Leadership and Management for Service Industries

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