Leadership and Management for Service Industries

This report explores classical management theories, crisis management, and leadership styles in the service industry. It analyzes the impact of the pandemic on leadership and management skills and discusses how to implement change using Kotter's change model. The report focuses on Ritz Hotel, London, a five-star hotel that symbolizes high society and luxury.

Leadership and
Management for
Service Industries

Table of Contents
INTRDOUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
A service company needs to create the advantage by delivering its services different from
the competitors to continue its operations and excellence inside and outside the organisation. But
during pandemic service industry was badly affected. The report will cover classical
management theories and some leadership pattern which helped the hospitality industry during
pandemic. The report also contains a comparison between the crisis management and leadership
style by considering its advantages and disadvantages. SWOT analysis is been performed to
analyse the internal environment of the company. To fight with pandemic and maintain the sales
the hospitality industry adapted some change which is analysed with the help of Kurt Lewin
model. The model is also used to gain idea about how the pandemic has affected the way in
which change was adapted by the service industry. All the models and management styles will be
analysed on Ritz Hotel, London which is a five star hotel symbolises high society and luxury.
TASK 1
Classical management theories
The classical management theories was introduced in 1900s which believes that all types
of workers have only two types of needs which are physical needs and economic needs. The two
main concepts of classical theories are
 Administrative management- This style of leadership is introduced by Henry Fayol. The
approach is also known as process management (Rabiul, Patwary and Panha, 2022). The
administrative management theory is used to coordinate the internal activities of a
company. Fayol stated that any hurdles or stoppage in work is the fault of the
management. On the basis of this theory the business organisation operations can be
divided into six categories-
1. Technical
2. Commercial
3. Financial
4. Security
5. Accounting
6. Managerial
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Fayol also provided five elements of management which are mentioned below-
1. Planning
2. Organising
3. Commanding
4. Coordinating
5. Controlling
 Bureaucratic management- The theory was propounded by Max Weber in 1915. The
theory specifically emphasises on the complexity in work, division of labour, professional
management and control on hierarchical management control (Anning-Dorson, 2018).
The bureaucratic management theory contains two main elements-
1. Organisational hierarchy
2. Rule based management
Nowadays there are very small numbers of firms available in the markets which are
following this type of management style. The reason being is that it is a complicated
administrative procedure which follows multi-layered system and procedures.
Role of leader and different leadership styles
Leaders play a vital role in the working of a hospitality industry. As the availability of a
good leader has the capability to bring the customers to the door and can make a business. While
this non availability has the power to break the business. For the smooth working of the business
and to make his working effective a leader follows different types of leadership styles which are
mentioned below- Authoritarian style of leadership- In this type of leadership the leader takes decisions
without seeking any suggestions from any one (Stene, 2021). This is a commanding type
of leadership. This is style of leadership is mainly ineffective as it leads to poor job
satisfaction and reduce the morale of the employees. But the authoritarian style of
leadership is effective while there is a need to take quick decisions.
 Democratic style of leadership- This style of leadership is also known as facilitative or
participative style of leadership (Golensky and Hager, 2020). The leadership style
focuses on asking inputs from the subordinates before taking any final decision which is
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effective for preparing the employees for senior position and boosts their confidence that
directly enhances their efficiency.
Review of crisis management and leadership style with reference to Ritz Hotel, London
With reference to Ritz Hotel, the company follows democratic style of leadership to lead
the market. The democratic style of leadership helped the company in many ways which directly
affects the efficiency and effectiveness of the company (Chen and Zhang, 2021). As this style of
leadership encourages employees to participate in the decision making process as well as in the
working of the company which bring more viewpoints on the table. It enhances the problem
solving skills of leaders as well as the subordinates. This style of leadership helps to build better
team relations and improves the morale of the employees working in Ritz Hotel.
Comparison between crisis management and leadership styles
Basis Management styles Leadership styles
Definition Management styles are oriented
towards directing and controlling the
group for the aim of coordination and
harmonization and leads towards
accomplishing a goal.
Leadership is an ability to influence
and motivate others to contribute in
the success of the organisation.
Styles The management styles which are
helpful during crisis are laissez faire
and democratic management styles.
The leadership styles which are
helpful during crisis management are
democratic, visionary and
transformational styles of leadership.
Focus It mainly focuses of managing work. It focuses on leading people
(Anning-Dorson, 2018).
Advantages It has certain advantages for the
company such as it increases the
employee engagement and it helps in
improving the employee creativity.
It also has certain advantages for the
company such as it builds a team
based relationship and help to solve
complex problems.
Disadvantages There are certain disadvantages of There are certain disadvantages of
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following the management style such
as the employee starts giving ideas
when it is not needed or wanted and
team members starts depending upon
each other rather than taking an
individual decision.
following the leadership style such
as the employees’ starts to think that
the vision of the company is
associated with the leader only.
Evidence of organisation's practice by considering current crisis management and leadership
style
Crisis in hospitality industry are inseparable from the operations. The crisis can be
formed because of many reasons such as because of man-made situations, terrorist attack and a
bomb threat. It is the duty of the managers to keep the guests and subordinates safe. The
leadership style is also plays a vital role while fighting with the crisis in the organisation.
Task 2
The internal and external factors which affects the leadership management
During crisis
There are many challenges that an organisation faces which can be internally and
externally. The internal factors are those which can be controlled by the organisation and
external factors are also known as uncontrollable factors (Saha and et. al., 2020). As to manage
external factors company sometimes bound to change it self to reduce its effect on the
organisation. The internal factors are- Code of ethics- This is the value statement of a company. The statement contains the
blueprint of the behaviour of employees which are acceptable and unacceptable in the
business premise. The code of ethics also works to make sure that the ethics guidelines
are being followed by the employees or not. The statement contains certain policies of
reward and punishment given to the employees depending on their behaviour.
 Resources and technology- The employers provide updates and sufficient amount of
resources as well as technology to the employees to make the organisation successful.
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The surplus of resources leads to increase the level of wastage which means wastage of
time as well as money. Whereas, the lack of resources creates a negative impact on the
image of the company as well as it affects the operational efficiency of the company.
The external factors which affects the working of a company are- Economic and political factors- The leaders or managers must educate themselves about
the behaviour of the suppliers, customers, competitors and other determinants as these
factors are helpful in analysing the economic and political factors. These factors creates
hurdles for the leaders while goal achievement.
 Technological factors- This factor has the capability to change the business environment
in a night. To fight with technological environment they have to adjust their leadership
and management style. The leaders can fight with this kind of factor with the help of
proper research and development.
The internal and external strengths and weaknesses which affect the leadership style during
crisis.
The hotel industry is a vast sector growing rapidly. There are certain strength s and
weaknesses of the company working in this industry. Some strength is that they contribute a lot
in the local as well as national economy as they promote tourism activities of a nation (Bartsch
and et. al., 2020). The hotel industry is divided into many sub sectors such as luxury hotels and
resorts, boutique hotels, casino properties and spa and lifestyle resorts. The hotel industry
contributes in local GDP as when the people come to visit they shop from local malls, eat in local
restaurants and visit in local areas which increase the capital flow in the economy. The hotel
industry is the boom to the community. On the other hand, the sector faces some weaknesses
such as the cost incurred while the setup of a hotel is high, the tax rate charged from the hotels is
high and the sector mainly depends upon the seasons and tourism. These weaknesses make the
hotel industry vulnerable. Forecasting the sales in particular season is quite difficult.
Critical view of changes in management styles
The leaders have to change the management styles depending upon the strengths,
weaknesses, internal environment as well as external environment. The change in technology
directs the leaders to change their management styles. If the leaders use authoritarian leadership
style which will create a rigid and unhappy working environment which will create problem
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while adopting and implementing any change. And if the leaders use democratic management
style in which they will invite suggestions from the employees
TASK 3
Current management and leadership ‘hard’ and ‘soft’ skills providing evidence from specific
service sector examples
In context to service sector, the hard skills basically relates to the training and the
technical knowledge whereas soft skills are usually the personality traits that comprises of time
management, leadership and communication. In context to these skills, both of them are very
important for the objective to be successful in jobs and perform various operations. In context to
Ritz London, the leaders and the managers uses these skills for the purpose to succeed in the
company. In relation to the examples of these skills, it comprises of hard skills such as mixing
drinks, coding and budgeting whereas the soft skills basically comprises of the leadership,
communication and interpersonal skills.
Future management and leadership skills required by the service sector and how these can be
achieved
In context to service sector, the leadership and management skills required by the
employees involve the following:
 Communication: In context to communication, it is essential for both the managers and
the leaders and with the help of effective communication, it really helps in deep
understanding of the weakness and the strengths.
 Multitasking: In context to organisation, another important skill is multitasking. With
the help of these skills, it helps in reducing the pressure and taking care of the important
jobs.
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Importance of the impact and how the pandemic has transformed crisis management and
leadership skills required in the service sector and how these can be overcome using
sustainable tourism
In context to service sector, the situation of pandemic has resulted in creating
extraordinary demands on the managers and the leaders. The COVID-19 had resulted in creating
fear among the stakeholders and the employees. In reference to leaders and managers, it is very
important to define the priorities and involving operational continuity, employee care and safety,
customer care and financial liquidity etc. During the pandemic crisis, it is really important to be
ahead of the changing circumstances and staying alert.
Critically analyse how specific management skills have been influenced and changed by internal
and external factors in a selected service industry organisation.
In context to Ritz London, every organisation has its own culture and it is very important for
the organisation to respond to these changes in the external environment. For an organisation, it
is very important to have a clear sense of objectives and understanding the various factors such
as technological, political, social and economic.
TASK4
Different service industry organisations crisis management systems and leadership in
implementing change using one established Change management Model
Change is unavoidable and each and every organisation has to adopt various change
management strategies so that change can be implemented effectively within the organisation
(Hassi, 2019). There are various change management processes and models that can be helpful to
understand various aspects of change management within a given workplace.
Kotter's change model is a critically designed change management framework that can help an
organisation to adapt changes.
 Creating urgency is the first step in this model that could help Ritz hotel to develop a sense
of urgency among the employees at the workplace. For creating urgency a company can
identify potential threats and opportunities in the market that may come in the future so that
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effective and efficient facts can be proposed for creating urgency among the employees at
the workplace (Karatepe, Aboramadan and Dahleez, 2020).
 Forming a coalition is the next step in this model that helps to convince people that
conflicts can be avoided. This theory states that an organisation can identify the best leaders
and these leaders can help to bring coalition and teamwork to achieve change effectively.
 Creating a vision for change is also important because without proper vision an idea and
organisation cannot get prepared for the changes. By determining the values and making
strategies to execute the vision can help Ritz hotel to achieve change.
 Communicating the vision of the organisation can bring a powerful impact on decision
making activities and problem solving because the people at the workplace will be surer of
the change.
 Obstacles are always in the path that must be overcome by the organisation and the
managers so that the vision can be executed and change can be implemented.
 Creating short term wins helps to motivate the employees and stakeholders from time to
time so that the progress of change can be visible.
 Change must be implemented continuously so that better opportunities can be identified and
improvements can be made to the success (Bavik, 2019).
 Changes in corporate culture could be helpful in ensuring that organisation has changed in
every aspect so that higher competitiveness can be achieved.
Lewin's change management model an effective framework for managing change within an
organisation. Its first step is de-freezing that mainly focuses on increasing urgency in the
workplace, which is initial phase of change within organisation (Golensky and Hager, 2020)(Qiu,
Dooley and Xie, 2020). The next step is sharing values that help to change and create changes
within the organisation. The final stage is related to making the changes permanent at the
workplace which is known as re-freezing.
The purpose of change management is to help the organisation to compete effectively in
the market (Tuan, 2018). The employees of the organisation need to accept changes so that
change can be implemented effectively and efficiently within Ritz hotel.
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Change management affects management and leadership skills and styles highlighting how the
pandemic and transformed change management
The leaders are the most important members within an organisation and their place a very
important role in adopting changes. The leaders are the change managers who identify the value
of change within the organisation (Maroofi, 2018). Tourists from throughout the world search for
destinations where they can spend quality time therefore it is necessary that leaders within the
hospitality sector are updated with the change.
The leaders’ skills and styles have transformed after the rise of global pandemic in order to
deal with such situations. The leaders have changed their goal settings with the help of surveys
and research that is important for the organisation to achieve effective and efficient outcomes in
the business. The leaders have also developed their abilities of communicating objectives of the
business so that they can gain trust and build better teams for achieving change within the
organisation. The leadership qualities, skills and abilities have also transformed due to the
pandemic and leaders have turned into transformational leaders so that they can adapt to the
changes more quickly and implement changes within the organisation to achieve greater results.
Development of Change management and leadership skills of crisis management in the service
sector
The change management and leadership skills of crisis management in the service sector have
changed after the pandemic which are elaborated. Adaptability of the leaders has improved so
that they can accept changes and deal with the changes that could help the organisation to
achieve success and improvement in the future (Bouranta and et. al., 2019). The Shared vision of
the leaders in Ritz hotel is very important because the leaders share their vision to achieve
organisational goals and objectives and improve the collaborative workforce that can achieve the
desired goals and objectives on time. Clarity of organisational goals must be clear so that team
members can understand the importance of goals and must be clear for the workplace certain
divisions can be established with mission, objective, task, results and strategy.
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CONCLUSION
It has been concluded from the above report that Ritz hotels have a very high compression
within the service sector and it is due to the rapidly growing tourism sector. It has been obtained
that the organisation needs to utilise the latest technology and effective strategies to change
according to the rapid developments in the industry. Moreover, change is irresistible and the
organisation needs to adopt various methods of change to adapt to the constantly developing
environment in the industry. It has been obtained that an organisation can foster better abilities to
enhance communication and business growth. Furthermore, it has been obtained that the
organisation can implement various strategies for change and can achieve competitive strength.
Finally, changing leadership has been explained that can be helpful in adapting to the changes
and achieving competitive advantage in the rapidly changing world.
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REFERENCES
Books and Journals
Anning-Dorson, T., 2018. Innovation and competitive advantage creation: The role of
organisational leadership in service firms from emerging markets. International
Marketing Review.
Anning-Dorson, T., 2018. Innovation and competitive advantage creation: The role of
organisational leadership in service firms from emerging markets. International
Marketing Review.
Bartsch, S. and et. al., 2020. Leadership matters in crisis-induced digital transformation: how to
lead service employees effectively during the COVID-19 pandemic. Journal of Service
Management.
Bavik, A., 2019. A systematic review of the servant leadership literature in management and
hospitality. International Journal of Contemporary Hospitality Management.
Bouranta, N. and et. al., 2019. The key factors of total quality management in the service sector:
a cross-cultural study. Benchmarking: An International Journal.
Chen, L., Li, T. and Zhang, T., 2021. Supply chain leadership and firm performance: A meta-
analysis. International Journal of Production Economics, 235, p.108082.
Golensky, M. and Hager, M., 2020. Strategic leadership and management in nonprofit
organizations: Theory and practice. Oxford University Press.
Golensky, M. and Hager, M., 2020. Strategic leadership and management in nonprofit
organizations: Theory and practice. Oxford University Press.
Hassi, A., 2019. Empowering leadership and management innovation in the hospitality industry
context: The mediating role of climate for creativity. International Journal of
Contemporary Hospitality Management.
Karatepe, O.M., Aboramadan, M. and Dahleez, K.A., 2020. Does climate for creativity mediate
the impact of servant leadership on management innovation and innovative behavior in
the hotel industry?. International Journal of Contemporary Hospitality Management.
Maroofi, F., 2018. Knowledge Management and Organizational Performance in Service
Industry: Transformational Leadership Versus Transactional Leadership. In Global
Practices in Knowledge Management for Societal and Organizational Development (pp.
194-212). IGI Global.
Qiu, S., Dooley, L.M. and Xie, L., 2020. How servant leadership and self-efficacy interact to
affect service quality in the hospitality industry: A polynomial regression with response
surface analysis. Tourism Management, 78, p.104051.
Rabiul, M.K., Patwary, A.K. and Panha, I.M., 2022. The role of servant leadership, self-efficacy,
high performance work systems, and work engagement in increasing service-oriented
behavior. Journal of Hospitality Marketing & Management, 31(4), pp.504-526.
Saha, R. and et. al., 2020. Effect of ethical leadership and corporate social responsibility on firm
performance: A systematic review. Corporate Social Responsibility and Environmental
Management, 27(2), pp.409-429.
Stene, T.M., 2021, September. How to mobilize knowledge-based innovations in service
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731-XXIV). Academic Conferences International Limited.
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Tuan, L.T., 2018. Driving employees to serve customers beyond their roles in the Vietnamese
hospitality industry: The roles of paternalistic leadership and discretionary HR
practices. Tourism Management, 69, pp.132-144.
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