Transformational leadership in the hospitality industry

In recent years, the hospitality industry has undergone major changes both within the industry and in its operating environment. Researchers have posited that in an environment of change, as described above, a visionary, or leadership style, would be most appropriate. The study, reported here, compared the use of transformational leadership style with the more traditional transactional style, and examined the effects of transformationalleadership on individual and organizational outcomes in a hotel management organization. Results suggest that transforma-tional leadership both impacts perceptions of leadership effectiveness and subordi-nate satisfaction, and clarifies the direction and mission of the organization. Key Words: transformational, visionary, leadership. After several decades of relative stability and steady growth, the recent history of the hospitality industry has been characterized by increasing complexity and a dynamic rate of change. Continuing stagnant economic conditions; merger, acqui-sition, and divestiture activity; overbuilding; a boom in the gaming segment; labor shortages; and an increasingly diverse workforce have resulted in considerable industry turbulence (Dobyns & Crawford-Mason, 1991; Elder & Peters, 1987). The demands placed on leaders in the hospitality industry have increased because the operating environment is less predictable. It is in this type of environment that transformational leadership is most needed, with the challenge to &dquo;both find and create a vision that is in some way better than the old one and to encourage others to share that dream&dquo; (Tichy & Devanna, 1986, p. 122). The authors would like to thank Professor Peter Rainsford from the School of Hotel Administration, Cornell University, for his assistance in the data collectio