Management and Leadership in Service Industries

This assignment explores the role of management and leadership in service industries, focusing on Easy-hotel PLC. It discusses classical management theories applied in the service industry, the role of leaders and various leadership styles, and reviews the management and leadership styles in Easy-hotel PLC. It also throws light on the internal and external factors impacting management styles and structure in the company.

Management and
Leadership in Service
Industries

Table of Contents
INTRODUCTION...........................................................................................................................1
P1) Explain numerous classical management theories applied in service industry...............1
P2) Discuss role of leader and various leadership styles in a service sector industry............4
P3) Review the management and leadership styles in Easy-hotel PLC. ...............................5
P4) Throw-light on internal and external factors which impact various management styles and
structure in EasyHotel PLC...................................................................................................5
P5) Throw-light on present management and leadership hard and soft skills .......................6
P6) Focus on future management and leadership skills needed by the service sector and it can
be accomplished.....................................................................................................................7
P7)Different service organisation change management system and leadership in implementing
the change...............................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Management and leadership is the core element in service industry sector. Organization
having effective management helps to bind loyal and potential customers for longer time
duration. Leadership in hotel industry plays a vital role in the growth and development of the
business in global market. In order to complete the report Easy hotel PLC is selected. This is
international super budget hotel chain suited in London, United Kingdom (Anning-Dorson,
2018). Firm is serving quality services to their customers in order to gain huge revenue. This
assignment covers various classical management theories in service industry in order to select
the best theories for an organization. Distinguish leadership styles are studied so that better
decision can be taken regarding which can be implemented in the working premises. Internal and
external factors influencing management style and structure is focused so as to frame tactics to
overcome them. Comparison is done between several service industry organization.
P1) Explain numerous classical management theories applied in service industry.
Every service industry depending upon their business implement distinguish classical
management theories in their working premises. Classical refers to as things which are
traditionally accepted. Here, are some of classical theories of management such as, bureaucracy
theory, scientific management theory and administrative theory (Gibson and Parkman, 2018).
Below are the expatiation of this theories which are mentioned beneath:
Bureaucracy theory: In the year 1864- 1920 this theory was introduced by Max Weber.
This implies companies characterized by impersonal relations, rules, procedures and focus on
rigid hierarchy of authority. Easy hotel PLC can apply this theory in their working premises as
provided various features of bureaucratic structures. In this every employee is allotted work
according to their abilities in order to deliver superior performance with the time. Along with this
it brings rationality to an firm. This theory is good because it makes work easy and lead to
specialization . Along with this under the supervision of managers the work has been done
efficiently. Example: In Easy hotel PLC this theory can be applied as it provides division of
labor and assign the work to the workers according to their specialization and abilities. By this
customers needs can be achieved easily.
Scientific management theory (Taylor): This theory was designed by an engineer
named F.W Taylor in the year 1856- 1915. Easy hotel PLC can apply this theory in their
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working premises in order to raise their overall performance and productivity. This great
personality designed scientific management principles that are stated as follows:
1. Replace the rule of thumb work method with scientific study so that service industry can
achieve their set gaols and objectives easily.
2. Train and develop every employee in the Easy hotel PLC instead of leaving them to
upgrade themselves (Yeşiltaş and Tuna, 2018).
3. Build healthy relations with co-workers so as to ensure that scientifically method are
applied smoothly.
4. Equal alignment of task is done among manger and sub-ordinate so that productive
outcomes can be attained in Easy hotel PLC .
Administrative theory (Fayol): Easy Hotel PLC can apply this effective theory in the
working premises as it based on 14 principles. All the principles are for the betterment of the
company that will aid in attaining desire goals and objectives. Administrative theory focuses on
the complete organization functions. The 14 principles are discussed as under:
Division of work: Easy Hotel Plc can assign the work to the staff members based on
their skills and abilities. Which directly assist in full-filling emerging needs and wants of the
customers.
Authority and responsibility: Management of Easy Hotel Plc delegate the authority
and responsibility as per the work assigned to them. It makes the task easy to accomplish in the
set time frame.
Discipline: This principle is the most effective as it helps in achieving task in systematic
manner. It directly aid in creating smooth working environment to the workers.
Unity of command: One manger should assign work to the employees of Easy Hotel Plc
in order to reduce conflict and mis-understanding. It assist in meeting desired outcomes.
Unity of direction: In this case staff members deliver the same activities which can be
connected to the same goals. Along with this activities must be demonstrated in plan of action.
Easy-hotel PLC management follow unity of direction for productive outcomes (Wasono and
Furinto, 2018).
The degree of centralization: It implies focus on decision making authority at top
executive board. Easy Hotel PLC management share authorities associated to decision making
process with lower, middle so that business can perform activities smoothly.
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Scalar chain: there should be clear and transparent line from top bottom and managers
at all levels. Easy Hotel Plc follow this in the working premises so that workers can easily
connect to the superior in case of emergency without challenging the hierarchy.
Illustration 1: Fayol's 14 principles
Order: In this principle of management potential employees should be given all
necessary resources to function the business activities effectively (Fayol's principles,2018).
Social order is fulfilled by EasyHotel PL to provide safe , tidy and clean working environment.
Equity: There is discrimination between male and female. Everyone is treated equal in
Easy-hotel PLC due to which capable employees are retained for longer time period.
Stability of tenure of Personal: Here, it refers to as there should be deployment and
managing of personnel along with this there should be balance with the service offered from
firm. EasyHotel PLC management strives hard to control worker's turnout ratio by placing
capable nominee at the vacant position (Rajamani and Punna, 2019).
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Easy hotel PLC is adopting administrative theory in their working environment so that
business activities can be performed smoothly. By doing so competitive advantages can be
gained in cut throat competitive world. Also, employees are boosted to ender quality services to
the potential customers to maximize huge profit.
P2) Discuss role of leader and various leadership styles in a service sector industry.
Role of leader: A leader is an individual who develops power with people and is accountable to
implement good idea in the working premises.
Vision: The vision of leader is to have a motivational style in the premises in order to
complete the work in the set deadline.
Motivate: Leader is liable to encourage the teammates to work hard effectively and
efficiently to meet the emerging needs of the customers.
Rules: The framed rules by management is followed by leader in appropriate manner. As
well as convince co-workers to adopt to the rule positively.
Responsibilities: Leaders are held accountable to implement the idea in proper manner.
They are responsible that the team is working according to the set norms for better results.
Example: The role of leader is good in an organization as they are held accountable for
implementing the designed rules effectively among the sub-ordinate. Without leader team can
not be perform best and needs of the clients can be attained.
Role of Manger: In a firm manager exercise power over people and does not permit change in
the working premises.
Vision: Their vision is to use authoritarian style at workplace.
Motivate: They are more interested in giving direction instead of motivation to the team
mates for productive results.
Rules: Mangers frame rules and tell employees what actually they have to do regarding
the project. They directly impose rules on the subordinates.
Responsibilities: They are held liable in the work is not completed in the set time
duration. Managers are bound with overall business responsibility.
Example: The role of manger is bad as they are bound with huge responsibility of the business
success and failure. They need to frame tactics in order to compete with the external environment
and to retain potential employees to work better as compare to past days.
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Distinguish service industry adopts leadership style according to their business type. By
studying the own organization culture and working environment leadership style is implemented
accordingly. In service industry where the first priority to satisfy customers needs and wants it is
very important to execute effective leadership style in the working premises. Some of
Leadership style are, autocratic style, democratic style, servant leadership style, transformational
leadership style and so on. Below are the styles discussed that are as follows:
Autocratic style: In this particular style staff members are not included in the decision
making process (Luu and Rajendran, 2019). Only one person takes and controls all the decision
very little or no inputs is taken from others. EasyHpotel PLC can adopt autocratic leadership
style so that best decision can be taken for the betterment of the company and staff members.
It is good because it allows for quick decision to be made in the adverse condition. As
well as contribute in improving productivity.
Example:Autocratic style can be implied in the the hotel by making them aware
regarding the benefits and drawbacks of this style. There are many advantages of this style which
are, reduces stress level in the employees, leads in micro management, raises overall
communication and so on.
Democratic style: EasyHpotel PLC can execute democratic leadership style in the
working premises so that human assets can be assured they are valuable assets of the company.
As well as their contribution to decision making process is very precious. It directly helps the
firm to retain skilful employees for longer time frame which will be beneficial to the service
industry.
It is good because they importance to the idea of their team mates for better results. By
this employees can be retained for the over the years that leads in raising goodwill in the eyes of
the customers.
Example: Hotel can imply this democratic style in their working premises by involving all the
members in the decision making process and considering them equal despite of any gender. By
this overall productivity and profitability raises.
Transformational leadership style: In this leadership style management of EsayHotel
PLC push co-workers to come up with innovation so that change will assist to grow and shape
the firm's success. EsayHotel PLC can adopt transformational leadership style so that freshness
can be initiated in the working style that will aid in creating tough bench mark for others.
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It is bad because in many cases it results in wrong decision due to which objectives are
not achieved. As well as involve high risk factor.
Example: This can be implied in the working premises of the hotel as it aid in creating
enthusiasm and directly or indirectly helps in lowering turnover costs. By this competitive
advantages can be gained against rivalry.
EsayHotel PLC is applying democratic leadership style in their working premises in
order to take best decisions for other. By involving co-workers in the decision making process
productive outcomes is receives as compare to other firm.
The role played by leader in EsayHotel PLC is very crucial. They timely motivate the
sub-ordinates to take initiatives to share their view in decision making process. Leaders guide the
employees to work effectively and efficiently in order achieve the desire outcomes in intense
competitive world.
All the above styles are explained briefly and their advantages and disadvantages are
illustrated properly so that best results can be attained. By studying all this styles firm can
determine which style is better for their working premises in open market place.
P3) Review the management and leadership styles in Easy-hotel PLC.
Classical management theories like, administrative theory, scientific theory and
bureaucracy theory is explained in details so that management of EsayHotel PLC can follow the
best theory out of all this (Liu and Shi, 2018). All three theories is effective in the service
industry in their own way. But for EasyHotel PLC administrative is more effective in nature. By
adopting this they are able to motivate their teammates to work day and night in order to create
tough competition for others. Whereas, democratic leadership style is used by top level
management of hotel industry as decision is taken by involvement of all team members. It
provides them sense of security and assure them that are precious assets of the hotel. It boost
them within that raises overall productivity and profitability ratio.
P4) Throw-light on internal and external factors which impact various management styles and
structure in EasyHotel PLC
To gain competitive advantages against rivalry in the neck to neck competitive world it is
very essential to study internal and external factors. Internal factors includes, employees,
shareholders, creditors, investors etc. while external factors involves, political factor,social
factor, technological factor, legal factor etc. all this influence management style and structure in
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both positive and negative way. The explanation of internal and external factors are done
beneath:
Internal factor:Those factors which are affecting EasyHotel PLC within the organization.
Internal factors are controllable in nature and be overcome by frame tactics to resolve them so
that less influence is created on management styles and structure. Some of the internal factors are
stated as follows:
Customers: The emerging needs and preferences of the consumers can be full-filled by
analysing review of the client regarding the service offered to them. To bind client for longer
time duration quality services are served to them in order to maximize huge profits
(Koutroumanis and Dixon, 2018). The customers of EasyHotel affect its management styles and
strategy in order to make the stay of customers comfortable which will help in increasing the
sales of hotel. Management styles and strategy of hotel affect the way in which team members
deal with customers which helps the hotel in achieving its goals.
Shareholders: They are investors of the company as they have endowed their money for
the growth and development of the service industry to a large extent. The shareholders of
EasyHotel affect the investments which influence the way in which strategies can be formulated
so as to achieve maximum satisfaction of customers. Management of the company are largely
influenced by shareholders which affects the way in which they lead team members.
Strategy: The tactics of the organization are impacting the business in both positive and
negative manner. Management of company frame the strategy by scanning all the external
factor. By doing so positive outcomes can be gained easily and set standards can be attained. By
avoiding this company may face huge finance and human resource loss in the coming years. The
strategy of EasyHotel help the management to set goals and motivate the employees so that they
can be achieved on time which will help in increasing revenue of company as the efficiency and
productivity of workers will increase.
Structure: Organization structure impact the firm activities and workforce efficiency
and productivity level. This structure determines the way in which activities are carried out in
EasyHotel and also influences the way in which roles, responsibilities and tasks are distributed
among the workers which can help the company in gaining a competitive advantage in the
market. Structure of EasyHotel will affect the management styles which will determine the
relation between managers and employees that will influence customer experience.
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External factor: Political , social, technological, legal, environmental etc. factor are directly or
indirectly influencing management skills and structure of EasyHotel PLC in positive or negative
way. They are uncontrollable by administration for that top level management is preparing
strategies to overcome them. By doing do positive outcomes can be attained in intense
competitive world. Some of the external factors are mentioned below:
Technological factor: Changes in technology brings huge impact on management styles
and structure as whole working styles need to be changed accordingly (Ross, 2017). Staff
members need to train regarding how to use the plant and machinery in proper order. By doing to
some extent the productivity level reduces below expectations.
Legal factor: The changes in government laws and regulations directly impact the
smooth functioning of the business. This changes in external environment creates huge impact on
organization structure and management styles followed in EasyHotel PLC. The long term goals
need to changed according to the laws designed by governing bodies.
Political factor: To grow the hospitality business successfully in the cut throat
competitive world it is essential to examine the political factor of the nation. By examining the
political conditions of the nation strategies need to be framed so as to expand the business.
Negligence of this factor creates huge financial loss as well as create negative impact on
management style and structure (Skaalsvik and Johannessen, 2019).
Talent management is a human resource planning technique which helps in managing the
workforce of the company so that their talents and skills can be efficiently used which can help
in achieving the company goals on time. It also helps in improving the values of business as the
employees can be well managed and roles are distributed based on their capabilities. Strategic
talent management aid to better understand how to identify which skills need to be developed in
the employee, way to minimize training costs, address firm's changes promptly and so on. It is
influenced by employees planning, communication, rewards and recognition, culture and
performance management.
Positive side of Strategic talent management
 Enhance on-boarding experience
 Retain top talent
 Staff members development
Negative side of Strategic talent management
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 It is expensive in nature
 Workers may lose self esteem
 co-workers gets demotivated
The leadership style that is followed to lead the people in the company affects the way in
which talent is managed in the company. Democratic leadership style that is followed in
EasyHotel will help in managing the people of the company in an efficient manner as all the
employees will be included in decision-making which helps in knowing their views and
opinions. This is helpful in knowing about their talents which can be directed by the managers so
that fruitful results can be achieved by the company.
P5) Throw-light on present management and leadership hard and soft skills
Hard skills: machine operations, computer programming, a degree of certificate, typing
speed, proficiency in a foreign language etc. are some of the examples of hard skills. It can be
build by staying in the external environment. EasyHotel PLC staff members should have this
skills in order to gain competitive advantages against rivalry.
Soft skills: Here, are some of soft skills which are, leadership, flexibility, adaptability,
teamwork, effective communication skills and so on. Staff members of EasyHotel PLC should
have this skills in them in order to serve effective services to the customers.
Skills posses by manger are:
 Degree of certificate: EasyHotel PLC manger has this skills in them which assit them to
work effectively and efficiently. In order to be in this position in service industry degree
of certificate should be there in this field.
 Communication: As a manager communication skills should be effective so that
customers gets influenced and make up mind to be visit EasyHotel PLC again and again.
They are fluent in communication skills due to which positive image is build in the mind
of the client (Teoman and Ulengin, 2018).
Skills with hold by leaders are:
 Adaptability: Leaders of EasyHotel PLC is adaptable to dynamic environment which is
a positive mark for the company. Having this skills in leaders helps to motivate other co-
workers to adopt to the changes prevailing in the open market place. It aid in gaining set
goals and objectives in set time frame.
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 Flexibility: Leaders of EasyHotel PLC is flexible in nature which is helpful for the
company. Having this skills in leaders helps the organization to attain set goals and
objectives in the set time frame. Along with this set tough bench mark is created for
others in intense competitive world.
P6) Focus on future management and leadership skills needed by the service sector and it can be
accomplished.
To remain in the service industry there are certain mandatory skills which an individual
should have or need to build with the phase of time. Both mangers and leaders need to develop
certain skills related to service sector so that effective and quality services can b e offered to the
client over the years (Anning-Dorson, 2018). Below are certain skills which need to adhered by
mangers and leaders that are explained as follows:
Future skills need to be build by managers:
 Typing speed: manger should have effective typing skills so that all the task can be
completed easily in the set time period. It will help the EasyHotel PLC manger to assign
the task to the employees
 Computer programming: This is another skill that need to be enhance by manger so
that they can provide better results to the service industry. Perfection in computer
programming is must so that all the quarries can be resolved easily.
Future skills need to be developed by leaders:
 Proficiency in a foreign language: This particular skills need to be developed by leaders
in the near future so that they can easily deal with diverse background people. Having
good command in different language helps to convince co-workers to perform better.
 Teamwork: The skills of motivating all members to work in one single team need to be
developed by leaders so that they can easily attain common goals designed by company.
Over the years this skills need to be developed so that tough competition can be designed
for others.
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P7)Different service organisation change management system and leadership in implementing
the change
Change management can is explained as tools and techniques which is used to handle
people side of change in order to accomplish the desired results of the firm. This helps in
individual to make personal transitions effectively which result in the realization and
implementation of change. The main aim of change management is to assist everyone who are
influenced by change in order to make successful transition.
Change management Planning for change: Top
level management scan the
external environment and
accordingly take decision to
plan for change in the working
premises.
Managing change: Tactics or
policies are designed by the
management of the company
to handle change issues and
difficulties.
Reinforcing change: By
understanding the need
employees view regarding
change and examining
feedbacks manger decide to
reinforce the change. By
corrective actions and
celebrating success it is easy to
reinforce change at the
workplace.
Communication: In order to
bring change in the working
premises effective
communication should be
there in order to convey
message between employer
and employees
Training: Experts are hired in
order to make workers aware
regarding benefits and
drawbacks of change. By this
change can be implemented
easily.
Resistance management:
Rewards are given to the
employees are excepting the
change easily in the working
premises by this other workers
involve easily and resistance
management is tackled
smoothly.
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Basis EasyHotel PLC Travelogue Plc
Change management system This organization is a
international super budget
hotel chain so administration is
having effective change
management system in cut
throat competitive world
(Gibson and Parkman, 2018).
While Travelogue Plc has less
effective change management
system as compare to
EasyHotel PLC. It directly
reduces overall productivity
and profitability ratio at a large
scale. Along with this cut
down effectiveness of change
in the enterprise.
Leadership style Autocratic leadership stle is
followed by EasyHotel PLC in
their working premises.
Whereas, democratic
leadership style is adopted by
Travelogue Plc in their
working environment.
Similarities:
Particulars EasyHotel PLC Travelogue Plc
Motive Firm motive is to maximise
huge profit by providing them
quality services in the set time
frame.
The main motive of the
company is to bind loyal client
over the years and to generate
profit which can be further
used in growth and
development of the business.
Risk taker Organization is focusing more
to expand the business in new
segment. Along with this try
They keep eye on open market
place in order to grab the loop
holes of others as therir
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new thing and take risk in
order to capture new market
market ratio.
opportunity. They are more
open to take risk and are
exploring in new area.
Positive points:
 Both are working hard to gain huge revenue due to which innovative goods can be
commercialized in the market. And tough bench mark is created for others.
 Both the firm raises national economy as they attract tourists from all across the world
who buy room in these hotels and help in bringing funds for hotel which further helps in
economic development of the country as employment opportunities are produced which
helps in increasing GDP of country.
 Both the companies enhance living standards of people in the country as they create
employment for many people and also help in building infrastructure of the country.
Negative points:
 Main focus of both the firm is on business expansion which deteriorates the quality of
their service as the same standards are not followed in all the hotel chains that are located
in different parts of the globe.
 Frame tactics to capture huge market share instead of binding customers which means
that less focus is payed on customer satisfaction who are the main elements that help in
making any business successful.
From the above it can be summarized that from various theories EasyHotel PLC can adopt
leadership style theories so as to encourage sub-ordinates to perform well. Additionally, guide
them to raise their overall productivity and profitability volume as compare to competitors (Lu
and Antony, 2017).
CONCLUSION
From the above report it can be ended that having effective management is very essential
in service industry, Numerous classical management theories is studied like, administrative
theory, scientific theory and bureaucracy theory so that from all this best one can be
implemented in the working premises accordingly. Democratic leadership style is followed by
hotel industry as it involves workers in the decision making process for the upliftment of the
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company and co-workers. Hard and soft skills is studied to understand which skills need to be
improved for productive outcomes. Deep analysis is done on external (political, social,
environmental, technological, legal and so on) and internal (investors, creditors, staff members,
shareholders etc.) environment in order to make strategies to overcome them in intense
competitive world.
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Fayol's principles. 2018. [Online] Available
Through:<https://www.toolshero.com/management/14-principles-of-management//>.
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