Leadership and Management for Service Industries

This document explores the role of leadership and management in service industries, specifically focusing on classical management theories, leadership styles, and management structures in a specific service sector organization. It also investigates the internal and external factors that influence management styles and provides solutions for current and future management and leadership skills in the service sector.

LEADERSHIP AND
MANAGEMENT FOR
SERVICE
INDUSTRIES

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................4
P 1 Assess different classical management theories and apply these in a service industry
context....................................................................................................................................4
P 2 Explain the role of the leader and different leadership styles in a service sector industry
context....................................................................................................................................5
P 3 Review the management and leadership styles in a specific service sector organisation 6
LO 2.................................................................................................................................................8
P 4 Investigate the internal and external factors that influence management styles and
structures in a selected service industry organisation.............................................................8
LO 3...............................................................................................................................................10
P 5 Assess current management and leadership ‘hard’ and soft’ skills providing evidence from
specific service sector examples...........................................................................................10
P 6 Discuss future management and leadership skills required by the service sector and how
these can be achieved...........................................................................................................11
LO 4...............................................................................................................................................13
P 7 Compare and contrast different service industry organisations’ change management
systems and leadership in implementing change..................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

INTRODUCTION
Leadership is about getting people to comprehend and believe in the vision you set for the
company and to work with you on achieving your goals, while management is more about
administering and making sure the day-to-day activities are happening as they should. The Ritz-
Carlton Hotel Company, LLC is an American multinational company that operates the luxury
hotel chain known as The Ritz-Carlton. The company has 101 luxury hotels and resorts in 30
countries and territories with 27,650 rooms. This report covers questions such as Assess
different classical management theories and apply these in a service industry context, Explain the
role of the leader and different leadership styles in a service sector industry context, Review the
management and leadership styles in a specific service sector organization, Investigate the
internal and external factors that influence management styles and structures in a selected service
industry organization, Assess current management and leadership ‘hard’ and soft’ skills
providing evidence from specific service sector examples , Discuss future management and
leadership skills required by the service sector and how these can be achieved , Compare and
contrast different service industry organizations, change management systems and leadership in
implementing change. Talent management is an organization's commitment to recruit, hire,
retain, and develop the most talented and superior employees available in the job market.

LO 1
P 1 Assess different classical management theories and apply these in a service industry context
Principles of management by Taylor-
Science, not rule of Thumb- Ritz hotel uses this technique of Taylor so that they can increase
their efficiency. This theory is substituted by the approach of scientific methods. Managers at
hotel Ritz take their own decision on the basis of their personal judgements. They even plan the
arrangement of sheets according to this theory. As this help their team to save time and their
energy. Managers take their decisions on scientific basis with relationships that are related with
cause and effect. Ritz hotel consider this technique as the best as it helps them to select a easy
and less time consuming way of doing the job with the help of scientific calculation not just by
trying what looks best. (Vaca, and et.al., 2017)
Harmony, not Discord-
Workers of the Ritz hotel maintains harmony between them as if there is any issue or conflict
between them it will affect the work and it will not be beneficial for the hotel. They maintain the
harmony between each other by realizing the importance and role of every people in the
organization. The management of the hotel has ensured that they hire employees who don't have
any problem with issues such as attitude so that they don't have to work on changing the attitude
of them and train them to develop their personality. If they don't follow this theory their way to
prosperity will be disturbed a lot. (Shaw, S., 2016)
Mental Revolution-
Ritz hotel believes in this theory by Taylor that is why there is no issue in between the workers
and the management of the hotel. They work with full cooperation and aim for both of them is
set to increase the revenues of the hotel. Workers at the hotel Ritz have a thinking that if they
give their best efforts then it will increase the revenue of the hotel and they in return will give
them a decent package. It is a win win for everyone.
Cooperation, not Individualism-
This theory is just an extension of Harmony, not discord. In hotel Ritz, managers and workers
both are confident, work with cooperation and they follow a sense of protocol which is to never

affect the name of the hotel in the market. This aspect of theory is concerned with replacing the
competition of the internal organization with cooperation. Workers of Ritz hotel never make
unnecessary demands or never talk about going on strike as all their sensible demands are
fulfilled.
Development of every person to their greatest efficiency and prosperity
Hotel Ritz is known for their efficiency and they give all the credits to their workforce. As they
provide them with suitable training so that they can use the methods which are efficient with
relation to scientific approach. Hotel Ritz follows every step through scientific approach. They
are best because of their way of distributing the work. They distribute it on the basis of their
preference, their abilities and their capabilities so that they do the work with interest and
contributes in earning more for the hotel.
Fayol has 14 principles in his theory such as division of work, Authority and responsibility,
Discipline, Unity of Command, Unity of direction, Subordination of individual interest,
Remuneration, The degree of Centralization, Scalar chain, Order, Equity, Stability of tenure,
Initiative, Esprit de Corps. This principles helps in the management of the service sector and that
is why Hotel Ritz prefer to use it in their business model.
P 2 Explain the role of the leader and different leadership styles in a service sector industry
context
Democratic Leadership
Ritz hotel allows their subordinates to take decision on behalf of them sometimes. As Ritz hotel
gives the credit to their people that is because they believe in them and they held them
responsible if they have attempted any measure which is wrong for the hotel. This leadership
theory has many advantages and one of the best one is that system of communication is both was
that is upward and downward which helps in improving the efficiency and saves time. This style
of leadership is not just preferred by the Ritz hotel but many of the companies who operate in
service industry does that. (Hurd,and et.al., 2019)
Transformational Leadership

Hotel Ritz think of using this style as they always bring change in the way as the hotel
consistently change their way of operating and their themes so that customers who visit their
place always feels new to them. The leaders of the hotel motivates their team so that they
increase their efforts and work up to their potential. They make this way successful by setting the
challenges which are difficult to overcome and this way it leads to higher performance by
employees and they meet with the expectations of leaders. The leaders of the hotel gives the
whole credit to their team that is why their team is satisfied with them and committed to them.
(Stoyanov, I., 2018, May)
Team Leadership-
It is a suitable style for Ritz hotel as they are concerned with the future of their team such as
where they will go, how they will cope up with life. As the leaders of the hotel is always trying
to help them and give direction, purpose and inspires people. Leaders of hotel Ritz work with
their team with the minds and hearts of all the people that means they think of everyone and
treats everyone with same respect, never makes bias decision. The hotel sometimes is concerned
with this issue that this thought process may break their whole business model and they will not
succeed. This type of leadership has some disadvantages such as the company will fail because
of the poor leadership skills and when some difficult challenge arise for the company and they
are not able to overcome them.
Facilitative Leadership
This type of leadership depends on outcomes and measurements not on the perspective of skill.
Leaders of Ritz hotel does not use it as it takes high level of skills to learn it. Ritz hotel believes
that if they are effective and their group is effective it will bring efficacy to the whole project.
The benefit of this style of leadership is that if the group of the company functions highly then
leader will be a bit free and it will give him more time to focus on other prospects. This stage
also involves leaders to monitor the dynamics of their surroundings and they intervene between
the group and suggest them so that they can stay on track.
P 3 Review the management and leadership styles in a specific service sector organisation
Management styles

Employee Management-
By effectively managing their team they have make their team and organization strong. Ritz
hotel has maintained their employees in such a way that it increases the chance of employee
retention which every company looks for as it makes the candidate feel that whichever company
has high employee retention then they think the work environment of the company is convenient
and comfortable and employees there don't engage in a conflict with the management of the
company. It also helps them to refuse to other companies when they give them a better offer than
their current offering as they feel this job is more secure. Many employees left their job because
of the leadership styles the company follows but in case of Ritz hotel employees never have to
care about this condition is their work environment is better, safer and richer. (Salehzadeh,and
et.al., 2015)
Authoritative-
In this stage the leaders of the company are authoritative and strict who makes employees force
to pay attention. These type of leaders have a common, vision, mission for the company and they
think they are the only ones who can help the company and their team achieve it. Leaders of Ritz
hotel are not at all like this else they are always there to support and help their team and never to
force or blame them for anything.
Leadership Styles-
Strategic Leadership Styles-
In this style only leader have the power to show the direction to their team and is also the head of
the organization. This strategy is not just limited with the top level of management in the
organization. The reach of this stage is wider so that leaders can influence large no. of people
who are contributing in achieving the goals of the organization. Ritz hotel does not follow or use
this approach but it is kind of similar to how they operate. It helps a group or company to restore
the gap between new opportunity and the need which derives the organization to think practical.
(Pahi, and et.al., 2016)
Laissez Faire leadership-
This type of leadership is beneficial only for employees and riskier for the growth of
organization. As it gives authority to employees so that they can control the task and operate the

task in every manner. Any department or subordinate won't enter or intervene their decisions.
This is the most riskiest and least preferred method among all as it can break the whole chain and
reputation of the business. That is why hotel Ritz only believes their employees and gives credit
to their employees but always take decisions by themselves as they don't want to give the
authority and power to their employees which will put them in a lot bigger risk which may cost
their reputation in the market or the whole business. This method can only be successful in one
way when they have done proper delegation according to the caliber and preferences of their
employees without it there is no chance that any organization will succeed by using this method
if they don't delegate the work properly. Then the employees can take decision according to the
area of expertise or in which they specialize in. (Srivastava, and et.al., 2016)
LO 2
P 4 Investigate the internal and external factors that influence management styles and structures
in a selected service industry organisation
Internal factors that influence management style and structures of Ritz hotel
Internal relationship :- An organization has to maintain relationship with stakeholders. Internal
relationship has strong impact on management style and structures. Managing relations with
employees suggest covering vast area of activity. Employees plays important role in success of
the organization therefore managing relation with employees are necessary. If there is good
relationship between employer and employee than they can share ideas of each other. Good
relationship helps in manage things. If relations are not good within the organization than they
can create conflict. Good internal relationship will lead organization towards success.
(Lockwood, J., 2015)
Multicultural and international workforce :- multicultural workforce means employees from
different background ,gender, age and other unique characteristics. It is hard to manage
multicultural workforce. International workforce has different culture, language etc.
Management has to provide working environment according to the workforce. Managing
multicultural and international workforce is a challenge for management. Management style is
influenced by different background of managers and employees. It is not easy for employees to
cope up with different culture, age, background of people. (Wibowo, U.D.A., 2019) For instance

it will get difficult to engage in a conversation with the customer if he or she is from Spain and
the manager of the hotel is from France.
Employee engagement and commitment :- employee engagement is based on trust, integrity
and communication between an organization and its members. It is an approach that increases
chances of business success, contributing to organizational and individual performance ,
productivity and well being. Employees who are committed to their organization generally feel
connection with their organization. If an employee is effectively committed to Ritz hotel, it
means they want to stay at Ritz hotel. It is easy to manage committed employee in the
organization.
External factors that influence management style and structures of Ritz hotel
Managing diverse talent, stakeholders and customers :- Diverse talent means different kind
of talent. Stakeholders and customers play vital role in success of the organization. Stakeholders
are the people who effects business. Stakeholders include employees, shareholders, government
etc. Management has to focus on customers demand, need and wants. Management has to make
strategies according to the customers need, demand and preferences. Management style and
structure are strongly influenced by customers. As we know that customer is the king of the
market. (Farok and Zainal, 2017.)
Diverse talent helps in create new ideas. Diverse talent will help in achieve success. Diverse
talent will help organization to do things in better way as it includes different type of talent,
skills, knowledge and experience. There are negative and positive impact of diverse talent on
management style in the organization. Negative impact is that will create conflict and dispute.
Positive impact is that diverse talent will provide new ideas that will help in business growth
and success. (Tetteh, G.A., 2018)
Globalization and promoting global capabilities :- Mangers have different management styles
which means they have different ways of communicating and accomplishing their objectives.
Globalization is a ongoing process that is linking people, cities, regions, countries much more
closely together than they ever have been before. Globalization strongly influences management

style and structures. Manager has to make strategies and plan according to environment.
Globalization includes many factors that influence management style and structures like culture,
talent, working conditions, etc.
Ritz Hotel manages the talent by hiring the right and suitable employees
who are talented employees so that they can retain them for long time as the rate of employee
turnover in this industry is high. They have committed to hire them train them, judge their area
of expertise and then allocate them to that department.
LO 3
P 5 Assess current management and leadership ‘hard’ and soft’ skills providing evidence from
specific service sector examples
Soft Skills
Communication-
Managers of Ritz hotel has the ability to adjust their style of how they speak and adjust their tone
according to the audience who visit the hotel. They respond and act to situations in an efficient
way and follow all the instructions which maintains the standard of the hotel. The managers of
the hotel explains and clear the issues which are complex to their team and to their clients. It is
one of the most important aspect among leadership styles. (Talib, F. and Rahman., 2015)
Responsibility-
Managers at Ritz hotel are knowledgeable and they have many skills. They are self aware which
is a seldom in itself. As people who work there know when to stand up when they are
responsible for any mess or any mistakes they have made which has affected the hotel. Managers
there maintains a standard which includes a high and healthy level of humility and train their
employees in a way so that they are more willing to learn and make progress so that both can get
benefit from that. (Shehadeh and et.al., 2016.)
Teamwork-
This aspect is also a part of skills which are soft. Managers of hotel Ritz have train their
employees so that all the people who are the part of the team can contribute more and work
towards a common goal which also gives the intuition to the manager at what stage he or she
needs to be a leader of the hotel when the top level of management is not present. Managers their

listens to their team that if they have any problem regarding work or any other aspect so that it
does not affect the work. (Kim, and et.al., 2019)
Hard Skills-
Mathematics and Numeracy Skills-
This field is a tough field and not many people are expert in this field. Some managers at hotel
Ritz are hired specifically if they have this qualification. Every firms needs a department of
fields such as finance, accounting, IT, building, manufacturing, logistics, medicine, trade,
engineering etc. That is why hotel has made this rule so that various department can have
different managers for their respective fields to run the operations of the hotel smoothly.
(Laureani and Antony, 2018.)
Planning Skills-
Managers of hotel Ritz plan every aspect of the move before taking it as without planning taking
any step is riskier and has many chances that the step taken will not lead to success. Planning is
necessary in every department such as logistics, project management, sales, engineering etc. as
for improving any department full analysis is needed to be done to know where the department is
lacking and where it has scope to improve.
Knowing foreign languages-
Though English is the most common and most used language in the world. A hotel is a place
where tourist who visits can come from any region or country which will bring out the need for
manager to be prepared for them. Manager must know some more of the languages so that they
can cope up with the situation when people who speaks different languages come to stay at the
hotel. (McCaffery, P., 2018)
P 6 Discuss future management and leadership skills required by the service sector and how
these can be achieved
Ritz hotel in order to improve their level of performance can make use of different future
management and leadership skills. These are as follows:
Future Management skills
Planning related to team dynamics: Ritz hotel manager must be engage in making team dynamics
better. They can work to make team better, by providing them better training and learning. This

will help teams in hotel Ritz to increase their productivity and efficiency. Managers can also play
the role of resource investigator in which they can allocate resources effectively that can save
useful resources and make team work better. (Thorpe, R., 2016)
Decision making- It is one of the most important management skills which needs to be possess
by manager in Ritz hotel. In this the decision must be in favour of all the employees who are
engage in working with hospitality industry. Managers must be engage in analysing the needs
and demands of the employees. So they can take accurate decision. (Azizan,and et.al., 2017)
Managing discipline- Managers of hotel Ritz must also possess this skill. They must make sure
that all employees working with them are punctual and complete their work on time. If this skill
exists in them then this can support firm in increasing their productivity and efficiency level.
Discipline will also help Ritz hotel in improving the culture of their organization and making the
work environment better. It will support firm in growing and attracting more new and efficient
employees. To maintain discipline managers must be engage in communicating with workers.
Future Leadership skills
Managing relationship- The leaders of Ritz Hotel in future need to have skill of managing
relationship. In this leaders can make use of open communication so that they can able to build
up better relationship with workers. This quality will help hospitality industry in retaining
employees and reducing the employee turnover. It will support managers of Ritz hotel in creating
employee belongingness. This will help and assist firm in growing. This skill in leaders will also
support them in knowing about the needs and demands of workers. It can also help hotel Ritz in
improving the goodwill of their hotel. (Garg and Dhar, 2016.)
Motivation- It is very important for the leaders of Ritz hotel to motivate employees so that they
can perform better. In this type of leadership skills leaders can provide rewards to workers, it can
be in monetary and non-monetary term. In non-monetary leaders can appraise employees on
social media website. This can help them in increasing the capability and efficiency of workers.
It will help them in growing and making their career objectives. Motivated employees will also
help Ritz hotel in improving their productivity aspects. Hospitality industry can earn more
amount of profit because of it. (Lather,and et.al., 2015.)

LO 4
P 7 Compare and contrast different service industry organisations’ change management systems
and leadership in implementing change
Adkar change management model
adkar model was developed by jeff hiatt in 2003. Adkar model is a goal oriented change
management model that guides individual and organizational change. It is an effective tool for
planning change management activities and facilitate change in the organization. This model
helps in identify why change is difficult,why change is needed and why some changes succeed
while others are unsuccessful. The motive of this model is to help and assist employees through
the change process within the organization. This model helps in accept change as we know that
most of the employees do not want any change in the organization because of many reasons such
as people are not prepared to be successful in the new environment, employees do not aware
benefits of new technology and tools. (Schuckert and et.al., 2018.)
Hotel Ritz uses kotter's change management model which consists of 8 steps such as increase
urgency, forming guiding team, vision development, communicating vision, remove obstacles,
short term wins, consolidating gains and change the structure. Manager of Ritz hotel takes the
help of this model so that they can change the management. It is beneficial for the hotel and
makes it easy for them to implement the changes step by step and in a proper manner. Employees
of Ritz hotel are part of the process in decision making, making the vision and that is
communicate to them, proper guidance is given to employees and obstacles and hurdles are
removed. It emphasizes on involving the employees and their acceptiveness so that they can
implement the change. On the other hand this process is very time consuming process and can
sometimes lead to factors such as dissatisfaction, demotivation in employees whereas Hilton
hotel uses the model of ADKAR change management so that they can implement and bring
change in the organization. First of all managers need to spread the awareness for need to
change, managers have to generate the desire and give them options to change by 2 ways such
as if the employees want to change in a positive way or will they be changed in a forceful
manner, they have to spread the knowledge about the change and how it will affect the business

of the hotel. Managers have to identify the ability to change and then manager makes sure that
staff of hotel continuously uses the change. It is beneficial to for the hotel to use this model as it
will help them to identify the strengths, weakness, opportunities, threats and know the ability to
implement change in the organization. (Slåtten, T. and Mehmetoglu., 2015) Hotel Ritz uses
transformational leadership style so that they can promote and bring creative ideas to innovative
services. This type of leadership is beneficial for managers and helps them to motivate their
team and employees and encourage them to think something new and out of box. Leaders of this
type do market research, identify the trends, do analysis of competitors and take risks by
bringing innovating services and to attract customers. On the other hand Manager of Hilton hotel
uses style of democratic leadership. This style is concerned with leaders to involve employees in
the process of decision making and encourage them to share their ideas and knowledge to make
strategic decisions. It is beneficial for the company so that they can motivate employees in order
to make the employees perform better and provide better quality and better service to customers.
(Ponting, 2019. )
CONCLUSION
From the above studies it has been concluded that managers and leaders of hotel Ritz work
together. Their team work is the strongest in the hotel industry. They train their employees so
that they give their best efforts and work up to their potential. They hire employees who don't
have the problem of ego and attitude and know how to work with treating the same respect for
everyone. Their employees think if they work with their best efforts and contribute in earning
more money for the restaurant then the hotel will think of them and give them a decent package
and services which is a win win for everyone. Managers of the hotel have many soft skills and
hard skills. Hotel Ritz hire some of them specifically on the basis of their skills that if or not they
are capable of doing the work.

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