Leadership and Management in Service Industries: Unit 5 Report

This report analyzes leadership and management principles within the service industry, using the Savoy Hotel as a case study. It begins by exploring classical management theories, such as the talent management theory, and their application in the service sector. The report then delves into the roles of leaders, various leadership styles (including situational and system leadership), and organizational culture, highlighting the importance of coordination, resource investigation, and motivation. A review of past, present, and future management theories, including classical, administrative, and scientific approaches, is provided, alongside a comparison between managers and leaders. The report also discusses motivational management, specifically the Herzberg Two-Factor Theory, to analyze employee satisfaction and dissatisfaction. The report also covers the internal and external factors influencing management styles, current and future management leadership skills required in the service sector. Overall, the report offers a comprehensive overview of leadership and management strategies tailored to the service industry, aiming to improve organizational productivity and business performance.

Unit 5 - Leadership
and Management for
Service Industries

Table of Contents
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Different classical management theories and application in service industry........................1
P2 Role of the leaders and different leadership styles.................................................................3
P3 Review the management and leadership style........................................................................4
Task 2...............................................................................................................................................5
P4 The internal and external factor that influence management styles.......................................5
Task 3...............................................................................................................................................6
P5 Current management and leadership hard and soft skills.......................................................6
P6 Future management and leadership skills required by the service sector..............................7
Task 4 (Covered in Poster)..............................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCE................................................................................................................................11

INTRODUCTION
Leadership and management are considered as activities that are required to manage the
performance and functions effectively. Leadership is the process of providing guidance and
supervision to people who are working in an organisation. Management is the needed function
that involves planning, organizing, directing, and controlling the functions which are important
to run the business and increase productivity (Karp, Filstad and Glomseth, 2019). For
understanding leadership and management, Savoy Hotel has been taken that is a luxury hotel
located in London, England that provides different services. This report covers understanding
leaders and managers who help understand the needs of their employees and customers in the
hospital industry and manage the performance. This report covers different topics such as
classical management theory and leadership styles, factors that influence management style and
structure in the services industry, and current and future management leadership skills for the
service industry.
Task 1
P1 Different classical management theories and application in service industry
Classical management theory – The basis of the theory is on the belief that employees
who are working in organisations have only physical and economic needs. This does not take
into account job satisfaction and social needs that can help to increase the workings and maintain
the business. This theory is used by Savoy Hotel to fill the economical and physical needs that
can help to increase the organisation productivity. This is past management theory which used
by organization to get the work done from employees by filling their needs that can help to
increase the organizational image (Mousa and Ayoubi, 2019). In this management of chosen
organisation provide them food, shelter, water and other basic needs that motivates then in
service industry and ready to work more. Other than this, economical needs of service staff also
be filled by management by offering them fair wages and bonus that inspire them to complete
workings. Therefore, this theory helps Savoy hotel to run it optimally and increase the service
range.
Talent management theory – This is considered as a systematic approach, determining
the individual characteristics and skills that use to take the challenges and changes in their
organization so all working can be done in a certain time. For example, employees of Savoy
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Hotel are skilled and talented who are working in organisation and providing good services to
customers. This involves the following steps:
 Attraction: This step is used by the management of Savoy Hotel who provides
information and attracts the employees regarding organisational goals and period that is
required to be done.
 Identification: This step is used to identify what steps and employees can accept the
challenge so time can be started at right time.
 Development: After identifying, the management of Savoy Hotel are providing training
and development program to employees so they can work and increase their capabilities
to perform well.
 Engagement: This step is used to involves employees and employers in working and
completing a task. Such as employees of Savoy Hotel collaborating and engaging in work
and attain goals.
 Retention: Employees who are working in Savoy Hotel needs to retain the employees
and getting the work done and maintain good performance.
Deployment: The managers of Savoy Hotel are performing this task by brining resources in
organisation collectively and used them to attain the business goals.
P2 Role of the leaders and different leadership styles
Organisational Culture:- This refers to the system of sharing of ideas, values, norms, and
ethics that are important in organization and maintain a good performance so the task can be
done and increase productivity. In context to Savoy Hotel, leaders are understanding employee's
problems and performing their actions effectively so work can be managed. Handy culture
theory is used by the chosen organisation according to the situation that helps to solve the
specific problems and develop the workings.
 Power:- This power is related to one person who has the authority and power to make a
business decision and perform the task (Seddon, 2019).
 Role:- This means the roles and responsibilities of employees which are delegated by
management between employees for completion and attainment of a task.
 Task:- This culture states a task that should be completed at certain times by maintaining
coordination and proper communication that helps to maintain good performance.
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 Person:-The management of organisation should focus on the person and their
capabilities by updating skills that can help to maintain activities and attain the goals.
Savoy Hotel is following the task culture that is appropriate culture can help to complete the task
and managing the performance. This can help to increase organisational productivity and
business performance.
Leadership Styles:- Leadership style refers to aspects that are used by management in
order to work and accepting the challenges for getting work done and managing the
performance. In context to Savoy Hotel, different leadership styles are uses by management
according to time period and situation that are as defined:
• Situational:- This leadership style is related to a situation that arises suddenly in the
organisation and needs to handle for managing and controlling the activities. Savoy Hotel,
leaders have the option to use this leadership style whenever a typical situation arises that can
help to perform well and increase productivity (Jha, Balaji, Ranjan and Sharma, 2019).
• System:- This leadership approach is systematically activities that need to perform and
instructions are imposed by managers to work under a definite system that helps to complete the
task and manage the performance. The leaders of Savoy Hotel are working properly and
systematically and provide all service to customers that attract and increase the performance.
The role of leader in Savoy Hotel are as defined:
Coordinator – This is main role which is required in every organisation that states all
employees should be coordinated with all that can help to understand task and perform it well. In
Savoy Hotel, leader is playing a role of coordinator who maintains an effective coordination with
employer and all employees so their problems can be resolves and provide good services.
Resource investigator – This role is mainly uses by leader to investigate and allocate the
resources between employees which are available in organisation that can help to increase
workings. In Savoy Hotel, leader gather the resources and allocate them between employees so
they can perform their responsibilities effectively and increase the performance.
Team worker – In organisation number of employees are working who are managing by
team leader that helps to accept challenges and increases profitability. The leader of Savoy Hotel
is working under the role of team leader or worker who participate in activities and guides them
how to work that completes working effectively.
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Motivator – The another role which plays by leader of Savoy Hotel is motivator who
understand needs of employees and provide bonus, direction, incentives and appraisals that
motivates and increases organisational productivity.
Innovator – The leader of Savoy Hotel bring new process, procedure and technology to
make easy workings that influence employees and increases business performance.
Therefore, different roles are performing by leader of Savoy Hotel that can helps to work
more and productively. This increases business performance by managing all activities and
motivating staff.
P3 Review the management and leadership style
In a business organisation different theories and functions are important that need to follow
and manage the activities effectively. Description management and leadership theories in
present, past, and future period are as defined:
• Classical management:- This is past management and traditional theory that is used by
organisation by filling their basic and economical needs. In the past period, this was adopted by
the management of the Savoy Hotel that helped to manage the activities and profitability.
• Administrative:- This is a present leadership theory that is attempting by the
management of Savoy Hotel in order to get completion of tasks and allocating the resources
properly which helps to maintain good performance (Reyes, 2019).
• Scientific:-This refers to future management that is given by Fredrick Winslow Taylor,
uses by organizations for the purpose of accepting the challenges and changes in organization
and getting the task complete at the right time. Savoy is suggested to use scientific management
theory in order to provide a better quality of hotel products and services which can help to
manage the performance.
The different types of leadership style which are uses by Savoy Hotel that are as explained:
Authoritarian Leadership – This leadership style is uses to impose expectation and define
outcomes. In this, one person have authority to make decision and getting the work done from
all that can create conflicts. This can be use by Savoy Hotel in chain of command and
implementing the plans in expect of getting results.
Participative Leadership – This is effective leadership style in which leaders are involves to
make decision by engaging in work and contributing in workings. This can be use by Savoy
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Hotel, leader participate and contribute in organisational activities that increases employees
satisfaction and job satisfaction effectively.
Delegative Leadership – This can be defined as strong and successful strategy that can be
used by organisation to delegate the work between employees and initiate the work that can
motivate employees to work more. If Savoy Hotel uses this, then advantages are getting by
experienced employees who bring innovation and creation in their organisation and increase
the workings.
From the above participative leadership style is uses by Savoy Hotel that can help to
increase the business performance and complete task effectively. In this, leader participate in
business activities which are related to hotel and provide good services to customers that
increases business performance and brand image.
Comparison between manager and leader:-
Basis Leader Managers
Meaning This means a person who
understand the employees
problems and provide proper
guidance and support to work
effectively.
This is powerful; person who have
right to take all decision and
perform function planning,
organising, directing and
controlling.
Characteristics and skills They are motivator, challenge
acceptor, problem solving
skills, work done and
leadership skills that is
important to run.
Managers of Savoy Hotel is having
management characteristics, risk
taking, resilience, decision making
and other characteristics that can
help to operate the business.
Roles Leaders of savoy Hotel are
playing role of inspirer,
motivator, task finisher and
coordinator which helps to
attain the business goals.
The role of managers are set vision,
goals, objectives and delegating the
roles of employees that can help to
perform well and increase
productivity.
Motivational Management:- This theory is important for all organization as it increases
the confidence level of management and capabilities that helps to complete the task and
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workings at a certain time and manage the performance. Different theories such as Maslow,
Herzberg, McClelland, and etc. are uses to motivate employees. Savoy is selected the Herzberg
theory to analyze the theory management and manage the activities (Widjaya, Prastyari, and
Armanu, 2019).
Hertzberg Two Factor Theory:- This motivational theory is used by an organisation to
analyze the satisfaction and dissatisfaction level of workers which helps to perform the business
activities and increase the organizational capabilities. The management of Savoy Hotel are
analyzing the motivational level of employees by applying this theory that is as defined:
• Motivator:- This involves motivational factor that is used by Savoy Hotel to motivate
employees by providing a bonus, certificates, incentives, promotion, and performance appraisals
that helps to perform well.
• Hygiene:- By using hygiene factors the Savoy Hotel analyses the satisfaction and
dissatisfaction level of employees which can help to manage the activities and motivate them by
filling their needs (Suriyankietkaew, 2019).
Task 2
P4 The internal and external factor that influence management styles
Internal factors:
Complex business demands and alignment: This is an important factor that uses by an
organization to manage the effective business process by completing demand and aligning the
activities. In Savoy Hotel, managers are analysing the demand and align with the business
process that influences management style as they encourage collaboration and manage the
performance by making effective teams (Palalić and Bičo, 2019).
Complex financial and investment management: While running a business it is
analysed by management to find out financial and investment activities so activities can be
performed efficiently and manage the performance. In the context of Savoy Hotel, management
fills financial and investment needs that influence management style properly and increase the
performance.
Multicultural and international workforce: In Savoy Hotel multicultural and
international employees are working who have different skills and abilities to perform well and
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increase organisational productivity. This influences as a proper treatment to customers and
increases their satisfaction level which manages the performance.
Employee engagement and commitment: This is related to engagement and
involvement of employees in organisational activities which helps in Savoy Hotel that can help
to increase the business performance and increase productivity (Shilangu, 2019).
External Factors:
Managing diverse talent: This is related to external factors which use by organization to
manage the talent of employees that can help to manage the work and increase the organisational
production (Hinga and Letting, 2019).
Stakeholders and customers Globalisation: To run the business, stakeholders and
customers are those people who are playing significant roles as they invest money to receive
better quality of products and hotel services which can help to increase the brand image. This
may influence the leadership style as if employees and management of Savoy Hotel are not
providing good quality of products then customers would switch towards other brand than
affected business negatively.
Digital and innovative disruption: This is important for the organisation to use the
digital and innovative disruption that helps to accept the challenges and maintain good
performance. For example, Savoy Hotel is using Airbnb, Homestay, and Onefinestay mobile that
helps to develop the organisation and increase business performance in a competitive business
environment. In this organisation is introducing new services such as chat bots, robot delivery
and home stay facility as customer wants that increases satisfaction level and expand business
effectively.
Task 3
P5 Current management and leadership hard and soft skills
Hard skills :
Management skills: Skills are important for employees which helps to accept challenges
and changes in organisation for the purpose of increasing organisational productivity. In the
context Savoy Hotel, managers are having different skills that can help to increase organizational
productivity that is as defined:
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Team dynamic: The employees and management of Savoy Hotel are having team
dynamic skills that can help to accept the challenges and increase organizational performance.
This increases the Hotel performance as all team member accepts challenges and work
effectively.
Planning: This is important skills require to have management of Savoy hotel for the
purpose of making plans, organizing activities, and increasing organisational productivity. The
management share plans with employees and provide them training so they can organise their
functions and activities properly.
Decision making: For organisation, it is important to make a decision which is taken by
managers in order to perform all functions and activities that increase productivity and
profitability. In Savoy Hotel, management is having this skills which helps to make decision by
concerning with all and attracts the number of customers.
Communicating: Communication means the sharing of ideas and thoughts that can help
to solve the problems which are facing by employees which increases business activities.
Managing discipline: To having discipline and good culture in organisation can helps to
create the good image in the eyesights of customers that can help to increase profit ration. In
Savoy Hotel, management uses this skills to create good working environment and influence
customers to enjoy such hotel services.
Soft skills
Strategic mind set: This skills is having in very less people that is important to think
innovatively and strategically. The leader of Savoy Hotel is having strategic mindset that
influences employees and assign them task so that all function will be complete on time. This
can help to fill the requirement and make happy customers.
Language: In Savoy Hotel, management is required to have language skills that means
good knowledge of many languages that can help to deal with different culture of customers who
comes from other places and provide them services accordingly. This provide a higher
satisfaction and increases the business performance.
Accounting: The management of Savoy Hotel is using this skills to calculate all
expenses and income that occurs to provide products and services to customers. This can help to
charge the relevant and feasible amount from customers that make happy. This is difficult to find
and increases profitability in case of working properly.
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Machine operation: As Savoy Hotel is adopting new technology and innovation that are
operated with the help of machines. If leader is having this skills then it can manage all activities
and functions effectively and increases the business performance in changing environment so,
goals can be attained.
Leadership skills
Soft skills including communicating: The leaders of Savoy Hotel are communicating
properly as they have soft skills which can help to increase organizational productivity.
Delegation: This means delegation of roles and responsibilities that can help Savoy Hotel
to perform the task and manage the activities in order to completion of a task (Franklin, 2020).
Inspirational motivation: This role and responsibilities of leaders of a chosen hotel is
the inspiration that attracts employees to accept the challenges leading the performance and
managing the activities.
Innovative problem solving: These are important skills that are performing by leaders of
Savoy Hotel by bringing innovative services and management of activities properly.or the
organization to use the digital and innovative disruption that helps to accept the challenges and
maintain good performance. For example, Savoy Hotel is using Airbnb, Homestay, and
Onefinestay mobile that helps to develop the organisation and increase business performance in a
competitive business environment.
P6 Future management and leadership skills required by the service sector
Leadership skills are considered as abilities and capabilities that can help to manage the
work and increase organizational productivity. This skill helps to accept the challenge and
changes in their organization so all tasks can be complete at a certain time and manage the
performance. In the context of Savoy Hotel, management is required to adopt future management
and leadership skills which are required to manage the performance and increase organizational
productivity. Different leadership approaches are uses by the chosen organization that are as
defined:
Situational: This leadership approach states that employers should use this approach for
dealing with situations by choosing the right leadership style for the right people that can help to
manage the performance and maintaining good performance. Savoy Hotel can use this leadership
according to the situation by selecting the right people and increasing activities (Chandolia and
Anastasiou, 2020).
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