Leadership and Management in the Service Sector: A Premier Inn Report

This report provides a comprehensive analysis of leadership and management within the service sector, specifically focusing on Premier Inn hotels. It begins with an introduction to the importance of effective leadership and management in service industries, followed by an examination of classical management theories, including bureaucracy and scientific management. The report then delves into the roles of leaders and explores various leadership styles such as autocratic, democratic, and laissez-faire. A comparison is made with the management and leadership styles of Rosewood hotels. The analysis extends to the internal and external factors influencing Premier Inn, including strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, environmental, and legal factors. The report also discusses current hard and soft management skills and anticipates the future leadership and management skills required by Premier Inn. The report concludes with a summary of the key findings and recommendations, highlighting the importance of adapting leadership and management strategies to the evolving demands of the service industry.

Leadership and
Management for
Service Industries

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
P1 Classical management theories\.............................................................................................3
P2 Role of leader and different leadership styles........................................................................4
P3 Management and leadership styles in Rosewood hotels........................................................5
P4 Internal and external factors of Premier Inn Hotels...............................................................6
P5 Current management and leadership ‘hard’ and ‘soft’ skills..................................................8
P6 Future leadership and management skills required by Premier Inn hotel..............................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Introduction
Leadership and management in service industries like hotels and many more are
consider with more responsibilities because their whole business are depend on efficiency of
services which they provide to their customers (Konovalova and et. al., 2018). It is important for
this industry to manage their employees well and arrange resources properly to achieve success.
Leadership is the skill where a leader work with employees and make decisions for employee’s
benefits and on the other hand management is the skill where managers take decisions for
organisational benefit and assign task related to employee’s skills. Premier Inn hotel is founded
by its parent company Whitbread in the year 1987. It is headquartered in Dunstable, England,
UK. The following report covers classical management theories in service sector, role of leader
and different leadership styles, internal and external factors impacting upon hospitality sector,
hard and soft management skills, future management skills, comparison of two different
companies from same sector to identify the change management impact upon them.
Main Body
P1 Classical management theories\
Bureaucracy management theory- It defines rules of the organisation, relationship
between management team and employees, procedures of doing work and rigid hierarchy of
senior authority (Franco and et. al., 2020). Few features of this theory are explained below in
context of Premier Inn hotel-
 Division of work- Here, the work is divided according to the specialization of
employees. In context of Premier Inn hotel, they use this method where the hire
employees according to their specialization needs like marketing specialist is assigned in
marketing department and given the work of marketing field only.
 Hierarchy- Here, the jobs roles are positioned in a vertical way from top to bottom. This
method is essential to identify who will report to whom in organisation (Elfimova and
Radishauskas, 2018). In Premier Inn hotel, every department has a manager like
marketing manager, finance manager, HR manager and many more which manage their
department employees and their department employees report to these managers and then
this manager’s report to another senior authority.

Scientific management theory- This theory assumes that there is only one way doing
work effectively. Here, the main focus is on increasing productivity rather than benefits to
employees. This theory suggests that while increasing the efficiency of workers the productivity
of organisation automatically increased (Gupta, 2019). In Premier Inn hotel, they pay attention to
their productivity by accepting booking from clients and serving those best facilities but there is
no need to put much work load on employees for increasing productivity.
P2 Role of leader and different leadership styles
Roles of a good leader in context of Premier Inn hotel are explained below-
 Motivate and inspire employees- This is the main role of a leader to motivate their
employees to perform well and influence them to achieve organisational goal for the
benefit of both, organisation as well for them. Premier Inn leaders motivate their
employees by rewarding them for their good work and providing them training for their
bad performance.
 Representative of workforce- This is another role of leaders. Leaders are assigned for
employees only so that leaders can represent employee’s needs and wants in front of
senior authority.
 Improve the performance of workers- Leaders have eyes on each worker and keep
records for their workers that which worker is performing well and which are not (Pham,
Tučková and Jabbour, 2019). In Premier Inn hotel, their leaders are the main reason to
increase the performance of their employees because they recognize low performing
people and ask them for their bad performance. In case they found any obstacle from
organisational side then they remove it and in case they found lack of skills in employees
then they send them for training session.
Some of the leadership styles are explained below-
 Autocratic leadership style- This leadership style states that all decisions are taken by
leader alone and there is no involvement of employees. This type of leadership style is
beneficial in quick decision making process where urgent decisions are made in less time.
 Democratic leadership style- This is that leadership style where leaders and employees
work together to make a single decision. Here, leaders involve workers suggestions in
every decision which they made (GORYUSHKINA and et. al., 2019). In Premier Inn
hotel they take suggestions from their employees to make any changes in their hotel

because employees are the person who directly interact with customers. Hence, they
know that what their customer expected from their services. That’s why to increase the
overall efficiency of hotel; they involve employee’s suggestions and appreciate them for
their good suggestions.
 Laissez- faire leadership style- This leadership style involve fully employees
participation only. Here, leaders put all responsibilities on their employees to take
decisions. In context of Premier Inn hotel, they allow this leadership style in very few
decisions like solving client’s issues and problems. Here, they allow their employees to
handle their client’s issues and problems alone without taking senior authority
permission.
P3 Management and leadership styles in Rosewood hotels
Some of the leadership and management styles are given below-
 Authoritative style- This is that management and leadership style where some strict
rules and regulations are made for employees and in case employees avoid following this
compulsory rules then they get punished and in some cases they even fired out (Rhou and
Singal, 2020). In Premier Inn hotel, their housekeeping department and other departments
who have direct contact with customers have to follow politeness and soft behaviour for
communicating with their customers. Their kitchen department have to prepare food with
full hygienic way.
 Persuasive style- Here, leaders and managers communicate with their employees to
make them understand that how some organisational decision is beneficial for company
and for employees as well. In context of Premier Inn hotel, they conduct meeting where
they invite all employees and managers and discuss their new decisions and states the
benefits of their new decisions to employees. This is how they follow persuasive style in
their hotels.
 Consultative style- This is that style where managers and leaders take the suggestions
and opinions of their employees before taking any decision but the final decision is taken
by manager and leader only by considering all suggestions from employees and studying
the pros and cons of every suggestion (Manning, 2018). In last the suggestion which best
suits the situation will be opted and the employee who provide this suggestion which is
opted get rewarded.

P4 Internal and external factors of Premier Inn Hotels
Internal factors of Premier Inn Hotel-
Strength-
 Premier Inn has a very good brand image for their hotels. Their customers review good
ratings to this hotel for their services and well behaved employees who interact politely
with their clients.
 They are more focused to customer care services and CSR activities. They also maintain
a good relationship with their stakeholders.
Weakness-
 Premier Inn hotel is facing issues with hygienic factors because in a report of 2018 it is
found that their housekeeping departments clean the bathroom with the same towel which
they provide to clients for general use.
 They are also lacking behind in expanding their business globally. They are working in
very few countries as compared to their competitors which again impacted upon their
profitability.
Opportunity-
 They can adopt new decor for their hotels because they have same theme and decors from
last many years. Therefore, it’s a good opportunity for them to have good and attractive
decor for their hotel’s internal looks.
 They are supposed to expand their business after recognising marketing trends of same
industry in other countries. They became successful in entering Germany market and
have good earning business over there and this happen because of their good strategies
and investigation. Hence, they are supposed to adopt another good strategies and
investigation to expand in other countries.
Threats-
 Every company has biggest threat from their competitors (Li and Singal, 2019). Premier
Inn hotel is also having threat from their competitors because their competitors have
strong strategies and good services to attract many customers.
 They are also facing threat from legal rules and regulations because this hotel is facing
issues with hygienic factors and legal laws of UK have punishment for such unlawful

activity. They have got penalty pays for many times for such activities. This will also
result to fall their brand image.
External factor of Premier Inn Hotel-
Political factor- This factor includes political stability, tax policies, trade restrictions
and many others in context of a country. UK is free from trade restrictions. They are having very
few formalities for the international trade of companies which is based in UK. This is beneficial
for Premier Inn to get their raw material from other countries. On the other hand, tax rate is high
in UK which is 19% and they are planning to raise it to 23% in the year 2023. This is hazardous
because Premier Inn has to pay high taxes which cause reduction in their retained earnings which
they get after paying all expenses and taxes.
Economical factor- This factor includes economical condition of a country like growth
rate, inflation rate, unemployment rate and many others (Goh and Jie, 2019). In context of UK,
they are having good economical growth, great infrastructure and their employment rate is also
high which is beneficial for Premier Inn to hire skilled employees. Hence, an economical
condition of UK is favourable for Premier Inn hotel.
Social factor- This factor includes beliefs, values, purchasing power, habit and many
other factors related to the population of a country. In context of UK, their population has good
purchasing power and they likes to purchase good quality of products and services to develop
their standard of living. Hence, this is beneficial for Premier Inn to provide their customers a
good service without bothering about little high prices charged from their customers. On the
other hand there are many strikes on the discrimination on skin colour, religion, politics and
many other factors. This is hazardous for the mentioned hotel because during these strikes they
are required to close their business for few days as per their laws.
Technological factor- It includes the modern and advance technology in a country
(Nicolaides, 2018). In context of UK, they are known for their better technology in the world and
their companies and other sectors are utilizing best usage of their technology for their growth.
Hence, Premier Inn is having advantage from this factor by using advance technological tools in
their hotels for their day to day activities.
Environmental factor- It includes the condition of country from environmental side like
climate, weather, temperature, pollution control, tourism rate and many others. UK has good

tourism rate due to their better condition of climate and weather. This is beneficial for hospitality
industry because tourism will stay in hotels only. Hence, Premier Inn hotel has maximum benefit
from this factor.
Legal factor- This factor considers all legal laws and rules and regulations of a country.
In UK, their hospitality sector laws are made for protecting the rights of employees and to
protect the rights of their customers. One best example of their laws is that they strictly
mentioned that every hotel of UK must furniture which never catches fire and they must have
fire extinguisher at every floor. Another law states that every hotel must provide hygienic foods
to their customers and there are many other laws. Hence, legal factors of UK are favourable for
Premier Inn to conduct their work in discipline.
P5 Current management and leadership ‘hard’ and ‘soft’ skills
Hard skills- These are the skills which required specific knowledge and technical skills to
perform the job (TULSI and JI, 2020). These skills are getting by proper training and a good
level of education. Some of the hard skills of Premier Inn hotel are mentioned below-
 Food and beverage management- It is essential for Kitchen department manager to
have a record of their raw material of food items and how they are getting prepared for
serving to end customers. This skill is gained by proper training and experience in the
same field.
 Commercial acumen- This skill includes business planning and financial management
skills. It is essential for Premier Inn to hire skilled employees who can manage their
financial department and to hire a business consultant for business planning procedure.
Soft skills- Here, most important skills are interpersonal skills (Abdulredha and et. al., 2018).
This skill also requires experience. Some soft skills in Premier Inn hotel are explained below-
 Team leadership- Premier have good leaders who have the quality to handle their team
and their work effectively. They can influence their employees to perform better for their
betterment. Hence, the team leadership require good communication with team mates,
better coordination, good level of supervision and many others.
 Problem solving- Premier Inn have issues and problems like conflicts between
employees, mismanagement for some decisions, problems from client sides and many
others. They solve each issue by their own way like the customer complaints are solved
by their customer care services. The conflicts between employees are solved by their

manager and many others. They have many ways to resolve their issues and problems as
soon as possible for their hotel benefit.
P6 Future leadership and management skills required by Premier Inn hotel
Marketing skill- Premier Inn is lacking behind to select appropriate promotional tool
for their hotels. Therefore, it is essential for them to learn marketing needs for their hotel as soon
as possible because this can impact badly upon their business if they continue to ignore
promotional activities for their hotels and services. Hence, it is essential for them to develop this
marketing skill so that they will get profit. Hence, it is recommended for them to analyse their
competitor’s strategies and other factors to know which promotional tool is used by their
competitors and who it is beneficial for the organisation. This will help them to decide am list of
promotional tools and their application on their hotel to analyse their pros and cons and then
whose pros are more than corns then that promotional tool should be adopted by Premier Inn
hotel.
Internal analysis skill- In context of Premier Inn hotel they are focusing more on their
external factors as compared to internal factors. It is essential for every company to analyse both
internal as well as external factors for the growth of their business. Premier inn has same decor
for many years, there is no change in the strategies and services in few branches of their hotel for
many years and there are many other factors which is creating issues for Premier Inn to grow
well and most of the issues are arrived due to internal factors. Hence, it is recommended for them
to analyse their internal factors correctly and make changes which will directly impacted upon
their productivity and profitability. They are also supposed to analyse the employee’s
performance of those branches which is presented out of UK because Premier Inn hotel focuses
more on those hotels which are presented in UK and ignores the factors related to other branches.
IT skills- Premier Inn has most of the employees related to their service department but
they are lacking behind to hire a good amount of IT experts for their hotels. It is due to their
requirements because recently they did not require much IT skill employees in their hotel but as
the time passes the technologies become advance and according to a article, it is assumed that
many hotels by 2030 will get fully digitalized where robotic employees will work (Bowen and
Morosan, 2018). Hence, for time to time maintenance of these robots they need IT employees.
They can maintain a good network with some good IT experts for future requirements.

Conclusion
From the above information it is concluded that hospitality industry need management
and leadership quality in their working fields to manage customers and employees well.
Different roles and leadership styles of a leader help the hospitality industry to manage their
work according to situation. It is essential for every organisation to analyse their internal as well
as their external environment factors which will impact their business and making growth
strategies according to these factors are beneficial. It is compulsory to have the mixture of hard
and soft skills in hotels to handle client’s issues. Prediction of future requirements and skills is a
good opportunity for hotels to tackle each problem.
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References
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