Leadership and Management for Service Industries

This document discusses the different classical management theories, the role of leaders and different leadership styles in the service sector, internal and external factors influencing management styles and structures, and future management and leadership skills required in service industries.

LEADERSHIP AND
MANAGEMENT FOR
SERVICE
INDUSTRIES

Table of Contents
INTRODUCTION...........................................................................................................................3
Different classical management theories ...................................................................................3
Role of the leader and different leadership styles in a service sector.........................................4
The management and leadership styles.......................................................................................5
Internal and external factors that influence management styles and structures..........................6
Current management and leadership ‘hard’ and soft’ skills providing evidence from specific
service sector examples...............................................................................................................7
Future management and leadership skills required by the service sector and how these can be
achieved.......................................................................................................................................8
Future Leadership Skills-............................................................................................................9
Different service industry organizations’ change management systems and leadership in
implementing change..................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Leadership is about getting people to comprehend and believe in the vision you set for the
company and to work with you on achieving your goals, while management is more about
administering and making sure the day-to-day activities are happening as they should.
Travelodge Hotels Limited is a private company operating in the hotels and hospitality industry
throughout the United Kingdom. Branded simply as Travelodge, it is the second largest in the
UK budget hotel sector measured by both number of hotels and number of bedrooms. This report
covers questions such as management theories by Taylor, difference between TUI and
Travelogue, different styles of leadership, different styles of management, internal and external
factors that influence the structure of the company, hard and soft skills of leadership and future
leadership and management skills of the leaders of the company.
Different classical management theories
Bureaucracy theory: Max Weber has introduced this concept of bureaucracy. In this
Travelodge can engaged in following bureaucratic structure. Like for example they can follow
and maintain hierarchy. Itis a way of ranking various positions in descending order from top to
bottom of an organisation. Work can also be divided in between employees according to their
roles and responsibilities. This will support Travelodge in managing the talent effectively.It will
also support organizations growth.
Principles of management by Taylor(Classical management theory)
Science, not rule of Thumb-
Travelodge implements this principle so that they can increase the efficiency of their
employees. This theory has been substituted by many scientific methods. Managers of the
company take the decisions for growth on their own basis of judgment. They prepare before the
deadline and keep things in mind so that they can save the energy and time of their team and
focus on other aspects. They strictly make the decisions on the basis of scientific approach
which are concerned with cause and effect. This method saves a lot of time for the company as
they calculate all the decisions with scientific approach not by assessing the decision without
calculation as it will be risky for the company. ( Skaggs, Pearce and Wassenaar, 2015)
Harmony, not Discord-
Employees of Travelodge implies harmony in their code of conduct and follow it to an
extent so that their operations can smoothly flow. If the level of conflict increases then it will

affect the performance of the company. Each member realize the importance of each other so
that they can maintain coordination and harmony between them. The company makes it sure at
the time of hiring someone that to check their personality and attitude towards work and hire
them on that basis. (Pahi and Ab Hamid, 2015.)
Mental Revolution-
Travelodge follow every principle given by Taylor which helps them to increase their
revenue as the employees of the company work with peace so that no situation of conflict arise
between them. (Ma, Shek and Li, 2016. )
Cooperation, not Individualism-
This theory is considered as a extension of harmony, not discord. The employees of the
company keep one thing in mind that their decisions or work must never affect the performance
or name of the company. Company has made some measures that the employees don't compete
with each other and never make unnecessary demands.
Development of every person to their greatest efficiency and prosperity-
All the accomplishments and achievements made by the company they give the whole
credit to the team who were responsible for it. Travelodge provides them with training, make
them understand the aspects of work so that they can work in an efficient manner in compliance
with the scientific approach. It helps them to distribute the work among the team according to
their area of expertise and interest so that they can help to achieve more goals for the company.
(Millar, Chen and Waller, 2015. )
Role of the leader and different leadership styles in a service sector
Leadership roles and style:
Situational leadership: In this type of leadership style leaders are engaged in acting according
to situation. Like for example if there arises any situation of conflict leader have to make sure
that they solution to problem. In this situation they can also engaged in providing training to
employees to adjust according to the working environment. It will also support them in
managing talent and retaining them.
Democratic Leadership-

It is believed to be the most effective style of leadership as it allows the employees who
work on a lower level to have some authority and they are told to use it and take wise decisions
for the company as it will increase the talent and also chance for them to hold a position for
above level in future. It will make them learn how to take decisions in future. In this type of
leadership method leaders are the ones who takes decisions but each employee has a equal right
and say on the right direction.
Transformational Leadership-
This leadership is best for this industry and that's why travel lodge prefers it because this
industry needs to cope up with the change as it transforms and improves on a continuous basis.
Employees of the company has a specific target to achieve but leaders of travel lodge push them
so that they can stay out of their comfort zone and work more efficiently. Employees get the date
for deadlines so that they can reach their goals and complete the task before that. At the
beginning the goals given are easy then with time their level of difficulty increases. For the
company who seeks growth this method is highly preferred as it keeps the employees of the
company motivated under pressure so that the company can figure out their potential. It can also
enhance talent working in organization. One drawback of this method is that if the employees
don't get proper amount of guidance then the company won't have the graph of the employees.
(Nguyen and et.al.,2018.)
Laissez Faire Leadership-
This method states that the authority is given to employees and the leaders of the
company let them do the work on their own. The company trust their employees and give them
the responsibilities of handling their task. They don't give any deadlines for completing the work
and don't have any specific policies for them. So that they can handle the overall tasks of the
company without any interference. This method gives them the authority but it stops their
development for focusing on the opportunities of growth. That is why this style of leadership
method must be looked on a regular basis by the company.
The management and leadership styles
Management Styles-

Employee Management-
One of the reason of reaching to success for the company is that they manage their team
in a very effective manner. This has also helped them to gain the level of employee retention
because the employees realize that the company know their worth. This has increased their
image in the market as candidates who wants to work there knows that the company has a very
convenient work environment and no misuse of authority is done so that it leads to situation of
conflict. Travelodge maintains their employees in such a way that even if one of their
competitors has been offered them with a more decent package then also they won't leave them
because company has gained their trust which has made them loyal. (Nallusamy, 2016.)
Persuasive Style-
Company has the scope to increase the level of trust with their employees and this theory
will be suitable according to them as this theory states that the manager is the one who must take
the decisions but he convinces their team that it is in their best interest which helps them to gain
there trust.
Paternalistic Style-
This management style states that decisions are taken by the leaders and they treat their
employees in a parental way. Travelodge takes care of their team look after them though
sometimes they feel they are not being taken seriously and it makes the team of the company
more dependent rather than to be independent on their own. (Lee, Chen and Lee, 2015. )
Leadership Styles-
Strategic Leadership-
This theory of leadership states that leaders are the one who has to handle the operations
as well as look into opportunities of growth which makes them stand between the intersection for
both. They take the burden for everyone in the company so that work load in the company
remains constant and stable for everyone. Travelodge wants to imply this theory of leadership in
their culture as it believes in supporting many employees at once which helps the company to
maintain the flow of work smoothly. Sometimes it creates problem for the leaders as it takes a lot
of time handle everyone and show them the right direction according to their suitability.

Internal and external factors that influence management styles and structures
Internal factors that affect the management styles and influence the structure of Travel
Lodge-
Internal Relationship-
Every company needs to maintain the relationship with their stakeholders. The impact of
the relationship which is maintained internally is strong on the structure of the company.
Employees of the company and the contribution made by them is the result of success for the
company that is why Travelodge maintains relationship with everyone on the team it is a vast
area to cover for the company. If the relationship is good they also share their ideas with each
other which benefits both to put it in their work.
Employee Engagement and Commitment-
Engagement of employees is based on trust and communication between the company
and their employees. It helps in increasing the probability of success for the company. Those
employees who are committed to the company make an hefty contribution for the benefit of the
organization. It tells the company that the employees are in there for the company for a long
time. This aspect is easy to manage by Travelodge but for those who are committed to the
organization. It also highlight the importance of employees.
External Factors that influence the style and structure of Travel Lodge-
Globalization and promoting the capabilities on a global level-
Different managers have different style or way of working and achieving the goals. The
process of Globalization is to put a focus on linking countries and there people closely like they
have never been before. So that they can expand the market vastly in various areas. Managers of
Travelodge has to plan and take the decisions according to the home country and outer countries
as globalization will increase the level of competition from various countries. It also influence
the pattern of working and lead to differences in work culture.
Current management and leadership ‘hard’ and soft’ skills providing evidence from specific
service sector examples
Soft Skills-
Communication-

Company has hired their managers who have worked for years so that they can influence
the customers by adjusting their tone according to the customer. They follow all the instructions
while responding to customers so that customer feels the ethics in the organization. Apart from
this they support and make them understand thing so rigidity and complexity of the situation can
be reduced. (Yeng, Jusoh and Ishak, 2018.)
Responsibility-
Managers of Travelodge takes the responsibility of the task and their completion before
the deadline. They possess the require skills and knowledge for the job. They have the guts for
admitting any mistake they made and take the full responsibility of the outcome if the decision
has affected the revenue of the company in a negative manner. Managers of the company follows
the code of conduct and maintain the standard of the company. Proper training was given to the
employees so that they reach more goals and both employee and the employer get the benefit
from that. (Shek and Lin, 2015. )
Hard Skills-
Mathematics and Numeracy Skills-
Every company has a department for the people who possess these skills and the
company recruits for people who have the ability to cope up with this factor. This aspect is in
relation with every department such as logistics, IT, finance accounting, engineering, training
and development. Travelodge has hired various managers for different departments so that it
does not disrupt the flow of any department.
Knowing Foreign languages-
Travelodge deals in tourism industry and that requires dealing with people from different
nations who speak different languages that is why some of the managers that company has hired
were to reduce this problem so that clients don't get irritated at the time of engaging in a
conversation. English is mostly used by many people still company needs to meet up with the
probability to provide satisfaction to customers. This will also help them to guide while they are
making the packages or showing them the destination. Client won't shift to their competitors if
they get satisfied by the services of the company. (Koutroumanis and Dixon, 2018.)

Future management and leadership skills required by the service sector and how these can be
achieved
Future Management Skills-
Planning related to the dynamics of the environment-
Managers make the dynamics of team in a better way which gives the the clear
understanding of which role to play so that work distributed don't get messed up. The company
provides them with training so that the employees can work hard and meet up to their potential.
They also help in saving the resources of the company as they also play the role of resource
investigator for the company.
Decision Making-
Managers are hired by the company on the basis of their decision making skills. They are
the ones who look over all the employees who are working in the company. Their role is to
check on them such as they must complete the work before the deadline and they must reach the
office on time as that will tell them about their punctuality and discipline towards work. They
take decisions for the company which are utmost accurate so that they can analyse their needs
and fulfil the demand of clients. (Psomas and Jaca, 2016.)
Future Leadership Skills-
Motivation-
Employees need motivation at every level so that they can work up to their potential.
Motivation is given in many ways by the leaders such as giving them rewards in ways like
monetary or non monetary. In the non monetary rewards they give them the title of employee of
the month or put their hard work on the official website of the company as a appreciation post
whereas monetary rewards are getting bonus, incentives or a raise for their hard work. This will
keep them motivated which will result in getting more efforts from them and help the company
to reach new heights and increase the revenue. (Shek, Chung and Leung, 2015)
Relationship Management-
To retain the customers for a long period of time Leaders of Travelodge needs to work
hard on their communication skills so that they can make it more effective and influence more
new customers. Other than this it will also help the company to retain their employees for long as

by engaging in communication with them on a regular basis they will gain the trust of their
employees. Maintaining the relationship with the employees and clients will help the leaders of
the company to know where they are lacking so that they need to improve and analyze their
needs and wants in order to satisfy them and retain them. (Kao and et.al., 2015. )
Different service industry organizations’ change management systems and leadership in
implementing change
Basis Travelodge TUI
Change in the management
system
Travelodge follows the change
management model by Kotter
which includes 8 steps in this
theory such as to remove the
obstacles, handle the urgency,
form and guide the team,
development of vision,
winning for short term goals,
vision of better
communication, focus on gains
and work on changing the
structure. Managers of
Travelodge use this model so
that they can facilitate change
in their pattern of working.
This model helps them to
make changes in a orderly
manner that is step by step so
that no aspect is missed. The
company has given the
authority to their employees to
be involved in the area where
TUI follows the change model
by ADKAR as they believe it
is an effective model for them.
It helps them to bring change
in the culture of the
organization and set them
according to the basis of goal
orientation so it is easy for the
company to reach goals. This
model helps the company to
know why the change is
needed in the organization and
even if they implement change
why do they some of the
decisions changed achieve
success and some of them
don't. They implement the
change with the help of
managers and they give them 2
choices that is to change in a
forceful manner or agree with
the company at the beginning.

decisions are taken. To remove
the hurdles and obstacles in the
way of implementing changes
this model is helps them to
communicate the vision and
try to make an attempt
according to that. This process
takes a lot of time which
sometimes demotivate the
employees.
This model helps the company
to get their SWOT analysis.
(Gibson and Parkman, 2018.)
Leadership Style Travelodge prefers the style of
transformational leadership as
it helps them to improve their
pattern of working on a regular
basis. It also helps them to put
their employees out of comfort
zone so that they can work
efficiently and generate more
revenues for the company.
On the other hand TUI follows
democratic style of leadership.
Many of the companies
believe it as the most effective
style of leadership. Company
has given the power to lower
level of management so that in
their absence they can make
decisions on their area of
expertise.
CONCLUSION
From the above studies it has been concluded that Travelodge follows the transformational style
of leadership which allows them to work creatively and bring new ideas. Apart from that they
help in changing and improving the operations of the company on a regular basis so that they can
generate more revenues for the company as it requires a constant change to survive in this
industry. Company supports their employees and reward them monetarily and non monetarily so
that they can keep them motivated and get better results. It also helps them to retain them for a
long time. Company even has the managers who are hired specifically to meet the needs of
engaging in a conversation with people from different nations as it requires different languages

to understand them and cope up with them. The employees of the company train their employees
so that they can work up to their potential as it will be beneficial for both the employer and the
employees. Company follows the model of Kotter's change which includes 8 aspects under it
which is effective but it takes a lot of time. Employees of the company stands up and take the full
responsibility if they commit any mistake which has affected the productivity of the company in
a bad way.
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