Leadership and Management Styles in the Service Sector: A Report

This report provides an in-depth analysis of leadership and management principles within the service industry, using Compass Group Plc as a primary case study. It begins by exploring classical management theories, including scientific, bureaucratic, and administrative approaches, and their relevance to organizational performance. The report then delves into the roles of leaders and various leadership styles, such as autocratic and democratic, and their impact on employee motivation and organizational effectiveness. It also examines different management styles, including participative and consultative approaches, and how internal and external factors influence management decisions. Furthermore, the report assesses current and future leadership and management skills, highlighting the importance of adaptability and strategic thinking. Finally, it compares and contrasts management systems and leadership styles across different service industries, offering insights into best practices and the challenges of implementing change. The report aims to provide a comprehensive understanding of leadership and management in the context of a global service provider.

Leadership and Management
for Service Industries

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1. Classical Management Theories ......................................................................................1
P2. Roles of Leader and leadership styles..............................................................................4
P3.Management and leadership styles ..................................................................................5
LO2..................................................................................................................................................6
P4. Internal and external factors influencing management style............................................6
LO3..................................................................................................................................................8
P5. Current Hard and Soft skills of leadership and management ..........................................8
P6. Future management and leadership skills ......................................................................9
LO4................................................................................................................................................10
P7.Comparison and contrast between different service industries detail as follows- .........10
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Leadership aim at getting people believe and comprehend the vision or mission set for the
organisation. Leadership includes providing motivation and guidance to employees to improve
their performance and productivity (Hassi, 2019). Management is mainly concerned with
administering and coordinating day to day activities which are going on in an organisation.
Management aim at ensuring uninterrupted and free flow of operation of an organisation. A
proper leadership and management is essential for success of any organisation as they are also
responsible for managing talent and creativity in an organisation which is necessary to attain
desired goals and objective.
For this assignment the chosen organisation is Compass group Plc which a British
multinational contract food service company (Compass group, 2019). Its headquarter is in
Surrey, England, UK and it is the largest contract food service company of the world operating in
more than 50 countries . This assignment includes review of leadership style and management
theories and also explore the factors that effect and influence different management styles. This
report also assesses current and future management and leadership skill. At last a comparison
between change in management system and leadership style on implementing change is also
included.
LO1
P1. Classical Management Theories
Use of management theories is made to provide proper guidance and assistance to
employees which facilitates effective use of manpower and other resources for achievement of
organisational goal (Kim and Toya, 2019). There are many types of management theories out of
which classical management theory is more focused towards maximization of production level. It
is one of the oldest management theory having an aim of creation of standards through providing
monetary and other rewards to employees for improving their performance. The different types
of classical theory which can be used by Compass group for improving its production and
performance level are as follows:
Scientific management theory- This theory is propounded or developed by F.W Taylor
who was a well known management scientists. Use of this theory is made to minimize the
wastage of resources through reducing operation or process time. This theory emphasis on
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cooperation and coordination of all activities and employees to enhance their productivity and
performance. This theory is having four fundamental principles which should be considered by
Compass group before its application. The principles of scientific theory of management are as
follows:
 It emphasis on use of rule of thumb instead of trial and error method which makes this
theory more cost effective through identifying an effective way of performing a specific
task.
 Job is divided or allocated to worker on the basis of their capabilities and skill level and
proper motivation and training is also provided to employees so that maximum efficiency
can be achieved (Luu, 2019).
 A proper a monitor and check on perforce of employees are also kept to provide
instructions and proper guidance which ensure use of most efficient way of working.
 Work or tasks are properly allocated and divided among workers and mangers so that
manger can spend their maximum time for planning and other crucial works.
Thus, this theory of classical management provides a better way for Compass group to
increase their efficiency and productivity. It assigns work to employees on the basis of their
skills and competences thus, improve their motivation level and productivity.
Bureaucratic Management Theory- This theory is known as Weber theory of
bureaucracy and is considered one of the most apparent classical theory which provide details
about elementary principal and logics of bureaucracy. This theory was developed by Weber with
a belief that it facilitates an influence in personnel and makes them abide to fulfil the rules and
regulations formed by management (Birasnav and Bienstock, 2019). The main principles which
are included in this theory and which should also fulfilled by Compass group for better results
and efficiency are explained below:
 Division of labour- According to this principal it can be said that capability and potential
of all individuals and employees are not same thus, the duties and responsibility should
be divided by compass group on the basis of skills and capabilities of individual. This
will provide the maximum satisfaction and motivation to employees which will improve
their performance and also fosters the healthy relationship at workplace (Hemmert,
2019).
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 Chain of command- This principle reflects the hierarchy of command within an
organisation according to which information and commands flows from higher to lower
level of staff. Compass group should ensure that all the employees must get an
opportunity to develop and grow and all relevant information and command should be
properly communicate with whole workforce.
 Rules and requirement- These are the core elements or factors on which the
performance and progress of an enterprise depends. Compass group must formulate such
rules and policies which ensures welfare and benefit of both workforce and organisations
in a long run. This principal all facilitates uniformity and homogeneity in operations of a
hotel which is operating through different branches at global or international level. Career orientation- It is also a crucial principal of bureaucracy theory which aim at
placing or appointing right individual at right place or job. This principal boosts the
moral of employee and makes them more committed and loyal with their job thus, this
principal is helpful for Compass group in reducing absenteeism from work and also
maintain and retain its best employees for a longer time (Luu and Djurkovic, 2019).
Administrative Management Theory- This classical theory of management is provided
by Henri Fayol and provides a rational way to design and develop an organisation in an effective
way. For improving performance and productivity of employees, 14 principals are provided by
this theory which can be implemented by Compass group and are described below:
 Division of Work- To increase productivity work should be divided n the basis of
specialization and capabilities of employees.
 Authority and Responsibility- These are two sides of same coin thus, a proper
balance between authority and responsibility is necessary to ensure timely completion
of work.
 Discipline- It is necessary to bring obedience and punctuality in an organization to
achieve the mission and vision (Jain, Duggal and Ansari, 2019).
 Unity of Command- An employee should receive the orders from manger and should
be answerable to that manger only. This will reduce the possibility of conflicts.
 Unity of Direction- All efforts of employees must in one direction i.e. towards a
common goal or objective.
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 Subordination of Individual Interest- For increasing efficiency and level of
performance of organization it is necessary that personal interest should be
subordinate to the interest of firm.
 Remuneration- Adequate amount of remuneration and incentives should be provided
to employees to keep tem motivated.
 Centralization- It implies or indicate the concentration of decision making power
with top authority which increase the efficiency of decision.
 Scalar Chain- It represent the sequence or flow of command from top to bottom.
 Order- All the things and resources should be present at right place so that
employees can function properly without any delay (Luu, 2019).
 Equity- As per this principal all employees must be treated equally and kindly at
workplace. This will boost morale of employees.
 Stability of Tenure of Personnel- According to these principle employees must have
fixed or specific tenure.
 Initiative- Employees should allow taking initiative and expressing their ideas
(Athota and Malik, 2019).
 Esprit de Corps- Team spirit and bonding is necessary for achievement of goals and
targets.
P2. Roles of Leader and leadership styles
Leader is an individual who is responsible for providing guidance and supervision to a
group of people or employees to motivate them for achieving goals and objectives of an
organisations. Leader facilitates easy and uninterrupted flow of operations in Compass group.
The main role of larders in Compass group which makes this hospitality organisation successful
are described below:
Strategist- It is one of the most important role of leader of Compass group as they are
responsible for making and developing an appropriate strategy and plan for achievement of
desired goals. These plans and strategies provide a framework to employees according to which
all work is conducted in Compass group (Araslı and Arıcı, 2019).
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Motivator- The other role played by larders of Compass group is providing motivation
and guidance to manpower and employees which helps in improving performance and
productivity of employees that facilitates timely achievement of targets.
Communicator- To develop and provide proper channels of communication in an
organisation is also a responsibility of leader. In Compass group effective communication
channels are developed by Leaders which ensure proper transfer and exchange of opinion and
view in organisation (Mustafa, 2019). This provide better intersection among employees and
leaders which reduce the possibility of conflicts.
These are the main roles which are played by a leader in an organisation for achieving its
target on time. Beside this, there are various leadership style which also plays a crucial role in
providing direction and coordinating efforts of employees. Compass group can make use of
autocratic or democratic leadership style as per its business situation to influence and guide is
employees.
P3.Management and leadership styles
Management and leadership styles play a crucial role in effective execution of any task or
operation within an organisation. The leaders of Compass group are making use of different
leadership and management styles for meeting and handling the different situation within the
organisation (Yang and Yang, 2019).
Leadership style
A leadership style mainly shows the method used by a leader for providing direction,
motivating people and implementing plans. The different leadership styles which can be adopted
by leader of Compass group to influence and motivate its employees as per the situation are
explained below:
 Democratic Leadership – Under this type of leadership style, opinion and views of
employees and workforce are taken into account before making any decision i.e. proper
involvement of employees are allowed. This type of leadership style facilitates better
atmosphere and encourage employees for creative and innovative ideas. Democratic
leadership is used by Compass group during implementation of any change as it provide
better communication between leaders and employees and also boost morale of
employees which enhance their productivity and performance.
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 Autocratic Leadership- Under this type leadership style decision making powers are
centralise and are hold by the leaders who decide all the strategies and plans without any
discussion with its subordinates (Mustafa, 2019). Use of this leadership style is made by
Compass group at the time of some adverse situation when fast decisions are needed to
handle the conditions. But this type of leadership style can reduce the morale of
employees as no decision making power is provided to them thus, also hinder creativity
and innovation level of employees.
Management Styles
Use of management styles is made by manager to effectively accomplish their duties and
role and also to properly manage and coordinate the work of its subordinates. The different
management styles use by the managers of Compass group are discussed below: Participative management style- According to this management style participation of
employees are allowed in decision making process for better growth and development of
organisation in long period of time. Mainly this type of management style is used by
manger of Compass group as it provide better motivation to employees and also align
their efforts and interest with overall corporate or organisational goal (Newton, 2019).
 Consultative management style- Under this mangemt style, mangers of Compass group
consult other team members and employees before making or arriving at any decision.
This management style require proper listening skills and right consulting channels in an
organisation so that opinion and views of all employees can be taken into account before
making any decision (Mukherjee, 2019). Consultative leadership style built loyalty and
commitment in employees and also develop of feeling of empowerment with organisation
which enhance the performance of employees.
LO2
P4. Internal and external factors influencing management style
The business environment whereby an organisation conducts its operations is extensively
turbulent and complex. This tends to have a significant influence upon the manner in which
business entities carry out their activities and practices in the modern era. With reference to this,
there are several internal as well as external which significantly impact upon the management
style of a company. These factors are explained in relation to Compass Group PLC as follows:-
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Internal Factors
The various types of factors pertaining to internal environment of an organisation are
described along with their impact, as follows:-
Employees: This is regarded to be the most important internal factors that influences the
style of management adopted within an enterprise. With reference to Compass Group, it can be
said that the staff members have a direct impact upon the selection of management style as it is
under the jurisdiction of top management that employees carry out business activities. In case,
the contract catering organisation fails to craft and implement effective plans and strategic course
of action, this would have severe consequences for the organisation (Jain, Duggal and Ansari,
2019). Thus, management style within Compass Group is selected after the analysis of
behavioural conduct and performance of employees.
Capital: This is acknowledged to be yet another crucial element that is taken into due
consideration by an organisation while carrying out business operations to determine effective
style of management. The manager of a corporation devises an action plan for staff members
post the analysis of cash availability within the confines of an entity and the desired amount to be
incurred for financing of business activities. Thus, Compass Group decides the management
style to be adopted by it after acknowledging the cash available with the company. This is
significant because less cash availability would imply application of a stringent management
style stressing upon optimal usage of resources (Chang, Liu and Chang, 2019). On the contrary,
high cash availability would mean the selection of management style that is keen to come up
with innovations and advancements within the existing offerings of respective corporation.
External factors
There are also some of the external elements which influence the selection of
management style within an enterprise. These are briefly explained below:-
Technological up-gradation: With the efflux of time, a number of changes take place
within the confines of technology, significantly influencing the selection of management style
within an entity. In this regard, it can be said that at the time of bringing a new technology, it is
relevant as well as significant for Compass Group to adopt a management style which can gain
support and aid from employees to incorporate the new system or technique in routine activities
of business (Afsar, Masood and Umrani, 2019).
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Customers: This is a stakeholder group which is duly taken into consideration while
crafting any of the strategies or plans as this is composed of the end users of products and
services offered by an organisation in market place. Customers are acknowledged to have a
significant influence upon the manner in which an entity carries out its operations at marketplace
and adopts the governance as well as organisational structure (Sidhu, Singh and Singh, 2019).
With reference to this, it is analysed that the selection of management style within the confines
of Compass Group takes place after considering the needs and preferences of customers. This
helps the respective entity in ensuring that the organisational operations and management is
consistent with the demands placed at market.
LO3
P5. Current Hard and Soft skills of leadership and management
Soft skills of mangemt and leadership reflect the personal attributes of manger and leader
that makes them different from other individuals. Beside this, hard skills are those attributes
which are necessary for performing a professional task or job. Soft skills are inbuilt skills where
as hard skills can be acquired through learning and training. Following are the hard and soft
skills of management and leadership of Compass group:
Current Hard Skills
 Time management- It is the most important skill of any management or leadership as it
ensures proper discipline and punctuality in an organisation which is necessary for timely
completion of a work or task. The desired goals and objective of an organisation can only
achieved through proper time management by its leader and manager (Garcia-Dia, 2019).
Use of different tools like work break down structure and Gantt chart is made by leader
and mangemt of Compass group to ensure the timely achievement of objective and goals.
 Research and analysation- It represent the planning and strategy formulation skill of a
manger and leaders which is necessary for making plans and polices for future
development and growth of organisation. Proper research and analysation is required by
management and leaders for evaluating and analysing current situation so that best
strategy can be adopted for grabbing an opportunity. Research and analysis is also
required to provide proper guidance and direction to employees as per prevailing
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situation and circumstances so that goals and target can be achieved easily (Luu, 2019).
Timely research is conducted by manger and leaders of Compass group to properly
understand their business environment so that best plans can be formalised for betterment
of organisation and proper direction to efforts of employees can also be provided.
Current Soft Skills Communication- This skill is regarded as one of the most vital skill of management and
leadership as manger and leaders required to communicate with a lot of people and act as
a bridge between workforce and top authority, so it is necessary that mangers and leaders
must have good communication skill so that all the relevant and necessary information
can be transferred or provided to employees. Effective communication also reduce the
chances of chaos and conflicts in an organisation through properly communicating role
and responsibility of all employees and also brings clarity in an organisation (Hügel,
2019). Mangers and leaders of Compass group is having an effective communication skill
which is used by them to properly influence and provide guidance to employees to
achieve the desired goals.
 Leadership- This skill is also necessary for all mangers and leaders to properly provide
direction and guidance to employees. Leadership skill are used by leaders and manger of
Compass group to provide proper direction to employees and to lead and coordinate their
efforts for accomplishment of goals and targets (Newton, 2019).
P6. Future management and leadership skills
Leadership and management together serve as the key to effective execution of business
operations within an entity. In this regard, the main aim of collaboration between leadership as
well as management is to facilitate dynamic cooperation within the lines of a corporation. To
facilitate this, it is important for the manager and leader within a company to have certain key
skills which would provide aid to them in fulfilling the needs of customers, while ensuring
growth and development of entity in the long run (Sidhu, Singh and Singh, 2019). In relation to
this, the future management and leadership skills important for Compass Group are discussed as
follows:-
Future leadership skills
The leader of Compass Group can take into use skills like collaborative working, conflict
resolution and decision making, as they together provide assistance to the entity in making sure
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that business activities and practices get executed as per organisational requirements. This aids
the entity in accomplishment of organisational goals and objectives in due course of time. By
developing such skills, leader pertaining to this respective food contract catering company to
build positive relationship with employees and enhance their performance (Hemmert, 2019).
Future management skills
The manager of Compass Group can make use of skills like delegation of tasks, time
management, multitasking with a view to ensure that work is being completed within the
premises as per the requirements of company. Yet another essential skill that can be applied by
the manager of respective corporation is critical thinking ability which provides logical and
sound reasoning capability to the individual having authority. With this, the manager is able to
devise and implement key strategies as well as plans for the overall growth and development of
Compass Group in the long run.
LO4
P7.Comparison and contrast between different service industries detail as follows-
Today business environment is highly dynamic in which random changes are going on
thus, to cope up with these changes ever organisation needs to make modification in its business
operation. Implementation and execution of change is quite difficult for all organisations as it
require providing proper guidance and motivation to workforce so that proper support and
involvement of employees can be achieved (Hassi, 2019). Before implementing any change it is
necessary that manger and leader should evaluate its positive and negative impact and they
should also communicate all relevant information about change with employees. For developing
an understanding about change in management system and leadership style in properly
implementing a change a comparison is made between Compass group and Aramark
Corporation:
Compass group
It is a well known British contract food service company which is providing hospitality
services in more than 50 countries. Currently compass group is having more than 550000
employees who serves around 5.5 billion meals in a year. Managing such a large workforce is
quite difficult and bringing change in its operations and functions is also critical which require
proper leadership style and management system (Compass group, 2019).
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