Answer to Question #271239 in Management for abc

Question

Ashley, the CEO and Mike, the HR Director are always arguing about which approach is the best for enhancing the organisational effectiveness of their hospitality business. While Ashely is always in favour of the traditional Goal Approach, Mike believes in the contemporary Stakeholder’s approach. Keeping the above scenario in mind,

a. Explain how Ashley wants to implement the goal approach and bring out its loopholes. 

b. Why do you think that Mike supports the contemporary stakeholder’s approach? 

Answer 1

1)     

In traditional goal Approach, all objectives are set by the leaders of the hospitality organization. In this approach, Ashely wants to break the main down into sub-goals for each section of the business by the organization's leaders. Ashely plans the top management to set up goals and the same to be flown downward in the organization by the specific procedures.

The steps are as follows;

·        Identifying the purpose of the goal

·        Meeting with the employee

·        Developing a plan using the SMART model

·        Making sure the employee has what they need to accomplish the goal

·        Providing regular feedback

Loopholes

·        If there are difficult goals that management and the company are trying to accomplish, performance may fall due to incompatible actions.

·        Goals that are too far above an employee's skills and competencies can have a negative effect on the employee's performance and motivation to complete the goal.

·        More complex and difficult goals may lead to risky behavior in an attempt to accomplish the goals in a timely manner.

b)

Contemporary Stakeholders Approach provides a framework of management practices based on more recent trends, such as globalization, theory Z concepts, McKinsey’s 7-S approach, excellence models, productivity and quality issues. With the appearance of global entities like the World Trade Organization and the European Economic Community, we are all now operating in a global economy.

Mike supports this approach because it promotes fairness for everyone involved in the company and gives directors an objective. If directors keep stakeholders in mind, the entire company will stand to benefit from that frame of mind