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

This report provides a comprehensive analysis of leadership and management within the service industry, using the Hilton Hotel as a central case study. It begins by exploring classical management theories and various leadership styles, such as autocratic, democratic, transactional, and transformational, and their practical application within the service sector. The report then examines the specific leadership and management styles employed by Hilton Hotel, focusing on transactional and democratic approaches, and how these styles contribute to achieving organizational goals and motivating employees. Furthermore, it investigates both internal factors, including organizational culture, employees, competitors, and communication processes, and external factors, such as political, social, technological, economic, and environmental influences, that impact management styles and organizational structure. The report also delves into current and future management and leadership skills required in the service sector, and compares change management systems and leadership approaches across different service industry organizations.

Leadership and management
for service industries

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Classical management theories and leadership styles............................................................1
P2 Role of leaders and different leadership styles in service sector industry context................2
P3 Leadership and management styles in Hilton hotel...............................................................3
LO 2.................................................................................................................................................4
P4 Internal and external factor which affect the management styles and structure....................4
LO 3 ................................................................................................................................................7
P5 Current management and hard & soft leadership skills.........................................................7
P6 Future management and leadership skills required by service sector....................................9
LO 4.................................................................................................................................................9
P7 Compare and contrast different service industry organisation in change management
system and leadership.................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Leadership defines as the important function of the management which plays an
important role in maximising the efficiency and effectiveness of the employees work for
improving the overall performance of the firm. Management is crucial part of the every
successful organisation which plays various functions such as planning, Organising, directing
and controlling for accomplishing the organisational goals effectively. The success and failure of
the company is largely depends on its management and leadership ability(Bush, Bell and
Middlewood, 2019). Hilton hotel is a global brand of hotel industry which is founded by the
Conrad Hilton in 1919. Report will present the various classical management theories and
leadership styles and their implementation in the service industry organisation such as Hilton
hotel. Study explores the factors which influence the different management styles and structure
of the service industry. It also defines the future management and leadership skills for the
success of the Hilton hotel.
LO 1
P1 Classical management theories and leadership styles
Classical management theory believes that employees in a service sector do not have any
social needs they only have physical and economical needs. No organisation can gain goals
without having proper management, so management plays a crucial role in an organisation. This
theory helps Hilton hotel in increasing employees' performance and hierarchical structure defines
job responsibilities of employees at different levels. Classical management theories are defined
as follows:
Scientific management approach: It is a well known theory of management because
this approach concentrates on increasing or maximizing productivity. With the help of this
approach, manager of Hilton hotel can easily solve problems or issues related labour. According
to this, manager focus on determinant efforts in such a way by which it can change the system of
management in order to become and make the interest of management and employees same. This
style can easily help the hotel in order to achieve their determined goals (Vittikh, 2015). It is
very effective approach because with the use of scientific techniques it can raise overall
productivity.
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Bureaucratic approach: This theory can be defined as a systematic formation of an
organisation which has been designed to increase efficiency and effectiveness of employees.
This approach has some characteristics as it is specialized in division of labours by focusing on
hierarchical authority structures. With the help of this approach, manager of Hilton hotel can
make beneficial themselves because in this type of approach employees tend to obey all the
instruction of their supervisor This reduces the chances of errors and mistakes in work and also
increase their effectiveness.
Administrative approach: This theory believes that a manager should focus on
organisational management as a whole and should also consider behavioural and human factors
in the management (Khorasani and Almasifard, 2017). This approach has some management
practices which includes planning, forecasting, coordinating, organizing, commanding and
controlling. With the help of this approach of classical management theory, manager can focus
on coordination of the work by which employees can contribute their major part in developing
hotel.
P2 Role of leaders and different leadership styles in service sector industry context
There are various leadership styles which are being used and followed in service sector
industry. Some leadership styles are democratic, autocratic, transactional, transformational,
strategic etc.
Autocratic leadership: Autocratic style is an extreme way of guiding and leading
employees of service sector industries by powering them. In this style authority is in the hands of
one person only. This type of leaders do not give opportunity to their employees to take
participate in decision making process. This style is chosen in emergency situations where
leaders feel decisions need to be made quickly and members of the company are not trained and
able to take decisions.
Democratic leadership: It is another style of leadership which are being used in service
sector industries (Asrar-ul-Haq and Kuchinke, 2016). It is just opposite of autocratic. In this type
leaders give opportunity and involve employees in their decision making process but maintain
the concluding and final decision making authority. This type of leaders have a high degree of
consultation with their staff members. It leads higher productivity and sales as all employees of
an organisation feels motivated and satisfied.
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Transactional leadership: This type of leaders do not focus on future growth but they
concentrate on present process. This type of leaders in service sector industries motivate their
employees by both rewards and punishments. The main aim of using this style is to increase
efficiency of established procedures and employees by motivating them. Transactional leaders
are expertise in setting goals and articulate them among all the employees that what leaders
expect from organisational members and which manner they will be rewarded for their
commitments and efforts.
Roles of leadership
Maintain coordination: The important role which is played by leader of Hilton hotel is
to maintain cooperation among all the employees. It is important because it supports them to
maintain effectiveness and an effective communication.
Setting objectives and take actions: It is another role of leader to set objectives of
Hilton hotel with initiative actions. It undertakes various activities which helps them ito deal in
different situations and also in decision making process.
P3 Leadership and management styles in Hilton hotel
There are various leadership and management styles but Hilton hotel uses transactional
leadership style and democratic management style which make them able to achieve their goals
and motivate their employees effectively.
Transactional leadership style: Hilton hotel uses and follows transactional leadership
style because it believes that it is the best style of supervising and managing employees and their
performance. Main aim of using this style is to motivate & guide employees in the direction of
established goals by introducing them all the roles and requirements. Leader of Hilton hotel
believes that negative reinforcement and positive actions are two main important tools for
effective managing organisation as well as employees. They also use their negotiation skills in
order to attain their management goals. There are mainly 4 components of this leadership style
such as intellectual stimulation, individual consideration, inspirational motivation & idealized
influence. All these components helps leader make them able to take right decisions.
Management styles
Democratic management style: Hilton hotel uses democratic management style in order
to manage employees by motivating them. Democratic manager is high in openness which
posses a higher degree of ideas and intellectual curiosity. They are more likely to try something
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new for achieving results (Fiaz, Su and Saqib, 2017). The main aim of Hilton to use this
management style is to decrease labour turnover. This manager involves and give opportunity to
their employees for being in a part of in decision making process which increases their morale
and self-esteem.
Participatory manager of Hilton hotel of service sector industry try to put their extra
efforts in order to gain feedbacks and inputs from their subordinates and co-workers. They
involve all members in their decision making process in order to take different suggestions and
ideas for making their decisions powerful and effective.
LO 2
P4 Internal and external factor which affect the management styles and structure
Management styles plays an important role in influencing and guiding people towards the
effective attainment of organisational goal. Styles of management are affected by the internal as
well as external factors of the firm. The Hilton hotel follow the divisional organisational
structure which affected by the internal and external factor of the firm(Booth, 2015).
Internal factors:
It includes those factors which acts under the control of the company. The management
styles and structure of the Hilton hotel is affected by the various internal factors of the hotel such
as communication process employees, culture and competitors.
Culture: The organisational culture can be defines as the collective behaviour of the
employees of the organisation. Hilton hotel management follow the autocratic management style
which affected by the organisational culture because this management style require the culture in
which every one given the chance to participate and exchange idea towards the attainment of the
organisation. If the culture of the organisation are not maintained properly, it will affect the
management structure of the Hilton hotel because it follows the divisional organisational
structure in which every one work with some level of authority which requires the better
coordination among all the employees(Zinovieva, 2016).
Employees: Employees are defines as the important assets of the every industrial
establishment which work towards the attainment of the business objective of the firm. The
management style of the Hilton hotel such as autocratic is affected by the behaviour of the
employees because it requires the higher level of employee participation in terms of sharing
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values, knowledge and suggestions in the decision making process. The management structure of
the Hilton hotel is also affected by the employees because it provides the some authority to
employees for taking better decision at the work place and employees are not able to take better
decisions then it will affect the organisational structure of the Hilton Hotel(To, Martin Jr and
Billy, 2015).
Competitors: It has great impact on the management style and structure of Hilton hotel
in terms of achieving the desired level of results. Competitive companies always trying to stay
and go ahead from the competitors which can be possible only through utilising the effective
management style and structure of the company.
Communication: The success of the every organisation is largely depends on its
communication system and it has great impact on the management style of the Hotel Hilton. The
autocratic manager of Hilton creates the place where every one can participate in the decision
making process and in this situation if communication process have the various barrier it will
result in decreasing the productivity of the firm. Organisational structure of the Hotel Hilton is
affected by the communication process because divisional organisational structure of the Hotel
Hilton is requires the clear two way communication procedure at the work place and if
communication process have the barriers it will result in decreasing the overall performance of
the Hilton hotel(Olins, 2017).
External factors –
It includes those factors which occur outside of the company such as political, social,
technological, economical and environment. All of these factors are beyond the control of the
Hilton hotel and has great impact on the management style and structure of the hotel Hilton.
Political factor: it includes the government law of the business and business –
government relationship of an organisation. The management styles and the structure of the
Hilton hotel is affected by the political factor because it includes the changes in the laws. For
example a law require by the Hotel Hilton to reduce the carbon foot print may put the pressure
on the management styles to take decision about that and also produce the environment friendly
products(El Talla, 2018). The organisation structure can be design under the rules and regulation
of the government which is affected by the political instability because if government policies
are change then Hotel Hilton also need to develop its management styles and structure which
consume lot of time and money of the firm.
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Social factor: Management style and organisational structure is affected by the social
factors because it includes demographic status and trends, work ethics and personal values. All
of these factors affects differently the management styles and structure in terms of accomplishing
the business objective of the Hotel Hilton. The social environment of the each country is unique
and organisation need to set their management style and structure accordingly for reaching the
desired level of results from the market place. The understanding of unique social environment
of the every nation assist the management style and structure to plan for the future and design
products and services for customers(Bryson, 2017).
Technological factor: This factor of the external environment has the most dramatic
impact on the management styles and structure of Hilton hotel. As the market can change
continuously and overnight, the management needs to design and develop the style and structure
of the Hotel Hilton in the way in which it will the company in a flexible position to adapt with
the technological changes. The management styles and structure is affected by then digital
technology advancement because it requires a new type of managerial, diplomatic, social skills
and a concomitant need for a new type of decision making process which will not be
accommodated by the existing organisational structure(Booth, 2015). Technological change will
force changes in basic managerial functions of the Hilton Hotel. For improving the productivity
of the firm manager must be careful about the dimensions of the technological advancement and
the investment decision must be accurately in new digital technology and they must be adaptable
to the Hilton hotel. Technology has always been essential to creating the greater customer value
at lower cost and it is recognised as the infallible formula for profitable growth of the Hilton
hotel. The management style is created by the Hilton Hotel in accordance with the technological
advancement.
Economic factors: Economic dimension of an organisation is the overall status of the
Hotel Hilton. It includes the various factors which affect the management styles and structure of
the firm such as inflation, interest rates and unemployment. During inflation company needs to
maintain its management styles and structure in a manner in which company pay more for its
available resources and to cover the higher cost of the Hilton hotel. When interest rates are high
customer are less willing to borrow the money which affect the productivity as well as the
management style of the company because in this situation company its self most pay more when
it borrows. The unemployment element of the economic environment has great impact on the
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management styles and structure of the hotel Hilton because when unemployment is high, the
manager of the Hotel is very selective about whom it hires.
Environmental factors: Management style and structure of the Hotel Hilton is affected
by its environmental factor which includes laws related to reducing carbon foot print from the
environment, in this situation autocratic manager of the Hilton needs to take the decision about
the global warming and other environmental issues at the global level and design the
organisational structure accordingly. Manager of Hotel Hilton meeds to follow the environmental
rules and regulation for improving the brand image of the company(Amuna, Al Shobaki and
Naser, 2017).
LO 3
P5 Current management and hard & soft leadership skills
Current management of Hilton hotel:
Hilton hotel operates in hospitality sectors so it is important for it to expand their
operations in various locations. It drives environmental and positive social change in different
operation in community. Partnership of this in South Asia help to deal in different areas.
There are mainly 2 types of leadership and management skills that can be used by Hilton
hotel. There is a need of balancing and maintaining soft & hard leadership power which requires
more self awareness in the leader.
Hard leadership skills: Hard skills are generally rule based that includes passionate,
work ethics and are the combination of abilities and specific knowledge which is required to lead
employees.
Critical thinking: Critical thinking is hard skill by which the leader of Hilton hotel can
recognize potential workers, evaluate situations and also can identify potential issues. There are
various variables that effect and influence decision making process. It is very important for
leadership to have this ability because sometimes leaders have to face more complex situations
and decisions.
Soft leadership skills: Soft leadership skill are important for the soft power part like
communication, vision, emotional intelligence, flexibility, team work etc. All these skills help
leader of Hilton hotel. Vision is the main skill and ability which helps them to inspire employees
for achieving goals for the future (Matteson, Anderson and Boyden, 2016). Communication is
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other main soft skills which put a positive impact on listener. As a leader it is important to have
the ability to clearly explain to employees about organisational goals and policies. Some soft
skills of leadership are as follows:
Communication skills: Communication skills includes active listening, explaining,
expressing etc. For removing barrier of miscommunication in the growth and success of the hotel
the leaders should establish a steady and effective flow between their staff members and
themselves. Active listening skill helps leader from distracting by other thoughts and with this
skill they also can make the best decision.
Emotional intelligence: It is the ability to manage and understand feelings and emotions
of Emotional intelligence is also includes in leadership soft skills which includes discipline &
empathic capacity that helps leaders in order to attract others. Leaders who have high degree of
emotional intelligence they know the feelings and emotions of their employees. It has 5 key
elements such as self regulation, motivation, self awareness and empathy. Leader of Hilton hotel
posses this skill. Empathy and this skill make them able to put themselves in other's situation. It
is beneficial because it supports them to develop their team's loyalty.
Management hard skills:
Networking: It is hard skill as it is critical and difficult for manager to work across
departments of hotel such as administration, supply chain, distribution etc. Coordination with
other employees of other departments in order to develop strategies and implement plans. This
skill plays an important role in service sector industry because all functional departments are
interrelated. The manager's ability to network and maintain working relationship among
employees and across the hotel helps them in future growth.
Management soft skills:
Soft skills of management can be defined as the personality traits, behaviours and
attitudes which is essential at workplace in order to manage employees and organisation.
Team work: Team work is the ability of manager of Hilton hotel to stimulate all the
employees to perform together. Team work in the main successful key to attain growth and
development. This skill of management helps employees to come together and work towards a
common goal. It increases the efficiency of manager as well as of employees by completing
more complex and critical tasks.
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Problem solving skill: The most important responsibility of manager of Hilton hotel is to
solve problems of employees. It is important because it crates various problems such as conflicts,
labour turnover, dissatisfaction etc. The success of hotel is depends upon managerial problem
solvers. It makes able them to guide members of team towards achieving goals by eliminating
frustration, distress and misunderstanding (Ravindranath, 2016).
P6 Future management and leadership skills required by service sector
Future leadership and management skills: Leaders and managers of Hilton hotel have
various skills and styles which make the able to develop and lead effectively. They have some
weaknesses also which creates problems at workplace. For future development it is required for
the hotel to have following skills:
Delegating: Delegation is also important which makes an individual able to take too
many tasks at their own. For assigning roles and duties to employees according to their ability, a
leader should posses this skill. There are some skills which can make a leader delegator includes
accepting feedbacks from peers, employees, allotting resources for workers etc. With the help of
these skills and ability, leader can understand the thinking and opinion of employees and can
make a future growth (Kapoutsis, Papalexandris and Thanos, 2016).
Language proficiency: Language proficiency can be defined as the ability to use
language in real world situations. It is important for interacting different types of customers and
employees from different states. With the help of this skill and proficiency, manager of Hilton
hotel can make future growth. It also makes them able to satisfy social needs & limited work
requirements.
LO 4
P7 Compare and contrast different service industry organisation in change management system
and leadership
Change management system cab be defined as the quality of changes. The main aim of
this system is to conduct a standardise methodology in order to handle all changes and make
changes for development. In order to overcome resistance, company requires changing their
system. It can be difficult because it leads a disruption of a stable situation. Hilton hotel follows
Kotter's 8 steps model in context to change management system. On the other hand Marriott
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