Classical Management Theories and their Application in Hilton Hotels

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Leadership and Management
for Service Industries

Table of Contents
Introduction......................................................................................................................................2
LO1 (D1).........................................................................................................................................2
P1 Different classical management theories....................................................................................2
P2 role of the leader and different leadership styles........................................................................4
P3 Reviewing the management and leadership styles (M1)............................................................5
LO2 (D2).........................................................................................................................................8
P4 the internal and external factors that influence management styles and structures (M2)...........8
LO3 (D3).......................................................................................................................................11
P5 current management and leadership ‘hard’ and soft’ skills......................................................11
P6 future management and leadership skills required (M3)..........................................................13
LO4 (D4).......................................................................................................................................14
P7 Compare and contrast different service industry organization’s change management systems
and leadership in implementing change:.......................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................18
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Introduction
Leader is an essential part of the business. With the help of leadership the companies can easily
handle their business by managing their staffs. The performances of the staffs also can be
handled with proper leadership management. However, the study is going to reveal the details of
the effectiveness of leadership and management for a service industry.
In terms of doing the study Hilton Hotel has been selected. This is mainly the global brand of full
service hotels as well as resorts. This is the multinational American hospitality company. Thus,
they have their head quarter in United States. They have been running their services since 99
years. So, they have developed their business with proper management.
LO1 (D1)
P1 Different classical management theories
The classical management theory is said to be based on the principle that the labors and
workers possesses the needs of economic and physical only. This theory does not takes into
account, the social needs of the workers and it does not take account of satisfaction of job of the
workers rather demands labor specialization. This theory works according to the industries needs
and does not account the needs of the workers. This theory rather advocates leadership
centralization, maximization of profit and decision-making.
Management in any industry is the most important factor that needs to be strong and
maintained. However, the managers are the main body of the Hilton Hotel that is responsible to
set goals for the group of employees and determines what should be done to meet these goals and
organizes the activities into employees accordingly (Chen et al., 2015, pp. 511). Among the
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management theories, the most important one is the classical management theory. Classical
management systems are used by Hilton Hotel because it has been made to control and predict
the behaviors in an industry. Some unique features of classical management theories are:
(a) Chain of Command: In this unique feature of the classical management theory there are
three level of management-
 Top level management- This level consists of the executives that are the board of
directors which includes deputy directors, general managers, president of
industry, university heads etc. The managers of this level are culpable to develop
long-term goals of strategy keeping in line the Hilton Hotel goals. Their main
objective is directing, planning and organizing.
 Middle Level- This level of managers are responsible for making co coordinating
actions of the supervisors and also formalize and develop plans and strategies in
accordance to the immense level of strategic goals. The managers of Hilton Hotel
that come in this section are administrative manager, service manager, financial
managers and the assistant and deputy managers.
 First –level- This level of management is also called supervision management
since it includes supervisors of the services. In this level plans and various
policies are implemented in Hilton Hotel. Shift assigners, supervisor are included
in this management level of Hilton Hotel (Nallusamy, 2016, pp. 184-190).
(b) Labor Division- It is organized as the second main feature of the classical management
theories. In this level, complex and complicated work is divided into simple tasks that the
labors of Hilton Hotel can easily do. The staffs are divided according to their skills and
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the complicated tasks are separated and spread to short and simple tasks and then divided
between employees so that they can perform their respective job accurately.
(c) One-sided Top- Down influence- This level shows that there is only one communication
route in classical management theories and so decisions are made at top level and then
sent to the low levels.
(d) Authoritarian leadership styles: In this level, the managements plan the decision of the
organization and then direct the entire system of management inside Hilton Hotel. This
type of style was taken from the authority of church in older days since it possessed as a
dominant style in those days (Sheket al., 2015, pp.205-215).
P2 role of the leader and different leadership styles
As per Nallusamy, (2016, pp. 184-190), the leaders are essential part of the business.
They effectively handle the activities of the staffs and help them to manage their performance.
They also provide some feedbacks to the staffs which help them to develop their performances
positively. Like this the hotel can get some benefits in their operations. On the other hand,
leadership can be said to be a skill or an area of research of an organization in order to lead and
guide the employees of the organization. Leadership styles can be taken as an approach or
manner of a leader that provides direction to the teams and motivate people and help in
implementing plans. Leadership is a quality or skill that is present in a leader who can motivate
and inspire their teams in order to achieve a better performance that can in turn become
beneficial for the industry (Aquilaniet al., 2017, pp.580-600). Thus, leaders of Hilton Hotel also
has some leadership styles which are analyzed below
 Democratic Leadership- In this type of style the leaders involves the sub-
ordinates in its decision making. This style is mainly centered to the contributions
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of the sub-ordinates. Like this the staffs of Hilton Hotel easily take a part in the
decision making process which properly motivate them. Along with this the
leaders also get several opinions which help them to take right decisions.
 Team Leadership- It creates a strong sense of direction and purpose for making
good advances towards the future of the organization. This style involves the
working up of employees with all their minds and hearts and it might not always
include the believing cooperative relationships. Thus, the employees of Hilton
Hotel easily get satisfied with this style and they can work positively in the good
work environment.
 Cross-Cultural Leadership- Along with this sometimes the uses this leadership
style. This type of leadership is performed in those societies where there are
various cultures. These leaders are recognized as those front runners that can work
in those markets that are contemporary globalized. As stated by Manzet al., (2015,
pp.607-612), this is how the staffs of Hilton Hotel can easily manage their cross
cultural issues with each other and they can develop their performance in a positive
way.
P3 Reviewing the management and leadership styles (M1)
In Hilton Hotel the managers are the main part of the organizational structure. Thus, they
develop proper management style to manage the activities of the business. On the other hand, the
hotel has cross cultural activities as they need to deal with different kinds of people. So, the
leaders use proper leadership styles to handle the situation.
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Hilton Hotel is one of the developing service hotels in the world since there has been an
increased level of attraction of people towards travelling, globalization as well as modernization.
With the increase of these industries various new formulated, organized and well managed
leadership style sand management style have been adopted by theses industries which enhances
their business to a wide range (Guest, 2017, pp.22-38). There are many management styles,
leadership styles are being followed by theses industries since management and leadership are
the two main bodies of a well successful organization, and hence theses industries are too in a
mode of adopting new and skilled management and leadership styles.
Management styles-
Management style can be said to be particular way the managers of Hilton Hotel try to
accomplish their objectives that are made for the benefit of the organization. This style can be
said as the pattern the managers make a take their decisions, make plans to be followed by the
employees of the Hilton Hotel, and try to exercise and organize with the authority of the
company. This style varies according to the level of hotel and the managers. There are various
types of management styles which are used by Hilton Hotel
(a) Authoritarian style- In this style the manager of Hilton Hotel always intervenes between
the employees and the employees have original performing actions. In this the
employees are given directions of work by their respective supervisors and the employees
perform accordingly. This style is a matter of correct understanding of the job by the
employee rather than cooperation. Thus, it can provide some benefits to the hotel (Ross,
2017, pp. 1).
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(b) Cooperative style- This style is also defined as the democratic, participative and
nondirective since it signifies the discussion of the employees among themselves,
participation of the employees and the control that is made from someone other becomes
a part of their control. In this case the managers of Hilton Hotel cooperate with the staffs
which make them motivated. Thus, the performance of the hotel can be developed in a
proper way. Thus, it is an effective approach for the success of the hotel.
Leadership styles-
As per early discussion the leaders of Hilton Hotel use three different kinds of leadership
styles as per their needs (Anning-Dorson, 2018, pp.580-600). Those are given below
 Democratic Leadership- With this leadership style staffs of Hilton Hotel easily
take a part in the decision making process which properly motivate them. So, it is
beneficial for the hotel.
 Team Leadership- This style involves the working up of employees with all their
minds and hearts and it might not always include the believing cooperative
relationships. Thus, the employees of Hilton Hotel easily get satisfied with this
style and they can work positively in the good work environment.
 Cross-Cultural Leadership- With this leadership styles the different types of
people work in the same workplace without any kinds of issues. This can increase
the efficiency of the hotel. So, this is another factor of the development of Hilton
Hotel.
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LO2 (D2)
P4 the internal and external factors that influence management styles and
structures (M2)
The external factors that affect an organization are political, social, economical and
technological. Internal factors that affect the organization’s management style include the
relationship of the organization to the external factors (Kao et al., 2015, pp.448-466). The
internal and external factors of Hilton Hotel have been analyzed below
SWOT analysis
Strength
 Effective hospitality services
 Strong leadership
 Proper customer retention schemes
Weakness
 Overdependence on the US market
 High levels of debts
 Little global market share, despite the large portfolio of brands
 Lack of flexibility due to its large size
 Cross cultural issues
Opportunity
 Business expansion in the international market
 Focusing of the research development
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 Developing proper budget for the business
Threats
 Threat of terrorism and political instability
 Adverse changes in macroeconomic climate
 Ethics-related issues in Hilton hotels
 Loss of key talent and key personnel
External factors:
Political Government provide proper supports to the Hilton
Hotel. There are some regulations related to tax
which need to be maintained by Hilton Hotel.
Economical Economic factors mainly depend on the employment
of that area where Hilton Hotel provides their
services. When the customers have the ability to take
the rooms of Hilton then they can get some benefits.
Social Hilton Hotel should consider the social environment
of the area where it is to be stabled. The needs and
demands of the customers can be depended on the
social factor thus it can provide some effects on the
business of Hilton Hotel.
Technological Every travel and tourism industry must utilize the
modern technology to benefit it and meet the
external factors positively.
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Environmental Environmental balance is very essential to be
followed by Hilton Hotel to keep the atmosphere
clean. Therefore, Hilton Hotel must also follow
environmental policy.
Legal Hilton Hotel should make their business legal and
their growth should also be done legally. Thus, they
must maintain the employment laws and consumer
laws as well (Mesuet al. 2015, pp.970-990).
So, based on these factors the hotel develops effective management style and structure which can
help them to get proper benefits.
D2
(a) Authoritarian style- In this style the manager of Hilton Hotel always intervenes between
the employees and the employees have original performing actions. In this case the
employees can properly manage their reputation and services but the cross cultural issues
cannot be managed by the Hotel thus they need to make changes in their management
style (Ross, 2017, pp. 1).
(b) Cooperative style- This style is also defined as the democratic, participative and
nondirective since it signifies the discussion of the employees among themselves,
participation of the employees and the control that is made from someone other becomes
a part of their control. This can help the managers to manage cultural issues with proper
collaboration but they may not develop their services properly and maintain their
strengths also.
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LO3 (D3)
P5 current management and leadership ‘hard’ and soft’ skills
Every managers and leaders of travel and tourism industry must possess skill that hard
and soft in nature since these skills are the features in managers and leaders that enhance the
growth of an organization. The management and leadership skills that a travel and tourism
company should possess are:
Management skills:
The management skills can be said as the practice of developing, deploying and
understanding of people. There are some hard and soft skills that must be possessed by the
manager of Hilton Hotel since they are the most specific skills for a manager.
Hard skills-
Every manager should have some basic competencies of business which means that the
manager should be smart enough to understand the difference amidst the profits and the revenues
and must know the concept and exact utilization method of budgeting since these factors are the
most for growth of Hilton Hotel.
 The managers should also possess the skill and proficiency related to the analysis and
research since through analysis and research manager can take steps related to the
industries benefit. Since through research and analysis the manager of Hilton Hotel can
understand the requirements of the consumers and the position in which they stands at
and can takes major steps for improving the services (Productplan.com, 2019, pp.1-2).
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