HND Unit 5: Leadership and Management in Service Industry Report

This report provides a comprehensive analysis of leadership and management principles within the service industry, with a specific focus on CT Business Travel. It begins by introducing the significance of leadership and management in enhancing productivity and efficiency, particularly within the service sector. The report then delves into classical management theories, including scientific, bureaucratic, and administrative management, outlining their strengths and weaknesses. It explores the roles of leaders, leadership styles such as democratic, autocratic, and laissez-faire, and management styles including persuasive, participative, and result-based management. A SWOT and PEST analysis are also included. The report further examines the importance of soft and hard skills, future skills, and concludes with a comparison between CT Business Travel and Costsaver, providing a critical evaluation to enhance efficiency and growth within the organization.

MANAGEMENT
AND LEADERSHIP
IN SERVICE
INDUSTRY
1

Table of Content
INTRODUCTION...........................................................................................................................3
Classical management theories....................................................................................................3
Role of Leaders and different Leadership Styles.........................................................................5
Leadership Styles.........................................................................................................................6
Management Styles......................................................................................................................7
Swot analysis ..............................................................................................................................8
PEST Analysis...........................................................................................................................10
Hard and Soft Skills ..................................................................................................................11
Future Skills in Service Industry................................................................................................12
Difference between CT Business Travel and Costsaver............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
2

INTRODUCTION
Leading and managing is the ability to increase the productivity of the services industry.
Leadership and management is a very systematic process which helps the industry to maintain
the activities by formulating informative decisions which will help the business organisation in
the service industry to grow and increase the efficiency rapidly. As the employees are very
essential part of the service industry the need of leading and managing the employees will also
help the employees to increase the efficiency and improve the quality of the output of the
organisation. Leadership and management is an art of making employees do work and
influencing them to do work so that the organisation can achieve the objectives effectively. In
this report there is brief information about CT Business Travel Company which provides the
travel management to its clients and it is based in London. The company was established in 1988
and have increased rapidly with its effective strategies and policies which also increased its
business from its establishment. The company is the world’s leader in managing the travel for the
clients and they also provide the excellent services which will increase the satisfaction level of
the customers and improves the brand image of the company as well. The company also have
invested in the technology to maintain the service quality and also increase the market share for
the customers and also provide the ease in the travel management. In this report there is a critical
evaluation which will help the company to increase the efficiency and increase the chances of
growth.
LO 1
Classical management theories
The traditional management theories are the basic management which helped the
organisation to increase productivity with the help of managing the employees to work and
achieve the objectives effectively. The classical management only focuses on the economical
growth of the organisation and does not analysed the important to increase the efficiency of the
employees to improve the performance of the organisation to achieve the objectives. The social
and physical needs are not considered in the classical management. (Altman, E.J. and Tushman,
M.L., 2017)
Scientific management theory
In this theory the Winslow Taylor proposed that motivation of the employees will help
the to increase the efficiency. The theory also focused on the performance of the employees and
3

maintaining their performance to increase their performance by adopting the effective strategies.
(Frawley, S and et.al., 2019) .The classical management also helped the organisation to
understand the behavioural pattern of the employee to make the effective decision to motivate
the employees so that they can achieve the objectives efficiently and effectively by increased rate
of output.
Bureaucratic Management Theory
This theory was designed by Max Webber who was a sociologist as he proposed that the
effective management will only be done when the organisation have the right chain of command
distributed to the organisation. This helped the organisation to improve the efficiency by
delegating the authorities to the subordinated so that they can improve and formulate new
strategies and increase the efficiency of the organisation. This management theory also helped
the organisation to improve the communication channel by appointed the right person to achieve
the objectives. (Epitropaki, O and et.al., 2017)
Administrative management theory
This theory change the way of managing the organisation as this theory is also called as
the modern management theory and was proposed by Henry Fayol who is also called as the
father of modern management. This said that the management is the process through which they
can ask the group of individual to do their work.
Strengths of classical management
1. Hierarchical Structure- in this structure of the organisation the management structure is
framed according to the level of power and authority of the employees which will help
the organisation to provide the better vision and increase the ability of the lower level to
develop the organisation’s culture and beliefs (Kretovics, M.A. and Eckert, E., 2019.
2. Division of Labour- the classical management theory also have a benefit that the
workload in the management theory is distributed equally by assigning the small tasks in
the teams or groups to achieve the maximum efficiency and more better work of the
employees this also help the employees to learn and increase skills and knowledge by
interacting with many other employees. (Davenport, M.S. and Dunnick, N.R., 2018)
3. Monetary incentives- this theory also focuses on the motivation of the employees by
giving them monetary benefits which will also help the employees to fulfil their personal
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needs. With the fulfilled personal needs the employees will be more effective in doing the
work efficiency with the more energy they will help the organisation to achieve the
objectives with more productive pace and improved the organisation orientation.
4. Autocratic leadership- autocratic leadership is effective in the classical management as in
this management the leaders have the central authority to make all the decisions and
control the organisation according to their will. This style may be effective only when the
organisation has to go through a effective change and the employees in the organisation
are not willing to accept the change and decrease the efficiency of the
organisation(Northouse, P.G. and Lee, M., 2018).
Role of Leaders and different Leadership Styles
Leaders are the individual which help the organisation o get to the direction by influencing
the employees to increase the efficiency and gain the objectives. The CT Business Travel also
analysed the importance of appointing an efficiency leaders to increase the efficiency of the
employees and also grow the company more effectively. As the company aims to increase the
customers satisfaction and this will only be done when the employees are effective enough with
the proper skills and knowledge to increase the customers satisfaction. The leaders are the
individuals which have the knowledge and the skills which increase the capabilities and flowers
due to their achievements in their fields. (Lieberman, A., Campbell, C. and Yashkina, A., 2016)
Role of leaders
1. The leaders of CT business travels are responsible to improve the quality of services by
providing the enough skills and knowledge to the employees of their company so that the
customers are optimally satisfied to achieve the objectives of the company and increase
the potential of the company.
2. They are also responsible to increase motivation of the employees so that they van
increase the efficiency in managing the travel operation of the clients with maximum
services quality and proper feedback of the services.
3. The CT business Travel also need to hire the leaders which are have the abilities to guide
the employees and also give them the right knowledge and experience to increase the
efficiency of doing the work more effectively and in less time.
5

4. The services industry also need to have t effective leaders which are responsible to
increase the values and ethics which will also help tot develop the employees tom make
them true and fair to increase the retention to the company.
5. The leaders of the company are responsible to provide the propose understanding of the
vision of the company and help them to connect it with the culture of the employees.
6. They also help the employees to gain the vision to achieve the work faster and improve
the quality of work by maintaining the better travel management system and scheduling
of the customer travel ledger to meet the expectation of the customer and provide them
with better experiences.
7. CT Business travel also has the effective leaders who is responsible to create an effective
teams in the organisation to delegate the work and divide the workloads of the employees
to increase the efficiency. (Alban-Metcalfe, J. and Alimo-Metcalfe, B., 2016)
Leadership Styles
CT business travels also have to analyses the effective leadership styles in order to increase
the efficiency of the company and maintain the quality of services for the customers. The
leadership styles also help the company to increase the internal productivity and healthy
environment of the employees so that they can increase the objectives and push themselves
towards their limits and increase their potential. Leadership is the fuel which helps the
employees to charge them to attain the efficiency to achieve the objectives of the company.
(Gibson, P. and Parkman, R., 2018)
1. Democratic leadership- Democratic leadership is commonly effective in the organization
as in this leadership the leaders are having the skills and rights to share the decisions. In
this leadership style the leaders are also responsible to increase thre efficiency of thr
employees and motivate them to include ion the decision making process for the
organization. This is also very effective strategies as it helps to take the input from the
employees from the lower level and create the effective strategies and policies buy
thinking all the suggestions of the company to establish a better working culture and
make the company more successful.
2. Autocratic Leadership- Autocratic leadership is also very important for the company to
maintain the leadership and regain the control and handle the company to increase the
6

travel experience and making the efficient decisions with involving any person of the
company. In this style of leadership the employees are very discouraged as they are not
involved in the decision making and they also feel left out. This leadership styles id rarely
effective and make the least impact on the organizational structure.
3. Laissez- Faire- In this leadership styles the leaders allow the employees to take te
decisions and make the effective decision. The leaders delegate the responsibility to the
employees to analyze and determine the best strategy for the company to increase the
efficiency so that they can make the maximum output with the limited resources and gain
the satisfaction level of the customers. In this leadership style the employees are highly
effective.
Management Styles
In service industry the main focus of their organisation is the increase the customers
satisfaction so that they can make the customer loyal and increase the sales of the company to
grow rapidly in the market. The management styles will also help the company to achieve the
competitive advantage with the increase in the internal factors it will improve the quality and
uniqueness of the company. The management styles also have the effective approach to increase
the productivity of the company by making the employees do their work so that they are also
motivated and they increase the level of satisfaction in case of CT Business Travel company. The
company also focuses on the excellent services to it customers to increase the experience of their
travels. The company help to manage the travel of the customer’s according to their preferences
and tastes of the customers in the willing to pay prices. (Pickuth, D., 2018)
1. Persuasive management- in this style of management the managers are present in all level
of management and all the decisions of the company. The management in this style are
responsible to make the employees and other managers learn about the decisions they are
going to take and they also make the effective teams to divide thro les and workload to
increase the efficiency of the workforce.
2. Participative Management- the meetings and questionnaires are being done in the
company to understand the issues and problems which are faced by the company, and the
employees are able to help the managers by analyzing those problems and making the
policies which will make the company performance rise to maintain the position in the
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market and also achieve the competitive advantage to increase the profit margins of the
company.
3. Result Based Management- CT Business Travel company also have to adopt this manage
styles as it focuses on the results. The managers in the style leave the authority f decision
making to the employees sop that they can improve their efficiency and the manager will
analyze the efficiency of all the employees , if the efficiency of the employees are
improved with the techniques used by the employees the managers will formulate that
techniques and methods as the management styles to increase the productivity of the
company. (Collings, D.G., McDonnell, A. and McCarter, A., 2015)
4. Example setting management- this is the traditional ,management styles and in this style
the managers have to set the example to the employees in order to increase the
organisational culture and ethics of the employees. This management also help the
employees to improve the skills and knowledge as the managers have to set some
standards which have to fulfilled in the company in order to prove the efficiency in the
company and make a powerful presence.
LO 2
Swot analysis
Due to the increase in the demand of the leisure and globalization the demand for travel
within and across the country have also increased. This has helped CT Business travels as they
have to analyze all the internal and external factors which can increase the efficiency of tee
company. (Wensveen, J., 2018) The company also have to increase the productivity of the
employees and operations. As the company provides the leisure and business travels
management services to its customers in order to maintain the effective quality of the services.
This analysis will help to determine the internal as well as external factors. Like opportunity and
threats are the external factors of the business and they create huge impact on the sales of the
company.
Strengths
the services industry is comprising of many people which are very essential as they are the
driving force to to improve the efficiency of the company.
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 The major positive aspect of the company is that they have differentiated platform tom
provide their services to the customers of all age groups.
 The company also have strong tie ups with the different rental agencies which will help
the customers to increase the ease of the travel and also increase the experience.
 The segmentation strategies of the company are very unique and also have focused on
the technology to attract as many customers as possible to maintain the overall sales of
the company. (Pawlecki, J.B and et.al., 2018) The brands name of the company helps the company to achieve the competitive edge in
the market and formulate the effective customer loyalty programs which can also help the
company to increase the sales and increase the profit margins of the company.
Weaknesses
 The company has to make the dependant decision with the help of the partnered forms
which help to provide all the goods and services.
 The company also faces the customer satisfaction as the company had degraded the
quality of services due to decrease in the efficiency of the company.
 The company also have a huge network of online services but the it decreased the
network to the areas share the network connectivity is also normal as they are dependent
to the company. The internal structure and the company’s culture is aggressive but it is not suited in the
areas where there are less competitors it will decrease the efficiency and increase the cost
of the company to improve your day. (Northouse, P.G., 2019)
Opportunities
 The companies have the opportunity to expand its business within the country so that
they can also increase the efficiency of the company. The company also thinking that
there should be more technological advancement which can help the company to grow
the customer base and increase the profit margins of the company. The CT businesses Travel also have the opportunity to expand their business globally by
launching their websites in different countries to provide the services to the customers.
Threats
 CT business travel also have the threat of new entries in the market which may decrease
the market shares by attracting their customers.
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 The company has the threat of lack of resources which will be required by the company
to grow in the future and the capital is also one of the major aspect of the company.
PEST Analysis
CT Business Travel also have to evaluate the external environment which van impact the
operation of the company but cannot be controlled. There are many factors which the company
have to consider in order to make the efficient decision making of the company and achieve the
group goals of the company. The pest analysis is very essential analysis which help the company
to understand the market trends and current market position of the company which will help to
make the efficient market strategies to increase the competitive edge.
Political Factors
The company have to analyse that the tourists or the customers of the new market have
the stable political environment or not. The company will also have to check the new market
have policies and laws which can impact the operation of the business of the company. the laws
and rules of the government will help the company to determine the interference of the
government in the operations. This will also help the company to make the effective strategic
planning to expand the company and increase the sales. (Vijayakumar, P.B and et.al., 2018)
Economical factors
The company have to analyse the economic activity in order to analyse the efficiency of
the nation so that they can make the effective strategies which will also help them to establish the
company in the new market. Inflation rates, unemployment rates , national income, gross
domestic product of the country , foreign exchange rates this also have to be analyzed in the
economical factors in which they are very efficient to make the policies to increase growth of the
company by establishing them in the new market and assessing the income and of the individual
is also very important.
Social Factors
In this factor CT business travel have to analyse that the behaviour of the customers like
the preferences, tastes, values, cultures, ethics of the customers which will help the company to
make the effective marketing strategies to increase the customers and attract more customers to
the company for the travel management process. the company also have the analyse that the
social factors in the country are differentiated with the change in the geographical locations and
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hence that company have the analyse all the factors separately in all the markets where the
company have to invest to increase the market and expand the business more. (Maher, A. and
Abdel-Aal, E., 2016)
Technological Factors
The technological factors is very essential factor in the service industry as it is customer
oriented and to increase the satisfaction of the customers the company need to increase the
technological innovation in order to attract the customers as the technology is very obsolete in
nature and decreases its efficiency very quickly. So the company have to determine the factors
which will develop the need to change the technology and achieve the competitive advantage in
the market to increase the profit margins and sales of the company.
LO 3
Hard and Soft Skills
Hard skills are those skills which have a total control over the employees and it is not
giving the employees any say in the decisions making of the organization. There are a lot of
ideas and innovations which can come out when the entire CT business Travel works as one and
if that is missing then the organization will not be able to work so well. There is a high turn over
of employees in CT business Travel hard skills because the employees do not feel satisfied with
the kind of work they are doing in the organization, and they are not getting paid for the extra
efforts they are putting in the company. It is very important to appreciate the employees for the
kind of work they are putting in for the organization to work. (Kim, J. and McLean, G.N., 2015).
CT Business Travel is using hard skill training to employees which helps to increase the
efficiency of the employees and increasing the potential to achieve objectives of the company
effectively. This skill helped business to develop effective marketing plan and financial budget
to increase the financial position in the market and compete effectively.
CT business travel is using soft skills in the organization because there are a lot of
employees who have had experience in the past which can help the company grow by sharing
their ideas which is very important. Every individual has a different take on things and if they are
shared and put together then it will really help the organization to grow. The growth of CT
business travel is what matters in today's world because the market is getting very competitive
and to get a advantage over that competition it is very important to get in New ideas and be
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unique in the market. (Monaghan, P., 2017) The customers appreciate new ideas and methods
which make them feel special and wanted and that is what CT business travel is trying to provide
its customers. The company is not having a high turn over of the employees because there
conflicts are getting solved time to time, and they are getting all the facilities which the company
can provide them with.
Future Skills in Service Industry
The service industry is focused on the customers' satisfaction so the CT business Travel also
need to have both the skills in order to increase the stability in the market. The skills also shows
the professionalism of the CT business Travel and credibility of the company in the market. The
major key factor which is very important in the making of the efficient employees is the training
and development of them so that they can increase their company’s productivity. CT business
travel also need to improve their efficiency and understand all the future skills in the services
industry which can help business to increase its potential in market and achieve core competency
and in crease profitability effectively.
1. Time management skills are required in the service industry as they have to maintain the
travel management of the customers which need to be done in the given deadline.
2. Patience is also very important as the customers are the big and the employees have to
listen to the customers even if they are wrong. This shows that the employees are well
self controlled with their anger and also mature in their field.
3. The communication level of the employees must be very clear that ever message can be
conveyed to the customers with efficiency and which will also increase the flow of
communication in the company.
4. The employee also should have the proper knowledge about all the information about the
CT business Travel from its history to its vision and also all the products and services
which the company is offering to its customers. (Varty, C.T., O'Neill, T.A. and Hambley,
L.A., 2017)
LO 4
Difference between CT Business Travel and Costsaver
CT Business Travel Costsaver
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Leadership style The company is following the
latest leadership styles with the
most innovative techniques to
increase the efficiency of the
company.
The Autocratic and lassies affair
leadership styles are followed in
this company as it helped the
company to increase the
efficiency of the employees
according to its situation, and
they have to analyse the factors
which will help the leaders to
increase the efficiency of the
company.
Organisational
Structure
The company adopted the
Hierarchical structure which
helps the company to increase the
efficiency of communication and
delegation of power to the lower
level. The company adopted the
two factor theory of motivation
which is also very important in
order to analyse the positive and
negative impacts on the
company’s growth.
The company follows
hierarchical structure and
adopted Maslow’s need theory to
analyse the need of the
employees’ that the company can
motivate them and increase the
efficiency of the company.
Change management
model
Leaders of the company have
adopted kotter's 8 stage change
model as it helps company to
increase its productivity and
improve the organization
structure and increase efficiency
of employees. CT business travel
also adopted the latest trends of
technology to increase market
share effectively. This model also
Costsaver company adopted Kurt
Lewin change model of
leadership as it helps to reduce
the cost of the company and also
increase the potential of
employees to do their task
effectively. This change
leadership model also helped
company to promote company's
brand image in market by
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helps the company to become
more effective in tracking all the
booked travel tours of customers
to provide effective services and
increase customer satisfaction
effectively.
improving their service quality
and implementing management
information system.
CONCLUSION
From the above report we have concluded that there is a need of a manager and leader in an
organization because they both play a very important role in the organization to make the
organization work efficiently and effectively. All the companies are in the market for a long turn
so they must have the right decision makers in the company and the right leaders to guide the
employees in the organization. There has to be a coordination between the two which is the
manager and the leaders so that the conflict does not occur and the organization will be able to
run in one direction which is very important for the company. There are objectives and aims
which all the organizations have and it is very important that the companies achieve those and it
is only possible when all the team of the company is being able to work together in a healthy
environment.
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