Analyzing Vodafone's Leadership in the Service Industry

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MANAGEMENT AND LEADERSHIP IN
SERVICES INDUSTRY
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Contents
LIST OF FIGURES..........................................................................................................................................3
INTRODUCTION...........................................................................................................................................4
LO1..............................................................................................................................................................5
P1.............................................................................................................................................................5
P2.............................................................................................................................................................6
P3 AND M1..............................................................................................................................................7
LO2..............................................................................................................................................................9
P4 AND M2..............................................................................................................................................9
LO3............................................................................................................................................................11
P5...........................................................................................................................................................11
P6 AND M3............................................................................................................................................13
LO4............................................................................................................................................................14
P7...........................................................................................................................................................14
M4.........................................................................................................................................................15
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................17
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LIST OF FIGURES
Figure 1: Vodafone Group Logo...................................................................................................................4
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INTRODUCTION
Leadership can be defined as a process through which the leader influences people or his followers to
work for the better good. Leadership can be considered as an act through which the leader is able to
motivate his follows for the attainment of a specific goal (Antonakis and Day, 2017). Management, on
the other hand, is considered as a process of organizing and coordinating all the activities taking place in
an organization.
Vodafone Group Public Limited Company is a British telecommunications giant which is known for its
strong performance in the markets of Europe. The firm was established in the year 1982 and is
headquartered in London (Vodafone, 2019). Vodafone provides products like mobile, fixed and
Television services to its customers. Vodafone operates from 25 countries in the world and has its
connections in 47 further countries through the establishment of partner networks.
Figure 1: Vodafone Group Logo
[Source: Vodafone, 2019]
This report covers the understanding of the application of classical management theories and a study of
factors affecting the management styles adopted in organizations has been done. The report also covers
internal and external factors that determine the organizational structure of a service organization and
the skills required in the management of service organization has also been done. This report has also
assisted in comparing the change management systems in different service firms and their impact on
leadership and management skills.
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5

LO1
P1
Classical management theories have been developed to manage the organizational behavior and are
responsible for the development of goals of an organization and management of activities to be
performed for its achievement (Berry et al., 2016). Vodafone has adopted these classical theories so that
it can efficiently manage the behavior in its organization. Following are three classical management
theories adopted by Vodafone:
 Scientific Management Theory
Scientific Management Theory has allowed the Vodafone Group in maximizing the productivity
of the activities performed. Through monitoring the activities, this theory has allowed Vodafone
in applying scientific methods through which efforts are directed towards the areas in which
they are needed so that the goal can be achieved (Shafritz et al., 2015). Implementation of a
proper plan also assists the organizations in increasing their efficiency.
 Administrative Management Theory
Through the application of Administrative Management Theory, Vodafone has been able to
systematically arrange all of its resources and apply various principles of management so that
higher benefits can be generated (Beare et al., 2018). Dividing the workforce into the right
segments, allotting appropriate work to them depending upon their capabilities, monitoring
their tasks, etc. can be done in Vodafone through the application of this theory.
 Bureaucratic Management Theory
Through this theory, Vodafone has been able to develop a systematic hierarchy in the
organization and develop an efficient organizational culture. The Bureaucratic theory suggests
that the positions in the organization shall be stated and followed implicitly (Berry et al., 2016).
Through this theory, Vodafone has been able to develop an ideal organizational culture so that
its employees know to whom to report and the proper hierarchy of positions in the firm is
maintained.
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P2
Leadership in an organization is essentially required so that the employees can be provided with proper
guidance for the achievement of the goal of the organization. One of the major functions that have been
performed by the leaders in Vodafone Group is setting up of clear vision to the employees so that they
have a clarified idea of what is to be achieved. Leaders of Vodafone Group have also kept the workforce
motivated through the application of different leadership styles, which are explained in the following:
 Democratic Leadership Style
With the application of this leadership style by the Vodafone Group, the leaders emphasized on
bringing the workforce together and developing teams so that the tasks can be achieved
together. Encouraging the employees in participating in the operational activities, this style of
leadership allowed in increasing the interaction among the teams and creates highly innovative
solutions (Yahaya and Ebrahim, 2016). Through a collaborative approach, this leadership style
involved the employees of Vodafone Group at all the necessary steps and created a participative
leadership.
 Transactional Leadership Style
This type of leadership has been used at Vodafone Group so that the reward and punishment
systems can be established in the firm. This leadership style allowed the leaders of Vodafone
Group in motivating their employees for working hard through focusing upon the different
rewards waiting for them (Nawaz et al., 2016). Through this style of leadership, Vodafone Group
was able to keep the employees motivated for a shorter period of time.
 Bureaucratic Leadership Style
Through bureaucratic leadership, official duties are allotted in Vodafone Group so that proper
hierarchy in the organization can be maintained (Giltinane, 2013). The leaders of the Vodafone
Group have established different divisions and reporting authorities so that tasks can be
classified and managed properly.
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P3 AND M1
The management and leadership styles that are used in the service sector organizations have to ensure
that the organization follows an organizational structure which best fits with the leadership style or vice
versa (Yahaya and Ebrahim, 2016). Leadership styles can create higher productivity if applied in the
appropriate organizational culture suitable for it. Following are the management and leadership styles
that have been applied by Vodafone Group in relation to its organizational culture:
 Democratic Leadership Style
Democratic leadership style is suitable for all types of organizational structures as it is
participatory form and focuses on providing equal opportunities to the employees. Digital
technology has strongly impacted this leadership form through which the leaders of Vodafone
are able to gain higher productivity from their leadership activities (Nanjundeswaraswamy and
Swamy, 2014). Technological use by the democratic leaders of Vodafone Group has allowed in
increasing the creativity of employees by providing them more freedom in operations. Allowing
employees to suggest their thoughts in the process of leadership has been efficiently performed
by the leaders of the Vodafone Group through enhancing technological systems in its
organization.
 Transactional Leadership Style
This style of leadership is mostly found suitable for matrix organizational structure which allows
the leaders of the Vodafone Group to provide rewards to their employees rather than following
a traditional hierarchy. With the use of digital technology, employee’s are also able to stay
motivated and use technology into their work so that high efficiency can be gained in the tasks
performed by them (Saeed et al., 2014). Technological development has helped the
transactional leaders of Vodafone Group in changing traditional patterns of rewards and
punishment system. The implementation of digital technology has also helped the employees by
facing new challenges that have been brought by their leaders and make appropriate use of
technology to develop innovative solutions and gain higher rewards.
 Bureaucratic Leadership Style
Bureaucratic leadership style is more suitable for a hierarchical organization structure through
which the establishment of hierarchy would be easily done (Giltinane, 2013). Through
technological use, this style of leadership is able to develop an effective reporting and
communication system within the organization of Vodafone Group through which the right flow
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of information can be done. Technology has also assisted employees to perform their work
remotely and can make use of technology to report regarding any problem which is being
caused in their tasks so that it can be quickly resolved (Yahaya and Ebrahim, 2016).
Implementing technology in the leadership process has also helped the leaders of Vodafone
Group in monitoring the growth made by their employees and determines the steps they are
required to take for further development.
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LO2
P4 AND M2
For the application of management and leadership styles in an organization, there are variously internal
and external factors that are being studied so that these styles can result in the higher performance of
the organization. The internal factors of an organization that affects the management and leadership
styles can be of various natures (Arnold et al., 2015). Values of the company are one of the most
essential factors that impact leadership styles. Vodafone Group has made sure that the leadership style
implemented by them does not deteriorate the values followed within the organization.
The leadership style adopted by the Vodafone Group is also adopted by the technology used in the
organization. Technology is an essential factor which has an internal as well as the external impact on
the management and leadership styles. Use of digital technology has led the leaders of Vodafone Group
in increasing the performance level of their employees (Dexter et al., 2016). Also, through adopting
digital technology in their organization, Vodafone Group has also developed an effective communication
system. Technology has also helped in monitoring the performance of the employees and give feedback
for improvement, as and when needed.
Competition is an external factor which affects the leadership styles and organizational structures.
Vodafone Group has ensured that the organizational structure is followed in a manner so that the
employees can develop themselves with time and be motivated to work consistently for the
development of the organization (Kopel and Löffler, 2012). Vodafone Group has applied leadership
styles so that the employees can strive hard for growth. The strategies of leadership in Vodafone Group
are taken keeping in mind the competition of the market. The competitiveness in the external
environment impacts the style of leadership adopted by Vodafone Group.
The business environment also has a strong impact on the organizational structure of the Vodafone
Group. For designing the culture and structure to be followed within the organization, the Vodafone
Group has to understand the patterns followed in the business environment and develop a creative
solution which would provide highest returns to the company. The concepts and values that are
accepted in the business environment of Vodafone affect the decisions regarding the formation of the
organizational structure of the firm.
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Through the determination of the internal and external factors, there are various strengths and
weaknesses of the Vodafone Group are being created. Understanding the internal and external factors
have led the Vodafone Group for forming leadership strategies through which they can attain high
employee satisfaction. Highly satisfied employees in the organization assist Vodafone in developing
highly motivated workforce through which higher productivity is attained. This also helps Vodafone
Group to maintain the market share and standing up against the rigid competition it faces
internationally (Diddams and Chang, 2012). There are various weaknesses that the Vodafone Group has
to go through due to the internal and external factors. There are situations in which the result of actions
might result opposite than that of the market. It is not necessary for the Vodafone Group to receive
positive results from a strategy that has been adopted by its competitors. Thus, while considering the
impact of internal and external factors on the management styles and organizational structures, a
relative study is conducted by Vodafone Group so that appropriate results can be generated.
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LO3
P5
To develop high growth opportunities, there are various skills and abilities that are being required in the
workforce of the Vodafone Group. Following are certain hard and soft skills that are to be developed by
the employees of Vodafone Group so that they can be headed towards the organizational growth:
Hard Skills
 Computer Proficiency
It is one of the most essential hard skills required in Vodafone Group which would allow the
leaders to make use of computers in increasing the efficiency of their data processing and
maintain records so that they can be examined quickly anytime (Batool, 2013).
 Analysis of Skills
Analysis skills would be required by the leaders of Vodafone Group so that they can analyze the
opportunities in the market and gain an advantage in the market through making the most from
them (Rosenberg et al., 2012). The analysis skills would also help in analyzing the performance
of the organization so that the key development areas can be identified and worked upon.
 Technological Skills
Gaining technological skills would help the leaders of Vodafone Group in making use of
technological platforms for different purposes. Technological skills would reduce the time
required to perform tasks and the growth of the organization can also be framed properly
(Bolden, 2016).
Soft Skills
 Communication Skills
Communication skills are essentially required by the Vodafone Group so that they can
communicate efficiently within the organization as well as outside the organization
(Nanjundeswaraswamy and Swamy, 2014). Through an efficient communication system, the
flow of information is allowed in the organization within the employees and with the other
factors outside the organization.
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