Leadership and Management in Service Industry

This report explores the role of leadership and management in the service industry, with a focus on Premier Inn Hotel. It assesses various classical management theories, reviews management and leadership styles in the hotel, and discusses the impact of internal and external factors on management styles. The report also examines current and future management skills needed in the service industry and compares change management systems and leadership in implementing change.

Leadership and
management in
service industry
Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY .................................................................................................................................4
TASK 1............................................................................................................................................4
P1 Assessment of various classical management theories ....................................................4
P2 Role of leader and different leadership styles in context of the service industry..............6
P3 Review of management and leadership styles in Premier Inn Hotel.................................8

M1 Analyse management and leadership styles in Premier Inn Hotel in relation to
organisational structure and culture........................................................................................9
D1 Evaluation of current leadership and management styles with link to theory................10
TASK 2..........................................................................................................................................10
P4 Investigation of internal and external factors which influence management styles and
structures at Premier Inn.......................................................................................................10
M2 Analysis of internal and external factors affecting management styles and structures with
strengths and weaknesses.....................................................................................................12
D2 Critical analysis changes in management styles influenced internal and external factors
..............................................................................................................................................12
TASK 3..........................................................................................................................................12
P5 Assessment of current leadership and management 'hard and soft' skills.......................12
P6 Discussion of future management and service skills needed in the service industry and
ways in which they can be attained......................................................................................12
M3 Evaluation of current and future management and leadership skills essential for the
service industry.....................................................................................................................12
TASK 4 .........................................................................................................................................12
P7 Compare and contrast change management systems and leadership in implementing
change ..................................................................................................................................12
M4 affect of change management on management and leadership styles and skills ..........12
D3 Critical evaluation of development of management and leadership skills in response to
change ..................................................................................................................................12
CONCLUSION ............................................................................................................................12
REFRENCES ................................................................................................................................13
INTRODUCTION
The hospitality sector is fast changing industry as the preferences of consumer base of
and market trends this industry as change regularly. Effective leadership plays a crucial role in
success of any establishment in the hospitality business as every aspect of the business is in
direct contact with the consumers. This report is based on Premier Inn hotels which is a leading
member of the British hotel industry. The firm is headquartered in Dunstable, UK and currently
with more than 800 hotels across UK. The company also operates in some European nations

which include Germany and Ireland. The firm has employed 34,000 workers to conduct daily
activities of the company. This report includes assessment of various classical management and
leadership theories in context of the selected company. Apart from this, review of leadership
and management style utilised by the respective firm is given in this report. Internal and external
factors which effect management which affect management styles in the firm are provided in this
report. Current and future management skills needed in the hospitality industry are also provided
in this report. In addition to this comparison on the basis of change management systems
between different service sector organisation is given in this report.
MAIN BODY
TASK 1
P1 Assessment of various classical management theories
The basis of classical management theory is that employees only have economical and
physical requirements and focuses on specialisation of labour. Thus theory emphasises the
requirement of centralisation of leadership and decision making process and the primary aim of
this theory is maximising profitability of the firm through effective management (Bouranta and
et. al., 2019). This theory is divided into three main streams which includes Bureaucratic theory
by Max Webber, Administrative theory by Henri Fayol and theory of scientific management by
Taylor.
Premier Inn is British firm which operates in the hospitality sector and has 800 hotels
across UK. The firm was founded in the year 1987 and is one of the most successful hotel chain
in Britain. Effective management and leadership is one of the reasons behind the continuous
growth of the firm and successful expansion in several international markets which includes
Germany, India and Jersey. Assessment of various classical management theories along with
application of these theories to the respective company is provided below:
Taylor's theory of scientific management
The main aim of this theory is to enhance economic efficiency of the company with focus
on enhancing overall output of the firm. This theory states that financial compensation is the
main motivator which increases employee productivity and results in in increasing economic
efficiency of the company (Chang, 2016). The main principles followed by this theory
emphasise the importance of cooperation between the firm and the employees along with

maintenance of harmonized interests between the employees and employers. This theory states
that in order to achieve high performance organisation need to establish fair compensation
package with additional benefits to increase performance of the employees.
The organisation utilises this theory by giving fair compensation to employees. Such
compensations are there which are given on the basis of employees works In hotel premier inn
there are different services which are provided by this hotel which needs high involvement of
employee. The respective hotel gives their employees compensation and rewards on the basis of
the performance which motivates the employees to increase their productivity.
Fayol's Administrative management theory
This theory includes 14 principles for effective management of employees and focuses
on interaction between the manager and their employees as the basis to effectively manage the
employees. The main elements of management according to this theory are planning organizing
commanding co-ordinating and supervising. The main concern of this theory is contribution of
each employee on overall organisational success. This theory states that in order to effectively
manage employees business firms need to focus on improving employee satisfaction. (De
Oliveira, Cavazotte and Alan Dunzer, 2019).
In relation to Premier Inn this management theory is utilised by formation of strict
policies which increase employee motivation and aim to develop and maintain effective relation
between workers and their employers. The respective company focuses on creating job security
and supports their employees to extend their responsibilities by enhancing their skill-set. This
motivates the employee to continuously improve their performance and results in every position
of the firm being filled by talented and skilled employees. The firm offers their employees
adequate remuneration according to their skill level and performance progress. This helps the
company maintain high performance and gain competitive advantage in their industry. In
addition to this managers at the company focus on building trusts between employees so that
each works with dedication and is diligent towards completing their daily tasks in a timely
manner (Delić and et. al., 2017). The leadership at Premier Inn aims to develop a vision for
employees in which they grow along with the company. This vision motivates the employees
and constructs workforce which is dedicated towards accomplishing business objective of the
company. The organisation is able to gain success in each of their business endeavour due to
such highly dedicated employees.

Webber's Bureaucratic theory of management
This management theory is focuses on creating a clear distinction between authority and
power. This theory stresses the importance of constructing of strict rules and regulations along
with stable division of power. The theory states that bureaucracy is the most efficient and useful
model for managing private firms. The main features of this theory are formation of hierarchical
structure, selection of employees on the basis of their technical skills, maintenance of formal and
impersonal relations between the employer and employees.
In context of Premier Inn this theory is used by implementation of clear rules and
regulations and command of authority which govern it. The hotel is able to construct a
systematic organisational structure where responsibility of every employee, methods and
procedures related to every business process are clearly defined. Usage of this theory makes
enhances decision making, increases accountability in the respective hotel which helps the
company achieve sustainability by effective implementation of energy saving initiatives and
their completion in a timely manner (Elkhwesky Salem and Barakat, 2019).
P2 Role of leader and different leadership styles in context of the service industry
Adoption of effective leadership style is essential for the growth and development of the
service sector as leaders face various situations and are in direct contact with their consumer
base in most business scenarios of the service sector. Leadership style and the role of leader in
the service sector industry is mentioned below:
 Democratic leadership style: There is an emphasis on taking suggestion from every
employee and considering opinion of every staff member in this leadership style. This
leadership style is utilised in the service sector by ensuring free flow of opinions and
completing decision making by taking views of every employee into consideration.
Enhancement of employee engagement and job satisfaction is the main advantage of
this leadership style while the main demerit associated with this leadership style is time
consuming decision making process which delays essential tasks (Hassi, 2019).
Role of the leader: The leader in this leadership style is required to create equality in the
workplace by giving equal importance too opinion of every employee despite their position in
the hierarchy of the service establishment. Leaders in the service industry need to involve their
subordinates in decision making and problem solving process while keeping the concluding say

in the situation. This will improve decision making process and help the leader gain a profound
understanding of the topic while enhancing employee participation and job satisfaction.
 Transformational leadership style: The main goal of this leadership style is to
encourage and enable employees into transforming to their best version. The success of
this leadership style depends on effective communication between leaders and
employees and formation of strong emotional bond between leaders and employees. This
leadership style is beneficial for the service industry as it creates manages change,
enhances employee satisfaction and unites the workforce for common cause.
Role of leader: Transformational leaders need to motivate their employees by focusing
on positive development, enhancing moral standards within the establishment, creating
workplace environment which has clear ethical values and standards. The leader needs to guide
the employees by creating future vision for the employees which motivates them to surpass their
self interest for the company. Transactional leadership style:This leadership style includes encouraging and directing
employees by focusing on their own self interests. Leaders in the service sector apply
this transformational leadership style by monitoring and controlling their employees and
giving them rewards or punishment according to their performance (Karatepe,
Aboramadan and Dahleez, 2020). This style increases productivity by constructing
attainable objectives for every employee while reduction of creativity is main demerit of
this leadership style.
Role of the leader: A transactional leader utilises system of reward and punishment to
motivate employees. Leaders in the service industry need to be task oriented and focus on
achieving short term goals by following organisational culture and predefined rules and
regulations. Primary role of leader is to reward employees which contribute to current business
strategy of the hotel and punish employees which hinder the growth of the establishment.
 Autocratic leadership style: This leadership revolves around single entity taking
decisions for the company and limit the involvement of employees in the decision
making process. The usage of this leadership style in the service industry enhances
productivity, improves workplace communication and helps the managers handle crisis
situations effectively (Kaya and Karatepe, 2020).

Role of leader: The leader utilising this leadership style needs to focus on developing
clear rules and regulations, delegate responsibilities, construct a structured workplace
environment for stable growth of the establishment. Autocratic leaders make quick decisions
which reduces delays and enhances productivity of any service sector industry.
P3 Review of management and leadership styles in Premier Inn Hotel
The leadership at British organisation Premier Inn is utilises autocratic leadership style to
manage various business scenarios and lead the employees towards their professional
development so that the profitability of the company increases and every business objective of
the firm is attained in a timely manner.
This leadership style revolves around constructing structured and systematic working
environment with focus on following pre-defined rules and procedures. Leaders who follow this
leadership style delegate responsibility on their employees and make decisions without taking
input from their subordinates. The leaders at the respective hotel are able to quickly take
decisions and implement policies for swiftly achieving business objectives. Employee dispute
and miscommunication is reduced at Premier Inn with the use of this leadership style while
employee productivity is enhanced as each employee understands their responsibilities and clear
chain of command is present to encourage employees for their career development. The main
disadvantage of this leadership style that is faced by leaders at Premier Inn is that it discourages
employees, reduces employee engagement, creates inflexible working environment and hinders
creativity at the company (Kim and et. al., 2020).
Premier Inn aims to reduce their carbon emission in half by the year 2025 and create
sustainable enterprise. The company is focusing on using renewable technology, reduce wastage
of resources and recycling various hotel supplies such as pillows, bedsheets duvets and others.
Autocratic leadership style will help the company achieve their sustainability goals in a timely
manner by delegating tasks to capable employees, constructing structures to ensure effective
implementation of waste reduction practices and direct every employee to accomplish their
suitability objectives according to the pre-defined schedule (Liang and et. al., 2017).
The management style adopted at Premier Inn is autocratic management style which
focuses on restricting employee engagement in process of decision making and creating a
workplace environment with rigid structures. Managers at the respective establishment utilise a
subcategory of autocratic management style which is paternalistic management style.

Paternalistic managers at Premier Inn conduct daily activities with focus on employee well-being
and best interests of their subordinates at heart. Managers explain reason behind each decision
to employees from a position of expertise and legitimacy but employee participation in decision
making is not allowed. Premier Inn gains various benefits after utilising this management style
which includes construction of skilled employees as managers make decisions for the benefit of
their staff members. Apart from this skills are valued in this management style which improves
productivity and creates happier working environment. The main demerit of paternalistic
management style is that organisation it reduces innovation and increases dependency of
employees on the firm.
This management style will help Premier Inn achieve sustainability as each employee
understands reason behind every decision and understand their benefit in various sustainable
initiatives. This will increase employee participation in various programmes which aim to
increase sustainability such as waste reduction programmes. This will ensure timely completion
of every sustainability project and help the company chive high sustainability in given time.
M1 Analyse management and leadership styles in Premier Inn Hotel in relation to organisational
structure and culture
Premier Inn has family workplace structure which focuses on improving employee well-
being and developing skills of the staff members so that they can grow along with the company.
The establishment treats their employees as a part of a community with focus on their
development (Liao and et. al., 2017). Divisional organisational structure which groups each
organisational function into groups such as marketing and sales, HRM , finance division and
many others. Premier Inn utilises this organisational structure as the company operates in various
international regions. Autocratic leadership style of the respective firm is suitable for the
organisational culture as it focuses on employee development and making best decisions for the
employee quickly and aligning interests of the employees with organisational goals so that
employees can grow along with the firm. This leadership style has helped the respective
organisation increased sustainability as employees were given a clear idea about their roles and
contribution in suitability and waste reduction programmes through their leaders (Lim, 2021).
Autocratic management style used at the respective establishment and paternalistic management
style appropriate for the company which prioritizes employee well-being and considers staff
members as the family of the organisation. Autocratic management style is appropriate for the

divisional structure of the respective enterprise as it enables the managers to maintain strict
control over the employees of their division and make decisions according to their interests.
Managers at Premier Inn have been able to increase participation of employees in sustainable
initiatives by using paternalistic management styles as employees from each division gain an
understanding about various their benefits associated with various decisions.
D1 Evaluation of current leadership and management styles with link to theory
Premier Inn utilises autocratic leadership style to ensure smooth functioning of their
hotels located all over the globe. This is because hotel staff regularly interacts with consumers
and effective leadership has a positive effect on overall consumer experience. Positive consumer
experience is key driver of increased sale in to hospitality industry. Autocratic leadership gives
the respective establishment various advantages which includes construction of clear chain of
command reduction in miscommunication and encourages employees to improve their
performance as they have clear understanding of their career development path. The main
disadvantage of this leadership style is decrease in employee creativity and construction of an
inflexible workplace environment. Autocratic management style is adopted by managers at
Premier Inn to handle their employee with emphasis on usage of it's subtype which is
paternalistic management style. The main advantage gained by the respective hotel through this
management style is that the managers at Premier Inn are able to enhance skills of their
employees, create harmonious working environment while maintaining control over their
employees. The main disadvantage of this leadership style is that employees are over dependent
on employees on the company and are not able to develop problem solving skills (Okumus and
et. al., 2019).
TASK 2
P4 Investigation of internal and external factors which influence management styles and
structures at Premier Inn
Internal factors
Human resources is the primary factor influencing management style and structure at
Premier Inn Hotels. Organisational structure and management styles are modified due to changes
in human resources of the company. Premier Inn has adopted divisional organisational structure
which dived organisational structure into separate business units . This structure is advantageous

for the firm as it creates career progression opportunities and helps the establishment take timely
and effective decisions (Wadei and et. al., 2020). The paternalistic management style adopted by
Premier Inn is influenced by human resources as managers take every decisions considering
interests of the workers employed at the firm.
Financial resources of the company affect organisational structure of the company and
management style used at the business entity. Lack of financial resources due to the pandemic
has influenced Premier Inn to trim the organisational structure. (Whitbread job cuts smaller than
anticipated, 2021). The respective establishment has cut down 1,500 jobs across their
establishments in UK while the firm aims to add managers and enhance their organisational
structure to accommodate future growth.
Workplace culture of the firm is another factor affecting organisational structure and
management style of the corporation. Workplace culture at Premier Inn requires immediate
response to changes and consumer demand has enormous influence on flow of communication,
reporting procedures and decision making powers over subordinates which shapes the
organisational structure. The management style adopted by Premier Inn is autocratic
management style which aims to create quality which keeps employees happy and focuses on
accomplishing organisational objective of constructing highly sustainable firm.
Premier Inn aims to attain high sustainability which is one of the main internal factors
affecting management style and structure of the company. Managers at the respective firm have
adopted the engagement style which enhances sustainability while organisational structure of
the firm is modified with the goal of attaining high sustainability and waste reduction.
External Factors
Political factor: Reduction in corporate tax influences organisational structure and
management style of Premier Inn as the profitability of the firm is increased.
Economical factor: Sustained inflation and uncertain economic conditions of UK are a
major challenge to the company which influence management style and organisational structure
of the company (Premier Inn suffers from ‘acute political and economic uncertainty’, 2019).
Social Factor: Seasonal holidays such as Christmas have huge impact in organisational
structure and management style adopted at Premier Inn because the amount of consumers hosted
by the firm increases swiftly.

Technological Factor: Technological advancement such as AI and internet of things are
an external factor affecting the management style and organisational structure of the respective
firm as it enables effective management of employees.
Environmental factor: Premier Inn has adopted various sustainable practices such and
Standard Operating Procedure to enforce sustainable policies. This impacts both management
style and organisational structure at Premier Inn.
Legal factors: Legislation which increases minimum wage increases overall costs of the
company has high impact on management style adopted by the firm and overall organisational
structure utilised by Premier Inn.
M2 Analysis of internal and external factors affecting management styles and structures with
strengths and weaknesses
Internal factors which influence management style at Premier Inn include workplace
culture financial resources, human resources and objective of the company to attain high
sustainability. Premier Inn has diverse workforce and adequate financial resources along with
workplace culture dedicated to attaining high sustainability, this is highly beneficial for the
company. The external factors affect organisational structure include rising environmental
concern and technological advancements. As the company utilises advanced technology and
aims to achieve high sustainability, these factors are strengths of the firm. Economic uncertainty,
taxation laws and increase in minimum wage are some external factors which increase coasts of
Premier Inn and damage organisational structure and effective usage of autocratic management
style (Wang, 2016).
D2 Critical analysis changes in management styles influenced internal and external factors
Premier Inn utilises autocratic management style which is affected by internal and
external factors. This management style is affected by Human resources as paternalistic
management style which is subtype of autocratic management style focuses on benefit of
employees. Workplace culture and focus of the firm affects this management style as every
decision under this management style is taken to create highly productive workplace culture
which helps the company attain their goals. External factors such as economic uncertainty
taxation laws and rising environmental concern influence management style adopted by Premier
Inn. Decisions taken under this style focus on considering every external factor which affects
business operations of the firm.

TASK 3
P5 Assessment of current leadership and management 'hard and soft' skills
Leadership skills: Merits and attributes demonstrated by individuals that help in
supervision of systems, guide initiatives and help the company attain organisational objectives.
Communication is an important an important soft leadership skills which involves
facilitating open and effective communication with their subordinates for attaining various
organisational goals (Radwan, 2020). Leaders at Premier Inn have effective communication
skills which reduces miscommunication and helps timely completion of activities.
Teamwork skills is another soft leadership skill which revolves around construction of
good rapport with the team and using it to complete tasks with high quality. Leaders at Premier
inn utilise this skill to construct effective team and guide them to attain high sustainability.
Problem solving skills is a soft leadership skill highly required in leadership industry as
it helps in finding creative solutions to consumer problems while maintaining composure (What
are the soft and hard skills needed for a hospitality management career?, 2021). Leaders at
premier Inn utilise this skill on a daily basis to handle unsatisfied employees.
Management skills: Qualities or attributes required by the company that should be
possessed by an executive in order to accomplish various tasks in an organisation are defined as
management skills.
Commercial acumen is hard management skill which includes activities related to
hospitality industry such as menu planning, budgeting and procurement. Premier Inn utilises
these skills for effective utilisation of financial resources.
Hotel operations skills include good personnel grooming and consumer service skills
which are needed fro various hotel operations such as front desk services and effective
management of staff.
Hygiene knowledge is essential for effective management in Hotel industry as it is key
factor which influences consumer satisfaction. Mangers at Premier Inn have knowledge about
hygiene which helps maximise consumer satisfaction and provide best services.
P6 Discussion of future management and leadership skills needed in the service industry and
ways in which they can be attained
Future leadership skills

 Tech-savvy: This leadership skills involve gaining profound knowledge about usage of
technology in the hotel industry. This leadership skills is essential for future leaders in
hotel sector due to continuous technological advancements in service sector with
incorporation of AI,, Virtual argumentation and IoT in hotel sector. Premier Inn can
develop this skill in their leaders by training them with latest technology.
 Flexibility: This skill involves modifying leadership style according to situations and
handling unpredictable situations easily (Chiang and Lin, 2016). Leadership at Premier
Inn can build this skill by participating in various situations and analysing every aspect of
a problem to find effective solutions.
Future management skills Networking skills: This skill includes ability to exchange ideas with people which have
shared interests and marinating long term relationship with mutual benefits. Premier Inn
can build this skill in their managers by enhancing their interpersonal and communication
skills.
 Language skills: Managers need to be proficient in various languages in order to handle
consumers from diverse backgrounds (Bharwani and Talib, 2017). Premier Inn can build
this skill in their managers by training them with language and accent experts.
M3 Evaluation of current and future management and leadership skills essential for the service
industry
The current management and leadership skills for the hospitality industry focus on
solving problems of the consumers , team building and conducting hotel operations effectively.
These skills help the leaders at Premier Inn build talented workforce and lead them towards
organisational success while managers are able to complete daily operations in a timely manner
with the help of hotel operations and commercial acumen. The main demerit of these skills is
that managers and leaders are not prepared to handle unpredictable situations or diverse range of
consumers. The future management skills allow managers to handle diverse range of consumers
while networking with individuals which are beneficial to the company. Future leadership skill
such as flexibility help leaders in facing various obstacles and unpredictable situations easily.

TASK 4
P7 Compare and contrast change management systems and leadership in implementing change
Change management and leadership in implementing change at Premier Inn
Leadership at Premiere Inn hotel focuses on implementing change by developing a
communication strategy and supporting employees during the process of change implementation
(Hayes, 2018). Leadership at the respective firm regularly monitors employee progress at real
time for effective implementation of change. This process helps the company implement change
effectively and ensure that daily operations of the firm are completed at given time. Leadership
at Premier Inn guilds their employee so that their performance is not negatively affected due to
implementation of change. In addition to this making continuous communication with their
employees and informing them about the reason and details related to implementation of change
is another activity conducted by leaders at Premier Inn for effective change management.
Change management and leadership in implementing change at Travelodge
Trvelodge Hotel is UK based private company operating in the hotel industry and is one
of the largest hotel chain in UK. Leadership at Travelodge implements charge by aligning
change management with business goals (Doppelt, 2017). This helps the company ensure that
their business objectives will not be negatively affected by implementation of change. Leaders at
the respective firm focus on implementing change after ensuring that each employee understands
the process. A suitable plan fro change management is constructed by the leaders at the firm
which is followed by creating environment which facilitates implementation of change
effectively.
M4 Effect of change management on management and leadership styles and skills
Positive change management revolves around effective leadership and usage of suitable
leadership styles and skills is essential fro successfully implementation of change. Leadership
not only results in effective implementation of change but also helps the company control
employees and help them adopt to change effectively. Leadership skills such as communication
and flexibility are necessary for effective change management (Lozano, Nummert and
Ceulemans, 2016). Leadership styles are effected by change management as they have to adopt
according to unpredictable situations.

D3 Critical evaluation of development of management and leadership skills in response to
change
Coaching flexibility and personnel resilience are the major leadership skills required for
effective implementation of change. Leaders at Premier Inn coach their subordinates and help
them implement change. Flexibility is helpful inchoate implementation as leaders are required to
handle various unpredictable situations easily. Personnel resilience is a leadership skill which
requires the leader to support colleagues and subordinates along enabling timely completion of
tasks.
CONCLUSION
From the above report it is concluded that the utilisation of effective management and
leadership style help business organisation in attain success in various business endeavours.
Management style and organisational structure of the company is affected by various internal
and external factors. Leadership and management in hospitality sector require hard and soft
which help the establishment earn high profits. In addition to this effective leadership is required
for change management.

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