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Examine the impact of different management and leadership theories on organisational strategy and structure

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Case Study

Based in central London the European Club was founded in 1900.

The club is a non-profit making charity whose good works for the last 100+ years include

offering scholarships for gifted children from poorer countries the opportunities to study in the

UK. The Charity is governed by a Board of Trustees who also form part of the Board of

Directors. The CEO sits on the Board of Directors whilst the General Manager and

Club Secretary report into the CEO.

The vision and mission statement is represented as “High quality hospitality at

affordable prices.” A statement of values has been an agenda item for almost a year but

has not been actioned.

Revenue for the charity is derived from the operation of the central London ClubHouse

(situated in a fashionable street in Mayfair London W1) containing a very ‘dated’ and largely

unused waiter service cocktail bar called The Fox and Hound, a 50 seat restaurant called The

Dining Rooms, 4 function rooms (no in-built meeting room equipment) and 50 bedrooms

which it hires to club members for a highly subsidised amount of just £75 per night. Many of

these rooms have not been refurbished in quite a while.

The building itself has a certain faded grandeur but is in need of some much needed planned

and reactive renovation and maintenance to furniture, fixtures and fittings. Some of the

systems in the ClubHouse, including reservations and front office, are still on Excel

spreadsheet functions. A manual process is used for creating reservations for the

bedrooms, restaurant and bar and function rooms. There is however an online payment

system used but there are three separate systems, one for each department. Wifi is available

throughout the ClubHouse.

Many of the staff have been there for many years and the way things operate have not

changed for a long time. Whilst familiar and comfortable with the current ways of doing things,

the staff often complain about the amount of time it takes and the inefficiency of the systems

in place. There is a very defined hierarchy and staffing structure in the departments. The

organisational chart below details the restaurant, bar and event management departments.

Staff are not encouraged to make decisions without reference to the Head of Department nor

are they encouraged to put forward new ideas for enhancing or improving practice. Any

changes to practice are often from the top down and staff opinions are rarely sought.

Morale, as measured by a small yearly staff survey, appears low, and many of the younger

staff leave after just a couple of months citing lack of opportunities and poor training as a

cause. The survey also shows that staff are not happy with their manager and feel that they

do not get praised or rewarded when they do a good job.

The previous CEO had been with the charity for some 30 years and very much left the

management of the club to the General Manager, who also retires later this year. The

new CEO of the charity believes that there is a lot more that might be achieved, and good

works undertaken, if the operation itself makes more money to invest into the charitable

works, and she firmly believes that the organisation is underperforming and is inefficient.

Membership of the club has been falling steadily over the past five years and now stands

some 50% of its original membership. A recent member survey shows significant

complaints about the conditions of the facilities, especially the restaurant and bar which the

members use to entertain as well as the drop-in customer service as well as the general lack

of organisation.

The CEO has approached you and wants to employ your HR consultancy services to

address the strategic HR issues around a modernisation plan for the restaurant and bar

facilities of the club.

The modernisation and renovation programme will include the following:

1. The refurbishment of The Fox and Hound Bar, the Dining Room and the function rooms

2. Training and development of all staff on the new processes connected to the Bar,

Dining Room and function rooms.

The refurbishment has been given to an architectural firm that will employ its contactors and

manage all the building work. They have promised to work to the project deadlines. Naturally,

this will mean the members of the club paying more for the services; however, this will bring

the charges in line with similar institutions and facilities.


The CEOs biggest concern is how to undertake this project with the minimum of disruption to

both members and staff. It is not an option to shut the club down completely during the

project. Business as usual, as much as possible, must be maintained.



Task 3 of 3 – Report (AC 4.1, 4.2, 4.3, 5.1, 5.2 & 5.3)


Having done all of the preliminary work for the ClubHouse, you should now write a

report in which you should:

• Examine the impact of different management and leadership theories on

organisational strategy and structure.

• Describe the impact of organisational strategies, structures and culture on the

management of HR.



• Determine the effectiveness of the current ClubHouse HRM, and critically discuss the

link between leadership & management and HRM.

• Present an analysis of how the existing culture and structure of the ClubHouse might

impact on the success of the ClubHouse project and the motivation of the staff.

• Explain how you would develop, monitor and evaluate a leadership strategy that

supports the development or revision of the ClubHouse organisational mission, vision,

values and objectives.

Delivery and Submission:

• 1x Report (2000 words) excluding TOC, diagrams, references and appendices


• Each section must reflect any supporting Harvard style citations.

• A comprehensive Harvard style reference list must be included at the end of the



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