Leadership and Management for Service Industries

This document discusses the role of leadership and management in service industries, focusing on classical management theory, leadership styles, and factors influencing management style. It provides insights into the Four Season London company in the hospitality sector and its use of classical management theory. The document also explores the different leadership styles used by leaders in the company and the impact of internal and external factors on management style. Overall, it highlights the importance of effective leadership and management practices in achieving organizational goals and objectives in the service industry.

Leadership and
Management for
Service Industries
1

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Applying of Classical Management Theory within service industry.....................................3
P2 Role of leadership and various leadership styles....................................................................5
P3 Management and Leadership in service sector.......................................................................6
TASK 2............................................................................................................................................8
P4 Internal and external factors in which are influencing the management style in an
organisation..................................................................................................................................8
TASK 3............................................................................................................................................9
P5 Hard as well as Soft skills......................................................................................................9
P6 Future of management and leadership skills........................................................................10
TASK 4..........................................................................................................................................11
P7. Different Service sector companies’ and different management systems and Leadership
styles they follow.......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
2

INTRODUCTION
In order to ensure long term sustainability and profitability leadership and management
practices play a very important role. Both of these functions have a very important role to play in
maximizing productivity of organisation. A process in which a person acts as a guide in a group
in order to influence behaviour of followers or other employees in an organisation in order to
achieve goals and objectives of organisation. Managers are given hierarchical position in an
organisation whose duty is to manage job done by others (Ling, Lin and Wu, 2016). Leaders as
well as managers both are important for an organisation. Both of them together engage in ways
of giving guide, support, direction to employees so that they can fulfil their goals in efficient
ways. With effective guidance of them employees can easily fulfil their aims and objectives.
Following report is created on, Four Season London. This company is related to hospitality
sector and provides different types of facilities to their customers. Discussions on this report are
made about classical theory of management. Role of leaders and managers are also shown in it.
Then it discusses about external as well as internal factors effecting management style in an
organisation.at the end this report includes future leadership as well as management skills.
TASK 1
P1 Applying of Classical Management Theory within service industry
Classical management theory depends on assumption that an employee is only concerned
with economic and physical need they do not worry about job contentment or any of social
needs. These mainly talks about maximizing profits, labour specification, centralised
leadership and decision-making process. There are a number of such theory present with
the help of which an organisation comes to know about management as well as leadership.
Workplace manager and leaders at four seasons uses this in order to increase effectiveness
and efficiency in their organisation. Below mentioned are two mainly used theory and their
relationship with organisation:
Weber theory of Bureaucracy:
This is one of the most essential theory of classical management. This brings advantages
to an organisation organization with principles of bureaucracy. This theory’s major aim is
to focus on implementation of rule, hierarchical structure, division of labour, team making
3

etc. this theory also states that power has a tendency to make people obedient. In this
context there are a number of principles defined in comparison with Four Season London.
Division of Labour:
This states that, every individual has a power to bring in potential and capabilities to do
operation in an organisation or workplace. In context of the given company Four Season London
it is important to analyse the capabilities and skills of workers and human force of organisation
(Wu, C. M. and Chen, T. J., 2015). In order to allocate work to them. This helps an organisation
to bring in specialisation in work of employees and also helps an organisation to increase the
productivity of organisation in total. It does not only increase satisfaction level of employees but
help maintain a healthy environment in organisation that helps in increasing revenue thereby
increasing profits of the company.
Chain of command:
The chain of command set the hierarchy in an organisation. Commands start from higher
authorities and then are passed to those at lower levels.in this case it is duty of manager to make
sure that hierarchy is implemented in an organisation properly. This helps in saving time, proper
communication or orders as well as task and stimulates productivity in an organisation
automatically.
Rules and requirements:
This is most important part of an organisation which is directly related to performance of
employees. With regard to this manager in Four Season hotel undertake a number of policies and
procedures to fulfil requirement of workforce. With the help of its employees can ensure that all
the departments in an organisation are uniform and work well coordinating with one another.
Career orientation:
It is also an important part of an organisation as it tells that every employee in an
organisation must be placed at right position which matches their skills and capabilities. It does
not only help to increase efficiency in an organisation but it also helps to increase overall
profitability in an organisation. When analysing Four Season manager needs to take care of skills
of employees and their position in organisational structure.
Taylor' scientific management theory
Taylor’s scientific management theory was developed by F.W. Taylor (Psomas, E. L. and Jaca,
C., 2016). Work of this theory is to maximize efficiency of an employee in order to fulfil his role
4

in organisation. It also states that motivation plays an important role in an organisation. In order
to get required results from an employee it is very important to motivate and appraise them. With
context to Four Season London managers need to make sure that they are effectively motivating
their employees. Taylor’s theory has four different fundamental principles.
Principles of Taylor's scientific management theories
 In order to take advantage of this practice in efficient manner a manager can use ‘rule of
thumb and take advantage from this principle.
 In order to a lot task to an employee in workplace it is important for an organisation to
first judge their capabilities and skill and only them assign them work.
 An employee is needed to get proper supervision and instruction, their work is required to
be monitored from time to time so as to make sure their capabilities are used to fulfil
objectives of organisation effectively.
 The roles of superior and subordinate must be clear. Administration need to clearly plan
and train employees so as to make best out of given resources. This will help employee to
take orders from one person and clear their query whenever they require to.
Thus, as per above principles discussed it is important for a manager to deeply analyse all the
qualities, capability and skills of employees present in their organisation. Also, after this
analysis they are to be assigned tasks accordingly. This does not only reduce errors in work
but also helps in increasing performance of employees as well as organisation as a whole.
While taking help from scientific principles organisations can make proper improvement as
per their practices and can also ensure growth in organisation.
P2 Role of leadership and various leadership styles
All the organisations which are related to hospitality sector mainly aims at giving maximum
satisfaction to their customers. This helps organisation to build a good brand image in market
and attract more and more customers. It also ensures long term sustainable growth of an
organisation. To fulfil this leader, have an important role to play in organisation (Shek, Chung
and Leung, 2015). Leaders are the one who motivates employees and move their efforts towards
organisational goals and objectives. Employees and human resource in an organisation are one of
the most important resource as this cannot be copied by any competitors. In a hospitality sector
human force plays a major role. In context to Four season London managers take a lot of efforts
to make strategies which will help them satisfy need of their customers and provide them
5

maximum satisfaction. Leaders also develop a course of action in order to ensure sustainable
long-term growth in an organisation. Leaders also identify and provide extra support to
employees in order to enhance their performance level. Leadership styles are prevailing in
market which helps leader to fulfil their jobs (Jaca. and Psomas, 2015). In context of Four-season
London, leaders usually follow autocratic style of leadership. It helps them perform their task in
most effective manner. It also helps them achieve maximum satisfaction for their customers.
They use democratic style of leadership also. This helps them compete with their competitors
and survive in market for a longer period of time.
P3 Management and Leadership in service sector
Management and leadership are important aspects in every organisation. It does not matter
what size or scope an organisation have it can be easily applied to every organisation.
Management as well as leadership helps an organisation to grow and achieve its aim and
objectives. It also allows an organisation to move towards growth. Analysing Four Seasons
London, managers and leaders have a benefit of taking advantage of a number of styles in order
to maximize both profitability as well as productivity in business. It helps an organisation in
terms of quality as well as quantity.
Leadership Styles
Leaders in Four Season London use two types of leadership styles. These include
autocratic as well as democratic leadership styles. They use these to fulfil goals and objcetives in
a given time period. In context of Four Season London these two styles of leadership are
explained below:
Autocratic:
Leaders use this style in order to centralize all their work effectively and efficiently.it also helps
in decision making purpose. This also helps in encouraging and motivating workforce in an
organisation. In this leader are the only one to take decisions. They do not share their powers
with any of the subordinates (Noe and et. al., 2017). In Four Season leaders uses this style in
order to take effective decisions on time. This helps in quick decision making as they do not need
to discuss it with anyone before taking decision. It has also been analysed that this style of
leadership helps an organisation to accomplish their tasks and objective efficiently and
effectively.
6

Democratic:
In democratic form of leadership, leaders give employees with opportunities to take decision or
even take part in the process of decision making. They take opinions from employees while
taking any decision. In context of Four Season London democratic leadership style help in
cooperating with employees and creating an environment in workplace which is healthy and
cooperative (Veríssimo and Lacerda, 2015). This helps to motivate employees and also increases
performance level of employees. Employees feel a sense of belongingness and this also helps in
reducing employee turnover rate in organisation
Management Styles
There are a number of management styles which are used by managers so that they can
fulfil their aims as well as objective in an organisation. This also helps to subordinate the work in
an organisation. Another function of management style Is to organisational functions as per need
and requirement of organisation. In context of Four Season London below mentioned are two
management styles commonly used by its managers:
Participative Style:
In this type of management style, a manager allows employees to take part in some or
major roles such as decision making in an organisation. IN this way manager uses skills and
competencies present with their employees and benefit organisation. With the help of this
manager at organisation are able to motivate the employees. This also helps in increasing
productivity of employees. This happens because satisfied employees tend to be great asset for
an organisation.
Consultative style:
In this type of management style, a manager asks employees to give suggestions and
ideas before decision making. However, the power to take decision stays with managers only. In
context of this report, Four Season London managers at organisation gain trust of employees and
make them more loyal and dedicated towards the organisation. This also helps managers to
increase a sense of empowerment within employees of organization. Also, this style is proven
best to improve employee participation in business, it increases engagement of employees in
business activities and also helps in maintaining good competency level among employees.
7

TASK 2
P4 Internal and external factors in which are influencing the management style in an organisation
The environment in which in an organisation works keeps on changing from time to time. It is a
dynamic environment and every organisation needs to adjust its function as well as operation in
accordance with environment (Mesu,, Sanders and Riemsdijk, 2015). These factors effect a
business positively as well as negatively in different cases. In order to exploit these factors a
business needs to do proper analysis of such factors. Studying these factors will help an
organisation to ignore the negative aspects of all these factors which an organisation will have to
face otherwise. An organisation needs to understand how does these factors affect management
style of an organisation. It is duty of an organisation to make strategies in order to overcome
negative effects of these factors on their business. These factors are divided into two wide
categories which are negative and positive aspects, both of which are mentioned below:
Internal Factors
Various internal factors which have an effect on management style in an organisation are
mentioned below:
Employees:
Employees or human resource in an organisation are said to be one of the most important
resource in an organisation. In hospitality sector it has been seen that the work which is
performed by employees is somehow directly relate to satisfaction of employees. This makes a
huge impact of employees upon management style followed by hotels. This makes it necessary
for four Season London to make sure that all efforts of employees are directed towards
organisational goals and objectives. For an example if strategies which are created by managers
do not fit in organisation and employees are not befitted from it, this may lead to a number of
unfavourable outcomes for organisation. Thus, it becomes essential for hotels to make sure that
management style followed by them bring out favourable outcomes and help in guiding
behavioural characteristics as well as code of conduct of employees in an organisation
effectively.
Capital:
Capital is another important resource foe an organisation. Organisations cannot function
if they do have enough capital for smooth flow of business in an organisation. Capital tend to
have a great impact on functioning of an organisation. This makes it important for a manager to
8

formulate strategies keeping in mind capital available with them or with organisation. Effective
use of funds should be made by managers of an organisation. In context of Four Season London
it have been analysed that managers management style is undertaken by managers only after
analysing capital available with hotels so that they not negatively affect organisation due to lack
of funds. Also, it is necessary for managers to utilise funds in such a way that it brings
satisfaction to customers as well as new innovations for organisation.
External factors
There are also a number of external factors which have an influence on management style in an
organisation (Dhar, 2016). Such factors are mentioned below:
Technological up-gradation:
Technology has been seen to evolving continuously in a marketplace. It brings innovation
in environment and organisation both. It is nature of a customer that they always seek for better
and upgraded technologies.in context of Four Season London managers make sure to keep
technological advancement in mind while taking any decision or bringing any change in their
hotels framework. This helps them in gaining maximum customer satisfaction with hi-tech
services provided by them. This also ensures long term sustainability of Four Season in
hospitality sector.
Customers:
Customers are said to be king in a marketplace. They have enough power to influence
functioning as well as operations of a business in marketplace. This makes it important for
leaders and managers to adopt the most suitable management style once they have identified
needs as well as expectations of their customers from them. This also helps them to know about
current trends in market as well as changing perception of customers in a market place. With the
help of this study Four season can benefit from high profitability as well as loyalty from their
customers.
TASK 3
P5 Hard as well as Soft skills
Soft skills are qualities which are possessed by every individual, they usually differ from person
to person (Hsiao, Lee and Chen, 2015) . Whereas hard skills are those which can be linked to job
skills. Four Season have undertaken following hard and soft skills:
9

Soft Skills
Communication:
Communication is very important in Four Season London because being in hospitality
business its employees have direct contact with their customers. If managers have good
communication skills roles and responsibilities can be duly communicated to employees leading
to no barriers in them understanding of it. This also helps in increasing efficiency in an
organisation.
Leadership:
Leadership is another important aspect in Four Season London because it is duty of
managers to direct all work and efforts of employees towards organisational goals and objectives
(Huang and et. al., 2016). Leaders take help of this to encourage employees direct them in order
to increase their productivity as well as organisations profitability.
Hard skills
Taking four Season London in context various hard skills which are undertaken by its
managers are punishments for employees, demotion as well as firing of employees, operating in
a rigid structure as well as centralisation of all power. This helps them to have control over
various situation and also helps in quick decision making. This have positive affect on
organisation and helps in accomplishment of goals in an efficient way.
P6 Future of management and leadership skills
Future of leadership skills:
In Four Season London leaders take advantage a number of skills which include decision
making, management of time, making employees work together etc. These are steps taken in
order to conduct work in an organisation with utmost efficiency and effectiveness. Leaders also
make sure that organisational roles as well as responsibilities are executed and fulfilled in best
possible manner by employees at organisation (Shin and et. al., 2015). This helps creating good
working condition, positive environment and trust of employees on organisation and each other
while functioning to achieve goals of a business. This also leads to increased productivity of
employees which directly leads to higher profitability and turnover for hotel.
Future of management skills:
In Four Season London managers are responsible for performing their job by undertaking
advantages of various management skills. They delegate jobs to their subordinates. This help
10

them to ensure that objectives and goals of organisations are accomplished efficiently within the
given time frame. With these there are also other tasks that managers at Four Season require to
do. They need to allot tasks to employees based on their skills and experience. In this manager
have to first evaluate skills of employees then job roles and then match job roles with skills of
employees. Only after all these steps are performed managers allot tasks to employees. This
increases task efficiency and also helps in fulfilment of individual as well as organisational
goals. Managers also need critical thinking in a number of situations (Popli and Rizvi, 2015).
This is required to overcome various complex situations which a manager might face while
working in organisation. Various issues or conflicts may arise in between employees which are
to be resolved by managers. These are areas and situations where a manager might require
critical thinking while accomplishing their job.
TASK 4
P7. Different Service sector companies’ and different management systems and Leadership
styles they follow
Every organisation in today’s era have a different way of functioning and conducting their tasks.
There are a number of models, principle and styles present in management. Each company
chooses one amongst them which is best suitable for their goals and objectives. In context to this
report following are various leadership style and management style used by four Season London
and Emirates (Nieves and Segarra-Ciprés, 2015) . Both of these are from hospitality sector but
have different styles in leadership as well as management. This happens because objectives of
both companies might not be same.
Four Seasons London Emirates
 It is important for managers of Four
season to provide proper guidance to
their employees. Along with these they
also need to motivate and support them.
Continuous motivation is very helpful
in getting employees to perform well in
an organisation. Also, it is necessary
 Emirates uses proper training for their
employees. They also provide proper
monetary incentives and perquisites to
their employees in order to retain them
in organisation. This also encourages
employees to perform good. Employees
find it easy to deal with changes and
11

for managers and employees to keep
supporting their employees and
providing them guidance so as to
increase their skills and competencies.
Leaders in this organisation use democratic
leadership style. They take help from this
leadership style and provide motivation to their
workforce by including them in decision
making process. This will help them increase
their performance and also give them a sense
of belongingness towards the organisation
(Shamim and et. al., 2016).
modifications in organisations then
(Wu and Chen, 2015).
 Emirates takes help from contingency
style of leadership. They aim at
encouraging their workforce so that all
functions can be conducted as per the
requirement of guests and organisation.
.
CONCLUSION
As per this report it can be concluded that management style and leadership have an
important aspect in any organisation. This importance increases when analysing an organisation
in service sector. Taking help from leadership styles and management styles an organisation
effectively directs efforts of employees towards goals and objectives of company. With this there
are a number of factors which are internally as well as externally affecting functions of an
organisations which have been mentioned in this report. In order to avoid any factor affecting
organisation negatively organisations take in use management and leadership styles so as to
increase efficiency of organisational work. Also, while a manager undertakes a number of hard
and soft skills in order to guide their employees so that they can increase their performance level
and add to objectives of organisation. This increases profits of organisations and help it survive
in long-term sustainably.
12

REFERENCES
Books and Journals
Shin, Y. and et. al., 2015. Top management ethical leadership and firm performance: Mediating
role of ethical and procedural justice climate. Journal of Business Ethics. 129(1). pp.43-
57.
Popli, S. and Rizvi, I. A., 2015. Exploring the relationship between service orientation, employee
engagement and perceived leadership style: a study of managers in the private service
sector organizations in India. Journal of Services Marketing. 29(1). pp.59-70.
Nieves, J. and Segarra-Ciprés, M., 2015. Management innovation in the hotel industry. Tourism
Management. 46. pp.51-58.
Shamim, S. and et. al., 2016, July. Management approaches for Industry 4.0: A human resource
management perspective. In 2016 IEEE Congress on Evolutionary Computation (CEC)
(pp. 5309-5316). IEEE.
Wu, C. M. and Chen, T. J., 2015. Psychological contract fulfillment in the hotel workplace:
empowering leadership, knowledge exchange, and service performance. International
Journal of Hospitality Management. 48. pp.27-38.
Psomas, E. L. and Jaca, C., 2016. The impact of total quality management on service company
performance: evidence from Spain. International Journal of Quality & Reliability
Management. 33(3). pp.380-398.
Shek, D. T., Chung, P. P. and Leung, H., 2015. Manufacturing economy vs. service economy:
Implications for service leadership. International Journal on Disability and Human
Development. 14(3). pp.205-215.
Jaca, C. and Psomas, E., 2015. Total quality management practices and performance outcomes in
Spanish service companies. Total Quality Management & Business Excellence. 26(9-
10). pp.958-970.
Noe, R. A. and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Veríssimo, J. M. and Lacerda, T. M., 2015. Does integrity matter for CSR practice in
organizations? The mediating role of transformational leadership. Business Ethics: A
European Review. 24(1). pp.34-51.
Mesu, J., Sanders, K. and Riemsdijk, M. V., 2015. Transformational leadership and
organisational commitment in manufacturing and service small to medium-sized
enterprises: The moderating effects of directive and participative leadership. Personnel
Review. 44(6). pp.970-990.
Dhar, R. L., 2016. Ethical leadership and its impact on service innovative behavior: The role of
LMX and job autonomy. Tourism Management. 57. pp.139-148.
Hsiao, C., Lee, Y. H. and Chen, W. J., 2015. The effect of servant leadership on customer value
co-creation: A cross-level analysis of key mediating roles. Tourism Management. 49.
pp.45-57.
13

Huang, J. and et. al., 2016. The impact of CEO servant leadership on firm performance in the
hospitality industry. International Journal of Contemporary Hospitality Management.
28(5). pp.945-968.
Ling, Q., Lin, M. and Wu, X., 2016. The trickle-down effect of servant leadership on frontline
employee service behaviors and performance: A multilevel study of Chinese hotels.
Tourism Management. 52. pp.341-368.
14