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Importance of Management and Leadership Skills in Service Industry


  • Unit No: 5
  • Level: Post Graduate/University
  • Pages: 19 / Words 4771
  • Paper Type: Assignment
  • Course Code: MG629
  • Downloads: 880
Question :

Project Context and Scenario

This assignment has a Pearson-set theme that is Talent Management within Service Industry. The effect of strategic formulation to talent management in the service sectors such as tourism and hospitality industries is evident in the systems of Business: management, publicity and communication, distribution, supply chain, operation and management control. The learners need to give focus on how strategic and advanced innovative approach to talent management which influences the leaders and managers role in a particular travel, hospitality or tourism organisation based on the learning outcomes.

Learning Outcome 1: Assess classical management theories and leadership styles

Measure the various classical management theories and apply in selected organisation in hospitality or tourism sector and state the manager/leader role and the style of leadership including in managing talent. Examine the leadership styles in reference to organisational structure and culture of selected firm.

Assess the management and leadership styles in context to the rising influences of talent management in chosen hospitality or tourism organisation and measure the link between theory and practice currently adopted in selected organisation.

Learning Outcome 2: Investigate the component that influence various styles and structures of management in a service industry.

In selected organisation, determine and analyse the internal and external factors that can influence styles and structures of management. Examine the key influencing factors, considering strategic talent management, evaluate strengths and weaknesses.

In your chosen service sector organisation critically analyse how specific management styles have been influenced and changed by application of talent management.

In selected service sector organisation examine how particular management styles have been influenced and changed by application of talent management.

Learning Outcome 3: Measure current and future management and leadership skills for the service sector

Measure the actual leadership and management skills, both ‘hard’ and soft’ skills in selected organisation and cover the needed skills for future and how to accomplish those skills. Measure the current, future leadership and management skills that are important for the selected administration in context to talent management problems such as retention of staff and development. Evaluate how, management and leadership skills in your chosen organisation has been developed.

Learning Outcome 4: Show management & leadership skills in selected organisation.

Analyse the procedure of change management and leadership in utilizing change in organisation and compare and contrast with other service sector firms. Use selected organisation as an example, analyse how change procedure impact management and leadership skills and styles in relation to managing talent.

Learning Outcomes and Assessment Criteria

Learning Outcomes

Pass Criteria

Merit Criteria

Distinction Criteria

Learning Outcome 1: Assess classical management theories and leadership styles

P1 Measure various classical management theories and use these in a service industry.

P2 State the leader role and various leadership styles in a service sector industry.

P3 Assess the management and leadership styles in a particular organisation of service sector.

M1 Examine management and leadership styles in a particular organisation in context to structure and culture of organisation.

D1 Measure a particular organisation’s actual management and leadership styles make links to theorists and give evidence of organizational activity.

Learning Outcome 2: Investigate the component that influence various styles and structures of management in a service industry

P4 Study the internal and external element that influence management styles and structures in a chosen organisation.

M2 Examine the internal and external component that influence management styles and structures in a selected organisation evaluating strengths and weaknesses.

D2 Measure how particular management form have been changed and influenced by internal and external component in a chosen organisation.

Learning Outcome 3: Measure current and future management and leadership skills for the service sector

P5 Examine current management and leadership ‘hard’ and soft’ skills giving evidence from particular service sector.

P6 Cover approaching management and leadership skills needed by the service sector and how these can be attained.

M3 Measure actual and upcoming management and leadership skills that are important for the service sector

LO3 and LO4 D3 measure how, change in response, management and leadership skills in service sector has been formulated.

Learning Outcome 4: Show management & leadership skills in selected organisation

P7 Compare and contrast various organisations’ change management systems and leadership in implementing change

M4 Examine how change management impact management and leadership style and skills.

D4 as above in D3

Answer :
Organization Selected : CT Business Travel Company


Leading and managing is the ability to increase the productivity of the services industry. Leadership and management is a very systematic process which helps the industry to maintain the activities by formulating informative decisions which will help the business organisation in the service industry to grow and increase the efficiency rapidly. As the employees are very essential part of the service industry the need of leading and managing the employees will also help the employees to increase the efficiency and improve the quality of the output of the organisation. Leadership and management is an art of making employees do work and influencing them to do work so that the organisation can achieve the objectives effectively. In this report there is brief information about CT Business Travel Company which provides the travel management to its clients and it is based in London. The company was established in 1988 and have increased rapidly with its effective strategies and policies which also increased its business from its establishment. The company is the world’s leader in managing the travel for the clients and they also provide the excellent services which will increase the satisfaction level of the customers and improves the brand image of the company as well. The company also have invested in the technology to maintain the service quality and also increase the market share for the customers and also provide the ease in the travel management. In this report there is a critical evaluation which will help the company to increase the efficiency and increase the chances of growth.

LO 1

Classical management theories

The traditional management theories are the basic management which helped the organisation to increase productivity with the help of managing the employees to work and achieve the objectives effectively. The classical management only focuses on the economical growth of the organisation and does not analysed the important to increase the efficiency of the employees to improve the performance of the organisation to achieve the objectives. The social and physical needs are not considered in the classical management. (Altman, E.J. and Tushman, M.L., 2017)

Scientific management theory

In this theory the Winslow Taylor proposed that motivation of the employees will help the to increase the efficiency. The theory also focused on the performance of the employees and maintaining their performance to increase their performance by adopting the effective strategies. (Frawley, S and, 2019) .The classical management also helped the organisation to understand the behavioural pattern of the employee to make the effective decision to motivate the employees so that they can achieve the objectives efficiently and effectively by increased rate of output.

Bureaucratic Management Theory

This theory was designed by Max Webber who was a sociologist as he proposed that the effective management will only be done when the organisation have the right chain of command distributed to the organisation. This helped the organisation to improve the efficiency by delegating the authorities to the subordinated so that they can improve and formulate new strategies and increase the efficiency of the organisation. This management theory also helped the organisation to improve the communication channel by appointed the right person to achieve the objectives. (Epitropaki, O and, 2017) 

Administrative management theory

This theory change the way of managing the organisation as this theory is also called as the modern management theory and was proposed by Henry Fayol who is also called as the father of modern management. This said that the management is the process through which they can ask the group of individual to do their work.

Strengths of classical management

  1. Hierarchical Structure - in this structure of the organisation the management structure is framed according to the level of power and authority of the employees which will help the organisation to provide the better vision and increase the ability of the lower level to develop the organisation’s culture and beliefs(Kretovics, M.A. and Eckert, E., 2019.
  2. Division of Labour - the classical management theory also have a benefit that the workload in the management theory is distributed equally by assigning the small tasks in the teams or groups to achieve the maximum efficiency and more better work of the employees this also help the employees to learn and increase skills and knowledge by interacting with many other employees. (Davenport, M.S. and Dunnick, N.R., 2018)
  3. Monetary incentives - this theory also focuses on the motivation of the employees by giving them monetary benefits which will also help the employees to fulfil their personal needs. With the fulfilled personal needs the employees will be more effective in doing the work efficiency with the more energy they will help the organisation to achieve the objectives with more productive pace and improved the organisation orientation.
  4. Autocratic leadership - autocratic leadership is effective in the classical management as in this management the leaders have the central authority to make all the decisions and control the organisation according to their will. This style may be effective only when the organisation has to go through a effective change and the employees in the organisation are not willing to accept the change and decrease the efficiency of the organisation(Northouse, P.G. and Lee, M., 2018).

You may also visit at - Theories and Its Impact In Achieving Business Fundamental Objectives

Role of Leaders and different Leadership Styles

Leaders are the individual which help the organisation o get to the direction by influencing the employees to increase the efficiency and gain the objectives. The CT Business Travel also analysed the importance of appointing an efficiency leaders to increase the efficiency of the employees and also grow the company more effectively. As the company aims to increase the customers satisfaction and this will only be done when the employees are effective enough with the proper skills and knowledge to increase the customers satisfaction. The leaders are the individuals which have the knowledge and the skills which increase the capabilities and flowers due to their achievements in their fields. (Lieberman, A., Campbell, C. and Yashkina, A., 2016)

Role of leaders

  1. The leaders of CT business travels are responsible to improve the quality of services by providing the enough skills and knowledge to the employees of their company so that the customers are optimally satisfied to achieve the objectives of the company and increase the potential of the company.
  2. They are also responsible to increase motivation of the employees so that they van increase the efficiency in managing the travel operation of the clients with maximum services quality and proper feedback of the services.
  3. The CT business Travel also need to hire the leaders which are have the abilities to guide the employees and also give them the right knowledge and experience to increase the efficiency of doing the work more effectively and in less time.
  4. The services industry also need to have t effective leaders which are responsible to increase the values and ethics which will also help tot develop the employees tom make them true and fair to increase the retention to the company.
  5. The leaders of the company are responsible to provide the propose understanding of the vision of the company and help them to connect it with the culture of the employees.
  6. They also help the employees to gain the vision to achieve the work faster and improve the quality of work by maintaining the better travel management system and scheduling of the customer travel ledger to meet the expectation of the customer and provide them with better experiences.
  7. CT Business travel also has the effective leaders who is responsible to create an effective teams in the organisation to delegate the work and divide the workloads of the employees to increase the efficiency.(Alban-Metcalfe, J. and Alimo-Metcalfe, B., 2016)

Leadership Styles

CT business travels also have to analyses the effective leadership styles in order to increase the efficiency of the company and maintain the quality of services for the customers. The leadership styles also help the company to increase the internal productivity and healthy environment of the employees so that they can increase the objectives and push themselves towards their limits and increase their potential. Leadership is the fuel which helps the employees to charge them to attain the efficiency to achieve the objectives of the company. (Gibson, P. and Parkman, R., 2018)

  1. Democratic leadership-Democratic leadership is commonly effective in the organization as in this leadership the leaders are having the skills and rights to share the decisions. In this leadership style the leaders are also responsible to increase thre efficiency of thr employees and motivate them to include ion the decision making process for the organization. This is also very effective strategies as it helps to take the input from the employees from the lower level and create the effective strategies and policies buy thinking all the suggestions of the company to establish a better working culture and make the company more successful.
  2. Autocratic Leadership-Autocratic leadership is also very important for the company to maintain the leadership and regain the control and handle the company to increase the travel experience and making the efficient decisions with involving any person of the company. In this style of leadership the employees are very discouraged as they are not involved in the decision making and they also feel left out. This leadership styles id rarely effective and make the least impact on the organizational structure.
  3. Laissez- Faire-In this leadership styles the leaders allow the employees to take te decisions and make the effective decision. The leaders delegate the responsibility to the employees to analyze and determine the best strategy for the company to increase the efficiency so that they can make the maximum output with the limited resources and gain the satisfaction level of the customers. In this leadership style the employees are highly effective.

Management Styles

In service industry the main focus of their organisation is the increase the customers satisfaction so that they can make the customer loyal and increase the sales of the company to grow rapidly in the market. The management styles will also help the company to achieve the competitive advantage with the increase in the internal factors it will improve the quality and uniqueness of the company. The management styles also have the effective approach to increase the productivity of the company by making the employees do their work so that they are also motivated and they increase the level of satisfaction in case of CT Business Travel company. The company also focuses on the excellent services to it customers to increase the experience of their travels. The company help to manage the travel of the customer’s according to their preferences and tastes of the customers in the willing to pay prices. (Pickuth, D., 2018)

  1. Persuasive management- in this style of management the managers are present in all level of management and all the decisions of the company. The management in this style are responsible to make the employees and other managers learn about the decisions they are going to take and they also make the effective teams to divide thro les and workload to increase the efficiency of the workforce.
  2. Participative Management- the meetings and questionnaires are being done in the company to understand the issues and problems which are faced by the company, and the employees are able to help the managers by analyzing those problems and making the policies which will make the company performance rise to maintain the position in the market and also achieve the competitive advantage to increase the profit margins of the company.
  3. Result Based Management- CT Business Travel company also have to adopt this manage styles as it focuses on the results. The managers in the style leave the authority f decision making to the employees sop that they can improve their efficiency and the manager will analyze the efficiency of all the employees , if the efficiency of the employees are improved with the techniques used by the employees the managers will formulate that techniques and methods as the management styles to increase the productivity of the company. (Collings, D.G., McDonnell, A. and McCarter, A., 2015)
  4. Example setting management- this is the traditional ,management styles and in this style the managers have to set the example to the employees in order to increase the organisational culture and ethics of the employees. This management also help the employees to improve the skills and knowledge as the managers have to set some standards which have to fulfilled in the company in order to prove the efficiency in the company and make a powerful presence.

LO 2

Swot analysis 

Due to the increase in the demand of the leisure and globalization the demand for travel within and across the country have also increased. This has helped CT Business travels as they have to analyze all the internal and external factors which can increase the efficiency of tee company. (Wensveen, J., 2018) The company also have to increase the productivity of the employees and operations. As the company provides the leisure and business travels management services to its customers in order to maintain the effective quality of the services. This analysis will help to determine the internal as well as external factors. Like opportunity and threats are the external factors of the business and they create huge impact on the sales of the company.


the services industry is comprising of many people which are very essential as they are the driving force to to improve the efficiency of the company.

  • The major positive aspect of the company is that they have differentiated platform tom provide their services to the customers of all age groups.
  • The company also have strong tie ups with the different rental agencies which will help the customers to increase the ease of the travel and also increase the experience.
  • The segmentation strategies of the company are very unique and also have focused on the technology to attract as many customers as possible to maintain the overall sales of the company. (Pawlecki, J.B and, 2018)
  • The brands name of the company helps the company to achieve the competitive edge in the market and formulate the effective customer loyalty programs which can also help the company to increase the sales and increase the profit margins of the company.


  • The company has to make the dependant decision with the help of the partnered forms which help to provide all the goods and services.
  • The company also faces the customer satisfaction as the company had degraded the quality of services due to decrease in the efficiency of the company.
  • The company also have a huge network of online services but the it decreased the network to the areas share the network connectivity is also normal as they are dependent to the company.
  • The internal structure and the company’s culture is aggressive but it is not suited in the areas where there are less competitors it will decrease the efficiency and increase the cost of the company to improve your day. (Northouse, P.G., 2019)


  • The companies have the opportunity to expand its business within the country so that they can also increase the efficiency of the company. The company also thinking that there should be more technological advancement which can help the company to grow the customer base and increase the profit margins of the company.
  • The CT businesses Travel also have the opportunity to expand their business globally by launching their websites in different countries to provide the services to the customers.


  • CT business travel also have the threat of new entries in the market which may decrease the market shares by attracting their customers.
  • The company has the threat of lack of resources which will be required by the company to grow in the future and the capital is also one of the major aspect of the company.

PEST Analysis

CT Business Travel also have to evaluate the external environment which van impact the operation of the company but cannot be controlled. There are many factors which the company have to consider in order to make the efficient decision making of the company and achieve the group goals of the company. The pest analysis is very essential analysis which help the company to understand the market trends and current market position of the company which will help to make the efficient market strategies to increase the competitive edge.

Political Factors

 The company have to analyse that the tourists or the customers of the new market have the stable political environment or not. The company will also have to check the new market have policies and laws which can impact the operation of the business of the company. the laws and rules of the government will help the company to determine the interference of the government in the operations. This will also help the company to make the effective strategic planning to expand the company and increase the sales. (Vijayakumar, P.B and, 2018)

Economical factors

The company have to analyse the economic activity in order to analyse the efficiency of the nation so that they can make the effective strategies which will also help them to establish the company in the new market. Inflation rates, unemployment rates , national income, gross domestic product of the country , foreign exchange rates this also have to be analyzed in the economical factors in which they are very efficient to make the policies to increase growth of the company by establishing them in the new market and assessing the income and of the individual is also very important.

Social Factors

In this factor CT business travel have to analyse that the behaviour of the customers like the preferences, tastes, values, cultures, ethics of the customers which will help the company to make the effective marketing strategies to increase the customers and attract more customers to the company for the travel management process. the company also have the analyse that the social factors in the country are differentiated with the change in the geographical locations and hence that company have the analyse all the factors separately in all the markets where the company have to invest to increase the market and expand the business more. (Maher, A. and Abdel-Aal, E., 2016)

Technological Factors

The technological factors is very essential factor in the service industry as it is customer oriented and to increase the satisfaction of the customers the company need to increase the technological innovation in order to attract the customers as the technology is very obsolete in nature and decreases its efficiency very quickly. So the company have to determine the factors which will develop the need to change the technology and achieve the competitive advantage in the market to increase the profit margins and sales of the company.

LO 3

Hard and Soft Skills 

Hard skills are those skills which have a total control over the employees and it is not giving the employees any say in the decisions making of the organization. There are a lot of ideas and innovations which can come out when the entire CT business Travel works as one and if that is missing then the organization will not be able to work so well. There is a high turn over of employees in CT business Travel hard skills because the employees do not feel satisfied with the kind of work they are doing in the organization, and they are not getting paid for the extra efforts they are putting in the company. It is very important to appreciate the employees for the kind of work they are putting in for the organization to work. (Kim, J. and McLean, G.N., 2015). CT Business Travel is using hard skill training to employees which helps to increase the efficiency of the employees and increasing the potential to achieve objectives of the company effectively. This skill helped business to develop effective marketing plan and financial budget to increase the financial position in the market and compete effectively.

CT business travel is using soft skills in the organization because there are a lot of employees who have had experience in the past which can help the company grow by sharing their ideas which is very important. Every individual has a different take on things and if they are shared and put together then it will really help the organization to grow. The growth of CT business travel is what matters in today's world because the market is getting very competitive and to get a advantage over that competition it is very important to get in New ideas and be unique in the market. (Monaghan, P., 2017) The customers appreciate new ideas and methods which make them feel special and wanted and that is what CT business travel is trying to provide its customers. The company is not having a high turn over of the employees because there conflicts are getting solved time to time, and they are getting all the facilities which the company can provide them with.

Future Skills in Service Industry

The service industry is focused on the customers' satisfaction so the CT business Travel also need to have both the skills in order to increase the stability in the market. The skills also shows the professionalism of the CT business Travel and credibility of the company in the market. The major key factor which is very important in the making of the efficient employees is the training and development of them so that they can increase their company’s productivity. CT business travel also need to improve their efficiency and understand all the future skills in the services industry which can help business to increase its potential in market and achieve core competency and in crease profitability effectively.

  1. Time management skills are required in the service industry as they have to maintain the travel management of the customers which need to be done in the given deadline.
  2. Patience is also very important as the customers are the big and the employees have to listen to the customers even if they are wrong. This shows that the employees are well self controlled with their anger and also mature in their field.
  3. The communication level of the employees must be very clear that ever message can be conveyed to the customers with efficiency and which will also increase the flow of communication in the company.
  4. The employee also should have the proper knowledge about all the information about the CT business Travelfrom its history to its vision and also all the products and services which the company is offering to its customers. (Varty, C.T., O'Neill, T.A. and Hambley, L.A., 2017)

LO 4

Difference between CT Business Travel and Costsaver


CT Business Travel


Leadership style

The company is following the latest leadership styles with the most innovative techniques to increase the efficiency of the company.

The Autocratic and lassies affair leadership styles are followed in this company as it helped the company to increase the efficiency of the employees according to its situation, and they have to analyse the factors which will help the leaders to increase the efficiency of the company.

Organisational Structure

The company adopted the Hierarchical structure which helps the company to increase the efficiency of communication and delegation of power to the lower level. The company adopted the two factor theory of motivation which is also very important in order to analyse the positive and negative impacts on the company’s growth.

The company follows hierarchical structure and adopted Maslow’s need theory to analyse the need of the employees’ that the company can motivate them and increase the efficiency of the company.

Change management model

Leaders of the company have adopted kotter's 8 stage change model as it helps company to increase its productivity and improve the organization structure and increase efficiency of employees. CT business travel also adopted the latest trends of technology to increase market share effectively. This model also helps the company to become more effective in tracking all the booked travel tours of customers to provide effective services and increase customer satisfaction effectively.

Costsaver company adopted Kurt Lewin change model of leadership as it helps to reduce the cost of the company and also increase the potential of employees to do their task effectively. This change leadership model also helped company to promote company's brand image in market by improving their service quality and implementing management information system.


From the above report we have concluded that there is a need of a manager and leader in an organization because they both play a very important role in the organization to make the organization work efficiently and effectively. All the companies are in the market for a long turn so they must have the right decision makers in the company and the right leaders to guide the employees in the organization. There has to be a coordination between the two which is the manager and the leaders so that the conflict does not occur and the organization will be able to run in one direction which is very important for the company. There are objectives and aims which all the organizations have and it is very important that the companies achieve those and it is only possible when all the team of the company is being able to work together in a healthy environment.


Books and Journals

Alban-Metcalfe, J. and Alimo-Metcalfe, B., 2016. Public sector leadership: Towards employee engagement. In Leadership in Organizations (pp. 264-287). Routledge.

Altman, E.J. and Tushman, M.L., 2017. Platforms, open/user innovation, and ecosystems: A strategic leadership perspective. In Entrepreneurship, Innovation, and Platforms (pp. 177-207). Emerald Publishing Limited.

Bird, A and, 2016. Global Leadership in Perspective. The Routledge Companion to Leadership. p.348.

Collings, D.G., McDonnell, A. and McCarter, A., 2015. Types of international assignees (pp. 259-274). The Routledge Companion to International Human Resource Management.

Davenport, M.S. and Dunnick, N.R., 2018. Lessons on Leadership. RadioGraphics. 38(6). pp.1688-1693.

Epitropaki, O and, 2017. Leadership and followership identity processes: A multilevel review. The Leadership Quarterly. 28(1). pp.104-129.

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