Leadership and Management in the Service Industry

This document discusses the application of classical management theory, role of leader and various leadership styles in the service industry. It also explores the internal and external factors influencing management style and the importance of hard and soft skills in the hospitality sector.

UNIT 5- Leadership
and Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Application of classical management theory in service industry......................................1
P2 Role of leader and various leadership styles.....................................................................3
P3 Management and Leadership style within service sector..................................................3
TASK 2............................................................................................................................................4
P4 Internal and external factors influencing the management style.......................................4
TASK 3............................................................................................................................................6
P5 Hard as well as Soft skills.................................................................................................6
P6 Future management and leadership skills.........................................................................6
TASK 4............................................................................................................................................7
P7. Different Service sector companies’ Change management systems and Leadership......7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Leadership along with management are the pillars on which the financial and strategic
performance of the organisation is acknowledged to be dependent. In this relation, it has been
identified that leaders and as well as managers work collaboratively for ensuring smooth
functioning of the company (Jaca and Psomas, 2015). This helps an entity in sustaining in market
place for a considerably longer period of time in future context. The below mentioned project is
conducted on Britannia International Hotel which is a well renowned hospitality organisation
based in London, UK. The project consists of discussion over classical management theories
along with role of leaders and their styles. Further, it encompasses intrinsic as well as extrinsic
factors that place influence over management styles along with structure. Along with this, it
comprises of current as well as future management and leadership skills required to operate
within hospitality sector.
TASK 1
P1 Application of classical management theory in service industry
Management theories can be referred to as the general rules or principles that are applicable to
workplace settings and provide guidance to them in relation to their general conduct. When
managerial conduct is as per the organisational requirements, it ensures that the workforce is also
performing in an effective manner as manager tends to provide a direction to them. In this
relation, the management theories as applied to Britannia International Hotel are as follows:-
Classical Management Theory
This can be referred to as a theory which is dependent over the premise that employees tend to
possess just economic as well as physical needs. This theory ignores the social need of the
employees or in other words, their job satisfaction. Rather than this, it advocates labour
specialisation, centralised leadership, maximisation of gains and decision making (Nieves and
Segarra-Ciprés, 2015). This theory is adopted by Britannia International Hotel for the purpose of
streamlining business operations, thereby aiming at increasing productivity levels. This also
leads to enhancement of the bottom line.
Fayol’s Administrative theory
Administrative theory was devised by Henri Fayol. This theory emphasizes upon
departmentalisation. This is a concept that is associated with classification of diverse set of
1

business activities into groups or department in order to make sure that all the business tasks can
be completed in due course of time. Under this theory, Fayol propounded 14 principles of
management which when applied to an organisation facilitates smooth flow of operations and
effective management of activities within the premises. This theory is applied by Britannia
International Hotel for the purpose of ensuring that its corporate goal as well as objective is duly
achieved as per the expectations and targets of the top management of the hotel (Shamim and et.
al., 2016).
Taylor’s Scientific Management theory
This theory has been devised by Frederick Winslow Taylor. It focuses over enhancement
of efficiency of workforce within the company. In this relation, company is required to lay down
emphasis over the motivation of workforce through recognition and rewards. This tends to lead
to an overall increase in their performance and productivity levels. Under this theory, there are 4
principles of scientific management as laid down by Taylor (Shin and et. al., 2015). These are
applied in the work settings of Britannia International Hotel. These principles are enlisted as
follows:-
Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.
Scientifically select, train, and develop each worker rather than passively leaving them to
train themselves.
Cooperate with the workers to ensure that the scientifically developed methods are being
followed.
Divide work nearly equally between managers and workers, so that managers apply scientific
management principles to planning the work and the workers actually perform the tasks.
Behavioural theory
The behavioural management theories describe about the human relation movement along with
personnel conduct within the confines of an entity. This theory tends to focus upon the
understanding of human behaviour in the work settings by way of motivation, performance
management, group actions, group activities etc. Britannia International Hotel makes use of this
theory to comprehend the behaviour exhibited by its representatives.
Contingency theory
This can be referred to as a theory that put forth the premise that there does not exist, any ideal
way of organizing or leading a company and/or making decisions related to it. Rather than this,
2

the optimum action is acknowledged to be contingent, i.e., reliant over extrinsic as well as
intrinsic situations. A contingent leader within the bounds of Britannia International Hotel tends
to apply their leadership style onto the right kind of circumstance.
P2 Role of leader and various leadership styles
Leader can be defined as an individual who holds the authority as well as the ability to influence
the behavioural characteristics of representatives belonging to a company. Besides this,
leadership is the usage of authority and influential behaviour by the leader for derivation of
positive outcomes for a company.
Role of leaders
 Improving performance of employee - The main intent held by the entities working
inside the limits of service sector is accomplishment of extreme degree of satisfaction via
clients in order to retain them for a considerably longer period of time in future context.
In this relation, the job of pioneer is acknowledged to be the key. The leadership opted by
the leader of Britannia International Hotel emphasizes upon improvement of workers’
morale so that they can work in a productive manner for the accomplishment of
organisational goal and objectives.
 Developing strategies - Yet another important role of the leader within the hotel is to
ensure that sound strategies are stipulated keeping customers at the heart of business
operations (Psomas and Jaca, 2016). Thus, the overall intention held by the leader of the
respective hotel is to devise and implement strategic course of action through which the
long term sustainability of corporation in market place can be ensured.
The pioneer pertinent to Britannia International Hotel makes use of different styles of leadership
in accordance with the situation prevailing in business environment. However, it is seen that
mainly the leader of this hotel makes use of two styles, namely, democratic as well as
authoritative. The adoption of both the style is contingent to the business circumstances. The
intent behind adopting any of these styles by the leader of the respective hospitality organisation
is to ensure streamlining of business operations.
There are other styles of leadership that is very effective for increasing performance and
capabilities of individual. Different leadership styles are mention below –
Participative leadership style – This type of leadership style can be describe as the way
in which leaders are taking part in organisational activities with employees in order to increase
3

their potential and capabilities. Participation of leader in organisational activity will lead to
motive employees as well as help in learning new and creative way from leader to conduct task
effectively.
Transformational leadership style – This leadership style refer as the way leader in which
the are transforming skills and potential of employees to conduct task in more effective manner.
Transformation leadership style will lead to have major impact on development of person skills
and capabilities so that desired set of action could be attain. The focus of transformational leader
in to change personality and capabilities of employees which is beneficial for personal as well as
professional development.
P3 Management and Leadership style within service sector
Leadership together with management are quite crucial for a company to attain its goal in
predefined time period. The leader and manager of Britannia International Hotel makes use of
some styles which are effectively reviewed beneath.
Leadership Styles
Autocratic: This is an authority style wherein the pioneer incorporates the work just as decision
making power so as to arrange the subordinates to work a particular way, without thinking of the
perspectives held by the workforce. This style is applied by the leader of Britannia International
Hotel in the event that decisions are to be taken in a rapid manner. As a result of the application
of this style of leadership, the pioneer tends to make sure that the business activities and tasks get
duly executed in definite time period as the workers are provided instructions in accordance with
which they need to operate.
Democratic: This can be defined as a leadership wherein the pioneer considers the perspectives
of representatives in every day planning for business. Democratic leadership is used by the
leader of Britannia International Hotel for the purpose of introducing changes inside any part of
the corporation. The application of this style tends to lead to development of a positive working
atmosphere whereby workers can work as per their accords.
Management Styles
Participative style: According to this style, manager engages workforce in the process of
decision making to arrive at the best decision which can account to long term growth of the
company. In accordance with this style of management, the manager of Britannia International
Hotel makes use of this style to build motivation within the workforce. This inflates the
4

productivity levels of workforce, thereby guaranteeing timely accomplishment of objectives in
predefined time period.
Consultative style:
According to this style, manager considers the assessments of different representatives however
the ability to settle on official conclusion vests in their grasp. As for Britannia International
Hotel, it tends to be said that it enhances the loyalty of workers towards the business
establishment and develops a sense of empowerment within them. Also, it decreases the
occurrence of errors by considering the viewpoints of workforce before taking the key business
decision.
TASK 2
P4 Internal and external factors influencing the management style
The business environment keeps on changing with respect to time, it is fluctuating in
nature. Business environment plays an important role on how work is done in an organisation
premises. So business environment comprises of two type of factors, first is internal factor and
second is external factor. Both of them influence the decision making of the management.
Management identifies and evaluate this factors to draw a conclusion or use them in favour of
their operation. These factors are very essential in hospitality sector. These are defined below:
Internal factor:
Complex business demand and alignment is an internal factor which business needs to
tackle. The proper alignment helps the organisation to make the decision faster which increases
the efficiency of the business.
Alignment - Proper alignment may help in increase of participation of the employees which is
beneficial for Britannia International Hotel. Proper alignment leads to tackle the complex
demand in the market and make it in favour of the company.
Financial factors – The company also prepare financial report to tackle complex financial and
investment decision. It is essential for a company in hospitality sector to invest in a wise project
so that productivity can be enhanced and at the same time arrangements of finance should be
done in cheaper rates (Popli and Rizvi, 2015).
Organisational structure - Organisation structure should be build in a way so that there is no
overlapping of work and proper communication is necessary and all the employee in the hotel
5

should work in favour of enhancing the productivity and credibility of the hotel and should
contribute in their own way.
External factor:
Managing diverse talent is the challenge for an organisation, employee in an organisation
come for various places. It is important to manage each and everyone so that they can contribute
towards the success of Britannia International Hotel.
Stakeholders - Stakeholders are the people who have interest in the business working as there
interest also lies there. So it can be an investor, creditor, government etc so Britannia
International Hotel need to deal with stakeholders properly so that there is a healthy relationship
with them and they can help the hotel when required and build a long term relationship with the
business.
Customer - Customer satisfaction is the most important thing for hospitality sector so that they
can be retained and they can do publicity of the hotel which will result in increase market share.
Tourism - Other than that hotel need to take care of the global factor as tourism comes from
foreign country so they carefully need to identify their market and target the audience thereafter
(Noe and et. al., 2017). Hotel can take help of social platform to advertise them and do marketing
at the same time to increase the reach of the services they provide.
TASK 3
P5 Hard as well as Soft skills
Soft skills are the attributes which separates an individual with others. Hard skills are those
which does not relate with professional job skills. Hotel has also used various soft and hard skills
which are as follows:
Soft skills
Communication: It is a vital skill and the hotel also realise that. They have make sure
there is proper communication between the employee and management and also customer and
the employee should have a proper communication so that the customer gets what they were
looking for. With the help of this skill idea can be transmitted to one person to another without
any noise.
6

Delegation: It is very important for the manager of Britannia International Hotel to
delegate the work according to the capability of the employees. Delegation helps in reducing the
burden of the manager as they delegate their work to the employee who is skilled enough to
finish the assigned task (Mesu, Sanders and Riemsdijk, 2015).
Decision making: Management should know how to make fast decision in favour of
Britannia International Hotel. It is essential for the management to make decision which can
result in improve efficiency of the management. Some of the decision can be hard like firing or
demoting the employee, cutting down cost. But management should be prepared to take such
decision in favour of hotel.
Dealing with conflict: Management should be aware of how to stop a conflict within
employees or team member. They should frame such rule so that there is transparency within
Britannia International Hotel and everybody is aware about their role so that chances of a
conflict can be reduced.
Hard skills
 Computer technology – Knowledge and understanding about computer technology is
consider as hard skill. This is one of the important skill which is need by employee in
order to conduct task in better and effective manner. Nowadays employees should be well
aware and informed about the new technology and able to use computer in correct
manner in order to conduct task in effective and efficient manner.
 Data analysis – This skill can be describe as the capability of a person to analyse and
evaluate the information in order to take correct decision. In an organisation there are
different types of data and information which is significant for developing strategies and
taking effective decision for increasing capabilities of business. So decision making in
very valuable hard skill which is needed by employee.
P6 Future management and leadership skills
Future leadership skills: Leaders helps to shape a team to a right direction and the
leader of the team here can use future management skill to increase the productivity of their
team. They can use the skill of working with collaboration so that to reduce the possibility of
conflict within the employees. Another skill with the leader can use is decision making so that
they can make quick decision for the team to increase the productivity and efficiency of
7

Britannia International Hotel. Managing time is essential for any leader, they should work on
improving the organisation efficiency by saving time and finishing the allotted work within the
given time. This all skills help the organisation to reach the set goals on time. It also improves
the relationship between employee and the leader.
Future management skills: One thing the manager of the hotel can do is to learn the
skill of delegation. It means process of delegating work to the subordinate so that the work can
be done on time. Manager of the hotel should know how to motivate its employees so that they
are charged up and can contribute fully towards the organisation productivity (Huang and et. al.,
2016). Planning need to be done properly, it is important that the plan made is viable in nature
and it should help Britannia International Hotel to achieve the desired goals with efficiency.
Plans are the blueprint which led to all the decision of the management. It is important for the
hotel that manager have all these mentioned skill so that they can contribute positively towards
organisation.
TASK 4
P7. Different Service sector companies’ Change management systems and Leadership
Change management is an essential part of an organisation that improves the working
process in order to deliver better services for the welfare of whole hospitality sector. The
manager of Britannia International Hotels needs to constantly collect the data about customer
behaviour. This promotes the employees to enhance their skill set and capabilities in order to
bring out transition in working pattern (Dhar, 2016). Respective company can further focus on
the desirable leadership qualities that encourage personnel to effectively use their potential in
order to attain the predetermined requirements of an organisation successfully. The comparison
between Britannia international hotel and Radisson Blu are listed down below.
Britannia International Hotels Radisson Blu
 Britannia hotels are one of the leading
hotels that operate globally and have
headquartered in United Kingdom. Due to
the intensive size the company effectively
manages the performance of staff by
 Radisson Blu is the well-known competitor
of Britannia hotels that too emphasize on
the changes. Customer data is used analyse
their responses based on which favourable
actions are made to attract the potential
8

providing them advanced training and
development session. Such practices
motivate them to adopt the changes and use
advanced technology so that they can
support the existing functioning and
maximize overall profitability.
 This company is considering McKinsey 7 S
model for management of change in
organisation. This is very effective model
which is effective in determining different
aspects of organisation such as strategy,
structure, system, shared value, style, staff
and skills. Through this model respective
company is easily determine the change
need in organisation as well as implement
it in order to attain desired goal.
customer as well as retain existing ones.
 Respective company is considering
Lewin’s change management model that is
significant for Radisson Blu to successfully
implement changes in organisation. This is
a three step model that includes unfreezing,
change and refreezing stage. In unfreezing
stage company will prepare employee for
future changes. In change actual changes
will be made in organisation where as
refreezing stage employees will accept the
changes and work according to
implemented changes.
 Within Britannia Hotel participative
leadership style is adopted based on which
staffs are allowed to give the valuable
recommendations to the company on the
basis of their customer interaction or
experience. This bind the relationship
between manager and employee which
encourages them to take the favourable
actions successfully.
 Radisson Blu give emphasis to the
contingency leadership style as the
situation of the business constantly changes
based on which decisions are made. As
there does not exist single solution for
diverse problem so this styles helps in
promoting diverse alternatives (Veríssimo
and Lacerda, 2015).
CONCLUSION
From the above report it has been determined that management and leadership are the
core functional areas of business entity that facilitate successive growth and development. It is
9

the responsibility of manager to analyse the internal and external environment that can affect the
functioning of an organisation. Based on these factors adequate management styles are adopted
to overcome the negative implications of dynamic environment and smoothly handle the
situation. Along with that leadership styles varies from one organisation to another organisation
as well as from one situation to another situation. Furthermore, use of hard and soft skills help to
bring out the collaboration amongst the workforce which uplift the overall performance of an
organisation.
10

11

REFERENCES
Books and Journals
Jaca, C. and Psomas, E., 2015. Total quality management practices and performance outcomes in
Spanish service companies. Total Quality Management & Business Excellence. 26(9-
10). pp.958-970.
Nieves, J. and Segarra-Ciprés, M., 2015. Management innovation in the hotel industry. Tourism
Management. 46. pp.51-58.
Psomas, E. L. and Jaca, C., 2016. The impact of total quality management on service company
performance: evidence from Spain. International Journal of Quality & Reliability
Management. 33(3). pp.380-398.
Shamim, S. and et. al., 2016, July. Management approaches for Industry 4.0: A human resource
management perspective. In 2016 IEEE Congress on Evolutionary Computation (CEC)
(pp. 5309-5316). IEEE.
Shek, D. T., Chung, P. P. and Leung, H., 2015. Manufacturing economy vs. service economy:
Implications for service leadership. International Journal on Disability and Human
Development. 14(3). pp.205-215.
Shin, Y. and et. al., 2015. Top management ethical leadership and firm performance: Mediating
role of ethical and procedural justice climate. Journal of Business Ethics. 129(1). pp.43-
57.
Wu, C. M. and Chen, T. J., 2015. Psychological contract fulfillment in the hotel workplace:
empowering leadership, knowledge exchange, and service performance. International
Journal of Hospitality Management. 48. pp.27-38.
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.
Mesu, J., Sanders, K. and Riemsdijk, M. V., 2015. Transformational leadership and
organisational commitment in manufacturing and service small to medium-sized
enterprises: The moderating effects of directive and participative leadership. Personnel
Review. 44(6). pp.970-990.
Noe, R. A. and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
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.
Huang, J. and et. al., 2016. The impact of CEO servant leadership on firm performance in the
hospitality industry. International Journal of Contemporary Hospitality Management.
28(5). pp.945-968.
Veríssimo, J. M. and Lacerda, T. M., 2015. Does integrity matter for CSR practice in
organizations? The mediating role of transformational leadership. Business Ethics: A
European Review. 24(1). pp.34-51.
12