Leadership and Management for Service Industries

This report discusses the role of a leader and a manager in the FCTG (Flight Centre Travel Group) in the service industry. It covers talent management, management theories, leadership styles, and the influence of internal and external factors on management styles. The importance of talent management, such as increasing performance, promoting innovation, and attracting top talent, is also highlighted. The report also compares and contrasts FCTG and TUI on the basis of talent management.

Leadership and Management
for Service Industries

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Talent Management.....................................................................................................................1
Management Theories..................................................................................................................3
Role of Leader..............................................................................................................................5
Leadership Styles.........................................................................................................................5
Management Styles......................................................................................................................6
Internal and External Factors.......................................................................................................7
PART 2............................................................................................................................................7
Briefing Paper..............................................................................................................................7
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Leadership and management are most important elements of the business. A leader and a
manager play great role in each type of industry. There are effective leadership and effective
management are too much-needed in the service industry. With the support of systematic
management and effective leadership a business is easily able to achieve its goals in the market.
Many of the companies in service industries always try to improve their leadership and
management aspects to gain high competitive advantage. This report discusses the role of a
leader and a manager in the FCTG (Flight Centre Travel Group). There are various management
theories also mentioned below which very helpful to the company. Many internal and external
factors are included in this report which highly influence management styles within the company
in the travel industry. This report discusses various management and leadership skills all which
are too much-needed in the job role of a manager and a leader. Specially in the service industries
these skills are highly needed to gain effective customer attention in the market. There are
comparison and contrast of FCGT and TUI on the basis of talent management also included in
this report.
PART 1
Talent Management
Talent management is one of the major tasks to the management of FCTG, because with
the proper talent management it able to achieve effective and skilled workforce in their
operations (Car and Atun, 2017). Talent management is not a complicated task to the
management, in which it only needs to identify strength of their employees. With the effective
talent management the company able to improve its all over performance also in the market. The
human resource management is always responsible to manage the talent of people within the
organization. Talent management is a process also where a company select some extra ordinary
employees within workforce. The FCTG is able to increase their employees performance at
workplace with the support of systematic talent management.
Importance of Talent Management
Talent management is too important in the FCTG, because with proper talent
management the company is able to gain skilled workforce in their operations. There are some
major importance of talent management mentioned below;
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 Increase Performance: Currently the company is taking great advantages from talent
management. For example; with the help of talent management it is able to increase its all
over performance (Harris and Jones, 2017). The main reason behind statement is, talent
management is helpful in improve performance of all employees, I which once
employees improved their performance then the company's over all performance will
automatically improve. So, the human resource management of FCTG is always
responsible to systematically manage talent of people within operations.
 Promote Innovation: With the support of talent management the company is able to
gain skilled workforce. In this case, once it gained skilled employees then its innovation
aspect within operations will automatically improve, because skilled employees always
try innovate something new things. Innovation is too necessary in the service industry to
lead in the market by providing innovative services to the customers (Lumby, 2019). So,
this is also a major importance of talent management within the company.
 Increase Customer Satisfaction: Talent management is very helpful in increase
customer satisfaction, because skilled and effective employees always provide company's
services to the customers in proper manner. Communication skills of employees are
highly attracts customers in the service industry. So, with the support of talent
management the company is able to improve communication skills as well. Customer
satisfaction is the biggest key to the company for achieving large customer base in the
market. So, here is talent management is too important in the company.
 Attract Top Talent: Currently there are various employees working in the company
together for achieving same goals. In this case, here is not all employees has equal
strength and workability (Fitch and Van Brunt, 2016). Some employees are high
performer and some not, in which talent management help to the company to identify
such employees who have high performance at the workplace. So, the company is able to
attract top talent within its business environment. Employees who have less talent are
also able to improve their talent through the talent management.
These all are major importance of the talent management within FCTG company.
Currently the company has great brand value in the international market, in which the talent
management plays great role in maintaining good brand value of the company. With the support
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of proper talent management the company gaining huge competitive advantage also in the many
market segments.
Management Theories
There are various theories of management are discusses below, like; Weber, Taylor and
Fayol. These theories are very helpful in the effective talent management within FCTG.
Weber
Max weber was developed the Bureaucracy Management Theory. He was German
political economist and sociologist. This management theory is not much effective to the
organizations such as FCTG, because this theory was specially developed to manage government
organization (Aung and Shahnon, 2019). Nowadays many of public and private companies
started using this theory in their business environment, in which bureaucracy management theory
will help to this company as well. Currently the management of company is able to take many
advantages from this theory. This theory offers six important management principles to the
businesses which helping them in their management activities.
With 'administrative class' feature of bureaucracy theory the company is able to increase
their employees performance at workplace. According to the administrative class the feature, the
top-level management need to motivate their employees by giving them some rewards,
appreciation etc. With step of the management, employees feel valued within company's
operations. Then they more improve their current talent at the workplace. So, this theory of
management is very helpful to the company for managing talent of workforce. This theory says
self-motivation is too necessary in employees for their improve talent, but here is the company
also responsible to motivate their employees in many stages. The management able to motive
their employees through give them effective salary, incentives, guidance (Gold, Thorpe and
Mumford, 2016). In this case once employees motivated then their talent and workability will
automatically improve. Bureaucracy management theory providing many effective way to the
company for identifying talent within workforce. According to this theory, the management of a
company need to give work responsibilities to employees on the basis of their work efficiency.
Otherwise, employees not able to improve their talent in the company's daily operations. So, The
FCTG is able to effectively manage talent of their workforce by following the concept of
Weber's bureaucracy management theory.
Taylor
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Scientific Management Theory of Frederick Taylor is specially focuses on improving
efficiency of economy, but it is too helpful in the talent management as well. Many of the
successful brands in the world currently employed this scientific management theory in their
daily operations. In this case the FCTG also able to take advantages by employing this theory in
its business environment. On the basis of scientific management theory Taylor wants to say,
management of any organization is an art. A manager is able to take the best work from their
people or employees through effective managerial skills (Megheirkouni, 2018). There are
Control on product cost, Reduce wastage of time, create safe work culture, increase
performance of employees, etc. some major objectives of scientific management theory.
There are Taylor's management theory is very helpful to the company, because it offers
various ways to the manager to make existing management more effective. The company is able
to manage employees talent within operations through this theory. It is very helpful theory which
improve the work efficiency of employees. The top-level management is able to analyse the
current talent of their employees through this theory. In this case, once the management analysed
their employees talent, then it'll able to take specific steps to systematically manage it. Scientific
management theory is very helpful in the making of healthy work culture as well, in which this
type of work cultures highly improve the skills and talent of employees. That's why Taylor's
scientific management theory is helpful in the talent management within FCTG.
Fayol
Management theory of Henry Fayol's is a very productive model to the businesses,
because this theory offers 14 effective management principles. Many of the companies gained
many benefits through this theory. Henry Fayol specially discussed the talent management under
his management theory (Iles, 2016). He says each business need to use some management
principles in its operations for perfectly manage all things. So, here is the FCTG is able to
achieve high success in the service industry by implementing management theory of Henry
Fayol in their business environment.
This theory included various functions of management called; Planning, Organizing,
Coordinating, Controlling and Commanding. These all functions are very important in the
talent management of company. For example; a manager need to prepare a specific plan for
manage talent of their employees within business operations. Then it needs to organize their all
employees for selecting some highly talented and skilled employees. The management need to
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implement coordination between employees for improve current performance. In the final stage,
it is responsible to control and command their employees talent. So, the Henry Fayol's
management theory is very helpful to the company for managing talent.
Role of Leader
A leader plays great role in the FCTG's daily operations. Without support of a leader the
company can't achieve its target in decided time period. Currently the company expanded its
business in many countries (Gumus and et.al., 2018). So, it needs many employees for handling
all operations, but here is the leader is a person who direct, guide and manage these all
employees within operations. There are some major roles of a leader discusses below;
Motivation: This is one of the major roles of leader, because leader always work for motivating
their employees or team members. Employees always needed high motivation to improve their
current skills, talent and workability, in which a leader takes all necessary steps to motivate their
employees within team work.
Direction: A leader is always responsible for directing those employees who come under their
command. In the operations of FCTG, a leader clarify all things about tasks to their employees.
For example; what to do, when to do, and how to do etc. It provides some guidelines also to their
employees for systematically complete any task.
Makes an Effective Team: Leader always put their all efforts to build an effective teamwork
within the company. It takes various steps for avoiding such elements within teamwork which
make teamwork ineffective.
Leadership Styles
There are leadership styles are generally such ways which a leader choose for
systematically managing all things within teamwork. Some major leadership styles are
mentioned below;
Situational Leadership
It is an important leadership style which was developed by Paul Hersey and Kenneth
Blanchard (Cherry, 2019). Situational leadership says, a leader always need to change their
behaviour according to situations within teamwork. It offers four useful leadership styles;
1. Telling: In this style a leader tells their employees or team members about 'what to do',
'when to do' and 'how to do' etc.
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2. Selling: According to this style, a leader sells their ideas, decisions, orders for buying
into the process.
3. Participating: A leader participate in the whole teamwork with their employees. Leader
gives less direction to employees in this style.
4. Delegating: In this style a leader give full authority to their employees for take important
decisions within teamwork.
Laissez-Fair Leadership
It is a leadership style where a leader stop to take decisions and completely allow to their
employees for take important decisions. Laissez-Fair leadership style is also called delegative
leadership. In case when a leader want to analyse decision-making skills of their employees, then
it employs this leadership style within team work. In this style, team members are authorized to
take various decisions at their workplace. With the help of this style a leader is able to improve
talent and skills of their team members.
Management Styles
Management styles are basically such fundamental ways which uses by a manager for
getting effective results from their daily activities. There are some major management styles
discusses below;
 Democratic Style: In this style, a manager invloves their employees to take some
specific decisions within business operations (Purcell, 2019). Employees feel valued by
management under this style. The final decision is always taken by the manager in this
style.
 Transformational Style: This style develop innovation aspect in the manager. In this
style the manager always find different way for the growth of FCTG. The manager
motivates their employees for improve the company's performance in the service
industry. This style of management mostly fouces on increase all over performance of the
business.
 Coaching: In coaching style, a manager always act like a coach within business
environment. It priovides specific direction, knowledge, traning, and guidance to their
employees, in which employees are able to improve their talent and skills through this
style of management.
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Internal and External Factors
There are many internal and external factors exiting in the business environment of
FCTG which influence management and leadership styles in both terms; positively and
negatively.
INTERNAL FACTORS
 Employees Unions: A manager and a leader is responsible change their styles according
to the demands of employees unions. These unions are generally well-wisher of each
employee (Robson and Bassett, 2017). So, both need to change their behaviour on the
basis of unions' conditions. Employees feel safe and improve their skills through these
unions, it is the strength of this factor. In other side, many times union leaders become
dictators. So, it the weakness of this factor.
 Performance: Many times manager and leader change their styles for improve
performance of their employees. With the help of this factor the company is able to
improve its all over performance, it is the main strength of this factor. The weakness is,
improve employees performance is very complicated task to a manager and a leader.
EXTERNAL FACTORS
 Employment Laws: These laws influence manager and leader to change their styles,
because both need to completely follow all these laws. This factor promotes ethical
environment within company, it is strength of this factor. In other side, follow all
employment laws is tough challenge to the company, it is the weakness.
 Market Trends: All companies wants to hire talented employees, in which this factor is
also influence to a manager and leader to change their style. Both need to create happy
work culture to all employees where talented employees will never drop their jobs. The
strength is, it promotes talent within employees. The weakness is, it increases shortage
of talented and skilled employees.
PART 2
Briefing Paper
Name- HR manager
Date- 12 February
Subject- Talent Management
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Background-Previous human resources working in company were not efficient in their
performance levels due to which FCTG profit margins were effected. There should be proper
evaluation of hard and soft skills for effective talent management of staff in management roles.
The branch manager, production manager and marketing manager selected by HR managers
should posses strong professional experience of more than 2 years in multinational company. As
they are the most crucial managerial role in a company, hiring talented and skilled people with
strong leadership qualities is of utmost importance for company.
Analysis-
Significant aspects- Talent management in today's competitive business environment has
influenced the skill requirements of managers to large extent in present scenario and for high
growth in the future. Human resources are extensively important for achieving high productivity
levels and high profit margins in company. Branch managers and the top-level managers
including production and marketing manager are highly important for FCTG company. There
should be proper assessment of skills, qualifications and experience of candidates by HR
managers while selecting them in company (Cerna and Chou, 2019).High talented staff fosters
growth and quality performance levels enhances company's production levels and enable to reach
profit margins with cost efficiency. Change has influenced management and leadership styles in
FCTG and TUI companies regarding management of talent effectively to great extent, there is
extensive requirement of high skilled employees.
Branch managers- There is significant role of Branch Manager in company regarding
maintaining proper organizational structure and supervising the functions properly.
 Hard skills- Knowledge of accountancy, business management principles for effective
completion of assigned duties. Technical skills regarding computers and to use innovative
machinery at work for efficient performance.
 Soft skills-Ethical code of conduct with strong communication skills and high leadership
Abilities to supervise the organizational structure through change. Capabilities to enhance
coordination and cooperation within team members, encourage dynamic work culture in
company along with potentialities to work in adaptive work environment.
Production manager- There is significant role of production manager in FCTG which includes
analysing the inventory requirements, encouraging the use of innovative techniques by
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subordinates. An efficient production manager will help company to reach high profit margin
targets with cost efficiency (Collings, Mellahi and Cascio, 2019).
 Hard skills- Knowledge of high tech inventory and advanced equipments will enable
FCTG to gain competitive advancement in industry by offering new higher quality
products.
 Soft skills- Capabilities to enhance coordination and cooperation within team members,
motivate employees for adopting new technology in production .
Marketing Manager- There is significant role of marketing manager in FCTG which includes
marketing and promoting about company operations in high consumer market. In volatile
business environment marketing leaders should have knowledge about how to bring innovative
marketing strategies in company.
5. Hard skills-Knowledge of volatile market with the capability to construct business
operations by analysing the statistics, using innovative marketing techniques for higher
performance levels.
6. Soft skills-Dynamic learning and the potentialities to work in adaptive work
environment. Marketing manager should posses strong soft skills regarding their personal
traits to evolve in dynamic work culture and contribute their strengths.
FCTG is the largest retail travel agency in Australia,it has implemented change management
systems and leadership in relation to effective talent management by rigorously using innovative
recruitment options. Hiring technical skilled officials in company who have potentialities to
work in dynamic business environment. As FCTG is retail travel agency company which is
highly competitive and volatile industry, leaders have an important role in effective
implementation of change. Change management systems in FTCG encourage employees to build
strong working skills by training and counselling them to harness strong adaptability in their
working methods.
TUI is German multinational travel company which offers leisure and travel services to all its
customers worldwide and owns travel agencies, airlines and retail stores (Friday, and Sunday,
M., 2019).As TUI is retail travel agency company which is highly competitive industry,
company aims for hiring technical skilled officials in company who have the potentialities to
work in dynamic business environment. Change management systems in company encourages
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leaders and employees to build strong hard skills and soft skills in them for higher performance
levels and enhance the profit margins.
Critical evaluation of how change has influenced management and leadership styles in TUI
and FCTG
BASIS OF COMPARISON FCTG TUI
Management  High supervision of
company operational
structure by managers
through advanced
technology for quick
changes due to volatile
competitive
environment.
 TUI management
teams work with high
efficiency in their
operational structure
which guides company
to effectively
implement the changes
in competitive business
culture.
Leadership styles  Contingency leadership
by leaders which
allows flexible working
conditions in changing
business environment.
 Leaders motivate the
employees and team
members to work with
high adaptability in
their soft skills,
training is provided to
effectively reach the
new production targets
due to changing
business scenario and
high competition
 Leaders in TUI use
dynamic approaches to
implement changes in
team members, train
them with new skills
regarding changes in
company operations
due to high competitive
business industry
(Mensah,2019).
 Leaders in TUI
supervise the
production teams in
building flexible
working approaches for
high efficiency results.
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industry.
Courses of actions which can be considered
FCTG human resource managers for hiring talented staff members in company can go for
various options which are as followed-
Recruitment through Social media- Internet is a wide platform on which with the help of
social media platforms recruitment of highly talented people can be done (Shet,2020). Twitter,
Indeed are great options for companies to advertise about the job vacancies regarding the
positions which will enable company to choose the best candidates with high potency levels.
 Advantages- Social media recruiting is quickest and innovative approach adopted by
companies to choose high qualified, technical skilled people. It enables the company to
advertise about the capabilities it is looking for in candidates on large platform to a wide
audience.
 Disadvantages-It sometimes becomes difficult for companies to choose from large pool
of candidates as social media advertisement reaches to large number of people.
Recruitment though advertising agencies- Advertising agencies help companies by advertising
about job vacancies availability to potential candidates and on what parameters company will be
selecting the candidates.
 Advantages- Recruitment through Advertising agencies help the top HR mangers to
focus on other works effectively and it enables company to reach large level
public(Sivathanu and Pillai, 2019).
 Disadvantages- It is not always a reliable source for company as advertisement agencies
do not work effectively in meeting the criteria of workforce company is looking for.
Recommendations- Social media platform should be used to recruit and select high qualified
and talented employees by HR managers in FCTG and TUI. Recruitment by social media with
the help of internet will enable companies to promote about the capabilities they are looking in
candidates effectively and on vast level. It will assist top management by handling the
recruitment operations quickly by analysing graphics and statistics of apploicants on social
media.
Cautionary note-
 FCTG and TUI accompanies if do not lay importance regarding talent management in
their human resource which is highly necessary to adapt in the highly competitive
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business world, there might be loss in production targets. HR mangers should take proper
caution in selecting the best candidates who can work in company with long term
sustainability,and make company reach higher profit margins (Swailes, 2019).
 HR mangers should take care of the criteria of potential candidates who have strong hard
skills and soft skills to work in dynamic business culture. Non competitive employees
may hurt company goals with their under mark performance standards due to which
company may face high losses in their revenues.
 Employees selected by HR managers hold have interpersonal skills to work effectively
along teams with coordination and cooperation maintenance, for quick completion of
works. They should posses strong communication skills to work effectively for
establishing cooperation in team members.
 HR managers should focus on recruiting candidates while keeping the cost efficiency
principle in mind, as employees should have the potentiality to retain in company for
long term. It will help HR department to effectively implement their financial resources
utilized in selection and recruitments (Mahajan,2019).
Contact- David Thomas (Member of talent management team)
CONCLUSION
It concluded that here is talent management is too important in the FCTG company.
There are various management theories are included above which helpful to the company in
talent management. A leader plays great role in the daily operations of the company. There are
many leadership and management styles are also mentioned above, which helping to a leader and
a manager to systematically handle different situations under business environment. There are
various external and internal factors highly influencing management styles within the company.
The manager need to use some modern strategies to perfectly handle impacts of these factors.
Some useful management and leadership skills are also included in this report which very
necessary in growth of the company. The top-level management of FCTG highly need to develop
their current business strategies for gaining huge competitive advantage in the service industries.
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