Leadership and Management for Service Industries

This report discusses the leadership styles, management theories, and required skills in service industries, specifically focusing on the flight centre travel agency. It explores the internal and external factors that influence management and leadership style in the industry.

Leadership and
management for
service industries

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
PART 1.........................................................................................................................................................3
Management theories and leadership style within flight centre travel agency.......................................3
Internal and external factors that influence management and leadership style.....................................4
PART 2.........................................................................................................................................................6
Managerial roles in the service industry..................................................................................................6
Required Management and leadership skills in service department.......................................................7
A comparison and contrast of FCTG’s and TUI change management systems and leadership................9
Critical Evaluation..................................................................................................................................10
CONCLUSION.............................................................................................................................................10

INTRODUCTION
Leadership and management plays an important role in every industries. The ability to
manage and lead all operations in service industries is essential in company’s management and
leadership. It is necessary for the manager to develop and produce managers that can enthuse,
build respect and motivate their workforce. In any services industries effective management and
leadership are majorly essential. Flight centre travel group is the biggest travel and service
agency in Australia. Flight centre travel agency has a huge number of offices and stores under
several corporate and retail brands. This report will highlight the leadership styles and
management theories in the flight centre travel agency, as per the organizational culture and
structure. This report will also include the various internal and external factors which will
influence management structure and style in flight centre travel agency. This report will also
highlight the essential management roles in flight centre travel agency and the required skills of
current leadership and management.
MAIN BODY
PART 1
Management theories and leadership style within flight centre travel agency
Systems Management Theory
System management plays a vital role in the service industries. It provides an exclusive
approach to the management and planning of organizations. System management theory says
that the success and development of the Flight centre travel industries depends on various key
components such as interdependence, synergy and correlations between several subsystems
(Waterman., 2011). This theory helps the service industries to manage its whole systems and
facilities effectively. As per the systems management employees are the main element of a
service industry. Company should have to also focus on other success element of the
organization like workgroups, departments, business units etc., Manager of the service industries
are needed to evaluate events and patterns in their business to identify the best management
approach.
Contingency management theory
The major concept of the contingency theory is that only same management approach
cannot suitable for every organization (Wilderom., 1991). There are different internal and
external elements that will directly or indirectly affect the selected management approach.
According to this theories in every service industries they are three variables that are affect a
company structures: Leadership styles, organization size and technology being employed.
Contingency management theory assumes that a leader is a flexible enough to control the entire
changing environment in the organization. It follows many things like there is no particular
technique for organization’s management (Schepers, Wetzels and de Ruyter., 2005). In the flight

center travel agency industry managers and leaders should have to be quick or fast to recognize
the specific management style as per the current situation.
Transactional Leadership style
Transactional leadership theory is main leadership style in which leaders and managers
promote rules and regulations by followers by both punishment and rewards. If the service
industry approaches transactional theory of leader ship then they cannot accept the changes in
future and also they look to remain the things same (Shek and et.al., 2013). This leadership
depends on well organized and self motivated people who operate and work well in a directed
and structured environment. In this leadership theory leader of the flight center travel agency
values structured and ordered. They only focus on same work without changes. Transactional
leader avoid innovative and creative situations in their service industry (Shen and Chen., 2007).
Transformational Leadership Style
Transformational leadership in the service industry plays a vital role. Transformational
Leaders wants to inspire and motivate workers to enhance company productivity. In which
leaders of the company works with groups to recognized required changes, developing the vision
to advice the change (Ponting., 2020). They take necessary action to inspire and execution of the
changes. Transformational leadership has the major 4 components such as intellectual
stimulation, idealized influence, inspirational motivation and individualized consideration. All
these elements are directly related to the performance of flight centre travel agency.
Internal and external factors that influence management and leadership style
There are many internal and external factors that influence leadership and management
styles and structures in a flight centre travel agency industry (Kang and Oh 2017). Internal
factors includes employees and managers, money and resources, company culture, plans and
policies, human resources , value propositions, infrastructure size and quality, financial forecast,
labor management, equipment or plant and machinery brand equity and corporate images etc,
Managers and employees
Leaders and managers of the flight centre travel agency have to face many internal
challenges (Varela and et al., 2019). Managers and Employees are integral part of every
organization so that employees or managers have to be perfect at their jobs and all other essential
activities like provide services, facilities etc., They also should have to good at controlling lower
employees. If the service industry’s employee unable to handle all this situations and operations
then it may create huge loss for the companies and it can also decrease the performance of the
organizational structures (Stone. 2018).
Resources and money

If the company has lack of resources and money then it will become worst situation for it.
When the company has limited cash resources then it will affect the number of employees you
hire and in also influence the service equipment quality (Nallusamy. 2016). . It may create a
down situation for the company because service industry wants more resources to provide
desired services Organization’s resources such as financial resources, human resources,
informational resources, technological resources etc. If the flight center travel agency has
sufficient money and resources then they can approach whole market, improve more flexibility
to expand and grow their business (Weerakit and Beeton. 2018). Suficient resources in the
organization help to produce more services in a very effective and efficient way. It improves
company’s profitability and customers become more satisfied.
Company culture
The internal company culture is the main internal factor that influences the productivity
and quality of the service in flight centre travel agency. Company culture includes priorities,
values and attitudes of the employees (Lindhult and Hazy., 2016). It is essential for the company
that the company has employees who inspire by team work and collaboration. Sometimes
employees are dissatisfied with each other and change their attitude towards the company’s
operations then it may create difficult situations for the management and leadership in the service
industries. Both the negative and positive culture of the company directly and indirectly
influences the employees’ behaviors and their work performances.
Organization’s goodwill and image
The reputation and image of the company is an important intangible asset. If the service
industry has high and good reputation than it will creates a favorable image of the company in
the public’s mind. Bad image can’t develop any positive image and this image can destroy the
industries whole efforts to grab customers in the competitive world.
Organizational structure
The strong organizational structure plays a crucial role in every company. It’s very important
that the organization have strong organizational structure. For the perfect organizational structure
leaders have to consider properly set up a procedure for smooth work (FHKP., 2018). If the
company has unsuitable rules and regulations than it can destroy the whole organizational
structure.
Innovation
New and unique innovations in the service industries will improve the company’
productivity and performances. New technologies and ideas are very essential for every services
industry for better survival and success.

External factors includes organizational environments economy and political factors,
sociological factors, technology, environmental factors, legal factors etc.,
Economic situation
Economy is the major external factor that can affect t he any organization’s structure and
performance (Tan and Chapman. 2017). The success of the services industry is also depends on
the economic situation. Economic factors includes economic crisis, interest rate etc. so that
managers and leaders of the company should have to take major actions to create an effective
tools for facing the difficult economic conditions. Diverse economic situation can influences the
management style and structure in the flight centre travel agency. Management and leadership
have to face various economic changes such as tax rate, inflation, labor, wages, recession etc.
Technological factors
Many technological factors can affect the company’s management and leadership style.
Computerized flight booking is the main and important technical factors for the flight centre
travel agency. It can attract the huge customer base and also becomes able to approach global
customers (Pantouvakis and Patsiouras., 2016). The management and leadership in the travel
company also adopted automatic check processing system. Defaulted technological system can
diversely affects the company’s performance and services quality.
Political factors
The government’s rules and regulations are very vital for the company because all the
operations of the organization are dependent on this. The mangers and leaders of the service
industries must have to follow all the guidelines and regulations (Koutroumanis and Dixon.,
2018). If any changes occurs in the government policies and rules than it will influxes the all
functions and activities of the industries.
Sociological factors
Sociological factor is a most fundamental element because satisfying the customers
demand is necessary for every services industry’s survival. Sociological factors such as demand
and supply, customers desire, choices, quality of services etc. so the company’s management and
leadership must have to adopt effective management theory leadership style to face these
challenges. New trends and customers requirements are the main components and leaders have to
keep this in their mind.
PART 2
Managerial roles in the service industry
Management has a big role in the flight centre travel agency. Managers of the service
industries play an incredible role. They are the support system of the organization. Branch

manager of the flight centre travel agency are responsible to conduct all the operational activities
of the company and it includes customer services, administration, human resources, provide
sufficient services accordance company’s objectives. Branch manager in the service industry will
be responsible for managing and supervising company’s branch (Choo, van Dun and Wilderom.,
2019). They are responsible for the hiring and training the employees and expand their revenue.
They taking care of providing best customer service and assisting customers in a very effective
way.
A service manager of the flight centre travel agency manages and controls all the service
department team and also handles the customer service reports, repairs and interactions. They
take essential actions to build up strong relationships with the service provides and customers.
Team leader is one of the main managers in the organization. He is a person who taking
cares of developing strong team for the better results. It is essential for any company to hire
energetic team leader. Team leader should have positive in nature. They manage all the team
work and make strong connection between all the team workers.
Required Management and leadership skills in service department
There are many skills required in the management and leadership in the organization.
Management skills
Decision making – manager of the company should have a decision making skill. It is very
essential for the company to take the decision quickly and the taken decision must be very clear
and straight. Organization’s success and growth is directly depends on the decisions taken by the
manager. At the right time the right decision matters most (Gilfoyle. 1987).
Strategic mindset – effective manager of the company has a strategic mindset. It is very
essential for the company’s growth to create unique and best strategy. The best strategy will help
the company to reach the high level and expand their business globally. Strategic mindset
inspires the person to take risk for more profit.
Problem solving – problem solving skill is most necessary skill for every managers and leaders
of the company. for example if in any situation the company is in trouble and that time it is
essential for the manager to take quick and right action to solve that problem.
Communication (verbal and non - verbal) - Best communication is the main power of the any
person. It is very important to build strong relationship between others. For the successful
business, manager must have a strong communication skill. Communication includes verbal and
non-verbal communication. Managers of the flight centre travel agency should have a best
communication power because it helps to develop a perfect collaboration between the customers
and employers.

Managing discipline- Discipline is most important aspect for managed business. Managers of
the company should have to follow all the rules and policies and also direct the other employees
of the company (Cichy, Sciarini and Cook., 1991). Manager should have to provide essential
guideline and advices to the workforce to conduct the service operations in a very discipline
manner.
Dealing with conflict- Management should have a power to strongly deal with any conflict that
are arises between the work operations. They have a strong knowledge to solve the conflict
situation and make the better workplace again.
Motivating- motivation plays a major role to conduct any work without any barrier. Motivated
management will inspire the other workforce for new and innovative ideas. It also encourages
doing complex operations and taking necessary risks. Motivated people in the organization help
the company to reach at next level and become a successful service company.
Team dynamic- This is also another important skills that is required in every management team.
Team dynamic nature of the management focus on improving the team performance and give
necessary directions to build positive results. In this, management develops the trust between the
employees. They forces for collective teamwork and decisions. A management with good
dynamics may be productive and more constructive.
Leadership skills
Positive attitude- Positive attitude is the most necessary for any successful business. Positive
attitude of a person can achieve anything in the whole world. Positive attitude is vital in the
management and leadership of the company. Leaders of the company should have to keep
positive attitude in any situation. They should have a strong mindset to remain positive and take
decisions accordingly.
Trustworthiness – Leader should have to build a great trust in the whole organization. All the
leaders of the flight centre travel agency must be trustworthiness (Shek and Lin., 2015).
Trustworthiness people attract more customers and build better relationship with them.
Creative thinking – the leaders of series industries must be a creative thinker. Creative thinking
is the best skill of a person that can inspire the people to take innovative steps for the great
success of a company. Creative thinking of a leader can increase the organization's performance
and insists to expand the service business internationally.
Responsible – Company’s Leader must have a quality of bei9ng resp9onsible in every situation.
Responsible leader helps the business to reduce unnecessary errors in the operations. It also helps
the company reducing over load and burden of the work.
Global outlook – leader should have a global outlook quality. In any service industry global
recognition is very necessary. Global outlook nature of the leader will help the organization to

increase their business globally (Chen and Yang. 2012). It also inspires the other workforce to
give better performance for global recognition.
Transparency – Transparency is also a major essential skill of every leadership and
management. Transparency is the key factor of the strong connection of employees. Leader
should have to maintain a transparency in the all the work procedure so that they can gain an
unbreakable trust of all employees.
Tech management skill – Technology plays a crucial role in every service industry. Every
leader in the company should have a technology management skill. It means leaders have ability
to indulged new and unique technologies ion their operations and manage it effectively.
Emerging the new technologies in the company’s operations can enhance the organization’s
services and improve performance. Managers should have an ability to use correct technology in
correct opportunities and challenges. Managers and leaders should have to continously upgrade
themselves on new technologies and operating systems to face the challenges (Huq and Stolen.,
1998).
Diverse team management – leadership must have a skill to manage their team with more clear
consultation and collaboration. They also have to learn to develop cultures in every difficult
work environment so that organization becomes more diverse.
Emotional intelligent - Emotional intelligent is also a more important factor of business
principles. According to the emotional intelligent leaders should have to become a self aware,
means they must have knowledge of their strength and weaknesses (Wu and Li., 2015).
Managers and employees needs to have the perfect soft skill assessment.
A comparison and contrast of FCTG’s and TUI change management systems and leadership.
The change management model has been considered as the useful aspects which make proper
descriptions over simplification of process which have the involvement of the further level of
success by implementing various strategies to get proper level of acquisition of talent
management.
As per the proper level of acquisition for the talent management among the employee for
understanding the various aspect of change management in working of organization in
developing the essential leadership and motivation among the employee in perfect manner.
FCTG’s want to have change set management in term for developing the technological
advancement in the firm by implementing the training and staff retention activities to increase
productivity in perfect manner (Rosenbaum, More and Steane, 2018). The FCTG’s have
applicable the Kurt Letwin model of change management dividing the whole process in three
stages by shifting the bitesize chunks. On the other hand, TUI has the same issues in which they
have implemented the ADKAR model which is the bottom up methods which have the major
level of focus on their individual behind the respective change. On the other hand, the TUI is

considered to be more efficient in developing this change management as they have created
awareness among the employee regarding technological advance by implementing the situational
leadership which will have the preventing from over-reaching with drastic shifts.
FCTG have been easy to understand the procedure in the real spin which is making the game
difficult in each perspective by integrating the three-stage theory along with force field analysis
in order to have motivations of people towards the respective changes and understanding the
resistance in perfect manner (Hayes, 2018). The firm has developed the democratic leadership to
make employee free from pressure and provide their suggestion over the challenges which are
faced in implementing effective level of change management.
Critical Evaluation
As per the critical evaluation, it has been identities both the companies have implemented the
different management model for change in company’s along with different leadership for the
better cause and development. There is more level of difficulty in being faced by the FCTG
Company as compare to TUI. The pros of the Kurt Letwin mode is that Due to the scale of the
unfreezing process, Lewin’s model can be difficult and time-consuming to enact. This isn’t
necessarily a problem (since the changes highlighted are often massive and require a large time
investment anyway). This has the requirements fun the in-depth analysis with acceptance of
massive changes (Brown, Rose and Gordon, 2016). But the companies have the clear level of
succession in drastically changing the environment and meet the need for company by also the
excelling the uncovering level of hidden intakes. The ADKAR have faced the following issues of
lacking the large level of alterations as being the bottom up styles macro level of management
have been ignored. In other words, to can establish there TUI company manager have loss the
major reason for change and let the flow of employee never to adjust method.
CONCLUSION
From the above report, it is concluded that the leadership and management are the main
pillars of every organization. Without the effective management and leadership company can’t
even survive. Talent management plays an integral role in the Flight centre travel group. The
whole process of company’s operations and activities successfully completed with the accurate
talent management. The service industries must to adopt all the management theories a d
leadership style in their operations because it assists to improve employee’s performances and
operations. Effective management theories and leadership style helps to inspire the whole
workforce for achieving organizations success and goals. It is also concluded that the many
internal and external factors of the business can directly and indirectly influences the
management and leadership style of an organization. The well organized management and
leadership style build the strong structure in the Flight centre travel group. It is also concluded
that the management and leadership skills are most essential for the successful development of a
company. For the successful implementation of changes it is essential to follow best management
theory and leadership style.

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