Leadership and Management Strategies for Service Industries: A Report

This report provides a comprehensive analysis of leadership and management within the service industry, focusing on the Bulgari Hotel in London. It begins by assessing classical management theories, such as Fayol's principles, and their application. The report then explores different leadership styles, including autocratic, democratic, and free-rein approaches, evaluating their roles and justifications. It delves into various management styles, recommending a collaborative approach for Bulgari Hotel. The report also examines internal and external factors influencing management styles, assesses current and future management skills required in the service sector, and compares change management systems across different service industry organizations. The analysis emphasizes the importance of democratic leadership and collaborative management for enhancing efficiency, employee morale, and overall organizational success. The report concludes with recommendations for effective leadership and management practices within the service industry.

Leadership and
Management
for Service
Industries

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1: Assessment of classical management theories..................................................................................3
P2: Role of leader and leadership styles..................................................................................................4
P3: Review of management and leadership styles...................................................................................5
TASK 2..........................................................................................................................................................7
P4: Internal and External factors.............................................................................................................7
TASK 3..........................................................................................................................................................8
P5: Assessment of skills...........................................................................................................................8
P6: Future management and leadership skills required in service sector................................................9
TASK 4........................................................................................................................................................10
P7: Comparison and contrast of different service industry organizations change management systems
...............................................................................................................................................................10
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Leadership refers to a skill of leading an organization and setting a vision for it to be
achieved in the future time period (Bande and et.al., 2016). Management refers to administration
of an organization effectively and efficiently so that it is able to achieve its various types of goals
as well as objectives. Leadership and Management are required in the hospitality organizations
because this ensures that they are able to get their tasks done without facing issues and problems.
Also this helps in increasing the motivation as well as morale of the employees which makes
them work to their full potential with productivity. For this report Bulgari Hotel has been chosen
which is a Five Star Hotel operating in London, United Kingdom. In this report, a detailed
analysis will be made on review of classical management theories and leadership styles,
exploring the factors influencing management styles. Additionally, assessment of current and
future management and leadership skills for service sector and demonstration of management
and service skills in a service industry context will be made.
TASK 1
P1: Assessment of classical management theories
Various types of classical management theories can be applied in the service industry.
One of them is discussed as follows-
Fayol’s theory-
There are various principles of management as given by Henri Fayol. The application of
these principles in the context of Bulgari Hotel is as follows-
 Initiative- It means the level of freedom which should be there within an organization to
allow employees to carry out their plans. This should be there in Bulgari Hotel so that its
workers can take initiative to take certain decisions on their own.
 Equity- It means that there should be equality within the organization (Chang, 2016)
(Dhar, 2016). Thus in the context of Bulgari Hotel it means that all the employees must
be treated equally. Therefore in Bulgari Hotel this should be followed.
 Scalar Chain- This means that there should be a flow of communication in an
organization right from the top to bottom. In Bulgari Hotel this chain must be followed.
 Remuneration of Personnel- This means that the personnel in the organization should
be given adequate remuneration. This needs to be followed in Bulgari Hotel.
 Unity of direction- This means that there should be a unity of direction among all the
employees. In the context of Bulgari Hotel this is essential to be followed.

 Discipline- This means that discipline must be followed in the organization. In Bulgari
Hotel this must be ensured.
 Division of work- This means that the work should be divided according to the
capabilities of employees. For Bulgari Hotel this is essential.
 Authority and Responsibility- This means that authority and responsibility is required
to be given so that workers can complete tasks. In Bulgari Hotel this is required to be
ensured.
 Unity of Command- In an organization it is essential that there is a unity in command
and all the subordinates move in one direction. This is required to be ensured in Bulgari
Hotel.
 Subordination of Individual Interest to General Interest- It has to be made sure that
the employees place organization’s interest above their general interest. It is required in
Bulgari Hotel.
 Centralization- It means centralization of highest-level of decision-making power. It
should be ensured in Bulgari Hotel.
 Order- It means that a particular order is required to be maintained in an organization. In
Bulgari Hotel this should be ensured.
 Stability of Tenure- This means that the employees should be provided job security.
Therefore the management of Bulgari Hotel should provide it.
 Esprit de Corps- This refers to team work. Teams are required to cooperate and
coordinate in a better manner so that they can help in the achievement of aims and
objectives. For the managers of Bulgari Hotel this is quite essential.
The different types of classical management theories which are used by the managers of
Bulgari Hotel are as follows-
 Administrative management theories- These theories are used by the organizations in
order to ensure better administration of the firm. In Bulgari Hotel, the use of Fayol's
theory is made in which there are 14 principles of management. These principles are
quite helpful for it to ensure that it is able to ensure that better management of the
company can be done in a highly effective manner to achieve a higher-level of efficiency
and effectiveness.
 Bureaucratic management theories- This theory has been given by Max Weber.
According to it, an organization is a system of bureaucracy due to which it is able to set
up a hierarchical structure in which there are different types of positions form top to

bottom. In the context of Bulgari Hotel, the use of this theory can be made so that it is
able to ensure that management can be run through hierarchy.
 Contingency management theories- This theory was given by Fred Fiedler. According
to it, there is no specific way through which an organization can be governed. Thus it is
required from the managers of the organizations that they analyze the situations and take
the necessary actions accordingly. In Bulgari Hotel, the use of this theory can be made so
that proper action is taken according to the situation.
P2: Role of leader and leadership styles
Role of leader- The role of leader in an organization is to set a vision, provide guidance
whenever required (FHKPS, 2018). In Bulgari Hotel, the leaders play this role effectively and
efficiently in a proper manner.
The different styles of leadership are explained as follows-
 Autocratic Leadership Style- In this leadership style, the leader is the one making all
the decisions and no subordinate is allowed to take different types of decisions (Karatepe,
Ozturk and Kim, 2019). Thus this creates autocracy within an organization. Bulgari
Hotel’s leaders can make use of this style which will lead towards autocracy. The role of
the leaders of the hotel here would be to ensure that the subordinates are given clear
instructions on how to perform tasks so that they are able to ensure that they can achieve
their goals and objectives in the future.
 Democratic Leadership Style- Here, the leader acts democratically. Therefore, the
leader here is required to make sure that the subordinates are a part of decision-taking
process. This style can be adopted by Bulgari Hotel’s leaders which will lead towards
creation of democracy within the organization. The role of the leaders of the hotel here
must be to ensure democracy within the organization so that they are able to take the
opinions of the different members of the hotel and take decisions accordingly which will
enable them to establish democracy within the processes.
 Free-Rein Leadership Style- The leader here gives free rein to the subordinates to
operate. Thus, this makes sure that many of the decisions can be taken without any
problems and issues. This style can be adopted by the leaders of Bulgari Hotel which will
make sure that the leader only interferes in important matters and the rest of the decisions
are taken by the subordinates themselves. The role which the leaders of the hotel must
play here is to ensure that total authority must be given to the subordinates so that the
decisions can be taken effectively and efficiently.
 Paternalistic Leadership Style- The leader is required to adopt this style as it has a
fatherly function and therefore the subordinates are treated just like family. This style can
be adopted by the leaders of Bulgari Hotel so that they create a family-like bond with

their subordinates. The role which is played by the leaders of Bulgari Hotel here is to
ensure that they act like guides and motivators for the subordinates and ensure that the
subordinates face no problem in achieving goals and objectives.
Role of a leader-
 Vision- It is required from a leader to be able to create a vision through which success
can be ensured in a particular organization. In the context of Bulgari Hotel the leaders
should be able to set a vision in an effective manner.
 Guidance- It is the role of a leader to be able to ensure that the appropriate guidance is
provided to the subordinates within an organization so that they are able to achieve their
goals and objectives. In Bulgari Hotel the leaders must be able to ensure this.
 Motivation- It is the role of a leader to be able to provide the required motivation to the
subordinates so that their level of morale remains high and they are able to achieve their
goals and objectives effectively without problems and issues. In Bulgari Hotel the leaders
must ensure this.
 Directions- A leader must be able to provide the appropriate guidance to the subordinates
within the organization so that they are able to achieve their goals and objectives and so
that they work properly. In the context of Bulgari Hotel the leaders are required to ensure
this.
Justification- The leaders of Bulgari Hotel London should adopt democratic leadership
style so that they are able to take certain important decisions by themselves but allow
subordinates to be a part of decision-making in other matters. This will develop decision-
making skills in the subordinates and will also increase their morale and motivation.
P3: Review of management and leadership styles
Various types of styles can be used by the managers and leaders within the organizations
(Ling, Lin and Wu, 2016). These are explained as follows-
Management Styles-
 Democratic Management Style
 Inspirational Management Style
 Authoritative Management Style
 Results-Based Management Style
 Laissez-Faire Management Style
 Collaborative Management Style

 Example-Setting Management Style
 Strategic Management Style
 Affiliative Management Style
 Charismatic Management Style
In Bulgari Hotel London, Collaborative Management Style should be followed. This is so
because by following this style the managers can make sure that they work by closely
collaborating with the employees in the organization. Thus this will make sure that active
feedback is received from the employee about the company policies.
When this style is used by the managers it makes sure that the organization is able to
achieve its goals and objectives without problems and issues because the manager can
coordinate with the other employees in the organization and thus in this way is able to
ensure that it can use their ideas in a better manner to be able to manage the organization
in a much better manner. Also in this way the various problems and issues of the
employees are dealt effectively and efficiently.
Therefore, this style ensures that feedback given by the workers is taken quite seriously
and thus this will lead towards attainment of higher level of efficiency as well as
effectiveness in the company raising its overall level of productivity. This will result in
maximization of profits in the long-run.
Leadership styles-
 Autocratic Leadership Style
 Democratic Leadership Style
 Laissez-Faire Leadership Style
 Paternalistic Leadership Style
In Bulgari Hotel, Democratic Leadership Style must be followed. This is required to
ensure that the leaders of the organization involve subordinates in the decision-making
process. By doing so, subordinates will be able to learn the process of taking the right
decisions at the right time. Thus, this will lead towards more efficiency as well as
effectiveness within the organization as the productivity will rise. This will lead towards
maximization of the available profits in the long-run period of time. The leadership style
has to be chosen after considering a number of factors which are prevailing in the
organization. Each of the leadership styles has their own advantages as well as

disadvantages. The leaders are required to consider both before taking a decision of
adopting a particular style. The leadership style selected should be such that it leads
towards an increase in the level of motivation as well as morale in the employees of the
organization. Also, the style adopted should be able to make the employees perform to
their best of their capabilities. Thus the leaders and managers should adopt a leadership
and management style after making sure that it will help in achievement of short-term
and long-term objectives of the organization in the future time period by ensuring proper
application effectively and efficiently.
TASK 2
P4: Internal and External factors
In an organization there are certain factors which can influence management styles as
well as structures (Lu, Laux and Antony, 2017). These are explained as follows-
Internal factors-
 Complex business demands and alignment- There may be complex business demands
in an organization. They are required to be aligned. In Bulgari Hotel, this can create a
significant impact on the operations. For example- In the hospitality industry there can be
a frequent change in the demands of the customers and clients and thus it is required from
the organizations that they are able to adjust accordingly. This can impact the internal
situation in Bulgari Hotel.
 Complex financial and investment management- There can be complex financial and
investment management in a company. Thus, In Bulgari Hotel this can affect the way
managers manage the organization. For example- In Bulgari Hotel, the financial and
investment management structure can be affected by several factors. Thus the managers
are required to take into consideration these factors which will allow the organization to
be able to achieve the goals and objectives.
 Internal relationships- Internal relationships are an important factor which can influence
the selection of management styles and structures in a company (Nallusamy, 2016). In
Bulgari Hotel, it is quite essential to be considered and can influence the overall
management style and structure. For example- The internal relationships of staff
members of Bulgari Hotel is an important factor which can influence the management
style and structures because they put an impact on its decision-making.
 Organization structures and culture- Organizational structures and culture are quite
important as it affects the behavioral pattern in the organization. For Bulgari Hotel, this
factor is very important because this can create an impact on the functions. For example-

In Bulgari Hotel, the structure and culture influences the managers to adjust their styles
accordingly to be able to properly manage the organization.
External factors-
 Managing diverse talent, stakeholders and customers- It is quite important to be
considered by the firms because this will allow them to function in a proper manner. This
is so because this can influence management styles and structures. Thus the managers of
Bulgari Hotel are required to consider this. For example- In Bulgari Hotel, the managers
need to amend their style and structures according to the management required for
diverse talent, stakeholders and customers to better suit the various needs and
requirements.
 Globalization- Globalization refers to integration of various economies in the world for
conducting business activities. This is an important factor which can create an impact on
the firm and can influence the management styles and structures. Therefore the managers
of Bulgari Hotel are required to consider this. For example- In Bulgari Hotel, the
managers need to bring amendments to their style and structures so that alterations can
be made according to the needs and requirements of the globalization.
 Digital and innovative disruption- It is also quite important from the point of view of
the organizations. This is a factor which is likely to affect the business decisions.
Therefore the management of Bulgari Hotel is required to consider this as it can
influence the management styles and structures. For example- In Bulgari Hotel, the
managers need to change their style and structures according to the the changes which
are there due to the changes in the digital environment.
 Dynamic changes- Business environment of an organization is very dynamic in nature
and can change very fast (Pantouvakis and Patsiouras, 2016). If the firms have to sustain
themselves in the market then they are required to adopt these changes very fast. Thus,
the managers of Bulgari Hotel are required to consider these changes which can impact
the management styles and structures. This will lead towards the adoption of right
management style and structure thereby allowing the organizations to achieve
sustainable success in the long-term in the market by leaving the competitors behind. For
example- The managers of Bulgari Hotel are required to change their style and structures
and structures according to the dynamic changes which keep on happening within the
business environment.

TASK 3
P5: Assessment of skills
Different types of skills are required so that the service sector can be served. These skills
are as follows-
Management-
Soft Skills-
 Communication- The skill of communication is required in the service sector because
this will ensure that a person is able to communicate well whenever required. This is
especially required in the hospitality industry and thus this skill should be present in the
managers of Bulgari Hotel.
 Delegation- Delegation means transferring the authority in order to perform a specific
task. This is required in the hospitality industry because there are certain tasks which
have to be performed by the subordinates. Thus the managers of Bulgari Hotel should
have this skill.
 Inspirational Motivation- Inspirational Motivation has to be provided by the managers
to their subordinates so that they are able to take the right decisions and can realize their
full potential. Thus this skill is required in managers of Bulgari Hotel so that goals and
objectives can be achieved.
 Positive Attitude- Positive Attitude displayed by the managers is extremely helpful for
the subordinates as they can easily take their help in crucial matters (Pradhan, Panda and
Jena, 2017). It also results in better cooperation as well as coordination. Therefore this is
essential in the managers of Bulgari Hotel.
Hard Skills-
 Technical knowledge- The managers should possess technical knowledge. This is
required in Bulgari Hotel.
 Analytical skills- The managers should be able to analyze the relevant facts and
information. This is also required in Bulgari Hotel.
 Marketing skills- The managers should also have marketing skills so that they are able
to frame a marketing strategy. This is required in Bulgari Hotel.
 Legal skills- The managers are required to make sure that they are able to have good
legal skills. This is essential in Bulgari Hotel.

Leadership-
Soft skills-
 Networking- The leaders are required to have the skills of networking. In Bulgari Hotel
this is important because the leaders of the hotels are required to create networks in an
effective manner with the subordinates and solve their problems effectively.
 Time Management- The leaders should have the skills of time management so that they
can manage their time in an appropriate manner. In Bulgari Hotel it is quite important for
the leaders so that they are able to finish out their tasks in time.
 Teamwork- The leaders must have the skills related with teamwork so that cooperation
and coordination can be set up effectively within the team. In the context of Bulgari Hotel
this is quite crucial to be considered by the leaders so that they are able to ensure the
achievement of objectives.
 Conflict resolution- The leaders must also put their focus on ensuring the resolution to
various conflicts. In Bulgari Hotel, this will help a lot in ensuring that the conflicts are
resolved effectively.
Hard skills-
 Foreign language proficiency- The leaders in hospitality are required to make sure that
have proficiency in foreign languages. In Bulgari Hotel this can be quite useful for them
to be able to lead the team in a better manner.
 Interpretation skills- The leaders of the hospitality industry are also required to make
sure that they can carry out the required interpretation in a better manner. In Bulgari
Hotel this can be quite useful for them to be able to derive conclusions and
recommendations.
 Presentation skills- The leaders of the hospitality sector should have presentation skills
so that they can ensure better presentation. In the context of Bulgari Hotel, this will be
helpful for them to present their findings in a better manner.
 Project management skills- The leaders in the hospitality industry should make sure that
they can manage the projects in a better manner. In Bulgari Hotel this can be quite useful.
P6: Future management and leadership skills required in service sector
Service sector will witness a lot of changes in the future. There will be a lot of
innovations which will be implemented. Thus there will be a requirement of certain skills in the
future time period. These skills are explained as follows-

 Technological skills- High-level technological skills will be required from the leaders
and the managers. This is so because the technology will witness various innovations
which are required to be implemented in the organization. Thus in the context of Bulgari
Hotel these skills will be quite crucial.
 Interactive skills- The interactive skills are also going to be very important in the future
for the leaders as well as managers. They will be required to be highly interactive with
the subordinates for helping them achieve their tasks. Thus, in the context of Bulgari
Hotel these skills will be crucial.
 Creative skills- Creativity is a valuable workplace skill because it can help a lot in
getting new ideas, increasing efficiency and devising solutions to solve problems
(Creativity Skills: Definition, Tips and Examples, 2020). Therefore creative skills are
required in managers. This is so because these skills will be quite helpful for them to
make sure that they get new ideas which can be implemented.
 Coordination skills- These skills will be required in the future in hospitality industry so
that the guests can be served in an appropriate manner. In the context of Bulgari Hotel
these skills will be required in the future for better serving its guests. Thus the company’s
managers are required to develop them.
 Judgment and decision-making skills- These skills are likely to get a new dimension in
the future. This is so because their importance will increase. Thus in the context of
Bulgari Hotel these skills will be very important.
 Critical thinking skills- The managers will require to make the appropriate use of these
skills (Suriyankietkaew, 2016). This is so because these skills will be essential for an
organization to get a strategic as well as a competitive edge in the market. In the context
of Bulgari Hotel these skills are very essential so that the hotel is able to match its
competitors. Therefore it becomes highly important that the managers are able to have
these skills which will help the company. For developing these skills they are required to
make important decisions according to the context of the situation and thus take a desired
action.
TASK 4
P7: Comparison and contrast of different service industry organizations change
management systems