Leadership and Management in Hospitality Industry

Leadership and Management
for Service Industries

INTRODUCTION
Success of all the organisations regardless of industries in which they are being operated
significantly depends on the leaders and managers of the organisation. Hospitality is one such
industry which significantly gets affected by the leadership and management. Increasing
competition in the industry and retirement of frequent changes in the industry has made
leadership and management crucial to success. This report will discuss another leadership and
management in hospitality industry. The Dorchester is the organization which will be
contextualized for the discussion. This hotel is situated at London, UK it was opened in 1931 and
is a five star luxury hotel. This report will discuss about theories of management and different
management styles applicable in hospitality industry. This report will also discuss about skills of
leadership and management that are required for effectiveness of hospitality operations.
LO1
P1 Classical Management Theories
Management theories are theories and concepts of management that are applied in
organisational management. Different theories are based on different beliefs and classical
theories of management are based on the belief that workers only have economic and physical
needs. Social needs and job satisfaction are not taken into account (Nicotera, 2019). These
theories also focus and believe in specialization of labour, centralised decision-making, and
profit maximisation. Leadership in these theories is also centralised. Classical theories of
management includes Bureaucracy Theory of Max Weber, Administrative Theory of Henry
Fayol, and Scientific Management Theory of F.W. Tailor.
Administrative Theory
This theory of management is based on concepts departmentalization, this means that
different activities are performed for achieving organisational goals and values. Activities are
also performed on the basis of specialised skills and knowledge of the employees. This ensures
that task is completed effectively. In relation with hospitality industry its activities are divided on

the basis of departmentalisation such as housekeeping, front office and other department with
having people specialised in particular skill for the activities.
Scientific Theory
Scientific management theory is based on the scientific principles of management. This is
widely applied for engineering science at the production, shop and operational level. This
focuses in increasing efficiency of each individual in the organisation and emphasis on economic
efficiency and use of technology (Kumar, 2017). This theory is suitable when task is repetitive in
nature and tasks are simple and does not require any complex problem solving. In this context
this is not a suitable theory of management for service industry because it is suitable for
industrial organisations. There are several things in hospitality industry like task and activities of
housekeeping and many other that are of repetitive nature and this is why this theory can be
applied by The Dorchester.
P2 Role of Leader and different leadership style
Leadership is style is important for the organisation and this is affected by leadership
style, this makes that leadership style is also important for the organisational success (Huertas-
Valdivia, Gallego-Burín and Lloréns-Montes, 2019). There are several styles of leadership that
leader can adapt. These styles are-
Democratic Leadership- Democratic Style of leadership is one in which leader ask opinion of
other members in the organisation. This style is most effective when organisation is facing
problem and leader believes that opinion of other will help in solving the problem. Service
industry operating in present business environment should adopt this style of leadership so that
they can take utmost advantage of competency and skills of their member. This leadership also
encourages creativity and innovation in the organisation. This means that this is one style in
which opinion and thoughts of others can be considered while ultimate decision taking power
and authority remains with leaders.
Autocratic Leadership- This leadership style is one in which all the decisions are taken by the
leader and all members of the organisation are required to follow and do what leader decides
(Joshi, 2019). This is important and plays role when employees and members are limited
competent and requires assistance from leader.