Leadership and Management: Service Industry Theories and Practices

This report delves into the multifaceted world of leadership and management within the service industry, using the Grosvenor Group as a case study. It begins by examining classical management theories, such as Weber's theory of bureaucracy and Taylor's scientific management, and their application within the hospitality sector. The report then explores various leadership styles, including authoritarian and democratic approaches, and their impact on talent management. It contrasts leadership and management styles, highlighting the roles of both in driving organizational success. Furthermore, it discusses the significance of hard and soft skills for future leaders and managers. The report also examines the influence of both internal and external factors on management styles, as well as the implications of change management within the service sector. The analysis includes participative and consultative management styles, and concludes with a discussion on how leadership and management skills are formed and evolve in response to industry changes, providing a comprehensive overview of key concepts and practical applications.

Leadership and Management
for Service Industries

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Classical Management Theory in service industry................................................................1
P2 Leader role and different styles of leadership........................................................................3
P3 Leadership and management in service sector.......................................................................4
M1 Leadership and management styles in particulars service sector in relation to company
culture and structure ...................................................................................................................5
D1 Particular leadership and management style developing making links to providing
evidence and theorists of organisational practice........................................................................5
P4 What are the external as well as internal factors that influence management style ..............5
M2 External as well as internal factors that influence structures and management styles.........6
D2 Manner in which external and internal elements within hospitality industrial segment
changed and influenced management styles...............................................................................7
P5 Soft and hard skills ..............................................................................................................7
P6 Future leadership as well as management skills ...................................................................8
M3 Essential future as well as current leadership and management skills that are essential for
service sector...............................................................................................................................9
D3 Manner in which manner leadership and management skills in the service sector have
been formed.................................................................................................................................9
P7. Distinguish Service sector organisations..............................................................................9
M4 In what manner leadership and management styles and skills get affected by change
management..............................................................................................................................10
D4 In what manner leadership and management skill within service sector developed in result
to change...................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Leadership is defined as setting new vision and direction for individuals or team in order
to accomplish entity mission. While management aim towards directing and controlling
resources and people according to organisation values and principles. Leadership and
management play crucial role and acts as primary component company (Hassi, 2019). In this,
leaders within firm have most important responsibility which is to remarkably lead each and
every worker and influence their behaviour towards accomplishment of entity goals. While
manager in management process are responsible to administer day-to-day activities as to
stimulate organisation continuous growth and profitability. However despite of having different
types of roles and responsibilities both leaders and manage have common aim which is to guide,
support, direct and control employees and functions of organisation as to fulfil entity goals and
objectives. Report has been made on Grosvenor group, this entity was founded in the year 1677
and offer their services worldwide. Present report include formative discussions upon classical
management theory application in service industry. Along with this, various form of leadership
styles and role of leader is being discussed in this report. In addition to this, hard and soft skills
along with various services sector entities are included in this report.
TASK 1
P1 Classical Management Theory in service industry
Managemnet theory mainly focus upon a fact that workers within organisational
workplace premises only perform their roles and responsibilities for physical and economic
needs and they do not consider job contentment and social needs. Rather, it determines
maximization of profit, centralised leadership, process of taking decision and labour
specification. In context to this, it has been evaluated that hospitality company undertake
advantage of various form of classical management theories as to effectively apply management
and leadership styles. These theories are being effectively undertaken by respective entity leaders
and managers as to increase organisational probability and productivity. Two commonly used
and essential classical management theories in being given below:
Weber theory of Bureaucracy
Weber theory of bureaucracy mainly emphasize upon implementation of division of
labour, implementation of rules, hierarchical structure and application of rules. This has been
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evaluated that power is having significant capabilities induce obedience. With the help of this
entity can make employees to abide regulations and rules. Mentioned below various form of
principles is being applied in relation with hospitality company:
Division of labour:
This principle states that every individual is possessing different set of potential and
capabilities to perform their roles and responsibilities (Suharjana, Purwoko and Umar, 2020).
Thus, managers of hospitality organisation must ensure that employees are allotted with roles
and responsibilities in according with their talent, efficiency and capabilities. It will significantly
allow company to increase satisfaction and job performance level of employees that further
assure entity to sustain their employees for long period of time.
Chain of command:
This is one of the most important component that assure smooth and effective operations
and functioning of company. In context with hospitality institution it is essential for managers to
make sure that employees receive direction and orders in a proper hierarchical manner. As it will
further benefit in reducing delay in work, inefficient results and other negative end outcomes.
Rules and requirements:
It has been evaluated that rules and requirements hold most important position in
organisation activities and functioning, as they are foundation of company daily basis
performance and complaint process. Thus, manager of travel institution must ensure that they
formulate rules and requirements by considering perceptions, needs, demand, requirement and
welfare of employees and organisation in order to ensure uniformity in organisational operations.
Career orientation:
As per according to this principle, right candidate get placed in right job. This aid
organisation to increase their productivity level effectiveness at great extent. In terms with
hospitality company, managers are required to make sure that they have proper understanding of
employees skill, talent and potential as to use them effectively while placing them at right job.
Taylor' scientific management theory
F.W Taylor. Coined this theory. Main aim of Taylor scientific management theory is to
increase overall performance efficiency of employees. For this management of entity is required
to motivate behavioural conduct of employees by offerings them performance appraisal and
rewards. It is important for manages to male sure that they provide support and guidance to
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employees instead of scolding them as it will decrease their performance and motivation. In
terms with respective entity management take advantage Taylor scientific management theory
four principles:
Principles of Taylor's scientific management theories
 Rule of thumb can proves to be effectively instead of scientific approach as to conduct
task in feasible manner.
 Allocate roles and responsibilities to employees according to their capabilities and
provide them continuous motivation with the help of training and development sessions
as to align their work efficiency with entity objectives.
 Offer regular instructions and supervision to employees by continuously reviewing their
performance in order to make sure that they are utilizing their talent effectively.
 Allocate project within team members and managers as to make sure that organisation
administration mainly focus upon their time on training and planning process. With the
help of this, employees can conduct their operations in a well defined and effective
manner.
According to the above evaluation, it has been determined that managers within
Grosvenor is required to identify skills, knowledge and competency level of every employees in
order to allocate roles and responsibilities to them in accordance with their efficiency. It will help
in reducing unnecessary error that enhances overall work effectiveness. With the assistance of
scientific management principles entity can effectively able to determined area that requires
improvement, it will further lead company to maximise their capabilities for growth and
development.
P2 Leader role and different styles of leadership
Leaders are the people that exercises high controlling level as well as superior positions
for influencing and leading others so that all the objectives are attained promptly. An effective
leader ensures that all the operations are exercised towards right direction and business achieves
goals successfully. In context to service sector industry, roles of organisational leaders are as
explained:
 Managing talents: It is major role of leaders in service sector industry to manage
existing and new employees through executing necessary policies and programs (Ponting,
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2020). For example, leaders of tourism business develops and retains manpower by
providing clear career mapping path, training programs and development sessions. Plan future: It is major role of leaders to plan future of employees and company. In
relevance to service sector industry, leader plans multiple activities to manage talents of
company for future. For example, leaders of travel entity plans additional activities for
employees so that their hidden talents are identified and implemented to reach great
heights.
Roles of leadership styles
The leaders method or tactics that are used to provide directions, stimulate people and
execute strategies are said to leadership styles. In service sector industry, leader adopts suitable
behavioural pattern to influence followers to work for achieving objectives. Following are some
of leadership styles along with roles to manage talents:
Authoritarian leadership style: It is the style in which one person dictates procedures,
policies and decides attainment of objectives. In service sector industry, authoritarian leadership
style plays role of controlling all activities without meaningful engagement of subordinates (Idris
and Naqshbandi, 2019). The role of autocratic leadership style in hospitality company is to
allocate tasks as per potentiality of employees and taking responsibilities of all operations so that
workforce do not feel pressure.
Democratic leadership style: The leadership style within which leaders fosters
participation of group members in decision making stages is termed to democratic leadership
style. In context to service sector industry, democratic leadership style have role to encourage
group members or employees to share ideas, opinions and issues. In tourism organisation,
democratic leadership style have role of engaging people, sharing problem solving
responsibilities, fostering collaboration and decision making with equal participation.
P3 Leadership and management in service sector
Leadership and management are two strong pillars for an organisation operating their
services especially in service sector (Kim and Toya, 2019). As their contribution acts as as fuel
that continuously increase performance level of employees that generates satisfaction level of
customers at great extent. Mentioned below leadership and management style undertaken by
Grosvenor leaders and managers are given:
Leadership Styles
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 Authoritarian: This form of leadership style is being undertaken by leaders especially
when organisation is required to accomplish their tasks or project in specified period of
time and in effective manner. Grosvenor is one of travel and tourism company in which
leaders lacks control on making decisions and leaves high autonomy on team. In this
aspect, authoritarian leadership style is suitable for adoption as by using the style leader
dictates procedures, takes decision about what to achieve and leaves low autonomy
within group (Kim and Toya, 2019). Democratic: Democratic leadership style assists leaders to take views and opinions from
employees. Grosvenor is large hospitality business in which employees prefers to work as
per direction provided by superiors. Employees resist engaging in decision making
process. In this situation, democratic leadership style is suitable as it encourages group
members or talents to take participative role in decision making. This further aid leaders
to incorporate changes by ensuring full support from workforce. This leadership style
also benefit leaders to formulate positive and healthy workplace atmosphere which is
important key of employees higher productivity.
Management Styles Participative style: Participative management style managers ensure efficient engagement
of employees in entity. Grosvenor is popular tourism sector company in which employees
are not satisfied with their job. They faces problems and have no powers to show their
creativity or take initiatives for any activity. In this situation, adoption of participative
style by managers is best option as the style is concerned with high level of job
satisfaction and empowering employees. The style also supports high autonomy,
initiatives and creativity of employees (Parés, Ospina and Subirats, 2017). Moreover, it
not only increase employees interest to perform their roles with great zeal but also aid
managers within Grosvenor to retain talented employees for long period of time.
 Consultative style: This form of management style allows managers to take views and
opinions from subordinates but in this final decision is being only lies in their hand.
Grosvenor is leading travel sector business that have large employees size. Being large
company, managers are unable to emphasise on using ideas and skills of others in
decision making. Adoption of consultative style is suitable for manager of Grosvenor as it
emphasis towards making best use of ideas, experiences and skills of talents. Consultative
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manager entails asking employees for their opinions, allows them to process issues and
solves with best possible solution. It aid managers to strengthen relationship with
subordinates in effective way that not only increase their trust and loyalty but also
facilitate managers to reduce level of mistakes and errors in organisational activities.
M1 Leadership and management styles in particulars service sector in relation to company
culture and structure
Grosvenor is hospitality business in which functional organisational structure is followed
wherein leaders adopts democratic leadership style so to give powers to employees of different
functional units for the purpose of fostering participation of each person in decision making.
Moreover, with the styles, leaders creates transparency that makes determining outcomes easy
(Karatepe, Ozturk and Kim, 2019.). At same time, Grosvenor follows task culture in which
different teams are established to address specific problems or issues. The style in this culture
fosters open discussion as well as builds a form of ownership in which ideas and opinions of
functional units plays key role in making decisions.
In relevance to management style, managers of Grosvenor in functional structure and task
culture adopts participative style that invites inputs, ideas and suggestions from employees on
necessary company decisions. The style permits manpower to pertinent information about issues
and majority of votes shows that particular course of action must be taken.
D1 Particular leadership and management style developing making links to providing evidence
and theorists of organisational practice
Grosvenor is tourism entity that practices operations to meet requirements of travellers.
In the company, current styles followed are democratic leadership style and participative
management style. As per Park, Lee and Kim (2016), it is evaluated that participative
management style benefit Grosvenor in accepting decision more wisely, improving employee
morale and encouraging creative solutions. In contrary, views of Polychroniou (2018), reflects
that the style takes more time in decision making and involves potential dangers while sharing
information.
In aspect of democratic leadership style, statements of Parés, Ospina and Subirats (2017)
shows that the style benefits in solving complex concerns, strengthening relations in team and
improving job satisfaction. In contrary, Vance (2016) says that democratic leadership style
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creates negative emotions of employees to present practices and is ineffective in crisis
circumstances.
P4 What are the external as well as internal factors that influence management style
An organisation get influenced by different types of internal as well as external factors
that further affect management style. In order to overcome adverse impacts of these elements
upon entity it is essential for entity management structure to have proper understanding of
negative and positive influence of all the factors. Some of the external and internal factors are
being defined below:
Internal Factors
Employees:
Employees are having direct impact upon organisational functioning as well as as
management style, as Grosvenor consider their employees as most important source of revenue
generation thus, it is essential for entity management to take use of management style according
to situations as to develop strategies and plan accordingly. Inefficiency in performance of
employees can impact upon decision-making power of management style, thus in this managers
are required to effectively evaluate employees behavioural conduct in order to boost their
performance, guide them effectively and motivate them in best manner.
Capital:
Funds are major source for entity entity daily basis operations and inefficiency of this can
have drastic impact of organisational and management style. Thus, as to overcome negative
influence of this factor manager are required to use management style through which they can
have proper estimation of resources that are required to conduct operations. It will help them to
estimate certain amount to execute activities in constant effective manner without cash flow
deficit.
External factors
Technological up-gradation:
Technology is continuously evolving that are forcing organisation to make proper
coordination with technological updates in order to ensure more competitive advantages.
However, lack in adopting technical evolution have significant capability to impact upon
management style as this can decrease day-to-day performance efficiency comparatively to other
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rivals (Augustyn, Elshaer and Akamavi, 2019). As to overcome this, Grosvenor is required to
have proper understanding and regular updates on frequent technological updates.
Customers:
They are market king and significantly holding power to increase or decrease profitability
and productivity of an entity. Thus, management style within Grosvenor is required to
continuously engage in the process of determining change in consumer preferences as to serve
them accordingly.
M2 External as well as internal factors that influence structures and management styles
It is important that the strengths and weaknesses of both the internal and external factors
of an organisation are analysed so that management styles can be used which can help in
maximising the productivity of organisation. The strengths of internal factors like employees,
capital etc. for Grosvenor is that they can help in utilising company resources in an optimum
manner so that the goals can be reached on time. However, the weaknesses of these factors are
that they can affect the productivity of company thereby affecting its profits. The strengths of
external factors like technology, customers etc. for Grosvenor are that they can help the company
in gaining a competitive advantage in market along with enhancing its probability. However the
weaknesses are that there is a continuous change in technology and customer preferences which
affect organisation's products and services and its competitiveness in market. With the help of
effective management style, Grosvenor can achieve its objectives in desired manner.
D2 Manner in which external and internal elements within hospitality industrial segment
changed and influenced management styles
Management styles are affected by the internal and external factors like employees,
customers, technology etc. which requires that the impact of these factors are analysed so that
appropriate management style can be chosen in company. The employee resistance due to
democratic leadership style can be reduced by using autocratic leadership style which can help in
making quick decisions along with reducing the resistance of employees. Similarly in order to
implement the technological changes the style of leaders and managers will also be changed so
that the resistance of employees in adopting changing technology can be reduced.
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P5 Soft and hard skills
Soft skills are defined as personal form of attributes which is being undertaken by
individuals and mainly different form one person to other. On the other hand hard skills are
basically not associated to professional job skills. Executives within Grosvenor take use of
various form of hard and soft skills in order to organisation operations and function with
maximum efficiency. Mentioned below some of these skills are defined below:
Soft Skills
Soft skill in management: Soft skill of management include time management skill
which can help in managing time in a more productive manner.
Soft skill in leadership: Leadership of Grosvenor consist of persuasive skills that helps
in following specific courses of actions and agreeing to commitment.
Hard skills
Hard skills in management: The current hard skills that can be used by managers of
company is to enhance the proficiency of employees in learning different foreign languages so
that they can deal with customers and personnel from different nations.
Hard skills within leadership: The leaders in company possess strong IT skills that can
be further acquired by using coaching programmes. This skills can help in managing the overall
functioning of organisation and managing employees.
P6 Future leadership as well as management skills
Management and leadership skills benefit organisation to increase organisational goals
efficiency. Both of these skills aid leaders and managers to guide, motivate and direct employees
and further boost their morale to accomplish company actual objectives with great effectiveness.
Mentioned below there are some certain form future management and leadership skills defined:
Future leadership skills:
By taking advantage of skills like decision making, collaborative working, time
management etc. leaders with Grosvenor can assure fulfilment of their roles and responsibilities
with great efficiency in stimulate period of time. With the assistance of future leadership skills
leaders can offer their employees with positive and motivating workplace environment that
further facilitate towards maximum productivity of both entity and employees.
Future management skills:
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