality organisations.
4.5 Explain the concept of delegation.
4.6 Outline the reasons for delegation.

Video activity

 Mention the purpose of the task
 Identify the steps to be taken to complete the task
 Provide a timeframe within the task should be completed
Think point
Activity 4.1
 Traditional authority
 Charismatic authority
 Rational-legal authority
 Patrimonialism
Case study
4.1 “You have to delegate some of your responsibilities and elevate yourself to operate at your highest and
best use.” Learning to delegate effectively is the key to providing yourself with the time to focus on those
things you do best, things that very few people can do as well as you to generate the most income for
your company.“
4.2 “Delegating improves not only your job performance but that of others, providing a vehicle for mentoring
and coaching. Delegating builds camaraderie, allows you and your team to get more work done, relieves
job burnout, and alleviates stress. Job burnout is a workplace issue characterized by feelings of
exhaustion, increased cynicism, and feeling less capable at work. Part of the responsibility for addressing
burnout falls on managers to ensure they have the right people in the right roles, understanding what
employees do best, and providing them with responsibilities where they can use their strengths. When
delegating work, skilled managers understand when to manage and when to coach. When you are
managing the delegation of tasks, you are typically focused on directing immediate needs and specific
outcomes. You take responsibility for the outcome by telling, directing, and making decisions for the
employee about how the task is to be completed.”

4.3
 “Effective delegation requires effective communication – Try to delegate with face-to-face communication
or by video so that messages can be easily interpreted”
 “Providing coaching and guidance when delegating tasks to employees often results in outcomes that
exceed your expectations.”
Knowledge checks
4.1 True
4.2 False
4.3 True
4.4 False
4.5 False

Unit
5: Managing change in tourism
and hospitality organisations

5.2 What is organisational change?  Explain the term organisational change
 Discuss the types of organisational change
 Examine strategies to overcome resistance to change
5.3 Organisational culture  Explain the term organisational culture
 Describe the elements of organisational culture
5.4 Job stress  Explain the concept of job stress
 Discuss the causes of job stress
 Design strategies to manage job stress


5.1 Introduction
Tourism and hospitality organisations must cater to the needs and demands of tourists. These needs and demands
change on a regular basis and product offerings must change according to the tourists needs and wants. This is
also the case in the organisations external environment which can lead to changes in technology or in the spending
patterns of tourists. The organisations must thus continuously change in order to stay competitive in an ever-
changing environment. Employees within an organisation might not always be willing to change their current ways
of doing. But if the organisation has a positive organisational culture with adequate employee support and guidance
employees will be open towards change that will benefit the organisation. Employees must know what is expected
from them and how to do assigned tasks. otherwise they will experience high levels of job stress. Job stress can
be managed if there is sufficient support and understanding from the organisation. Organisations should consider
the effect of the change on the stress levels of employees. Aspects such as organisational change, organisational
culture and job stress will be discussed in this unit.
5.2 What is organisational change?

Tourism and hospitality organisation must change and adapt to new challenges due to the global marketplace and
rapid globalisation in order to remain sustainable and profitable. Organisational change is complex especially when
people have a natural inclination to resist change. Organisations must prepare properly for change by creating new
visions and prospects for employees to energise them for the change process. Employees must be informed of
the worth of doing things in a new or better way and must be assisted in seeing that the change will bring benefit
to the organisation. Employees must be motivated in making or implementing the actual change. This can be that
familiar ways doing tasks will change to make room for new routines and practices. Managers must guide
individuals through the change process. After the change have been implemented the new practices must become
part of the culture of the organisation. Managers must incorporate the new practices in doing tasks inside the
organisation (Kokt, 2016b:88-89).
VIDEO ACTIVITY 5.1
Watch the following videos and explain in your own words organisational change
https://www.youtube.com/watch?v=dhkLMKxncc8
https://www.youtube.com/watch?v=PQ0doKfhecQ

5.2.1 Types of organisational change
Organisations mostly implements three types of change initiatives to assist them in adapting to a changing
environment. These include total quality management, downsizing and reengineering (Kokt, 2016b:89-90).
5.2.1.1 Total Quality Management (TQM)
Total Quality Management is concerned with the implementation of quality and excellence and implies
that for TQM to be fully effective the organisation needs to change.
5.2.1.2 Downsizing
Downsizing attempts to improve quality, efficiency and efficacy through making the organisation smaller
and more effective.
5.2.1.3 Reengineering
With reengineering the processes and procedures in an organisation are completely redesigned to
improve quality and efficiency within the organisation.
THINK POINT 5.1

5.1 Think of a way how a tourism or hospitality organisation can change due to
reengineering.
5.2 Do you think that reengineering will be to the advantage of a tourism and hospitality
organisation? Provide a reason for your answer.
5.2.2 Overcoming resistance to change
People are resistant to change as change requires individuals to think and do tasks in a different way that
what they are used to. Kokt (2016b:90) identified some methods that can be used to overcome resistance
to change:
 Different methods can be used to inform employees of the positive results of doing things
differently (for example information sessions, meetings, discussion forums and storytelling).

 Managers should stimulate self-reflection where employees need to see that the drive towards
excellence should come from them and not from the orders of management.
 Managers must set the example for employees and are thus the drivers of organisational
change.
5.3 Organisational culture

Organisational culture can be defined as the distinctive pattern of shared assumptions, values and norms that
shape the socialisation activities, languages, symbols, rituals and ceremonies of an organisation. New employees
must attend induction to understand the ways in which the organisation functions. In other words, organisational
culture will assist employees how to perceive, think, act and feel as members of the organisation. Organisational
culture contributes to the enhancement of the organisation’s key functions and capabilities. Employees must adopt
the culture of the organisation to enable them to perform effectively and efficiently towards achieving organisational
goals and objectives. The organisational culture affects organisational commitment and job satisfaction.
VIDEO ACTIVITY 5.2
Watch the following video and explain in your own words the concept of organisational
culture
https://www.youtube.com/watch?v=4cBN8xH-5Qw
5.3.1 Strong and weak organisational cultures

A strong organisational culture will guide employees on what is important to the organisation. Weak
organisational culture will not provide guidelines and behavioural norms and employees will be unsure
about what the expectations are. This could lead to employees not being committed to or informed of the
goals of the organisation. With a strong organisational culture employee will know the goals of the
organisation and will be committed to working hard and achieving these goals.
5.3.2 Levels of organisational cultures

Organisational culture consists of three levels which impacts on the behaviour of individuals in the
workplace (see Figure 5.1). Level 1 refers to the artefacts and creations (these are visible and
observable), level 2 refers to the values and beliefs (these are on a less conscious level), and level 3
assumptions (this is on an unconscious level). Meaning artefacts and creations present visible tangible
and audible aspects of employee behaviour. Artefacts and creations are grounded in values and beliefs.
Values and beliefs are based on assumptions. All of these guides the individual’s behaviour. Artefacts
and creations can be observed in the dress code, physical layout of the work environments, technology

and attitude and behaviours of employees. Values and beliefs are determinants of individual behaviour
and will connect members by social obligations with general ethical principles. Values and beliefs shape
the way in which an organisation function. Assumptions guide the views, feelings and emotions of
individual employees about things and how those things function.
Assumptions
Values and beliefs
Artefacts and creations
8Figure 5.1: Levels of organisational cultures
Managers must create and manage culture and have a good understanding of the importance of
organisational culture for organisational performance and sustainability. For example, if a hotel’s
assumption of employees is to be service oriented then it will underpin values such as openness, flexibility,
putting the need of customers first and so forth. These values and beliefs will be evident in the behaviour
of the hotel’s staff (Kokt, 2016b:92-93).
5.3.3 Elements of organisational cultures

Culture is a social phenomenon which provides its members with rules about acceptable and non-
acceptable behaviour. This will ensure that members adopt and survive within the organisation. The
elements of organisational culture consist of knowledge of acceptable patterns of behaviour, knowledge
about the language of the organisation, and knowledge with regards to artefacts and symbols (Kokt,
2016b:93-95). These are discussed next
5.3.3.1 Knowledge of norms, values and beliefs

Employees must know the norms, values, and symbols that apply to a specific organisation. Norms
represent what people typically do as well as the shared understanding of what they should do. To
consider reasons why people work and why the behave in a specific way one has to consider values.
Values are determinants of attitudes and affect the behaviour of employees in the decisions they make.
In other words, values predict the desired behaviour where norms achieve the desired behaviour.

5.3.3.2 Knowledge of the language of an organisation

The knowledge of an organisation communicates its culture. The organisation must first change its
language in order to change the culture of the organisation. Kokt (2016b:94-95) highlights the following
factors that relates to an organisation’s language:
 Jargon: special meanings are assigned to words within the organisational context.
 Shared stories: members of the same cultural group can predict the behaviour of other members.
This can lead to individuals interacting and working together.
 Heroes: Heroes are created because they are admired for the contribution their qualities have
made to the organisation. They are told in stories to make sense of organisational events and
changes.
 Ceremonies and celebrations: These communicate values to organisations. Rituals are activities
acceptable to all members of the organisation may include handing out of presents at Christmas,
celebration at retirement, or the presentation of long service awards.
5.3.3.3 Knowledge about the artefacts and symbols of the organisation

These are tangible manifestations of organisational culture. Artefacts includes structures, procedures and
rules that are present in visible features such as timesheets, the wearing of neckties, office décor and
reserved parking spaces. A symbol is an object, act, quality or event that gives meaning or stands for
something within the organisation. Symbols can include the positioning of management and acceptable
forms of behaviour such as delegation, participation and authority.
5.4 Job stress

Tourism and hospitality organisations require employees to offer customer service 24 hours a day. This can create
job stress and can even cause burn-out. Job stress can be defined as a non-specific response of the body resulting
from a demand placed on it. This response includes a nerve and mental reaction to the physical demands placed
on the individual. The employee can experience job stress if confronted with these responses repeatedly and
frequently. Job stress can also occur when one does not have the available capabilities and resources to perform
the job. Meaning if a person is not qualified to do a certain task, they can experience levels of job stress due to a
lack of knowledge on how to complete the task successfully. There are two types of job stress identified by Kokt
(2016b:95) namely functional and dysfunctional job stress. Stress is functional if it supports the individual in their
own goals. Thus, it ensures that individuals are energised, motivated and better focused on achieving their goals.
Stress is dysfunctional if it prohibits employees from achieving their goals. It means that individuals do not relax as
they feel constantly anxious, frustrated, angry or depressed. The individual is then not able to perform his/her job
adequately.

READINGS 5.1
Visit the following website for additional reading on stress at the workplace:
https://www.who.int/occupational_health/topics/stressatwp/en/
5.4.1 Main causes of job stress

The causes of job stress can be individual or organisational causes as outlined below; (Kokt, 2016b:96-
98):
5.4.1.1 Individual causes

There are many individual causes that can make an employee to stress. These individual causes can
include individual, family and work-family conflict. Individual characters can influence the stress which
could either have an increase or decrease in stress levels. These individuals character types include type
A and type B personalities, self-efficacy, and psychological hardiness. Family and work-family conflict
refers to the conflict within an individual’s family such as illness or conflict with a spouse. Work-family
conflict occurs when employees are expected to have high levels of performance.
 Type A personalities wants to achieve more in less time. These individuals walk fast, talk fast,
think fast and is task oriented. These individuals are also known to be highly competitive, work
under constant pressure, can be easily frustrated and do not know how to relax.
 Type B personalities are less competitive and concerned about time, more patient, more
relaxed, lower sense of urgency, and hence do not display hostility easily.
 Self-efficacy is people’s self-perception of their control over an action and their perception of
their capacity to do an assigned task. Self-efficacy plays a role in handling job stress. Individuals
with high self-efficacy will remain calm and in control of their job stress levels or in a stressful
situation.
 Psychological hardiness refers to how well an individual can deal with challenges. Individuals
can be seen as being hardy when they can cope well under extreme stressful situations.

5.4.1.2 Organisational causes

Organisational causes of job stress are unique to an organisation and reside in the challenges presented
to the individual working in a particular organisational environment. The following factors can cause
organisational job stress:
 Task demand and workload: Refers to the specific job of the individual such as occupation and
size of workload. Workload can be overload or underload. Work overload is when an individual
has too much work to do, where as work underload is when the job demands are less, and skills
of the individual is not being fully optimised which can lead to boredom and lack of motivation.
 Physical demands: These demands refer to working conditions which includes the physical
surroundings (such as noise, humidity, lighting, smells, and temperature) and design of
workplace. For example, excessive noise and heat could lead to job stress especially if it is a
small office with no windows.
 Role demands: The role demands refer to the roles the individual has within the organisation.
Employees will experience low job stress if they know exactly what is expected of them and how
to do their responsibilities.
 Role conflicts: Individuals can experience job stress when they do not know what the expected
of their co-workers and their responsibilities with the job.
 Role ambiguity: Means that an individual that has a poor job description or does not receive clear
instructions can experience high stress levels.
 A lack of cohesion: An employee can experience high stress levels when s/he does not feel a
sense of togetherness inside the organisation. If there are support from managers, they will feel
that they are valued.
 A lack of social support: If individuals does not receive support from co-workers, they might
experience high job stress levels. Lack of social support can lead to lower self-esteem,
decreased motivation and increased employee turn-over.

ACTIVITY 5.1
Describe 3 stressful situations for chefs working in a 5-star fine dining restaurant.
5.4.2 Managing job stress
Kokt (2016b:98) recommends the following stress management techniques for tourism and hospitality
organisations:
 Tourism and hospitality organisations should monitor an individual’s diets and drinking habits as
a healthy diet and regular exercise can assist employees with managing job stress.
 The organisations should implement anti-stress techniques such as relaxation, exercise, and
time management.
 The organisation should assist individuals to cope with their personal problems. This will in turn
assist individuals to better cope with job related problems.
 The organisation should create a support network where individuals can share their feelings and
emotions.
 The organisation can encourage employees to look out for symptoms and effects of job stress
which could aid in reducing family related stress.
 The organisation should make counselling available to individuals that were exposed to high
stress situations such as high-jackings, shootings, robberies and other traumatic events.

ACTIVITY 5.2
Explain ways in which a chef can manage his job stress in a 5-star fine dining restaurant.
CASE STUDY 5.1
Change is everywhere: How is your hotel managing it?
Hotels encounter change every single day, experiencing changes in guests, rates, menus,
events and staff. At an even higher level, hotels experience changes in management, brands,
job responsibilities, revenue strategy and guest expectations. Widespread changes in
distribution, technology, analytics and industry mergers also affect the hospitality industry in
nearly every region. Change management in revenue management refers to how hotels
transition their individuals and teams and align their resources, processes and technology to
meaningfully restructure their organization toward a common goal. And with many hotels now
actively pursuing total revenue performance strategies, how can hoteliers ensure they keep up
the pace and smoothly implement these analytical revenue management approaches
throughout their organization? Let’s take a look at how hotels can effectively manage the
impacts of applying analytically driven approaches on their people, processes and
technologies:
The People
One of the questions hoteliers need to ask is who is going to apply sophisticated analytics within
their organization. The role of a data scientist is becoming an essential component of an
effective revenue management strategy. In-house resources are also becoming more common
in larger organizations. There’s also been a lot of recent discussions around the opportunity of
a cross-departmental data scientist that can apply their skills where needed, while balancing
the overhead costs to maintain this new role. External resources and third parties that can
provide analytics as a service are also available. Dedicated support services for analytical
technology and processes ensure hotels can perform at their maximum potential. Restructuring
a hotel organization around new processes requires an active, engaging transition plan for
employees and teams that supports the new direction. This may involve adding new leaders,
redesigning job roles and responsibilities, and developing a higher standard of skills and
capabilities. And since many people are often intimidated and resistant to changes in the
processes, practices and technology they’ve grown familiar with, it is important to recognize

that taking a proactive approach to change will help negate the potential risks to employee
morale and acceptance. Thoroughly planning for upcoming organizational changes – and the
impacts to and requirements of its people – requires comprehensive development and a
structure that can adjust as the effects of change are felt at various stages. Hoteliers can begin
the implementation by focusing on data collection, analyzing, planning and implementing
business practices that support the new processes, technology and revenue strategies. These
efforts should also consider the hotel organization’s realistic capacity for change. It is also
important to recognize whether the desired change is the natural next step for the organization,
or if there are more appropriate transitions that may be better suited. Moving too fast – too soon
– can leave hotel teams feeling like they are being set up to fail. Active involvement,
communication and support from the hotel’s executive team are critical pieces of the change
management puzzle. A leadership team exemplifying the behaviors and processes expected
from their own teams demonstrates the organization is wholeheartedly embracing change from
the top down. This is critical to the success of any change management plan – and when teams
are facing stressful situations, they can feel supported by their leaders and deliver results.
The Process
Optimal processes should not only look at taking advantage of the analytics outputs, but also
the inputs. To make analytics work effectively for a hotel organization, the company culture
needs to be geared toward a common goal of data integrity and the effective implementation of
analytical decisions. Change is a process in itself – and different levels of a hotel organization
are going to be impacted by the progress of change. Hotels should outline the current state of
their organization, transitionary periods and the desired future outcome – and how they are
going to involve every layer of the organization for a smooth flow throughout every department.
Identifying, training and aligning the appropriate leaders at every layer – and communicating
progress and messaging to the entire hotel – will help make the transition from point A to point
B a manageable and successful process.
The Technology
Analytics help hotels move even further beyond the normal revenue management processes
into harnessing data and forecasting capabilities to explore, predict and optimize revenue
results. Today’s analytics help hotel organizations explore why patterns and trends are
happening to predict whether similar or different results will occur moving forward. By
determining why specific results are emerging – and if they expect to continue – organizations
can then start to optimize them by taking action to get the best effects and deliver revenue
performance. There are many aspects of analytics and technology that play a role in delivering
optimal results: High performance forecasting capabilities provide a dynamic selection of

hundreds of forecasting algorithms and models to give the best possible results; granular data
and decisions can be provided for multiple hotels by departments, segments, room types, day
parts and rate codes; predictive analytical tools allow hotels understand the impacts of changing
strategy; advanced pricing and inventory controls maximize revenue opportunities; and
expanded data sources such as reputation, competitive performance, rate shopping and value
of demand can be integrated into decision outputs.
The hospitality industry continues to evolve, change and innovate. It is essential for today’s
forward-looking organization to ensure they are moving up the revenue capability ladder to
effectively apply analytics across their income streams. The race for total revenue performance
is relentless and only those with the capability to adapt quickly and effectively will ultimately
benefit from these sweeping changes impacting the industry.
(Source: https://ideas.com/change-everywhere-hotel-managing/).
5.1 Explain how and when hotels can experience change.
5.2 Describe how hotels can effectively manage change with analytics with regards to their
people, processes and technologies.
5.5 Summary
This unit focused on organisational change and organisational culture. Organisational change cannot occur if
organisational culture does not change as well. Employees must realise the benefits of change to the organisation
and must receive adequate support and guidance to minimise and manage job stress within the organisation.
5.1 Organisational change implies changes that need to be made to the managerial and
operational procedures of organisations as they adapt to the changing demands of
customers.
5.2 Organisational culture can be defined as the distinctive pattern of shared assumptions,
values and norms that shape the socialization activities, language, symbols, rites and
ceremonies of organisations.
5.3 Artefacts and creations consist of values and beliefs, which are a major determinant of
individual behaviour.
5.4 Ceremonies and celebrations are elements of organizational culture.
5.5 Managers must be the drives of organizational change and set the example for
employees.

5.1 Explain the term organisational change.
5.2 Discuss the types of organisational change.
5.3 Devise strategies to overcome resistance to change.
5.4 Explain the term organisational culture.
5.5 Describe the elements of organisational culture.
5.6 Explain the concept of job stress.
5.7 Discuss the causes of job stress.
5.8 Design strategies to manage job stress.
Video activities
5.1 This is open for interpretation. Suggested answer: To manage any change inside or outside the
organisation.
5.2 This is open for interpretation. Suggested answer: Each organization has its on culture that is influences
by beliefs, perceptions and assumptions and where employees work together with the same beliefs,
perceptions and assumptions to achieve one goal.
Think point
Activity 5.1
 Health and safety – must always follow protocol in the kitchen, even when some situations are out of the
chef’s control. Inspection from the health inspector can also cause job stress
 The kitchen is usually a tiny place where chefs must be very careful working with knives and hot oil – not
spilling or gutting oneself or others
 Customers who are unsatisfied with the dishes served

 Unreasonable diet requests

 Possible food allergies that might kill
 The physical heat in the kitchen – an uncomfortable environment where it is expected to perform 100%
all the time
 Appliances such as refrigerators and stoves not working
 Keeping everything in its proper place
Activity 5.2
 Train subordinates on health and safety protocols

 Allocate stations to chefs to manage work space in a tiny kitchen
 Provide safety gear to all chefs
 Take regular breaks
 Label food/ ingredients in the dry store and equipment in the store room to ensure everything is placed/
stored in their place during and at the end of shifts
 Ensure that appliances are maintained and serviced on a scheduled basis
Case study
5.1 “Experiencing changes in guests, rates, menus, events and staff. At an even higher level, hotels
experience changes in management, brands, job responsibilities, revenue strategy and guest
expectations. Widespread changes in distribution, technology, analytics and industry mergers also affect
the hospitality industry in nearly every region.”
5.2
 People: “Restructuring a hotel organization around new processes requires an active, engaging transition
plan for employees and teams that supports the new direction. This may involve adding new leaders,
redesigning job roles and responsibilities, and developing a higher standard of skills and capabilities.”
 Process: “To make analytics work effectively for a hotel organization, the company culture needs to be
geared toward a common goal of data integrity and the effective implementation of analytical decisions.”
 Technology: “High performance forecasting capabilities provide a dynamic selection of hundreds of
forecasting algorithms and models to give the best possible results; granular data and decisions can be
provided for multiple hotels by departments, segments, room types, day parts and rate codes; predictive
analytical tools allow hotels understand the impacts of changing strategy; advanced pricing and inventory
controls maximize revenue opportunities; and expanded data sources such as reputation, competitive
performance, rate shopping and value of demand can be integrated into decision outputs.”

Knowledge checks
5.1 True
5.2 True
5.3 False
5.4 True
5.5 True

Unit
6: Managing diversity

6.2 What is diversity?  Define the concept of diversity
6.3 Benefits of managing diversity  Explain the benefits of managing diversity in a tourism and
hospitality context
6.4 Changing diversity paradigms  Discuss the different paradigms relating to diversity
6.5 Managing diversity  Describe how diversity can be managed through a five-step
model


6.1 Introduction
Tourism and hospitality organisations must recognise and respect differences and similarities within the society
and their employees. Effective management of diversity will promote equality, create high levels of creativity and
individualism, and productivity within organisations. Diversity promotes the saying “treat others the way in which
you want to be treated”. This unit will focus on the benefits and paradigms of diversity and how to successfully
manage diversity within a tourism and hospitality organisations.
6.2 What is diversity?
VIDEO ACTIVITY 6.1
Watch the following video and explain in your own words how differences in the workplace
can be managed.
https://www.youtube.com/watch?v=vWLDEBiriMw
Diversity can be defined as the mosaic of people who bring a variety of backgrounds styles, perspectives, values
and beliefs as assets to the groups and organisations with which they interact. When diversity can be described
as the mosaic it provides a perspective which encourage members of tourism and hospitality organisations to keep
their individuality but also contributing collectively towards achieving a common goal. This definition also implies
that diversity includes everyone in the organisation which prevents discrimination. All people are different, but these
differences should be respected and accepted. Diversity does not only look at differences but also similarities.
These differences and similarities can be highly visible (such as age, race and gender) but can also be less visible
(such as values, personalities and religion). Diversity can be seen as an attractive feature to tourism and hospitality
organisation as people get to understand one another (Du Plessis, 2016b:104).
ACTIVITY 6.1
Do an internet search on the term diversity and define diversity in your own words.
THINK POINT 6.1

Think of any tourism or hospitality organisation you have visited in the past.
How does this organisation accommodate guests/ customers with special needs such as
disability?

6.3 Benefits of managing diversity

When tourism and hospitality organisations support diversity it will provide several benefits as listed by Du Plessis
(2016b:107-110):
 Generating fresh ideas: New and innovative ideas can come from hiring employees from a
variety of diverse backgrounds. Organisations find themselves in a global market with tourists
from various nationalities, races and religious where collective knowledge and experiences are
gained.
 Improving firm growth: Tourism and hospitality organisations that correctly manages diversity
can provide opportunities to increase organisational effectiveness, productivity, maximising
individual talents and promoting innovation.
 Enhancing firm image: When diversity is not managed successfully it could have a negative
effect on the diverse consumers with buying power. Managing diversity successfully will create
a favourable image that attracts customers, investors and employees.
 Hiring valuable human resources: the way how tourism and hospitality organisations recruit
employees, train them, manage them, reward them and support them in their career
development will determine the successful delivery of tourism and hospitality services. Hiring
human resources that represents diversity based on skills will ensure that the organisation recruit
the best talent possible, despite the differences and similarities.
6.4 Changing diversity paradigms

Different organisations have different perspectives on accepting, rejecting or embracing diversity. These attitudes
towards diversity can be called paradigms. Managers can approach diversity differently (looking at the different
paradigms) as highlighted by Du Plessis (2016b:108-111):
6.4.1 Resistance paradigm

The resistance paradigm is characterised by actions of avoidance are denial, rebelliousness or
manipulation of staff statistics where difference among staff are regarded as a threat rather than an
opportunity. This paradigm still exists in organisations that are afraid to adapt and change into a diverse
workforce.
6.4.2 Discrimination and fairness paradigm
This paradigm focusses on equal opportunities, recruitment and treatment, and legal compliance of
employees against the South African Employment Equity Act. The focus of the organisation is then put

more on disadvantaged groups and not on the organisation as whole. It also encourages employees to
view each other as equal and not to recognise any differences. A disadvantage can be that the company’s
workforce is primarily based on legal decisions rather the qualifications of the individuals which can lead
to unqualified employees in the organisation. Some employees can view these legal decisions (such as
affirmative action) as an obstruction and might feel that their managers treat others unfair to meet
employment equity quotas as set out by the South African Department of Labour. The differences are
what often causes the problems within this paradigm.
6.4.3 Access and legitimacy paradigm
This paradigm define diversity in such a way that it supports and encourages differences such as
nationalities, values, ages, and culture throughout the work force whether it is legally required or not. This
paradigm celebrates and affirms differences in employees and is focused on managing diversity
voluntarily to increase customer share in the market. Employees might feel that they are being “abused”
or experience a feeling of exploitation if companies market their equity status in order to increase market
share. The differences are what creates opportunities within this paradigm.
6.4.4 Learning and effectiveness paradigm
This paradigm aims to stimulate new thoughts on services, strategies, goals and objectives and
organisational culture. It also motivates tourism and hospitality organisations to accept differences among
employees so that the organisation can learn and grow. This paradigm promotes equal opportunities for
all individuals and aspires innovation, customer satisfaction and corporate social responsibility. The
differences and similarities offer opportunities within this paradigm.
READINGS 6.1
Visit the following website for additional reading on diversity paradigms:
https://hbr.org/1996/09/making-differences-matter-a-new-paradigm-for-managing-diversity
6.5 Managing diversity

Diversity can be managed by following a five-step model (Du Plessis, 2016b:111-112):
6.5.1 STEP 1: Commitment from top management
Top management should set an example when valuing diversity. They must demonstrate personal
commitment to include diversity initiatives in the planning and implementation within organisations.

6.5.2 STEP 2: Establish a diversity leadership team to guide the diversity initiative
The organisations should establish a diversity leadership team which consists of employees from different
departments, different levels of management and different demographics. This team should communicate
and demonstrate the role/ benefits of diversity to the rest of the employees.
6.5.3 STEP 3: Conduct and assessment of the organisational climate
The leadership team must investigate diversity issues within the organisation. The results should be
communicated to the entire organisation to increase awareness of the benefits of diversity and to reduce
resistance towards diversity.
6.5.4 STEP 4: Craft a vision that values diversity
The organisation must develop a vision on diversity and state why it is important for the organisation.
6.5.5 STEP 5: Develop and implement a strategic plan for valuing diversity
In order to value diversity, the organisation must develop objectives and plans to overcome the diversity
issues raised in step 3. Policies should be amended to be aligned with the diversity mission and vision.
Employees must be trained to transfer knowledge diversity skills to others
CASE STUDY 6.1
Hospitality ‘making progress’ on diversity
The hospitality, leisure and travel industry were making progress towards improving gender
diversity in senior leadership, but the industry lagged behind in ethnic diversity in senior
positions. The Women in Hospitality, Travel & Leisure annual report found that the sector was
on course to reach the target of 33% female representation across the three most senior
leadership levels by next year. This year’s report showed that female and black, Asian and
minority ethnic representation at each of the most senior levels – board, executive committee
and direct reports – had increased. The percentage of women on executive committees had
increased across 43% of companies, and at board level, that applied to almost half of
companies (47%). NED roles stood out as the one area of the board where there had been

significant progress - 36.4% of NEDs in the sector were women. Gender pay disclosures in
the sector showed a marginal improvement overall, with the mean gap 7.6% compared to 8%.
A third of employees surveyed believed that diversity and inclusion in their organisation had
got better in the past 12 months.
Elliott Goldstein, partner, The MBS Group said: “The Hospitality, Travel and Leisure sector can
be immensely proud of the progress it has made over the past year on diversity and inclusion.
Through our conversations with the industry’s chairs, CEOs and HR directors for this report,
we detected a palpably different level of engagement and progress compared to the previous
year – and there have been a number of diverse appointments in key Chair, CEO, SID and
NED roles. Whilst there is still a long way to go, we believe that on its current trajectory, the
sector as a whole is on course to reach the target of 33% female representation across the
three most senior leadership levels by next year.” There was room for improvement, with 84%
of businesses still not on track to reach 33% female representation across all three leadership
levels by end of 2020 and less than 10% of chair roles being held by women.
(Source: https://www.hotelmanagement.net/human-resources/hospitality-making-progress-
diversity).
6.1 Identify the possible benefits that diversity may have for tourism and hospitality
organisations.
6.2 By reading this case study, discuss whether tourism and hospitality organisations are
accepting, rejecting or embracing diversity.
6.6 Summary
This unit looked at the importance of accepting and managing diversity, and how it is viewed, in tourism and
hospitality organisations. Diversity allows the organisations to treat others with respect and dignity, to be willing to
negotiate in good faith, to provide opportunities for employees for self-expression, to understand the believes and
practices of indigenous people, to honour seniority especially in leadership choices, and to promote equity in the
work place.

6.1 Diversity is primarily about recognizing the differences among employees in tourism
and hospitality organisations.
6.2 When an organization manages diversity, it can lead to the enhancement of the image
of the organisation.
6.3 Managing diversity is based on affirmative action.
6.4 The learning paradigm promotes diversity in the workplace.
6.5 The resistance paradigm focuses on the celebration of differences in the workplace.
6.1 Define the concept of diversity.
6.2 Explain the benefits of managing diversity in a tourism and hospitality context.
6.3 Discuss the different paradigms relating to diversity.
6.4 Describe how diversity can be managed through a five-step model.
Video activity
This is open for interpretation. Suggested answer: To take into consideration the diversity of the workforce.
Think point
Activity 6.1
This is open for interpretation. Student to provide own opinion on the question provided

Case study
6.1
 Broader representation by races – greater perspective on topics
 Representation by both genders – greater perspective on topics
6.2 Embracing change
Knowledge checks
6.1 True
6.2 True
6.3 False
6.4 True
6.5 False

Unit
7: Managing individuals and groups

7.2 Individuals in the tourism and  Discuss how to successfully manage individuals in tourism
hospitality industry and hospitality organisations
7.3 Individual employee behavior  Explain the aspects that influence organisational behavior
7.4 What is a group and a team?  Differentiate between groups and teams
7.5 Types of teams  Differentiate between informal and formal work teams
 Differentiate between the different types of formal work

teams
7.6 Advantages and disadvantages of  Describe the advantages and disadvantages of working
working in teams teams
7.7 Key concepts affecting work teams  Describe the key concepts associated with work teams
7.8 The development process of work  Outline and describe the development process of work
teams teams
7.9 How to improve the effectiveness of  Understand various tactics to ensure the effectiveness of
teamwork teamwork within an organisation


7.1 Introduction
Tourism and hospitality organisations cannot be successful and deliver quality service to customers without their
employees. This unit will therefore provide an overview of aspects that are important to consider when managing
individuals and managing work teams. These include individual organisational behaviour, personalities,
personalities, emotional intelligence, key concepts involved in managing teams, development processes of work
teams, and how to ensure the effectiveness of work teams in organisations.
7.2 Individuals in the tourism and hospitality industry

Individuals in tourism and hospitality organisations are important because they are the face of the company and
have a direct impact on the quality of the product and the overall visitor experience. Individuals have their own
values, personalities, needs and wants, that are influenced by the internal and external environments and are the
most difficult asset to manage. Managers, as effective leaders, must understand the attitudes and values of
employees towards their job. The working environment within tourism and hospitality organisations must
encourage employees to provide high quality customer service, to improve customer satisfaction and profits. They
must also focus on the perceived internal service quality for employees as high performing tourism and hospitality
organisations are characterised by satisfied employees. Satisfied employees will be more productive and will
provide better quality service. When quality service is provided customers receive value for money which can
increase customer loyalty and in return have a positive effect on the organisation’s profitability. Individual
employees must be constantly motivated to improve effectiveness within the organisation. This can be done in the
following ways:
 Encourage employee participation and commitment.
 To deliver quality service at every level and every encounter as customers will evaluate their experiences
based on the results from the one-on-one service encounters when they visit.
 Developing and expanding employee commitment, capacity and innovation.
 Creating a workplace environment where everyone is motivated to excel and is also accountable for the
organisation’s success.
It is therefore important that the organisational culture and the implementation of change is focused on satisfying
customer experiences. In essence, all managers and employees are responsible to ensure performance.
Individuals will not be effective if there is no organisational support. Performance is the result of motivation and
ability and individuals must have enthusiasm to perform their duties but also have a clear understanding of what
to do and how to do it (De Witt, 2016b:143-145).

7.3 Individual employee behaviour

Individual behaviour relates directly to the profitability of the organisation. Managers must understand individual
behaviour and how it influences individual behaviour. De Witt (2016b:145-148) states that personal values,
attitudes, personality and emotional intelligence are variables that can affect individual behaviour at work.
7.3.1 Personal values

Values relate to what an individual perceives as right, good and desirable. Employee satisfaction will be
higher when their values fit well with the organisation. There are different types of values that can assist
managers to characterise potential employees and to determine if their values fit with those of the
organisation. These types of values include:
 Conformists: low tolerance of uncertainty and they desire the acceptance of others
 Trialist: high dependence strongly influenced by tradition and authority by those in power
 Egocentric: individualistic, selfish, and respond mainly to those in power
 Manipulative: strive to achieve status and recognition by manipulating others
 Socio-centric: they want to get along with and be linked by co-workers
 Existential: high tolerance of ambiguity and people with differing values, open-minded and have
a dislike for inflexible systems
7.3.2 Attitudes
Attitudes are the favourable or unfavourable statements through which people express their feelings about
other people, objects or situations. People form attitudes for example about salaries, working conditions,
supervisors etc. Job satisfaction and organisational commitment are two essential work-related attitudes
that can affect an individual’s organisational behaviour. The level of the individuals’ job satisfaction will
be influenced by aspects such as needs and aspirations, working conditions, remuneration and
relationships with co-workers. Organisational commitment refers to the individual’s connection with the
organisation. A person will be highly committed if he feels satisfied and part of the organisation.

7.3.3 Personalities
Personality refers to psychological characteristics that distinguishes individuals from one another.
Managers must understand personality characteristics and how these characteristics can influence
organisational behaviour. De Witt (2016b:146-147) describes the following personality characteristics:
 Myers-Briggs type indicators: this indicator is a self-reported psychological preference

framework that differentiate people in terms of four scales namely: (1) extroversion vs.
introversion (refers to how we prefer to get our energy – extroverted individuals are energised
by other people, events or things. Introverted people process their thoughts internally before
speaking.); (2) sensing vs. intuition (refers to how we prefer to gather or make sense of
information – sensing types are more logical and factual. Individuals that wants to understand
the world through and intuitive process prefer to live in a world of possibilities and options.); (3)
thinking vs. feeling (refer to how we prefer to make decisions - thinking types will make decisions
based on considering all available information and options. Feeling types will make a decision
based on whether it fits with their personal values.); and (4) judging vs. perceiving (refers to how
we prefer to interact with the outer world – judging types have sound discipline and thrive in an
orderly environment, the feeling types prefer to be spontaneous and have a lifestyle that is not
flexible or adoptable.).
 Locus of control: is the extent to which people believe their behaviour has a real effect on what
happens to them. People who believe that they are in control of their own lives and take
responsibility for their own successes and failures are people with an internal locus of control.
People with an external locus of control think that fate, luck or other people’s behaviour controls
what happens to them.
 Self-efficacy: refers to an individual’s beliefs about his/her capabilities. Confident people have a
high self-efficacy whereas people with a low self-efficacy will doubt their abilities to perform a
task.
 Authoritarianism: is the extent to which an individual perceives power and status differences. An
individual with high authoritarianism will accept orders based on the other persons position. An
individual who is not highly authoritarian will question a person in position of authority and are
more likely to disagree with him/her.

 Machiavellianism: refers to the behaviour that is aimed at gaining power and control over others.
People with a high Machiavellianism tend to influence others. Meaning that people with a low
Machiavellianism are emotionally distant and do not influence others.
 Risk propensity: refers to people’s willingness to take risks. Those with a high-risk propensity will
most likely make more rapid decisions compared to individuals with a low risk propensity.
VIDEO ACTIVITY 7.1
Watch the following video and identify the categories for individual
differenceshttps://www.youtube.com/watch?v=xSnP9Y-5DEE
Based on the types of personalities it is evident that some people work better in groups and others work better
individually. Managers of tourism and hospitality organisations must understand these differences to manage
individuals more effectively. The advantages and disadvantages of working individually are listed by De Witt
(2016b:148).
The advantages of working alone:
 Individuals avoid group conflict situations
 When time is limited it is easier to make decisions
 Individuals have to take responsibility for their tasks which might reduce more efficient outcomes
 Individuals might experience a greater sense of achievement when competing tasks on their own and
their individual efforts are recognised.
 When working alone the individual does not have to confirm to the group’s ideas.
 Individuals do not have to compromise

The disadvantages of working alone
 People working alone might feel isolated.
 They do not have the advantage of group decision-making.
 Working alone can minimise creativity
 Problem solving might complex and difficult without the input of others.
THINK POINT 7.1

When an important task is assigned to you, do you prefer to work in a group, or would you
rather work alone to successfully complete this task? Provide a reason for your answer.
7.3.4 Emotional intelligence
Individuals deals with their emotions in different ways. Individuals who manages their emotions effectively can be
seen as emotionally intelligent. People with high emotional intelligence perform better, where a lot of interpersonal
interaction is required. De Witt (2016b:148-149) highlights five dimensions of emotional intelligence:
 Self-awareness: is about knowing one’s emotions and is the ability to monitor feelings and to guide one’s
own behaviours effectively.
 Managing emotions is an individual’s ability to balance emotions of fear and anger so that it does not the
achievement of goals are not interrupted.
 Motivating oneself is about people’s ability to remain optimistic when they’ve experienced a failure or
setback.
 Empathy: refers to the recognition and understanding of emotions in others without being told.
 Social skills: refer to an individual’s ability to get along with others and establishing favourable
relationships.
Self-awareness, the ability to manage emotions and to motivate oneself can be seen as personal competencies.
Whereas empathy and social skills are more social competencies.

READINGS 7.1
Visit the following website for additional reading on emotional intelligence:
https://www.psychologytoday.com/za/basics/emotional-intelligence
7.4 What is a group and a team?

When two or more people come together, they are regarded as a group. When this group share a common goal,
they are regarded as a team. Hermann (2016b:154) identifies five characteristics of a team:
 All members of a team are focused on achieving set goals and objectives (task oriented).
 Teams are created to fulfil a specific purpose.
 Teams are interdependent as they rely on one another to fulfil their duties.
 Teams have a formal structure with clearly defined hierarchy roles and responsibilities.
 Members in teams are familiar with one another as they interact to complete tasks and activities.
7.5 Types of teams

Different teams perform different tasks and can be divided into informal, formal teams and virtual teams (Hermann,
2016b:154-157).
7.5.1 Informal teams

These teams are also known as social teams because it exists primarily for socialisation. These teams
form around common interest or friendships in the work environment. Members in informal teams meet
regularly to participate in activities to share feelings and thoughts on mutual problems and developments.
Informal teams built trust between employees and can improve loyalty between the employee and
employer.
7.5.2 Formal teams

Formal teams are also known as work teams. Work teams are created within an organisation’s formal
structures with assigned responsibilities and tasks to achieve the organisations objectives. Specific tasks
are assigned to each employee within a work team which they are held accountable for. Goals are
achieved with common effort from all members in the team.

Work teams may be divided into:

 Function teams (refers to where work is assigned to a specific department that performs a
specific function such as marketing or housekeeping. They all work together to address issues
within their area of expertise)
 Problem solving work teams (consists of team members from different areas within the same
department with a focus on solving problems or how work processes can be improved within the
department)
 Multifunctional work teams (known as multi-disciplinary work teams where members of different
functional areas come together to address tasks. Members have diverse interests, expertise
knowledge and skills that contributes together to manage problems and coordinate activities.)
 Self-managing work teams (these teams are responsible and accountable for all aspects of
service delivery and may carry out tasks such as planning and scheduling workflow and tasks.
They have a greater decision-making responsibility. Responsibilities are usually rotated amongst
members of the team.).
7.5.3 Virtual teams

These teams are formed when members cannot be physically be together or may not always meet at the
same time and uses technology to communicate. These teams are working remotely and often from
various geographical locations on a single project.
7.6 Advantages and disadvantages of working in teams

Advantages of working in teams (Hermann, 2016b:158):
 When working in a team more people can contribute towards the achievement of the goal by sharing
ideas.
 Teams provided a supportive environment which motivates people to work harder.
 Synergy is created when team members work together as a team that works together is a strong team.
 Team members learns from other team members when working in a team.
 Teamwork creates and atmosphere of trusts among team members and fosters respectful relationship
and communication between members.

Disadvantages of working in teams (Hermann, 2016b:159):
 When a team consist of too many people with too many diverse ideas there may be no unified vision or
progress.
 Group conflict may result when some members in a team have very strong personalities and think only
their own vies are correct without taking into account the views of others. This may lead to less innovation
and failure to achieve goals.
 Members in a team might feel inferior and unimportant when one or a few people dominates a team which
often creates confit among team members.
 These members may not be motivated to perform well, hence all team members should be given equal
opportunity and representation.
7.7 Key concepts affecting work teams
Work teams can be influenced by a number of primary factors that is highlighted by Hermann (2016b:159-160).
7.7.1 Leadership
As discussed in Unit 4, a leader can be considered the person in a team that gives direction and motivates
other team members to achieve goals and objectives. Leaders are thus critical to the success of a work
team. The leadership role must to rotational amongst the team members.
7.7.2 Roles and responsibilities
Each team member within a work team receives roles and responsibilities that are clearly communicated
to ensure that the teams’ goals and objectives are achieved.
7.7.3 Norms
Norms can be referred to as the standard behaviour that develops within a group. Formal norms consist
of rules and processes and are used to control measures for the group. For example, team dress codes.
Informal norms may include aspects such as expected attendance at meetings.

7.7.4 Status
Status is the perceived hierarchy or ranking of one team member relative to other team members. Some
members of the team may have higher positions of responsibility within the group. The level of status of
a member is determined by his/her level of knowledge, aggression and power compared to others in the
group. For example, the front of house manager might have his own office, the hotel general manager
will have an even larger office, but the receptionist will not have an office.
7.7.5 Diversity
Work teams consisting of people with diverse backgrounds skills and knowledge might be more effective.
Diversity as explained in Unit 6 may include aspects such as race, gender, educational level, experience,
age and creativity. Diverse work teams might address the needs of a diverse market more effectively.
ACTIVITY 7.1
List the responsibilities for team members planning a birthday party for a colleague in the
same organisation.
7.8 The development process of work teams

Work teams undergo stages of group development. A manager must recognise the stage a work team is currently
in as a new work team cannot be managed in the same way as an established team. Hermann (2016b:160-162)
addresses five stages of group development which will be discussed next.
7.8.1 Forming
During the forming stage the work team does not yet exist, and members of the team are not yet familiar
with one another. The team’s goals are not yet clear or yet formulate. It is important to have a good leader
in this stage of the development process because members are unsure what to expect. Team leaders
can make use of team building activities to assist members to build a strong relationship between them.
7.8.2 Storming
During this stage members slowly start becoming familiar with one another. This stage is usually
associated with conflict, disagreements and tension as some members may start to dominate others and
voice their opinions regarding how the team should function. Productivity levels are usually low and the

team leader must usually work in conflict resolution strategies so that the team can reach the next stage
of development.
7.8.3 Norming
During this stage team members are familiar with other members of the team and conflict is starting to
reduce. Members are starting to work together to achieve the goals of the group and are avoiding conflict
to maintain balance in the group by taking in different viewpoints. During this stage rules, procedures and
boundaries are developed and implemented. The group are now a unified group however productivity is
not yet optimal as members are still growing with regards to relationships.
7.8.4 Performing
During the performance stage the team is organised and functioning as a cohesive unit. Team members
listen to one another and are able to deal with complex tasks, can provide construct criticism an feedback,
and can deal with conflict. There is a sense of trust amongst the team and are motivated and focused on
achieving the goals of the team. Some work teams remain at this stage for a long period whilst others
only exist until the problem is solved. such as a problem-solving team.
7.8.5 Adjourning
This is the final step in the group development process as the work-team will break-up when the task is
successfully completed. During this stage activities are finalised, and problems are solved. When a work
team split up, they no longer function as a unit, but they can form a team in the future to solve similar
problems or to attend to new issues.
READINGS 7.2
Visit the following website for additional reading on the five stages of team development:
https://toggl.com/stages-of-team-development/

7.9 How to improve the effectiveness of teamwork

Work teams in tourism and hospitality organisations must work together to provide good quality services. Herman
(2016b:162-165) addresses seven approaches to improved teamwork in tourism and hospitality organisations.
7.9.1 Selecting the right people

Managers must ensure that the right people are chosen to fulfil specific roles and responsibilities within a
work team. Managers must select individuals based on their skills, physical abilities, interpersonal skills,
and personality attributes to ensure that they will fit into the group.
7.9.2 Training
When individuals are selected to be part of a work team, they must be trained to improve skills and be
oriented towards the purpose, goals and objectives of the work team.
7.9.3 Implementing reward and recognition systems

By implementing a reward and recognition system managers can enhance the attainment of these goals
and objectives. Managers can reward the work team when these goals and objectives are achieved
through bonuses or a paid holiday. Managers can also bring in recognition systems such as employee of
the month, that recognises a specific area of performance within the organisation.
7.9.4 Building social relationships

Managers of tourism and hospitality organisations must in ensure that work team members know each
other and are comfortable discussion different issues. This leads to mutual trust and the team can function
better as a unit. This can be done through team building activities, or annual breakaway sessions.
7.9.5 Outline clear roles and responsibilities

Managers must ensure that all members of a work team are aware and understand their specific roles
and responsibilities within a team and that they have the necessary skills to fulfil their roles and
responsibilities. Training may be required if they lack the necessary skills and competencies.
7.9.6 Identify and solve problems

Work teams must identify and solve current problems but also foresee potential problems that might arise
in the future. It is important that the work teams provide feedback to managers so that proactive measures
can be developed to address these problems. Some of these problems may include education problems,
disputes on how to handle tasks, and personality clashes.
7.9.7 Conflict resolution

Managers must provide clear instructions to work teams on how to resolve conflict between members.
This will boost teamwork by empowering members to solve their own issues.

THINK POINT 7.2

Think back on when you were part of a team to perform a task. How did you handle conflict
during this time?
7.9.8 Coordination
Coordination refers to the balance and effective interaction of a number of factors in order to perform a
set of tasks. Coordination will occur when team members work in an orderly fashion and when strengths
and opinions compliment one another. Managers must ensure that the tasks are performed as planned.
7.9.9 Communication
Communication involves the exchange of information among team members. Effective communication
ensures that all members know what is expected of them. Communication can take place through regular
meetings, telephonic conversations or emails. Employees must be both aware of what is expected of
them but also provide feedback to managers.
7.9.10 Cohesion
Team members works individually to reach goals but interpedently on a team’s tasks. This means that
team members can influence the work of others in the team. Cohesion refers to the personal attractions
that each team member feels towards the work team. All team members should feel that they are part of
the team and that their contribution is important. Team members must encourage feedback from one
another so that performance can be improved which will benefit the whole team.
VIDEO ACTIVITY 7.2
Watch the following video and explain in your own words ways in which you will build a
successful work team
https://www.youtube.com/watch?v=ckEOQKmZPlI

CASE STUDY 7.1
Chalet Hotels certified as Great Place to Work
Chalet Hotels Ltd, owner, developer and asset manager of high-end hotels in key metro cities
in India makes its debut, by getting certified in the 2020 - 2021 list of Great Places to Work
(GPTW) by Great Place to Work® Institute (India). Chalet Hotels Ltd. makes it to the
prestigious list among other top Companies basis best practices benchmarked to global
standards.
Great Place to Work is the global authority on building, sustaining and recognizing High-Trust,
High-Performance Culture at workplaces. Chalet Hotels has earned this recognition among
several thousands of entries across various sectors like entertainment, media, technology,
financial services and more, which were subject to a rigorous screening and selection
procedure including Culture Audits and validated employee feedback. The GPTW survey
assesses employee experience across five dimensions – credibility, fairness, pride, respect,
and camaraderie. The survey is designed to help define the relationship employees have with
management, with other employees and the personal connection to their jobs.
Speaking about this, Sanjay Sethi, MD & CEO, Chalet Hotels Ltd. said, “As one of the country’s
largest hotel asset management companies we are honored to make an entry into the
prestigious list of Great Place To Work. In a people-intensive industry like ours, creating an
environment with positive employee experience is a key strategic priority for businesses and
we are glad this has echoed in the employee feedback too. We have evolved into a company
where people inspire and challenge each other to be their best, and recognitions like GPTW
strengthen our resolve to do better and focus on creating a benchmark in the industry.”
With the rising number of millennial and Generation Z employees, Chalet Hotels Ltd.
empowers its people through integrated policies and robust learning and development
programs. The company has always been one of the pioneers in responsible corporate
practices. In 2019, the company also introduced ‘The Pride Side’ policy, which fortifies a non-
discriminative and transparent environment at the workplace.
Some of the other path leading practices for employees at Chalet Hotels Ltd. include the
Anchal policy which encompasses initiatives and practices to support expectant mothers to
achieve work-life balance and to help them conquer challenges. For the new fathers, the hotel
introduced a 5 days paternity leave-taking into consideration the increased work and personal
responsibilities and the inevitable need to make time for the family, to be there for them.
A rendezvous with the CEO is a monthly initiative that gives the employees, across all levels,

a direct platform to showcase their ideas and concerns or just a discussion with the top
management. Every phase in life demands an upgraded version of oneself. Based on this
thought, Leadership Execution Accelerated Program (LEAP), a one-year intensive leadership
development programme, specially designed to upgrade their professional skills and apply the
knowledge gained to function efficiently on a day to day basis.
(Source: http://bwhotelier.businessworld.in/article/Chalet-Hotels-certified-as-Great-Place-to-
Work/24-04-2020-190204/).
7.1 Explain the Great Place to Work reward.
7.2 Explain how Chalet Hotels motivate their employees to improve effectiveness within the
organisation.
7.10 Summary
The purpose of this unit was to discuss the role of individuals and teams in a tourism and hospitality organisation.
Although these organisations recruit and select individual employees based on their skills and knowledge to
perform specific roles and responsibilities within the organisation they must work as a cohesive unit with other
team members in order to achieve organisational goals and to deliver high quality services. It is therefore important
for managers to know how to manage individuals and teams within the workplace.
7.1 An egocentric employee has a low tolerance of uncertainty and desires the acceptance of
others.
7.2 Personality refers to the favorable or unfavorable statements through which people
express their feelings about other people, objects or situations.
7.3 Leadership can affect work teams.
7.4 When working in a team, team members learn from other team members.
7.5 Self-managing work teams include employees who are responsible and accountable for
most of the aspects of delivering a service.

7.1 Discuss how to successfully manage individuals in tourism and hospitality

organisations.
7.2 Explain the aspects that influence organisational behavior.
7.3 Differentiate between groups and teams.
7.4 Distinguish between informal and formal work teams.
7.5 Differentiate between the different types of formal work teams.
7.6 Describe the advantages and disadvantages of working teams.
7.7 Describe the key concepts associated with work teams.
7.8 Outline and describe the development process of work teams.
7.9 Assess various tactics to ensure the effectiveness of teamwork within an

organization.
Video activities
7.1 This is open for interpretation. Suggested answer:

 Physical
 Psychological
 Emotional
7.2 This is open for interpretation. Suggested answer:

 Appreciation
 Belonging
 Develop talent
 Celebration
 Communicate a compelling purpose
Think point
This is open for interpretation. Student to provide own opinion on the questions provided

Activity 7.1
 Member 1: design of birthday invites and distributing these

 Member 2: arrangements/ preparation of birthday snack and cake
 Member 3: arrangement of birthday décor and sound/music to play during the event
 Member 4: buying of present and sighning of birthday card by all colleagues
Case study
7. 1 “Great Place to Work is the global authority on building, sustaining and recognizing High-Trust, High-
Performance Culture at workplaces. Chalet Hotels has earned this recognition among several thousands
of entries across various sectors like entertainment, media, technology, financial services and more,
which were subject to a rigorous screening and selection procedure including Culture Audits and validated
employee feedback. The GPTW survey assesses employee experience across five dimensions –
credibility, fairness, pride, respect, and camaraderie. The survey is designed to help define the
relationship employees have with management, with other employees and the personal connection to
their jobs.”
7.2
 “We have evolved into a company where people inspire and challenge each other to be their best”
 “The company also introduced ‘The Pride Side’ policy, which fortifies a non-discriminative and transparent
environment at the workplace”
 “The Anchal policy which encompasses initiatives and practices to support expectant mothers to achieve
work-life balance and to help them conquer challenges. For the new fathers, the hotel introduced a 5 days
paternity leave-taking into consideration the increased work and personal responsibilities and the
inevitable need to make time for the family, to be there for them”
 “A rendezvous with the CEO is a monthly initiative that gives the employees, across all levels, a direct
platform to showcase their ideas and concerns or just a discussion with the top management”
 “Leadership Execution Accelerated Program (LEAP), a one-year intensive leadership development
programme, specially designed to upgrade their professional skills and apply the knowledge gained to
function efficiently on a day to day basis”

Knowledge checks
7.1 False
7.2 True
7.3 True
7.4 True
7.5 True

Unit
8: Quality Management

8.2 What is quality?  Define the concept of quality.
8.3 The difference between quality  Differentiate between quality control, quality assurance and
control, quality assurance and quality quality management
management
8.4 Types of quality management tools  Evaluate quality management tools such as total quality
management, Six Sigma and Kaizen
8.5 Principles of good service  Discuss the importance of customer service in tourism and
 Examine the role of managers to ensure excellent guest

services
 Outline the unique characteristics of services sector
8.6 Measuring customer service  Examine how customer service can be measured


8.1 Introduction
Tourism and hospitality organisations offer services to customers. These services must address the uniqueness
of service as an output and service quality dimensions in order to attract and retain customers. Organisations can
only foster loyal customers if their expectations of the service are exceeded and they received value for money.
Service quality must be measured on a contentious basis thought quality management tools. Hence this unit will
focus on quality management within the tourism and hospitality industry.
8.2 What is quality?

Quality can be defined as the ability of a service to do what it is supposed to do reliably and to satisfy a customer’s
expectations (Du Plessis & Hermann, 2016:221).
READINGS 8.1
Visit the following website for additional reading on quality management:
https://www.qualitymag.com/articles/95237-what-is-quality-management-and-why-does-
it-matter
THINK POINT 8.1

If you visit a guesthouse (or any type of accommodation establishment), what are your
expectations with regards to quality.
8.3 The difference between quality control, quality assurance and quality management
Quality control focuses on the detection of mistakes by inspections that are made as well as on actual performance
in a process and measures such performance against a set standard. When the actual performance detracts from
the set standard corrective action must take place. The disadvantage of only using quality control is that the
deviation already occurred and has led to negative aspects such as loss of money and customer dissatisfaction.
Quality assurance should then become a priority (Du Plessis, 2016c:211).
Quality assurance prevents mistakes and focuses on activities to prevent rather than detect and is a proactive
means of ensuring quality (Du Plessis, 2016c:212).
Quality management encompasses all the above namely quality control and quality assurance. It integrates the
control and assurance activities into management processes to ensure that quality standards are achieved (Du
Plessis, 2016c:213).

ACTIVITY 8.1
Explain why quality control and quality assurance are important?
8.4 Types of quality management tools

Quality management tools can be used to implement quality service. The most common quality management tools
as outlined by Du Plessis and Hermann (2016:229-235):
8.4.1 Total Quality Management (TQM)

This quality management tool is a collective effort of management and employees within tourism and
hospitality organisations to create effective policies and strategies to deliver high quality services that will
exceed customer satisfaction. TQM is the way of planning for the future as well as a manner in which
employees and processes can be managed to ensure quality service delivery within the organisation.
TQM is built on the understanding and listing of the customers expectation and feedback when developing
plans related to customer service. In order to implement TQM effectively top management must be
committed, the organisation should be customer focus as well as a focus on continuous improvement
through the creation of a quality service culture within the organisation. The organisation must recruit,
select, educate, train and satisfy employees to offer quality service. The organisation must strive to offer
the best standards of service delivery in order to benchmark itself against competitors. TQM is also
concerned with the physical environment of the organisation for example in order for a hotel to offer quality
service they must ensure that the infrastructure, décor, furniture and any other physical attributes are of
a high standard and of good quality.
8.4.2 Six Sigma

Six Sigma is a management philosophy aiming at setting high objectives and collecting and analysing
data to reduce defects in both services and products. By using this method managers will be able to
determine how to systematically eliminate the defects and get as close to perfection as possible. Six
Sigma is aimed at satisfying customers and ultimately creating customer loyalty to the organisation. The
defects of tourism and hospitality organisational processes are derived through statistical analyses which
is based on facts, data driven and results oriented. These results are used to create strategies that can
be used to improve on the quality of service delivered to customer requirements.

8.4.3 Kaizen
Kaizen is based on a Japanese word which means change for the better and can be defined as a
contentious effort by all employees to ensure improvement of all systems and processes of an
organisation. Kaizen is based on one principle: change is for the good. Kaizen then focuses on continuous
small improvements in all processes for organisational success. All employees need to contribute by
integrating small changes and improvements in the service system. One small change every day will lead
to continuous improvements of organisational processes that will enhance the quality service delivery.
The Kaizen method provides guidelines for achieving a well-organised workplace leading to greater
productivity and consequently improve quality service delivery. The Kaizen model is built on 5 Ss namely:
 Seiri (sort out – everything that is not needed should be eliminated).
 Seition (organised – every item in the organisation should have its own place and kept there).
 Seiso (shine in the workplace – workplaces should be kept neat and clean at all times).
 Seiketso-Seiketso (standardisation – policies should be standardised to ensure excellence in

quality).
 Shitsuke (self-discipline - to stimulate pride and ownership in the organisation, meaning that
employees should always be on time, dress apparently and never speak negatively about the
organisation).
These small improvements will yield immediate results as opposed to TQM and Six Sigma. The Kaizen
method is widely used in tourism and hospitality organisations as it yields positive results.
8.5 Principles of good service

Tourism and hospitality outputs is mostly considered to be services. It is therefore important to offer services of
good quality to customers. The following principles of good services is discussed by Du Plessis and Hermann
(2016:224-226):
8.5.1 Uniqueness of service as an output

Managing services may be more complex than managing physical goods. Services differ from products
in the following ways:
 Intangibility: Services are deeds, processes and performances and not physical objects which
can be seen, felt, tasted to touched.

 Heterogeneity: Services are provided by people and differ each time these are delivered as the
person delivering these services might not be in the same physical and mental state all the time.
All customers are also different with their own preferences and wants. The service rendered to
one customer might not the same service rendered to the next customer.
 Inseparability of operations: The provision of the service takes place simultaneously with
consumption. Meaning when a service is produced it is immediately consumed.
 Perishability: Services expire at the moment in which they are delivered and cannot be stored.
For example, a hotel cannot increase their profit by selling more rooms than what they have
available.
8.5.2 Service quality dimensions
The dimension of service quality can be described by means of the SERVQUAL model. The model
identifies five dimensions of service quality which are as follow:
 Reliability: Tourism and hospitality managers must deliver consistently on promises and need to
perform the promised service accurately.
 Assurance: The ability of the organization and its employees to inspire trusts and confidence in
the organisation’s service. Service providers that provide assurance tends to achieve higher
levels of service quality.
 Tangibles: It refers to the physical facilities equipment employees and communication materials
used within an organisation. It is then important for service providers to ensure that their physical
facilities are well-maintained, clean and well-presented, because it provides the physical
dimension to the service delivery process.
 Empathy: This refers to the caring and individualised attention that the organisation provides to
its customers. Organisations should see all customers as unique and must understand their
individual needs.
 Responsiveness: Refers to the ability and willingness to assist customers and to provide prompt
services with regards to requests, queries, problems, questions and complaints.

VIDEO ACTIVITY 8.1
Watch the following video and list the quality management tools identifiable within the
video:
https://www.youtube.com/watch?v=7Kc1reo8NU
8.6 Measuring customer service

It is important for tourism and hospitality organisations to control the levels of customer service. Customer service
can be managed in the following ways (Du Plessis & Hermann, 2016:227-228):
8.6.1 Monitoring calls and customer contact

Employees and customers in tourism and hospitality organisations must be in contact in order to deliver
service. During this contact period the customers will determine the service level. Managers must then
monitor these interactions. They can do it by recording the customer service calls and listen to them and
complete a checklist regarding service points whilst doing so.
8.6.2 Customer surveys

A customer survey is a questionnaire distributed to customers are a service is delivered. The
questionnaire can be distributed in the guestrooms, reception area or electronically via email. The survey
can ask the customer how they have experienced the service and could also ask questions relating to
problems, complaints and recommendations on improvements. The survey then gives customers the
chance to give direct feedback regarding the service to the organisation.
8.6.3 Count customer complaints and complements

Tourism and hospitality organisations must encourage customers to voice their concerns about any poor
or good service experiences. Complaints should be seen by the organisation as areas for improvement
and compliments will identify the strengths of the organisation. Customers can write complaints and
compliments in a customer feedback book or must be able to raise their concerns to employees of the
organisation. Employees must address complaints immediately or escalate to the supervisor if not in a
position to resolve the complaint.
8.6.4 Speed of consumer complaints resolutions

Customer service can be measured in the time it took to resolve the customer problems. For example,
how long did it take to receive a refund or replace the product for the customer. Customers that receive
fast feedback will perceive the service as being good. Employees must then try to solve the problems
directly where possible and should not pass the customer from person to person.

CASE STUDY 8.1
Bumper Year for TGCSA
It’s been an exciting start to the year for the team at the Tourism Grading Council of South
Africa (TGCSA). 2019 represents a historic and momentous year for the Grading Council with
the soon to be implemented revised grading standards for accommodation establishments
taking effect on 01 April 2019. The aim of the revised criteria was to advance and maintain a
recognisable, credible and globally benchmarked system of quality assurance for
accommodation and venues in South Africa
The Grading Council team kicked off their countrywide provincial roadshows in Cape Town
today. The aim of the roadshows is to outline the new grading criteria to all establishment
owners and at the same time introduce the new accolades program to all stakeholders. “Our
aim is to ensure that all visitors that stay at our graded establishments have only the best
memories and experience which will entice them to always choose to stay graded
establishments when going on holiday or business travel,” said Darryl Erasmus, Chief Quality
Assurance Officer at SA Tourism. “Apart from the new grading criteria, we are also excited by
the accolades program which allows for properties to capitalize on niche market differentiation.
Accolades includes insignia and criteria for niche markets such as child-friendly, pet-friendly,
wedding venues, spa and wellness facilities, 4x4 etc.”
In order to ensure that the new grading criteria is executed smoothly, close to 60 Independent
Grading Assessors from around the country attended intensive training last month. The
training focussed on the new grading criteria, application of the grading criteria and grading
system upgrades. “Our Independent Grading Assessors are the most important cog in this
wheel as we head into new territory later this year.” “We want to ensure that our assessors are
ready to assist our graded establishments in ensuring that they deliver to the highest
standards,” added Erasmus.
(Source: https://www.tourismgrading.co.za/about-the-tgcsa/news-media-and-events/latest-
news/bumper-year-for-tgcsa/).
8.1 Explain how the Tourism Grading Council of South Africa (TGCSA) ensures that quality
services are delivered at accommodation and venues in South Africa.
8.2 Explain how the TGCSA manages quality at accommodation and venues in South Africa.

8.7 Summary
The aim of this unit was to provide an overview of quality management within the tourism and hospitality industry.
Managers of tourism and hospitality organisations should have knowledge on how to manage quality effectively. It
is important to always take into consideration the principles of service quality and tools on how to measure service
quality within the organisation.
8.1 Reliability is a dimension of quality.
8.2 Responsiveness refers to the caring of individuals and the ability to inspire trust in the
organisation.
8.3 Quality service can be measured through complaints and compliments.
8.4 TQM allows managers to forecast future behavior of the target market.
8.5 Quality management tools are necessary to ensure that customers’ expectations are
met and exceeded.
8.1 Define the concept of quality.
8.2 Differentiate between quality control, quality assurance and quality management
8.3 Evaluate quality management tools such as total quality management, Six Sigma and
Kaizen
8.4 Discuss the importance of customer service in tourism and hospitality organisations
8.5 Examine the role of managers to ensure excellent guest services
8.6 Outline the unique characteristics of the services sector
8.7 Examine how customer service can be measured

Video activity

 Process map
 Control chart
 Pareto chart
 Cause and effect diagram
 Histogram
 Check sheet
 Scatter chart
Think point
Activity 8.1
Quality control and quality assurance are two important functions of quality management. Quality assurance is
focusing on preventing defect while quality control is focusing on identifying the defect.
Case study
8.1 The TGCSA has a grading system that is recognisable, credible and is a globally benchmarked system
of quality assurance for accommodation and venues in South Africa
8.2 They develop and ensures the implementation of grading standards at accommodation establishments.
Accommodation and venues are then evaluated on a regular basis. The grading system has several star
levels and the establishment is graded based on their level of star services they deliver.

Knowledge checks
8.1 True
8.2 True
8.3 True
8.4 True
8.5 True

Unit
9: Entrepreneurship
for Tourism and Hospitality

9.2 The concept of entrepreneurship  Discuss the concept of entrepreneurship
9.3 The roles of the entrepreneur  Describe the roles of the entrepreneur in the economy
9.4 The skills and resources required to  Explain the skills and resources required to become an
become an entrepreneur entrepreneur
9.5 Types of business opportunities for  Identify and describe the different ways of entering the
the entrepreneur to enter the business world
business world
9.6 The value of a feasibility study to the  Examine what a feasibility study is and state the importance
entrepreneur thereof for an entrepreneur


9.1 Introduction
This unit will examine entrepreneurship as a creative driving force for tourism and hospitality organisations. It
examines the nature of entrepreneurship and the role of the entrepreneur in the economy. An entrepreneur can
create opportunities to secure resources and take calculated risks to enter the business world. Different ways on
entering the business world are also looked and the feasibility of new opportunities are also discussed.
9.2 The concept of entrepreneurship
Entrepreneurs have been described as people who (Ladzani, 2019:45-46):
 are creative with the ability to produce new ideas to solve problems;
 are innovative when using new ideas to develop a new product, service, process or technique;
 identify opportunities that are created by the needs to people and changes in the environment;
 find resources, such as financial resources, human resources and natural resources, to peruse
opportunities;
 take financial risks of potential loss or failure of the business they start;
 bring about change, growth and wealth in the economy;
 re-energise economies and create jobs; and
 establish and grow sustainable small businesses.
In short, an entrepreneur can be defined as a creative person, who is highly motivated for achievement, is
willing to take calculated risks and use a challenge as a new opportunity (Ladzani, 2019:46). Entrepreneurship
can then be seen as the process of creating and building something of value in the mist of uncertainty and risk
and having the determination of exceeding against all odds (Ladzani, 2019:45). The difference between an
entrepreneur and a business owner is that the entrepreneur is motivated to not only establish but successfully
grow and expand the business, whereas a business owner might only be satisfied with the organisation as is.

ACTIVITY 9.1
9.1 Identify an individual in your community that can be regarded as an entrepreneur.
9.2 List the reasons why the individual identified in question 9.1. can be regarded as an
entrepreneur.
9.3 The roles of the entrepreneur

The entrepreneur has various roles within a society such as establishing new business ventures and to grow that
business. Businesses driven by entrepreneurs satisfies the needs and wants of customers by producing much
needed products and services through natural and human resources. In this process wealth is created in society
through job creation, and for the entrepreneur in the form of profit. Entrepreneurs are an essential source for
economic growth and social development. Without the creativity, self-efficacy, skills and expectations of
entrepreneurs the production process does not go into action. Meaning, entrepreneurs causes the production of
products and services and setting in motion the creation of employment opportunities (Ladzani, 2019:51-52).
THINK POINT 9.1

Do you think it is easy to be an entrepreneur in South Africa? Provide reasons for your
answer.
9.4 The skills and resources required to become an entrepreneur
A skill refers to the knowledge that is demonstrated through action. Management need these entrepreneurial skills
for greater chances for success. Entrepreneurs possess the following skills as identified by Ladzani (2019:59-60):
 Strategy skills: involves the ability to look at the business as a whole and to understand how to deliver
value to its customers that is different than its competitors.
 Planning skills: Involves the ability to predict the future and the potential impacts there might be on
the business and its resources. Actions must be planned to prepare for it.
 Marketing skills: refer to the ability to sell and distribute products and services that satisfy customer
needs and wants.
 Financial skills: involves the ability of entrepreneurs to manage money, for example monitor cashflow,
and assess investments.

 Project management skills: refers to the ability to organise projects to ensure resources are used
effectively at the right place, on the right time, in the right quantity, and the right quality.
 Human relation skills: the ability to deal with people including leadership skills, and communication
skills.
READINGS 9.1
Visit the following website for additional reading on entrepreneurial skills:
https://www.mindtools.com/pages/article/newCDV_76.htm
An entrepreneur needs adequate resources to start a business. These resources are financial resources, human
resources, and operating resources (Ladzani, 2019:60).
 Financial resources are resources in the form of cash, bank overdraft, loans or investment capital. It can
also be basic resources that can be converted into cash.
 Human resources are people with knowledge and skills that contribute to the such organisation. such as
the management team, accountants, and lawyers.
 Operating resources are assets such as offices, vehicles, equipment, buildings and machinery.
Entrepreneurs must carefully manage these resources to ensure that it is available for future use.
THINK POINT 9.1

Do you think that it is easy to become an entrepreneur in South Africa? Provide reasons
for your answer.
9.5 Types of business opportunities for the entrepreneur to enter the business world
Establishing a new business involves and idea that the entrepreneur pursues. It is therefore important for an
entrepreneur to understand the industry and knowledge of the market to get ideas that is valuable. Ladzani
(2019:61-65) identifies several ways where entrepreneurs can identify business opportunities:
9.5.1 New venture ideas
The entrepreneur can use trends within the environment to identify new ways in which products or
services can be distributed or offered. This can include economic trends, political trends, and social
trends. The entrepreneur can also look at industries such as the education industry, healthcare industry,

and tourism industry. Other sources of ideas include advertisements, retailers, competitors, trade shows,
industry association and research institutes. A creative person will find useful ideas in different ways and
transform these ideas into opportunities.
9.5.2 New venture opportunities
A good idea might not always be a good opportunity nor a good investment. For an idea to be a good
investment opportunity the following are required:
 The opportunity must have the potential to grow.
 The opportunity must be able to achieve a sustainable competitive advantage.
 The opportunity must be rewarding to the investor and/or the entrepreneur.
 The timing of the opportunity must be right.
 There must be a clearly defined market need for the product or service.
9.5.3 Buying an existing business
Ladzani (2019:64) list the following advantages to buying an existing business to enter the business world:
 Customers will be familiar with the business location.
 There is an established customer base.
 Experienced employees will come with the business.
 Planning can be based on known historical data.
 Supplier relationships will already be in place.
 Inventory and equipment will be in place.
 Financing may be available from the owner.

Ladzani (2019:64) list the following disadvantages of buying a business:
 The business location may be undesirable or threatened with becoming undesirable.

 The image of the business will become difficult to change.
 Employees are inherited rather than chosen.
 There may be difficulties in changing the ways in which the business is managed.
 There may be liabilities for past business contracts.
 Inventory and equipment may be obsolete.
 Financiering costs could drain the cashflow and threaten the survival of the business.
9.5.4 Franchising
Franchising gives the entrepreneur the opportunity to start the business that has been proven in the
workplace. The entrepreneur then becomes a franchisee that was given rights by the franchisor to operate
the business using the franchise name, products and systems. A franchisee cannot be seen as an
entrepreneur as they cannot experiment, operate and market their businesses on their own vision of how
things should be done. Instead, they must adhere to the rules and regulations of the franchisor. Examples
of hospitality franchises include Protea Hotels and City Lodge Hotels.
9.5.5 Corporate entrepreneurship

Corporate entrepreneurship is also known as intrapreneurship and exist within a business. This happens
when a person or team identifies a new business opportunity, within an existing business. This is done
by using the corporation’s resources and ensures new profits. For example, a manager of a 3-star hotel
recognised that the hotel’s customers do not like to travel during the night to buy food. The manager then
opened a restaurant in the hotel that only caters to guests and provides the option of in-room service from
16h00 until 20h00 in the evenings.
9.6 The value of a feasibility study to the entrepreneur
When an entrepreneur has an idea for a business the opportunity must undergo a feasibility analysis. Doing a
feasibility analysis may prevent the entrepreneur from losing valuable resources on an idea or opportunity that
offers little success. A feasibility study is the collection of data that helps forecast whether an idea, opportunity or
venture will survive and will provide the entrepreneur with information on whether or not to go ahead with the
venture. A feasibility study is not the same as a business plan as it only assists the entrepreneur to gather data
and making an informed decision. Depending on the outcome of the feasibility study, the entrepreneur can commit
to implementing the idea. If the idea appears feasible the entrepreneur can start to decide how to make the idea a
reality. At this stage the entrepreneur draws up a business plan.

VIDEO ACTIVITY 9.1
Watch the following video and explain in your own words the importance of a feasibility study
to the entrepreneur:
https://www.youtube.com/watch?v=hPpB6eEg7qQ
CASE STUDY 9.1
Roaring success in luxury property development:
Val de Vie founder shares his strategy
Many of the richest people around the world have built – and lost – fortunes in luxury property
development. In South Africa, Martin Venter is the brains behind the hugely successful Val de
Vie Estate, which features distinctive homes set against majestic mountains and offering a
vast array of facilities and leisure activities – from golf to swimming. Venter is a lawyer who
switched to property development to follow his dream career. He spoke to BizNews editor-in-
chief Alec Hogg about some of the lessons he has learnt on how to make, and avoid, losing
money in the real estate arena. In a podcast, the Val de Vie developer shares insights on how
to cater for that elusive top end of the world’s most affluent, offering ideas on branding as well
as the finishing touches, such as facilitating organic produce for residents’ dinner tables. As
was the case for South African hotel legend Sol Kerzner, for Venter business success lies to
a large degree in thinking through the finer details.
One of the questions presented to Martin was: “Why the Cape?”. Martin answered next:
I looked at the property hotspots in South Africa, certain areas in the Joburg region and there
were a few spots in Pretoria East I identified, I looked at spots near Zimbali then obviously the
Cape. I knew what I wanted to do, I had the vision, I had the concept. I ran quite a number of
feasibility studies to try and carve out something because as we all know, the important thing
is to bring your dreams practically into reality. It doesn’t help if you’ve got a dream and you try
and live out the dream and there’s no economic or financial feasibility involved. So, I had the
concept and tried to find the right properties to buy and that was my biggest challenge in those
days.
(Source: Hogg, 2020).

9.1. Explain why Martin can be seen as a successful entrepreneur.
9.2 Identify how Martin entered the business world.
9.3 Discuss how Martin did a feasibility study before investing in his dream.
9.7 Summary
This unit focused on the entrepreneur and the entrepreneurial process of identifying and creating an opportunity
to start a new business from scratch and turning it into a successful venture or to identify a new way of doing things
in an existing business. The entrepreneurial process starts with a person deciding to become an entrepreneur and
to enter the business world. This person must have the necessary entrepreneurial abilities and skills and must
know how to acquire resources. The entrepreneur then identifies an idea or recognise and opportunity within the
market environment and must then determine if this idea or opportunity will be successful by doing a feasibility
study. If the idea seems feasible then the entrepreneur can start to develop his business plan and proceed with
implementation.
9.1 A good idea will always be a good investment.
9.2 Operating resources are resources in the form of cash, bank overdraft, loans or
investment capital.
9.3 Buying an existing business is a good idea if the business has the potential to grow.
9.4 Strategy skills involves the ability to predict the future and the potential impacts there
might be on the business and its resources.
9.5 Entrepreneurs bring about change, growth and wealth in the economy.

9.1 Discuss the concept of entrepreneurship.
9.2 Describe the roles of the entrepreneur in the economy.
9.3 Explain the skills and resources required to become an entrepreneur.
9.4 Identify and describe the different ways of entering the business world.
9.5 Examine what a feasibility study is and state the importance thereof for an
entrepreneur.
Video activity
This is open for interpretation. Suggested answer: A feasibility study will determines whether your business idea
will work or not.
Think point
Activity 9.1
9.1 This is open for interpretation. Student to provide own opinion on the question provided
9.2 The identified individual might be:
 creative with the ability to produce new ideas to solve problems;
 innovative when using new ideas to develop a new product, service, process or technique;
 identifying opportunities that are created by the needs to people and changes in the environment;
 finding resources, such as financial resources, human resources and natural resources, to peruse
opportunities;
 taking financial risks of potential loss or failure of the business they start;
 bringing about change, growth and wealth in the economy;
 re-energising economies and create jobs; and
 establishing and growing sustainable small businesses.

Case study
9.1 Because he is a creative person, who is highly motivated for achievement, is willing to take calculated
risks and use a challenge as a new opportunity
9.2 He identified a new venture opportunity
9.3 “I looked at the property hotspots in South Africa, certain areas in the Joburg region and there were a few
spots in Pretoria East I identified, I looked at spots near Zimbali then obviously the Cape. I knew what I
wanted to do, I had the vision, I had the concept. I ran quite a number of feasibility studies to try and carve
out something because as we all know, the important thing is to bring your dreams practically into reality.
It doesn’t help if you’ve got a dream and you try and live out the dream and there’s no economic or
financial feasibility involved. So, I had the concept and tried to find the right properties to buy and that
was my biggest challenge in those days.”
Knowledge checks
9.1 False
9.2 False
9.3 True
9.4 False
9.5 True

Answers to Revision Questions
Unit 1 Answers to Revision questions
1.1 Planning can then be defined as the activity of establishing the vision, mission, goals and objectives of the
organisation (Du Plessis, 2016:38).
1.2 The following six advantages of planning are highlighted by Du Plessis (2016:40) as the most important:
 Planning forces managers to look forward and expect change. Planning forces managers to consider any
possible changes (opportunities or threats to the organisation) in the environment that might happen in
the future and then to formulate strategies to prepare for these changes. The organisation will be more
prepared as proper planning will reduce the impact of these changes on the organisation and the
associated risks that occur with change. It can also be noted that planning then guides decision-making
within the organisation.
 Planning creates a collaborative effort among all employees. Planning provides direction to all employees
in an organisation because everyone then knows where the organisation is headed. This ensures
collaborative effort among managerial and non-managerial employees towards attaining the same goals.
All employees (managerial and non-managerial) within different departments work together (in a team or
individually) in the coordination of activities as they know what are expected of them to achieve these
goals and objectives.
 Planning is a critical tool for monitoring progress. Planning creates the foundation of control as it includes
the formulation of goals and objectives. In other words, it is the controlling function to monitor and
determine if goals and objectives have been met. Progress can be monitored by comparing the actual
results with the planned goals and objectives. If the actual results are different from the planned results,
the necessary steps must be taken to correct them.
 Planning ensures the correct distribution of resources. Planning ensures that managers think in advance
the resource needs of the organisation and to allocate these resources effectively so that the set goals
and objectives can be met. Planning thus increases productivity and eliminates unnecessary use of
resources.
 Planning assists the modern organisation. Today’s organisations make use of part-time and contract
workers. Planning then allows these employees to align their work activities with the organisation’s goals
and objectives.
 Planning motivates creative and innovative thinking. The process of planning allows managers to think
creatively and introduce new and innovative ways of doing things in the organisation. Planning stimulates
creative and innovative ideas to use opportunities in the best way possible and to minimise the impact of
threats.

1.3 Strategic planning has the following key characteristics (Du Plessis, 2016:41, 48):
 Strategic planning outlines the overall goals of the organisation.
 Strategic plans are formulated by top-level management.
 The entire organisation is the focus area for strategic plans.
 The time frame for strategic plans are long term (3-5 years or 5+ years)
Tactical planning has the following key characteristics (Du Plessis, 2016:41, 47-48):
 Tactical plans are developed to formulate goals to meet the needs of the strategic plans.
 Tactical plans are formulated by middle-level management.
 Tactical plans focus on the functional areas of the organisation.
 The time frame for tactical plans are intermediate (1-3 years).
Operational planning has the following key characteristics (Du Plessis, 2016:41, 48):
 Operational plans are developed to formulate and outline activities on a day-to-day basis that will fit the
overall goals and objectives of the organisation.
 Operational plans are formulated by lower-level (first line) management.
 The focus area of operational plans is the day-to-day, week-to-week and month-to-month functioning of
the organisation.
 The time frame for operational plans are short term (less than a year).
1.4 There are two approaches that can be followed to formulate goals in organisations. These are identified by
Du Plessis (2016:50) as the following:
 The traditional approach to goal setting. In the traditional approach the formulation of goals is controlled
by top management. Meaning that the formulation of goals is centralised. This approach assumes that
top managers know what is best for the entire organisation. As goals are formulated at top level and then
the information flows down to the entire organisation and each functional area, each employee then knows
what is expected of him or her to contribute to the achievement of the overall goals of the organisation.
Managers must then constantly monitor and evaluate departments and individual employees to ensure
achievement of the organisation’s goals.
 Management by objectives (MBO) approach to goal setting. By following the management by objectives
approach, goal formulation is guided by each employee on an individual basis. In other words, the
formulation of goals is decentralised. This means that goals are not controlled by top management and
then enforced down the organisation. Goals are used to motivate employees and not just to ensure that
employees are doing their jobs. This approach allows that the overall objectives are converted into specific
objectives for different departments and individual employees. Department and employee performance
are then measured based on individual goals that is aligned with the overall goals of the organisation. If
all individual goals of employees and departments are achieved, then ultimately the goals for the

organisation will be achieved. The focus of this approach is to allow employees to accomplish the goals
they have had a hand in setting. Employees are then generally more productive and therefore an overall
improvement in productivity of the organisation.
1.5 The main barriers to successful planning are identified by Du Plessis (2016:51-52) as the following:
 Planning requires accurate information. Accurate information with regards to the current and future state
of the organisation is needed to create successful plans and to aid in decision making. Accurate
information is required to make informed decisions on the allocation of resources within the organisation
in order to achieve the set goals and objectives.
 Planning is an expensive and time-consuming process. Planning is an ongoing project and not once-off.
By collecting accurate information, and then formulating different scenarios based on the information
collected, takes time. Costs are associated with planning due to its ongoing nature and continues
collection and analysis of accurate information.
 Planning lacks flexibility. Plans must embrace change and adapt to changes within the external
environment. This is especially the case for plans that do not always accommodate and foresee all the
changes that can happen in the external environment.
 Resistance to change. Managers who are reluctant to adapt to ongoing change will not be successful in
planning. It is then important that when managers plan, that they foresee changes that may happen in the
future.
 Poor understanding of goal formulation. Managers who fail to understand the concept and importance of
planning will be unable to plan successfully.
The following guidelines can be followed to overcome barriers to successful planning (Du Plessis, 2016:52-
53):
 Plans should constantly be updated and revised based on accurate information collected from a changing
external environment.
 Planning should start at the top level of management and should set the tone for subsequent planning at
the middle- and lower-management levels. This will establish a proper climate for planning for the entire
organisation.
 The plans that are developed at the top level of organisations should be properly communicated to all the
other levels in the organisation. This includes communication to all employees of how all the plans are
connected.
 Managers should be aware of all the barriers to successful planning and must accept that plans must
undergo continual adjustments and compromises.
 Contingency planning provides alternative courses of action in case where an intended plan is
unexpectedly interrupted or no longer appropriate.

2.1 Tourists are faced with making decisions around a range of issues. They need to decide where to travel to,
how to travel, who to travel with, what the travel budget is, and many other issues to decide on (Hermann,
2016a:58). The primary decision for tourists is the decision to travel. The decision to travel is influenced by
the tourist’s motivation to travel (see Figure 2.1). Tourists are firstly influenced by indirect influencers from
the external environment such as the political, social, economic or technological environment. This external
environment influences a tourist’s needs and desires. For example, the potential tourist may have received
a performance bonus, his best friend living in a different country is getting married, or he would like to take
a break from a stressful work environment. In other words, a tourist’s need to travel may be stimulated by
health, stress and money. These needs and desires create a motivation to travel, for example, to escape,
to spend time with family and friends, to learn, etc. (Hermann, 2016a:59). This motivation, or desire to do
something, can also be influenced directly by past experiences, perception and image of service providers
and destinations. Tourists will be more attracted to service providers and destinations with a good image
than those with a poor image. Tourists will evaluate all travel alternatives and will make a decision based
on cost, convenience, quality, value for money and any other benefits it may have. The tourist will then
make a choice based on their evaluation that best suit their needs and are most appealing to them. The
tourist will purchase the service and experience the service by physically travelling and utilising the service
that was purchased. If the purchased service meets or exceeds the expectations of the tourist, he will be
satisfied with the service and most probably purchase it again or will purchase a similar service. If the
purchased service does not meet the expectations of the tourist, the tourist will be dissatisfied and will
probably not purchase the service again (Hermann, 2016a:59).
1.2 Managers at tourism and hospitality organisations must also make decisions. A decision can be defined as
the action by managers when making choices (Hermann, 2016a:60). Decision making is done on all levels
of service delivery within the organisation, from lower level up to top level management (Hermann,
2016a:60). Decision making follows a seven-step process (Hermann, 2016a:60-62).
STEP 1 Identify and diagnose the problem
Managers must firstly determine exactly what the problem is that needs to be solved and consult with
relevant stakeholders to ensure that the decision is based on the correct information about the problem. A
problem can be defined as a question that requires answering or something that requires a solution. A
problem should also be diagnosed, which means that managers must not identify the problem but also
determine the possible positive and negative causes of the problem.

STEP 2 Set goals and decision criteria
The next step is to set goals to solve the problem that was identified and diagnosed. The way in which the
problem is solved is determined by the different aspects of decision criteria which should be specific,
measurable, achievable, reliable, timeous.
STEP 3 Search for solutions
After goals have been set and decision criteria have been determined, mangers must find possible ways of
solving the problem. A solution is the answer to a problem which requires creativity and innovation from
managers. Creativity and innovation will be discussed later in this unit.
STEP 4 Compare and evaluate alternative solutions
Possible solutions must be evaluated based on the goals that was set to resolve the problem identified.
Solutions are also assessed based on the costs and benefits to the tourism organisation or hospitality
establishment.
STEP 5 Choose among alternative solutions
The solution with the highest probability to solve the problem with the greatest benefits compared to the
costs is selected. It is sometimes difficult to choose among the solutions as the problem to solve might be
unclear or information to resolve the problem is not readily available.
STEP 6 Implement the solution
Once a solution is selected it should be implemented by tourism and hospitality managers.
STEP 7 Follow up and evaluate
Mangers should be able to select a different solution from the alternatives identified in the previous step
when the implemented solution does not provide the required results. If the expected results is achieved the
solution can be used again. Evaluation is a continuous process within the organisation to ensure that future
decisions are made accordingly.
2.3 Managers within the tourism and hospitality industry have to make regular decisions under three main
conditions namely: certainty, risk and uncertainty (Hermann, 2016a:63-65).
 Certainty
When the problem and solution is clear, decisions are made with certainty. This is then most ideal condition
to make decisions as managers understand the information to solve the problem. The more the same
problem occurs it becomes easier to make the decision with certainty. Within this condition managers can
look back and reflect on the decision made.

 Risk
When there is evidence of a potential risk such as, not understanding the information to solve the problem,
it makes decision making more challenging. It can also mean that managers might have all the information
available to solve the problem but do not know the outcomes of the results.
 Uncertainty
Uncertainty is when managers have to make a decision where the problem is not clear or where there is no
information available to resolve the problem. There may be a high probability that the decision made will not
render the results the management team wants to achieve. This is the most difficulty condition in which
managers have to make decisions based on a problem that has never occurred before.
2.1 The decision-making conditions have generated three broad categories of decisions, namely routine
decisions, adaptive decisions and innovative decisions (Hermann, 2016a:65-67).
 Routine decisions
Within the certainty decision-making condition lie routine decisions. A routine decision is made relatively
easy because managers must make these decisions often. It is easy for managers to make routine decisions
because the problem is usually well-defined, or the solution is easy to determine.
 Adaptive decisions
It is important that managers review their original decisions. Sometimes this can lead to a routine decision
being changed or improved. When a routine decision is changed or modified, it is called an adaptive
decision. An adaptive decision is not made on a regular basis and involves some form of risk. When an
original decision is changed, it should create improved results when the adaptive decision is made next
time.
 Innovative decisions
When problems are very vague or when little information is available to solve the problem, innovative
decisions need to be made by managers. It takes longer to make a decision as the problem to solve is
unique and never happened before. Innovative decisions are made with high levels of creativity to solve the
problem (innovation and creativity is discussed in the next section).

2.2 In some cases, it is easy to make decisions because the information is readily available, or the problem is
easy to solve. In other cases, the problem may not be so easy to solve because information may be
outdated, or it is a unique situation. When decision making is not easy, managers need to be creative to
solve the problem. Creativity can be defined as the process of creating new ideas, forms, methods or
interpretations. It needs a lot of thinking that is time and energy consuming, but the results are innovative.
Innovation is then the result of the creativity process and occurs when something new or different is created.
Managers of tourism and hospitality organisations must possess creative traits and strive for innovation to
be able to make difficult decisions in an ever-changing environment (Hermann, 2016a:67).
Herewith some elements in order to promote creativity in a tourism and hospitality organisation (Hermann,
2016a:67):
 Managers should take on a supportive leadership style, meaning, they need to be participative and
democratic when it comes to decision making.
 Managers should offer employees discretion and autonomy.
 The organisational structure should be a flat structure with no perceivable boundaries.
 The organisational culture should be supportive of risk taking, open to new ideas and encourage non-
traditional thinking.
 Managers should be flexible and be able to share and work around thoughts and ideas.
 Managers and employees should be skilled in creative techniques.
 Managers should understand and value employee creativity.
3.1 Leadership directs employees to achieve the required results within a tourism and hospitality organisation.
It can therefore be defined as a process in which individuals are guided, inspired, and influenced by their
managers in order to achieve organisational goals (De Witt, 2016a:125).
3.2
 Authority
Authority is the position that the individual holds within the organisation. A manager has the right to give
instructions to employees because s/he is in a position of authority. A manager may also discipline
employees who fail to action instructions given to them based on their authority. Leaders will give
instructions and also show the manner in which the instruction should be carried out. As compared to
managers that might only give an instruction without considering that additional guidance is required.

 Power
Leaders possess the power to influence others because of their knowledge, experience and personalities.
Leaders can also affect the values, attitudes and behaviour or others. There are various types of powers
such as coercive power (to influence others through fear), reward power (to influence others based on
the mangers authority to grant or deny rewards), legitimate power (refers to the manager’s position in the
chain of command in the organisation), referent power (a leader who is liked and respected and where
individuals can identify with), and expert power (refers to a leaders expertise, knowledge and skills).
 Influence
Influencing is defined as the process leaders follow when communicating ideas, gaining acceptance of
them and inspiring followers to support and implement ideas through change. Before leaders can
influence, they must know what motivates others and provide a conducive working environment. Leaders
with a positive energy and enthusiasm are more likely to influence others.
 Delegation
Delegation is the process of assigning responsibility and authority for achieving organisational goals.
When leaders delegate tasks managers can focus on the strengths of employees that allows employees
to grow and become more productive. Sharing of responsibilities will develop new skills for employees
and keep employees interested and enthusiastic about their job.
 Responsibility and accountability
Responsibility means that an individual has the duty to perform and make decisions. Accountability means
that individuals are liable for the outcomes of their actions. Leaders should then take responsibility and
accountability for the successes and failures of the team they are managing. It is then important that
managers motivate employees to improve their skills to ensure desired outcomes are reached.
3.3
 Trait theory
The trait approach looks at individual characteristics such as stable personality attributes and traits to
differentiate leaders from non-leaders. After much research it was concluded that no single trait or
combination on traits clearly and consistently differentiate leaders from non-leaders. Nonetheless,
researchers are attempting to identify a set of traits in order to characterise someone as a leader. There
are many characteristics that promote effective leadership some of these include intelligence, self-
confidence, determination, integrity, diligence, honesty, sociability, and task knowledge. Tourism and
hospitality organisations can benefit from this theory as it identifies leadership components for effective
management. Tourism and hospitality organisations can also identify traits and characteristics of
leadership to a specific position.

 Behavioural theory
This theory assumes that successful leaders have different behaviour from unsuccessful leaders.
Behavioural theory can then also be a style theory as it focuses exclusively on what leaders do and how
they act. The behavioural theory distinguishes between two types of behaviour namely: relationship
behaviours and task behaviours. Relationship-oriented approach focuses on a person’s feelings, beliefs
and attitudes. The task-oriented approach focuses on the objectives that needs to be achieved and work
that needs to be done in order to achieve the set objectives. The goal of the behavioural theory is to see
how leaders can combine the two kinds of behaviours to influence individuals. Different studies have been
conducted to investigate the behavioural theory approach which includes Theories X and Y, Ohio State
University studies, The University of Michigan studies, and Blake and Mouton’s Managerial Grid Model
(De Witt, 2016a:131-133).
 Theories X and Y
Theory X is where a leader assumes that individuals are lazy, lacks ambition and does not like change
and wants to be given instructions this leader will take on the autocratic management approach. Theory
Y is where a leader assumes that individuals wants to be challenge and accept responsibility. This leader
will take on a more supportive management approach.
 Ohio State University and the University of Michigan Model
Ohio State University distributed a questionnaire called the Leader Behaviour Description questionnaire
which measures a series of possible leadership behaviours in variety of settings. Two types of leadership
behaviours stood out that are different and independent from each other. These two behavioural types
are initiating structure (has to do with task behaviours for example planning and organising) and
consideration (has to do with relationship behaviours for example respect, trust, support and concern for
employees). The University of Michigan conducted a study on group productivity to assess affective
leadership behaviours. The outcomes were similar to the consideration and initiating structure behaviours
identified by Ohio State University studies. However, these leadership behaviours were labelled differently
as production orientation and employee orientation.
 Blake and Mouton’s Managerial Grid Model

The managerial grid leadership behavioural model is often used in leadership training. This model
identifies different leadership styles on a two-dimensional grid. The vertical axis characterises the leader/
manager’s concern for people and the horizontal axis characterises the leader/ manager’s concern for
production. Five main leadership styles are revealed using this model namely: (1) Country club manager
(has a high concern for people but low concern for production; (2) Authoritarian manager (high concern
for production and low concern for people); (3) Middle of the road manager (keeps a balance between

completing goals and the needs of workers); (4) Team manager (leads by positive example and foster a
team that can reach their highest potential); and (5) Impoverished manager (low concern for both people
and production).
 Contingency or Situational theory

The leadership contingency theory is based on leaders/ member relations, task structure, and the
potential power of the leader to determine their effectiveness of the type of leadership style exercised.
Three types of contingency approaches can be found.
 Fiedler’s contingency approach

Fiedler’s contingency approach states that no single leadership style is best under all circumstances and
that leadership effectiveness depends on how well the leaders style fit the context. These leadership
styles can be task motived or relationship motivated. Work situations can be classified in terms of three
variables namely:
• Leader/ member relations (leader’s personal relations with group members).
• Task structure (degree of structure in the task that the group has been asked to perform).
• Positional power (the extent to which a leader has legitimate, coercive and reward power).
These three variables determine how favourable various situations in an organisation are for a leader. If
the leader has a powerful position and is well liked, the situation is most favourable for the leader to
influence the group in their task. If the leader has weak positional power, is disliked, and where tasks are
unstructured, the situation to influence others is unfavourable. This suggests that certain leadership styles
are effective in certain situations.
 Hersey and Blanchard

Hersey and Blanchard categorise four different types of leadership behaviour based on combining task
(directive) and relationship (supportive) behaviours. These are namely:
• Telling (the leader tells the employees what, when and how to do tasks but spend limited time
on emotional support – high directive, low support)
• Selling (the leader focuses on goal achievement and emotional support – high directive, high
support).
• Participating (decision making is shared between leader and subordinates – low directive, high
support).
• Delegating (the leader does not involved subordinates in planning and control and offers little
social support – low directive, low support).

 Vroom-Jetten-Jago leader-participation model

This model is both a decision-making model and a theory of leadership as it provides rules for participative
decision making in different situations. This model identifies five leadership styles that can be described
as:
• Autocratic leader i (decisions are made without the input from others).
• Autocratic leader ii (decisions are made after information is obtained from others).
• Consultative leader i (decision is made after consulting with others individually).
• Consultative leader ii (decision is being made after consultation with members of a group).
• Group-based leader (the leader and members make a group decision).
This model also suggests that behaviour should be flexible and that leadership styles should be different
as it depends on the situation.
3.4 Tourism and hospitality organisation need to develop the leadership abilities of their employees. This will
ensure that employees are empowered to be leaders and managers in the organisation in the future.
3.5
 Learning on the job
Prepare employees for management positions a method called job rotation is used. An employee will be
moved to a different job as soon as the required job skills and expertise have been obtained. Another
method used for on the job training is action learning. Action learning is a facilitated process of learning
in real time using real problems to improve personal professional and team competence. Action learning
develops competence in real business problems such as problem solving, working effectively in teams,
facilitating change, and building strategies for personal growth.
 Formal assessment and training

This is a training type programme where employees receive a formal qualification. This training can be
done internally (on the job training) or externally (at a training institution). Training institutions offer courses
to improve leadership skills such as coaching, interviewing, and team building. Tourism and hospitality
organisations might choose to pay for these formal training programmes if completed externally by the
employee.
 Coaching and mentoring

This approach is followed by tourism and hospitality organisations to mentor/ coach new or junior
employees. A relationship is established between the experienced employee (the housekeeping
manager) and the inexperienced employee (the housekeeping attendant). The mentor will provide
continuous support and guidance to the mentee. This can be both in a professional and personal capacity.
The roles of mentors and mentees must be fully understood. The roles of a mentor is to advise, council,

encourage, to be a subject matter expert, be a friend/ guardian/ leader/ motivator/ role-model, and to be
a knowledge developer. The role of the mentee is to understand own needs, goals and interests, take
responsibility for learning, to be a portfolio builder, an action taker, and an evaluator.
4.1 According to Kokt (2016a:75) organising can be defined as the process of delegating and coordinating
tasks and resources to achieve organisational objectives. It also refers to the grouping of activities and
resources into functional units within the tourism and hospitality organisation.
4.2 A combination of the organisational elements used to structure the organisation.
4.3
 Formalisation: Refers to the extent to which procedures policies and manuals are used.
 Specialisation: Is the extent to which specific functions are performed by specific individuals or
departments.
 Standardisation: Refers to the extent to which activities are performed in a uniform manner.
 Coordination: It means that all departments and individuals are working together to reach the
goals of the organisation.
 Unity of command: Means that each employee should report to a single manger or supervisor.
 Unity of direction: Means that all activities should be directed to reaching the same organisational
goals.
 Chain of command: Means that a clear line of authority can be observed throughout the
organisation.
 Span of control: Refers to the number of employees reporting to a manager.
 Division of work: Refers to the specialised jobs and functions of individuals or groups under a
single manager or supervisor.
 Authority: Refers to the right to make decisions and issue orders.
 Responsibility: Refers to the obligation to perform required activities in order to reach
organisational objectives.
 Accountability: Where managers must report and justify work results to those they report to.
 Flexibility: Means that there are always exceptions to rules.
 Power: Refers to the extent to which a person can respond to others.
 Downsizing: Refers to the managerial activity that reduces the size of an organisation’s
workforce.
 Delayering: Implies that the number of layers in the vertical managerial hierarchy are reduced.

4.4 Departmentalisation is the grouping of activities within an organisation into separate units. Tourism and
hospitality organisations can create units or departments to assist in organising and structuring the duties
that needs to be performed in order to achieve the organisations goals.
4.5 Delegation can be defined as the process of assigning managerial authority to managers and employees
lower down in the organisational hierarchy.
4.6 Delegation allows lower level managers and employees to gain experience in certain duties within the
organisation. When tasks are delegated these individuals develop better organizing and decision-making
skills which will equip them to fill higher positions in the future. When a task is delegated it means that the
decision-making authority is also transferred the particular individual. However, the manager still remains
responsible and accountable for actions taken (Kokt, 2016a:82-83).
5.1 Tourism and hospitality organisation must change and adapt to new challenges to due the global marketplace
and rapid globalisation in order to remain sustainable and profitable. Organisational change is complex
especially when people have a natural inclination to resist change. Organisations must prepare properly for
change by creating new visions and prospects for employees to energise them for the change process.
Employees must be informed of the worth of doing things in a new or better way and must be assisted in
seeing that the change will bring benefit to the organisation. Employees must be motivated in making or
implementing the actual change. This can be that familiar ways doing tasks will change to make room for new
routines and practices. Managers must guide individuals through the change process. After the change have
been implemented the new practices must become part of the culture of the organisation. Managers must
incorporate the new practices in doing tasks inside the organisation (Kokt, 2016b:88-89).
5.2
 Total Quality Management (TQM)
Total Quality Management is concerned with the implementation of quality and excellence and
implies that for TQM to be fully effective the organisation needs to change.
 Downsizing
Downsizing attempts to improve quality, efficiency and efficacy through making the organisation
smaller and more effective.
 Reengineering
With reengineering the processes and procedures in an organisation are completely redesigned to
improve quality and efficiency within the organisation.

5.3
 Different methods can be used to inform employees of the positive results of doing things differently
(for example information sessions, meetings, discussion forums and storytelling).
 Managers should stimulate self-reflection where employees need to see that the drive towards
excellence should come from them and not from the orders of management.
 Managers must set the example for employees and are thus the drivers of organisational change.
5.4 Organisational culture contributes to the enhancement of the organisation’s key functions and capabilities.
Employees must adopt the culture of the organisation to enable them to perform effectively and efficiently
towards achieving organisational goals and objectives. The organisational culture affects organisational
commitment and job satisfaction. Organisational culture can then be explained as the distinctive pattern of
shared assumptions, values and norms that shape the socialisation activities, languages, symbols, rituals and
ceremonies of an organisation. New employees must attend induction to understand the ways in which the
organisation functions. In other words, organisational culture will assist employees how to perceive, think, act
and feel as members of the organisation.
5.5
 Knowledge of norms, values and beliefs
Employees must know the norms, values, and symbols that apply to a specific organisation. Norms
represent what people typically do as well as the shared understanding of what they should do. To
consider reasons why people work and why the behave in a specific way one has to consider values.
Values are determinants of attitudes and affect the behaviour of employees in the decisions they make.
In other words, values predict the desired behaviour where norms achieve the desired behaviour.
 Knowledge of the language of an organisation
The knowledge of an organisation communicates its culture. The organisation must first change its
language in order to change the culture of the organisation. Kokt (2016b:94-95) highlights the following
factors that relates to an organisation’s language:
o Jargon: special meanings are assigned to words within the organisational context.
o Shared stories: members of the same cultural group can predict the behaviour of other members.
This can lead to individuals interacting and working together.
o Heroes: Heroes are created because they are admired for the contribution their qualities have
made to the organisation. They are told in stories to make sense of organisational events and
changes.
o Ceremonies and celebrations: These communicate values to organisations. Rituals are activities
acceptable to all members of the organisation may include handing out of presents at Christmas,
celebration at retirement, or the presentation of long service awards.
 Knowledge about the artefacts and symbols of the organisation

These are tangible manifestations of organisational culture. Artefacts includes structures, procedures and
rules that are present in visible features such as timesheets, the wearing of neckties, office décor and
reserved parking spaces. A symbol is an object, act, quality or event that gives meaning or stands for
something within the organisation. Symbols can include the positioning of management and acceptable
forms of behaviour such as delegation, participation and authority.
5.6 Hospitality and tourism organisations require employees to offer customer service 24 hours a day. This can
create job stress and can even cause burn-out. Job stress can be defined as a non-specific response of the
body resulting from a demand placed on it. This response includes a nerve and mental reaction to the physical
demands placed on the individual. The employee can experience job stress if confronted with these responses
repeatedly and frequently. Job stress can also occur when one does not have the available capabilities and
resources to perform the job. Meaning if a person is not qualified to do a certain task, they can experience
levels of job stress due to a lack of knowledge on how to complete the task successfully. There are two types
of job stress identified by Kokt (2016b:95) namely functional and dysfunctional job stress. Stress is functional
if it supports the individual in their own goals. Thus, it ensures that individuals are energised, motivated and
better focused on achieving their goals. Stress is dysfunctional if it prohibits employees from achieving their
goals. It means that individuals do not relax as they feel constantly anxious, frustrated, angry or depressed.
The individual is then not able to perform his/her job adequately.
5.7
 Individual causes
There are many individual causes that can make an employee to stress. These individual causes can
include individual, family and work-family conflict. Individual characters can influence the stress which
could either have an increase or decrease in stress levels. These individuals character types include type
A and type B personalities, self-efficacy, and psychological hardiness. Family and work-family conflict
refers to the conflict within an individual’s family such as illness or conflict with a spouse. Work-family
conflict occurs when employees are expected to have high levels of performance.
o Type A personalities wants to achieve more in less time. These individuals walk fast, talk fast,
think fast and is task oriented. These individuals are also known to be highly competitive, work
under constant pressure, can be easily frustrated and do not know how to relax.
o Type B personalities are less competitive and concerned about time, more patient, more
relaxed, lower sense of urgency, and hence do not display hostility easily.
o Self-efficacy is people’s self-perception of their control over an action and their perception of
their capacity to do an assigned task. Self-efficacy plays a role in handling job stress. Individuals
with high self-efficacy will remain calm and in control of their job stress levels or in a stressful
situation.

o Psychological hardiness refers to how well an individual can deal with challenges. Individuals
can be seen as being hardy when they can cope well under extreme stressful situations.
 Organisational causes
Organisational causes of job stress are unique to an organisation and reside in the challenges presented
to the individual working in a particular organisational environment. The following factors can cause
organisational job stress:
o Task demand and workload: Refers to the specific job of the individual such as occupation and
size of workload. Workload can be overload or underload. Work overload is when an individual
has too much work to do, whereas work underload is when the job demands are less, and skills
of the individual is not being fully optimised which can lead to boredom and lack of motivation.
o Physical demands: These demands refer to working conditions which includes the physical
surroundings (such as noise, humidity, lighting, smells, and temperature) and design of
workplace. For example, excessive noise and heat could lead to job stress especially if it is a
small office with no windows.
o Role demands: The role demands refer to the roles the individual has within the organisation.
Employees will experience low job stress if they know exactly what is expected of them and how
to do their responsibilities.
o Role conflicts: Individuals can experience job stress when they do not know what the expected
of their co-workers and their responsibilities with the job.
o Role ambiguity: Means that an individual that has a poor job description or does not receive clear
instructions can experience high stress levels.
o A lack of cohesion: An employee can experience high stress levels when s/he does not feel a
sense of togetherness inside the organisation. If there are support from managers, they will feel
that they are valued.
o A lack of social support: If individuals does not receive support from co-workers, they might
experience high job stress levels. Lack of social support can lead to lower self-esteem,
decreased motivation and increased employee turn-over.
5.8
 Tourism and hospitality organisations should monitor an individual’s diets and drinking habits as a
healthy diet and regular exercise can assist employees with managing job stress.
 The organisations should implement anti-stress techniques such as relaxation, exercise, and time
management.
 The organisation should assist individuals to cope with their personal problems. This will in turn assist
individuals to better cope with job related problems.
 The organisation should create a support network where individuals can share their feelings and
emotions.

 The organisation can encourage employees to look out for symptoms and effects of job stress which
could aid in reducing family related stress.
 The organisation should make counselling available to individuals that were exposed to high stress
situations such as high-jackings, shootings, robberies and other traumatic events.
6.1 Diversity can be defined as the mosaic of people who bring a variety of backgrounds styles, perspectives,
values and beliefs as assets to the groups and organisations with which they interact. When diversity can be
described as the mosaic it provides a perspective which encourage members of tourism and hospitality
organisations to keep their individuality but also contributing collectively towards achieving a common goal.
This definition also implies that diversity includes everyone in the organisation which prevents discrimination.
All people are different, but these differences should be respected and accepted. Diversity does not only look
at differences but also similarities. These differences and similarities can be highly visible (such as age, race
and gender) but can also be less visible (such as values, personalities and religion). Diversity can be seen as
an attractive feature to tourism and hospitality organisation as people get to understand one another (Du
Plessis, 2016b:104).
6.2
 Generating fresh ideas: New and innovative ideas can come from hiring employees from a variety of
diverse backgrounds. Organisations find themselves in a global market with tourists from various
nationalities, races and religious where collective knowledge and experiences are gained.
 Improving firm growth: Tourism and hospitality organisations that correctly manages diversity can
provide opportunities to increase organisational effectiveness, productivity, maximising individual
talents and promoting innovation.
 Enhancing firm image: When diversity is not managed successfully it could have a negative effect on
the diverse consumers with buying power. Managing diversity successfully will create a favourable
image that attracts customers, investors and employees.
 Hiring valuable human resources: the way how tourism and hospitality organisations recruit
employees, train them, manage them, reward them and support them in their career development
will determine the successful delivery of tourism and hospitality services. Hiring human resources
that represents diversity based on skills will ensure that the organisation recruit the best talent
possible, despite the differences and similarities.

6.3
 Resistance paradigm
The resistance paradigm is characterised by actions of avoidance are denial, rebelliousness or
manipulation of staff statistics where difference among staff are regarded as a threat rather than an
opportunity. This paradigm still exists in organisations that are afraid to adapt and change into a diverse
workforce.
 Discrimination and fairness paradigm
This paradigm focusses on equal opportunities, recruitment and treatment, and legal compliance of
employees against the South African Employment Equity Act. The focus of the organisation is then put
more on disadvantaged groups and not on the organisation as whole. It also encourages employees to
view each other as equal and not to recognise any differences. A disadvantage can be that the company’s
workforce is primarily based on legal decisions rather the qualifications of the individuals which can lead
to unqualified employees in the organisation. Some employees can view these legal decisions (such as
affirmative action) as an obstruction and might feel that their managers treat others unfair to meet
employment equity quotas as set out by the Department of Labour. The differences are what often causes
the problems within this paradigm.
 Access and legitimacy paradigm
This paradigm define diversity in such a way that it supports and encourages differences such as
nationalities, values, ages, and culture throughout the work force whether it is legally required or not. This
paradigm celebrates and affirms differences in employees and is focused on managing diversity
voluntarily to increase customer share in the market. Employees might feel that they are being “abused”
or experience a feeling of exploitation if companies market their equity status in order to increase market
share. The differences are what creates opportunities within this paradigm.
 Learning and effectiveness paradigm
This paradigm aims to stimulate new thoughts on services, strategies, goals and objectives and
organisational culture. It also motivates tourism and hospitality organisations to accept differences among
employees so that the organisation can learn and grow. This paradigm promotes equal opportunities for
all individuals and aspires innovation, customer satisfaction and corporate social responsibility. The
differences and similarities offer opportunities within this paradigm.

5.1
 STEP 1: Commitment from top management
Top management should set an example when valuing diversity. They must demonstrate personal
commitment to include diversity initiatives in the planning and implementation within organisations.
 STEP 2: Establish a diversity leadership team to guide the diversity initiative
The organisations should establish a diversity leadership team which consists of employees from different
departments, different levels of management and different demographics. This team should communicate
and demonstrate the role/ benefits of diversity to the rest of the employees.
 STEP 3: Conduct and assessment of the organisational climate
The leadership team must investigate diversity issues within the organisation. The results should be
communicated to the entire organisation to increase awareness of the benefits of diversity and to reduce
resistance towards diversity.
 STEP 4: Craft a vision that values diversity
The organisation must develop a vision on diversity and state why it is important for the organisation.
 STEP 5: Develop and implement a strategic plan for valuing diversity
In order to value diversity, the organisation must develop objectives and plans to overcome the diversity
issues raised in step 3. Policies should be amended to be aligned with the diversity mission and vision.
Employees must be trained to transfer knowledge diversity skills to others
7.1 Managers, as effective leaders, must understand the attitudes and values of employees towards their job. The
working environment within tourism and hospitality organisations must encourage employees to provide high
quality customer service, to improve customer satisfaction and profits. They must also focus on the perceived
internal service quality for employees as high performing tourism and hospitality organisations are
characterised by satisfied employees. Satisfied employees will be more productive and will provide better
quality service. When quality service is provided customers receive value for money which can increase
customer loyalty and in return have a positive effect on the organisation’s profitability. Individual employees
must be constantly motivated to improve effectiveness within the organisation. This can be done in the
following ways:
 Encourage employee participation and commitment.
 To deliver quality service at every level and every encounter as customers will evaluate their experiences
based on the results from the one-on-one service encounters when they visit.
 Developing and expanding employee commitment, capacity and innovation.
 Creating a workplace environment where everyone is motivated to excel and is also accountable for the
organisation’s success.

7.2
 Personal values
Values relate to what an individual perceives as right, good and desirable. Employee satisfaction will be
higher when their values fit well with the organisation. There are different types of values that can assist
managers to characterise potential employees and to determine if their values fit with those of the
organisation. These types of values include:
Conformists: low tolerance of uncertainty and they desire the acceptance of others.
 Trialist: high dependence strongly influenced by tradition and authority by those in power.
 Egocentric: individualistic, selfish, and respond mainly to those in power.
 Manipulative: strive to achieve status and recognition by manipulating others.
 Socio-centric: they want to get along with and be linked by co-workers.
 Existential: high tolerance of ambiguity and people with differing values, open-minded and have
a dislike for inflexible systems.
 Attitudes
Attitudes are the favourable or unfavourable statements through which people express their feelings about
other people, objects or situations. People form attitudes for example about salaries, working conditions,
supervisors etc. Job satisfaction and organisational commitment are two essential work-related attitudes
that can affect an individual’s organisational behaviour. The level of the individuals’ job satisfaction will
be influenced by aspects such as needs and aspirations, working conditions, remuneration and
relationships with co-workers. Organisational commitment refers to the individual’s connection with the
organisation. A person will be highly committed if he feels satisfied and part of the organisation.
 Personalities
Personality refers to psychological characteristics that distinguishes individuals from one another.
Managers must understand personality characteristics and how these characteristics can influence
organisational behaviour. De Witt (2016b:146-147) describes the following personality characteristics:
o Myers-Briggs type indicators: this indicator is a self-reported psychological preference
framework that differentiate people in terms of four scales namely: (1) extroversion vs.
introversion (refers to how we prefer to get our energy – extroverted individuals are energised
by other people, events or things. Introverted people process their thoughts internally before
speaking.); (2) sensing vs. intuition (refers to how we prefer to gather or make sense of
information – sensing types are more logical and factual. Individuals that wants to understand
the world through and intuitive process prefer to live in a world of possibilities and options.); (3)
thinking vs. feeling (refer to how we prefer to make decisions - thinking types will make decisions
based on considering all available information and options. Feeling types will make a decision
based on whether it fits with their personal values.); and (4) judging vs. perceiving (refers to how

we prefer to interact with the outer world – judging types have sound discipline and thrive in an
orderly environment, the feeling types prefer to be spontaneous and have a lifestyle that is not
flexible or adoptable.).
o Locus of control: is the extent to which people believe their behaviour has a real effect on what
happens to them. People who believe that they are in control of their own lives and take
responsibility for their own successes and failures are people with an internal locus of control.
People with an external locus of control think that fate, luck or other people’s behaviour controls
what happens to them.
o Self-efficacy: refers to an individual’s beliefs about his/her capabilities. Confident people have a
high self-efficacy whereas people with a low self-efficacy will doubt their abilities to perform a
task.
o Authoritarianism: is the extent to which an individual perceives power and status differences. An
individual with high authoritarianism will accept orders based on the other persons position. An
individual who is not highly authoritarian will question a person in position of authority and are
more likely to disagree with him/her.
o Machiavellianism: refers to the behaviour that is aimed at gaining power and control over others.
People with a high Machiavellianism tend to influence others. Meaning that people with a low
Machiavellianism are emotionally distant and do not influence others.
o Risk propensity: refers to people’s willingness to take risks. Those with a high-risk propensity will
most likely make more rapid decisions compared to individuals with a low risk propensity.
 Emotional intelligence
Individuals deals with their emotions in different ways. Individuals who manages their emotions effectively
can be seen as emotionally intelligent. People with high emotional intelligence perform better, where a lot
of interpersonal interaction is required. De Witt (2016b:148-149) highlights five dimensions of emotional
intelligence:
o Self-awareness: is about knowing one’s emotions and is the ability to monitor feelings and to
guide one’s own behaviours effectively.
o Managing emotions is an individual’s ability to balance emotions of fear and anger so that it does
not the achievement of goals are not interrupted.
o Motivating oneself is about people’s ability to remain optimistic when they’ve experienced a failure
or setback.
o Empathy: refers to the recognition and understanding of emotions in others without being told.
o Social skills: refer to an individual’s ability to get along with others and establishing favourable
relationships.

7.3 When to or more people come together, they are regarded as a group. When this group share a common goal,
they are regarded as a team
7.4
 Informal teams
These teams are also known as social teams because it exists primarily for socialisation. These teams
form around common interest or friendships in the work environment. Members in informal teams meet
regularly to participate in activities to share feelings and thoughts on mutual problems and developments.
Informal teams built trust between employees and can improve loyalty between the employee and
employer.
 Formal teams
Formal teams are also known as work teams. Work teams are created within an organisation’s formal
structures with assigned responsibilities and tasks to achieve the organisations objectives. Specific tasks
are assigned to each employee within a work team which they are held accountable for. Goals are
achieved with common effort from all members in the team.
7.5
 Function teams (refers to where work is assigned to a specific department that performs a specific function
such as marketing or housekeeping. They all work together to address issues within their area of
expertise)
 Problem solving work teams (consists of team members from different areas within the same department
with a focus on solving problems or how work processes can be improved within the department)
 Multifunctional work teams (known as multi-disciplinary work teams where members of different functional
areas come together to address tasks. Members have diverse interests, expertise knowledge and skills
that contributes together to manage problems and coordinate activities.)
 Self-managing work teams (these teams are responsible and accountable for all aspects of service
delivery and may carry out tasks such as planning and scheduling workflow and tasks. They have a
greater decision-making responsibility. Responsibilities are usually rotated amongst members of the
team.).
7.6 Advantages of working in teams (Hermann, 2016b:158):

 When working in a team more people can contribute towards the achievement of the goal by sharing
ideas.
 Teams provided a supportive environment which motivates people to work harder.
 Synergy is created when team members work together as a team that works together is a strong team.
 Team members learns from other team members when working in a team.

 Teamwork creates and atmosphere of trusts among team members and fosters respectful relationship
and communication between members.
Disadvantages of working in teams (Hermann, 2016b:159):

 When a team consist of too many people with too many diverse ideas there may be no unified vision or
progress.
 Group conflict may result when some members in a team have very strong personalities and think only
their own vies are correct without taking into account the views of others. This may lead to less innovation
and failure to achieve goals.
 Members in a team might feel inferior and unimportant when one or a few people dominates a team which
often creates confit among team members.
 These members may not be motivated to perform well, hence all team members should be given equal
opportunity and representation.
7.7
 Leadership
As discussed in Unit 4, a leader can be considered the person in a team that gives direction and motivates
other team members to achieve goals and objectives. Leaders are thus critical to the success of a work
team. The leadership role must to rotational amongst the team members.
 Roles and responsibilities
Each team member within a work team receives roles and responsibilities that are clearly communicated
to ensure that the teams’ goals and objectives are achieved.
 Norms
Norms can be referred to as the standard behaviour that develops within a group. Formal norms consist
of rules and processes and are used to control measures for the group. For example, team dress codes.
Informal norms may include aspects such as expected attendance at meetings.
 Status
Status is the perceived hierarchy or ranking of one team member relative to other team members. Some
members of the team may have higher positions of responsibility within the group. The level of status of
a member is determined by his/her level of knowledge, aggression and power compared to others in the
group. For example, the front of house manager might have his own office, the hotel general manager
will have an even larger office, but the receptionist will not have an office.
 Diversity
Work teams consisting of people with diverse backgrounds skills and knowledge might be more effective.
Diversity as explained in Unit 6 may include aspects such as race, gender, educational level, experience,
age and creativity. Diverse work teams might address the needs of a diverse market more effectively.

7.8
 Forming
During the forming stage the work team does not yet exist, and members of the team are not yet familiar
with one another. The team’s goals are not yet clear or yet formulate. It is important to have a good leader
in this stage of the development process because members are unsure what to expect. Team leaders
can make use of team building activities to assist members to build a strong relationship between them.
 Storming
During this stage members slowly start becoming familiar with one another. This stage is usually
associated with conflict, disagreements and tension as some members may start to dominate others and
voice their opinions regarding how the team should function. Productivity levels are usually low and the
team leader must usually work in conflict resolution strategies so that the team can reach the next stage
of development.
 Norming
During this stage team members are familiar with other members of the team and conflict is starting to
reduce. Members are starting to work together to achieve the goals of the group and are avoiding conflict
to maintain balance in the group by taking in different viewpoints. During this stage rules, procedures and
boundaries are developed and implemented. The group are now a unified group however productivity is
not yet optimal as members are still growing with regards to relationships.
 Performing
During the performance stage the team is organised and functioning as a cohesive unit. Team members
listen to one another and are able to deal with complex tasks, can provide construct criticism an feedback,
and can deal with conflict. There is a sense of trust amongst the team and are motivated and focused on
achieving the goals of the team. Some work teams remain at this stage for a long period whilst others
only exist until the problem is solved. such as a problem-solving team.
 Adjourning
This is the final step in the group development process as the work-team will break-up when the task is
successfully completed. During this stage activities are finalised, and problems are solved. When a work
team split up, they no longer function as a unit but they can form a team in the future to solve similar
problems or to attend to new issues.
7.9
 Selecting the right people
Managers must ensure that the right people are chosen to fulfil specific roles and responsibilities within a
work team. Managers must select individuals based on their skills, physical abilities, interpersonal skills,
and personality attributes to ensure that they will fit into the group.

 Training
When individuals are selected to be part of a work team, they must be trained to improve skills and be
oriented towards the purpose, goals and objectives of the work team.
 Implementing reward and recognition systems
By implementing a reward and recognition system managers can enhance the attainment of these goals
and objectives. Managers can reward the work team when these goals and objectives are achieved
through bonuses or a paid holiday. Managers can also bring in recognition systems such as employee of
the month, that recognises a specific area of performance within the organisation.
 Building social relationships
Managers of tourism and hospitality organisations must in ensure that work team members know each
other and are comfortable discussion different issues. This leads to mutual trust and the team can function
better as a unit. This can be done through team building activities, or annual breakaway sessions.
 Outline clear roles and responsibilities
Managers must ensure that all members of a work team are aware and understand their specific roles
and responsibilities within a team and that they have the necessary skills to fulfil their roles and
responsibilities. Training may be required if they lack the necessary skills and competencies.
 Identify and solve problems
Work teams must identify and solve current problems but also foresee potential problems that might arise
in the future. It is important that the work teams provide feedback to managers so that proactive measures
can be developed to address these problems. Some of these problems may include education problems,
disputes on how to handle tasks, and personality clashes.
 Conflict resolution
Managers must provide clear instructions to work teams on how to resolve conflict between members.
This will boost teamwork by empowering members to solve their own issues.
 Coordination
Coordination refers to the balance and effective interaction of a number of factors in order to perform a
set of tasks. Coordination will occur when team members work in an orderly fashion and when strengths
and opinions compliment one another. Managers must ensure that the tasks are performed as planned.
 Communication
Communication involves the exchange of information among team members. Effective communication
ensures that all members know what is expected of them. Communication can take place through regular
meetings, telephonic conversations or emails. Employees must be both aware of what is expected of
them but also provide feedback to managers.
 Cohesion
Team members works individually to reach goals but interpedently on a team’s tasks. This means that
team members can influence the work of others in the team. Cohesion refers to the personal attractions

that each team member feels towards the work team. All team members should feel that they are part of
the team and that their contribution is important. Team members must encourage feedback from one
another so that performance can be improved which will benefit the whole team.
8.1 Quality can be defined as the ability of a service to do what it is supposed to do reliably and to satisfy a
customer’s expectations (Du Plessis & Hermann, 2016:221).
8.2
 Quality control focuses on the detection of mistakes by inspections that are made as well as on actual
performance in a process and measures such performance against a set standard. When the actual
performance detracts from the set standard corrective action must take place. The disadvantage of
only using quality control is that the deviation already occurred and has led to negative aspects such
as loss of money and customer dissatisfaction. Quality assurance should then become a priority (Du
Plessis, 2016c:211).
 Quality assurance prevents mistakes and focuses on activities to prevent rather than detect and is a
proactive means of ensuring quality (Du Plessis, 2016c:212).
 Quality management encompasses all the above namely quality control and quality assurance. It
integrates the control and assurance activities into management processes to ensure that quality
standards are achieved (Du Plessis, 2016c:213).
8.3
 Total Quality Management (TQM)
This quality management tool is a collective effort of management and employees within tourism and
hospitality organisations to create effective policies and strategies to deliver high quality services that
will exceed customer satisfaction. TQM is the way of planning for the future as well as a manner in
which employees and processes can be managed to ensure quality service delivery within the
organisation. TQM is built on the understanding and listing of the customers expectation and
feedback when developing plans related to customer service. In order to implement TQM effectively
top management must be committed, the organisation should be customer focus as well as a focus
on continuous improvement through the creation of a quality service culture within the organisation.
The organisation must recruit, select, educate, train and satisfy employees to offer quality service.
The organisation must strive to offer the best standards of service delivery in order to benchmark
itself against competitors. TQM is also concerned with the physical environment of the organisation
for example in order for a hotel to offer quality service they must ensure that the infrastructure, décor,
furniture and any other physical attributes are of a high standard and of good quality.

 Six Sigma
Six Sigma is a management philosophy aiming at setting high objectives and collecting and analysing
data to reduce defects in both services and products. By using this method managers will be able to
determine how to systematically eliminate the defects and get as close to perfection as possible. Six
Sigma is aimed at satisfying customers and ultimately creating customer loyalty to the organisation.
The defects of tourism and hospitality organisational processes are derived through statistical
analyses which is based on facts, data driven and results oriented. These results are used to create
strategies that can be used to improve on the quality of service delivered to customer requirements.
 Kaizen
Kaizen is based on a Japanese word which means change for the better and can be defined as a
contentious effort by all employees to ensure improvement of all systems and processes of an
organisation. Kaizen is based on one principle: change is for the good. Kaizen then focuses on
continuous small improvements in all processes for organisational success. All employees need to
contribute by integrating small changes and improvements in the service system. One small change
every day will lead to continuous improvements of organisational processes that will enhance the
quality service delivery. The Kaizen method provides guidelines for achieving a well-organised
workplace leading to greater productivity and consequently improve quality service delivery. The
Kaizen model is built on 5 Ss namely:
o Seiri (sort out – everything that is not needed should be eliminated).
o Seition (organised – every item in the organisation should have its own place and kept
there).
o Seiso (shine in the workplace – workplaces should be kept neat and clean at all times).
o Seiketso-Seiketso (standardisation – policies should be standardised to ensure excellence
in quality).
o Shitsuke (self-discipline - to stimulate pride and ownership in the organisation, meaning that
employees should always be on time, dress apparently and never speak negatively about
the organisation).
These small improvements will yield immediate results as opposed to TQM and Six Sigma. The
Kaizen method is widely used in tourism and hospitality organisations as it yields positive results.
8.4 Tourism and hospitality outputs is mostly considered to be services. It is therefore important to offer services
of good quality to customers. If customers are not satisfied with the service they receive, they will not return
and might spread negative word-of-mouth. If the organisation cater to the needs of customers and customers
are satisfied with the service, they will feel they receive value for money and might return to the organisation,
leading to customer loyalty.

8.5 Managers must ensure that the following quality dimensions of guest services are met:
o Reliability: Tourism and hospitality managers must deliver consistently on promises and need to
perform the promised service accurately.
o Assurance: The ability of the organization and its employees to inspire trusts and confidence in the
organisation’s service. Service providers that provide assurance tends to achieve higher levels of
service quality.
o Tangibles: It refers to the physical facilities equipment employees and communication materials used
within an organisation. It is then important for service providers to ensure that their physical facilities
are well-maintained, clean and well-presented, because it provides the physical dimension to the
service delivery process.
o Empathy: This refers to the caring and individualised attention that the organisation provides to its
customers. Organisations should see all customers as unique and must understand their individual
needs.
o Responsiveness: Refers to the ability and willingness to assist customers and to provide prompt
services with regards to requests, queries, problems, questions and complaints.
8.6
 Intangibility: Services are deeds, processes and performances and not physical objects which can
be seen, felt, tasted to touched.
 Heterogeneity: Services are provided by people and differ each time these are delivered as the
person delivering these services might not be in the same physical and mental state all the time. All
customers are also different with their own preferences and wants. The service rendered to one
customer might not the same service rendered to the next customer.
 Inseparability of operations: The provision of the service takes place simultaneously with
consumption. Meaning when a service is produced it is immediately consumed.
 Perishability: Services expire at the moment in which they are delivered and cannot be stored. For
example, a hotel cannot increase their profit by selling more rooms than what they have available
8.7
 Monitoring calls and customer contact
Employees and customers in tourism and hospitality organisations must be in contact in order to
deliver service. During this contact period the customers will determine the service level. Managers
must then monitor these interactions. They can do it by recording the customer service calls and
listen to them and complete a checklist regarding service points whilst doing so.
 Customer surveys
A customer survey is a questionnaire distributed to customers are a service is delivered. The
questionnaire can be distributed in the guestrooms, reception area or electronically via email. The

survey can ask the customer how they have experienced the service and could also ask questions
relating to problems, complaints and recommendations on improvements. The survey then gives
customers the chance to give direct feedback regarding the service to the organisation.
 Count customer complaints and complements
Tourism and hospitality organisations must encourage customers to voice their concerns about any
poor or good service experiences. Complaints should be seen by the organisation as areas for
improvement and compliments will identify the strengths of the organisation. Customers can write
complaints and compliments in a customer feedback book or must be able to raise their concerns to
employees of the organisation. Employees must address complaints immediately or escalate to the
supervisor if not in a position to resolve the complaint.
 Speed of consumer complaints resolution
Customer service can be measured in the time it took to resolve the customer problems. For example,
how long did it take to receive a refund or replace the product for the customer. Customers that
receive fast feedback will perceive the service as being good. Employees must then try to solve the
problems directly where possible and should not pass the customer from person to person.
9.1 Entrepreneurship can then be seen as the process of creating and building something of value in the mist of
uncertainty and risk and having the determination of exceeding against all odds (Ladzani, 2019:45).
9.2 The entrepreneur has various roles within a society such as establishing new business ventures and to grow
that business. Businesses driven by entrepreneurs satisfies the needs and wants of customers by producing
much needed products and services through natural and human resources. In this process wealth is created
in society through job creation, and for the entrepreneur in the form of profit. Entrepreneurs are an essential
source for economic growth and social development. Without the creativity, self-efficacy, skills and
expectations of entrepreneurs the production process does not go into action. Meaning, entrepreneurs causes
the production of products and services and setting in motion the creation of employment opportunities
(Ladzani, 2019:51-52).
9.3 Entrepreneurs possess the following skills as identified by Ladzani (2019:59-60):

 Strategy skills: involves the ability to look at the business as a whole and to understand how to deliver
value to its customers that is different than its competitors.
 Planning skills: Involves the ability to predict the future and the potential impacts there might be on
the business and its resources. Actions must be planned to prepare for it.
 Marketing skills: refer to the ability to sell and distribute products and services that satisfy customer
needs and wants.

 Financial skills: involves the ability of entrepreneurs to manage money, for example monitor cashflow,
an assess investments.
 Project management skills: refers to the ability to organise projects to ensure resources are used
effectively at the right place, on the right time, in the right quantity, and the right quality.
 Human relation skills: the ability to deal with people including leadership skills, and communication
skills.
An entrepreneur needs adequate resources to start a business (Ladzani, 2019:60):
 Financial resources are resources in the form of cash, bank overdraft, loans or investment capital. It
can also be basic resources that can be converted into cash.
 Human resources are people with knowledge and skills that contribute to the such organisation. such
as the management team, accountants, and lawyers.
 Operating resources are assets such as offices, vehicles, equipment, buildings and machinery.
9.4
 New venture ideas
The entrepreneur can use trends within the environment to identify new ways in which products or
services can be distributed or offered. This can include economic trends, political trends, and social
trends. The entrepreneur can also look at industries such as the education industry, healthcare
industry, and tourism industry. Other sources of ideas include advertisements, retailers, competitors,
trade shows, industry association and research institutes. A creative person will find useful ideas in
different ways and transform these ideas into opportunities.
 New venture opportunities
A good idea might not always be a good opportunity nor a good investment. For an idea to be a good
investment opportunity the following are required:
o The opportunity must have the potential to grow.
o The opportunity must be able to achieve a sustainable competitive advantage.
o The opportunity must be rewarding to the investor and/or the entrepreneur.
o The timing of the opportunity must be right.
o There must be a clearly defined market need for the product or service.
 Buying an existing business
Ladzani (2019:64) list the following advantages to buying an existing business to enter the business
world:
o Customers will be familiar with the business location.
o There is an established customer base.
o Experienced employees will come with the business.
o Planning can be based on known historical data.

o Supplier relationships will already be in place.

o Inventory and equipment will be in place.
o Financing may be available from the owner.
Ladzani (2019:64) list the following disadvantages of buying a business:
o The business location may be undesirable or threatened with becoming undesirable.
o The image of the business will become difficult to change.
o Employees are inherited rather than chosen.
o There may be difficulties in changing the ways in which the business is managed.
o There may be liabilities for past business contracts.
o Inventory and equipment may be obsolete.
o Financiering costs could drain the cashflow and threaten the survival of the business.
 Franchising
Franchising gives the entrepreneur the opportunity to start the business that has been proven in the
workplace. The entrepreneur then becomes a franchisee that was given rights by the franchisor to operate
the business using the franchise name, products and systems. A franchisee cannot be seen as an
entrepreneur as they cannot experiment, operate and market their businesses on their own vision of how
things should be done. Instead, they must adhere to the rules and regulations of the franchisor.
 Corporate entrepreneurship
Corporate entrepreneurship is also known as intrapreneurship and exist within a business. This happens
when a person or team identifies a new business opportunity, within an existing business. This is done
by using the corporation’s resources and ensures new profits.
9.5 When an entrepreneur has an idea for a business the opportunity must undergo a feasibility analysis. Doing
a feasibility analysis may prevent the entrepreneur from losing valuable resources on an idea or opportunity
that offers little success. A feasibility study is the collection of data that helps forecast whether an idea,
opportunity or venture will survive and will provide the entrepreneur with information on whether or not to
go ahead with the venture. A feasibility study is not the same as a business plan as it only assists the
entrepreneur to gather data and making an informed decision. Depending on the outcome of the feasibility
study, the entrepreneur can commit to implementing the idea. If the idea appears feasible the entrepreneur
can start to decide how to make the idea a reality. At this stage the entrepreneur draws up a business plan.

References
Booysen, J. (2017) First Radisson Red hotel coming to V&A. News article: Cape Argus, Apr 11, 2017. Available
at: . Accessed Apr 24, 2020.
De Witt, L. (2016a) Leading and leadership. In: Hermann, U.P. and Du Plessis, L. (2016) An Introduction to Tourism
and Hospitality Management: A Services Approach. (Chapter 8, p. 123-140). Second Edition. South Africa: Van
Schaik.
De Witt, L. (2016b) Managing individuals in the tourism and hospitality industry. In: Hermann, U.P. and Du Plessis,
L. (2016) An Introduction to Tourism and Hospitality Management: A Services Approach. (Chapter 9, p. 141-150).
Second Edition. South Africa: Van Schaik.
Du Plessis, L. (2016a) Introduction to planning in tourism and hospitality. In: Hermann, U.P. and Du Plessis, L.
(2016) An Introduction to Tourism and Hospitality Management: A Services Approach. (Chapter 3, p. 35-54).
Du Plessis, L. (2016b) Managing diversity. In: Hermann, U.P. and Du Plessis, L. (2016) An Introduction to Tourism
Schaik.
Du Plessis, F. (2016c) Operations Management in A Tourism and Hospitality Organisation. In: Hermann, U.P. and
Du Plessis, L. (2016) An Introduction to Tourism and Hospitality Management: A Services Approach. (Chapter 13,
p. 195-215). Second Edition. South Africa: Van Schaik.
Du Plessis, L. and Hermann, U.P. (2016) Managing guest services. In: Hermann, U.P. and Du Plessis, L. (2016)
An Introduction to Tourism and Hospitality Management: A Services Approach. (Chapter 14, p. 217-238). Second
Edition. South Africa: Van Schaik.
Essays, UK. (2018). Strategic Planning in the hospitality industry tourism essay. Available at:
https://www.ukessays.com/essays/tourism/strategic-planning-in-the-hospitality-industry-tourism-
essay.php?vref=1 Accessed Apr 27, 2020.
Hermann, U.P. (2016a) Decision making. In: Hermann, U.P. and Du Plessis, L. (2016) An Introduction to Tourism
Schaik.
Hermann, U.P. (2016b) Managing groups in the tourism and hospitality organisation. In: Hermann, U.P. and Du
Plessis, L. (2016) An Introduction to Tourism and Hospitality Management: A Services Approach. (Chapter 10, p.
151-166). Second Edition. South Africa: Van Schaik.

Hermann, U.P. and Du Plessis, L. (2016) An Introduction to Tourism and Hospitality Management: A Services
Approach. Second Edition. South Africa: Van Schaik.
Hogg, A. (2020) Roaring success in luxury property development: Val de Vie founder shares his strategy. Available
at: https://www.biznews.com/retirement/2020/04/16/val-de-vie-founder-shares-strategy Accessed May 14, 2020.
Kokt, D. (2016a) Organising and delegating. In: Hermann, U.P. and Du Plessis, L. (2016) An Introduction to
Tourism and Hospitality Management: A Services Approach. (Chapter 5, p. 71-84). Second Edition. South Africa:
Van Schaik.
Kokt, D. (2016b) Managing change in tourism and hospitality organisations. In: Hermann, U.P. and Du Plessis, L.
(2016) An Introduction to Tourism and Hospitality Management: A Services Approach. (Chapter 6, p. 85-100).
Ladzani, W. (2019) Entreprenuership. In: Ersmus, B.J., Rudansky-Kloppers, R. & Strydom, J.W. (2019)
Introduction to Business Management. (Chapter 2, p. 44-78). 11th ed. Cape Town: Oxford.

Bibliography
Gade, J. and Ankathi, R. (n.a.) Toirism management: Philosophies, principles and practices. Hyderabad: Zenon
Academic Publications.
Ryan, C. and Page, S. (2012) Tourism Management: Towards the new millennium. New York: Routledge.
Soundaian, S. (2019) Principles of Management. Chennai: MJP Publishers.


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Bachelor of Commerce

in Tourism and Hospitality Management

MANAGEMENT PRINCIPLES FOR

Unit 1: Introduction to planning in the tourism and hospitality organisation .......................................................... 11

Unit 2: Decision Making ........................................................................................................................................ 29

Unit 3: Leading and leadership ............................................................................................................................. 42

Unit 4: Organising and Delegating ........................................................................................................................ 54

Unit 5: Managing change in tourism and hospitality organisations ....................................................................... 70

Unit 6: Managing diversity ..................................................................................................................................... 86

Unit 7: Managing individuals and groups .............................................................................................................. 95

Unit 8: Quality Management................................................................................................................................ 114

Unit 9: Entrepreneurship for Tourism and Hospitality.......................................................................................... 125

Answers to Revision Questions .......................................................................................................................... 136

Bibliography ........................................................................................................................................................ 169

List of Figures and Illustrations

Figure 2.1: The tourist travel decision making process ..................................................................................... 33

Figure 2.2: The managerial decision-making process ...................................................................................... 34

Figure 4.2: External departmentalisation .......................................................................................................... 60

Figure 4.3: Product departmentalisation ........................................................................................................... 61

Figure 4.4: Customer Departmentalisation ....................................................................................................... 61

Figure 4.5: Geographic Departmentalisation .................................................................................................... 62

Figure 4.6: Matrix structures ..................................................................................................................... 63

Figure 5.1: Levels of organisational cultures .................................................................................................... 75

1 MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management

We hope you enjoy the module.

MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management 2

The module is a 15-credit module at NQF level 5.

C. Exit Level Outcomes and Associated Assessment Criteria of the Programme

Exit Level Outcomes (ELOs) Associated Assessment Criteria (AACs)

 Analyse environmental, socio-cultural  Economic, socio-cultural and environmental issues are

 Evaluate the concepts of financial  Fundamental principles of financial management are

3 MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management

MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management 4

D. Learning Outcomes and Associated Assessment Criteria of the Module

LEARNING OUTCOMES OF THE MODULE ASSOCIATED ASSESSMENT CRITERIA OF THE MODULE

 Explain the elements involved in  Organisational change is explored to understand what it

5 MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management

 Managing individuals and groups in tourism and

 Understand the opportunities of  Fundamental concepts of entrepreneurship and the

E. Learning Outcomes of the Units

MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management 6

F. Notional Learning Hours

Lectures/Workshops (face to face, limited or technologically mediated) 10

Tutorials: individual groups of 30 or less

Practical workplace experience (experiential learning/work-based learning etc.) 10

Independent self-study of specially prepared materials (case studies, multi-media, etc.) 35

G. How to Use this Module

7 MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management

I. Prescribed and Recommended Textbook/Readings

The prescribed and recommended textbooks/readings for this module are:

MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management 8

Special Feature Icon Explanation

The Learning Outcomes indicate aspects of the particular Unit you

The Associated Assessment Criteria is the evaluation of the

You may come across Knowledge Check Questions at the end of

You may come across Revision Questions that test your

9 MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management

Case Studies are included in different sections in this Module

You may come across links to Videos Activities as well as

MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management 10

11 MANCOSA – Bachelor of Commerce in Tourism and Hospitality Management

Unit Learning Outcomes