Saturday, 23 November 2013

ESSAY ON LEADERSHIP

Path-Goal Theory of Leadership

Introduction

Leadership is a dynamic relationship based on mutual influence and common purpose between leaders and collaborators in which both are moved to higher levels of motivation and moral development as they affect real, intended change. (1996).

Three important parts of this definition are the terms relationship, mutual, and collaborators. Relationship is the connection between people. Mutual means shared in common. Collaborators cooperate or work together.

This definition of leadership says that the leader is influenced by the collaborators while they work together to achieve an important goal.  This paper however, focused on a specific theory of leadership and its importance for the organization’s success. 

The Path-Goal Theory of Leadership

            The path-goal theory postulates that the most successful leaders are those who increase subordinate motivation by charting out and clarifying the paths to high performance.  According to Robert House’s path-goal theory, effective leaders:

Ø      Motivate their followers to achieve group and organizational goals

Ø      Make sure that they have control over outcomes their subordinates desire

Ø      Reward subordinates for performing at a high level or achieving their goals by giving them desired outcomes

Ø      Raise their subordinates’ beliefs about their ability to achieve their work goals and perform at a high level

Ø      Take into account their subordinates’ characteristics and the type of work they do

However, whether leadership behavior can do so effectively, it is also dependent on situational factors:

·         Subordinates’ Personality

o        Locus of Control.  A participative leader is suitable for subordinates with internal locus of control; A directive leader is suitable for subordinates with external locus of control.

o        Self-perceived ability.  Subordinates that believe they have a high ability themselves do not like directive leadership.

·         Characteristics of the Environment

o        When a group is working on a task that has a high structure, directive leadership is redundant and less effective.

o        When a highly formal authority system is in place, directive leadership can again reduce workers’ satisfaction.

o        When subordinates are in a team environment offering great social support, the supportive style becomes less necessary. 

The path-goal theory developed by is based on the expectancy theory of motivation. The manager’s job is viewed as coaching or guiding workers to choose the best paths for reaching their goals. “Best” is judged by the accompanying achievement of organizational goals. It is based on the precepts of goal setting theory and argues that leaders will have to engage in different types of leadership behavior depending on the nature and demands of the particular situation. It’s the leader’s job to assist followers in attaining goals and to provide direction and support needed to ensure that their goals are compatible with the organization’s goal.

Path-Goal theory assumes that leaders are flexible and that they can change their style, as situations require. The theory proposes two contingency variables (environment and follower characteristics) that moderate the leader behavior-outcome relationship. Environment is outside the control of followers-task structure, authority system, and work group. Environmental factors determine the type of leader behavior required if follower outcomes are to be maximized. Follower characteristics are the locus of control, experience, and perceived ability. Personal characteristics of subordinates determine how the environment and leader are interpreted. Effective leaders clarify the path to help their followers achieve their goals and make the journey easier by reducing roadblocks and pitfalls. Research demonstrates that employee performance and satisfaction are positively influenced when the leader compensates for the shortcomings in either the employee or the work setting.

           Leaders can take a strong or limited approach in these. In clarifying the path, they may be directive or give vague hints. In removing roadblocks, they may scour the path or help the follower move the bigger blocks. In increasing rewards, they may give occasional encouragement or pave the way with gold.

The Path-Goal Theory seems to be the most appropriate model to apply at the Community Technology Center level. This is where the work happens, money exchanges, and the bottom line is critical. In other words, since this is the most task-oriented piece in the trinity, it lends itself to the specific definition of accomplishing a goal. Obviously, we have goals and set objectives in all arenas. The CTC goals are more concrete and less nebulous or open to interpretation. Therefore, the leadership/management of the venue requires a goal-oriented style.

This variation in approach will depend on the situation, including the follower's capability and motivation, as well as the difficulty of the job and other contextual factors.

House and Mitchell (1974) describe four styles of leadership:

Leadership Styles

A leader’s behavior is acceptable to subordinates when viewed as a source of satisfaction and motivational when need satisfaction is contingent on performance, and the leader facilitates, coaches and rewards effective performance. Path goal theory identifies achievement-oriented, directive, participative and supportive leadership styles.

 

According to Robert House’s path-goal theory of leadership, there are four leadership styles depending on the situation:

  • Directive Leadership
  • In directive leadership, the leader lets followers know what is expected of them and tells them how to perform their tasks. This style is appropriate when the follower has an ambiguous job.  This style is characterized by leaders taking decisions for others – and expecting followers or subordinates to follow instructions. 

    Specific advice is given to the group and ground rules and structure are established. For example, clarifying expectations, specifying or assigning certain work tasks to be followed

    Telling followers what needs to be done and giving appropriate guidance along the way. This includes giving them schedules of specific work to be done at specific times. Rewards may also be increased as needed and role ambiguity decreased (by telling them what they should be doing).

    This may be used when the task is unstructured and complex and the follower is inexperienced. This increases the follower’s sense of security and control and hence is appropriate to the situation.

    Situation

                Directive leadership is appropriate and would best fit in circumstances of ambiguous job. 

    Leader Behavior

                Directive leader is focused on task to tell its subordinates what is expected and the “how” and “when” to do it.  The leader considers the task on how it would fit with others.  Moreover, the leader dwells on proper scheduling and standards in responding to the job.  It is also the leader that would set the procedures and regulations needed in performing uncertain and indefinite tasks. 

    Impact on Subordinates

                This style of leadership would clarify the path to reward. 

  • Supportive Leadership
  •  

    In supportive leadership, the leader is friendly and approachable. He or she shows concern for followers’ psychological well being. This style is appropriate when the followers lack confidence.  Good relations are promoted with the group and sensitivity to subordinates’ needs is shown.

    Supportive leadership considers the needs of the follower, showing concern for their welfare and creating a friendly working environment. This includes increasing the follower’s self-esteem and making the job more interesting. This approach is best when the work is stressful, boring or hazardous.

    Situation:

                Supportive leadership is suitable when followers lack self-confidence.

    Leader Behavior

                Supportive leadership means building relationship with subordinates.  Therefore, the leader should be courteous and friendly.  The leader is concern for the well-being and needs of its followers.  Moreover, he/she must be open and approachable and have a sense of equal balance in status treatment. 

    Impact on Subordinates

                Supportive leadership, in its own way, will have a desirable impact on followers.  This leadership style will increase the subordinate’s confidence in achieving work outcome. 

  • Participative Leadership
  • Participative leadership involves leaders consulting with followers and asking for their suggestions before making a decision. This style is appropriate when the follower is using improper procedures or is making poor decisions.  Decision making is based on consultation with the group and information is shared with the group.

    This style of leadership includes consulting with followers and taking their ideas into account when making decisions and taking particular actions. This approach is best when the followers are expert and their advice is both needed and they expect to be able to give it.

    Situation

                This style of leadership will be best suited in cases wherein there is an incorrect reward. 

    Leader Behavior

                The leader enables group participation or encourages followers’ involvement in achieving a goal.  Initially, the leader shares the work problems to subordinates for a proper understanding and then ask for suggestions or concerns from the followers.  After gathering suggestions, the leader then weighs them in coming up with a decision together with the subordinates. 

    Impact on Subordinates

                This certain type of leadership is centered on clarifying follower’s needs and would positively change the reward. 

  • Achievement-oriented Leadership
  • In achievement-oriented leadership, the leader sets challenging goals for followers, expects them to perform at their highest level, and shows confidence in their ability to meet this expectation. This style is appropriate when the follower suffers from a lack of job challenge.  Challenging goals are set and high performance is encouraged while confidence is shown in the groups’ ability.

    Achievement-oriented style of leadership involves setting challenging goals, both in work and in self-improvement (and often together). High standards are demonstrated and expected. The leader shows faith in the capabilities of the follower to succeed. This approach is best when the task is complex.

    Situation

                When the organization lacks job challenge, achievement-oriented style of leadership would be best for the condition.  It is the time when the organization demands improvement and the desire to grow. 

    Leader Behavior

                This style of leadership calls for an aggressive leader aiming high for the organization.  The leader is the one who will set some challenging goals that is believed to be attained by the organization.  It is the spirit of advancement that would drive the leader for further achievements and seeks continuous improvement.  As achievement-oriented as it is, the leader has the perfectionist desire for expecting the highest performance.  In addition, the leader is confident enough in the organization’s effort in achieving the challenging goal.  The leader then assumes more workers’ responsibility.

    Impact on Followers

    It would be almost all subordinates’ aspiration to grow and have a direction in their career.  The followers would then be comfortable in setting goals high. 

    Discussion

                In summing it up, all these styles would have uniform outcomes and effects.  Supportive behavior increases satisfaction by the group, especially in stressful situations, while directive behavior is suited to uncertain and ambiguous situations. It is also proposed that leaders who have influence upon their superiors can increase group satisfaction and performance.

    Through more effort, there would be an improvement in the organization’s performance as a whole, as well as enhanced satisfaction and fulfillment in reaching goals. 

    House’s 1971 article on Path-Goal Theory argued that a subordinate’s motivation, satisfaction and work performance are dependent on the leadership style chosen by their superior. Multiple dimensions of leadership behavior were examined in the theory including: leader initiating structure, consideration, authoritarianism, hierarchical influence, and degree of closeness of the supervision.

    Each of the dimensions was “analyzed in terms of path-goal variables such as valence and instrumentality” ( 1971). “Initiating structure” was defined as the extent to which the leader imposes psychological structure on subordinates, such as clarifying their expectations, specifying or assigning certain work tasks for them to follow. Consideration was defined as the degree to which a leader provides a friendly, supportive, and helpful environment for subordinates.

    There were two principal findings from this classic study: Subordinate role ambiguity was considered to have a negative correlation with initiating structure. That is, if a subordinate has a habitual or accustomed job, then a high level of initiating structure will decrease employee satisfaction. In contrast, an employee has a highly ambiguous role with the organization then a high level of initiating structure by the leader would lead to high levels of employee satisfaction.

    In terms of consideration, for subordinates who have routine jobs, a greater consideration by the leader should result in increased job satisfaction. For professional individuals and those whose position is less determined by specific job duties, consideration has been found to have almost no effect.  ( Educational Leadership Portfolio, ).

     

    Theory Analysis

                For the past two decades, path-goal theories have received much conceptual and research attention. The theory, as formulated by  (1971), uses expectancy theories of motivation as a foundation. Path-goal theories hold that a major function of a leader is to enhance subordinate expectancies, instrumentalities, and valences. Because these psychological states affect subordinate satisfaction and motivation, leader behavior that enhances them also has a positive effect insubordinate outcomes. The leader provides the "coaching, guidance, support and rewards necessary for effective and satisfying performance that would otherwise be lacking in the environment" (1974).

                   Specifically, the motivational functions of the leader include: (1) increasing personal payoffs to subordinates for work-goal attainment, (2) clarifying the paths to these payoffs, (3) reducing roadblocks and pitfalls that impede goal attainment, and (4) increasing the opportunities for subordinate satisfaction. Path-goal theories also contend that the effects of the leader on subordinate outcomes are moderated by situational variables. House and Mitchell (1974) identify two classes of situational variables: (1) characteristics of the environment, and (2) characteristics of the subordinates. Whereas the theories are not restricted to a given set of variables within these classes, (1971) and (1974) initially emphasized the moderating role of task characteristics, i.e., task structure, role ambiguity, job autonomy, job   scope, and task interdependence. Subordinate characteristics emphasized were    dependence, authoritarianism, ability, and locus of control.                Additional situational variables have been considered within each of these classes however, most of the research analyses have been concerned with task characteristics, predominantly with task structure.                The subordinate outcome variables of the (1971) conceptualization were valences associated with goal-related behavior and with goal attainment, and subordinate path instrumentalities for goal attainment and for these valences. House's (1971) research and most of the subsequent research used performance effectiveness, role clarity, general satisfaction, work satisfaction, and satisfaction with supervision as surrogates for these outcome variables.

                Interpreting the meaning of the theory can be confusing for the reason that it is so complex and incorporates so many different aspects of leadership; as a result, it is difficult to implement. 

    Experimental research studies have demonstrated only partial support for path-goal theory.  Moreover, it fails to adequately explain the relationship between leadership behavior and worker motivation.  The path-goal theory approach treats leadership as a one-way event in which the leader affects the subordinate. 

    Although the  (1974) formulation of the theory introduced two additional constructs (i.e., participative and achievement-oriented leader behaviors), most of the research has focused on the original two constructs or on similar ones (e.g., directive, instrumental, clarification, and supportive behaviors). At present, there is insufficient research to examine the theories in terms of the participative and achievement-oriented constructs.

    Conclusion

                In effectively leading, leaders must show the way and help followers along the path.  This path-goal theory of leadership assumes that there could be one right way in achieving a desired goal and it can only be seen by the leader.  Thus, this would entail that the leader is the knowing person and the follower would be its dependent.  Furthermore, the theory also assumes that the follower is completely rational and that the appropriate methods can be resolved through suitable selection depending on the situation. 

                The path-goal theory of leadership has a very useful theoretical framework.  It is useful for understanding how various leadership behaviors affect the satisfaction of subordinates and their work performance. 

                Another key strength of the path-goal theory of leadership is that it integrates motivation.  Path-goal theory attempts to incorporate the motivation principles of expectancy theory into a theory of leadership. 

                Lastly, the theory presented a practical model.  Path-goal theory provides a practical model that gives emphasis and highlights important ways leaders help subordinates. 

     

     

     

     

     

    COMPARISON OF LEADERSHIP STYLES OF UNITED STATES AND JAPAN

    p class="MsoNormal" align="center" style="text-align:center;line-height:200%"> CHAPTER II

    REVIEW OF RELATED LITERATURE

     

                This chapter presents a variety of literatures tackling the main subject of the study – leadership and its styles. Further, it will try to critically analyze selected empirical studies, their methodologies, results, discussions, and strengths and weaknesses. From here, the justification on the conveyance of this research study is established.

     

    Leadership Styles

                The previous chapter provided fundamental information on the different leadership styles proliferated globally. There have been numerous research studies focusing on the evaluation of the effectiveness of certain leadership styles in application to specific area of practice, type of organization, and business operations. For decades, the issue on leadership has been undertaken in various studies and related discussion. In fact the study on leadership dates back in 1921 (1999). The contemporary leadership theories continuously present new arguments that ignite the interests of leadership authors and researchers which in return creates another avenue for further empirical exploration and inquiry. Also, the emerging conditions that affect contemporary societies such as globalization and internationalization prompts leadership experts to redirect existing body of knowledge on leadership that will serve the idea of the current practice. The concept of leadership styles, similar to leadership theories, continuously changes and adapt to the conditions and demands of the modern society and its people.

    According to (2002), credibility is the foundation of leadership. A leader should be credible for him/her to lead. In addition to this characteristic, a leader should possess honesty, competence, aspiration, and a forward-looking approach.  (1995) sees leaders as the basic resource for an organization as well as the key factor for a healthy growing economy and supply, which is critical to the survival and further development of any organizations. In the business point of view, good leadership proves to be quite beneficial as aids in effectively meeting job-related demands, in creating higher-performing teams, in fostering renewed loyalty and commitment, in increasing motivational level and in reducing absenteeism and turnover of employees. Unfortunately, this so-called effective leadership is not that easy to attain; effective management is not as easy as writing down notes. Good leadership entails a lot of hard work, dedication, and many other factors. However, good leadership should not be a burden but a challenge ( 2000).

     (2001) declared leadership as an influential factor in doing things willingly to a standard and quality above their usual norm. As an element in social interaction, leadership is a complex activity involving a process of influence, actors who are both leaders and followers, and a range of possible outcome – the achievement of goals, but also the commitment of individuals to such goals, the enhancement of group cohesion and the reinforcement of change of organizational culture. The concept of leadership can not be separated from the issues of organizational power, influence and politics. These constructs most of the time bring forth conflicts within the business organization especially when an influential corporate entity puts first personal interest beyond that of the wellness of the company and the people working in it. Large organizations are empowered with political influence particularly when their reach and economic decisions presents dramatic change not just in their internal environment but also to the industry they belong to. The mismanagement of corporate power and influence usually result to scandals that end a giant organization. As such, it is highly important to always have a heart in the overall direction of the organization.   

    According to  (2002), leaders have the ability to view the future. They are equipped with compelling abilities to visualize where things will naturally end or lead to. Unlike other people, individuals with leadership abilities see things that are not noticeable or obvious to others. In addition, leaders have the ability to build and establish confidence to others. Hence, in order to be a good leader, a person needs to have a personal sense of efficacy and confidence (2002).

    Each of these aspects brings complexity to the leadership process. Somewhere between the broad personality trait and the specific behavior sits the leadership style. Styles reflect relatively stable patterns of response to social situations. Leadership style refers to the degree of direction that the leader provides to subordinates in attempting to influence their behavior toward the accomplishment of organizational objectives (1995).

    According to (1998) the development of leadership theory has paralleled the development of organizational theory. The models of laissez-faire, transactional and transformational leadership both explain the old paradigm of the bureaucratic organization and reinforce the new organizational paradigm for the twenty-first century. The bureaucratic organization is analyzed in terms of laissez-faire leadership and the transactional leadership elements of management-by-exception and contingent reward.  (1986) identified six leadership styles that were constantly adapted up to the current period namely: Autocratic Style, Benevolent Autocratic Style, Consultative Style, Participative Style, Consensus Style, and Laissez-Faire Style. These styles were commonly used in most research studies then eventually mixed up with each other. Similarly,  (1999) identify three major leadership styles: laissez-faire, democratic, and authoritarian leadership. These are also similar to the following styles of leadership namely: authoritarian (autocratic) style (1939, permissive (delegative) style, authoritative (democratic) style (1982,1993).

    To (1999), laissez-faire leaders take no initiative in directing or managing the group; he/she allows the group to develop on its own, as it has no real authority. Specifically, the leader answers questions, provides information, or gives no reinforcement to the group. Furthermore, the leader evaluates and criticizes little, and is thereby non-threatening. The leader allows the members to make their own decisions. Sometimes called the permissive (delegative) kind of leadership wherein the followers are permitted to be involved in the decision making process. The leader implements minimal control or manipulation on their followers. However, the leader is still accountable for the final decision to be made. Herein, the opinion and ideas of the followers are being valued by the leader and each follower encompasses different tasks set by the leader.

    On the other hand, democratic leaders provide directions, but allow the group to make its own decisions. In leadership styles, the democratic leader is in the middle of the styles. In this type of leadership, the leader and the selected subordinates are involved in the process of the decision making. Herein, the subordinates have the right to voice out their ideas and thought which they think would be helpful for the leader in making the final decision. As specified by  (1999), members are encouraged by democratic leaders to determine goals and procedures, and to stimulate their self-direction and self-actualization. Moreover, democratic leaders offer suggestions and reinforce members' ideas. After offering these suggestions, providing information, and clarifying ideas, the leader allows the group to make the decision and holds the authority for the final decision which is acceptable by the whole group and majority of its members.

    Lastly, the authoritarian leader is the opposite of the laissez-faire leader. Authoritarian style, as described by  (2003) indicates thet authority of the leader over his/her subordinates. In this manner the authority have the right to do the decision making without asking the opinion of the followers. The leader is this type of leadership tends to tell the followers what must be done in order to achieve the goals or objectives of the organization. The authoritarian leader sets the agenda, determines the group's policies, assigns tasks to the members, and makes decisions for the group without consulting them. In the end, the leader takes responsibility for the group's progress, but accepts very few suggestions from the group. Rarely do the group members communicate with one another, but they communicate with the leader.

                 (1999) have three groups similar to Devito's styles of leadership. It was been explained that free-rein (laissez-faire) leaders allow the group the freedom to decide what to do, how to do it, and when to do it; participative (democratic) leaders seek participation of the group in making decisions for the group; and autocratic (authoritarian) leaders make decisions without the assistance or approval of the group. Whether a crisis is instantaneous and unanticipated, or gradual and long-term, effective leadership is what sets one organization apart from its competitors and often even determines it fate. According to  (2000), during the challenging times, individuals engage in mutual communication processes that avoid the structure to achieve the performance levels. The difficulty is that most of the people are dealing with the very same fears, anxieties, and uncertainties. In here, the most effective style of leadership is employed.

                In the previous discussion, other leadership styles are mentioned such as transformational, transactional, servant and others. Basically, these types of leadership are employed in specific areas wherein most practices cater to larger group of individuals.  In transformational leadership, the presence of the four vital dimensions that serve as prime features namely: Charismatic Leadership (Idealized Influence, CL or IL), Inspirational Motivation (IL), Intellectual Stimulation (IS), and Individualized Consideration (IC) is expected ( 1998). These are the components that bring out all potential applications and results of the approach when used. However, the charismatic power of leadership has already been analyzed and challenged (1990). Transactional leadership, the counterpart of the transformational style, is more on controlling people and giving out orders. In general, the qualities of transformational leadership style are opposite to transactional style of leadership. Servant leadership focuses on the leader’s role as steward of the organization’s resources from human, finance, and others (1970). Lastly, other leadership styles are combination of one style or two.

     (2005) identified another way to classify styles of leadership as presented below:

    Analysis of Leadership Styles

     

    Type-A (Fact Based)

    ·         Expects others to perform at a high level, with emphasis on the bottom line.

    ·         Factual

    ·         Logical

    ·         Technical

    ·         Analytical

    ·         Quantitative

    ·         Mathematical

    ·         Theoretical/Scientific

    ·         Formal

    ·         Conservative

    ·         High Task

     

    Type-B (Creativity Based)

    ·         Provides an open and creative work Environment, which provides opportunity for suggestions and clarification.

    ·         Artistic

    ·         Flexible

    ·         Imaginative

    ·         Synthesizing

    ·         Spontaneous

    ·         Holistic

     

    Type-C (Feelings Based)

    ·         Makes decisions based upon how he/she feels about the issue.

    ·         Emotional Talker (without reservation)

    ·         Emphatic

    ·         Intuitive

    ·         Interpersonal

    ·         Flexible

     

    Type-D (Control/Power Based)

    ·         Provides specific and detailed instructions and does not tolerate deviation from assigned sequence.

    ·         Controlled

    ·         Detailed

    ·         Planned

    ·         Sequential

    ·         Conservative

    ·         Organized

    ·         Dominant

    ·         Highly Structured

    ·         High Task

    ·         Formal

     

    Source: 2005

     

    Howard’s classification of leadership style is an extended version of the other types identified above. These are also mainly applied to most economically-driven organizations yet Howard also stated its given significance in general idea of leading and managing.

                Early studies on leadership style sprouted from  (1980). (1980) concluded that leaders in countries such as the U.S., Australia, Great Britain, Canada, and the Netherlands are more likely to exhibit autocratic and centralized leadership styles than leaders in countries such as Norway, Sweden, Japan, Taiwan, or Pakistan. The former were rated high on individualism while the latter rated low on individualism. Hofstede’s initiated debates on the issue of leadership styles as many researchers criticized several aspects of the report. Arguments include the following:

    -       That the employees of a single organization may provide a highly unusual representation of the values current within a particular country ( 1995);

    -       Findings are based upon responses to a single attitude questionnaire, which may bear little relation to the actual experiences of leaders and followers in a given culture (1988).

    On the positive side, Hofstede’s research started the proliferation of culturally-oriented research explorations (1988). Cultural attributes are connected with leadership styles such as the following researches and their findings:(1982) found that Swedish, French, and Dutch share power more than British, American, German, Israeli or Spanish managers;  (1982) found that Americans are more individualistic and achievement oriented than Australians;  (1986) found that americans placed greater emphasis on personality fulfillment and equality than did Australians;  (1988) found that Swedish managers are more participative than American managers; (1989) found that Swedish managers are less adversarial and are more cohesive than British managers” (1995).

                 (2005) examined the role of transformational and transactional leadership in building quality climate in R&D versus non-R&D settings particularly the relationship between leadership style and the establishment of a quality environment based on an empirical study of 511 research engineers and scientists. Results noted that both transformational leadership and transactional contingent-reward leadership are related to the establishment of a quality environment in the R&D part of a telecommunications firm. However, the impact of transactional contingent-reward leadership ceases to be significant once both leadership styles are considered simultaneously using structural equations. A transformational leadership style was also found to be related to employee satisfaction.

    Basing from the earliest accounts on leadership literatures, a review of these studies suggests that no clear conclusions can be drawn with regard to why similarities and differences exist across cultures. Thus, this study addresses the need to provide specific characteristics on the similarities and differences of leadership styles particularly using Japan and United States as area of reference. Additionally, the inclusion of case study of one selected Japanese and American organizations chosen by the researcher will add credibility to the prospected results and findings.

     

    Leadership Styles implemented within Japan and United States

                Over the past several decades, researchers have been trying to determine whether a set of leadership styles is universal or whether cultural values in a particular country influence certain leadership styles (1995). The variety of research studies to be presented below identifies the pros and cons of leadership styles as utilized in specific regions.

     (1995) conducted a comparative study on the invariance or the unchanging relationship of leadership styles utilizing countries namely U.S., Australia, Norway, and Sweden. Their study builds upon previous cultural contingency research by examining the structure of a previously validated leadership model across four counties. Such countries were deliberately chosen in order to compare similar and divergent cultures. This study examined the generalizability of leadership models by comparing the structure of a six-factor leadership style model (1986) across four countries. Overall, the results indicate that the leadership model does not differ with respect to the number of factors, the pattern of the estimates, or the correlations between factors. In review of this study, it is mainly descriptive. Also, it can be deemed that the facts presented were already subjected to changes because it has been two decades when they conducted such study. Furthermore, the need to provide empirical evidences is missing as it only employ descriptive evaluation of existing literatures related to the identified countries.

     (2006) compared the competitive strategies of Japan and United States. However, this study is limited on the marketing and management applications. The concept of leadership styles is just a part of the overall parcel. Along the process, leadership has been considered as a vital element of powerful and strong organizational cultures (1992). Leadership has been a subject of numerous discussions that oftentimes, it is considered as an attribute of personality, a characteristic of particular positions or behavior attribute (1978). Clearly, organization culture and leadership have a strong and established relation. Leadership is vital in applying organizational culture. The role of the leaders for example, is significant in developing organizational efficiency and creating corporate culture.

                Recent research in leadership has focused on developing leadership competencies in whatever field of specialization. For example, in the area of nursing practice, training nurses to lead and to follow should be standardized. The importance of successful collaboration in nursing practice is well documented in the study conducted by  (2001).The role of leadership and teamwork is also proven in the study conducted by  (1997) especially to the field of psychiatric nursing.  (1997) have taken the competencies discussion one step further arguing that all leaders must be able to not only demonstrate the competencies, but teach them to others in their organization as well. The concept of developing global competencies in nursing management was been widely understood by developing one factor that really considered in the success of many organizations – leadership and teamwork. The idea of teamwork and its promotion is vital in coping up with some cases of emergencies occurring in high risk and vulnerable population samples (1993). In a study conducted in Uganda, leadership and teamwork promotion is important (1997). After the study, there is a need to further develop the leadership and management skills of all the members of the healthcare community. The promotion of teamwork aims for continuous improvement through inclusive cooperation and involvement of frontline workers, systematic analysis of problems and data collection, and subsequent modification of hospital structures and processes. This is evident in the research conducted by  (2002) and colleagues in terms of implementation of transactional leadership and continuous quality improvement in hospitals in Canada. Further, in some studies, alternative structures in leadership such as program management (1994) and patient-focused care ( 1995) are more client-centered and teamwork oriented. The vast literature accounts of leadership in the healthcare practice traces back from its implementation as well as the styles utilized. 

                According to (1995), leadership models that differentiate that of the U.S. have often found support in countries that are thought to be dissimilar to the U.S. in terms of cultural values. For example, (1985) demonstrated that although the Japanese are thought to be quite dissimilar to Americans in terms of cultural values, leaders in Japan appear to use an array of leadership styles (both task-oriented/autocratic and relationship-oriented/participative) in a manner similar to leaders in the United States. In addition, American leadership models have sometimes been rejected in countries that are thought to be similar to the U.S. (1988). For example,  (1987) demonstrated that although Great Britain and the U.S. share many cultural values, leaders in Great Britain (unlike Americans) focused almost exclusively on relationship-oriented, democratic leadership styles.

                 (1997) conducted their study on the leadership in Western and Asian countries where results state that there are commonalities and differences that affect the overall effectiveness of leadership processes particularly involving various cultures. Further,  (2004) argued that Western leadership styles like the one utilized in the U.S. may not necessarily bring corporate success in Asia. This fact should be considered by Western business schools. Most people in the West sometimes refer to an Asian leadership style yet there is no single model that is presented. In Japan,  (2004) observed a superficial look that a consensus-driven leadership style seems to govern. For Jenkins, there is a great amount of undiscovered knowledge on leadership particularly in Asian societies. He specified one fundamental principle that applies in Asia and elsewhere – leadership is not one size fits all (). Thus, the need to improve and work into the development of leadership skills is a must.

                Similarly,  (2004) posed a challenging question: Is there such a thing as an Asian, as opposed to a Western, style of leadership? She answered it with the fact that Asian leadership styles including that of Japan are changing.  (1994) evaluated the ethical aspects of “Japanese leadership style”. They described the three characteristics of the Japanese Leadership Style (JLS) namely: self-realization, appreciation of diverse abilities, and trust in others, which have both positive and negative ethical implications. From these characteristics, the authors associated it to the perspective of U.S. corporations. In application, the premise of the research is reflected to the idea that both the American and Japanese business communities, by analyzing their own ethical issues and leadership styles, can learn from each other. The study of  and  (1995) looked unto the influence of corporate headquarters on leadership styles in Japanese and U.S. subsidiary companies. Results state that US subsidiaries are found to be insignificantly influenced by their parent companies and to practise a professional style of leadership. However, Japanese subsidiaries are found to be significantly influenced by overseas parent companies and to practice a corporate style of leadership (when the CEO is Japan-educated) and a professional style of leadership (when the CEO is US-educated). These findings reinforce the perceived link between leadership style and cultural upbringing and education.

                In general, the literature of leadership styles in Japan and U.S. is extensive. Conducting this literature review provides background information on the subject of this research. With the identified research studies, this research activity is directed to the revalidation of such findings as applied in two specified countries. As most studies are conducted years before, this study will mainly provide new body of information and applied to a case study of a contemporary business organization.

     

    The Ethics of Business in the Hospitality and Tourism Industries: the provision of the company and stakeholders

    The Ethics of Business in the Hospitality and Tourism Industries: the provision of the company and stakeholders

     

     

    “The good ethical manager is therefore not only a person with solid value orientation, knowledge and abilities for moral reasoning, but also a person with communicative skills who is able to gain insights into the stakeholders’ perspectives, who can discuss difficult issues and provide sensible compromises (Manburg 2005, p. 574).”

     

     

    The corporate world is characterised by paramount restrains, high demands and expectations on productivity, and excessive competition where management members necessitate the familiarity and importance of business ethics. Considering the above trends in the corporate world, many employees are pressured to cut corners, break standards and rules, and engage in other forms of questionable practices so as to do away with a number of inconveniences and achieve outcomes the fastest way possible while neglecting the provision of appropriateness and fairness. According to Robbins and Judge (2007), many employees are confronted with instances where they need to define and decide right and wrong conduct. The characteristics of good ethical behaviours have never been clearly projected in the recent management literatures where the line that differentiates right against wrong conduct has become even more blurry. Managers and leaders respond to ethical behaviour issues (De Mesa Graziano 2002).

    It is provided that when analysing the role and meaning of ethics from the internal perspective within a company, Kline (2006) states that, “There is a potential problem ...with attaching the duty of managers to the specific desires of shareholders. If anything, moral constrains are meant to constrain desires. Desires are fickle and not always moral”. Kline’s statement holds veracity and openness provided that business ethics is concerned. This paper elucidates on the relevance and adequacy of Kline’s statement by looking on the case of ethics of business as practiced in the hospitality and tourism industries. It will further provide possible counter arguments that are relevant when considering ethics and stakeholders in the hospitality and tourism industry. Also, patterns of morality or amorality will be considered to emerge in ethical patterns of behaviour in the future in international standard hotels and resorts.

     

    Hospitality and Tourism Industries: the challenge of sustainability

    The hospitality and tourism industries serve millions of people from different parts of the globe and multibillion-dollar industries (Brymer, et al. 2005) and among the largest industries in the world (Hudson and Miller 2005; Wheeler 1995). Latest statistics published in UNWTO World Tourism Barometer last June 2007 report that there is a 6% increase (15 million) on international tourist arrivals from January to April 2007 as compared to the same months of the previous year. This shows that people of modern societies are able to treat themselves with their own share of leisure and convenience that they see in tourism. There is an apparent progression in terms of number of tourists visiting specific tourist destinations. For economically-inclined experts, this is an opportunity for business and revenue acquirement in the world (Lansing and De Vries 2007). Tourism is certainly a vastly persuasive driver of national socio-economic development (Tapper 2001). Most developing nations with a rich assortment of tourism features including natural resources, historical sites and cultural practices and so on are said to be hopeful on the potentialities of tourism in national income and economy generation as well as employment opportunities. Ghimire (2001) affirms the common perception on tourism as among the excellent ways of revitalizing and branching out national and regional economic base by means of creating new employment and income opportunities for immediate communities and at the same time as enhancing interpersonal contacts and regional cooperation in some cases. According to Holden (2003), tourism is not just the business of foreign environment destination but also an interaction of divergent societal factors. This is evident on the concurrent tourism initiatives and programmes of various countries and tourism-related institutions and organisations. Provided that tourism particularly worldwide tourism is placed on economic limelight, the issue of sustainability or sustainable development in tourism and its management become known seeing that there is a need and call for the protection of the environment and its underlying elements.

    Sustainable development is a coined termed that basically characterised by living and doing business without destroying and endangering the potential interest of others and Mother Earth. There has been persistent debate on the actual and comprehensive definition of sustainable development or sustainability (Sofield 2003). Sofield states that a narrow yet inclusive definition of the term should be based on cultural, political, and economic impacts on communities.  However, it is contended in this paper that the terms ‘sustainable development’ or ‘sustainability’ are rooted on the United Nations Conference for Environment and Development (the Earth Summit) in 1992 with two important variables namely, development and protection of the environment. Sustainable development is not actually a new idea (Jamal 2004). It originated and rise from public’s and people’s consciousness because of the growing awareness on the increasing cases of companies and organisations that violate environmental protection policies and regulations. Sustainability within the hospitality and tourism industries was advocated in response to the negative images directed upon the impacts of mass tourism (Weeden 2002). It is a positive alternative and a necessary concept involve in tourism planning and development. Hall (2000) and Inskeep (1991) assert that sustainable development is a crucial element in planning and developing tourism initiatives and programs. Even if a significant number of tourism researchers and practitioners (i.e. Weaver 2001; Casado 1999; Manning and Dougherty 1995) assert that sustainable tourism is a “good thing” provided that there has to be a balance approach to protecting host cultures and environments, they argue that “sustainable tourism is effective only if it is, in fact, sustainable” (cited in Hawkes and Kwortnik 2006, p. 370). All businesses that operate in sustainable-tourism systems must be able to generate their needed economic resources to fully support their operations and growth. They can also cooperate with the government in designing policies for tourism and funding. With the unique attributes of the industry as well as tourists’ attention to authentic and natural travel experiences, Hillman (2001) poses the challenge community assessment and influence on demand. Sustainable development is relatively related to the issue of ethical conduct in the hospitality and tourism industries. Members of the hospitality and tourism industry must embrace a corporate social responsibility (CSR) as ethical response to a variety of dilemmas concerning acceptable standards in providing hospitality and tourism services. The acceptance of the veracity of ethics in sustainable development and CSR in hospitality and tourism is reflected in the duty of managers to serve the specific desires of stakeholders. However, there is a problem on identifying the acceptability of desires because Kline (2006) considers them as “fickle and not always moral”. Stakeholders are said to be key players of the industry yet the managers are the key implementers of managerial pursuit granted that they acquire and possess the fundamental elements of management. In dealing with their managerial duties, managers are subjected to outside pressures including desires from stakeholders, which in return affect the decision-making process and implementation. Managers on this particular instance are engaged in ethical dilemma. For this reason, business ethics comes to the rescue. What circumstances, when, and how are desires considered morally right or morally wrong? Is it good to majority of all concerned parties? How do managerial functions coincide with business ethics considering the pressures of stakeholders? Questions like these may explore the condition of Kline’s (2006) assertion.

     

    Business Ethics: choosing and doing the right against the wrong conduct

    Defining ethics is an academic and contextual issue by itself. There have been numerous scholars who encapsulate ethics in a single description. To Kant and the Greek meaning of the term, it is a science of customs or morals that attempts to comprehend the nature of morality. Blackburn (2003) generally characterised ethics as the basis of acceptable behaviours and practices based on honesty and integrity. Meanwhile, Tiles (2000) describes ethics as the moral philosophy or the process of purposeful action towards a moral obligation. Ethics is a major segment of the practical sciences that advocate the principles on how human life must be formed in order to achieve its purpose or ultimate end. It is basically situated at the top of the practical sciences to encompass all practical science in a positive measure and basis (Rist 2002). All arts are designed to serve the ultimate purpose of perfection and responsibility (Gibbs 2000). This is same as true in relation to ethics in business.

    Ethics in business is primarily an applied ethics. Traditionally, the principles of ethics are incorporated on the idea of corporate social responsibility (CSR). It is also associated with and significant to the value system of every person in business. Payne and Dimanche (1996) consider business ethics not an option and necessity but an absolute determinant and requirement for industry success. Ethics influences the value system of every organisation and employee by serving as a moral guide or “base” (Sweet 2001). Furthermore, business ethics is a potential vehicle for employee pride and motivation as well as a focus for customer satisfaction (Hall 1991). Ethics is a part of the manager’s responsibility as the ethical environment reflects managerial value system including personal and organisational perceptions and preferences of morality and known to be fundamental on a person’s attitude towards ends and means (McCarty and Bagby 1990, p. 21 cited in Fox 2000, p. 70). Fox (2000) believes that ethics are values that traditionally sprouted from religious or organisational influences and may evolve from personal experiences. There is importance in combination of value systems that leads to generalised principles, which are used as guidelines in making and evaluating decisions and specific cases that require acceptable conduct among people. General theories of business ethics are considered generic and are not directed to specific applications (Walle 1995). Hospitality and tourism industries cater to a certain niche market and have their own sets of problems and concerns that should be individually addressed according to specific needs. Walle emphasises that distinctive ethical considerations in the hospitality and tourism industries must be assessed from a particular point of view. More often than not, the hospitality and tourism industries borrowed general concepts from business without the evaluation of whether or not such concepts are adequately able to provide the given set of specific needs. Ethics and social responsibility evolve in order to cater to various emerging occurrences and factors faced by global businesses. Hospitality and tourism industry is a special case in terms of ethical consideration because the given needs of several different types of stakeholders have to be taken into further attention and consideration particularly when existing strategies are being counterfeited (Walle 1995). Hospitality and tourism industries are responsive to the needs of various stakeholders who are affected by the forces of the industry.

    Consequently, the stakeholder theory is about organisational action on addressing stakeholders’ interests wherein organisations that address such needs are considered better than others (Polonsky and Scott 2005). Stakeholders are any group that is affected by, or can influence, activities of the organisation (Freeman 1984 cited in Polonsky and Scott 005). In order to serve the needs and interests of stakeholders or other groups, managers employ their managerial expertise based on standard theories of management. Organisational relationships are associated by stakeholders’ interests and managers’ ability to be guided in terms of strategies employed in maximising organisational performance. The influencing ability of stakeholders is high that most managers are required to give in to it. This influential power guides managers to decision making in relation to strategic issues affecting the whole business operations. Managers are often dependent on stakeholders’ interests and act on the applicability of generic strategies. Such interests reflect desires that are subjected to moral evaluation by the manager by looking on ethics on business management.            

    Business ethical practices and principles are important elements in building an ethical working environment with strong corporate guidelines. These guidelines govern the overall condition of the organisation in terms of allowing members of the workforce be familiar with the upper management authorities’ deliberation of ethical behaviours as significant ingredients of business operations. In almost all organisational setting, Frederick and colleagues (1994) state that ethical guidelines are expressed in the forms of code of conduct, outlining the organisation’s foremost expectations to every contributing factors such as the employees and other stakeholders. Business ethics further support management strategies, accountability structures, organisational policies, incentive systems, training programs, and decision-making processes. It ensures their unity of work as the common denominator of strengthening the organisation’s essential ethical code of conduct.

    There are numerous ethical dilemmas taking place in the global workplace setting. According to Beauchamp and Bowie (2001), bribery, extortion, facilitation payments, environmental problems, and human rights are the most fundamental issues in business ethics. Ferrell and associates (2002) add sexual and racial discrimination, price discrimination, and destructive products on the growing list of business ethical concerns. In the Australian setting, Pedigo and Marshall (2004) include bribery, breach of contract, human rights and confidentiality issues as among the ethical problems concerning every manager. These ethical challenges confront every manager not only on addressing such but also on whether or not they involve their self in these kinds of activity. Specific business trends in the modern global marketplace like high concentration and fast rate of competition heightens the question of business ethics. In competition, managers and stakeholders are pushed to the limit to come up with drastic actions that are primarily directed to keep up or stay ahead of their competitors without the consideration of social responsibility or pure ethics. Frequently, this instance shows the start of cultivating unethical business practices and behaviours. For this very reason, today’s managers and industry leaders are exposed on the ultimate challenge of building behavioural models and corporate cultural structures that is mainly supported by ethical practices and at the same time maintaining maximum business profitability and performance (Vickers 2005).

    The growth of hospitality and tourism industries as legitimate businesses needs standard code of ethics (Fleckenstein and Huebsch 1999). Generally, ethical codes are used as functional agents that govern the conduct of the members of a particular profession. It guides individuals in making decisions based on sound moral judgment. Codes further enhance working relationships and adjudicate disputes among members of the organisation. General principles of business ethics should guide behaviours in any field and type of business and its operations. Also, these codes are clearly articulated, wide-ranging, phrased in order to accentuate and provide commendation on doing the right thing other than listing a series of prohibitions. There is no apparent moral compass to direct managers to get through difficult ethical dilemmas that requires coming up with accepted judgment about what is morally right or morally wrong. Walters and Maher (1997) note that attention to ethics in the workplace makes managers susceptible on their responses to particular business ethical dilemmas or even common situations encountered daily. Perhaps, established code of conducts help in ensuring managers’ ability to respond on times when they are struggling on moral crises and confusion. They keep hold of a strong moral compass. In hospitality and tourism industries, holding on to the moral compass of managers is a challenge when they try to serve the desires of stakeholders.

                Today, ethics in tourism is a controversially vibrant area for discussion and policy development and implementation (Fox 2000). An ethical tourism business is not just about price (Weeden 2002). It has to be something that is morally acceptable in reference to the actions of the people behind a tourism business or organisation. The role of ethics is linked with organisational performance and reputation. In tourism marketing for instance, the role of ethics revolves around effective segmentation and promotion tourism products and services (Wheeler 1995). Fleckenstein and Huebsch (1999) maintain that ethics and quality can be equated since the production of quality goods and services is a clear manifestation of ethical treatment of the consumer. In this case, serving the desires of the stakeholders is difficult. It exposes the manager to ethical concern on how to come up with balance on customer satisfaction and profitability. The duty of the managers must stick on the basic and personal beliefs of what are right and never entertaining unethical options. Ethics is a personal promotion of external goodwill (Rondinelli and Berry 2000). It is strengthened by codes of ethics existing within the bounds of the working organisation. Hospitality and tourism industries demand acceptability in terms of conducts and behaviours because these industries are concentrated on services or providing tourism service. While hospitality and tourism industries require maximum satisfaction on the tourists, the managers in response to the desires of the stakeholders must encourage responsible tourism planning, management, and development. This is done through implementing tourism programs that are not just limited on profitability but include the community and other factors of production (i.e. employees, finance, information, etc.). On the case of employees, for instance,

    Stevens (2001) believes ethics for the hospitality and tourism industries to be fundamental due to the circumstances in which most employees are frequently to be found. The success of tourism development is dependent on the ability of the workforce to provide the tourists with the most reliable and enjoyable tourism products and services as well as meeting or even exceeding their expectations. 

    Stakeholders’ desires are crucial consideration in decision making of managers. Weeden (2002) declares that all businesses are involved in decision making and exposed to a variety of choices. Hospitality and tourism-related individuals, for example – hotel managers, must aim to create an ethical environment for all stakeholders. It is acknowledge that most employees prefer to work in a working environment governed and guided by high ethical standards. Since all sustainable tourism businesses attract a diversity of customers (Eagles 1995 cited in Hawkes and Kwortnik 2006, p. 378), tourism should share its benefits with local communities and marginalized stakeholders (Hawkes and Kwortnik 2006, p. 380). In addressing ethical dilemmas in tourism, managers should stick on managerial foundations and practices and full adherence to CSR. The concept of CSR aims to create a more equitable international trade system (Hudson and Miller 2005). Mowforth and Munt (2003) argue that the hospitality and tourism industries are far behind other industries in relation to CSR and due to the absence of ethical leadership. Considering ethical practices in tourism industry, sustainability is taken into further importance. It should be articulated basing on principles of sustainability that are rooted in social, economic, and environmental equity. Rules of ethics provide the foundation for employee pride and motivation (Fleckenstein and Huebsch 1999). Articulating stakeholders’ desires is a challenge yet can be fulfilled successfully through holding and believing into management principles and practices including organisational and individual commitment to CSR. This is a counter argument relevant when considering ethics and stakeholders in the wholeness of both hospitality and tourism industries.

    Ethical decision making poses danger on unethical or selfish motives of stakeholders as seen on their unjustifiable desires. Thus, managers should know how to classify ethical dilemmas and react to such in the best and most acceptable ways possible. According to Hudson and Miller (2005), ethical decision making is also expected to be affected by the type of ethical dilemma being faced by, and level of ethical education of the managers. It must be remembered that hospitality and tourism industries are among the global industries that work with a diversity of cultures, moral and ethical values, thus, it necessitates a solid foundation of principles and practices. This is the moral pattern that every international standard hotels and resorts should be interested into. Managers are to be educated and trained to compare outcomes to the various stakeholders for each promising decision and decide on the choice that has the best outcomes for greater number. Because, organisation’s ethical working atmosphere is strongly inclined to the overall management’s ethical conduct (Upchurch 1998), the positions of tourism managers and employees should assist in making certain or more appropriate, or at least better prepared managerial functions.

    More often than not, the moral ordeals that are faced by managers are difficult to describe as they are complex and complicated (Marnburg 2005). These ordeals might occur instantaneously and involve several factors of people, things, or circumstances. Interpreting and understanding managerial pursuits including complying or defying the desires of stakeholders is based on the manager’s own set of expectations toward behaviour that is or is not match with their individual standards and values. While managers are often subjected to ethical dilemmas where they need to lie, break certain law, cheat subordinates, and the likes, they feel that they need to occasionally participate in such behaviour as it is an implicit part of the working setting (Marnburg 2005). However, it is argued that such practices are simple yet open violations of moral standards.

    Reacting on stakeholders’ desires as example of workplace ethical case needs a concrete instrumentation based on virtues of justice, integrity, competence and utility. These virtues are expected in a manager’s complete personal disposition. For Fleckenstein and Huebsch (1999), the idea of impartiality, sound judgment, and correctness is exemplified in justifiable decisions that are made in response to some desires of stakeholders. Integrity and competence, on the other hand, are also significant factors to consider by the managers particularly in performance of their identified duties. Lastly, utility is a virtue that projects the principle of efficiency by providing the greatest amount of good to the greatest number. If managers are able to consider these virtues, identifying the merits of stakeholders’ desires is easier, thus, facilitating accountable and ethical decision making. Choosing what is good to the majority of stakeholders is prioritised if and only if the means used justify the end.

    Participation is also important aspect of determining the acceptability of stakeholders’ desires. Through participation, there are more opportunities of accumulating choices and solutions that a manager can choose in response to a moral dilemma. The consensus of other members of the management is needed in organisational ethical cases. It is expected that managers are able to communicate to other managers on issues affecting the workplace especially on cases where a certain department is governed by two or more managerial figures. The concept of who is to be blame or is anyone to be blamed is also considered. Relationships on individual’s performance and certain ethical dilemma are apparent, where “moral voice” is quite strong.  The behaviour being shown by the superiors in every moral situation in the organisation is often associated to outcomes. For example, a neglect of duty or lack of knowledge of operational and managerial matters is referent to coming up with poor judgments and decisions. No one is claiming or forcing managers to pursue in rationality, efficiency, and profit given the unconditional circumstance. However, it is the ethical codes that manipulate managers on how to act, what to do, or when to do things according to what is perceived to be standard and acceptable. Sometimes, managers become schizophrenic on their personal value systems (Pruzan 2004). But then again, it is always the ethical codes and the belief of what should be the most appreciate action based on morals are to be considered. This is also applicable on the instances of integrating managerial duties to stakeholders’ desires. For example, hotel managers wish to control the “moments of truth” for the basic purpose of ensuring the most efficient service to be experienced by the customers. But, this should be guide with high ethical standard that in return creates favourable results. Managers need to identify specific situations where temptations and potential dilemmas exist and the common reaction is for them to act according to clear corporate code of conduct for all the employees to understand, abide, and emulate. Wong (1998) affirms that an individual’s line of thinking about work ethics serves as his/her basic compass that will navigate him/her to act in accordance to what is right. The ethical beliefs of an employee affect their ways on coming up with rational judgment on any work-related concerns. 

    Responding to ethical dilemmas is a manager’s or leader’s concern. There are numerous ways used to promote business ethics such as drafting copies of codes of ethical conduct and are to be distributed as guidelines to employees in overcoming ethical dilemmas; involving employees to scheduled seminar-workshop and training programs concentrated on enhancing ethical behaviours; or providing in-house advisors who can be directly consulted during urgent ethical cases; and so on (De Mesa Graziano 2002). In conclusion, the duties of managers are always bounded on standard management principles and practices. Responding to the desires of stakeholders is an ethical dilemma in business. By classifying the merits of stakeholders’ desires on whether ort not valid or invalid, managers are expected to come up with what is right. Today’s managers, particularly those who are serving the hospitality and tourism industries, need to form an acceptable workplace environment that is guided with ethical behavioural guidelines undermining productivity and moral responsibility. Most people actually know that they are doing something wrong. The only difference is seen on their lack of personal fortitude or courage and inability to make the right choice.

     

     

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