The Impact of Digital Technology on Leadership and Management

This assignment delves into the effects of digital technology on business environments, focusing on its influence on leadership and management. It discusses how technology has changed internal management styles, such as accounting systems and human resources, and its impact on external management, including sustainability and environmental concerns.

Leadership and
Management for Service
Industries

Table of Contents
Introduction......................................................................................................................................3
TASK ..............................................................................................................................................3
Different classical management theories. ..................................................................................3
Role of leader and different leadership styles. .........................................................................4
The management and leadership style followed in Havez, Has and Tas chain..........................5
Digital technology affects internal and external management styles..........................................6
CONCLUSION................................................................................................................................6

Introduction
Leadership and management are the crucial elements of business organisation. It is
crucial to understand that leadership and management both are required for the success of the
company. Leadership is concerned with the ability of the people to attract them to work towards
the accomplish of business goals and objectives (Chepkwei, Wanyoike and Koima, 2017).
Whereas management is the process which deals or controls the entire operations and functions
of the organisations. The management is involved in planning, organising, directing and
controlling. Organisation undertaken in this report is Hazev restaurant which was the first
collaboration between the ‘Tas’ Restaurant Group and the ‘Haz’ Restaurant Group, who between
them control 10 restaurants within Central London and deals in hospitality industry. This report
will explain the classical management theories, role of leader and different leadership styles and
review that digital technology affects internal external management styles.
TASK
Different classical management theories.
Classical management theory was developed by the F.W. Taylor. This theory is also
known as scientific theory of management in which emphasis is given on the organisation and
not on the employees. According to this theory, the organisation is considered as a machine in
which human beings or employees are treated as a part of the machine (Mustapen and Rahman,
2017). It assumes that workers only have physical and economic needs and it does not
considered social needs of the people. Hazev will use this theory of management because it
considers the following concepts of ideal work place :
Hierarchical structure : Under classical theory of management, the workplace id
divided among the different units, departments or layers. At the top of the hierarchy, there are
owners or board of director who are responsible for setting long term objectives of the company.
Middle level managers takes into account the responsibility of looking after the supervisory level
while setting goals at the departmental level. At the lowest level where the supervisors work who
are accountable for managing everyday issues and problems and render training.
Specialisation : In classical theory of management, the large tasks are divided into
smaller one. This helps in assigning relevant roles and responsibilities to the people and

employees will be specialises in a single area. This is useful in maximising productivity and
efficiency and eliminates the need for workers to perform multi tasking.
Incentives : This theory assumes that employees are motivated towards the financial
incentives. It believes that when employee are provided with incentives they are motivated and
work harder which produces more productive results. Therefore, employees who owns this
potency will accomplished maximisation in increased production, profits and efficiency.
Bureaucratic theory of management : This theory of management was developed by
Max Weber which consist of straight guidelines and hierarchy. The theory is based on the rules
of the seniority which follows the guidelines and adhere to the strict processes (Nadeak and
Purba, 2014). For instance, when management will be required to perform specific task then this
style is highly appropriate because it provides strict set of rules and regulations from the
superiors to the employees and they are required to perform by following those guidelines.
Role of leader and different leadership styles.
A leader is a person who influences individual or group of people towards the
accomplishment of business goals and objectives. Leadership is very important in the Hazev and
leader will have different roles which will be required to be performed within the organisation :
Provide a vision : The leader is accountable for rendering visionary to the organisation.
This helps in making people aware about the objectives of the company and the way they can be
accomplished.
Focus towards actions : The fundamental leadership theory has been developed after
learning the behaviour of the successful leaders and identifying the specific actions that has led
to the accomplishment of successful outcomes.
Result oriented : The leader is goal oriented and all their actions and behaviour are drive
towards the attainment of business objectives.
Motivation : Leader is accountable for regularly motivating its team and other
individuals working within the organisation. Motivation is the power to influence people so that
they work effectively and efficiently towards the accomplishment of business objectives.
Training : It is the responsibility of the leader to provide training identify the need and
kind of training required within the organisation and render the same to the people (Ndungi,

2016). It is important not only for the development of the individuals but also for the efficiency
of the organisation.
Problem solving : Leader is responsible for identifying and analysing the problems
which are faced by the people. And then leader will devise the necessary solutions for the same
which will provide satisfaction to the employees.
Leadership styles
These styles are the way or manner in which the leader exercises or practices the
leadership within the organisation. The following is the different types of leadership style which
are discussed below :
Autocratic leadership style : In this type of leadership, the leader takes all the relevant
decision for the organisation and does not involves the suggestion or view of other people. Thus,
it has a considerable control over the staff and rarely or does not consider worker' s point of
view. It centralises power and decision making, gives orders, assigns tasks and duties without
consulting the employees.
Democratic leadership style : In this type of leadership, the leader takes the final
decisions but before that they take suggestions, advices and considers the subordinates point of
view. They encourages participation in decision making process (Rahimi and Gunlu, 2016). Thus
type of leadership style maximise the motivation and morale of the people because they will
attentive. It maximises the cooperation with the management and maximises job performance.
The Laissez-faire : In this type of leadership style, leaders ignores power and
responsibility. In this, the leaders have full faith and trust on their team and sub ordinates. It
passes the responsibility of decision making to their subordinates and takes minimum or less
action or initiatives in the administration.
The management and leadership style followed in Havez, Has and Tas chain.
As, Havez is a restaurant located in the central London. So the leadership style which will
be practised by the organisation is as discussed below :
Servant leadership : This type of leadership style is concerned with sharing powers and
giving priority to the needs and requirements of the team. They also work more on encouraging
collective decision making. This kind of leadership style is highly suitable for the Havez because
it identifies not only need but also the potential and capabilities of the employees who are

working over there. This further improves and boost the morale of people and encourages them
to accomplish business objectives effectively and efficiently.
The management style which will be followed under Havez restaurant is discussed below
:
Democratic management style : This type of management style is highly suitable and
provides best result for the company. It is because the managers offers an opportunity to the
employees to participate in decision making. This means that all the decisions taken within the
organisation are considered by the majority of the people (Sudrajat, 2015). There is two way
flow of information and communication which helps in taking decisions when complex
situations arises as there will be variety of solutions and outcomes.
Digital technology affects internal and external management styles.
The digital technology has tremendously increased over the past few years and no
business can operate without effective technology. Digital technology is concerned with all types
of electronic equipments and appliances which uses information in the form of numeric code.
These technologies has a strong impact on organisations internal and external management
styles.
In the organisation internal management style, the digital technology affects the human
resources, account based information, communication processes, etc. For instance, the
technology has enabled the accounting system and made it more effective and efficient. As there
are various technology enabled software, which are currently used by the organisation and make
the work simpler (Walsh, Chang and Tse, 2015). But tat the same time, it requires effective
workforce, who are capable and qualified enough that they can work easily on such software.
In the organisations external management style, the digital technology has a strong
influence in global economy, maximises quality and sustainability. For instance, the
sustainability and environmental concerns have raised the issues that the technology which will
be used must not harm the environment.
CONCLUSION
From the above report it has been concluded that leadership and management are the
important aspects in the business environment. Leaders are responsible for performing roles like
motivating, influencing people to work for the benefit of fulfilment of organisational goals and

objectives. Whereas management is the process which is concerned with developing plans,
organising, directing and controlling the activities performed within the organisation. The digital
technology has a strong influence on internal and external business environment.

REFRENCE
Books and Journals
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Ndungi, N., 2016. Motivation of permanent part-time employees in housekeeping service.
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