Challenges and Strategies for Service Industry

The assignment analyzes various issues plaguing the service industry, particularly impacting business performance, brand image, and profitability. It highlights the need for effective management strategies to address these challenges. The report suggests solutions like implementing Lean production, employee involvement in planning and problem-solving, and formulating effective strategies by management teams.

Introduction to management

Table of Contents
INTRODUCTION ..........................................................................................................................................3
Main body ...................................................................................................................................................3
CONCLUSION...............................................................................................................................................7
REFERENCES................................................................................................................................................8

INTRODUCTION
Management is defined as the activity which includes management of people or activities
within an organization. It is the act of thing done through other people in an enterprise.
Management also involves various procedures such as planning, organizing, coordinating and
controlling of business. Effective management helps in driving firm towards success. It also aids
in identifying the appropriate solution to several business problems. Ineffective management can
give rise to other problems such as high employee turnover rate, low workers' morale, poor
performance lower productivity. In the present project, the various problems faced by an
organization have been highlighted. All the issues are interlinked with each other. The several
issues faced by Imperial hotel are decrease in sales and profitability of firm, high employee
turnover, ineffective working culture. The major reason of these issues are ineffective leader and
poor monitoring as well as control system.
The Purpose of the report is to develop the understanding about the procedures, as well as
practices of an effective management in an enterprise. This will be demonstrated IN context of
imperial hotel. The other objective of assignment is to identify the problem faced by company
and provide strategies or techniques which firm can use for dealing with complex situation.
Main body
Imperial hotel is well recognized as well as most famous hotel in London, who has been
rated as four star for the quality of food as well services provided by company. The hotel has 25
outlets in UK which has allowed business entity to deliver product or services to wide range of
customer. Clients have high expectation related to the services provided by an enterprise.
However, cited business venture has to face several issues due to ineffective management which
further has adverse impact on the firm growth as well as success (Edgeman, Bourne, Bititci and
Nudurupati, 2017)
Problem Statement
Employees Absenteeism- The first problem that has been identified from the given case
study of Imperial hotel is that the firm has not able to provide satisfaction to its customer due to
the lack of human resource. This factor has adverse effect on the sales as well as profitability of
an organization. It also has direct influence on the brand image as well as reputation of company.
The management team in an enterprise is required to develop their focus on identifying the needs
of customers and fulfilling the same. As this will support business entity in improving brand
image.

It is required by leader to make employees worker about the expectation of
customer and provides way which can be used by workers in order to deal or handle customer
micromanagement team in an organization should conduct research as this will help business
entity in identifying customer needs as well as perception about the company products or
services.
Problem 2: High employee turnover rate :It has been analyzed from the given from case
scenario that the other problem faced by the Imperial hotel is high rate of employee turnover
rate. The business entity has to face this issue due to present nature of employment. It has been
identified from the case study that , the human resource management is recruiting employees
from different nation or place. Human resource manager in a firm has decided so because this
will help organization in getting highly talented worker at low pay. The reason that has been
analyzed for higher employee turnover rate is low wages or salaries to workers. High employee
turnover has direct impact on the routine business activities and also on productivity. It also has
adverse effect on the total revenue. The firm also has to bear additional cost in terms providing
training to new candidates. Appointment of untrained staff has negative impact on the quality of
services that has been provided to customers. Due to this factor, cited business venture has to
handle as well as managed customer complains. Employee in an Imperial hotel has planned to
work for the competitors of firm due to the poor job experience and high level of dissatisfaction.
This fact also has result into the decrease in competitive strength of an organization. It has been
identified from the given case scenario , that new hotel manager has suggested human resource
management team to pay higher salaries or wages to workers, as he perceives that this will help
business entity in reducing the employee turnover rate. New manager also believes that bonuses,
appraisals, will assist firm in improving staff management by enhancing quality of human
resource management practices ( Wilson and Beard,2014)
Analysis of problem related to high employee turnover rate
Problem : Ineffective working culture: When interview has been conducted and several
questions related to reason for high employee turnover have been asked, for identifying the root
cause of the problem. Majority of employees who had provided justification related to leaving
the organization is poor perception about the working culture as well as environment in a
company. This is the main reason that the organization is facing difficulty in attracting new fresh
talented workforce. The another reason behind the high turnover rate is ineffective as well as
unsociable working hours. Due to which employees face difficulty in maintain work life balance
which has negative effect on their performance at workplace. This factor has lead to high level of
dissatisfaction among workers.
It is required by human resource management team in an enterprise to develop effective
policies as well as strategies to retain employees. Human resource manager or leader should

focus on identifying the needs as well as demands of employees and required to take high
initiatives to solves the problems faced by employee. Development of effective reward system
will help human resource manager in motivating workers to improve their performance and
increase their contribution in driving firm towards achievement of business goals.
Unhealthy staff schedule -The working hours at the London hotel was immoral and heavy
among the employee and the reason behind this can be found in the incompetence of the
management to properly execute task and workplace design, which is one of the core functions
of the management.
Ineffective reward or incentive system :
Problem : The another problem that has been identified is related to ineffective leader and poor
monitoring as well as control system.
Problem : Poor team working and inefficient use of information technology can lead to
additional cost for company. This factors have negative effect on the financial performance
of an organization.
Effective training to employees will also support firm in delivering quality a well as
standards services to customer in professional manner. It will also assist business entity in
achieving the objectives of customer satisfaction which further help firm in increasing sales as
well as profitability. Human resources' management team in Imperial hotel should promote team
work. As this will support human resource manager in maintaining healthy, effective working
culture. This activity will provide firm an opportunity to attract more number of highly talented
as well as skilled employees. It will also help employees in gaining technical knowledge as well
as skills that can be used by them for improving their performance at workplace.
The human resource management team in an enterprise is required to develop the
effective control system. Human resources' manager in a company can develop or implement
regulation which will assist in controlling the activities of employees.
Problem Poor operating as well control procedures has adverse effect on the
operational activity as well as productivity. It is required by leader to make employees worker
about the expectation of customer and provides way which can be used by workers in order to
deal or handle customer queries (Bianchi, Bovaird and Loeffler, 2017)
Theories as well as model which can be applied to solve different issues.
The other management approaches that can be adopted by Imperial Hotel for dealing with
high employee turnover rate. It is required by cited venture to adopt the human relation approach

of management. This approach states that manager in an enterprise should emphasize on
analyzing behavior of organization as well attitude of employees at workplace. Human relation
approach to management is based on the assumption that an enterprise can achieve its goals as
well as objectives only through the supports of employees and also management system. The
objective of this approach to management is to help company in improving business
performance. Human relation approach states that strong relationship between management,
organization as well as employees will help firm in increasing productivity and high level of
motivation among workers.
Another theory that can be applied by Imperial hotel for handling as well as managing
complex situation is equity theory. It will support business entity in reducing the employee
turnover. Equity theory have focus on increasing employee morale, rising productivity and
enhancing human relation. This theory is based on the assumption that it is essential for an
organization to emphasize on performance of employees as well as output generated by them. As
this activity help human resource management team in identifying the need of training by an
individual. Leader or manager should ensure that workers input within an enterprise is rewarded
and they have been appreciated for their performance at workplace. As this strategy will support
firm in increasing employee morale and encouraging workers to become more participate in
solving several business problem (Grant,2016)
Hierarchy need theory, is another management approach which can assist Imperial hotel
in overcoming complex situation and aid enterprise in dealing with serious issues. This theory
has been founded by Ma slow which states that employees have several needs which are required
to be fulfilled by employer at workplace. As fulfillment of desire or wants might have adverse
impact on individual performance within a company. It might also have negative influence on
employer behavior as well on working culture or environment. Failure to satisfy worker need
will encourage employee to seek other employment opportunities. It is required by human
resource manager in Imperial hotel to make proper training arrangement for workers. As this will
help employees in increasing their working efficiency and improving the quality of work.
Effective training will enable employee to get satisfied from their work and complete task on
time. It will further assist workers in development of self confidence as well as motivation in
them (Islam, 2016)
Theories of leadership and management that can improve the performance in the Imperial
Hotel:
Leaders as per leadership approach can adopt several styles which will help them
in giving appropriate direction to their subordinates. As per this approach, leaders are required to
develop qualities such as high influencing power, depth knowledge about the field, special

competencies, high influencing power etc. As this will help them in differentiating themselves
from other people at workplace. It is required by leader to establish fix criterion for monitoring
the performance of employees. As this will aid leader in eliminating the brassiness in the
procedure. It will also support leader in developing as well as maintaining strong relationship
with subordinates. High influencing power will assist leader in motivating people to participate
in decision making process as well as other business activities. All the rules of the company
should be properly planned and should be clearly defined in order to avoid indecency and
discrepancies in the setup. The policies, regulations and procedures of the organization should be
consistent in ad should be regulated equally on each employee irrespective of their position.
Strategies for reducing the problem
Improvement of the standard and levels of supervision within all departments
It is required by the management team in an enterprise to develop some standards
and explains the same to employees. As this activity will assist organization in improving the
quality of products as well as services. Establishment of standards will enable manager to
compare actual performance with standard. It also provides management an ease to identify the
performance gap and address the reason for same.
Improve a operations management system
There are some of the theories are total quality management encourage employees to participate
in the procedures and enables worker to make significant contribution in bringing the drastic as
well as positive improvement in quality of goods or services. It supports firm in achieving long
term success. This approach not only help in improvement of products or services but also aid
manager in maintaining or enhancing the quality of environment at workplace (Blanchard, 2010)
The Imperial hotel is required to implement advance technology within an enterprise, as this will
help business entity in developing innovative goods which will provide organization an
opportunity to attract more customers. It will also aid firm in reducing the cost of production.
With the support of technology employees in an enterprise will able to deliver quick as well as
standard services to customers, It will assist firm in developing as well as maintaining healthy
relationship with client.
Enhancing the quality of products
Total quality management approach is considered to be as process centered, as it
emphasizes on the procedure thinking (Hatch and Cunliffe, 2013) In context of operational
management an organization need to implement Total quality management system. As this
system will assist manager in developing effective working environment that can assist in the
continuous growth of an organization. Its help firm in improving their ability to produce high
quality to product and services to their customers. It’s aim for long term success through
customer satisfaction. Business entity can adopt Lean production approach as it will support an

enterprise in reducing the wastage at the time of workload and help firm in increasing level of
production.
Involvement of employee in planning and problem-solving operational challenges
 Involvement of staffs in planning for organizational operations would motivate the
workers or employees for carrying out business operations within the workplace fairly.
CONCLUSIONs
The report has concluded that there are several issues especially in service industry which
can create hurdles in the success as well as growth of firm. All these problems have direct effect
on business performance, brand image and also on the reputation of the company. These factors
to a great extent have impact on the sales as well as profitability of firm. It has been identified
from the study that all these issues cal be handled as well as managed effectively through proper
management.
The various strategies as well as management approaches has been suggested in this
project which can be used by Imperial hotel for dealing with several problems. It has been
required by management team in an organization top formulate effective strategies as this will
aid firm in coping up with complex situation.

REFERENCES
Books and Journal
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Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
P. Wilson, J. and Beard, C., 2014. Constructing a sustainable learning organization: Marks and
Spencer's first Plan A learning store. The Learning Organization. 21(2). pp.98-112.
Edgeman, R., Bourne, M., Bititci, U.S. and Nudurupati, S., 2017. Remastered, reinvented and
reimagined: evolving and merging performance management and measurement paths.
Measuring Business Excellence. 21(3). pp.209-213.
Bianchi, C., Bovaird, T. and Loeffler, E., 2017. Applying a Dynamic Performance Management
Framework to Wicked Issues: How Coproduction Helps to Transform Young People’s
Services in Surrey County Council, UK. International Journal of Public Administration,
40(10). pp.833-846.
Blanchard, K. H., 2010. Leading at a higher level: Blanchard on leadership and creating high
performing organizations. FT Press.
Hatch, M. J. and Cunliffe A. L., 2013 Organization Theory: Modern, Symbolic and Postmodern
Perspectives OUP Oxford.