Leadership and Management in Service Industries

Leadership and management
for service industries

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Classical theories of management in context of hospitality industry..........................................3
Organizational structure...............................................................................................................4
Organizational culture .................................................................................................................5
Management and leadership........................................................................................................6
Role of a leader in the hotel.........................................................................................................6
Role of a manager in the hotel.....................................................................................................6
Leadership and management styles in hospitality industry.........................................................7
Management and leadership style for Premier Inn Hotels:..........................................................8
LO 2.................................................................................................................................................9
Internal and external factors which affect talent management styles in Premier Inn hotels........9
LO 3...............................................................................................................................................11
Hard and Soft skills required in current management and leadership styles in hospitality
industry......................................................................................................................................11
Future leadership and management skills needed in service sector...........................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Leadership accompanied by management is essential for individual and organizational
success. Management is the overall coordination and administration of tasks in an organization
while leadership is the direction function of management. A service industry is a sector of
business which is not involved in any manufacturing and works for customers by providing
services to satisfy their needs like education, health, hospitality, banking, transportation etc. This
report will focus on the hospitality industry's leadership and management styles. Premier Inn is
England's largest hotel chain brand that operates in various locations across Britain, republic of
Ireland and Germany. The report will assess internal and external factors which have an impact
on management structure of Premier Inn along with future leadership and management styles.
LO 1
Classical theories of management in context of hospitality industry
1. Fayol: Henri Fayol's administrative management theory explains how management
interacts with personnel. The theory describes 14 principles of management: Division of
work, authority, unity of direction, responsibility and command, discipline, reward and
remuneration, individual subordination, degree of centralization, order, scalar chain,
equity, stability of employees' tenure, Esprit de corps and initiative. These can be used to
mange hospitality industry in order to forecast, plan, make decisions, coordinate and
control. It can help with the process and organization management. (Edwards, 2018)
2. Taylor: Fredrick Taylor's scientific management theory emphasizes on efficiency. The
four principles of scientific management are- working by the most efficient method
instead of common sense through study work, simple assignment of worker to do any job
should be replaced with allotting jobs to workers based on their competencies and tain
and motivate them with maximum efficiency, monitoring their performance. Providing
supervision and instructions, allocating work between workers and managers so that
managers focus on training and development while employees perform productively. (Su,
2017) In hospitality industry this could be applied to enhance process management and
provide a fast and prompt service to the guests.
3. Behavioural theory: This theory was developed to account for worker behaviour and
motivation. It depends upon the idea that managers will better understand human side and
consider employees as assets for achieving goals. Factors like employee satisfaction and

working conditions are given importance. In hospitality industry workers should be
treated fairly and there should be a proper code of conduct which will keep them
motivated (Kitana, 2016)
4. Contingency theory: This approach to management states that leadership effectiveness
relates to task motivation and circumstances which is measured by least preferred co-
worker LPC scale and these are contingent upon managers' ability to control group's
situational favorability. It is determined by factors such as relationship between leader
and members, Task structure and Poer of positions. In hospitality sector, there are
chances of different circumstances being faced by the employees because of its dynamic
nature. The manager has to decide according to situations and assign tasks accordingly.
Organizational structure
An organization structure refers to the attitudes, policies, strategies, moral values and
basic framework which creates the organizational or work culture. (Ahmady,Mehrpour, and
Nikooravesh, 2016) Different types of organizational structures are:
1. Functional: This is one of the most popular structure where there is departmentalization
of the organization based on common job functions. Such structure will have divisions
like Marketing, Sales, Customer service, finance, Human Resources etc. as different
departments.
2. Centralized: In a centralized management a few individuals makes most of the decisions.
It is usually seen in a family business and follows a top-down approach. As the company
grows, there is addition of new levels of middle managers who are answerable to the
superior and the roles are strictly defined.
3. Decentralized: In this structure, the upper management transfers certain decision-making
tasks to lower levels. The overall authority is maintained by top-level management but
roles are not restricted. It is also known and a bottom-up approach model.
4. Divisional: This structure comprises multiple functional structures where each division
will have its own departments. This is ideal for organizations dealing in multiple
products. Another variety of this is market-based divisional structure where divisions are
according to market types, industries or customer types.