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Impact of Digital Technology on Management & Leadership

646 Downloads1 I Published: 12 Nov ,2019

Introduction

Leadership refers to activities associated with leading people within the organisation towards success. It undertakes all the actions which are associated with influencing and motivating staff towards performing up to their full potential. Management, on the other hand, is linked to planning, effectively organising, monitoring, directing and lastly controlling each and every aspect, activity and resource of a company to attain organisational objectives (Gloppen, 2012). The report is based on impact of digital technology on management and leadership within various restaurant chains, namely Hazev, Haz and Tas. It consists of a brief review on classical management theories and leadership styles and factors influencing different management styles and structures in service industry. The report also covers current and future management and leadership skills and their role in service industry.

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Task 1

P1. Classical Management Theories and their application in service industry

It is crucial for organisations to effectively apply the previous works of theorists which would ultimately help them in a better management of their organisations. Hazev, Haz and Tas is a renowned restaurant with almost 12 branches in Central London. There are various classical management theories which could be applied appropriately in this organisation. These theories are mentioned below:

  • Frederick Taylor's Scientific Management:

F.W. Taylor presented the theory of scientific management which were based on few principles. The agenda of these principles was to encourage the usage of scientific methods to perform activities efficiently rather than relying on judgements. Thus, managers at Hazev, Haz and Tas must develop appropriate methods through which each task related to their restaurants, bars and cafes must be accomplished (Wang and Hsieh, 2013).

Another aspect which was weighed by Taylor was specialisation and standardisation. Thus, various tasks and activities within Hazev, Haz and Tas must be broken down sequentially into smaller steps. Thus, marketing, finance as well as restaurant managers at the firm must effectively allocate duties to their subordinates that best suit their abilities. Moreover, training too must be given to them to excel their performance within these branches. According to this theory, for successful working, managers as well as subordinates must appropriately coordinate.

  • Henri Fayol's Administrative Management Principles:

Fayol presented various principles in his theory which has been labelled as modern management techniques. Moreover, he used a top-down approach unlike Taylor, which arises significant differences in the theory as well as its application within the organisation.

According to his theory, it is crucial for an organisation to appropriately consider situations that could be faced by managers. In addition to this, this theory could help managers of Hazev, Haz and Tas to enhance their competence within their management role.

Its application within the organisation could effectively be centralised on the role of managers. For instance, there must be a unity of command within the organisation which requires a direct supervision on each employee. In addition, there must be a unified plan which must be followed by each personnel present in the firm. Moreover, managers must align the goals of organisation with that of individual to effectively establish coordination within the restaurants (Birasnav, 2014).

The theory also states that employees of Hazev, Haz and Tas must be included effectively in the decision making process of these restaurants. This would help them engage their employees further and it would help managers in establishing a sense of commitment towards the firm.

Thus, classical management theories must be well applied in Hazev, Haz and Tas to ensure a favouring and effective environment towards achieving success.

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P2. Role of a Leader and different Leadership Styles in a service industry context

Service industry is quite customer oriented which requires each organisation to function effectively each day to provide top service quality as per the set standards and customer preferences. It is a very complex job and it is very essential that it is a consistent practice within service sector organisations.

A leader is an individual who commands as well as leads group of individuals of an organisation towards achieving their personal as well as professional goals effectively. They have a prominent role in service sector which is briefly discussed below:

  • Morale Building:Each individual working in service industry are required to function at their full potential daily. It is expected and required of them to consistently perform their duties and be utmost productive for their companies. Since, it is a very complex activity, leaders play a role of motivating these employees to ensure consistency in their competence and fulfilment of their duties.
  • Vision Creation:Another prominent role of a leader in service industry is that they effectively help in creating a favourable vision which is essential for each employee within service sector organisations to align their personal and professional goals. They persuade every employee within their company in order to work to achieve this vision and increase the odds for improvement.
  • Change Management:Service industry is one of those few sectors which require drastic changes to occur within their companies. Since change is often resisted, leaders play a role of managing and implementing change within their respective organisation. They communicate this change and possible outcomes with their subordinates which helps in channelising their efforts towards implementation of this change.

As for leadership styles, different styles have different role to play within the service industry. These respective styles are mentioned below:

  • Autocratic Leadership:Authoritarian Leadership plays a crucial role in many circumstances within the industry. It refers to the style where a single entity exercise all the authorities as well as decision-making power. It plays a crucial role as leaders, through this leadership guide their employees in times of extreme pressure, which is common for service sector organisation. Another role it plays during decision-making in case of important events. This is because employees tend to be reluctant to take up leadership and accountability. Autocratic leadership plays a role in such scenarios where leaders allocate duties, responsibilities, objectives and timescale for their achievements.
  • Democratic Leadership:It refers to considering individuals in decision-making process. In addition, this style of leadership also plays a crucial role within the sector. For instance, it helps in boosting creative thinking within the company. Moreover, with consideration of effective ideas provided by the workforce, democratic leadership would appropriately ensure employee engagement and better outcomes in their business operations.
  • Laissez Faire Leadership:This leadership style too has a significant role in the industry. It makes employees competent enough in problem solving which increases productivity of each business within the company. Another role it plays is optimum utilisation of resources which is essential for a business. Leaders provide their business organisations with only those resources which are decided fit by the subordinates. This provides effective utilisation of the same.

P3. Management and Leadership styles in Hazev, Haz and Tas

Hazev, Haz and Tas are considered to be one of the most effective restaurant chains in the UK. The company has Turkish ownership and thus, its culture supports a more conventional following of their traditions. However, the culture also supports inclusion of international cuisines and the restaurant chains effectively believes in serving best food to its customers.

As for structure. The firm has following organisation structure:

Hazev, Has and Tas focuses effectively on developing and keeping a more horizontal structure rather than vertical which allows the company to effectively enhance the scope of their success. This is because according to the company, the structure of these chains allows them to communicate effectively, solving complex problems, etc.

Its culture and structure are the two determinants which decide the kind of leadership style which would be followed within the company. As of now, three current leadership styles are being adopted by these chains. However, application of each leadership style depends heavily on the kind of objectives they wish to accomplish. These styles are reviewed below:

  • Authoritarian Leadership Style:It is an alternate term used for Autocratic Leadership. Senior managers like Finance and Marketing Manager use this leadership style in terms of ensuring effective service quality. Managing Directors as well as managers within the restaurant treat this aspect as a crucial factor which could enhance its profitability. Clear instructions are provided to subordinates and their tasks are well defined by managers who are then required to perform effectively to accomplish their duty. Moreover, they monitor the performance of each employee and make critical decisions to keep their performance consistent.
  • Hands-off Leadership Style:This is the name given for Laissez Faire Leadership style. Managers of Hazev, Haz and Tas apply this type of leadership within the company in case it requires them to take simple decisions in their daily routine. For such decisions within their team, managers let employees effective authority and decision making power to operate as per their desired methods to produce better outcome. Another agenda for its application is that it helps the managers to build effective and long-term employee relations.
  • Consensual Leadership Style:This leadership effectively undertakes encouragement of agreement as well as acceptance which effectively guides them in taking better actions. According to Hazev, Haz and Tas managers, employees within the chains are skilled, yet information is required to be provided to the employees of this organisation to effectively perform their duties, such as, how to calculate various ratios. This information shapes up their duties and tasks in a way which bring maximum productivity. Thus, to achieve this and encourage acceptance of methods adopted by the managers, consensual leadership style is followed by this company.

Hazev, Haz and Tas effectively use a blend of all these leadership styles which are necessary for them to operate in a consistent and diversified manner. Moreover, it helps them to take better decision and effective exercising of their managerial power.

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Task 2

P4. Internal and External Factors influencing management styles and structures

There are various factors in the internal as well as external environment of an organisation which affects the management styles adopted by the managers. It is very important for managers to effectively analyse these factors to ensure a smooth running of business organisation.

Management styles and structures of Hazev, Haz and Tas are influenced by certain internal and external factors which are mentioned below:

Internal Factors

  • Leader's Personality:

Personality of managers within the restaurants influence leadership styles and structure heavily. It is an effective determinant and convenient as it is in alignment with the nature of leader, which enhances its success rate as well. All the managers within Hazev, Haz and Tas effectively follow different management styles based on the situations. These individuals are adaptive and there are different aspects influencing the kind of management styles they wish to follow. For example, managers use authoritarian management style for maintaining service quality. Standards are set and clear instructions are given to effectively maintain consistency in the quality of restaurants. However, while provision of information, consensual management style is adopted. Strength of this external factor is that it helps in maintaining a dynamic environment where employees could access power on various occasions, making them competent. However, there are chances of mismanagement through implementation of different management styles.

  • Employee Diversity:

Diversity in workforce is another internal factor which influences management styles and structures. For instance, if the staff is unskilled, a more vertical structure is formed considering more personnels to supervise daily tasks. However, skilled workforce require a more horizontal structure. Where management styles are concerned, it directly relates with diversity. As an example, the restaurants would follow Authoritarian Style if employees are from different culture to reduce communication barriers. However, a more democratic style could be adopted if a unified culture is being adopted within the company. In context with Hazev, Haz and Tas, the workforce is quite skilled and each employee have effective knowledge about their work which has resulted in a more horizontal structure, as well as hands-off management style while simple decisions are to be taken.

External Factors

  • Political and Economical:

An external factor which influences the structure as well as management style of an organisation is the external environment, particularly political and economical dimensions. Currently, due to political and economical instability due to Brexit, the structure and leadership styles of Hazev, Haz and Tas has witnessed changes. While the structure is focusing on being horizontal for effective communication to take place and effective problem solving, the firm is adopting almost all the types of leadership styles favourable for company as well as employee. This in turn is providing effective environment for employees to work.

  • Digital Technology:

Another crucial aspect influencing structures and leadership styles is digital technology. Service industry in the UK is experiencing transformation due to inclusion of digital technologies within their operations. Hazev, Haz and Tas is also adopting digital technology in their operations to enhance the services and internal management. Moreover, the chains have witnessed changes in management styles due to due to this technology. Management styles within the restaurants are influenced as Digital technology helps these managers in increasing profitability. However, it induces changes in terms of implementation. While implementing digital technology, the managers adopt authoritarian style as clear instructions and training is required. However, consensual leadership style could be adopted later to enhance the effectiveness of digital technology uses.

Task 3

P5. Current Management and Leadership “Hard” and “Soft” Skills

Hard Skills refer to those skills or capabilities within an individual which could effectively be measured, like foreign language proficiencies, computer programming, etc. On the other hand, soft skills are the ones which are associated with personal traits of individuals, such as leadership and teamwork. Both of these skills are necessary for employees in response to change.

The ones present in Hazev, Haz and Tas are discussed below:

Hard Skills:

  • Analytics:One of the most evident management skill which is found in the staff of Hazev, Haz and Taz is analytical thinking. Each change within the restaurants is effectively analysed and performed in ways which provide maximum benefit tot he company.
  • Risk Analysis:Employees as well as the managers of Hazev, Haz and Tas perform risk analysis to determine the need of change and best alternative to implement change within the company.
  • Politics:If used effectively, this could be an essential skill within the company adopted by the leaders. Managers of Hazev, Haz and Tas have this skill which helps them in negotiating fair terms in case of enhancing favour for change implementation within the organisation.

Soft Skills:

  • Communication:An effective leadership soft skill present in managers of Hazev, Haz and Tas is communication skill. Each manager tend to communicate with their subordinates in order to make ensure their maximum support towards implementing change.
  • Flexibility:While business environment is dynamic, it induces changes in the structure and functioning of the organisation. Employees as well as managers at Hazev, Haz and Tas are flexible to cope up with certain changes.
  • Patience:It is essential for employees working in service sector to possess patience in terms of effectiveness witnessed through change. Employees working within Hazev, Haz and Tas work effectively towards getting favourable returns from changes implemented within the company.

Thus, these current soft and hard leadership and management skills within the organisations help in effectively coping up with change and appropriately respond to the same. It would allow an organisation like Hazev, Haz and Tas to effectively manage and monitor implementation of change within the organisation.

P6. Future Management and Leadership Skills

Digital Technology has been an important component in recent times where service industry organisations are concerned. However, with its implementation in Hazev, Haz and Tas, it has effectively carried out need for its staff to develop new soft and hard management and leadership skills. The chains use digital technology for variety of functions such as data collection, record keeping, analysis of information. Moreover, the firm also uses the same for daily tasks such as time schedule preparations through combining activities like sales number and labour cost.

However, it has develop the need of various soft and hard leadership and management skills which are mentioned below:

Hard Skills:

  • Data Mining:This skill is very much important for managers and employees of Hazev, Haz and Tas to effectively collect accurate and precise data for the organisation.
  • Machine Learning:Another prominent managerial and leadership skill required for digital technology is machine learning which would allow implementation of new equipments and machines within the restaurants to strengthen the functioning of the company.

How this skill could be achieved:

All these skills could be effectively achieved through ensuring proper training and development programs within the company. This would allow the managers to train each personnel in developing these skills effectively which is essential for acceptance of change in terms of digital technology.

Soft Skills:

  • Persuasion:Perhaps one of the most crucial skill to be developed for digital technology is persuading the employees to work towards supporting the change and implementing digital technology in Hazev, Haz and Tas.
  • Teamwork:Another skill which has been induced through digital technology is teamwork. Employees within Hazev, Haz and Tas are required to work in groups where each member must support the other in terms of enhancing each other's familiarity with digital technology.

How this skill could be achieved:

Both the skills could be achieved in Hazev, Haz and Tas by developing an organisational culture which is in favour of changes, especially in terms of technology. This is because with changing market and new advancements, it is essential that employees and managers stay ahead to manage their firm better and provide effective customer service.

Managers Dealing with Change

According to the finance manager of Hazev, Haz and Tas, change within the organisation in terms of digital technology caused resistance. It is natural as employees become accustomed to work in a specific way. Managers in the restaurants tend to adopt consensual approach and moreover, to effectively reduce challenges, they ensure effective transition by communicating the benefits of digital technology.

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Task 4

P7. Comparison of Different Service Industry Organisations Change Management Systems and Leadership

It is imperative that service industry organisation effectively compare their change management systems to effectively enhance its shortcomings and working effectively to manage change in a better way. One such restaurant is The Wolseley, which has implemented digital technology. However, there is a vast difference between the change management systems of this restaurant and Hazev, Haz and Tas. The key differences are highlighted below:

  • Flexibility:One feature within the change management system of organisations includes its ability to adapt to the need of change. While The Wolseley is quite rigid in its approach and tend to follow a single method for a long time, Hazev, Haz and Tas effectively adapts to this need and work towards changing its processes. Its leadership is quite effective to maintain flexibility in its systems.
  • Conservation:Another feature similar to flexibility is conservation, which means that despite being flexible for change, it is essential to be open and welcoming to new changes within an organisation. The Wolseley is effective enough to adopt digital technology in its operations and it is effective in terms of performance. However, Hazev, Haz and Tas is still conservative in terms of digital technology. This arises the need for improving the change management system of the company. The leadership within the restaurants must effectively enhance familiarity of its employees to new developments in the market.
  • Consistency:Change is inevitable, and to effectively perform effectively in the market, an organisation must be consistent enough for to adopt new and appropriate methods and techniques of working. The Wolseley is very much consistent where adoption of new technology is concerned, however, Hazev, Haz and Tas need to adopt new technology to ensure better management of their restaurants.

Thus, it could be summarised through this information, that Hazev, Haz and Tas must adapt to technology and modify its change management systems in order to effectively ensure success and stability. Hazev, Haz and Tas must effectively adopt to new technologies and a unanimous technological systems for all the restaurants for better integration of activities and better management.

Conclusion

Thus, it is concluded that leadership and management is necessary for an organisation to ensure timely and consistent success. It is important to determine management and leadership styles in order to develop effective patterns to be followed and the most apt style to be adopted during various situations. It is crucial that internal and external factors be analysed to determine their impact on management styles of a company. Digital technology is important to be adopted and it is imperative that workforce and manager develop soft and hard management and leadership skills to achieve the same. Lastly, it is of utmost importance that comparisons be made regarding change management systems to ensure better management through recommendations.

References

Books and Journals

  • Birasnav, M., 2014. Knowledge management and organizational performance in the service industry: The role of transformational leadership beyond the effects of transactional leadership. Journal of business research. 67(8). pp.1622-1629.
  • Gloppen, J., 2012, September. Service design leadership. In Conference Proceedings ServDes. 2009; DeThinking Service; ReThinking Design; Oslo Norway 24-26 November 2009(No. 059, pp. 77-92). Linköping University Electronic Press.
  • Wang, D.S. and Hsieh, C.C., 2013. The effect of authentic leadership on employee trust and employee engagement. Social Behavior and Personality: an international journal. 41(4). pp.613-624.
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