Management Structures and Business Growth

1. Introduction

The presence of a proper management structure is required apart from well-develop management style because it offers direction and guidance to the business regarding the way to improve and grow as well as offers clarity on the way different resource in the organisation are to be maintained to attain the vision and mission of the organisation. In this assignment, the management theories and leadership styles being used in the technologically driven industry is informed with relation to Mad Hatter Hotel. Further, the influence of the technology in improving the role of the leaders and managers in the service industry where Mad Hatter hotel performs is also to be explained.

2. Assessing the different classical management theories as well as their application in a technologically driven service industry

In the UK, it is seen that the tourism and hospitality sector is becoming more technology driven to offer better quality services with ease and improved efficiency to the customers. This is evident as many of the hospitality organisations, small or large are using internet technology, robotics, augmented technology and others to make booking and stay easier as well as comfortable for the consumers or clients. As mentioned by Waring (2016), Taylor’s scientific management theory informs that various scientific methods are to be implemented at work to identify most effective way of performing each task (Gond et al. 2016). In relation to this principle of the theory, the hospitality industry is seen to use various updated technological equipment and processes to deliver each task in the most effective manner that offers higher satisfaction to the clients. It is evident as Mad Hatter along with many other hotels in the hospitality industry in the UK is seen to provide online booking opportunity, uses technologically-updated equipment in cleaning as well as cooking purposes, digital locks in rooms and use of technology in providing other services to provide effective hospitality to the consumers. As argued by Thompson (2017), failure to use effective scientific methods in a technologically driven industry makes the company lack productivity and success that gradually leads to its downfall. This is because without effective implementation of scientific methods the companies are unable to improve their quality of services as demanded by the customer and meet increased customer demands within limited time which creates dissatisfactory among the consumers to avail their services. It eventually makes the company lose customers that negatively affects their progress of business.

The benefit of scientific management theory is that it decreases inaccuracy made by the leaders as it informs them to match jobs according to the qualification of the workers rather than randomly recruiting them (Rahim, 2017). This theoretical principle is seen to be followed by Mad Hatter Hotel as they are seen to recruit employees in position according to their skill and knowledge which has helped the leaders to ensure effective service deliver from the organisation to its consumers. As asserted by Ross (2017), implementation of scientific theory is beneficial to increased efficiency at work as it informs to monitor work performance and allocate work between managers and employees in such as way that the managers perform planning to do the work and employees appropriately execute them. The principle is also followed in the technology-driven hospitality industry where the managers monitor the employees both manually and through the use of digital devices to supervise them at work. As argued by Waring (2016), using scientific management theory needs huge capital and power to make decision mainly remains with the management. This acts as limitation for the hospitality industry that is technologically developing because it provides less scope to the employees to implement their diverse and potential ideas at work to ensure better progress. It is evident as the main control remains with the management making the employees have limited opportunity to implement their ideas at work for ensuring better productivity.

Fayol’s management theory is another classical management theory which informs that effective planning regarding the way to execute work in future is to be previously framed (Khorasani and Almasifard, 2017). This is required so that effective understanding can be reached regarding the resources required and way of executing the work in a smooth way in the future. The technology-driven hospitality industry is seen to develop plans for future regarding the way they can through use of technology such as robotics and augmented reality in future be able to provide more satisfactory services and resolve barriers to be faced by the consumers that will hinder their experience (Jung et al. 2018). However, the theory informs that effective organisational resources are required to be arranged by the managers and proper command is to be given to successfully implement the plan (Parker, 2016). The principle is followed in the hospitality industry where the managers are seen to be identifying technological equipment as resources and technologically as well as manually efficient human resources in accomplishing the future plans with efficiency. As asserted by Edwards (2018), fayol’s theory is beneficial to be used as it promotes the concept to work as a team and ensures motivation of the employees through fair compensation for effective management ion the organisation. The aspect is well-understood by Mad Hatter Hotel and they provides equal compensation to all employees based on their performance to ensure fair management. As argued by Peaucelle (2015), inability to maintain fair compensation for the employees makes them feel lack of value. The lack of value leads employees involve into conflicts with leaders as they feel they are being discriminated and not remunerated properly for their work effort creating a chaotic management within the organisation.

3. Explaining the role of leader and different leadership style in the technologically driven service industry

The role of the leader is to envision the future of the organisation, align the vision and ensure implementation of the vision in a proper way to achieve better future for the organisation. They also have the role to guide and motivate employees to achieve the envisioned future (Liao et al. 2017). This is because the leaders are qualified to understand the way actions is to be made and resources are to be used by the employees to reach the determined future they have seen for the organisation. In the hospitality industry, leader who follows the transformational leadership style are the ones that seek changes in the business by inspiring the employees to execute and implement innovation at work (Mohamed, 2016). This is because leaders by inspiring employees to innovate would be able to implement new ways of delivering services with the use of technology that is going to offer better satisfaction to the consumers. In contrast, the transactional leadership that is used in the hospitality industry makes the leaders have the role of instructing employees to execute activities and later use penalties and reward for punishing or recognising their work (Pantouvakis and Patsiouras, 2016). This is because the leader feels that through instruction the employees are able to know regarding the way they are use which nature of technology and manual services to offer the satisfaction of services to the consumers. The rewards and punishment provided by the transactional leaders for the employees are effective in the hospitality industry as rewards make employees feel inspired and motivated to work with better efficiency out of their recognition at work. However, punishment makes employees remain alert to avoid making wrong services at work, in turn, preventing negative service delivery that may hurt the sentiment as well as experience of the consumers which may make them avoid accepting services from the organisation in the future (Luo et al. 2017).

4. Reviewing the management and leadership styles in the organisation

In Mad Hatter Hotel, transformational leadership style is being followed by the leaders. As asserted by Banks et al. (2016), benefit of using transformational leadership style is that it helps the leaders to establish increased level of trust with the employees and easily orient employees to perform effectively to meet a common goal. This is evident as the employees at the Hotel is seen to inform that they have wider belief in the instruction provided by the leaders in executing any work as the instructions properly motivate them to execute their tasks in an efficient and innovative manner. Moreover, the employees inform that leaders in the Hotel efficiently instruct the goal to be accomplished and inspires them to execute the task in innovate manner by providing them required resources that help them ease at work to accomplish it with efficiency. As argued by Amin et al. (2018), disadvantage of transformation leadership is that if the leaders cannot develop well-thought decisions it can create wrong decisions which hinders the productivity of the organisation. This is because in this style the leaders are the key influencers and if they direct the employees in wrong direction then they are going to work in wrong manner in turn creating issues for the business performance. However, the leaders at Mad Hatter Hotel are well-experienced and take critically developed decision to influence employees in the right path. The leader at Mad Hatter Hotel follows democratic management style where the leaders or managers acts along with the employees to accomplish a work together rather than maintaining their subordinate image in form of them (www.madhatterhotel.co.uk, 2019). This is evident as employees at the Mad Hatter Hotel inform that the leaders communicate with them in a friendly manner and participates with them in executing tasks so that the objectives and gaol are accomplished. As asserted by Bamiatzi et al. (2015), benefit of democratic management style is that it encourages creativity and innovation through collaborative approach. This is evident as employees at the Hotel informs that they never faced being along to accomplish any task and always have assistance and participation from the leaders or managers in helping them to execute the task with efficiency. As argued by Solaja and Ogunola (2016), limitation of democratic management is that it takes longer time in accomplishing tasks. This is evident as employees at the Hotel informs that since they always have to consult with manager to make decision to execute any task they require increased time in accomplishing them and in some cases they report the managers like them are uncertain about the way of performing tasks during which they experience confusion in executing the task.

5. Analysis and evaluation of management and leadership style in relation to the organisational structure and culture

The Mad Hatter Hotel executes their management by following Hierarchical organisational structure and culture. As commented by Kang et al. (2016), in hierarchical management structure and culture, the leaders follow the strict institutional policies and procedures and the work environment is formal in nature where the leadership executed in done through coordination between different levels of the organisation. The use of transformational leadership style in relation to the Hierarchical culture has been beneficial for Mad Hatter Hotel because it helped the leaders or managers at each level to gradually contribute instruction to the employees to help and inspire them to understand the way and accomplish activities that can bring innovation and better efficiency at work to offer more satisfactory services to consumers than the present. However, the limitation of transformation style faced by the Hotel employees as a result of hierarchical structure is that sometimes employees did not agree with the manager’s decisions which lead them to face question regarding morality and increased subordination from the upper management that made them feel being mistreated at work. The democratic management style along with the hierarchical culture helped the Mad Hatter Hotel to develop a creative environment (Lee and Edmondson, 2017). This is evident as the culture supported the participation of the leaders gradually with the employees to motivate and instruct them regarding the way to execute their work in a different and new way. One of the limitations experienced in democratic leadership style is increased time consumption in making decision (Khan et al. 2015). However, in Mad Hatter Hotel, the level of hierarchical structure is quite small due to which less time is taken in decision making as quick participation of leaders are seen and information has to flow less levels before finalisation of their implementation as to be done in democratic leadership style.

6. Investigation of internal and external factors influencing management style

The financial resource of the Mad Hatter Hotel being a small organisation is quite limited. As mentioned by Leonidou et al. (2017), limited financial resource acts as a negative factor for the small organisation as they do not have finances available for developing their business. Thus, the limited finances act as negative internal factor for Mad Hatter Hotel as they do not have required amount of money to buy resources to improve the growth of their business. As criticised by Ogunyomi and Bruning (2016), lack of qualified human resource act as a negative factor as the workers provides services in a hindered manner resulting the consumers to experience lack of satisfaction diverting them to avail services from others. However, the Mad Hatter Hotel has qualified staffs which act as their strength as the employees offer homely and quality services to the consumers that stand up to their satisfaction level.

In relation to external factors, Technological factors in hospitality industry in the UK informs that updated digital devices and services are being used in offering services to consumers (www.hospa.org, 2013). Mad Hatter Hotel is seen to be technologically upgraded which is evident as they have a well-develop website where detailed information of the hotel can be viewed as well as allows online booking by consumers. This makes the external factor act as strength for the organisation as they are seen to be working in an updated manner at par with other competitive organisations. The economic factors of the hospitality industry inform that in 2017 it offered £73 billion to the UK economy (www.travelweekly.co.uk, 2017). This informs that the industry is in a flourishing stage which indicates that the Mad Hatter Hotel have opportunity of using a flourishing market in further growing their business to collect increased revenue.

7. Critical analysis of specific management styles that have been influenced and changed by internal and external factors in the chosen organisation

The internal factor of Mad Hatter Hotel informs that they have qualified employees at human resource. This has influenced the management style of the hotel to be democratic one. This is because in democratic management style the leaders are able to work with the qualified staffs of the organisation in developing collective ideas through discussion in solving the problem (Yeh and Chen, 2019). Thus, democratic management style helped Mad Hatter Hotel to develop a creative environment with collaborative participation at work where ideas are shared to resolve complex problem even being a small organisation. In contrast, the external factor of the Hotel informs that they are in an industry with strong economic and technological growth. It influenced them to implement transformational leadership style in the business. This is because transformational leaders are able to develop new corporate visions and create inspiration among employees to work harder in creating innovation and productivity in the market so that the organisation have efficiency to draw economic advantage from the market through delivery of effective to the consumers (Mohamed, 2016). Thus, implementation of transformation leadership style was influenced by the factors as through it the leaders inspired the employees to establish new innovative technology in their organisation as per seen in the market and improve services to draw increased finances from the economically flourishing industry.

8. Conclusion

The above discussion informs that Taylor’s and Fayol’s management theory are classical management theories used in technologically driven services industry such as in this case the hospitality industry. The democratic management style and transformational leadership styles are frequently used in this nature of industry as in the chosen organisation that is Mad Hatter Hotel. It is seen that the Mad Hatter Hotel follows hierarchical organisational structure and culture in managing their organisation.

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