Employee Empowerment in the European Cultural Context: Findings from the Hotel Industry

by

Antonios K. Klidas

IRIC, The Institute for Research on Intercultural CooperationTilburg University

Research Background

Financed by the European Commission in the context of the Training and Mobility of Researchers Programme (TMR) – Marie Curie Fellowships

Hosted by the Department of Leisure Studies at Tilburg University in the Netherlands

Started in November 1997 ended in April 2001

Research Aim

To provide an understanding of the concept of empowerment within the five-star hotel industry and examine the implications of applying the concept in the international, cross-cultural context within Europe.

Main Concepts

Empowerment of (customer-contact) employees in Hospitality defined as: “The notion of devolving decision-making authority and responsibility to frontline employees for control and enhancement of service quality and customer satisfaction.”

National Culture defined as: “The collective programming of the mind which distinguishes the members of one group or category of people from another” (Hofstede, 1991)

The cultural relativity of empowerment

Propositions about organisation:- Flat structure- Low centralisation- Low formalisation

BUT:

Is this likely in large power distance and strong uncertainty avoiding cultures?

The cultural relativity of empowerment Propositions about leadership:

- Employees demand participation- Employees wilfully accept responsibility- Employees independent in thinking and

acting- Leaders share power, delegate

BUT:

Is this likely in large power distance and strong uncertainty avoiding cultures?

The cultural relativity of empowerment

Propositions about motivation:- Self-actualisation as top motivator- Satisfaction from increased autonomy,

responsibility and self-direction

BUT:

Is this likely in strong uncertainty avoiding cultures?

The cultural relativity of empowerment

Propositions about employee behaviour:- Creativity and innovative behaviour- Risk taking (decision-making, initiative)- (Creative) rule-breaking

BUT:

Is this likely in strong uncertainty avoiding cultures?

Research Design

Research in 16 upscale hotels of a single (US) hotel-company in 7 EU countries

Qualitative part:

- Interviews with HR, FO and F&B Managers

- Some (participant) observation Quantitative part:

Survey among customer-contact employees in FO and F&B outlets (personal administration)

SampleCountry

(No. of hotels)

Employee survey

(n)

Interviews

England (5) 81 15

Sweden (1) 20 3

Netherlands (2) 38 5

Italy (4) 192 13

Greece (1) 13 2

Portugal (1) 30 2

Belgium (2) 53 5+1

Total: 427 46

Findings

Southern Europe Low delegation Lower levels of

“empowered behaviour” Low intensity of training,

mostly on the job. Less open communication

(taking place informally)

Less willingness to share information

Northern Europe High delegation Higher levels of

“empowered behaviour” More extensive, intensive

and formal training More open

communication (many formal processes for upward communication)

Systematically sharing information

Findings (continued…)

Southern Europe Imposed equal

compensation according to seniority and rank

Mainly local, sporadic recruitment

Very low labour turnover – very experienced workforce

Rigid regulatory framework

Northern Europe Merit pay allowed, but

restricted to incentives

International, intensive recruitment

High labour turnover – less experienced workforce

More flexible regulatory framework

Conclusions

The notion of empowerment more readily embraced in N. Europe compared to S. Europe

Different cultural context, which seems to influence employee empowerment

Considerably different environmental context (e.g. regulatory framework, labour market, business environment), generally favouring empowerment in the north

Implications for management Need for local understanding not only of visible,

but also invisible factors Need for empowerment initiatives to consider and

adapt to national context Empowerment not incompatible with non-Anglo-

Saxon cultures Empowerment process:

- In the north can rely on formal processes- In the south cannot rely as much on formal

processes, management style is crucial

A final word of caution…

Empowerment, just as many existing theories (e.g. organisation, management, HRM) are strongly Anglo-Saxon in origin and perspective

Antonis K. Klidas

Employee Empowerment in the European Hotel Industry: Meaning, Process and Cultural Relativity

Amsterdam: Thela Thesis

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