Leadership and Management for TUI Assignment

Leadership and Management
for Service Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
a) Different classical management theories............................................................................1
b) Review the management and leadership styles for TUI.....................................................2
c) Evaluate how TUI's current management and leadership style link with theories.............3
d) Role of leader in TUI.........................................................................................................4
e) Conclusion..........................................................................................................................5
f) Analysis of internal and external factor which influence the management style...............5
g) Critically analysis how specific management styles influence and change internal and
external factor.........................................................................................................................7
h) Describing how future leadership skills required by TUI manager...................................7
I) Current management and leadership hard and soft skills...................................................8
j) Critical evaluation of how the response to advancement in digital technology..................9
k) Change management systems of different service organizations. .................................10
l) Impact of change management on management and leadership skills.............................12
CONCLUSION..............................................................................................................................13
References......................................................................................................................................14

INTRODUCTION
Leadership is that process which can direct and guide the people which helps to attain the
specific goals of a firm, on the other side, management mainly includes the activity of setting
methods and then coordinate the efforts of their employees. The report main aim is to provide the
importance of management and leadership style in the context of digital technology. The report
is based upon the case study of TUI Group which is a German Travel and Tourism company
which is the largest leisure, travel and tourist company in world and it also owns travel agencies,
hotels, airlines.
Report will cover different management theories and then describe the role of leader and
different leadership styles in service sector. Further, report will investigate the internal and
external factor which also influence management style and structure of TUI. Further, study will
also assess the current management and leadership skills and then describe future management
and leadership skills which is required by the service sector.
a) Different classical management theories
Classical Management Theory: The theory mainly based on the belief that the
employees only have physical and economic need. The theory also state that a firm is consider as
a machine, but human being are different components or a part of that machine. This theory is
completely based upon the accounting model and it also lays emphasis on detecting errors and
correct them (Haveman and Wetts, 2019). But on the other side, the theory is not adopted by TUI
because it mainly concern with the amount of output as compared to human being. The theory
also assume that employees are quite stable, in term of change in an organization.
Administrative Management Theory: It is another type of classical management theory
and it is also based upon concept of departmentalization in which different activities are
performed for achieving the common purpose of a firm which should be identified and classified
into different groups. The theory is stated by Henri Fayol and the focus is on how the
management of a firm is structured and how well the employees of the firm are attaining the
aims as well (Nicotera, 2019). The theory is mainly based upon the two such that business
management and general management, further it also based upon the 14 principles which help
management to understand their roles and responsibilities. Therefore, it can be applied by TUI.
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Bureaucratic Management Theory: The theory is adopted by the Max Weber who
believed that the theory is most efficient way that help to set an organization, administration. But
the theory is based upon the traditional structure such that everyone is treated equal and they
describe the division of labour in cleared way. As the organization structure of TUI is hierarchy
which means that it has different level of authority who understand their roles and responsibility.
Such that TUI also adopt the principles of bureaucratic to mange the business structure in more
efficient way (Mol, Birkinshaw and Foss, 2019). Such as TUI should acquire formal rules and
regulations in order to govern the organisation.
b) Review the management and leadership styles for TUI
Management and leadership Style: It has been analysed that the best management style
is one which is flexible, adaptive and appropriate for any situation and it is quite true because
various situation call for different kinds of leadership. Therefore, TUI uses two management and
leadership style that helps to run the business smoothly.
Transactional style:It is one of the straightforward leadership style which is mainly focus
on the work as well as process so that effective results are attained. It has been analysed that
leaders of TUI mainly follow this style because it helps to provide positive environment of the
company and raise the performance of employees (Baltaci and Balcı, 2017). For example, the
leader of TUI provides incentives to their employees when they perform outstanding work. It is
so because it helps to motivate the employees and also help to produce the consistent results as
well.
Democratic Management style: It is also known as participative leadership style which is
followed by the leader of TUI in which they take helps to each member of a group in order to
take decision. Through this style, everyone is given an opportunity to participate and share their
ideas which helps to retain the employees. But on the other side, the leader is only who is
responsible for taking any decision and also inspire them to contribute their best for the welfare
of a business (Shafritz, Ott and Jang, 2015). The biggest advantages of using this style into the
workplace is such that it helps to raise high productivity and more ideas and provide creative
solutions which helps to lead a business towards the success.
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Autocratic Leadership:
This form of leadership style is considered as an, dominating leaders who posses mainly
all responsibility, delegations and authority. This this there is a formative process of indirect
input which in turn lead towards desirable output. In this input process, The input process can
consider a decision which have to be enforced at any cost by hook and crook method.
TUI manager can implement this form of leadership style within their manufacturing and
production department, within which it is essential to accomplish work in a specified period of
time. It will further allow leaders to complete organisational objectives with positive sources. In
addition with this, it is important for leaders of TUI to be prudent. As this will lead workforce to
offer more effective and successful outcomes.
Laissez –Faire leadership style:
This form of leadership style is also known as delegation leadership style. Within
Laissez- Faire leadership style there is very less or minute guidance from management in relation
to effectively guiding group members and in the process of decision-making.
As per the above mentioned discussion, this has been evaluated that both democratic and
Laissez- Faire leadership form of leadership style turns out to be effective for TUI as to
accomplish their goals and objectives. This further lead towards benefiting employees with lot of
benefits as they can effectively contribute their contribution within decision-making process that
further stimulate sharing of ideas thoughts in organisation culture.
c) Evaluate how TUI's current management and leadership style link with theories
TUI also uses administrative and bureaucratic management theory in order to take a
business towards further level of success. On the other side, the leaders of TUI also uses
transactional as well as democratic leadership style which keep involving the employees to keep
participate in decision making process. Further, it is also evaluated that these styles are also link
with the management theory such that by using democratic leadership style, the leader of TUI
involve the members to help in decision and in the same time, as per bureaucratic management
theory which state that there is a need to improve the efficiency of employees so that they will
help to leads the business towards success (Berry, Broadbent and Otley, 2016). That is why it is
quite beneficial for the leaders to use democratic leadership style and this helps to keep
interacting with the employees as well as management team. Therefore, adopting this theory will
help to minimize the delay in decision making due to formalities.
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In addition to this, it has been critically evaluated that using Administrative management
theory, leaders also assign the duties as per their skills but the managers are mainly follows he
four principles of Fayol such as planning, organizing, leading and controlling. For example,
when the leader of TUI wants to change the management structure of the firm, they uses all the
principles of administrative management theory and by using Democratic leadership style, they
also involve the employees to take part in the decision-making process. However, the assign the
roles and responsibilities as per their skills and also maintain the discipline and unity of
command, then by involving every employees to gain synergy and then establish cordial relation
with each other will help to leads a business towards success.
d) Role of leader in TUI
Role of leader: Leaders are the pillars of an organization and they also represent the
organization. Such that when TUI perform any seminar, meeting then his role is to communicate
the rationale of enterprise. They also motivate their employees to increases their working
performance. As they posses better understanding, strong vision and intelligence that help a
business to provide positive results for the company (Different role of a leader, 2018). Apart
from this, leaders of TUI mainly execute the strategy in order to gain positive results. As they
have time management abilities which helps to gain the results in defined time so that I will
directly creates positive impact upon business brand image.
Different leadership style:
Autocratic leadership style: In this type of leadership style, only leaders have the
centralize power and they take the decision by their own. Mainly they assign task, give orders
without consulting other team members. In some situation, this leadership style affect the
business and leads to creates negative environment, that is why it is not adopted by leader of
TUI.
Democratic leadership style: This style is adopted by leader of TUI because it
encourages the participation in decision-making and even the employees also feel that
management is interested in them with their ideas as well as suggestions (Masa'deh, Obeidat and
Tarhini, 2016). Further, this style will help to raise the motivation, improve morale, also
increases cooperation with the management. Even most of the other company also uses this style
which helps to foster enthusiasm in the employees and lead a business towards a success.
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Laissez-Faire Leadership style: This style mainly avoid power and responsibility, that
is why most of the leaders did not adopt this style. In this, leader also gives no direction and also
allow the group to establish their own goals and work to solve the problem. Further, the leader
also act as an umpire in which it leads to take wrong decision as well.
e) Conclusion
From the above, it has been analysed that TUI mainly used Bureaucratic and
Administrative management theory so that it will help a business to sustain the brand image in
market. Further, report also concluded that leaders of TUI uses democratic and transactional
leadership style in which they involve their employees for taking better decision and feel them
that they are also an important part of the firm. Lastly, report concluded that leader of the firm
motivate the employees and develop strategy that helps to lead a business towards success.
f) Analysis of internal and external factor which influence the management style
There are different types of elements that affect organisation internal as well as external
environment conditions. It is important for leaders to effectively analyse all the factors in best
possible manner as to gain best effective outcome. In relation with TUI organisation leader there
is need for leaders to effectively undertake all the essential factors in internal and external
environment as they further lead towards affecting organisation and employees productivity as
well as performance. Services industry is included in soft parts of an economy. In this form of
industrial sector main focus is towards best effective form of interaction with individuals as to
offer them services in best possible manner. Thus, as to manage employees in organisation
structure it is important for managers to efficiently undertake numerous form of management
styles. In relation with TUI, leaders play key essential role as to effectively motivate, direct,
control and influence employees within organisation with the formative assistance of innovative
technological measures. In addition with this, managers hold the responsibility to manage
administrative responsibilities within organisation. There are different types of factors that are
essential for leaders to effectively consider:
Internal Factors:
Leader's Personality: As to gain end results in best effective manner, it is important for
TUI leaders to have convenient and determinant nature. This will further aid organisation to
effectively fulfil their goals and objectives with great success. Both managers and leaders operate
their responsibilities and roles in well defined manner as they undertake management and
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leadership style as per according to the situations which offer best possible outcomes. In relation
with TUI manager, they perform their role in a formative manner with the assistance of
transformation form of management styles as to operate their functions with best quality. If it is
considered in provision information, consensual management style is undertaken. Moreover, by
adopting transformational style, they create best effective form of dynamic environment that will
in turn offer best results. Yet, it consists different type of change which may in turn provide
mismanagement as with the implementation of different types of management styles.
Employees Diversity: Workers of the company are considered internal factor that also
affect the management style. In addition with this there is diversity in workplace environment of
TUI for which it is essential for leaders to provide effective training session by considering
vertical and horizontal structure both unskilled and skilled employees. Employees plays and
important role for the success of the company because they are the one who maintain the
structure and also adopt new management style (Whaley and Gillis, 2018). Thus, horizontal
structure ill acts as an effective method for leaders. While for management style, with the help of
Hands-Off managers can effectively able to formulate best effective form of decisions as to gain
successful outcomes.
In addition to this, to cope with this factor, manager need to adopt the participative
leadership style, so that it will help the leader to attain goal and provide clear structure to their
employees. Moreover, another characteristic of this style is such that it help to increase employee
motivation as well as productivity cost. So that it in this way, leader may deal with this internal
factor.
External Factors:
Digital innovation disruption: in this modern era, every company wants to be be
competitive and that is why, they use effective digital advance technology. In the same way,
leader of the company also use new application based upon the advance technology in order to
stay competitive such that Airbnb, which is the advance technology in which the company
online books the room. Therefore, it clearly shows that digital technology creates positive impact
upon the firm. In order to deal with this external factor, leader needs to start developing new
training session so that employees may enhance their skills. Further, they may also use
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participative leadership style in order to involve their employees to get their innovative ideas
which may be implement into the company.
Digital technology: Technology is changing with fast phase. Thus, to remain
competitive in marketplace it is essential for organisation to undertake best effective use of
technology and digital tools. Digital technology impacts upon organisation leadership style in
addition with their structure as well as culture (Sigala and Chalkiti, 2015). Thus, it is essential for
TUI leader to consider and implement best effective form of technological advancements on
regular manner within organisational structure as to increase brand performance and efficiency
of organisation.
In relation with TUI, participative leaders are needed for this external change, so that they
can effectively able to use technological advancements by involving all the employees and get
their views and ideas to implement advance technique within an organisation (Mol, Birkinshaw
and Foss, 2019)..
g) Critically analysis how specific management styles influence and change internal and external
factor
Management of TUI mainly adopt new styles so that it will help to comply with all
internal and external factors. Such that in order to cope up with political factor, management of
TUI must apply the situational leadership style so that it will help to manage the work
accordingly. On the other side, using democratic style, the company's management involve
employees to take better decision for the business (Taurina, 2015). Apart from this, it has been
analysed that using digital technology into the working place will help a business to cope up with
technological factor. In this, the management may use some interactive system so that it will to
creates positive impact upon the business.
In addition to this, management of TUI must use transactional leadership style so that the
leaders encourage or motivate their employees by providing reward and punishments. By
offering innovative product and services, the management of TUI also leads a business towards
success and assist to stay competitive in market (Sigala and Chalkiti, 2015).
h) Describing how future leadership skills required by TUI manager
There are some current digital technology that should be used by TUI such that:
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3D printing: It is also known as additive manufacturing and this is also described as how
the technology work in order to create the objects. This advance technology may also adopt by
TUI because it covers the variety of process in which the material is joined in order to create 3D
objects (Haveman and Wetts, 2019). Even continuous development in 3D printing technology
will creates fundamental change in the way of manufacturing the products and it also deliver the
custom industrial solutions as well and also help to build the team.
AR/VR: In future, TUI may also use Argument reality which adds digital element in
order to go live view by using camera or a smart phone. This is the attractive sources that helps
TUI to keep attracting the visitors to use the services offered by the firm. Because it enhances the
physical environment they are selling and also enhances the experience of exploring the
surrounded area as well (Lee and et.al., 2016). AR also help the amount of information guest
tend to ask for and also increase in line with the shift in target demographics as well.
Interactive system: The interactive system may be an artificial intelligence that helps a
business to provide positive impact upon business. Such that using AI in TUI will help a
business to save time and decreases manpower. They helps to replace the human resource and
increases financial performance of the company and this will also help to generate benefit in the
terms of money and attract wide range of customer as well (Iqbal, Anwar and Haider, 2015).
I) Current management and leadership hard and soft skills
Hard skills: This are the skills which must be required for a job and it mainly includes
the expertise which is necessary for an individual so that they will successfully do a job. Such
that manager of TUI must posses multi-lingual skills, also to build the team as well. On the other
side, if they did not posses the same, then company must provide effective training sessions to
build up the team. Further, the management also posses computer programming skills so that it
will help to operate different programs in computer and also deal online (Hudson and Hudson,
2017).
Soft skill: This skills should also be posses by the manager of TUI and this is transferable
skill which can be taken by others and also given to others. In the quoted firm, it is quite
essential for the managers to posses effective communication skills, decision-making skill,
communication, flexibility and leadership (Viglia, Pelloia and Buhalis, 2018). . The soft skill is
important in retail industry because these skills helps the managers to solve many issues and
also help to form team in successful way as well. The manager of TUI may also develop their
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soft skill by attaining proper training session and also delegate the responsibilities as well. For
example, the managers of TUI posses problem solving skills in order to solve the conflicts
among customers and leaders must guide their employees in order to manage the issues. This
reflect that soft skill help the industry to provide better customer service (Benckendorff, Xiang
and Sheldon, 2019). In addition to this, having an effective time management skills also help to
complete the defined task in prescribe time in travel and tourism industry. Or if, the management
did not have management skills then they must provide training sessions so that proper work are
to be done in efficient time (Masa'deh, Obeidat and Tarhini, 2016).
j) Critical evaluation of how the response to advancement in digital technology
For future, the manager or leader of TUI must provide professional authenticates
certificates so that they can easily motivate the employees and also develop new strategy that
help to expand the business. Apart from this, the management must develop the conflict
management team in order to resolve the queries of their customers (Zsarnoczky, 2018). On the
contrary, if the management team have high emotional intelligence then it will affect the
business in negative way. Therefore, to cope up with situation, the manager of TUI may also use
Artificial Intelligence who replace the human resource and also work without bias.
In addition to this, it has been critically evaluated that by providing effective training
session, the company use advance technology into the working place for their future so that it
will help to increase the earnings and increases the financial performance as well. Further, by
adopting contingency leadership style, the business leaders may face different situation so that it
will assist a business to sustain the brand image. Beside, this, the company may also adopt
technological management skills which are almost depended upon the technology and in this
modern era, every company uses new techniques so that it will help to reduce the cost up to some
extent (Viglia, Pelloia and Buhalis, 2018). Apart from this, company may also use robots so that
the entire working will depend upon the technology. In this case, it leads to decrease the conflicts
and creates future opportunities for the business expansion. In this way, management may
response to advancement in digital technology (Mol, Birkinshaw and Foss, 2019).
There are different types of measures with the help of which managers can effectively able to
develop soft skills:
Management skills
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Transformative Style: In this form of leadership style, with the assistance of this style
leaders can effectively able to encourage as well as inspire their team as to effectively fulfil team
in best effective manner. By undertaking this form of leadership style manager can able to guide
their employees and further motivate them as to guide workforce in more directional manner.
Thus, with the help of transformational style leaders can not only able lead their employees but
can also increase overall productivity and profitability in best effective manner.
Technical school management skill: The techniques which are used by the company to
adapt many challenges which coming inside the business need to improve it in effective way.
The science and new strategies of tools which every company is adapting in an effective way. So
TUI company need to adopt business activity and need to involve employees for better output.
Leadership skills
Co-creative leadership: This leadership is a mindset which need to be adapted and is a
brainpower and knowledge of people around which is created for high motivated teams. In order
to TUI the company needs accomplish the employee’s ideas towards their objective which must
be done it in an effective manner.
Emotional Intelligence (EI): This is one of the best form of skill which is required to be
effectively undertaken by leaders as to manage their work in best effective manner. In addition
with this, with the help of emotional Intelligence leaders within TUI can effectively able to
understand emotions of employees which effectively lead towards creating healthy and positive
working environment. In addition with this, leaders holds the responsibility to understand
employees as to effectively make them work in best manner. Moreover, it can be explained that
TUI future management skills can be easily examined without any delay and provide best
survive to attain increase the level of profit.
k) Change management systems of different service organizations.
Change Management -
It refers to the all those methods that organization adopts for supporting the individual
employees, teams and overall organization to bring change in different aspects of the firm.
Common example of change are advancement in technology etc (Kapucu, N. and Ustun, 2018).
TUI -
Kurt Lewin Model-
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The model is consisted of three stages and it has provided an approach of managing
change. To mange the change in effective way, Leader of TUI adopts the model of Kurt Lewin.
It is as follows-
In this stage, Leader of TUI prepares the staff to accept the change, they motivate the
staff for accepting new methods of working.
Change-
At this stage, the changes are actually implemented in the organization. In this, Leader of
TUI effectively communicate with team members for implementing the change (Ellis and
Abbott, 2018).
Refreeze-
It is the last stage, employees will accept that change is a part of their life.
TUI Hotel
Kotter's Model-
Kotter's Model helps the firms to improve the ability for managing change. Leader of
TUI Hotels follow this 8 step model for influencing the employees so that, they will not resist to
the change (Teguh, Hariyati, R.T.S. and Muhaeriwati, 2019). Such as-
Developing sense of necessity-
11
Figure 1 : Kurt Lewin Model
Source : (Kurt Lewin Model, 2017)

Firstly, Leader of TUI Hotel will communicate with employees to convince them for
taking action by communicating them possible threats and solutions.
Creating a group-
Now, Leader will help to formulate a group that will encourage the workers and to
manage their efforts. This will promote transparency in communication.
Developing vision-
By creating a vision all the people in TUI Hotel will able to understand what the firm
wants to achieve in a particular period.
Communication-
Now, Leader will communicate with employees who are resisting the change. So that,
they will come to now about various aspects of change (King, Hopkins and Cornish, 2018).
Removing barriers-
Effective communication between Leader and staff of TUI will help to encourage
employees for accepting the vision.
Creating short term advantage-
Short term goals will be developed for motivating workers to expand the changes in the
hotel. Firm should provide rewards to staff for motivating them to accept the change.
Improvements-
Leader of TUI will continously monitor the process for bringing improvements (Bush,
Bell, L. and Middlewood, 2019).
Consolidating change-
Evaluation of the change on regular basis is important because it will help to integrate the
change with culture of the hotel.
l) Impact of change management on management and leadership skills.
The process of change management greatly impacts the management and leadership skills
and style. Leader of the firm should have ability to adapt different leadership styles at different
stages of the process of managing change. Internal and external factors of TUI may force the
organisation to bring change. Leader of the Hotel should have skills and ability to communicate,
involve, influencing the employees to provide their support during various stages of
implementing the changes in the Hotel (Zhang, Kang, F. and Hu, 2018). Leader of TUI should be
able to motivate workers so that, they will not resist towards the change. Leader should have
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ability to adapt transactional leadership style for providing rewards to staff for improving the
performance. Whereas, Leader of TUI should also have skills of adapting transformational
leadership style during the stages of Kurt Lewin for improving the chances of success and to
reduce the chances of resistance of employees. This will help the organization to implement
various changes effectively in various areas of the hotel.
At the stage of refreezing, management and leader of TUI should have skills for
performing commitment planning to identify the individual and teams whose support will be
required for bringing change in the organization. Therefore, management and leadership skills
and styles plays a major role in improving employee satisfaction and performance (Baloh, Zhu,
X. and Ward, 2018).
CONCLUSION
The above Report has outlined the term Leadership. There are various classical theories
of management. Classical management theory focuses on identifying the errors and to correct
them. Administrative Management Theory says that there are various activities that helps the
firm to achieve the objectives. It is based on business management and general management.
Further, the Report has explained that Leader of TUI uses various leadership styles such as
Transactional and democratic etc. that helps to improve the productivity of firm. Under
Administrative management theory, leader of organization assign the responsibilities to workers
as per their skills. Leader of TUI plays an important role in motivating the employees to improve
their work performance. Moreover, Report has described various forces that impact management
style. Leader of TUI follows Kurt Lewin model for managing change whereas, Leader of TUI
follows Kotter's model. Various stages of Kurt Lewin impacts skills and style of the leader.
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