Leadership and Management for the Service Industry: A Detailed Report

This report delves into the critical aspects of leadership and management within the service industry, using the Hilton Hotel as a focal point. It begins by exploring classical management theories, including scientific, bureaucratic, administrative, and human relations theories, and their relevance. The report then examines the roles of leaders, different leadership styles such as autocratic, participative, laissez-faire, and democratic, and reviews various management and leadership styles. It further analyzes the influence of internal and external factors on management styles and structures, assessing current management and leadership skills, and evaluating their importance for the service sector. The report also compares and contrasts change management systems and leadership in implementing change across different service industry organizations. The report concludes with an evaluation of how management and leadership skills have developed in response to change in the service sector.

Leadership and
Management for
Service Industry

Table of Contents
INTRODUCTION...........................................................................................................................4
1. Different classical management theory................................................................................4
Role of leader and different leadership styles.........................................................................6
Review the management and leadership styles.......................................................................8
Analyse management and leadership styles in relation to organizational structure and
culture.........................................................................................................................................9
Evaluate current management and leadership styles linked with theories........................10
2. Investigate the internal and external factors that influence management styles and
structures..................................................................................................................................10
Critically analyse how specific management styles have been influenced and changed by
internal and external factors in a selected service industry organisation..........................12
3. Assess current management and leadership ‘hard and soft’ skills providing evidence
from specific service sector examples....................................................................................12
Evaluate current and future management and leadership skills that are crucial for the
service sector............................................................................................................................16
4. Compare and contrast different service industry organisations change management
systems and leadership in implementing change..................................................................16
Analyse how change management affects management and leadership skills and styles.18
Critically evaluate how, in response to change, management and leadership skills in the
service sector have developed.................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Leadership and management are very necessary for an organization as it helps in
achievement of an organization; it becomes the necessity of an organization success and growth
(Liang and et. al., 2017). In the service sector, it becomes more important because they run
organisations by people and for people. In this context, Hilton Hotel is undertaken to show the
importance of leadership and management styles. Hilton hotel is one of the famous and popular
hotels that pride services to the consumers. This report covers theories, management style and
structure which is critically analysed. It also covers the change management system by
comparing sustainability.
1. Different classical management theory
This classical management theory consists of various styles of management which
emphasizes their hierarchy and roles of leadership has should be optimized their efficiency in the
workplace. This theory consists of the following principles such as scientific management are
used to determine the most effective way to do the job, workers are should be selected to perform
various tasks based on their skills and aspirations. Key classical management theories are
defining with context to Hilton is as follows:
Scientific theory: This theory defines by Fredrick Winslow Taylor which was to be likely to
find the best one in the challenge and Taylor (1909-1911) focuses on increasing efficiency and
productivity where jobs are systematically organized. Employees are also rewarded according to
their effort. (Luu, 2020). Many processes have to be followed to complete one task and
considering all ways to determine that one main goal is to scientific management. Taylor
differentiated many experiments by 1890s so that they focus to increase a better understanding
among workers and managers to improve and develop their efficiency in the workplace. It should
be a major phase to enhancing their production activities through the use of technology and
human beings are should be considered in the performance of the routine tasks.
Advantages:
 It should be replaced old management and introduce new scientific methods.
 It provides higher degree of excellence.

Disadvantage:
 There should be high cost of organizational structure which is highly expensive.
Bureaucratic theory: This theory determines both public and private institutes ad
organizations and mainly it should focus to operate firm under various hierarchy of positions.
Each person in the organization is reported to a higher authority which is ultimately reached to
the president of the business organization. (Madanchian and Taherdoost, 2019). A firm like
Premier Inn should be emphasizing for firm to operate in a rational way that defines rules and
regulations by establishing their impersonal relationships. It is difficult to wait for that manager
is divided their task among people and it should be rewarded for which manner. This theory was
given by Max Weber (1916)
Advantages:
 It should have centralized power for particular roles and duties that would be allow
people for productivity.
Disadvantages:
 It should be decreased more opportunity for adapting some changes very quickly
because it should be dependent upon rules and regulations.
Administrative theory: This theory was given by (Fayol,1916) is one of classical
management theorythey were given 14 principles of management and it is way to organize in
systematic manner. It should be clearly defined those tasks which are need to be performed for
structure of business. It should be improving the overall function of enterprise and determine
their planning and controlling their activities and define main functions of administration. For
Hilton, it is based on such function and concept of departmentalization that means of different
activities should be performed for accomplishing their goals and objectives. For instance,Premier
Inn, they should be identified that different groups and departments are those tasks which can be
complete effectively.
Advantages:

 It results in higher productivity because there is coordination which can drive maximum
output.
Disadvantages:
 It does not consider environmental changes that have a major impact on business and
have a complex environment.
Human relation theory: This theory consists of Mayo’s human relations theory was
given in 1945 which contains that the Hawthorn effect is the theory of motivation. Workers are
motivated that preliminary to pay and treated as just another piece of equipment (Mishra and
Singh, 2019). It should also focus on employee’s satisfaction, informal place of firm and
influencing of workers profitability and productivity. In case of Hilton, it is an important theory
for the firm because they can communicate with other workers and conflict situation are arises
which helps to create better relationship among employees. Many firms like Park Plaza
Westminster have depended upon working together for the firm and reduce their conflict
properly inappropriate in the workplace to be more productive.
Role of leader and different leadership styles
Leader: A leader is a person who inspires, motivate people and guide others to
participate in common effort. A leader is someone who sees things which can be improved and
move towards a better vision into reality while putting their people first. A leader should be
connected with some other people which is to be more successful. A good leader is having a
clear vision, who is a courageous, honest and clear focus on their goals and objectives.
Role of leader
Coach: Leaders are always looking for improving their team and inspire other to
accomplishing their goals and objective in a proper manner. It is very important in each and
every situation where the sustainability of firms is helpful for whether it is different perspectives
or not, they should give enough feedbacks and people to continuously develop their strategies
and maintain a strong relationship bond.

Visionary: The vision of a leader in terms of sustainability should provide or
communicate with other team members to give the proper direction to people and vision should
be clearly generated that they have the capability to translate their vision into actionable actions
and plans. It would be helpful that compelling their vision on a future basis and in terms of their
sustainability of firms they move their firm through change management and influence some
skills and experiences (Titareva, 2021)
Leadership styles
Autocratic leadership styles: This autocratic leadership style defines that they should be
an integral part that autocratic leaders are shall always focus on result-oriented approach and
don’t trust everyone easily. They should expect others and be passionate about work and leaders
can make decisions without taking input.
Participative leadership styles: It involves team members in decision-making procedures
where team members are feel included engaged and contribute to motivation. Leaders normally
have the last word of the decision-making process, which is a time-consuming process (Xiaotao
et al. 2018). This kind of leadership is also famed as facilitative leadership but also delegate to
give many opportunities for equal participation. In the case of Hilton, all members infirm are
working together to make decisions and encourage participating in all aspects of decision-
making procedures.
Laissez-faire leadership styles: This style consists of managers are trust their workers
and confident about their capabilities which give their guidance can take all responsibility but
this style is subordinated and team members have real lead. It will be helpful to get teamwork
done on their own terms as quickly as possible without any interference. In the case of Hilton,
they have an attitude of trust and reliance on their workers and employees use their creativity,
resources and experience to help them to meet their goals and objectives. The team gets the
maximum amount of flexibility and scope of various innovation parts.
Democratic leadership styles: It is the one that allows giving their equal participation in
the decision-making process. This leadership involves not only leaders but also workers is
involved take part in decision-making procedures and participate equally. Good leaders know
that they are nothing without making their efficient and productive workforce to build their

consistency (Ponting, 2020). This is a centralized approach to power and giving authority. For
Hilton, these leaders are encouraging their participation and different creative tactics to follow
their team members to take some initiative and helpful for firm to take part in decision-making
procedures.
Review the management and leadership styles
For the success and growth of an organisation, it is necessary that they should use
effective management and leadership style so that every employee can complete their work on
time with their effectiveness and efficiency (Ponting, 2020). Hilton hotel is one of the popular
hotels that a have high number of employees working in the company. For the management of
Hilton hotel functions, employees need to be managed and always ready for completing the task
given by the manager. There are some leadership and management which are mentioned below:
Authoritarian management style
It is the style adopted by the manager or leader of an organisation in which they are not
delegating authority to the subordinates. Authoritarian management style is also known as
directive autocratic style in which manager is responsible for all activities and has all authority.
The employees have no right to question the managers. These types of managers are so strict and
very clear about their roles and duties. They always take updates from the team so that they get
knowledge about the performance details of employees.
Democratic management style
In this type of style, leaders or managers are generally take suggestions from the team so that
employees get motivated and feel important for the organisation growth and success. Democratic
management style is very effective in order to motivate employees towards organisational goals
and objectives. Members of the organisation take suggestions from their subordinates and then
take decisions which becomes very helpful for boosting the morale of employees which results in
high performance and productivity of employees.
Laissez-faire management leadership style
This style gives freedom to the employees for taking decisions whenever they need in the
organisation. In this style, managers or leaders promoted self-directed teams and involved when

they feel that something is going wrong (Titareva, 2021). It is helpful for employees to boost
their confidence and productivity level which results in the achievement of organisational goals
and objectives. It is also very helpful to reduce delaying of decisions.
Transactional management style
It is identified that organisation uses this is style when they identified that employees
need motivation which they provide in the form of incentives, stock options and bonuses. It helps
in improving the performance and productivity level that becomes necessary for an organisation
success and growth.
From the above discussion of leadership and management styles, it is identified that
organisation has many types of style which they may be adopted. The success depends on the
leadership and management style which can be clearly seen from the success of Hilton hotel
(Afsar, Masood and Umrani, 2019). Hilton who is the owner and manager of the company is
transformational leader who always focuses on providing individual examination and
stimulation. He was visionary, risk taker, motivator, energetic, determination, caring, ambitious,
dedication, tenaciousness, etc. According to his point of view, he thought that every person is
able to become a manager of a company and that's why he promotes laissez-faire management
leadership style. In this leadership in the management of company, everyone has certain roles
and responsibilities with some authority so that they can take decision with their part. For that
purpose, company hired capable managers who have a capability to run an organisation with
determination, dedication, etc. Hilton was people-oriented person and that's why they take
suggestions from their employees about their company. It becomes very helpful for or their
employees to increase the confidence and productivity which leads to high performance. This is
the reason that why Hilton hotel enlisted in top hotels in the world. The success and growth of a
hotel is depending on their leadership and management style and that's why company always
focusing on effective and efficient leadership and management style. This type of leadership is
very helpful to increase sustainability in the company because every employee becomes
responsible for their own activity and always try to reduce waste.

Analyse management and leadership styles in relation to organizational structure and
culture
Organizational culture is shared beliefs and attitudes which include practices, values and
assumptions begin with leadership and involves its leadership styles. Values and beliefs are
should be integrated and analyse that culture changes with organization and reducing their
conflicts to create a working and healthy environment. Managers of Hilton hotel, to perform their
organizational culture and structure in relation to job satisfaction of employee and maintain their
culture of working environment. It should be involved that culture should be expresses those
ideas, values and thoughts and maintain their strong culture to build their common values for
code of conduct their workers. If job can be accomplishing their goals and objectives and task
should be assigned that they will complete their business enterprise. Some leadership styles such
as democratic and autocratic, laissez faire are also determine their organizational culture and
structure are should be considered.
Evaluate current management and leadership styles linked with theories
Theories which are related to management such as scientific management theory,
bureaucratic theory, administrative and human relations theory are should be considered and
linked with management leadership styles. Scientific management theory should be determined
that managers of this organization are strictly manage to play their work and firm need to be
growth and advancement which has a huge impact that is operated by firm. Some leadership
styles are also connected and linked with management theories whether it is autocratic,
democratic and laissez faire and participative leadership styles which are directly to Hilton hotel.
Manage of this hotel are determine that leadership styles and management theories are linked
with each other and consider all places. Managers and workers take their responsibility and
guidance to take a part of decision-making process should be evaluated to build their strategies
and maintain their relationship bond for longer period of time.
2. Investigate the internal and external factors that influence management styles and
structures
There are many factors which influence on management style of an organisation. It is
important for Hilton hotel to overcome all those factors which may be influence on their

management style (Xiaotao and et. al., 2018). Factors can be come from internal as well as
external environment. Hilton hotel identify three important internal and three important external
factors which influence their management structure and styles. It is necessary to analyse and
that's why company focusing on analysis of three internal and external factors which influence
their style. Factors are mentioned below:
Internal factors
 Employee engagement: It is the first internal factor which gives a great influence on
management style and the structure. If managers identified that employees are not
interested in taking parts which is not good for company’s objectives and goals. Manager
choose effective management style in Hilton hotel so that they can motivate even they are
not taking any interest. In that case, Hilton hotel manager use transactional leadership
style in which they use incentives that create interest in employees (Ayrom and Tumer,
2020). The help of bonuses and incentives, employees get more engagement in the
activities of sustainability. In that case, companies need to focus on the structure of
management of an organisation because it impacts on employee’s engagement. For
example, if organisation has centralised structure of management, then it may be possible
to less employee engagement because the power is only used by centre.
 Company’s culture: It is analysed at a culture of an organisation made up of attitudes,
priorities and values in which employees’ reference. If organisation has a reduce culture
where every employee wants to compete with another employee then it becomes very
tough for Hilton hotel to create collaboration and teamwork which gives a great impact
on management style and structure. Sustainability can be attaining only with the help of
collaboration and teamwork and for that purpose Hilton hotel use democratic
management style which gives priority to their employees so that organisational culture
become positive and they are able to work in teamwork. It is also important for Hilton
hotel that management structure should be e decentralised so that they are able to use
democratic management style.
 Money and resources: Resources other important factor which helps to attain
organisational goals and objective. It is identified that resources are scarce and that's why
Hilton hotel need to optimise of their limited resources which gives a great impact on

choosing management style and structure. For that purpose, company need to use
authoritative leadership style and centralise the structure of management so that no
employee has a right to waste to the products (Tuan and Thao, 2018). If any employee
needs to use resources, then they have to take permission from one authoritative person
who helps to reduce wastage and boost sustainability in the company.
External factors
 Competition: It is an important factor which affects management style and structure of
the company. Generally, Hilton hotel identified that competition is rising day by day and
that’s why they used laissez-faire management style and decentralised structure of
management as it gives freedom to employees for taking important decisions which helps
in taking a competitive advantage. This can be done with the help of digital innovation as
it increases day by day. This is necessary for the organisation that they should focus on
digitalisation such as they can use social media marketing which helps in achievement of
organisation goals and objectives.
Critically analyse how specific management styles have been influenced and changed by
internal and external factors in a selected service industry organisation
It is very clear that company faces many ups and downs due to internal and external
factors. Hilton hotel also analysed that it will get impact on management style and management
structure also. That's why they use laissez-faire management style not because of they want but
due to the current situation of market. This management style is helpful in increasing employee
engagement and improves their morale. Hilton hotel also analyse that they have to choose
management structure on the basis of analysis of external and internal factors.
3. Assess current management and leadership ‘hard and soft’ skills providing evidence
from specific service sector examples
Hilton hotel identified that leadership and management is the reason of success and that's
why they always try to enhance skills of leadership and management in the company’s manager
or leader. In Hilton hotel manager and leader uses both hard and soft skills in the leadership and
management activities (Kirchner and Akdere, 2017). Hard skills are referring to technical skills
such as strategic planning, strategic designing, economic analysis, etc. This type of the skills is