As it has already been mentioned above, Mr. Faruqe is leading a company that has the situational analysis strategy; furthermore, Mr. Faruqe’s strategy in decision making is by analyzing the situation, understanding circumstances perfectly and going through the possible forms of solution before making any decision.
Due to the focus on the situation, the situational approach emphasizes the importance of situational thinking. Using this approach, managers can better understand what methods will be more conducive to the achievement of organizational goals in a specific situation. For instance, Mr.Faruqe had a contract of renting 15 apartments to a company for a long period. Before making any decision, he analyzed the process and got all the information required for the situational analysis: he checked how high the prices on the market were, whether his hotel was going to lose money because of the long term renting, as well as whether the renters needed furnished apartments or unfurnished.
Nowadays, the situational approach is by far one of the most promising approaches in the modern science of management. On the one hand, it is currently one of the most developed tools for consistent, comprehensive, systematic analysis of the situations to make important management decisions. On the other hand, it allows identifying the main trends that determine the dynamics of the decision making situation, and the main control actions that may have an impact on the situation development (Wagner-Tsukamoto, 2003).
The situational approach allows the leader, along with a holistic review of the management object and its operation in the external environment, to effectively manage a particular decision-making situation. This approach allows making decisions based on analysis and understanding of the situation, the dynamics of change, rather than based on the traditional principle of tries and error. Ability to perform preliminary analysis of the situation and foresee its expected changes makes situational approach much more efficient and helps avoid significant losses of time and resources (Wagner-Tsukamoto, 2003; Miller, 2011).
Based on the literature of Marcus and Van Dam (2007), a manager has his own influence on the work of subordinates, and building relationships with them, a manager uses and relies on official authority base and its sources. Leadership as a specific type of management relationships is based more on the process of social action, particularly on the interactions in the organization. This process is even more complex, requiring a high level of interdependence of its members. In contrast to actual management, leadership assumes the existence of followers rather than subordinates in the organization.
Mr. Faruqe is a democratic manager and prefers influence mechanisms appealing to higher-level needs: the need for belonging, high purpose, autonomy and self-expression. Real democratic manager avoids imposing his will on subordinates.
Organizations with the democratic style dominating are characterized by high decentralization of opportunities. Subordinates take an active role in making decisions and enjoy broad discretion in performing tasks. Often enough, having explained the goals of the organization, the manager allows subordinates to find their own goals in association with those he had identified. Instead of practicing firm control over subordinates in their work, a manager traditionally waits until the work is completed in order to evaluate it (Miller, 2011). Thus, the manager acts as a connecting link providing compliance of the objectives of the production group to the organization’s objectives as a whole, and making sure that the group receives the necessary resources for it. The manager makes a lot of effort into creating an atmosphere of openness and trust so that if subordinates need help, they would not hesitate, and could address the manager and feel part of a team.
Mr. Faruqe believes that every person has one’s own motivation and one’s own way to be motivated, and in order to do the required task perfectly, some employees prefer the financial motivation and others emotional motivations.
Generally, each employee needs to feel comfortable with the atmosphere and the environment of the company he/she is working at to be motivated. For some people, their personal value is a major aspect for them to be motivated, so it is a big responsibility for the manager, especially the HR manager, to give them a personal value and get the vision of the company clearly.
In QNH, the following gradation of motivators is established. External motivators include:
• Cash bonuses, rewards;
• Social package (mobile connection, Internet, children’s tours, gyms, kindergartens);
• Vacation permit (or partial payment of a trip);
• Change of the office;
• Invitation to an important event;
• Corporate car;
• Assistance in getting an apartment on credit;
• Apartment rent payment.
Internal motivators adopted in QNH include:
• Ability to speak at meetings (prove that a person has an opinion and may be useful for the company);
• Ability to change a career (try oneself at the other position in the same field);
• Ability to change the field (shift from one department to another);
• Encourage giving one’s own ideas;
• Comfortable working space (air conditioning, chair, comfortable furniture);
• Ability to work remotely (from home);
• Keeping a hobby satisfies the need for self-expression.
In general, the company’s management recognizes that effective management is primarily the ability of the leader to reveal of the most energetic and intellectual potential of his employees (Qatar National Hotels Company, 2012).
One of the main recommendations on the way is that a company should initially seek out and hire people with internal motivation (Miller, 2011). When companies hire employees, they are mostly interested in their level of their competence, rather than attitude to work. However, the attitude defines the motivation, which in turn has a major impact on employee’s commitment to training and quality work. So, why not to pick up personnel with high motivation? It is much easier to train a motivated worker than to motivate a qualified specialist.