Service Industry Management Analysis

This assignment delves into the crucial role of leadership and management within the service industry. It explores various classical management theories and their applicability to achieving organizational objectives. The analysis also examines different leadership styles and their impact on employee performance. Furthermore, the assignment emphasizes the significance of evaluating internal and external factors to ensure effective management strategies.

Leadership and
Management for service
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
P1 Classical management theories in context to the service industry.........................................1
P2 Explain the role of the leader and different leadership styles in a service sector industry
context .......................................................................................................................................2
P3 Review the management and leadership styles in a specific service sector organisation......3
TASK 2 ..........................................................................................................................................4
P4 Investigate the internal and external factors that influence management styles and
structures in a selected industry organisation..............................................................................4
TASK 3 .........................................................................................................................................5
Covered in PPT............................................................................................................................5
TASK 4 ..........................................................................................................................................5
Covered in PPT............................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Leadership and management plays a vital role in service industry and it emphasis to
conduct the business operations in smooth and effective manner. The management is responsible
to lead the employees so that they perform as per the desire and deliver quality products and
services. This report discuss about classical management theories & leadership styles in relation
to restaurant chain called Hazev, Haz and Tas along its partnership with Docklands Academy,
London. There are various interviews has been taken by Academy from marketing, finance &
restaurant manager of restaurant chain so that factors which affect management and leadership
style can be analysed. Apart from this it also discuss about influence of digital technology in
context to corporation's objectives.
TASK 1
P1 Classical management theories in context to the service industry
As classical management theories has emphasis on the belief that employees have
economic & physical need and it does not focuses towards social or job satisfaction need. Apart
from this it advocates a specialisation of labour and centralized decision making as well as
leadership. The discussion take place in context to Mr. Murat (finance manager) associated to
chain of restaurant Hazev, Haz and Tas and its interaction to the Docklands Academy.
Administrative management: This theory is a part of classical management theory and
emphasis to arrange the things in very systematic manner and it involves distinctly defined task,
division of staff etc. Henri Fayol has develop this theory which focuses on five administration
functions such as: planning, organising, commanding, controlling & coordinating so that
performance of corporation can improve and desired goals can achieve. It suggests that how
employer can interact with the workers (Mundiri, 2017). For the service industry, it is important
to consider this theory and as per interaction of Mr. Murat with Academy representative shows
that “communication was limited” & “does not involves numerous steps” as they “take
immediate action in case of an issue” Apart from this managing director has higher authority in
the corporation. As restaurant follows the horizontal organisational structure which in there are
few layers and chain of command is minimum which is a advantage for it because employees
does not need to follow so many orders.
1

Behavioural Management Theory: This theory has emphasis to build better relations
with the employees by analysing the behaviour of individuals. It provide help to know the
behaviour of persons at work place. For a corporation it is require to handle conflicts, attitude
and emphasis to motivates the workers. Behaviour of staffs are needed to be positive so that they
put maximum efforts in order to accomplish the objectives. Background and culture are the two
factors which can affect the behaviour of individuals. According to the finance manager Hazev,
Haz and Tas is a kind of ethnic restaurant chain that provides Anatolian and Mediterranean
cuisines. Turkish Language is being used by the maximum employees and they things restaurant
is like a big family for them. The managing director monitor the business operations very closely
and provide useful and relevant information to the managers of restaurant and for that purpose it
is known as close and friendly corporation.
P2 Explain the role of the leader and different leadership styles in a service sector industry
context
As the leader has to perform various roles in the organisation so that goals can be
accomplish as per the requirement of business. It encourage the workers to work as per the
specific need of company. To motivate the employees there are various leadership styles can be
used by the service industry. There are three leadership styles has used by the restaurant chain
Hazev, Haz and Tas which are as mention below:
Authoritarian leadership style: In this type of leadership style leader has absolute
power to take decisions and manage the organisation and it does not involves subordinates to
provide their suggestions in order to take decisions. In context to the restaurant chain, manager
set a standard of quality and all employees have to make to quality products as per the
requirements (Muda and Roji, 2013).
Consensual leadership style: In this type of leadership style, leader shares decision
making among group members & involve the workers in discussion process. As the finance
manager of Hazev, Haz and Tas believes that they are able to manage the restaurants in effective
manner. But some times it is require to get some useful information in order to understand the
performance of organisation. For that purpose financial information is require related to ratios &
KPI. It is the duty of manager to train and communicate outcomes to MD of restaurant chain
while using consensual style.
2

Hands-Off Approach: In this type of leadership style, leaders allows their subordinates
to take decisions and so that employees feel comfortable that management is giving importance
to their suggestions and ideas. As the restaurant chain use this approach to a limited extent, and
manager allow their lower level employees to take some small decisions.
So it has been analysed that restaurant chain Hazev, Haz and Tas is using a combination
of these leadership styles so that business activities can perform effectively (Masudin and
Kamara, 2017).
P3 Review the management and leadership styles in a specific service sector organisation
Restaurant chain of Hazev, Haz and Tas are using different management & leadership
styles so that business operations can perform smoothly. Review of these styles are as mention
below:
Management style:
Administrative management style is being used by the restaurant chain and they follow
straightforward structure in corporation in order to make systematic work. Communication is
effective because chain of command is strong as a result appropriate information can be deliver
to all employees. As there are less people involve in communication process so information can
communicated quickly. The decisions are centralised which is an important function of classical
management theory.
Apart from this, better harmony can be seen in higher authority and middle level
management is close to the higher level management. So that flow of information is effective and
better decisions can taken for the better performance of restaurant chain Hazev, Haz and Tas. It
shows healthy relations of managers which is required in context to the behavioural management
approach.
Leadership style:
Leadership styles are used for the better productivity where as finance manager &
restaurant manager analyse that it is important to motivates the employees so that they can
perform better. As training is provided by the manager so that digital technology can used by
workers while performing business operations. Apart from this restaurant chain also takes the
suggestions form the employees in decision making process. As Hazev, Haz and Tas is using
combination of different leadership styles such as: authoritarian, consensual and hands-off
approach and it is helpful for smooth work and better productivity.
3

So these management practices and leadership styles are being used by the restaurant
chain so that performance of employees can improve. There are 90% of workers are satisfied in
the organisation which shows that corporation is successful to implement these styles.
TASK 2
P4 Investigate the internal and external factors that influence management styles and structures
in a selected industry organisation
Management style and structure can influence from various internal and external factors.
With the help of SWOT analysis internal factors can be analysed and it mention as below:
Strength: As the main strength of restaurant is that, it has bold Anatolian Flavours
which makes the restaurants different from other ones. As the another strength is harmony which
can be seen among employer and employees as a result employees are able to perform better in
order to achieve organisational goals (Karmarkar, 2015).
Weakness: As the major weakness which can be seen in Hazev, Haz and Tas is that they
are not able to fully implement digital technology as a result business operations does not
perform more smoothly.
Opportunities: Restaurant chain has opportunity to properly implement digital
technology and to use artificial intelligence is helpful in order to ascertain consumer demands
and food habits. Website is beneficial for online booking as a result restaurant will get maximum
order and it is helpful to maximize the sales.
Threat: As the main threat which can be seen in restaurant chain is related to up
gradation of technology where as other restaurants are using it as a result they are able to deliver
fast services through online booking. It can be threat for the restaurant because consumers will
not prefer to connect with the organisation as a results market share will reduce.
With the help of PESTEL analysis external factors can be analysed and it mention as
below:
Political: As changes in the regulations in context to the food & ingredient price and if
government of country will raise the taxes than restaurant chain of Hazev, Haz and Tas will
negatively get influenced.
Economical: The restaurant can be influenced from this external factor reason being if
inflation rate will increase but restaurant chain does not increase the prices of its food products
4

than profits can reduce. So it is require to analyse this factor effectively otherwise it will
negatively influence the organisation.
Social: As the people are become health conscious and they are demanding healthy food
and if Hazev, Haz and Tas does not provide healthy foods than needs of people of society can
not be satisfy and it can negatively influence the business of organisation.
Technological: As restaurant does not properly use the digital technology which affect
the business because now a days consumers make online booking for their order. If Hazev, Haz
and Tas does not implement technology than its business will negatively influence.
Legal: For the service industry it is important to follow food and beverage law and if
Hazev, Haz and Tas does not follow it than its business will negatively influence. So it is
important for the organisation to emphasis legal factors (Astuti and Rahayu, 2018).
TASK 3
Covered in PPT
TASK 4
Covered in PPT
CONCLUSION
As from the above report, it has been analysed that leadership and management are
important for the service industry. There are different classical management theories can be used
in order to achieve the objectives. Distinct leadership styles are helpful to lead and encourage the
employees so that they can perform better. For a corporation it is require to investigate internal &
external factors so that management styles does not get influenced.
5

REFERENCES
Books and Journals:
Astuti, E. and Rahayu, S. M., 2018. The influence of information technology strategy and
management support to the internal business process, competitive advantage, financial
and non-financial performance of the company. International Journal of Web
Information Systems.14(3). pp.317-333.
Karmarkar, U., 2015. OM forum—the service and information economy: research opportunities.
Manufacturing & Service Operations Management.17(2). pp.136-141.
Masudin, I. and Kamara, M. S., 2017. Electronic Data Interchange and Demand Forecasting
Implications on Supply Chain Management Collaboration: A Customer Service
Perspective. Jurnal Teknik Industri.18(2). pp.138-148.
Masudin, I. and Kamara, M. S., 2018. Impact Of Just-In-Time, Total Quality Management And
Supply Chain Management On Organizational Performance: A Review Perspective.
Jurnal Teknik Industri.19(1). pp.11-20.
Muda, N. and Roji, N. S. M., 2013. A quality function deployment (QFD) in determining the
critical learning outcomes. Jurnal Teknologi.63(2).
Mundiri, A., 2017. Organizational Culture Base On Total Quality Management In Islamic
Educational Institution. ADRI International Journal Of Islamic Studies and Social
Sciences.1(1).
Oon, F. Y., 2014. Effect of change management on operational excellence in the electrical and
electronics industry (Doctoral dissertation, Universiti Utara Malaysia).
Radianto, W. and Efrata, T. C., 2018. Innovation and Leadership in Religious Institution.
6