Leadership and Management for Service Industries

This report analyzes the application of different classical management theories, the role of leaders and different leadership styles in the service industry. It also reviews the management and leadership styles of Ham Yard Hotel. The report examines the internal and external factors that influence management styles and structures in the service industry. Additionally, it discusses the current management and leadership skills in the service industry.

Leadership and Management for
Service Industries

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Application of different classical management theories in context with service industry.....1
P2 Role of the leader and different types of leadership styles within service industry...............3
P3 Review on management and leadership styles of Ham Yard Hotel.......................................4
TASK 2............................................................................................................................................5
P4 Examination of internal and external factors which influence management styles and
structures in service industry.......................................................................................................5
TASK 3............................................................................................................................................6
P5 Current management and leadership skills in service industry..............................................6
P6 Future management and leadership skills required by management of Ham Yard Hotel......7
TASK 4 (covered in poster).............................................................................................................8
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Today, with increasing competition among business and way of operating organisation,
influence every firm for being concerned on talent management. This function mainly helps in
bringing talented workforce and developing skills of them including the existing ones, to
enhance productivity of business (Popli and Rizvi, 2015). For this purpose, a number of
management theories, leadership styles and different factors need to be analysed by a firm. The
present report is mainly based on analysing how leaders and managers in a service based
industry, manage talent within different age-profiles. For this purpose, Ham Yard Hotel is chosen
which is a five-star hotel of London. To conduct report on this firm, various application of
management theories, including factors which influences styles of leadership. In addition to this,
demonstration also gives on exploring future management and leadership skills, required for
running business of respective hotel effectively.
TASK 1
P1 Application of different classical management theories in context with service industry
Organisational structure refers to the system in an organisation which determines how
tasks and responsibilities are directed towards the accomplishment of organisational goals and
objectives (Cosh, Fu and Hughes, 2012). Different types of organisational structure are as
follows:
Unitary: It is a type of organisational structure where every member of the organisation
reports directly to the top-level management or the centre which encourages fast decision-
making and free flow of information in the company (Beerbohm, 2015).
Centralised: Under this, the authority and the power to make decisions is restricted in the
hands of top-level management and there is a high degree of control. This type of organisational
structure is not effective in the hospitality sector where the prime objective is to provide best
quality of service to the customers for which employees should have authority and decision-
making power (Maduenyi and et. al., 2015).
Decentralised: In the context of hospitality industry, decentralised form of organisational
structure is the most effective where employees are given matching authority to execute the tasks
assigned to them in the most effective and optimum manner (Cosh, Fu and Hughes, 2012).
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Among these structures, Ham Yard Hotel has unitary type of organisational structure, so that
timely decisions can be taken for improvement and enhancement of customer satisfaction.
Handy’s Model of Organisational Culture:
Organisational culture refers to the values and beliefs of an organisation which contributes
to develop and create the work environment in the company (Carlström and Ekman, 2012). Four
different types of organisational culture have been described by Charles Handy as follows:
Power Culture: Under this culture, power in the organisation is held by only a few
individuals who also enjoy a special privilege in the company.
Role Culture: Under this culture, every individual and member in the organisation has
clearly defined roles and responsibilities and power arises from the position and responsibility
held by an individual. In the context of hospitality industry, role culture has proved to be
effective in providing a high quality of service to the customers (Mihaela and Bratianu, 2012).
Task Culture: Under task culture, individuals in the organisation form teams for addressing
a specific problem or completing a particular task which can be effective based on the right mix
of skills and qualifications.
Person Culture: Under person culture, individuals in the organisation are more concerned
about personal interests rather than organisational interest and consider themselves superior to
the organisation (Eims, 2012).
Among these types of culture, role culture has been followed by management of Ham Yard
Hotel, to customise the quality of services as per customer demand.
Classical Theory of Management:
Classical theory of management is based on the belief that employees of an organisation
only have physical needs which can be satisfied with the help of money and hence, the
management of an organisation is responsible for maximisation of profits and revenue of the
company with the help of specialisation of work and centralised form of leadership. This theory
ignores the social needs of the employees and other aspects of job satisfaction beyond economic
motives (Nicotera, 2019). In the context of hospitality industry, classical theory of management
hinders the operational productivity because employee motivation is essential for providing good
quality of service to the customers which can’t be achieved without considering the social and
other needs of the employees.
Scientific Management Theory:
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Scientific theory of management was proposed by Frederick Taylor in the year 1909 where
he argued that productivity in an organisation can be increased by simplification and
optimisation of the jobs. He laid emphasis on the application of science and its principles to
determine the best way of performing a job (Mihaela and Bratianu, 2012). The management of
the company should actively engage with the workers and supervise the task being performed by
them and increase the motivation and training of employees to achieve high level of operational
productivity (Waring, 2016). In hospitality service industry, like Ham Yard Hotel, mainly applies
scientific management theory and undertake employee training and motivation for ensuring a
high efficiency and effectiveness in completion of the job.
P2 Role of the leader and different types of leadership styles within service industry
A leader is a person who is responsible for influencing the behaviour of people and getting
desired actions and has followers whereas a manager is responsible for administration of day-to-
day operational activities and has subordinates working for him (Zainuddin and Yaakob, 2014).
The difference between the role of a leader and a manager can be better comprehended with the
help of following points:
 A manager is responsible for formulation of policies and strategy whereas a leader plays
an important and crucial role in implementation of management policies and strategies in
the organisation by gathering employee support and encouragement.
 A manager directs and allocates the task whereas a leader motivates and provides
guidance to the employees for completion of tasks in the best possible manner.
 A manager focuses on organisational interest whereas a leader focuses on alignment of
personal interest of employees with the organisational interest (Nicotera, 2019).
 A manager arranges the resources and funds for an organisation whereas a leader
motivates the employees for optimum utilisation of the organisation’s resources and
funds.
Democratic Leadership:
Democratic leadership is a style of leadership where the members of the organisation are
involved in the process of decision-making and the management of the company values
employee suggestions and feedbacks. Under democratic leadership, members of the organisation
are encouraged to promote creativity and innovation in the company and look for better
alternatives of performing tasks which can increase the overall organisational efficiency and
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foster creativity (Beerbohm, 2015). In hospitality industry, democratic style of leadership has
prime importance since the employees of the hospitality business organisation are most aware
about the problems and challenges which are being faced by them in providing a high quality of
service to the customers and hence, taking employee suggestions can drastically improve the
effectiveness of the decision.
Motivational Leadership:
Motivation leadership refers to the act of influencing someone’s behaviour by stimulating
their desire to satisfy personal needs (Waring, 2016). Under motivation leadership, constant
efforts are made to increase the motivation and morale of the workforce for directing
organisational efforts to achieve goals and objectives. It is primarily concerned with fostering a
positive work environment and developing a shared vision which motivates and encourages the
employees to work for achievement of organisational goals and objectives. In hospitality service
industry, employee motivation has a major role to play in determining the customer satisfaction
level and as a result, the success of the organisation in the industry (Eims, 2012). Hence,
motivation leadership proves to be very effective particularly in hospitality industry to develop a
motivated workforce for providing the best customer service.
P3 Review on management and leadership styles of Ham Yard Hotel
For managing talent at workplace, especially when it combines with employees of different
age group, it is essential for managers and leaders of a firm to adopt various leadership styles. In
context with Ham Yard Hotel, its managers follow such styles by considering concept of
management theories (Zainuddin and Yaakob, 2014). It includes Maslow theory, which states
managers to apply styles of leadership like democratic, autocratic, participative and more, as per
workplace mentality, so that employee at any age can perform at high level with more happiness.
As per this theory, for empowering workers of young age, managers need to follow authoritative
leadership styles, by mapping the way and set expectations for them. Similarly, for adult age
group of workforce, democratic style can be adopted which allows experience employees to
utilise their knowledge and work in own manner, for completion of major activities on given
time (Dhar, 2016).
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Figure 1: Maslow Leadership Theory, 2020.
TASK 2
P4 Examination of internal and external factors which influence management styles and
structures in service industry
There are number of factors present in service industry which influence management styles
of managers and leaders of a company. It includes internal and external factors, which affect
productivity and performance of workplace as well. In context with Ham Yard Hotel, it is
counted one of the 5-star hotels of London and located at Soho (Pentareddy and Suganthi, 2015).
It has more than 91 rooms which are individually designed with twenty-four apartments, thirteen
independent stores including a bar and restaurant having the outdoor dining. In addition to this, it
has also a drawing room and library, Spa and Gym, rooftop terrace, private event rooms, theatre
and bowling alley. So, having the attractive and high accommodations, aid this hotel to gain
attraction of tourists. Therefore, to provide best quality of services to them, managers of Ham
Yard Hotel highly concerns on managing and developing performance of employees (Jauhari,
Singh and Kumar, 2017). But due to some factors, they have to make changes in their
management styles that retain its talented workforce for longer period, as discussed below –
Internal organisational factors: Organisational structures and culture – While execution of any strategy for enhancing
customer satisfaction, workplace culture and organisational structure both terms highly
influence the management styles of leaders. They can reinforce values of business while
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simultaneously holding the people accountable, through their leadership styles, by
developing goal-settings, creating opportunities and recognising employee engagement
(Carlström and Ekman, 2012). Employee engagement and commitment – It is another main internal factor where before
adopting any style of leadership, management of Ham Yard Hotel focuses on its way to
engage employees and gain their commitment for giving better performance (Beerbohm,
2015).
External organisational Factors:
 Managing diverse talent – To gain competitiveness, it becomes essential for each and
every firm to bring diversity at workplace. For this purpose, managers of Ham Yard
Hotel also concern on hiring talented people of different background irrespective of their
age and other biological characteristics (Cosh, Fu and Hughes, 2012). But it arises issues
like conflicts between employees of diverse culture, therefore, for this purpose, managers
have to adopt various management styles of managing the same and increase
engagement. Globalisation and promoting global capabilities – Emerging concept of globalisation,
helps hotels like Ham Yard Hotel to increase customer base by attracting international
travellers towards its accommodations (Eims, 2012). But it also forces them to promote
global capabilities by developing skills, language and knowledge of employees, to make
them able to fulfil demand of customers on time. So, it influences management styles of
managers also, to gain cooperation of workforce to meet successfully the business
objectives.
TASK 3
P5 Current management and leadership skills in service industry
For managing talent workforce, especially when there is an age difference among
employees, then it becomes essential for management to possess effective management and
leadership skills (Mihaela and Bratianu, 2012). With respect to Ham Yard Hotel, its managers
for managing diverse and talented workforce, currently possess following management and
leadership skills –
Management skills:
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 Problem solving: It is one of the important skill that management of present hotel
possess, for dealing with conflicts among its diverse workforce (Nicotera, 2019). For this
purpose, they used different management styles like democratic, participative and more,
as per workplace situation.
 Managing discipline: As it is difficult to manage discipline among such workforce where
people of different background, highly experienced and talented people works together,
therefore, managers of Ham Yard Hotel use approaches like task and relationship
orientation (Waring, 2016). It helps in earning productivity of each employee to
accomplish company’s objectives.
Leadership skills:
 Hard skills: It includes skills like digital marketing, non-verbal communications,
technical abilities and more, that helps managers to deal with organisational problems
more effectively (Dhar, 2016). Having such leadership skills, they support employees
even more better for performing their duties, like identifying customer needs by using
digital technologies.
 Soft skills: For making effective relationship with employees and engage them in
business activities, verbal communication and listening are such soft skills, that managers
of Ham Yard Hotel currently possess (Zainuddin and Yaakob, 2014). It helps in making
healthy environment at workplace, where diverse employees can easily work together for
performing assign duties.
P6 Future management and leadership skills required by management of Ham Yard Hotel
Since today, it becomes essential for every company to gain high retention of talented
employees, therefore, they need to develop better management and leadership skills. For talent
management, managers and leaders of Ham Yard Hotel need to concern on development of their
own skills (Jauhari, Singh and Kumar, 2017). It includes strategic mind-set, team dynamics,
motivated, delegated and strong influential management skills, that help in understanding needs
of employees having diverse background as well as way to complete the same, for increase job
satisfaction in them. Similarly, leadership skills like ability to perform as a good mentor, team
building skills, influence people to perform in innovative manner, etc. will help service industry
in future, to manage workplace more effectively. In addition to this, highly decisive thinker is
also considered as one of the most essential managerial skills which will help future leaders in
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service industry, to take fast and better decision for enhancing productivity of workplace
(Pentareddy and Suganthi, 2015). They will also become able to develop effective strategies,
talent management plans, business policies and rules for dealing with future demand and trends
in hospitality sector. In respect of Ham Yard Hotel, having effective managers, strong leaders
and talented workforce, will help to expand its business across London more easily.
TASK 4 (covered in poster)
Conclusion
It has been concluded from this entire report that for running a business successfully, it is
essential to bring diversity at workplace. This would help in introducing workers having great
capabilities and knowledge to meet business objectives. Along with this, both managers and
leaders are required to concern on developing own managerial and leadership qualities, so that
they can help each other to manage talented workforce more easily.
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REFERENCES
Books and Journals
Beerbohm, E., 2015. Is Democratic Leadership Possible?. American Political Science
Review. 109(4). pp.639-652.
Carlström, E.D. and Ekman, I., 2012. Organisational culture and change: implementing person‐
centred care. Journal of health organization and management.
Cosh, A., Fu, X. and Hughes, A., 2012. Organisation structure and innovation performance in
different environments. Small Business Economics. 39(2). pp.301-317.
Eims, L., 2012. Be a motivational leader: Lasting leadership principles. David C Cook.
Maduenyi, S., Oke, A.O., Fadeyi, O. and Ajagbe, A.M., 2015. Impact of organisational structure
on organisational performance.
Mihaela, V. and Bratianu, C., 2012. Organizational culture modeling. Management &
Marketing. 7(2). p.257.
Nicotera, A.M., 2019. 5 Classical Management Theory. Origins and Traditions of
Organizational Communication: A Comprehensive Introduction to the Field.
Waring, S.P., 2016. Taylorism transformed: Scientific management theory since 1945. UNC
Press Books.
Zainuddin, N.F. and Yaakob, S.N., 2014. Manager as leader: Role of a manager and their
responsibilities. FIM COMMUNICATION. 1(4). pp.11-15.
Dhar, R. L., 2016. Ethical leadership and its impact on service innovative behavior: The role of LMX and
job autonomy. Tourism Management. 57. pp.139-148.
Jauhari, H., Singh, S. and Kumar, M., 2017. How does transformational leadership influence proactive
customer service behavior of frontline service employees? Examining the mediating roles of
psychological empowerment and affective commitment. Journal of Enterprise Information
Management. 30(1). pp.30-48.
Pentareddy, S. and Suganthi, L., 2015. Building affective commitment through job characteristics,
leadership and empowerment. Journal of Management & Organization. 21(3). pp.307-320.
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.
Online
The Maslow leadership theory in the context of employee engagement. 2020. [Online] Available
through: <https://keap.com/business-success-blog/business-management/leadership/
maslow-in-the-context-of-leadership-and-employee-engagement#:~:text=The
%20Maslow%20hierarchy%20of%20needs,essentials%20that%20constitute
%20employee%20needs.>.
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