Suitable Leadership Style for Service Industry in Bangkok

Abstract

The main research question for this study “which leadership style is the most suitable for hotel industry in Thailand”. This study adopted a case study of Centara hotel & Resorts hotel chain. Study was conducted using anonymous online questionnaire. The Structural Equation Modeling (SEM) was used to test structural relationship in the model between various variables in the study. The finding of this study suggested that there is a significant relationship between autocratic relationship, high turnover intention, and low job satisfaction. In addition, the study found significant correlation between transformational leadership and democratic leadership with high job satisfaction and low turnover intention. This finding suggested that autocratic relationship is an ineffective leadership style to govern hotel employees in Thailand. On the other hand, both transformational leadership and democratic leadership are both effective leadership style that can possibly enhance employee job satisfaction and reduce turnover intention. With consideration to the various departments in the hotel, the study also found that front office or reception, as well as food and beverage service department have significant correlation with democratic leadership style. Other leadership styles, including Laissez faire leadership, autocratic leadership, charismatic leadership, and transactional leadership show no significant relationship with employee job satisfaction and turnover intention. Thus, the finding of this study identified effective leadership style for hotel industry as transformational leadership and democratic leadership. The finding obtained from this study is novice and contribute greatly toward existing body of research as none of the past study have been conducted to investigate effectiveness of various leadership style in the context of Thai ever before. Lastly, this research is also extremely useful for hotel strategic human capital management to be able come up with the winning HRM & HRD strategy to get the right kind of leaders and potential successors in their organizations in a highly rivalry intensity of over-supply hotel industry.