Leadership and Management for Service Industries

This document discusses the importance of leadership and management in service industries, with a focus on the Savoy hotel. It explores various classical management theories, the role of leaders, and different leadership styles. It also investigates the internal and external factors that influence management styles and structures. The document reviews the management and leadership styles adopted by the Savoy hotel and discusses the impact of these styles on the organization. It concludes with a case study comparing and contrasting different service industry organizations' change management systems and leadership in implementing change.

Leadership and
management for service
industries

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Various classical management theories..................................................................................3
P2 Role of the leader and various leadership styles....................................................................5
P3 Review the management and leadership styles......................................................................7
TASK 2............................................................................................................................................8
P4 Investigate the internal & external factors that influence management styles & structures...8
TASK 3............................................................................................................................................9
P5 Current management & leadership ‘hard’ and soft’ skills......................................................9
P6 Discuss future management & leadership skills...................................................................10
TASK 4..........................................................................................................................................11
P7 Compare & contrast different service industry organisations’ change management systems
& leadership in implementing change.......................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................15

INTRODUCTION
Every organisation requires a specific strategy that can help to boost the market position
and also selling of their business. Organisation need to follow management concept carefully so
that manager can easily plan, organise, coordinate, direct and control all the operations in an
organisation. Manager of the organisation can follow all the management theories so that they
can effectively manage all the internal and external activities in a right manner. To run the
organisation successfully, manager need to focus on leadership so that all the leadership of every
department can provide the right direction to their team members. Leadership and management
both are essential concept for the service industry and manager of the organisation mainly
responsible to ensure the effective practices of leadership and management. For this report,
Savoy hotel will be considering, which is known as a luxurious hotel in London that established
in 1889 and build by the impresario Richard D' Oyly Carte. The main motive of this report is to
discuss about the various classical management theories and determine the role of the leader and
identify different leadership style. This report also reviews the management and leadership style
and also discuss the internal and external factors that directly influence the management style
and its structure. Moreover, this report also discusses about the soft and hard skills of leadership
and also compare & contrast different service industry organisations.
TASK 1
P1 Various classical management theories
Classical management theories are considered as a style of management that can
emphasizes the hierarchy and specialised roles that determine the single leadership that can help
to optimized the efficiency at the workplace. Classical management theories basically based on
many principles such as -
 Productivity is considered as the primary target of the organisation.
 Increased level of profit can set the priority.
 Every decision is usually made by the single person
 employees are selected for the task on the basis of their knowledge and skills
 scientific management is good method to improve the efficiency of the employees.
Classical Management Theories

There are various theories of classical management that considered by the Savoy hotel
are discussed below-
Hanry Fayol Administrative Management Theory
This is the 1st theory that is considered by the Savoy hotel. This theory basically based on
the fourteen principles like Division of work, authority & responsibility, discipline, unity of
command, unity of direction, subordination of individual interest, remuneration, centralisation,
scalar chain, order, equity, stability, initiative and esprit de corps. The main purpose to select this
Fayol theory is to focus on all operations of the hotel so that hotel can easily provide some
guidelines to their managers so that they can follow right strategy and method to communicate
and interact with the staff members (Hassi, 2019). The useful implementation of this principles
in service industry help the Savoy hotel to satisfy the requirement and need of their customers
and clients in a specific manner. In hotel most of the services are intangible that directly impact
on the reputation of the hotel so that it is important for the hotel to use these principles so that
hotel can easily maintain the all working activities and also complete the regular task properly
(Hvuertas-Valdivia, Gallego-Burín and Lloréns-Montes, 2019)
Contingency Theory
This theory mainly refers as an organisational theory that predict and also consider that
there is not an appropriate manner to organising and take adequate and specific decisions. This
theory also contains that there is not a specific path exists to utilising the internal & external
concepts. It is so simple to evolve the appropriate course of actions that usually satisfy the
requirements of clients and customers in a specific manner. Fred Fiedler proposed this theory
and fiedler mainly believed that traits and effectiveness of the leasers are correlated and certain
traits of leadership can help in certain crisis so that the leaders need to do some modifications
and also set some new aspects as per the situations. There is various consideration of this theory
such as-
 According to this theory, there is not any best way to handle the organisation.
 Fiedlers contingency theory considered that leaders should be able to recognise which
organisational management style would be useful for the company to achieve the day to
day objectives.
 The main element of this theory is to consider the (LPC scale) that is least preferred co-
worker that can help to analyse the manager's leadership quality orientation.

Behavioural Theory
This theory plays a prominent part in respect of organisation and mainly focus on how a
leader usually behave & also assume that all these traits can used by the other leaders. This
theory also called as Style Theory. This theory also suggested that leaders of the organisation are
not generally born for success but they can have created so that they can learn behaviour. Savoy
hotel also adopt this theory and focus on to provide the satisfy the demand and requirements of
their customers. For instance- if an employees need motivation than organisational management
can provide them appropriate benefits and incentives that can easily enhance their work
performance. This technique is a very useful to motivate employees so that they can learn new
skills and knowledge as per the requirement (Chon and Zoltan, 2019).
Taylor theory of scientific management
This theory mainly concentrates on the value and belief and also help to evolve the
employees work efficiency so that they can effectively complete their targets through right
principles that can help to support each and every employee positively. This theory contains four
specific principles such as -
 Science. Not Rule of Thumb
 Cooperation, Not Individualism
 Harmony, Not Discord
 Development of the individuals to attain good efficiency & prosperity
Savoy Hotel mainly focus on the completing the appropriate projects with the help of
these principles and most importantly, this hotel can use “Cooperation, Not Individualism”
because this principle mainly supports to create good engagement with all the employees in an
organisation
P2 Role of the leader and various leadership styles
Leaders, are consider those people that can formulate and also provide the right direction
to their team members so that all the members can do their task effectively. Leaders also
responsible to give right guidance to their team members and also support and coordinate them
effectively.

Managers are considering as those individual that can maintain all the operations within
an organisation. Manager are responsible to formulate the plans, strategies and policies so that all
the operations in an organisation run systematically.
Difference between Leader & Manager
Comparison Leader Manager
Means Leader is the one who directly
influence their team members to
obtain the specific goal.
Manager is the one who
responsible to make plan and
strategies with the use of
appropriate management
concept.
Team / Employees Team members can complete their
task as per the proper direction of
their leaders.
Manager is responsible to
provide direction to the
leaders so that all the leaders
of every department can do
guide their team.
Decisions Making Leaders are facilitates decisions. Managers are mainly
responsible to make all the
decisions.
Types of Leadership Style
There are many kinds of leadership style used by the organisation like autocratic,
Laissez-faire style and democratic. There are two leadership style identified that mainly adopt by
the Savoy hotel which are discussed below-
 Democratic Style - This type of leaders can perform their task in an effective manner
and also motivate their employees to complete their task on time. As per the current
scenario, this type of leaders mainly hired for the service sectors because they can create
the good relationship with the employees, clients and customers. In context of Savoy
hotel, democratic style of leadership can help to make appropriate decision on behalf of
their team (Tran, 2017).

 Autocratic Style – This is also containing as an effective leadership in which all the
leaders can command and also give order to their team members to compete the task as
per the given deadline. This is also known as strict leadership style in which team
members have no rights to take decision.
Management style
Maslow motivation theory
This theory consists various aspect that use by the organisation so that all the
work can be done in an organised manner. This theory addresses the basic need of the
employees and also provide them psychological support. This theory is beneficial for the
employees of the Savoy hotel so that they can perform their task effectively.
Herzberg’s motivation theory
This theory also called as “Two factor theory”. Both two factors can help to adjust
& influence the employees so that they can feel motivated and comfortable at their
workplace. Motivation & hygiene concept helps to motivate the whole team members
positively (Vasilagos, Polychroniou and Maroudas, 2017).
P3 Review the management and leadership styles
Management and leadership style can help to maintain the overall operation in an
organisation. Through management style, manager of the organisation can maintain the
performance of their employees and also motivate them and with the help of leadership- style,
leaders of the organisation can provide the right direction to their team members. Savoy hotel
adopt various management style that can help to formulate the most appropriate strategy for the
welfare of the organisation. Top management of the hotel can appoint those type of leaders that
can help to engage all the employees so that they can work together suitably and also
communicate with each other so that there is less change of confusion and error.
Savoy hotel offer suitable and high quality accommodation and other hotel services that
can attract the clients, guests and visitors. As per the current market situation, mostly
organisation is expanding their business all around the world so that they can increase their
market value. In context of leadership style, Savoy hotel can adopt Democratic leadership style
so that that type of leaders can provide their guidance and also support their team. This type of
leaders is asking for the advice and suggestion to their employees and also respect and value
their team members. Top management is responsible to formulate the effective policies to their

employees so that they can address the requirements of their customers. With review of the
leadership style, hotel can identify specific factors that can help to maintain the department
performance so that all the team members can take any challenges and help the organisation to
achieve the day to day targets. The first change identify in the leadership and management style
is adopt the democratic style of leadership and also use autocratic style of leadership, both
leadership style can help to maintain the operations and also aid in appropriate decision making
of the organisation (Boukis and et. al., 2020).
Management style mainly concerned about the complete the task in a specific manner. For
effective application of this style, manager of the organisation can use various types of theories
like Maslow theory of motivation and Herzberg theory of motivation, both theories are play a
prominent role to maintain all the employees related activities that can help to obtain the goal of
the hotel effectively.
TASK 2
P4 Investigate the internal & external factors that influence management styles & structures
Every organisation need to focus on internal and external factors because these factors can
directly influence the management style and overall structure of the organisation. It is important
for the manager to select the right management style so that they can effectively guide their
employees. Top management authority of the Savoy hotel also implement the systematic
structure so that manager can easily analyse the impact of internal and external environment. The
description of internal & external factors that directly influence the management style are given
below-
Internal Factor
 Internal Relationship – Employees can perform their duty and also coordinate
effectively. Managers and leaders are responsible to create the strong internal relationship
so that all the employees can stay connected and create good engagement with each
other. Internal relationship can aid to influence the employees so that management
structure can evolve positively.
 Complex demand of business – It is identified that the most complex demand of service
sector is to create loyal customers so that organisation can increase their market demand.
Savoy hotel manager can consider the various demand of their business so that hotel can

attract the customers to full fill all the requirements of their customers and guests and
also provide them additional services and facilities (Somlai, 2019).
External Factor
 Managing diverse talent and skills – External factors of the organisation are responsible
to manage the diverse talent and skills of the employees so that they can effectively
perform their job and help to achieve the organisational goals. Savoy hotel can focus on
employee engagement so that they can feel connected with their work even externally
and also follow proper leadership and management style.
 Stakeholders – Stakeholders of the organisation include customers, suppliers, employees
and other person who are the part of the organisation. Mostly stakeholders also affected
by the various policies of the organisation. For example- if top management of the hotel
can decide to expand the business then suppliers need to provide and deliver more
resources (Gajjar and Okumus, 2017).
 Digitalization & Innovation – As per the present scenario, mostly functions and
organisation can adopt various innovation with the help of digitalization. Technologies
can help to expand the business all around the world so that hotel can easily attract
massive number of visitors and adopt that management style that can help to maintain the
effective structure.
TASK 3
P5 Current management & leadership ‘hard’ and soft’ skills
Management and leadership skills mainly require to maintain the working each and every
operation inside the organisation. There are various management and leadership skills adopted
by the Savoy hotel are discussed below- Team dynamics – This is containing as a first skills that is essential for the manager to
perform each and every task effectively. With the help of this skill, manager can maintain
good relation with their team members so that all the members can do their work
properly. Strategic mind-set- This is also considered the most essential skills that is required by
the manage. To perform the task and prepare strategic strategies, manager need to use

their strategic mind set so that manager of the Savoy can easily allot all the task to their
employees effectively (Szende and et. al., 2020).
 Decision Making – This is a main skill that is require by each and every manager of the
organisation. Through effective decision making skills, manager can take decision and
ensure the wealth of the hotel and also their employees.
Leadership Skill Trustworthiness – Leaders of the organisation need to be very trustworthiness so that
they can easily influence their group members. If a leader is trustworthy then everyone
can believe them easily and also share their problem and leader can effectively solve
their problem and give them appropriate solutions. Creative Thinking – This is a most demanding skills that can help the manager to
balance adverse situation effectively. Savoy hotel leaders can focus on their employee’s
activities and also resolve all the critical issues with their critical thinking skills.
 Inspirational leadership – Every leader need to inspire their team members so that they
can easily provide positive impact on their employees. With the help of right leadership
skills, leaders can boost the motivational level of their employees.
As per the all skills of management & leadership skills, Savoy hotel mainly concerned about
the soft skills because this organisation belongs to the service sectors. Hotel also provide
various services like food, accommodation and provide venue. With the help of soft skills,
leader can create effective relationship with their staff members (Patiar, and Wang, 2021).
P6 Discuss future management & leadership skills
As per the requirement of the future, management and leadership skills are necessary to
provide the good effect of the working of the employees so that organisation can get the most
possible outcomes. There are various management and leade4rship skills required by the Savoy
hotel manager so that they can easily address all the requirement of the customers. There are
various skills related to the future management and leadership skills are explained below-
 Tech - Management Skill – This skill can help to maintain the requirement of future
management and leadership skills. Service industry need some specific innovation that
can help to create good market value. Savoy hotel wont’s see any type of disturbance
related to the artificial intelligence. Tech management skill will help to maintain the
technological access in the hotel. In order to plan and implement the tech- management

skills for the future consideration, manager of the hotel can use all the technological
advancement so that all the customers will feel more comfortable. Chiefs of the hotel
should comprehend some creation and innovation to utilise its difficulties & openings
inside the information the hotel so that they can maintain profession & aptitude
advancement and working environment jobs & security to provide few examples regions
of concern.
 Assessment of soft skills- Soft leadership skills like, critical thinking, integrity,
dependency, problem solving skills etc. are essential and helpful to maintain the future
requirement of the organisation. Leaders of the organisation can adopt these soft skills so
that all the employees can feel more comfortable with their leaders. Leaders of the Savoy
hotel can consider all these skills for the welfare of the employees which will help in the
future to accomplish the most appropriate results for the hotels. With the help of soft
skills, leaders can easily build strong relationship with their co-workers and also help to
maintain the good coordination. Development of innovation related devices can help to
maintain the odd situations and also help to meet the good results (Buil, Martínez and
Matute, 2018).
TASK 4
P7 Compare & contrast different service industry organisations’ change management systems &
leadership in implementing change
Service industry mainly focus on change so that they can easily maintain and modify the
requirement of the customers and clients time to time. Organisation use change management
system so that manager of the organisation can easily save their employees from the worst effect
of change and adverse circumstances. There are two organisations are considered to demonstrate
the difference the various services industry of the organisation. The discussion about these two
hotel as per the change management system and leadership that use to implement the change are
discussed below-
Comparison of Savoy hotel and InterContinental London Park Lane
The comparison of these hotel as per their adoption of change and implement the
leadership of the changes are given below-
Savoy Hotel

This hotel considers the famous and luxuries hotel that can attract large number of people
with their high quality services so it’s important to focus on the requirement of the customers so
that they can gain more profit. Manager of the hotel need to identify the specific requirement of
the customers with the help of research and feedback system. Hotel consider some changes and
follow advanced technologies so that hotel can easily reach the customer and also clear every
doubt and satisfy every query of their potential customers. Hotel adopt some changes in the
technologies and also some apps and use social media so that hotel manager easily knows about
the need and demand of their customers because their requirement changes according to the time.
To tackle the change process, manager of the hotel can follow specific change management
system so that manager can maintain all the operations effectively. Manager can hire effective
leadership skills that can help to implement the soft skills so that all the staff members and
customers can coordinate effectively (Rupam, Ali and Kashif, 2018).
InterContinental London Park Lane
This is considering as the luxurious five-star hotel that established in 1975 and operate
their business in various locations. the band value of this hotel is more and hotel also consider
some changes as per the requirement of time and demand of customers. For this hotel,
satisfaction of the customers really matters so that hotel always some innovation and also launch
various facilities to gain the attention of their customers and guest. Hotel adopt some changes
like technological and environmental changes to attract the guests and customers. To prevent
from their employees to the change process, hotel manager can adopt effective practices related
to the change management system and HR manager of the hotel appoint high skilled leaders so
that they can lead their team for the change and provide them right direction. Leaders of the
hotels can influence their team to accept the change positively.
CONCLUSION
As per this report is can be concluded that every organisation need effective leadership and
management skills that can help to maintain the productivity and efficiency of the organisation.
Leadership and management both are essential for the development of the organisation and
specially service industry. As per the requirement of the service industry, it is identified that
managers and leaders of the organisation required some specific skills to perform their job ion a
best manner. This report discussed about the role of the leaders and also defined the various

leadership style that mainly adopted by the selected organisation. This report also determined
about the different classical theories and also identified their best usages for the organisation.
This report also discussed the soft and hard skills of the leadership and also use some specific
skills for the current considerations. Apart from this, report defined the various management and
leadership skills for the future purpose so that manager of the organisation can easily maintain
the all requirement of the customers.

REFERENCES
Books and Journals
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performance: The role of identification, engagement and proactive
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hospitality. International Journal of Contemporary Hospitality Management.
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turnover intention. The International Journal of Human Resource Management, 30(10),
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departments’ performance: Evidence from upscale hotels in Australia. Journal of
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moderated mediation approach. Asia-Pacific Journal of Innovation in Hospitality and
Tourism, 7(2), pp.21-38.
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