[SOLVED] Leadership and Management Styles in Service Industry

The provided report focuses on leadership and management styles in the service industry, with an emphasis on democratic leadership and classical management theory. It explores how these styles contribute to effective business goal attainment in a structured manner, highlighting key factors such as technological advancements, social needs, economic conditions, and internal/external environmental factors that influence organizational performance.

Leadership and
Management for
Service Industries

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1. Classical management theories.............................................................................................3
P2. Role of a leader and different leadership styles....................................................................4
P3. Review of management and leadership styles in Havez.......................................................6
TASK2.............................................................................................................................................6
P4. Internal and external factors which influences the management style and structure............6
TASK3.............................................................................................................................................8
Covered in PPT...........................................................................................................................8
TASK4.............................................................................................................................................8
Covered in PPT. ........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCE...................................................................................................................................9

INTRODUCTION
Leadership and management are the very crucial terms in the business organisation.
Leadership is concerned with the power of leaders to influence the people so that they work
towards the attainment of business objectives. Whereas management is concerned with
developing plans, organising, directing and controlling the activities of the company.
Organisation undertaken in this report is Hazev which deals in a travel and tourism and was
founded in 1999. It is the collaboration between 'Tas' and 'Haz' restaurant group (Davis and
Jones, 2014). This report will explain the classical management theories and leadership style. It
will explore the various factors that influences different styles and structures in a service
industry. It will also make assessment about the current and future management and leadership
skills. And last part will demonstrate the management and leadership skills in a service industry.
TASK1
P1. Classical management theories.
Classical management theories are those in which the organisation assumes that workers
only have financial and economic needs and these theories are separately designed to streamline
the operations and maximise the productivity. The Hazev organisation of Travel and tourism will
adopt the classical management theories which are also known as scientific theory of
management that was designed by F.W Taylor and focuses on maximising the productivity of the
workers. These theories will be practised in the Hazev restaurant by providing clear structure for
management, its functions and operations. Furthermore, the division of labour which can develop
the task into more easier and efficient way such that it can be accomplished to enhance the
productivity. In this, each work is scientifically designed such that it can replace the old rule of
thumb. It also enhances the division of labour and cooperation between management and
workers. The F.W. Taylor has emphasised on importance of employee welfare as well as
efficiency of the production.
Apart from this, the another classical theory which can be taken into consideration is
bureaucratic management. It will be practised in the Hazev restaurant by focussing on operations
of the organisation under the hierarchy of positions. This theory was developed by Weber which
specialises labour and rules and procedures are formalised. This can further be practised by
authorities which must be formalised into a hierarchical structure and application of rules and

sanctions must be impersonal. For applying this in the organisation, the management will adopt
hierarchy which is a form of ranking numerous positions in a descending order that is from top to
bottom (Goetsch and Davis, 2014). Furthermore, it will adopt specialisation in Havez which will
divide the entire tasks into small pieces and ensures simplification of tasks which can easily be
accomplished within the time frame.
Therefore, such theories will be practised by the management by motivating people
which the means of financial aspects. The company will offer wages, incentives, bonuses, etc. to
their employees because under this, the management does not consider the social aspects and
needs of the employees and only considers that the basic human motivation is to fulfil the
economic needs.
P2. Role of a leader and different leadership styles.
A leader is an individual in the organisation who influences other people to accomplish
business goals and objectives. Whereas, leadership is the act which is usually performed by the
leader in the organisation for the purpose of motivating people such that they work with full zeal
and confidence towards the attainment of business objectives. Therefore, a leader will perform
various roles and adopt different leadership styles in Havez.
Role of leader
 Provide vision : A leader is accountable to provide a vision to the entire team of the
Havez such that everyone must be aware about the work which is required to be
performed and business goals can be accomplished in a effective and efficient manner.
This is useful because with this, the team members become more focussed and drives
success.
 Establishes effective organisational structure and communication : Leader is
accountable for setting up of clearly defined organisational structures that involves the
chart of the organisation which will be advantageous in highlighting the chain of
command and rules and regulations for effective communication. Members of the Hazev
will focus on understanding the importance to assist the structure and communication
because without this the organisations will not be able to accomplish business goals and
objectives.
 Inspire and motivate : The leader is accountable for inspiring and motivating people so
that they work with full zeal and confidence towards the organisational goals. In hazev,

the leader will motivate the employees by financial and non financial motives like
recognition, treating them with respect, giving them attention, ensuring bonuses and
incentives, etc.
 Training : The leader is further responsible for identifying and analysing the kind of
training which is required in the management. Leader will provide training to the staff of
Hazev in the form of food handling and serving trainings, providing knowledge and
dishes served in the restaurant, neatness, hygiene, etc.
Different leadership styles
Leadership styles are those techniques which are essentially practised by the leader in the
organisation. There are various types of styles which Havez will follow and they are discussed
below :
 Democratic leadership style : In this type of leadership style, the leader involves sub
ordinates and other people in the decision making process. In havez, this style will be
highly successful in designing the future policies. For instance, if a leader is thinking to
modify the menu list then it will consult the sub ordinates because they are more aware
about the needs of the customers as they communicate with them and can generate better
results.
 Autocratic leadership styles : In this type of style, the decision is completely taken by
the leader and it does not involves sub ordinates. This is suitable in Havez when there is a
rapid change in the political policies like new regulation of taxation or legally when new
legislation regarding food becomes mandatory to adopt (Fernández-Muñiz and et. al.,
2014). In such cases, leader takes quick decision without consulting the sub ordinates and
directly orders the organisation to adopt the changes.
 Transformational leadership style : In this style, leader inspires the staff through
effective communication and by building the surrounding through an environment of
intellectual stimulation. This is highly encouraged and motivated form of leadership in
which employees are motivated to accomplish the goals in which they own the capability.
 Transactional leadership : These types of styles are commonly practised in today's
business environment. In this, the employer or leader rewards their sub ordinates for
effectively performing and accomplishing the business tasks and goals. Leader is

responsible for developing roles and responsibilities for each employee. Furthermore,
leader can adopt the use of incentive programs in order to motivate the employees.
 Charismatic leadership : In this type of style, the success of the program or organisation
is closely connected with the presence of the leader. Furthermore, this is dependent on the
favourable charm and personality of the leader which can influence the sub ordinates to
work with full concentration in order to attain business objectives and goals.
P3. Review of management and leadership styles in Havez.
Havez will adopt the classical management theory as it will help the organisation in
properly structuring which will be advantageous for the employees and workers in numerous
ways. This will make them utilise the available and scare resources in an effective and efficient
way. The training provided under this approach of management will definitely lead to the
betterment in the workforce by maximising their efficiency (Hallinger and Wang, 2015). It will
develop healthy and good relations between the management of Havez and employees. Line of
authority is also insured and minimisation of cost of production.
Havez will follow democratic leadership style in their working. This is because, the
organisation deals in restaurant which can work successfully only if all the employees are
collectively working because work of each members is required to be coordinated with another.
Thus, by adopting this style, the encourages people to work in team which further solves
complex problems. It also improves the knowledge of the team and creates higher level of job
satisfaction among the employees.
TASK2
P4. Internal and external factors which influences the management style and structure.
A business environment is highly dynamic, no matter in which industry it deals with.
Every business is associated with several factors that can affect the management styles and
structure of the company. Therefore, the following are the factors discussed below which can
affect the Havez :
Internal factors : It is concerned with those factors that exist internally to the business
and can affect the organisation (Herman, 2016). These factors are generally controllable in
nature and they can be :

 Employees and manager : Manager and employees are the most important part of the
organisation. They must be capable enough to work effectively and efficiently in the
company. The work of manager is to look after the employees and their performances
while employees are required to perform their duties such that business goals can be
attained. In Havez, if the employees lack communication skills, then this will leave poor
impact on customer about the organisation so it is necessary to regularly provide them
training.
 Money and resources : Fund is a very important component in the business organisation
so that day to day expenses can be fulfilled. If the company lacks money or other
resources like manpower, cleaning, chefs, etc. then the company will not be able to meet
the internal needs of the Havez which can affect the restaurant adversely (Larson and
Gray, 2017).
 Culture of the company : Internal culture of the Havez is associated with the values,
beliefs, customs, attitudes, etc. It is crucial that the restaurant follow collaborative culture
so that every employee work as team in order to accomplish a common business goal.
External factors : They are those factors which lies outside the organisation and can
significantly affect the operations of the organisation. These factors are generally uncontrollable
by the organisation. The following are the external factors which affects the Havez :
 Political factors : These factors are generally concerned with the political and
government intervention. It includes, taxation, import and export duties, foreign direct
investment, subsidies, etc. For instance, if government increases the taxation charges then
the Havez will be charging more from the customers which can affect sale of the
organisation due to higher prices (McCaffery, 2018).
 Economic factors : These factors are generally concerned with the financial and
profitability of the organisation. It includes factors like inflation, deflation, exchange
rates, etc. For instance, if inflation rate rises then the prices of all the good and services
like vegetables, fruits, etc. will also rise. This will influence the Havez to increase the
internal menu prices of the organisation which will have a crucial impact on the
profitability.
 Social factors : These are concerned with the social needs, customs, beliefs, etc. of the
customers. It will have a crucial impact on the organisation because customer needs and

wants changes very quickly and the restaurant has to continuously review their policies
and programs in order to attract and retain customers.
 Technological factors : It is concerned with the innovations and inventions in the
technological aspects. It will affect the Havez, as technology is the most prominent
factor. For instance, earlier the restaurant used to take order on paper and feedback from
customers on the feedback form but now due to emerging technologies, restaurant takes
order and feedback on tablet and I pads (Renz, 2016). Apart from this, the restaurant uses
various technological tools for promoting their products and services.
TASK3
Covered in PPT.
TASK4
Covered in PPT.
CONCLUSION
From the above report it has been concluded that leadership and management are two
different components of the organisation. They play a very crucial role in the service industry
because to accomplish business goals effectively and efficiently it becomes necessary to have
smooth management and leadership skills. The report has focussed towards the style and skills of
the leader and leadership by placing emphasis on democratic style of leadership and on classical
management theory because of which business goals can be attained in a structured manner.

REFERENCE
Books and Journals
Davis, H. and Jones, S., 2014. The work of leadership in higher education management.
Fernández-Muñiz and et. al., 2014. Safety leadership, risk management and safety performance
in Spanish firms. Safety science.70. pp.295-307.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hallinger, P. and Wang, W.C., 2015. Assessing instructional leadership with the principal
instructional management rating scale. Dordrecht: Springer.
Herman, R.D., 2016. Executive leadership. The Jossey‐Bass handbook of nonprofit leadership
and management, pp.167-187.
Larson, E.W. and Gray, C.F., 2017. Project management: The managerial process. McGraw-
Hill Education.
McCaffery, P., 2018. The higher education manager's handbook: effective leadership and
management in universities and colleges. Routledge.
Renz, D.O., 2016. The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.