Leadership and Management in the Service Industry: A Hotel Case Study

This report provides a comprehensive analysis of leadership and management within the service industry, specifically focusing on the Church Street Hotel. It begins with an introduction to leadership and management principles, followed by an examination of classic management theories and their application in the hotel. The report delves into the roles of leaders, explores different leadership styles such as transactional and charismatic approaches, and evaluates the impact of these styles on the hotel environment. Furthermore, it analyzes the influence of internal and external factors, including staff skills, motivation, economic conditions, and technological advancements, on management strategies. The report also assesses the current and future management and leadership skills required in the hotel industry, comparing the hotel industry to the retail industry. Overall, the report offers insights into the application of management and leadership principles, providing a detailed overview of the Church Street Hotel's operational strategies.

Leadership and Management for
Service Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Classic management theory and use in service industry........................................................3
P2 Role of leaders and different leadership styles......................................................................4
P3 Revaluation the management and leadership styles in service sectors..................................5
P4 Impact of internal and external factors on the management styles........................................6
LO 3.................................................................................................................................................7
P5 Current Management and leadership skills............................................................................7
P6 Future management and leadership skills in hotel.................................................................8
P7 Comparison between Hotel Industry and Retail industry......................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Leadership is an art of motivating or influencing a group of people to act towards
achieving the organizational goal. Management is science and art of getting people together to
achieve desired objectives and goals of the organization by integrating and coordinating all
available resources effectively and efficiently. The Church Street hotel is a Spanish American
Style hotel in Camberwell, with easy access by bus to Central London. It offers free WiFi an
honesty bar and attractive rooms. This study includes various classical management theories that
is applied by the Church Street Hotel. It also describes the role of the leader in the hotel, and
different leadership styles that are followed by the Church Street Hotel. Apart from that it
explains the internal and external factors that may have a huge impact on the management styles
adopted by this hotel. The current management as well as future management strategies and
various leadership skills adopted by the hotel are also described so that the hotel can properly
manage their operations.
LO1
P1 Classic management theory and use in service industry
Classic management theory is based on that workers only have economical and physical
needs. Management thinks that there is no place for social needs and job satisfaction need. There
are different kinds of classical theories which is applied in Hotel Church Street, United Kingdom
i.e. :
Scientific theory of management: By this theory it very easy to analyzed work in
scientific manner and it is also possible to find out the best way to completion of assign task.
The Hotel Church Street also follow this management approach for completion of work in most
effective and efficient manner in hotel. The hotel management also use this approach for
increasing the productivity of the organization, permit it to reward the employees with extra
wages and salary. Because it will increase the motivations of employees in hotel. Hotel
management also analyze the each portion of the assign task and find the best way to solve this.
The hotel manager also help their hotel staff at each stage and also ensure that employees are
going on the right way(McCaffery, 2018).
Administrative theory of management: It is also classic management theory and best
way to organize things in systematic manner. The organized way includes division of work,
clearly define tasks and hierarchy structure of company. This theory is also used by the hotel

management of Church Street, for improving the performance and overall functions of hotel.
This theory also includes proper planning, organizing, coordinating, commanding and
controlling the main functions of hotel. According to theory hotel management can be easily
divide the power and authority in hotel as per the relevant area of their responsibilities. This is
important for improving the working styles of hotel and also improve profitability and
environment of hotel.
Management theories in Service Industry: By using this both theories in hotel Church
Street can be very beneficial for industry. It will help hotel to make it out from the crowd in
market. This is also helped hotel department for improving the culture of hotel which is
improved the productive corporate culture and also encouraging employees to be focus,
committed and creative in hotel. Management theories also give fine structure to the hotel and
give a right path for achieving the goals(Jeon and et.al., 2017).
P2 Role of leaders and different leadership styles
Role of the leader in hotel industry: Leadership is way to influencing peoples for
achieving the goals of the organization. A leader fixed a clear vision for an industry, guide and
motivates employees through the working process and builds team spirit. Creations and
innovations are very essential in hospitality industries for facing new challenges and survive in
competent market. There are different kinds of roles which is performed by the leader in
organization i.e.:
Focus on the guest: In a hotel industry, hotel success or failure is completely depends
upon the in their ability to providing high quality services to the guests. For this hotel Church
Street provides high quality of leadership for deep understanding the guest behaviors and
commitment with guests. Leader of hotel also focus upon their staff for well being with the
guests(Herman, 2016).
Required at all level of hotel: Leader is a person who required at all the levels in hotel.
He performs his roles from the top management to bottom management. At the top level
management in hotel church street, the leader helps them for formulations and planning of the
policies, it also helps middle and bottom management by motivating them towards their own
goals and hotels goals. He guides them and showing the best for accomplish their task.

Leadership styles: Leadership is a leader's method for providing specific way for
implementing plans, gives the directions and motivating peoples. Different leadership styles
which are followed by hotel church street i.e.:
Transactional leadership styles: In these types of leadership styles leaders promotes or
motivates employees by both reward and punishment. With the help of reward and punishments
transactional are capable to keep employees motivated for short term. This leadership styles is
follows by the hotel church street, they motivated their employees by giving them rewards which
are monitory or non-monitory who accomplish their task in most efficient manners . And if hotel
staff under perform their task than they demote them and cut their incentives(Herman, 2016).
Charismatic leadership styles: This is method of encouraging someone behaviors by the
way of communication, sentiment and by personality. In hotel, leaders use these methods for
improving the get things done and improve the manner for specific things are finished. They
motivate employees by well communicate them, appreciate their performance in front of hotel
staff. That all things enhancing the motivation levels of employees and perform their task most
efficient manner.
P3 Revaluation the management and leadership styles in service sectors
After implementing of management styles and leadership styles in hotel, management
evaluate their positive and negative impacts on hotel environment:
Scientific theory (Management): This theory of management provides various
advantages to the hotel church street. It improves peace and harmony in among the hotel staff,
enhancing productions of hotel, cut the production cost and also provide high standard of lings to
the hotel employees. This theory of management also helps hotel department for carefully
selections of workers. This theory of management also reduce the wastage and looses in hotel.
This theory also have negative impact on hotel after using this theory of management, it
increases the inhuman working conditions just because of mass production. This study also not
focus upon the basic needs and feelings of employees in hotel. This theory also follow strict rules
and regulations, which make exploitation of the employees and they stay unanswerable to
everyone. It leads strong control upon the workforce, which may increases the absenteeism in
hotel(Bush and Glover, 2016).
Transactional theory (Leadership): This theory also have positive impact on the hotel
culture. After applying this theory in hotel, it effectively motivates the employees of hotel and

improve their productivity. This also make achievable goals for every employees at all level in
hotel. It also clears all confusion and doubts of employees at the time of authority delegation. By
these styles of leadership it reduces the cost of production. It is a simple process and easy to
implement and follow in hotel.
This theory also have negative impact on the hotel management. This theory destroy
commonality from the production process of hotel. This theory creates more follower in hotel
rather than leaders. If in some case leader left the hotel than the rest of group not know how
accomplish assign task. This theory also focus upon the consequences instead of rewards. This
situation in hotel leads to disciplinary actions, creates high level of dissatisfaction among
employees of hotel(Hallinge and et.al., 2015).
P4 Impact of internal and external factors on the management styles
Internal Factors that may impact the management style include but are not limited to staff skill
levels, motivation and management structures, corporate culture, policies and priorities.
 Human Resources:-Staff skill levels immensely affects the management styles so it is
necessary for the manager of the hotel to provide proper training to the staff to achieve
the objectives while maintaining effective work team.
 Motivation:-Less motivated or skilled employees would need a style that is more
controlling and provides consistent supervision to assure productivity whereas the highly
motivated employees need less direction and supervision as they have the ability to take
autonomous decisions. These employees take benefits from such management style
which is less controlling or hands-off(Renz and Herman eds., 2016).
 Policies and Culture of the hotel:-The policies and culture of the hotel may affect the
management styles. So the manager's style and outlook must settle into the business
organizational culture. The styles adopted by the management must adhere the
procedures and policies set forth by the organization.
 Management Structures:-The selection of structures may affect the management of the
hotel as if the manager chooses the hierarchical management structure then it requires
more controlling to meet the objectives of the hotel. So the manager of the hotel has to
evaluate this factor.
There are various external factors that may affect the operations or management of the hotel such
as:-

 Economic Factors:-These factors may affect the hotel by paying taxes, by accommodate
rooms and by giving jobs to people. Recent Recession and inflation in UK has greatly
affected the business of the hotels including the Church Street Hotel therefore the manger
of the hotel needs to develop their strategies to overcome this(Conger, 2015).
 Technological Factors:-The technology is updating day by day and this is giving a
challenge to even the hotel businesses to fight with it. However, the Church Street Hotel
is relying on technology and invent innovative products for their guests.
 Social Factors:-Theses factors also affect the workings of the hotel such as lifestyle of the
people and their changes, ethnic and religious differences and social mobility. The
Church Street hotel needs to think about their services as these are related to the lifestyle
of the people or not and in this way they provide their services according to their guests.
 Political Factors:-The Church Street Hotel pinches their business with various policies
and laws like tax policies, trade policies and health and safety laws etc. These laws and
policies are strictly monitored and followed and therefore, the hotel needs to implement
these regulations properly.
LO 3
P5 Current Management and leadership skills
The management of Church Street hotel tries to manage day to day operations of the
hotel, either for a basic fee or an incentive fee or a cut of the gross revenue. Usually the hotel
companies have various options like if the owner of hotel does not want to hire a general
manager and hotel employees they can also hire a hotel management company.
The Church Street hotel investigates various things to analyze the potential competition and it
also tries to find out the prices or rates charged by competitors so that the management can set
their prices lower to attract more customers. The management read customer reviews online as it
helps the hotel to get an idea of complaints or praises the customers have had so that the
management team can get idea of what visitors are looking for in the hotels and according to that
tries to satisfy their needs(Oshagbemi, 2017).
The Church Street Hotel has skilled staff and it is often said that if the company retains skilled
staff, it can face all the challenges to survive and grow in the competitive market.
Hard Skills:-

 Human Resource Management:-The leader has to combine many of his soft skills with
practical aptitude in recruiting and disciplining staff as hard skills are specific and are
easily achieved with the right qualification.
 Competency in all areas of hotel operations:-This require experience working around all
the departments of the hotel. The leader of the Church Street Hotel tries to encourage the
whole staff so that they contribute their maximum.
 Sales and Marketing:-There's greater emphasis on the value of digital marketing so the
management or leader of the hotel has the ability to understand and monitor the success
of various marketing channels for the business(Willis, Clarke, and O'Connor, 2017).
Soft Skills:-
 Coaching:-It refers to enhancement of skills. The leaders try to improve job satisfaction
and the competency of team members through motivation, training and performance
evaluation so that they can become more qualified.
 Problem solving:-The leader of the Church Street hotel tries to solve the problems of
customers as well as staff with the best outcome all while maintaining a calm exterior.
And only an experienced leader can solve these disputes as it requires practice and a can-
do mindset.
 Influence:-The Leaders of the hotel are able to see the bigger picture which means they
influence or motivates the employees and also give and receive the feedback from them
to achieve the best results for the establishment.
P6 Future management and leadership skills in hotel
There are some management and leadership skills which can implemented in hotel, for
future point of view. It may improve the environment and culture of the hotel.
Fearless Gracefulness: By this management and leadership skills, hotel can survive in
market front of their competent. It will provide this types of leadership and management skills
which can quickly think, decides and inspire will be critically keep up with these fast growing
competing condition.
Earning respect: For the future perspective, in the hotel, more transparent, mindful and
collaborative must be as persevering to earn respect to their teams. Leaders have to hold
themselves liable and accountable for the consequence their influence has on their hotel
employees and on the whole hotel.

Empathy: The future of leadership will rotate around capacities to build emotional
intelligence with ourselves as leaders. In hotel department, in hotel department empathy must
for handling the employees emotions. By these skills leaders can understand feeling and
emotions of person and guide them appropriately.
Understanding tech.: It is very necessary that management needs to understand all the
technology and the technical changes in hotel. Because at the time of compatible market new
technology adoptions is must and its also improve the growth of hotel. For the future point of if
hotel management does not accept new technology or not consider them, then it will become
hurdle for hotel(Donate and de Pablo, 2015).
Communication: Communication is very important at the every time in hotel or any
industry. With good communication skills management can easily deliver their important
information and messages from each and every department of hotel. It can also help staff of
hotel, for clearing their doubts and confusion about their job roles.
Emotional awareness: Emotional awareness is ability to understand other behavior,
feelings and emotions. Hotel management must aware about the emotions of their employees to
facilitates their thinking and properly understand their emotions. Management of hotel can
improve their emotional awareness quality by write down the goals, objects and plans of
employees, by providing them time to time feedback, by take their personalities and
psychometric tests etc(Cherry and Jacob, 2016).
P7 Comparison between Hotel Industry and Retail industry
Points of Differences Hotel Industry Retail Industry
Changes in Technology The hotel industries are ditching the
plastic cards and supporting guests to
check in their rooms with their
mobile phones. The Hotels provide
Wi-Fi services, transportation
facilities and various applications or
software through which the guests
can do online bookings(Hammad and
Hallinger, 2017).
The retail industries uses cloud
services, voice instructions and
other digital marketing
services to enhance their
revenues. Voice control has
gained popularity in the retail
sector as the customers can ask
from Siri on Google to search
for an online store in their

area.
Organization structures The hotel industries have an
organizational structure that provides
services its customers or guests in an
effective as well as efficient manner.
In an organization structure of hotel
industry the chain of command and
roles and responsibilities of each
department are essential to maintain a
well functioning organization.
To have an effective
organization structure is
important when creating a
business plan to identify its
customers and to make an
appeal to them.
The organization structure of
retail industry emphasis on
three areas: centralized
operations, store operations
and regional operations which
differentiates it from hotel
industry.
Laws and Regulations There are various rules and
regulations that a hotel industry needs
to consider. There is minefield of
bureaucracy to examine ranging from
licensing rules to fire regulations and
food hygiene. If Something goes
wrong in the hotel, the cost to remedy
contravenes of the law range from
civil and criminal actions against the
hotel and even imprisonment for
more serious contravention (Ejimabo,
2015).
Since the nature of both the
industries is different so there
are different laws and
regulations that both the
industries need to follow. The
laws of retail industry includes
matters like consumer
protection laws, laws that
defend the rights of customers
and assure fair trade
competition.
Level of Creativity The management needs to have more
creative and innovative mind to
conduct the operations of the hotel
industry. So it develops the
However, the manager should
have creative mind and
knowledge in retail industry
also but as compared to hotel

knowledge and creativity with time. industry this industry demands
less creativity.
CONCLUSION
In this study it is concluded that the Church Street Hotel is required to evaluate various
internal and external factors that may affect the operations of the hotel and apart from that the
management of the hotel is needed to adopt effective leadership and management styles so that it
helps to improve the performance of the hotel. The Church Street Hotel has to provide proper
training to their staff and motivate them so that they perform best to achieve the organizational
goal. The Church Street Hotel is convinced about the proper selection of leadership styles and
management styles through analysis of various leadership and management styles.