Italian and British Cultures and Management Styles

¶ … Italian and British Cultures and Management Styles in Tourism: Q. Hotel

A Critical Analysis of Italian and British Cultures and Management Styles in Tourism:

Q Hotel

Italy is a country in a stage of transition. It is no longer a predominantly agrarian society nor yet a fully industrialized economy. It is also a land of striking contrasts, with no unified social or economic patterns. As a society, Italy is centuries old; as a modern sovereign state it was born but yesterday. The very nature of the political unification process probably accounts for some of the disunity. It was not a broad-based movement but occurred predominantly under the auspices of one family, the Savoys, who succeeded in expanding their influence and political rule throughout the country (Rosenzweig & Nohria, 1994). The masses participated only vicariously through national figures and agitators, such as Garibaldi, Mazzini, and Cattaneo, whose dreams of a republican democracy based on wide popular support and local autonomy were largely frustrated. This political disunity, evidenced by the lack of identification between individual citizens and the state, explains in part the emphasis upon the absolute loyalty to family groups and permeates all aspects of Italian life.

I. Identification of Problems

Fair treatment at work: Equal opportunities and anti-discrimination law

Sex and race

Within Europe only Britain deals with race discrimination in a similar way to sex discrimination for persons seeking employment and those in employment. The Sex Discrimination Act 1975(sex and marital status) and the Race Relations Act 1976 (race, color, nationality, ethnic and national origin) are designed to prevent three types of discrimination - direct, indirect and victimization, which can include harassment. 8 Customers are within the scope of sex discrimination law because it is unlawful for an employer to discriminate on sex grounds in the provision of goods, facilities or services as part of a business, such as service in a restaurant or the letting of rooms. If race (or sex) is a genuine occupational qualification, then an employer can lawfully discriminate in favor of a person from a particular racial group (Welsh, et al. 1993). If an employer refuses to train a woman simply because she is a married, that is directly discriminatory. The imposition of an age requirement for a post might be indirectly discriminatory where the effect is that a significantly smaller proportion of men, women or married persons are able to comply with it compared to persons of the opposite sex or single persons. Both Acts cover selection, promotion, transfer, training and other benefits, but pay and pensions are within scope of equal pay legislation. Two separate bodies, the EOC and the CRE, exercise specific responsibilities for this legislation (Prahalad & Doz, 1987).

There is no maximum limit on the amount of compensation that employment tribunals may award to a successful claimant. Although only a very small proportion of total cases reach tribunal (most are settled or disposed of by other means or withdrawn), in 2000/1 compensation of £3.75 million was awarded in sex discrimination cases. The highest award was £1,414,620 and the median award £5,000 (Wagner, 2006). However the number of claims dropped sharply from 17,200 to 10,092, and those that are made are becoming increasingly complex. Victims of race discrimination fare less well, with total compensation standing at £0.75 million, the highest award £66,086 and the median award £5,263 (Rokeach, 2003).

In critique of the effectiveness of extant British anti-discrimination law, Rokeach (2003) notes that the emphasis is to desist from doing negative things. There is no legal requirement to do anything positive to promote equality such as workforce monitoring or attempting to increase the proportion of under-represented groups in the workplace. Positive discrimination such as preferential hiring quotas is unlawful. Adler, (2006) also argues that HRM concepts and policies perpetuate rather than challenge gender inequality (Prahalad & Doz, 1987). The reality of work intensification, increased surveillance and managerial control, and the shifting of risk to employees revealed in more critical empirical reviews of HRM have a disproportionate effect on women and other disadvantaged groups. In pursuit of flexibility, cost-cutting 'hard' HRM has utilized and underpinned existing sex segregation, with the core being defined partly by reference to masculine attributes. Perceptions of women's (lower) commitment also shape the core-periphery, determining who is hired, trained and developed. Assessment in selection, appraisal and reward needs to be understood in terms of power-based relations.

Sexual harassment

Harassment is unwanted behavior of a sexual nature including physical, verbal and non-verbal behavior. In the U.S. The company is responsible for a manager's persistent harassment (Rokeach, 2003). The issue of what constitutes a hostile environment has proved difficult to define and sexual harassment need not be so severe as to cause psychological damage. Employers cannot seek a judgment to dismiss charges unless they have a properly implemented policy (Adler & Jelinek, 1986). Where there is no policy, employers will be liable for the hostile environment created by supervisors (Adams, 1991).

Harassment is a pervasive and frequent occurrence (Adams, 1991). Managers and customers can be the perpetrators of sexual harassment ((Wagner, 2006). It mainly affects women, reflecting the gendered division of work and existing power differentials (Adler, 2006). Customer harassment is one of the least rewarding aspects of the interpersonal relationship, and is exacerbated where service staff are Italy has a stronger legal framework supporting women, but job opportunities are limited and favorable maternity rights appear to be damaging women's employment prospects. Women returners are considered out of touch, and they are offered chambermaids' jobs. Family-friendly policies are unknown, even to large hotel groups. The pay gap is smaller because all sectors are regulated by legally binding collective agreements. Some employers pay above the minimum in cash to avoid higher tax and social insurance costs (Youndt, et al. 1996).

In the UK increased opportunities are in numerically flexible jobs which are vulnerable to economic fluctuations. As in Italy, restaurant and bar jobs are contingently gendered, as employers seek cheap labor of either sex (Wagner, 2006). Women are largely excluded from kitchen work, but not from night work, the reverse of what is observed in Italy. Company economic performance is the most important factor in setting pay. There is greater awareness of gender issues and sometimes they are encouraged to sell sexuality or to flirt (Adkins, 1995; Gilbert et al., 1998). The more authentic the performance, the more difficult it is for the customer to recognize there is no promise of associated consequences, which may be exacerbated by alcohol (Worsfold and McCann, 2000). Individual employee re/action may make things worse, as most managerial harassment comes from an immediate superior or more senior manager. The extent of harassment is likely to be under-reported, unless there is a strong policy and effective channels for challenging such behavior that by-pass superiors. Consequently individuals sustain stress and poor working relationships, and may quit.

Tipping Culture

UK

Staff keep cash tips, either individually or on a pooled basis, and do not pay tax on them, unless they are declared. Staff working in pubs, bars and restaurants are more likely to benefit from tips than hotel staff. Staff are not entitled to receive tips or a service charge that are added to a credit card in addition to the NMW, although employers can use these payments to top up pay to the level of the NMW. This situation was finally confirmed by a ruling of the European Court of Human Rights in 2002. Where tips are paid into a tronc, the tronc master shares them among employees who are taxed on them (Weimer, 2008).

Italy

Restaurants may add 10-15 per cent to meals but customers are normally expected to add 10 per cent. Credit card tips are passed on to waiting staff.

II. Solution Proposal: Management Style, Structure, Cultural Awareness and Reporting Methods.

In Italy, high-level managers and professional staffs are regulated by different laws, have separate unions and collective bargaining, and have had divergent histories. For these reasons, the issues relevant for the two groups will be treated separately. It is important, to note that the Italian term is more restrictive than the American one and includes only higher levels in each of the traditional management functions such as advertising, sales, financial analysis, and personnel. Employees such as professionals and technicians, who in the United States would be considered management, are defined here as cadres. In Italy, managers have been treated differently from other employees. This division was based on the actual job functions performed within the firm and was reinforced by legislation. However, particularly in the last decade, such differences have been blurred by transformations in the context of jobs, the size and structure of firms, and class and group identifications in Italian society. Differences in legislation remain, however.

Managers, who were once part of a small and elite group, have lost their previous status and prestige while gaining in numbers. Regarding their power, in the public industrial sector they lack autonomy because of unavoidable political interference, and in the private sector their role is also obscured by the active presence of owners. This is true in large private corporations (for instance FIAT, Pirelli, or Olivetti) and even more so in small enterprises that constitute the more active and innovative section of the economy. In Italy managers have played a minor role because of the late development of capitalism and continuation of the owners' leading role (Adler & Jelinek, 1986). These factors have also prevented the development of a managerial culture and the absence of business school is a symptom of this situation. The extensive economic role played by the government has not created a substitute group of public managers with recognized professional abilities.

The rapid growth of the cadres, professional and lower-level workers, has been another major and continuous development in Italian industrial relations. A critical issue for this group has been the flattening of wage differentials caused by egalitarian policies and high inflation. Finally, the economic environment of Italy, in which small, specialized firms are concentrated in certain geographical areas, has played an important role in industrial relations (Aran & Walochik, 2007). For instance, in a 2006 census, the average firm in the industrial sector had 4.6 employees, and 81% of all firms with 38% of total employees were operated by single proprietor managers. Also, Italy has suffered from high levels of inflation for many years. The average rate of price increases has been 16.6% versus 9.2% in the United States (Rosenzweig & Nohria, 1994).

Italian managers display very low levels of inter- and intra-firm mobility: 67% have never changed firms and 16% have only been in two (Aran & Walochik, 2007). The typical manager has been hired at age 26. Even within the same firm, 50% have never changed their area of activity, which to some extent is a reflection on the general practice of tying a large percentage of a manager's compensation to seniority. Permanence within the same firm is probably the necessary condition of access to the managerial role.

Managers are also excluded from protection of employees against dismissal, an area in which legislation has severely restricted employer prerogatives. As a result, managers have sought to obtain some protection from collective bargaining. In addition, in order to hire a manager, the firm does not have to follow the regular practice of filing a request with the special commission that refers the unemployed (Welsh, et al. 1993).

Employment contracts in Italy usually do not have time limits, with the exception of certain types of work such as seasonal jobs. For managers, instead, the contract cannot be longer than five years and managers can leave after three years with notice (Bartlett & Ghoshal, 2010). At the end of the employment period, managers have the legal right to severance pay equal to 13.5% of their annual pay, which is payable to them at termination or to their heirs. Severance pay also is guaranteed in case of bankruptcy. Finally, the employer can establish noncompetition agreements after the expiration of a contract. These agreements have to be limited in terms of content, geographical area of applications, and time, and the employees have to receive compensation for them.

Conclusions

The traditional division established long ago between managers, white-collar employees, and blue-collar workers has been challenged by transformations that occurred in the early 1970s. Managers are no longer a small elite selected by the employer; they have become a profession. Consequently, educational and careers have become more standard. At the same time, market forces are more important in shaping work conditions. In terms of gross pay levels, managers have been able to maintain their position compared with other employees. More unfavorable, however, have been the impact of inflation on tax burdens and pensions, both established by legislation. Regarding taxation, further changes will be likely, especially if the government succeeds in preventing tax evasion by autonomous workers, and if fiscal pressure could be spread more evenly. With respect to pensions, individual company plans will become more widespread and more effective in integrating the pension system established by legislation (Rosenzweig & Nohria, 1994).