Leadership and Management in Service Industry

This report discusses the different classical management theories and leadership styles in the service industry, with a focus on Holiday Inn London. It assesses the role of leaders and their styles in a service sector context. It also reviews the management and leadership styles in Holiday Inn London and investigates the internal and external factors that influence these styles and structures. The report concludes with a discussion on current and future management and leadership skills required in the service sector.

Unit 5- Leadership
and Management for
Service Industry

Table of Content
Table of Content..............................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Assess different classical management theories and apply these in a service industry
context....................................................................................................................................3
P2. Explain the role of the leader and different leadership styles in a service sector industry
context....................................................................................................................................5
P3. Review the management and leadership styles in a specific service sector organisation.7
TASK 2............................................................................................................................................8
P4. Investigate the internal and external factors that influence management styles and
structures in a selected service industry organisation.............................................................8
TASK 3............................................................................................................................................9
P5. Asses current management and leadership ‘hard’ and ‘soft’ skills providing evidence from
specific service sector examples.............................................................................................9
P6. Discuss future management and leadership skills required by the service sector and how
these can be achieved...........................................................................................................10
TASK 4..........................................................................................................................................11
P7. Covered in Poster...........................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Management and leadership are two very important and essential ideas that fly in a
business setting in relation with the company. Management and leadership are two practices that
are performed by individuals holding separate roles and functions which are aligned towards the
specific pre-determined goals of the company (Psomas and Jaca, 2016). Management and
leadership are commonly used words interchangeably but they are different concepts holding
separate practices. The current report is acknowledging the leadership and management of
service sector organisation Holiday Inn London. The Holiday Inn group is a British old
American brand which is headquartered in United Kingdom and serves to American, European,
Middle Eastern, African and Asia Pacific region. The report covers a review of different classical
management theories and leadership styles along with exploring different factors that influences
the management styles and structures in the company. Moreover, current and future management
and leadership abilities needed by the individuals for becoming enjoyable are also assessed. And
at the end a poster is developed demonstrating different management and leadership skills in the
hospitality organisation.
TASK 1
P1. Assess different classical management theories and apply these in a service industry context.
Classical Management theory is developed on the belief and assumption that workers or
workforce of an organisation only have physical and economic needs and it does not recognise
other need such as social and psychological needs. Classical Management theory is also known
as scientific management theory which is considered as an important practice service sector
industry and more specifically in hospitality sector as it helps the managers and top level
management for making effective decisions in order to attain all the predetermined objectives
and goals of the company (Singh, Akbani and Dhir, 2020).
The classical Management theory helps service industry as it allows the organisation to
appropriately and easily enhance their productivity level with the help of effective management
of staff and improving their efficiencies and competencies that result in accomplishment of aims
in the prescribed the timeframe.

There are other sub parts of “Classical Management theory” which is useful for the
service sector industry and which enhances their profitability and productivity standards. Few of
these management theories are discussed and elaborated underneath.
Taylor Scientific Management Theory
The scientific management theory was given by Taylor the belief that making people
work efficiently and as hard as the can is not efficient enough until and unless the way
employees work is optimised. Therefore, Tyler published the scientific management theory
which is a focus towards optimising and simplifying the jobs that will automatically inferences
and improve the productivity of the staff and their working efforts. According to this
Management theory it is suggested that the managers and the workforce of Holiday Inn have to
co-operate with one another in order to fulfil their goals and provide their best to the service
sector business entity.
Contingency Theory of Management
A basic idea behind classical theory of management is it suggest that there is no one way
to manage workforce and team members. According to the experts, it is identified that there are
number of internal and external factors that affects a particular situation and which alters the way
for leading the workforce in the respective situations. And therefore, the leadership style which
that management will be adopt will be dependent upon the contingent scenario and the best
course of action is developed accordingly. This management theory is applicable in Holiday Inn
as well, the situation and management approaches are interlinked and integrated with one another
in order to lead and manage the people in the most effective and efficient manner.
Behavioural Management Theory
The behavioural management theory is also known as a human relation movement as it is
Focus and addresses the prospective of employees while working. This is another very efficient
and appropriate Management theory for a service sector industry that helps the business in
motivating employees by understanding their behaviours and separate motivating factors which
keeps them on the highest point and helps Organisation in attaining all the goals by increasing
the efficiency and effectiveness of the work performed by the staff (Shamim and et. al., 2016).
Also by adopting behavioural management theory the service industry forks over improving the
work conditions that are provided to the staff while working and make it a positive and healthy
workplace in order to bring the best performances out of the people associated with the company.

P2. Explain the role of the leader and different leadership styles in a service sector industry
context.
Leadership is considered as an art of bringing people together by motivating them and
making then act towards the common objective and making them perform which their best
efficiencies for accomplishment of a respective objective or objectives. This is an act which was
performed by a leader and the person who is defined as a leader is the individual who adopts
innovative and creative practices for keeping the staff motivated enough and inspired them to
perform their job roles and assigned duties in the most efficient and creative manner. Leaders are
the individuals who have followers not workers, working under them. The role of leaders in the
respective organisation are of varied nature and significant to the aims and objectives of the firm.
The role leaders of Holiday Inn plays are as follows:
 Motivation is a major factor that keeps staff working to the expected levels and the
leaders has the role to keep staff enthusiastic and encouraged with their utmost potentials.
 Another major role which leader play is of rendering directions to staff. Holiday Inn deals
in service industry and therefore, the company needs to be creative, leaders here plays the
role to direct staff in right path and make them work as efficiently as possible.
 Next role of a leader is of bringing creativity and innovation, as a leader it is their
characteristics to work with new ideas and improve firms productivity. The leaders of
Holiday Inn have the role tos inspire people and make them work with new innovative
ways and inducing the efficiency levels of staff and overall productivity of the hospitality
service provider.
There are several different leadership styles which are suitable for service industry and
for businesses operating in it. Few of these leadership styles are suggested below along with
specifying the roles leaders play while adopting a particular leadership theory (Uysal, Joseph
Sirgy and Kim, 2020).
Transformational Leadership
The transformational leadership style suggests the leader to work with the goal of transforming
their respective teams and organisations with the help of continuous and constant improvement.
The transformational leadership style states that a leader should create a vision for the future and
share it with their respective teams which will help everyone in working together towards the
shared vision and objectives. The transformational leadership side also helps the service industry

business to reduce conflicts among the team members and make them work collaboratively for
bringing the best outcome of their performances.
 Leader’s Roles: The transformational leader always holds a creative vision where the
communicate with their teams and Organisation for motivating them to work with one
another in the most efficient and the most suitable manner that has the service business
perform in the best and the most efficient manner. Along with transformational leader
also please a role of a communicator and conflict manager where they reduce the
conflicts and improve the collaboration among staff (Shek, Chung and Leung, 2015).
Autocratic Leadership
The autocratic leadership style is focused towards decision making where very few individual
and more specifically only the leader holds the power of making decisions. The autocratic
leadership is a style where all the decisions for the team from the very beginning is taken by the
leaders and if you top level management who holds the power to do so. The workforce is just
need to follow the instructions and the guidance provided by the leaders towards the ultimate
objectives of the service business entity..
 Leader’s Role- The role which leaders play as an autocratic leader is of motivators as the
needs to keep the staff satisfied and motivated. the leader plays a role of a motivator
because it is very prominent that the team members feel about structure and dissatisfied
the job role and with working environment as their opinions and ideas and not even
considered which can directly result in deteriorating performances of individuals.
Therefore it is the job role of leader while adopting and autocratic leadership to keep the
self motivated and to make use of appropriate rewards and appraisal techniques enhance
the performance level of individuals.
Democratic Leadership
A democratic leadership style is where the team members and subordinates are involved and
engaged in decision making process and their opinions are recognised by the leaders and top
level management of the company. Democratic leadership style is focused towards increasing the
engagement level of individuals in the operations of the business and also allows The entity to
make appropriate and quick decisions.

 Leader’s Role- The rule leaders place as a democratic leader is of increasing engagement
of employees by welcoming their ideas and opinions in the decision-making process and
appropriately analysing each idea before making the final decision.
P3. Review the management and leadership styles in a specific service sector organisation.
Holiday Inn London is established on Kensington High Street, which is a hospitality service
organisation. Holiday Inn is a American brand which is British owned and headquartered in
Buckinghamshire, UK. The organisation belongs to the service industry and a subsidiary of a
Intercontinental Hotels group. Holiday Inn serves in several location around the world and have
grown to be one of the largest Hotel chain in the world with around 1200 active hotels in more
than 1500 locations providing food and beverages, lodging, conventions, meetings and time
shares services to the respective customers.
Holiday in a large organisation that has another division of it named as Holiday Inn Express its
International presence and the Goodwill of the world largest and the best hospitality organisation
requires a lot of efforts and efficiency of top level management where they are responsible for
adopting appropriate management and leadership styles in favour of the company and also
beneficial for the staff as well (Mesu, Sanders and Riemsdijk, 2015).
The management and leadership styles which are suitable for Holiday Inn London and that helps
in enhancing the productivity standards of the service provider are mentioned below along with
the functions managers play while practicing the Management Theory and their roles leaders
hold with the specific leadership approach.
Taylor Scientific Management Theory
According to the current changing scenarios and dynamic external trends the most suitable and
favourable Management theory which is applicable in Holiday Inn is Taylor scientific
management. This theory suggest that not only the employees of Holiday Inn in each to work
harder but also the management holds the responsibility to optimise their work for improving the
productivity and profitability of the company. The integration of employees efforts and
Management practices where they optimise the work of individuals will provide the best results
to Holiday Inn in and allows the company to attend the three determine organisational goals.
 Manager’s Functions- The managers of Holiday Inn have the function of being critical
and analytical while developing the tasks for the respective workforce. It is important for
the managers and the top level management of holiday in to be appropriately developing

action plans there the optimise the work of individuals that helps in increasing the
productivity and efficiency as well. also it is important that the management and the
employees work together bi collaboration and cooperation for improving the performance
standards of the Hotel chain (Noe and et. al., 2017).
Democratic Leadership Style
According to the democratic leadership style it is suggested to the leaders of holiday in to adopt a
leading approach where they consider the opinions and ideas of individuals associated with the
company. The benefit of this leadership style for Holiday Inn is that it allows the company to
take quick decisions along with the help of employees by increasing the engagement in the
operations and also by working with the fresh ideas which are creative in nature as well. This
leadership approach will help the leaders of Holiday Inn to keep the self-motivated and
encouraged for working with their utmost potentials as they are actually working on their own
ideas.
 Leader’s Role- The leader of Holiday Inn plays a role of a decision maker and
coordinator as they will be responsible for conducting a meeting for discussing separate
ideas and opinions of people and then developing a decision by considering several
aspects provided by the individuals and employees of the company.
TASK 2
P4. Investigate the internal and external factors that influence management styles and structures
in a selected service industry organisation.
There are several internal and external factors that exist in the business environment of holiday
in which influences the management styles which are adopted by the top level management of
the company and also the structure of the organisation. These internal and external factors are as
follows:
Internal Factors
 Complex business demands and alignment, is one prime factor that influences the
management styles and practices adopted. The managers of Holiday Inn has to go
through the organisational aims and objectives before developing their management
plans. And therefore, complex business demand creates inferences in between

management decisions its integration is a complex task performed and impacts on the
overall management approaches.
 Organisational structures and culture, outline the manner in which a firm is operated
and how individuals have to behave in the business setting while working. The culture
and structure of Holiday Inn will be imposing influences over the management style the
managers adopts. Communication flow is decided according to the structure of company
and managers authority is divided accordingly.
 Employee engagement and commitment, is the third major factor affecting the business
and management practices. The higher level of engagement of employees in Holiday Inn
and operations will render better results to the company and a liberal management style is
used. On the other hand, if employees are less engaged more complex and aggressive
style of work is imposed such as directive style of management for making people known
about the expectations form them and how they need to fulfil those criteria.
External Factors
 Stakeholders, are those who have influence over decision-making and profitability of the
organisation. The stakeholders will also influences the management style of managers in
Holiday Inn for fulfilling their expectations by providing expected results form the
operations.
 Managing diverse talent, is related to managing employees and workforce of Holiday
Inn who are working in separate locations in which Holiday Inn has its operations.
Employees form all the locations needs to be managed similarly and functions needs to
be run smoothly. Therefore, management needs to develop synergy the whole
organisation or the group and which influences the management style and phenomena's
adopted.
TASK 3
P5. Asses current management and leadership ‘hard’ and ‘soft’ skills providing evidence from
specific service sector examples.
The soft and hard skills of Management leadership plays a vital role and enables the leaders and
managers in providing the best services and performance to the service organisation. Therefore

soft and hard skills which are essential for managers and leaders of Holiday Inn needs to poses
are as follows.
Soft Skills
These those attributes which are unique and makes the individual stand out from others in the
organisation.
 Communication is considered as one of the most important skill that is needed to be
present in management and leadership staff of Holiday Inn in for making proper use of it
in order to keep the staff motivated and convey all the messages to them in the most
efficient manner (Pallant, Sands and Karpen, 2020).
 Teamwork is another soft skill that is expected by the management and leadership staff
of holiday in that allows them to work with the workforce for completing the tasks bi
cooperation and collaboration and also to apply appropriate leadership and management
styles resulting in higher productivity and profitability of Holiday Inn.
Hard Skills
These are those abilities which are not related with the professional job role and abilities of an
individual rather than focusing on long-term personal development.
 Marketing skills are required by there management and leadership members of holiday
in that allows the company to spread awareness in the public and targeted audience about
their offerings and also enhance the brand image of the organisation.
 IT skills are the most important hard skills that is needed to be accomplished by the top
level management and leaders of holiday in as it is one of the biggest weakness of the
organisation and if not work properly can become a potential threat as well to service
provider.
P6. Discuss future management and leadership skills required by the service sector and how
these can be achieved.
Future and long-term is what every organisation works for either small or big, belonging to
service or any other industry (Sabran and Abd Karim, 2020). Therefore management and
leadership skills which are currently possessed by the individual needs to be improved and also
the skill sets required to be updated by bye adding new abilities and skills. The abilities of
Management and leadership place a very crucial role in accomplishment and achievement
according to the plans and strategies device by organization. in relation to it there are some skills

which is required by the leadership and management staff of Holiday Inn for the upcoming
challenges and changes in the service industry and hospitality sector.
Management Skills
 Better planning abilities are required to be developed by the management of Holiday Inn
in which will allow them I'm providing and developing more optimised strategic plans for
the workforce by implementing the Taylor scientific management theory.
 Critical Decision making abilities will allow the management of Holiday Inn to take
appropriate decisions by critically evaluating all the scenarios and options available in
front of them that will help the business and the company to enhance their productivity
standards and also their profitability (Ponting, 2020).
Leadership Skills
 Motivation abilities is master to be e present in a leader of a large organisation like
holiday in as for keeping the staff working with their best potential it is important that
they are encouraged and filled with enthusiasm. This is the job role of a leader and
therefore it is very important for them to take hold of appropriate motivational skills
which can be e improve with the help of motivational theories provided by the experts
and present in the business world.
 Creative thinking is another leadership skill which is essential for the leaders of holiday
in to possess because of the regular changing scenario and improvising social trends. This
creates a responsibility for the leaders of Holiday Inn to be creative and innovative as
well while developing supportive future plans for the company and for the
accomplishment of its goals.
TASK 4
P7. Covered in Poster.
CONCLUSION
From the discussion took place in the above report it has been concluded that leadership and
Management in a service sector organisation plays a vital role in talent management and
attracting higher number of customers which result in improved revenue and profit standards of
the entity. Classical management theories and leadership styles are discussed which helps them
in improving the business operations and activities. Furthermore, various internal factors and

external elements which are identified holding huge influence on the management structure and
science of the company. And at the end different soft and hard management skills that are
essential for leaders and managers to hold in order to gain competitive advantage and also to
retain staff for the longer period of time by putting these skills into appropriate practice.

REFERENCES
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Singh, S., Akbani, I. and Dhir, S., 2020. Service innovation implementation: a systematic review
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Online:
Effective Leadership Styles in Business, 2016. [Online] Available Through:
<https://www.americanexpress.com/en-us/business/trends-and-insights/articles/
effective-leadership-styles-business//>