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The effect of transformational leadership qualities on employee motivation in the hotel industry : Case study: Scandic Hotels Finland

Vanhatalo, Sofia (2017)

 
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Vanhatalo, Sofia
Haaga-Helia ammattikorkeakoulu
2017
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2017112918781
Tiivistelmä
Leadership and motivation are topics that have fascinated researchers already for decades. In the hotel industry, where customer satisfaction is to be guaranteed and customers’ expectations are to be exceeded, leaders’ ability to motivate employees to perform to the best of their abilities is being highlighted.

This research paper intends to understand the link between leadership qualities and motivation at Scandic Hotels Finland, the winner of Great Place to Work survey 2017. Scandic Hotels, the Nordic hotel operator has over 200 hotels in six countries. In Finland, there are around 1000 employees and 26 hotels as of 2017. The aim of this study is to give an overview of the most important leadership qualities for employee motivation and suggestions for solving motivation issues that team members at Scandic are experiencing.

Theoretical framework of this research paper consists of understanding the connection between leadership and motivation. In addition, some of the most famous leadership theories have been included to understand leadership in a broader perspective. The concept of transformational leadership was identified with key qualities to motivate employees and was chosen as a basis of this research.

Qualitative research method was chosen to gain in-depth understanding of employees’ experiences. Interviews were designed as theme interviews according to four transformational leadership dimensions and one transactional leadership dimension. All together 12 interviews were conducted at four Scandic Hotels Finland in October 2017. The interviews were held evenly in departments of Reception, Food & Beverage and Kitchen.

The results show that Scandic Hotels Finland are demonstrating several transformational leadership qualities, which encourage employees’ intrinsic motivation and arouse team spirit. Interviews revealed that especially freedom for employees to perform work and make independent decisions are important factors for motivation. In addition, rewards and recognitions contribute to employee motivation. The data revealed that problems with work environment can affect motivation levels strongly. The data did not indicate that there is a strong link with leadership qualities being the cause for motivation issues discussed with the interviewees.

The thesis project started in the spring 2017 and ended in December 2017.
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