Leadership and Management in Service Industries: Case Study Report

This report provides a comprehensive analysis of leadership and management principles within the service industry, utilizing the TUI Group as a case study. It begins with an overview of classical management theories, including administrative, bureaucratic, and scientific management, and their application in the service sector. The report then explores various leadership styles, such as autocratic, democratic, and laissez-faire, and their impact on organizational culture, including power, role, task, and person-oriented cultures. The role of leaders as motivators, decision-makers, and innovators is examined. The report highlights the advantages of democratic leadership, particularly in adapting to technological changes and fostering employee engagement within TUI Group. Furthermore, the report discusses the internal and external factors influencing management styles, the current and future skills required in the service sector, and change management systems. The analysis underscores the importance of leadership in driving business performance, employee satisfaction, and the successful integration of new technologies.

Leadership and
management for
service industries

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Different types of classical management theory ..............................................................1
P2 Role of leaders and different types of leadership style.....................................................3
P3Management leadership style in service industry and their comparison ...........................4
P4 Management and leadership style in service industry.......................................................5
TASK 2............................................................................................................................................7
P4 The internal and external factor that influence management styles and structures\..........7
TASK 3............................................................................................................................................9
P5 Current management and leadership ‘hard’ and ‘soft’ skills in service industry:.............9
P6 Future management and leadership skills required by service sector.............................11
TASK 4..........................................................................................................................................12
P7 Comparison and contrast different service industry organisation change management
system...................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Leadership and management is the main function of each business industry. It is use to
manage the business functions and motivate employees in order to complete task. Leadership
refers the position of guiding people and ability to lead within organization in order to achieve
goals. Management is the main part of business that help to manage the business activities. It is
important for all companies to manage the business activities in order to achieve goals
(Lindblom, Kajalo Mitronen, 2015). To know about importance of leadership and management
TUI Group has been taken. Tourism Union International is a German travel and tourism industry
that provides travel and tour services. The current report emphasis on different topics like as
classical management theory, leadership and management style, TUI's classical management and
leadership which relates with theories. Moreover, report will cover role of leader and different
types of leadership style that help to maintain the productivity and increase the profitability.
Task 1
P1 Different types of classical management theory
Classical management theory considers only physical and economic needs of workers
that should be complete for achieving organisation's goals. This is past management theory that
involves only basic needs of employees. In TUI Group, managers focuses on different types of
classical management theory that are given below:
Current management theory
Administrative theory: This is developed by Henri Fayol, that can be consider as a
present management theory. It states that organisation must conduct all business activities which
is beneficial for company. It can be apply by TUI Group in primary business activities that may
give detailed guidelines for company's managers. For instance, TUI's manager make plan to
spread out the business by applying new technology in order to increase the number of
employees. This theory helps to improve the efficiency of management so that processes can be
standardized and then move to the operational level where individual workers learn changes
within organization. The management of TUI uses administrative theory to perform their routine
activities and manage their operations smoothly that helps to achieve goals and objectives.
Moreover, it emphasis on efficiency of workers at operating level in which management improve
efficiency of workers (Types of Classical management theory, 2019).
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Future management theory
Bureaucratic theory: This theory is based on systematic formation of any organization
that helps to give efficiency and effectiveness in business activities. This management theory can
be used by company to navigate constant changes and difficulties. This is mainly used to adopt
the new technology in order to accept the changes. Manager of TUI group can apply this theory
for the purpose of increasing efficiency and economic effectiveness by adopting new technology
within industry.
Scientific management theory: This theory is propounded by Frederick Taylor which
should be use by organisation to minimise the waste and decrease the production times. This
theory that can help TUI Group to increase the production by influencing people and reduce
wastes with the employee's efforts. The management of TUI focuses on wastages and make
efforts to increase the production that helps to achieve goals and objectives of business
organization. Moreover, it helps perform operational activity smoothly that increase profitability.
By using this theory TUI can improve the operations of business organisation with the help of
new technology such as web communication, new IT techniques etc. This theory mainly focuses
on employees performance and give them incentives working well within organization
(Scientific management theory, 2018).
Management and leadership style in service sector that relates to organisation structure
and culture
Organisation culture considers company's expectations, philosophy, experience and
values which is needed to be together and helps to achieve organisation's goals. The culture of
organisation affects productivity and performance of business industry. TUI focuses on
organisation culture by focusing on Handy's theory which is defined as:
Power: This means power is given to few person within organisation who can make
business in order to spread out. This is a strong culture which can be used by TUI Group's
manager as they have power to make instant business decision in order to achieve goals by
applying new technology (Organizational culture, 2019).
Role: This culture is based on rules which need to highly controlled with everyone in the
company by knowing their roles and responsibilities. It is built on detailed organisation structure
that is typically tall with high chain of command. In other words, companies with role cultures
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seems to be very hierarchical bureaucratic. In TUI Group, managers determines employee's roles
that help to perform task effectively (Role organizational culture, 2019).
Task: This culture is formed to address particular problems or progress projects within
an industry. According to this, task is important which is delegating among employees in order
to complete the task. For instance, manager of TUI Group may use this culture by dividing the
task between employees according to their specialisation.
Person: Person is the important or superior within organisation who makes efforts to
accomplish the goals. In this culture, people believes themselves as they are superior of business
and can make effective business decision. In TUI Group, managers focuses on people and their
needs that help to complete task and achieve goals (Person culture, 2019).
TUI Group is using task culture that help to define the task among employees according
to their skills and experience. This is present organisational culture which helps TUI Group to
attracts people by adopting new technology. The manager of business industry divide the task
and make efforts to complete the objects (Shek and et.al., 2015).
P2 Role of leaders and different types of leadership style
Leaders play an important role in a business industry as it help to to motivate employees
and provide them guidance to accomplish goals. Leader is a person who has ability to influence
people or group of people for attaining objectives. For instance, leader of TUI Group want to
improve business performance by adopting new technology that helps top achieve business
goals. For this the role of TUI Group's leader are defined as:
Motivator: The leader of TUI Group play a role of motivator in which they motivates
staff to understand the new technology and accept in order to implement within organisation. For
instance, the leader of TUI get information about new technology and shares with employees, in
which they motivates employees and provide to adopt new technology and achieve business
goals.
Required at all level: Leaders of TUI plays a role of persuasive that means is required at
all level as it helps to get operations works by formulating plans and policies. For example, In
TUI group, leaders prepare plans and policies in for completing the operating work and assign
task in all department of business organization that helps to introduce from new technology and
maintain profitability.
Manager's role
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Decision maker: In TUI Group, managers perform a role of decision maker in which
they decide which and when new technology should be introduced in order to increase the
productivity and profitability (Francioni, Musso and Cioppi, 2015). For instance, manager of
TUI Group play make decision regarding new technology within organization that can be helpful
to increase the productivity of such organization.
Innovator: The manager of TUI Group play another role of innovator in which they
make plans to bring new innovation in business by using new techniques and new services that
attracts customers. It helps to expand the business by using new technology (Wang and Dass,
2017). For instance, Manager of TUI innovates new thing that will be beneficial for organization
and helps to capture more market share.
P3Management leadership style in service industry and their comparison
Management and leadership style helps managers to complete the goals by applying best
leadership style that can help to accept new challenges and increase productivity. It provide
guidance to employees how to address the problems and can solve in order to accomplish the
targets. Herein, different types of leadership styles are stated as:
Autocratic leadership style: This is rigid which creates lots of misunderstanding among
employees. In this management style, managers have authority to make decision without sharing
with employees. Managers become rude and authoritative who makes single decision impacts
negatively on business industry (Autocratic Leadership, 2019).
Democratic style: This is soft and opposite of autocratic management style in which
employers make decision with the concern of all employees and make effective business
decision. It is good leadership style for TUI as compare to autocratic that helps to take decision
collectively for completing goals.
Laissez faire style: This management style is also effective that helps to make decision
after majority of employees who engages in business activities. The manager of TUI business
organisation can use this style in order to select changes and motivates employees in order to
attain goals.
From the above discussed management and leadership style TUI Group is using
Democratic leadership that is helpful to accept digital technology in their business. TUI uses
democratic leadership style because when it receive any big order from clients and use new
technology then it needs to share with employees who understand their problems and suggest
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what need to do and how it can be fulfil their orders. Sometimes, employees does not accept
changes then democratic style helps to accept changes easily and maintain productivity. In this
style, manager of TUI Group shares information with employees and make business decision
collectively that helps to complete goals in effective time period. Moreover, by using this
management and leadership style, manager can make adopt the new technology in order to
attract the customers and increase the productivity. Therefore, this is beneficial for TUI Group as
they can get advantage of reducing conflicts among employees which are arises within
organization. As employer communicates with employees that helps to adopt new technology
and maintain productivity effectively.
P4 Management and leadership style in service industry
Management and leadership style such as autocratic, democratic and laissez faire
leadership style are using by organisation for completing task and increase the profitability by
using digital technology. The TUI Group is travel and tourism company who owned travel
agencies, hotels, cruise ships, airlines and retail stores in order to improve profits within service
industry (By and Burnes, eds., 2013).
TUI Group is using democratic leadership style that is a technique which is used to
perform better job by providing satisfaction due to control and autonomy. This leadership style
helps to make effective business decision within organisation. For instance, TUI Group want to
increase their performance by using democratic style that helps to solve complex situations, build
team based relationship for sharing information and make honesty on top priority for the purpose
of increasing business activities. The manager or leader of TUI Group innovates new ideas by
using digital technology and finds the solution of problems in company. This is best leadership
style which is using by TUI Group as it get ideas from employees and make correct business
decision about accepting changes collectively. The advantages and disadvantages of
management leadership style are given below:
Advantages:
 It is helpful to accept the new technology with the sharing information with all
employees.
 It helps to improve relevant knowledge of team in TUI Group that helps to improve
capabilities of their team through democratic leadership style.
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 It gives a higher level of job satisfaction to TUI Group's employees that helps to
accomplish goals in given time.
 By using this style manager and employees can solve complex problems which are arises
within organisation.
 It helps to build relation among employer and employees by using democratic leadership
style that help to works as a team (Carpenter-Hubin and Snover, 2013).
 Moreover, it improves the relevant knowledge of TUI's team that help to accept the
digital technology in order to provide new or attractive facility to customers. It also helps to create the high level of satisfaction among employees and employers.
Disadvantages:
 It is time consuming leadership style that take too much time to make effective business
decision.
 It does not provide true consensus and results due to interference of number of
employees.
 It may be drawback for TUI's Group as it do not always offer a positive outcome due to
having changes in people's taste (Ferlie, 2013).
Evaluation of current management and leadership style that links with theories
TUI Group is using administrative current management theory and current democratic
leadership style that help to accept the digital technology within organisation in order to attracts
more customers. Both are interlinks with each other such as by using current management theory
it can focus on operating activities and motivates the employees towards achieving goals.
Democratic leadership style help to make decision within TUI Group in order to accept the
digital technology by employer and employees by improving employee's morale that helps to
achieve organisation's goals by using digital technology.
Analysis of management and leadership style in TUI industry
In TUI Group, manager are using democratic leadership style that helps to make feel
them good by making business decision regarding accepting new technology. It is relates with
task culture which is using by TUI Group. The manager are following task culture in which they
assign works among employees and make business decision collectively. Moreover, it focuses on
customer demand and their needs in order to make satisfied them by using appropriate style and
organisational culture.
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TASK 2
P4 The internal and external factor that influence management styles and structures\
Leadership style is important for all organization as it helps to bring new changes within
organization and improve business activities that helps achieve business goals. It is adopted by
managers to analysis the situation of company and style of leadership. For instance, TUI Group
is following democratic leadership style that is better than all leadership styles. In this style
management get information about market and bring changes that helps to achieve goals.
Employer of selected company shares information with employees get suggestions from them for
the purpose of adopting technology and improving working system. Innovations impacts
democratic leadership style such as while bringing new technology employees do not accept it
easily. Then democratic style suggest employers to give proper training to employees and work
accordingly that helps to accept challenges. There is required to have innovative skills in which
management of TUI Group need to bring new service and products that helps to attracts people
more.
. The democratic leadership style of the TUI Group influences by internal and external
factors due to adopt new technology within business entity.
Internal Factors – The internal factors can relate to internal activities of an organization
which are arises while running a business. Description of internal factors are as given that
influences democratic leadership style Gardner and Reece, 2012).
Commitment – This means employees who are working within organization they
commits for their work as they will do in effective manner for the purpose of achieving goals
with the help of democratic leadership style. For instance, TUI is following democratic
leadership style in which employees are free to commit about their assignment and works
properly. By using such leadership style management can achieve goals and in short duration.
This skills needed in organization for the purpose of accomplish business objectives and
maintaining productivity by accepting new technology.
Building relationship - This is another influencing factor that influences democratic
leadership style within TUI Group. For example, TUI group has been decided to spread out their
business activities and manage capital through investments. To conduct activities of business, a
manager can meet with staff members as well as leaders to provide training to select changes to
survive business in successful manner by building relationship with employees. Therefore, this
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factor influence democratic leadership style which helps to maintain relationship between
employer and employees for the purpose of accepting changes. This skills should have in all
employees and employer of organization that helps to remove the conflicts between employees
by sharing informations. Employees and employer of TUI Group have such skills that helps to
maintain the relations among them and accept new technology.
Engaged employees – This factor also influences leadership style which is adopted by
organization. TUI Group is following democratic leadership style in which employer provide
works to among employees according to their capabilities and capacities. If manager overlap
work then they cannot work properly. Therefore, by using democratic leadership style
management of TUI Group assign work according to employee's specialization that helps to
achieve business goals. This is another skills which is also have in TUI's employees who get
works according to their specialization and supports company for running a business effectively.
The employees of TUI should have skills such as knowledge about product and service,
building relationship, committed and engage employees skills that can convince customers in
order to get service from such company. The management of TUI have these skills which helps
to influence customers and increase number of customers.
External factors – Leadership style consider as effective that helps to reach near by
organizational goals. If organization does not adopt effective leadership style then it cannot
achieve business goals. TUI Group is adopting democratic leadership style that is more relevant
for organization as it helps to reduce conflicts and increase profitability. It shows impact on the
management style due to launch digital technology. These factors effect to organization image
and show changes in business activities in effective manner. In TUI Group leader are
transformation that means leader works with team member for the purpose of identify the
changes, creating a vision to guide the change through inspiration and execute changes with the
help of democratic leadership style. (Gillam and Khanchandani, 2013). The skills and qualities
of such leader are defined as:
Self management: Such leaders not need to get direction from others, and they are able
to manage themselves effectively. For instance, after introducing digital technology in TUI
Group leaders get motivated by themselves and they motivates employees to direct the right
path. They do what they love, and values are assigned with organization.
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Ability to take right risk: Digital technology for customers can influence to democratic
leadership style in respect to face of new challenges. This skills is required in all organization as
it helps take risk while making business decision. For instance, TUI Group is bringing new
technology, for this leaders take a risk to introduce from such technology. It helps leaders to
perform well with the help of democratic leadership style and implement that changes.
Therefore, the employees of TUI are required such skills like self management and ability
to take risk which influences customers and emphasis on availing that services within industry.
Employer and employees should have innovation skills that helps to introduce from new service
in hospitality industry and increase profitability within organization.
Internal and external factors influence management styles and structure to recognise strength and
weakness
Internal and external factors are plays significant role in any organisation and it will
direct and indirect manner influence to structure of selected business. With the help of these
elements business easily know about their strength and weakness. These internal factors related
to internal activities and control by TUI group easily but external factors can not control by
organisation. There is required to understand which type problem face due to digital technology
and apply their solution (Henricks and Henricks-Lepp, 2014).
Critically analyse how specific management styles have been affected and changed by internal
and external factors
According to changes into management style can be influenced to performance of an
organization. TUI group can be adopts Autocratic management style to make decision in short
period. After the changes travel manager can provide training to their employees regarding to
digital technology. After that they can easily face new challenges and effectively survive into
market. It can help to understand customer taste & preference.
TASK 3
P5 Current management and leadership ‘hard’ and ‘soft’ skills in service industry:
Management and leadership skill of a manager in TUI group in the respect of digital
marketing sector is relates to an individual professional development to handle the critical
situation in the business (Holsapple, ed., 2013). Some of the characteristics of a manager that
requires to manage the organization's difficulty in the services sector are as follows:
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Leadership and communication abilities: It is requires to TUI group's manager to lead
the teammates and worker in efficient manner by sharing all the details regarding to job
responsibilities and service (Ruben and Gigliotti, 2016).
Knowledge and Time management: TUI group's manager must have deep knowledge
of fundamental of the business and ability of the communicating to its employee's by measuring
the fulfillment of business objects so he can able to finish assign task in particular time (Webb,
2017).
Self- confidence: As an effective manager of TUI group, They must have abilities to face
the challenges regarding to operate the business. Manager has ability to inspire all the worker by
doing the assigned work in given period of time so that he can take a chance against difficulties
(Kinder, 2012).
Comparison between hard skill and soft skill of TUI's manager
Hard skill Soft skill
IT and Digital Skill: Manager of TUI group
must adopt the digital techniques in order to
smooth functioning the business activity. He
must have a general understanding of web
designing and basic programming (Hard skills,
2019).
Data and Project management: TUI group”s
management have the abilities of effectively
collecting the basic information relevant to
business operation (Volberda, Van Den Bosch
and Heij, 2013).
Teamwork: Manager of the TUI Group must
build a team so work can be done efficiently
with in time. If management have the abilities
to work as team than they can finish assigned
work (Soft skills, 2019).
Goal setting: Good management have the
capabilities to understand situation as per their
objects of an organisation. They must figure
out what to done and ascertain the method of
task.
Importance of soft skill:
From the above skills it has been evaluated that soft skill are the personal attributes of
current management theory that reflects in interacting with someone and decision making
capabilities regarding to overall performance of organization. Soft skill like communication,
leadership skill are as important as their contribution to the organization. They can use their soft
skill in influencing the people to get higher productivity in the business. TUI group management
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