Leadership and Management for Service Industry

This report discusses the different classical theories of management, the role of leaders and different leadership styles in the service industry. It also reviews the management and leadership style in a specific service sector. The report explores the internal and external factors that influence the management style and structure within the service industry.

Leadership and
Management for
Service industry
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1. Different classical theories of management...............................................................................3
P2. Role of the leader and different leadership style.........................................................................5
P3. Review management and leadership style in a specific service sector..................................6
TASK 2.................................................................................................................................................8
P4. Internal and external factors which influences the management style and structure within
the service industry.........................................................................................................................8
TASK 3...............................................................................................................................................10
P5 Assess current management and leadership ‘hard’ and ‘soft’ skills providing evidence from
specific service sector examples......................................................................................................10
P6, M3 &D3 Future management and leadership skill....................................................................12
TASK 4...............................................................................................................................................14

P7 &M4 Comparison of different service organization...................................................................14
CONCLUSION...................................................................................................................................16
REFERENCES......................................................................................................................................17

INTRODUCTION
Leadership and management are two different but most crucial elements of the business
organisation. Leadership is concerned with the potential of the leader so that they can
influence and motivate the people to work for the attainment of business goals and objectives.
Management is concerned with the managerial action of the planning, organising, directing
and controlling the different activities of the business organisation (Deming, 2018). The
company which is to be considered for this report is TUI group which has initiated its
business from the year 1932 and deals in hospitality and tourism industry. This report will
explain the classical management theory and different leadership styles. It will search for
various factors which will influence different management style and structure in a service
industry. The report will also evaluate and assess the current and future management and
leadership skills for the service sector. The last part of the report will concentrate on
comparing and contrasting different service industry organisations change management
system and leadership is implementing change.
TASK 1
P1. Different classical theories of management
There are various views of management and classical views of management or
classical management theory is one of them. Planning, organising, recruiting, directing and
controlling etc. are some responsibilities of the manager (Deming, 2018). In TUI, the
manager of the organization can some theories of classical management for the effective
management of the company. These theories are as following:
Scientific management theory- This theory is developed by Frederick Winslow Taylor to
manage the operation and activities of an organisation in an effective and efficient manner.
The author believed that if the manger of the company monitor the work and operation or
activities in scientific manner then the person an identifying and finding out an defective way
and manner to perform the task appropriately (Dhar, 2016). If the manager perform the task
in scientific manner then the individual will make contribution in the growth and
development of the company. In context of TUI, the manger can implement this theory in the
operations and activities of the firm. If the manager of the company use this theory in the
organisation then it will be helpful for it and it will help in maximizing the profit and
productivity of the company. Because the manager guide and lead the worker to do work in

scientific manner and everyone will be clear about to their task and will be answerable for
their work.
Bureaucratic management theory- This theory was developed by Max Weber and the
author viewed that bureaucracy is the most efficient form of a company. This theory focuses
to operate the firm under a hierarchy of position. According to this theory, the manger of the
company framed and formalised the rules and procedures to operate the work and task of the
organisation in an effective and appropriate manner (Donate and de Pablo, 2015). Application
of the rules and sanctions must be impersonal and authorities should be formalized in to a
hierarchical structure so that the task and work which is assigned by the senior completed on
time in proper way. If provided task are achieved by the workers on time then they can be
rewarded for their good work. In TUI, this theory can be used by the manger to attain the set
objective of the company in an effective manner. If the employees of this travel and tourism
sector organisation attain their target on time then they are rewarded for their work. This help
in motivating employees and they will do their work by using their all efforts and
effectiveness and make contribution in the growth and development in the profit and
productivity.
Administrative management theory- This theory of management is developed by Henry
Foyal. This theory is also a type of classical management theory and can be a systematic way
of organise and monitor things, activities and operations within a company. This theory can
be used by the management of the firm to improve the performance and overall functions of
an organisation. According to the author, planning, organising, commanding, controlling and
coordinating are some main functions of the management. In context of TUI, this approach
and theory can be used or implement by the manger of the company in context of effective
management. Because the main principle of this theory to assigned the work and task in a
systematic way and manner includes clearly defined task.
From the above motioned and defined information, it can be analysed that the
management of TUI can used and applied administrative theory of management because
within it the tasks and work are divided in systematic manner so that the employees can attain
their targets and goals in effective manner and make contribution in the growth of the firm
(Gupta, Sharma and Sunder, 2016)
.

P2. Role of the leader and different leadership style
Leader refers to a person and individual who is responsible to guide and lead the
employees and team or group in which people are working to attain a common goal. In
context of TUI, the leader is also work for motivating employees and for this the person play
different roles, some of them are motioned as below:
Motivator- It is the main and major role of a leader which is played by them in effective
manner. In TUI, when the employees are working in a group or team to attain a common goal
and they are feeling demotivated then the leader of the company organised motivational
sessions and programs to encourage them. So that they can complete their work and attain
their gaols effectively in set period of time.
Mentor- It is an another role which is played by leaders in the company. When the workers
have not clear information about the vision and mission of the task and work then leaders
play an essential role as mentor. In TUI, they help in providing clear information about the
vision and mission of the task and work so that the employees can complete their on time
effectively.
Communicator- It is the next role which is played by the leader as a communicator. In TUI,
within this role, the leader make interaction with the employees so that get information about
their issues and help in resolving or providing solution to them. As a communicator, the
individual can share the information to the workers and help in offering necessary
information to them.
Navigator- Within this role, the leader help in generating and creating aims to support
missions. They designed aims which lead or guide employees in right direction. The leader
creates rhe vision for the company ton advance towards its mission. In TUI, within this role,
leader are responsible for the construction of the aims so that workers can attain their aims in
given period of time (Inkinen, 2016)
.
Different leadership styles
There are different types of leadership styles and the leadership styles which are
motioned below according to Lewin’s:

Autocratic leadership style- This leadership style is also known as authoritarian leadership
which offers clear expectations for requires to be done when it should be done. This style of
leadership is strongly make concentration on both command by the leader and followers.
There is a clear division between the leader and employees. Within this leadership style only
leader is responsible to take decision or no little input form the rest of the group.
Democratic leadership style- It is another type of leadership style which is also known as
participative leadership style. As the name suggest, within this leadership style leader and
employees both are able to take decision. They are allowed to make participation in the
decision making process and it encourage them and they share their issues and ideas. If the
ideas of them are affective then they are considered by the management which feel them
motivated and important part of the team which helps foster commitment to the goals of the
group.
Laissez –Faire leadership style- This leadership style is known as delegative leadership style.
Within this leadership style, leaders offer little or no guidance to group members and leave
decision making up to the group members. This leadership tended to outcome in teams that
lacked direction where members blamed each other fro mistakes, refused to adopt personal
responsibility and produced a lack of progress and work. Within this leadership style only
team and group members are responsible to take decision and there are not a little
involvement of leaders (Inkinen, Kianto and Vanhala, 2015)
. From the above analysis, it can be analysed that democratic or partnership leadership
style is better which can be followed by the management of TUI to leader the group and
team of employees. It is effective because both employees and leader are responsible to take
decision and employees are also share their issues and get solution to them on time. It is
beneficial because if the employees are participate in decision making process hen they can
share their ideas and views if their ideas are considerable the management of the company
can used them. It will be help in the growth and development of the firm.
P3. Review management and leadership style in a specific service sector.
Leadership and management style are those which are specifically important for the
business to adopt. As TUI deals in various sectors like airline, hotels, cruise,
accommodation, etc. so it becomes important that the managers and leaders follow the proper
structure and culture. The world is becoming hi-tech where the use of technology is
increasing at a rapid rate and emergence of technology is making the work more simpler and

also maximising the effectiveness. TUI is greatly influenced by the use of technology and the
management and leadership style plays a greater role in adopting those technologies. Through
digitalisation, the expansion of hospitality and tourism industry is increasing at a rapid rate.
This is possible because the customer are now able to book the flights, hotels, resorts, etc. on
the internet only with the help of mobile or any other gadget. For this, the leaders and
management are required to concentrate on the companies website, design it in a manner such
that when customer visit it, they will be inspired and book the hotels or transportation.
Through digital technology, the customer does not have to wait in a long queue to book the
railways or air tickets. Furthermore, it can be easily cancelled in just a click which has
developed and expanded the business of tourism.
In TUI, the management style which will be appropriate is concerned with the structure and
culture of the organisation. The organisational structure which will be perfect for TUI is
divisional structure where each function of management will have separate head and all
respective members of that head will report to the manager of that functional head (Jaiswal,
and Dhar, 2015)
.
Furthermore, the leadership style which will be appropriate under TUI service sector is
democratic leadership style. Under this, the leader will take suggestions from the team
members and takes decisions by taking into consideration their views and thoughts. The
culture of the organisation has a strong influence on the leadership style. If the culture is good
and people are flexible then the leader can adopt the situational leadership style where in the
leader uses different leadership style which ever fits best within the organisation.
The Handy Culture model can be used in the TUI wherein service organisation uses this
model which was developed by Charles Handy. This model describes the distribution of
power and level of cooperation within the organisation. For this purpose, the model is divided
into four different group of culture and they are discussed below:
 Role culture: This type of culture can be found in beauracratic organisations where
the individuals are highly oriented towards the job. If the TUI adopts this culture then
there will be very high level of discipline, rule, regulations, strictness, etc. within the
organisations. Thus, this will create hurdle in way for flexibility.

 Power culture: Under this type of culture, there is a low level of power distribution
and low level of cooperation among the workforce. This type of culture is found in
entrepreneurs where the power lies with the superior authority.
 Person culture: In this, there is low level of cooperation and high power distribution
among the workforce. This type of power is generally found in such organisations
where the workforce is highly professional, educated, skilled and they are
independent.
 Task culture: In this, there is high cooperation and power distribution. Under this,
the individuals or workforce is highly professional and problem solving oriented.
There is expert level of workforce which have flexibility and are effectively
accomplishes the business tasks.
Therefore, from above model it has been analysed that the best culture for the TUI group
is Task culture because under this, the workforce is highly flexible who can deal with any
kind of problems and difficulties.
TASK 2
P4. Internal and external factors which influences the management style
and structure within the service industry.
Every service industry is surrounded by several business environmental factors which are
internal and external. The combination of internal and external factors affect the TUI
adversely and this will directly impact the digital technology as well. Digitalisation is very
important for both the internal and external factors. Such factors are helpful in determining
the internal and external business environment (Lockwood, 2015)
.
Internal factors
The internal factors are concerned with those elements which lies within the organisation
and affects the company. Such factors are generally controllable in nature and the internal
business environment is enabled with digital technology which regularly concentrates on
tapping customers and developing certain digital advertisements so that they can make
customer aware of different products and services served by them. The following are the
internal factor which influences the management style:

 Organisational structure: It is the structure of the internal organisation which are
responsible for taking different organisational decisions in order to attain business
goals and objectives. There are different levels and each level is connected with
digital technology. The action performed by any one level will automatically be
notified to the other level of the business.
 Corporate culture: This is an essential constituent in determining the internal
business environment. There are two types of corporate cultures where in the closed
type of culture, the decisions are taken by the senior authority people while in open
type of culture there is democratic management style. In this, there is proper trust
between the different level of the organisations.
 Physical resources: The physical resources are the combination of technologies,
finances, labour, etc. Such resources are internal and have crucial impact on the style
of the management. If the TUI has qualified and expert workforce who can enable the
digital technology then this will have favourable impact on the company and the style
of the management otherwise vice versa.
External factors
The external factors are those which exist outside the business organisation and such
factor are generally uncontrollable by the organisations. The following are some of the
external factors which will influence the management style and they are discussed below:
Technology: It is the most emerging factor and this has strong impacted the TUI Group.
With advancement in technology, the organisations has adopted the digitalisation (Nguyen
and et. al. 2017). This has positively impacted the service sector and enhances the expansion
of the business market. Under this, the management will use situational style of management
because with this they can adopt to the changing environmental needs and requirements.
 Political factors: The political stability has a crucial impact on the TUI service
sector. This is because the TUI group is concerned in hospitality and tourism services.
This has crucial impact of terror attacks on the hotels and other transportation
services. This creates fear in mind of customers and affects the business negatively.
Social factors: The social factors includes the demographic factors, social beliefs,
customs, changing tastes and preferences of the customers, etc. The customers are becoming
highly demanding and their tastes and preferences changes very rapidly with the fluctuations
in the external business environment. For instance, the increase in the services of social

network and WI-FI facilities at different hotels and restaurant and created the need and
requirement for the TUI group to put emphasis on such services. The management of the
company will focus on creating such services which will provide satisfaction to the customers
(Veríssimo and Lacerda, 2015).
Therefore, the management has to be flexible in nature and keep changing its style of
working depending upon the changes in the internal and external business environment.
Changes cannot be avoided and they are to be accepted in order stay competitive in the
market.
TASK 3
P5 Assess current management and leadership ‘hard’ and ‘soft’ skills providing
evidence from specific service sector examples
Management and leadership is one of the productive topic, which assists an individual
or business organization in securing skills and competencies for its development. In TUI,
which is a leading German travel & tourism firm is looking to hire technology savvy next
generation workforce which can be utilizes their digital platform as well as adapt new
technologies (Nieves and Segarra-Ciprés, 2015)
. As, level of technology rises, skill & competency deals to these requirements are also need
to be relevant and adequate to implement these technological changes. Role of leadership and
management skills are natural and required here to implement’s or adjust technology in TUI
group at the stated way. Management which deals with Hard skill involves technical,
analytical and experiential skills which a help of which manager manages or control working
in this TUI group. Here, work hard means strong and non-malleable and technology up
gradation in TUI demand’s technical and analytical skill with current trends following in
these context.
Leadership is the continuous process for leading and guiding people. This is not as
severe as management, but it propounds to create out effective manpower. Soft means simple
and meable. Leader generally pursues these skills and leadership occurs at every level, no
matter people with no direct reports can and can do lead. They can be effect by guiding,
influencing, instructing, supporting, enabling etc. In context of TUI group, discussion on
management “Hard” skill vs leadership “soft” skill would explained using given tabular
presentation.

Management Leadership
It has short range perspective Leadership has long term perspective
Its assist in imitates other people in the TUI
group
This helps to originates people
This accepts the status quo It challenges the status quo
Management is completely based on
position or an authorities (Wu and Chen,
2015)
.
Leadership is completely based on power of
the personal influences
Management helps to demonstrates skills in
supervision or being judgmental
Leadership helps to demonstrates skills in the
kind of persuasion.
Management majorly works employee
compliances
Leadership is to work towards employee
commitment.
Management demands support of a
leadership to gives out productive employees.
Leadership demands support of a
management such as planning, co-ordination
with help of which leadership goals can be
acquired.
In future, management & leadership skill is need to be adjourn and manage by giving long
term & effective training to TUI employees. In this service sector, it’s necessary to led to
ensure hard and soft skills such as analytical, communication and interpersonal. TUI is one of
leading German based travels or tourism business which is in need to adapt and implement
skill such as leadership to makes effective regulation or adaptation of new updated
technology (Noe, and et. al. 2017)
. In context with TUI, if management is looking to takes decision making which is
hard skill, so leaders wants to bring communication in complete team to all these decision
effectively. Hence, in that condition management must have a productive communication
with team leader’s to takes decision making proactively.
Management hard skill: Hard skill such as analytics, decision making and problem
solving consists of managerial competency by a person, which involves accurate skill,
passion and style pattern with help of which manager takes on decision making combine. Due
to these skills, management is about initiates an effective action plan and looks out team

leading to motivates employees to work on that action plan. Management skill are concerned
on matter of short term and limited purpose.
Leadership soft skills: Soft skill such as communication, ability to interact or attitude
are some of the necessary skill which are necessary to led leadership to be work with some
defined purpose. With purpose of soft development to adapt digital changes in TUI group, it’s
necessary for TUI to led and utilizes these leadership skills and with help of which
management decision making will be undertaken to decision making for technology
empowerment into the defined manner (Tang, and et. al. 2015)
P6, M3 &D3 Future management and leadership skill
Leadership and management are both necessary competencies that add institutional value.
Neither is superior or inferior to other, they are just different. However, management is a set
of process that can keep a complicated system of people and technology running smoothly.
The most important aspects of management are planning, staffing, organizing, controlling,
and problem solving. On the other hand, leadership is a capability or ability of an individual
to inspire, influence followers towards an accomplishment of organizational goal or
objective. Although both these function contains different roles and responsibilities yet they
are inseparable in nature as they both work towards an achievement of business vision or
mission (Popli and Rizvi, 2015)
. However, in order to survive among today’s competitive world; leader and manager should
be flexible and innovative in order to acquire best positioning among industry. Thus,
technology is regarded as one of the powerful component in an organization which lead them
to attain high level of profitability and productivity ratio. Hence, there are various skills or
technology which TUI adopts within their business operation and function for obtaining
increased level of sales growth and profit margin. Some of the management and leadership
skill which TUI applies for the betterment of company are explained below:
Management skill
Tech management skill: In present scenario of industries, everyone requires their work
should be done fast and accurately which lead them to expand their contact of
network in order to gain attention of wide range of audience. Currently , managers
spend 54%of their time on administrative task, but with the help of artificial
intelligence they will able to format, create report, schedule appointments and also

managers can spend more time working on more challenging business endeavors.
Thus, as the technologies changes TUI superior will need to continuously updated and
educate themselves on new operating system so they can keep up with emerging
issues.
Soft skill: Just as technical skill is important, soft skill is also a prime character trait
for manager to develop themselves in order to assess it in future hires. This skill is
concern with listening, effective communication, positive attitude, accepting feedback
and great time management required by every enterprise. Therefore, TUI manager
must evaluate candidates or employees for a combination of critical thinking and
creative minded problem solving, conferencing, automated tools helps them to build
long term success with trained professional and also generate influence as a trusted
consultant (Shin and et. al. 2015)
Leadership skill
Actively agile: Due to the speed of change in the future workplace, leaders will have
to agile i.e. responsive as well as able to embrace or celebrate changes. Thus, TUI leader
should be open minded personality so that they can see every competition as a platform for
growth and opportunity to adapt innovative into company’s function in order to obtain
sustainable profitability (Psomas and Jaca, 2016)
Emotional Intelligence: It is considered as one of the critical skill which every leader
have to practice during managing their followers or workforce among an enterprise.
Moreover, TUI leader should be able to perceive, understand and manage emotion so that
easily boost personnel morale and can generate a healthy relationship with them.
However, from the above explained skills which is necessary for TUI future management and
leadership so that they can easily monitor the work of without any delay as well as provide
best survive to employees that lead them to attain increased level of sales growth and profit
margin.
Technology is considered as most integral determinant in current scenario of marketplace as
it enable TUI firm to analyses current and emerging trend of industry and also it encourage
TUI leader to implement best strategic decision and to acquire innovative technology in order
to gain competitive edge in an impressive way.

In order to cope with current scenario of competitive world, an innovative or creative
management and leadership is required who can put their full contribution towards an
accomplishment of organizational goal in an effective and efficient manner. Therefore, TUI
manager should take effort to adapt all latest technology which lead them to acquire
sustainable proficiency rate in an impressive and productive style.
TASK 4
P7 &M4 Comparison of different service organization
Some of the difference between TUI and Thomas Cook are as follows:
Particulars TUI Thomas Cook
Management style In TUI, its manager follows
consultative management
style within their business
function in order to achieve
organizational goal in an
effective and efficient
manner. Along with this, Its
manager provides an
opportunity to its employees
for sharing their views
regarding business conflict
which arises among
colleagues as well as based
on those different views they
make a corrective course of
action that create high level
of motivation level among
manpower.
Under Thomas Cook,
they applies participate style
as they make an attempt to
invite their personnel to take
participate in business
activity like decision making
process, problem solving
procedures. With the help of
this, they are able to build a
better relationship with
employees and it directly
reflect over on enhancement
of market size (Roblek,
Meško and Krapež, 2016).
Leadership style In TUI, they implies
delegative style of leadership
in which they takes an
initiative to identify each
manpower ability and based
Thomas Cook follows
democratic style of
leadership in which they give
equal treatment to its
personnel as well as render

on that they delegate the task
which help them to bring
high level of satisfaction
among employees as well as
enrich its productivity ratio.
enormous opportunity. Due
to this they are enable to
acquire increased level of
profit margin and sales
growth within an industry.
Change management is necessary in leadership and managements styles is one necessary
concept says that utilizing leadership & management is best decision to led change in
business functioning and regulation in an effective manner. Lewin; s model will be applicable
here,
Unfreezing: This is a primary phase of transition and most critical stages in the entire
process in the change. This involves making better readiness and willingness of a people to
led change by doing realization for shifting from comfort area to a transformed situation.
Change: This stage is also regarded as the major stage for Transition or the stage of
actual implementation of change. It involves the acceptance of the new ways of doing things.
This is the stage in which the people are unfrozen, and the actual change is implemented
(Sadgrove, 2016)
.
Freeze (Refreezing): During this stage, the people generally moves from the stage of
transition (change) to a higher growth stage which every individual is regard as state of
equilibrium. The stage of Refreezing is the ultimate stage in which people accept or
internalize the new ways of working or change, accept it as a part of their life and establish
new relationships.
With help of this model, change management can be effective changes which will be
brings to makes leadership and management skill to be better applied with adaptation in
technological changes in TUI work based system. This is also realised change will be
considered as ongoing process which will help to brings positive changes in management
style and style (Shamim and et. al. 2016) In addition to this, leadership style such as
democratic can be brings into an existence to empower each and every individual to gather
support for digital technology to be implemented in TUI group. With this style, effective
working and co-ordination can be builds into TUI group.

CONCLUSION
As per the above information, it can be monitored that leadership is an effective tool
which is helpful for providing guidance to the employees and workers so that they can do
their work with more effectiveness. Different classical management theories, roles of
leadership and style of leadership all are beneficial for the development and providing
guidance to the employees. Internal and external factor also create impact on management
styles and structure. Hard and soft skills of leadership also effective fro providing evidence
from specific service sector.

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