Organisational Theory and Practice

This study material provides an in-depth understanding of organisational theory and practice. It covers topics such as management styles, organisational structure, leadership styles, and the impact of power and conflicts. The content also explores motivation techniques used at Thomas Cook Group plc.

Organisational Theory and
Practice

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................4
Management style and principle and functions of management uses by the Mr Peter
Fankhauser...................................................................................................................................4
Organizational structure and Thomas Cook’s culture and it’s impact on employees.................5
Leadership style of Mr Peter Fankhauser....................................................................................6
Impacts of power, influence and conflicts at the Thomas Cook..................................................7
Motivation uses at Thomas Cook................................................................................................8
Literature Review........................................................................................................................9
Conclusion.....................................................................................................................................10
Recommendation.......................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Organizational theory refers as a set of concepts and principles that provides theoretical
aspects for systematically study of organizational behaviour, structure, functioning and it’s
performance in it’s business sector. It is a strategic approach that assist to understand individuals
attitude towards job and their responsibilities which they perform within workplace to achieve
goal of the company in predefined time (Ahmady, Mehrpour and Nikooravesh, 2016).
Organization theory also supports organization to influences it’s staff member within company to
accept change by leading job satisfaction in individuals. there are numerous types of
organizational theories i.e. contingency, organizational structure, classic organizational theory
and others which provides understanding in individuals to analyse organization’s behaviour and
it’s positioning in the business market. There are various organizations, are practisize these
organizational theories within company that helps to improve business performance and
extensively increases engagement of employees within workplace. Organizational structure is
the effective tool that helps to align certain activities in precise manner that directs to achieve
goal of the company. Good organizational culture and it’s activities i.e. roles and responsibility
that assists to raise goodwill of the organization in the global market. In addition, with
organizational structure understand how information flows among different levels within
organization. On the other hand, contingency theory supports organization to take right decision
in different organizational situations. It assists managers or leaders to follows different
leadership style accordingly situation needs so that they can deal with issues associated with
situations and builds sustainable business performance in the global market.
There has an example of Thomas Cook Group organization that helps to understand role
of organizational theory and management style within organization (Bishop, 2016). Thomas
Cook Group plc is a British travel group Hospitality and Tourism industry that is headquartered
in London, England, UK. It posses’ wide range of product portfolio such as foreign exchange,
international and domestic holiday packages, visa, passport, travel insurance and MICE,
passenger airlines, package holidays, cruise lines, hotels and resorts. It also offers services such
as package holiday, flight and hotels to the customer across the world. Then main objective of
the report is to give understanding about management style and how CEO applies management
style to run Thomas Cook Group smoothly in the business market.

MAINBODY
Management style and principle and functions of management uses by the Mr Peter Fankhauser
Management style is the set of principles that undertakes different methods, potential and
tools etc. uses by managers to deal with dynamic situation effectively. With management style
managers enables to explain all roles and responsibilities of hierarchies which encourages staff to
put more efforts in their working performance within workplace. A effective management style
supports organization to achieve high productivity within business and accomplishes all long-
term and short-term goals in the predetermined period. There is different type of management
styles i.e. autocratic, vision, transactional, democratic, charismatic, servant leadership styles and
transformational management styles. These are effective management styles that supports
organization to direct it’s staff towards achieving common goal as well as influences strong
brand presence in the business market. Mr Peter Fankhauser is the CEO of Thomas Cook Group
plc follows different management styles to deal with different situation of the business and
improves productivity and operations of the company in the hospitality and tourism industry. The
main goal of the Thomas Cook Group Plc is to make high profit, to be more successful, offers
scheduled flights and influence tourism within UK (Chase, 2018). However, Thomas Cook
Group believes that when employees get satisfaction from their job that encourages them to give
productivity in their working to meet organization’s aim over the time period. Therefore,
Charismatic management style also adapts by Mr Peter Fankhauser within organization. This
management style believes on the charm and influencing ability of the leader and assists them to
stand out on their commitment and conviction. So charismatic leaders are also known as
transformational leaders because both keeps multiple similarities to each other. With this
management style Mr Peter Fankhauser communicate it’s staff effectively within workplace and
influences to give high performance working (Dyczkowska and Dyczkowski, 2018). In addition,
he provides open communication facility to the staff so that individuals can communicate with
authorities or other staff member regarding their issues associated with workload, salary and
others. With effective communication skills and listening skills helps Mr Peter Fankhauser to
understand needs of individuals and maintains their wellbeing by offering working place
facilities as well as holidays vacation. In recent few years Thomas Cook Group plc faces less
productivity of staff within workplace because 21,000 worldwide staff were quit their jobs on 23

September 2019. The reason behind is that Thomas Cook Group declared that 21 travel office
will close and 300 employees have to leave their jobs. This decision was taken by Mr Peter
Fankhauser with the fact that only 64% online booking has been done in 2018 which is quite less
as compared other travel industries. Financial issue was also one of the main reasons to made
such kind quick decision. But later on Mr Peter Fankhauser follows transformational
management style to handle all unfavourable situation positively in the organization. however, he
recruits large number of skilful staff by following effective and attractive recruitment strategy.
thus, Mr Peter Fankhauser posses’ different management styles and principles to deal with
situation effectively within company.
Organizational structure and Thomas Cook’s culture and it’s impact on employees
Organizational chart is the structure of an organization that represents relationship of
hierarchy and structure with each other. It is a systematic approach that aligns various roles and
responsibility to achieve goal of the business effectively. There is different type of organization
structures i.e. matrix, functional, division and flat hierarchical etc. has aim to fulfil all business’s
objectives. A functional, top-down organization chart displays traditional business scenario.
Whereas it represents C-suit at top level, follows by other senior authorities or management,
middle managers and others (Fiaz, Su and Saqib, 2017). This organizational structure is
classified into different traditional departments i.e. IT, marketing, finance, HR and their
functional role within organization. In such type organizational structure individuals’ posses’
similar skill sets and works together in a group. Thomas Cook follows functional vertically
integrated along with top-down management structure. So, all decisions are taken by board of
director and other senior management body and implements on downward to different
organizational level. Mr Peter Fankhauser is the CEO of Thomas Cook organization who has
power to take all decision on the behalf of organization and control all functionals department
effectively. He is act as proactive person and takes all decision quickly own by own without need
of consultant guidance and evaluates individuals’ functional areas performance at the job place.
Mr Peter Fankhauser mainly focuses on finance department, accounting, marketing and health
and safety committee and empowers them to delegate number of task among the staff. Such kind
organizational structure has less visibility and poor communication which causes conflict crisis
takes place between employer and employees. From past few years Thomas cook takes resort of

global outsourcing strategy for transferring the finance and accounting services into outsourced
team hand so that they support in cost reduction as well as organizational productivity.
Organization culture is the set of beliefs, opinion, values and assumption that supports
individuals to maintain their wellbeing within company. Thomas Cook follows organizational
diversity within workplace so that enable to achieve high profitability within organization. It
offers variety of employee welfare policies i.e. health and safety insurance policy, compensation
security, one-week holiday trip as reward and anti-discrimination policy (Griffith and et.al.,
2018). Diversity in workplace promotes organization to understand customer’s behaviour for the
products and services and offers them those product and service which fulfil their needs and
expectation effectively. Merits and Performance parameter strategy also follows by organization
to promotes growth and promotion within business. this strategy encourages individuals to put
high efforts in their performance so that get high merit on their performance as result enables to
get promotion in the workplace. Thus, organization culture is quite good in the Thomas Cook
which raises goodwill of the brand in the business market and maintains individual’s wellbeing
within workplace as well.
Leadership style of Mr Peter Fankhauser
Leadership is the ability of individuals to influence others towards achieving common
goal by motivating and supporting them in precise manner. A good leadership style supports
leaders to encourages their staff member to give more efforts in their performance and builds
good relationship between management and employees by improving their weak areas
effectively. There are different type of leadership styles i.e. autocratic leadership, situational,
transformational and others which helps leaders to set vision of the business and influence
employees to being proactive within workplace. Mr Peter Fankhauser follows autocratic
leadership style within organization to achieve short-term goals in peak periods (Lonn and
Dantzler, 2017). The autocratic leadership style is the main form of management style whereas
leader or manager of the company takes all decision on the behalf of organization. This type
leadership style requires for those organization whereas nature of work needs quick decision-
making. With this management style Mr Peter Fankhauser enables to deal all constant change or
a crisis of business effectively. In addition, he controls all over all functional areas and their
operations which they perform within workplace. Apart from this, he delegates number of tasks

between employees which supports to lead profitability within company through number of task
achievements. Mr Peter Fankhauser is the CEO of the Thomas Cook Group so he has large
number of responsibilities like planning, organizing, decision-making and it’s implementation
successfully within organization so that organization can achieve high competitive advantage in
it’s sector. Thus, this leadership style helps CEO to become proactive and quick decision-maker
in the business market. Situational leadership style also follows by Mr Peter Fankhauser to
manage diverse staff within workplace effectively. To take extensive advantage of diversity is
mandatory to maintain individual’s wellbeing effectively within company because when they
feel comfortable then cannot create any creativity in the workplace. therefore, CEO of Thomas
Cook adapts situational leadership style that supports leaders to adjust their style as per the
situation. it comprises four leadership styles i.e. directing, participating, delegating and training.
With this situational leadership style Mr Peter Fankhauser directs all diverse staff to work in
right direction and builds good relationship between them by giving challenging task with
deadline (Mao and 2017). Thus, manager enables to improve productivity in individuals working
and improves effectiveness of the company in the travel and tourism industry.
Impacts of power, influence and conflicts at the Thomas Cook
Thomas Cook Group plc is a British travel and tourism industry that posses’ wide range
of products and services and offers worldwide services through it’s franchises which are located
in multiple countries. The major strength of the Thomas Cook plc is that it offers two type
services i.e. resort and travel agency which attracts customers to buy travel services and puts
pressure on it’s competitors in travel and tourism industry. Strong brand presence helps Thomas
Cook outsources third party and transfers accounting and finance department so that they lead
reduction in operational cost as result improve economical infrastructure of the company. Apart
from this, it maintains diversity in the workplace effectively due to good employment policies
and incentives that influence individuals to give high performance within workplace.
Organization has high availability of customization and flexible options for the holiday package
design as per the requirement of customers (Miesing and Tang, 2018). Therefore, it is one of the
most favourite travel shops in the customer’s mind. Organization has strong global presence in
various domains i.e. flights, hotels, resorts and many other makes it a realistic global travel
corporation. However, it has diverse employees’ strength who offers their services all over the
world. it has more than 20.000 staff sitting and travelling across the world which gives

organization a global image and improves it’s brand awareness in customers. Thomas Cook is
associated with London Olympics 2012 that has already boosted brand awareness, it has
sponsored some football clubs such as Manchester City and Peterborough United that supports to
build brand value in travel and tourism industry.
Organization has opportunity to expand it’s business in Europe that helps to build brand
image in other international markets effectively. Thomas Cook has opportunity to digitalize the
operations. Today’s world everyone like to buy services either retailing or airline from the online
media instead of wasting time to visit place for the ticket booking. So, It can offers own website
and software app facilities to the customer whereas they can book ticket as per their preferences.
With this digital platform it can access new customer and influences them to buy travel or
hospitality services. Thus, it can build digital presence in the e-commerce market.
There are some conflicts issues that impacts on organization’s performance, profitability
and operations (Putriastuti and Stasi, 2019). For example, uncertainties that comes in travel
industry due to Brexit. It is major threats for all travel corporations like Thomas Cook because
Brexit leads change in policies and tax rate which can create uncertainties to operate business.
Thomas Cook offers low cost products and services to the customer but from past few years low-
cost service providers are increased by and by who can become threat for the company.
Motivation uses at Thomas Cook
Thomas Cook group plc follows content theory of motivation to understand individuals
behaviour for the job and their preference so that can fulfil the needs of them and influences
them to meet organization’s objectives over the time. The content theory comprises number of
motivation theories i.e. Maslow’s hierarchical needs, is one of the highly effective motivation
theory. it is proposed by Abraham Maslow’s to evaluate basic needs of human being which
maintains their wellbeing within company. This model contains five type basic needs i.e.
physiological needs, safety needs, belonging needs, esteem needs and self-actualization needs.
Physiological needs are good working condition, good employment policy ad hygienic
workplace place etc. essential needs of individuals which they expect from the organization.
Management of Thomas Cook is flexible with time that reduces work pressure on individuals
and maintains their wellbeing within workplace effectively. Safety needs are health and insurant
policy, workplace safety and self-belonging safety etc. expects by individuals from job whereas

they offer their services. It posses’ diversity within workplace so it offers anti-discrimination
policy that ensures individuals that no discrimination takes place within workplace while giving
promotion and incentives (Reedy, 2020). Belonging needs includes respect, support,
collaborative working and open communication etc. are also known as social needs which are
essential for individuals to work effectively and maintains their wellbeing. Thomas Cook
provides two-way communication facility to the staff member so that they can effectively
communicate each other related task difficulties, salary and others. Self-esteem needs are dignity
and recognition that encourages individuals to give honest performance within workplace and
retains them prolong time with company in each situation. Self-actualization is the last stage of
Maslow’s Hierarchical needs that comes in existence when all above needs are successfully
fulfilled as result leads self-satisfaction in individuals for the job. Thus, Thomas Cook motivates
it’s diverse staff member within workplace and in return they help company to meet it’s
objective by giving productivity in their working.
Literature Review
According to Rose, (2017) motivation and organizational behaviour are effective
approaches that assist organization to raise goodwill in the business market as well as meets it’s
objectives over the time period. These approaches can be proved beneficial when organization
has good organizational culture. A good organizational culture always directs management to
take employee wellbeing practice in their action which gives values to the staff and influences
them to achieve all short-term and long-term objectives over the time period. A effective
organization culture helps company to achieve sustainable growth in the business market. While
Motivation approach assists company to motivate it’s staff for long time in the business market.
Motivation theories are Maslow’s hierarchical needs, Vrooms model and others etc. major source
of motivations that influences individuals or group of people to achieve organization’s objectives
effectively.
However, other Soni and Soni, (2016), have quoted an example of Marks & Spencer in
their published books and has stated that M&S is a British multinational retailer company which
posses’ wide range of products and operates in multiple countries across the world. It offers
worldwide product services to the customer with the help of staff members who offers their
services in different countries through stores. It has good organizational culture that’s why it is

effectively managed equality and diversity within workplace. HR managers of M&S follows
various type of motivation strategies and techniques accordingly situation and encourages staff to
achieve organization’s objectives on time. Due to effective reward strategy and employee
orientation program helps M&S to achieve sustainable business performance in the global
market.
Conclusion
This report has concluded significance of organizational culture in the Thomas Cook that
caused it succeeded effectively in global market. Mr Peter Fankhauser is the CEO of the Thomas
Cook Group plc adopted different management styles i.e. charismatic and transformational and
it’s principles that supported to take quick decision effectively. Autocratic leadership style
followed by Mr Peter Fankhauser that helped to keep control on functional areas functions and
let effectiveness in organization positively. Maslow’s hierarchical needs followed by Thomas
Cook to influence it’s staff in the job place in precise manner.
Recommendation
There is some recommendation for the Thomas Cook Group plc which supports to improve
organizational performance in the travel and tourism industry.
 Thomas Cook Group plc must follow 360 feedback strategy that helps company to
analyses effectiveness of strategy which they implement and monitors individual’s
performance within workplace effectively. With the strategy Mr Peter Fankhauser can
gather feedback from staff about decision and strategy which makes them feel valuable
for the company. In addition, Thomas Cook can take feedback from the customer about
employees’ performance and products. thus, company can build good relationship with
customers and employees which automatically improves organizational performance.
 Herzberg’s Equity model is good motivational model that supports organization to keep
fair balance between input and outputs. In addition, it encourages staff member to put
high efforts in their working so that they can meet organization’s objectives and being
part of rewards. So, organization should follow this motivation approach that will
maintains sustainable business performance in the business market (Topchiy and
Tokarskiy, 2018).

REFERENCES
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