LEADERSHIP AND MANAGEMENT FOR SERVICE INDUSTRIES 1

LEADERSHIP AND MANAGEMENT FOR SERVICE INDUSTRIES

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Introduction

Organizations to grow requires quality leadership and management from the leaders and

managers respectively. This report is about Icon hotel which is a small hospitality organization

which has develop a new structure of management because of certain changes in the company.

The aim of this report is to come up with a management structure which is most recommended to

the operations of Icon hotel. Therefore, different management and leadership theories will be

evaluated as well as talent management to be able to determine the best for the organization.

Leaders are responsible of introducing business ideas of the business to the employees

and managing every task of the operation to ensure that the business is operating to achieve its

goals. The task of the organization management which is comprised of leaders and managers is

to ensure the success of the business. Leaders come up with ways to influence others in the

organization towards achievement of the company goals while management is the skills to do the

work in a manner which is better. Therefore, leadership and management is very essential when

it comes to hospitality. In this repost, various management theories, leaders’ role, and leadership

styles which are better for Icon hotel will be discussed. Furthermore, external and internal factors

that influences change of styles of management and organizational structure will also be

discussed in this report.

Classical Management Theories and Leadership Styles

Management is focused on working with the employees to ensure organizations work is

done in a better way. Management recognizes the most essential assets in an organization which

are human. If the employees are not treated appropriately the whole organization will be working

inappropriately. Therefore, different theorists have come up with theories to discipline humans in

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 LEADERSHIP AND MANAGEMENT FOR SERVICE INDUSTRIES 3

an organization. Therefore, the following are some of the management theories which are

applicable in the service industry.

Bureaucratic Management Theory

This theory is one of the most used concept of management in service companies. This

concept of management involves operating the organization through a system of management

which is keen on the position of the employees. That is the organization follows the hierarchy

system. The top management control the low management which is comprised of the employees

to ensure that the hierarchy system is maintained (Rasul, Rogger, and Williams, 2018, p.8). The

basis of bureaucratic management theory is the one that best regulates power. It seeks to manage

resources, keep employees safe, and make effective decisions. The theory was invented by Max

Weber and it is mostly applicable in service organizations run by the government. The benefit of

this kind of management is that the experienced and skilled personnel controls the employees

who make the low level of management.

Human relations movement

This theory was developed by Roethlisberger and Mayo. The theory emphasizes on the

bond which exist between the employees and employers bearing in mind that the workers

performance can be influenced significantly by the boss. Under this management the employees

are made to feel like part of the company. Therefore, the people involved in the organization are

subject to a nice working environment where they understand their goals and those of the teams

and the organization as whole and work towards their achievement. In service industry this kind

of leadership is very important as the organization need to ensure that its employees feels include

so that they can be in a position to offer the services required of them effectively. Professor

McGregor developed X and Y theory which expands on the human relation movement. X is

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 LEADERSHIP AND MANAGEMENT FOR SERVICE INDUSTRIES 4

focused on explaining the negative side of the employees, while Y is aimed at describing the

positive side of the employees. Therefore, the negative side has to be neutralized by the positive

aspects which have to be maintained for future of the organization. This kind of theory is more

prevalent during this modern days.

Administrative Management

This management theory is widely used in service organizations. It ascertains that an

employee’s receives order from those are superior to them. Therefore, it is a management style

which is directed by discipline and respect among the employees based on the rank of each

employee. Administrative management is a form of systematic and disciplined management

where employees get orders from those above them in terms of the ranks in the office. Therefore,

it is a centralized style of management where the management functions are run from one end.

Application of the Theories in the Icon Hotel

Bonding of departments is essential in hospitality business. Icon has numerous

departments which depends on each other. Therefore, if one department does not work

appropriately the entire organization will be affected. In this case, administrative management

and bureaucratic management theory are applied to bring sanity in the hotel. Service organization

in most cases finds out that workers have quality skill and in other incident poor skills. This

means that they have a positive and negative side which can be dealt with through application of

the human relationship movement. After application of this theory the workers develop new

positive skills sand maintain them for future.

Leadership Styles

Leadership is a vital concept within hospitality and any other service organization for it to

realize its set goals and objectives. Leaders are people appointed within an organization and

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 LEADERSHIP AND MANAGEMENT FOR SERVICE INDUSTRIES 5

given the mandate to come up with policies that help to run the organization. Leaders always

lead from the front and act as role model within any organization (Veliu et al., 2017, p. 5).

Leaders face several challenges and obstacles that hinder their daily operations within the

organization, therefore leaders should possess key skills and experience to handle challenges that

they face. Leadership styles practiced within various organizations are common and include the

following;

Authoritative Style

Authoritative leadership style is a common style that is practiced by various

organizations. It’s a leadership style that requires employees within an organization to follow

their bosses. The leader acts as a role model within the organization where other employees

follow. Authoritative leadership style is most prominent within various organization as the

superiority of the leaders is noticed through their authority they possess (Al Khajeh, 2018, p.5).

The leaders possess authority that is granted upon them by the executive of the organization.

Autocratic Style

It is a leadership style that is rigid and power is given to specific individuals within

organization. Autocratic leadership style gives the leader powers which are superior. It is superior

as it involves making decisions that run the organization operations. The decisions that are made

by the leaders are not based on other employees within the organization (Al Khajeh, 2018, p.5).

The leader makes decision and delegate authority to specific subordinate.

Democratic Style

Democratic leadership style is a shared leadership strategy by the employees of the

organization. It is opposite style to autocratic style whereby decisions are made basing on the

ideas and opinions of other employees and the organizational operations. Democratic style is an

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important leadership style as every employees’ ideas and opinions are taking into consideration

before making vital decisions that run the organization (Al Khajeh, 2018, p.4). Decisions made

help to ensure that the set goals and objectives are met.

Bureaucratic Leadership

Every organization has an operational constitution that aid in the running of the

organization. Bureaucratic leadership is based on the constitution that is in place within the

organization. Organizational constitution is a written tablet that highlights the goals, working

styles, bidding rules, objectives and culture that is expected within the organization. Every

employee within the organization is expected to work within the organizational constitution.

Every leader within the organization is not allowed to go outside the organizational constitution.

Role of Leaders

The most significant elements for any organization are the leaders. Leaders have specific

numerous roles which they have to play in an organization to ensure it is operating in the most

effective way possible. First, a leader develops a plan for the organization. An organization

develops and grows when a proper business plan is developed. Therefore, after coming up with

the plan they implement it and keep monitoring its progress. However, before they implement it

they have to confirm that the plan accounts for all departments in the organization. Furthermore,

leaders are entitled to motivating the leaders to ensure that their productivity is advanced. The

leaders involves the employees in decision making as well as organization strategy formulation

to make them feel like they own the organization. The leaders is entitled to coming up with

solutions to the problems affecting the organization. Finally, leaders are the one who are

expected to set objectives for the organization and be in a position to lead the employees towards

a direction in which the objectives will be achieved.

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Evaluation and Analysis of Leadership and Management Styles

The management and leadership style which is essential and being applied in Icon hotel is

the autocratic style of management whereby decisions is shifted to lower level of management

which includes all employees to ensure the organization is in a position to operate successfully.

Hospitality and any other service organizations are run with the main objective being to

maximize profit and minimize the operating cost as well. Therefore, under the current structure

of Icon hotel the leadership style which is most suitable is autocratic style which lowers the

decisions to lower level management which include the subordinates.

However, the leadership styles in service organization like Icon hotel are used

interchangeably. The democratic style of leadership is used when the employees have to take

decisions. Strategic leadership is used for monitoring the progress of the organization. The

bureaucratic and strategic leaderships are used to ensure the hospitality and service industries

maintain their discipline and culture as they allow the organization to observe cross-cultural

leadership.

Internal and External Factors

The leadership and management style that an organization uses is determined by the

various factors which are either internal or external. Financial resources, organization culture,

and human resources are among internal factors that affects the selection of management and

leadership style in service industry. Political, legal, technological, social, and economical factors

are what make the external factors for determining the effective leadership and management

style. The political factors include government policies which are operated in the industry and

the rules that govern the hospitality industry. The current economic state of a country usually

affects the operation and leadership of service organizations.

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Impact of External and Internal Factors with Service Organization

External factors, such as restrictions on certain tourist attractions, should be included in

the hospitality organization. The pressure created by the government has fallen directly on the

management style of the host organization. The country's economic situation can have an

economic impact on the tourism industry, such as a decrease in the number of tourists coming to

the country; the hospitality organization's management needs to be reduced to perform their

duties effectively. Internal factors such as management of hospitality staff, management agencies

operating in a tourism agency, and many other internal and external factors can affect a

hospitality organization's organization and management.

Conclusion

The report is prepared for Icon hotel which falls under the hospitality organizations. In

this organization different management and leadership styles are being observed and utilized to

ensure that the outcome are favorable for the organization. The determination of these

management and leadership styles is affected by external and internal factors based on the

location of the organization. These factors directly impact specific operations of the service

organization. The effects of these factors is well analyzed in this report as the government

regulates the tourism organizations. The country's legal environment is also a factor in

weakening or strengthening the perceived service company's position. All these changes are

discussed in more detail in this report on the tourism industry. Different administrative structures

in a hospitality organization can be used depending on the services provided in that hosted

organization.

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References List

Veliu, L., Manxhari, M., Demiri, V. and Jahaj, L., 2017. THE INFLUENCE OF LEADERSHIP

STYLES ON EMPLOYEE'S PERFORMANCE. Management (16487974), 31(2).

Al Khajeh, E.H., 2018. Impact of leadership styles on organizational performance. Journal of

Human Resources Management Research, 2018, pp.1-10.

Rasul, I., Rogger, D. and Williams, M.J., 2018. Management and bureaucratic effectiveness:

Evidence from the ghanaian civil service. The World Bank.

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