Leadership Styles in Service Sector

The assignment delves into the significance of leadership style in the service sector, highlighting the emergence of digitalization and its impact on customer trends. It discusses how various leadership styles, such as transactional and servant leadership, can be adopted to improve performance and employee engagement. The study also examines the role of leadership in making effective coordination with stakeholders, using Docklands Academy's chain of restaurants as a case example.

Leadership and
Management for
Service Industries

TABLE OF CONTENTS
INTRODUCTION...............................................................................................................................3
MAIN BODY......................................................................................................................................3
Classic Management Theories.........................................................................................................3
Role of leader and different leadership styles..................................................................................4
Management and leadership style in Docklands Academy.............................................................5
Internal and external factors that has impact over management style.............................................6
Current and future management......................................................................................................7
Skills required by future managers and leaders in the service sector..............................................8
Comparison between change management systems and leadership in implementing the change. .8
CONCLUSION....................................................................................................................................9
REFERENCES..................................................................................................................................10

INTRODUCTION
Management and leadership skills are a necessary part in running or operating a service
industry. Like any other industry, the main objective of a service industry is to serve consumers
well and to earn adequate amount of profit. Docklands Academy is a London based industry who
has partnership with three restaurant chains which includes 21 food and beverages operations
(Kirkland, 2018).
The study will explain about the classical management theories and how they are applied in
services sectors, role of leadership. Report will describe various internal and external factors that
can impact on management style. Furthermore, current leadership style will be examined alone
with future management .
MAIN BODY
Classic Management Theories
The classic management theory is a pool of 3 overlapping theories which are scientific
management, administrative and bureaucratic theory.
The first theory is scientific management given by Fredrick Taylor. It analyse and synthesize
work activities and complete the work in one of its best way. It focuses on increasing efficiency,
majorly labour productivity. He gave 4 significant principles of scientific management. Firstly,
management is a science and not rule of thumb i.e. it is flexible to organisation structure of Hazev,
Haz and Tas. Secondly, management in Docklands Academy is pursued by harmony and not
discord. Thirdly, the organisation works smoothly with cooperation and not individualism. And
lastly Docklands Academy works on the development and prosperity of each and every employee.
This theory pays more attention on raising operational efficiency of employees, it states that if
management uses intensive technologies then it can give better results to Docklands Academy. It
explains that mangers are required to make proper planning for each task and has to supervise
performance of staff members. There is requirement of giving proper training to employees sothat
they understand their job role. Haz restaurant managers have to give financial incentives to their
staff so that they be more productive.
General administrative management of Henri Fayol states 5 functions of management
planning, , directing and organizing, controlling. It explains that managers are responsible for
initiative as they have to take initiative every time for the growth of business. Furthermore, they are
responsible for raising interest of stakeholders. This theory explains that planning is the major role

of managers, management of Haz restaurant has to make proper planning and have to organise
things in systematic manner so that work can be managed effectively. Mangers of Haz restaurant
are responsible for making high command over employees and coordinate with them in significant
manner. This can give better results to business sand can help in retaining staff for longer duration.
bureaucratic theory of Max Weber is the most efficient for organisation. It was based on
principles of job specialization, career orientation, formal rules and regulations and impersonality.
Docklands Academy bureaucratically managed Hazev, Haz and Tas. Firm operates with systematic
departments and policies (Jelinek, 2015). This theory states that there must be clear task
distribution among all employees by considering their capabilities. Management have to make
control over them so that mistakes can be minimised.
Role of leader and different leadership styles
Role of Leader
 A leader initiates action in its team. Leader of Hazev, Haz and Tas is responsible for taking
right actions in order to minimise complex situations in company. Leaders play the role of
initiator in Haz, hazev and tas restaurant, they find innovative ideas and implement those
ideas for the growth of company.
 A leader inspires and motivates its fellow team mates. Leader’s role in Hazev, Haz and Tas
restaurant is to motivate workers and make them positive towards the brand. Leaders play
role of motivator, they encourage other staff members so that they perform their duties well
and retain in business for longer duration.
 A leader guides its team members and builds their confidence. They play the role of guid,
they direct employees and make them aware with their role and responsibilities. It raises
their productivity in firm.
 A leader helps in synchronising and coordinating the work of its team members.
 A leader administers and controls the workflows of its team.
Role of different leadership styles
There are 3 basic leadership styles: -
 Autocratic leadership style – In this leader holds all power to take decision himself. It plays
role in quick decision making. The power of the leader is not diluted, hence give him high
independency. It is useful in organisations as it has a high volume operational function and
it takes limited time for decision making (Popli and Rizvi, 2015). This is the type of
leadership where higher authorities makes high control over staff and force them to follow

their instructions. Here workers have no rights to say anything to make direct
communication with staff members. This makes employees demotivated and they think to
leave their job soon. Bot it is helpful in maintaining discipline at workplace.
 Democratic leadership style – This leadership style where a leader consults its team
members before reaching to final decision. It is significant to any service organisation
because it shares the burden of decision making and problem solving. It keeps employees
informed and motivated.. they involve people and take their suggestions. This creates
healthy workplace atmosphere and all employees support management in each decision. In
this type of style, leaders involve people in decision making process and give them power to
make their own judgement. By this way staff feel valued and always support management in
every complex situation.
 Laissez-faire style –leadership style where a leader gives its team members complete
freedom and authority to take the decisions. It plays an important role in any service
industry as it encourages employees, extends a scope for creativity and innovation.
Authority in the hands of employees gives them the feeling of ownership and they stay
motivated & determined towards their work (Nawaz and Khan, 2016). Here leaders behave
in both manner sometimes they behave hard so that employee perform their work seriously
whereas sometimes they behave so friendly so that workers feel comfortable.
Management and leadership style in Docklands Academy
Management and leadership styles refer to the style a manager or a leader interacts with others
in the organisation. There are basically 4 types of management and leadership styles persistent in an
organisation.
Consultative Style
Under this style, the management or leader present the subject or problem and ask for the
reviews or suggestions from subordinates. The decision is made by the leader in respect to the
reviews and suggestions collected. There is a two-way communication process and takes longer
time in establishment. But it supports business in minimising confusions and encouraging
employees.
Participative Style
Under this style, the management or leader combined together with subordinates to work on
the problem or subject matter and make the decision accordingly. The authority and power is
decentralised throughout the organisation. It is suitable for an organisation where skills and

intellectual abilities of employees are similar. The employees under this style are self directed and
motivated (Yahaya and Ebrahim, 2016). This type of leadership and management style
implemented by leaders and managers of Hazev, Haz and Tas restaurants. They involve people and
take their suggestions every time. This aids business in making them positive and minimising issue
of high staff turnover. Furthermore, participative leadership style develops friendly atmosphere that
assist in improving communication among all workers. By this way they coordinate with each other
efficiently and contribute well in accomplishing goal of business unit.
Docklands Academy with three restaurants chains, Hazev, Haz and Tas focuses on choosing
a mix of participative and consultative management and leadership style which delegates the power
of decision making to managers of different departments. The authority is diluted manager
regarding their way to implement digitalisation in the organisation.
Internal and external factors that has impact over management style
The internal which are under the control of organisation such as people and structures. The
internal factors affect the mission and working of organisation. The internal factors guide the
workflows and process of the company. It defines cooperation and harmony in the organisation.
Internal factors are such as mission, communication, learning etc. Hazev, Haz and Tas follows
tall structure in which people have to follow instruction of higher authorities have to work
accordingly.
 Communication is the main internal factor, leaders or managers style get affected by this
element, as there is long chain of hierarchy that sometimes create confusion. If
communication is not proper, then leaders would fail to understand needs of employees in
such condition they will fail to guide them well. If there is improper communication them
employees will not be able to understand their role, in such condition managers will have to
make changes in their management style so that work can be done effectively.
 organisational structure is another major internal factor that has impact on leadership style,
if there is tall structure then workers fail to contact with top management directly which
some times create pressure on them and they leave job, hence managers have to make
changes in their style so that employees feel happy in workplace and perform well.
Here higher authorities have good relationship with employees but still all the decisions are
taken by top management. People can work after getting approval from supervisors. In such
condition Hazev, Haz and Tas restaurant management has to arrange their style accordingly so that
discipline can be maintained and all the workers can coordinate with each other effectively.
External factors are such as economic condition, political fluctuation etc. These affect the
management styles as manager has to continuously monitor and adapt to the external factors. They

have to make proactive changes rather to make reactive approach. Likewise, Docklands Academy
acted to technological factors by bringing digitalization in their whole organisation (Dhar, 2016).
 Technologies: Digital technologies affect management style to great extent. Digital
technology supports in developing coordination among all workers and all the people work
together and work hard for accomplishment of business goal. By this way managers can
become able to develop friendly relationship with employees that aids in managing them
well.
 Social factor: if culture and believes of staff are different, then managers have to change
their managing style so that they can make employees comfortable which can build bonding
with them. In the absence of them they will not be able to perform well.
Current and future management
Good management can be achieved if resources for the service provisions including
finance, human resource and other department of the service sector are managed and motivated by
its leader in Docklands Academy in order to operate all the restaurants (Hazev, Haz and Tas)
smoothly which are under Docklands Academy.
Management and leadership skills are essential in delivering good services, a good leader or
manager require effective management skills. Management could access various “Hard” and “Soft”
skills for the service sector (Wright, 2017).
Hard skills are crucial part of the skills set that is needed for any job, they may include
expertise that is necessary for a person to be successful in the job. For increasing the efficiency and
affectivity in service sectors, hard skills plays an important role as it included teaching skills and
abilities in order to provide satisfactory services to their customers. Hard skills or competencies
necessary for the hospitality leaders and management is largely depend upon individual
specifications for management role. It further includes skills or competencies like food and
beverages management, sales and marketing skills, communication, etiquettes, leadership, human
resource management, etc., hence this skill can be taught in order to get the best out of the
managers and leaders. For example: leaders of British airline company adopt hard skill, this skill
aids them in handling people well and maintaining discipline at workplace.
Soft skills encompass interpersonal and introspective skills that are harder to quantify or
learn without getting the benefits of real experience. In a hospital management studies, the
managers and leaders should have soft skills that includes tech management skills (the managers
and leaders needs to know and understand the utilization of technology in the industry which
increases the opportunities in career development and plays a vital role in run the operations and
promote the restaurants) and, work ethic, teamwork : The ability to build support within the team
and understanding hoe to gain trust of their team members by cooperating, listening and by creating

a positive environment among the team, problem solving skills, flexibility or adaptability,
interpersonal skills, Coaching, Influencing ability etc. for example: Hazev, Haz and Tas restaurants
leaders adopt soft skills that supports in developing healthy or friendly workplace culture.
Both the skills are equally important for the managements and leader as it helps the smooth
functioning of the organisation and can lead the business towards success. The evidence has been
proved my many hospitality industries that without development of the hard skills and soft skills,
the managers cannot guide their team members and it affects the business badly (OLOLUB, 2018).
Skills required by future managers and leaders in the service sector
Company always aims to grow well in market and for that it is essential to improve skills in
management. (Chen, Zhu and Zhou, 2015).
 Tech management skills: Managers and leaders of company is required to develop
technological skills within them. If they have poor technical capabilities then they will not
be able to deal with consumers and employees in effective manner which will affect
workplace productivity. Hence managers and leaders both need to improve technical skills.
 Decision making skills: Managers and leaders of company should improve this skill within
them, they become capable to make sound decision then they will be more productive for
business. In such condition they will be able to make their staff positive and they will work
better in this service business.
 Motivating skill: Leaders and managers of company should develop this skill in them,if they
motivate workers and make them feel valued then they will put hard efforts and will
contribute well in accomplishing organisational goal (Wright, 2017).
Comparison between change management systems and leadership in implementing the change
It is very important for business to implement different management and leadership styles as
per necessity of situation (AMAR, 2018.). Hazev, Haz and Tas restaurants should take support of
participative leadership style, this will be helpful in involving people in decisions, if their
involvement is high then employees can feel happy which will raise their productivity. This type of
leadership must be adopted by service sector companies.
Managers and leaders of tourism industry have to take assistance of push approach, they
have to direct their workers properly so that they can understand their role and can perform it well.
Tourism industry management or leaders can take support of transactional leadership, they
have to give rewards to their workers so that they pay more attention towards their work which will
raise performance of business unit.

CONCLUSION
Above study can be summarized as leadership style is essential for success of the service
sector and the emergence of digitalisation is increasing day by day in the service sector, the need of
innovation and creativity in this sector is required as the customers are moving with the trend.
Digitalisation can supports in making effective coordination with stakeholders. Docklands
Academy uses various styles of leadership in order to provide their chain of restaurant to run
smoothly and provide their customer maximum satisfactory level.

REFERENCES
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