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Role Of Empowerment In Hospitality Industry

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2.4 Empowerment in hospitality

Empowerment has proved to be important in many industries such as manufacturing industry, management industry, healthy care industry, sales industry, and in the service industry. In the service sector generally, empowerment is a very efficacious managerial control tool with significant effect on behavioral and attitudinal dispositions of service employees (Chebat and Kollias, 2000). Another research conducted in Australian banks indicated that it had a favorable effect on productivity, performance and service quality (Geralis and Terziovski, 2003).

Also there is an evidence supports empowerment, one study of the top 150 suppliers to the big three car companies found that employee empowerment had a direct positive impact on growth in return on investment (ROI) and market share, as well as an indirect effect via three quality performance dimensions (company reputation, pre-sale customer service and responsiveness to customers) (Nielsen and Pedersen, 2003).

Eventually, management by empowerment is more than just a trend; it is quickly becoming the manner by which successful hotels operate (John, 1997). It is considered from the most important elements in hospitality innovations (Ottenbacher, 2007; Ottenbacher and Gnoth, 2005). It is considered from benefit and incentive programs that many hospitality organizations adopting it to motivate their employees (Jeff, 1992).

Empowerment appears more important in the hospitality industry in two

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