Leadership and Management for Service Industries Coursework Report

This report delves into the complexities of leadership and management within the service industry, using Global Grange Ltd. as a case study. It explores various management theories, including classical, administrative, bureaucratic, and scientific approaches, and their applicability in the hotel and hospitality sector. The report analyzes different leadership styles such as autocratic, democratic, laissez-faire, and situational leadership, highlighting their respective advantages and disadvantages. It emphasizes the impact of technology, particularly social media and mobile technologies, on service delivery and employee productivity, and how these changes necessitate adaptive management strategies. Furthermore, the report examines internal and external factors, assessed through a SWOT analysis, that influence management styles and organizational structure, including matrix, hierarchical, and tall structures. It concludes by suggesting strategies for Global Grange Ltd. to leverage technology, enhance customer service, and adapt to the changing market dynamics in the competitive tourism and hospitality industry. The report provides recommendations for training and development to ensure employees are equipped to handle technological advancements, and the importance of maintaining diverse organizational culture to cater to customers effectively.

BTEC HND in International Travel and Tourism Management
Coursework
Leadership and Management for Service Industries
Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................4
LO2..................................................................................................................................................9
LO3................................................................................................................................................12
LO4................................................................................................................................................15
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

Executive Summary
In the present study, the impact of technology on the approach of managers and leaders is
discussed in detail. The study also focuses on the internal and external factors that may affect
the management and leadership styles. The study has also provided a critical evaluation of
management and leadership skill that can help the organisation in future. The study also
highlights different models and styles that can help to develop a proper leadership and
management skills for the service industry.
Introduction
Management consists of planning and executing plans for organisations in order to
maintain their productivity. Leadership is involved in motivating the workforce to perform
operations to achieve the desired goals and objectives of the organisation. Leadership and
management together are responsible for setting goals and planning resources in order to
attain the goals or objectives of the company. The present study is focused on different
management and leadership styles that can be implemented in an organisation and the impact
of technology in the service industry. The present study also highlights the external and
internal factors that can influence the change in management and leadership along with the
skills that are essential for this change.
Background of the selected organisation
The chosen organisation for the study is “Global Grange Ltd”. The organisation was
established in the year 2003. The organisation is based in London and consists of 55100
hotels and other similar accommodations throughout the nation.

LO1
Management theories and leadership styles
There are various types of classical theories that can be applied in service industries like hotel
and hospitality. The theories can be further classified as situational, classical and modern
management theories.
Classical management theory
The prime objective of classical management theory can be considered as controlling and
predicting the behaviour and operations of any organisation (Khorasani and Almasifard,
2017). The classical management theory includes three levels that are top level, middle level
and first level management. The organisations like that of Global Grange Ltd can implement
this theory in order to sustain in highly competitive market of hotels and hospitality.
Administrative management theory
Another classical management theory was coined by Henry Fayol which is known as
administrative management theory. According to Pryor and Taneja, (2016), this theory
focuses on the effective management of the organisation which was based on the personal
experience of Fayol. This theory includes fourteen principles of management which can help
Global Grange Ltd to maintain their management efficiently and incorporate required
changes in the organisation. The theory can help the concerned organisation to predict, plan,
command, organize, monitor and coordinate in order to maintain the functionality of the
management within the organisation.
Bureaucratic management theory
The bureaucratic management theory who was developed by Max Weber is a classical
management theory, focus on the organisational structure of the company. This theory can
help Global Grange Ltd to develop guidelines and strategies to build a structure and control
of authority to facilitate change in their organisational structure (Grangehotels.com, 2019).
This theory can help the concerned organization in decision making and maintaining their
supply chain efficiently as the position of authority and the flow of the organisation can be
determined properly (Weiss, 2018).
Scientific management theory

This theory was proposed by Fredrick Taylor. This theory can help the respective
organization to incorporate changes in the context of technology (Grönroos, 2016). It can
help the organisations related to service industry like that of Global Grange Ltd. to deal with
the issue that can arise due to the changes they try to bring due with help of technologies.
These challenges can be solved with the help of efficient management that can be developed
with the help of scientific management theory.
As opined by Bhatti et al., (2016), the major role of a leader is to motivate the
employees and lead the change that is essential for the organisation. Leaders are held
responsible for the positive or negative impact on the performance of the organisation due to
the change that have been incorporated in any enterprise. The leaders can develop an
effective communication within an organisation and help the employees to understand the
goals which the company desires to achieve.
The leadership styles are helping to identify the roles of leadership. The
concerned organisation can develop efficient leadership traits with the help of the leadership
style that are discussed below:
 Autocratic Leadership style: This type of leaders maintains full authority in any
decision making in the organisation. In this type of leadership style the inputs of
lower level employees are not appreciated. The decision making of this leadership is
rapid but lack in holistic approach. The tasks, duties and responsibilities are assigned
without any consent of the employees and this type of leader try to maintain close
monitoring of the operation that are performed in the organisation. This type of
leadership can help the organization like Global Grange Ltd. to make decisions in
quickly in order to facilitate change but may have a negative impact on the employees
and their performance.
 Democratic Leadership style: In this type of leadership style point of view of the
employees are incorporated in decision making of the company. The leaders try to
consult to the employees and take their feedbacks so that they may feel included in
any change or transformation like incorporation of technology in the company. This
type of leadership style can be followed by the concerned by the company (Harris and
Chapman, 2015). The decision making process under this leadership style may lack in

rapidity but can help the leaders to achieve effective and overall improvement in the
organisation with the help of change they desire to make in the organisation. Laissez-faire Leadership style: This type of leaders are generally try to avoid any
sort of responsibility and power to make changes in the organisation. The leaders do
not have active participation in decision making and provides authority to the
subordinates for any sort of decision making in the company (Wong and Giessner,
2018.). These leaders provide the employees with different teams and department so
that they can create their own set of goals and overcome the issue that may arise.
 Situational Leadership style: These types of leaders do not have a specific style in
leading the change in an organisation (Thompson and Glasø, 2015). The leaders of
these types have different styles that depend on the situations and challenges that may
arise in a particular scenario. For this context technology has a significant impact on
the service industry like tourism and hospitality. Rise in technologies like social
media and mobile technology may give rise some specific challenges that needs to be
dealt with accordingly.
As opined by Donate and de Pablo, (2015), the impacts of technology have been
significant on the tourism and hospitality industry. In order to implement changes by
incorporating technology in the organisation, Global Grange Ltd. can use scientific
management theory and administrative management theory. These can help the concerned
organisation to use technologies like social media, virtual firms and mobile technologies so
that they can main their services in an effective manner. The innovation in the sector can be
further being improved with the help of democratic leadership style or situational leadership
style.
Situational leadership can be the most effective leadership that can be used by the
organisation in the service sector. This may help them to understand the areas in the
organisation that needs change for the improvement of the services of the company. This
management theories and leadership style can help the company to gain advantage in the
competitive market of tourism and hospitality industry. Implementation of technologies can
influence the employees and their productivity. Situational leadership and administrative
management can help the concerned organization to identify the impact that these changes
may have on the employees. The employees need to trained and developed accordingly so

that the innovation can help the organisation strengthen their position in the market (Gleim et
al., 2018).
The leadership and management style can be influenced by the existing organisational
structure and culture in the organisation. The culture of the employees needs to be diverse so
that the customers can be served properly. The structure of an organisation can be of various
types. They are as follows:
 Matrix structure: This structure is generally followed in large companies that
perform services around the globe. In this structure the organisation is delegated in
various departments to perform various functions for the company. This structure can
be the most influential under situational leadership style. The situational leaders can
deal with a particular problem in specific way. This can help the organization to
develop and matrix structure. Technology can also be implementing to strengthen the
communication across the matrix structure.
 Hierarchical Structure: This structure has top down approach as the authority
generally reside with the higher level employees like manages and leaders. This
structure can generally be followed under the autocratic leadership style. The structure
can manage to perform the existing services but can be ineffective if any changes or
transformation is attained in the company. In this context the execution of technology
in the organisation may have a negative impact on the employees as the decision
making for the company does not include their perspective (Zhao et al., 2016).
 Tall Structure: This structure can be considered as the most traditional structure as it
includes different departments for different functions. These departments are not co-
dependent and perform their services independently. The employees working in the
departments are limited in their services. This type of structure can be followed under
Laissez-faire leadership style. This type of structure can be challenging in initiating
and changes like that of technological changes in the concerned organisation.
Global Grange Ltd. in order to sustain and expand in the market of UK have been
implementing scientific management theory and situational leadership style that can help
them overcome the problems that they may face due to the impact of technology. The
organisation has an opportunity to enhance their customer base and profit margin. Social
media and mobile technologies like online payment and service applications can help the
company to enhance the quality of services that already exist in the company. The employees
are well trained and develop in the organisation so that they can work adapt the innovative

technologies that is being used in the services of the organisations. The CEO of the company
ahs desire of expanding the business and increase the number customers that visit their hotels.
The proper use of technology can help the employees along with the managers and leaders to
enhance the quality of services they provide to the customers.
Social media can help the company to develop market strategies to target the youth of the
country. This may enhance the profit margin of the company as they can influence more
number of people with the help of social media. Digital technology can also help to get
regular feedback which may help to improve the leadership and management styles of the
company. Scientific management theory can help to analyse the technologies that can be
incorporated in the services in order to improve the quality.
LO2
The factors who influence the management styles
The internal external factors can influence the management styles and structure of Global
Grange Ltd. The impact of internal factors can be determined by SWOT analysis is as
follows:
Internal Factors:
Strengths
 Reasonable price of the services they provide (Camisón and Forés, 2015.)
 Huge market share and customer base
 Optimum quality of services
 Enhanced brand image and reputation
Weakness
 Lack of use of technology in the services
 Weak marketing team
 Long duration of waiting time by the customers
External Factors:
Opportunities
 Implementing new technologies like mobile payments, social media marketing and
other

 Global market for expanding New services like with the help of innovative technologies like artificial intelligence
and virtual reality in the rooms
Threats
 Competition with big multinational firms
 Changing demands of the consumers.
 Inefficient supply chain
The effect of external factors can be identified with the help of PEST analysis:
Political factors:
 BREXIT has been a challenging political scenario
 The uncertainty in policies of government for the service industry
 Elections can lead to change in the policies and legislation
Digital technology: How this influence
Positive impacts:
High quality speed of service ,time saver, money saver for the company
Negative impacts:
Lost of jobs and interpersonal relations, data base which can be used for fraud.
Economical factors:
 The all time low value of dollar in last few decades
 The attitude of people that is declining of use of luxury of costly hotels
Social factors:
 The changing trends of consumers
 The culture diversity in UK
Technological factors:
 New innovative technologies in the digital areas like mobile applications and social
media
 Technologies like use of artificial intelligence and visual; reality to enhance the
experience of the consumers

The internal and external factors can influence the management styles and structure of
the concerned organization in a significant manner. The resource allocation and the
workforce of the organisation are the internal factors that may affect management where as
external factors like political and economic scenario of the country can also have an impact
on the structure of the organisation (Matteson et al., 2016). The strengths of the internal
factors can be determined by the analysing of the following
 Properly using the finances of the company
 Managing and delegation the human resource appropriately
 Introduction of new and innovative methods to services
 Helping the employees to cooperate in the organization with the help of proper
communication
The weaknesses of the internal factors are as follows:
 It does not include the diversity which is required in the workforce
 The changes in the social policies are not considered
 The proper training of the employees and their development to meet the goals of the
company are also not considered.
.The external factors can help the concerned organization to understand their position in the
market. The strengths of the external factors are as follows:
 Proper of analysis of the trends that are present in the market
 Determining the expectations that the consumers have from the service industry.
 Evaluation of the influence of the policies and legislations designed by the
government.
The weaknesses related to external factors are as follows:
 Instability that can arise due to the changes in laws and policies of the government
 The role of the organization in “Corporate Social Responsibility”
 Lacking of proper prediction in the context of changes in the social policies of the
company.
The factors like political scenarios, resources and technology can influence and
change the management styles of the organization (Ariratana et al., 2015). The technological
factors can help the concerned company to enhance their services and the quality of services.
New innovative digital technology can help the management to initiate effective

communication with help of social media. Also the use of mobile technologies in the services
can help them to reduce the time of check in and check out for the consumers. Appropriate
use of technology can help the management of the company to enhance the quality of service
that is being provided to the consumers.
The political and economic scenario of the country can be challenging for the company. The
emerging scenario of BREXIT and the economic fall of the country can be a problem that
needs to be dealt with by the organisation (Lefebvre and Lefebvre, 2016).
LO3
Current and future management and leadership skills
‘Hard skills’ are the skills that a leader can acquire with time to lead the organization in an
effective way. These skills can be learned and be developed so that the individual can reach
expertise in these skills. “Soft Skills” are those skill that are already is acquired by the person
with experience and cannot by trained and developed. This type of skill like communication
and time management can help the leader to lead the organization in effective manner.
There are several hard skills that can be developed by the leaders and managers of Global
Grange Ltd that can help them to maintain the affectivity of the organization. The skills that
are essential in this context are as follows:
Analysis of Data: Technologies can help the leaders of the respective organisation to
collect and store data that can be useful for them in the future. The data can help them to
understand the present position of the company in the market and the area that needs to be
improved. The data analysis can help the Global Grange Ltd to determine the satisfaction
level of the customers and develop the services accordingly.
Technical knowledge: The leaders must have certain technical knowledge so that
they can help the employees to understand their roles and responsibilities. Technical
knowledge can also help the leaders and managers of Global Grange Ltd. to enhance the
problem solving techniques that can help them to implement change efficiently.
Soft skills are the skills that are not appreciated if present but their absence can have a
negative impact on the functionality of an organisation. The soft skills that the managers and
leaders need to have are as follows:

Communication: Leaders and managers need to communicate properly so that
employees understand the goals and objective that is desired to be achieved. The change that
needs to be implemented in the concerned organisation due to the technological factors can
also be executed with the help of proper communication. Technologies like social media can
help the managers and leaders to facilitate the employees with proper communication that can
help them to maintain the quality in the services.
Motivation: The employees need to be properly motivated so that they can feel
engaged in the services they perform for the organisation. The managers and leaders of
Global Grange Ltd are responsible for proper motivation of the employees. The motivation
can be monetary and non-monetary that can be provided by the leaders so that they can
maintain the quality of the services. The workforce can be an essential factor that can help the
company to sustain in the highly competitive market.
The skills that are required for leaders and managers in the future for the service
industry are as follows:
Appropriate knowledge of technology: as opined by Goodall and Stoller, (2017), the impact
of technology has been significant in the service industry like hospitality and tourism sector.
In the future leaders and managers need to innovate technologies and implement them in the
services of Global Grange Ltd. The new technologies can include computer skills and data
analysis with the help of big data. In order to train the employees so that they can adapt to the
new techniques of performing service the leaders and managers need to have proper
knowledge in technologies. This can help them to communicate with the employee in the
context of improvement in the services.
Integrating workforce and technology: The implementation of technologies requires the
employees to learn the new methods of services that can enhance the experience level of the
consumers (Heckmann et al.,, 2016). It can be a prime responsibility of the managers and
leaders of the concerned company to monitor the changes and performance of the employees
that can be affected due to the changes that are made. In the future it can be very essential to
integrate the employee with the technology together for the improvement in the services of
tourism and hospitality sector.
Innovating solution for issues: In the modern world the issues that can arise may need new
solution. Leaders and managers need to innovate new types of the solution to the situation
that can arise (Trkman et al., 2015). In this context, leaders and managers of Global Grange
Ltd. in order to improve the experience of the customers they need to incorporate digital

technologies like mobile applications and virtual firms that can help them enhance the quality
of the services.
There are several trends in the sector of tourism and hospitality that needs to be
considered by the organizations like Global Grange Ltd. As opined by Hansen and Ferlie
(2016), the most significant trend is the digital era in the technology that can be used as an
advantage to enhance the level of service provided by the organisation to the consumers.
Emergence of new technologies like applications for online payments, online booking
applications and many more which the organisations can use such technologies to reduce the
burden of services on the employees. Online booking application can help to reduce long
durations of time that the customers have to spend in order to check in the hotel room. This
can allow the concerned organisation to improve the current services they provide to the
consumers. Moreover, social media can be an opportunity for the company to enhance their
customer base and profit margin. This requires proper marketing strategies that can be
incorporated by the managers of the organisation.
LO4
Different service organisation change management system and leadership in
implementing the change
Change management is stated as an essential approach that is needed by a company
associated with service industry so that needs and requirements of customers can be satisfied
in a proper manner. Change benefits a firm in carrying out alterations to their present working
methods so that better outcomes in future can be gained. Change management process is
referred to the sequence of activities which is followed by a project leader or change
management team so that expected changes can be carried out in a proper manner. In context
with Hotel like Global Grange Ltd., it is the duty of both leader and manager to carryout
required changes in a proper manner (Grönroos, 2016). In this context they posses varied
responsibilities and roles so that change management system can be implemented in a proper
manner.
Roles of service manager during change implementation:
 Role of service manager is to give training to their employees as per requirements so
that carried out change can be positively adopted by employees without fearing job
loss.