Leadership and Management for Service Industries - Analysis

This report provides a comprehensive analysis of leadership and management principles within the service industry, using Topdeck Travel as a case study. It explores classical management theories, including scientific, bureaucratic, and administrative approaches, and their relevance. The report delves into different leadership styles such as democratic and autocratic, examining their roles and impacts. It also reviews participative and autocratic management styles, assessing their relationship to talent management. Furthermore, it examines internal and external factors influencing management styles, utilizing a PESTEL analysis. The report also covers hard and soft leadership skills, future leadership requirements, and a comparison of leadership and change management systems across different service industries.

LEADERSHIP AND
MANAGEMENT FOR
SERVICE INDUSTRIES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Different classical theories of management in service industry............................................3
P2 Leader and their leadership styles role...................................................................................4
P3 Review of management styles................................................................................................5
LO 2.................................................................................................................................................6
P4 Internal as well as external factors influencing management styles ......................................6
LO 3.................................................................................................................................................8
P5 Hard and soft skills of leadership..........................................................................................8
P6 Future leadership skills required in the service industry......................................................10
LO 4...............................................................................................................................................11
P7 Comparison between leadership as well as change management system in different service
industry......................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Leadership is basically the ability and potential of an individual to influence and motivate
their followers within an organization. Management is predominately the procedure for
controlling as well as administering the organizational affairs whether big organization or small.
Leadership and management are interrelated to each other in the sense that the adoption of
correct leadership style by the leaders eventually leads to better management of the organization.
In the service industries, both complement each other and hence are responsible for smooth
functioning of the organization.
Topdeck travel is generally a tour operator agency which started their organization in
2006. the company was established in 1973 and is placed in London, UK. It mainly provides
trips to large number of people across the world and operates in more than 60 countries.
This report addresses the different classical theories of management in service industry,
Leader and their leadership styles role, review of leadership styles, internal as well as external
factors influencing management styles, Hard and soft skills of leadership, Future leadership skills
required in the service industry and comparison between leadership as well as change
management system in different service industry.
MAIN BODY
LO 1
P1 Different classical theories of management in service industry
Classical management theories
This theory is basically based on the assumption that the staff only have the physical as
well as economic needs and thus this theory does not consider social needs. There are various
view regarding the classical management which are different in their own way.
Scientific management
It was given by F.W. Taylor and predominately have the main to improve the economic
efficiency. It stresses that each and every task should be effectively designed in order to replace
the traditional methods. According to this theory, there are numerous ways for doing the
particular task but choosing the best and suitable one eventually increases the productivity of
employees. This theory focusses on analysing the task or problem from every perspective and
thus exploring the various alternative to overcome it. This theory is very significant in the service
industry where it helps in increasing the productivity of employees (Shek and et.al.,2017).

Through the use of this theory, Top deck travel can eventually increase the efficiency of their
employees. The management can provide training to their employees on the scientific method of
performing task.
Bureaucratic theory
This theory mainly emphasizes on performing the functions of organizations under a
well-defined hierarchy and works on the perfect hierarchy. Under this, the organizations have the
rigid relationship of authority-responsibility. Each and every employee are accountable to the
higher authority and thus report their seniors. Besides this, the total amount of work is being
classified into various specialized jobs and every individual's job is divided into well-defined
activities. These type of organizations generally follow rigid rules and regulations and work
according to the strict rules. This also have its significance in the service industry and thus
maintains the decorum in the organization. Top deck travel will be highly beneficial from this
type of their where the specialization will eventually deliver high performance from the
employees. A well-defined structure will help the employees to follow the defined command and
thus will help the to function without friction.
Administrative management
This basically encompasses the well-defined way for organizing the activities in a
systematic manner. This includes division of the labour, hierarchical structure within the
organization. It stresses upon planning, organizing and thus directing the activities ion the well-
structured manner. This theory is very helpful for the organizations to enhance the efficiency of
employees (Shek, Chung and Leung, 2015). With this theory, the management of Top deck
travel can encourage the employees to do their activities in a systematic manner which ultimately
will increase their productivity.
P2 Leader and their leadership styles role
Leadership style is basically the way which the leaders adapt to influence their followers.
In short, they apply a particular leadership style to different scenario. There are different
leadership style like.
Democratic leadership style
This is the style in which the leaders encourage their employees to participate in the
decision-making. In this the leaders seeks input for their employees and thus motivates them to
contribute their innovative ideas. While making the decision about any aspect of the organization

or management, leaders solicit the feedback from their employees and thus makes the final
decision after considering their opinion. The role of leaders in this type of leadership style is to
encourage the employees for participating in the decision-making and hence giving their
innovative idea (Manz and et.al.,2015). They are responsible for explaining the various decision
to their subordinates and thus resolve their objection by considering their perspective. For
example this leadership style will be very helpful for the Top deck travel as this would increase
the productivity of their employees. Like the manager can solicit ides from their employees for
increasing the visitors booking on their website. This eventually would lead to their increase
moral, and they will give their innovative ideas like better marketing. This will not only increase
the employee efficiency but will also enhance the goodwill of company.
Autocratic leadership style
This leadership is basically characterized by applying tight control over the employees. In
this, the leaders influences their employees by exercising the control over them and thus making
the decision Without taking much input form them. They make the judgement based on their
ideas and thus rarely takes into account the advice of their subordinates. The decisions taken by
them is levied on the subordinates and thus are kept under strict supervision. Leader forces their
subordinates to accept the decisions and thus serve as the bossy character. The main role of
leaders in this style is to analyse the every aspect of the problem and thus use their ideas for
making the efficient decision. They are responsible for applying their well through knowledge
and thus manage the work strictly by applying their decisions over the employees. Another role
of this leader is to lead their employees through their efficient decision-making and hence
completing the work on time (Nallusamy, 2016). Customers generally wants the best quality
services from the tour operators at the most reasonable price along with well managed customer
service employees. Thus, in order to fulfil this, Top deck travel needs autocratic leaders who
maintain the proper discipline and hence will strictly control the team member for properly
maintaining relation with customers.
Roles of leadership
The major roles of leaders are
Risk-taker
This is one of the most important role which is played by the leaders of Top deck.
Leaders are mainly concerned with assessing all the types of risks and filter those risks which

will be useful for the organization. In this role, leaders predominately find better ways to achieve
the goals of organization and thus continues to take risks which will be fruitful in long-run.
Innovator
Leaders in Top deck plays the role of innovator where they are continuously engaged in
innovating new ways to fulfil all the demands of customers. The successful leaders are basically
involved in applying brainstorming and discovering creativity ad innovation within various
aspects of business like product, service etc.
P3 Review of management styles
Participative leadership
In participative leadership, leaders basically takes into account the idea so their team
member and thus make the final decision by considering their suggestions. They encourage their
employees to participate more and more in the decision-making and provide their feedback for
the growth of company. The major advantage of this leadership is that it increase the productivity
of employees. When the leaders engage their team member in every decision then their morale
increases due to which they work with more enthusiasm and commitment. On the other hand, the
major disadvantage of this style is that due to the involvement of each and every employee, the
decision-making process becomes slow (Psomas and Jaca, 2016). As the solicitation of feedback
and ideas from every person takes time thus decision are generally taken slow. For example for
increasing the declining number of customers who are booking their travel tickets, the leaders of
Top deck travel will need to adapt participative style where the suggestions from every employee
regarding this will bring out the new tactic for increasing customers. But at the same time, this
would take time and may be their customers might switch to their competitors.
Autocratic leadership style
In this, the leader exercises some degree of control over their team member and thus does
not take into account their suggestions for decision-making. The main advantage of this style is
that it enables fast decision-making. When the autocratic leader involves only few administration
level in their decision and does not consider the feedback of other personnels then the speed of
decision becomes fast as the leader is the only in charge of activities. Apart from this, the
foremost disadvantage of this style is that it eventually reduces the morale of the employees and
thus results in mismanagement. Due to the less involvement of the employees, the employees
tend to become demotivated and hence leads to decreased motivation. For example then c

customers mainly wants the best quality services for the tourism industry which provides them
the best travel experience in reasonable price. To maintain this level of quality and to satisfy the
needs and wants of customers, Top deck travel would need autocratic leader which can through
their expertise takes the instant decision instantly for increasing the quality of services. But at the
same time, due to this the employees may get demotivated as the leader without consenting gives
responsibility to them which might be frustrating for them sometime. Due to this overburden,
they productivity may decrease.
Relation of leadership styles to talent management
The various leadership styles which are being used by the leaders impacts the talent
management in Top deck to a great extent. Talent management is basically the process in which
organizations endeavours to attract and retain the employees. In this context, leadership styles
plays an important role. When leaders will choose the appropriate leadership style which will
motivate employees and will guide them to new direction then they will ultimately want to stay
within organization. For example- If the leaders of Top deck travel makes use of participative
style as per the scenario in which they will solicit feedback and opinion of all employees then
this in turn will motivate the employees. They will feel valued and will work with enthusiasm.
This will decrease turnover rate of the company. It will also help in attracting the candidates as
the company will have established name in market.
LO 2
P4 Internal as well as external factors influencing management styles
PESTEL analysis
Political factors
Political factors generally encompasses the political environment within the organization.
The various political factors that prevails within the country also affect the leadership styles. For
example if the country has high level of corruption and bureaucracy than the leaders would need
to adopt autocratic leadership where there would be strict control over the employees for doing
their work. This factor can affect Top deck travel where the leaders would need to understand the
politics of the country and thus use style to attract customers (Kao and et.al.,2015).
Economic factors
In this, the leaders would be required to have a thorough understanding of the suppliers,
customers as well as competitors for understanding the factors affecting marketplace. For

example Top deck travel would need to understand the products and services provided by their
competitors along with the price at which they offer.
Social factors
For achieving the goals, leaders are required to understand the demographic trend as well
as the cultures of customers to market their products and services. For example Top deck travel
would have to analyse the interest of customers regarding visiting any place and their preference
for understanding the cross culture.
Technological factors
In these factors, leaders generally adapt their management styles according to the
changing technology. The various research as well as development through the technology helps
leader for developing innovative techniques. For example Top deck travel can attract more and
more customers by optimizing their websites and making it convenient for the customers to book
tickets.
Environmental factors
This generally includes the organizational culture and environment. As the organization
contains wide range of people from different culture and values thus this helps leaders to modify
their style according to this in order to avoid the hurting of their values and rituals.
Legal factors
An organization consist of various policies as well as laws which every employee has to
comply thus leaders generally manage their style in accordance with these policies and rules. For
example treating the employees fairly would lead the leaders of Top deck travel to act
accordingly and thus enforce equal power on everyone.
Internal factors
Strength
The main strength of any organization is their employees and workers along with the
market position. This strength helps the leaders to change their management styles according to
the condition. For example the diversity of employees in Top deck travel is their strength thus
their leaders are required to act in accordance with the values of every employee.
Weakness
The main weakness of any organization is the low morale within employees, decreased
productivity, poor direction etc. thus this weakness helps the leaders to overcome them by

creating their own leadership style which eventually increase the efficiency of employees. For
example the decreased productivity within the employees in Top deck travel might affect the
leaders to adopt participative style (Lee, Chen and Lee, 2015).
Threats
The most serious threat to organizations are lack of direction, poor communication,
improper mentoring thus this also affect the leadership style and thus enable the leaders to
change their way of working in order to empower their employees. For example the threat of
poor communication may lead the leader to change from autocratic to encouraging them for
interacting effectively with management.
Opportunities
The major opportunities are improving the quality and managing the workforce diversity
therefore this eventually affect the leaders and impact their way of working. For example the
leaders of top deck travel can utilize total quality management for improving the productivity of
employees and hence their services.
LO 3
P5 Hard and soft skills of leadership
There are basically two types of skills that are present within and individual as well as
required in them for achieving the goals. Hard skills are the one which forms the skill set of the
individual. These constitute of the skills which currently needs to be there within an individual
for completing their task. Soft skills on the other hand are the skills as well as traits which needs
to be present in the individual are required to excel. (Lindhult and Hazy, 2016).
Hard skills
The major current skills which are required within the employees of the service industry
are
Administration
The main role of the leaders is to effectively manage their team members as well as the
company thus this administrative skill is the basic current requirement within the leader. They
are required to effectively plan and organize activities in systematic manner. Thus this forms the
important current skill within leader. For example Top deck travel would need leaders that are
able to coordinate their team members effectively and thus set the correct direction for them.

IT
The current requirement of any organization in terms of the skills is the proficient in
technology. Thus, a leader needs to have the full knowledge of the current technology as well as
the future technology that might benefit the company. They need to have full understanding of
technology in order to properly guide their employees. For example The leaders need to have the
potential to understand the new and change in technology brought by the Top deck travel to
guide their employees in correct direction of that new technology (Guest, 2017).
Soft skills
The main current & soft skills which are important for the organization are
Leadership
In order to achieve the short term goals, the major soft skill which is significant for the
organization is the correct form of leadership. Organization need the efficient leaders who can
lead the employees effectively and thus will help team to achieve the goals. For example Top
deck travel in order to expand would require leaders who are efficient enough to bring the best
performance from their employees and who will help the organization to bring consistent change.
Communication
This is the most important soft skill which is important in every organization and is
required by the organization to meet the current goals. Without the proper communication, no
organization can succeed thus for accomplishing the goals employees needs to have the great
communication skills in order or excel in the future. For example in order to make the great
customer base, Top deck travel would need the employees who are able to interact with the
customers efficiently and hence are able to communicate the brand message.
P6 Future leadership skills required in the service industry
Strategic decision-making
No matter which type of business is, a leader should be able to make the decisions that
reflect and are in the interest of the company. Thus, strategic decision is the most important skill
which every organization needs to develop their future. A leader who have will have the ability
to think differently and thus take the right decision will make the best use of the available
resources as well as will helps the company to operate successfully. For example in order to
succeed in the future, the Top deck travel need to have the leaders who are competent enough to
take the right decision like which market to serve, how to fulfil the clients expectations. Thus,

the leaders should have the skill of strategic decision-making for the future (Wirtz and Jerger,
2016).
Tech savvy
This is the most important skill which the organizations would need to accomplish their
goals in the future. This is one of the future skill which should be present in the leaders for
effective management. The organizations require leaders who have the great understanding of
software and technology and thus use that for various challenges and opportunities. To attain the
competitive advantage, leaders should be tech-savvy which will also help their followers in
understanding technical roles. For example due to change in technology, the leaders of Top deck
travel should have the potential to understand the constraints of changing technology and thus
adopt themselves to choose the best one.
These future skills can be achieved by various ways. Training is one of the most efficient
method which can be used by the management to inculcate these future skills within the leaders.
For example Top deck travel can offer training as well as conduct the workshop where they can
communicate the importance of technology and how to use the modern methods and what new
technology will be useful in future for the company to attract the customers. Besides this, these
future skills can also be achieved by providing feedback and performance appraisal. Through the
feedback, leaders will come to know the areas which requires improvement and thus this
eventually lead to the development of these skills in them (Mesu, Sanders and Riemsdijk, 2015).
LO 4
P7 Comparison between leadership as well as change management system in different service
industry
Change management is basically the systematic approach which includes handling the
transformation as well as transition of the goals and technologies of organization.
Top deck travel Costsaver
Top deck travel basically uses a well-defined
process of change and thus apply lewin model
for implementing change in their organization.
Costasaver uses different process to implement
change and thus applies ADKAR model for the
change.
Unfreezing stage Awareness

In this stage the organization first prepares the
employees for the change and thus
communicate the benefits of bringing this
change for them and for the company.
Employees come to know about this change in
this stage, for example for expanding its
business, this organization would need to
change the entire organizational structure
along with new vision. Thus, the Travel deck
first communicates the employees about this
change for expansion along with its
importance which is entering new market
(Dhar, 2016).
In this the organization first identifies the need
for the change. Like due to emergence of
advanced technology Costsaver realized the
need to bring change in their technology and
hence the website.
Change
This is the stage where the employees
adopt change and the organization is ready to
formulate the change. In short. In this stage
company implement the change after the
employees have accepted it. For example Top
deck travel finally build the new structure after
the employees consent and thus develop new
resources for the new outlet. They will
implement the change by developing new
resources and new management for new
market.
Desire
In this the organization create a desire
among the employees for supporting this
change and thus encourage them to Participate.
Costsaver by communicating the benefit of
technological change to the employees like
better productivity solicits their support.
Freeze
In this stage, once the employees have
been acclaimed of the change, the new
behaviour which they have derived from this
change is freezed in the sense that they are
Knowledge
Within this, costsaver gather all the
information about the process of change and
what outcome will it bring. Like the company
gather the market information about the latest