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Cesar Ritz Colleges Switzerland

Master of Arts in Entrepreneurship for the Global Hospitality and Tourism Industry

The Business Case Resolution–Leadership Model Critical Analysis of Pho HoaDorchester

Submitted on:

Friday 26 February 2021

By: Ruiduo Mei

Student Number: 744044

Student ID: 100563617

Word Count: 2465

Submit to: Alessandro Cavelzani

7HO740 Leading Success through Human Capital

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Table of ContentsExecutive Summary…………………………………………………………………………………………. 31.0 Literature Review………………………………………………………………………………………..31.1 Leadership……………………………………………………………………………………………… 31.2 Situational Leadership Theory………………………………………………………………….. 41.3 Path-Goal Theory……………………………………………………………………………………. 61.4 Four-Drive Theory……………………………………………………………………………………8

2.0 Case Analysis…………………………………………………………………………………………….. 92.1 Case Summary…………………………………………………………………………………………92.2 The Leadership in the Case…………………………………………………………………….. 102.3 Evaluation……………………………………………………………………………………………..10

3.0 Recommendations…………………………………………………………………………………….. 12Reference List…………………………………………………………………………………………………13

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Executive Summary

This report is about a critical analysis of leadership in the case of Pho Hoa Dorchester,

a Vietnamese restaurant. This report adopts the method of literature review. This

report reviews the literature from four dimensions: leadership, situational leadership

theory, path-goal theory and four-drives theory. Then the case is analyzed and

evaluated according to the relevant theories in the literature review, and

recommendations are given. The results show that the situational leadership theory is

not applicable to this case because of the influence of Vietnamese culture on

employees' leadership style preference. The path-goal theory and the four-drives

theory can provide recommendations for the management of Tam. Based on the

path-goal theory, most employees of Pho Hoa Dorchester belong to the submissive,

which requires Tam to adopt the guiding leadership style for the directive. In terms of

the four driving forces, Tam lacks the consideration of comprehend and defend, and

needs to incorporate them into the development of the action plan.

1.0 Literature Review

1.1 Leadership

Leadership is the art of mobilizing people to work for a shared vision (Wang,

Chontawan and Nantsupawat, 2011). It is the art covering foresight and planning,

communication and coordination. Harold Koontz believes that the essence of

leadership is power (Koontz and Weihrich, 2010). The concept of leadership evolved

from leaders. In the early studies, the research on leadership is mainly focused on

leadership characteristics, leadership mode, leadership behaviour, leadership style and

leadership contingency. In earlier research, generally regard lead as the process in

which leaders exert influence on followers (Kark and Shamir, 2013). The sum of

influences power generated in this process is leadership. And this kind of influences

power is usually based on professional knowledge, people respect and personal traits

to achieve organizational goals by influencing followers' behaviour (Oc and Bashshur,

2013).

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Leadership traits theory is about discovering the commonalities of outstanding leaders.

W.Henry points out that successful leaders should possess twelve qualities, such as

good organizational ability, self-confidence and quick thinking (Henry, 1998). This

point is supported by C.A.Gibb's work. C.A.Gabb found that leaders with excellent

leadership tend to possess seven traits, such as intelligence and eloquence (Gibb,

1947). However, in general, leadership trait theory has some limitations. There is no

single trait that is a sure predictor of excellent leadership. Because it ignores the

relationship between leadership effectiveness and the employees and the situation

they are in.

The emergence of transformational leadership theory has brought change.

Transformational leadership refers to the leadership that stimulates and expands the

high-level demands of employees by making employees realize the significance and

responsibility of the tasks they undertake, so as to make them put the organization

interests above their interests (Wang, Chontawan and Nantsupawat, 2011). The

emergence of this theory indicates that scholars gradually shift the focus of research

to the collective’s characteristics and its relationship with a specific situation. The

following, this report will conduct a literature review from three aspects: situational

leadership theory, path-goal theory and four-drive theory.

1.2 Situational Leadership Theory

Situational leadership theory, which emphasizes that in varying situations, leaders

need to adjust their leadership style to adapt to different requirements in specific

situations (Northouse, 2021). Different from traditional leadership theories, situational

leadership theory breaks the outdated thinking mode of binary epistemology, which

emphasizes more that leaders should be flexible.

Ken Blanchard believes that every employee has their career path and personality

traits. Therefore, different employees need to match different leadership styles.

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Similarly, the same employee needs different leadership styles in different

development stages and different work tasks (Blanchard, 2018). Therefore, based on

the leadership life cycle, he and Paul. Hersey divided leadership styles into four

leadership styles from two dimensions: directive and supportive (Figure 1).

Figure 1: Situational Leadership Styles

Source: atodorov, 2014

Among the four leadership styles, employees are also divided into four different

development stages. New employees are usually at D1, and they are not fully

prepared for the job. Leaders need to take a directing approach to guide employees.

Leaders need to tell employees exactly what needs to be done and how to do it. When

employees are in D2, the leader needs to take a coaching approach to help employees.

Make employees achieve a certain level of confidence and ability, to improve

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productivity and work efficiency, become high-performance employees; When

employees are in D3, the leader needs to take a supporting approach to match. Usually,

employees have the certain ability but lack confidence at this stage, so they need

psychological and atmospheric support and encouragement from leaders to help them

establish confidence. When employees are in the D4 stage, leaders should adopt a

delegating approach, and give full authorization and trust to employees. In order to

obtain the best work effect, employees are fully responsible for tasks (Lynch, 2015).

In summary, an excellent situational leader needs three core competencies: Judgment,

flexibility and building good partnerships. There is no best leadership style, only the

most appropriate leadership style. Only by correctly judging the stage employees are

in, and flexibly adjusting the leadership style accordingly, and reaching an agreement

with the individual development stage of employees, can the organization achieve the

best performance.

However, situational leadership theory also has a limitation. Demographic

characteristics will influence employees' preference for leaders' leadership style

(Northouse, 2021). Situational leadership theory doesn't take this into account.

1.3 Path-Goal Theory

Path-goal theory is a contingency theory developed by Robert House. The theory aims

to explain how to motivate employees to achieve specified goals. This theory is based

on expectation theory and situational leadership styles (Northouse, 2021). In other

words, excellent leaders need to help employees by clearly identifying their work

goals and paths to their achievement, removing potential obstacles and providing

support, making it easier for employees to do their work (Figure 2).

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Figure 2: Path-Goal Theory

Source: Confluence, 2018

According to path-goal theory, leaders' behaviour patterns can be divided into four

types: directive, supportive, participative and achievement-oriented. And according to

personality characteristics, employees can be divided into four types: team,

submissive, dominant and self-judgmental. Team-based employees need to match

supportive leaders. They want to be cared for, and a warm environment can increase

their enthusiasm for work. Submissive employees need to match directive leaders.

They need straightforward task's objectives and structure. Dominant employees need

to match participative leaders. Let them participate in specific jobs and express their

views. Self-judgmental needs to match achievement-oriented leaders. Make them

passionate about the challenges they need to accomplish (Li, Liu and Luo, 2018).

In general, the application of path-goal theory follows a specific procedure. Firstly,

the leader needs to make a correct judgment on the personality characteristics of

employees; Secondly, the leader should have an accurate understanding of the goal

and environment of the task; Finally, leaders should adopt appropriate incentive

measures according to the changes in the actual situation.

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The path-goal theory also has some limitations. In path-goal theory, the leader bears

most of the responsibility (Northouse, 2021). It is easy for employees to become too

dependent and lose the ability to carry out tasks independently.

1.4 Four-Drive Theory

The four-drive theory refers to the four basic emotional drives of human beings:

acquire, bond, comprehend and defend (Meske, Junglas and Stieglitz, 2019). These

four drives underlie everything people do. Leaders should also follow these four

drives to motivate employees. Roy Choudhury believes that if one of the driving

forces is weak, even if the other three are strong, the overall incentive degree of

employees will be significantly reduced (Shafi, Khemka and Roy Choudhury, 2015).

Therefore, to achieve optimal performance, leaders should not ignore anyone driving

force.

Corresponding to these four driving forces, there are also four indicators to measure

employees' motivation: engagement, satisfaction, commitment and intention to quit

(Harisa Putri and Ronald Setianan, 2019). Chalofsky and Krishna found that bond

driving force had the most significant impact on employees commitment.

Comprehend driving force is closely related to engagement (Chalofsky and Krishna,

2009).

In general, if an organization can coordinate all the four driving forces well, it can

maximize the overall motivation of employees, to improve organizational

performance. The four driving forces are independent of each other. There is no

primary or secondary one, and they cannot be substituted for each other.

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2.0 Case Analysis

2.1 Case Summary

This case mainly tells a story about a family business of Pho Hoa Restaurant in

Dorchester. Thanh Le is the founder of the restaurant. He joined Pho Hoa Noodle

Soup as a franchise in 1992, and to establish Pho Hoa Dorchester. He now wants to

hand over the restaurant to his eldest son, Tam Le, and enjoy his retirement. His eldest

son, Tam, has been helping the restaurant since he was a child and has accumulated 15

years of experience. He is now the general manager of the restaurant. Before

becoming the general manager of Pho Hoa Dorchester, he studied for an MBA and

gained operational experience at other restaurants. Duong Le is Tam's uncle. Has rich

experience in restaurant operation. He currently serves as the unofficial front-of-house

manager at Pho Hoa Dorchester. At the same time, when the kitchen needs help will

also be involved in the kitchen.

Currently, Tam faces three significant problems before taking over Pho Hoa

Dorchester. The first is how to build effective leadership in the employees. Tam and

his family are of Vietnamese descent, as are the restaurant's employees. In Vietnamese

culture, respect and obedience are mainly based on age. Tam is younger than all of the

restaurant's key employees. He worried that he would not establish effective

leadership when he took over the restaurant.

The second problem is how to overcome cultural barriers in the process of improving

restaurant operations. Due to the influence of Vietnamese culture, the waiters in the

restaurant are very resistant to having a positive interaction with customers. This will

undoubtedly reduce the efficiency and performance of the restaurant, and reduce the

income of the restaurant.

The final question is how to establish a structured organizational and management

strategy. Tam's father, Thanh, runs the restaurant by instinct and experience. There is

no formal organizational structure and management process for both the

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front-of-house and the restaurant’s kitchen, and it is the most uncomplicated

management by the most veteran employees. For example, Tam's uncle.

2.2 The Leadership in the Case

In this case, Tam's father relied on his intuition and experience to manage his

employees. The employees obeyed his instructions unconditionally, based on respect

for the elders in Vietnamese culture. Since Tam was younger than all the key

employees, it was challenging for him to establish effective leadership after he took

over the restaurant. In this case, Tam used the strategy of improving the restaurant

environment and raising the salary to motivate employees in another restaurant

before.

2.3 Evaluation

Under the Situational Leadership Theory, Tam's father, Thanh, had used a directing

leadership style for managing his employees in this case. Give them clear work

instructions, and the employee obeys his absolute authority. Thanh's leadership is

based mostly on people respect. In Vietnamese culture, elders are treated with

unconditional respect from others.

In terms of personal development stages, Pho Hoa Dorchester employees are mostly

in the D1 or D2 stage. They don't have a lot of relevant work experience. They needed

to match the directing leadership style, which was also consistent with Thanh's

leadership style. But for the few back kitchen workers and Tam's uncle Duong, they

are all in the D4 stage. They have a wealth of relevant work experience. Directing did

not match the leadership style they required. They need to match Delegating

leadership style.

However, for Tam, the situational leadership theory is not applicable. Because the

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situational leadership theory does not consider the influence of employee

demographic characteristics on leadership style preference. In this case, the

employees were all of Vietnamese origin. Tam was too young to gain their respect.

Even if he has good expertise. This weakens Tam's power and prevents him from

establishing effective leadership.

The path-goal theory is more applicable to this case. Tam's plan list shows that he has

defined the goals that employees need to achieve and the essential path to

implementing the goals (Figure 3). Increasing revenue is the goal, improving service

quality and achieving consistency is the path. Tam is also well aware that he needs to

overcome cultural barriers to achieve his goals. Based on this, he developed incentive

and support programs, such as raising salaries, training employees and optimizing

working conditions.

Figure 3: Tam’s To-Do List

Source: Pho Hoa Dorchester, 2017

But based on the four-drives theory, Tam's plan does not take into account the

comprehend and defend aspects. He's only thinking about acquire. And the bond

based on Vietnamese culture is always there. In the four-drives theory, all four driving

forces need to be considered. The weakness of any one of the driving forces will

reduce the overall motivation of employees.

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3.0 Recommendations

In this case, Tam has excellent judgment and decision. Have a clear understanding of

the goal and paths. Based on the path-goal theory and the four-drives theory, four

recommendations will be given for the problems Tam faces.

First of all, since most of Pho Hoa Dorchester’s employees are submissive, Tam can

manage them with a directive leadership style. Set clear and understandable goals and

procedures for their work. And set up practical indicators for regular supervision and

management. But for a small number of kitchen employees and his uncle, Tam needs

to adopt the style of achievement-oriented leadership style to manage. Set high goals

and give them more autonomy. Employees lack respect for Tam due to cultural factors.

Tam can enhance his power by leveraging his expertise and great personality traits, so

as to build effective leadership.

Secondly, for cultural barriers in the operation process, Tam can design the culture of

its restaurant based on the Vietnamese culture. To convey a sense of identity to the

staff and improve the stability of the restaurant. Moreover, Tam can design reasonable

training and reward policies to motivate employees to break through cultural barriers

and enhance the quality of service.

Thirdly, Tam should let employees understand their importance and significance to

the restaurant, so that they feel they have contributed to the restaurant. And design

transparent and fair process and mechanism, and build trust with employees.

Last but not least, Tam also needs to survey employees satisfaction and feedback

regularly. So that he can adjust accordingly at any time. Because employees are not

immutable, when their development level changes, their demand for leadership style

will also change. Tam needs to adapt his leadership style to their changes continually.

A good leader is often a fickle person. He will adjust his leadership style in time

according to the employees’ development and changes in the environment.

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Chalofsky, N. and Krishna, V., 2009. Meaningfulness, Commitment, andEngagement:The Intersection of a Deeper Level of Intrinsic Motivation. Advances inDeveloping Human Resources, 11(2), pp.189-203.

Gibb, C., 1947. The principles and traits of leadership. The Journal of Abnormal andSocial Psychology, 42(3), pp.267-284.

Harisa Putri, W. and Ronald Setianan, A., 2019. Job enrichment, organizationalcommitment, and intention to quit: the mediating role of employeeengagement. Problems and Perspectives in Management, 17(2), pp.518-526.

Henry, W., 1998. Science, Politics, and the Politics of Science: The Use and Misuse ofEmpirically Validated Treatment Research. Psychotherapy Research, 8(2),pp.126-140.

Kark, R. and Shamir, B., 2013. The Dual Effect of Transformational Leadership:Priming Relational and Collective Selves and Further Effects onFollowers. Transformational and Charismatic Leadership: The Road Ahead 10thAnniversary Edition, pp.77-101.

Koontz, H. and Weihrich, H., 2010. Essentials of management. 1st ed. New Delhi:Tata McGraw Hill Education Private Ltd., pp.309-332.

Li, G., Liu, H. and Luo, Y., 2018. Directive versus participative leadership:Dispositional antecedents and team consequences. Journal of Occupational andOrganizational Psychology, 91(3), pp.645-664.

Lynch, B., 2015. Partnering for performance in situational leadership: aperson-centred leadership approach. International Practice Development Journal,5(Suppl), pp.1-10.

Meske, C., Junglas, I. and Stieglitz, S., 2019. Explaining the emergence of hedonicmotivations in enterprise social networks and their impact on sustainable userengagement. Journal of Enterprise Information Management, 32(3), pp.436-456.

Northouse, P., 2021. Leadership: Theory and practice. 2nd ed. [S.l.]: SAGEPUBLICATIONS, pp.89-146.

Oc, B. and Bashshur, M., 2013. Followership, leadership and social influence. TheLeadership Quarterly, 24(6), pp.919-934.

Shafi, A., Khemka, M. and Roy Choudhury, S., 2015. A new approach to motivation:Four-drive model. Journal of Human Behavior in the Social Environment, 26(2),pp.217-226.

Wang, X., Chontawan, R. and Nantsupawat, R., 2011. Transformational leadership:

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effect on the job satisfaction of Registered Nurses in a hospital in China. Journal ofAdvanced Nursing, 68(2), pp.444-451.