Leadership and Management for Service Industry

This document discusses the different types of classical management theories and their application in the service sector. It also explores the role of leaders and various leadership styles in the service industry. The document reviews the leadership and management styles prevalent in a specific service sector and investigates the internal and external factors that impact management structure and styles in a selected business firm. Additionally, it discusses the current and future management and leadership skills required by the service sector and compares and contrasts different service industry organization change management systems and leadership.

LEADERSHIP AND
MANAGEMENT FOR
SERVICE INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Mention different type of classical management theories and apply them in context with
service sector..........................................................................................................................1
P2 Discuss about the role of leader and various leadership style in service sector ...............2
P3 Review leadership and management styles prevailed in a specific service sector ...........3
TASK 2............................................................................................................................................4
P4 Investigate about internal and external aspects that impacts management structure and
styles in selected business firm...............................................................................................4
TASK 3............................................................................................................................................5
P5 Current management and leadership 'hard' and soft' skills...............................................5
P6 Future management and leadership skills required by the service sector.........................6
TASK 4............................................................................................................................................7
P7 Compare and contrast different service industry organisation change management system
and leadership.........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Leadership and management in context with service sector is related with the
performance of a leader & manager while performing business activities. Leader in a company
plays an essential role in inspiring, guiding and encouraging employees so that they can work in
a comfortable manner at workplace (Birasnav, 2014). Manager of a company organise project
and formulate business strategies so that working potential of workers can be enhanced. This
assignment is prepared in context with Travelodge which is a US based hotel chain operating in
global manner. At present hotel is operating at more than 435 locations and employees more
than 12000 employees. This assignment will discuss about various kind of management theories
along with roles of a leader and various leadership styles prevailed at workplace. Also,
management and leadership styles in Travelodge will be reviewed. Other than this, factors
influencing management styles, current and future management & leadership skills and
comparison in different service sector is carried out.
TASK 1
P1 Mention different type of classical management theories and apply them in context with
service sector
Classical management theory is referred as a branch of management that emerges in 19th
century. This framework was established during industrial revolution and benefits in overcoming
the issues associated with efficiency of work process. There are various kind of classical
management theories. Some of these theories are discussed below:
 Scientific management theory: This theory is stated by Taylor and defines that to attain
standardisation, efficiency, specialisation and simplification at workplace, it is important
to plan organisational activities in a systematic manner (Chang, 2016). As per this theory,
in order to increase the overall productivity at Travelodge, mutual trust among workers
and management is required. Planning of work will benefits Travelodge in performing
each activity and operation in appropriate way due to which earning high outcomes will
became easy.
 Weber's bureaucratic approach: As per Weber, positions and job role in workplace
should be arranged in hierarchy and important tasks of company must be distinguished
via functional basis. Also, theory of Weber states that authority and responsibility at
1

workplace is required to be recognised by the designation not by an individual. Adopting
this theory at Travelodge will benefits the manager in assigning authority and
responsibility to workers as per their job role (Dinçer and Hacioğlu, 2016). Also, this
classical theory will allow Travelodge to work in a hierarchical manner due to which
passing of information at workplace will take place efficiently. This will benefits the firm
to accomplish their task before allotted time so that high revenues can be earned.
P2 Discuss about the role of leader and various leadership style in service sector
Leader is an individual which motivates and train the workers working under them so that
their working potential can be raised. This will allow a company to enjoy maximum profits and
revenues against rivals. A leader has various kinds of role within an organisation. In this context,
role of leader in Travelodge is mentioned below:
Role of a manager
Role of manager in a business firm can be explained on the basis of Fayol management of
principles which are mentioned below:
 Planning: Main role of manager is to formulate different plans so that employees
working at Travelodge can perform their business operations is a timely and effective
manner.
 Organising: Another role of manager is to organise the work of people which are
working under them in at workplace. If work at Travelodge will be organised properly
then overall productivity of company will enhance and high revenues can be earned.
 Controlling: It is the duty of manager in a company to control all the activities and
operations which are performed by subordinates. This will help Travelodge in performing
their work efficiently.
 Coordinating: Manager in a company has the role to coordinate their staff with each
other so that they can work ingratiatingly to attain organisational goals and objectives.
High coordination in staff will help Travelodge in performing complex task in simplified
and timely manner (Lucas, 2016).
Role of a leader
 Formulating a clear vision: Main role of a leader is to formulate a clear vision among
staff members and other employers so that they can identify their targets and goals
without any problem. In case of Travelodge, role of leader is to set a clear vision about
2

their goals and objectives in front of employees. This will allow the employees to
understand the expectations of company from them. By this, attaining goals in efficient
manner will became easy.
 Encouraging and guiding workforce: Guiding and encouraging employees is also an
essential role of a leader due to which organisational work is performed in a systematic
manner. Manager in Travelodge is required to motivate and guide their employees on
regular basis so that they will feel confident while performing their work. This will
benefits the company in increasing their overall productivity due to which high revenues
& profits will be earned without any compromise (Elsetouhi And et. al., 2018).
Different kind of leadership styles
There are various kind of leadership styles that can be adopted by the leader of a firm.
These styles are different in terms of their nature and impact on company. In relation to
Travelodge, these styles are mentioned below:
 Autocratic leadership: This leadership style is centred around management and
employers of a company rather than their workforce (Huarng and Ribeiro-Soriano, 2014).
In this style, leader posses power, responsibility and authority due to which employees
are bound to follow the decisions of their leader. Adoption of this leadership style in
Travelodge can disturb the working pattern of employees as their decisions will not given
preference. This can reduce the productivity of Travelodge but this leadership style is
suitable to take quick decisions.
 Bureaucratic leadership: If leader in Travelodge will adopt this leadership style then
employees will have to perform challenging work in a hierarchical manner due to which
their commitment towards organisation will increase and firm will attain high working
performance (Adserias, Charleston and Jackson, 2017). This style do not favour pushing
of employees out of their comfort zone which impact them in positive manner due to
which they are able to work efficiently and business of Travelodge is maintained in a
profitable manner.
 Democratic leadership: In this style of leadership, along with employers and
management, employees are also involved in taking decisions. This style is centred
around contributions of subordinates in business decisions and activities. In this style,
final decision is of leader but importance is given to the opinion of workers. This
3

leadership style gives liberty to workforce to share their opinion in organisational works
due to which their contribution in organisational success is increased.
 Laissez faire leadership: In this leadership style, leader is considered as head of an
organisation but the role to initiate change, managing groups of employees and other
aspects is in the hands of employees of organisation (Jeon and Han, 2015). As employees
do work according to their mood and perception, this leadership style has lowest
productivity as confusion among employees for job roles usually create conflicts. This
can hinder efficient working at workplace (Iqbal, Anwar and Haider, 2015).
P3 Review leadership and management styles prevailed in a specific service sector
Travelodge is one of the biggest hotel chain operating in global manner. It is important
for the manager and leader of company to adopt suitable working styles so that overall
productivity of company can be increased. Below is mentioned about the management and
leadership style which is followed at Travelodge:
Leadership style at Travelodge
Democratic leadership: Leader in Travelodge follow this style, due to which employees
of firm feel more valued and their working potential also rises but this style is not suitable for
taking fast decisions as many people are involved while taking decisions. Due to this, company
fails to take decision in timely manner.
Management style at Travelodge
Persuasive management style: In this style, power of decision-making is in hands of
manager but opinions of employees are also taken so that appropriate decision can be take (Jiang,
Chuang and Chiao, 2015). Decisions taken under this management style are suitable and allow
Travelodge to gain wide advantages. This style has some characteristics of autocratic
management style due to which Travelodge faces no difficulties and confusion in taking quick
decision. But in case when managers do not discuss with subordinates, decision-making falls due
to which sometimes company have to face loss of revenues and profits.
4

TASK 2
P4 Investigate about internal and external aspects that impacts management structure and styles
in selected business firm
There are different kind of internal and external factors which impacts the structure and
style of management in a business firm (Kim, 2015). These factors are different in their nature
and adaptability but impacts the working of business in a considerable manner. Some of these
factors are mentioned below in context with Travelodge:
Internal factors
 Organisational culture: Culture of a business firm is a combination of the policies,
regulations and the manner in which employees & employers treat each other. It is
difficult to change culture of a company on regular basis but organisational culture
impact structure and management style in a considerable manner. If culture in Travelodge
will be appropriate then manager do not have to take strict measure against employees
and persuasive management style can be adopted. But if, organisational culture is not
suitable and employees do not work properly, manager will be required to adopt
autocratic style so that employees can not misbehave while performing organisational
work. Also, management structure of Travelodge will be needed to change or altered if
existing structure is not suitable to provide good organisational culture. Hence,
organisational culture impacts management style and structure in a considerable manner.
 Employees engagement: If employees in Travelodge are committed outward their work
and their engagement is high in attaining organisational profits then this will denote that
firm posses suitable management style but is worker engagement is low then this will
impact existing management style and structure of company in a negative manner (Popli
and Rizvi, 2015). In this situation, manager in Travelodge will be needed to change their
management structure and style so that engagement of employees can not be
compromised. This shows that management style and structure at Travelodge is
dependent on employee engagement.
External factors
 Technological factors: These factors are concerned with technological advancement of
the region in which firm is operating. Travelodge is a hotel company which offers
accommodation, food and entertainment services to their customers. Other than offline
5

medium, company is needed to deal with their customers via online means also so that
repeat visits from customers can be attained. Manager of company is required to adapt
technological aspects in Travelodge, if manager is unable to do so, company will have to
change their management style and structure in that situation so that employees can learn
about technology use irrespective of their wish as this will allow the company to earn
wide profits.
 Political factors: Political aspects of a region also impact management structure and
style of a company. If policies of government are liberal than manager of a firm is not
required to formulate strict rules and regulations for employees and employees centred
management style can be adopted. But if political scenario is complex than manager have
to implement strict management style and structure so that employees will be bind to
perform organisational work in a systematic manner even if they agree with the decisions
of management or not.
TASK 3
P5 Current management and leadership 'hard' and soft' skills
In an business organisation, both leadership and management play a crucial role in
organising as well as leading entire activities with the aim of accomplishing their set goals and
objectives in stipulated time frame. In this context there are some soft and hard skills to
management and leadership skills that assist in improving the overall performance of the
company at market place.
Soft skill to management and leadership style:
It is related to the interpersonal skill that help in building better relationship at workplace.
This will directly contribute in making brand image of business organisation positive and
competitive as well (Puni, Ofei and Okoe, 2014). In context of service industry, this type of skills
are effective for manager and leader to improve workers performance and career opportunities.
Thus, it is crucial for Travelodge to implement all the soft skills within the business as it help
manager and leader in develop better satisfaction in workers. It may contribute in enhancing
employee morale at workplace which positively impact on attaining set goals in an effective
way. As there are some soft skills that put their impact on leadership and management style
within the Travelodge:
6

 Decision making: This type of skill is also play a crucial role in which manager of
company is responsible for implementing as well as formulating fair and best decision
with the aim of enhancing the overall performance at workplace (Rajasekar, 2014). As it
directly influence the leadership of Travelodge in which they easily manage as well as
handle complex situation by taking right and appropriate judgement at workplace and
also maintain the positive working culture within the company.
 Effective team working: It is one of the important skill in which manager of Travelodge
encourage their team members of perform their task in a team and share their views and
opinion with each other to attain set goals. As it positively impact on organizational
function and employee performance as well. With the help of effective team working and
better relation, employees can easily handle their customers and provide them positive
experience. This will directly contribute in enhancing profitability level of the company
at market place.
Hard skill to management and leadership style:
This type of skills gained or acquire from training, professional education and any
specified field. With the assistance of this, individual can perform their task and activities within
the business organization. It also used at the time of taking interview for hiring candidates
towards the specified job role. Along with this, it also impact on the management style in which
manager of Travelodge easily manage entire task and activities at workplace. This type of skill is
also related with the basic programming language like spreadsheet, payroll and many more
which used to maintain records of workers related to the salary benefits, attendance and many
more (Shin and et. al., 2015). This is the reason that hard skills are important for manager to
maintain entire activities of function in appropriate way. It may reduce the chances of arising
issues at workplace and develop positive working environment.
P6 Future management and leadership skills required by the service sector
Today's competitive world, service industry is one of the fastest growing industry as it
required effective management and leadership skills that help company in future activities and at
the same time also provide appropriate opportunities to enhance their productivity level at
market place. In context of this, there are some effective management and leadership skills
required by service industry to attain higher growth level:
7

Creative thinking: For attaining success in future time, it is important for Travelodge to
think creatively to find out new and innovative ways. As it is consider as an effective leadership
skill leader can easily improve their decision making process and at the same time also influence
workers to perform their best as per the current working environment. By this, company serve
quality services to its customers as per their demand and also make them satisfied. This will
positively impact on their brand image at market place (Suriyankietkaew, 2016). Innovative
ways and skills may support company in sustaining in competitive market for longer period of
time. With the assistance of this, Travelodge can easily attain competitive growth at market.
Proper planning: In service industry, company deal with large number of customers
and provide them services as per their needs. This is the reason that Travelodge is responsible for
preparing an effective planning of services that offered by company to its consumers so that they
can easily accomplish their future goals and objectives with the aim of attaining success in
market place. In this regards, proper planning is important activities in the initial stage through
which manager and leader effectively plan their activities in order to provide better satisfaction
to their customers. This will contribute in enhancing profitability level of company at
competitive market.
TASK 4
P7 Compare and contrast different service industry organisation change management system and
leadership
In competitive market, there is various changes in trends, technologies and business
activities that directly influence the overall performance of the company in positive way. As it
help in providing competitive edge from its competitors (Popli and Rizvi, 2017). In this regards,
there is comparison between two service industry are as follows:
Change management process:
 Travelodge: In business organization, changes are occur as per continuous basis. For
managing it company can use Kurt lewis model of change that help them in effectively
analysing the changes and at the same time also help in attaining all the set goals and
objectives in appropriate time frame.
 Hilton hotel: In context of Hilton hotel, it is important for them to effectively measure
the changes and its impact on the overall performance of company. For this, company
8

adopting various strategies like market analysis that help in analysing what type of
change factors are occur and how to manage it. By this company easily manage the same
and improve overall performance.
Leadership style:
 Travelodge: Under this, Travelodge use democratic leadership style in which leader
involved workers within the decision making process. With the help of this workers put
their best efforts to attain all the set targets in effective manner.
 Hilton hotel: In this, business organisation apply Autocratic leadership style in which
leader does not includes workers within the decision making activities. As it negatively
impact on the its performance level at market place.
CONCLUSION
From the above mentioned report it has been concluded that both leadership and
management is play a significant part within the company as it provide guidance to manager in
order to develop appropriate strategies by which they easily manage or direct entire activities.
Along with this, change in technology is also change the working style of employees. For this,
manager and leader provide better training and development programs to enhance their working
abilities at workplace. With the assistance of this, company can easily enhance their productivity
by reducing negative impact at working area.
9

REFERENCES
Books and journals
Birasnav, M., 2014. Knowledge management and organizational performance in the service
industry: The role of transformational leadership beyond the effects of transactional
leadership. Journal of business research. 67(8). pp.1622-1629.
Chang, Y. Y., 2016. Multilevel transformational leadership and management innovation:
Intermediate linkage evidence. Leadership & Organization Development Journal.
37(2). pp.265-288.
Dinçer, H. and Hacioğlu, Ü. eds., 2016. Risk management, strategic thinking and leadership in
the financial services industry: A proactive approach to strategic thinking. Springer.
Huarng, K. H. and Ribeiro-Soriano, D. E., 2014. Developmental management: Theories,
methods, and applications in entrepreneurship, innovation, and sensemaking. Journal of
Business Research. 67(5). pp.657-662.
Jeon, J. H. and Han, K. I., 2015. Impact of supervisor's leadership styles on organizational
citizenship behavior: Mediation effects of multi-dimensional measure of justice in the
service industry. Journal of Digital Convergence. 13(3). pp.75-84.
Jiang, K., Chuang, C. H. and Chiao, Y. C., 2015. Developing collective customer knowledge and
service climate: The interaction between service-oriented high-performance work
systems and service leadership. Journal of Applied Psychology. 100(4). p.1089.
Kim, J. B., 2015. A Study on the Influence of Authentic Leadership in the Age of Convergence
on the Organizational Effectiveness: Revolved around Effect of Tuned from Confidence
of Superior. Journal of Digital Convergence. 13(12). pp.125-134.
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.
Popli, S. and Rizvi, I. A., 2017. Leadership style and service orientation: the catalytic role of
employee engagement. Journal of Service Theory and Practice. 27(1). pp.292-310.
Puni, A., Ofei, S. B. and Okoe, A., 2014. The effect of leadership styles on firm performance in
Ghana. International Journal of Marketing Studies. 6(1). p.177.
Rajasekar, J., 2014. Factors affecting effective strategy implementation in a service industry: A
study of electricity distribution companies in the Sultanate of Oman. International
Journal of Business and Social Science. 5(9).
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.
Suriyankietkaew, S., 2016. Effects of sustainable leadership on customer satisfaction: Evidence
from Thailand. Asia-Pacific Journal of Business Administration. 8(3). pp.245-259.
Lucas, M., 2016. The Role of the Manager.
Elsetouhi, A. M. And et. al., 2018. Perceived leader behavioral integrity and employee voice in
SMEs travel agents: The mediating role of empowering leader behaviors. Tourism
Management. 65. pp.100-115.
10

Adserias, R. P., Charleston, L. J. and Jackson, J. F., 2017. What style of leadership is best suited
to direct organizational change to fuel institutional diversity in higher education?. Race
Ethnicity and Education. 20(3). pp.315-331.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee performance.
Arabian Journal of Business and Management Review. 5(5). pp.1-6.
11

12