Leadership and Management in Service Industry

This report analyzes leadership and management styles in the service industry, focusing on Red Carnation Hotels. It examines classical management theories, leadership roles, and internal/external factors influencing management structures. The report also assesses current and future management and leadership skills required in the service sector, comparing Red Carnation to Hilton Hotels. The report concludes that digital technology is crucial for improving productivity and effectiveness in the hospitality industry.

Report

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Classical Management Theories and their application in service industry............................3
P2 Role of a Leader and different Leadership Styles in a service industry................................5
P3 Review the leadership styles used in Red Carnation Hotel...................................................7
LO2 .................................................................................................................................................7
P4 Internal and external factors that can affect management styles and structures of Red
Carnation hotel............................................................................................................................7
LO3..................................................................................................................................................9
P5 Assess current management and leadership skills required in service sector........................9
P6 Discuss future management and leadership skills required by the service sector...............10
LO4................................................................................................................................................12
P7 Comparison of service industry organisations.....................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Leadership is a field of psychological study or practical skill which includes ability of
individuals or an organisation to lead or motivate others. In addition, leadership is an art in which
a group of individuals act towards achievement of common goals. Whereas, management is an
art of getting all things done by taking support of individuals who are working within the
workplace. Furthermore, it is an activity of forecasting, planning, organising, co-ordinating or
controlling of each activity of the organisation. Leadership and management both are the
important aspect which emphasises on building environment and encourages the employees to
work hard so that preset goals can be achieved within the given time-frame. Chosen organisation
for this report is Red Carnation Hotels which is a multinational group of hotels along with based
in UK. Firm offers large kind of services like accommodation, food and beverages, spa and many
more. Organisation was started in 1984 and now it operates its functions in London, Geneva,
Switzerland etc. Present report will discuss a critical evaluation of several classical management
theories along with roles of leaders in it. In addition to this, several internal and external factors
which can influence management styles and structures will also described under this report.
Current skills and abilities which are required in future along with change management process
that is essential for implementing the change will also covered in this assignment.
LO1
P1 Classical Management Theories and their application in service industry.
In each organisation, there is a need of management so as to coordinating or managing
each activity or functions in an effective manner. Management is very important because it
supports the individuals in living their life in a systematic manner. Effective management is
backbone of successful associations because it not only encourages working individuals to
perform their duties but also it supports them to show their talent so that through taking support
of them all preset goals can be achieved in predetermined time period. In addition, management
is an obligation which is necessary for making life in organised manner and getting done each
functions of the organisation in smooth manner (Zander, McDougall-Covin and Rose, 2015). In
the context of Red Carnation Hotels, for building strong customer base across the world and
implementing digital technology in their workplace they should manage all activities and
functions of their firm in systematic manner. They should also follow a management structure in

their workplace so as to achieving desired goals in predetermined time-frame. Some of the
classical theories which can be used by management of Red Carnation Hotels are given as
below:
System Management Theory- It is one of the important theory of management which
offers alternative approach to the managers so that planning can be done for achieving the goals.
In addition, this theory states that all components of organisation are interrelated due to which if
changes are occurred in a single component then it will affect all the components. Digital
technology can be implemented in business operations of Red Carnation Hotels such as supply
chain, customer registration etc. so as to ensure that the services are delivered to customers
effectively (Succar, Sher and Williams, 2013). In context of Red Carnation Hotels, they should
manage their each and every function so that brand image of firm can be maintained in
marketplace. Merits and Demerits of this theory are given as below:
Merits Demerits
 It increases adaptability of organisation
because it enables the management to
adapt the changes as per the macro and
micro environment.
 Main focus of this theory is to making
balance and interrelation between each
component so that goals can be
achieved.
 It does not make interrelationship
effectively within the departments
which leads conflicts at workplace.
 It can't be applied in small
organisations because it is used by
those firms who wants to perform their
duties in a systematic manner.
Scientific Management Theory- This theory states that working hard or taking
maximum contribution from employees are not the best solution because results can't be obtained
properly through this method. In context of Red Carnation Hotels, it is very important for them
to identifying that what is to be done or how it is to be done. As the main motive of Red
Carnation Hotels is to provide best accommodation services to customers then they have to
implement latest IT systems like CCTVs, Bill desk, auto check-in, check-out due to which
satisfaction of the customers will improve which will also assist the firm in retaining them.
Merits Demerits

 The main aim of this theory is to
standardise the materials, tools and
methods of work.
 It leads the firm towards increased
productivity.
 It is not used by small organisations
because it is very difficult to implement
in the workplace.
 It increases cost of management and
takes too much time in completion of
any task.
Contingency Management theory- This theory is a combination of each management
approach in which managers have to take decisions on the basis of situation. In addition, this
theory guides the managers to interrelate both such as taken decisions and situations so that valid
outcomes will be received in future (Shek, Chung and Leung, 2015). In context of respective
firm, their management should learn from specific situations and using these experience for
managing the future situations.
Merit Demerit
 This approach is used by managers in
order to enhancing their decision-
making skills.
 It also supports the employees due to
which they share their ideas to the firm.
 It is difficult to adopt practically.
 Builds complex situation among the
managers while choosing appropriate
approach.
From the above management theories, it is very essential for the mangers of Red
Carnation Hotels to adopt scientific styles of management because it not only increases the
ability of workers but also supports in implementing digital technology at workplace. So that,
goals can be achieved through utilising available resources in optimal manner.
P2 Role of a Leader and different Leadership Styles in a service industry
Service industry can be considered as the customer oriented industry whose main focus is
to satisfying customer's needs effectively so that profitability or sales figures can be increased in
marketplace. As the Red Carnation Hotels is also engaged in service sector then they have duty
to offer quality products and services to customers as per their needs and requirements which can
be possible by using digital technology at workplace. Due to which, strong sustainability can be
gained by firm in marketplace. Whereas, leaders are the one who guides the individuals and

encourages them to perform their duties so that goals will be achieved in time-frame. Roles of
leaders are described as below:

 Morale Building: Workers in service industry have to perform their duties with
consistency so that best services can be provided to customers. For making this
consistency, leaders have duty to provide guidance and supports to their employees in
implementation of digital technology which build their confidence and morale level. It
will leads the Red Carnation Hotels in achieving strong customer base in market.
 Strategy Development: Leaders are also responsible for developing effective strategies
within the workplace so that organisational goals will be achieved in desired manner. In
context of Red Carnation Hotels, their leaders have duty to consider all the views and
opinions of employees while making strategies so that decorum can be maintained in
workplace. As a result of it, when employees will motivated at workplace then it will
support in implementing digital technology at workplace (McCormack, Manley, and
Titchen, 2013). Empower, Inspire and Energize people – This is also an important role which is
performed by leaders. In which they have to build strong relations with their teammates
so that employees would always encouraged for working hard. In the context of Red
Carnation Hotels, their leaders have responsibility to always energising their employees
through providing rewards on the basis of their performance. So that, any conflicts or
issues can't be occurred at workplace while implementing digital technology at their
workplace.
Leadership styles
Some of important leadership styles are mentioned beneath which are used by leaders of
Red Carnation Hotel:
Autocratic: In this kind of style, leaders exert pressure on the employees so that work
should be executed effectively without and delays. This style is used by the leaders of Red
Carnation Hotel when they have to take quick decisions for getting work done.
Democratic: Under this, leader have to provide full freedom to their employees so that
they can take decisions while performing duties. This style prove beneficial for the management
of Red Carnation Hotel because through this issues and conflicts of workplace will automatically
resolved which leads the firm towards high sustainability and strong customer base in market.

P3 Review the leadership styles used in Red Carnation Hotel
There are several management and leadership styles that are used by leaders and
managers of Red Carnation hotel. Some of these are given as below:
Autocratic style: This style is using by leaders and managers of Red Carnation hotel in
order to direct the employees or improving productivity of firm. This style is more effective in
using because through this employees work hard for completing their task which leads the firm
towards high sustainability and customer base in marketplace. As company is engaged in service
industry then they have duty to satisfy the needs of customers so that customers will be retained
for a long period of time. For e.g. there are several situations occurs at the workplace in which
management of Red Carnation hotel have to take quick decisions so as to gaining desired
outcomes in future period. This theory is not only used for improving productivity but also
increasing effectiveness of employees at workplace because without their support managers of
firm can't implement digital technology at workplace (Hallinger and Wang,2015).
Democratic style: This style is also provide effective results when it is used by managers
or leaders of Red Carnation hotel at their workplace. In it, authorities and power are distributed
among the capable and experienced employees so that effective support will be gained by them
in decision-making process. Using of this style is very beneficial because it not only motivates
the employees but also encourage them to work harder so that desired goals will be accomplish
in given time-frame. For example- productivity of staff members is decreasing at workplace on
regular basis due to which hotel is not receiving benefits as per expectations. For solving this
situation, management of Red Carnation hotel have decided to provide training to their
employees so that they perform their roles and responsibilities effectively which leads the firm in
enhancing productivity.
LO2
P4 Internal and external factors that can affect management styles and structures of Red
Carnation hotel
Red Carnation hotel provides its services in hospitality industry where competition is
high as compared to other sectors. As a result of it, each company of this sector wants to gain
high sustainability and profitability at marketplace. Apart from that, several factors are also exist

in internal and external environment that provides impacts on the management and structures of
firm. These factors are discussed as below:
External factors – These are those factors which directly affects the operations and
functions of firm in positive or negative manner. These factors are also known as task
environmental factors which affects the organisation's structure and management style in adverse
manner. These factors are given as below:
Competitors – This is the main factor that can posses negative impact on the
management structure and styles of Red Carnation hotel. For e.g. competition is very high in
hospitality sector and each firm wants to take growth and sustainability in this sector. Changing
in technologies may be difficult for firm to adopt as the employees do not have knowledge to
utilise advanced technologies in profitable way.
Suppliers – These are also considered as service providers in market and they have
power to influence the sales figures and profitability of firm in negative manner. As the service
industry is very large in nature due to which demand of suppliers is very high because of which
if suppliers refuse to supply required materials to the firm then it will directly leads negative
impacts on the structure and management styles of Red Carnation hotel (Fadly, Habidin and
Mohd Yusof, 2013).
Customers – Hospitality sector is very dynamic in nature because of which each firm
provides unique services at affordable prices to their customers. Service industry is highly
customer oriented then it provides encouragement to customers to make comparison between the
firms and chose better one as per their requirements. It can also provide negative impact on the
management style and structures of Red Carnation hotel if they failed in fulfilling the needs and
requirements of customers.
Internal factors – These factors are available within the boundary of firm and posses
adverse impact on the management styles and structures of firm internally. These factors are
given as below:
Owners - These are the one who have invested the money and have right to make or
implement any kind of decisions. As the owners of Red Carnation hotel have make decisions of
implementing digital technology in their workplace so as to increasing their customer base and
profitability in market. Therefore, they should

Employees – This factor can be considered as the backbone of firm because without their
support or efforts any kind of growth or success can't be taken by organisation. For e.g. if
management will posses high pressure on the working force then it will increase dissatisfaction
among them which directly posses impact on the implementation of digital technology in
negative manner.
Culture – This is collective behaviour of top level mangers of an organisation that
comprises values, visions, beliefs which are supportive in nature and guides the managers to
perform their duties in well manner so that desired goals will be achieved effectively. Culture of
an organisation plays very important role because it not only increases proficiency of workers
but also leads the firm towards growth and success. Whereas, if management of Red Carnation
hotel will not understand the culture and its importance then it will leads the failure in
implementation of digital technology (Aarons, Hurlburt and Horwitz, 2011).
LO3
P5 Assess current management and leadership skills required in service sector
There are several management and leadership skills which are required with in the
workplace of Red Carnation hotel so as to performing business operations efficiently in
marketplace. Some of these hard and soft skills which are using by managers and leaders of firm
in current period of time. These are given as below:
Hard skills – These are those capabilities which are gained by leaders or managers
through their past experience or providing huge time period in a specific field. These skills are
given as below:
Flexibility: These skills are comes under the hard skills because without these,
management of Red Carnation hotel can't implement digital technology in their workplace
effectively. It also facilitates both managers and leaders in implementing changes such as digital
technology in their workplace so that better outcomes will be received after implementation.
Decision-making: It is a kind of hard skill which initiates the managers and leaders in
making effective and better decisions in quick manner. For using these skills, they first
understands the complexities of situations that provides encouragement to them in making
decisions for the betterment such as implementation of digital technology at the workplace.

Formation of strategies – In an organization, management should formulate effective
strategies so that maintain competitiveness of firm in marketplace. In context of Red Carnation
hotel, management should make effective strategies and policies before implementing digital
technology at their workplace so that sustainability and growth can be achieved in marketplace.
For making effective strategies, management of Red Carnation hotel have to acquire proper
knowledge of marketplace so that through guiding and taking support from employees firm will
able in implementing digital technologies effectively.
Soft skills – These kind of skills includes traits, characteristics and competencies of
individuals which is very hard to examine because it is available within the personalities of
working force. Some of these are given as below:
 Persuasion: It is the skill which helps the employees in understanding benefits and
profitability of changes that are implemented by the management. Through this, both
leaders and managers will be able in communicating the benefits of implementation of
digital technology to all working staff of firm so that they can easily adopt the change
without providing any hurdles in implementation (Avolio and Yammarino,2013).
 Communication: In each organisation, this skills is most beneficial because without
these any managers or leaders can implement changes in workplace effectively. In the
context of Red Carnation hotel, leaders and managers both have duty to communicate all
necessary information regarding the change so that digital technology can be
implemented without any kind of difficulty at workplace.
From the above discussed hard and soft skills of leaders and managers, it has been
identified that both of them are essential as these points assist an organization to achieve its
predetermined goals and objectives within given time period through maintaining healthy
working atmosphere and mutual relations among the staff.
P6 Discuss future management and leadership skills required by the service sector.
As today's business environment is complex it is necessary for managers and leaders at
Red Carnation to adopt specific skills in order to order to function effectively in competitive
market place. Future management and leadership skills are discussed as follows-
Future Management Skills
 Tech Management Skills- As service industry consist of multiple operation, in such case
company needs to adopt certain technologies so that work can be carried efficiently and

effectively. This leads the requirement of the managers to adopt and learn skills such as
effective data management, use of AI intelligence to create and format reports as well as
estimates demand of the hotel room and do the booking accordingly.
 Diverse Team Management- As with the new modes of operating and conducting
business employees within the respective organisation would collaborate with
consultants, contractors. This need the manager to build effective harmonious culture
within the respective hotel and properly manages the diverse team. Managers should
create harmonious environment at the work place so that employees within the diverse
team could realise the collective goals effectively.
Future Leadership Skills
 Flexibility- As with the use of advanced technology and on going changing demands of
the customers it is necessary for the leader at Red Carnation to become flexible in their
business operations and should performs their task efficiently. Leader should be flexible
enough to adopt to specific leadership styles according to the situation prevailing within
the hotel and effectively guides its subordinates and provides proper direction so that
employees within the hotel can work effectively according to the changing trends.
 Data Driven Decision Making- As leaders within the organisation are responsible for
taking effective decision, but with the ongoing changing world companies have adopted
to various technologies for performing their work effectively and in a timely manner.
Leader should develop its analytical skills so as to take effective decisions by analysing
and comparing the data of the respective hotel and provides suitable guidance to its
subordinates so that they can perform their task effectively towards the attainment of
organisational goals in a effective manner, moreover it helps in sustainability of hotel in
competitive market place.
These are the future leadership and management skills required by the leaders and mangers to
work effectively according to the changing trends within the organisation and main sustainability
in the competitive market place.

LO4
P7 Comparison of service industry organisations
Management and leadership plays very important role in implementing changes within
the business operations. As Red Carnation have started using digital technology in their
workplace then they have to identify effectiveness of it (McCaffery, 2018). For this, management
of Red Carnation hotel have to compare implementation of change with other organisation of
similar sector. Comparison is given as below:
Basis Red Carnation Hotel Hilton Hotel
Flexibility Flexibility within Red
Carnation is very high as
compare with their competitors
because of which they have
implemented the digital
technology in their workplace
within a shorter period of time.
While, hotel's Management
structure is less flexible as
compare to their rivals due to
which they have estimated
some more time in
implementing changes.
Readiness Employees of Red Carnation
are very supportive and
confident in nature because of
which after training and
discussing regarding the
implementation they provided
their consent for adapt digital
technology.
Whereas, management of firm
is less focused on building
relations with their employees
because of which they have
faced huge challenges in
implementing digital
technologies at workplace.
Change Company wants to improving
its effectiveness and
competitiveness in
marketplace after
implementing digital
technology in their workplace.
Whereas, Hilton have not
adapted the digital technology
in their workplace due to
which they are not able in
gaining competitive edge in
marketplace.

From the above comparison table, it has been identified that employees of Hilton are not
providing support the change which is posses by firm. Whereas, employees of Red Carnation
are providing their full efforts in implementing changes because management have provided
training and discuss with them before implementing changes. Along with this, employees are
flexible in nature because of which, firm have successfully implemented digital technology in
their workplace (Holsapple, 2013).
CONCLUSION
From the above report it has been concluded that with the ongoing changing trends and
the effective use of digital technology, role of leaders and managers changes and should adopt
necessary skills to perform their task efficiently. Their are various internal and external factors
which affect which affects the management styles and structures, in such case manager should
develop effective future management skills to work according to the changes existing in the
organisation. Moreover leaders should effectively manage the change and provides suitable
guidance to its subordinates and assist in the growth and success of the organisation. In addition
to this, management of firm should adopt some effective management and leadership styles in
their workplace so that better support and efforts of employees can be gained in achievement of
organisational goals. As digital technology is important for improving productivity and
effectiveness in marketplace then management have to provide effective training to employees so
as to implementing effectively at workplace and for taking support from employees in
implementing they have to convey the benefit of its implementation.