Leadership and Management for Service Industries Assignment

Leadership and
Management for
Service Industries

Table of Contents
Introduction........................................................................................................................2
LO1....................................................................................................................................3
P1: Application of the classical management theories in the service sectors...........3
P2: Leadership roles and style in the service sector..................................................4
P3: The management and leadership styles in ‘Crown Plaza Hotel and Resort’......6
M1: Relation between management and leadership styles and organisational
structure and culture in the service sectors...................................................................7
LO2....................................................................................................................................7
P4: Influence of the internal and external factors in the management styles and
structures of ‘Crown Plaza Hotel and Resort’............................................................7
M2: The internal and external factors influence the management styles and structures
in the ‘Crown Plaza Hotel and Resort’...........................................................................8
LO3....................................................................................................................................9
P5: ‘Hard’ and ‘Soft’ skills of current management and leadership process..............9
P6: Management and leadership skills that are required in the Future service sector
..................................................................................................................................10
M3: Crucial current and future management and leadership skills in the service
sectors..........................................................................................................................11
LO4..................................................................................................................................11
P7: Different service industry organisations’ change management systems and
implementation of leadership in that change...........................................................11
M4: Effects of the change management on the management and leadership skills and
styles............................................................................................................................13
Conclusion.......................................................................................................................15
Reference........................................................................................................................16

Introduction
Service sectors management is a difficult task as in these service employees and
customers have direct contact. So providing better service while showing the skills is a
great deal for the organisation. As day by day, new technologies and procedure are
introducing this is also changing the service sectors situation in the market. In this
discussion, we will see the application of the management theories in the service
sectors. Different management and leadership styles and structure of the organisation
and influence of different factors in those management and leadership style and
structure. Also, we will see the change management implementation in the service
sector (Nazarian and others, 2019). For this discussion the organisation we will portray
is ‘Crown Plaza Hotel and Resort’ which is a multinational hotel chain service do their
business in Europe, Asia, Africa and even in the United States. We will describe all the
situation based on this organisation context.

LO1
P1: Application of the classical management theories in the service
sectors
A great deal about the service industry is that they have provided service and comfort to
the customer and in returns they get profit. Management in this sector is very important
issues as they always try to provide the best service to their customers. Management is
the process of setting objectives and strategies for the organisation while they also
coordinate their employees’ effort for better output. An organisation function on the
basis of different theories and for management with the help of these theories they
ensure to create a better workplace. Some of those theories stated below
The Classical Management theory: Classical management theory was based on the
19th-century context which belief that workers work for their physical and economic
need. Because they have the strength and they need the money that’s why they seek
for work. The management process would divide into three categories with this classical
management theory context. The Top level with the owner and chairman body, Mid-
level with the intelligent workers and other managers and supervisor and the low level
with the physical workers. The whole classical management was about structural work,
where motivation was not an issue and workers’ strength was judges with their output
from the work. The leadership and decision making was centralised for the Top level
and organisation focused on profit maximisation only.
Henry Fayol’s Management Theory: Henry Fayol’s Management theories is the most
followed theory in the modern context. Henry Fayol’s management theory focuses on
the Broadway where they think about personal interaction. Henry Fayol’s stated 14
principles in his theory which focus on the product management stuff and strategies in
an organisation. As we are discussing the ‘Crown Plaza’ hotel chain in the UK they
also follow this theory in their organisation. They believe those principles and with the
five basic way that Fayol stated in his theory, they try to interact with personal for
product management. First Plan, according to Fayol’s theory management, first plan
about their work and schedule their future action with the plan. Then Organise,
management now gather their all kind of resource. Then Command here comes their
leadership part. Management board select leader for their planned project and leaders
command and guide their work for the project. Then Coordinate, this is a part where
management makes sure that all their workers from every level coordinate with each
other and do great work (Mahmood, Basharat and Bashir,2012). Last is Control, here
management compares their planned result with the outcome and tries to find a
loophole for the gap and follow the procedure again for the next project. This is how
Fayol’s theory is applied to the organisation.

Figure 1: Henry Fayol’s Administrative Management
(Source: eas-assurance.eu, 2019)
Scientific Management theory: Fredrick Winslow Taylor is the creator of this Scientific
management theory. This theory focuses on the application of science in the managerial
process. Taylor first placed the thought of applying engineering science in the
production sector. In his theory, he shows the application of machine and human in the
production area for better result. He focused on some point for this managerial process
which also now being followed with other sectors like service and others. Like Small
team, according to Taylor, the whole work will be divided in the small sector and only a
number of worker will be assigned to each sector that’s how teamwork will be formed in
the production. Service sector like ‘Crown Plaza’ hotel chain also follows this teamwork
method in their organisation. Supervision, Taylor shows the function of foremanship in
supervision. Based on his theory each team for the work need a distinct supervisor who
will lead them properly. Like this improvisation of work, employees work study etc. now
being followed by in the modern management context. Though the Scientific
management theory is for the production industry but service sectors also now following
this theory to some extent as they are now emerging with technology.
P2: Leadership roles and style in the service sector
The role of the leader in an organisation in one word is leading the employees to
achieve the planned goal. Role of the leadership is very important for an organisation
for the service industry. The service industry has to face great competition in the market
as anyone can offer the same service to the customer. So they have to do things
differently and manage their work procedure in such a way so that they can show the
customers the differences and can hold on to them. The role of a leader in this context
plays an important role. The main role that the leaders play is influenced and guide their
employees. Managers make a plan and set a goal for the organisation and the leaders
influence the employees to achieve it. Leaders lead a set, plan with them, set the work

procedure and motivate them for work. As service sectors have a direct connection
between customers and employees, they always have to give their best to work and a
leader can do nothing but help and motivate them in this sector.
Leaders play a really important role in leading the employee in an organisation but they
follow the different style in leadership. According to the service sector, context leaders
follow different types of styles than other organisation some of which has stated below.
Transformational leadership: Transformational leadership is a kind of influential
leadership where which the energy, positive emotion and proper strategies leader lead
his team member. A leader thinks about the potential of employees and guild them to
achieve the organisational goal. This types of leadership lift up employees’ mode and
help them to boost their energy to doing better (Shaw, Bailey and Williams, 2011). For
the service sector, this is one of the best leadership styles.
Situational leadership: situational leadership emphasis on the situation of the leadership
in a process. It follows two kinds of theories which are discussed below.
 Hersey and Blanchard's leadership styles: This is one of the theories for the
situational leadership which followed by 4 styles of leadership they are
i) The Telling style: In this style leaders gives orders to the employees for work.
ii) The Selling style: In this style, the leader convinces the employees for
following the ideas and message that the leader wants to deliver.
iii) The Participating style: in this styles leader focus on employees involving
more and allow them to make the decision for the work.
iv) The Delegating style: in this leadership process leaders give full responsibility
to the employees and they make most of the major decision for the work.
 Blanchard's SLII leadership styles: In the Blanchard’s discussion he indicated
that learner’s development and skill also influence the leadership style in an
organisation. He also discussed 4 different styles which are
i) The Directing style: In this style leaders give an order but provide less
guideline and assistance for them.
ii) The Coaching style: In coaching style with some support and help leader
guide their employees.
iii) The Supporting style: the leader of the supporting style provides more support
than the guideline and orders.
iv) The Delegating style: the leaders of the delegating style neither provide
assistance nor the orders, they depend on the employees for doing the work
on their own.

Figure 2: Situational Leadership
(Source: Wordpress.com, 2019)
This is the situational leadership approach.
Inspirational leadership: In the inspirational leadership leaders play as a role model. He
has followers who follow them for his idealistic and moral. He inspires the employees
with his achievement and with other aspects. This types of style inspire the employees
to be in that position in the future and drive them to do better in their field. In this style,
Leaders style in the self-actualization position according to Maslow’s motivational theory
and motivate others with his position.
This is some styles of leadership in the service sectors which shows motivational
approach as a main focus for the service sectors. Leaders achieve a position, guide and
lead the employees with the experience and try to maintain an energetic and productive
team for the organisation.
P3: The management and leadership styles in ‘Crown Plaza Hotel and
Resort’
The organisation we are talking about in this discussion is ‘Crown Plaza Hotel and
Resort’ which is a multinational hotel chain service, headquarter is the United Kingdom.
‘Crown Plaza’ do their business globally and operated their whole organisation with
different culture basis that’s why their management and leadership requires lots of
emphasis than the others. They approach globally. Their management set the strategies
direction for the groups with the help of strategic board and committee. And their
leadership styles believe that with effective oversight and overview of the group style
can ensure a better result for their organisation.
The leadership style they follow is basically the transformational leadership. They
believe and leaders influence their employees the most. The top level of their
organisation follows Autocratic management and leading style. They decide strategies
and provide direction for the groups to follows. This group is dived over the country so
the work methods and strategies can be different (Al-Ababneh, 2013).

Though in some extent they follow the autocratic leadership style most of the time their
leadership follows the democratic style where leaders and employees both participate
for decision making and with the proper guidance and help both works for the
organisational welfare.
M1: Relation between management and leadership styles and
organisational structure and culture in the service sectors
‘Crown Plaza Hotel and resort’ follows a complicated and big organisational structure.
They follow a department base hierarchy organisational structure with additional
secretary and controller in the structure. With this big organisational structure, they
follow autocratic management and leadership style for the upper level where the lower
section of the organisation they mainly follow the democratic and transformation
leadership style.
With the autocratic management and leadership style, they ensure the authority in the
strategic making and planning part for their upper level. They maintain the strict
directional process and authority for their organisation. For a strategic management field
which is mandatory. This makes the strategies and direction firm for the others to follow
and make the employees work for achieving the objective set by the planning
department. And the democratic and transformation part influence and motivate the
employees more than any other style and make them productive and enthusiastic for
the work (Testa, 2007).
Though the democratic style has a motivational pick sometimes leaders lose their
authority through this process and cannot make a firm decision with this style when they
need to do. New challenges can make this week point risky for the organisation. That’s
why leaders must concentrate on approaching situational leadership which is more
flexible and effective for service organisations like ‘Crown Plaza’.
LO2
P4: Influence of the internal and external factors in the management
styles and structures of ‘Crown Plaza Hotel and Resort’
The environment always influences an organisation's overall activity. Organisational
internal and external factors influence organisational management style and structures.
On the ‘Crown Plaza hotel and resort’ context, some of them discussed below.
Internal Factors:
Organisational structure and culture: ‘Crown Plaza’ has a large organisational structure.
This structure makes them approach different management strategies like an autocrat
and democratic management approaches. The organisational culture and
communication process also influence its management.

Internal relationship: Internal relationship between department and others also influence
the management style of the Crown Plaza. They use a different communication
approach between them and maintain an active communication approach which is why
democratic management style is fruitful for them (Homburg and Bucerius, 2006).
Complex business demand: As Crown plaza is a large hotel chain organisation they
have to face different completion and barriers. As diversity in this field is very limited to
maintain the demanding complexity is an issue so it also leads the management to
change and adapt different style for the organisation/
External Factors:
Managing diverse talent: managing diverse talent is a challenge for the organisation
when it comes to human resource. There are lots of potential talent which might be
helpful for the organisation which make the management to take a different approach to
handle the vast talent.
Stakeholders and customers: for providing the best service and to give the stakeholder
the desired benefit Crown Plaza’s management adopt different style and structure.
Globalisation and promoting global capabilities: Globalisation is a big issue for every
organisation. As Crown Plaza is already doing business in the global field that’s why
their management also picks their strategies and styles based on that.
M2: The internal and external factors influence the management styles and
structures in the ‘Crown Plaza Hotel and Resort’
Organisational factor influences the management style and structure. The service sector
we are focusing on is the hospitality service and “Crown Plaza’ is portraying the
scenario of this. On that organisation, context carries a divisional organisational
structure. This structure in an internal factor which is making their strategic
management to follow autocrat management style in order to show the authority in the
organisation. But this autocrat management element any chance of employee
participation in the decision-making process which creates a tied objective following
issue in the organisation. It binds the opportunity of improving also.
Internal relationship factors make the management to follow the relationship
management structure in order to focus on the employees behavioural and work
pattern. According to Taylor’s management theories, this improves the productivity in
the field and for the service sectors, it is also important to lead the employees based on
their behavioural pattern. But this management process takes more time (Wang and
others2012).
The complex demand in the market leas the ‘Crown Plaza’ management to adopt the
task-oriented structure. The strategic managers decide the team activities and the
strategies. With which the leaders define their task and roles and judge their success
rate base on that task result. In the service sector, it is the most followed process where

for reaching more customers team get a bonus or others reward like a free spa in the
hotel or leisure time etc.
Globalisation factors making the organisation approach in a broad way which ‘Crown
Plaza” is already following. The management wants to bring as much as a new style in
their service as possible. That’s is why they are following democratic management style
in order to engage the employees more to bring new ideas in the sector, though it
helpful for improving employee skill but it makes the managerial work slow. The solid
decision from leaders hampers in this style and require more time for making sure the
participant of all the employees with the divisional based structure of Crown Plaza.
This is the influence of the internal and external factors in the management style and
structure in the service sector.
LO3
P5: ‘Hard’ and ‘Soft’ skills of current management and leadership
process
Hard skill refers to the learned and acquired skill. It is the ability or fluency of any task
which can be mastered through continuous practice and learning. On the other hand,
soft skills are one person’s trait and behavioural concept which is also known as
interpersonal skill. This skill cannot teach; one learns it on their own. In this discussion,
we are focusing on the hospitality service on the ‘Crown Plaza Hotel and Resort’
context. They are now emphasizing on some hard and soft skills of management and
leadership with the current change of the market, some of which has been indicated
below.
Hard skills
Language Proficiency: Language proficiency is a must for the service sectors as they
deal with different types of customers. For hotel business, they have different types of
customer from a different country that’s why managers tend to learn more than one
language for better efficiency.
Software management: Managers and leader need to take a different strategic and
innovative decision for which they need software management skill. Like with the SAP
software hotel managers can see the predictive future for their business and can take
decision with the help of this. Like that different software, skills make them more
efficient with the current technological field.
Job skill: Obviously every managers and leader must have their respective job skill. The
service sector is one of the crucial sectors were with better skills employees can provide
better service to their customers which is why via training or other teaching methods

company make sure to make their employees more skilled on their field (Andrews and
Higson, 2008).
Soft skills
Team Dynamic: Team dynamics refers to the fast functional process of a team. With
behavioural and psychological approach team members work in a fast and diligent
manner. For making the team more dynamic ‘Crown Plaza’ take some approach like
define the individual role and responsibility, environment to break down the barriers
between members etc. this approaches help to gain the team dynamic skill.
Communication approach: ‘Crown Plaza hotel and resort’ give most of their focus on
this communicational skill. They make sure that their hotel managers and workers have
language fluency and better communication skill as they do their business globally.
Global outlook and agility: ‘Crown Plaza’ create their work environment which leads
their employees to create an outlook suitable for global business. Their leaders have the
global agility and outlook which shows on their global success (Crosbie, 2005).
Creative thinking and problem solving: Creative thinking is one of the great skill that the
service sectors leaders adapt. As they cannot differentiate their service that much from
others they find a way to make their service more creative like online hotel room
package, discount and premium card offers etc.
These are some Hard and Soft skills of management and leadership which are helping
the service sectors to compete in the market with efficiency and helping them to emerge
with the technological base market.
P6: Management and leadership skills that are required in the Future
service sector
If we talk about the future market, technology will emerge more and every single sector
will be more competitive because of this change. This will change the customer
demand, their criteria expectancy etc. so the organisation's managers and leaders need
to adapt some Hard and soft skill for this change.
Technological knowledge: the management needs to know more about the technology
so that they can make a strategic decision based on these technologies like how recent
online plan ticket booking strategy was introduced based on the market situation. So for
the future market leaders and managers need to acquire more knowledge so they can
create an innovative and technology-related strategy for their organisation.
Strategic mindset: More and more the market is more turning customer based. The
organisation making their strategies based on the customers mainly service sector, they
are always thinking how can they make their customer service better so they can use
customer loyalty in their business which is rare in the service sector. Managers need to
study their customers more and analysis to adopt this skill (Alkahtani, 2015).

Innovative mindset: innovation in the service sector is not a regular scenario but with the
future market innovation can earn a competitive advantage for any organisation. An
organisation needs to develop its organisational culture and environment to create an
innovative mindset for the employees.
This is some skills which can be effective and beneficial for the future market.
Management and leadership process need to improved and advanced so that the
service industry can provide some unique service to their customers.
M3: Crucial current and future management and leadership skills in the
service sectors
The service sector is different than any other sector because in the service sector the
organisation has direct contact with the customers, they got the customers to feedback
on the instant. This is why the managers to employee everyone tries to adapt different
skill and show them in the field in order to gain competitive advantages. But some of the
management and leadership skill for this service sector can become crucial contrasting
future even in the current market. Some of them shoed below.
Cultural sensitivity: Cultural sensitivity is a big issue for the service sectors. The
organisation has to work with different cultural context and have to deal with customers
from a different culture. Managers and leaders try to adapt negotiation skill and
communication skill for overcoming these issues but this a crucial skill for the current
time and future time market always (Peters, 2005).
Motivation: Motivation skill is one of the most important skills for managers and leaders.
But day by day this motivational process is changing. When in previous time money was
the big motivational process nowadays it became environment and security. Motivate
the employees is must for the service sectors as the organisational success depends on
them. To develop and modernising this skill is just as this can be a big issue for the
organisations.
Innovation: Managers and leader must have to be innovative in order to compete with
the changing market. In the future the market will change with technological
advancement which will require more skill in the innovation field otherwise the
organisation will lose its place in the market as in the service sector customer always
change their priority based on the better service provider.
The whole service sector is emerging with technology so it is creating more and more
change in the organisational process. And this change also making different
management and leadership skills crucial and important based on these changes and in
future they might need to adapt different skill for competing in the market.

LO4
P7: Different service industry organisations’ change management
systems and implementation of leadership in that change
Change management means a change in managerial approach, behavioural process, in
a whole totals change in procedure. Different service industry organisation approach
different change management systems based on different theories some of which
contrasted below.
The Kurt Lewin change theory: Lewis change theory refers to a situation where the
company first analysis their fixed management style and unfreeze the situation so they
can bring change in their system according to that analysis. Then after the change, they
again freeze the situation and start to follow the new procedure. And when the
organisation need to change it again they follow the same. This is relatively an easy
change procedure to follow.
Figure 3: Kurt Lewin change theory
(Source: wordpress.com,2019)
The McKinsey 7-S model: McKinsey 7-s refers to Structure, Strategy, Systems, Shared
values, Style, Staff, Skills in the organisation which need to change in order to make a
whole change in management. For this change, the organisation need to focus on the
whole structure and strategy and need to make a new strategy and structure for
bringing a change (Paton and McCalman, 2008). This sort of change needs more time
and it will totally change the objective of the organisation also.
Figure 4: McKinney's change model
(Source: ygraph.com,2019)

Kotter’s theory: Kotter’s theory is a situational change theory. When the environment
creates urgency and the organisation need to follow that then they change their
organisation's management. this procedure first creates the urgency, build a solution for
the urgency and step by step brought the change in the system. This change occurs for
every single problem like as the mobile app got popular in the service sectors different
hotels also started to approach the app marketing process. This urgency leads the
hotels to bring a change in their strategy and structure.
Figure 5: Kotter’s change theory
(source: Research Guide, 2019)
This changes in the organisation make a change in leadership also. The change in
management create change in environment for which the roles and responsibility of a
leader will be redefined with the change, and as they approach in a changed and
dynamic environment with the change that requires a change in leadership quality also
in order to cop up with the change. For the implementation of the management, change
organisation need to bring change in the leadership in order to maintain an effective and
efficient organisational procedure.
M4: Effects of the change management on the management and leadership
skills and styles
Change in management brings change to the whole organisation. Change in
management define change in the structure, strategy, system of an organisation. So as
the structure and strategy are changing that requires management and leadership
change in an organisation also.
When an organisation changes its structure that redefines the chain of the command
system. Suppose if the structure was centralized then the chain of followed one route
from top to bottom vertically and one style of leadership will be followed through the
whole line. But if the structural shift in the divisional, more leaders in the different
division will be introduced and different management and leadership style can be
followed through a different line of the structure (Bush, Bell and Middlewood, 2019).

When the strategy changes in an organisation that redefine managers and leadership
responsibilities, change their work procedure also. The stuff changes in the system also
bring change leadership style from supporting to coaching as the leaders have to work
with new employees under him. This is how a change in management affects the whole
management and leadership skills and style in the organisation.

Conclusion
Service sectors are now emerging with new innovation and technologies. Management
is approaching various structures based on the changing situation and adopting new
skills for that. The organisation ‘Crown Plaza Hotel and Resort’ is one of the biggest
hotel chain company in the UK. We have seen how based on the structure management
and leadership style has changed. How influential the internal and external factors of an
organisation which can make change the management process in an organisation. And
lastly the change management in the service sector which influences the leadership
process in the organisation. From what we can see from the discussion is that demand
for the future market is bringing changes in the service sectors (Hassi, 2019). They are
now focusing on innovation and new techniques for gaining the competitive advantage
and management and leaders also adopting new skill and modernising them for
competing with the changes. This is how service sectors are now changing with the
basis of technology.

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