Leadership and Management in Service Industry: HND Assignment Report

This report provides a comprehensive analysis of leadership and management within the service industry, using the Wa-Pila hotel as a primary case study. It begins by defining leadership and management, then explores classical management theories such as Fayol's administrative theory, Frederick's scientific management, and contingency theory, illustrating their practical application in the service sector. The report examines the role of leaders, different leadership styles (autocratic, laissez-faire, and democratic), and reviews their impact on service organizations. Internal and external factors influencing management style and structure are discussed, including culture, organizational structure, stakeholders, and digitalization. The report further highlights the importance of hard and soft skills for managers and leaders in the service industry, alongside a comparison of change management systems between Wa-Pila hotel and British Airways. Ultimately, the report offers insights into the evolution of leadership and management in the service sector, providing valuable context for effective practices.

Leadership and management in
service industry

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Classical management theories...............................................................................................1
P2 role of leader and different leadership style...........................................................................2
P3 Review management and leadership styles in service sector.................................................3
LO 2.................................................................................................................................................4
P4 Internal and external factors that influence structure and management style.........................4
LO 3.................................................................................................................................................6
P5 current management and leadership hard and soft skill.........................................................6
P6 Future management and leadership skills and its achievement..............................................7
LO 4.................................................................................................................................................7
P7 Change management system in different service industry.....................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Leadership is the capability of an individual to lead people in organisation. Management is
considered as art or skill that helps in managing employees and raising coordination between all
staff members in order to accomplish the work in significant manner (Seibert and et.al.,2017).
Present study is based on Wa-Pila hotel that aims to retain its skilled people in organisation for
longer duration. Present assignment will discuss different classical management theories and will
apply it I a service industry context. Study will describe role of leader in Wa-Pila hotel and
leadership style implements by leaders of company. Furthermore, report will investigate internal
and external factors that influence management style and structure of business unit. Assignment
highlights hard and soft skill that are crucial for service sector. In addition, report will compare
change management system in Wa-Pila hotel with British Airways.
LO 1
P1 Classical management theories
Administrative (Fayol) Theory-
Henri fayol classical management theory explains that that how management interact
with employees to increase their efficiency and productivity. It includes five key functional
areas; controlling, coordination, planning, organizing and directing (Lorinkova and Perry, 2017).
 Planning- it includes the strategies and planning of the mangers to determine the stages of
plan.
 Organizing-to execute plan it is necessary for mangers to organize and provide materials
like appoint right people on right job.
 Command- here employee should receive command from one manager only. This theory
mentions that dual command is a source of conflict.
 Coordination-according to this theory managers must communicate to the employees for
work together within an organization.
 Controlling-it is the final management activity of Henri fayol, is for the mangers to
ensure that everything occurs according to the plan adopted.
Through all these managements function Wa Pila hotels' managers interact with employees
and increase their efficiency and productivity by applying above key functions (Chun, Lee and
Sosik, 2018).
Frederick's management theory
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Frederick's management theory basically focused on the improving efficiency of the
employees. According to Frederick theory supervisor should give rewards for the increased
productivity of the employees.
Four principle of scientific management are as follows: science, not the rule of thumb-
replace rule of thumb by applying scientific study of the task (Chaudhuri, 2016).
Scientifically train and develop each employee rather them to leave passively and also by
providing detailed instructions and supervision for each employee in their work performance and
by dividing the work equally between managers and workers so that managers apply scientific
principles to the work and employees are able to perform the task.
Scientific management theory
Here according to scientific management theory Wa- Pila hotels' manager scientifically
train and develop their employees by giving rewards to them for their good work and also kept
record for their job performance.
Contingency theory-this theory depends on relationship between the leadership styles
and situation of an organization. According to this theory no one is the best to handle an
organization or in other words there are multiple ways to make decision for employers depends
on various internal and external situations of an organization. Contingency theory focused on
these points (Nen, 2015). Leader member relationship determines the relationship between leader
and employees that the cooperation between employees and leader is good or not. it also
highlights the degree of task structure and leader position's power. According to the contingency
theory Wa-Pila hotel's manager maintained relationship with their employees and mangers are
able to solve different problems simultaneously with different approaches.
P2 role of leader and different leadership style
 Wa pila leaders understand the organization and interprets the environment leader focus
on the availability of resources and allocate them as per use.
 Develops strategies : Wa pila leaders describes that what an organization is going to do
for achieving goal. They prepare short and long term goals and monitors them effectively
which gives success to the organization (Lanaj, Johnson and Lee, 2016).
 Act as support system: Wa pila leaders supports subordinates by giving proper
information and they participate in their decision making which further helps them to
implement their plans and programmes.
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 Strategic adjustment and monitor the result: In short run Wa pila managers track the
result and implement changes wherever necessary. They provide training sessions to
employees so they can effectively communicate with subordinates and can upgrade their
skills and knowledge to achieve goal (Simons and et.al., 2015).
 Act as motivator: Wa pila leader motivates employees by giving reward when sales is
more therefore increase in Effectiveness and efficiency in work aids to growth of an
organization.
There are different types of leadership styles that is seen at a work place such as
 Autocratic leadership: this style allows a leader to take decision without consulting
anyone. This kind of leader have high power and authority. The employees those who are
creative their output is not measured and cannot participate in decision making which
results in low morale of employees further causes dissatisfaction (Mencl, Wefald and van
Ittersum, 2016).
 Laissez -faire leadership: This leadership includes highly experienced person so a little
guidance or supervision is required. The leaders do not provide feedback which further
leads to high cost bad service, etc.
 Democratic leadership: In democratic leadership style it involves changes in authority
and power between manger and employees to be involved in decision making thus Wa
pila hotel uses the democratic leadership style to enhance the organization in terms of
success, making money, growth and increased productivity by involving in decision
making which results in creative solution, addressing the problem, solving the issues
leads to achieving goal (Sonnenberg, Pritchard-Wiart and Busari, 2018).
P3 Review management and leadership styles in service sector
Wa Pila hotel follows democratic leadership styles. It is a leadership style in which
employees can put their views. It allows workers to participate in decision making process which
leads to open communication between management and employees. This style focuses on team
equality therefore encourages flow of ideas and information where manger provides control and
guidance throughout process (Mayfield and Mayfield, 2016).
This leadership style brings people together to their work. Wa pila hotel employees
makes a connection to their team which results in happiness and production. This style promotes
the free flow idea so Wa pila hotel employees share their knowledge and experience which
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benefits to acquire more skills which results in increase in productivity which further aids growth
of opportunities for mangers . It allows Wa pila hotel team to develop more strength because this
style encourages team to work together so they are able to find a possible discussion on any
problem which benefits to achieve organizational goals. This leadership style sometimes brings
ineffectiveness during crisis situation in Wa pila hotel because when Wa pila faced an
emergency situation then maximum time was taken to obtain feedback from all employees
therefore it increased in delaying the resource implementation (Little, Gooty and Williams,
2016).
Management style is a method used by a manger in managing group of people or
organization. It depicts manager style that how they handle employees, deal with subordinates
and how they run a business.
Wa pila hotel implements Persuasive style. persuasive leadership includes active hearing
of opinions of subordinate so that a satisfactory decision can be taken for employees. The Wa
pila hotel manager gives training and encourages learning where employees put forward their
skills and knowledge which brings effectiveness in sales. Manager provides a fertile work
environment where Wa pila hotel employees freely communicate so they can easily expose their
ideas which further aids in effective decision making (Seibert and et.al.,2017). Wa pila managers
reward their employees when sales are increased. When any kind of dispute occurs then Wa pila
manager eliminate that contention by listening their problems and provide a suitable solution and
a fair decision towards dispute that aids in retaining employees. Wa pila mangers provide more
information and clear instruction so that employees can bring effectiveness in work to achieve
goal. This management style brings frustration because Wa pila has a huge number of employees
and sometimes it is impossible for a manger to listen each employee and to give feedback
(Lorinkova and Perry, 2017).
LO 2
P4 Internal and external factors that influence structure and management style
Internal factors that effects business organization are as follow-
Consider that the external environment is frequently dynamic so it is hard for companies
and their managers to control the changing situation. However, some internal factors can be
relatively easy to grasp and control.
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 Culture plays a vital role in determining the internal environment of the organization. it
collects and organizes the visions, beliefs and habits which is shared among employees
and also determines that how an organization will perform (Lanaj, Johnson and Lee,
2016).
 Organization structure- these include not only company's hierarchy but also pay structure
of the people in the company. The structure becomes effective and efficient by putting
employees and functions into different categories so that company can perform its
different functions simultaneously and seamlessly. Here Wa-Pila hotels' managers
assigned different duties to different employees so that there can be an increase in growth
within the Wa-Pila hotel as well as their employees also (Simons and et.al., 2015).
There are many external factors that impact on style of management and structure as
well. These are explained as below:
 Stakeholders: Wa-Pila stakeholder’s are customers, managers, employees, investors etc.
needs of each person is different. Company has to involve their concerns and has to make
decision accordingly. Hence if employees want freedom then managers have to change
their management style and have to empower them so that they can work effectively in
business unit. Firm has to make changes in their structuring in such manner so that they
can share their views easily. This helps in meeting with the expectation of different
stakeholders (Sonnenberg, Pritchard-Wiart and Busari, 2018).
 Digitalization: Technology is the major external factor which influence structure and
management style. Mobile applications help in making effective coordination with
workers and consumers which makes the work smooth. Hence managers can make
coordination with employees easily which develops healthy relationship between
employees and employers. This thing impact on management structure and style and
manager need not to supervise each work closely, they can get updated information by
using advance technology (Mayfield and Mayfield, 2016). Use of email and social sites
make communication easy hence manages may change their pattern because use of
advance techniques help in minimising confusion and smooth flow of work.
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LO 3
P5 current management and leadership hard and soft skill
Hard skills are those skills which are acquired and are enhanced through practice and
learning. In this skill capabilities of an individual is defined measured and assessed. Hard skill
includes
 multiple language: This skill is mostly seen in mangers of hotel industries therefore Wa
pila hotel managers have this skill where they know many kind of languages which
further helps them to communicate employees who belongs from different culture where
this increase the chances of retention (Lorinkova and Perry, 2017).
 Technical skills: Technical skill are the abilities and knowledge which are require to
perform specific task they are practical and often relates to mechanical, information
technology, or scientific task thus this skill helps Wa pila manager in calculation,
database management, accounts on quantitative research and qualitative research further
aids to easiness in accounting, etc (Lanaj, Johnson and Lee, 2016).
 Writing skill: A writing skill gives a clear specification of any task . As electronic mail
has become the widest means of communication therefore this skill helps Wa pila
mangers to communicate with employees , clients, business partners and customers to
send business correspondence.
Soft skills are those skills that determines a person relationship with other people it is
also known as interpersonal skill.
 Communication skill: this skill leads to the proper understanding of one,s emotions
where one's need and wants are identified which leads to customer satisfaction this aids to
productivity and increase in sales (Mencl, Wefald and van Ittersum, 2016).
 Teamwork: It includes the combined action of group and various skills and knowledge
are mixed which brings innovation in achieving success therefore Wa pila mangers
provide a clear vision to their employees which further drives them to right direction
which brings effectiveness in work further aids to achieve an organizational goal.
 Time management: Time management means the completion of task at given time.
therefore Wa pila mangers helps employees to keep their personal and professional life
balanced which brings efficiency in work which aids success to the organization
(Mayfield and Mayfield, 2016).
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P6 Future management and leadership skills and its achievement
Technology management skills: This is the advanced skill as it includes machine learning
therefore Wa pila mangers need to upgrade their skill as it helps to automate functions, task like
data entry bookkeeping and contact management can be partially automated which allows Wa
pila employees to work more efficiently so it reduces the risk of human error. This skill includes
managing the data as data improves decision making in support of customers and for beating
competitors .manager can easily learn to access latest data and can explore professional
publications therefore Wa pila hotel can look trends and spot opportunities. Marketing
automation products are assessed and adjusted for promotional activities (Little, Gooty and
Williams, 2016). The Wa pila sales manager focuses on quality and timeliness of data therefore
by interpreting and monitoring their sales software system helps manager in strength forecasting
and can spot trends as they are emerging.
Emotional intelligence skill: Emotional intelligence refers to the capability of a person to
manage and control emotions. This skill includes self regulation in self regulation a manager has
the ability to manage ones negative emotions and adapt to change in situation. therefore Wa pila
mangers can easily handle the conflicts and will upgrade them to take more responsibilities
which will enhance productivity (Lanaj, Johnson and Lee, 2016). Motivation: Wa pila mangers
can motivate their employees by giving reward to them which further increases sales .
Empathy:it is the ability where to understand how others are feeling. therefore Wa pila managers
can easily improves their relationship status with employees. Emotional intelligence brings
cooperation among employees developing affectionate and brings satisfaction relationship. Thus
this skill will help to Wa pila mangers to develop and being more positive and can inspire the
team to feel same. They can handle tough conversation of an angry customer by taking correct
decision and providing suitable solution to them. Therefore, it is a great skill where Wa pila
mangers can influence their employees and can inspire them to guide in right direction
(Chaudhuri, 2016).
LO 4
P7 Change management system in different service industry
Change management plays significant role in business unit. Companies are required to
make modifications in its process of working so that it can compete with other competitors and
can perform well in the market. British Airways is the leading airline firm that serves amazing
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airline services to mass audience across the world. Change management system is different in
Wa Pila hotel and in British Airways (Little, Gooty and Williams, 2016).
Wa- Pila hotel’s managers involve every layer of employees in the decisions whenever it
plans to make changes at workplace. For example, if firm wants to implement new technologies
then managers of company ensures that every staff member get involve in the discussion and
share their views. This develops confidence of them and make them feel valued. Leaders of Wa
Pila implements democratic leadership style which helps them in managing changes effectively.
By using democratic style leaders become able to develop healthy relationship with employees
and making them positive towards the brand (Mayfield and Mayfield, 2016). This leadership
style aids in implementing changes easily because people trust on the judgement of higher
authorities and follow their instruction in order to work in changed environment significantly.
Furthermore, top management engage employees and give respect to each culture, this thing
enhances communication between employees and employers. In such situation confidence of
person get developed and they accept changes at workplace easily.
British Airways is another firm that operates in service industry, whenever firm plans to
make modifications in the organisation then leaders of the company provide clear instructions to
their lower level staff members (Little, Gooty and Williams, 2016). These instructions aids in
raising clarity about the need of changes at workplace. By this way people understand benefit of
these alterations and they accept changing decisions of top management. Leaders of British
Airways makes transparent communication with all employees, this strategy helps in raising trust
of staff members and they do not resist changes. Training is another strategy which is implement
by British Airways in order to make modifications at workplace. Firm gives necessary training to
all its staff members so that they can learn about the modifications and can apply it in actual
working easily (Seibert and et.al.,2017). Leaders of the enterprise implement autocratic
leadership style which helps in maintaining discipline and controlling over work of all
employees. By this way whenever management plans changes then people do not resist and they
accept guidelines of leaders and start working accordingly.
CONCLUSION
From the above study it can be concluded that leaders and managers both pay important
role in the organisation, they are the responsible person those who manage skills of employees
and always work to retain them in the firm for longer duration. Democratic leadership style is
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beneficial in developing relationship with employees and managing changes at workplace
effectively. Structure, culture, stakeholders, technologies are some essential components that
impact on the overall working of company to great extent. In order to implement changes at
workplace leaders have to involve people in decision making process ad have to give them
training so that they can know about changing things and can work on it significantly.
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REFERENCES
Books and Journals
Chaudhuri, A., 2016. Vivekananda: A Born Leader: The Attributes and Thoughts of an
Extraordinary Leader-Manager, A Perfect Embodiment of the Servant-Leadership
Concept. Advaita Ashrama (A publication branch of Ramakrishna Math, Belur Math).
Chun, J. U., Lee, D. and Sosik, J. J., 2018. Leader negative feedback-seeking and leader
effectiveness in leader-subordinate relationships: The paradoxical role of subordinate
expertise. The Leadership Quarterly. 29(4). pp.501-512.
Lanaj, K., Johnson, R. E. and Lee, S. M., 2016. Benefits of transformational behaviors for
leaders: A daily investigation of leader behaviors and need fulfillment. Journal of
Applied Psychology. 101(2). pp.237.
Little, L. M., Gooty, J. and Williams, M., 2016. The role of leader emotion management in
leader–member exchange and follower outcomes. The Leadership Quarterly. 27(1).
pp.85-97.
Lorinkova, N. M. and Perry, S. J., 2017. When is empowerment effective? The role of leader-
leader exchange in empowering leadership, cynicism, and time theft. Journal of
Management. 43(5). pp.1631-1654.
Mayfield, M. and Mayfield, J., 2016. The effects of leader motivating language use on employee
decision making. International journal of business communication. 53(4). pp.465-484.
Mencl, J., Wefald, A. J. and van Ittersum, K. W., 2016. Transformational leader attributes:
interpersonal skills, engagement, and well-being. Leadership & Organization
Development Journal. 37(5). pp.635-657.
Nen, M., 2015. Leader vs Manager. Influences and Contributions to Team Development. SEA–
Practical Application of Science. 3(08). pp.269-272.
Seibert, S.E. and et.al.,2017. Linking developmental experiences to leader effectiveness and
promotability: The mediating role of leadership self‐efficacy and mentor
network. Personnel Psychology. 70(2). pp.357-397.
Simons, T. and et.al., 2015. How leader alignment of words and deeds affects followers: A meta-
analysis of behavioral integrity research. Journal of Business Ethics. 132(4). pp.831-844.
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Sonnenberg, L. K., Pritchard-Wiart, L. and Busari, J., 2018. The resident physician as leader
within the healthcare team: An exploratory inquiry into the perspectives of interprofessional
clinicians. Leadership in Health Services.
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