Table of Contents INTRODUCTION...........................................................................................................................1 P1.Various kinds of classical theories of management in regards with service sector..........1 P2 :Leader role along with distinguished form of leadership style in within TUI.................5 P3. Leadership and review management within specific services sector..............................6 TASK 2............................................................................................................................................7 P4 Evaluate the internal and external factor which influence management style in hospitality sector.......................................................................................................................................7 TASK 3..........................................................................................................................................10 P5 Evaluate leadership and management its hard and soft skill which can improve in service sector...................................................................................................................................10 P6 Approaches of leadership and management skill...........................................................12 TASK 4..........................................................................................................................................13 P7 Comparing of various organization.................................................................................13 CONCLUSION....................................................................................................................15 REFERENCES..............................................................................................................................16
INTRODUCTION This report is written in the perspective of amanagerial position at TUIGroup. The purpose of this report is to demonstrateunderstanding and knowledge of classical management theories and leadership styles. The report will also review factors that influence different management styles and structures. Leadership is all about motivating employees and management is about planning and organising. A good leader always tries to appreciate hard work of individual and always support there subordinates.Whereas managers figure out problems and fault in company. On other hands, manager try to focus on organisation goals by controlling internal as well as external factors to achieve desired goals (Deming, 2018). TUI is an Anglo-German travel and tour company, its headquarters is in Hanover, Germany. It is one of the largest tourism company across Germany. They also deal hotels, airlines, cruise and retail stores and it was founded in year 1923. This report will provide insight of classical management theory and different leadership styles. The report also investigates about internal and external factors that determine the management style and structures in a specific service industry organisation. It also focuses on future management and leadership skill which are required by service sectors and howthese objectives can be achieved. This report will review different services industry organisation changes, management service and how leadership can bring changes in industry. Atfinally, this report also provides some knowledge on hard and soft skill to make organisation better Task 1 P1.Various kinds of classical theories of management in regards with service sector There are different kinds of management as well as classical theories in the industry. The manager tries to plan, organise, recruitment, directing and control the activities in an organisation for smooth run. For TUI, the company manager can take some help of classical management theories for effective and better understanding of management process in organisation. There is some list of classical theories which are given below. Scientific management theory:Scientific management theory arewas devisedby Frederick Winslow Taylor. Major motive behind is to make a control on the business operations and activeness as to conduct smooth and well effective functions.Scientific management theory mainly empathizes on increase in level of production with the help of advanced technology. 1
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Scientific management theory also includes Motion, fatigue studies as well as timewhich are used to figure out different amount of work done by single individual in company.As discussed the case of TUI, managers can implement this theory in organisation operation and business activities. With the help of this theory,organisation can make an increase within their overall base of profitability.With the assistance and guidance provided by the manager will aid in increasing efficiency of employees to work effectively (Popli Rizvi 2015). Bureaucratic management theory: It is an organisational construction which is characterised by many rules and regulations, standard procedure, number of desks, precise division of labour and responsibility, proper structureofprofessionalismandcommunicationamongemployeesallthesefallsunder Bureaucratic management theory (Donate and Pablo, 2015). This theory wasdevisedby Max Webber, in addition it manages all the rules, and which comes under organisation management. According to Webber it is a systematic arrangement of any company which is formed to ensure efficiency and overall economic development. And if the assigned work or task is completed in given interval then employee should be rewarded for their hard work. In the context of TUI, this theory can be applicable for manager to achieve the desired goals of the company in effective way. For the tour and travel company like TUI it is important to have keen knowledge about laws and regulation for smooth run. By implementing bureaucratic management theory, it eases manager to and the company to provide better product and services to their respective customers. Manager should facilitate bonus, incentives to their employee, this will increase their self- motivation to achieve their goal effectively (Ropo 2015). Administrative management theory (Classical management theory): This theory wasdevisedby Henry Fayol, it says that more focus should be given on organizational management and human as well as behavioural factors in the management. In other words, this theory is based on the concept of departmentalization, which states that each and every activity should be performed by different individuals in order to increase efficiency for the common purpose of the organisation. According to TUI can be proposed by manager in the company to perform effective management.(Uhl and Gollenia 2016). System theory: This theory is based on division of work and it work independently as per the capability on employees.This theory was given by Ludwig von Bertalanffy in 1940 and main goal and 2
objective of the theory is identifying a system dynamic, method, tools etc. The theory is applied at every level grass root level, and in every field for achieving the desired goals and objective.It is a organisation phenomena which divide complex work into independent work and it analyses and think about the organisation and their different approaches. From the above information, it can be analysed that TUI can implement system theory because it provides ease for manager to divide assign task and work in systematic manner so that employee can achieve their given goal in best possible way and make effort for making company great. Organizational structure: The structure state the flow of information between different levels within organisation. They specify the hierarchy in the organisation for an easy flow of communication. A flourishing organisation structure defines employeesâ job and task in which he fits properly. Not having a proper structure in the organization may reduce the efficiency at every level in the organization. With the proper arrangement in every department will increase the productivity, as they are more focusedandenergisedwiththeirjobrole.Mentionedbelowtherearediverserangeof organisational structure defined: Matrix organisational structure: It is a company structure, in which reports are set up as grid, or in a matrix format, rather than to follow tradition methods of making report. In the other contrast, employee have twofold relationship with functional managers as well as product managers. The employee can be a part functional group, but they cannot be the part of new product development team. In the new product line, many employees for different department are involve in development procedure of new product. Advantages:If the manager of TUI follow the similar structure it will employees to share their thoughts regarding their work easily. Along with work it also provides, easy flow of communication and mutual understanding among employees (Chen 2015). Disadvantages:One the of the major drawback that is been hold by this organisational structure that it will lead towards increase in conflicts along with confusion that may hamper employeeâs performance.If the task role is not cleared, employee may get confused what to do and what not do(Martin 2015). Centralized organisational structure: 3
This type of structure follows single hierarchy n the company. All the decision is taken individually or by upper level management. TUI adopt this structure then all the planning and policies of company will be taken by the leader. The decision making and implementation of decision are taken from top management and lower management will follow the instruction. Advantages:This type of structure facilitate vision and mission of the company and help in fast execution. In the aspect of TUI, it helps in minimizing internal as well as external conflicts and provide total control over the company (Dhar 2016). Disadvantage:The structure of company seems to be more bureaucratic and puts extra level in the series. The lack of authority slows down the managers and his motivation to manage the company and employees. The handy culture model was given by Charles Handy. This model can be used by TUI to divide the power in the organisation. Handy culture model used to distribute the power and authority at different levels in company. Basically, this model is divided into four main categories which are discussed below. Power: Some organisation does not provide power to their employees; they try to control and make decision at their level.Top managementare the only one who enjoy all the privilege in an organisation. TUI can adopt this model in order to operate company effectively and efficiently (Bottomley 2016). Role of culture: It is culture where employees are givenroles and responsibility according to the skills of individual and interest. In this type of environment employees decide for them what is best and willing to take challenge.If the TUI implement this culture, itprovide adaptability in a organization where employees feel that company treat worker with dignity (Shamim 2016). Person culture: Accordingtothisculture,employeesfeelthattheyaremoreimportantthanan organisation. They offer a service to the individual and concernedabout themselves rather than organisation. Mostly in this case company have bear losses due to minimum control over management. This type of power is usually found where employees are more skilled and have years of experience(Psomas 2016). 4
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Task culture: In task culture, employees have coordination and power distribution among employees. Under this, employees and managers are highly skilled as have problem solving attitude. Therefore, it helps employees to work in a team and provide authority to workers to take decision which are useful for organisation.Given model will be best suitable model for TUI tourism company because it provides flexibility and can deal with any situation occurs in organisation(Roblek 2016). P2 :Leader role along with distinguished form of leadership style in within TUI. An individual or a person in an organisation holds or dominate the power of position in its respective fields, and able to control or influence others to complete task. Leaders always show the relevant path to their group in which individual are working for common goal. For TUI, the leadership will motivate employees to achieve the desired goals. Mentioned below there are some formative roles that can be undertaken by TUI leaders in order to motivate their employees: Motivator:Motivator acts as a major role that is performed by a leader in TUI. In this, they effectively motivate their team and subordinates as to achieve organisational goals in best effective manner and further stimulate their behaviour in growth path. With the help of this they ensure accomplishment of task and targets in best efficient manner within stimulated time period. Mentor: In this, leaders of TUI holds the responsibility to provide clear set of mission and vision to workers and guide them towards organisational goals in best effective manner. Within this, leaders play the role of mentor that further aid them to offer workers with clear and directional vision. With the help it ensure that work to be accomplished in given framework of time is assured(Gupta,, 2016) Communicator: This is one of the most important roles, which is performed by leader of TUI. In this organisation leader perform the role of communicator with the help of which they effectivelyinteractwithsubordinatesandstaffastoprovidethemwitheveryrequired information. With the help of this leaders can easily able to resolve conflicts and can further initiate workers towards more directional growth path(Nguyen2017). 5
Navigator:As per according to this, leaders within TUI effectively support and navigate team and organisation subordinates towards directional mission. In this regard, they frame aims with the help of which they guide employees and lead them towards accomplishment of organisational goals and objectives in best effective manner. In order to navigate employees in best way there is a requirement to have proper aim with the help of which goals can be accomplished in given set of time manner (Wu 2015). Different leadership styles: Certain distinguished form of leadership styles is defined below in descriptive manner: Autocratic leadership styles:This kind of leadership style where leaders dictate policies and procedure regarding company, decides future plans and work along to achieve targets. Such kind of leaders have full control over their employees and team members, leaving low liberty within the group.In autocratic form of leadership style there is clear delegation seen among employees and leaders. As in this leader is the only individual who have the responsibilities for decision-making(Jiang2015). Democratic leadership style:It isalso termed as an participate form ofparticipative leadership style or it can be called as shared leadership, where team members of the group take more activeness in decision making process. This type of leadership style may use by any company to increase their efficiency. If the idea or thought is beneficial for company, then it would consider by the management for future use(Inkinen 2016). Laissez âFaire leadership style:In other words, it is known as delegation leadership style. InLaissez- Faire leadership style there is minimal guidance from management, regards to decision-making and guiding group members. This suggests that they hold responsibility with minimal indulgence of leaders(Lockwood2015). From the above report it has been analysed that partnership and democratic leadership style both are perfect for TUI in order to succeed.Employees can effectively get lot of benefits is they make their contribution in the process of decision-making as with the help of this they can share their ideas that will further prove beneficial for organisation. P3. Leadership and review management within specific services sector. For the company,both management as well as leadership styles act as an important element forbusiness survival in long run (Popli and Rizvi, 2015). As TUI have diversified their services like, airlines, hotels, cruise, accommodation etc. due to its vast range of product and 6
service mangers must follow the proper hierarchy and culture. In today modern world of innovation and new technology rapidly to provide ease of work effectively and to maximise profit. TUI should take advantage of technology to beat their competitors, management and leadership style decide whether to adopt those new technologies or avoid it. With the help of delegation of authority, TUI can expand their hospitality as well as tourism industry rapidly. New technological change has provided ease to the customers to book their tickets of flight, hotel and resorts as per individual choice and preference. TUI should focus to improve their websites and company should design their website with customers perspective. The attractive websites will encourage the customers to book the hotel and transportation. Through digitalization, customers can sense the actual hotel and scenario with the help of videos surfacing online on their websites. If there are future uncertainties, then it is easy to cancel tickets in a click which help customers to make decision as per their convenience(Dhar 2016). For TUI, structure and cultural management style will be appropriate for crease less functioning of organisation. Organisational structure will be the best option for TUI because it divides the power and authority among employees which will be easier to make quick decision and their communicationwillbeeffective.AnotherleadershipwhichwillbesuitableforTUIis democratic leadership style. Under this kind of leadership style all the ideas and thoughts are taken from the individual and suggestions are taken into consideration. This kind of culture have strong leadership style and employees are highly motivated to perform their task. It all depends upon the environment and culture within the organisation which allows the employees to be flexible according the situation in the organisation. If leaders are effective nature which creates positive environment in the company and employees are always motivated and energised to accomplish organisation objective (ChĂĄvez 2019). TASK 2 P4 Evaluate the internal and external factor which influence management style in hospitality sector. Management involves planning, organising, directing and controlling which aid to achieve the goals of the organisation (Deming 2018) A management style includes the way which helps the manager to accomplish company objective. It the way through which it helps to make decisions and which they able to make decisions in an organised way with effective authority. Management styles differ from different company and from person to person. A good manager 7
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who work according to the environmental factor which affect the business internal and external form. The main purpose of the organisation is to achieve the targets of the business in an effective manner. In context to hospitality sector the management styles affect a lot and affect the work culture. Management style which has different factors which include internal and external factor and even which play an important role according the employees working ability. According to TUI the type of management style affects the businessâ internal and external factors that influence management and structureare discussed below: Internal factor:The factors that affect the business internally that means the corporate culture, staff skills and motivation and the structure of management. The skills of staff affect the business growth and even management style which affect the productivity of the organisation. High motivated employees and skilled worker will work according to their capability. In context to TUI company the management style affects the business which even the manager of the need to work upon to it (Timm 2019). ďˇOrganisational structure: An organisation is a clear sense of mission which explains the better world that can affect positive elements in each are of the organisation. The internal factor that is the organisation aim is to achieve the goal and objectives. The structure is used to take the decision which can aid the company to attain business growth. There are different levels in the company and each area is connected to the digital technology (Dhar 2016). ďˇEmployees and manger:Another internal factor that affect the business is the role of employees that should be effective communication among manager and employees. The employeeâs relation between top management should be in an effective and systematic manner which conduct certain roles to avoid the pitfallsin organization as proper communication may reduce misunderstanding and other barriers which may slow down the business operation (Jha2019). ďˇCorporate culture:The corporate culture affects the business growth, internal factors and the environment which is taking place in the organisation. There are two types of culture in the organisation which affect the business decision, actions and judgement are taken by the top management authority that is democraticmanagement style which reflect in its dress code, office hours, turnover and treatment of clients. So due to which there is a proper trust between different levels of the organisation. In reference to TUI sector it 8
the service sector which provide services to its customer, corporate social culture which leads to business development (Donate and de Pablo, 2015). External factor:The external factors that influence management styles and factors which are uncontrollable by the company are been discussed below: ďˇCompetitions :For every organisation there are many rivals which affect the business. In the service sector there are many competitors by which it is not so easy to overcome, many times the competition is so high that the manager of the TUI has to work according to demand of the customer for capturing the customer trust and loyalty towards the company. Technological:Due to latest technology advances, business have greater opportunity of effective communication and ways to improve productivity to save business cost by automating business operation and process. TUI can use new technology to enhance their quality in work and transform their business model from manual to automation. ďˇPolitical Factor:The political order affects the business and introduce risk factor which can cause losses and suffer over profit. For TUI to understand the political environment and different rules and regulation of government to maintain a stable business environment. (Gupta Sharma and Sunder, 2016) ďˇSocial Factor:The social factor which includes beliefs, customs, traditions, customer taste and preferences etc. due to changing scenario customer are highly demanding new innovative trends which effect the external environment. In context to TUI group the social interaction with people canattract the customer and which aid to make the healthy relationship.Company should create social environment to maintain positiveness among employee so they can complete the task. TASK 3 P5 Evaluate leadership and management its hard and soft skill which can improve in service sector Leadership is important part of the company which helps to assist the individual and securing the skill.(VerĂssimo and Lacerda, 2015).In TUI which is looking to hire new technology which helps to adopt new changes to serve the needs and desire of the customer.The new technologies and skills which are to be needed to adopt by the manger to promote and implement TUI group 9
in a better way. Management deals in two type of skills which affect the business that is Hard skill and Soft skill. Technologies and experimental skill which helps the manager to control the work in TUI group. Hence hard work which aid to upgrade technology which lead to the current growth of the organization (Wu and Chen, 2015). Leaders must lead its group and guide them and support their team members to achieve the goals of the company. Leadership and management both are necessary in the company for effective growth and development. Leaders generally must direct the manpower by guiding, supporting, instructing etc.According to Verissimo and Lacerda (2015), there are different management and leadership skills. These skills are categorized in management hard shills and leadership soft skills, which are applied within TUI group. The following skills are discussed below: ManagementLeadership Assigning work to the suitable team, creating the discipline environment. Motivating each individual and guiding them to achieve the goals of the organisation. Focus on procedure and structureLeaders are focusing on values and principles. Management involves rewards which can be monetary and non-monetary Leadersinvolvesclearvisionandpassion towards the goals and objectives. Administration looks for team which can be easy to solve. Leadershipapproachisalongtermand strategies are used to overcome the problem. Due to new technology and adaptation which are taking place in day to day life, so the managers need to work hard for the growth of the company.In this hospitality sector within the travel and tourism industry, itâs essential to make use of leadership hard and soft skills, to create new adjustments and update new technology(Lockwood, J., 2015). In reference to TUI, the management is going to soft skill which will able to aid in decision making which help in promote effective communication to all team members. Hence in the management leaders should have the effective communication skill which aid to control and guide the team members in a right path(VerĂssimo and Lacerda, 2015). Management Hard skill:The decisions which need to be solved by managers for that skills are needed for that it is necessary to have effects and contribution and determination towards roles and duties of mangers or leaders.(Tang, 2015). The plan of action which need to be taken into 10
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consideration that managers need to motivate and encourage the employees in effective manner. Leaders need to adopt training sessions for their workers so that they can perform in well and achieve their targets. In context to Manager âHard skillâ it should include informative and technical and managerial skill which is necessary to have work effective in an appropriate time period. Analytical skill is important part of the manager to resolve the problem and even deals technical skill which is necessities for the manager growth (Tang, 2015). Leadership soft skills:Soft skill is also needed in the management role, it involves abilityto interact with team-mates and attitude towards the problem and leadership skill to work with some defined purpose (Shin, 2015).In context to TUI the need to adopt the digitization in modern environment and even which aid to improve the productivity of the organization. Every organization set goals for everyone for the management need to adopt the soft kill to enhance the growth and productivity of the organization. Leaders âsoft skillâ the working skill is required to work within the team which helps to communicate the thoughts and ideas to other team members along with that aid to take right strategies at the right point of time. Managing the people is the essential part which the manager needs to focus on so that employees can work effectively P6 Approaches of leadership and management skill Leadership and management skills need to work parallel for the growth of the business.They both are different from each other and it is a process that helps to enhance the work in an effective manner. The management includes planning, organizing, directing and controlling and even problem solving(Shamim, 2016).Leadership skill is the important skill to run the business in an effective mannerAlthough there are various of skill that need to be focused by the company to improve quality of the management. Even in the present scenario many competitors are working which are using the different skills and techniques to improve the growth of industry. In context to TUI the organization is also working very hard to attain the gross profit in an effective manner some of the skills are been disused below: Management skills ďˇTechnical 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 11
effective way.So TUI company need to adopt business activity and need to involve employees for better output. ďˇTransformative Style :This type of leadership which encourage and inspires team member to achieve their targets and goals in proper time duration hence this style which need to be adopted by TUI company which will lead to shape the future of company in effective manner. Leadership skills ďˇCo-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 employeeâs ideas towards their objective which must be done it in an effective manner. ďˇEmotional Intelligence (EI):It is an essential part of skill which the leader must practice during managing the work. TUI leader should able to attain and understand emotions so that which aid to create healthy environment in organization. Employers and employees should understand their emotions to enhance their skill and to expand the business growth and sales. 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 (Jiang Chuang and Chiao 2015) . Profession which is need in the current market scenario which enable TUI firm to analyse current trends of industry with the best innovative TASK 4 P7 Comparing of variousorganization Some of the difference between TUI and Thomas Cook are as follows: ParticularsTUIThomas Cook Managerial Style In TUI, the manger follow managerial style within the business in order to achieve the goals and objective in an effective and efficient manner, all though the manager of TUI also encourage its employees to share their view points in regard to resolve the conflicts even this helps the employees Under Thomas Cook which includesstylethatis participationofallthe employeestopromote personalparticipationfor taking the business activity to 12
high motivated.resolvetheprobleminan appropriateprocedure.This will help to achieve the direct relationshipbetween employees and employers. Leadership style In this TUI adopted delegation leadership style to identify the manpower ability and satisfying the employees productivity ratio. Thomascookfollowed democraticleadershipstyle whichistreatedforequal treatmentwithallthe employees which affect the high motivation ratio in an effective manner. Changes at TUI accrued is technological changes, corporate culture and leadership styles these are some of factor which affect the business. Company is need to use updated technology which is to be taken care by management in efficient manner In context to technological factor Kotter's Model which are been discussed below:- This Model is given by John Kotter's which included 8-steps which explains about the commitment, clear vision, stakeholders and clear communication and many more. This model is been explained below:- 13
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Illustration 1: Kotter's 8 step Model (Sources: Kotter's 8 step Model 2019) Create a sense of urgency:Making employees aware about changes in organisation which will increase understanding and honesty among employees and employees and more over leaders should make the team aware and take sessions of of digital technology. Create guiding coalition :In TUI leaders have to encourage their team members in effective manner so that they can put their efforts in proper manner. More over communication between employees can be openly done through technology. Create Vision :It is necessary that team leaders have to make vision about how to conduct the work in appropriate manner. Communication about vision :The management team need to decide vision that is path way to go with employees to achieve success. Hence leaders need to communicate path goal to team mates and make them changes which need to be taken into organisation. Remove Obstacles :The clear path which is need to taken by company also leaders sometimesobstacleswhichaffectcompanyinhighpathsoitisnecessarytotakein consideration. Hence some of the above step need to be taken into consideration because TUI have to update technology and have to communicate with employees about changes and need to be taken in factor affectively. 14
CONCLUSION Overall, this report was able to review leadership and management tools which aid to promote the growth of the business and stimulate workforce performance. This report has also identified that these tools can help increase organisation productivity in best effective measure. Furthermore, different management theories were evaluated and identified how a business can help increase employees and organisation performance. There are soft and hard skills that can be undertaken by a leader to provide effective guidance and support to their employees with the help of which can equate to profitability of the business. 15
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